Full text of Commercial and Financial Chronicle : May 21, 1953, Vol. 177, No. 5222

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U

NIVERSITY

OF

MICHIGAN

z

22
1953

f

ESTABLISHED 1S39

ike Commercial's^

Chronicle
Reg. U. 8. Pat. Office

EDITORIAL

Price 40 Cents

7, N. Y., Thursday, May 21, 1953

New York

Number 5222

Volume 177

On Academic Freedom

Eisenhowei's Tax Program

We See It

As

cratic party more or

Formerly President of United Light &

of peril, and early tax reductions must be de¬
ferred in order to maintain adequate defense program.
Would continue Excess Profits Tax until Jan. 1, and
extend present

Soon

after

the

end

the

of

war,

in age

the Federal

President Dwight D.
broadcast

On the other hand, adherents /
of picketing oppose such an amendment and argue
T
that it- is < an
essential component of the strike
to secure human rights.

weapon
-

What
we

do

conducting

are

"Chronicle" and

an

readers

in

invited to briefly

or

on

any

all

across

our

If

grade,
cable?

-

about an issue- affect¬
lives.. It is the ^defense
country,'V*

'

ponder this a moment, we all
this really means the de¬

Pres.

Eisenhower

spiritual values and

attitude

the

of the government. Yet
political pressure, particularly from organized
labor, to honor and to reiterate assurances to this
effect was and still is very great. Candidate Eisen¬
hower felt obliged to promise that under his
leadership the Federal Government would when¬
ever the need appeared throw all of its force into
on

part

Continued

on

course,

To be free and

national

Our

to stay free, we

by

almost

example,

for

Continued

GROUP

OF

to

Brackettville,

page

Municipal

telephone:

PICTURES IN THIS ISSUE—Candid pictures
Texas Group Investment Bankers Association at
Texas, appear in thi issue on pages 25 through

can

be

never

higher authorities acknowledge and
It

can never

be absolute in respect

educational authority unless the state be
powers over

even

public education,

constitutions

are

The suggested questions are

a

clear im¬

subject to amend¬

pertinent and interon

page

36

taken at the

Fort Clark
34 inclusive.

State and

Municipal
Bonds

SECURITIES

Hawaiian Securities

desired

teacher unless Department

OIL & MINING

Pacific Coast &

Wires
Bond Department

Dean Witter a Co.
14 Wall

THE NATIONAL CITY BANK

J. A. H0GLE & CO.
ESTABLISHED

Street, New York, N. Y.
••

COMPANY

OF NEW YORK

Members of Principal Commodity
and Security
San Francisco

•

•

Chicago

Bond

Honolulu

Net

Ford Motor Company
of Canada,

Ltd.

T. L. WATSON & CO.
ESTABLISHED

Members New York
American

To

Active

Banks

Mines Co., Ltd.
Commission

Orders

Bruns

Hardy & Co.
York Stock Exchange

American

Broad St.

Tel. DIgby 4-7800

Stock Exchange

New York 4
Tele. NY 1 -733




DIRECT

WIRES TO

MONTREAL AND TORONTO

Goodbody
50 Broadway, New

York 4, N. Y.

Telephone WHitehall 4-G500
Teletype NY 1-1843

Bridgeport

Perth Amboy

and 10 other Western

NATIONAL BANK
Of THf CITY Of NEW

CANADIAN
BONDS & STOCKS

Public Service Co.
of New

Hampshire

COMMON

&

Co.

Analysis

PoMmon Securities
Grporactoti

upon

request

ira haupt &co.
New York Stock Exchange
other Principal Exchangee•

Members
and

ESTABLISHED 1891
MEMBERSNEW YORK STOCK
115

BROADWAY

NEW YORK

1

YORK

Cities

On All
Regular Rates

department

canadian

Spokane

Executed

Canadian Exchanges at

Over-the-Counter Trading Dept.
G.

Brokers

Fenimore Iron

Exchange

Request

H.

and

Stock Exchange

Stock

Denver

,

Angeles

Maintained

Markets

Dealers,

1832

Commodity Exchange, Inc.
on

Dept. Teletype: NY 1-708

Los

CHASE

Exchanges

NEW YORK CITY

Salt Lake City

THE

1915

Members of All Principal

50 BROADWAY •

Exchanges

Los Angeles

•

Boston

Members

is*

HAoover 2-3700

BANK & TRUST

30

'"V

Continued

IBA

Chemical

Members New

Freedom

WESTERN

Direct Private

Circular

the

48

U. S. Government,

Securities

the higher

ment.

plain

the

on

in

State and

unless

possibility since

(

Spring Meeting of the
Ranch,

that

to the individual

stripped of its

does—things far removed

involves,

;

prepared to acknowledge and respect it as an
rule; It can never be absolute as to Depart¬

heads

ment

every¬

of planes or the training of troops.

security

as

inviolable

;

must be strong—and

affected

is

security

from the building

clear

are

respect it as to them.

thing that your government

National

heads

strong.

44

page

TEXAS

must stay

we

But this is not enough.

want to be free.

is

It

think

we

principle applicable

parochial?

or

absolute

further, we also know that this defense
of America demands still other weapons.
We must, of
If

■>

As to subject /
matter and method, does it or should it protect the individual teacher from
control
by his Department head?
Does it or should it protect the De- <
partment head from interference by«
higher faculty authority?
Does it or
William Chamberlain
should
it
free
the^ higher faculty
authority from control or interference by state authority
in public institutions or the highest administrative au¬
thority in privately endowed institutions?

sacrifice.

tion, our readiness to

a

experience, tenur^'
If not, to what -

ought it to be appli-ls

,

.

moral ideals cherished
Americans—the true treasure of our
people. This treasure of the spirit must be defended,
above all, with weapons of the Spirit; our will, our devo¬

Chronicle, 25 Park Place,

or

it

/ Is

private,

by generations of

7, New York.

;

a

all institutions of learning, state,

to

sit in your homes
this broad land, I want to

fense of those

related phase of the subject under
should be addressed to Editor,

of

rank?

or

teachers is it

our

we

Is it

irrespective

talk with you

all

loosely used term.

principle appli- /
cable to all lawfully licensed teachers '

you

as

a

-

determined?,

v
/

grounds they follow a policy of indoctrina¬
of our government by force.

on

ject matter and method? If not absolute, what are its limitations and by
whom are these limitations * to be

know that

Letters

Commercial and Financial
New York

Tonight,

/

of

their opinions regarding the above-mentioned

topic

-

freedom

against Communist

Its compre¬
considera¬
tion.
What is its scope?
Is it a freedom absolute in
character in all matters respecting both academic sub¬

President's

My fellow Americans:

*

Defends action taken

Academic Freedom is

*

ex¬

press

discussion.

full text of the
address follows: y> '1

the

abbreviated. forum
are

The

ing

think? To help clarify the subject,

you

/to

contends

to its limits, since no

hensive nature is revealed by the most casual

is advisable and
continue present
their ex¬

it

program,
necessary

as

nationwide radio

on

practice illegal.

'

a

May 19, revealed to the people his tax pro¬

piration dates the special taxes which
Congress has already provided for
heavy defense expenditures.
:

currently

the subject of amending' the; /
There are some who feel that
picketing infringes on property rights and civil '
liberties and advocate the Act be amended to make
the

Eisenhower, in

misconception

tion and advocate overthrow

taxes and to extend beyond

WHAT 00 YOU THINK?

♦

teachers

for the remainder of the year. He pointed out,
in view of the "age of peril" in which we live and the
need for maintaining the current de¬
even

Committees of the House and Senate are

on

a

absolute.

is

gram

fense

holding hearings
Taft-Hartley Act.

there is

taxes until Jan. 1.

come

Power Company

Mr. Chamberlain defines academic freedom, and

corporation tax and excise levies beyond
expiration date cn April 1. Favors no reduction in in¬

less definitely assumed re¬
sponsibility for the prevention of any serious
depression in the future. A good deal was made
of this
"promise" during the campaign last
autumn. Most men of good sense, including many
in public life, probably well understood and still
understand that there is dynamite in any such

CHAMBERLAIN

By WILLIAM

President, in nationwide radio address, says nation lives

Government then under the control of the Demo¬

Copy

a

EXCHANGE

40 Exchange

Place, New York 3, N. Y•

CHICAGO

111 Broadway,
WOrth 4-6000

NORTH LA SALLE ST.

Teletype NY 1-702-3

WHitehall 4-8161

Boston

N. Y. 6

Teletype NY 1 -270ft

Telephone:

Enterprise

Iftlft

2

(2186)

The Commercial and Financial Chronicle

The

WE POSITION and
TRADE

IN

Security I Like Best

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

Air Products

participate and give their

for favoring

reasons

(The articles contained in this forum

Arkansas Missouri Power

they to be regarded,

are

Central Public Utility

as an

offer

Duquesne Light

FISIIER

as

etc.,

Warner

Well

Pfd.

War

&

II,

the
old

the

are

be

&

should

...

.

,

,

is

would

point of all

manufacture
of

American

120

Stock

that

charac¬

already

ma¬

years

tool

plant

been

of

Exchange

Teletype NY 1-583

of

engineers,

machine

that

dependently

of

as

of

Textile

each

other,

Woolen

the

pre¬

fact

Institute

and

to

one

this

of

Rights & Scrip

II

Members
York

Stock

textiles

with

tremendous

Exchange

financial

as

when

condition

asset ratio

reported

a

ated

over

to

ment

to

take

1

of Dec. 31,

as

with

and

of all

care

plans of the company, taxes

port

were

experiments, their engineers

$4.53

share

team

which

figures

yield

a

Mr.

Mr.

Tait

assumed

Stock

sound

a

effect

to

the

management
restoration

BROADWAY, NEW YORK 5
Tel. REctor 2-7815

of

onstrated his capacity as

upon

cloth

there

American Furniture

Bassett Furniture Industries

Camp Manufacturing

ideas and

own

Life Insurance Co. of Va.

to

Switzerland

Sulzer

so

STRADERJAYLOR&CO.,[nc
TWX

LY 77

do

as

but

soon

machine

dollars

of

far cry

a

as

back
new

in

now

batteries

various

mills

machine

of

in

time by the

same

of

tucking

units

will

the

cloth.

In

fact,

if

a

thread

breaks, the machine automatically
stops
cloth.
costs

then

and

without

can

leaving

Quite
for

be

started

mark

in

the

machine

to

cut

a

a

machine

its

tool

Capital

Per Share $49.76

$23.00

Latest

capacity to filling
priorities and has

CO.

Exchange
Exchange

Building

DETROIT 26, MICH.
Office—Bay City, Mich.




a

Tel.

Broadway

99

WALL

capital gain
income

is

outlook

and
as

it

the

well

increasing

as

SUGAR
Raw

—

ter, N. Y.
the

r

earth

-

developed is the
moving machine

veloped

by

machinery de¬

Warner

&

Swasey

Commonwealth

those

of

a

indus¬

in

Let

various

any
u5

the financial

Stromberg-Carlson

indus¬
in¬

now

status

and

Common Stock

of

into

its

operations—these

being

Bought—Sold—Quoted

the supporting factors in arriving
at my above indicated conclusions.
The

producing

substantial

a

electronic

of

and

Prospectus

Benjamin

L.

new

over

dynamic

and shows

Such is the situation with

Management is the most impor¬
factor in any industrial en¬
terprise. Here we have a com¬

request

A substantial

Gordon Graves & Co.

WHitehall 3-2840

of

this

are

Broad

Street, New York 4

a

.Telephone

Included

this

in

Teletype
NY 1-809

410 Pan American

profit is derived from tnis

busines.

Bank

Bldg.

Miami 32, Florida

work

such

standard
products
as
equipment, radar sets,
transmitters, direction finders,

telephone

sound systems and

amplifiers, and

various types of electronic equip¬
ment for all of the services.
De¬
fense

company today.

on

vol¬

communi¬

30

sonable

management takes
results.

into

any

the

At present government sales are
possibly as much as half of Stromberg's aggregate volume. A rea¬

a

in

attraction

investment.

is

cancelable.

secu-

s

stressed,

government
long-range variety
and considered as practically non-

order

should

run

backlog

Over-the-Counter

is large and

Quotation Services

into 1955.

tant

The telephone division last year
established
a
new
high as the

which for years operated
successfully and profitably in the

volume exceeded those of the
pre¬
vious two years which had also

pany

which contractors,
utilities, road
builders, political subdivisions, fields of radio receivers and tele¬
etc., are finding very useful and phone equipment.
During World
which is
producing a substantial War II, much defense work was
done involving electronic devel¬
volume of business.
These items,

with other textile

trial

volume is of

this

Gradall

cardinal

proportion

pressed, and where

important item which

-Futures

DIgby 4-2727

management which,

civilian production.

machine tool backlog is still huge
and it will be months before it is
down to where major effort can

inaugurated with the weaving

success.

cation equipment for the military
service in addition to their normal

To

great¬

opportuni¬

i tie

of-a

previously

ume

ties for profit¬
able investing

in

I

are

Co. of Roches¬

sound

for

Liquid

—

Exports—Imports-

itably and three of these divisions

Strom¬

berg-Carlson

basically

to

Refined

company has four major di¬
visions.
All are operating prof-*

stock

common

of

as

company

up

Without

as

quire

the

about

only

STREET

NEW YORK 5, N. Y.

Therefore, I have tried to bring
readily rec¬

tributes

conditions,

economic

active

is

month.

a

Tel. NY 1-1932

ognizable accomplishments and at¬

available

thirty

New York 7

DIgby 9-1550

LAMBORN & CO., Inc.

leader

vision,

and

courage

these keynotes to
>

occasion¬

Another

Members:

Branch

the

ally

the company has

1051 Penobscot

-

is, the security most attractive for

are

machine.

Information

Members N. Y. Security Dealers Ass'n

150

singular

enthusiasm,-

over-the-

PRIME

L.

be

Approximate Market

NORELAND

the

"'■/•.

orders, they are
Prime
coming in anyhow and the back¬ try where, for
log of orders represents a year's certain reasons, the company has
production at current rate.
troubles, the stock is de¬
The had

Value

Stock

with

been able to produce the
weaving
machine in very small amounts
of a few a month. Even now the

solicitation

Per Share $26.34

Stock

in

existing

production

MILLS

Detroit

Under

est

of

traded

>

-

Up to this time the com¬
has had to devote the major

portion

ALLIED PAPER

Gkrsten & FBENKEL

is on the threshold of rec¬
ognition for its ability, hard work,

common

Stromberg-Carlson Co. Common Stock

me

dustry.
pany

Swasey

Neergaard, Miller & Co., N. Y. City
Members New York Stock Exchange

struggling textile in¬

a

request.

Carlson is

General Partner,

as

many as three widths of

as

is

&

BENJAMIN

country.
twice

weaves

on

Ry.

1959

out some of the more

operations

this

simultaneously
and
with
substantially fewer imperfections

CANCER

of

,

.

Warner

couple of

a

5s

mary,

future.

Switzerland,

for

5Vis

&

*Prospectus

his money

on

was

cloth

in

Midwest

good return

a

weaving machine has

been proven
in

from

what

weave

Per Share

likes

far

was

addition

CONQUER

selling
Earnings for

17.

After all, it's a rather interest¬
ing situation for the investor who

to

and millions

from

away

fast and at the

GIVE

current

counter market.

This

Book

around

stock

years

Lynchburg, Va.

Working

the

on

perfection and
the
present Warner & Swasey Sulzer

but the

Net

7.8%

price

from

away

brought

TO

over

machine is

Dan River Mills

LD 39

in weaving
discovered that

nothing

was

to

The

Commonwealth Natural Gas

l

idea

new

then

Ref. 4s

quality.
Strombergemerging from a morass
of ineptness to a
civilian travel was available after
high degree of
while going along with a wide¬
the war and get the American
efficiency and high morale. His
awake
management which has
management, in its secondary and
rights
to
the
Sulzer
machine, used plenty of gray matter in
tertiary echelons as well as pri¬
which they did.
fortifying
its
position
for
the
get

Trading Interest In

a

arid

Ser.

Wisconsin Central

nent

known as electronics,
possibly the
greatest growth industry of all.
In his four' years as chief exec¬
utive, Mr. Tait has amply dem¬

hit

Missouri Pacific R.R.

of

the Sulzers of Switzerland had al-.
1953 are estimated to exceed those
ready patented a machine work¬ of 1952.

Exchange

&

office

ing along their

American

120

Pfd. & Rts.

Aniline

Film "A"

Stromberg-Carlson to a preemi¬
position in a rapidly chang¬
ing industry now becoming

were

$1.35

President

as

April,

building

after

charges; dividends paid

per

in

1949 and earnestly and
efficiently set about the task of

Earnings last
according to the annual re¬

all

called

burgh.
in

improve¬

wd quick liabilities.

proving and refining weaving and
allied equipment. In the course of

offices

the Mellon National Bank in Pitts¬

more

year

branch

our

Conv. 4%%

67,731 shares 4% $50 par convert¬
ible preferred stock./

adequate cash being gener¬

3.2

to

General

leaving the finances in
position irom the standpoint

ester, who had achieved outstand¬
ing success as Vice-President of

of

wires

*Lone Star Gas Co.

quick

1952

Mobile, Ala.
Direct

corn^

Robert C. Tait, a native of Roch¬

than

possibili¬

NY 1-1557

'

Orleans, La. - Birmingham, Ala*

substantial portion of

a

the

of

Exchange
Exchange

St., New York 4, N. Y.

Hflnover 2-0700

New

carrying inventory and expand¬
ing profitable productive facilities.

100 years.

is excellent with

company

Since the end of World War

their

1946

shape

board

weaving in the last
The

had

Stock

war,

In April, 1949, both the then
incumbent Chairman of the Board
and
President
retired, and the

means

$4,500,000 has been spent
by the company in experimental
work, mostly in the field of im¬

ffiPONNELL 8c CO.
New

field

the

of

practically stood still for the last
100 years and that here was the
ties.

Since 1917,

of

the

war,

25 Broad

in

this machine the most sig¬
nificant development in the art

W. F. Kurtz

production

and

result

It became
necessary to raise addi¬
tional capital through the sale of

called

after

a

the

working capital of the

weak

Philadelphia Textile Institute and

and

of

of

the

that

lengthy in¬
vestigation decided that the

York

station,

they presented one
gift to the Lowell

field

and

New

pany was expended on a modern
radio and television
broadcasting

&

a

In

the

Ameri¬

examined

Specialists in

*

Co. thought so much
S
Sulzer weaving

W

them

In

factors,

As

end

or f inancial

it started

by several
in practical

use

operations.

can

in¬

Steiner, Rouse & Co.

company was not in as good com¬

filling
importance
products have

proven

high.

the

at

petitive

and

new

actual

business Their

Broadway, New York 5

BArclay 7-5660

and where the

other

and

were

1946,

tremendous

experimental

1920

Member

taxes

of

maker

importance is in process
over from just pne

valleys

chine

ciation,

changing

needs

terize the

tool

ing several others requiring

peaks

Bought—Sold—Quoted

Members

tool

foregoing

the

machine

a

cision

the

Benjamin
L.
Partner, Neergaard, Miller &
Co., New York City. (Page 2)

the

machine

a

and

Established

.

Company —
Prime,
General

they

type of precision machine to mak¬

out

Associate

.

which

when

had

never

national

help to smooth

Corporation

Louisiana Securities

Members American Stock

that

of

.

business1

of

purely

The

Swasey

added

which

New York Hanseatic

nor

maker.

the

of

management

Warner

were

World

of

end

Company decided that something
new

Stromberg Carlson

Swasey Company

before

73-year

Southern Production

Swasey Co.—Wilbur
Kurtz, Proprietor of W. F.
& Co.,
Cleveland, Ohio.
(Page 2)
->

Kurtz

pin drafter^ converter,
also bringing in a good
■;

company

Puget Sound Power & Light

and

Fisher

the

volume"

Cleveland, Ohio
The

Corp.

Warner

sell the securities discussed.)

to

such

KURTZ

Proprietor of W. F. Kurtz & Co.,

Eastern Utilities Assoc.

Polaroid

be,

to

Alabama &

Stromberg-Carlson
WILBUR

,

Metal & Thermit

intended

not

are

Week's

Participants and

Their Selections

.

particular security.

a

American Maize Products

Morris Plan,

This

Forum

Thursday, May 21, 1953

...

opment and research.

vantage

was

taken

of

But

no

new

ad¬
con¬

struction with accelerated
depre-

achieved

record

in this division

ing

products

levels.

are

as

Included

such outstand¬

the

XY

dial

switching systems, manual switch¬
boards, telephone instruments and
similar equipment.
Customers of

Continued

fot 40 Years

National Quotation Bureau
Incorporated
Established 1913

46 Front Street
CHICAGO

on

page

49

NewYork4,N.Y.
SAN

FRANCISCO

Number 5222... The Commercial and Financial Chronicle

Volume 177

(2187)

INDEX

SEC's Revised Regulation W

On Academic Freedom—William

SEC thwarts Congressional mandate on "Schedule A"
Security Offerings of Small Business Corporations. New
rule imposing costly prospectus requirements,
including
financial data, will hinder flotation of small issues and

of small business in raising capital.
Legislative relief and abolition of SEC advocated. T

the, extension and enlargement; of it$ powers, the Securities and, Exr
change (Commission, through; rule?;making,- has
made many a blunder, and Siis -last one, which m
our
opinion thwarts the will of Congress, is no

;vv

•Let

.*•
examine it in the

;t.-

—

*•

t"

-

*

or

12

'

of

as

19

,

•.

'

*

•

•

•

20
*

Cover

—•

—Cover

3

:

—

•

Trust Co.

Price—„„ 14

Stretch-Out,

says

"1

„

22

and Insurance

Bank

HyconMfg.
Kerr-McGee
Deb.

Cover
46

Stocks-———-

'

Canadian Securities

60

——————

—

*

—

—

:

.

Einzig^-"Britain Disillusioned by Trade—Not Aid"

-

days

From Washington Ahead of

8
22

—_

thp News—Carlisle Bargeron—— 16

Indications of Current Business Activity.
Mutual Funds
•

NSTA

Notes

Observations-r-A.
Our Reporter's

and Bankers

May

——

—r__„—

Public

—1.

Utility Securities.——J__—

:'!

Securities

The Market

————43
53

—-

—

and You—By Wallace

Streete (successor to
"Tomorrow's Markets, Walter Whyte Says")
—
15

.i
.

.

.

The Security I Like Best——————
The State of Trade and Industry

prospectus is a stupid product, little read and less

41

_—

—

Salesman's Corner-.!—

—2

—

5

_

Washington and You——-4-

understood by the investor and used

mainly as
protection to the issuer and to the underwriter.

-

39

———

Securities Now in Registration-——-

Securities

41
56

—

time consuming and costly. It will do
nothing to facilitate the quick marketing of small
issues. It will, in this respect, make that approach
nearer to full registration where the cumbersome
must prove

5

—. —

Security Offerings--

.

48

i

FINANCIAL

l

Gardens, London,

Drapers'

E.

Established

C.,

Eng-

,anS'0/0 Ed"mrds & Smlth-

The COMMERCIAL and

PREFERRED STOCKS

60

* See article "Canada and the Security Analyst" on page 14.
f Column not available this week.
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51

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Leon Keyserling.

William J. Cheyney Analyzes Outstanding Consumer

charges in surplus, or receipts and disburse¬
as appropriate, for a period of at least two
full fiscal years prior to the date of the statement
of financial condition, and for a period between
the close'of the last full fiscal year and the date

have

Incorporated

Broadway, New York 6

15

_

—

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No Need for Defense

ments

For many years we

Reilly&Co.

(

Foreign Exchange Quotations Compiled by Manufacturers

we

page

J.F.

BO 9-5133

Dealer-Broker Investment Recommendations.—_

on

request.

5

—

E. S. Klise Takes Issue With Harry Sears on Gold

.

Continued

on

Direct Wires

and

a

t

George Warnecke Cites Realty Bond Financing Need and Hits

statement must also set forth "its income, expenses

never

Prospectus

-

61

SEC Restrictions

.

Pipeline

.

—

—(Editorial)

prior to filing the letter of notification, and this

.

Transcontinental Gas

4

SEC's Revised Regulation "A" Flouts Congressional Edict

statement of its

date within 90

a

.*

What Do You Think?—

the first time in connection with these small offer¬

condition

<

——

*

i

Eisenhower's Tax Program-——

instances put out by newly
organized or infant companies, the financial
data now made mandatory by the Commission for

financial

17

*

7

particular issues

a

Eastern

Transmission

_

—_

_

—Martin R. Gainsbrugh—

(

many

Thus the issuer must attach

Texas
>

'

the person to whom the securities are sold.
The new rule in considerable detail prescribes

ings is striking and startling.

Transmission

—

Business Outlook Requires Both Caution and Confidence

No securities may now be sold under this Regu¬
lation unless such an offering circular is
given to

have been in

^Tennessee Gas

Defense—Gwilym A. Price—______ 13

yThe Housing Problem—Roger W. Babsoh. ;

;

For the first time, the filing of a prospectus or
offering circular in connection with issues of
$300,000 or less has been made mandatory.

offering circular and, when

4-6551

11

Franz Pick Answers Harold King on "Earmarked Gold"—

heretofore those

STREET, NEW YORK

Texas Gas Transmission

mere

consider that

WALL

Telephone: WHitehall

Public Power Is Here to Stay—Ron. Douglas McKay—

offering circular.

the contents of the

Obsolete Securities Dept.,
09

9

;

In Defense of the Federal Reserve System
*
—Wm. McC. Martin, Jr.—16

7

after the filing of a letter of notification and a

prospectus

a

.>

-

Pyramid^

^Canada and the Security Analyjst-r--Richard W. Lambourne—_ 14

letter of notification,
upon the expiration of which the securities could
be offered to the public. That period has now
been increased by 100% and becomes ten
days
;

Beats Better Bids!

Power—Why and How?r-W. L. Davidsoni—- 10

Free World's First Line of

What, if anything,, does this new revised regu¬
lation do to accomplish those purposes?
Heretofore, there was a five-day waiting period
a

_—_

Looking Ahead at the Capital Markets—Roger F. Murray-

%

filing of

Siragusa-——

——

Act, it was intended
by Congress that such issues find a simple, quick,
ready and inexpensive access to our (capital

after the

6

Nudging the Inevitable-r-A Proposal for Freer Foreign Trade
—Richard Gienn Gettell-————

;r.-^v

markets.

D.

Nuclear Electric

tration under the Securities
;

Surplus Farm Production—Howard H. Gordon

Nothing-No Nothing

■

light of thd"knowledge
that in exempting issues of $300,000 from regis¬
us

5

:

.,—

V In the ceaseless; Hunt for

exception.

1

1„

Alleghany Corporation—Durable Financial
%^Ira U. Cobleigh—
1-

M*1* '

r

*

4

ustries
Outlook for Appliance and Television Industries

*

.wSecurities and Exchange,. Commission.
as it is now constituted can.
y'* '
always be counted
!■ upon-.tothrow a spanner into the: works, and it > V v'J
V Hasp. done so fey actually
adopting.Revised: rules
dealing with; "Regulation A" puldic,.offerings of
$300,000, ot less, of small business enterprises.
;

j. Collins

—A, Wilfred May

The Problem of

Y

^

AND COMPANY

--Cover

__

-

-

t

Chamberlain

Look for Downward Readjustment in 1954—Charles

'■?.—-Ross

A.

page

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4

The Commercial and Financial

(2188)

mediate defense

however,

year,

influences
the

are

and

By CHARLES J. COLLINS

elements,

and outlook for busi- .
ness, and concludes on basis of evident contractive forces it
would seem fikely that downward readjustment in business *
will be witnessed during 1954. Holds shift may be of moderate
proportions, and in due course, inaugurate another forward.
movement in business. Says, if we view market from a atandpointof nation's normal - decade-to-decade- growthj- -stock
prices are not too high.
Mr. Collins analyzes present situation

declining

and

equipment
goods, is
flourishing.

.

.,

of

factors

rently,

But, unlike
"pother booms

cations

strength

is

sanguine

000

For

to

for

with

of

i

1 i

a

are

/debating

the

next
J.

Charles

sion,

Collins

depres¬

the

poses,

reces-

or

cur¬

call

mild

except

years,

inventory readjust¬

1949, we have enjoyed a

longest booms in the na¬

is

has

it

large expansion in

a

private debt. Out of these factors

healthy sign. Indeed,
this

been

element

of

stock

just

as

decline

market

cau¬

So far

cerned,

1946

of

for

the country

has

known,

ever

has

business

community,

kept the postwar

developing

the

that

excess

large

boom from

sumer

generally breed major
time,

same

of

truth

in

there

viewpoint and investors,
business

as

advised

if

would.be

men,

they

ments

are

refused

to

are

expected

hold

to

ill-

ditures

for

armistice

other

in

up,

increasing Fed¬

eral, state and municipal

give

con¬

inventory build-up. While
expenditure for arma¬

and be abetted by

well

as

plateau

purchase of durable goods,

and for

current

the

a

of

months

equipment, for dwellings, for

speculative

Federal

the

elements

some

con¬

peak

a

would be beginning of letdown in
business spending for plant and

that

deflation.
At

quite,

as

expansion

during^ the

postwar peridd to date. Two other
their

of

dwindling,

previously

ence, are

against

as

benefits

business

ness

and

has

reached

to

ings

and

maintain

a

against

unpredictable

pression,

such

de¬

a

1920-21

as

1929-32,

probably

and

market

and

1937-38

the

of

inevitable and sometimes
business

setback.

We

and

stock

have

so

reserves

depend, of course, on considera¬
tions, such as income need and

1948-49

and

ii

insurance

to

confined within limits somewhere
between

port

as

counseled, the amount of

be

will

con¬

for investors to reduce stock 'lad¬

what

to term

neces¬

ditions, it is always sound practice

however, that it will fall short of
come

some

elevated

sharp inter¬

their funds in bonds

have

mar¬

busi¬

it is

one,

witnessed during 1954. We assume,

we

a

a

of

course

mediate setback. Under such

.

be

will

category. At the
have mot over¬

levels, as has this
sarily vulnerable

expectation

our

contraction

we

sub¬

boom, has advanced for

time

re¬

money.

growth

time,

ket, during the

with the
eventually

easy

Altogether, it is
that

to

the

common

looked the fact that when

as

has

setback

lead

policy,

developing out of

outside business
resources, pecul¬

recessions.

what
in

refundings this
further

*

year

firming.

traction
year

now re¬

be

higher interest rate structure
maturities and -further

to

long

in

or

the

sooner

to

the

of

of

main agricultural products

our

expen¬

purposes,

Korea

results.

could

an

bring

to two years

one

recognize
Federal
not

have

possible drop

some

defense

expenditures,

material

so

ahead,

drop

a

as

to

major adverse bearing on
whole. Under a

a

the economy as a

continuation

the

of

cold

war,

we

must continue to rearm.

other
der

If, on the
negotiations get un¬
toward peace, we shall

hand,

way

still

short

the

bulk

medium

and

.

Elects Officers

of

ma¬

turities.

PHILADELPHIA, Pa.—The Mu¬
nicipal Bond Club of Philadelphia
announced the election of Eilwood

For the

but

continue

to

in

>

Phila. Mini. Club

short-term rates, it still seems ad¬
funds

would
t hen
V 4.
/
f

contrib¬

sidering the present rather small
differential between the long and
visable

selling

in order. v

seem

lowering of rates. Con¬

a

advance,

.

additional

credit

the

ease

situation and could then
ute

months ahead/ ' abandon
Jits
present cautious attitude and reg¬
ister
further
material

con¬

1954, however, would
later,

or

end

currently fixed at from 35%
50%..Should the market, over

the

lead to

may

Business

toward

influ¬

buoyant

(1) inventories,

restored,
our
exports
drop and price weakness in some

in

1953 is

envisaged

in the last quarter. Fac¬
tors making for late-year decline

subsequently kept alive
throughout following years by the
entire

debt

factors

we

der way

and

,

regarded

high. While there is little question

accom¬

beyond, with
possibility of decline getting un¬

biggest period of peacetime busi¬
ness

the year

as

we

activity in the first half,

getting into the

were

we

activity, with

goods

panying large employment.

tion, first nationally expressed in
the

is

debt

this

of

recent

over

business

undoubtedly

concomitant

has developed a high level of dur¬

one

able
a

Again, both consumer and busi¬
ness

credit

any

versal* of

just

Board

stocks

same

.

..

Chief stimulants to

high rate of family for¬

a

mation, and

it.

This

to

in

petus to production growing out of

wishes

whatever

or

1,010,000

1947-49,

1950, and 922,000 in 1951.

sio n, or re-

justment,

would

Lastly,

Reserve

we

a

stantial position in

,

throughoutthe
country

or more

seven

the

tion's history.

t s

s

average

years

garded as at a peak, and (2) farm
income, which receded nearly 8%
the period have been the war ac¬
in
1952
and
will
probably- be
cumulated backlog of demand for
lower again in 1953. As world pro¬
consumer
goods, the government duction of
agricultural products
expenditures
for military
pur¬
becomes

ists and indusr

industries.

which compares
of 1,244,000 for

608,000,

an

the

large measure of prosperity—one

press, econom-

t

somewhat.

Federal

major bear market,

or

ment of

the

stead,

other

family formation for the

to

the

the future. In-

ramifi¬

its

equal the rate or supply the-im¬

not
as

residential

all

1954 to 1960 running at 715,-

years

'

ment

with

through

average

The Business Outlook

history, senti-

•

eased

the

Census Bureau estimates show an

in the nation's
:

by

or

have continued to advocate

as
to
the ability
of these two
iar to the individual account.
For
prospectively, in oper¬
groups to carry the load, it seems
Outlook for Securities
those whose accounts are not un¬
ation, and what do they augur as
improbable that d e b t increase
der personal
concerns
the level of production
Bonds—Treasury refunding op¬
supervision, these re¬
over
the next, several years will
and the security markets?
erations have developed a some¬ serves, as a rule of thumb, might

durable

consumer

the

and

capital

construction,

family
anticipated
of

rate

long-range decline in
construction

the factors of weakness

are

picture.

the

hence

and

tained

expenditure
business to get new and im¬

tightened

the

hence the

and

capital

months,

situation.

attention to the present
What

buoyant

both

in

delationary,

period

for

at the broader proved consumer devices into pro¬
business, here duction once defense output has

or

behind

formation

large

armament

'?■' stimulus

is

Chairman, Investment Counsel, Inc.

by

im¬

On the adverse side, as one factor,

President, Investment Letters, Inc., Detroit, Micb.

Business,, supported

in

outlays, also.

Looking beyond the present

Readjustment in 1954

expenditures forrearmament,

reduction

moderate

about

Look for Downward

Chronicle...Thursday, May 21, 1953

continue

under

-

truce and thus cannot

defense

while peace,

armed

an

neglect
over

a

our
sev¬

eral-year period,
is
being or¬
ganized. But the period of heavy
outlay by industry for plant and
equipment to implement the de¬

Stocks—In

from the
1949-53

its

long advance S. Robinson
base, of which the

1942
rise

is

the

most

the

fused
that

to

stock

has

been

has

market

adjust

other

into

woven

" "" ''

jr..

re¬

inflation

the

to

Aspden, Robinson

recent
.

phase,

of

segments of the economy. If stocks
were

discounting

now

boom

earnings,

values

the

at

yields

cu r r e n

t

and

ratios

average

asset
pre¬

vailing at the 1929, 1937, and 1946
peaks,

the

present,
nomic

but

and

suggest
the

Dow-Jones

industrial

would not be at 275,

average

other

that

as

at

eco¬

considerations

large

a

inflation

war

Since

430.

at

measure

will

of

remain

as

a
permanent part of our price Eilwood S. Robinson
R. M. Ergood, Jr.
an end
structure, stocks, from the longimportant
Co.
as
President. Russell M.
range, or three to five-year ap¬ &
support to general business is also
proach, would still seem under- Ergood of Stroud & C6., Inc. was
to be anticipated.
•
■
priced and offering the best values elected Vice-President; Willard S.
among various American equities. Boothby, Jr. of Eastman, Dillon &
Summary
Over the long-term stocks should Co., Secretary; and Joseph E. Car¬

fense
and

is nearing

program

downturn

this

in

.

WWHVVHHHUHHVHMUVVUWUUHHHWUUWHWHVV

THE FOUNDATION

FOR THE STUDY OF CYCLES

On the basis of

discover

this publication
of

Revolutionary Insight

a

discussed

witnessed

will
not

into Stock Market Behavior!
The Foundation is
science

un international
non-profit organization. It was formed
scientific research in the fields of business, finance and
to the
public.

It conducts
.

.

.

makes these results available

Ten times

a year the Foundation issues
"CYCLES" to its members. These
project into the future newly discovered cycles in natural
science, the
stock market,
commodity prices, real estate activity, sales, and business. They
provide the investor with a revolutionary insight into hitherto

.reports

behaviors of the

stock

market

Discover how these vital
trial

2)

of

other

help

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natural

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our

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special $10

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YOUR MEMBERSHIP

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WHAT
1)

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renorts

30

PROVIDES

yet

to

40

report edited by Edward R. Dewey,
co-author of "CYCLES—the Science of Prediction"
and Director of the
Foundation.
Your choice

lone

Jan. 1952—a

issue)

of

the

page

following important issue

of

partly

penetrating

study of the 8-year cycle of Industrial Common Stocks.
8-page study of the cycles in the stock market.
Dec. 1952—devoted to the
Important cycle in Allis Chalmers; Jones and Laughlin: Sears, Roebuck; Pittsburgh Plate
Glass; Youngstown Sheet and
Tube, and Swift and Company.

A 46-year Cyclical Projection Chart. This is a chart of the
various stock market
cycles which was made in 1944 and projected to 1990. See how it has worked for
the past 8 years.
Watch it unfold in the future!
It is
offered FREE of

extra

to

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members.

But

act

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influences

such

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support, present and prospective,
that

lowever,

contraction
tions

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confine

moderate

the

propor¬

and, in due course, inaugu¬

point of

the

nation's

rises at

nually,

a

or

rate of

the nation's
over

sure

you

get your copy!

that

interval.

top to this channel,

the

character

of

the

Administration,

the

and actions of which
since taking office has done much
restore

confidence

underlying business

as

the dollar and

to

the

tive is
as

a

omy.

integrity of

to fair treatment

as

once more

The profit

mo¬

Please enroll me as a
the Founda-

member

in

Ition and issues of "CYsend me the
next 10
I CLES"

also—at

no

cost—your 46-year Stock
I Market Chart and the
.

(

|

"CYCLES".

)

1952

issue of

My

9 East 77th Street
Name

i

•

New York 21, N. Y.

hospitals,

would welcome

getting under

check




dividuals

a

etc.),

that

slack period for

way.

that

prosperous

Dow-Jones
would

Union Securities Branch

the

when

WEST

Union

opened

industrial

currently

and

the

Third

and
.Zone

would

are

ease

a

is

the

have

absence,
public

branch

office

and

State.

to

sell

hence

to

to The

Financial

Chronicle)

PORTLAND, Ore.—Edwin Todd

far, of

is with George Patten Investment

speculation

Company, American Bank Build-

so

a sus-

ing.

I894fc

CORPORATE BONDS

duction.
look

LOCAL STOCKS

the

Fifth,
great

The

Robinson-Humphreij Company,Irtc

business

income,
purchasing power,
by tax re¬

we

must not

over¬

technological im¬

provement growing out of the

re¬

242

With George Patten

at

STATE AND MUNICIPAL BONDS

pe¬

that could be supplied

at

average

ESTABLISHED

the

large increment to

—

William Renner.

of

(Special

reckless

Y.

business period, the

Because of the above considera-

the

a

N.

Corporation has

Windsor Lane under the direction

320 to 330.

tions

HEMPSTEAD,

Securities

of

consumer

T-

an¬

it has done

Second is the huge need for
improvement (schools,

Fourth

-

Address

City.

following were elected to
the Board of Governors: Walter L.

econ¬

rising unemployment and
furnish
a
purchasing
reservoir
once
prices declined sufficiently.

for $10 enclosed.
| UNCONDITIONAL MONEY-BACK GUARANTEE! Full refund if not delighted
j
j
with first issue, pro-rata refund any time thereafter.
(C-5-21)
|
|

as

reach

occasions

past

many

To

being recognized that has generally preceded

desirable feature of the

roadways,

riod

FOUNDATION FOR THE STUDY OF CYCLES

extra

■

3%

the country was enjoying, as now,
a

viewpoint

Kerner

Schumann

productivity has risen

large savings in the hands of in¬
MAIL SPECIAL MEMBERSHIP COUPON—TODAY!

J

around

about the rate at which

on

is

&

of Hemphill, Noyes &
Co.; Russell S. Schaffer of Schaffer, Necker & Co.; R. V. Wehrheim
duly high. This is apparent from of The Philadelphia National
a study where a channel is shown
Bank, and David B. Sharp, Jr. of
covering the past 56 years of Harrison & Co.
stock market history. This channel

business.
First

de¬

Close

The

cade-to-decade growth, neither
do stock prices then appear un¬

rate another forward movement in

National

normal

son
of Rambo,
Inc., Treasurer.

municipal

t

cost

Its

business

from Washington.

"CYCLES":

on

assessable,
and

Feb. 1952—an

3)

1954.

psychology
and pending developments in the
field of foreign politics and for¬
eign finance. There are factors of

to

—

during

depend

sumer

in 1940.

contractive

above,

seem

invites readers
to

the

sell appreciably higher.
it would
If inflation be ignored and we
likely that downward readadjustment in business will be oview the market from a stand¬

forces

RHODES-HAVERTY BLDG.
WALNUT 0316

ATLANTA

1, GEORGIA

LONG DISTANCE 421

Number 5222... The Commercial and Financial Chronicle

Volume 177

(2189)

Cites
Steel

The

Realty Bond
Financing Need and

Production

Electric Outputv

Carloadings
Retail

State of Trade

Food

Price

Auto

and

Industry

•

By

George W. Warnecke, New York
real estate specialist, says move
in this direction may be most im¬
portant development in real es¬
tate field during next few years.
Scores rigid SEC registration re¬

Failures

J
Total industrial production for the period ended on Wednes¬

day of last week held close to the near-record level of past weeks.

Further, it continued to be discernibly higher than the year-ago
level and about 3% under the all-time peak reached in the last

durables but many

'

George
York

.

national

method like

the

rt

f i

been at

in

1 d

it, '

a

real

an

estate

expert, who

industry will undoubtedly set a new production rec¬
ord this year—if it can get past the wage hurdle without a strike,
declares "The Iron Age," national metalworking weekly, the cur¬
rent week.
So far this year production has averaged just about
100% of rated capacity. On an annual basis this rate would yield
expect the

raw

industry will

steel.
upon

to operate at

balance between supply
butterfly, this trade paper asserts.

one-f i f t h

construction

new

issues

bond

requirements may

and demand is

tional

as

a

to

compared

as

of

financed by

was

2%

the

soon

of

resources

ex¬

conven¬

and builders will

investors

P

May

Wilfred

d

n

blind

that

i

r

e

s

o

n,
o

f

strike the observer not only with
intra-West

the

split

on

economic

issues, but with the interaction of
the
economic with
the burning

It confirms the

political factors.

attribution elsewhere of the flar- Paris - Washington
economically rooted

London

ing

to

tempers

gripes.
Here

the Danube's

on

of

one

West's

the

Vienna,

three

world¬

physical points of contact
with the Soviet, it is fitting that

as they are now. It also reflects belief that demand will
•still be at high level during the third quarter and that the market

struction

over

won't

rising beyond $26 billion annually
while
increases in mortgage fi¬

reported recently by
the Bankers Trust Company are

their

worries

their

Western

kets

(though it will probably decline

moderately in the fourth quarter), continues this trade journal.
•

Steel producers

that steel

they

sure

can

are

based

Regardless
demand is

that bona

frequently cancelled once the word gets around
be delivered on short notice. That's one pf the rea-

are

carefully in

most mills screen their orders

•sons

conservative view of their

a

Some of them have learned the hard way

order books.

V fide orders

historically take

as

of

on

as

The hottest and

happens

is

as

pulling out all stops in a great produc¬
the Big Three has been able to obtain prom-

At least

much steel

as

are

it thinks it will need in

the second half.

of these

pacesetters of demand plans to boost its pro¬
duction in the third quarter, this trade authority points out.
one

As had been

have

now

predicted by "The Iron Age," most steel producers

raised extra charges on nearly all major steel products.

Although steel

consumers

could not be expected to applaud these
Manufacturers

cost increases, there have not been many squawks.

.

contacted

by "The Iron Age" in several steel using areas gener¬
ally indicated they would pass the higher costs on to the consumer.
A

reduction

of

output

automotive industry
-

and

severe

unemployment faces the

during the next few weeks, states "Ward's

Automotive Reports."

a

It will be due to labor unrest and supplier strikes, the agency
said.

Last week, however, car output remained high with 142,566
completions, compared with 140,405 in the prior week and 94,579
in the year ago week.

to date the industry has turned out 2,433,271 autos,

'

Continued

on

page

45

agreements
rises.

On

rent

peace

Warnecke

negotiable
"logical

small-denomination
securities

estate

real

invest¬

conventional

when

step"

ance

has

tional

supporting

Americans

nically

from

smaller

investors

it

combined total of
approximately $431,000,000 worth
a

issued

amount

was

In
opposing the proposal for
promoting private foreign invest¬
via

sored

International

resist¬

have

whom

The three other main

this

before

parley

are

questions

motion

convertibility,
of

Cor¬

buy

to

can

attitude at home.

on

it

of

as

and

funds

U.

diversion

private

for

another

as

They frown

socializing

a

public

burden

private

and

only $24,000,000.

We

are

would-be

the

receiving

Australia is

with

us

and of

course

Merrill
..

.

(Special

India is all for it.

Lynch Adds

to The

Financial

GREENSBORO,

Chronicle)

N.

C.—Ernest

with

Merrill
&

affiliated

Lynch, Pierce, Fen-

Beane,

107

West

Gaston

Street.

following,

with

associated

as

us

Registered Representatives

CHICAGO

$300,000 which

are

noted

not subject

tion

or

to

appropriate

action in

tive

the not

too

Ralph Randall

Willard Flint

relaxing registra¬

Lindquist

Howard

J. Milton Coulter

growing sentiment

requirements which, he said,
lead

John Lavin

George Beardsley

a

revising

Edward M. Harkness

Roy H. Klute

registration.

Andrew

Henning Florin

Stayart

legisla¬
distant

MILWAUKEE

MINNEAPOLIS

future.

Charles

Evvald Klumb

Shafer

Daniel H. McKellar With
Bulletin available upon request

JOLIET

Marache, Dofflemyre
(Special

LOS

T. R0WE PRICE & ASSOCIATES, INC.
INVESTMENT

.

V

RESEARCH

AND

COUNSEL

H.

to The

McKellar

Calif.—Daniel

become

associ¬

Spring

South

634

Exchange.
-been

STOCKS

in

&

Street,

members of the Los Angeles

featuring

GROWTH

has

ated with Marache, Dofflemyre

Co.,

James Mclntyre

Financial Chronicle)

ANGELES,

CRUTTENDEN & CO.
Members

Mr. McKellar who has

the

investment

New

York

Exchange

Stock

and Midwest Stock Exchange

Stock
209

S. La

Salle Street, Chicago 4,

Illinois

Phone—DEarborn 2-0500

business
"

for many years has

MATH1ESON

BUILDING

BALTIMORE

2,

MD.

with

Hemphill, Noyes & Co. and

Shields & Co.1

f




recently been

■

-

•

\

Lincoln

"

op¬

England is luke¬
warm,
particularly remembering
her groundnut and similar fiascos,
posing the idea.

pleased to announce that the

now

the

coun¬

in

formerly with Mason, Moran & Co.,
are

use,

particularly out of
the present climate

under

order

in

tries.

pro¬

investment.

on

S. taxpayer

tariff re¬

initiative of
potential bond issuers, and (2)
published statistical data do not

for

BONDS?

spon¬

mission hamstring the

may

LONG TERM

Bank

Finance

N. Beard, Jr. has become

imposed by
the Securities and Exchange Com¬

He

BUT

the

poration

the

demolish

of

istration requirements

der

TO

World

ment

the eco¬

crumbling

two

figures, Mr. Warnecke ob¬
served, do not give a completely
accurate picture of the favorable
bond trend because (1) rigid reg¬

to

IT TIME

circumvented for

not be

and

registered with
the Securities and Exchange Com¬
mission.
In 1943 the comparable

a

potential "down the drain"

a

bonds

of real estate and financial
were

that

operation.

crashing the gate of this con¬

duction,

year

feel

would

will

such

ner

he stated.

here

be
unnecessary,
political realism makes
certain
that
Congress cannot

and

cur¬

ference.

pooling them into big funds,

$5

minimum

significant that the Kremlin

smaller

amounts

kind of stabilization
billion or so. While

of

some

40-member trade delegation

been

accepting

Last

a

Vienna,

become

by

convertibility, the

fund

mar¬

trading with the Soviet.

only

available

and

to

It is

in

can

will

front

already

ment sources are exhausted. Addi¬

funds

offensive to

West's

a

Eastern

Moscow's

of

nomic

issue

the

called

at

split from the U. S. .will
our allies plugging for a

in

occur

aiming

and

••

currency

Western

b.y depression
all make it certain

expectations;

include real estate bond issues un¬

IS

and

broadening the country's real

Mr.

holding hearings on the Simp¬
Bill for ending of reciprocal

tariff

materials,
with
over
losing both

near-strategic

extension

for

politics puts
in a vacuum.
that resolutions

trade

restraints, their confusion

These

*

In the year

bond issues or

estate

home

hopes

son

classification of strategic and

that

of

'

ises of

below $9,000,000,000, he

"real

pious

being passed here for a 29%
Congress

the NATO countries with the Bat¬

tle Act's

similar method would fill the bill"

steel

most spectacular market centers around De¬

None of

now

as

dropping
said

con¬

estate investment base.

later this year, current
it has been for many months.

troit where auto makers
tion battle.

effort to make

real needs, "The Iron Age" adds.

what

strong

an

nancing

out that yearly
expenditures are

American

the

know

must

tariff reduction the U. S.

accentuated

apart at the seams

come

sources.

new

Pointing

excepting

equity capital
(launched at Mexico City Sep¬
tember
last)
does
the
United
the future of East-W.est trade is
States delegation
here uniquely
a
burning issue.
Impatience of
accord with the prevalent Ameri¬

wide

supply

from

all

illiterate

Airlines, must Congressional appropriation tech¬

then have to seek additional funds

The

But

and

the very day

are

u s-

Trans World

prediction of well over 110 million tons of steel produc¬
tion this year is based on assumptions that the industry will be
able to avoid a strike, and that raw materials will remain in good
<

.

na¬

Chairman

said modern construc¬

year,

tion
ceed

elusive

when

1929

George W. Warnecke

capacity throughout the year,, although
as

before

years

last

be called

the

recalls

The steel

50

i

c a n

the

veter¬

mists

trialists led by
Warren
Lee

War¬

Mr.

and

tions, includ¬
ing 60 Ameri-

A.

necke,

higher level in April, Secretary Weeks said, and unem¬
ployment was at a postwar minimum for the month.

Few

from

few

a

about 117.5 million net tons of

eeon o

years.

month earlier,

of

1,000 top busi¬

estate

e

Vienna

nessmen

portant devel¬
real

countries.

On

opment in the

_

This

plumping for trade versus
lowering of tariff barriers
the
U.
S.
delegation here goes
along whole hog with the other

these

im¬

most

next

a

from

"have not"

In

aid via

in

is likely to be

;

but one million above a year ago,
according to the Department of Commerce. Employment has never
as

Con¬

Congress

fi¬

another'

or

...•

^Employed workers totaled 61,228,000 in mid-April, or about
same

New

building

revival of real

a

first quarter.

the

States

estate bond construction financing,"

balance with

>

non-Russian International

ference highlights the plethora of
issues dividing the "have" United

our

Warnecke- of

W.

City,

nancier, predicts

In the first quarter

of 1953 United States output was in neardemand, the United States Department of Commerce
disclosed. The flow of goods to final use showed an increase of
$8,500,000,000 from the fourth quarter of 1952. "; Most of the rise
was in civilian products.
Merchandise placed in inventories during the first three months dipped to an annual rate of less than
$2,000,000,000, compared with $8,000,000,000 in the last quarter of
1952* Total output of goods and services in the initial 1953 quarter
was at a yearly rate of $361,000,000,000, up $2,000,000,000 from the
1952 fourth period, and $21,300,000,000 higher than the year-ago

a

allies.

observers anticipated little let down in total

output in the months to come.

MAY

foreign investment.
VIENNA,. May 20—Once again

requirements.

reported by some producers of consumer

WILFRED

East-West trade, tariff reduction,
convertibility and private

on

.

A.

Vienna parley highlight intra-West divisions

at

growing for relaxation of such
;

were

Industrialists

and notes sentiment

quirements

quarter of 1943,

Slight cutbacks

Western Style

Index

Production

Business

International Trade Conference

Kits SEC Restrictions

Trade

Commodity Price Index

5

Denver

Omaha

6

The Commercial and Financial Chronicle...
Thursday, May 21, 1953

(2190)

another

The Problem of

find

Surplus

increased

U. S. Department of

Agriculture

i

flexible

ways

of insuring agricultural stability

Fullest

Wants

Enterprise

Sees threat of heavy agricultural surpluses
breaking down present price support program.

Use

can produce.
Says
be solved, though there will be increasingly strong
competition at all levels of business and weak merchandizers

problem

.

Agriculture

in

Corporation, Chicago, 111.

sell all the civilian goods that
industry

-

Private

of

Admiral

Prominent television executive holds question of what is ahead
for business boils down to whether or not we can continue to

constructive way.

agricultural
officials
in
Washington most surely will not
initiate any stops which might
leave agriculture without neces¬
sary protections and services.
Your

worked out.

are

will be made

the needed changes

in. a progressive,

President.

But

winter.

this

do

to

had

have

By ROSS D. SIRAGUSA*

.

ter in less than six months—as we

supports, have stimulated a series of big crops, Agriculture
Department official holds government may be forced to clamp
mandatory controls to hold down mounting surpluses of cer¬
tain farm commodities. Says this may have to be done until
more

buy 150 million pounds of but¬

to

Pointing out high production goals, backed by high-level price

sounder and

Appliance

And Television Industries

plan which forces the government

Administration

and Marketing

production of commodi¬

already in surplus. Certainly
there is something better than a

By HOWARD II. GORDON*
Production

Outlook for

to avoid incentives for

ties

Farm Production
Administrator,

must

We

fiasco.

potato

ways

A

can

will find the going tough. Foresees
selling as greatest task in
appliance and television industries, and urges caution in forc¬
ing production of color television before satisfactory picture

guiding principle in develop-tube can be developed. Expresses belief
higher costs of color
ing sounder and more efficient
television w.l! be absorbed by advertisers. Decries fear of
This is a good time to discuss A Billion Dollars of Commodities operations will be the fullest pos-*
television saturation.
sible use of private enterprise in
the agricultural situation. We are
Held by CCC
facing some very real problems
The fact that we must look for- agriculture. This means keeping
the government out of any field
Tbe subject assigned to me occur in the forced draft level of
which must be solved in the near ward to these
controls, no matter
of activity which can and will be -tonight is "The Outlook for the operations at which we have been
future.
Gov¬
how distasteful they may be, is
handled efficiently by others. We Appliance
ernment
i n^and Television Indus- operating almost continuously
an indication of the over-all prob¬
want, to reduce government ooera-; tries.'
I shall treat it in broad since 1940. After 12 vears of a
12 years of a
want to reduce government opera¬
ventory
and
lem. The Commodity Credit Cor¬
rather - than
tions to the minimum, doing only>
military or semi-military econ¬
loan
holdings
poration now holds more than
those
things which producers—! detailed
omy, a period of adjustment is to
of s t o r a b 1 e
fgtr
a
billion dollars worth of com¬
and the whole" agricultural indus-J terms.; L 0 h g
be expected. We
can
have ad¬
price-support
modities in its inventory.
In ad¬
try
cannot well do for them-; experiienee
commodities
justment, however, without neces¬
dition, it has advanced another
selves. We have great confidence has taught me
are
sarily having a depression or even
building
$2 billion in loans on storable
in the judgment and the ability of that to try to
a serious recession.
'
r
up
rapidly —
commodities under the price sup¬
private enterprise, whether it b<ej predict what
What I foresee is increasingly
too rapidly for
port programs—and the total of
on
a single farm or in the great
th'e level of
comfort.
Ag¬
strong competition at all levels
these obligations will go higher in
ricultural pro¬
of business. Inefficient manufac¬
the
months
ahead.
The
total processing and distributive trades, 0 u r business1.
Given the opportunity and right w j i 1
duction has in
b e
60
turers
and
weakmerchandisers
carry-over of old wheat and cot¬
encouragement, we think they can day s or six
will find the
general caught
ton and corn, held by both gov¬
going tough. Al¬
handle
many,
of the problfemk months in the '
up
with
the
ernment
and
though some of us may have for¬
private
industry
which have not been solved by,
•post - Korea
when the new crops start to come
gotten it during the era of short¬
public agencies. And we know we f ^ t j j e
Howard H. Gordon
demand, and
ages,
wide open competition^ is
in, will be big this year—and it
will be on sounder ground when
in some
irh^ Jc ^, *more '
can go higher in the years ahead
normal and healthy for American
agriculture assumes the major re- llcpfn, tn —ti- V
portant cases it has already run
effective measures are not taken
business.
!
sponsibility for keeping its own
ahead of it. Current needs have
stabilize supply-demand relaRoss D. Siragusa
house
in order, with
only the
been met, reserves have been reSelling Will Be Biggest
tionships.
necessary
support
and service 5 built, and we are once again up
,,
,
. ,
•
,
Adjustment'!
t'.'
climate in which we. will be opfrom the government.',
again31 the problem o£ surpluses
p
r
^
eratirig and then prepare to make
The biggest adjustment for the
In saying this, however, A
This Administration found this
?want ,^ ,mog^ of v^bat : seems to be appliance and television industries
agricuiture for many years. But
.problem on its doorstep when it the seriousness of the problem
ahead.
•
\.Y' ; -' ^;
-as in most industries-will be
took office.
production goals,
immediately before us points up
?oer,nVi»ih?lltv
The underlying fact that must in selling. We will have to iribacked by high level price supfae|.
our
farm programs
on private enterprise.
ports, had stimulated a series of are still far from adequate. The
today is that the era of shortages and put a -great deal more mbig xrops. Coupled with this
preserit • Administration is comsubject to more variable factors ®nd *a *' war-supportedeconomy genuity into it. Since 1940, mera sharp falling off in-. exports* of
mttted to the task of developing
than
most other
industries, in- which began in 1940 is over. Three chandising in our industry has not
•some of our most important crops,
s0under policies and programs—
eluding uncertainties of the years ago when war broke out in kept pace with a number of other
and a leveling out of domestic de- t0
reduce waste and cost, to miniweather. There is an unusually Korea>
eountry set out to lines—particularly in soft goods
mand.
The inevitable Result was mtze
controls, and to open the rmick rpsoonsfi to chsnSps ib 'the ereate' a
dual economy which where competition' has^ been in—
surplus, with the threat of more way for
greatest possible deand to would permanently provide for a tense since. 1947,
:
do come.
nendence upon individual initia- supply-dernand
general economic conditions; large defense establishment and
You men who are operating
The Problem of Big Supplies
and p r i v a t e enterprise in Farmers are not in position to pttll also produce an abundance of successfully in New York, which
meeting our agriculture problems.
*

v

,

.

^uthre ^is

t

;™1^

^ .f"

!

•

The threat ^^e^omejur-

-

...

•

o

-

,

Agrlculturl

an^'nut TT.

-

-

subiectrtoCmoree^variaWe^factoft

.

.

.

...

,

.

.

,

sitSn®

^e

..

,

course,

,

...

.

what

big supplies

on

do

can

How

situation.

to

we

+1?

about

handle

Jhe
the

hand, and how can

\e-6u ^em
higher.

om

civilian goods. That goal has been is the most competitive market
reached. 'Industry has been ex- in the world, undoubtedly are
son, just because the demand outpanded to meet annual defense better prepared than dealers elseto
look has changed.
> ; •»• ■
requirements of $40 to $50 billion, where. Surveys show, however,
switch

a

Questiori for us J1
is

.

.

There are many new people in
administrative positions in Washjng^.on
know

and

cut

production

schedules in the middle of

a

sea-

you naturally want
something 0f our thinking

mountmg with

and

the

at

time

same

turn

out

regard to farm programs and
"Lilian products in a. volume at
services, and the relationships be- somd
least equalling the 1950 highs.
;
A
return of production
and tween government and private
' Evidence of our success is all
marketing controls may of course enterprise in doing the things which is necessary to assure conbe one answer. Nobody likes this which must be done. Without at- tinued production at fair prices, around
us.
The pipelines, the
To the extent that private indus- warehouses and the stores of the
'type of regimentation, but there tempting to outline any new prodevelop thd nation are • fully
stocked with
may be little we can
do about gram, I will try to give you a little try can and
needed machinery and services to eyerything from nylons to farm
it until there is an opportunity idea of our policy approach,
stabilize the handling and mar- machinery. Industry is practically
to work out sounder and more
In the first place there can be
flexible ways of insuring agricul- no
keting of commodities—and farm- free of government controls. The
question about the need to
still

oDeratfons^to ma^^tei^the
deSee
afttoftondSilSv

willP

ers can and will make the neces-*
high- keep agriculture
strong and proslevel price supports
sary
voluntary
adjustments
to
there isnt pcrous. This is
important not only
much chance of avoiding produc- for
farmers and ranchers them- help maintain a reasonable balr
ance between supply and demand
tion controls unless farm producseiveSj but a]so for all the rest of

tural

ers

stability.

are

able

With

rigid

the

make

to

—then

neces-

to

that

extent

will

it

be

the national economy. You who
possible to keep government out
voluntarily. The buyi and
process, and sell agriculof the operational picture.
such controls, under tural
,
commodities know this well,

has complete

today

buyer

free-

that they would

welfare
upon

eventually break producers. If

down the whole program of agricultural security. As a matter of

to prosper,

depends very dithe welfare of farm
you are

produce in adequate volume

and

111

relation

to

demand,

gree

this holds true for other seg-

The

Secretary of Agricul- ments of industry. There; is no
already asked Congress such thing as a separate farm
for authority to start getting ready problem.
The
interrelationships
now
for possible acreage allot- are so direct and positive that
ments and marketing quotas on agricultural welfare is
obviously
the
1954
crops
of cotton
and basic in national welfare,
ture

has

wheat.

yet

The final decision has not

been

either ci-op
until

tion

the

is

with

made

regard
A

and

latest

it

will

not

be

possible mforma- of

available.

be necessarv
ne nece sary

Pr°gran}s a"d services. Rather, it

that

we

work
♦An

are strong enough
are strong enough so

must start the

by

Mr.

^

mtention

ing better and
Gordon

at

the

to

build

on

the

more

effective pro-

gra^S. We feel that the present

£e°eTDo™ l°eVE'e£snohc?,n.t;e„,Pr°g™ms can and must be imTexas, May 4, 1953.




good

0f

available

storage when big
in on top of heavy reserves

come

be very serious, not

only for
farmers but for the entire agri¬
cultural industry. It can be serious
for the government when, under
present
programs,
it
may
be
obliged to take delivery on mil¬
lions of bushels of loan grain.
There have been bad pinches in
the past. In fact, the Commodity
Credit
Corporation
now
owns
can

these

bins, except in

cases

•

.

handle

preliminary experience of the past in develop- house

immediately.
address

1S

a

Lack

some
of these
emergencies. We
Realizing the ^ importance
a
prosperous agriculture, this would prefer not to have to use

feel the chances that controls will

we

offer

proved. There

can

be

no

room

for

We
our

would

very

special

much

rather

storage with the

industry,

through

and he can choose

products

be-

doubt
also bargain

tween brands. As you are no

on

do this will of

normal

the

sort

of

course

program

Continued

on

depend

industry
page

.lf.

8

p

.J

.

easoline

up-to-date

soft

chrJ!

p'r

;

tr^ a^e u"aJtr!1ctl^'UP°? ?/r
^

^

j

i

Many

them look like glorified repair
shops, As a rule, floor men qre ^o

inadequately trained they hardly

I expect this situation to con- qualify as good order takers let
Hnue whether the fighting in ai0ne able salesmen. Harsh as
Korea ends or not, °r whether the this indictment may seem, it is
military program is increased or deserved far more often than not
could

war

back.

And

know,

is

scale

35

Only allshortages

moderately.

decreased

out

war

bring

the

m

i

industry today.

cite these facts not

t

to be

un-

so far as I pleasant but because they constipredicting large tute a definite handicap now that
in the near future. On unlimited
competition
is
back
no

one,

now

the other hand, while the defense and back to stay. To avoid serious
are going to have to
selves, advertise, prowill be mote and ring doorbells with all

probably will be cutback

program

somewhat, I know of no one who
believes

it

should

be

or

So the
for

question of what is ahead
boils

business

whether or not

sell

all of

dustry

can

down

we can

the

civilian

goods in-

new

of

products and

pre facirg.

industry as

the

slackening

IppTaT,1 r?ew

York

Until

Quarter million units

year,

a

some

Mr.

example.

Wiifr controls off, production has
*° an annuai
.s®ve^J

Over

by

an

®arly this year automobile productmn was held by government
control to approximately four and

full utili-

however,

address

Take the automobile

expanded

mean

industry's

capacity.

*An

There is no alternative if we
to match the competition we

are

now. produce. For the

wants should

zation

we

our

1930s,

to

continue to

longer term, I believe we can. Our
raPidly rising population and the
new

trouble
roll up

the force the industry used in the

severely curbed.

development of
ware-

channels. The degree to which we
can

the

or

:

,

about 550 million bushels capacity
of storage bins—bought to meet

Administration has no idea of discar(iing any sound and beneficial

However,

facilities

illustration of this point

11 Farnf^ld^n Sound
Farm Program

to
,

Storage Problem

Storaee

to continue

they must continue to

fact,
present
legislation
defi- to sell at prices which will
pronitely provides for allotments and tect their
buying power as good
quotas when supplies reach speci- customers. In
greater or less defied levels

The

P

^ation

The ,maJ0rity of TV, and appli-

about price
0
Pnce.

rectly

^ mbdlS p^twar^

ance stores throughout the coun-

choose-between

can

keenly aware, he can

Your

Iigible^since 1940- stores have

not been kept modern. There has
bee.n «<? development m appliance

kinds of

he

absence

the conditions we face now, could
result m building surpluses so big

ap-

pliances and TV is weak. With
few exceptions, progress has been

dom of choice in the marketplace;

sary adjustments

of

that in general, retailing in

short-term,

Sira^usa

may
before

cit^May1953'

™^

5%

lion units.
-

a

mil-

The automobile men,

Continued

on page

52

Volume 177

Number 5222... .The Commercial and Financial Chronicle

(2191)

NEW ISSUE

$100,000,000

DELAWARE RIVER PORT
First Series Revenue Bonds
(DELAWARE RIVER BRIDGES)

Artist's sketch

Dated

May 15, 1953

Redeemable

on

or

after

of proposed Philadelphia-Gloucester Bridge

Due December 15, 1957-73

June 15, 1958

the option of the Authority,

at

days' published notice, as a whole at
and including December 15, 1962; thereafter at 103%

interest payment date in inverse order of maturity at 104% to

on 30

time,

any

to

or

and 1983

in part

on any

and including December

15, 1967; thereafter at 102% to and including December 15, 1972; thereafter at 101% to and including December 15, 1977; and thereafter at
100%, plus accrued interest in each case. If less than all of the Bonds of any maturity are to be redeemed, the Bonds to be redeemed will be
selected by lot. No Serial Bonds may be redeemed prior to
redemption of all Term Bonds.
»'

Principal and semi-annual interest (June 15 and December 15; first coupon payable December 15, 1953) payable at principal office of The
Pennsylvania Company for Banking and -Trusts, Philadelphia, Pennsylvania, Trustee and Paying Agent, or of the Bank of the Manhattan Com¬
pany, Paying Agent, in New York City, at the option of the holder. Coupon Bonds in $1,000 denomination, registerable as to principal only,

exchangeable for and interchangeable with fully registered bonds, in denominations of $1,000, $5,000, $10,000
the expense of the holder.
•

or any

whole multiple of $50,000

at

lit the

opinion of Bond Counsel

to

the Authority interest

The Bonds and the interest thereon
tion

on

the bonds is exempt from federal income taxes under existing statutes.

exempt, in the opinion of Bond Counsel to the Authority, from all state and local taxa¬
directly imposed thereon in the Commonwealth of Pennsylvania and the State of New Jersey, except estate, inheritance, sue;
*••*' V'"' v
cession or gift taxes. \
;•
' ''/• V,
<
'
are

■

'■'/

'V*
";''
;*
J' t
Legal investment for Savings Banks; Trust Funds and certain other funds in the
Commonwealth of Pennsylvania and the State
of New Jersey.
, .•

■_

•

,

AMOUNTS, MATURITIES AND PRICES
(accrued interest

to

These Bonds

be added) '

of

$40,000,000 Serial Bonds

\

bridge

a

vide certain
Yield
Due

Rale

Yield

Amount

Due

Rate

Yield

Amount

Due

'600,000

1957

4%

2.15%'

$2,000,000

1963

3%

2.80%

$3,100,000

900,000

1958

4

2.30

2,200,000

1964

3/4

2.90

3,300,000

1,200,000

1959

3

2.40

2,400,000

1965

3/4

3.00

1,400,000

I960

3

2.50

2,700,000

1966

3/4

3.00

1,600,000

1961

3

2.60

2,900,000

1967

3/4

.3.05

1,800,000

1962

3

2.70

to

provide

moneys

for the construction

reserves

for these Bonds and for the creation of

reserves

or

for

principal and interest to maturity of certain obligations of the

Rale

Price

1968

mo

3.10%

1969

314

3.15

3,400,000

1970

314

3.20

3,500,000

1971

3V4

3.20

These Bonds

3,500,000

1972

314

100

lution

3,500,000

•

be issued

the Delaware River between Philadelphia, Pennsyl¬

vania, and Gloucester, New Jersey, and for deposit in funds to pro¬

Amount

,

to

are

over

1973

314

'

100

Authority

of

now

outstanding.

are to

the

be issued under the

terms

of the General Bond Reso¬

Authority adopted May 8,

Revenue Bonds of the

Authority and

a

1953 establishing the"

First Supplemental Resolution

adopted May 20, 1953 authorizing the First Series Revenue Bonds.
The Bonds and the interest

31/2% Term Bonds
$60,000,000 due December 15, 1983
Price

New

Jersey but will be payable solely from the

their payment

1021/2%

are

offered if,

Counsel

to

as

-

•

from such of the undersigned

Smith, Barney & Co.

as

Authority.

.

are

Harriman

Lehman Brothers

Drexel & Co.

Ripley & Co.

.

The First Boston

Corporation

Phelps, Fenn & Co.
Bear, Stearn & Co.
•»

BIyth & Co., Inc.

R. W.

Halsey, Stuart & Co. Inc.

■

Union Securities

A. C.

]. Van Ingen & Co. Inc.

Eastman, Dillon & Co.

Alex. Brown & Sons

Corporation

Allyn and Company
Incorporated

*

Equitable Securities Corporation

I

.

Hornblower & Weeks

Pressprich & Co.

B.

Glore, Forgan & Co.

Blair, Rollins & Co.

v/

Kidder, Peabody & Co.

Goldman, Sachs & Co.

Shields & Company

Incorporated

Hemphill, Noyes & Co.




available for

of the Offering Circular, copies of which may be
registered dealers in securities in this State.

means

Incorporated

May 21, 1953

revenues

and when issued and subject to approval of validity and legality of issuance by Hawkins, Delafield & Wood, Bond
expected that Bonds in definitive form will be available for delivery on or about June 15, 7953.

obtained

-

an

of the State of

the Authority. It is

Offering of these Bonds is made only by
-v

or

under the terms of the above-mentioned Resolutions

and from other funds of the

The Bonds

payable thereon will not constitute

obligation of the Commonwealth of Pennsylvania

Merrill Lynch, Pierce, Fenner & Beane

Salomon Bros. & Hutzler

Paine, Webber,

Stone & Webster Securities

Corporation

Jackson & Curtis

1

8

(Chicago, HI.)

June 5, 1953

Club

Bond
annual

Dealer-Broker Investment
It is understood that

the

Notes

NSTA

June 5, 1953

Stocks—Bulletin—Paul

&

NEW YORK

SECURITY TRADERS ASSOCIATION OF

Cluett,

Telegraph,

&

and

Peabody

election

the

announced

York

Charles

of

M.

Lone

Zingraf, of Laurence M. Marks & Co., to its

Star Steel.

directors.

of

board

Zingraf

Mr.

will

serve

1954, to complete the unex¬

through Dec. 31,

projecting into the future newly discovered
cycles in natural science, the stock market, commodity prices,
real estate activity, sales, and business—membership in the
foundation, which includes 10 issues of "Cycles," a 46-year

Cycles—Reports

issues

a

choice of

one

pired

term

McLaughlin,

John

of

Reuss

McLaughlin,

F.

who

Co.,

&

has

of

Charles

Fire & Casualty Insurance Stocks—1952 earnings

comparison—
Laird, Bissell & Meeds, 120 Broadway, New York 5, N. Y.
1952

M.

as

of May 14, 1953 is as follows:
Points

(Capt.),

Weissman, Murphy, Searight.

Klein,

50
48*&
46^

Jones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to

yield

Serlen

43&

Goodman

40

com¬

parison between the listed industrial stocks used in the Dow-

and

National
York 4,

market

performance

Quotation

Bureau,

New York..

over

Inc.,

/

46

13-year

a

period —
Street, New

Front

Portfolio Management—Package selections—in current issue of

Gavin

"Gleanings"—Francis I. du Pont & Co., 1 Wall Street, New
York 5, N. Y. Also in the same issue is a brief discussion of
Atlas Corporation.

Railroad

*

Stocks—Review with particular reference
Grande, Western; Gulf, Mobile & Ohio; St.
Francisco; Southern Railway and Wabash Rail-

Louis-San

Tax

Exempt

Obligations—Review—Sutro
Broadway, New York 5, N. Y.

>

Bros.

&

Co.,

and

V

Art

hot.

our

Let

make it

annual

Corporation Limited—Review—James Richardson &
Sons, 173 Portage Avenue, East, Winnipeg, and
Royal Bank
Building, Toronto, Canada.

Columbia Forest Products,
Limited—Analysis—Golkin
Co., 61 Broadway, New York 6, N. Y.
Chicago Corporation—Report—Vilas &
Hickey, 49 Wall Street,

.

N. Y.

..

Friday night accommodations and
dinner to be paid by member (rooms $4 per
person,
two to a room).
Transportation in
buses, Saturday and Sunday schedule costs ab¬

—

Y.

Also

available is a memorandum on Middle States
Petroleum Corp., an
analysis of New York Central Railroad

Company (bulletin No. 127), and
ings (bulletin No. 126).
Citizens
&

a

Co.—Memorandum—Carl M.
Co., 42 Wall Street, New York 5, N. Y.

Broad

Corp.—Memorandum—Hemphill,

Street, New York 5, N. Y.

randum

Loeb, Rhoades

The

Cook

a

Coihns

the

l. Macrae. Jr

Los

Lake

San -Francisco
that

Electric

Company—Analysis—Glore, Forgan

Power

Light

memorandum

on

General

Security

at

party

June

on

Continued

Club

Bond

EVENTS
In

Investment

Field

June 2, 1953

page

58

Annual field day of the Exemp-

of

Country Club.

Stock

annual

rial Golf Tournament at the Lee-

Bond

June




Mason,

which
and

formerly associated
Moran & Co., of
Harkness

Klute.

Messrs.

Mclntyre

were

officers.

Berman, Selonick Go.
Formed in Cincinnati
CINCINNATI, Ohio—Morris W.
Berman and Stanley E. Selonick
have formed Berman,

with

Co.

Tower,

offices

as

vestment

business

Selonick &
the

in

successors

Seufferle & Co.

of

Carew

the

to

in¬

Wm.;

Mr. Berman

Manager

of

the

trading

C.

was

depart¬

ment for Wm. C. Seufferle &

Co.

E.

Wissemeier, Cashier for the
predecessor firm, will serve in
the
same
capacity for Berman,

annua)

Inactive

Bank Stocks

1953

3-4,

(Minneapolls-St.

Paul, Minn.)

City

Bond

White

Club

Quotations and

annual

Bear

statistical data

Yacht

Club.

Boston

annual

Club

of Los Angeles

field

day
Country Club.

at

the

an¬

Wilshire

furnished

Club, June
trips

in

4,

the

followed

by

Francis I. duPont& Co.

field

Mtmitrr Nrur York Slock

American

Providence

area

1, 1953

ONE WALL STREET

Midwest

Stock

nuak Election.

June 5, 1953

(Chicago, III.)

.

.

Exchange
~

An^

Bond

Stock

(Baltimore, Md.)

Club of Baltimore annual

outing at theElkridge Club.

Exchange

Ex^k*K%e

Principal Security and Commodity Exchanges

Til.

June

on

request

Security Analysts Society

meeting and New England

June 5.

Security Dealers Association

Trinity Place, New York 6, N. Y.

Detroit

Regional meeting at the Harvard

nual

74

Minneapolis and Ewald

were

with

Exchange Firms fifth
June 4-5, 1953 (Boston, Mass.)
L. Wright Memo¬

May 29, 1953 (Los Angeles, Calif.)

Y.

has

Klumb in Milwaukee.

Walter

Univis Lens

N.

Stock

Mclntyre

(St. Louis, Mo.)

picnic at the

wood Golf Club.

Members:

James

May 22, 1953 (Chicago, 111.)
on

Cashiers Division of Association

Troster, Singer & Co.

of

Illinois Bankers Association 62nd

May 26, 1953 (New York City)

Bausch Lomb Optical

Midwest

and

Convention at the Hotel Jefferson.

Twin

Markets

Shafer in

golf party at the Meadowbrook Country Club.

Pea-

ters at Nordic Hills

Primary

Traders'

Co., 209 South

Street, members of the

York

iummer

Henke & Co., 135

Gas Corp.

\

Salle

Selonick & Co.

& Co.,

Company—Bulletin—Kidder,

La

fun®' 2, 1953 (Detroit, Mich.)

Street, Chicago 3, 111.
&

with Cruttenden &

an-

San Francisco Association.

memo¬

body & Co., 17 Wall Street, New York
5, N. Y. Also available
a

also

members wish to attend

any

Arrowhear

COMING

Company—Analysis—Swift,

South La Salle

is

if

Angeles

Association

19, 20 and 21, they
should contact Earl Thomas, Dean Witter & Co., President of the

Street, New York 5, N. Y.

Delaware

The Entertainment Com¬

MacMillan Co.

on

Continental Baking
40 Wall

1-bounces
.

Noyes & Co., 15

Also available is

by the club.

mittee, Collins Macrae, Jr., Wulf, Hansen & Co.,
Chairman, promises a full schedule of enter¬
tainment at the outing.

Columbia Broadcasting System,
Inc.—Analysis—W. E. Hutton
& Co.,14 Wall
Street, New York 5, N. Y. Also available is
an
analysis of Simpson, Limited.
Cone Mills

party.

sorbed

study of Railroad Earn¬

Utilities

Flint, Henning A. Florin,
Lindquist, and Andrew
Stayart have become associated

joined the firm in Joliet, Charles

6 bus will also stop at the Greyhound Bus
Depot, 2103 San Pablo Avenue, Oakland, to
pick up East Bay residents, at 9:00 a.m.
There is a $10 assessment for all attending

the

Milwaukee, St. Paul & Pacific Railroad
Memo¬
randum—Smith, Barney & Co., 14 Wall Street, New York 5,
N.

L.

New

Greyhound Bus leaves the front entrance of the
Russ Building at 2:30 p.m. on June 5, and
8:30 a.m. on the morning of June 6. The June

&

:

(Special to The Financial Chronicle)

All

British

'»

■"

■■

Mason, Moran Men

C.

Security Traders Association will hold its
spring party at the El Rancho Hotel in Sacramento June 5,

A chartered

at

-

lard

The San Francisco

Asbestos

Chicago,

day

Howard G.

Serlen

6 and 7.

New York 5,

field

Jersey an¬
Rock Spring

Beardsley, Ralph G. Randall, John
P. Lavin, James M. Coulter, Wil-

Club

<

\

of New

Edward

100% night and all come out to bowl

a

Club

Bond

CHICAGO, 111. —Roy H. Klute,
M. Harkness, George E.

31

final week and the second half contest is very close

us

*

June 19, 1953 (New Jersey)

Join Crutienden Co.

SAN FRANCISCO SECURITY TRADERS ASSOCIATION

*

summer

ing at the Plum HoHow Country

Exchanges.
"

Association

annual

Securities Trades Association of

31^

Burian

and root for your favorite team.

permit—Dept. 17, Schenley Distillers, Inc.,
331, New York 46, N. Y.
*

202

This is

120

(Philadelphia, Fa.)

Club.

Hunter

Hank

where state laws

*

Duke

213

Sam Gronick

Whiskey—Booklet telling the story of whiskey-making—and
things which should be known when buying whiskey — free
P. O. Box

5 Point

200 Point Club

George Leone

road—H. Hentz & Co., 60 Beaver Street, New York
4, N. Y.
Also available is an analysis of Eastern Utilities Associates.

.

12, 1953

Philadelphia

33

;

Rio

and

44

Mewing (Capt.), Bradley, Weseman, Hunt, Gronick, Guff—
Leone (Capt.)
Greenberg, Tisch, Werkmeister, Leinhard,
Corby

Preferred

to Denver &

Country
Club
Beach Club, Rye, N. Y.

nual

45
45

(Capt.), Gersten, Krumholz, Rogers, Gold
(Capt.), Smith, Valentine, Meyers, Farrell, Brown
Murphy (Capt.), Manson, D. Montanye, O'Mara, Pollack,

;

^

the

at

Westchester

Club.

53

(Capt.), G. Montanye, Voccoli, Siegel, Reid
Meyer (Capt.), Kaiser, Swenson, Frankel, Wechsler, Barker
Bean (Capt.), Frankel, Strauss, Nieman, Bass Krassowich
Growney (Capt.), Craig, Fredericks, Bies, McGovern.*..„__
Donadio (Capt.), Demaye, Whiting, O'Connor, Rappa, Seijas
Krisam (Capt.), Ghegan, Jacobs, Gannon, Cohen

up-to-date

New

of

Day

Detroit & Michigan summer out¬

Burian

Associates, Inc., Mathieson Building, Baltimore 2, Md.

Club

Field

June 16, 1953 (Detroit, Mich.)

Team—

Hunter

Bond

Annual

outing at the Whitemarsh Valley
Country Club.

Zingraf

League standing

Is It Time to Buy Long-Term Bonds?—Bulletin—T. Rowe Price

an

York

Security Traders Association of New York (STANY) Bowling

—

Over-the-Counter Index—Folder showing

12, 1953 (New York City)

Investment Traders

SECURITY TRADERS ASSOCIATION OF NEW YORK

Operating ratios of 100 hotels
located in 51 cities—Study—Horwath & Horwath, 41 East
42nd Street, New York 17, N. Y.

&

June

of

N. Y.

in

Convention,
Bigwin Inn, Lake of Bays District.

June

of three 1952

Association

Annual

retired

of

Operations

Canada

from the Association's board.

"Cycles," $10.00—Department C-5-21, Foundation
for the Study of Cycles, 9 East 77th Street, New York 21,

Hotel

Investment Dealers'
of

Municipal

—Circular—Dreyfus & Co., 50 Broadway, New York 4, N. Y.

(Bigwin, Ontario,

Canada)

Security Traders Association of New

The

Common Stock Holdings of Leading Life Insurance Companies

cyclical projection chart and

Spring Party.

June 9-12, 1353

ing Co., George W. Borg Corp., Stone Container Corp., InterTelephone

(San Fran., Calif.)

Francisco Security Traders

San

Co., 10 South La

on

tional

(New York City)

try Club.

Street, Chicago 3, 111.
Also in the same bulletin are
General American Transportation, Oak Minufactur-

Salle
data

Davis

Knoll-

at

Bond Club of New York Annual

June 5-7, 1953

the following literature:

H.

40th

Chicago

the
Lake Forest.

Association
Cement

of

day

Field Day at Sleepy Hollow Coun¬

firms mentioned will he pleased

send interested parties

to

field

wood Club,

Recommendations & Literature

<

May 21, 1953

The Commercial and Financial Chronicle...Thursday,

(2192)

Digky 4-3000

Offues from

NEW VORK 5. N. Y.

Tclitype: 1-181
coast to coast

'Number 5222". :7The Commercial and Financial Chronicle

Volume 177

(2193)

f.

Diversified: S-e

r v i c e s. are now
veins,
there's
Alleghany Corjr.
placed at oyer $1 billion; and per perpetual warrants giving you for¬
share' earnings for the first quar¬ ever the privilege of
buying, one
ter of 1953 were $6.14. Common share of
Alleghany common at.
of. this is, perhaps;-the most ro¬ $3.75. It is easy to
perceive that
mantic and horizon laden of Al¬ the actual value of this warrant

Durable Financial
"Author of Winning in Wall Street"

A ciwrrent view of

unusual, and by no
corporate 'enterprise.

an

means

Missouri

retrogressing,

^

•

Pacific

common

once

thought

While Lfee pyramids of the Nile buying MOP control at the top in
Valley remain, albeit somewhat 1929 was an elegant form of finan¬
eroded by sands, and the sands of cial suicide; and in the ensuing
time, to -be viewed by tourists five years Alleghany's holdings
1'
today, many shrank in the market, dike a kite
of the finan¬ in a calm. By the end of 1936 the
cial pyramids Van Sweringen's were all through
of the earlier and the following year a group
20th
Century led by Robert R. Young and Allan
(believed to be the
have
dis¬ P. Kirby
played less largest stockholder in F. W. Woolimp ressive worth) acquired control and a
longevity. In- golden opportunity for the use of
sulL Utility corporate ingenuity.

to be worthless is now
quoted at 9V2 and the latest pro¬
posals have suggested that this

ican Stock

Exchange.

Illogical

Middle West

Utilities
Cor p.,

tional

N aPublic

Service
Ira U. Cobleigh

Co.,

Associated

Gas

Elec-:

&

trie, Trir^utilities Corporation, to
name a few, fell by the wayside,
and brought into .wide f inancial

disrepute the holding, company .as
a vehicle, whereby debentures: had
become scarcely more than com¬
mon-stock with coupons, and each

$10 in the top management
pany

,com^
ofies*. controlled several hun¬

dred in operating assets#

;

Among such.holding companies,'

Hogle & Ci.

LOS

common

be

body

exercises

ever

undisturbed in MOP* warrant.

reorganization,

but

reduced

in

stated value from $100 to $10 per
share.
Look up the rest of the owned

that

as

They

exist in a

seem
corporate state of

staff

Los

as

Angeles Stock
E

sus¬

pended animation; (2) Market

Ken-

Powell

has joined the

(1) No¬
perpetual
always to

a

H.

neth

it may seem, there are three rea¬
sons for this
"overspin":

.

Investments,

Willi J. A.

ANGELES, Calif. —J. A.
leghany's holdings. Bought at be- f today (with common at $4.75) is Hogle & Co., Members New York
Stock Exchange and other
low $20, current share quotation a lowly
buck, yet this eternal
prin¬
marker sells at 2fo- on the Amer¬ cipal exchanges, have announced
(over the counter) is now $93.

By IRA U. COBLEIGH
-

Powell Associated

h

x c

a n

g e

Floor

Repre¬
sentative.

ac^-

tion Of the warrants usually
par¬
allels that of the common; and

Mr.

items, and you perceive that some (3) The warrants, therefore, give
interesting possibilities still exist you a higher percentage swing—
for substantial advance in market more leverage for less money. It's
really like buying the common on
value of Alleghany assets.
a 60%
margin, except that you'll
If you are not dissuaded by the
never get a
margin call!
past vicissitudes of this enter¬
Altogether you must concede
prise, then today you might want
to look into the various avenues that Alleghany has assembled im¬
What they bought was the privi¬ through which you might become portant shareholdings in an im¬
If pressive group of profitable en¬
lege of paying off $78 million of an Alleghany security holder.
5% debentures due severally in you're fairly conservative, the 5s terprises; and these holdings hold
out by no means a dull future
1944, 1949 and 1950, and interest of 1962 at 97 may beckon.
prospect. Management is shrewd
of around $3.8 million a year. As
Next, you may view the $50 par, and
sagacious; and you have a
a matter of Cold hard
fact, when $2.50 prior preferred with some
wide selection for entry into this
Messrs. Young arid Kirby latched
$29 in back dividends. This sells
picture, if examination of the
onto the Alleghany equity. they around
86; and there's being of¬
bought a pocketful of dreams, fered in exchange for this a new complete facts (only touched upon
here) suggests such a course, too.
since portfolio value was some $4
prior preferred,
convertible
While the pyramids of Egypt
25% shy of the par amount of into 16 shares of common.
-bonds then outstanding. And the
are all
suffering from erosion, the
Then you may want to look at
preferred issues, behind the bonds,
the ,51/2 % series A preferred $100 Alleghany pyramid seems to im¬
were busy as squirrels accumulat¬
par with $118 in back dividends, prove with age.
ing. arrearages. The common was
now selling at 142. Next come the

past
of

Powell,
member

the

Board

of

Governors

of

the

Los

Angeles Stock

Exchange, has

.

been

-

Spe¬

a

cialist

.and

Odd-lot
er

the

on

H. Kenneth Powell

deal¬
local

exchange

Recent

activities

increased

for. this survival and later

resur¬

brainchildren

gence were not * the

of' the.founders.v\::

,-v.

Let's start at the beginning—37
years agr^-when two eager and
uninhibited
Ohio
entrepreneurs,
O. P. and, ,M. J. Van Sweringen,
having amassed a bankroll in real
estate gains, drew a bead on the
railway business. In those days
tiie Nickel Plate (New York, Chi¬
cago & St. Louis RR.)
was no
dazzling treasury of transporta¬
tion; ancbthe Interstate Commerce
Commission had ruled that the
:

New YorkCentral, which held all
of the fben outstanding Nickel

local exchange, according to J. D.
Boggs, Manager of the firm's Lq$
Angeles office.

.

So. far

under

water

that

snorkel

With Lamson Bros.
1
►

•-

;

•«

■

•

1

connected- with Lamson

of C & O owned had advanced to
a

point where proceeds from sale

credit

(a few millions) knocked
out the old bond issue entirely.

500,000 Shares*

From that point on, the tech¬
nique of market purchase of out¬
standing securities moved over to
the

preferred, stocks; and retire¬
of par amounts, plus divi¬

chases and retirements

Toledo & Western,

jthen C &

Oj. Erie, and finally Pere
Marquette] In each case common

May 21,1953

Ne-w Issue.

•-

of same, laced with a little bank

C2eyelan& frcres were fascinated

in due ceurse,

General Contract Corporation

at

were

V

then, and thanks to the

$11 per

the total market value of
securities owned has surged ahead
to over $62 million, the principal
holdings being as follows:
years,

on
'

on

•
.

Services; 7,

shs.

-

Chesapeake

States in which

.

and

In

addition to

the above there

apparently a certain in¬ are other bonds, shares, and ven¬
explicableinsatiability that led to ture interests owned, worth around
the downfall of the Brothers Van $17 million at today's quotes.
It

was

Sweringen.
You would have
thought that the railways listed
above, representing operating
'transportation assets of $1.4 bil¬
lion, controlled by their final and
master pyramid, Alleghany Cor¬
poration^would have been enough;
particularly when they had drawn
off profits of probably above $70
million-ki a decade, and still held

Of the big interests in special
situations, two items deserve par¬

ticular comment.

Diversified

Investors
does

a

G. H. Walker & Co,




Blyth &. Co., inc.

Giore, Forgan &. Co.

;

White, Weld &. Co.

A. G. Becker &. Co. Incorporated

Allyn and Company, Incorporated

W. E. Mutton & Co.

-

Dean Witter <&. Co.

certificates

Investor's

Syndicate)

certain face amount to individual
savers

Edward D. Jones & Co.

after

a

period of

years.

Sec¬

Dempsey-Tegeler & Co.

Newhard, Cook & Co.

Loewi &. Co.

Bacon, Whipple Sl Co.

J, C. Bradford &. Co.
Piper, Jaffray &.

Reinholdt & Gardner

American Securities Corporation

Stifel, Nicolas &. Company, Incorporated

Services

First, it
(through
assuring a

Boettcher and Company

Blunt Ellis &. Simmons

Central Republic Company

variety of things.

distributes

ond, it manages, and underwrites
for, three mutual funds—Investors
control that is! But no—it wasn't Stock Fund, Investors Selective
enough;
They wanted .Missouri
-Fund, and Investors Mutual Inc.
Pacific^oo, and hocked the port¬ -Further, it has a couple of com¬
folio of Alleghany to buy it, using
panies for providing construction
*^a
peculiarly : im^vise
financial
mortgages for homes, and subur¬
velpcle-^coilateral trust bond.
ban shopping centers. Altogether
XlPf-ic©:ue-se, iwktag back on it, the- assets controlled by Investors

*2,200,009 of: Alleghany

/

$10,800,000 Treasury bonds.

preferred

certificates.

->*'•"

8c

Alex. Brown & Sons

common

-

*

RR. common;

batch >of

'•

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

A. C.

loan; or the
portfolio-of a new holding com¬
pany, which issued in turn a fresh

7"!'

31, 1953.

Copies of the Prospectus
'

298,886 shs. Pittston Co.;
221,500 shs. Marine Midland;
214,234 shs. Industrial Brownhoist Co.;

104,854

cumulative dividends from May

to

107,540 shs. Investors Diversi¬
fied

Corporation's outstanding Common Stock are being offered the right to

share for the above shares at the rate of one new share for each 3.3 shares

211,567 shs. Portsmouth Steel
Company;
400,000 shs. Missouri Pacific

bank

($10 Par Value)

subscribe-at
held of record
May 4, 1933. Subscription Warrants will espire at 3:00 P.M., Central Daylight Saving Time,
May 27,1953. The above shares are convertible, as set forth in the Prospectus, and are entitled

Holders of the

favorable markets of the last two

Ohio RR.

f©r

.

ingratiating discounts.
Since

mediately the collateral for
debenture

Series

Preferred Stock,

made

stock bought, became almost im¬
a new

;

'

.

OMAHA, Neb.—A1 F. RichI j*

'

dend arrearages on the preferred,
$8,500$#$: and eager buyers for exceeded, at face value, $90 mil¬
cash were not forthcoming. But our
lion by July 1, 1952. And all-pur¬

riod of years. That gave them time
—time to parlay Nickel Plate into,

.

Bros; &

4,567,797 shares of common listed
Co., City National Bank Building;
Joins Minot, Kendall
on the N. Y. S. E.
(with a book
free whenever shares were trans¬
value today of roughly 75c) selling
ferred.
V:
7 '
7 7]'
Providence, R. I. Livingston, Williams Adds
at 4%. This same stock sold above
: (Special to The Financial Chronicle)
But there was a brighter side.
8^4 in 1946 when its book value
CLEVELAND, Ohio — Howard
Harold • B.
If you owe $1,000 and can get off was minus $14.83.
Simpson is
with J.
Strauch has become affiliated
the hook by paying $500, you can
Minot, Kendall & Co., Inc., Hos¬ with Livingston, Williams &
And, finally, for those with
Co,,
better your position—particularly
Hanna Building.
plenty of sporting blood in their pital Trust Building.
when you can borrow the $500!
Well, somewhere between 1937 and
1943, Alleghany retired $34 V2 mil¬
lion of its 5% bonds at fancy dis¬
counts, importantly by bank loans;
This advertisement is neither an offer to sell nor a solicitation of offers to buy any of these
and in the summer of 1944 port¬
securities. Any offering which may be made will be by Prospectus only.
folio value of the 704,000 shares

ment

payment from a bank, and signed
up to pay the balance over a pe¬

* "

(Special to The -Financial Chronicle)

tubes should have been delivered

Plate gammon, should get- clear of
it. Central: offered the shares for

by these Nickel Plate certificates
and tendered the $33/2 million for
same.
Only two things seemed to
stand in their way—they didn't
have $2- million needed as down
payment nor the ■ $6%. million to
complete the transaction. So what
did they do? Borrowed the down

in

local issues made it necessary for
J. A. Hogle & Co.: to have full
time floor representation on the

*

Alleghany : has survived, almost
miraculously, as the exception lb
prove fhe rule; but the techniques

since

1929.

Eckhardt-Petersen <&. Co., Inc.

Rauscher, Pierce & Co. Inc.

Hopwood

A. G. Edwards &. Sons

Schneider, Bernet &. Hickman

common—

Fusz-Schmelzle &. Co.
\

Scherck, Richter Co.
Smith, Moore & Co.

Metropolitan St. Louis Company

Hill Brothers
■

L M; Simon &. Co.

Stix &. Co.

.

•

Singer, Deane &. Scribner

O. H. Wibbing St- Co.

The Commercial and Financial Chronicle...

10

(2194)

up

which will give us civilian
power
from
the
atom at a
price sig¬

Another factor that they raise
told to expect
to question the desirability of a
1932.
If what I
nuclear power develop¬
have just said is true—if even strong
ment effort is the possible dilu¬
optimistically speaking we are
tion effect it would have on our
10
years
away
from economic
If we
nuclear power, then you may well military reactor program.
devoted .substantial
attention to
ask "Why all the rush?" Perhaps'
the development of central sta¬
we
should have signed up Bill
Davidson to talk to our conven¬ tion nuclear plants, there might

nificantly cheaper than that from

which

we

-Why and How?
Development

Energy Commission

S. Atomic

V.

would take at least 10 years before atomic
energy can be used in competition with other fuels in pro¬
ducing electric power, Atomic Energy Commission expert pic¬
tures efforts to obtain this objective.
Says it would be a
demonstration of "abiding faith in the inherent strength of our
free enterprise system" if industrial atomic energy were pri¬
vately undertaken, with the government merely acting as a
regulatory agency. Expresses doubt, however, any private
industry, because of risks involved, would undertake this
development, but suggests group of electric power companies
"having money to do job and the nerve to risk it," might
In predicting it

were

Nuclear

is
usually
bring before

power

topic

to

effectiveness

a
real

with

audience

non-nuclear

because

a

goodly

a

status

to

nuclear

of

provide

for

reference

power

suitable

a

what

ness

first

One

might call these statements "Nu¬
Power
Hypotheses,
1953

time

I put a date on them
hope and believe they
will change with time.

be

breeding gain,
the

like,

the

laying

work

ground

for the subse¬

discus¬

quent

Fortu¬

sion.

Dr.W. L. Davidson

nately, I have
no
such
problem

official

your

article

by

the

on

issue

excellent

an

Konikow

Robert

Mr.

nuclear

surrounding

economic

the

thus devote most of my time

the

"why" and the*"how."
producers
and
distributors
electrical

a

report of

Policy
these
chief

and

energy,

gates who will

ing

this

at

been

| it might be

few

of

expired

conclusions
•An

the

to

American

turbo

manufacture

to

generators.
So, in
being
uneconomic

to

Even

for

detract

satisfying

that

cur

somewhat

those

from

needs.

Mr.

Power

nature

never

only
about 20%, of the
income from
an
electric

have

yet

be

the

present

conventional

of

consensus

generally

before

Association,

will
will

by

critics is the

some

nos-

sible

lessening of security which
might go hand in hand with a
nuclear

development

power

If

gram.

pro-,

expansion of

we assume

the program to thousands of addi¬
tional

individuals, such

in

made

our

nuclei

military

re¬

at

a

action

an

to

a

point where
•

together

optimistic

on

set

discussion,
to

nor

are

condi¬

of

which to launch

a

hope¬

they in¬

be.

However, I do feel
they are realistic. One might say
in jocular fashion that economic

that

I

also

this

ef¬

power

level, consid¬

possibility

stated

made

vances

earlier

in

actor program

our

does

that

civilian

before

25

likely

re-,

to

us

years

is

ad¬

military

ought to lead

economic

not

nuclear

power

have elapsed. Is
then that tnis pro¬

gram in itself will maintain
a

in

us

position of world leadership vis¬

a-vis
for

other

nations

commercial

This is

but

swer,

be

the

quest

power?

feeling is it would

my

dangerous

to

contingency.
issue

in

nuclear

difficult question to an¬

a

6f

rely

such

on

a

The December, 1952
magazine

"Nucleonics"

efforts

present

of

years

before

well

j

for

our

have

grace

of

expensive

an

in

program

25

can

afford

in

this

by

na-,

other

countries

tunate

as

are

not

and

in

move

in

we

they

may

power

The

in

an

effort

their energy demands.
critics

point

pletely

out,

clear

it

that

is

to

U. S.
leadership in
phase of the atomic picture^
The U. S. today is recognized as

every

for¬

being

pre-eminent in practically
category of nuclear science

every

and

to

supply
some

express

not

com¬

indication

this

lead

if this

areas

in

be the

will of the people.
that

Some
philosophy

this

does exist in the halls of Congress

foreign

with

way

ultimate

useful

objective.

Italy, Germany, Mexico, Australia
and

Brazil have expressed an in¬

terest

in

reactors

and

nuclear

but plans for implement¬
ing such programs are still very,

power,

indefinite.

the

We find very

published

little in

literature

of

Rus¬

sia's plans or
lites
in
this

those of her satel¬

"Nucleonics"

review

field.

From
of

the

foreign

developments, there is little doubt
that the

U.

S.

is

still

well

ahead,

of

all Non-Iron Curtain countries

in

economic

nology,
ain.

nuclear

tech¬
Brit¬

this fact alone does

guarantee that
nation to
of

power

possibly

excepting

Yet

we

demonstrate

commercial

production

blocks

employing

not

will be the first

a

of

electric

nuclear

thermal

source

tions have

we

to tap this new

of power for their own
should

We

countries

do

not

count

use.^

other

on

sharing their
with us.
At

technology

na¬

far greater economic

a

incentive than
source

we

Foreign

energy.

nuclear

present,little sharing of nu-*

very

closest World War II
As

nuclear

allies.

profit

by

our

misjudging

We should

previous

Russian

technical

numerous

;•>.

Curtain, let

underestimate J

not

*

technol¬

power

the Iron

behind

ogy
us

for

errors

in

in

prowess

areas.

the talent and

maintain

to

nuclear

most

the

We believe that ; Another factor urging our un¬
re¬
dertaking a positive development

technology.
nation has

our

more

under

grams
power

clear developments even with our'

first; point which should
is the importance of

Still,

such

Britain, Canada, France,
Holland,; Norway, Sweden and
Belgium, all have reactor pro¬

named

sources

rapidly

which

power

preserving

well

be forced

may

be

conventional

nuclear

on

What
eco¬

«

True,
so

opposition.

nuclear

iron

curtain in
the development of nuclear power.

be raised by those

can

quest of this goal?

power

country.

the

formidable

a

sufficiently convincing to call
for
a
vigorous effort today in

development

apparently

points taken

nomic

today, simply to gain a few
in
achieving
economic
power
from the atom — years
we

these

the

.

be

field

which

.

favoring early attainment of

expired.

nuclear

the

for

case

outside

power

constitute

arguments

Therefore, why entertain thoughts

fuels

.

ering

inevitably
willing to

be

nuclear

nominal

a

is

we

exist?

of

build

can

* reactors

power

use

we

pro¬

power

.

Admittedly,

.

substantial level will bring

us

economic

peacetime

duction,

if it be continued

program,

for

sure

are

.

probably doesn't sound like

very

ful

power

gas.

This

tions

reactor

years

competitive
with
generated from coal, oil

power

the

be

civilian

elapse before nuclear

certain

Davidson

gen¬

future

at

reviewed

additional

An

years

is

It

subscriptions

restate

Public

will

fuel

nuclear

actor

construction

no

from

costs

tended
by

would

our

this

Should

Great

and

this

on

experts, that at least 10

regarding the present

address

considered.

be

set

forts

tioned

to

plants.,

a

have

to

appreciated

case.

tional

addition

has

research

than double the

more

KWH

certain
hold your

time.

work

there

such
a
project were
today, the power cost
the plant would probably

from
be

am

helpful

whose

you

ever

100 years hence—

or

heat

technical advances which

if

Even

dele¬

as

power.

authorized.

and

so

fuel

be

the

steam with which to turn conven¬

know

approved

Atomic Power

Committee, I
latter questions

interest

must

diversion

that

guarantee

tions

supply

is
fancy.

while

eral
problem,
projects of this

be consider¬

soon

your

As
of

electric

development

plans. If you have performed
your
homework
and read this
article I can assume you have a
pretty fair knowledge concern¬
ing the "what" of nuclear power.
can

nuclear

the

fuels.
However, no
sufficiently omniscient to

is

one

point on the
negative side of the ledger men¬

is

power

considerable

been

my

to

electric

Furthermore,

power.?

editor, Mr. Radin,
planned it this way I do not
know, but it fits perfectly into

I

Fact

a

of
It

is

and

might
increase
the
probability
al¬ gross
ready fact—not mere
In utility goes to purchase steam. that technical information under
wraps today might become known
two separate reactor projects, the Therefore, why get all "steamed
about
this
subject?
The to unfriendly competitors.
AEC has generated token amounts up"
of
As a clincher they point out,
electricity employing nuclear "take it easy" school admits there
fuel as a source of heat..
might be just cause to do some¬ and rightly so, that such a devel¬
thing if we were running short opment program as would be re¬
However, these units
involve
on
coal supplies, but the recent
quired, whether it be underwrit¬
experimental reactors in the
broadest sense of the word—the report of the President's Materials ten by the government, private
Policy Commission, the so-called industry, or the American Public
prime purpose behind the con¬
Commission, asserts with Power
struction of these units lay in di¬ Paley
Association,
would
cost
confidence, that
we
will be
in millions of dollars.
This is clearly
rections other than power.
good shape for the next 25 years not a game for ribbon clerks.
To date no nuclear reactor, not
in this respect, even allowing for
Thus rests the case against a
even a pilot plant, has been con¬
a
continued increase in our elec¬
structed wherein the major ob¬
trical energy demands over this strong development program now
to
harness
the
jective has been the production of interval. One
energy
within
can argue that the

issues

and

facts

of

"Public

organ

basic

Whether

morning

this

contained

Power"

Power

there

personnel

facilities

.

convention

the

because

Electric

Nuclear

reac¬

tions, second¬
ary
neutrons,
and

do—even 20

will

reactor

today,

Nuclear

isotopes,

chain

nuclear

a

radically reduce the cost of elec¬
tricity to the average customer
because
as
you
gentlemen well

I

uncom-

like

,

pro¬

In addition to,

on

Vintage."

te rms

mon

people feel

because

re¬

served for de¬

fining

propelled submarines would
gress less rapidly.
diversion
of
the

conventional

nuclear

,

clear

normally

our

arguing against any real,
atomic
production
program
for
the problem of economic
the next several years is based
nuclear
power today.
Then we
on
the urgency of meeting mili¬
will examine
the other side of
tary requirements and thus every
the coin.
gram
of . fissionable
material
loaned for peacetime power de¬
Why Nuclear Power?
velopment
curing
this
periodIn
the first place,
they aver,

fraction of the

must

of

that

concern

some

picture

attack,

in order
frame of

follows.

this

not

this very
So in the interests of fairand objectivity, I would like
to give you their side of' the

way.

all
,

surely

'63,. but

be

,U.;
lot

A

undertake the task.

difficult

in

tion
year.

Joneses.*

with the

in

prosperity

By W. L. DAVIDSON*

suit just to keep

to follow

us

nuclear power is just around the
corner—the same corner around

Nucleai Elecbic Power

Director of the Office of Industrial

Thursday, May 21, 1953

program

held

lief

immediately, is the be¬
by a few reactor vet¬

erans

that nuclear power could be

made

generally competitive with

conventional

power

today

what is most needed

Afomic Energy, to

is at variance with my earlier re¬

it is hoped

marks

be found in

can

action should necessarily motivate

on

the effect that

again

truthfully

it

can

a

"never

be

said

that the reactor of most advanced

.,050,000
New

for purposes of

Equipment Trust of 1953
( Philadelphia Plan )
*

to

1967, inclusive

-

.

-

-

"

unconditionally as to payment of par value and dividends by
Chicago and St. Louis Railroad Company

The New York,

Priced

yield 2.65%

to 3.50%,

according

to

of these Certificates

are

goes

a

maturity

subject to authorization by the Interstate Commerce Commission,

HALSEY, STUART & CO. Inc.

seem

fool¬

global

our

that

this,
;

atomic program.

assurance

that the pessimists

right and the optimists wrong?

are

a

ent

consideration

Another

.

in

a

field

as

the

is

young

as

science involving the most

tremendous
man. a

forces

yet

unleashed

technical breakthrough

stockpile. From

a

be

far overbalanced

tary
from

benefits
a

that

terprise.

would

producers could also

tle

or

trade.
we

in channels of international
I

mentioned

foresee

no

earlier

technical

that

advance

to

accrue

power en¬

Most of the reactor types
promise as
power

at

a

seems

by the mili¬

growing nuclear

which

nation might put us
distinct competitive disad¬

broad gauge

viewpoint, this argument

by another

vantage either on the field of bat¬




with

one important facet
;
Previously it was averred that
field, simply to avoid an the diversion of fissionable mate¬
incremental expenditure amount¬ rial for a
peacetime power pro¬
ing to less than a single percent gram might be frowned on in
of the funds already committed 'relation to its effect on our
pres¬

by

May 14, 1953

of
action
in
this
field,
namely, the high ratio of opinions

"course

this

•fact
Issuance and sale

of nuclear power and

fess this ebullient optimism is not

•leadership in

to

to

by

ish to voluntarily surrender
of

To be guaranteed

ourselves

spectrum, would it not

r

$70,000 annually December 15, 1953

This

present-day economics
I must con¬

on

pro¬ to facts.- Until we have attempted
prodigious to construct a reactor plant whose
effort
into
a
position well out main function is the generation of
-front in most sectors of the nuclear economic electricity, who can say

3%% Equipment Trust Certificates

mature

pride and prestige.

However,
the
argument
deeper than
this. Having

jected

To

demon¬

a

stration to clinch this belief.

design and performance operates shared by a majority of experts.
anywhere
but
in
the
United "However, this serves to point up a
States." Part of this desire is un¬ serious deficiency facing anyone
doubtedly psychological, that is, who attempts to chart a definite

York, Chicago and St. Louis Railroad

Second

is

and

published state¬
ment. by the Joint Congressional
Committee

Boston, Mass., May 13, 1953.

show

to produce

the need

weapons

arose.

be operated

plutonium if

The military

Continued

on

value

page

47

Number 5222... The Commercial and Financial Chronicle

Volume 177

(2195)

savings
held

Looking Ahead at
The Capital Markets

corporations

50%,

of

the

subsequently

net

in

the

early

would

and

1920s, fore,

well above

now

also

were

be

even

included,

dividual

it

placed bv the life insurance

a

the

„an

IT %

investment

bankers

in

more

recent

"V.

recent years,

J

say,

pri-

vate

funds

® ®

for

sources of

the

J°

hnnd

mirkpfc

bond market

could be most readily exContinued

re-

on

page

esting than fluctuations in stock market, Mr. Murray reviews
bond price

trends since 1932 and finds, with no more governbuying at fixed prices, bond market now is lacking in
elasticity. Says individual bond buyer has practically disap- •«
peared, and bonds are now absorbed by investment institu-1
ment

tions

that

so

sluggishly in meeting changing investment demands.
Looks for abrupt rather than gradual changes in bond
prices
in future, because of market's
inelasticity as well as the
sensitiveness of interest rates to business

Under

equity financing in

the

circumstances

ordinary

*

stock

is

market

much

the

more
interesting segment of the
capital markets for study and for
attempts
at

f

orecasting.

However,

this

late

weakness

Roger F.

stock

mention

of
our

this

purposes

market

as

The

into

set

a

purposes

became

of

significance.

of

pattern
created

only

Under

30-year

a

this frozen

only

turn

we

passing

look

to

at

a

dynamic, erratic, and extremely
interesting bond market.

active

funds

to

rise

for

any

kind of

tude

of

seen

,in

bond

a

the

market. The magni-

change

the

best

can

perspective

markets

have

we

of

had

dur-

ing the last three decades.
ing

the

Dur-

individuals

were

important bond buyers, and

very

at

1920s

be

the

times

were a

the

commercial

factor.

funds

from

could

be

A

of
pegging
was,

change.
This
course, the well-known
operation in which the

BEAR, STEARNS &, CO.
L. F. ROTHSCHILD

So

LADENBURG,THALMANN &, CO.
CO.

HARRIS, HALL So COMPANY

So

CO.

BLUNT ELLIS So SIMMONS

STROUD A

by

borrowers

combination

a

the

large number of inbuyers.
This
was
a
elastic
bond
market
in

dividual
which

rather

BACHE So CO.

JOHNSTON, LEMON So CO.
COURTS & CO.

NEW YORK HANSEATIC CORPORATION
GREGORY So SON

FREEMAN So COMPANY

pOMPANY

MARX & CO.

INCORPORATED

INCORPORATED

MULLANEY, WELLS So COMPANY

May 21, 1953

'

*■

THE OHIO COMPANY

WM. E. POLLOCK So CO., INC.

SHEARSON, HAMMILL So CO. 'VAN ALSTYNE, NOEL So CO.

CHAS. W. SCRANTON So CO.

r

-

•

"

-

•"

r '

position to make commitments for
months ahead.
bond
market

This period of
elasticity
really
ended in 1949 when as a result of
the substantial decline in the private demand for funds strength

This announcement is not

was restored to the level of bond
prices by the continuing growth

offer to sell or a solicitation of an offer to buy these securities•
offering is made only by the Prospectus.

an

The

5

The decade of the 1950s started

the,

after

outbreak

of-

war

in

,000,000

attracting commercial banks to Korea with an ill-advised repetiexpand credit for the purpose and tion of the 1947-48 bond pegging
by
intensifying
selling
efforts operation by the central bank. By

fairly

BAXTER, WILLIAMS So CO.

(INCORPORATED)

H. HENTZ

of

among

SALOMON BROS. & HUTZLER

high demand for °f savings.

corporate

met

banks

HALSEY, STUART So CO. Inc.

material

fluctuations,
but,1. since and Price stability of their gov1951,' we have entered a ernment securities, they felt in a

March,

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

in

stability. The postwar years of bonds
in this pegged market.
through 1950 produced only Having confidence in the liquidity

new

The

because

private demand

1947

minor

agreed, subject to certain conditions, to
purchase any unsubscribed Debentures and, both during and following the
subscription period, may offer Debentures as set forth in the Prospectus.

bond

The changes which have taken Federal Reserve stood ready \o
place in the bond market amply purchase
long-term government
support my use of superlatives, bonds at what amounted to a
From 1932 through 1946, we had fixed price.
Long-term lenders
a
long sequence of rising bond could meet the private demand for
prices interrupted only by periods funds quite readily by selling their
of

The several Underwriters have

these

1947-48, the monetary
authorities
provided
sufficient
elasticity to the market to prevent

June 1,1973

structure took

rate

threatened

an

Due

.

aca¬

and when the level of

years,

Sinking Fund Debentures Due 1973

Rights evidenced by Subscription Warrants to subscribe for these Deben¬
tures are
being issued by the Company to holders of-its Common Stock
of record May 20, 1953, which rights expire at 3:30 P. M., Eastern Day¬
light Saving Time, on June 8, 1953.
! •

borrowing

freezing

unique situation in which bond

rates

Murray

at

afternoon, therefore, I shall give
the

government

finance

war

war

For

Company

markets

place only gradually in the post¬

for

guessing

capital

important.
rates

of

our

the future.

only

the

approximately the same 5 li¬
quidity and price stability as a
three-year security. The thawing

ex-

ploit

Southern Natural Gas

had

curi¬

or

Urges '7

Dated June 1, 1953

from

circumstances

stimu¬

our

$34,220,100.

*

434% Convertible

demic

p r o p o r-

'

.

During the war, of course, the
private demand for funds disap¬

maturities

tions that they

osity

The

market.

interest

mod¬

hardly

offer to sell or a solicitation of an offer to buy these securities.
offering is made only by the Prospectus.

not an

temporary interruption in
the
broad
upward
sweep s of
bond prices. '

a

continue to be

est

conditions.

money

for

prices
of equities
such

is

a

and

the

of

only

was

today.

Fluctuations
in

tight

our

peared

is not the sit¬

uation

announcement

cash market exists which expands or contracts '

a

only

more

This

substantial

in the demand for funds

this

of

process

meeting

of

vestment

facilitating ; the

the

demand

funds

from

Metropolitan Edison Company

for

inprivate

changes sources, the authorities unques-.
actionably contributed to the ram-

First Mortgage

were

companied by comparatively modest changes in interest rates.
In

pant

inflationary

Bonds, 3%% Series due 1983

and

pressures;

Dated May

after the

long controversy which
the supply of funds was so culminated
in
the
accord
of
successfully developed that an in- March,
1951,
the
provision
of
creasing demand' was met in an elasticity to the capital markets
orderly way without checking the by standing ready to buy governrising trend of bond prices until ment securities at fixed prices
credit became tight in 1928-29.
was definitely abandoned.
Since

Due

1,1953

May 1, 1983

fact,

In

the

decade of

the

1930s

the

supply of funds was relatively
low, but the demand for new
money

was

consequence

demand

the
ket
tion
the

factors,

supply and

together

and

credit

with
policies

government, the bond

levels established at

of

of

bond

one-way

World

mar-

*An

this

mar-

.

r

.

The

MarU#><.

«■***«*

This veiT brief mention of-past
bond market characteristics is
pertinent to this afternoon's discussion because it serves to high-hght the fundamental difference
between the bond market of May,
1953, and bond markets of previThe commercial banks,

ous years-

.

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

'

HALSEY, STUART So CO. Inc.

SCHOELLKOPF, HUTTON So POMEROY, INC.

BEAR, STEARNS So CO.
BAXTER, WILLIAMS So CO.

WEEDEN So CO.

NEW YORK HANSEATIC CORPORATION.

INCORPORATED-

business and in no position sub-

private
was

conspiring to push
higher.
Even

and

episode of
in

restrictive

a

early

address

Controllers

out-

In

bond

street with all elements

policy

Midwestern

the

a

for example, are now very much
back in the commercial lending

prices higher
brief

II.

have been in

demand,
literally a

slack

market

in the situation

credit

War

we

Price 101.335% and accrued interest

ke* notably lacking in elasticity,

a

almost without interrupfrom the depths of 1932 to

period

the

As

rose

break

the

of these

monetary

of the

lower.

even

then

1937

by Mr. Murray
Spring
Conference

Institute

Louis, Mo., May

of

was

at

the

of

the

America,

stantially to enlarge their takings of corporate and municipal
bonds.

tics

on

We have




BROTHERS

no

bond

but

buyer,

do know that whereas the

we

institutions

companies,

(life

savings

insurance

banks,

and

So CO.,

INC.

VAN ALSTYNE, NOEL So CO.

'

ASPDEN, ROBINSON & CO.

SCHMIDT, POOLE, ROBERTS So PARKE

leading

St.

18, 1953.

BYRD

precise statis¬
what has happened to the

individual

thrift

WM. E. POLLOCK

May 20, 1953

DeHAVEN

salesyears

ment fund shares. It is fair to

years,

appeared, his activities being

recent

more

therefore, that the

no

bond

and,

man

anJ "

distributor ot mutual mvqst-

selling mechanism

buyers on a large
The ubiquitous bond sales-

scale.

that the individual bond buyer has

inter¬

that

the

of

apparent

more

as

longer functions in relation to in-

peninvestment

other

disappeared

major factor in the capital markets.
It is quite natural, there-

If trusteed industrial
funds

accounts

Vice-President, Bankers Trust Company, New York
more

associations)

20%

long-term debt of individuals and

sion

are

loan

about

the proportion is

By ROGER F. MURRAY*

Pointing out movements in the bond market

and

only

II

THOMAS So COMPANY

So TOWNSEND, CROUTER So

BODINB

FAUSET, STEELE So CO.

WALTER STOKES So CO.

YARNALL So CO,

40

The Commercial and Financial Chronicle...

eralizations from particular cases,

Nndging the Inevitable-A
Proposal lor Freer Foreign Trade
GLENN GETTELL*

By RICIIARD

conflict between the public

more

and

foreign aid policy

our

the argument is no con¬
position long

all know,

free trade

The

Each

and

its

thinking

determining

—

t h

of

shifts

e

which

policy
*

will best serve

its ends in the
-■

^

of

study

Some policy

held

mind.
Principle of Comparative

further

foreign eco¬
Hearings will be
Congressman Simpson's
R.
4294, to amend the

bill

position

to

gain

ad-

porary

to

vantage,

push

-

the

of the

President, to strengthen the
clause
provisions, / to
change the make-up of the Tariff
Commission and to give special
escape

tem¬

a

op¬

position ;o ft

treatment

dustries.

balance.
Dr.

from

are

basic

more

and relate to the maintenance .and

enhancement of national strength.
The

States,

tial,

economic.

is

of

strength

greatest

United

actual and

the

poten¬

favorite

have started.

debate

are

crucial;

on

the

protection

vs.

public
more

review

are

our

issue

has

no

brought

vituperation and

misunderstanding,

those

probably

years

their wisdom

more

international
ticated

address

by Dr. Gettell at the
Eighth Annual World Trade Conference,
Cleveland, O., April 24, 1953.

and

points,
more

stupidity,

naive

more

more

more

with

re¬

men,

machines. The in¬
within such
boundaries, the economic organ¬
ization and. the political system,
and

sources,

the

more

and

false gen-

to

buy,

any

of such Bonis.

the division of

For. any people,

system of

knows

trade

boundaries

no

ex¬

The

be

can

nearly

more

free,

governed

by

competition and unham¬

pered by artificial restrictions, the

fully

more

and

men

the

and

efficiently

and

be

resources

will

greater

hancement

the

of

for

a

moment,

best

practical testimony
principle is the volume
level

the

and

trade

United

48

Within

free

our

of

of ; living

within

enjoyed

the

to

and

of

States

bound¬

own

any

at

would

decline

a

boundaries

national

without
as

permitted

economic

dis¬

well

-

fact,

as

to

of

part

on

exchange for

pose

in

our

tight

of

up

little

because of
other.

each

heavier

a

would

reduce

that

to

which

im¬

or

which, in-

interest; must \ be
treatment, let it
subsidy so that we

by direct
know

who

In

what

is

this

is

it

costing us
the burden.

bearing

connection

it

reminding ourselves
two

where

cases

is

worth-

of the
the

only

"escape

clauses" in the present Reciprocal

provide
interna¬

This

States.

operate

determined

participating

countries—

that

ducers

would

suffering injury be¬

ter's
and

not least ourselves.

were

of

cause

benefit of

to the mutual

all

the

tariffs

situations

national

and

ex¬

characterized

has

United

48

no

future should

Trade Agreements Act have been
expansion comparable employed. The Tariff Commission

continued

for

tional trade

the

*•

under

import quotas. If there

can

burden,

and

resources

our

basis

existing

new

.

be

standard of living, con¬

our

serve

tax

our

'•

that

given preferred

more

our

feel

special

the

ports. An increase in our imports

the

Conference.

previous

the

elimination,

the

and

tariff

restoration

rates

commodities.

The

these

on

President,

President Truman, agreed. There¬

in prin¬

Why

recommended

tariff cuts

two

World

hat¬

Belgium)figs (primarily from Turkey).

of

This is primer stuff for a

pro¬

importation of

of

Barriers

Trade

domestic-

fur (primarily from

It

Why and How to Reduce

trade upon Belgium withdrew its con¬
cession on beeswax and Turkey
barriers, is known to all of us,
How, in practice, to go about raised its tariffs on typewriters,
washing machines,
refrigerators
doing it, is another matter.
"Fortune Magazine," in March, and other goods.
If I manufac¬

ciple

should reduce

we

contained

our

article

which

probably

seen.

an

of you have

table,"

"Free

said

be

of

is

it

that

it

events

little help, a

a

—that

we

nudge

in¬
un¬

brunt. If protection

anywhere

we

erf

little boost
inevitable

the

for

reason

more

suspecting -exporters

:

that

is

the

one

citements to retaliation where

come

march

proposal today
inevitable

My

than

more

wearing a felt hat.
So, let us have no

be true.

should "make

have

not

the logic

T-'

give

have

In
that can

true.

would

I

feelings toward fig
growers/If I raised bees, I would

Inevi¬

may

events

refrigerators
unkind

very

is true.

wait long enough

we

tured

many

It was

Is

Trade

logic that

In

fact, however, the best

us.

we

international
depart from

our

policy

do¬

As things

imports

If

to those who would trade with

that

con¬

our

acceptance

our

ad¬

Western

islands,

stagnating

I

raise

we

are

rec¬

ognition cannot stop short at

a

advantage to ourselves

be

in

a

piatter of mutual
vantage for all involved. That
as

made

in

are

the

circumstnces in the

reduction

a

present this requires the

entitled

expanding trade and

be

economic

Second,

other

obviously preferable choice

stand

of

living.

have

be obtained from

The

en¬

standard

we

that

allies to follow suit.

eco¬

our

any

trade,

exports
to

Trade

leave theory

of

of

Like

will

the

Otherwise

will

in¬
and

only

is to expand our trade.

employed

be

foreign

loosened

burden on us; nothing would de¬
light the Kremlin more.

preserve

mestic economy.

the

nation.

to

—

contraction

our

and seller. The

Price 99% and accrued interest

may

not

raise

every

their

equalize

to

order

payments

to

declining trade with
Nothing
would
put

imports of our

pro¬

controls, in¬
currencies and

be

must

autarchies,

re¬

strangling

of dollars.
So, though my proposals will re¬
would lower the fer only to change in our own pol¬
standard
of
living abroad and icies, reflected as unilateral acts
weaken our allies; it also would of
United States legislation, that
because
I
am
reduce employment and the in¬ is
taking it for
comes
presently earned in our granted that in all our foreign
we
will press our
export industries. It would con¬ negotiations
This

cept those dictated by the mutual
commercial advantages of buyer

expansion of trade,
both domestic and foreign, is to
the
interest
of
every
people—

that

sure

own

their diminished supply

activity.

labor, the emergence of special¬
ization, "the
development t of 'a

Notwithstanding

Copies of the Prospectus

in

foreign

their

a

,

be

can

we

to

ducive

nized

Due May 1, 1973

strictions

The

of

danger

World

little

their

exchange

removed.

tensions.

to

pressure,

reduce

impediments

serious

com¬

our

restrictions, import

vestment

dare in the

we

other nations will add further

nomic

|

aries

Dated May 1, 1953

do,

cut down

can

world

present

stitute

competitive system is fully recog¬

4% Series Due 1973

of

we

aries.

America.

First Mortgage Pipe Line Sinking Fund Bonds;

If

of

among

Southern Natural Gas Company

face

contraction

standards

$30,000,000

foreign aid—if

our

ance—with the standard of; living

this

offering of these Bonisfor sale, or an offer to buy, or a solicitation of an offer
The offering is made only by the Prospectus.

of deflation. We

way

to

every

use

proper

convertibility

would be
exports. This is the

our

we

barriers.

of

noose

of course,

way,

reduce

to

enjoyed within each set of bound¬

•

trade

affiliations.

my

proposal:

persuasion at

them

the

do with

economic

of

level

healthy

debating

good—please blame

countries,

get

am

all, I count it essential
our dealings with for¬

in all

eign

get out of this ab¬

we

perform¬

have much to

however,

the
not an

capabilities of

to

stitutions that develop

To

This is

little

and

needs

the

economic

polit¬
do
desires and

has

boundaries

trade

sophis¬

statemanship

selfishness,

First of

I

think they

naive—or if you

or

are

personally, not

that

situation?

goods

The historical accident of

ical

more

brilliance

more

con¬

and

3*An

arguments

The great perennial

free trade

on

the list of policies un¬

with

way

our

forth

dergoing

the

again.

on

and soundness.

nected

The

barriers.

trade

Over

on

all

requests for specific import

other

High

interested

Our economic

policies, therefore,

in¬

lead

the economics text¬
principle of compara¬

of
"the

exchange, and an ex¬
prohibitions, or quotas, or tariff panding volume of production and
escalators to outright demands for trade are requisites to economic
the
overnight
abolition of
all strength and growth. Ideally that

is

strength depends

range

imported

they

hibitions,
do

One

advantage."

tive

suggestions

by

made

They

groups.

Others

Gettell

G.

R.

and

other

Many

being

are

the oil

to

of

consumer

surd

general proposition has been

The

present Act: to weaken the power

of

Acts.
Indirectly
being subsidized by the
the economy. The indus¬

American
are

of

suggestions

Now for the

taxes.

expressed in many ways. Let me
restate it briefly, stripped of re¬
finements. And I promise -to do

sarily

jockeyings

H.

me

import quotas and

terials peys extra. The

Advantage

changes neces¬
are mere

brella of tariffs,

extreme,

are

think

every

The

policy.

on

dustries, sheltered under the um¬

How

whole

our

all
in¬

mand,

Detroit Board of

Coleman's

open

present Act. He urged that it

nomic

ahead.

years

of

protected

expense

our

individual
consumer pays extra.
The greatest
Commerce, the logic of free trade
has been overwhelming to any¬ purchaser of all, the government,
pays extra, and we make it up in
one who thought about it with an

Program.
A few weeks ago the President
asked for a one-year extension of

the

us:

clear

responsible for

about to make. If you

of

John

cal Trade Agreements

remain unchanged pending

the

at

of

particular

benefits,

group

make it

not

are

means

great world trade, centering on the scheduled
phrase
Administration. expiration in June of the Recipro¬ books:

job

only
rest

they

ma¬

the

two

a new

currently engaged in re¬

is

Each

the

of

has

but
the

barriers, I should
that
the

domestic

One

From Buy

winner.

been the

has

the higher

for goods consumed

we pay

at home.

days of Adam

it without recourse to the

powers

prices

Smith, Cobden they
Bright, and Bastiat down to rest
recent pronouncements of trial

the

as

that go abroad, and by

between

theory and practical politics.
On intellectual grounds, as we

since

benefiting primarily the
people of other countries at taxpayers' expense, Mr. Gettell
contends "protected" industries are subsidized by the rest of
the economy.
Proposes as means for eliminating tariffs:
(1) persuading foreign countries to lower tariffs; (2) cease
raising existing tariffs or imposing new import quotas, and (3)
start legislation on change of tariff policy in this Congress.
Lists as provisions of a new commercial policy: (1) customs
simplification; (2) gradual tariff reductions, and (3) making
exceptions in tariff reductions to protect strategic industries
and skills, prevent displacement of labor, and guard against
foreign dumping. Wants "Buy America" clauses repealed.
Condemning

interests, and more
economic

private

confusion

test.

Inc.

Chief Economist, Time,

'

Thursday, May 21, 1953

(2196)

i2

let

bear

the

is imperative

the

burden

be

spread and the cost known.

Third, though I appreciate the
"tactical
has

reasons

asked

why the President

for

extension

an

o£

those
principles." And we have along, and bring closer to reality present
legislation, as is, pending
the obviously readjustment of our
drifted
into a tragically absurd
further study, I'd like us to get
foreign economic policy
which
situation.
started on what, at best, will be
we
know we have to make 'but
At present some of the goods we
a
long and slow procedure.
hesitate to start because it is a
produce are being sent abroad
politically sensitive issue.
/
No military strategist wants to
and consumed there: our exports.
join battle until he has fair as¬
Accordingly for the rest of my
At the same time we are paying
surance of victory. More
support
time I am going to take the "why"
taxes,
which

of the several under¬
qualified to act as
legally be distributed.

writers only in states in which such underwriters are
dealers in securities and in which the Prospectus
may

.

i(;

Blyth 8c Co., Inc.^
Eastman, Dillon 8c Co.

Kidder, Pea body 8c Co.
Harriman Ripley

.

Stone 8c Webster Securities Corporation

Union Securities Corporation

Wertheim & Co.

as

dollars

Incorporated

;

Smith, Barney & Co.

part

abroad

8c Co.

to

fore,

White, Weld 8c Co.

.

Laurence M. Marks 8c Co.

Central Republic Company

Robert W.Baird& Co.,
"

Jullen Collins 6c. Company

McGormick 8c Co.
i

Smith, Moore 8c Co.

The Milwaukee Company

-

Field, Richards Sc Co.

Hayden, Miller & Co.

McDonald Sc Company

Fahey, Clark & Co.

Arthurs, Lestrange & Co.

Pacific Northwest Company
-

Boettcher and Company

fUchard W. Clarke Corporation

T. H* Jones &

Company

for

our

Kirkpatrick-Pettis Company




so

war.
as

Who

And

long

shall
as

we

imports in return

The Beneficiary
~

billions of

exports.
of Tariffs

-

benefits?

Primarily, it is
the people of other countries—at

"our

have

expense.

the

As

standard
duced:

of

by

our" own

do
to

we

direction?

meet

policy

How

the

we

can

the

way

a

the

International
for

Chamber

which

privilege of preparing
was

consumers

our

same

subject,

a

I

had

I

the

OEEC

you

Commerce

to

before

ahead

go

with

of

■

feel
our

that

if

rest

report

we

trade

seriously jeopardize
with

know I am on the pay¬
roll of Time Incorporated. Also
I am active in the U. S. Council
of

best

reducing

as

jections to free trade theory?
As

be mobilized

to

prudent

-

allies.

draft our

to
principal practical ob¬
such

in

is

plans. At the same
legislatively time, Russia is moving fast these
days and trying had to split the
in the right

do

to

our

legislation

the

re¬

need

switch

we

living is doubly

the

it

myself to the "how." How can we
reduce our trade barriers?-What

aid

taxpayers
of

will have

and address

question for granted

foreign

As

burden

programs.

May 20,1953

the
do

to

for

someone

We have done this

refuse to accept

Newhard, Cook 8c Co.
^

since

there¬

paying

which

tune of about 35

continue

Alex. Brown & Sons

essence,
are

goods

consumes.

dollars

Incorporated

J. C. Bradford & Co.,

The Illinois Company

else

Moseley 8c Co.

taxes

our
own

to the

(Incorporated)

Ball, Burge 8c Kraus

F. S.

going

are

have exported. In

our

Hemphill, Noyes 8c Co.

of

foreigp aid, to provide
pay for the goods we

of

stall

or

barriers,
our

the

we

relations

West.

released last

The

week

bears out this

conclusion. Europe
impatient to the point of des¬
peration.
is

of

the

Start at Once

report on
report that
a

a

Legislative """

Program

So, I propose that we start on
Al¬ our own
legislative program, that
that my views we confirm the
direction, of our,
are in tune ' with the general po¬
chaneg of policy,, and get it under-"
licies of both those organizations
released

though I

am

just yesterday.

sure

unavailability for
consumption of the goods concerning the reduction of trade

.

*

/

•

Continued

on

page

5Q

Volume 177, Number 5222...

(2197)

Commercial and Financial Chronicle
The

nical

free World's First Line oi Defense
our foreign aid program as
free world's first line of defense, and opposes

removal of tariffs

now protecting defense indusjeopardy to economic and military health of nation.
Asserts current proposals for
complete, unilateral free trade
are
over-simplified and wrong. Calls for low tariffs on a selective basis, not "a
whole-hog, universalist, across-the-board

tr*es

as

a

to * continue
another year.
Proponents

to

American

basis.''

Holds removal of tariffs would
injure and retard vital
defense industries. Sees post-defense
depression not inevitable.

begins to

out

It

is

American

an

habit,

American

an

and

fault, to

tions

demand perfection—and to
expect
it to be delivered on
matter how

colossal

the

job to be done.
We

im¬

are an

and

lutely

judge

out

intermsof
absolute

the

and

ideal

ues

ob

the
in

j ectives

and

tive

rela¬

it

Gwilym

Price

A.

We

half million

a

takes

nation
of

care

engineer,
about

items

used

to

equip the military forces;

the

and

that

but

that that

assumes

I

not

am

an

something
and
I know

know

I

purchasing,

that you cannot create a procure¬
ment

in

catalog

dollar

multi-billion

a

enterprise simply by legal

enactment.
.

apply this demand for perfection,

all-or-nothing

ideal,

have

the
military

through most of this

cone

century, to world events and the
inter-relationship of nations.
It
has caused
us,
as
a
people, to
shuttle widely between

hope and

despair, between promise and dis¬
illusionment, back and forth be¬
the

tween
ism

chief

why

reason

scramble

We

a

patience

low

"Those who for¬

fear

wisely

in

with

The

is

ural.

Our
1940.

dustrial

fear

the
not

unnat¬

is

under-

economy

increase

Our

Com¬

in¬

in

is

concern

some

among

We

the product of this

tendency is to try to
finality and quick decisions
There is no

finality

to the stream of history
black and white decisions.

—no

stream

flowing
nations

of

and

His

name was

James Fccrestal.

Our

Americans

We

have

of

some

them

them

of

many

of

effective weapons

in

that

opinion

his

native

had

the

The

a

proposal, some
the com¬

board each

Detroit

10%

cut

be

said

Board

of

last November asked

to

basic

We

come.

what

issues

for

across

we

use

can

10%. We can
our
selling and distri¬
facilities to help do this.

living
improve
bution

When

by,

the

heavy burden of Fed¬
is lightened, funds will

eral taxes
be
a

sun

phy and

as

Current

that all im¬

unilateral

port duties be repealed, including

as

a

Two

pf

de¬

to win
years

turned

dying

con¬

economy.

prices

reduce

steadily

can

power

restored,

beset with

new

the balance

in

our

fears.

address

Engineers,

by

Mr.

the world
people are
Two ques¬

Price

Wash injtoh/ D.

at

C




we

good record, from the

a

point of view of any trade liberal
does
not
expect miracles.

who

people,

American

the

Probably

through their President, Congress

Commission, will want

and Tariff
to

that slowly

continue

rate

imports,

on

basis.

But

a

on

declining
selective
duties

eliminate

to

seriously

being

entirely,

as

is

proposed

by

responsible
will

persons

beyond

organizations,

and

disrupt
of the

of
doubt
critical
parts and areas
national
economy,
with

question

serious

and

here

both

consequences

abroad.
I

not

do

that

refer

modest

those

are

cited

to

disruption of
industries

sized

-

over

and

Continued

over

on

again

page

May 20, 1953

Pacific Gas and Electric Company
First and

Refunding Mortgage Bonds, Series V,
Due

June 1, 1984

Price 101.78%

to

Plu3 accrued interest from December 1, 1952

than

stability

own

our

The
-

•

Prospectus may be obtained in any State in which this announcement isHtrcnhted from only such
of the undersigned and other dealers as may lawfully offer these Securities in stick State.-- ■
'

the

or

economy.

is
intimately
the good health
other national economies.

up

of many

own

our

the

It

is

of

defense.

world's

free
It

the

is

first

Corporation

The First Boston

hope of the

everywhere
who
have
been, entrapped behind Commu¬
nist border
guards, mine fields

dom,

our

we

vigor.

If

wire.

barbed

we

are

mission

unsought

line

of defense of

to

Wcrtheim & Co.

must retain our economic

Charles Kettering told this

in 1947 of the great
surprising discovery the
had

learned

provide
you

your

if

stability

rest

of

the

the

you

a

war.

want

with

friends

have to have

The

the

after

made
that

the

An-

to

milk,

solvency

free

world

Hallgarten Sc Co.

Corporation
,

Stroud & Company

Schocllkopf, Hutton Sc Pomeroy, Inc.-

L. F. Rothschild 8c Co.

/

American Securities

'

Coffin & Burr

Laurence M. Marks & Co.

Weeden Sc Co.

W. C. Langlcy Sc Co.

'••y.t;Incorporated

Incorporated,

.

Alex. Brown & Sons

Reynolds & Co.

Incorporated

Gregory Sc Son

Baxter, Williams & Co.

G. H. Walker Sc Co.

Estabrook & Co.

Hirsch & Co. New York Hanseatic Corporation

Incorporated

F. S. Smithers Sc Co.

♦

-

Courts & Co.

Wm. E. Pollock Sc Co., Inc.
..<*•;

1

Swiss American Corporation

of

Cooler Sc Company

Van

goods

Ira Haupt Sc- Co.* .-E. F. Hutton Sc Compaay

are

In Order to

"tattain theSe goals'"We have sent
money,

Drexcl Sc Co.

Incorporated

»:

'

i*

j

Alstyne,^Noel & Co.

cow.

and

important to US, tOO.
abroad

5

Salomon Bros. Sc Hutzler

Pick & Merle-Smith

A. C. ^llyn and Company

'

as

free¬

gathering

It

Ilalsey, Stuart & Co. Inc.*

Equitable Securities Corporation i

Bear; Stearns & Co.

peoples

and

-

line

RIter Sc Co..
•An

This is

that

imports
1975.
.

our

by

tivity is the reason, as Mr. Irving
Olds has pointed out, why rabbit
is cheaper than mink.

world

counter-forces

surge up and

military

is again

the

spring from

estimated
triple

to

materials

offer to sell or a solicitation of an offer to buy these securities.
offering is made only by the Prospectus.

and

better products

with

Questions Face Us
as

have

raw

an

is the decisive element.

of course,

and

Now,
begin to

trade

has

will

of

$65,000,000

system

we

political philoso¬

working

a

free

The

example,

NEW ISSUE

health of the American

two

a

proposals for complete,

rise.

to

Policy Commission, for

any

Wrong

the noblest and purest of motives,

The

create

bound

should

been

and is

friend

continue

will

Materials

production through
application of science and
technology.
Better productivity,

the first

both

A

Imports

cheaper

fulfill

to the

Tennessee.

to

Commerce

There
possibilities

unlimited

and

new

you
as
"Three
Quarters Peace, One QuarterWar."

cept,

through

train ride

tially since

they

imports

our

steadily and substan¬
the war. Presumably

risen

have

of

duty-free.

admitted

are

buying wave.

almost

are

should

that

released

sustained

Totalitarianism
up

a

half

than

say,

economic

to

has

on

Are

by raising our national standard
or

The good

generations

Noble

described

ago

Reciprocal

the

of

little

Complete Free Trade Proposals

coming effort to convert
our expanded productive capacity.
We can absorb most of it simply,

many

have begun

Admiral

father

a

Cordell

that

scepticism

him,
pointing,
"Those
sheep have just been sheared."
To
which
Mr.
Hull
replied:
"Sheared on this side, anyway."

for 10 years.

year

Holmes, who
proposition is

We need

Tariff Law, is said to have shown

Security Agency last
plan by which our

would

attacking

endorsing

general

damn."

a

the

of

plete elimination of import duties.

tariffs

like

and

Justice

of

"No

worth

.

cide

little

a

sin.
point, however, I think
might
well
consider
the

we

recommending

fall

officials, and :other
will. To oppose it

had

it

1951

More

all

on

than 25%; by
dropped to 13.3%.

more

was

this

serious,

shameful; but

counter-march

is

good

this

This announcement is not

of

have, I think, turned a corner and
against evil forces have begun
a

of

now

number

a

solvency

generation has made

mistakes,

men

have

again into the civilian stream.

history is always Free World's First Line of Defense
Much
more
is
at
stake
here
problems between

end."

never

government

day

the point where the product can
be sold in mass volume. Produc¬

The

by businessmen, editorial writers,

on

ex¬

It

"The

said:

ago-old problems.

that is being widely accepted

one

imports

dutiable

rate

one

Mutual

which

groups

long

of course, in the direction
of free trade. In 1934, the average

way,

products

,

this

fancied

or

is in the direct
professional
and

your

therefore, highly organized."
It is a plausible argument and

Hull,

backed

what

that

me

panded economy can be absorbed

who

of

specific

policy drastically, so as to admit
a
much heavier flow of imports.
Several
national
organizations
them

be real

with

We Americans have come a

dislocated"—

or

of

peo¬

our

of

get

to

am

line

the

learn

to

moderation.

man

injury

said;

of

concern

gineer is the preservation of our
national security, I am sure you

represent special interests and are,

behind another proposal
aiding our overseas allies —
change our trade and tariff

to

mount

spoken.
the para¬
of the Naval En¬
be

to

that

know

over

apply the advice

great
American

injured

the past the one protecting automobiles. but
I
believe
they
are
over¬
three years just about equals our Our basic tariff law will expire
simplified and wrong. They are
entire net increase in production
next month, and we shall
hear another example of our impulse
for the 20 years from 1920 to 1940.
to try to do too much, too soon,
more of this proposal as the Con¬
Nothing like that has ever hap¬
too
easily.
I believe such pro¬
pened before in history, and there gress acts on the President's re¬
expansion

need to learn and
a

be

and "There may

weight
for

I

Because

patriotic interest.

considerable

now

need

agree

Changing Our Tariff Policy
is

words of opposition

feel

I

about to say

>

-

here

that

will

At

There

presented under
"Trade, Not Aid." At

motherhood

program.

The

heard

have

we

settlement

since

for

need

time you

every

business slump may fol¬

a

a

for

an

disarm.

to

and

a

"And

other

munists.

equally

or

America

in

The
is that

generally
mad scramble

ourselves

rearm

mad

It is

we are

engaged either in
to

isolation¬

of

extremes

internationalism.

and

again.

repeat it, the price goes up."

to

agencies of a
service; but we endanger our very
existence when we extend it, as
operating

we

we

of subject¬

extremes

to

ple how

We do ourselves harm when we

this

but

years,

the risk

run

added:

had

catalog system in buying the two
and

we

their history are doomed to
repeat it"; to which someone else

accomplish too much, too
soon, too easily. Congress, for in¬
stance, passes a law that directs
the armed services to use a single
and

well under
have given it

in

arms

pro¬

being

slogan

may

of building
foreign fac¬

form

present

The

saying

I

tories under the offshore procure¬
ment

world

a

get

want to

arm

in

so

past dozen

it

abso¬

are

its

American

great country

a

up

such
Santayana said:

improve¬

ment.

This is

stood

not

ing

terms of prog¬
ress

the

live

we

treatment

must

rather than in

not disarm

we

in

with¬

more

harder."

know they would endanger our
military security. Because I be¬
this so strongly, I have un¬
dertaken
the thankless
task of

lieve

the »worst, they say—"A few in¬
efficient organizations may suffer"

out that postwar pro¬
gram.
It helped some good peo¬
ple get back on their feet and
in the process it helped to win
political victory for us where we
needed it.
I hope we will con¬
tinue aid to our allies, particularly

it is safe to sleep with¬

arms.

have

to

val¬

must

we

before

sure

in which

situation

any

that

relax

and

are

we

We worry,

simply

patient people,
prone to

everyone's

first, if we will dis¬
gold plates arm again, go to sleep, and be
eaught off guard by a waiting
enemy who talks of peace solely
for
the
strategic
advantage
it
can
give
him.
The
answer
is

immediately,
no

in

be

to

seem

mind.

is

posal

carrying
sometimes

consume

working

posals, if carried out, could harm
economic
stability,
and
I

—"A tiny segment of our economy

and

there

acted

we

export

more

maintain employment
industries, and enable

the nation to

into money.

run

think

I

billion

a

spend,

in

given our friends more than

and

for

tariff

new

billions

consumers

to

$35 billion. As Paul Hoffman once
pointed out, you take a billion
here

law

our

this

of

policy say that it would "raise
efficiency, reduce aid abroad and
taxes
at
home, and thus give

associate

have

-

that

unique quest

gesture

a ■»

we

nations, we have
already gone so far as to jeopar¬
dize, if not totally sacrifice, our
competitive
position
in
world
markets
for
highly
engineered
products in which labor cost is a
primary factor.
Since 1945 we

President, Westinghouse Electric Corporation

movement for

have opened our
productivity teams
abroad.
In
strengthening

factories

our

Prominent industrialist upholds
up

In

history,

from

By GWILYM A. PRICE*

building

aid.

in

13

and-tech-

>

.Ke&n,.Taylor.&-Ca^v,

Stern Brothers Sc Co.

v.

...

44

14

(2198)

The Commercial and Financial Chronicle...Thursday, May 21,

Responsiblity of Analysts

Canada and the Security Analyst
By RICHARD

W. LAMBOURNE*

The

closely

are

akin

to those
indirectly

trustee. Directly or

a

*

Partner, Dodge & Cox, San Francisco, Calif.

we

Past President, National Federation of Financial

reached the status of

Holds

re¬

of

demonstrated

that

in

instead

of

a

we
have a very definite
community of interest in the ever-

Securities

rising recogni¬

"In

as

The
in

'full

States,

with activities

to the

projects
pointed
to¬

law

wards this goal

to

pro-

a c

Lambourne

that
nancial
the

the

analysts of Canada

objective and

same

fi¬

Institute

of

Analysts

includes

the

"To

analysts

of

and

It

the

promote

standards

"

,

that

create

the

on

profes¬

profes¬

that

our

fact

be

the

uninformed

I

Status

require.

may

this

will

end.

analysts
of

I

influence

great

think

can

of

tirely fair to

no

tions

im¬

more

portant aspect of the
^Federation of Financial

investment

National

in

say

with

the

by

Indeed

years

professional

the

old

label

tician"
do

was

have

legal

or

*An

any

of

all

for

ties

those

work, and they are
legion.
For
example,

address

Montreal

of

Mr.

a

Montreal,

of

ing

price
grade

does

in the

not

neces¬

of

case

markets

of

financial

great

28,

1953,

of

scope

and

before

April

basic

highly speculative

whose

of

largely

mar¬

securi¬

not

are

de-

by institutional in¬
vestors. In any event the broaden¬

Investment

Canada,

views

are

termined

recent article

Lambourne

Institute

or

the

and

investment

This

sarily apply
ginal

our

quote from

Analysts,

yet

composite

of

securities.

cer¬

as

minds

competent

research

analysis is

significance

a

factor

throughout

the investment field.

agree.

the

over

those

of

more

assured

in

the

minerals,

of

vital

such

Many of
wondered

about

securftv

dian

Direct W ire

lacts.

but

on

it

^**hsing

be

the

which

ot

Canadian

five

oil

.

and

years

aj|

Gf trade

the

some

rate

Some
due

other

of

were

one

gas

re-

place

every

predict

that

other

will

were

financial

reach

world's

myriad

them

would

to

appear

defy

Th
The

and

LA

would

c

Security Analyst

not

spell out

to

presume

try

operational code

an

Tel.: CE

6-8900

(and

us

services

as

for

expenditures

tourists

to

of

in

of

problems

would

be

gold

she

That

is

gument.

sent

as

would

us

many

dollars

Society will follow the
of

their

and

gether

own

present

with

good judg-

the

their

facts

honest

to-

be

may
many,

especial

an

instances

a

virture

where

,

t h

the

advantage that it would per-

mit

countries

other

goods in

take

to

urated with charity.
Our relations with the rest of the world
would probably be improved if

other countries were not so frequently made to feel their de-

pendence upon the United States,
posi-

For

thing,

one

non-selective

it

forecast

with

be a
benefit-

ing primarily the gold producing
nations, including Russia, rather
than those nations which
wish

to

aid.

we

such

Also,

step
might have the result of prevent-

postponing

or
mental

funda-

more

which

readjustments

might otherwise be made.

prices

left

are

alone,

If gold

other

to

the

use

op

new

their
and

products and

techniques

marketing

to improve

production

of

that

so

they

the

their

ment

supply of dollars,

-A Fallacious Argument

be-

In

essence

reasons

of

the

many

ar-

times

however,

this
inthe gold price there is

contrast,

crease

in

argument

for

another argument which is

to

an

as

should be
raised
because
the
Price of everything else has ad-

take

more

of

our

in

unlimited

quantity.
If we
to give them more
goods for their gold they would
find it easier to buy our goods.
us

would

agree

-

That
more

plausible

gold

the

standard

it would not have

fact

permitted

of

know that

us

highly

a

goods for gold would

of their

since 1933. That is no doubt corContinued on page 38

be unimp0rtant

since there would

Canadian Securities
BONDS

—

Provincial,

Government,

Municipal

Corporation—External and

Internal

STOCKS

fas¬

Moreover

Orders Executed
at

carefully done it renders

productive

results

in

on

Canadian

if

Exchanges

regular commission rates

the

form

of capital enhancement and
income. It is indeed a
worthy ob¬
cern

any

is. with

where

investor. My

those

analysts

as

few
a

group

Burns Bros. & Denton, inc.

con¬

instances

Tel.:

DIgby 4-3870

37 Wail Street, New York 5

TWX: NY 1-1167

may

Wires
on

page

38

the

rise in prices which has occurred

also

the selec¬

"growth" stocks is

that

demand

could

we

tips

this

tary principle. It is shot through
with inconsistency.
'
It is perhaps not particularly
important that its supporters offer
as proof of the superiority of the
old

.

Benefits Abroad

However

may appear as an ethical proposition, it is untenable as a mone-

ventures.
of

mis-

chievous as it is fallacious. This
and is the claim that the price of gold

great demand

a

vanced.

would

heresay in the promotion of

All

can

increase their exports, hence aug-

exacti¬

of

na-

tions may be compelled to devel-

tries

professional

contrasted

most

a

e

demonstate the

,

would

procedure,

risk-enterprise simply

The

our

atmosphere less sat—

an

abroad for American goods
reiatiVely little American demand
for foreign
goods.
Other coun-

inter-

a

higher price for gold would have

reasonable

For

pretations to all who ask for them

isfr both

financing their sale through loans
which will never
be repaid h

give

as

security analyst goods if, somehow, they could pay
might follow in this period of for them. Gold is the one comexpansion. Surely we can be con- modity which they can
export to

new

ST.

price,

that the Canadian

cinating occupation.

SALLE

exports to

such

reviewed there is

r1
a*
Canadian

We

usu-

the

eased by the fact that each ounce

and many

analysis.

on

nations ing

continued

less

producing "countries. Your new her twice
offerings of oil stocks and "land fore.
seem

she

and

American

at

oil

the job is

Chicago 2, III.

her

Americans

both

gold-buying
as

items

in

that

the

among

so

England)
than her imports (and
two days, similar items) from America, her

reported

Canada

course

spreads"

as

before

as

find

in-

past

1,400%. During 1952

geologists

fourth

of

they related to
imports and
exports

long

natural

discoveries

new

have

as much goods as beregar(jies 0f purchaser. The

terms

their

the

ally

If a11 countries were simulThere is much to be said for
taneous].V to double their Price for tbis Point of view> although it
§old' sellers of gold would re" can not be re§arded as conclusive.

But

in

/'
States is

Since the United

view-

have

reserves

4,000%

over

Americanism.

abroad/ There is cer ainly some- No one takes by choice the
b®- said /or thls P°int f tl0" of a P°or /e+latl™'

situation.

oil

your

sented

thlng

raised

consider

creased

gold

nothing Wpuld be unaltered.

a

us

of

been made in recent years. These
recommendations fall in one of
two classes- 0ne line of argument
that an increase in the
Pnce of gold would ease the dollaKr shortage, promoting recovery

be lifetime. For
an inv^^en\°Pp unj ^ Jaguar
instance, let

f

price

tfor

ceive twice

f

exploratory

may

Continued
4

proposals

long-run worth of careful analysis

Exchange and
Principal Exchanges

Greenshields & Co., Montreal
and Milner, Ross &
Co., Toronto




is

+

the

England, for
a .hope
or
a
prayer,
example, would get as many bushmight well turn out ejs 0f
wheat in exchange for a

than

more

the

render sound

you

that

How

1

advice to investors
situations

in

in

Numerous

abreast of the fore^

finest occasion to

1891

NORTH

can

assets

for Cana-

noses

p

Mow

hydro-

nroblems

e

analvsts

b 51

.

jective for
to

vast

States have

t h

™

?

tion

1

come

times.

in the

Kiise

a

the

your

importance

that rapid growth

MEMBERS

BROADWAY

from

other

S.

E.

security
analysts of Canada may well, have
in this dynamic oil situation their

Goodbody &_ Co.

would

we

the

following
analysis:

con¬

having

1 2,
regard

proposal

e

out

growth

timber,

and

our

us

cannot .be

New York Stock

115

the

difficult to

oil,

economics of

and

New York 6, N. Y.
Tel.: BA 7-0100

in

future

power

as

Other

all
that

sure

country

any

electric

future of

Canadian Exchanges

ESTABLISHED

am

development of

tude.

.

from

viewpoint of what is yet to

in-

Canadian Securities

when

receiving end of the
author gold flow, it would be the United
to
raise
the States which, to a large extent,
price of gold would be paying for economic
as both unjusimprovement abroad by providt i f i e d
and ing more goods for foreigners in
dangerous, exchange for additions to our gold
and
this
I stock.
As an alternative to givshall
point ing our goods away outright or

indubi¬

an

challenge and a great
responsiblity. Humbleness of opin-

Stocks & Bonds

on

is

It

ceive

It

Canadian Oil, Mining

Or Orders Executed

I

share

Canada.

of

are

capital

world.

potential

a

ion

in

for

issue
I

of

who are willing to venture
savings in enterprises having

their

ment

Public Utility & Industrial

.

by
the contribution to
world prosperity generally and
of probably by a decline in anti-

t h

do not lack for risk-takers—

you

dictates

Govt, of Canada Internals

,

n

1953.

devel¬

or

i

March

still

are

fident that trained analysts in the

CANADIAN SECURITIES

your

fi¬

a

Perhaps you will
Your tremendous

resources

lure

Montreal

Net U. S. Markets

we

are

judg¬

farther

go

analysts

responsible

we

in

becoming

the

not

the

the

and

security analysts.

may

movements

statis¬

disappearing. Now

it,

who know

me

"financial

statutory form, but

tainly in

let

of

we

that

say

years

institu¬

States

work

ment "of trained

practicing security
analysts did not have it, although

of

United

the

Societies than this subject of pro¬
fessional status. Ten or 15
ago

readily
natural

serves

backed

Analysts

that most major

decisions

-

industry."

one

be few occasions

Gold," written by Harry Sears and

Canada
as

promotional

a

stage.

sure

am

however, that
today are in a

agree,

respect to the flow of capital, not
only in the issuance and sale of

of Analysts

in

as

table

in¬

industry and the public an understanding of the function of se¬ new securities but also in the
curity markets and of the pro- equally important shifts of in¬
fession
of
investment
security vestment funds between already
analysis." •
existing issues. I believe it en¬
Professional

in

wealth

background,

opment

ex¬

quite unrealistic to think
law or set of laws could

security
position

of

part

in

can

investor

seems

you

sional ethics."
"To

of

skeptical

Act

accomplish

security

of

companies

scrutiny

am

dividual

following

investment

by

trade,

changed to provide all the infor¬

that any

establish

help not

the

to

Editor; Commercial and Financial

heritage of tradition

established

"storehouse of value" in the form

mation

Investment

rich

a

and

of

I

Securities

objects:

adoption

made

the

Now

corporate charter of the

Montreal

to

direct

but

closed."

have

ing with equal fervor for it. In¬
deed the

of

respect the

cases

work¬

are

been

public
it

this

In

sional analysts facts that in many
had hitherto been undis¬

know

we

has

the

pose

ceptance,

but

houses.

because

professional
W.

un¬

Congress

as

permit higher profit to

appearing

try

security analysts of invest¬

ment

have

our

ac¬

is

it

among

the

today, the in¬
formation fully disclosed by is¬
suing companies is of most use

and

broad

As

be

of

story to the

investor,

intended.

have naturally
taken the lead

R.

disclosure'

informed

being older,

of

nothing

or

must

was

administration

little

to

inclined to view your great coun¬

complished toward imparting the

Societies

the

Com¬

Exchange

Miami Univer-

it

lasting attributes.
Although analysts

nancial

the

statute

profession.

a

and

that

decision

of

dis¬

"Times"

York

analogy is valid for the

at

proposal to increase price of gold is
unjustified and dangerous, and "we cannot wreck our economy
says

analyst, and I am
Chronicle:
—
be compelled by an unfavorable
is, then all of us
I have only recently
had the trade balance to ship gold.
The
will constantly be ware that inopportunity to read the article benefit to us from the changed
tegrity, unprejudice and freedom "Honest Dollars and the Price of price of gold would be reprecertain

mission:

secur¬

ity analysis

New

Klise, Associate Prcfessor of Economics

sity, Oxford, 0.,

always

must

others, and not merely for his
If this

cussing possible revisions of
prospectus requirements by the

conflict

tion of

the

Price of Gold

on

professional

healthy degree of investment skepticism.
clearly

trustee

a

own.

though trend of business activity will turn down, we are not
faced with "a cyclical collapse." Points out
security analyst by
a

that

ing

E. S.

think and act in the best interest

are akin to those of a trustee, and
lauds role of Canadian security analyst in
present situation.
Sees no threat to prosperity from world
peace, and states

training should have

With Sears

savings. I need not dwell
this point but it bears repeat¬

on

sponsibilities of analysts

The past few years have

EDITOR:

College Economist Takes Issue

cisions with respect to other peo¬

profession.

a

THE

ple's

West Coast security analyst, stressing community of interest
of American and Canadian financial analysts, points out their
now

charged with the duty of

are

rendering advice and making de¬

Analysts Societies

work has

TO

responsibilities of analysts

today
of

LETTER

<

1953

to:

Toronto

•

Montreal

Ottawa

Volume 177

Number 5222

LETTER TO

THE

The Commercial and Financial Chronicle

EDITOR:

(2199)

dullness that follows
sold •position;

Answers Dr.

King

He

*

on

For six and

"Earmarked Gold"

-

Timken Detroit

an over¬

*

'

- *

Axle; Timken Chicago Rock Island & Pacif¬
Bearing;. Twin Coach; ic/Seaboard Airline; South¬
U, S. Rubber.
ern
Pacific; and Denver & Ria

Roller

^

He

and

half weeks the

a

market has remained in

15

Grande.
*

•

a nar¬

Some

stocks

have

*

*

been

Dividends are one of the
ten-point range or rough¬
quietly climbing back toward
Franz Pick points out under Gold Reserve Act of 1934,
ly in the 270-280 area while their 1953
biggest influences on stock
highs and a few
the rails have been fluctuat¬
foreign governments and central banks can convert dollar
have gone to new peaks for prices. It is encouraging to
deposits in U. S. into gold, and, therefore, such foreign deposits
find that in the first quarter
ing ina five-point" a r e a the
year, while the general
are a Len on the
bounded by ~ 101-106.
gold reserve.
There market has been
they were 5%'.higher- than
floundering
have been three declines dur¬
they were a year ago. Biggest
around
Editor, Commercial and Financial as the fact that these foreign gov¬
waiting for the clue
increases
were
shown
for
Chronicle:
ernment dollar assets have noth¬ ing that period with the sec¬
on/the tax picture. Among
ond lower than either the first
Under
the
title
"Takes. Issue ing to do with "earmarked gold."
financial, office equipment,
them are: American
row

t

with Franz Pick

I

Repercussions

on

on

letter by Dr.
J.

a

Harold

King.
do

I

not

to

enter

want

into

contro¬

a

with Dr.

versy

King's

per¬

opin¬
ions, which I
fully
respect,

readers

New York 6, N. Y.

the

1

to

tion of figures.

avoid

any

.

.

concerning

state¬
billion of

my

"of the $22%

.

AND YOU

Dr. King has seri¬
...

doubts

ous

ment,
gold

General

"head

level

for

real

utility,

rubber,

estate,

machinery, and building com¬

panies.

indus¬

payments

Decreased

most

were

prevalent in

amusement, farm machinery,.
textile.
[The

views

article do
time

not

coincide

expressed in thfa
necessarily at any
those of ihz

with

Cudahy;

level

110-111

the

and

„

Spink, Others
Ailynm

THE MARKET

once

misinterpretai

Can;

chart

the

reverse

,

again, in order
Franz Pick

a

.

I must under-,

line

286-288

trials

is

there

call

American Tobacco; Chronicle. They are presented M
General Foods; du Pont; Cin¬ those
of the author only.]
■
■
for rails.
»
cinnati Milling; E x-C e 1 l-O;
Revere Copper & Brass; Gen¬
5
Harold
The stock market generally eral
Cable; S/hamrock Oil &
likes >hot weather.
Records
Gas; Houston Oil; Raytheon;
With A. C.
show that it is almost always Pressed Steel
Car; Hilton
(Special to The Financial Chronicle) *
possible to sell stocks bought Hotels; Gillette; Melville
CHICAGO,
111;—Harold XI.
at this time of year at a profit
Shoe; Canada Dry; Pepsi Spink, Kenneth L. Eaton and
sometime in June or July.
Cola; Republic Steel; Jones & Linus F. Groene have become as¬
Business sentiment is hopeful
Laughlin; Great Western sociated with A. C. Allyn and

May 15, 1953

point that

one

which

third

or

■

sonal

but

for having been

very sorry

Electric; Anderson
cision, the above enumerated cold
Prichard; *Warren Petroleum;
and
shoulders"
formation.
facts.
But as currency
theory is
Interchemical Corp:; Ameri¬
one of the most pitiless laws
above. Usually the market is prepar¬
can Car and
Foundry; West»the governments, I can only con-T
ing for a reversal of trend
elude
"dura
lex, sed lex" and
inghouse Airbrake; General
when it behaves that way.
close, I hope, this discussion here.
American Transportation;
Ability to move out of this Lowenstein
(M.) & Sons;
(Signed) FRANZ PICK
narrow range on the upside
Pick's World Currency Report
Reynolds Tobacco; Chicago &
would suggest a desire to test
75 West Street
'
'
Northwestern; Southern Rail;

7, of your May 14 issue,

page

am

forced to publicize, with such pre¬

of Gold Standard," you published

.

By WALLACE STREETE

have, about $3 to $5
.'billion are mortgaged by dollar
-holdings of foreign governments,
therefore, only about $16%
to
,$19% billion are actually all our
.gold stock."
!
we

during the summer months Sugar; Liggett & Myers;
generally sometime Lorillard; Philip Morris; Fansuggestions were disappoint¬ after Labor Day that real steel
Metallurgical; Western
The authority of the Federal ing to people who hoped he business trends are evident. Union;
Consumers Power;
would let the Excess Profits
Reserve Bulletin should not have
Perhaps that is why so many Pacific Gas & Electric; Pacific
been quoted in this discussion and Tax die a natural death on bear
markets, including those Lighting; General Telephone;
Dr. King's belief that I could have
June 30th. There is still
strong that -started in 1929, 1937,
made the mistake of
deducting
"earmarked gold" from our offi¬ opposition to this unfair tax 1946, did not go into their
President Eisenhower's tax and it is

Company, Incorporated, 122 South
La

Salle

Street.

Mr.

Spink

was

formerly manager of the munici¬

.

gold stock, is not exactly a in Washington and the
compliment for my knowledge of for
passing a new bill is
cial

currency problems.
The

facts

somehow

are

the

ent.

According to the
of April, 1934,

famous gold
foreign

act

every

and/or

government
is

entitled

man

EPT

bank

central

H<

•

i

*

.

i'fi

doubts

foreign

foreign

movements,

information from

S.

U.

the

ex-

that

to $5 billion of such balances

highly conservative.
of

the

Federal

of

old

saying "don't sell

have

to confirm

pletely legal point of view,

a

ing period. But wise traders
stocks

&

Eaton and

Groene were also associated.
mil;-

solicitation of offers to buy any of these security

made only by the Prospectus.
'

■1/..

•

May 21, 19301

NEW ISSUE

is

$30,000,000

period of pessimism per¬

•

•

Philadelphia Electric Company

that

we

do

not

He

First and

314% Series Due 1983

then

have

Refunding Mortgage Bonds

the
Dated May

Due

1,1953

May 1, 198&

He

Stocks that should be most

realize that the best time to

well accumulate

j.'.,, •

a

large backlog of demand for
consumers goods.

de¬

uninterest¬

an

The offering is

.

Dempsey

with which Mr.

to the business out¬

tant difference now and

a

sensitive

com¬

as

as

t'fi

Bank

my

usually

are

*

would

market base after

a

cline is

Any official

Reserve

"

Mr.

department for

haps largely because of expec¬

com¬

mercial banks, would have shown
-Dr. King that the figures of $3
„

This advertisement is neither an offer to sell, nor a
,

peacetime basis. The market,
however, rallied sharply from

change control authorities abroad dull market." The formation is
and

;
j ;

tation that the wartime EPT
patient bulls who remember would be ended. The impor¬

estimate of such foreign

trade

..

look because of the shift to

'

"

'

Co.,

grave

*

-

on

r,

would

to

fdollar deposits, based

*

who

change its dollar
The market continues its
deposits in the U. S. against gold
'at the official price
of $35 an digestive process giving ; oc¬
ounce, at any time. To my knowl¬
casional tests on the downside
edge there is no official publication of these constantly fluctuat¬ on
favorably light volume.
ing American dollar balances of
This has been encouraging to
foreign governments. An easy ob¬
tainable

*

predicted that
In many respects the cur¬
expire in a rent market situation is like
period of "Congressional con¬ that of 1945. When the war
fusion" may still be right.
ended
there
were

differ¬

-

-

the

so

time active phase until the fall.

short

pal

during

to
*

as

to what

happens

the Excess Profits Tax in

the .next, six weeks are those

Price 102.60% and accrued interest

seriously
affected by this unfair levy.
The following had to pay out

that have been most

Ever
—

the

Well,

First

hear

National

recently

Bank

did,

we

of

when

of

Hudson
we

ft?

Falls,

picked

up

New
an

York?

order

to

buy 50 shares.
Not

that

it's

had

someone

miles
come

of
up

30

or

40

popular issues

more

we

private

with

a

an

wire,

idea

that

our

110

and

1100

was

quite willing

account

offices,

65,000

might

executives

seller.

man

stock—

in

Minneapolis

for

a

price.

Moral of the story?
None
or

in

widely

bank

owned

dividends

—

—

stocks
even

when

—

a

we're

that

when

whether

10^
at

phone
the

it

comes

they're

call

other

little
can

end

to

buying

known

usually
of

the

or

pay

line.

Trading Department

Merrill

earn¬

Metal; Bendix; Bliss & Laughlin; Boeing Airplane; Briggs
& Stratton; Chicago Pneuma¬
tic Tool; Cincinnati Milling;

obtained from any .of the., several under¬
qualified to ad as
securities and in which such Prospectus hay legally be distributed.

Copies of the Prospectus may be
writers only

dealers in

in States in which such underwriters are

Equipment; Continental

Foundry; Continental Motors;
Cornell-Dubilier; Cutler Ham¬

Douglas Aircraft; Eaton
Mfg.; Ex-Cell-O; Fairchild
Engine; Garrett Corp.; Gen¬
eral Cable; General Railway

The First Boston Corporation

Lehman Broi

Goldman, Sachs & Co.

Eastman, Dillon & Co.

70 PINE STREET

&

Beane

NEW YORK 5, N. Y.

Offices in 104 Cities

Signal; Niles-Bement-P o n d;
Motors; Republic Avia¬
tion; Revere Copper & Brass;
Scullin Steel; Sperry; Square
D;
Stewart-Warner;
Sundstrand Machine Tool; Thew
Shovel; Thompson Products;

Wertheim & Co.

;

Shields & Company

" L. F. Rothschild & Co. *
Hirsch & Co.

Bacon, Whipple & Co.

.

F. S. Moseley f: Go,

.

F. S. Smithers & Co.

Paul H. Davis & Co.

Stern Brothers & <&s,

The Illinois Compry

Reo

Lynch, Pierce, Fenner




of their

mer;

,

particular. Except

selling

to part with his

or more

American Machine &

Clark

And they did.

A

third

ings in 1952 because of * this
tax:

of the

one

maintain markets for; It isn't.
But

a

Baker, Watts & Co.
Pacific Northwest Company

Farwell, Chapman & Co.
Smith, Moore & Co.

Yarnall & €e.
McJunkin, Patton & €&,

16

The Commercial and Financial Chronicle..

(2200)

Thursday, May 21, 1953

.

By

its very nature it must be
carried out in the interests of ail

In Defense of the Federal

of

the

people.

executed

Reserve

System

demand

•

the

value

banking—in the

reserve

with

of

ter f

in¬

before

have

24

the

Board

of this

staff

and

all serving

are

trustees

all of the people

vast country,

faction,

>group, or

Wash¬

in

as

not any one

section.

or

Not

crea-

Merely "Bankers' Banks"

J

t i

of

o n

Although

re¬
*-

gional

banks,
together

knit

by

,

Y

Banks

5

various

body

In Wash-

lishment

of

■ W*McG*Mart,n'Jr*

to

services

which

the

Fed¬

the

central

a

institution

with

authoritarian powers.
Federal Reserve Bank and
branch

Reserve

referred

are

eral

than in the estab¬

rather

ington

Federal

the

sometimes

ids' bankers', banks, that;describes
only a part of their function. The

|

national

a

,

office

is

local institution

well

as

nation-wide

Each funds, and
each

regional

a

Reserve Banks perform for
banking community, such as
supplying currency, • transferring

-

and

an
:

collecting checks,

essential

the

element

mechanics

of

in

are

keeping

modern

mercial

part of
Through

banking in step with the

financial

needs

of

repre¬

sent the views and interests of the

of this Reserve System is to serve

their

boards

banks

are

of

in

jarticular

directors,

position to

a

region

wide banking

culture, and all walks of life.

nation¬

This institution is the fountain-

functioning from the
outward, we function
through an interdependence of all

head of credit—of the great bulk

Instead of

of

center

Reserve

System

The

members.

is

health

member affects

in

of

our

money

medium

pocket

parts. The vitality of the Fed¬

eral

for
money

its

each

through the work, and the
conviction, and the determination

all

of

importance

has

life.

that

Within

carefully

the

the

outlined

whole

law,

who

the

bank

With

our

responsibility for formulat¬
national

credit

policies

and

Supervising their execution.

The

Federal

but

the main

it

is

banking system.
and

and

private

t&casjon

building

bf

of
of

Boston,

the
the

a

reserve

Mr.

Of far greater

the

System's

re¬

the

life

blood

of

The fact remains that without

appropriate

opening

of

on

the

Reserve

Mass.,

May

6,

and

tary policy
distress

about

factor,

the

of

the
is

forces

credit.

The

new

supply

neither

purpose

and

so

destructive
nor

Bank

great and

1953.

that is

a

so

small

tion."
■

;

•

as

■;%/':;\

For-most of the postwar period/
aim of monetary policy and '
has been to prevent infla¬

tion.

The

'

with

.

was

so

a

ex-

only by the Offering Circular.

supplies of goods and services
to result in

as

a

strong upward pres¬
on prices, and
a rising cost
living. We had more than" a

of

taste of that when the harness of

price,

wage
and other controls,
temporarily held bdek the

which

war-created
removed

or an

offer

places.

there

was

buy

these

upward
recent

other

there

tutes

for

These

pressures.

experiences

should'

are

it illustrates

when

sound

no

substi¬

intelligent fiscal and
policies and measures.

monetary
And

an

once

that

more

is

running at
peak levels of production and em¬
ployment, creating more money
will

It

economy

not

of

create "

things'to

more

only bid

can

up

the prices

available supplies.
Inflation
to

is

sneak

a

be

putting

pockets

when

thief.

in

fact

It

into

money

it

is

robbing the saver, the pensioner,
the retired workman, the aged—
those

least

selves.

to

in

able

And

to

defend

when

deflation

sets

alike,

most

as

of

of

to

that
us,

that

What

today that seem
little more in¬

a

do

price

of

harm—or

any

of

even

.

a

,

few

end, of

the

course,

is deflation.

two years

almost

ideal

we

have

economic
a

remark¬

degree of economic stability
levels

record

production.

another

round

affairs

of

employment

We have not had
of

cannot

monetary policy
been

such other dealers

may

is circulated only
as

may

be obtained in

any state

in which

from, such of the undersigned and

lawfully offer these securities in

such

state.

inflation.

be

We

ascribed

alone, of

achieved without the

209 S. LaSalle St.




Chicago 4, Illinois

-i

a

served

came

the

from

ground.

Those who are apparently unaware of this his¬
whose minds have become dulled by what has gone on
in the past 20 years seemingly overlook the fact that the country
has gone into two devastating World Wars under "strong leader¬
ship" in the White House.
v
There were considerable misgivings about General Eisen¬
hower's becoming President because of Ids rriilitary background.
A military man in the White House whose life training had been
in issuing orders and having them carried out? was enough to
cause perturbation in many minds.
on

tory

or

,

,

Now, however, we have the picture of that man, used to-power,
leaning over backwards to make the "textbook view of the trinity
of American governmental structure" work, to

influential

element

moods it must

of

the

give him

a

country's leaders.
laugh.

the disgust of an
In his meditative

At the recent dinner of the White House Correspondents Asso¬

ciation, Bob Hope recalled meeting the General in North Africa
during the
"That

war.
was

when

he

was

a

four-star

General

had

and

some

course.

In the first

there would be

a

miracle

-War I,

His

an

awful

mess.

into office with the reputation of being

idolaters, stemming from the organization

administer food relief in Europe after World

had overdone the job of building him

up.

The result

was

consider themselves "miracle

immediately he took office.
them but they had laid a

depression
It may

heard
we

fairly good groundwork by the time the

came.

-

be, though, that times have changed and that

much of

so

became

men," set out to deflate him almost

The depression completed the job for

so

we

have

Europe's "strong" men, of Asia's; it may be that

dependent upon "strong" leadership under Roosevelt,

mone¬

that the critical editors

is

let the

in

The transition to free

I have called it, made

page

4.2

reflecting
are

regardless, inasmuch

are,

as

general mood. Even in this

a

rendering to their country; if it

of their trying to make the

But

they

are

I doubt the service they

a case

crea¬

tion of credit go on unchecked

on

came

that Congress, composed of conflicting personalities and men who

possible had the Fed¬

Continued

man.

which he set up to

have

as

awful outcry in the country and in Congress

Herbert Hoover

case,

markets,

an

and that his Administration would be thrown into

I do not think it would

this period.

place, this writer's opinion is that if he were to try

strong armed leadership, anything smacking of the military,

any

two years.

been

laughter and applauded enthusiasti¬

cally.

to

tary policy and actions of the past

eral Reserve System

CRUTTENREN & CO.

lot

of

Herbert Hoover's troubles in the-one term he
a feeling that he wanted to be too
powerful.
A pretty sound theory which Americans have followed ia
the past was that shrinking violets did not become Presidents;
he had to be a mighty ambitious and self-confident man to think
he should serve in the most powerful position in the world.
Therefore, our Congress watched his every step to keep his feet
not,

are

But I do not believe it would have

announcement

,

it

were

prevention is too high.
seeking to prevent

we

these past

able

to

voices

are

situation—we have had

of

Copies of the Offering Circular

did

The President burst into

old story,

an

there

even

won't

the

ounces

is

yet

have not had anything resembling
a
deflation.
This desirable state

this

one

all

quick to shout-"dictator" at our aggressive Presidents./ We
at Theodore Roosevelt, even at Woodrow Wilson. They
both self-willed and so-ealled strong men.
Believe it or

were

the early thirties.

that just

say

at

share

is

.

Preventing Deflation
of

and

per

successor,

power," the comedian cracked.

had

62^0

.

here

us

something

Malenkov, and - to
I don't think the;
intentionally perverse; it is
partly because the editors can't stand the
peace and quiet along the Potomac after the
Carlisle Baritrm
strong arm methods of Roosevelt and the
attempted but unsuccessful-ones of Truman.
j ;
His "strong leadership" was unavailing but it made a lot of nois&
There was seldom a day when-he was not:bawling out'Stalin,
Congress or a music clitic./ >// V v ;
: >.
Y
Y
Y One editor has expressed the opinion that thie General suffers
from "an oversimplified textbook view of the trinity of American •>
governmental structure."/ He - decries- how the President has
"given in" to Senator Taft and, of course, to McCarthy* though
it is a little difficult for me to see just where he has given in
to the latter on anything; where, as a matter of fact, he has paid
any attention to him at all.
:
A notable example of his "giving in"- to :Senator. Taft, I
suppose, would be the matter of naming-new- members of the :
Joint Chiefs of Staff.
It so happened that Defense Secretary
Wilson also insisted that the be-permitted to have his own team.
But this spectacle of an .influential segment of our press
demanding a strong, personal government while ah the same time
worrying about dictators in other parts of the world is really
something to contemplate.
Up until the time of Roosevelt we

them¬

businessman,, banker, worker,

In

Common Stock

mar¬

parts of the world did not,

that

in the

,(A Delaware Corporation)

un¬

taught us, if the long his¬
of
monetary
excesses
in

tory

flation

CORPORATION

was

Now

or a

•'

i

money,
tide
of

Following
Korea,
sharp resurgence of

a

quite

responsibility.

to

of

the

checked funds inundated the

of

our

flood

and

know from

393,044 Shares

Price

>

cessive in relation to the available

to stifle

buy^ tiny of such Shares.'The offering is made

OIL

ended

war

supply which

money

is

do.

„

The

action

see

which

But these critics
him bark occasionally

can

..

distortions

the

suffer

economy.

very great

offering of these Shares for sale,

BASIN

mone¬

money. •

Senate

like to

also

criticism

brought
much- too little

much

the

of

seriously he

"put Congress in its place."

an

be

y-

being heard
an

the
can

by

too

inflationary

as

growing

flow

large

May 12,1953
not

"strong

on

Stalin's

at

adequate

no

out

would

ideal would be enough to meet ?
the growth needs of the
economy,
without either inflation or' defla-j

most

This is

that

either

much

All

solicitation of an offer to

effective

there is

safeguard ajgainst
and

buy.

trusteeship to which I refer

credit

exercise

to

I doubt

the have

is to see
that, so far as Federal
Reserve policies are a controlling

strong

banking

Martin

Federal

Boston,

is

credit—is

induce
by

cash.

use

cost

him

want

complaints one
main thing

him

is

System, private banking must inaddress

but

-

that the

policy alone.
And this is
say that monetary policy
always been as timely or ef¬
fective
as
it might have
been.

our

Without

independent

»An

distributing
in daily use,

economy.

The

critics

leadership"

to

seems

our

his

the

conclusion

etary

fluencing the volume, availability,

bulwark of

re¬

The

war.

analyze

to

the

to

comes

has

carried out in the exercise of
the System's responsibility for in¬

is

We

not

not

System

the cold

Seeking

years

wars.

of the President's "weak-.

a case

ness" of leadership.

the matter

of

building up of their files for the Congres¬
campaigns next year and hope to be .

able to make

is
Senator McCarthy.
The
critics would like to have the President run

unquestionably

Reserve

perfect,

the

—

Federal Reserve Board is charged

ing

is

sponsibility for creating or ex¬
tinguishing credit. For credit

framework

by

It

is determined by day-to-day needs
of the merchant, the shopper and

the whole, and it

members

supply.

that is of subordinate importance.
The ebb and flow of pocket money

is only

the

truth

of

than

-

in the

cue

a

economic upheavals could
not have been prevented by mon¬

ket

and credit policies.

our

still in

are

a

the interests of the general public
in business, industry, labor, agri¬

they
time, they

same

administrators of

the

are

the

which

to

>elong and, at the

The

value
more

to be increasing from a certain .segment
that General Eisenhower1 "assert"- himself, that he
"strong" leadership. The Democrats/I am told, have taken

press

assume a

sure

as

system.

the

have had two world

com¬

growing and
changing private enterprise econ¬
omy.
But the overriding purpose

a

founded,

was

half.

or

lies

—

the

Reserve

institution,

banks 1 and

12

the

of. the money of

phasized

in

the

as

ington,

Act

I

as

em

Federal

service

a

in

bear

to

20,000 officers and
who work in them, as well

others

Federal

—

of

tors

the framers of

Reserve

the

is

branches,

The genius of

the

that

always

and that the more than 250 direc¬

erence.

the

seems

sultant

well

System

gov¬

ernment

is

mind

mini¬

a

mum

It

of

purposes—protecting
the dollar—because,

of

sional

in

possesses.

United States has been adapted to
the requirements of a free people

of the

By CARLISLE BARGERON
The demand

tem

now

Washington

Ahead

this for

we

curately,

crea¬

charged the
one
of its

is, of course, that in these

evitably lose the initiative it

ac¬

have

failing

the dollar has been cut

Reiterates belief in flexibility of the national economy.
more

the

over

in the four decades since the Sys¬

regional reserve banks, and explains their individual
responsibilities. Decries criticism of Federal Reserve policy
as
ascribing to monetary action an omnipotence that "does not

banking—or

with

fundamental

of the

exist"

critics

Some

System

public and private participation in an institution created to
regulate the money supply, Chairman Martin upholds the plan

Central

trusteeship

Protecting the Value of the Dollar

ingenious blending of

an

as

From

tion and flow of credit.

By YVM. McC. MARTIN, JR.*

Chairman, Board of Governors of the Federal Reserve System

Describing Federal Reserve Act

so

the country would
deserve a new ana

and

faithful

Arid if it is not

then

mood, I think they

they

it is most fortunate that

are

have

we

a

man

hower's temperament in the White House. He doesn't
any

are

making the

terrible.

campaign

of Mr. Eisen¬
seem

to have

lust for power—and that could be because be has already

enjoyed

so

much of at.

•

•;

^

.

:.

,

Volume 177

Number 5222.

The Commercial and Financial Chronicle

.

The

Public Power Is Here to

Stay

fish

problem. looms up in
as it is below

the Nez Perce, site
the

By HON. DOUGLAS McKAY*

month

Salmon

the

of

other hand, if a private utility is
ready and willing to do; a very

be

Though condemning monopoly in any form, whether public
.or private, Secy. McKay defends public
power projects, when
such projects are beyond the-means of local people and are
of a self-liquidating nature. - Upholds
partnership - arrange-

cerned

from facts to

away-

tional

emo-

misunderstanding. That

of

one

riot of

a

just

is

the

that
in

minds

what p

11b 1 i

about

and

:

donein

*

'It

this*

field.

/.

Pe

r

a

p s r
no

;

subject :

when

once

Interior

,

the

the

Committee,

fit to

see

appro-

tremendous

sums

needed for Hells Canyon

or even

Canyon,
there

Joe's Canyon.

or

half

be

much

as

if it

expressed

did

is

are

"**

.order

'

to

Pr°iect
.
j

to

seems

work

Hells

and

built

-

the

at

dam

w

it

it

wnicn

credited, it would be

has

the

■

.

.,

*

by the Army Engineers:
Three storage dams were

before

the

lor irrigation.
:

In

tne

and

war

Afferent opinions and it is

good to see a group such as the
American Public Power Associa^

of-

$357,000,000.* Transmission

lines,

.<•

history

in

and I intend to

niPdffp<;

a?

th^v

rpintp

Department-

'

myJJepartment.

.

shortages.

■

Out

"

■

"

several

tQ

stream for

a n

oth

dams

e r

the Columbia River

on

down.

sysAnother part of the project calls
tern where there is something like. fov the expenditure of an addi-40% of the potential hydroelectric tional $283,000,000 to provide ir-

in the nation, the Federal

power

rigation

benefits

for

project

a

Others

account.

worked

without
Later

an,

Commission.

necessary,

fderal Government

but not
e domination, of'the Fed-eral Government." . ; ^
The President has said, and I
So along with him 100%, that the

the

Legislature

This

is

promotion

/

-

.

idea of grass roots

my

of the things the peO--~
best for-their^own:

pie think

are

communities

rather than thought >
best by1 the planners in
Washing- '
ton

who

to sell

would

design

at the local

us

protests of

some^ people-Who; Dam is

the government should get out

say

Columbia

will

River.

on

soon

the

The

Palisadesi $843,000,000, -■

upper

;

v

v

I strongly believe in the local'
people helping themselves so far;
as
possible, and, if'that help is
beyond * their means, then they

appeal

may

for

the

to

assistance

is

>

entitled

«ui

*

^

conclusion that
been

public

will continue to be
I

---

has

power

people and.

benefit.

a

..

not like monopoly

do

Palisades dams

nnH

+ r.

benefit to the

a

But

-

in

are

well

interest

their

on

during

a_

construction;

n

way

fG

Dam

is

completion;

just

The latter dam is

under

one

transmission

Dalles

The

getting

rabbel°nls
®u the
Pe°Ple» n°t t0,tne Federal Govern-

power

powfer-business. They are that area.
to their thinking and In most the efforts to continue Con- the flood waters storedin
Hells
don't quarrel with their thinking. eressional financial
It1?"8, gressional financial sunoort for Canyon Dam have not vet been
support for; Canyon Dam have not. yet been
But I want to do my own thmk- these
ujcsc
projects;
piujctts.
.
:
started. Th,
ctart^
The
estimated
cost
^
of
^
ing and that has led me to the
McNary and Chief Joseph and these five, projects, not including
the

of

$881,000,000.

way.

dams

of the most

will

.,

or

is

another

these
five
presumably
create

important in the regional develop-

pay

government "monopoly; There
in 'this nation for the

Basin and nothing should be permifted tt> stand in the way of its

t a_.ff

©r

is-fdbM

dsKVelof^ent of private and publie pomr and

side

cannot work side by
partnership of mutual

they

why

inf

a

direction

there is no reason

greater service to a

—

greater number of people.

of

region with

a

familiar—we

which

in

all

generating

at

any

I am

a

power

of

types

...

a.

...

on

Government

project that'

a

agencies

tion

The Bonneville Power Adminis-

tration

assured

no

deliver that What I -did
grid over which it Department

a

much

about

of

application

ronfroiiPf7

Coulee

surplus

that

energy

from time to time

Back in 1935

tributors
some

that

and

Dam,

is produced

privately

and
This

power

to various

transmitted

are

retail

is

dis-

operated

in

instances by publicly owned

utilities and in other instances by

privately owned utilities. It also
transmits

to

power

large industries.
There is

them

and

gether

they

are

use

all

working
goal

one

production

increasing

the

against

Idaho

exist

to

meet

The

yardstick

between

the

of
a

in

public

vantage of the other. The agreebe

fair

to

all

con-

;
the

American

plTi,

Public

Power

Mass., May 14, 1953.




not

very

o'

time

like

budget

is

this

in

when

its

the

in

sons

these

in

a

named

Oregon

to

things

I

was

a

by the Governor oi
Willamette Valley

a

was

the

to

purpose

set

up

a

of that

corn-

control

flood

construction of
several storage dams. The stored

through

presnt

-

of the

Oxbow

Dam

"We

done

insist

power and
available

that

nose

Association,

gineers consider to be

an

excellent

site and below that is Nez Perce,

which

many

engineers contend is

the best site of all

on

the river.

speculation

Prospectus may be obtained
from the undersigned.

Morgan & Co.

31 Nassau St.

New York 5

DIgby 9-3430

this

must

be

the facilities that Ar#
in

out

quickly
plished.

•

Peter

,

ment, not as a boss, not as your
dictator, but as a friendly partner
ready to help, and to get its lohg

Offering price $2.00 per share

as a

vital

very

the- Ideality
and
bringing in the Federal Govern¬

Common Stock

offered

a

through partnership, thrtfligff

"We

of

as

your

that

hold

can

that

Continued

Flock Gas and Oil Corporation, Ltd.

These securities

nat¬

of

first of all getting the Wisdom, te

800,000 Shares

<'

proj¬

industry

,

New Issue

Secretary of the Interior. If the
Federal Power Commission sees
fit to grant the license to the
Idaho Power Company that is up
to that body,
- In my book the decision should
be made by the body legally entitled to make that decision. If
the Idaho Power Company obtains

in

development

from the opposition is
one.

much in-

committee of 60 per-

the

needed

ural resources, the one thing that
we
insist upon that is different

.

terested

member of

are

the

complement that structure, there
is still room on the Snake River
for tremendous public power development.
Below Hells Canyon — and I
speak of that as the site of the
dam recommended by the Bureau
of Reclamation in the previous
Administration — there are other
excellent sites. There is the site
at Mountain Sheep which en-

for

demand

—

to-

agencies and the privately
owned
agencies.
Neither
side
should* be permitted to take admust

developmint

and the other two dams needed to

power

ments

were

advocates

ahead in the devel¬

go

the

Power

of

out there is in the agreements

which

power

construction

their

rapidly

energy.

a

and

'

that

of| its license and proceeds with the

•

greater
electric

number

a

there for

room

toward

public dams

program

Federal

ects

Washington

long before many

present-day

we

and all of the other kinds of

in

™

mittee

At

Hells

it

by various local

owned
utilities.

owned

in

a'

"As

that is produced

ation at Grand

publicly

Deoole

are

opment of multiple purpose dams

rpf*ion

it

-

'?

region

rvA

^

the

survevs

own

tuat

lion.

Company
before
the
Federal
Power Commission,
by the Army Engineers at BonneThat Commission is the authorville Dam, the Bureau of Reclam- ity which grants licenses for water
operates that grid and

transmits power

op-

of the Interior petiof

ca-"

Multiple-Purpose Dams

to withdraw the

intervention

self-liquidating

dams and said:

pose

no

water, 1,340,000 acre-feet, would
state what would you do if you be released later in the year to
were in the Congress? Would you aid in navigation, irrigation and
commit yourselves to - spending stream purification. As a sidesuch thing happened, that kind of money now? On the line power was to be developed,
was

a.

in agreement on this. In a
speech
in Sacramento,
Calif., last October
he referred to the
multiple-pur¬

Wonf

must spend not less than $1.7 bil-

writers

some

;

The

position to an hut t lrnnwiffrom
authority
the
if

n«Ar.iA

realized, the Federal Government

is

•"ie l*e"s Canyon Situation
Now, in the last few days you
heard

of

beyond their local
!

President Eisenhower and I

_

is syPPosed to create are to be Project Committee,

^

Canyon. I note that

own sufficient to
for their cost, it is necessary

that they be built before all the
benefits credited to Hells Canyon
can be realized. Therefore, if all
of the benefits that Hells Canyon

-

„

itself

pacity.

.

n

Secretary of the Inmost terior has given away the last big
grid power site in Hells Canyon. Rest

is moved to the customers.
r

time.

power

into

power

which

have

River

a
in the

i

u,J„

have said the

Northwest-

Pacific

Out in the

Columbia

early (Completion. I stand ready to
battle for funds for that project

have
Fower in the Pacific Northwest

the

I have' opposed
t

benefits of their

ment

is why

r

a,

lines,
While

form. I do not like monopoly
—whether it is private monopoly
any

of

nature and

res0"rce

'

Snake. All-

developing

program

.-

• This is not all. Five of the large
in. dams
downstream t from
Hells
I will back to the ut- Canyon which are to profit from

be

a

level.

1

,

with

agree

*

up the committee under the1
title of the Willamette River Basin

.

....

the

on

expense >

set

power

It is high time that

the State,-and where

$59,000,000.i'he

secretary, and. his travelings

expenses.

,

We still have periodic

;

tn

sweep aside-the emotions of government is engaged in building which is in no
way physically re-' development
of our power re¬
public power, and enter -into the manyV dams.
There is McNary- lated to Hells Canyon but which sources must be approached from
discussions of the problems ahead Dam, there ~is Chief Joseph Dam, |s to be subsidized
by the profits' tbe grass roots, that the people in
with One goal irt sight—get the there is The Dalies Dam,.there is from the
sale of power. Thus the;th<: areas have.a voice. in what is
facts and then act'accordingly. ..the Palisades Dam.,.. *,
total esimated cost of the Hells ^d^g
done with their own rePublic power is here and it-is :
ipjjg
firsf three
are
on
the Canyon
Project
itself
becomes source
and after all, water is a

going fa say; T don't

thi3

of

.

,,

tion

the

for '•

are

*•

.

early

committee

__

campaign

to;

power-.

,

u;-

'

on Public

p0Wer

—1flSlden.t_Ewenhower said

hls

necessary

and

„

the.

estimated-• cost

an

.

been;,

room

iwh

added

o,.\,;

>

.

the:

protection of the lower river
against floods and to hold water-

real

a

'

started.at

the

the

time

President Eisenhower
\

Canyon.

produce

whiVh

101

; house

there is

me

the

make

oeneiits

Douglas McKay

so:
so

committee

Board.,

concern

to; relieve

power

furnish

roots, operating on a'vol-*
untary basis with the Army Engineers.^'The >Jngineers designed
the project and then it was
ap--'

romantic name of Hells Canyon?
What the people want in that area
now

nearing corftsoon

gr~ss

Would

have

not

will

tp authorize the project.

build

.

there

suggested
symbol in the

^--costing $144,000,000 would have, there was a correction of. thisment
?
PTivate .initiative.. tQ bg constructed and generators: correction through a partnership
r:^rthw^^PPdn^^fr'."r.^e' and turbines would have to be
P"Yate enterprise, the locality,
Northwest, is a good illustration

Which

many

priate

public

■

our

u.,

on

Tnat

*

-

h

there -is
other

House

Congress did not

some

a

me.

r

m
,

and

200,000 kilowatts of energy.

have

pure

indefinitely postponed in

was

the

saying:

is being ;

what

Senate and

the

•bill

In the Salem "Capital Journal"
iit i j
oaiem udpnai journal
that day you will find a story in
which Mr. Stevenson is quoted as

c

people

license?

a

power

pleiion

Democratic

a

me

'breakfast with

all

is

power

in

in

-

Adlai

to; just,

as

are

fit to issue

saw

stand

you

a

market.

a

built, there
shortgage and now

' two of the tiams are

if the Power Commis-

way

vSome

aZI Sr. °f Salfmr'nGOVeir* ing ! very incompletfe the facts.LTetPictfure; In
Stevenson of Illinois had
give you some of

of;

people;

many

there

sion

view- *

a,.realistic

Any other, is

ap-

was

was

were

shortage. And, again, may I say, project we had to go to ten county»
courts and obtain
power
program
can
be
agreed
appropriations
; The discussions of Hells Canyon there *s room for both public and
Upon by persons of opposite politi- 'have often become emotional and Pr*vate power, both to serve an each year to pay necessary over¬
cal faith let me say that in my this has led the
heads, such as a salary for a partpublic to receiv- area tbat needs it.

has create d
confusion

show

people who believe that

the

things

to

be

would

there

Before the dams

fallacy. Hells Canyon is a
Congress, fight between public and private
the
program
for Hells
Canyon power. Suppose that canyon wereDam was defeated, once by a vote named : Smith's
\ Canyon,
White proved

ultimate goal cannot be reached.

discussion of public power turns

a

from

Twice

the

or

the problem.

"Canyon "must

Hells

•point

,

too many times when

are

for

'proached

back all of

-There

in the

*

with localities in power projects. ; Concludes
"turning
oar Federal
power systems to private enterprise
is oat of the question."

mtfet

eral Power Act

found

if and when

River, comparable job and meet
the
rigid requirements of the Fed-

good fish stream. However, some
solution must and Tarn sure-will

a

-1

Secretary of the Interior

17

(2201)

business
be
these
on

as

accom¬

great

page

20

The Commercial and Financial Chronicle

18

Thursday, May 21, 1953

...

(2202)

securities
amounting to $70,289.
Earnings, after preferred divi¬
dends,
were
equal to $9.17
a
cline in market value of

Missouri Brevities
Directors of F.
Burkart Manufacturing Company
have voted to liquidate the corpo¬
ration. Liquidation will be on a
of

Board

The

.

assuring

basis

shareholder

every

March' 31,

ended

to 69 cents a common

pared with net of
cents

share, a year

a

class

the

on

Revenues

share, com¬

share

out¬

stock

A

were

earlier.
$1,894,436,

1952 period.

the like

in

$217,233, or 63

payment of $31.50 per share.
Operating ex¬
In the meantime, two dividends of against $1,792,507.
were
$1,043,403, against
SO cents per share will be paid, penses
the first payable June 12 to stock¬ $1,048,394. Income taxes amounted
holders of record June 2, and the to $258,333, against $211,097.
For the 12-month period ended
second payable on or about Sept.
cash

share

preferred dividends, standing, compared with $190 a

after

equal,

$241,565,

was

Insurance

reported
net pre¬
miums written in the first quarter
Corporation

$2,877,777, compared

of 1953 were

earlier. The

with $3,050,987 a year
decrease

reducing

to

due

was

sales

that

writings in unprofitable lines.

of

report

Industries,
the

for

to

earnings

1952

year

from

share

of

in¬

the

year

of

taxes

carry-over

credit

from

largest

The

years.

sales

gain

due

to

part

the

of
for

company's fiscal year,
Nov. 30, 1953.
The F. Burkart Manufacturing
close of the

.

Company has executed a contract

Incorporated,
a
corporation.
This

Textron

with

Island

Rhode

approval

contract is subject to the

Burkart Manufacturing

F,

the

of

meet¬
ing which will be called in the
Company stockholders at a

future.
provides for (1)
The sale of the company's inven¬
very near

contract

The

terly dividend of 50 cents a share,

Southern Railway

City

Kansas

seals,

*

*

*

by

the

of

soon

as

same

liquidation

$31.50 per
above-mentioned

the

and

of the business of the company as
and the employment of

the com¬

In-'

pany's personnel by Textron
corporated.
*

President

Jr.,

*

$

James

McDonnell,-

S.

for

Service

Public

City

Kansas

for the first

$2,719,-" quarter of 1953 amounted to $103,months ended 789, compared with earnings of

nine

the

were

being the first $39,681 a year earlier. Revenues
company's fis¬ were $3,104,748, or $932 less than
cal year 1953, compared with $1,-' a year earlier. Total operating ex¬
782,524 for the first nine months penses of $2,979,114 were down
of the previous fiscal year.
$17,311 from a year before. NonMr. McDonnell pointed out that operating income jumped to $127,the figures reported for the first 272
for
the
quarter, compared
nine months of fiscal .1953 were-' with
$5,098 a year earlier. Income
March

1953,

31,

nine months of the

base$ on unaudited interim finan¬
|,statetnefits. These earnings^

cial

nanced

stocks.
*

*

*

showed

taxes

were

$124,318 against $43,-

*

*

>!<

;'

'

{

■

Empire

District

Electric

Com-

<juarter
ago

compared with a year'
notwithstanding a substantial!
as

curtailment

$135,393,

or

of

mining

in

the

prices rof

and

zinc.

Operating costs were affected by
the
shortage of water due
to
-drought
months

conditions

resulting

in

of

in

recent

reduction
and requir¬

a

734,904.

slightly

underwriting
profit
for
period was $368,177, against
$123,120; investment income was
the

drop

a

hydro generation
ing larger amounts of steam gen¬
eration and purchased power.
I
H»
*
*
Net income of St. Joseph Light
& Power Co. of the three months

gain of $230,641

20-year

change in equities, the lat¬

of

ter

partly reflecting

unearned

premium

a

release of

Securities

v.

Mrs.

—

Class—Mrs.

J.

Correll

&

Knocke.

Qlqb hplds regular rides during

* winter

season—September to May
Claremont Riding Academy,

175 W. 89th

St., New York,
Friday night'at 9:00 P. M.
The

aim

1952

of

the

club,
promulgate

as

(is

period.
known, is to
better
earnings included $91,- riding among adults and at pres¬
equity in the increase in ent some openings in the member¬
unearned premiums, but did not ship are .available to experienced
account
•

unrealized
V

>

Olin Industries

President, eare of Bank Sof
Manhattan, 40 Wall St., New York.
mann,

/

...

Ely Walker Dry Goods Com. & Pfds.

de— riders. Contact Gerhard H. Struck¬

•

*

;

A. A.

•/

to

}

National Oats

I

Miss. Valley Gas
Texas

i

.

.

.

•

Murray Opens

a

The

_

*

ties

business from

offices

at

117

Michigan Avenue.

1

75 Pearl Street

SCHERCIi, RICHTER COMPANY
Member Midwest Stock Exchange

SL 456

7-5291

Garfield 0225
St.

Louis

V




2,

Mo.

HARTFORD, CONN.

HARTFORD PHONE

Landreth Building

Teletype

lists

current, quotations

two

of

144

tables—one

shillings and

the

the

ing

decimal

con¬

devoted

and

pence

L. D. 123

BELL

NEW YORK PHONE
HAnover 2-7922

TELETYPE

HF

197

of

countries

one

to

show¬

equivalents

of

fractions.

common

Copies

contract

available

are

the

at

Foreign

Department, 55
Broad Street, New York 15, N. Y.

for construc¬

building,., to be used

Neuberger & Berman

mill

as. a

To Admit Partners

produce tubing, will be 800 feet
long and 160 feeUwift&^j

On June;l George P.

'

*

LY.v-

and
General

Dynamics

Corporation

which

fered
in

in

about

25%

United

will be

will

Canada and

the

the

States.

used to retire

obtained

in

be

connection

of¬

New York

balance

have

Vultee

with

Aircraft

*

.

will

be

in Neu¬

Exchange.

associated

Both

with

the

time.

some

the

J. Walter Bell in

stock

J.

Walter

conducting

*

authorized

Greenwich Gas Company to

Bell

Hospital

who

has

a

icing dealers and banks

country had

The

March

issue

been

bond brokerage busi¬
for the past fifty years serv¬

ness

The Connecticut Pubilc Utilities

has

Davis, Jr.,' '

Wormser

Stock

been

firm for

from Atlas Corporation.
Hi

Z.

partnership

loans

purchase of 400,000 shares of Con¬
solidated

to

berger & Berman, 160 Broadway,
New York City, members of the

Proceeds

bank

Samuel

admitted

has registered for public sale 250,000 shares of new common stock,

2,

the

over

paralytic stroke

a

has

and

been

on

confined

to St. Vincent's

Hospital, New York
$200,000 of First Mortgage Bonds,
due June 1, 1971, and bearing an City until the last few days. The
stroke was not a heavy one but
interest
rate
of
not
to
exceed
has put Mr. Bell out of business
4 Vz %; and also common stock to
for

the extent of $483,000 at the book
value or $6.40 a share., whichever
is

higher.

placed

The

bonds

will

privately while the

ers

then

proceeds

are

to

to

the

be

public.
used

to

Net

be

fore

be

any

will be offered to stockhold¬
and

the

will

com¬

he

past

two

can

months

months

several

and

more

business

resume

bank loans in the amount of $500,000 and to finance the estimated

on

scale whatever.

His
cally

business

has

a one man

been

practi¬

affair and he has

been unable
on

any

of

to

supply quotations

the

bonds

usually

handled by him.

CHAS. W. SCRANTON & CO.
Members New York Stock

CONNECTICUT

Exchange

New Haven

SECURITIES

it

be¬

pay

Primary Markets in

Quoted

25.

now

SECURITIES

BRAINARD, JUDD & CO.

Bell

par¬

\

Wagner Electric
—

The

companies

CONNECTICUT

Natural Gas & Oil

Sold

nuclear

a

power.

•

Tenn. Production

—

of

currencies

tains

im¬

and

construction program for the bal¬

Scruggs-Vandervoort-Barney Com. & Pfd.

Bought

number

to

mon

DETROIT, Mich. — Arthur A.
Murray is engaging in a securi¬

Eastern Transmission
-

produce

throughout the world. It also

t

First National Bank

;

developing

the

plant in Bridgeport
total cost of about $5,000,000.
a

Commission

of

into

at

every

The 1953

>

a

in

Atomic

new

of

Struckmann.

F.

—at

-

.

H.

reported consolidated net income

$331,689 for the first quarter,

used

were

expansion

tion of

Edison

the

to

folder

Bridgeport Brass Company has

At the recent end of the indoor

R

Western Fire Insurance company,

compared with $77,000 in the like,

to

Part

in connection with

long-range

awarded

Announce Winners

,

and Surety and

bp used

with

Trust Company
distributing a new edition dated
May 1, 1953 of its "Foreign Ex¬
change Quotations" folder.
The

liquidate the $7,000,000 short-term

provement plan.

Wall SI. Riders

Company and its subsidiaries, the
Western Casualty

proceeds

study
of

bank's

G.

*

*

Insurance

sold

company

serial notes.

4%

with. Dow

Detroit

Manufacturers

bank notes and the remainder will

reserve.

Premiums written for the quar¬
ter
were
$3,833,381,
compared
with $4,021,344.

the

joined

and

Com¬

is

insurance company $10,000,000

a

Light

companies

Foreign Exchange
Quotations Compiled

months

recent

of

in the

12

ticipating in the project is

billings, with a
resulting increase in backlog. On
the

have

joint

total

above

31,

Electric

reactor

per

than

offset by

electronic

H:

bilities

share

$1.14

March

Pair

take

in

orders

*

among

Chemical

report stated that in¬

been

is

which

rose

per

an

Horsemanship
45 cents a share on a Mrs. Fred Kocke.

*

689

margins

earnings
from $1
to

The

specialized

earlier

a

and

coming
have

year

same as

increased

share.

of

Hartford
pany

sales for the period were approxi¬

profit

recently acquired Gen¬

*

that

mately the

of shares
out¬
Advanced Horsemanship —Ger¬
earlier. Revenues hard H. Struckmann.
Bareback Horsemanship — Mrs.
$1,372,163, against $1,275,543.

Western

of

shows

$659,127, compared with an in¬
of $636,417 a year earlier.
Surplus to policyholders was $10,-

that

•

Com¬

Energy Commission of the possi¬

of

but

i' •'.

'

equipment.

of

report

crease

a year

operations

lead

Company

*

Hardware

&

Electrosonics,

ufacture

*

facturing

number

standing

resulting from the drastic decline

*

quarterly

the three months ended March 31

538, equal to 50 cents a share on phies:
the common stock, compared with:
Intermediate

were

*

first

of

as

orders

Inc., which is
engaged in development and man¬

1953 for The Yale & Towne Manu¬

,

Joplin, Mo., increased op-1
smaller
crating revenues 7% in the first5
pany,

eral

in

surplus, after dividends paid, for

riding season of the Wall Street
were? afterdeducting
$876,686
Riding Club Inc. Competition the
amortization on emergency facil¬
Missouri Utilities Company had following were winners of first
ities in addition to normal depre-;
first quarter net income of $157,-; ribbons with accompanying tro¬
ciation.

basis

that

unfilled
H«

Lock

has

pany

a

The

in

850.

!

long-term

a

Corpo¬

increase

net

a

on

The parent

use.

1953
#

Segal

•

1954.

Employers' Reinsurance
ration

•

make the site avail¬

31,

«•.

ties of $119,882, but this was more

*

*

*

has announced that the company's., Company's net income

earnings after taxes

•

Corporation

$1,460,000,000.

were

re¬

in the market value of its securi¬

common.

Corporation of St. Louis, Missouri,

€27

system

was

year

•

■

$10,20-3,606, equal
after
preferred
dividends,
to $260,251, against $251,099.
The company reported
$18.36 a share on the outstanding
last

Aircraft

McDonnell

the

of

'

March

for

air conditioning,

Aircraft

announced

company

'

The

1952," Mr. Deramus said.
Net
income
for
the

division of Textron Incorporated

a

the

the
two roads should show earnings
about the same as reported for

operation

The continued

(2)

automotive,

United

able for industrial

of frigeration, and shoe industries.

holders

to

.

"By the end of the year
consolidated
statement
of

paid,

been

have

dividends

cash

expected in the

be

months ahead.

realize

to

after

share

could

gains

possible to its shareholders in

as

15

J

Sikorsky Aircraft Division

necessary to

its wholly-owned
'
*♦
' H=
:Ht '
The March 31 statement showed
subsidiary, Louisiana & Arkansas
The
Connecticut
Power
Com¬
Railway,
had
an
exceptionally reserves for claims and losses of
good first four months' opera¬ $6,958,197,
against
$6,774,839 a pany has extended its $5,000,000
tions, with revenues rising 8% year earlier. Reserve for unearned short-term note, placed in 1952,
and net earnings
up 22%
over premiums were $6,423,278, against from Dec. 31, 1953 to April 1, 1954
and
has obtained
an
additional
the like 1952 period.
$6,250,884. Surplus was $3,728,907,
The marked improvement was
compared with $3,772,187. Total $4,000,000, also payable April 1,
disclosed
by
W.
N. Deramus, admitted assets were $19,521,000. 1954, from various banks. Both
President, at the annual stock¬ including $978,917 in cash, $15,- loans, bearing interest at the rate
holders' meeting in Kansas City,
417,587 in bonds and $1,302,652 in of 3%%, are expected to be fi¬
and

Company

tories, land, buildings, machinery,
May 12.
equipment and other fixed and
Mr.
Deramus,
however,
told
operating assets, liquidation of its shareholders
that
the 4-month
receivables and the reduction of
showing was better than had been
all of its assets to cash and the
expected and a leveling off of the

distribution

payable May
record May 5.

weatherproofing

and

'

•

*

Connecticut, as a possible site for
a
large new plant to produce
helicopters. Rezoning will be

previous

accounted

was

*

has acquired options on 200 acres
in a residential zone in
Milford,

stock had
1, 1953.
It is contemplated that
Net income for the period was the Rubatex Division which sup¬
the
liquidation be substantially earnings of $2.27 a share, against $30,146', compared with $129,059.
plies fabricated parts, gaskets,
accomplished
shortly
after the $2.11 a share a year earlier.
Directors voted the usual quar¬
31, the common

March

amount

V
*

not subject to

were

early part

estimated

$118,000.
The

$1.66

the

and

the

to

$13,-

were

income

Federal

1953

1954

of

compared to 69 cents. Net profits
for

of

ance

shows

before and that

year

per

Great

Inc.,

$20,345,000

226,000 the

and

Surety

Central

American

creased

%

*

*

Connecticut Brevities
annual

The

New York

—

REctor 2-9377

Hartford 7-2669

Teletype NH 194

(2203)

Warren S. Yates
Joins Merrill
* ~

-

a

n

o; 111.

_

-

Lynch
Warren
-

Many of

my

rents

are decontrolled in
certaip
where they are still under

eas

-

lifted in

mtrol, rent prices, lifce the prices
of coffee, will
skyrocket.
I

jdqn't-» believe
this will hap-;
pen: today.

j

Here's

yi:-*'

$

.

Ever

,,

.

why;|

1940,

since
fewer

}i
; f

and

fewer,

;.:

rental

■

units

-have

been

constructed.

locked inside

Fifty-five

per
of all

cent

housing

units

in

exis-

tence

are

now

Roger w. Eabton
•

;

owner

-

The

occu-

ied, compared with a 45% home
wnership just before World War
I.

This trend has increased

nore

sharply

in

the

last

Ms
.

even
\.

1

-

•;

>

Mil

m

.,

fact that the building market since
1946 has been art
ownership market. The desire for"

been

•

by

su.ch factors
the highr income levels of
:

•••

S

i

the

k%:

double" and have a home of one's
own after the war,', and
(4) the
threat of atomic warfare and in¬

decentralization, causing
living./ - — - —

employment

rel,

high

because

you

which

war, ;w,e.

the

up. of. independent family
units, remained far ahead of the

building / rate ; from
1930 to/.1950,-i'-with-"iiew housing
/
;aEts^';a^odi:. four; apd..] one-halfv;[
lillion behind family s.tarts;
How- i';}
ver, since 1946,.new housing units
!

.

.

an

more new

*y

zzr",i

3

•'''
*

homes

This

when

;

P.

-

ease

the

■

I

:

+

\
•

^

/

0;

Rental Costs and Decontrol

While the earnings of most in¬
dustrial workers have risen over
200%
since
1935-39,
rents
for
moderate-income
families
have

Sctoley'B
natchod

only 40% during these

years.
On the other hand, prices,
of Tnany ,other commodities -and•

about

^^j^l&felMy^aiddle-class




ren- "

'of

-

.,

swb

best-tasting
whiles in ages

..

'

I

a

>

story of

♦

,r

f
—frc^b off the
prces!

fascinating

•

•

'

whiskey

things jo«
should know-

buying

Schenley Distillers, permit, write
O. Box
Inc., Dept bk

'

|g|

-eryices '.have' increased

drop

*

t

,

■%/%

housing situation.

increased

,

of
en¬

331, New
York 46, N.
Y.

/

,

employment), could

/

the

ay

utmost

every
.

w

s

glass.

wliiskcy. For your
copy \yhcrc
free
state laws
to

mand for

less

controls

©1953

making...

factor,. plus the return r tcr
normalcy (lessened de- .*
goods, lower wages,, and
.

complete

your

you the

in

'

w

Tells ,thc

.

depression babies "who are now {
approaching ; marriageableage:.
business

J

in

~

could; soon: taper 'off because of
the. low birthrate that prevailed

from 1930 to L938, It is these few

*-

h"1*

''"""7

The„ demand; for / new

to

Schenley

SchenleyV

every drink.
>
t

housing-starts tharrnew
-

'

...

book*

later,

is

joyment

me million per year,-and,-for theast three years, There bave been

families.;---',-

.Tbaty

bringing

raterot'^

average

guards

whiskey

residential

at

4

quality

kies.

setting

been

■

a

whis¬
Guards their
goodness
from the
time the
grain is
grown
till, years

peak

of
the
employment .and the
building boom. New household
formations, due to marriages and

lave

ever

Schenley bar¬
only the finest

about the

housing starts.. Barring
reached

whiskey

a

"J

network of

have

J,

holds

■

wages go hand-in-hand with new

may
both

strict

Schenley quality:
finest

It would
take
tell

of

to

goes in.

^

and-

series

distillate

comes out
of

Housing Demands and the
Full

key

only the

Mi
M

shift to suburban

Business Cycle

master

laboratory.

For this

7

mm
mm

rnmm

a

tests in
the

•

(2)
marriages
due'to war, (3) the desire to "un-

dustrial

a

will cheek
its. proof
lie will
follow if

through

mm

;

-

the; war. and postwar; years,
the accelerated - rate of

a

Then

minutely,

democracy." -It"t- has

stimulated

(1)

as

in

yeast.

Schenley

distiller

.

ownership" is •-

inherent

was

grain

enjoyable product.
Now the
whiskey is ready
to
be
barreled for
But
aging.
first, a

"

-

it

of

turned it
into

useful,

-

-

mixture

water and

distilling

Despite the fact that new rentals
have decreased sharply, I believe
the supply will be sufficient to
satisfy
demand"--and,- therefore,
keep rental prices down. My reasonS for this'belief come from the

Previously,

bubbling

and

„

Units!/-..".•

become

whiskey.
a

/ears, so that in 1951-52 only 12%;;
of the new housing starts, were

rental

sparkling liquid

into the
hell-shaped
gadget has
just

*.

three

clear,

flowing

"•

v

'

'

,

'

;

~

19

■

S.

The Commercial and Financial Chronicle... Thursday, May 21, 1953

(2204)
nomic

Requires
Both Caution and Confidence

Business Ontlook

and

about

the

statistical
current

knowledge

strengths

or

I think that this confidence should
act

limit

to

weaknesses of the various sectors

business if

of

trend

our

is another factor

economy

contributing toward business
fidence. In

con¬

real sense, therefore,

a

in

extreme

reactions

of

temporary downward

a

business

velops in the

conditions

closing

de¬

months

of

1953.

Continued

Gainsbrugh evaluates elements of strength and weakness
in current economy, and finds that many of the factors of
weakness in situation are still of a contingent nature. Holds
toward

from

11

page

currently makes

.onomy

•spectable case for caution about
ie
year-end
i t i

o s

of

o n

usiness.
e same

cline, part of the shock would be
absorbed by a decline in the sav¬

A t

time,

of

any

f

ature.

ply

in

gen-

the abstract

in

fiscal

enable

its

to work our

us

is

of

as

example)

for

defense.

one

the bulk of

being frictional, that Is mov-

freely from one job to another,
ith only limited time lost beg

jobs.

its

in

could
prices
durables, par¬

Only

two

that

While

Some

cruits to

to

mployment

the

labor

force

schools

conditions

ged about three
civilian

labor

would
above

total

acturing

is

also

ble

thus

elbow

5%
is

iarket

for

distinct

in

loyment,
^embers

of the

for public

by

state

Moreover, there
elements
'

don

which

ilation
.

in

of

are

the

will

number

a

business
resist

the

downturn

a

sitcu-

into

a

as

works construc¬

local

admittedly

els of current
csonal

saving

mally
The

is.

lid
.s
-

c

high

high

consumption, the
rate

by

is

still

prewar

purchasing

ab-

stand-

power

of

asset

holdings of individalso high.
Even granting

is

the credit

market

may

govern¬

of the great

one

for

which

the

yet in sight.

policy which would

en¬

the preservation and

ex¬

of

local

that

tained;

public

local

sary

stations ' to properly
serve
their area, to the extent
they found it possible; and that
generating

should

there

restrictions

be

not

limitations

and

in

the

«r ican

contract

their

the

with

in

ness

tend

mutual

of

an

New

York

Statistical

City, May

15,

Chapter

of the
Association.
New

1953.




the

prevent

problem.

Start

Must

from

business.

of what

might have

we

done, had not a Federal pattern
been already set.
We must start
at the

point of conditions

are.

If

as

they

unfortunate

find

we

trends, then it is incumbent upon
establish

to

us

will

lead

the

is

trends

new

what

in

us

we

that

believe

direction.

right

We have, by

Department

of

all

in the form

must

come

eral

the

of

them, the program

project.

It

is

of

Fed¬

a

the

beyond

of
private
enterprise,
private enterprise can¬

because

with

whole
and

They are fre¬
the capacity of
local government, be¬
the large geographical

of

been

inheritance, in the
the
Interior,
a

ville

find

We

Power

that

the Bonne¬

Administration,

the

of Reclamation, the
Southeast Power Administration
Bureau

and

Southwest

the

have

Power

of

in

all

been

Ad¬
ex¬

need for
such
as
reclamation, municipal water and

taking

what

away

we

consumptive

purposes,

other

that

in

uses

When

that

category.

the

laboratories

in

since

the

Secondly, the confi¬

war.

dence which business places in the

Washington

new

provides

new

Administration

incentive

for

ning and growing under
environment

enterprise.
programs

downturns,

both

an

Capital
are

be better substained

greater

eco¬

than

of

to

in¬

likely to

because

prevalence

plan¬

favorable

vestment

in

of

past
the

long-term

capital budgeting and because of
demonstrations

market

potentials

of

longer-run

which

that

have

We

the

best

and

of water is

should

the

not

We

proposition

most

our

efficient

ultimate goal.

deviate

in

any

from

Congress through
established rules
and
regulations for us.
One of
these
rules
is
the
preference

be disposed of.
the
years
has

clause

which

gives

keting agencies
this

of

clause
has, been out

some

instances

order

when

it

been

has

used

compel changes in the organi¬
that

zations

distribute

at

power

local communities.

retail in

The

big multiple-purpose
dams you will find on the large
river
systems
comprising flood
control,
navigation,
municipal
water
requirements
for
health
and sanitation, irrigation,
bene¬
fish

and

wildlife

hydroelectric
benefits

a

population and related

meas¬

over

There

contributed
The

by

our

profes¬

improved state of

eco¬

are

there

is

them

so

is

no

means

")
for

G.

of North

Fred

is

former

Gov¬
Con¬

Dakota and

State, who
his job like a duck

gressman

has

to

that

from

taken

there

the

Aandahl,

ernor

Secretary

Power

water.

to

And
at

Solicitor,

for

as

have

I

right hand an old friend
of
yours,
Clarence
A.
Davis,
whose reputation in the field of
public power is known to all of
my

you.

■

This is the team that will
their

the

enormous

the

am

problems

judgment to be
of all the

their

show

the

in

I

•

Department of
sure that time

the

confront

that

the Interior.

t

trying

toward

efforts

best

solve

to

•

give

interests

best

We will go forward with

program

in

that is economically
partnership
interested in this

working

a

all others

with

with

keeping

in

not

the

and

great field of resource develop¬
ment. We have only begun things
Federal power which over the years the country
should be brought into communi¬ will achieve.
ties and distributed by whatever
the

and purposes

intention

there and

are

of the

prevail in the com¬

ready to buy power,
so recognized and

all confer
wide area.
of them that
of

charging

directly to the people bene¬

Ralph Henderson to Be
BaGhe Go. Partner

they should be

TORONTO, Ont., Canada —
given the power they require.
Ralph G. Henderson will become
power
should be sold on
a
partner in Bache & Co., mem¬
the basis of long-term contracts,
bers of the New York Stock Ex¬

be

That

the

and"\by

maining
the

should

customers

also

on

in

the

other

to

area,

token the re¬
change
be made

same

power

available

all

to

of

basis

extend transmission

the

over

the purpose

that

customers

sonable
the

beyond

are

of

rea¬

that

power.

Once

by
Act.

changed

be

can

administration

the

of

depart

we

ception
of
a
monopoly, tied

the

of

that
has

disturbing
Federal

the

brought

to

consequences

system
States and

power

our

communities.

back

&

ris

of

our

Fed¬

systems to private
enterprise, in my judgment, is
out of the question.
It would be
a

power

grave

policy

error

to

office, 36
formerly

Collier, Nor-

Quinlan.

Boston Inv. Club to

Hold

support

Meeting

BOSTON, Mass.—The next din¬
ner

meeting of the Boston Invest¬
Club will be held at the

ment

Boston

Yacht

Club

on

Monday,

25th at 5 p.m. Principal
speaker will be Arnold Bernhard,

May

President

the

of

vestment Survey.

be

With
(Special

Value

Line

In¬

His subject will

Prices."

"Stock

Semple-Jacobs

to The

Financial Chronicle)

Mo.—Jack A. Cranthe staff of
joined

ST. LOUIS,
swick

has

Semple-Jacobs
dreth

all

was

resident manager for

&

Co., Inc., Lan-

Building.

Stix Adds to Staff

Question"

Turning

He

Street.

Melinda

A Reversal Is "Out of the

eral

headquarters

Toronto

firm's

the

at

for

distance from
These are

marketing

source

the

as

derson will make his

lines

solely

country,

other
leading ex¬
of June 1st. Mr. Hen¬

and

changes,

of serving preference

and

very

many

and

sound

power,

of

Assistant

As
Water

people.

management
at
the
local
level.
I am convinced that this
practice

capacity,

power

and

from the con¬
Federal
power
into local public
power which can later easily be
taken over by the Federal whole¬
sale power system, we should be
on
the path of eliminating many

to

our

preference clause has been
an
implement for the
Federal
control
of
power
rates
as

flowing wastefully into the sea
during most of the seasons, and
during the flood season destroy¬
ing millions of dollars worth of
property.
To conserve and gain
the best use of that water, we
must
harness
it and
put it to

fits

the State, munici¬

of

will

The

used

matters

work.

the

management

and

development of the uses of elec-'

the. preference

of

to

of

classification, how¬
poses many difficult prob¬
For instance, the adminis¬

priority

lems.

of

mar¬

administration

The

fication.

certain

priority classi¬

a

achieving this goal.
As we look at our rivers, or at
least most of them, we see water

way

encourage

extent possible

life. Our primary pur¬
will be the orderly and
systematic
development of our
national resources,
the increase

power

Federal

tion

Adminis¬

know that water is
to

will

We

utmost

tricity.

is generated
Government, the
question arises as to how it should

by

are

all

of
are

as

pose

our

by the con¬

present

greatest natural resource.
dedicated

the

to

plan

maximum

preference clause.
This is one
that is certainly not in keeping
with
sound
business
judgment.
It has been the effort and ambi¬

We

projects

economically feasible and fall in
the proper category of Federal
as I have described them

the

the

to

that

all

budget

projects,

generation of hydroelectric power,
far as that can be done, without

source

so

equally long-term contracts.
There is another aspect of the

the

these

of

palities, public agencies and pri¬
area
involved.
vate enterprise.
I am neither for
It should be our objective in nor against either private or pub¬
these multiple-purpose reservior lic power. I believe both of them
projects to utilize this water re¬ have their place in the American

panded beyond the bounds which
were originally set as
their goal;
measured

such

of facilities by

and

cause

national

the

that

State

munity at the time the power is
available. If preference customers

con¬

developing

private
have no

permit with construction

construction

retail systems

States.

limits
will

benefits.
quently beyond

conceived, I suspect, with one idea
in
mind, that of a completely
federalized
electric
generating
system, a Government monopoly
in
large
areas
of
the
United

use

capital goods products

have

Korean

series

new

I

me,

preference clause.

tration.

Along

to

over

for

As

and' heretofore.

all these indirect

assume

in
came

it wa§ not possible
approach
these problems in
power,

system its traditional flexi¬

sumer

sion.

achieve

to

are

tration

Are

When this Administration

into

of

a

ures

we

ever,

Conditions

With

As They

as

direct

under the driving force of compe¬
tition, should bring into the mar¬

the

and

control

As Secretary of the Interior, I
appreciate the offer of coopera¬
tion toward these ends in solving

is,

of

this, the ex¬
panded supply of key materials,

ket

centralize

to

Washington

ception

bility.
;

Government

Federal

emerged from the several studies

of

power

should construct neces¬
transmission lines and steam

ministration

Removal

controls has restored

have

address by Dr. Gainsbefore the Annual Business Meet-

lummary

fh

main¬

is

control

agencies

to the busi¬

side.

assets

business

Despite

.1)

about

pace

Finally, there are two in¬
tangibles to be entered on the

nomic

ession.

a

and

backlogs

business
1 ements of Strength in Situation

at

(5)

that

labor force.

run

industry

will fall off materially. De¬

end is not

labor

j.despread injury to the regular

state¬

ahead of last year, and there
indication as yet that this

postwar

one

a full,
hyper-full, emwithout connoting

construction

ments remains

The

adjustment ,to

recent

no

tion

5%

from

defense

projects

power

Stay

Federal power structure that was

mand

normal

the

for

1955, according to

Wilson's

The

pace

manu-

a

several

prospective

billion

continues to

leaves., consider-

room

fiscal

(4)

return to

a

normal work week and
float

in

continue
the

ment.

aver-

currently

ombined influence of

bor

$40

Secretary

greater than pre-Korea. The

our

of

alone

full

force.

ngth of the work week in

mutual security, merchant

billions

re-

or

may

(including atomic

security

marine)

ex-de¬

million,

trend

within

energy,

under

under

declining

industries, its relatively high

tional

Unemployment in the fav-

the

a

adopt

demand of

help to keep these fluc¬
relatively narrow
limits. Expenditures for total na¬

temporary

rable labor market of 1950

f

its

tuations

consistent

more

of

the

or

nse.

one

pansion of
local public power
agencies to the end that the max¬

will remain

level will

returning to their household

uties

At that time

Department of the Interior should

to

labor

a

stimulus of defense would

e

re,

fully in accord with

courage

the light

labor force, asming that defense requirements

iminish.

that the

note

resolutions stated that the.

precipitate fluctuations in nonde-

present

our

to

that statement.
of your

fense

one-half-three

and

illion would be
ith

is

There

more.

or

agreement

of

oat

of the

sixth

a

unemployed in
been without jobs for

months

eneral

last year are

this

of market

source

a

reported

pril had
ree

pleased

am

If

benefits

not

declining / relative im¬
portance for several more years.

and one-half

umber

I

perhaps

currently

We

unemployed,

only about

een

the

over

example,
wake lower

for

taxes,

bring

power
all the

to

of

or

capacity

;v;V

management of their own affairs.

than
prevailing in the first three

illion

C."

D.

capital goods and consumer goods
markets. Relief from excess-prof¬

opulation,

ave

of

year,

ay toward sustainable full emfor some consumer
better balanced ticularly cars.
loyment with
rice-exchange relationships (be(3) Defense itself
een
the
farm
and
nonfarm

ose

Washington,

faraway

which

ees in the months ahead there-

ears

in

higher than that

next

even

in

may

desk

a

under boom conpeacetime. Readjust¬

revailing

re

haired

direction

they should act
in the direction of supporting both

also somewhat

itions

is

trend

such reductions are impossible to
measure

length of the work week

d the

business

the

downward. While consequences

again expanded our labor

beyond normal dimensions,

rces

if

ularly
of defense,

Under the influence
have

partic¬

cline in Federal spending,

tivity.
e

year.

reductions would accompany a de¬

Gainsbrugh

R.

M.

business

ral

readjustment

any

of the

end

the

(2) The possibility cannot be
entirely dismissed that some tax

reces-

or

On

the

imum

antial downirn

in

contraction
at

sub-

or

expansion in the past

an

months, and they may rea¬

sonably look forward to a lesser

signif-

a

of

less

nine

yet

ecessarily
•ant

goods have enjoyed

Makers of soft

They

not

0

to

durables.

in

concentrated

be

still

are

is likely

spending

in

decline

contingent

a

them exclusively un¬
of some long¬
bureaucrat sitting behind

putting

by
der

fited

spending. policies adopted by your organi¬
zation in your Seattle Convention public
might be added that the

it

And

of weak-

ess

far

are

ing rate, rather than in

the

nerging facrs

by the
retail trade in

year,

general need not subside dramat¬
ically. There is a strong likeli¬
hood that if income in other than
consumer industries were to de-,

very

a

better planned,
developed and operated with the

conspicuously

the

of

end

the

in

weakness

and

weakened

of elements of

evaluation

This

rength

power,
available

be

of
intention
being a party to
directly taxing for turning any of these federally
their
support.
Their magnitude built projects to private opera¬
full cooperation and wisdom of is such
that they do
'
not lend tions.
the local authorities than they are themselves to private enterprise.
We
will
continue
within
the

projects

business confidence.

more

that

hydroelectric
should

our

sure,
agree
that
Government produces

the

when

All

program.

am

people.' Whatever we may say
the efficiency of private
in the distribution of
electric energy, neither this Ad¬
ministration nor any other should
turn
our
federally
produced

Public Power Is Here to

factor leading

statistical and economic knowledge is a

of

I

enterprise

Dr.

current

type

about

GAINSBRUGII*
National Industrial Conference Board

By MARTIN R.
Chief Economist,

that

people,

(Special

ST.

leine

to The Financial Chronicle)

LOUIS,
M.

Mo.—Mrs.

DeKins

is

with

Made¬
Stix

&

Co., 509 Olive Street, members of
the Midwest Stock Exchange.

Number 5222... The Commercial and Financial Chronicle

Volume 177

(2205)

John

F.

mitted
L.

will

Sammon

to

be

Gas & Elec. Go. Bonds

ad¬

partnership in William

Burton

&

June

issue

on

has

Net

the

associated

R

t

hschild,
prior

o

con¬

ducted

York

20)

Pacific

by

won

sale

the

on

group

May

19

proceeds

to

will

from
be

retire

to

funds

to

short-term

Electric

Co.

is

j. f.

in

the

amount

1,459,325

utes

and

sells

water

in

17

cities

towns,

at

The

company's
electric
transmission
system
is
interconnected and supplies dis¬

the

tribution

be

46

bank

systems

counties

of

extending

Frank Knowlton & Co,

is

85

dis¬

unincorpo¬

and.'a

in

most

number

of which

counted

enues,
sales

Revenues from sales of
energy
for

last

65.5%

of

(Special

year

ac¬

gross

rev¬

while

income from
gas
amounted to 34% of over¬

SAN

Purcell
with

City.

in

bot

Stewart,
York and

son,

ROME,

Vernelle T.
Smith has opened offices to con¬
duct

a

N.

Y.

—

securities business.

New

Stuart & Co. Inc. and
yesterday
(May
20)
$8,000,000
Metropolitan
Edison Co. first mortgage bonds,

1, 1983, at
interest.

The group won award of the issue
at competitive sale on May 18 on

its

bid

V Net
the

of

100.6699%.

proceeds

bonds,

the sale

from

together

with

of

funds

received from the
taneous

shares

sale
of

prior or simul¬
32,500 additional

of

stock

common

the

to

company's parent, General Public
Utilities. Corp.,
loans
proposed

from

and

be

to

bank

effected

during 1953, will be used by the
company to reimburse its treas¬
for expenditures made

ury

prior
1, 1953 for property addi¬

to Jan.

tions.

The balance will be applied
the cost of the construction

to

subsequent

program

to

31,

Dec.

1952, to the repayment of shortterm

bank

loans,

imbursement

expenditures

to the re¬
treasury for
subsequent to Dec.
of

and

the

31, 1952.
bonds

The

;

will

the option

at

from

redeemable

be

the

redemption

regular

ing

of

104.34%

at

company

prices
to

rang¬

plus

par,

accrued interest.

Metropolitan

Edison

Co.

oper¬

ates wholly within the Common¬
wealth of
Pennsylvania and is

engaged

principally in the busi¬
generating, distributing

of

ness

selling

and

electric energy.
It
sells steam for

It
takes

also produces and

Giant

a

heating.

Territory served by the
company
comprises an area of
about 3,274 square miles with a

to

catch

population of approximately 700,000. Total operating revenues for
1952

aggregated $35,042,567; gross
was
$7,905,395 and net

income

income

was

$6,637,686.

(Special

to The Financial

—

contest between Men

tenmaier, and James M. Sorenson
affiliated

Not

Al¬

fred H. Raubitschek, Leon A. Retbecome

and win.

popular children's stories for centuries. And that's why we think
the oil business is the most thrilling business in the world. It's a

Chronicle)

SAN FRANCISCO, Calif.

have

It's alwaysThat's why Jack the little guy challenge a bigthe list
exciting to watch a Giant Killer has topped guy—
of

Three With Da vies Co.

with

San

and

Francisco

Exchanges.

SAN

to

The

FRANCISCO,

Calif.

Securities
Corporation,
Montgomery Street.

—

235

men

of tremendous initiative and

giant,

civilize him, and put him to work.

equipped with such

men.

Geologists who,

down the giant in his native
men who risk all to bring him out alive. Refinery

great personal hardship, track

who domesticate and train him. Research men,
utilize his strength.
mammoth muscles of petroleum have taken over some of
men,

The

mankind's hardest, most back-breaking
credit

is due the

Chronicle)

jobs. We think a lot of

great-hearted Cities Service "Jacks" who've

devoted their lives to

Two With A. M. Kidder
(Special to The Financial

modern Colossus.

who think of new ways to

Carol J. Ginnever is with Somer¬
set

a

It takes

Cities Service is well
at

operations

Chronicle)

Financial

and

Petroleum, drag him from his lair,

haunts. Production

With Somerset Sees.
(Special

any men.

daring—giants in their own right—to stalk the reluctant

Davies

&
Co., 425 Montgomery
Street, members of the New York

just

finding, catching and domesticating this

mightiest of modern "Giants.'

WINTER

PARK, Fla.—Herman
Depperman
and
Harry
J.

A.

Marshall

With

A.

have

M.

D. D.

become

Kidder

&

associated
Co.

Sayer Jr. Opens

CITIES

(A)

SERVICE

Quality Petroleum Products

■M

■M
mm

W
smm

(Special to The Financial

Chronicle)

BEVERLY HILLS, Calif.—D. D.
Sayer, Jr. is engaging in a securi¬
ties

business

from

offices

North Camden Drive.




at

318

BEACH,

of Bache &
Road.

offered

May

Eubanks, Meyerson 8b
prior thereto with Wil¬

Fink has been

associates

accrued

Co., 465

j

Joins Bache Staff
PALM

Offer Mel. Edi. Bonds

due

connected

Johnson & Higgins.

i

and

become

Knowlton &

Wilson, Johnson & H.igMr.
Purcell
was
with

Halsey,

series

—

and

gins.

.

101.335%

Chronicle)

Calif.

Herget was
formerly with Hannaford & Tal¬

Halsey, Sluart Group

3%%

have

Frank

Sammon

business

Financial

California Street. Mr.

V. T. Smith Opens

central

of

The

all income.

and

the

to

FRANCISCO,

Ralph W. Herget and William H.

into

northern

Gas

electric energy is also distributed.
Gas customers last year numbered

1,147,924.

Oakland.

about

areas,

electric

and

Herget and Purcell With

rural

company's

the

communities

and towns and certain rural areas,

on

1952,

tributed in 117 incorporated cities
and

and

produces and sells steam in
certain
parts of San Francisco

com¬

extensive

customers.

of rural

a

an

electric distribution system served

rated

large sector of northern and
central California. It also distrib¬

the sale of

added

treasury

&

unincorporated

and

In

area.

out

the

of

Gas

225

munities

engaged principally in furnishing
electric and gas service through¬

first and refundo¬

Award

redeemable

about

his

investment

own

and

(May

be

parts of California.
It
$43,000,distributes electric energy in 156
000, incurred in connection with
the company's construction pro¬ incorporated
cities
and
towns,

loans

and

thereto

was

bonds

used

&

e r

n

4%

interest.

company's

Andrews,

s

Inc.

Co.

its bid of 100.9099%.

been

o

and

yesterday

competitive

Mr.

recently

P

Corp.

will

bonds

prices ranging from 105V2% to
par, plus accrued interest.

$65,000,000 Pacific Gas &

accrued

Sammon

with

&

a

at

ing mortgage bonds, series V, due
June
1,
1984,
at
101.78%
and

Ex¬

1st.

Boston

Stuart

Electric Co.

of

change,

Halsey,
offered

the New York
Stock

First

associates

Co., 25 Broad
Street, New
York City,
members

The

of

part of the construction program.
The

W. L, Burton Partner

in the financing

and

gram,

John F. Sammon to Be Bankers Offer Pacific

21

m*

Fla.

—

Philip

added to the staff

Co., 271 South County

22

The Commercial and Financial Chronicle..

(2206)

Administration and Congress that

Britain Disillusioned

the

for

sake

of

No Need for Defense Stretch-Oaf:

enabling them to

their markets the coun¬

maintain

importing dollar goods should
be enabled to export to the United

•

States.

conflict

The

By PAUL EINZIG

is

interests

payers

producers
mestic

the do-

producing for

m
markets

and

those

pro

ducing for foreign markets.
often

the

industries and

firms

are

Very
the

identical.

both

home

for

even

primarily

no

between
American
exand the American J**"
but
between
American

longer
porters

year's lapse since the "Trade—
Not Aid" slogan was originated by Britain's Chancellor of the
Exchequer, finds his country disillusioned and disappointed
by the unwillingness of the United States to admit more British
and other foreign goods. Looks for reduced financial aid by
the United States as foreshadowing its eventual termination.
Dr. Einzig, commenting on a

of

They produce
consumption and

Chancellor

that

ago

launched

his

out

Butler
of

slogan

new

aid " The policy char-

"trade not

ae

Wf

b y

tenzed

this

slogan

aimed

yife;;

ain's

•:

/

*

Brit-

trade

Dot-

the

with

\

lar Area

o

o

writhmif

•

n

to

dollar

the

fill

as

so

able

be

to

in-

at

creasirif?

address, de-

which underlie all our strength,
May 12 over Radio
"Measured in uniform prices, our
WCFM, Washington, D. C„ total annual output has risen from
Leon H. Keyseriing, Chairman of
about $302
billion
just
before
]lvered

on

station

the Council of

Korea

Economic Ad-

In

vjsers
end

the

at

of

the

aIphI!
tylt-

nancial^

W.fX

ance.

i-

assistthat

To

it

end

puzzled the British mind People
this side of the Atlantic find
it difficult to understand why the

1
ui

i

in

to
nr

f

der to be able „o reduce consumption

thereby
^to
exportable

and

adequate

produce an
surplus

York

to be much too optimistic,

appears

is

it

impossible

the

improvement.

even

if

much

more

have

helped

the

the
T

in

Unfortunately
been

had

progress

extensive it would not

much

achievement
of

recognize

not to

towards

the

of

second

the

part

oroeram

'.

.

a

speecn

commons

rr

tne

in

omiviay

f

iiouse

«,

Mr.

or

isuiie

jay

"New

the

themselves, in

for them

nly form in which payment can

of the New

York

in the long run.

made

Viewed
viewed

now

nuw

to

were

continue

t r a d i

ment

was

fuSpe/Su'

£

us

this

in

d
ed be instan<Je °*
°f.ep
i? contract

*

,

which,
has

disappointed

according

caused

to

Mr.

Butler,

disillusionment.

"he

n g

this

small.

Al-

item

a

large proportion of the

dollar

ered

lar

prokiem

gap

to

which

deen translated

For

everybody

that

that
the

direction

con-

aid

and

the

world.

in

has

rejected

States

other

admit

to

British

more

and

foreign goods.
in

bound
aid."

to
In

London is

indicated

by

As

at,sence

trade
and

the

so

0f

a

between

the rest of

United

"tnde

not

not

States

aid"

and

trade," the result is

be

"neither

trade

nor

spite of Mr. Butler's
that

surances

The importance attached to this
matter

also "aid

of

States

to

handicapped by
unwillingness of the United

^

in

contraction

progress

any

have

change
in
American
policy there is bound to be

trade

evident

is

actual

fav0rable

the United

aiming
now

the

trying to make a
foreign policy, unless

combined

our total annual product to defense and raising enough taxes to

pay for it,
the budget would be
balanced, but our long-run ecostrength and consequently

nomic

ultimate

our

military

potential

a

and

raising only $3 billion
cover it, there would
deficit, but I think most peo-

taxes

be

a

Britain would

as-

con-

tinue f° aim at multilateral tradin& j* W*U be inevitable for her

to

pie would

all

the

by

outs in the defense program

was

cause

inadequate preparedness to check
this kind of sudden inflationary

announced

other purposes—away from indus-

"In

trial development, away from the

satisfactions

consumer

that

make

early

1952,

some

stretchwere

undertaken, partly on the ground
that our economy could not stand
the strain.

It

said that, with-

was

out such stretch-outs, the automo-

bile

industry

would

have

to

be

closed down for lack of materials,
and that housing would have to
be cut to less than 600,000 units
a year. These dismal estimates did

business Administration. Harold shortages
aggravate
prolonged
benjamin, Director and former and serious inflation, and the
Comptroller, was elected Treas- whole economy is seriously un**.Pd Alfred Stern, the firm s rfprminpH
not.
dermined.
not thon
then seem to me consistent
to
consistent
Chlet Accountant, was elected Di"Now let us apply this test by with the economic facts; and withsector. Mrs. Josephine Murcek,
looking honestly at the facts.
in a few weeks after the defense
lormeriy Assistant to President,
"In the first half of 1959
hpforp
Pr°gram was stretched out, credit
sppm

^fs, Panlp£ Assistant Vice-Presin in
arge o
ro uc ion.

the

Korean

consumers

services

Goodbody Co. Opens

than

HOUSTON, Tex.

more

Goodbody &

same

in

outbreak,

American

annual rate

an

the

buying goods and

were

at

of

prices,

the

first

risen to

an

this

consumer

of

1953
of

And

of

cars

sell

the

that it

Auto output is still
the

home-building

'nd"stry'f whjch ™as sup?osed to
threattojed with ruination un-

buying

rate

quarter
annual

terrific.

industry

amount

making.

was

billion, measured in
prices. Measured in the

mo

automobile

enormous

less

$210

current

Branch In Houston

_

done

terrible shortages, and

dent.
Mr. Boschen, a director of
the firm, has been associated with

^wj1 ^b-eir dollar imports to the
YfA will dcdlar exports.
This
be

those

were

tated by rearmament, but instead
was. caused by the speculative
buying of people who listened to
the unwarranted assertions that
the rearmament program would

for de-

year

there

J^d.t

On

the other hand, if we were spend-

ing only $5 billion

year,,

a

spurt.
Inflation was never a
greater danger to us than Stalin,
and while Stalin is now dead, we
are threatened now not by inflation but by the Soviets,

„

ways

devoting half

would be seriously damaged.

pay

When it; first

agree that this kind of
operation would not be seriously
by Arnold impairing our economic strength,
Bernhard & Company, Inc., 5 East *n other words, the main burden
44th Street, New York City, that of the defense program upon the
Walter C. Boschen, Managing Edi- economy
is measured
by
the
tor of the Value Line Investment amount of our productive reSurvey, was elected Vice-Presi- sources that it diverts away from

It

a^d for other countries to balance
use of building up defense
forces, ^beb *Tade with the United States
going to meetings at N.A.T.O., and
a ]? ? e
basis by cutting
other

one

test.

time short of

a

were

ability to

our

peace.

inflation
us tban Stalin. I then stated that,
while rearmament would impose
some inflationary strains for a
time> we could sufficiently inerease production to, solve this
Pbase of the problem. This was
sc°iTed a* bY many. -But today,
whlle the rate of defense outlays
has tripled since early 1950, there
bas n0* been inflation 3ince early
1951; and the inflation in late 1950

of

in

& Co. Promotes Five

IVTr. Butler's remark: "What is the

in

we

is

main

the

.

com¬

on the ground that
was a greater danger to

year.s- Jf was also announced that up our standard of living, away
MarJorie Crough, formerly Assis- from the fund of incentives that
tant Managing Editor of the Value maintain our general economic
bine service, was elected Director progress. If this diversion is too
and. "■ice-President in Charge of great,
prolonged
and
serious

can

at

policy
it is

but

intentions

into action has

war,

This

the

not

it seems, therefore, that as a
result of the reciucti0n of Ameri-

a

the

much

is

example, if in

total

de-

balanced.

it

Arnold Bernhard & Co. for eight

proceed

vertibility,

For

been

but

doubted

price of

billion

the

not

or

of

.

has

who resisted

dam-

does not turn

whether

weapon

economy,

became necessary in'-1949-50: to
lift defense spending about
$13-14

de-

a

far keen negligible.

govern-

with

has

talk about American investment
abroad as the solution of the dol-

ment's

to

_.

requirements.

there

years

uncov-

economy
on

test

Arnold Bernhard

abnormally
reason to

seriously

aging the

fense

any

expect that American private investors would be willing to cover

though he reaffirmed the
determination

is

Nor is there

is

program

primarily
budget is

artificially low dollar price of

gold

the

stated:

"The question of whether
fense

Baltimore

^eems that the American taxpayer Stock E xis a* last inclined to assert him- changes, as of
self.-This change of attitude can- May 25th as
nQt alter
however, the laws of manager of
imple
arithmetic
and
if
the the New York
States

economist

the

and

Philadelphiaft
n

side
siue

this
inis

from
irom

Deal"

frequently called the great¬

non-secret

have

the

economy,

<

power,, which

pletely confounded those who re¬
peatedly during the past few years

Keyseriing

on

aXtent

frankly admitted tnat the govein-

Leon

f

o

former

at unjted

standstill

c e

peace," despite the strain

have an
eXport surplus that partment. Mr.
however, to induce the surpjus would remain unpaid un- Griffin has
jess dollar aid is granted. In the conducted his
cept British goods offered at com- absence
of
dollar
aid
foreign own
business
O. D. Griffin
petitive prices. Beyond doubt a countries will be compelled to cut since 1950 and
fair progress
was
made in the down
their
was
with
imports
from
the prior
thereto
Lord,
execution of the first part of the United States. To some extent the Abbett & Co. as
Vice-President in
program. Even though Mr. But- dollar gap may be financed by charge of trading,
ler's claim that inflation in Britain gold shipments, though owing to
a

affor(i the

i

outbreak.

American

national

necessary,

brought to

I have
est

that

is
much
than at the time of

now

Korean

it plain

make

economy

;"This productive

lries should be given a chance to City, members

United States to be willing to ac-

been

the

security.
Holding "we
can

rate,; has risen more
billion, while the in¬

general

stronger

ful to national

p r

Broadway,

50

competitive prices. It was equally

has

our

■

for American exports instead

to

Rritain

in
m

O. D. Griffin will become as-

jf insisting that the buying coun- New

je

t-iuxig

a

f

hrinff inflation
Dr. t*aui

Sparks & Co.

American taxpayer is prepared to sociated with J. W. Sparks & Co.,
oay

was

necessary

J. W.

on

now.

in

These figures

harm¬

as

$60

billion

total production, at

government
expendi¬
tures due to the defense
program
has
been less than $40 billion.

Join

also

about $365
our

annual

than

crease

-

D. Griffin

to

short,

an

for foreign consumption. A reali- Truman Adported by means of increasing zation that it is impossible to have mjp juration,
their exports to the United States, it both ways should go a long way scored
the Washington Administration, towards making possible a com¬ stretching-out
defense
Congress and American opinion mon sense solution,
preferred to make a free gift of
spending as
the export surpluses in the form
not
only un¬
Marshall aid and military aid. 0.
to
necessary but

This attitude has for many years

.

on

balancing the budget.
In his second radio

LONDON, Eng.—It was about a for the American goods they imyear

Keyseriing

Former Chairman of Council of Economic Advisers
jays nation
can bear strain of defense
outlays, and it is a serious economic
error to make
size of security efforts to turn

tries

By "Trade-Not Aid"

.Thursday, May 21, 1953

had
more

stretched

were'united^nd" wf brideed ea®ily"*a*very5arge°part*of ^dol- Co''

out

builtPrafre

houses

™embers
leading security than $225 billion, and it is still in 1952 than in 1951. and in this
lar imports consists of nonessen- exc"hanges, has announced the rising. While buying more, eonyear 1953 has been building more
up hope however that things mav
£°ods' If American tobacco
°fanew bra"ch
" n sumers are also saving more.
Houston, Texas, with John A. Even'"more important "from'"the
go
better after the new United growers, the Hollywood film in1®5.2"™?" 0Ver a miUion
Texas' wlth./ob" A. Even more important from the
.
.
ST
ne.w united r.llolr-_
Thackston as manager. Mr. Thack- viewpoint of our basic economic unlts in eac" year'
States Administration "has "over- "ustrV
and manufacturers of a
^'on a? manafer. Mr.his own viewpoint of our basic economic
Thaekcted
strength, business investment in
"in summary, neither investcome its^Rial difficulties
Others
gadgets which, nowever
h,s^length, business investment in
in
Knoxville, producer durables—the plant and ment nor business initiative, neiin
London
are
less
optimistic. usebjL
are
not
indispensable, Tenn.

cies

the dollar

van'"

...

He did

not

elve

...

„

.

There is
the

widespread feelint? that

a

Chief

cates

a

Joseph

definite

reinforcement
tectionism

Dam

trend

of

of

hoped-for relaxation.
At the

toward*

American

instead

its

flvof

tVia

a

pro¬

much-

1

time there

same

inHinatinnc

indi-

case

TT

also

are
j

c.

.

r<iiUKzed what the future holds for

them they would take a more acthem they would take a more active interest in the shaping of
tive interest in the

financial

niri

Th

g
s

«?tf7£ rpd^rTSS
which the dollars
not

cover

more

v,lri
I

worry

than

a

fraction

of

1

Hitherto the United States
pur-

^consistently

_

an

aid
than

/

(

to

Although their

now.

encountered
unuuuiHCieu

time to

resistance
ltfMS lailCV.

with Stone & Webster Securities
Corporation — Chicago.
in
e>-«

■

<

■■•

on the whole
This will bring to 28 the numable to maintain ber of branch offices of Goodbody
their overseas markets remark- & Co. which was established in
abiy wel1 in the circumstances. 1891 and maintains its main office

time,

always

re-

in New York City.

,

:

power-are

lift

our

productive ther the growth of our productive

not

allow

ment

outlays

goods

and

cause

of

necessary

pay

for

their

"neither trade
are

goods.
nor

dollars to welLknown Research Department,
the facilities on principal stock and

Under

aid" policy they

bound to lose markets.

Their

the

commodity exchanges and
tive trading department
listed securities.

an

in
.

^

ac-

burden has included the taxes collected to finance it. To be sure,
might *
have made even faster
" - —*
—
civilian progress if this burden
had not existed, but the blue chips
of national security cannot be
bought for the price of cats and
dogs."

all

levels)

for

mostly beexpanded defense

the

$45

enough

we

services,

from

program,

around

(at

an

annual rate of

billion

economic

before. the

resources

left

nor

of the defense program—and this

is running correspondingly highen
Thus, despite a i lac All governxtiua,
uxropitc- cx
rise in guvci ll~

end, so that
The Houston office will make Korean aggression to more than
!
e
Lbeen n0 need for them available in this area the invest- $83 billion in the first quarter of
to worry how the importers have ment publications of the firm's this year, we have nonetheless had
procured the

Icountries to pay pnly hope lies in persuading




the improvement of
our standards of living has been
impaired seriously by the burden
Power

now

nrovidpffwnnfH c^lved Payment in the

the presen4 dollar
gap

Fuea

up

exports
t Ajiui w

I®"? Somehow they have

'

t

S

which

.

P/" they have been

#

itcTvintV."i

tools

.

-Associated with
Associated with Mr. Thackston

running at an
will
Isbell
^ybl be Jack D. Jsbell and John S, annual rate of about $27 billion,
Sn
American
trade
policy and aid Weatherston. The new office will contrasted with less than $23 bilpolicy. On the basis of the exist- be located at 2811 Gulf Building/ lion just before the Korean outing system they had no cause to Mr. Weatherston was f o r m e r 1 y break. Total private investment

from
rAttn

*
"

.

-

,

With Standard !ny. Co.
(Special

to The

Financial Chronicle)

I

to raise the world's highest
PASADENA, Calif.—George W.
standard of living still higher, and McMullian has .become affiliated
over

un-

to

^

year

enlarge
the

enormously
productive

by with Standard Investment Co. of;
facilities California, 87 South Lake Avenue.

year

Volume 177

Number 5222... The Commercial and Financial Chronicle

(2207)

J

*^v\\WwW'.

rfBSSSS^SSigB^-

SESoSX?1W£1DEO ,nt°
srRocroRt
T££l

O

mak,NG

6WAT 1MB
STtfl CORP

Detroit, Mich

of

standard

!•"

A m„;

and

™ J?r,SUppL

wSsrw^wW

er

nsar-iiS i^"Ssffls»S
^er

Industry finds greater utility and efficiency
in National's Long-Span
From

companies seeking
industrial plant expansion in a hurry are find¬
ing the answer in the Long-Span Multiple!
to

coast

coast,

per

and

It is
and

steel

a

of unobstructed interior space.

of famous

n-a-x

high-tensile

for

long life, strength and economy.
Surveys of businesses across the country
show that the Long-Span Multiple can satis¬
factorily meet the requirements of over 80

CORPORATION

GRANT BUILDING

INDEPENDENT




COMPANY

OWNED

•wham#

of manufacturing, light industry
warehousing operations.

"ANNA IRON
ORf

ironVt"d/ 0hio.ore from

:

e

m

COII

P'odv

extensive
the Great
Lakes

cent

This, then, is National Steel—completely
one
integrated, entirely independent . .
of America's leading steel producers.

NATIONAL STEEL

AN

Multiple buildings

buildings are only one of many
Steel products that serve many
industries in many ways. In addition to
National's large output of standard steels,
its diversified operations provide special
carbon steels for the automotive industry;
tin plate for the canning industry; zinccoated steel for the home appliance industry;
low-alloy sheets and fabricated steel flooring
for the railroad and trucking industries; steel
framing for the building industry.

quality building featuring arch ribs

trusses

gM&asss s

J

National

product of the Stran-Steel division of
Great Lakes Steel, originators and sole
makers of world-famed Quonset buildings,
the Long-Span Multiple is adaptable to any
site or to any application. It is all steel, with
straight side walls and arch roof for a maxi¬

BY

MORE

THAN

19,000

l"i
»«e
nace

FUKNACt

d! "
diva,™,

various

** B'«"
for

W-

production

types of pig

irJ

n.;v,kw

national mines

STOCKHOLDERS

co

gicaf coaMor

' Kl nOI>Ucn tO.
distribSof'f HI-ehouse

Houston
a>id

'•t

CORP

T

NATIONAL
STEEL

PITTSBURGH, PA.

produci

STRAN-STEEL DIVISION

All-steel

A

mum amount

important steel

23

24

The Commercial and Financial Chronicle... Thursday, May 21,

(2208)

■'m
'

W"

«

MB
zwm^wwww

w&mmmmA

Mm

,

/4L im, i/

/-^

%4'W\7ki

A,

fltt

"■M.%
i

1

M

JtiS

■!
>

X

-

'P%
*P

i

►

A

'/

«■

^

,4"°^

&$§

"

■■//,

BX.
u

GM ENGINEERING

■yy/X&W*'

v

,.

I

perfects

..

tddalfs progress
tomorrows

patterns

promise

built

our own
to

engineerietter car transm
ment

They're called—in engineering language—"electronically
variable dynamometers." And
when this picture
cisely the

same

being given the works under

conditions it would

climb, including
What's more, the
even more

was

every

meet on a

single hairpin

turn

pre¬

Pontiac, Oldsmobile and Cadillac; Twin-Turbine Dynaflow in

Pikes Peak

Buick. Not

be

ever

on an

make

use

actual trip up
even

better,

knowledge added

the fund of information

to

about automatic transmissions which

our

uncovering since back in 1927. And

483

a

engineers have been

continuous improve¬

of

Powerglide in Chevrolet; Hydra-Matic in

mention GM's automatic
now

Here, then, is

—

more

to

transmissions

and road grade.

the mountain.
Result:

performance of General Motors famous automatic

transmissions—

performance of the transmission is recorded

exactly than it could

in the

was

—

taken—a transmission

Pikes Peaks

a

more

continuous

make the

proving their worth in "Korea.

typical example of the

every

develop

available material,

new

materials and




Value—-the Key to

CHEVROLET

•

a

•

OLDSMOBILE

*

BUICK

•

key to

a

General Motors

car

value.

CADILLAC

•

All with

practical method

methods — to build

economical products for you. In fact, it is this

General Motors Car"

PONTIAC

GM engineers

engineering ingenuity and resourcefulness which

General Motors
to Greater

way

every

new

mm

I"Your Key

Army truck and tank

Body by Fisher

•

GMC TRUCK & COACH

—

your

key to greater

1953

»

Number 5222

Volume 177

1952

...

Xfit

f

^ if

M

(2209)

The Commercial and Financial Chronicle

COMMITTEEMEN

1953

-

25

EXECUTIVE

COMMITTEE
CHAIRMAN

EIGHTEENTH ANNUAL MEETING

W. Lewis Hart
Austin, Hart &

Parvin,

John

D.

Antonio

Williamson

Dittmar &

San

San

Company,

Antonio

VICE-CHAIRMAN

(jtoiip

ey.a.5

INVESTMENT BANKERS ASSOCIATION
Thomas
First

OF AMERICA
R. R. Gilbert,
First
in

National

Dallas,

Beckett

Southwest

Company, Dallas

Jr.
Bank

Dallas

VICE-CHAIRMAN

Robert A. Underwood
R.

Underwood

A.

&

Co., Inc., Dallas

Wilbur

E. Hess

Fridley

&

Hess,

Houston

SECRETARYTREASURER

Chas. B. White
Chas.

B.

White &

Co., Houston

Robert E. Whitlock
James

C.

Tucker

&

Co., Inc., Austin

FORT CLARK RANCH •

BRACKETTVILLE, TEXAS

EXECUTIVE

SECRETARY

MAY

—

6-9,

1953

STRICTLY INFORMAL

—

Dana T. Richardson
Underwood, Neuhaus

R.

B.

(Brud)

Smith

&

Co.,

Houston

Dallas




J

26

(2210)

The Commercial and Financial Chronicle

Rauscher, Pierce

&

...

Thursday, May 21, 1953

Co

Underwriters and Distributors

RAILROAD
INDUSTRIAL
PUBLIC UTILITY
BANK & INSURANCE
TEXAS

MUNICIPAL

SECURITIES
Murray
Saxton

Active

Trading Markets

Mercantile Bank

Hansen, Investment Bankers Association of America, Washington, D. C.; Carl Stolle, G. A.
Co., Inc., New York City; Mrs. Helen Boles Hardy, Big Spring, Tex.; Mr. & Mrs. Ewing
Dittmar St Company,
Dealers, Inc., Washington, D. C.

St

T. Boles, The Ohio Company, Columbus, Ohio; Mr. & Mrs. John D.
Williamson,
San Antonio, Tex.; Wallace H. Fulton, National Association of Securities

Building

DALLAS 1, TEXAS
Telephone:

BellTeletype:

Riverside 9033

DL 186 and DL 197

HOUSTON

SAN ANTONIO

WACO

AUSTIN

HARLINGEN

Direct Wires

to

LUBBOCK

New York, St. Louis and other

Principal Markets

FIRM

BIDS

AND

OFFERINGS

TEXAS MUNICIPAL BONUS
MARKET APPRAISALS

Bond

Executive Committee for 1953-54:
(standing) Edward Rotan, Rotan, Mosle and Moreland, Houston;
Joseph R. Neuhaus, Underwood, Neuhaus St Co., Houston; John D. Williamson, Dittmar & Company,
San Antonio;
(seated) Chas. B. White, Chas. B. White St Co., Houston; Hugh Dunlap, BinfordDunlap, Inc., Dallas; R. R. Gilbert, Jr., First National Bank in Dallas, chairman; W. Lewis Hart,
Austin, Hart St Parvin, San Antonio; W. Wallace Payne, First of Texas Corporation, San Antonio

CREDIT ANALYSES

Department

FIRST NATIONAL BANK
IN

DALLAS

Telephone ST-5471

The Bank Wire

to

Principal Markets

Teletype DL-94
Member

Federal Deposit

Insurance

Corporation

Ewing T. Boles, The Ohio Company, Columbus; John D. Williamson, Dittmar St
Company, San Antonio;
Leslie L. Lentz, Lentz, Newton St
Co., San Antonio

OIL

FINANCING

•

UNDERWRITING

•

TRADING

Scutuwetiecn Securities Company
Mercantile Commerce Bldg.
DALLAS
Riverside 5471




1, TEXAS
TELETYPE

DL-334

Mr. &
Trust

Mrs. Maurice M.
Hatcher, First National Bank in Dallas, Dallas; Newell S. Knight, Mercantile
Company, St. Louis; Mr. & Mrs. Robert R. Gilbert, Jr., First National Bank in Dallas, Dallas

Voiume 1^7

Number 5222... The Commercial and Financial Chronicle

(2211)

William C.

Jackson, Jr.

Thomas

Beckett, Jr.

Winton A.

James F.

Jackson

Jacques

Wm. P. Smallwood

Taylor B. Almon, Rauscher, Pierce & Co., Dallas; Harry Ratliff, Keller & Ratliff, Ft. Worth;
Ewing T. Boles, The Ohio Company, Columbus; William W. Veazie, Ira Haupt & Co.,
New York City; Charles C.
Pierce, Rauscher, Pierce & Co., Dallas

FIRST

goutkwedt
i

COMPANY

INVESTMENT BANKERS
Mercantile

Bank

Building

DALLAS
Telephone
RAndolph 6461

Teletype
DL
Direct Private Wires

New York, Los
-

John

M.

346

to

Angeles, Houston, Galveston, Beaumont,
Waco and San Antonio

Hamilton, H. C. Burt & Company, Dallas; Charles L. West, Russ & Company, Inc.,
John Fosdick, Russ & Company, Inc., Houston; Clifford J. Osborn, Dallas Rupe & Son,
Mrs. Dorothy Brandenberger, Rotan, Mosle and Moreland, Houston; R. Gilderoy
Tucker, R. A. Underwood & Co., Inc., Dallas

TEXAS

San Antonio;

Dallas;

MUNICIPAL BONDS

Central Investment Company
of texas

—

Kirby Building, Dallas 1, Texas
Bell

Teletype—DL 586

RAndolph 9145

Branch Offices
Omaha

James
Robert

San Antonio

Plalnvlew

St. Paul

Dunn, Dunn & Wills, Houston; Edwin J. Markham, Werthetm & Co., New York City;
Underwood, R. A. Underwood & Co., Inc., Dallas; Mr. & Mrs. William N. Edward3,
& Co., Ft. Worth; Elmer A. Dittmar, Dittmar & Company, San Antonio;
(in front) Milton E. Allison, M. E. Allison & Co., Inc., San Antonio; C. Willard Houser,
American National Bank, Austin, Texas
L.

A.

William N. Edwards

SOUTHWESTERN MUNICIPALS
REVENUE BONDS

CORPORATES, LOCAL SECURITIES

OFFERINGS,

BIDS,

APPRAISALS
%

R. J.

EDWARDS, INC.

MERCANTILE BANK

BUILDING

TERMINAL BUILDING

DALLAS 1, TEXAS
TELEPHONE—RANDOLPH 7715

Read, The Ranson-Davidson Company, Inc., San Antonio; Edward H. Keller, Texas
National Corp., San Antonio; Mr. & Mrs. Milton E. Allison, M. E. Allison & Co., Inc., San Antonio;
Robert Creek, A. C. Allyn & Company, Chicago; Mr. & Mrs. Robert R. Brinker, John Nuveen & Co.,
.Chicago; Mrs. Henry M. Beissner, Moroney, Beissner & Co., Houston;
-Ted Whitlock, James C. Tucker & Co., Inc., Austin, Texas

William

L.



•

-

OKLAHOMA CITY 2, OK LA.
TELEPHONE—REGENT 6-3541

TELETYPE—DL

162

TELETYPE—OC 370

27

28

The Commercial and Financial Chronicle... Thursday, May

(2212)

Mr.

i
i>

JOHN M. HAMILTON

C. NESOM BURT

Over

*

&

Mrs.

Texas

tl, 1053

Union Securities Company, Dallas; Mr. & Mrs. Robert L. Cook,
Mr, & Mrs. Ed Walton, Fort Worth National Bank, Ft. Worth

Jack P. Brown, Dallas

Bond

Reporter,

Dallas;

Twenty-five Years Experience in

TEXAS MUNICIPAL BONDS
<►

Originators

Local

!»

Distributors

—

Securities

Corporation

Mutual

Fund

Dealers

—

Shares

Co N. BURT & COMPANY

*\

Kirby Bldg., Dallas 1, Texas
RAndolph 8733

<►

Jj

Representative

—

8734

Amarillo, Texas

—

J

iAHHHHUUWWWHWHVtHHHHHMWHHHHHHUHVV

UNDERWRITERS

DISTRIBUTORS

—

—

DEALERS

Anthony E. Tomasic, Thomas & Company, Pittsburgh; Decker Jackson, First Southwest Company,
Dallas; Gordon B. Whelpley, Goldman, Sachs & Co., New York City; Joseph R. Neubaus, Underwood,
Neuhaus & Co., Houston; W. Lewis Hart, Austin, Hart &
Parvin, San Antonio; William Nelson II,
Clark, Landstreet & Kirkpatrick, Inc., Nashville, Tenn.; L. J. Tennenbaum,
Goldman, Sachs & Co., New York City

TEXAS
BONDS

MUNICIPAL
CORPORATE

STOCKS

UNLISTED

LOCAL

&

&

BONDS

SECURITIES

Incorporated

Mercantile Bank Bldg., Dallas 1, Texas

Wli Teletype

DL 492

Riverside 9295

.

Representatives

—

Amarillo

Dealers

—

——

Belton

—•

Edinburg

Distributors

Corporate
Bonds & Stocks
John P.

Henderson, M. E. Allison & Co., Inc., San Antonio; Jose Luis Tenes, Matador; Chevo Cantu,
of La Macarena; James W. Lain, Rotan, Mosle and Moreland, Galveston; Mrs. James W.
Lain; Pedro Garcia, Matador; Roger Wheeler, Manager of the Chamber of Commerce of Del Rio, Tex.

manager

J. F. Perkins &

Company

1508 First National Bank

DALLAS 1,
Telephone—-STerling 4531

TEXAS

Bldg.

TEXAS#
Teletype—-DL 481

SECURITIES
We

Specialize in

Republic Natural Gas Co.
National Tank Co.

Seismograph Service Corp.
Southwestern Life Insurance Co.

Southwestern States Telephone Co.

Southwestern Investment Co.
Underwriters and Distributors of Corporate Stocks and Bonds

SCHNEIDER, BERNET & HICKMAN
Members Midwest Stock Exchange

(standing)

SOUTHWESTERN LIFE BLDG., DALLAS 1, TEXAS
BELL TELETYPE DL 286
Private



STERLING

Wire to White, Weld & Co.

1201

National
Mrs.

James W. Lain, Rotan, Mosle and Moreland, Galveston; C. Willard
Houser, American
Bank, Austin; Manlejr A. Hagberg, M. A. Hagberg & Co., Inc., Dallas; John J.
Fosdick,

5, Company, inc., Houston; R. Gilderoy Tucker, R. A. Underwood
W.

& Co., Inc., Dallas; Mr. &
McPherson, Merrill Lynch, Pierce, Fenner & Beane, Dallas; Ed R. L. Wroe, Jr.,
Bank, Austin; Francis I. Abshire, J. R. Phillips Investment Company, Incorporated,
Houston; Mrs. James Lain; Mrs. Manley A. Hagberg; Mrs. John Fosdick;
Mrs. John P. Henderson; Mrs. Francis Abshire

Perry

American National

.wmMzwMMMi

«

'MhNiwwui

'juk a .

lillU

(2213) 29

Number 6222... The Commercial and Financial Chronicle

177

For

Information and Service on

SOUTHWESTERN SECURITIES
and

Firm Bids and

Offerings

TEXAS MUNICIPAL BONDS
call

MERCANTILE NATIONAL BANK
&

Lockett

Mrs.

Lynch,

Shelton, Republic National
Pierce, Fenner & Beane, Dallas;
John W. Pancoast, Dewar,
Wilbur E. Hess, Fridley

Antonio;

Dallas; Mr. & Mrs. W. Perry McPherson,
Willard S. Bain, W. S. Bain and Company, San
Robertson & Pancoast, San Antonio;

Bank,

&

Hess,

Houston,

Texas

at
Bank Wire

Riverside 4181

•

to

Dallas
Principal Markets

DL 457 * Bond Department

Investment Bankers

&

Mrs.

Decker

Southwest

Jackson,

First

Southwest

Company,

Dallas;

Mr. &

Mrs.

Company, Dallas; Taylor B. Almon, Rauscher, Pierce & Co.,
& Hess, Houston; Mr. & Mrs. Lockett Sheldon, Republic

G. Fridley, Fridley

James F. Jacques,

Dallas; Mr. & Mrs.
National Bank, Dallas

sdnUin

'Hal/er-,
rjfnve^/merit
0le/iu,lAic iASanA
Dallas;
Equitable

Rand, Rand & Co., New York City; Lewis F. Lyne, Mercantile National Bank,
Frank Burkholder, Equitable Securities Corporation, Nashville;
Richard L. Bradley,
Securities Corporation, Houston; William J. Anderson, Jr., Equitable Securities Corporation,
Nashville; L. Smiley White, Frost National Bank, San Antonio

Thorburn
H.

Q)aUaA 2, iffeaxiA.

Dealers and

Originators

TEXAS MUNICIPALS
AND

SOUTHWESTERN CORPORATE
Firm

Bids

—-

Firm Offerings —-

Statistical information

Quotations

gladly furnished on

request

WILLIAM N. EDWARDS
FIRST NATIONAL

&

C. Underbill, Arthur




Telephone—FAnnin 2211

& CO.

BANK BUILDING

FORT WORTH 2,
Wiesenberger & Co., New York; James Murphy, Shear son, Hammill
Co., Houston; Arthur P. Nazro, North American Securities Co., Dallas; Douglas E. Johnston,
Fridley & Hess, Houston; Marquette de Bary, F. S. Smithers & Co., New York City;
Stanley Grant, Carl M. Loeb, Rhoades & Co., New York City

Arthur J.

ISSUES

TEXAS

Teletype—FT 32

30

The Commercial and Financial Chronicle

(2214)

We

...

Thursday, May 21, 1953

are

Specialists

Dittmar & Co.

in

South Texas

all

Bldg.

San Antonio, Texas

TEXAS

Phone:

Garfield 9311

Teletype: SA 15

Municipal

•

and
Dallas

Office:

Corporate

Mr. &

Wilson
Riverside 9681

Mrs.

William G. Hobbs, Jr., Russ

Drexel & Co., New

Building

& Company, Inc., San Antonio; Mr. & Mrs. Walter H. Steel,
York City; Mr. & Mrs. Edward D. Muir, Russ & Company, Inc., San Antonio

Teletype DL 486

Issues
•

Open the door
to

an

expanding
market
We

are

Texas

Retailers
Paul

A.

Just, Television Shares Management Co., Chicago; William C. Porter, Dittmar & Company,
Antonio; William A. Jeffers, Dittmar & Company, San Antonio; Laurence W. Morgan,
Parker
Corporation, Chicago; Mrs. Paul A. Just;
Mrs.
Laurence
W.
Morgan

San

The

Deum&i

&

Members New York Stock Exchange

,

Members

NATIONAL BANK

American

SAN
CORPUS
JONES

CHRISTI

Stock

OF COMMERCE

Exchange (Assoc.)

BUILDING

OFFICE:

BUILDING

-

FANNIN 7141

ANTONIO, TEXAS
SAN

2-1652

ANGELO

McBURNETT

FIRM BIDS

RETAIL

TEXAS

MUNICIPAL

OVER-THE-COUNTER

OFFICE:

BUILDING

-

6032

MARKETS

BONDS

STOCKS

Underwriters of Corporate Issues

Austin, Hart
NATIONAL BANK OF

SAN

&

Parvin

John

M.

Hugh

COMMERCE BUILDING

ANTONIO 5, TEXAS

Telephone Cathedral 1491

Hamilton, C. N. Burt & Company, Dallas; Harry Ratliff, Keller & Ratliff, Fort Worth;
Dunlap, Binford-Dunlap, Inc., Dallas; J. Marvin Moreland, Rotan, Mosle and Moreland,
Galveston; Ed Franklin, Dittmar & Company, Dallas

Teletype SA 71

Retail Is Our Outlet

Texas National Corporation
INVESTMENT BANKERS
Transit Tower
SAN ANTONIO
TELEPHONE

G-3401




5, TEXAS
TELETYPE

SA-40

John

J.

Fosdick,
New

Russ

York

&

City;

Company, Inc., Houston; Gordon B. Whelpley, Goldman, Sachs
W. Wallace Payne, First of Texas Corporation, San Antonio

&

Co.,

I

^

^oiume 1*77

'

.

.

Number 5222... The Commercial and Financial Chronicle

(2215)

C!inr^ITI>¥rTIl?C!

TPIPV A C

IIJAJVA

IJIJVJIJIiiIIijij

ACTIVE TRADING MARKETS
Johnston Testers, Inc.

Longhorn Portland Cement Co.

Texas Industries, Inc.

Houston Natural Gas, Com. & Pfd.
Garrett OilTools,

San Antonio Transit Co.

Inc.

Houston

El Paso Electric Co.

Lone Star Brewing Co.
Sommers Drug Stores, Com.
Central Power &

Light & Pwr. $4 Pfd.

West Texas Utilities
Duncan Coffee Co.,

& Pfd.

Light Co. 4% Pfd.

Texas Elec. Service
Dallas Power &

ICirby Lumber Corp.

6% Pfd.
Class A

4.56% Pfd.

Light 41/£%.Pfd.

All San Antonio and Houston Bank Stocks

Wilbur H. Frederking, Fridley & Hess, Houston; Mrs. John
Brandenberger;
Edward Blair, William Blair & Company, Chicago; John Brandenberger,

Mrs. Russell E. Siefert;
Rotan, Mosle and Moreland,

iCjj T

Quick Firm Bids On All

^ern flrotbens A Co., Kansas City, Mo.

-

Texas

Municipal Bonds

& Company

Russ

INCORPORATED

OFFICERS

Members

Midwest Stock Exchange
OFFICES:

C.

E.

Alamo National Building

L. WEST

W. G.

HOBBS, Jr.

SAN

D. MUIR

ANTONIO

HOUSTON

5

AUSTIN

A. M. RUSS

FT. WORTH
Direct and Connecting

Dallas, Houston, Galveston, Hew

Wires to:

York &

Los Angeles

John

S. Hilson, Wertheim & Co., New York City; Earl G. Fridley, Fridley & Hess, Houston; Jere
Tegeler, Dempsey-Tegeler & Co., St Louis; Richard Walbert, Blyth & Co., Inc., Chicago; H. Frank
Burkholder, Equitable Securities Corporation, Nashville; Jack Hecht, Dempsey-Tegeler & Co.,
Los Angeles; Edwin J. Markham, Wertheim & Co., New York City

Dealers

Exclusively in

TEXAS

W.

Wallace

MUNICIPAL

Payne,
President

BONDS

Representatives in

DALLAS, AUSTIN,
YOAKUM and McALLEN, TEXAS

Telephone Garfield 9253
Teletype SA 13
TRANSIT TOWER, SAN

ANTONIO 5, TEXAS

(players) Scaiiland Hilger, Dallas Rupe & Son, Dallas; Herbert R. Anderson, Distributors Group, ln~
corporated, New York City; R. Gilderoy Tucker, R. A. Underwood & Co.* Inc., Dallas; Chas. E. Kimball,
Group, Incorporated, Dallas; (kibitzer) Clifford J. Osborn, Dallas Rupe & Son, Dallas

Distributors

We

are

actively interested in all issues of

TEXAS

TEXAS-KANSAS-FLORIDA

Underwriters—Dealers—Distributors

Your

MUNICIPAL BONDS

Municipal Bonds

RED
tJhe RANSON-DAVIDSON
"

COMPANY

BUILDING

WICHITA 2, KANSAS
Teletype—WI

Mc

Corporation Stocks and Bonds

CROSS
Trading Markets—Active Retail Outlets

INCORPORATED

must carry on

Specialising in municipal jBonds
BEACON

192

Coral Gables, Fla.

Allen,' Texas



.

I

ROE & COMPANY

MILAM BLDG.

SAN ANTONIO 5, TEXAS
Teletype—SA 8

St. Petersburg,

SECURITIES

MILAM
Fla.

Garfield 8338

BLDG., SAN ANTONIO 5
Bell Teletype—SA 70

31

32

The Commercial and Financial Chronicle...

(2216)

Thursday, May 2l, 1§53

Established 1907

Underwood, Neuhaus & Co.
MEMBERS MIDWEST STOCK

EXCHANGE

Government, Texas Municipal
and Corporation

Securities

Mrs.

Earl

G. Fridley, Houston, Mrs. Robert Brinker, Chicago; Mrs. William Hobbs; Mr. & Mrs.
& Co., Kansas City, Mo.; William G. Hobbs, Jr., Russ & Company,
Antonio; Mrs. Walter H. Steel; Edwin J. Markham, Wertheim & Co., New York City;
Walter H. Steel, Drexel & Co., New York City; Maury Maxwell, Northern Trust Company, Chicago
Russell E. Siefert, Stern Brothers

Inc., San

CITY NATIONAL BANK BLDG.,

HOUSTON 2, TEXAS

Telephone CEntral 8841

Teletypes HO 321 and 399

Direct Private Wires to Dallas and New York

DEALERS

DISTRIBUTORS

UNDERWRITERS

Corporate and Municipal
Securities

t. *■

Fridley
National

First

&
Bank

3ft

Graham Walker, Joseph McManus & Co., New York City; Walter Todd, B. V. Christie & Co., Houston;
A. Gordon Crockett, Crockett & Co., Houston; Jesse Phillips, J. R. Phillips Investment Company,

Hess

Incorporated, Houston; Paul Fairchild, First Boston Corporation, Chicago; James P. Jamieson, Glore,
Forgan & Co., Chicago; A1 Bergquist, First National Bank of Chicago, Chicago;
Charles J. Eubank, Charles J. Eubank &. Co., Waco, Texas

Building

HOUSTON 2, TEXAS
Bell Teletype HO 42

Telephone PReston 8101

Copies of Candid Photos appearing in this issue
may

be purchased from

PAT R0BERS0N
PHOTOGRAPHY
FORT

CLARK

RANCH

BRACKETTVILLE,

TEXAS

Underwriting, Retailing and Trading
J. Denny May, The Parker Corporation, Boston; George
Aldrich, Parker Corporation, Boston;
Laurence W. Morgan, The Parker Corporation, Chicago; William A.
Parker, The Parker

TEXAS SECURITIES
CLAUDE T. CROCKETT

A. GORDON CROCKETT

Mrs.

Edward

Rotan; Amory Parker, The Parker Corporation,
Edward Rotan, Rotan, Mosle and Moreland, Houston

Boston;

TEXAS
GREETINGS FROM
1st NATIONAL BANK

BLDG., HOUSTON 2, TEXAS

CHarter 2541

TWX

Direct and

HO 88

Cleveland—Wm. J. Merlcka & Co.
Dallas—Dallas Rupe & Son
Dallas—Southwestern Securities Co.

CORPORATES

TEXAS GROUP

Kansas City—Burke & MacDonald

Los Angeles—Dempsey-Tegeler & Co.
New Orleans—T. J. Feibleman & Co.
New York—Joseph McManus & Co.

Pittsburgh—Blair F. Claybaugh & Co.

Denver—B. E. Simpson & Co.
Detroit—R. C. O'Donnell & Co.
EI Paso—Harold S. Stewart & Co.

St. Louis—White & Co.
San

Co.

us

MUNICIPALS

Connecting Wires to

Chicago-*—Hulburd, Warren & Chandler
Chicago—McMaster Hutchinson & Co.

DigitizedHarrisburg—Blair F. Claybaugh &
for FRASER
(Contact


—

through

OF

IBA

EDDLEMAN-POLLOK CO.
FIRST NATIONAL BANK BUILDING

Antonio—Lentz, Newton & Co.

HOUSTON 2, TEXAS

Toronto—-Matthews & Co.
any

of them)

Mrs.

Corporation,

Boston;

Teletype HO 261

AT wood 1427

I

Volume 177

(2217)

Number 5222... The Commercial and Financial Chronicle

UNDERWRITERS

DISTRIBUTORS

•

33

DEALERS

•

TEXAS
•

Municipal Bonds

•

Corporate Securities

Members Midwest Stock Exchange
TELEPHONE CA-9944

(standing) Amory Parker, The Parker Corporation, Boston; Earl G. Fridley, Fridley & Hess, Houston;
Gene A. Frantz, William Blair & Company, Chicago; (seated) J. Denny May, The Parker Corporation,
Boston;

Kenneth

Drummond,

Calvin

Securities Dealers,

Bullock,

St.

Louis;

Paul

J.

Fagan,

Association

National

TELETYPE HO-395

of

Dallas; R. N. Eddieman, Eddleman-Pollok Co., Houston

BUILDING

NATIONAL BANK

CITY

HOUSTON

2, TEXAS

One of the Lone Star State's Oldest
UNDERWRITERS
DISTRIBUTORS
DEALERS

Texas

Municipal Securities

Unlisted Corporate

Stocks & Bonds

Dining in the shade

J. R. PHILLIPS INVESTMENT CO.
State National
Phone:

Bldg., Houston 2, Texas

CHarter 2773

Bell

•

Established

Teletype HO 26

1927

ALL TEXAS MUNICIPALS
Dancing under the stars

Specializing in
OF

DIRECTORY

PUBLIC
AND

STOCK and BOND NOOSES

REVENUE

SPECIAL

ISSUES

SITUATIONS

"Security Dealers of North America"

UNDERWRITERS

—

DISTRIBUTORS

—

DEALERS
A

1,400

page

listings

covering

Canadian

TEXAS

CORPORATION

SECURITIES

Firm

name

Street

of

of

Address,

of

Exchange

Phone




city

Mem¬

ENTER

Park

Natural Gas Securities

N.A.S.D.)

—

Phone

Connec¬

m

ROSTER

which

they

valuable

all

Of

are

firm!

located

ii

feature.

ALAMO

Telephone;
Garfield

SAN

2361

fabrikoid—$12

YOUR ORDER

0. SEIBERT

Place

Lentz, Newton & Co.

Arrangements

Clearance

in durable limp

HERBERT
25

Name»

Systems—Teletype Numbers—

another

BLDG.

Teletype HO 339

Corporate and Municipal Securities

Clas*

Association

and

(including

ALPHABETICAL

showing

Charter 3569

&

Officers.

or

Numbers—Private

tions—Wire

TEXAS

Offic«

Post

Business

of

Partners

Correspondents

Bound

including

Numbers

Character

berships

An

Dealers

Distributors

Underwriters

established

date

Department Heads

Stock

HOUSTON 2,

and

Securities Handled

Names

PIONEER AMERICAN INS.

arranged

are

business Is eon

under which

and

District

General

Shawell & Company

Listings

geographically
and
alphabetically,
comprehensively detailed:

are

ducted

MUNICIPAL BONDS

book
containing
7,90 0
all United States and

cities.

New

&

TODAY

CO., INC.

York 7,

REctor 2-9570

N. Y

Direct
New York

Houston

-

-

Chicago

-

and Connecting

Los Angeles

New Orleans

-

NATIONAL

BUILDING

ANTONIO 5, TEXAS

-

Pittsburgh

Cleveland
-

-

Teletype:
SA 45

& SA

104

Wires to:

Denver

Harrisburg

-

-

Dallas

Kansas City

El Paso

-

-

Detroit

-

-

St. Louis

Toronto

34

(2218)

The Commercial and Financial

Chronicle... Thursday, May 21, 1$53

b0H°S

rtPAL

B0NDS
C

crOCKS

«

STO

UHUSTED

GHAS. B. WHITE & GO.

John Rauscher, Jr., Rauscher, Pierce & Co.,
Dallas; Mrs. John Rauscher; T. H. Dunn, Southwestern
Securities Company, Midland, Tex.; Mr. & Mrs. Hugh
Bradford, Southwestern Securities Company, Dallas

Rusk Building
HOUSTON 2,
Bell

TEXAS
CHarter

Teletype

HO

7643

322

TEXAS SECURITIES
All Markets
Municipal—Public Utility—Industrial
Bank—Insurance
We

epecialize in all Texas securities and due to wide
large investor contacts can usually furnish
prompt bids and offerings on large blocks or odd lots

dealer and

Arthur

Pertinent information furnished

on

any

Texas

E.

Corporation,

security to responsible inquirers.

Goodwin, Jr., Rowles,
San Antonio; W. E.

Winston & Co., Houston; W. Wallace Payne, First of Texas
Knickerbocker, McClung <fi Knickerbocker, Houston; Charles E.

Kimball, Distributors Group, Incorporated, Dallas; Robert Baker, Rowles,

Winston & Co.,
Houston; Arthur C. McCall, Alester G. Furman Co., Greenville, S. C.

S.». Christie & Co.
Estd.

1915

First National Bank

Bldg., Houston 2

Bell Teletypes

Corporate—HO 332

Telephone

Municipal—-HO 333

PReston 1274
A

Specializing in Retail Distribution of

TEXAS SECURITIES
OVER THE COUNTER STOCKS & BONDS
AND

MUTUAL FUNDS

SCHMITT, BERRY & CO.
Incorporated
FIRST

NATIONAL

BANK

HOUSTON

Hugh D. Dunlap, Binford-Dunlap, Inc., Dallas; Mr. & Mrs. John P.
Henderson, M. E. Allison & Co.,
Inc., San Antonio; Brud Smith, Texas Bond Reporter, Dallas; C. Willard
Houser, American National
Bank, Austin; Ed R. L. Wroe, Jr., American National Bank, Austin; J. Marvin Moreland,
Rotan, Mosle
and Moreland, Galveston;
F. Vincent Reilly, Commercial & Financial Chronicle, New York
City

BUILDING

2, TEXAS

Bell Teletype HO 394

Telephone—CApitol 9767

TEXAS* FUND
A Mutual Fund Investing: in the

Securities

of

prospectus may

the

Southwest.

be obtained from

investment dealer

your

or

BRADSCHAMP & CO.
General Distributors
o-

'

Union National Bank Bldg:., Houston 2, Texas

Mrs. Milton Halpern
(Rauscher, Pierce & Co., Inc.), San Antonio; Mrs. Francis Abshire (J. R. Phillips
Company, Incorporated), Houston; Byron J. Sayre, John Nuveen & Co.,
Chicago; Mrs.
(Rowles, Winston & Co.), Houston; Mrs. James W. Lain (Rot an, Mosle and
Moreland),
Galveston; Mrs. Byron Sayre; (in front) Mrs. James Bayless (Rauscher, Pierce &

Investment

Robert Baker

Telephone: Preston 0211




Teletype: HO-566

Mrs. John

Co., Inc.), Houston;
Rauscher, Jr. (Rauscher, Pierce & Co.), Dallas; Mrs. Hugh Bradford (Southwestern Securi~
ties
Company), Dallas; Mrs. Douglas Johnston (Fridley & Hess), Houston

Volume 177

Number 5222

...

The Commercial and Financial Chronicle

(2219)

Bull

The

Continued,

from

The

6

page

The Problem oi

works

out, and the facilities it
guarantees to meet the needs. You
that the desire of the

sure

will have to

close

reduce its operational activities as

possible, limiting them to
supporting and supple¬

mental

programs.

The Wheat Crop Problem

The members of this Association

have

a particular interest in
grain,
especially wheat. As you know,
face some very definite prob¬
lems with this crop at the present

we

time.
In

spite of

weather

some

fall, the total
winter

and

adverse

very

this general

in

1953

last

area

crop

both

—

spring wheat—is

now

estimated by the Bureau of Agri¬
cultural Economics at a little more
than

billion bushels.

one

Add the

expected carry-over of about 575
million bushels of old wheat on

July 1, and
of around

million

have

we

bushels

for

the

1953-54

marketing year. That is a lot of
wheat,
possibly
exceeding
the
highest former total supply, back
in

reason

not

were

We

near-record crop of
billion three hundred

a

one

bushels

Exports

wheat in

of

1952.

during the current

have fallen off

million

year

sharply—about 150

bushels

total. These

below

last

the main

are

year's

reasons

for the

big carry-over this year.
Exports are, of course, the most

variable
mand

factor

in

record,

bushels.

was

more

Most

wheat

World

1952

or

the

in

situation.

of wheat
on

bushels.

the wheat

If

agree¬

operative, United

hand

the

when

coming in

new
crop starts
July 1, 1954, would

on

be

of

de¬

production
the

than 7 billion

the

wheat

Wheat

Agreement, with
government picking up the

tab for the difference between the

domestic

price

the

and

wheat

agreement price.
status of

is

very

the

wheat

important

agree¬

in

any

appraisal of probable exports dur¬
the coming year. The old
agreement runs out July 31, after

ing

being in effect for four
new

agreement, to

that

And

the

is

briefly,

That,

wheat situation

is

as

of

prospect

the

we

why

over-all
it

see

now.

facing

are

we

controls on the
allotments and

1954 crop—acreage

can

ing" program under which farm¬

production and
probabilities. The over¬

fect if necessary.
The time schedule is very close.
The law requires a decision and

proclamation

the

of

use

in¬

land

have

We

announced

is

one

problem for grain,
wheat

which

harvest

in

especially for
coming to

will
few

a

immediate

very

be

short

weeks.

I

can

on

1952-crop
Most

year.

the

their

extend

ers

There

loans

another

stays on or near

and

anyway,

hopeful that

CCC

for

corn

corn

farm

"reseal-

a

we

are

producers

many corn

refer to the handling of this

year's
top of the heavy reserves
already on hand. The Commodity

will take advantage of this special

crop, on

program to

Credit

now,

Corporation

is

just

start¬

cribs

hold loan

corn

bins where

and

in the

is stored

it

thus relieving the pressure
outside storage facilities which

on

approve
proclaimed quotas, the
price support level for that year's

be

the

1954

of interest.

wheat

If

quotas for
are

crop

pro¬

stocks
on
April
1
have
been
higher than this year only once:
corn stocks only three
times, and
then by narrow margins.
The CCC

The

million

100
its

still

bushels

inventory.

than

has

In

wheat

of

addition,

million

450

than

more

bushels

in

more

of

the

claimed, they will be determined 1952 crop are under price support.
in accordance with the following Under
present conditions, it seems
legislative provisions which dif¬ likely that we will have to take
fer from

the formula

used in

ar¬

the

over

bulk

of this big

take

to

and

over

operate

these facilities under agreements.
We

want

the

experience of warehouse and

grain

Wheat Holdings

CCC

terests

men

ations

have

to

benefit

the

of

in handling these oper¬
This will be

efficiently.

policy with
regard to the
operation of all emergency facili¬
ties, from the Hudson River ships
our

to

possible aeroplane hangar in

a

Texas.
The Resale Price Policy

supply.

Just

word

a

about

one

two

or

riving at the supply

marketing quotas.
Controls, the Lesser of Two Evils
have

I

As

already

mentioned,
nobody likes mandatory controls.
Under
present circumstances,
however, they would probably be
the

of

lesser

with

and

controls,

evils.

two

Without

mandatory
parity,
levels

support at 90% of
production
might
reach
price

which would put us

in

an

As

administrative

tle

discretion

re¬

years.

heavy supply in relation to

very

demand.

market

course of
clearly. Marketing
quotas are mandatorv under such
conditions, unless thev are sus¬

pended because of national emer¬
gency.
And acreage allotments
are

supposed to be set

unless

the

A

Here is

a

agreement,
which had already been signed by
the four exporting countries (Aus¬
tralia, Canada, France and the
United
States),
has
now
been
signed by all but one of the im¬

porting countries. The

country
which has not yet signed is a very
important
one,
and
signatures
must be followed by definite rati¬
fication by the countries involved,
but prospects for continued effec¬
one

tive operation of the international

agreement

can

be

regarded

as

good.

"normal

pet

this

operations

agreement for

under

the




First,

figure

must

we

representing

sunolv" of wheat.

bv

adding

the

We

domestic
mar¬

keting year (1952-53)

to the esti¬
mated exports
r the next mar¬
keting year (1953-541.
Then to
this

total

lowance

we

for

add

15%

carryover

as

an

al¬

reserves.

The resulting total is the "normal

pimply"

as

defined in the legisla¬

been asked about the Government

determine

This is

exports.
the

To determine the

in

sumed

ing

previous

con¬

State*

dur¬

marketing

ten

years

(1943-52). and

of

during the same
adjusted for trends.

the average

exports

years,

When

have

we

this

ten-year-

figure, for both domestic
and exports, we add
30%. This gives us the over-all
target we are aiming at for total
supplies for the marketing year
beginning July 1, 1954. Now to
figure out the production needed
in 1954, we must deduct the ex¬
pected carryover of old wheat
which will be on hand on July 1.
The

1954.

yields,

"quota level"

that

to

years.

come

we

I

marketing

a

reduc¬

acres

m

compared with recent
There is a legislative limit

million

are

as

ex¬

much

75 million bushels.

as

While

thing
tion,

we are

we

going to do

to

can

this situa¬

ease

first

our

every¬

dependence

of

course
will be on private enter¬
prise—the normal warehouse and
storage facilities of the region.
That is our settled policy, and we
trust and expect that private en¬
terprise will do everything it can
to meet the emergency needs. The
more

the

make it

you

Government

and

rary

unnecessary

take

to

the

steps,

emergency

for

tempo¬

better

will like it.

we

we

toward that figure
to

invoke

will
to

if

con¬

One of the

the

use

prob¬

real
that

Ques¬

wheat

might make of the acres

quotas—we

add

growers

the "normal supply"

fig¬

taken out of wheat.

most.

And

remember that there is

a

we

must

possibil¬

sider
other

to

make

times which will be

jectives.

That

turbance

means as

possible

as

little dis¬

of

normal

markets, and the avoidance of

ac¬

tion which would tend to "break"

prices.
With

few

exceptions,

CCC

is

required by law to sell commodi¬
ties

which

be

can

stored

indef¬

initely, such as wheat and cotton,
prices no lower than 5% above
the
current
price-support level,
plus reasonable carrying charges.
It is also required to "give con¬
sideration to the establishing of
such
policies
with
respect
to

at

prices, terms, and conditions
determines will not

We of

wh1

in the Hudson
help

the

ease

doing, and

course are

to

exports

space

There
the

do,

all

going

can

we

so

as

a

limitations

are

for

we

for

must

on

con¬

of
which will be coming
little later.

storage

The Kan¬

sas-Nebraska-Colorado region, for

as

it

discourage or
deter
manufacturers, processors,
and dealers from
acquiring and
carrying

inventories

normal

of

the

commodity of the current
crop."
The exceptions to these limita¬
tions cover export sales, sales of

commodities

threatened

terioration, and

some

with

de¬

other minor

provisions.
The

where it is needed

needs

crops

to harvest

do¬

consistent with price-support ob¬

for

continue

provide

those

at

is

those 'quantities

in

the

T^i*

keep

and

effort

sales

fleet

region—roughly east of Chi¬

cago.

The

mestic

from

50

storage situation in the northeast¬
ern

in disposing of CCC
grain. In general, that
pretty well outlined by
legislative provisions, as well as
bv the dictates of practical oper¬
of

is

ships

of

emergency storage
River.

policy

stocks

nolicv

Commission's

use

such movement

not point out the
be

the

Maritime

belo"'

for next year.

will

may

by

acreage

reauired

need

Kansas

to
"diic^ clear space at and near ports. We
fdiotmeut will arrange
for
movement of
might ^ave to stocks witMn the country, to help

acres,

but

go.

down

tions

pro¬

the

on

as

national

cannot

quotas

allotments

would call for
tion of many millions of

lems here.

Agriculturp U ronuired to

marketing

acreage

55

ceed the 1949 vo^me

for

wheat,

and

offices

commodity

sales

ation.

Dallas

our

adminis¬

areas

marketing
We are, however,, already tak¬
allotment ing preliminary action to be
ready
reauired, a> to do our full part in
meeting de¬
produce the velopments.
We have
arranged

1954 crop

of

City

by

the

the

1954

the possible figures in detail, it is

the

tered

in

that

acreage

Without attempting to work out

and

take-over

Colorado.

and

estimated

the

The

obvious

have

amount

would be the acreage
average

will

Nebraska

men

resulting

represent
quota.

Our

ten

consumption

of

ure.

the basis of

on

the United

the

—the level at which the Secretary

to

"normal

a

yearly average of wheat

trols

tion.

a$ 20%

year

exemption

eonsumption for th« current

claim

Assuming
effective

a

Kansas,

will

we

year's" domestic consumption and

the way the legislative

work:

this

general questions related to grain
and
storage operations.
I have

quota.

determine

that

every year,

emergency

applies.
provisions

are

controlling

very

for three

run

The

legislation spells out the
action

suoport wheat is in three States—

level which
proclamation. First,

average

matter of fact, there is lit¬

a

More than half of this 1952 price-

impos¬

sible situation.

has been negotiated. Latest

reports

space

volved.

will

quota controls under situations of

years,

south, if

move

conservation

both

on

somewhat

face.

largest

has moved under the Inter¬

national

The

to

be found.

larger crop drops to 50% of parity.
than this year — possibly above
I don't want to bore you with
600 million
bushels.
Add a big too much
detail, but there is one
1954 crop, and it is easy to see more
point
about the possible
the surplus situation we might
marketing quotas which I think
apparently

ported from the United States this

ment

stocks from that region may

have

rather

garding the Question of marketing

the

some

marketing quotas ing the "take over" period on 1952 on
sharply unless by July 1 (and July 15 for acreage
be
needed for wheat
and
loan wheat, and the question of will
some other mechanism were sub¬
allotments, which can be in effect storage is right before us.
other crops.
stituted to provide for continued without
We are also surveying all pos¬
marketing
quotas).
If
Frankly, we are worried about
shipments of United States wheat quotas are
sible emergency facilities, such as
proclaimed, a referen¬
grain storage this year. The sit¬
on the world market.
dum among all wheat producers
idle warehouses and hangars of
uation may in general be almost
On the basis of a 300-million must be held not later than July
the military services in this gen¬
as tough as it was in 1949, and it
25.
As you know, growers must
export this coming year, and nor¬
eral region.
And to the extent
may be even worse in some spots.
mal domestic disappearance a lit¬ approve quotas by at least a twothat we have to resort to such
Stocks of corn and wheat in all
tle short of 700 million bushels, thirds majority before they can
emergency facilities, we want to
positions are very high.
Wheat
the carryover of old wheat
on be put into effect.
If they fail to
arrange for normal warehouse in¬
off

ex¬

year

also have to
and market¬

may

be under production

calls for quota

had

million

ity that cotton

ing controls for 1954. There will
be
related .questions
of
sound

market

1942.

nearly

proclaimed

all situation is such, however, that
it is not safe to delay the prelim¬

exports could be expected

fall

to

total supply

a

billion six hundred

one

any

States

million

300

to

ment

as

be

ahead, it would be reasonable to inary steps to
prepare the way to
expect exports for 1953-54 to run put quotas and allotments into ef¬
for

essential

mar¬

available

Surplus

present Administration will be to
much

whether

on

has not yet been made, and it will
not be until later information is

Farm Production
be

decision

Acuna

keting quotas for the 1954 wheat
crop

can

Ring—Ciudad

35

of

policy of

Agriculture is

this
can

legislative
be

will

assured

be

ment
way

instance, lies west of very heavy verse
corn
country.
That means that tions.

made

intent.
that

to

holdings

the Department
consistent with

handle

in

Industry
effort

every

the

Govern¬

soundest

possible, with the least ad¬
impact on normal opera¬

36

The Commercial and Financial Chronicle

(2220)

under the

Continued from

first page

guise of normal educa¬

It is contended that both by

tion.

indirection and direction untruths

taught, and many important
things left untaught or insuffici¬

are

On Academic Freedom

ently taught, the purpose being to
God and that religion is a manesting but I shall not attempt to
answer them in detail.
I shall con¬ made superstitution without basis
sider the term Academic Freedom in fact and truth would find him¬

of

descriptive

as

extra-legal

an

principle pertaining to the profes¬
sion of teaching which many per¬
sons believe should be recognized
in the interest of society and for
the
advancement of learning.
I

standing

ent in the

of

case

one

who began

only a discussion of the teaching that theft is right and
principle itself as presently under proper providing the thief steals
discussion, its possible scope and only from one more wealthy than
he, or that marriage is an outworn
clear limitations.
and useless institution and should

be

disregarded by his students, or

the indepen¬ that polygamy should be practiced
.
dence of the teacher is the objec¬ by them.
of

Preservation

tive sought by

the

to

herence

those who urge ad¬
principle of Aca¬
contended

is

It

Freedom.

that

dent

will

he

pupil

either

of a collectivized
state denying individual liberties
now
enjoyed or an unsuspecting
exponent

an

Some may protest that these are
cases.
Such protest will

extreme

cited

student

in

life

for

regimented

a

collectivist state than in teach¬

or

believed to form the groundwork

that

should

there

be

to

freedom

valid.

have

1

considered

absolute.

as

of

untruth,
nor
immorality, which I wish to emphasize is that
criminal, nor unlawful prac¬ at some point there is a line or
Nor have I heard it con¬ limit beyond which the principle
tended that the principle should cannot be deemed to apply and
confer upon licensed teachers the that the determination of that line
right to teach in institutions of cannot be left to the sole judg¬
learning without invitation from ment of the challenged teacher.
proper authority, nor, once em¬ If the judgment of the teacher is

educational system.

an

these

sence

That

It will

the

are

be clear that

the character outlined

nor

in

ployed,
than

other controlling, the freedom is abso¬

those

covered by the terms lute.
employment.
That the

their

of

subjects

teach

to

doctrine

does

to' the

tion

extend

not

unlearned

protec¬
incom¬

or

petent must be granted since such
freedom would

strike at the very

of education. As to the
latter suggestion no one has more
sedulously adhered to it than the
profession itself with its growing
sharp emphasis upon academic de¬
grees as an essential qualification
for teaching positions.
Perhaps by now one may feel
that I am unnecessarily consuming
purpose

the

reader's

time

in setting

own

well

as

as

my

down indisputable

'

principle

dom

cannot

specific

invoked,

Free¬

in

and

who shall determine

not that line has been

or

crossed?

which

Academic

be

cases

whether

Nothing could be

more

simple than to lay it down as a
corollary of the principle of Aca¬
demic

Freedom

that

it

does

not

shield

the teaching of untruth or
of vice or of crime or of lawless¬
ness

of

or

legion in

immorality

or of irrereligious institution of
It would be quite as

a

learning.

simple to announce that it does
perti¬
not protect the
incompetent or in¬
nent to a discussion of the prin¬
dolent nor one guilty of immoral
ciple of Academic Freedom.
I

premises

have

premises

or

called

things

not

attention

only

because

these

to

mature

or

flection discloses each of them

to

be germane to and of importance
in any discussion of this principle.

This I shall make clear.

criminal conduct.

Crimes

re¬

of

another

are

and

those

property of
defined by law. They
or

are
the so-called natural crimes
and their definition is the
prerog¬
ative of the

state, as are indict¬
One may experience some dif¬
ficulty with the suggestion, seem¬ ment, trial, and punishment. Little
ingly apparent, that the principle difficulty will be encountered in
of

Academic

the

protect
What

is

truth?

Freedom

teaching

untruth?

These

does

of

What

is

age-old

are

not

untruth.
the

ques¬

tions and do not admit of catego¬
rical answer. They have torment¬
ed

the

minds of

first

began

Men

have

search for
endured

ture

and

that

which

true

since

men

death

than

believed

affirm that which

or

lieved to be untrue.

ficulty in

truth.

physical

rather

they

the

men

is

truth

teacher that

an

which presents

It

is

present

Academic Freedom has centered
about the teaching of political and

scholarship
spect

to

quire

that,

censed

specific
once

teached

individuals

employed,

becomes

judge of the truth

or

re¬

li¬

a

the

sole

propriety of

of example,
professor of Geography
his

way

conviction

and

of

announce

do hold personal
opinions respect¬
ing such matters. They rightfully

to

become members of political par¬

should

a

purpose

Normal

few either within

without academic circles would

his

under

Should the head of the

Department
nounce

ory

of

Astronomy

purpose

stands

universe

in

while

volves around it I

sult

would

think
the

I

an¬

his conversion to the the¬

and his

the earth
the

to

protection
principle of Academic

the

Freedom.

claim

am

head

be

the

to teach that
the center of
the

assume
same.

sun

the

re¬
re¬

And

I

safe

of

are

subjects there is diversity
thought and opinion. Teachers,
others, are entitled to and

ties

support

immorality

directly involved. Within limits
in respect to all
political and eco¬

flat, I
or

neither

nomic

henceforth teach that the earth is
presume

nor

Here

like all

that which he teaches?

By

subjects.

in assuming that
the Department of

and

work

and

political

vote

as

activity

such.

on

the

part of the teacher is recognized
as within
the framework of our

democratic

institutions.

It

is

not

activity on the
part of educators that controversy
has arisen.
On the
present
upon

the

teachers

singly

day

or

contrary the
controversy centers
charge
that
certain

and

educators,

in groups,

are

either

systemat¬

ically attacking the framework

of
the government itself
by carefully
calculated courses of political in¬

Religion in either

a state or pri¬
doctrination foreign to the gen¬
school, or any teacher in a erally accepted educational frame¬
religious institution of learning work. This indoctrination they are

vate

who announced his conviction and

purpose to

teach that there is




no

to

as

that

of

considered

so

justify the effort

charged with covertlv adminis¬
tering to those under their charge

well

be

consideration
these

is

swer

in

or

to

give

the

to

questions
the

prior
of

second

if

since

the

affirmative

an¬

there

a

one, or one

who knowingly aids

notoriously associates with such

is entitled of moral right

one,

and principle to teach in public or
private schools is to utter non¬

The

sense.

of

sense

common

man¬

is little need to explore or discuss

kind recoils at the suggestion and

the first.

reason

American

The

public

school

rejects it. Similarly it may
it does to me even greater

seem as

system is conducted at an expend¬ nonsense to suggest that one who,
iture of money and effort which adhering
to
a
hostile
foreign
evidences the importance attached power, has for himself renounced

The fiscal and

form.

administra¬ Freedom. High academic authority
public educa¬ has, however, already pronounced
tion, including the licensing of judgment against them. But much
teachers, is set up and maintained of the challenged teaching comes
mechanism

tive

tion, to curtail it, or to abandon cated to the remaking of our social
it entirely. This being true it is and economic order along collec¬
supposed that it is with¬ tivist lines; that by their affirma¬
to define its scope, tions, omissions, and methods such
supervise its method, and deter¬ persons purposefully, either open¬
mine that which may or may not ly or covertly, engage in political

not to be
out

power

be

teach

school

stances

systems,

and

second,

the

introduction into schools and col¬

leges of

system of controversial

a

certainly

deemed

great portion of the people

a

taught, who

teachers' licenses

It will he
observed that 1 speak now of the

indoctrination
often

in

the

classroom

more

effectively than those
who acknowledge themselves to
be
communists; that they seek to
influence not only those whom
they teach
but
their
fellow

of the State and not of the
In respect teachers.
Is it consistent with
privately endowed schools I

power

wisdom of its exercise.
to

entertain

propriety of the making of
charges by laymen has been
challenged
by
some
educators.
There are, I think, two sufficient

be

may

granted or withdrawn.

to be both undesirable and harm¬

The

may or may not
under
what
circum¬

and

ful.

such

of

by statutory enactment. It is with¬ from persons who are neither ad¬
in the power of the State to en¬ mitted nor proven communists. It is
large the field of public educa¬ charged that these persons are dedi¬

ing the nation's public and private

that

doubt

no

those

in

owing

to

country

the

duty
students

and

authority under lawful articles of alike for those in authority in in¬
incorporation or bylaws possess stitutions of learning to decline to
powers and duties similar to those investigate such charges because
of the State.

of difficulties anticipated in de¬
prescribe a method of ex¬ termining their truth? Or because
the practice of investigation may
charges themselves indicate the ercising its power over public
of unjust
importance of a determination of education is also the prerogative lead to the lodging
their truth or falsity, and if true of the State. It may provide for charges against the innocent?
I anticipate that the conclusions
its exercise either through bodies
the possibility of justification un¬
der
the
principle of Academic of educators or of non-educators. of many will be in the negative
Freedom. The occupation or pro¬ It may set up rules for their pro¬ and so give consideration to some
fession of the complainant throws cedure and practice and limit or of those facts and principles which
Should seem pertinent to such examina¬
no
light upon these questions. enlarge their authority.
the
Second
people
become
dissatisfied tions.
and perhaps
of greater
importance is the fact that to with the methods or manners of
VIII

this

to

answers

contention.

any citizen
to make them if he believes them

true is

to

challenge the principle
democracy itself. Denunciation

of

of

those

neither

who

On

as

tion

meet

to

freedom

it to

of

disinclina¬

a

objectively

Those

who

upon

demand

expression for them¬

should be the last to

others.

humblest

to

contrary it
the charge

give

it

tends

nor

indicating

merits.

charge

a

the

to

support

selves

it

answers

disprove it.
might tend

its

make

In

deny

democracy the

a

is presumed to
right to criticize or
challenge the conduct of those in
person

the

possess

And

to

To

The

these boards
sults

education of his children.
an

And to

American
more

tection

citizen nothing
important than the

and

administration

re¬

(a) Perhaps it will not seem
in wholly without importance that
and grave misconduct on the part of
or

investigations,

the

its

abolish them
certain individual
All this is well

discretion,

proceed

anew.

State

may

here

known to you
as

can

a

ing

wisdom.

with

do

to

It

has

been

friendly

proven.

convicted

juries

educators

other

Some

have

Some have

willful

of

respecting

both
coun¬

per¬

their

conduct.

oath

declared

under

If power
that
truthful
answers
to
pro¬
unwisely exercised by govern¬
ment that is one of the misfor¬ pounded questions would incrimi¬

only to do with power.
is

tunes of mankind,

unbappilv
ered

the human

having

nate
race

yet discov¬

as

device for assuring itself

no

wise

or

I

come

whether

unwise

or

in

I

offer

need

argument,

no

to

sustain the natural right and duty
of

Some

have

of

while
fled

singly

the exercise of these powers.

tanta¬

having
to

are

under

trial

awaiting

information

wise

is

declarations

criminal conduct. Some

charges

to consideration of

now

it

them,

mount to confession of unrevealed

indictment

leadership.

competent
vn

pro¬

safeguarding of his

in

and

and I recite it only
tries has been
part of the structure leading

to that which follows. It has noth¬

nothing
is of greater importance than the

be

the announced

or

their

of

parent

a

upon

passed

enemy

vital

agents.

under

investigation
Others
through
organized

the

and

country.

of educators have openly

groups

announced their purpose to stimu¬
late class bias and hatreds within

legitimate government to pro¬
the minds of pupils and students
itself against violent over¬
as a groundwork for the establish¬
to
protect " its
citizens
contention that those who make throw;
ment of a new political and social
these charges are either enemies against mass murder or against
order. This proves nothing against
the terrorization and enslavement
of the schools or of education.
others. It has importance as back¬
of the many by the few. I speak
Search for the truth

personal liberty!

given

I have therefore

slight consideration to the

and

in

est

education

cannot

inter¬

said

be

a

tect

of

this

because

it

is

around

the

question of Communist totalitari¬
prerogative of the
anism that the present day discus¬
professional educator. Those mem¬

to

be

the sole

bers of

democratic

a

society whose

children

are

interest

in education

right

to

taught have

explore
And

purposes.

its
to

a

and

natural
clear

a

trends

and

that

suggest

none

in respect to such

will

It

and sacrifice involved in support¬

oower.

surprising that the
controversy respecting

economic

re¬

difficulty.

not

natural crimes

competency in

issue is presented

IV

in respect to specific questions or
or

teacher

a

fitness of that which

or

he teaches, the character of that
which he teaches, or in
respect to
his competency as
a
scholar or

be

they be¬

is where

challenged, either in respect to

the truth

deny
to

the

It

cases.

tor¬

But does dif¬

determining

such

twofold

are

challenge the right of

violence

against the rights

which is

essential

by

line beyond

of

education

es¬

charges of

First, neglect

indoctrination,

III

What is the
the

nature:

In

charges.

teach
tices.

a

Freedom?

Acaaemic

purposes

ing him those subjects commonly

be

cause,

lawless acts. To contend that such

protection of the principle of

the principle of Academic Free-*
and meth¬ to it by the mass of the people.
dom may claim its protection.
of which are They are the parents of those
Our concern is not with these
political and not educational in taught. They bear the financial
There are educators who
the sense of that term as hereto¬ burden. They acquiesce in the ex¬ cases.
fore understood. That they are, in emption from taxation of private publicly profess to believe that
schools in recognition of the im¬ such rights should be recognized
short, subverting education, being
more interested
in preparing the portance of the function they per¬ under the principle of Academic

the

ods

be¬

that society is best served if the
teacher is unshackled both in his

teaches the

the

or

desirability of such conduct is
guilty of inciting criminal and

barked upon processes

being extreme, they more
readily demonstrate that the free¬
search for the truth and in his ex¬ dom embraced within the princi¬
pression of it. But in so far as I ple of Academic Freedom, even
have observed it is not contended within academic circles, cannot be

demic

them

beyond the true boundaries of the
objective academic world and em¬

One who advocates

charge—in other words, is there
truth in the charge?
Second:
If
true, should such
teaching be considered as within

stu¬

or

become

quickly
deposed notwith¬
his claim to protection
under the principle of Academic victim of those who seek to create
Freedom.
And you will agree, I such a state. In a word the charge
think, that it would be no differ¬ is that these teachers have passed
self

propose

n

the

indoctrinate

so

Thursday, May 21, 1953

...

are

such

subjects outside the profes¬
teaching is to reflect seri¬

competent to

pass

upon

sion of

ously

upon

the

output

of

sions of Academic
in

reality turned and these three
things are part and parcel of that
system of totalitarianism. With no
effort

at

it

concealment

is

ac¬

knowledged by the proponents
and sympathizers with Communist
totalitarianism that such
of

society

that the first

profession.

Freedom have

to

the

can

be

instance
first

two

VI

a

system

ground in any consideration of the
present controversy. Because of it
one

knows that there exists

some

strange moral quality capable of
penetrating even the
academic
world and

conduct

the

impelling to subversive

persons

education

of

entrusted
the

with

young

or

immature. That is its significance.

(b)

Of

greater

importance

is

actual appraisal of the challenged

established in teaching and writing. What prin¬
only by resort ciples should control such apprai¬
practices

and

sal

I think you will feel that care¬

maintained, in its formative years ful distinctions must be drawn be¬
the charge that in at least, only by the third. Each tween that taught as fact and that
many of our schools and univer¬ is accordingly justified upon the expressed as opinion. As example,
sities political indoctrination has
principle that the end justifies the should a teacher of good character
been quietly introduced into the means.
and repute, pointing out his rea¬
educational process often to the
One who conspires to overthrow sons, say to his students that he
neglect of other matters hereto¬ his
legitimate
government
by considered a communist state es¬
In respect to

fore

deemed

essential

two

ques¬

tions naturally arise.

First:

Is

there

basis

force

or

murder
for

the

low

violence
or

or

to

effect the

enslavement of his fel¬

citizens is guilty of a crime.

tablished
erned

by consent of the gov¬
of society I

the ideal form

should have little

quarrel with his

claim

to

the

under

protection

by

violence

desirable

teach

indirection

or

of such

establishment

the

that

admissible,

was

or

justifiable since the
end m itself .was good, I should
consider him as advocating crimior

nrinHnfp6

„Tr

E?,tinn

S? he teach
°f
should

cite

I

this

by

ot

parture from established educational standards is justified by

government is obliged to respect,
or
that the Russian government

tention that other things are more

has

0f

ual

or

has

unswervingly

certain

educators

upon

the

con-

important than mastering the art

treaty

its

met

practices being in a
self-perpetuating. Basic
become permanent only

ferent order

with acquiescence at the highest
levels of authority. Thus in the
long run in institutions of learning, public or private, that will
be taught which conforms to the
beliefs and sense of fitness of
those in power. This is not because Academic Freedom is directly or willfully denied. It is

turmoil and

and

measure

changes

he

event

established.

In

could

protection under
Academic Freethese particular ex-

the

claim

reading,

this

no

principle of

dom

I

use

as

instance

for

sup-

rather

because I have observed
items concerning such state-

lieve

turn out

ing the reading
We

news

Should

ments

As

an

ing

a

instance, a Professor holdhigh position in an American
University, in a book written in
English for the guidance of American readers, speaks of the spread
of "American democracy" and "of
the Soviet form
of democracy."
The suggestion made

this

belief

freshmen

be

yielded
principle

in

it is true that in the

Hn

ferences

teaching of to

subject

Academic
the

Freedom

teacher

in

that

which he
true.

the

right

respect
or

Do

demand

to

the

to

for

spect

teach

stand

they

also

such

Such difin

both

respect

method

and

the

demand

I would

I

do

not

differences

subject controversies

his superior believes

important?
right
does

rnore

democracy

within

within depart-

matter

them

to

to

be

our

re-

undersuch

and

concern

do nothing to discourage

them

The questions with which we are

principle.

of

exist

do

concerned

"form

nvict

anH

even

assigned subject, proponents of There is vigorous argument in

an

in English to

meaning. The Russian government

pHcp

nnt

faculties and

of ments would be untrue

'

right, in the name of Academic
readers that the Rus- Freedom, to slight or ignore subdictatorship, in which politi- jects, ordinarily considered basic
cal parties and political discussion jn academic
work, as for example
are prohibited,
is a "form of de- reading,
writing,
and
spelling,
mocracy
is
false. The English while emphasizing or susbtituting
word "democracy' has a definite other
subjects deemed by them
a

groups

.

of educators at-

of
no
such
principle
in
law.
You would not look with
favor
upon
such
a
principle
if advocated. But I apprehend that

will receive without favor the
that
persons
whofind n0 protection in the eyes of
associate themselves
put>iic under the principle of with subversive organizations or
Academic Freedom. I believe they consort with espionage agents of

To say that differences of opininn

sian

not

political

of

thieves or of murder because he
had associated with a murderer..
In
a
word
you
will
know

tempt religious instruction along
denominational lines they would

message,

American

is

scene

to enjoy a
schools thus

bawling controversy
quiet places of in-

than

Should

fitness of those responsible for
their selection, retention, and advancement. The tightness of this
natural control is evidenced by
the fact that however earnest his
beliefs and however important his
Freedom to teach them, unless invited to teach by someone in authority a certified teacher will
remain without classes. Academic

required of col-

universitv

or

having been made by due respect to the
University Professors. Academic Freedom?

as

not

The

struction and learning.

to teach in educational
institutions.
graduates capable of doX

doctrine, that they bethat
high
schools should

new

amples

American

the

become

obligations, I should consider him pression of individualism and of
guilty of teaching untruth. Wheth- ideas of comparative excellence,
er
this teaching was purposeful as well as preparation for life in
or not would in my mind be ima regimented or even a collectivmaterial
since if purposeful his ist state.
Freedom,
even
by
those
most
guilt of willfully teaching untruth
But let us suppose, as I for one zealous in its advocacy, is not conwould be plain, if not purposeful; do
suppose,
that the people at sidered to embrace the right of
his incompetency would be clearly large are not prepared to
yield to the uninvited, however true his
either

are

privilege?

like

are

are

both factual and of

The

questions of

fact

two: Are long established fun-

damentals

of

education

being

quietly discarded or neglected in
our
common
or
preparatory
schools?
Has there been intro-

this

if

XI
A

th

t

f

t

be

should

^fair iLuirv iudt

Its claims to

principle

^

+hp

Tn

J*

mntrnwrw

t

anH

^

ability to read. This
may seem to you a novel interpretation of a principle said to
be demanded in the interest of

present system of individual free-

dom and free enterprise and substitute another form of political
and social organization, collectivthan our own. That also is a false Academic learning. If so, I think ist in character, deemed desirable
statement.
The
Russian
Bill of no one will not believe such ne- by certain educators?
The quesRights

exists

only

tection to
well

no

known

one,

to

a

paper,

upon

From the government

it gives pro-

fact perfectly

informed

both within Russia and

persons

without,

gleet to fall within the protection
of
the
principle of Academic
Freedom.
I cite this as one example of
omission charged against a certain

school of present day educators.
Others, notably in the fields of
Spelling, Mathematics, and Geoggiven to classes in adult education raphy, win occur to you since
by a University Professor. In these some
startling information has
several news accounts this Profes- been publicly offered in support
sor
was
reported to have stated of such charges.
Again since the close of the war

I have
read

more

that the

or

one

of

occasion

thaJ; the protective mantle of

y°u

never

were

denial

no

items.

of

these

news

If

made, these statements
false, and their utterance the
inexcusable since that

more

ernment's

gov-

violation of
numerous treaties and agreements
was and is open and notorious.
repeated

It may seem

_

,

.

R

er^nt rae
.

,

,

e

£ ayts o/argument
cUDDOce

objectivity exUniversity Professors,

staff members are selected and

of

.

.

_

^commended for appointment by

Department heads and Departthe motives which
beads by still higher AuWhatever the
motives it is my y1?;ritynot these heads carebelief that they do not fall within fuljy screen all prospective teachthe protection of the principle of efs,
ascertaining their backwish

of
prompted them.

to learn

more

that

grounds and beliefs as evidenced

principle does not give protection
to the teaching of untruth.

by former writings and teaching?
To suppaw■ that

Academic

Freedom

since

a

rpaunn

m^o doing Uiey

percent

of the Freshmen

now

appearing each year cannot

read

sufficiently well to carry on




.
xn

It is understandable that .some

Thevare

n"ot alon^in

ot teaching, ltiey are not alone in

rePhresentatid"Spither rain7d*bv^UnhioDUv^IdTo"

false.

.I£

shown to have been made. elther
in resPect to our own institutions
or Practices or those of the totalitarian states; or false comparisons
drawn; or words given false
meanings; or open or covert
apologies offered for the crimes
and brutal aggressions of the

falneduby "• UnhaPP"y mach ot
the abuse and many of the
epithets have come from educators whose resentment of criticism
has led them beyond the reason-

If inquiry is met with evasion
and equivocation, with distortion
and misuse of terms apd words or
with abusive criticism of those
directing the inquiry, I think one
will wish to know why,since these
are not the methods of fair and
reasonable men defending prac-

against them or their manner of
practicing their profession. In the
realm of persuasive argument

able confines of academic objectivity and moderation. These, of
all others, should be best equipped
totalitarian dictatorships, I think to make fair and convincing anone will wish to know why.
swer to unfounded charges leveled

have

to you

be^n
Qi

r.

+lf

,

the advantage may well
shift should their adversaries
choose to engage them at that
Ievek
gogue,

specious in character

advanced

against

Two With RenVX. Field

in_

ixcuyA., i teiu
Lrprnmpntni
pdn.
(speclal t0 THE Financial chronicle)
acrfnpipc Ac PYqmnlP it
DENVER, Colo.—Leo G. Arndt
with crmnt LLr
and Rachel Cornwall are with
,
J* ® -.JJ f ..
•
Renyx, Field & Co., Inc.

T7Pcti0af™

rpcripL

they should enjoy pre-eminence,
At the level of exaggerated statement, abuse, and epithet which
are the weapons of the dema-

nrnr-PPrhnixs

pithpr

in

nr

.

should

As for myself, as already indi-

Joins F

I du Pont Co

JOins r. I. CM ront CO.
"n

H"0NICL.E

CHARLOTTE, N. C.—Lewis W.

c0.ulc? be brought against all Barron has become affiliated with
criminal investigation. The doors Francis I. du Pont & Co, Liberty

such charges leveled agapst him.
Not a day pw m which mdividuals a:fter trial ar<e not declared
guiltless. But no one contends that

because of this the investigation
and prosecution of crimes should
be abandoned.
respect to those who would inIt has been protested in the most
troduce into the public school sys- sober manner by well meaning
tems political indoctrination as a persons that oaths should not be
foundation for the creation of a administered to witnesses in such

p# H. Ayres & Son

Neither am I prepared to accept
as
0f validity a similar plea in

new

social

order'

1

^uestion Praceedings since if the witness

neither the right nor propriety of is honest the oath is not required
educators attempting by lawful —if guilty he would lie despite^lt.
means the creation of a new social It
has apparently escaped the
and political order. I would do notice of these persons that the
nothing to interfere with their same argument would apply as
advocacy of a new order in any forcibly to all witnesses and all
proper
f0rum. I decline to ac- accused persons in both civil and
knowledge their claim to the right criminal cases. It also seems to
publicly employed educators to have, escaped their attention that
the classrooms under their the severe penalties for perjury
ckarge
forums
0r
educational are a potent deterrent to the bear^fprns for this ^ purpose I be- ing of false witness.

^vdeUsuch attemptsPto cPonstitllte a

Another suggestion which

one

are

Donald

Burrell, Secretary; and Mildred D.
Getman, Treasurer,
t

E. J. Fountain Opens
E j Fountam has formed E. J.
Fountain & Co with offices at 50
Broad street, New York City, to
engage in the

securities business,

jje was previously with Stroud &

Company, Incorporated and R. A.
Keppler & Co, Inc.

y# J# Dishy Opens
rpookt yn

n

v

ViHnr

t

.BROOKLYNf N. Y. — Victor J.
P.^i7Pcf ^
t iqr^ Fact
bus1ness frc)m oHices at 1985 East
of Investors in

America Company.

think open to suspicion has Mr> Dishy was formerly with
been urged under the newly First investors Corp.
coined name, "Guilt By Association." You will know of no law Charles O. Larson With
which provides punishment for
mip^rcon
Hammill
persons because of their associaonearson, rtammill
tions. You will know of no one
(Special to the financial chronicle)
ever having been put on trial
LA CROSSE Wis.—Charles O.
charged with guilt by association. Larson has become associated
result changes in concept and indoctrination and
a forum for You will know of no court ever with Shearson, Hammill & Co.
belief within the several depart- their advocacy, who will say that having instructed a jury that a Mr. Larson was formerly Resiments of educational institutions those who wish to retain the pres- man might be found guilty of theft dent Manager for Ames, Emerich
are slow of development, old be- ent order or establish some dif- because he had associated with & Co, Inc. and Dayton & Gernon.

petency and proper viewpoint

g

certain

until proof of his actual

suspicion

subversion of . the purpose and
their own yardstick is to forget function of public education. Even
quaintance serving in two sepa- that educational institutions are the suspicion of such practices
rate Universities, one public and staffed by human beings.
What within the public school systems
one
privately endowed, that in other yardstick could be used by evokes a storm of protest and coneach, as well as in other Univer- 0ne confident of his own com- troversy. If those who wish the
sities, there are Freshman classes petency? The truth to one is that establishment of a new political
in what is called "Remedial Read- in which he believes and untruth and social order are entitled to
ThP
fnr this i* that
is that which he disbelieves. As make the public schools a place of
ing.
ihe reason tor tn s
(c) As to acts of omission I am
told
of
Professors
of
my
ac-

«fnnd
nSnai

.^eg businesSt Officers

I] 1S ln the nature of things that

may

in

J*

g Ayres, President; Roger A. De
Young, Vice - President; Howard

of this character with that

pected

nrnnf

+n

trated in part by fact and in part
by some supposititious situations.
In practice among educators it is
impossible to believe that, in so
far as the individual teacher is
concerned, the principle of Aca-

ments

You

reta^ed

consideration to principles, illus- Freedom.

J?

and

athletfwho asso^^
VLT

prinrciP'e". ,^°uld not fal1 under L'TeTchfnJ

y°ur suspicion.

tion of principle is whether, if J*
®uc R
®
true, either should be considered
^ ^
f
nt
u*
,L01.
as falling within a fair and rea- and he"ce
not be undersonable application of the doctrine takea- Precisely the same a gu
of Academic Freedom.
mei?j T
even greater forca

.

difficult to reconcile statefaith

thieves be

until guiltv of defalcation? Or the

L0S ANGELES, Calif.-Frank
H Ayres & Son, 5848 West Pico
Boulevard, is engaging in a secur-

.

.

to you

good

clerk who consorts with

ficiently instructed in other basic
subjects may claim sanctuary unIn the foregoing I have given der the principle of Academic

These false statements were acts
of direct commission.

one

Must

of the Fla£lst,fte® are^ open day Life Building. Mr. Barron was
and night to all who wish to pre- formerly Hartsville, South CaroIer criminal charges. No one is iina manager for Courts & Co.
exempt from possibility of having

,

international agreement. I have

seen

of fitness

one

cated, whatever their claims in
justification, I am not prepared
to accept as valid the suggestion
that those who send out high
school
graduates
incapable of
doing Freshman reading or insuf-

lectures

Russian governbroken a treaty

present

had

ment

than

accounts

news

banic

Question is not

The

It is

the most noble principles is often should ^P^e the heat extrav
called upon to shield ignoble proj- agant exaggeration, and personal
ects- Bat because of this all per- abuse which have characterized
sons claiming the protection of such public discussions of some of the

of

vestigation

the

fs a, PJ:oduc* of
vJ
arSes may be expected.
But because of this all charges are standing
J?0*
consldered as either un- gu
s
founded or wanton or the product
of
,rla' * ls.no.. unkn°wn to

seem

attention assertions by a Professor that
the Russian Bill of Rights gives
more protection
to the individual
my

of auilt

gamWers and

be

I have had called to

suggestion
notoriously

agencies
thev

exist, the duced into our educational system
Academic Freedom a form of political indoctrination, tices or conduct which they bea democracy within the defimgives protection to teachers who foreign to normal education as lieve to be right or justified.
tion
of
the
English word are fail to sufficiently instruct in that heretofore conducted, the purpose
Manv
arguments
which
mav
spurious to the point of absurdity, thing essential to all academic in- being to discredit the country's
within that meaning.

you

is

of Russia is demothat the Russian individrights and liberties the

government
cratic,

liefs

37

manner as that term because in the natural course of wiu find n0 more protection for a foreign powers are entitled either
satisfactory
has been heretofore understood? events teachersbeliefsbeen sense of s tem of political indoctrination, jn right or fitness or employment
have and selected
by governmental to educational
It
said that this seeming de- who share the

Anrf

that the form

work.

of example.
You will attach some significance, I believe, to the fact that
high school graduates now come
to American Colleges and Universities incapable of reading sufficiently well to pursue the work of
the freshman year. Without this
ability how have they successfully
finished the high school courses?
Have they finished them
in a
way

state

a

college

in

of Academic Freedom,
That is his opinion and, though I
should disagree with it, I for one
would not object to his expression
of it. But should he either by diprinciple

rection

(2221)

Number 5222... The Commercial and Financial Chronicle

Volume 177

by

may

38

The Commercial and Financial Chronicle...

(2222)

Continued from page

Our

14

of

stood

Canada and the Security Analyst

of

union

economic

free

such

should

be

blockage points. We

managed and growing companies by
At

together under the stresses
should

and

war

stand

able

be

to

recent National Federa¬

our

Convention

tion

felt

I

under peace.

one

as

States and Canada.

of the United

obliged

in

Philadelphia

state

to

that

"the

analysis—a

sound

portion

by the consumer, and therefore

ingredient of
sense of pro¬

invaluable

most

business decline of
tude

perspective. We have

or

magni¬

severe

profits

corporate

on

a

and

fairly recent examples stock prices. My belief is that this
bit too one¬
of this in the United States, such interpretation is a
some

seen

sided.

textile stocks, and
no
doubt
you
could
point to
others.
Paying excessively high
the drug and

as

relation

in

prices

There is another

sider in the

realizable

to

longer-term

in growth.

sound way to invest

after

Fortunately, professional analysts
have a way of recognizing their
mistakes
and
this
in
turn
is

20

finance
of

of the

which

all

job

growth. The
Canadian
security
in

tunities

made

tiative

of

hope, to

of

We

some,

country

our

and

which

growth

produced

rate

industrial

of

in the past.

an

The

process

analyst will require a number of adjust¬
appraise these situa¬ ments, some of them quite painful,
tions in realistic perspective and such as higher interest rates and
keep the market price in reason¬ real competition. The elimination
the

must

with

relationship

able

know

pects,

task

the

of

the

pros¬

potential.

or

all

that

sure

aware

of

you

I am
fully

are

of this

importance

of

wasteful

parasites from the
government payroll and the fact
that various segments of our econ¬

will

omy

and

ready

are

of

reminded also that the fi¬

am

alarm

nancial

many

reports

Canadian

of

some

access

Not Faced

panies in the States from the
viewpoint of providing adequate

by

training

if

you

But

these

not blind

taining

developments should

support

for

that

States

you

time

heads.

annual

and

we

will

in

possible

way.

Threat

any

have

We
of

of

World

that

political

our

possible

another

community
today—that of intelli¬

interest

of

vision,

forces in

have
the

a

period of world

period of

a

threats

of

negotiations in
precursor

to

real peace

a

peace.

not forecasting that we will

am

years

free from

all-out

Korea

The

war.

may

be

a

a genuine attempt at
settlement, but again

they may not. How should we
judge what is going on in IndoChina? No one knows where these
will

events

lead, but

least consider all
and

one

the

we

must at

possibilities

of them may be a lessen¬

clear

It

thinking and

is perhaps

industrial

could
in

of
be

President
a

major turning

Western

our

Eisenhower

diplomacy,

point
pro¬

We

should

inflation

all

ask

its

government

people

to

is

join

ready

to

with

all

interim

inevit¬

production

secular

our

a
an

mean

that

further

prices

adjustment
be

may

markets

have

cautious

for

we

in

tax

the

we

offsets

the

and

re¬

strong

possibility of higher price-earn¬
ings ratios that a period of real
world trade

expanded

bring

for

shares

from

page

price

a

with

advances,

believe that

we

are

cyclical

a

growth,

collapse.
technological

civilian

new

in

well

vital

a

of the

one

hower's
seems

deaf

interest, will also be
keys. President Eisen¬

message

to

have
in

ears

where

it

the

should
—

this

on

fallen

on

very

have

point
rather

centers

maximum

the financial

mar¬

kets.

position to help di¬

industries

and

of

Keats in

the

productivity
We

and

cannot

cycle but

funds

we

into

can

income."

real

cure

the

business

do much to

re¬

duce

such
in

influence

the

it

as

securities

may

the

opportunity to welcome addi¬

tional members from other major
centers
of
Canadian finance. It
will continue to be to

our

mutual

advantage.

sit and

hear

each

other groan,
Where palsy shakes
last great
hairs,

a

few, sad,

youth grows pale, and
spectre thin, and dies,
Where but to think is to be full
sorrow

and

leaden-eyed

on

If

some

of

the

billions

Price of Gold

U. S.

imports of lead

rect,

but

scarcely

thinking

clear

afford

can

overlook

to

coupled

with

rising

a

the during periods of

circumstance
not

seem

of the

war.

a

gold

decline in the

when

was

value

of

money,

would

very

know that, the gold

we

is

itself

of

of the first

one

It

war.

simply

not be maintained at such
as

It does

evidenced

even

a

can¬

time,

in the rel¬

fairly certain

that

other

nations

would revalue their currencies

ac¬

cordingly. It is our goods which
they want, not our gold. With all
nations revaluing gold proportion¬
ately, the terms of trade would
remain unchanged.
There would
increase

some

in

the

amount

presently

treasuries

raise their official

would

prices. '

it

would be

One

is the traditional standard

So

long

as

a

nation

actually

perhaps it will be regarded maintains a standard of this sort,
merely an amusing inconsist¬ if the public is allowed to hold the
ency that it be proposed that (1) commodity the market price can¬
a
"free" market should
be es¬ not possibly differ from the Treas¬
for

indiffer¬

an

ounce

each

of

dollar

the monetary standard is exnected.
So

long

it operates satisfactor¬

as

ily, peoole have
the

costs

There

is

arguing

no

desire to incur
gold.

of storing

legitimate

a

that

the

case

public

be

for
ner-

mitted to hold gold to imnose lim¬
its on monetary and financial ool-

icies, but it

not be

can

distorted

to imply that the present demand

for

gold

would

exist

in

the

ab¬

of government support. It is
little odd that this is apparent.lv

sence
a

obvious in the

more

case

of butter

than of gold.

Suppose It Was $10 An Ounce?

Amusing Inconsistencies

tablished

held

one

dollars,

ten

or

matter of

a

whether

having the value of a tenth of an
ounce of gold.
Such dollars would
probably be worth more than our
present dollars, but whether or not
When
some
one
commodity,
increased
in
value
there
whether gold or something else, is they
would be no advantage in holdinr*
chosen
as
a
monetary standard,
The one time when oeople
there are two rational methods of gold.
prefer gold to other forms of
operation.
money is when a breakdown of

whereby the Treasury maintains a
constant price for that commodity.
So long as the Treasury stands
ready to buy freely all that is of¬
fered, the market price can not
fall below the Treasury price.
It
the Treasury is also freely selling
suspended an effective gold stand¬
ard
the commodity, the market price
during the Civil War.
To
state that the Treasury and the can not rise above the Treasury
Federal Reserve are responsible price.
The two are identical and
for the decline in the value of the are determined by the Treasury
dollar is a little reminiscent of when it defines the dollar as being
the
rewards
given to medicine the value of, for example, one
men
for rescuing the sun frQm thirty-fifth of an ounce of gold.

A Varying Gold Price

According to a second tvne of
gold standard, discussed some
years ago, the price of gold would
be

made

the

to

vary

inversely

with

level

general

of prices.

The

whatever
the
latter logic of such a standard would He
If the United States in its possibilities of price stabili¬
Treasury be prohibited from sell¬ might be.
ing gold to industry and the arts. Treasury were tomorrow to per¬ zation. According to its suoportMoreover, runs the argument, (1) mit citizens to hold gold, and ers, a general rise in prices could
gold should be declared to be a simultaneously were to define the be promotly checked by increas¬
gold

and,

(2)

the

price,

ury

strategic metal and, (2) the public

dollar
of

be

allowed

to

hold

any

an

as

the

ounce

gold would

saved

and zinc.

on

to leave

If, to repeat, it were certain that
prices would remain
price permanently at the new, low level,

value

of

one-tenth

of gold, the price of

automatically be $10
.

on

price

were

government

should

despair."

lower

a

their

that

And

men

set

gold consumed by industry, but
would be no logical basis
for a feeling that gold at $10 an
ounce was any particular bargain
unless, of course, one speculated

quantity they wish.
As a dis¬
undeveloped areas of on armament can be used for tinctly minor detail we certainly an ounce.
world, to stimulate profitable international exchange and under¬ may wonder how the Treasury
Nor is it necessarily true that at
and fair world
trade, to assist all writing an expanion of world could be required to deliver gold that price gold would be such a
people to know the blessings of trade, I am sure that the level of to the public upon demand and bargain that the Treasury would
productive freedom. We are ready, business activity will not turn out
simultaneously prevent industrial quickly be drained of all its gold.
in short, to dedicate our
It must be remembered that by
strength to be disappointing to the owners consumption of Treasury gold.
to serving the needs, rather than of
equity securities.
With gold
declared a critical far the largest buyer of gold is
the fears of the world."
States Treasury.
A
Given an environment of con¬ item the Treasury would be forced the United
lower price for gold would doubt¬
I do not know how the
structive peace I see no reason to continue purchasing, no matter
pros¬
less result in a little more gold
how high the price might rise. If
pects
of
contingent peace
why the United States should not
are
such a state of affairs merely re¬ being used in the arts, but the to¬
being evaluated in your financial enter a period of further
dynamic sulted in
tal so used would still probably
a bonanza of a few mil¬
centers. I do know that in Wall progress
in
which
our
natural
lion dollars for the gold producers make little impression on the
Street and other markets of the
partner, the Dominion of Canada,
in
the
Treasury vaults.
the matter would not be so bad. hoards
United States the talk of a settle¬ will share. But
we
must
share. The
government
has subsidized (Net consumption of new gold by
ment between the West and the It is
disturbing to hear a proposal
ther industries, although usually industry in the United States in
East is generating a
startling de¬ that Canada should establish ex^
recent years has been around $100
they have been of more impor¬
gree of investment fear and un¬ port taxes on abestos and
million annually, a little in excess
nickel
certainty. It is the current mood going to the States in retaliation tance to the economy than is do¬ of domestic production.)
to emphasize that peace will
against a proposed higher tariff mestic gold mining. But in this
bring
If the Treasury were to estab¬




States

ted

gold other countries

that before

the

"chain reaction" of reduced mil¬

Admittedly, if and when the Uni¬

markets.

as

where

oversimplification

for

of

With Seais

"Prisoner

Chillon":
"Here

above

mand

companies

the

a

The

gold abroad but is an
those attempt to emphasize the
simple
that fact that the principal demand for
contribute to the nation's growth, gold today is as a money material.
investment

rect

College Economist Takes Issue

reminded somewhat of the

am

year.

does not take into account the de¬

be

Maybe we are all too pre¬
occupied with falling bond prices. eclipse.
I

a

there

atively small wars of the past.
key factors sug¬ Except
for
the United
States,
gest that our "normal" level of briefly participating, all the na¬
production and trade could be ma¬ tions engaged in World War
I
terially higher than the pre-Korea were obliged to abandon the gold
average.
The future volume of standard until after the war, just
world trade, in which Canada has as the North and the South both
such

ounces

Goods, Not Gold, Wanted

con¬

instability.

14

products

and various other

of

velop

million

to

move¬

past have

economic

mar¬
—

too long the Federation will have

our

prospective decline

a

rates

and

in

mar¬

should

stock

orderly and
long while. When

overlook

duced

are

a

of

of

necessary,

corporate earnings,

not

We

securities

in the

to

in

gold-buying prices un¬
changed there would, until price
The
task
of keeping realistic levels became readjusted, be prof¬
itable
opportunities for Ameri¬
prices is just as valid here in
cans
to export gold and use the
Canada as it is in the States. As
proceeds to buy goods
abroad.
professional analysts I am sure
if the United States
that you will join with all the However,
were to take any such drastic
(and
Societies in this basic objective.
certainly ill-advised) action, it is
And I am also sure

been

a

speak of

that

have

longer

no

*

We should recognize that while
a

ments

of

excessive

tributed

business

is

growth

bright.

casualties

faced

world aid reconstruction. The
pur¬
poses of this great work would

other peoples to de¬

been

in

should not be taken to

standard

not

Where

To help

has

"recession"

war,

do

nations in devoting a substantial
percentage of the savings achieved
by disarmament to a fund for

be:

along

greater weakness. The risk of

but I

of

"This

the

over-discount

not

impact of deflation when in fact

ability to make for realistic
valuations

ounces

We ket
which, at the present price of
gold, consumes a little over one

years.

continuing

a

gold

behind the Iron Curtain. What did

an

a

hundred million

past 20

hands

realistic to imply a system based upon what experi¬
itary expenditure is reduced, as that so long as a nation adopts a ence has proved to be, of all
now
seems
likely. In fact it is gold coin standard its price level monetary principles, the most vi¬
widely expected. The question is, will be stabilized, regardless of cious.

words

in great sincerity? Here is
important excerpt:

or

toward

the

our

ence

viding it is understood by those
he say

of

in

have

introduce

ing of world tensions. The recent significance
speech

change

world peace are basically bearish.

cour¬

should decline if the pace of mil¬

gently appraising investment Population
I

of believing

development

activity will probably turn down

Peace

control

dampen

into the trap

how much? The trend of business
The

gree

not fall

and sound management. This

a

able

along this line in

progress

United

the

is

level

reports. The Federation has made
much

enterprises

ness

complete

more

comparatively
stable
yet
have to drop to permit the Treas¬
economy without the de¬
ury to dispose of its nearly seven
of government support and

Cyclical

a

to the wonderful op¬

us

successful in ob¬

are

a

circumstance

no

the

Treasury again pur¬
gold, it is interesting to
speculate how low the price would

Collapse

age

efit

rather

a

of

ket

Continued

is

dian analysts. Everyone will ben¬

keep

cation that under

growing

healthy degree of investment
skepticism. Nonetheless we should

portunities that lie ahead for busi¬

major opportunity for Cana¬

to

it and offering
stock to buyers for
price the market might
determine, subject to the qualifi¬
present

would

much

corporate information for analysis
and investment comparison. Here
a

wisdom

we are certainly not perpetual
optimists. Indeed we are disposed

could

With

analysts

and

peace

viewed with

course

security
unlimited

have

not

free

a

leading

corporations are below
progessive com¬

do

to Federal funds

by those affected.

standards of

the

longer have

no

risk-taking in¬
with whom you deal.

the

to

vestors
I

to

be

Professional

haven for individual ini¬
and

unparalleled

of investment oppor¬

manner

great re¬

a

controls

principles of free enterprise

yours a

Canada has been endowed with

Adminis¬

description.

we

it

of

have,

now

an

and

and

returning,

are

and

prudent gov¬

Federal

kind

every

unduly

priced

We

years,

ernment

high during a period of excessive
optimism.

been

long

States

con¬

possibility

peace.

duction

quickly reflected in the
market prices of securities that
have

the

tration dedicated to

rather

may

factor to

United

with

in

ties

values is not and has never been
a

Investment Skepticism

itary spending, lower capital in¬
curtailed expenditures

vestment,

demonetizing

the

whatever

profession has a unique
chase
opportunity to share in the goal
analysts

get carried away with their own
enthusiasm and lose sight of that

Thursday, May 21, 1953

particular

case

such

a

program,

lish

a

truly free market for gold

ing the weight of gold in the dol¬
thus making the dollar more

lar,

valuable and of
time

ing

course

at the

same

lowering the Treasury's buy¬
price for gold. Likewise in

deoression, falling nrices might be
halted and reversed by raising the
price of gold, that is, making the
dollar

its

less

gold

valuable

by
This

content.

reducing
was

theory of the devaluation
dollar

in

although

1934.

the

of the

the gov¬

ernment, after briefly experiment¬
ing with a flexible price for gold,

eventually
of

te*-ms

defined

a

fixed

either

For

weight

or

a

the dollar in
weight.

dollar of constant

a

dollar the weight of

which varies with the price level

good arguments can be advanced.
That is
on

a

to

say,

so

long

gold standard it

as

we

are

can

be

ar¬

gued that the price of gold should
\

Volume 177

be constant

Number 5222... The

that it should vary

or

inversely with the general level
of other prices. Even if we sup¬
port, in general, the idea of a fixed
price for gold, we may feel that
particular circumstances require a
general revaluation of gold.. The
one thing we cannot possibly ar¬
gue is that as a general principle
the price of gold should vary di¬
rectly with the general price level.

Commercial and Financial Chronicle

between rising
price for
product, can we grant that
they should be given a higher
price. They are not producing just
another commodity, they are pro¬
ducing the commodity upon which
our
monetary standard is based.

of

money

exchange

value.

and

The

vious

are
a

first

of

these

irrelevant

and

a

to

is

ob¬

the

point
here at issue. The second function,
that money serve as a standard of
value, requires that we have some
sort of stability in our standard.
This is surely the most elementary

requirement for

standard. If
the standard itself is going to vary
any

We cannot wreck

our

what

For

would

raise

to

the

be

100%

or

conse¬

sults

of

the

price

of gold

by

Whatever the

re¬

such

action, they could
deflationary.
They
would at least lay the foundation
for inflation.^ Perhaps the infla¬
hardly

be

would

tion

haps it

materialize

would

and

If it

not.

per¬

the'standard

is

worse

useless.

than

the

of

One

! -L '

strongest criticisms

leveled at the gold standard based
on
a
constant weight of gold is
the

that

the

of

value

gold

itself

changes, as evidenced by the un¬
stable price level. This is one of
the most elementary principles of

Individual prices are in
constantly changing relations to
each other. Some are moving up,
some moving down, some standing
still. But when prices in general
are
moving up or down it can
only be due to a change in the
value of money. Even under the
money.

at

more

some

times than at others.

ally suggested that the gold stand¬
be modified by changing the

ard

weight of the dollar for the pur¬
pose of keeping its purchasing

constant.

power

We

receiving were no long¬
er buying as much as before.
The
only end to such a process, once
under way, is catastrophe, for as
the money loses its value it is offi¬
cially devalued, encouraging fur¬
ther decline

of

made

rulers

these two
standard to two

gold

of

types

with

metal

a

a

high coefficient of
expansion. Suppose that on a
warm day these rulers stretch out
to
twice their length when the
fantastically

is at zero. One of
rulers contains at all times

temperature
these

divisions,

twelve

ruler

this

in

tall

By

will be

three

summer.

This

winter

the

in

tall

feet

inches.

or

who is six feet

man

a

the

corresponds to the familiar

ruler

type of gold standard. The other
ruler is so arranged that it can be
cut down or lengthened in such
way

devaluation.

tionnaires
75

proposed by those
who would have the price of gold
But the ruler

the

-

when

value

the

upon

there

are

South

Southern

the winter.

The
ceived

that

creation of

inches.

one

will

deny

that

35

of

today's dollars are not the equiv¬
alent of $35 in 1934. Nor will any¬
dispute that gold mining is no¬

one

where
it

as

of

nearly so profitable today
in 1934, when the price

when

most

But

so

maintain any form of

ard,
be

in

long

as

we

gold stand¬

depression,

great addition to

a

It is difficult to suppose

that by

by reducing the gold weight of the
can

increase the value

the

dollar, that is,
level of prices.,
■

Nor,

Points

...

52

South Carolina

Elec.

Gas 43

&

Southern Company

38

_.

Central & South West Corp. 31

factors,

such

hopes

The

The regulatory setup

is also im¬
companies*
respect;
being able to convert growth into
higher
share
earnings
without:
having to worry very much about:
portant.

The

Texas

have been favored in this

the rate base. There

the return

on

is

utility commission, and.

no

state

Texas
a

State

22

commissions in most other

20

though

Oklahoma Gas & Electric___

19

exceeded in

American Gas &

following

re¬

analysts'

selection

in the

appears

measured
creased

Consumers Power

in share

El Paso Natural Gas

price.
utility

Lighting & Power

Montana Power

ways

in

sales,

in

revenues,

earnings, and in market

But

for

various

managements

translate

sales

reasons

cannot

gains

al¬
into

even

or

times

high

as

like

some

had

prices

as

prewar

DENVER,

J.

K.

pany,

some

countries,
a million

we

a

or

sheet hits Wall

however ' much

lower

as high, as we well might if
adopted the principle of de¬
valuing the dollar whenever it de¬

Washington and

we

clined in value.

So far

as

Main Street.

stabiliz¬

ing its value is concerned, the dol¬
lar should

be

devalued, if at all,
power is too
Devaluing it to

SAMPLE

the

we--may

sympathize with the plight of gold




SCOOPS:

its purchasing

when

high,

in

as

correct

its

1933.
low

would

value

«

BOND HOUSE STRIKES

be

Oh;.

QUITS PEDDLING PEANUTS

futile and possibly disastrous.
As

stated

at

the

outset,

be made out for

can

an

a

case

•

NEW MEDICINE MAN FOR

all-around

N. Y. STOCK EXCHANGE

devaluation at the present time to
ease the dollar shortage, but that
•

entirely different matter.

BIG BUSINESS CULTIVATES

•

an

Professor

of

MATS

WALL ST. SECRETARIES

DR. EUGENE S. KLISE
Economics

NON-SQUIRMING TYPE

Miami

University

Oxford, Ohio
$ 1 will get
front

A

LOS

Order

Corporation

ANGELES,

Calif.

West Seventh

is

being dissolved and

a

new

the

year*s

or

ot

$1

o

copy

100-Iots)

from Edward S. Peterson,

The

—

Circulation Committee,

100

Broadway, New York, N. Y.

Send check with application.

Exchange,

poration will be formed.

you a

seat at

now

(odd lots

Street, members of

the Los Angeles Stock

row

funniest show

partnership of Fairman & Co., 210

cor¬

THIS

Officers

are

Harry G. Fairman, President;

W.

Douglas Hale, Vice-President,

partners in Fairman & Co.,

•were

which

with
ciated

as

Mr.

Hale

was

asso¬

Cashier.

With H. L. Robbins Co.
(Special

to

The

Financial

WORCESTER,

5

COMING JUNE

Chronicle)

P.

Mass. —Carl

Sherr has become associated with

H.
.

Street,

times

L.

Pearl
with

Robbins
Street.

&

Co.,. Inc.,

He

dibbk & Co.

was

:

40

formerly

;\r

i.-iUvh.
'

U

•

i, 11;';

«ft._

—

Roscoe

EL

Mullen

Investment

YEAR'S

Com¬

U. S. National Bank Build¬
was

formerly witfe.

Harris, Upham & Co.

Ihis annual comic

billion

beed

cases.

Colo.

ing. Mr. Ayres

the fun whef*

on

statec>

this "limit" has

«Tr"l.

Get in

but, un¬
have not

used

Ayres has become associated wiUfc

our

to prices twice and three

less

(Special to The Financial Chronicle)

Growth can be
many ways—in in¬

KWH

6%

Joins J. K. Mullen

to be

the growth factor.

Niagara Mohawk Power

Houston

Electric___

The major consideration

companies

at*

(com¬

18

Edison___

with

pared

creation of money.

adjusting

mentions 8%

law

maximum rate of return

be to abandon completely
logic of the gold standard and
permit
a
literally
limitless

in

achieves

22

Empire District Electric

...

But this de¬

economy

to

West Penn Electric.

ceived 3 votes each:

orx

stock in 1951 and 9Qt:

24

American Gas & Electric

our

oc¬

Gas—which earned 52c

common

would

to

has

Niagara Mohawk Power

Consolidated Edison

time on the principle that
gold miners deserve higher prices
the

as

Middle South Utilities
>

West Penn Electric

this

raising the price of gold, that is,

dollar, we

^

of

Consolidated
;

.

the dollar to decline.

first

each

giving 3
choice, 2

Texas Utilities

re¬

Columbia Gas

be

can

basis,

the most points:
.

: :

„

for

lan^

guishing in prosperity.

of

each:

in
1952, and
$1.62 by 1954.

weighted

a

a

gold-mining will necessarily
a
counter-cyclical
industry,

flourishing

votes

the

time and Harold C. Frankel, Treasurer.
were at Mr.. Fairman
and
Mr.
Frankel

doubled at
other prices

was

all-time lows.

4

companies

:

General Public Utilities

supply which, along with
other factors, caused the value of

was

gold

following

)

6

trie &

points for each second choice, and
1 point for each third choice, the
following 10 companies received

;

7

tion

points

.

9

Company..

den and dramatic improvement kx
share earnings due to a combina¬

Utilities

Arkansas Louisiana Gas

Commonwealth Edison

;

money

as more

added the ruler would

expand faster than ever, requiring
No

Gas

sharp

curred with South Carolina E2ck><

On

Oklahoma Gas & Electric

necessitated the

war

Worse yet, we

shall have to suppose

more

&

a

American Natural Gas

9

Elec.

as

generating costs
installing new plants, rate in¬
creases, refunding savings, etc.
Sometimes there may be a sud¬

Cincinnati Gas & Electric

Votes

Central and SouthWest Corp.

Fairman & Go. Now

still

Carolina

such

in

General Telephone

the

Texas Utilities

factors,

Pacific Gas & Electric

of

'

re¬

'

Washington Water Power

are

?

:

•

companies

Middle South

limits

no

which

amount

The

created.

directly with the price level May 12, 1953
be one which would add
inches to the ruler as it expanded,
remove them as it contracted. By
such a standard of measurement
the man would be three feet tall
in the summer and twelve feet

are

total

a

receiving

companies

•

would

inches

25

named

The following

most votes for first choice:

vary

tall in

and

companies.

Money is most likely to lose its

Associate

advantages.

has certain

their

.,

that, regardless of tempera¬
is
ture, the man will always meas¬
ure
six feet.
There is something
to be
said for both types; each
a

determine

to

first, second and third

ity common stocks. Of approxi¬
mately 200 analysts attending this
meeting, 121 filled out the ques¬

in value and further

convenience

compare

may

to

as

following

vorable

ceived 2 votes each:

choices for the most favored util¬

did de¬

were

to improvs*
quality of the common stock.
by raising the equity ratio. La
other cases rapid growth is for¬
tuitously combined with other fa¬
the

reduction

Florida Power

desire

There has been inequity and in¬

Expandable Ruler"

"An

the

polled

were

ideas

cline in the purchasing power of
pre-1933 gold standard price lev¬ the dollar was
largely a matter of
els
changed,
indicating that a
military necessity rather than of
given weight of gold was worth choice. To devalue the dollar at

As noted above, it was occasion¬

Utility Ana¬
on
Wednesday,
analysts attending

22,

.

they

The

Luncheon

April

The first step would

more.

New York

lysts'

of the policy which they

recommend?

be

the

At

slowed up by the

are

management's

Utility Common Stocks Favored
By the Analysts

dustry.

quences

ings gains

Utility Securities
By OWEN ELY

in¬

one

velop, the miners would be justi¬
such a. way as to magnify the fied in
demanding again that they
changes in what we are measur¬ be given relief, since the dollars

then

Public

com¬

stock. Sometimes share earn¬

mon

to

economy

permit higher profits for

in

ing,

larger income available for

inflexible

an

their

Effect of Higher Gold Price

medium
standard of

as

and

costs

For the two most important func¬
of

squeezed

miners,

Standard of Value

tions

(2223)

The Commercial and Financial Chronicle... Thursday, May 21,

(2224)

Continued

This Week

[

looking Ahead at
The Capital Markets

JOHNSON

H. E.

Insurance Stocks

—

companies are experiencing a favorable year from
of both underwriting and investment operations.
Although insurance companies do not as a

general practice

statements or publicly release information
the usual six months' periods, occasionally some company

issue interim operating
between

publishes figures and comments about current operations.
such statements are not necessarily indicative of results

While
to be

expected from a full year of operations because of seasonal con¬
business, they do, when com¬

siderations and the character of the

with earlier periods, provide some indication of trends
within the industry and their impact on a particular company.
pared

Group's report for the first quarter of

The Glens Falls

is interesting in this

1953

the current year showed

reported in the first quarter of 1952 to approximately $18,480,000.
Earned premiums were higher by 14.7% amounting to $16,990,000
as against $14,811,000.
Net income after taxes totaled $543,365 as
compared with $145,185 in the earlier period.

practically all phases of the fire and casualty
business and writing a wide range of risks, this showing of Glens
Falls is encouraging.
Part of the improvement undoubtedly arises from the better
rate structure in some of the automobile liability lines.
The loss
Engaged

ratio

in

industry has also been helped by the mild winter
Most of the major cities throughout the country were

of

the

weather.

ice and snow in the early months of
that losses from accidents resulting from this impor¬

comparatively free from
the year, so
tant hazard

relatively light.
underwriting experience continues favor¬

believed to have been

are

On the fire lines the
able.

by the National

Although destruction by fire as reported
Fire

of

Underwriters, has been running ahead of 1952,
amounting to $300,198,000 for the first four months as compared
Board

with

$283,714,000 in the similar period of a year ago, the ratio of
losses to the total value of insured property has been well con¬
trolled.

other

In

of the insured property has
increasing—providing a larger volume of premiums—at the
same time that losses have been rising.
The net result has been
that margins have been maintained enabling the companies to
the value

words,

been

earn

fair return

a

Final

)

nados

results

will

not

on

this business.

from

be

some

the

of

for

known

windstorms

severe

sometime.

and

tor¬

However, this forms

a

relatively small part of the total business and losses, while large,
should be absorbed without impairing overall profits.
The investment results have generally been favorable.
In¬
creased

premium volume has provided new funds for investment."

Interest rates have
been incurred

on

been

rising rapidly and although losses have

outstanding obligations,

commitments have

new

been made at substantially higher yields.
On stock holdings, companies have received
and

come

year ago.

in

some

cases

some

in the
period of a
dividend reductions but the in¬

than offset this decline. According to the Department
Commerce, corporations issuing public reports in the first four

creases more

of

months

of

1953

paid

in

Thus

the

combination

of

this

liability.

than in the like

more

factors—larger investment
increased dividends, should
gain in investment income.

spite of this, however, most com¬
panies should be able to report an increase in operating income.
For these reasons the operating results to be reported for the
first six months of the current year will be particularly inter¬
esting.
In

Watt & Watt, Inc.
To

Open in New York

Watt

&
Watt, Incorporated,
American affiliate of Watt & Watt,

Toronto, members of the Toronto
Stock Exchange and other lead¬
ing Canadian Exchanges, will be
formed

with

offices

at

70

Pine

Street, New York City. Alfred M.
Erlich, formerly Manager of the
Foreign Securities Department of
Hayden Stone & Co., will be in
charge of the new office.

Now,

have

we

pre¬

cash market which
expands or contracts only very very
a

,

1952

Circular

Request

BOSTON, Mass.
Co.,

members

Stock

ing

the

security and

changes,
B.

—

of

New

York

Exchange and other lead¬
commodity
that

announces

Neiley is

Members New York Stock
Exchange

Members American

Stock

Exchange

120

BROADWAY, NEW YORK 5, N. Y.

(L.

A.

Telephone: BArclay 7-3500
Bell

Teletype—NY 1-1248-49

Glbbs,

Manager Trading

Dept.)

Specialists in Bank Stocks




bill|op.

Thus

demand

priv|te

from

bond

demands plus

meet

a

buyers or the mechanism
for gathering their funds, and the
policy of the Government is op¬
posed
to
making
more
funds
to

for

borrowers

for plant and equipfhent

to

outlays,

real estate financing, and working
capital requirements. The critical
question is whether this savings

flow

will

the

on

be

enough

market

the

demands

Treasury de¬

cides to make.
In

appraising

ties

reinvest

to

the

demand

on

higher

the

substantially
Thus, the supply

rates.

side of

a

at

bond

market has

pension funds. If the demand for
funds on private account is slight¬
ly less than this flow, obviously
should

we

bond

look

for

stronger

a

On the other hand,

market.

what he wanted to hear from the

equivocal utterances of the oracle.

be¬

largely restricted to the ac¬
tual flow of savings into the leadtual
flow
of
savings into
the
leading
thrift
institutions
and

come

if the demand is excessive by even
a
few
hundred
million dollars,

The

sound

adduced

argument

either

on

can

side

of

be

the

question and, second, because the
set

same

"facts"

so-called

of

can

be

factor

in

likely

to

I happen to share the feeling that
the latter
development is more

because

it

market,

is

the controlling one
magnitude of its

be

behind

us

anticipate
rates

and

over

the

that

should

we

easing in interest

some

next

year

or

two.

the

of

likely because I do not see a
operations.
strong business picture or an in¬
This ^characterization of the flationary trend unfolding in the
bond market should be constantly months ahead.
kept in mind because we all know
My opinion is not of any great
cash

a

behaves

market

dif¬

in which there
is ready access to credit. Instead
of a broad market showing rela¬
tively minor changes in prices,

ferently from

know

we

one

that

a

cash

market

is

for

the

rapid changes in bond
prices which we have seen com¬
pressed into a very short period
of

time.

can

The

illustration

best

I

find is from the actual record

of this year.

Mortgage
Net

3.3

—

14.1

issues—Bonds

new

Net

2.3

:

loans

new

8.0

issues—Stocks—

100.0
Because of the essentially mar¬
ginal character of the recourse to
the capital markets, a modest de¬

cline in business such

as

that from

1948 to

1949 had the effect of re¬

ducing

the

reliance on external
long-term funds by

of

sources

than

more

The

one-third.

situation

same

prevails in

the real estate market. In financ¬

ing

residental housing,
lenders
place $3 in new mortgages
order to increase their port¬

have to
in

folios by $1 because of
amortization

and

contractual
A

repayments.

relatively modest decline in new
construction could drastically re¬
duce what has been a principal
outlet for thrift institutions in the

ance

years.

of

we

state with assur¬

can

that it would not take much

change in the business picture
supply-demand rela¬
tionships in such a way as to pro¬
a

alter the

to

quite variously interpreted. I
duce a real easing in the capital
could, therefore, readily support
markets. The business outlook is
the belief that we have only be¬
clearly the critical factor in the
gun to see the
impact of tight
outlook
for
interest
rates
and
money, or I
could convincingly
bond prices.
argue that the major adjustment
is

same

Term bank loans—

parallel with the present
postwar
is striking, first because
Thus,

economic

41.6
30.7

depletion allowances—
Depreciation

situation

weakness in bond prices should be
anticipated. Furthermore, as long
as
the Treasury is an important
the

Retained earnings and

for private

whatever

persistently private account, I feel very sym¬
pathetic to the plight of the an¬
strong demand.
The
change
in
bond
prices, cient Greeks. They were in the
moreover, acts as a severe penalty habit of going
to the oracle at
against the thrift institution Delphi, making a generous votive
which might wish to shift from offering, and listening attentively
Government securities into new to the whisperings which emerged
the
private offerings. When the Vic¬ from
rustling
of the
dry
tory 2V2% bonds are selling below leaves. Invariably what was heard
92, relatively few thrift institu¬ from this high authority was sus¬
tions are in a position to take the ceptible of interpretations which
loss involved even though there varied widely, and all too often
the petitioner heard precisely
are seemingly limitless opportuni¬
meet

value, however, because it is not
important influence on mone¬
tary and credit policy. It is much
more pertinent to observe that the
Federal Reserve System and the
Treasury are working together on
what
is basically an
anti-infla¬
tionary policy. The Federal Re¬
serve
is keeping the banks in a
tight position and by agreement
with the Treasury is not making
it easy to extend maturities of the
public debt or to raise new money
outside of the
banking system.
an

The Treasury is fully prepared to

The

burden

of my

remarks

up

to this point has been to establish
the

fact

bond

that

observing

are

we

in

market

which

a

must

we

be prepared for abrupt and sizable

changes. Interest rates have been
made

highly sensitive to business

conditions and the policies of the

Treasury and the Federal Reserve.
are the implications for the

What

financial

policies to be pursued
by businessmen? It seems to me

that there are at least three major
points to consider in the present
tight money environment.
Premium

A

Good

on

Borrowing Relations
This

is

investors
record
ances

the

of

one

relations

good

with
at

are

times

when

lenders

and

premium.

a

A

of

maintaining good bal¬
with depositary banks and

keeping them well informed about
plans and policies is exceedingly

issue

new

for

rate

ex¬

Richard

associated with

now

The thinness of the

bond market

has not been confined to corporate

obligations.

has

It

been

equally

characteristic of Government
of which

bonds

small

even

offer¬

ings have caused drastic price de¬

its

as

Assistant Manager of

Boston

office,

140

The

Federal

Street.

Under
seems

Present

these

Outlook

circumstances,

occur

will be

NATIONAL BANK

abrupt rather than gradual.

of INDIA. LIMITED

with

Bankers

to

the

Government

in

Head

Office:

26,

Bishopsgate,

In

sub¬

and

Somali-

Protectorate.

Authorised Capital

Capital—.
Fund

£4,562,500
£2,281,250
.-£3,675,000

The Bank conducts every

banking

the

and

description of
exchange business.

Trusteeships and Executorships
also undertaken

/

and lenders alike

are

and

Bor¬
faced

enforced

participation in a
of guessing
of business activity and

at high

course

supply and demand situation
likely to result.

No great amount of imagination

judgment is required to gauge
prospective volume of the
savings flow. We can expect a
relatively small margin of error
in anticipating that: Life insur¬
ance assets will grow
by $5J/4 bil¬
lion; Mutual savings banks assets
by $2 billion; Savings and loan
associations assets by $3^ billion;
or

the

are probably
appropriate unit. In

should

we

a

over

long periods of

this.

opinion,

It

secular

talk

for

look

not

much more

my

trends in interest rates extending
years.

is

fashionable

about

munications"

markets

investment

ideas

ated

modified

or

as

exagger¬

inventory

by

policies. Because the savings flow
is

much

so

more

stable than these

and other elements of demand, we
count

can

upon

fairly

frequent

changes in the price of long-term
funds.
If
of

less active

into

business,

cline

the

demand

within

to

"com¬

business

our

a

its

period
influ¬

for

funds

a

good interchange of

business

financial

and

Great
progress
has been made
along these lines during the post¬
war
years, but the
accomplish¬
rated

of

each

only

at

company
a

time

can.

like

be
this

when it is the lender and not the

the

in

good

polices with underwriters, institu¬
tional
investors,
and
all
other
potential buyers of its securities.

capital markets is easy borrower
anticipate.
The resulting de¬ seat.

ence on

to

run

is

on

ments

should

we

nowadays

having

Rather, organizations. The counterpart for
the company coming to the capital

should expect a cycle of about
the same duration as the cycle in
we

stakes

most

Pakistan, Ceylon,
Kenya, Tanganyika,

land

Paid-up

the

India,

Burma, Aden,
Uganda, Zanzibar,

Reserve

rowers

game

it

safe to conclude that what¬

changes

months

business

clines.
the firm

Branches

Laird, Bisseli & Meeds

$1%

by

the current year oftotal of $12
billion will be available for the

Neiley Asst. Mgr.
For Goodbody, Boston

London, E. C. 2
on

%

In the public utility pay higher rates in competing valuable when the problem is ob¬
market
the
January against private borrowers for non- taining short-term credit. In deal¬
high quality bonds was bank funds. As long as these pol¬ ing with long-term lenders and
about
3.25%; in February and icies are so vigorously pursued, investors, consistently reliable in¬
March
it
was
about
3.46%,
it higher interest rates are the na¬ formation about past and present
reached 3.50% early in April, and tural
operations must be nrovided at
consequence.
rose above 3.80% early this month.
all times. Evidence that financial
In the past, it has taken many
Not a Long-Term Trend
planning for the future is done
months and even years for such a
Such
a
conclusion
does
not, with care and competence is also
major change to unfold in the ab¬ however, imply that this trend an invaluable asset to a borrower
Goodbody & sence of a panic or crisis situation. should be measured
in
years; in a period of tight money such as

Kenya Colony and Uganda

Earnings Comparison

pension funds will

fluctuating
demand for funds. As previously
mentioned, we lack active com¬
mercial bank participation, we no
longer have available individual

sluggishly

stantial rather than moderate

INSURANCE STOCK

Trusteed

and

grow

therefore,

dominantly

ever

FIRE & CASUALTY

im¬

not

This is, of course, the explanation

4.5%

Taxes, of course, may be higher. Better underwriting results
and increased investment earnings may necessitate a higher pro¬
for

are

and

enable most companies to report a

vision

1920s

these

bonds

on

the

thin, lacking continuity in prices,
and making much wider swings
under changing
circumstances.

dividends

period of 1952.

funds, higher yields

in

portant today.

that

much in in¬

as
similar

than

more

There have been

panded

available

connection.

premiums written by Glens Falls in the initial quarter of
a gain of 15.1% rising from $16,055,000

Net

only a small fraction of their
requirements. The tally for the
seven
postwar years on where
over
$160 billion of long-term
money came from is as follows:
of Total

casualty insurance
the standpoint

According to present indications fire and

so
susceptible to change is that,
corporations in the aggregate bor¬

11

page

row

Bank and Insurance Stocks
By

from

1953

A

who

Bonus

for

is

in

Good

the

driver's

Controls

from
private sources would be
It is self evident that a reduc¬
quite pronounced and the mone¬
tary authorities would be prompt tion in requirements is the best
to shift away from current restric¬ way to ease a borrowing problem
tive credit policies. This combina¬ in a period of tight money. Good
tion
of events could
create the control over inventories, care in
foundation for a major decline in the extension of trade credit, and
strict budgeting of plant

rates.
The

reason

why the situation is ture

programs

can

expendi¬
effect impor-

Volume 177

tant

Number 5222.. .The Commercial and Financial Chronicle

savings

in

Since

needs.

working

the

value

earn

such

special

a

Our

Reporter

bonus

under present conditions.

to economizing on
working capital, con¬

trols have their usual importance

2%% to take
the

maintaining
and
stabilizing
profit margins. Under the more

highly

competitive

Which

bound to prevail in the

months

and

lender

closely

stability

ahead,

investor

the

and

looking

the

will

size

the

at

profits.

of

conditions

years

There

be

and

exists

also in this period of high volume

opportunity

an

to

apparently rigid

work

on

the

cost picture in preparation for the

and to reduce overhead.

A second bonus for good

controls,

therefore, will be realized at
point

the

down

road

per¬

haps money may not be quite as
tight but the credit standards of
lenders may be justifiably higher.
A.Time to Consider Equity Money
The final point

like

to

make

which I should
the implications

on

for financial

policy of this outlook
for the capital markets concerns
the
matter
of
raising
money
through the sale of equity securi¬
ties.

Because

interest
payments
have always been deductible from

high
the

income taxes, adherents to
sharp pencil school of finan¬

cial planning have been

point

how

out

burden

of

light

quick to
the real

is

interest

charges after
taking taxes into consideration. In

of the June maturities of l7/s%

certificates and

Chicago & North Western

partially exempt bonds. The offering was about in line
Likewise the fact that there was only one issue
offered to the holders of the maturing obligations was not unex¬
pected because the longer-term market does not seem to be in
condition at this time to absorb more bonds, except at substantially
higher rates. The debt lengthening policy of the monetary author¬
ities appears to have been passed over for the time being. There
will most likely be a renewal of this operation when conditions
warrant

One

market,

which

especially

had been

in

played
week

needs of the

$1,000,000,000

of

new

money

funds.
In this
ment

environment, the

of debt

on

serial

a

repay¬

basis

or

through the operation of sinking
funds has
ciation

related

accruals

ahead.
item

been

Because

is

poses, it

in

the

deductible

depre¬

the

;

to

years

depreciation
for

tax

pur¬

osition.

is also

pretex prop¬
fu¬

a

The

assumption that
depreciation
will
not

ture

needed

for

the

be

replacement

capital assets is the

one

to

of

ques¬

tion.

Actually,
experience
has
quite to the contrary. Par¬
ticularly for companies having a

been

has

it has been

been

to

provide

for

the

business

some

debt

is

to

is difficult to

that

managements
to

and
handle, whereas it

easy

very

convenient

earn

carry

sufficient funds

to avoid

diluting the stockholders'
equity if expansion plans are met

largely through the sale of stocks.
I

believe

that

market such

in

tight

a

money

this, it is appropri¬

as

which has been

equilibrium.

Then again the deficit financing and refunding

to remember that

money

knowledge

over

the

years

burdensome

from
that

debt

is

upon

new

ventures,

and

privilege may be of crucial im¬
portance to the company's future.
Furthermore,
a

stock

prices

(Special

SAN

ket may

certainly is the strongest in
than twenty years.

more




The

Financial

FRAft®SCO,

Fay

Chronicle)

Calif. —Ed¬

to

The

Financial

Jr.

Kneeland

members
San

Mr.
with

of

Hendrickson
Davies

and

Exchanges.

previously

>fe£o. Mr. Love

was

Trade

has

become
&

Co.,

associated

Building, members

Midwest

Stock

of

the

Exchange. In the

past Mr. Wilson
Cruttenden &

of

Board

with

Fuller,
Co. and has recently
was

been with Standard & Poors Cor-

representative for Wil- poration.

Johnson?

With

was

Street,

York

New

FranciSCO^sStock

San Mateo
son,

Pine

340

Joins
(Special

DETROIT^Mitch.

—

George J.

Giuliana

is^wXIh R. C. O'Donnell
Co., Penobaaot Building, mem¬

bers

of

change.

business,

a

the-sf^etroit

Stock

Ex¬

Wm." H. Boggs

sizable

a

H.

associated

amount of

the

conditions.

weather

winter

combination

has become
Carl M. Loeb,

Boggs

with

Co., 42 Wall Street,
City, members of the
York Stock Exchange.
Mr.
&

Rhoades

York

New
New

Boggs was formerly Manager of
the Trading Department for Hill,

highlighted by failure of the

factors

of

past four years. This preferred is
cumulative only to the extent that
the dividend is earned.

admittedly
not
enthu¬

is

record

calculated to generate any
siasm

the

for

The

stocks.

Giniher, Johnston Co.
Formed in Cleveland
(Special to The Financial

The company's long-term earn¬

ings

Thompson & Co., Inc.

has

to earn, or pay, the full
preferred dividend in three of the

Chronicle)

CLEVELAND, Ohio—Nelson D.
Ginther
and
John R. Johnston
have

formed

a

partnership, Gin-

ther, Johnston & Co., with offices
agement has gone in heavily for jn the Union Commerce Building,
dieselization and is taking other Mr. Ginther was formerly proprieman-

steps to try and get tor of Ginther & Company, dealers
under control. There is in State, county and municipal

aggressive
expenses

less,

even

there
may

in

Jaffe, Lewis Co.
to The

Financial Chronicle)

CLEVELAND, Ohio — Hilda J.
Riley is
connected with
Jaffe,

territory served and

partment.

type of operation.
are

Neverthe¬
this background

with

indications that the road

Specialists in

be in for quite a good year
If these hopes are borne

1953.

Guaranteed

out, many rail analysts have come
to the conclusion that the com¬
mon

ally
are

Railroad

stock may have quite inter¬

esting

price

speculative

It is pointed

management

(Special to Th^SSinancial Chronicle)

&

number of

a

commuter

substantial

a

alities.

^Higgins.
O'Donnell

Boggs With

Gail M. Loeb, Rhoades

low

the
son,

&

operation with

herent in the

Chronicle)

CHICAGO, 111.—Francis S. Wil¬
with

Hooker

Wm. H.

certainly no conclusive evidence bonds. Mr. Johnston was Vicehowever, that it has been
President of Field, Richards & Co.
able successfully to surmount the
in
charge of the corporate de¬
many fundamental difficulties in¬

With Kneeland & Co.
(Special

Love have became associated with

1947, 1948, and 1949, and in
many instances the current mar¬
ket' represents a fair to liberal
appraisal of earning power. The
going to the equity mar¬
not be compelling but it

to

and

for

to date,

win E. Hendrickson and James T.

have

long way from the levels

for

favorable climate in the

maf&fets.

Two WitbdHooker &

of

case

more

—

the

method

the basis for preserving the ability
to borrow at the time when this

come

somewhat

—

experience

of financing.
Equity capital, on the other hand,
provides flexibility, freedom
to
embark

a

high credit standing.

a

We 'can also properly bear in mind
our

markets has been

money

start

favorable

interest last

some

company

It is being pointed out that

the

$622,522 sustained in the open¬
ing quarter of 1952.
With this

of

pretty

vere

should enable the money market to regain a semblance of
its form¬

operations'$ould stand

tenance of

in

The

in recent years, but

This

vigorous in the past few months and it has been done so
rapidly and so severely that it has tended to have a rather de¬
moralizing effect upon the government securities markets.
A
breathing spell would not be out of order at this time because it

ate to re-examine these notions and
a strong equity
position is essential to the main¬

being.

on

control.

able to

speculative
been

has

industry. Periodically its
operations are hampered by se¬

very

er

highly

that

been

it will go for the time

as

were

report in¬
come
of
$362,586 available for
charges, an improvement of $985,108 over the deficit before charges

William

in

already.

far

the

density milage. The company has
one of the highest
transportation
ratios and lowest profit margins

Although spokesmen for the powers that be continue to indi¬
cate that prevailing policies will not be
changed, there are feel¬
ings around that the tightness in the money market has gone about
as

of

One

and

It

the restraint

strict

was

proportion of the freight handled,

Tight Money Policy at Peak

In recent years, therefore, it has
been
erroneously
assumed
by

revenues

situated companies.

poorly

more

passenger

as

amortization of debt.

under

it would

relatively short haul on

to have the

sufficient

quarter of the cur¬

gross

only nominally above the levels of
a year ago.
However, the trans¬
portation ratio was pared more
than two points and other costs

basic weaknesses such as a large

Treasury using the short¬
part of its program of raising new money to
is being assumed of course by those that are
currently buying Treasury bills that the tightness in the money
market as a whole will not be accentuated much more than it has
est of maturities

meet the deficit.

first

year

toward
for, the
industry.
Restoration of invest¬
ment confidence normally, sooner
or
later, finds reflection in re¬
newed speculative interest in the

cost

account,
depreciation
accruals
have proved quite inadequate for
replacements and
certainly not

slow rate of turnover in the plant

the

week, is Chicago & North West¬
ern.
This is traditionally a high

with the

even

For

expressed

which attracted

marketability and stability which buyers of Treasury issues are
now seeking.
There have been temporary periods of uncertainty
in the near-term issues, but this should not be
any more pro¬
nounced than

being

well ignored

Demand for Short Issues Unabated

seems

it may,

as

unprecedented if these second¬

situations

The short-term market has been and, according to
many fol¬
lowers of the money markets, should continue to get the bulk of
the demand because here is the sector that still

The opening months are
poorest of the year, many
years resulting in operating defi¬
cits. All earnings generally accu¬
mulate in the second half, with
the fall months being the best.

the status of, and outlook

as

been

badly shaken by recent developments and it is not going to be
easy to bring it back to where it was. Accordingly, there will be
bonds for sale as prices reach levels where the holders can
get
out of them without too much sacrifice on their
part.

is often thought that debt

repayment

concerned

Be that

fidence

This might, however, be only a temporary
many owners of the longer-term Treasury
just waiting for higher prices to come along in order
are

any wide
break in rail
prices while this condition

issues were not eventually to
participate in the renewed con¬

so

The confidence factor

The road's

ary

money

obligations.

are

a

the

good

of

stock

be

that they can get out of these securities.
far as the long-term government bonds

analysts attribute

individual following.

exists.

Under such

issues

is

seasonal.

company

ger

to

authorities should make changes
market and ease the situation
somewhat, this should give the whole government market a fillip.

betterment because

As

confidence that there is little dan¬

for these

a very costly way
acquiring long-term investment

favor¬

traffic prospects
coming months it
seems possible that there may be
ditions consider this lack of pub¬
lic speculation in carrier equities significant earnings available for
the highly leveraged common
as
an
element
of
fundamental
stock for the full year 1953.
strength and there is widespread

appeared to be

has

a

weather

quite favorable.

were

Most

Students of general market con¬

of

taxes

as

this year.

far

operations and earnings are highly

rent

Baltimore &

has
in¬
stitutional buyers.' The group has
attracted very little in the way of

conditions, the longest term issues, including the recent
314s and the most distanb2!4s should respond marketwise to such
a stimulant and this should
be reflected in better market action

after

semi-invest¬

to scattered
Periodically

largely been confined to the

Although there had been some fairly steady progress on the
upside in the past few days as far as the new 31/4S are concerned,
the move up to the par level was brought about on not too much
volume or activity. However, when the new bond had about made
it back to the starting point of
100, there was, and according to
reports, there still is, plenty of these bonds for sale at the initial
offering figure. Some sales have been made at the 100 level, but
until the very substantial amount of 314s that are
overhanging the

in their policies toward the

been confined to

measure

investment

that interest in the rail group

the

so easy

has

and

an

withdrawn, it is not going to be

another

buying

this unusual condition to the fact

Holders of Long Bonds Want "Out"

or

The

seen

the whole these stocks have gone

Treasury.

absorbed

is

this

not

be

nowhere.

government

to meet

far

so
so

earnings comparisons to date have
been

Ohio, Chi¬
cago Great Western or others of
like caliber but consistently when
such buying has taken place it
has failed to carry through.
On

1978/83, about back to the price of 100 at which it was originally
when the government went into the
raise

large

to

last

there will be flurries in New York

re¬

made available to the public

large interest charges has seemed
quite easy. In contrast, the pros¬
pect
of
paying
dividends
on
securities

remains

late

categories or
special situations.

make progress on the way up.
To be sure, if the monetary

equity

it

but

or

the

of the list, reflected
state funds and Federal
agency accounts, according to those that make markets in these
securities. The quiet firmness which had been on display in Treas¬
ury issues had taken the longest outstanding bond, the 3*4% due

to

section

this

move.

in

the longer end

period of prosperity and buoyant
prices, the carrying of even fairly
a

in

ment

selective purchases of investors, traders,

market

break

tional installation of diesel power,

Central,

evident in the

failure

result, and further aided by addi¬

abortive

new

the

been

speculative issues to

more

whether

The firmer tone

are

has

display any marked or prolonged
strength. Some buoyancy was dis¬

funding obligation because of the 2%% rate.

market

the

of

2%% Rate Highest Since 1933

felt that corporations with funds will be attracted to the

open

concerned

stocks

has had

The company
able

road

The 2%% rate for a one-year issue is the highest rate the
Treasury has paid since the bank holiday of 1933. It is believed
that the 2%.% coupon for Treasury certificates will hold the attri¬
tion down,.despite the tight money market that prevails. It is also

bond

the strangest aspects of

of

the prolonged bull market in rail¬

it^

;

some

when

care

2%

with expectations.

the

in

elements

day when less active business will
really test the ability to control
expenses

Governments

The Treasury came along with a one-year certificate bearing

in

are

on

By JOHN T. CHIPPENDALE, JR.

addition

In

the need for

41

capital
of

savings rises with the rate of in¬
terest, it is apparent that effective
controls

(2225)

liberal

has
so

concerned

been any

out that the

been

tradition¬

as dividends
when there have

far

earnings, and the strong
justi¬

financial status of the road

expectation that such poli¬
Lewis & Co., 1723 Euclid Avenue,
cies might well be continued. As
members
of the Midwest Stock
recently as 1948 the common paid
Exchange.
$2.00 a share.
fies the

Securities

potenti¬

CCAIAHTEM IAII10AB STOCK-10MM

25 Broad Street

New York 4, N. T.

Telephone BOwllng Green
Members

9-6400

Nat'l Assn. Securities Dealers. IM.

12

<2226)

.

*

...

r.

K

...

The Commercial and Financial Chronicle...Thursday,
May 21, 1953

counsel to the Secretary of Bank-

CONSOLIDATIONS
OFFICERS,

Yale

"

Pennsylvania

University

University

BRANCHES

NEW

stone

of

Bankers

and

ETC.

REVISED

and

special
Attorney General of
Pennsylvania. He is a graduate of

News About Banks
NEW

modern

ing

Deputy

School

of

;

stock

a

of
F

HarrUH

Chase

Hardiman

National
in

Branch

Park
and

Tnhn

Bond

T

Inelesbv

FV»tr

j

S.

Wilbur

alenartments

Named

Parw

tional

the

in

banking

00*0
$100,000

Bank

the

Assistant

ditional

the

of-

the

and

expected

ample

Donof the Wall Street Journal
of May 11 said:

that

parking

office

of

facilities

great

a

because

deal

the

this

the

of

at

Muskegon

tional

Bank

real

office

will

its

in

outstanding

be

statement

value. A
special
meeting to consider

par

June

on

shares

is

re-

resolution

quired to pass the

au-

the Currency must also be obtained. According to J. F.
Sullivan,

of

Jr., President, it is contemplated!
by the board of.directors that a

1953, reported
surplus of ,$800.0.00

and

same

thorizing the stock dividend. The
approval of the Comptroller of

condition April 20
capital

stock dividend

the "bank

of

25. A favorable vote of two-thirds
0f the

Maurice handled in the Muskegon Heights
Colin, President. The Chicago edi- office. The Hackley Union Naa

plan calls for

the proposal will be. held

aceording to

-"Declaration o.f

everv

25, 1953

par value) to 320.000 shares with

mortgage loan and installloan business now handled

the

at

for

the

the

ment

be
ad-

one

JuL

capital

stockholders'

estate

stock

of

as

May

on

would

rate of

of

dividend

Plete faci ities wdl be available at
ban.^.lng service. Complete
oan
1S

stock

from

quarterly.-dividend „of.> 90

George:.tu.rers

Branch /and

stock

raising

Senior

a

share

threeowned^
The

meeting

a

at the

ot.

Bank

proposed. by

was

dividend

^he Muskegon Heights oifice. It

to $150,000.

of Personal Loan and
Credits for that company.
After
the
merger
of
Brooklyn' Trust ' with
Manufac-

Na-

The

,

April 24, from

ac<-°un*s;

Consumer

First. National

Francisco

$6,000,000 to $8,000,000 by
necessary * increasing the amount of
capital
officers to conduct a comst0ck from 240.000 shares
($25.00

junior

capibds°c
om $'600,0i001to $1I,000,000 by Uan.sfer of $400,00.0
Su- from tbe undivided and suiplus

Vice-President,

San

the directors at

000

Trust

Brooklyn

remodeling,
charge of

Vice-President

The board of directors of the
Liberty National Bank of ChiIsland cago have voted to increase the

Coney

the

of

of

Heights

gon

of

his

pervisor

operating

of

National

Crocker

be

distributed

fice will be in

capital

pervising Officer, and finally Su-

Managers in

G-Andersen

First

Mr, Viemeister

of

stock

entire career,
starting in 1919 with the old Bank
of
Conev
Island, continuing as

to

B.

Jfe?York^Citrbranches were"
William

the

the

amount

same

to

deposit

Upon completion of the Muske-

.

Company, and rising in succession

William H.Sid-

of Head Office

Jr

of

for

Association

the

engaged

throughout

branch

Campbell

and

Boemermann and

of

11 years.

manager'

r s

Suits of the Trust

Benartment

dens

Cash ie

John

were-

Dudley S

ard

pro-

Vice-Presidents,

A^istant

new

been

President

the past

has ' been

Chase's

of

have

Second

to

mated

City

York

New

Deoartment

the

of

National

Bank's

the

safe

deposit vault will have provision for 1,000 safe deposit boxes,

.

dividend
new

steer is

new

safe

J

$25,000 and the sale of

A

and cash vault will be built in the
; 14,
of the present
building. The

Law
.*

:

Indiana .lime-

rear

v

Through

-

;;

of

stainless

constructed.

the

Pennsylvania

(1934).
•

CAPITALIZATIONS

(1930)-and

front

arid

cents;

Trust in 1950, Mr. Viemeis-:-of. $400,000 has been recommended each,
and .undivided' profits
of. per.
shares;e.quaR;to. $3460; per
transferred, to the Per-' to the shareholders. ApprqVal by ;$938;425; total' deposits' of,
544,- share,
"moted to Assictant M a n a k e r s sonal Loan Department of Manu- stockholders of this action will ,858,877 and total resources of the; per annum, will-be'paid on
320,000 shares " presently to
were:
Willard
C.
Butcher, Im- facturers Trust, and in 1952 was "give the bank a capital and sur- $47,923,672.
be
outstanding, beginning with
norters & Traders
Branch-'Clif- appointed an Assistant Vice-Presi- plus totaling $2.2 million, Mr.
/ ?
*, *
tbe quarterly dividend payable
tv-rd
T
Mahler
Prince
Street dent, Mr. Post, the retiring Presi- Cohn said. On Dec. 31. 1932, the
Through the sale of new stock Oct.
1, 1953. This dividend rate
B-anrh
and Palmer O
Turnheim
dent/ assumed his office in 1942, bank's capital and surplus account to the amount of $50,000 the North
represents a 20%
increase over
Tkid Street Branch
' when total assets of the Associa- was $400,000. Since then the Dade National Bank of North the:
present dividend of $4 per
*
#
tion were under $2'V2 million. As growth
of capital accounts
has Miami, Florida, has increased its share
per annum, based on the inT
been derived wholly by retention capital from $200,000 to
election of Augustus J. Martin of April 13, 1953. assets stood at
$250,000, creased number of shares of stock
miUion
He
had of earnings, he said. The
deposit the latter having become effective to be distributed
to each sharev Jtl*
CTafii Tr,.J
«f
previously been Secretary of the-growth- during this same period May 4.
.
*

79th'Street Branch.

Snter

'

ter

Pro-

was

'

rnLl

I nln^

RAn i

S

^fnPrp^iS
rfppnliv

Mr

nnZriorX'

the: Jamaica

dnna'

inUn
rnmn^nvin
rfn IprnfvL,

Hp

enton.' Florida, Mr. Post will

thp

til'

main

re-

*

*

*

-

is

:

when

the

stock

dividend

approved.

"Upon-approval of
the stock
dividend," said President Sullivan,
"$2,000,000 will be

/'The bank was founded in 1912
The capital of the National
by 175 local businessmen, includ- ®ank of Fort Sam Houston at
ing the late Julius Rosenwald, San Antonio, Tex., is reported on transferred
from, surplus to unformer Chairman of Sears, Roe- May 6 as $300,000, increased from divided
profits", and a
similar
buck & Co., and members of the
by a stock dividend of amount from
undivided profits to
Morris family, former owners of $200,000.
,
/.
capital, following which the capiMorris Meat Packing Co."../
./..
*
tal account will be $8,000,000; sur;
«
^
*
;
5 ' ?' ?
share capital stock plus $17,000,000 a n d undivided
d.v,de"d to the stockholders of
profits^ approximately; $3,500,000."
which business, ;civic and com••
•
...

Director of East Brooklyn

a

excess of $55 million.
.

Company, Inc., Vice-President of
National Bank,
Jamaica, N. Y., and Cashier of the
American National Bank of Brad-

AnnSv
mLI hThwn IvLa '

pSoKr

holder

..

is in

New York State Bankers' Association> President of the Bondicator

Mav

.

.

Savings and Lean. He is also
Director of the First

Mr
Chairman

of

the

Martin

Toint

Finance

a,

Bank of Port Jervis, N.i Y.,,and

2os had general supervision of all

a

,

.

.

.

_

Director and First Vice-President mumty leaders participated,

Committee - of the Commercial
Caion Group and Chairman of the

a'v„

vSfrance3ComraniS CommeSal
TUaion

Assurance

British

General

rtri

The

Co.,

Ltd.ji

Tnsiiranee

15:;

and IMon Assurance

iti-A

Ma

!e

oicn

American

wlinf

i?

r

mSSS.

reslde

Cn

Port Jervis,-continuing

m

turer

started

Society-b's Directorships . and connected Arcade Building
committee work.

of

Oeean
'

(a

I

An

j

?,n<?

: ^

:■

Pullman,

.

: -:

: ; J

-

c j

inerea^p in the ranital of the

?\
a
»«ct0r of the Commercial Union

Peoples

.I/re Insurance Co. of New

which

1889." In

York

Casualty Co.

•

pr0ved

•

«

fa

.

Directors

a;i

*0.

Meyers

Assistant

formerly
■

Cashier.
Assistant

an

associated

4B-ranch

was

with

the

He^d^

$1-°°.each'

At

a

;

.

,,

is

...

...

f

-

s.:t®. 1"eretas® 'he capital of
nnn

Office

of

-

shares common, par $20 each)
were aPP^ved by the New York

the

■"

-

.

.

.

..

Banking Department

meeting of the board of,

.

*

on

.

Bv"1 FarrrS-

A merger of the Yardly
"OMl Bank, of. Yardly,

(°n

r

-in Assistant T^Ict
rme
laohimeH
K' °nfff cer' wak
-^iirTiaii
Officer and

NaPa.

-(common stock $100,000) with
Bristol Trust Co. of Bristol,

off,

a

under the charter and title

A

effective

the
Pa:

of the

April

10,

70th

Bank

held

May

Execut

candel.lighting'Ceremonies

y,

ve

■

at 2:00

to

|.
e, a

to

banjE-s

Dec.

time

the

^

31,

'(

,

,

..

•
■

rw

*.

the eeon-

om>'' without further inflation
excesses.

been. accomplished

-

^aarter Century
mverSavmgs Bank
atasheld

i/

on

May 19, with

,/

a

of New
a

York

dinner

(Bryn

.

Scott,

Mawr,

Pa.),

Philadelphia

and

attorney

tf^ngn-Were "ew members Wal-. Malvern National Bank,
i^'<?enne<ly',?e,?lna
be
Quire Corner A. Wolfe, J. Waiton vern. Pa., was announced
n,

Andrew
C

and

James De Lucci.
Benzoin is President of

b,

,

Frederick H

,

I-

vie

»

a

illstant

Vice-President of' Manul
1. ■toriurers Trust Company of New
York

has

been

elected

President
Brooklyn Savings & Loan
Association, of Brooklyn, N.
'Of East

Acceptance Corporation

inception, and in
Pr«slden.t of.the

reveal

^00 ^
1883

the

?r




Mai-

on

May

1947

since

was

its

elected

a

local

presently

operates

operation

into

concern which
13

states.

small

Mr.

loan

Scott

has served
as-special

by

are

how

authorized

in

period of general stress to lend

a
on

! These, I think are the
uses'of the discount

appropriprivilege.
Clearly they, do not • contemplate
misuse "of :that privilege for. the
ate

prices.

haVe had to

In many

come

to

cases

the

they

•

Reserve

Thp initiative

in

thA HptAnnina

tion of d scount rates is

nS

hv

were

on

Dec. 6, 1926. During the .bank's
history, there have been five Pres-

discount

operations:

The

use

a privilege. It is one of the
member,shlP »» ?hc Fed"
? n-T 7
and_ Bartho- eral Reserve System It is not an
fe. OToole 1932. * has been automatic privilege, however The
who
President since
.Reserve Banks

:

^

extend

Muske-

Hackley

Union National Bank of
Muskegon,

Mich.,

was

started

May 1. The

additional

12,000 square feet of
property from the Chesapeake &

Rwy. The remodeled

quarters

will

banking
The

occupy

bank

building

a

remodeling'?oMhJ

Heights

there

parkiig facilities

and

office

will

be

Muskegon
complete*

in fact about all of the old build-

will

be retained

the side, and back

-

authorized

are

to

to

each 7member

bf1k- with due regqrd-for- the
c

Tese™^

}v

wrIISb

H

Btl

will

be

member banfe

.

.

-

T«h

fn'r

m,s -a"d

erantine

ia also .vested ' in

(he directprs and officers of the
Federal:: Reserve : Banks.. They
,

the iudces

mu6t be

the

ground

and

Thev

are

on

ard-presumed to

be familiar with local
conditions,
econ-

-.

,

du,^y' and agriculture

the

^milav!

demands of- otherwc]j as-the state of the
member banks, the maintenance omy nationally
of sound aredit conditions, and the
„
A ,
. h,
accommodation of commerce,
" befoiV is /n
inge/ous

,,

blending
'
of public- and private
partieipa?
«Ren-.'
UonPfa pSbSc totitation "crea^d
on- its

When a member bank
enees unexpected drains
reserves, it may appropriately ap-

*

,

the

Gongress

to

regulate-the

W,, ^ g^ess to., reg. ato tiw
^ly 7 a R^rve Bank for credit, money supply The ingenuity i,
Uexemplified, I think, in the comadjusts 17 °Per.ati?ns to £
mrnto 'banks P°sition of the boards of directors
5
oroVnotiv

remv

thfse

tem-

of the Reserve Banks. They

rep-

otMember banks resent a broad cross-section of inP°rary borrowings' Sa1

are exP.ected *° anticipate normal dustrial, business, banking, agna and be in cultural, and professional activia p0sltl0n to meet them
ad" ties, both large and small—and

SeaSOn?.' reduireman

justments in liquid assets with a they in turn are called upon to act
minimum reliapee upon,borrow-^ in. the batiohal interest and not

A new Ing

..-tT-

rests

Board

the resnonsihilitv

,

on

bank has leased the property immediately to the west of their
Muskegon Heights office for a
period of 50 years and leased an

Ohio

credit

disiouhr^rites

of

discount facilities has been termed

jdents^ G^rge M. Pullman Frank
^nnalT
fd a'

a ?iember - of-: the 80th-82nd ing that

ost. Congress. He

stand
or ex-

funds

ob us bere have been afin °n.e way W",another in
transition- Member; banks purpose/ofenlarging

known

had

/eet^avaUabl^'for

nationally-known

for

^nk dis^unt windows to borrow
ap'proxU borrowing8"^ officerrLd^ di- v°ardn °£
dlre?.toryf
respeclately $60,000,000. Pullmah Bank,, rectors o/ihe Reseive Banks have
,'teSTlm^nt^^nrib&tv
the sixth oldest bank in Chicago, had to shoulder again the
very
|veh^fhoueh^inar dCteSnmaibn
moved to its present quarters
important responsibility for these L

84 by 76 feet. In addition

a

Banks

despite the di-

^caTdXV'Sl^"

company. It was

bped from

'

member banks. All of the Reserve

or

And this has

V_.::n.
/'fai',, '
D,scount P"v.lege

r>er

bank

thafNor'th Am/rTcan "was deveZ

■>riy?S'%n%0UEC^$ -vvas
1
-

of

11. Mr. Fernon has been an
execulive officer of North
American

Y.,.;offices in five

.

and

Ath!etic< Club, former member of Congress, to
flrstu Annual the board of directors of the

thelr

-Bobertson

Hardie

traordinary .needs

.,

the

The

7:'

•

-lhiS
a
bank's
pei>. have not had unrestrained access, capital base, or^,earning a "rate
Thn
to Federal Reserve credit by the differential, or facilitating, specuth»t
fa
of «?vernment securities at iation of any kind.-'.
""

threp

election- of Norman i
'
*
*
*
Kng, i?f tt>e.F«rnoni: President ,of the ■ North:'. The remodeling of the
Club of the East American Acceptance Corporation gon Heights office of the
/■:

•

of:

h?,/ini

_

* ;•

,

•

,

adjustment

_

•

'

-

-

h

w,

■:

:

•

„

the.

7T

:

-''c-.l :

/,-ite! fe-ted

anri

j1^ tc, the tbree

a!rhiv«

bank's

of

of

wou/ri e.f/
awarded

were
_

leneth

C

in ,he ordelly Srowth «

an

the

euess

—7—

-■>.'!

the. Reserve/Banks, ;of
course,
moneY supply during this period ready to meet exceptional,

^J

were

■
..

,

-

M

Posslble

^
tocMado.i top of,a huge bnthday
liven
onnortnnhv

the totalresources

.

.....

speculative

bank

.

&
/ :
r° 7^
Mr.-Desch,trom $1,440,000^(in 72,000
Cashier;: is" shaCes- of .common stock, par $20
I Domestic
I 6
'
'
Vn" h\

Head Office.

:

New

/
r

m

the

Thursday

on

:

.

Old

annexed

of

O'Toole

appointed

Administration

Bank at

the

-Iben!f/. value of ^shares

Carl W. Desch was appointed
Assistant Vice-President and

Harry F.

24'by

was

Anniversary, Pullman

eo os It'
Safe Deposit an open house
P

April

on

Si

Board

The

National--City
New York, held. on
May

®ank of
I 'i,

of

Sa^f^

National
National

the

in

/

.

v

,

I|| |)«|# mq« 01
ID I/6ICHS6 ■ gjt |1,A Tfllloral
1116 t€u€I«

in .he Town of

observance

f»mPany or yfMe Kains, N. T.,

,a,.d Columbia

bank

a

■ ■

,

"

of/redh to

ba"k

Q

Borf

PnnLi Tr.Lt 7

v

: -

- ■

•

•

_

Continued from
page 16

State-chartered Ghicaeo on May 7. It was on May
The Savings and. Loan t Associations. 7p 1883 that George M. Pullman,
Co.. Following his retirement, he will pioneer sleeping car manufac-

Insurance

Palatine

tea-

_

'at-the•.iFed'6faUReseiYe^i,^ai:/for^th^fSpeciaI:/Mvafitkgfi'-'';6f\'knY:

Number 5222... The Commercial and Financial Chronicle

Volume 177

■v

(2227)

faction

group or

section of the

or

Analyzes Outstanding Consumer Credit

country.

They have
ter

duty, also, to fos¬
understanding of the
a

wiaer

a

role that monetary policy
piay—wnat
cannot

derly,

it

Cheyney, Executive Vice-President of the National
Credit, in an economic appraisal of
current consumer credit situation, contends nation is experienc¬
ing shift, in consumer buying habits and denies people are

desire

universal

for

or¬

"head

■*»

steady economic progress,
constantly improving stand¬

and a

Securities Salesman's Corner

Foundation for Consumer

it

wnat

and

can

William J.

should

accomplisn.

.The

By JOHN DUTTON

heels" in debt.

over

Most

In a statement issued by the
"(2) About 10,000,000 families
living, certainly cannot be
National
Foundation
for
Con- were living two or more families
achieved witnout flexibly admin¬
sumer Credit#William J.
Cheyney, to a dwelling place, house or
istered monetary policy and ac¬

ard of

tion—with restraint

creation of

on

excessive credit in

boom

a

and

of liberal monetary
inflationary
dangers

policy
when

Criticism

of

ease

Federal

Reserve

ly sprung from ascribing to

mon¬

etary action an omnipotence that
not

and

if there

even

to

enough

would

exist—

not

execute

and

policy perfectly.
objecting to criticism

I

monetary
not

and

should

think

I

am
we

—

do

we

in

takes, has to be well informed and

no

out¬

standing

and

The Federal Reserve Banks

According

"(3) There
units

of

lion.)
to

about
William J.

OUSly when

the

used

errone-

discussion

really

Federal Reserve shows about
$18,-

875,000,000

instalment balance.

on

"This, the $18,875,000,000, must
be

spective areas for gathering eco¬

broken into its components:

u,

information and making it
cq

to

\

Rnn

.

,

,

F

„

,

goods
per,' about $5,000,000,000.

''Steps to Maintain Eco¬
nomic Stability" which was issued

zation, about $1,500,000,000.
"(d)

Committee

the

on Economic
Stebilization of the Board of Di¬

the

of

rectors

Federal

Bank of Boston is

Reserve

It
area

example of informed discussion of

an inspir¬
trusteeship which
this System and its member banks
share is vital to the preservation
of our system of private enter¬
prise.

.The
made

The

System, I

nomic

the

of

attainment

progress

It

years.

I

can,

make

tinue to

am

the

eco¬

past

two

confident, con¬
important con¬

years

confidence

That

I

what

after

would

few

happen
of

years

the

consumer

considered.

to

us

a

paper,

it

credit controls

Even

here,

controls
a

people is that

some

leads to

war

prosperity, or that war is pros¬
perity.
I can't conceive of an
economy based on war that can
ultimately be prosperous. We have
to go
through certain readjust¬
ments
to
have
an
intelligent
peacetime economy. We've got to
have

business

our

based

on

ini¬

tiative and competence and sales¬

manship—on

materials

raw

products—and not

on

spending for

upon

war

purposes.

I believe that this country has

flexibility

—

the

and the capacity

and the character—because it

character—to unravel this

quires

twine

of

ball

that

and to do it in

up,

lead

—

re¬

to

we've

a way

wound

that will

higher, a more ex¬
pansive, and a better standard of
living for all of the people.
I
us

a

ST.

to

doctors

lawyers

P.

Chronicle)

associated

Beach

Woodburn has
with

hotels,
business

people for furnishing and equip-

ping their enterprises.
"(c)

modernization

Real estate

loans, for the most part represent
debt

investment

of

They

deal

estate

value;

sumers

with

character.

increasing

real

not debt of con-

are

for consumption purposes,

"(d) The $3,900,000,000 charged
to consumers under 'personal insmall business; doctors, lawyers,
rooming houses, hotels and others;
also
a
considerable
portion
of
loans

made

curities

to

The total

purchases

other

and

is found

of

seT

investments,

chalked

up

as

become

As to the question

credit

sumer

Mr.

today

whether

is

too

con-

high,

Cheyney offers the following

He

'

present

..

total

.

,

,

writh

those

at

the

ing criteria are rarely given sufficient thought:
there

World War II ended
practically no producappliances, wool rugs, etc.,
As

was

tion of

Co.

for consumers.

jj




thp amount

avpra^p

theme

to

change in popula-

no

0f

number

or

today's

was

family units,

debt

consumer

must

be

in 1940 to main-

tain a status quo debtwise; i.e., if
a refrigerator costs twice as much

!n 1953 as V1 1949> and the buyer
in each period paid 10%

down on

his right

fraudulently
that

any

j

dt

a.s

'

■

r a

1

any

place before
We have laws
against that sort of thing and
we've had them long before SEC
and N.A.S.D., but the bureaucrats
have to keep on placing more and
more
hurdles, more letter writ¬
ing, more file work, more uncer¬
tainty
before
the
hardworking
dealers and salesmen who

are

out

good job day after

a

and who have enough frus¬
trations in the natural course of
day,

j

1953

194„

?!!

ness

and sell our merchandise like peo¬

mind is going ple in any other line of endeavor
misrepresent where we can tell the good points
Mutual Funds of what we are offering, give our

prospective buyers.

trying to do
t

nt

to

wishes

he

c e

simple document that helps
good securities not kill
Let's grow up in this busi¬
for a change.
Let's go out

sell

mails to

the

use

a

copies of sales.

I don't think

is used.

dealer in

"(.4)
valuf ol the- d°"f
^lng decreased 1940, even had
approximately
50% or so since

? relative change
^ effGCt °f ,?onsumer debt upon

^

their work

reasons in plain English why peo¬
ple should buy, and use past per¬
formance intelligently to indicate

the

for

reasons

our

recommenda¬

tions.

I

frankly,

Quite

doubt

very

much whether we will ever get to

this

desirable position in the se¬
we have a

curities business until

complete revision of the Securities
Acts, or an elimination
Commission altogether.

of

the

as

it is.

Fund shares is not any easy

h"m1h™unt outstanding!
Purchase

invent;

gradual

reDrGoPnte

equipment

accumulation

S
by the American famwealth

does its

much

as

possession of cash in bank,

insuranc5_
.■

and other asgets>).,

,

,

[
.

..

f

ple
a

hurt when

be

can

Mutual Fund? Aren't

ing

good investment?
In any
I think the present rules

a

event,
are

they buy
they buy¬

silly. Here is a case:

The

present prospectus is sup¬

posed to be left with all prospects
and delivered before the sale is
consummated.
I know of a case

^ \s the announced policy of
the Administration to cutback the
9
government, both its de-

where

J9nse expenditures and its domes-

of

Directors

St.

Johns

School, a
County

director

of

the

Harris

Chapter

of

the

American

Red

Cross, and a member of the Ex¬
ecutive Committee of the Houston

Symphony Society.

bought securities in her life was

J}0 commitments. For every bilhon dollars of government expenditure lost to our economy,
an<>ther billion dollars of civilian
?r consumer business must be
tound to take its place. Otherwise
°U1T

prosperity

economlc

falter'

must

for

a

to

ready

ment in

a

who

lady

had

make her first
Mutual Fund.

never

improved

methods

of living.

any

damper upon the will-

jogness of the public to purchase
Jhe Products of our mills at this
time- These products are made by

England Securities Corporation is
invest¬ engaging in an investment busi¬

She read

ness

from offices at 189 Montague

the

prospectus and these words in Street.
large bold type right across the
front
page
created doubts and
worry in her mind. "THESE SE¬
L. D.
CURITIES HAVE NOT BEEN AP¬

CHANGE

COMMISSION

..

:

Rothenberger Opens

NOR

HAS THE COMMISSION PASSED

THE

UPON

ACCURACY

OF

ADEQUACY

THIS

,

„

«

endless

the

of

ec°riomy

proper

is
...

a

of

use

consumer

economic

stabilizing
,

u.

u

,,

!°rC5> W,thoU " tha f.10"

CRIMINAL
such

as

these

are

of the
prospect with such things as dis¬
honesty, losses, fraud, etc.
This
clause
serves

The

eliminated—it

It hurts sales.

prospectus itself is a cum¬

terial.

should

be

purpose.

should
no

obviously

progress."

UTE ROYALTY CORP.

unnecessary,

ing in the subconscious mind

m
s prese
highly industrial*zed state, could not hold its own;
not

MARKETS IN

WE MAINTAIN ACTIVE

TION TO THE CONTRARY IS

bersome

could

1

UTANA BASINS OIL
ENGLISH OIL

.

chain

variety.
"The

Street.

PROS¬

REPRESENTA¬
A
OFFENSE."
Words

ANY

PECTUS.

879 Bergen

OR

they create doubts in the mind of
our families, who are in turn our
the untutored lay investor; the
consuming units. We live in an
word criminal associates the offer¬

,

Corp.

Y.—The New

BROOKLYN, N. Y.—L. Donald
OR, DISAPPROVED BY
Rothenberger is conducting a se¬
is to THE SECURITIES AND EX- curities business from offices at

Certainly it is not common sense

cre(jit

Form N. E. Sees.
BROOKLYN, N.

PROVED

"Our problem, therefore,
find new markets, new appetites

end of World War II. The follow-

"(1)
was

in

Mutual Funds, including
form
letters where a

as

American workers, the heads of

1

Goodbody & Co.,

Drive, North.

new

and advertising.
Let's
prospectus and make

selling

clean up the

fami¬ copies of all advertising used by
it
family took dealers in fostering the sale of us

otners, in average, the amount
of ™nsumer credit outstanding
must lncrease pr0 rata'

to put

'consumer' debt."

previously with W. H. Heagerty &
*

and

CoT
? ? ?'
of clubs,

considering the amount
of consumer indebtedness, it is the
usual
practice
to
compare
the

PETERSBURG, Fla.—

Robert

218

The Financial

N.A.S.D.

request for

'Hot

consumer

When

(Special

the
a

geaHhv taend^ftt'should fe^

<(T1TU

With Goodbody Co.

each

n^ss "professional Tn^'makinga

remarks'

have that faith."

that

with

out

come

.

„

and stalment loans' includes loans to

dependence

nthpr<;

of

actually

•
■
a 15
a
,"I can only give you my phi¬ nnm is the indebtedness
000)
losophy on this.. To me the most rooming
houses,
small

heinous statement that is made by

am

understand

has

*

segment; not to
of the segment

suX' eimdsngnanehr.

then:

I

to

instalment

W11 IT: to
Reserve maeTS byer'hHebted"
debt.

made

were

equal

companies selling pol¬

icies by delivering the whole con¬

Selling Mutual
job—
J. O. Winston, Jr., Dir.
people who do it are not out to
more
than 10%
James O. Winston, Jr., who has
economy,
fleece anyone that I know of—if
of the total of consumer obligabeen active in business enterprises
Explaining the growth of conthey were I don't think they
in the Houston area for the past
tions, $18,750,000,000 total—or on sumer credit, Mr. Cheyney states
would do it trying to sell Munot more than $1.9 billion: for a that: "the nation has moved stead20 years, has been elected a mem¬
tuals.
Or maybe I am just naive
regulation affects only those buy- hy in a long-term general trend about this—but I don't think I am. ber of the board of directors of
ers
who, in the absence of such toward greater use of the mechanBrewster-Bartle Drilling Com¬
There may be a few dealers and
regulation, would sign contracts ical conveniences of the scientific
pany, Inc., it was announced.
salesmen who "oversell" the Mu¬
on terms 'easier' than the
Mr. Winston is an officer and
regula- age. As larger shares of the contual Funds, possibly there have
tion would allow."
sumer
dollar are spent for the
director of Rowles, Winston
&
been some so-called abuses, but
Commenting on these figures, more lasting products, there must who is going to get hurt when Co., Houston investment banking
Mr. Cheyney points out:
- be
a concurrent increase in the they invest in a good fund? Don't firm, and a director of the Freeport Sulphur Co., New York City.
you think that all this regulation
From 1933 to 1942 he was Viceand rigmarole about letters and
automobile
President and Treasurer and also
advertising, etc., is going pretty
represents indebtedness for vehifar?
How many foolish dealers director of Navarro Oil Company,
World War II he
membered that
of the and salesmen are there that are and duringmajor in the Army Air
breaking
laws — I
mean
doing served as a
living purposes. But all automoof
things that are downright harm¬ Corps Training command.
He is Chairman of the Board of
e
hen e its purchase ful to the public? How many peo¬
such

genuine
peace—and I can do no better, in
concluding these remarks tonight, eral
than to give you the reply as I
a

loan

standard

a

twice what it

'"cfe °dit'outstanding

ahead.

deeply feel.

asked the other day in De¬

was

troit

sustained

of

an

tribution in the

I

certain, has

am

notable contribution to the

a

that

in

would affect but

ever an

exacting one—but it is
one.

only

course,

,Your task is more than
ing

Instalment

is

are

affairs.

economic

pa-

about $3,900,000,000.

commendable

a

consumer

(c) FHA real estate moderni-

port on

by

'Other

about 39 mil¬

Alc\fuu 11
VtJ"i* a
on the same dollar debt load

tion

explain what they do, and why,
carrying out their part in the
trusteeship over credit. The re¬

"(b)

on

6 paper, about there been

nnRnnA110

$8,DUU,000,000.

in

1942-43-44.

If each of these units

live

lies and if

is

instalment outstandings. The

on

were

family

more

I

that enjoyed by the prewar

Cheyney

$25,250,000,000, which often
micitr

fur¬

lion family units—in 1953, 57 mil¬

to¬

a

25%

than- in

(In 1939 there

Fed¬

Reserve

reports
tal

necessary

Insurance

this

make these op¬

are

today

ment:

"The

what

erative.

Chey-

ney's state-

rec¬

duty

own

But Some Do!

—

tract in sample form and asking
going to "beef" about the prospect to read it before buy¬
week—possibly some in the ing? It is true that Life Insurance
N.A.S.D. also, but I believe there underwriters occasionally suggest
will be a good many salesmen and that some people read their conr
dealers who will agree with my tracts, but only a few are able to
point of view. I don't think it understand and analyze them. The
serves
any
purpose
to complain Life Insurance business today has
and
discuss what's wrong with matured to the extent that life
any business unless you
can
do underwriters make the decisions
something to make it better. I for their clients as to what type of
think its about time for some cor¬ coverage they should buy and also
rections to be made in SEC policy what amounts they should carry.
regarding
advertising
that
are
My point is: Let us make some
long overdue. Then just this week sensible rules to guide us in our

as

most of the families

1953,

nishings, etc. to

eral

existed

involuntarily, 'doubled
up'
had
expanded into individual home

units; required the

Mr.

newly

separate quarters.

"By

figures.
to

Prospectus

but had established

analysis of the

ognize, I know, the special re¬
sponsibility they bear in their re¬

a

his

gave

of

People Do Not Read The

There may be quite a few peo¬
ple in the Securities and Exchange
Commission who won't agree with

(for the most part

service)

consumer

credit

is

have

military

buying units

understood.

They

data

the volume

sin¬

analysis and comment that can be
useful in guiding future action,
though it cannot rectify past mis¬

available.

Millions

apartment.

on

critical appraisal
performance. But critical

nomic

the

provided

cerely welcome
our

of

married couples

omniscient

were men

devise

Vice-President

organization,

of

no

policy and performance has main¬

does

Executive

a

longer threaten stability.

of

43

.

technical

never

document that

be used as

Can you

sales ma¬

imagine the Life

Information

on

request

W. D. Nebeker & Go.
Members N. A. S. D.
PAC.

NAT'L LIFE

BLDG.

SALT LAKE CITY 10,
Phone 9-3783

UTAH

44

The Commercial and Financial

(2228)

Continued from first page

an

effort

stem

to

any

proportions.
The
not

o

r^.

systems are, of

work—not in

Continued

when

set when "inflation"

course

seemed

Overlooked
-

It

'

to

to

alter

impend;

a

overlooked

-

Facts

the

Federal Reserve

or

But if the seeds of

have been

ment

what

reason

unorthodox

planted and

and

<

extremely

a

Federal

them from

taking hold—or if it did

so

or

tion much

worse

merely lead to the same situa¬
compounded within a relatively short pe¬

riod of time. Could we, as John Law and

some

of the

more

recent

monetary deviationists have supposed, really keep
ourselves perpetually
prosperous by coining anything or

everything at hand into money? Some such notion
to

us

to underlie

a

good deal of the reasoning

now

seems

making

Itself heard at times in

industries

surprising quarters.
subject is to the fore, it may be a good
time to broaden the
inquiry a little. Is it true, for example,
that various expedients such as deficit
spending in its
various forms can, either with or without
support from
the Federal Reserve

System, be expected to prevent the
development of a business depression? Here, of course, is
a question which
goes to the heart of much that is being
mists with international

by

many

including

circumstances

whose

with

but

which

These

not "a few inefficient

are

organizations."

tiny

They
of the

segment

They

not

are

have developed within the past decade or two
a
strong first line of defense against de¬
pression in the future—particularly when the old age pen¬
system gets into full swing. Yet the skeptic may well
l>e excused if he asks how
taking money from one con¬
sumer or investor and
giving it to another will help sustain

not "a
economy."
"special in¬

even

are

terests," for they make
stantial
part • of
the

from him who hath in such circumstances would be

more

than

month's

a

States
.

„

authorities

*

shut¬

facili¬

.

are

tions favorable to the
foreign bid¬
der.

They feel they are following
policy of helping a
friend in need; and
they contend
that the import duty is the same
the

national

extra

as

ment.

income

on

effects

such

of

govern¬

the
policy

course,
a

industry; and they for¬
considerably larger sum

the

of money

paid to the government

taxes

as

our

vital

a

get

to

They ignore, of

adverse

by

the U. S. manufac¬
turer, by his suppliers, and by his
employees, on their income.
The "Compensation" Proposal

Some proponents of "universal-

ist"

free

trade

do

recognize

the

tion." The Mutual Security
Agency
called for import duties to.
be placed in a fund for

payment.

a sub¬
nation's

up

to

have

successfully

competition in
quality.

years in which to convert to other

and

products
nized

foreign
price and

dustry

wheel

unreasonably,

by

They

high

owned by

are

thousands

of

tariffs.

hundreds of
and

stockholders

serviced by millions of employees,
all of whom have a direct stake
in the continued profitable opera¬
tion of those companies.
But
»

the

are

fears

to

such

cient
can

out

volume

dislocate

to

production
of

work?

Ameri¬

throw

and
With

Are

suffi¬

you

men

permis¬

sion, and because I know it best,
let me cite
as
an
example an
important segment of the electri¬
cal

manufacturing industry. With
degree and detail, it

variation in
can

represent the other industries

have mentioned.

I

mass

units

a

instead

year

turbine

much

that

I

in

chine

gener¬

convert

interest, but I am trying to
speak in the national interest as

well.

shall

I

truthful

a

the

do

and

best to be
witness to

my

honest

facts.

of

age

the

of

$2

over

represents

that

involved.

are

ments

Now,

turing

the

electrical

industry

preferential

has

asked

none

of

products.

its

can

be

on

an

mass

on

the

produced

geared

at

consumer

the

no

has

vast

industry

produce

the

Electric

mass

industry has demon¬

strated it can offset the low for¬

vital

security.

is

be short

of orders

the

production aisles

To

production,
to

implement

it

with

equipment,

with:

of war, the sources of
equipment could be walled
us

completely, leaving us:
turn to for repairs,
replacement parts, special tools,,
or
engineering j or maintenance
nowhere

to

services.

coun¬

tries

One of the foreign firms
business in this country
75 miles of the Iron

are now
competing for the
limited volume of American
pur¬
chases of heavy power equipment.

awarded

Some

turers, unlike the American

of

them

lies

within

Curtain.

nationalized

are

of

national

our

have had limited expe¬
weakens our defense. In

off from

cleared

are

during the-

event

such

before

of work now in
progress.
At least nine
European

in

articles

we

rience,

nation's

The

foreign

manufac¬
com¬

These companies
pay their workers wages that in

panies, do not have equipment or
engineering crews available in
this country for such
emergency

some

work.

companies and

some

nation¬

are

ally subsidized.

in

cases

are

only one-fifth and

of

are

American

such

high

as

as

manufac¬

high standard

workers,

know

16

of

States

facturers

.

and

of these.

In

on

dollar

such

sound like

a

business

the

six

United

well-meant

keep

an

it

basis,

How

can

is.

You*

industry alive

on

producean emer¬

keep highly
paid and highly skilled employees^
with you?
They will not shove toassembly lines, for they do not
shove
easily.
Are they to sit
around

on

a

you

kind of Federal

re¬

lief,

forgetting all they know,,
learning nothing new, and train¬
ing no one else, while they wait

relatively small

of

a

gency.

volume, their

part of the total electrical equip¬

or

ready to
critical goods quickly in

1952.

awarded

national exist¬

gen¬

erous

manu¬

in

our

Moreover, it is just not possiblemaintain any industry vital to-

cannot

by

which both

bids

in the plants which

go

key to

national defense with direct Fed¬
eral subsidy, no matter how

power

foreign

were

to

maximum

heavy

entered

Foreign firms

ment

questionable-

ence.

living for

possible

and

equipment projects
United

of

made

and

the

are

heavy

Such competition will be
impossible until those other coun¬
tries catch the American vision

may

even

come

of

case

panies.

a

is

the comparable American

one

equipment
simply cannot compete, solely on
a
dollar basis, with foreign com¬

of

It

whether, in critical times, some
foreign groups should be free ta.

The

just

distri¬

are con¬

power

is

course,

peak requirements, and
that, rather than being overloaded
with business, as some have
said,
may

rea¬

But

ignored.

present

it

speeches,

and editorials produced

a

goods

the

for

security.

present debate, this consideration
has been forgotten or

This

rapid rate awards represent 42% of the total
line, wherever amount of
money involved. This

production and

cerned,

and

to

wage
rates
mechanization.

majority
Wherever goods

assembly

bution of

needed

all

which

the

beginning,

industries

national

foreign-made

I

treatment

of

to

high

manufac¬

domestic

plants, equipment and
employee training. It is necessary
that

to-

trade,
policy without recognizing
requirement to preserve cer¬

almost

in

realize

in¬

them

very father
has ever discussed,

sons

cost.

continuing basic
development
en¬

and

gineering

ma¬

trade

the

or more

production

and

research

of

to other products?

tain

50%

as

our

power

want

we

free

aver¬

hour and

an

much

as

total

Extensive

their

The Case of Electrical

Do

heavy

sands

turer

such

and

of

These

pieces are all
They require thou¬
hours of highly-skilled

of

low

process

liquidation of

tool

dustries?

power

wage.

discount you see fit to my selfinterest in this situation. I admit

a

from

very

Until now,
no one,
with Adam
Smith, the

preliminary:

To
whatever

a

tailor-made.

apply

say,

want

we

This comprises water

equipment.

40%
This
all

becoriie

to

Heavy
equipment
is the owners of the
lichee nut and
painstakingly in terms narcissus bulb
industries; but do

transformers, circuit
breakers, rectifiers, and accessory

the

real?

imports likely to enter in

tariff

should

liquidation, thereby
softening the blow for investors,
employees^ and workers." Con¬
ceivably, that may be agreeable to

techniques.

generators,

ators,

present

one

power

dozen

a

transition

subsidized

subject

are

production
electrical,

the tariff ques¬

on

"The

says:

our

But not all products of this in¬

:

shut down./A recog¬

or

authority

tion

met

design,

injured

companies, and foh
those companies to be
given ten;

can
build
these
units
arduously created capital indus¬ country
try.
These companies are- not supremely well because the in¬
dustry has made large invest¬
owned by a few rich men who

sion

commonly said that the funds thus taken

radios

labor—labor that is paid an

Manufacturing

security

we




tools,

•

standing.

will constitute

Imsiness. It is

machine

as

similar

be

some econo¬

It is often said that the vast so-called social

system

others

may

And while this

said and often believed

I have in mind

affected.

so

prevent

that it would not in the end

coun¬

disposed
fortify the foreign price advan¬
tage with two other .considera¬

and refrigerators,
motors and washing machines, we

of millions.

personally stand to make millions

time,

this

bring
industries, and
their ready answer is "compensa¬

In

rates.

produced

I am not familiar.

which

a

pend¬

of

manufacturing

„

ranges

of

and

Reserve

succeed for

vital de¬
always

seem

this debate, but

optics,
heavy
electrical
power
equipment, precision instruments,

policies developed under the influence of Mr. Roosevelt's
New Deal would kill off these noxious weeds

I

certainly would be deeply
adversely affected by a surge
imports—indeed, have already

such

return to the highly

doubtful

cheese.

those

of

been

serious unemploy¬
now about to sprout,

is there to suppose that

now

annual

more

Some

\

wage

of

or

are

of

eign

lamps,

and

policy but in various

depression

total

defense-

are

harm that their policies will
to certain domestic

~

which

equity capital—and if equity capital is not available iof
undertakings, then the fault is not to be found in
rates

rather

speak

sound

elements in the New Deal and Fair Deal programs
are all too often
still with us.

kinds

to be forgotten in

trouble; then the venture should be financed with

interest

certain

fense industries that

If it is the hazard in¬

volved in definite commitments to carry these costs more
or less
indefinitely in the future which is the source of

national

to

;

•

can

we

and

some

in the market for borrowed funds.

13

page

conveniently do
without—the briar pipe industry,
felt hats, fountain pens, clothes¬
pins, lichee nuts, narcissus bulbs

ones

that those who argue

us

to help any of us.,

—and unfairly, I think—by pro¬
ponents of absolute free trade as

in this way have
highly important facts. In the first place,
there is today not a single rate in the money market
which would not have been universally regarded as ex¬
tremely low at any time prior to the advent of the New
Deal and the flood of, "modernism" which Lord Keynes
himself lived to say had "turned sour and silly." The in¬
terest cost of capital as measured by any of these rates
is still almost absurdly low. Any enterprise or venture
which can not carry such costs as this ought not to be
seems

.

Free World's First Line of Defense

they term 4'deflation" is the threat of the day, and
now

from

the

of all United
ties in this field.

social

way

to

projects that

down

can

a

in

plan

if and when it ceases
those who express the view that

that the Federal Reserve authorities should

vital

mean

scarcely be expected to provide much
of a fillip unless accompanied by the sort of Federal Re¬
serve
policy now being advocated by a number of ob¬
servers who
ought to know better. What is being advocated
is that Treasury deficits be coined into
money. It won't

and if defense pressure eases or even
are

the

notion—which

repeatedly expressed its willingness to pay what the mar¬
ket exacts in normal course, although it has been, so it
sometimes appears to us, excessively timid about offering
long-term obligations to replace parts of the mass of its
floating debt. Some other elements in the community
have,' however, been viewing -the situation with less
equanimity. Prices have, as is well known, been inclined
toward softness in some areas, and there is considerable

what

to pay

security system as a defense
against depression is but a variant of the deficit spending

deserved, does not appear to be unduly disturbed, and has

to rise further. There

short,

concentrated

capacity for water wheel generators. The loss of these orders could

security

different) persuading (or coercing) the banks to write up
deposits on their books in favor of the Treasury.
In

may occur

Mirage

a

nothing but bookkeeping mirages.
out benefits under any of
these plans the Treasury must of necessity find the funds
either from the taxpayers at once or first from lenders
and then later from the taxpayers. If the lenders are the
taxpayers, then the whole thing comes out at the same
place as if the funds were taxed away to begin with. The
only other recourse is the fiat creation of the funds re¬
quired either by printing money or (what is not very

part of its enormous short-term indebtedness.

about what

comes

is

ing represent 10%

course,

When the time

to whether some such threat may

tmeasiness in certain quarters

"Reserves"

.

r

The Treasury itself, to give praise where praise is

;

is

but .it

segment of the- industry that

Two

him.

These much touted "reserves" of the social

.,-

suggestions made are not ordi¬
narily expected. For the moment, attention appears to be
centered largely upon Federal Reserve policy and the
tighter money market resulting largely (although prob¬
ably not wholly) therefrom. The Treasury has, of late
been obliged to pay more than it had been paying for
such funds as it is obliged to get from the investors of the
country either to cover deficits or to fund (or roll over)
any

made upon

are

threatening recession of serious
<• ......

say

try's

of the

some

can

exactions

offing has been raised on a number
occasions, at times by individuals and others

from whom

one

that he who hath will not hold on all the
tighter to what he has left—and on to more of it—if such

be in the

now

of recent

-

as

States,

but who

;Itf.

.-<■

question

actively employed in the hands of the needy. Perhaps,

i; J:

We See

*As

Chronicle...Thursday, May 21, 1953

„

for another war? Or are they to
produce machines which will have
no

market and will

be scrapped?

Volume 177

These

creative

are

52HZtff&he Commercial end Financial Chronicle

' Number

in

much

men

Continued

from

5

page

Wholesale Food Price Index Shows

......

,.t:.

•

demands in* other industries, and
you will not keep them at all with

.

The State of Trade and

healthy power equip¬
ment industry, with both its com¬
panies and their workers consis¬
tently and profitable employed,

49%

weakening of

the

and

resultant

Also,

This is just

i

as

industries

~

desired

I

help

levels

a

nations

-

labor, is to give those
disguised subsidy at the

a

time that

same

harm ourselves

we

should

like

remote

steel

by one of their own great leaders:
"A successful export

trade cannot
home

be founded-upon a starved

remind

I should like to

market."

this distinguished audience of

the

so-called Political Law of Reverse
the

Under that law,

careless

easier

the

ends,

the

about

then bring

the nobler

is

it

be
which
to

means,

results quite different

from those intended.
wall

do

free world

no

We

1

cessive

the

of

out

industries

business.

of

out

That

could

jeopardize our security and
might
cause
economic
disturb¬
ances here that would damage the
economies of the rest of the world.

It could

produce

here

mand

than

revulsive de¬

a

tariffs far

for

for
the

a

higher

position in world trade.
Final

A

I pray

will misunderstand

not

that no
I am

me.

insolationist

so-called

a

have

they

as

:

—

I

myself

considered
internationally minded. I
always

demand

It's the biggest

up?

is

of steel,

so

mit

us

am

not

welfare

the economic

maintain

to

which the national and,

on

indeed, the international security
must

depend.

tariffs

on

a

But

I am

for low

selective basis,

universalist,

whole-hog,

basis.

the-board

.wall

I

across-

repeat—a

se¬

nations

friendly

do,

nothing b,ut harm if we weaken
defenses by allowdng good will

our

to

the

take

place

of

good sense,

good economics, and good military

strategy. The economic health and

stability
first

line

of .this nation
of defense of

Consequently, conversion steel and imports still figure promi¬
nently in current buying.
With overall demand for steel

complaint

or no

some

on

base

strong, there has been little

so

the rise in steel prices. A few of the increases

over

prices but most of them have been

American

The

extras.

on

In

"the revisions in extras will alter consumers buying

cases,

patterns," concludes "Steel" magazine.
Iron

and

4

Institute

Steel

announced

that

the

operating rate of steel companies having 93% of the steelmakfng

capacity for the entire industry will be at

an average

of 100.2% of

capacity for the week beginning May 18, 1953, equivalent to 2,259,000 tons of ingots and

ity

2,262,000 tons

or

the

rate

steel for castings

week

a

ago.

as

against 100.3% of capac¬

For the like week

month

a

ago

101.0% and production 2,276,000 tons. A year ago
smaller actual output was placed at 2,134,-

was

000 tons

or

Electric

7,959,054,000 kwh., according to the Edison Electric Institute.
The current total

was

62,515.000 kwh. above that of the pre¬

ceding week when output totaled -7,896,539,000 kwh.

It

was

May 17,

1952, and 6,559,218,000 kwh. in excess of the output re¬

ported for the corresponding period two years ago.

these defenses.

British

need,

In

when

he

tribution

make

own

to

us

Churchill
pointedly

"The greatest con¬
United States can

said:
the

world

toward

maintenance

and

peace

growth

is the
of its

prosperity."

Loadings Drop 2.1% Below Previous Week

freight for the week ended May 9, 1953,
according to the Association of American Rail¬
roads, representing a decrease of 16,088 cars, or 2.1% below the
revenue

preceding week.
The

6.3%

week

above

s

total

represented

an

increase of 45,552

cars,

or

the

corresponding week a year ago, when loadings
were affected by
the labor situation in the steel industry, but a
decrease of 42,716 cars, or 5.3% below the corresponding week in
1951.

,

...

U. S. Auto

*■; ,

,

Output Holds at High Level in Latest Week

Passenger car production in the United States last week re¬
mained high and for the year to date held about 49% higher than
the

like
It

vised)

1S52

week, according to "Ward's Automotive Reports."

142,566 cars compared with 140,405 cars (re¬
in the previous week, and 94,579 cars turned out in the

aggregated

like 1952 week.
Total output for the past

week

was

made

up

of 142,566 cars

23,983 trucks built in the United States, against 140,405 cars
and 27,227 trucks the previous week and 94,579 cars and 25,360

and

trucks in the comparable 1952
Canadian companies

week.

made 8,505 cars last week, compared with
week last year. Their

8.670 in the prior week and 6.941 in the like
truck production for

the week amounted to 3,405 compared with

3,319 in the preceding week and 3.065 in the similar week a year

With
f

(Special

7

ing. Lard moved lower in sympathy with vegetable oils
hog values advanced on smaller receipts, with

Live

reaching the highest level

Military Inv.

to The

ago.

—

Stanley B.

Bailey, Roy C. Gordon and Royce
"W. Nail, Sr. are now connected
with Military Investment
111 Eluff.Street.




Service,

Commercial
ended May 14
& Bradstreet,

and

industrial failures rose

to

198 in

since August, 1950.

trended mildly lower this week in narrow
day-to-day fluctuations.
Activity in the ten spot markets was
much slower with sales volume dropping to 55,100 bales for the
week, from 99,700 bales a week previous.
The easiness was largely influenced by developments in tho
Korean truce negotiations and signs of a let-up in demand fo*
cotton textiles.

loan during the week
bales, the highest since
of May 1 were reported
2,024,500 bales, against 396,200 bales at this time a year ago.
Entries of cotton

into the Government

May 1 increased sharply to 63,300
the week of Feb. 6.
Loans outstanding as
ended

at

Trade Volume

Higher Encouraged by Mild

Weather

Special Promotions
their spending moderately in most part*

period ended on Wednesday of last
temperatures and special promotions spurred their

oi the nation in the

mild
As

during the past

earlier.

continued to spend a larger

Consumers
comes on

interest.

several months, most retail merchants were

the sales figures of a year

able to surpass

week as

durable goods than they

did

portion of their In¬

t-

a year ago.

the week was esti- ■
from 2 to 6% higher than
the level of a year ago.
Regional estimates varied from the corre¬
sponding levels of a year ago by the following percentages: New .
England and East +1 to +5; Midwest and Northwest +2 to
South and
pacific Coast -f 3 to -f-7 and Southwest -f-4 to +8.
t
The interest in household goods held close to the prior week'*
level and remained perceptibly above the level of a year ago.
t
Gaining in popularity
were air-conditioners, clock-radios, ;
small appliances, and paint while television sets and upholstered
furniture were declining.
i
The total dollar

volume of retail trade in

& Bradstreet, Inc., to be

Trading activity in many

of the nation's wholesale market*

.

quickened slightly in the period ended on Wednesday of last week.
The total dollar volume of wholesale orders remained slightly u
larger than the level of a year

earlier; the most pronounced year-

L

continued to be in the purchasing of consumer dur¬
able goods.
Buyers were less apprehensive about sudden shift* «
due to international developments than they were several week*

to-year rises

1

before.

Department store sales on a country-wide basis, as taken from
the Federal Reserve Board's index, for the week ended May 9,
1953, advanced 9% above

the level of the preceding week.

In th«

previous week an increase of 3% was reported from that of th«
similar week of 1952.
For the four weeks ended May 9, 1953, an
increase of 5% was reported.
For the period Jan. 1 to May 9, 1953;

department stores sales registered an

increase of 5% above 1952.

somewhat
brighter picture and coupled with more favorable weather, volume
for the period was estimated at 5% above the similar week one
Retail trade in New York

year

the past week presented a

_

t
,
.

\
{
.

!

ago.

According to the Federal Reserve Board's index department j
store sales in New York City for the weekly period ended May 9,

Business Failures Show Marked Rise

Financial Chronicle)

FT. GAINES, Ga.

and grains
top prices

Spot cotton prices

mated by Dun

totaled 765,411 cars,

free

dark hour of

Winston

the problem

put

a

Car

Loadings of

and 102,732 a yea*
moderate declines in quiet tradings

closed at 55% cents a pound, off 1 cent from a
week earlier. The refined sugar market developed a firmer ton*
as the result of
recent warm weather in eastern areas. The do¬
mestic raw sugar market was generally steady in moderate trad¬

848,-

661,000 kwh,, or 11.9% above the total output for the week ended

•»

with 66,557 bags a week,ago,

Shoppers increased

the week ended May 16,1953, was estimated

*

of manufacturer interest in the actual market.
increased sharply and totaled 119,059

And

distributed by the electric light

•

showing little disposition to antici¬

Coffee registered further

ago.

Output Gains in Latest Week

and power industry for

v..

,

stocks of cocoa

bags, as compared

102.7% of capacity.

The amount of electric energy

"

flour market remained disap¬

The Santos 4s grade

when the capacity was

the

are

all

We must not break down-

nations.

ing the absence
Warehouse

mighty.

In the home

not a

lective basis.
We

pointingly small with buyers

Will its
its effect

appliance industry, however, production has out¬
stripped demand, and some producers are reducing output. Never-"
theless, that industry is still reluctant to cut back on steel pur¬
chases, it points out.
•
*

last year.

in the domestic

New business

pate requirements beyond next few months. Trading in the cocoa
market was inactive and prices turned downward, largely reflect¬

bit, it adds.

consumer

week, and 45,000,000

5

The auto industry is still projecting hefty
production schedules, continues this trade weekly.

on

high tariffs—I am for
low tariffs as wall still per¬

as

ous

are

in favor of

just

7

;-V" 'J.: V.

h../yp

\ :

Puzzling the forecasters is the automobile industry.

business hold

at

Word

One final word.
one

.;••••

^

willing to open them. Full operations
the third quarter appear assured, and there is increasing belief
fourth quarter will be as good, although you can find people

dollar in order to regain our

our

ahead

far

as

a steel strike; and (3) belief that base prices
after completion of wage negotiations in the

up

:

liquidation,

now

we

favorable

least

result, steel producers quickly fill their order books for

a

have. It could
demand that we devalue

any

bring

"Steel," the weekly magazine

.

/

past week. Unde*
worked lower with,
many futures contracts hitting new low levels for the crop year.
,
Weakness in the bread cereal reflected plentiful supplies and
favorable prospects for the new crop. The Department of Agriculture in its May 1 crop report, estimated the Winter wheat crop at
729,884,000 bushels, an increase of about 16,000,000 bushels above ,
the forecast a month earlier.
The export wheat market continued 4
dull.
Corn resisted the downward pressure, aided by a good d«- f
mand for the cash grain and a scarcity of offerings. CCC sales ot t
corn continued in substantial volume.
Oats and rye closed lowe*
for the week, but received some support from reports that the De¬
partment of Agriculture is working on plans to limit imports of •
these grains. Volume of sales of all grain and soybean futures on
the Chicago Board of Trade declined moderately and totaled 40,- t
300,000 bushels for the week, compared with 49,400,000 the previ¬
heavy

rather

possibility of

have been

nations

the

good if through ex¬

imports we force skilled
of work and defense

people

says

the part of the buyers is prompted by at

on

industry..-)

As

those

remind

to

friendly nations of the statement

Effect.

production,

price avercommodity
finished at
earlier, and

continued unsettled the
prices generally

markets

Grain

spread, it asserts.

have enough steel to sustain their

consumers

who think the latter will taper off a

at home.

-1

of

of steel will go

,

of

Irregular movements left the general commodity
slightly lower last week.
The daily wholesale
price index, comoiled by Dun & Bradstreet, Inc.,
278.24 on May 12.
This compared with 279.19 a week
with 297.08 on the corresponding date last year.
age

Output Scheduled at Fractionally Lower

This attitude

the .basis of true international di-'
vision

Ohio, forge works

three incentives, according to this trade journal: (1) Expectations,
or at least hope, of continued good business; (2) protection against

They turnout

nations because
they deserve help, instead of on
to

works

|
1

Price Level Reflects

Irregularly Lower Trend

metalworking, they are not inclined to slow down their pace of
buying of the major forms of finished steel.

their products at reasonable prices.
To buy imports' in their fields

simply

Wholesale Commodity

of

-

uncompetitive.

trend of

Level This Week

know that, by the very nature of
the American economy, those in¬
dustries
are
neither
inefficient
nor

31 foods

Monday and Ford by Wednesday," according

its Detroit transmission

Although most

rise of 0.6%.
I
the sum total of the price per pound of
in general use and its chief function is to show the general
food prices at the wholesale level.
;
1

The index represents

plans to step up output of transmissions
"might be blocked" if effects of a minor walkout Thursday of 250

Steel

the

ing date last year, or a
labor

month-cld strike at Ford's Canton,

a

workers at

pany—to speak for the electrical

But

continued

result.

a

with anyone outside my own com¬

industry.

before.

General Motors Corp.'s

equally vital to American defense
and are. equally unable to survive
foreign price competition. I cantnot speak out of intimate knowl¬
edge of those industries, as I have
presumed — without
consultation

manufacturing

fell to

period, the

ago

year

expected to hit most of the 137,000 Ford assembly plant workers

true as to other
that
are

as

like

the

"has all but depleted" Ford's stocks of axles, spindles and crank¬
shafts.
By the middle of this week, said "Ward's," layoffs are

.

American

the

of

cutbacks at Nash by
to this agency.

national defense,

our

1,631,400 in

"sharp slash" in production this week
dispute at Borg-Warner Corp.,
important auto parts supplier. This has already "virtually para¬
lyzed" Hudson and Willys output and "will force heavy production

is not consistent with the national
interest.

the

i

wholesale food price

But "Ward's" expects a

pact of* the widespread purchase
of
foreign-made
equipment on
industry,

than

more

because

A foreign policy that does
recognize the long-range im¬

this

Y
^

,

first downward movement in six weeks, the ,
index, compiled by Dun & Bradstreet,
|
$6.42 on May 12, from the year's high of $6.43 the weedc t
The current index compares with $6.38 on the correspond?- j

Marking

Industry

agency notes.

is necessary to the national secu¬

rity;

Six Weeks

>

A live and

not

First Decline in

'

such formula.

any

(2220J W

,>f

the week

from 165 in the preceding week, according to Dun
Inc. This sharp increase lifted casualties to the
highest level in three months. While they exceeded the 154 and
371 failures occurring in the comparable weeks of 1952 and 1951,
they remained 31% below the prewar total of 289 in 1939.

of 4% from the like period of last year. In
3% (revised) was reported from,
similar week of 1952, while for the four weeks ended

1953, registered a rise
the

"a

preceding week an increase of

that of the

May 9, 1953, a decrease of
to May 9, 1953,

3% was recorded.

volume declined 1% under

For the period Jan. 1 {
that of 1952.

J

46

The Commercial and Financial Chronicle...
Thursday,

(2230)

the ulti¬ ports, "there has been almost as
much plowed back into the busi¬
price floors
is something else again. The habits ness as has been paid out in divi¬
dends which, of course, has had a
of
two
decades
are
not
easily

has

Mutual Funds

been removed,

now

elimination

mate

to

of

purchase

May 21, 1953

shares of

additional

fund.

the

one-third

About

Fund's

the

of

assets, the booklet points out, are
tendency to accelerate the growth invested in
broken."
income-paying bonds
of earning assets. In other
words, and preferred stocks and another
NET ASSETS of Affiliated Fund, even though common stocks have
By ROBERT R. RICH
third in common stocks that have
Inc. had risen to $241,974,279 as paid out in dividends a somewhat
paid continuous dividends from
SIGNS OF A growing belief that have done with economic tinker¬
of April 30, 1953, end of the first higher rate of return than have
15 to 49 consecutive years.
the threat of inflation has pretty ing and to make a start on the
half of the company's fiscal year, most other securities during recent
well evaporated are discussed in road back to free
years, they were af the same time
prices.
as compared with $223,470,374 last
TOTAL ASSETS of the four funds
the current "Perspective," Calvin
"As said recently by the Chair¬ Oct. 31, and there were 116,532 building up their <gotential worth
in the United Funds group, cur¬
Bullock's economic report. It sees man of the Federal Reserve
in terms of future
Sys¬ shareholders as compared
with
earnings assets." rently slightly in excess of 100
this change in opinion brought
For all industrieiLjetained earn¬
tem, 'The market place—the price 110,486 six months earlier.
million dollars, are expected to
about by a number of develop¬
mechanism
are basic essentials
Net asset value per share in¬ ings were shown tcrhave increased
top 200 million dollars within the
ments, chiefly the two-year grad¬ of the American economy and of creased
from a rate of $2.3&billion in 1940
during the period to $4.90
next two and a half years, and
ual decline in commodity prices.
the economy of the Western World. per share from $4.74 six months to $13.6 billion in 4950. One
thing may hit the billion-dollar mark
"The final denouement of di¬
The process of returning to ago.
immediately string about the within
rect price controls in March," the
eight years.
H. I. Prankard, 2nd, President, analysis, wnich gofes back to 1929
acceptance and use of the market
This prediction was made by
analysis states, "has been followed
place is slow, painful, and hard. noted that in the first quarter of for comparative figures, is that the
Camerson K. Reed, President. of
by relatively few price, rises at It is not achieved because
people the current fiscal year the com¬ amount plowed bac,k into business United
either wholesale or retail.
Funds, Inc., at the annual
necessarily like it; it is achieved mon stocks of five companies had by corporations (faring previous
stockholders' meeting in Kansas
"Diamonds, in addition to their because alternative
ways
don't been added to the portfolio. These periods of high level business ac¬
City.
reputation as 'a girl's best friend,' work—and that has been found in were: American Chicle
Co.; H. L. tivity becomes almost insignificant
The four investment trusts have
have for generations had a sub¬
when compared With recent years.
most of Western Europe since the Green Co.; Pacific Gas & Electric
in excess of 40,000 shareholders,
stantial investment following, par¬
Co.; Swift & Co.; United Gas Corp. In 1929, for example, less money
war."
with the average amount of each
ticularly during periods of infla¬
He also pointed out that in the was retained by business than in
The report finds that the sensi¬
tion. The diamond market seems
holding being about $2,500. Reed
tive index of 22 commodities has second half of the period holdings any one of the la^ ten years.
said the company's growth con¬
to
have
been
in the following companies were
saying for some declined from 135.0 in
ABjg$V •1
February,
months that inflation is a punc¬
eliminated: Allis Chalmers Manu¬ IN CHEMICAL Kind's sales over tinues to exceed $2 million in
1951, to 87.9 on May 4, 1953, or
the last two yeo^jg, institutional sales each month.
tured
balloon.
Four
carat
dia¬
roughly 35%, (1947-49 equals facturing Co.; American Can Co.; accounts
have been growing 20%
Pointing to the fast growth of
monds have been selling at
Chicago, Rock Island & Pacific
$1,650 100), and
all
commodities
are
faster than
individual accounts. the company, Reed said that at
to $1,750 per carat as compared
Railroad; Masonite Corp.; South
down about 41/Sz%.
with a high of $1,900 in March
Analyzing the change in both the annual meeting five years ago
Caroline Electric & Gas Co.
"Retail
prices have thus far,
1951, and have been quoted as at
Commenting on the current types of accounts from 1951 to he reported total assets of $16
least, been little affected by
business situation, Mr. Prankard 1953, Chemical Fund found that million.
low as $1,500.
price decontrol. The only impor¬
stated that the supply of and de¬ the number of Institutional ac¬
"Whether
the
next
move
in tant exceptions have been
JOHNSTON MUTUAL Fund Inc.
ciga¬ mand for
had
increased
by^ 48%,
goods continue to be counts
commodity prices is up or down, rettes, coffee, and in some sec¬
while
individual
in better balance than
accounts
in¬ reports net assets of $2,183,776.94
they have
business managers generally ap¬ tions
as
of March 31, 1953, equivalent
gasoline and fuel oil."
been at any time since the end of creased
by 40%.^Total institu¬
pear encouraged by the new Ad¬
to $30.78 per share. This compares
Noting that prices received by World War II. Mr.
Prankard ex¬ tional holdings amounted to over
—

.

ministration's

determination

t

o

.

.

farmers

have

successive

paid

by

declined

months,
farmers

for

the

difficulties

prices

off

pressed his belief that the securi¬

$6

ties

by

held

fare

well

comments

The

five

of

artificial

owned

the

by

only

are

slightly, the publication
that

eight

while

company
will
such conditions.

under

largest

stock

groups

on

April 30, 1953 were:
price maintenance for agriculture Electric Light and
Power, 22.33%;
have
again
been brought
Natural
into
Gas,
9.93%;
Banking,
sharp focus.
8.58%; Store, 8.34%; and Tobacco,
"The mounting stocks of farm 7.89%.
products acquired by the govern¬
OUR BOSTON agent, Ed
ment in its effort to
Hale, re¬
support agri¬
cultural prices illustrate the dif¬ port^ in Vance, Sander's "Brevits"
ficulties

inherent

tinker with

They also

in attempts to
price mechanism.

the

illustrate

involved in the
tion's

that since 1942 the book values of
30
stocks
comprising the Dow-

the

problem

Administra¬

new

expressed

Jones Industrials have almost dou¬

goal

of

return

a

to free prices.
Although the im¬
position of artificial price
ceilings

bled, and the net worth "behind"
the

average
industrial stock is
at the highest level in
history.
"It will be noted that
during many
of the past ten
years," Brevits renow

in

million held
alQne.
Following

fiduciaries
order

of

and

The most important office
struction in the
Minneapolis
in

many years

was assured

day

when
Robert
W.
President of Investors

con¬

The

loop

yester¬

Purcell,

ern

Diversi¬

and

colleges, savings
religious organizations,

1928

Prospectus from
your
or

PHILADELPHIA

3, PA.

will occupy the
top four floors of
a five
story addition to the present
Baker Arcade

ing,"

will

add

greater

a

insurance companies.

counts

ranged "from

in

be

in

either

Rand Towers.

to

occupied

have

an

feet,

square

the

over

now

of

area

increase
four

of

for the addition

a

30%

more

nounced

in

In

WALL

given the right to acquire

STREET

CAJLVIN

BlifLOCK,
.

GENTLEMEN: At
me a

no

interest in the Baker

..

/JNEWYORK

I

obligation please Bend

prospectus on

Canadian f und.

Address.

City




latest

design,

with

$49,000.

were

a

Between

stocks.

university

of

$190,000,

corporation

business

with

preferred

a

share

$172,-

$58,000 and

analysis,
of

by

holding

"Who

called

are

is

A

Purcell

stock

provision

for

was

Inc.
30

$21.58

was

share

assets

to

"HOW IMPORTANT IS income to

of

31,
fiscal

the

Fund,
share at April

with

Oct.

at

company's

million.

per

compared

as

$21.67

the end

,

the
net

amounted

;

?

...

by
Hugh W. Long and Company in a
recently issued booklet on Diver¬

THE BOARD of directors of Hud¬

sified Investment Fund, a mutual
fund managed for income.

amount

equal

Hudson

Fund

you?"

is

the

question

asked

Citing

Fund

son

declared-

tribution

stock

a

to ..shareholders

to

the

shares

number

the income record of the Fund
since the first year of operation—

The

distribution

is

May

18,

stockholders

1945—the brochure gives Results of

record,

a

$10,000 investment with income

The

dividends spent and of the same
investment with distributions used

fect
the

of

1953,

to

to

be

board's
a

has

action

two-for-one

the

Diversified Common Stock Fund

Diversified Growth Stock Fund

neces¬

by the growth of the com¬
pany, which now manages $1,200,and

is, with its
affiliates, the

Diversified Investment Fund

largest integrated operation of its
type in the country. Founded in
1894, I.D.S., known until four

49%
con¬

Manhattan Bond Fund, Inc.

sisting of the present Baker Ar¬ years
ago
as
"Investors Syndi¬
Building with additions, the cate," has made its headquarters
Baker Building, the Baker
Garage in Minneapolis throughout its 59-

and

certain

miscellaneous

prop¬

erty connected therewith, and 21%
of the stock of the Roanoke Build¬

The latter

com¬

pany controls the structure which
rounds out the block
bounded

by

Seventh Street

quette Avenue
Street

on

Avenue

on

the

the

on
on

the

North,

the West,

South
East.

and

Mar¬

Eighth
Second

.

history,

year

about

1,000

Most

has

of

the

taken

when

came

some

now

E.

of

in

employs
city.

the

company's

place

Earl

Chairman

and

persons

in

,?

PROSPECTUSES

recent

years;

Crabb, present
Board, first be¬

AVAILABLE

:-j-tFROM

growth

YOUR

ON

LOCAL

THESE

MUTUAL

INVESTMENT

FUNDS

DEALER,

Ctewland

Chicago

Hugh w. Long and Company

the

associated with the company
27

''

years

$12,000,000,

or

managed today.

ago,

just

assets
1% of

were

those

'

~

.Westminster

at

made

of

Parker, Elizabeth

New Jersey

ef¬

split-up of

stock.

Fundamental Investors, Inc.

definite

of

May 15, 1953.

affording
building,

an

outstanding.

"

space, with
additional room in

and

dis-

in

sary

subsidiaries

per

of

Total

year.

company

$13,400,000.

com¬

Colonial

larger

000,000 in assets

15,

share.

per

and

that

was

May

per¬

new

stated

the

per

common

redemption

stock of The

mon

Fund's

currently $52.3

$5

$3.62

and

class

THE NET asset value of the

the

custodian,
the Bankers Tryst Company. To¬
tal net asset wlfiie of Chemical
Fund

for

and
A

31, 1952

convertible

com¬

Fund?"

Chemical

the

class

The

1953 at

with $50,000, among others.

a

$2

per

share

of

stocks.

000; a religious organization with
$65,000, a charitable organization

common

Figures for Dec.

$182.41

were

the-two

share and

per

to all stories.

access

net

dividends), and $3.66

cade

ing Corporation.
Nome.

a

show

Build¬

the future, had been made

is

Block,

"Investors

announcing the

Mr.

sto¬

Services

unit

transportation

newly designed

plans for

by the two officials that,
Diversified

a

1953

share of class A and

per

Chemical

shares, ttFd pension fund

set of "electronic" elevators

the
In

under the terms of the
agreement,

Investors

the
a

high-speed

ries with 58,000 net rental
square
feet when needed in the future.
At the same time it was
an¬

ONE

four-floor

of

communication -among

new

of

has been made

of two

additional

March

on

completely rebuilt lobby will be

buildings

occupied by "Investors."

addition, provision

maximum

auditorium,

the

speed

Serving

alone will

in

small

inside

ing" from

118,000 net rental

an

space

expanded

a

assure

and

portions to

I.D.S.

by

assure

$1,544,642.34

sonnel.

Foshay

The

as

for

stalled

amount

the

or

occupied

31,

liquidation $50

accumulated

savings

a

bank, with $296,000
Fund's

made

larger cafeteria and larger lounges
for employee comfort. Either ele¬
vators or escalators will be in¬

loop than is

contained

well

room

occupancy about mid-1954 will be
known as the "Investors Build¬
of office space to the

'to

manner

as

Building, on which
construction is already under
way.
The new structure, which
upon

investment dealer

be

March

ended

The ten largestinstitutional ac¬

owners

efficiency of operation. The latest
developments in lighting and air
conditioning will be incorporated,

Services, Inc., and Morris T.
Baker, President of Baker Prop¬
erties, Inc. announced that I.D.S.

FOUNDED

to

-

banks,
assets at that date equivalent to
hospitals and sanitariums, pension
$183.42 per share of $2 converti¬
funds and profif^sharing plans,
ble
preferred stock (preference

The

by the large investment company
will be designed in the most mod¬

fied
r»;

four floors

.'

:

of

share
\- V

Equity
Corporation for the three months

and

pany

Diversified Acquires
Own Home
Office Building

per

THE STATEMENTS of the

fraterna^organizations,

schools

assets

31, 1952.

type, were
corporations, charitable

business

net

$31.29

and

size,*oy

with

Investors

with

million, with J>2

-

OR

Number 5222... The Commercial and Financial Chronicle

Volume 177

Continued

from

page

10

clear power, and each helping to
underwrite the cost according to
his capacity. This would require

-A

Nuclear Electric Power

a

several nuclear power plants
operating
in
widely
separated
areas might be given some credit
in
terms of standby production
capacity for weapons plutonium.
More important, assuming the ulti¬

moderate

relaxation

the

of

Atomic

—Why and How?
of

(2231)

mention. This may seem

Energy
Act
but
with
suitable
safeguards attached to
protect the public interest and in¬
vestment.

Under this solution the

AEC would occupy a responsibil¬

unimpor¬ ity similar to that of

that our
will easily sup¬

combined

a

tant in view of the belief

CAA

fossil fuel reserves

function would emphasize regula¬
tory activities; the latter would
support major projects in the na¬

power
needs for
several decades. However, should

domestic

ply

and

NACA.

The

former

electric power demand continue tional nuclear laboratories which
self-sufficiency of to double each future decade as it no private group could justify on
these power reactors, excess plu- has since 1900, our mining and economic and facility grounds.
industries
might
toiiium
produced could become transportation
A final resolution to the prob¬
available at a price representing find it difficult to keep pace, in lem
might be for Congress to de¬
its fuel value. In such an event supplying
all^Jhe conventional fine the Commission's role in
pub¬
it blight prove feasible to convert fuels needed. Iivthat event nuclear lic
power development solely as a
a
larger fraction of the Navy to power plants #ould be welcomed CAA type of
activity; to decide
nuclear propulsion. The same con¬ as a means for'Supplementing con¬ that
under suitable safety and se¬
cept would also apply to the use ventional expansion.
curity regulations the nucleus is
of nuclear fuel in supplying the
♦Without doubt, there seems to little different from molecules and
energy needs of remote military be a growing interest and willing¬ electrons and thus atomic
power
bases.
ness on the part of private indus¬
should
be
developed
by
any
A further benefit of consider¬ try
and
other non-government American or group of Americans
able importance from the point of groups to participate in the de¬
having the money to do the job
view of future military capability velopment of-atomic power. If we and the nerve to risk it.
Accord¬
would
be
the
development of truly believe in the legendary ing to this possible solution the
broad competence within industry skill and ability of competitive
government would offer not one
in * the
field
of atomic | energy American industry to cut corners
penny of additional financial help
mate economic

greatly bolster our and costs while simultaneously
in the event of turning out superior products, this
future emergency.
This future expression of interest in pursuing

which

would

but

velop

a

same

to

of strength

would

offset any minor

appear

ill effects

on

economic

nuclear power provides

opportunity

an

that

should

be

our military atomic program that
highly encouraged.
might result from transfer of a
So goes the ^reasoning that can
small part our nuclear engineer¬ be mustered in support of atomic

ing

talent

civilian

to

de¬

power

If you stand convinced as
velopment. A vigorous peacetime I do that this game is worth the
power effort would also be ex¬ candle, we must then face up to
pected to turn

technical infor¬

up

mation of value to

military reactor
Nobody

can

the immediate

what

hope

sanity

will

>

\

difficult

do

we

question,

gain this

In

one

sense

when

a

fu¬

it is academic for

to

us

for

military nuclear stock¬

our

attains

would seem it behooves all of us, individually
small per¬ and collectively, to think on this
centage of our present plant in¬ matter and speak out, so that
vestment on
nuclear power re¬ when the various shades of opin¬
search and development aimed at ion and belief have been factored

capacity.
spend a

plant

wise to

It

very

the

equation,

a
reasonable
solution will
other Commission facilities.
emerge
which
will
ultimately
It is but a truism that one plans spread the fruits of this tremen¬
dous force as "Widely and as fully
today for the morrow. If we are
to "strive for maximum potential as possible. It seems to me that
"How nuclear^power?" admits of
benefits from our military atomic
three possible Solutions.
developments, these plans ought

extending

the

fissionable

alsb

to

usefulness of the into
plants
and and

material

provide for
of

course

marred

action

in

a

world

un-

nuclear
as

program

of a new industry
having dynamic growth tendencies
at a time when military effort in
the field is beginning to taper off

entrance

could
is

exert beneficial effects. It
difficult to assess the scope of

such effects, but it suffices to "State
that the nuclear power industry
of

the future will

embrace many

different industrial interests.
From

other

the

factor

attack

on

AEC

viewpoint an¬
justifying an early

nuclear

power

is

the

Atomic Energy Act itself. In Sec¬

tion 3, the Commission is directed
to exercise its power in such man¬
ner as to

insure the continued

con¬

duct of research and development
activities into industrial applica¬
tions of atomic energy. This would

appear to

taking

merit the Commission's

position in support of the
development of nuclear power
should the expected rewards seem
a

commensurate with the effort

re¬

quired.
.

A

Contribution

Productive
The

list

these

am

tern

be folldwed

to

talking about the pat¬
during a de¬

period which is ex¬
that a pected to last some ten years—I
power
industry
might am not attempting to speculate
an
economic stimulus. on the permanent ground rules

developmental power
now
is
the
possibility

a

The

would

possibilities
like Yd make one thing
I

clear. I

by threats of war.

Yet another argument favoring

serve

I

to

Our

Power

possible future contribution

of nuclear

power

tive capacity as a

to our produc¬

velopment

or

certain

it.

mend

hibits

is

attributes

And

each

certain

most

ideal

expect to
it too.

solutions
to

recom¬

likewise

drawbacks.

ex¬

Like

in this world, there

things

no

three

solution.

One

can't

have his cake and eat

We

only seek to maxi¬
mini¬

can

those

which

disadvantage

of

work

the

to

the

greatest

number.
The

of

should there be

power

of the

nuclear
clamor

a

from

non-government groups for
licenses to construct such plants

on

self-financed basis.

a

On

behalf

of

the

tion, calling for

solu¬

second

partnership be¬

a

tween government and non-gov¬
ernment groups, one can say that
it would help shift some of the

economic

burden

ment shoulders

from

to that of

private

Committee

of

Con¬

"go it alone" basis in
goal that lies many
of dollars and
several

a

on

millions
years

a

into the future. Consequent¬

ly, if we truly feel the situation
is sufficently urgent that atomic
be tackled today as a legiti¬
goal for the near

power

national

mate

future,

it

scheme

This

the

doubtful this last
accomplish that

concludes

my

analysis of

and how of nuclear
I would like to close by

why

industry.

power.

impressing

In
addition
private
should bring the renowned

is

would

end.

govern¬

you

on

that decisions

these

cost-cutting know-how of indus¬
try to bear on a problem which is

aspects of the problem
will do much to provide informa¬

largely economic in nature. Most

tion

important,

this

nomic nuclear power—When?"

encourage

competition

approach

should

an

attempt to

surpass

on

on

A ball game is always more
exciting than batting practice. At
the
same
time, the partnership

able
in

the

the

would

make

avail¬

unique facilities present

National

Laboratories

for

research and

development activi¬
ties by the various groups par¬
ticipating in the program.
Against
point

this

out

solution,

that

one.

can

those

companies
who are deepest into the military
phase of the atomic energy pro¬
today would be in best po¬

sition to exploit atomic power. As
a result those
today holding a pref¬
erential

position

might

tend

to

enlarge that position in the years
to

come.

4% Bonds Offered
Blyth & Co., Inc. and Kidder,
Peabody & Co. head an under¬
writing group which yesterday
(May 20) offered publicly $30,000,000 of Southern Natural Gas
Co. first mortgage pip^ line sink¬
ing fund bonds, 4% series, due
1973, priced at 99 to yield 4.07%.

Commencing in 1955, a sinking
fund will be in operation at a call
price of 100 and interest; general
call prices start at 103 and scale
down

point against this
solution is that any expenditures
made

in

funds

this

field

from

govern¬

might be viewed

as

representing subsidies for a few
groups who are sufficiently fami¬
tage of it. In this

it would

sense

annually.

Proceeds of the bond issue and
the

concurrent offering of $34,220,100 debentures to the utility's

stockholders will be used to pre¬

$35,050,000

short-term
company's
expansion program which will
require expenditures in excess of
$75,000,000 during the next three
years.
The company expects to
add an additional 1,220 miles of
pipe lines, ranging from 4% to
25 inches in diameter, to its pres¬

pay

An additional

ment

question, "Eco¬

Southern Natural Gas

its competi¬

tor.

arrangement

the big $64

among

various groups and in this way
call for the best efforts of each in

liar with the field to take advan¬

Joint

sums

pursuit of

money

gram

these

of

reality

notes

incurred

in

in

the

Atomic Energy is prepar¬ put
at
a
disadvantage
other ent system and to add gas com¬
ing to hold hearings on this broad equally interested groups who be¬ pression facilities of 22,900 horse¬
cause of their lack of previous ex¬
question.
The
Atomic
Energy
power
which will; .increase the
Commission has promised to make perience in the atomic field are
system's delivery capacity to 1,010

gress on

„

public its recommendations at that
time. Thus it is
talk

to

position
would

impossible for

about

this

like

is

do

What

point

out

I
as

possible what I feel

as

to be the favorable

unfavorable

me

Commission's

morning.

to

objectively

the

as

features

well

as

the

associated

with each of the three possible ap¬

proaches.
In

support

of

the

first

possi¬

bility, that of continued govern¬
ment monopoly,
one can
argue
that

it

will

billion
can

best

protect

investment

taxpayers

which

have

the

$10

Ameri¬

already

in¬

in position to participate.
I
would
warn,
however, that we
should not lose sight of our pri¬
not

real

last

or

to

not, that the atom is at
accepted as a normal

be

part of

our

thus

treated

resistance
for

no

because

change

in

path
it

of

would

the

least
call

present

It

be

has

said

been

by it. Such

is

dicate that

prevent the remote possibility of

of life and can
by normal rules.

way

that

we

learn to live with the atom

Atomic

Energy Act—the pattern
already set. Further it would

Southern

feet per day.

natural

Natural

Gas

operates

pipe line system
from gas fields in Texas, Louisi¬
ing
ana and Mississippi to markets in
U. S. is a nuclear expert, the peo¬
Mississippi, Alabama and Georgia.
ple may never derive real bene¬
Most of the gas is sold wholesale
fits from this source of power.
to other companies and cities, but
some is sold directly to industrial
The Final Solution
users.
Operating revenues went
The final solution, under which
the government would be simply from $17,885,000 in 1948 to $39,425,000 in 1952.
a regulatory agency, has the
great
psychological advantage, whether
goal. If we insist on mark¬
time until everybody in the

alsb

the

cubic

"

a

mary

vested in atomic energy. It would

represent

million

a
we

must
or

die

decision would in¬
believe

we

can

do

the former.

gas

Flock Gas & Oil Corp.
Stock at $2 Per Share
Peter Morgan & Co., New York
City is underwriting an issue of

800,000 .shares of Flock Gas & Oil
Corp., Ltd. of Calgary, Alberta.
The
funds
obtained
from
the

underwriting will be used prin¬
cipally to develop gas and oil
tion would eliminate further pub¬ properties now held by Flock Gas
which have to .be determined once
lic funds being spent on peace¬ & Oil Corp. and to acquire new
atomic power "can make its own specifically forbids.
time nuclear power. Consequently petroleum leases. The shares are
But on the other hand, it also
way
unaided *:in the hard, cold
those who are strongest in favor priced at $2 per share.
business worlck, Nobody is likely has many strikes against
it. It
Flock currently holds extensive
of balancing the budget at any
to make a ni<$tel out of central will take a lot of
public money
price will applaud this possibility. properties in, Alberta, and re¬
station
nuclearJpower during this and this at a time when every
ports by Joseph S. Irwin, con¬
Such a solution would illustrate
interim period^In fact quite the effort is
being made to balance
sulting geologist, indicate at least
abiding
faith
in
the
inherent
contrary promises to be true.
the budget. Progress would prob¬
13, possible productive horizons.
strength of our free enterprise
As a first possibility, during the ably be less rapid because, com¬
Test
drilling will be
initiated
system. In reaching this decision
development pe||od, the Congress petition would be virtually non¬
shortly — with an approximate
existent and thus there might be we would be determining that we
might decide th^i the atom ought
depth of 5,500 feet necessary for
to remain a government monopoly less incentive to attain economic need not treat the peacetime atom
a
test of productive zones.
and the
results. Furthermore government as government monopoly in the
peacetirp applications of
the atom should$>e explored and activities are by their very na¬ midst of our sea of free enterprise
To Get NYSE Membership
controlled in
fashion similar to ture conservative since the check system, but were willing to let it
Roland B. Stearns on May 28
their military c^mterparts. Ad¬ and balance system under which find its own niche in the scheme
will acquire the membership in
mittedly,
atomi(| energy poses we operate seldom rewards bold¬ of things.
For those who would tab this the New York Stock Exchange
many unique
pj^blems not en¬ ness and never excuses failure.
countered in thdkordinary forces
solution a giant giveaway I have held by Leonard A. Goldstone.
Another argument against gov¬
and phenomena $$} deal with, and
little patience. On the other hand,
ernment monopoly is the fact that
E. Boehm Opens Office
that
all
things Considered, our
I question the logic of trying to
even
if it were announced eco¬
military atomic development has
resolve the nuclear power prob¬
Emma Boehm (is engaging in a
nomic nuclear power was a real¬
gone forward in fetter than satis¬
lem in this fashion—since I doubt securities business from offices at
factory fashion, uhder government ity, many people would question there would be any takers.
545 West 111th Street, N. Y. City.
the statement. The government
control
with
p| ivate industry pays no taxes. It can borrow
Since atomic power is almost
operating the program in a con¬
Israel Sees. Corp. Formed
tractual capacity^The second pos¬ money at lower interest rates than surely not economic today and
Israel Securities Corporation
private investors. It already owns shows few signs of becoming so
sibility would represent a partner¬
immediately, there would be little has been formed with offices at
ship
ar r an g
ent between large amounts of fissionable ma¬
incentive
on
the
part of any 17 East 71st Street, New York
government andAnon-government terial which it could transfer by
groups, with
playing a sub¬ a slip of paper to fuel a nuclear private or public power group for City, to engage in the securities

nation deserves stantial role ih~I5e search for




has

intelligent

: Before

calculated

a

Each

neither

groups has the power to decide
its desired size, it this issue—the final decision rests
would appear prudent to develop in the hands of Congress. But in¬
useful outlets for the nuclear fuel asmuch as Congress is but a re¬
then available or that which could flection of the will of the people,
be produced with our expanded in the best democratic tradition

pile

rules that apply to
golf balls or tele¬

ground

automobiles,
vision sets.

mize

explore this knotty question,
the Atomic
Energy
ture world conflict be avoided. Commission nor the American
Ag'ainst this hopeful eventuality, Public Power Association, nor any
or
next best, looking to the day one of a dozen other interested
in .international affairs and

power

mize the good features and

.

How Nuclear Power?

the

prevail

"How

namely,

future holds in store but there is

always

more

ever

an

end?"

program.

foretell

power.

nuclear

to de¬
under the

convinced

more

commercial

would invite industry

national strength

source

would be

47

nu¬

any

private

concern

gaining

a

monopolistic
foothold
in
this
field, something the present Act

power

plant. A majority of people

Another

factor

on

the

positive

side here is the fact that this solu¬

that matter to

put up substantial business.

tfl

The Commercial and Financial Chronicle... Thursday, May 21, 1353

(2232)

Continued

3

page

defining the word "affiliate" and in applying the
two-year period where the one-year period was
heretofore applicable. Incidently, there is also
the danger that such interpretation might con¬

-

.

SEC/s Revised Regulation^'
Flouts

Congressional Edict

go

For the

that

now

Heretofore, when only a letter of notification
required, the issuer and the underwriter

been

added

was

cident to

by the instant revision.

Heretofore, the maximum which could be of¬
fered under

"Regulation A" by an issuer and its
could not exceed $300,Rule

new

So
it

217, the provision

aggregate offering price of all of ther se¬
issuer, its predecessors and all of

affiliate of the

issuer within

shall not exceed
This

organized

were

became

or

the past

two

cause

an

years

said to be

a

controlling, controlled by

person

of the

issuer is

an

or

i

As

issuer is

an

denying the exemption, or
has already been
commenced, it

be that

by a process of broad definition and subtle
application, the Securities and Exchange Com¬
by limiting to

several

were

Continued

issue the

one

area

and

in which

none

is ordered

be

Eisenhower's Tax

Program

In

our

of

vigilantly

front

blind

must

domestic

itself—for

ernment

of

gov¬

whose government does not

secure

cdmmand
honor

respect

and

home

at

abroad.

Our

strength

also,

demands,

jCQealthy two-way trade with
Allies—for
for

is

nation

no

this

nation

alone

in

national

America,

of all

source
;

for

Must

and

here

our

Make

ment

is—and

whole

Amercia
which

is

the

America

act

every

the

.

We

of

vital

Secure

govern¬

be—a

effort
in

secure

I

part of

to

make

world

a

itself

is

in

under

the

something of the

record^ of

planned

deliberately

Communist

aggression.
been, to this moment,

has

to

reason

believe

that

Soviet

policy has changed its frequently

in

guns,

aiming at

no

less

an

than

front.

eral

present world—in this kind

a

realize

—

I

think

that

States, if forced to total
mobilization
today, could meet
and win any
military challenge.
less

no

firmly that

we

must see and meet the full
nature
of the danger

immediately before

For the nature of this
danger
dictates the nature of the, defense

us.

we

summon.

be

long

which

—

must, first of all,
we

bear for

can

and indefinite

—

a

period of

time. It cannot consist of
sudden,
blind responses to a series of firealarm

emergencies, summoning

to
a

amass

speed

us

forces and materiel with
that

announced hope and
purpose —
the destruction of freedom every¬

based

is

heedless

order and

where.
There

is,

therefore,

can

no

reason

jfor the free nations to alter their
course:

best, to

to

hope and work for the

arm and be ready

for the

The

one

ily—just exactly what is the danis

more

than

a

'It has been

Soviet

coldly calculated by
leaders—for by their

military threat, they have hoped




is

that

fixed

or

danger

our

confined

to

specific instant.
An Age of Peril

live

We

mili¬

tary threat.
the

be

must

in

an

age

think

of

and

■,

peril.

plan

and

provide
age

as

we

the

only

cost

to

strain

our

became

mandatory—

defend?
defense

—

I

repeat

carefully planned
fastly sustained.

must

—

and

stead¬

planning brings us to that
bewildering realm of budgets and
and

deficits
all

and
and

know, is

explore

appropriations
taxes.

no

and

are—to

politic—as vital

of

budget

as

our

na¬

our

freedom

strive to defend it.

even

the

cheapening of

inherited

the

this:

Under

Administration

and

1955.

greater

ever-in-

depreciand higher

higher

The

but

are

Let

story.

so

the

deilvery.

on

items

doors—and

faces

This Admin¬

payment

on

$81,000,000,000 C.

an

come

then It

just

O.

O.

the next several years,
he
years.

over

I

come now

to the critical que3-

the

bearable, for every family in our
land, the burden of this inheri-

next fiscal

billion.

the

Even

most

be

must

men

by

year

$1.2

some

conscien-

allowed

some

leeway in forecasting tax receipts
than

more

theless,

a

it

ahead.

year

is

Never-

unfortunately

bring the red-ink entry for
the coming year up to more than

$11,000,000,000.
Second:

not

that

military

budget

fully plan for one item
scarcely be called ob-

could

That item

scure.

No

was

specific budgetary

former

for
as

was

made

pro-

for continuance

No

provision

was

1954
was

make

we

and sure?

To

sound

more

..

begin

with

there

must

front:

mora

time make

same

nation's security

our

military

the

be—far

from

slackening of effort—a speeding, a sharpening, a concentration
any

from

value

the last cent of

dollar

every

spent,

Our defense establishment has yet

to reach the level of performance
we

Until

want.

not

it

rest.

the Korean

made for the building up of Republic of Korea divisions beyond
those
currently
in
being.
Our
task, then, is not only one of deal-

vision

can

that will extract

The

proposed by the previous Adminfor the fiscal year 1954
did

how

tance—and at the

true

ex¬

fact

until

tion:

of this conflict.

scheduled

second

do not send

you

The Critical Question

be¬

during

money

When you order

D.,

to your front

Administration

past

has,

I want here to state

cal facts plainly. They

They

we

few

a

are

shall
;• ' J
critji-

critical,

facts. And they should
the reach of any partisan debate.
'
are

be beyond

It is
is

a

military fact that thete

such

thing as maximum
security short of total mobilizaing with the planned deficit, but tion of all our national resourcea.
also
one
of
providing for the Such security would compel us to
costs
as

it

of

the

may

Korean

War

so

long

continue.

Third: Largely aside from the
budget and deficit, there will be
—as

of

June

30

of

this

the

found

in

the

tax

imitate

the

of
compel

methods

the

die-

It would

every

able-bodied young man to

revenues

of

us

to put

uniform—to regiment the worker,

year—

$81,000,000,000 of authorizations to
be

no

tator.

spend money for which cash must
peak

any

C. O.

give

me

this

the

buying C. O. D.
goods

facts:

more

the

small

a

V

.

This whole matter is rather like

such

by

expenditures

were

their

figures

few

a

SEC

immediate economies

area.

is cash

year

Beyond this, when this Admin¬
istration took office, we faced two
stubborn financial facts. The first

reach

deficits,

in this

could

nation's security.

the

First:

War.

for last year and this year.

to

facts

istration

top of other big deficits

future

this,

borrowing,
cost of living,

of

Y.

N.

the

for defense purposes, there is lit—
tie room in which to turn around
to make any

these

of

bigger

These

7,

York

having

large part of this enormous sum
is already under contract, mostly

istration

our

ginning this July 1, called for

was

about

nothing

would

body
pulse-rates or

Administration, for

fact

fall

to

these

dollar by half its value.

The

under

will

area

As you all know, government
deficits of past years have been a

our

taxes,

that this over-estimate of income

blood-counts.

cause

from

reductions,

as

But

figures of

tional economy

main

years

This,

easy

to explain.

or

precisely the

are

Facts of the Budget

tious

Such

expenditures

of

over-estimated tax collections for

■

,

.

be

we

desirous

Financial

(Chairman of the House Interstate and Foreign
SEC).

savings,

you

Our

Park Place, New

are

be

should

Commerce Committee that deals with the

of the

capa¬

continued,
we

Communications

Editor, Commercial and

continuing danger,

were

related phases of the subject

Congressmen and send copies of their letters
(Chair¬
man of
the Senate SEC Subcommittee) and to
Congressman Qfaarles A. Wolverton of New Jersey

be:

ated

receiving
expressed in the above

Senator Prescott Bush of Connecticut

to

government

creasing

would appreciate

and

results

in the field, and

army

who

held stock

shackles removed should also write their Senators

do

we

part

so as to live
through, this
in freedom—in ways that do fhe

not undermine

Those

revenues

If

attack

a

truth

We

merely

as

econ¬

chemical

a

today's

ever

lion—on

7

-jer before us.
It

in

be

to

sharply downward.
.

city until rigid governmental con¬
trols, indefinitely or permanently

cost,

geared.
cannot

see—clearly and stead¬

if,
we

an

could

truly free

a

could

as

against

of

D-Day of desperate penditures of $78.6 billion, and
danger, somewhere in the near signified another red-ink
entry
future, to which all plans can be in our national books of
$9.9 bil¬

worst.
I We must

of

efficiency. It cannot be
solely on the theory that we

point to

inflation

rude facts

defense

one

omy

the

United

I believe

Prolonged
destructive

or on any

discussion.

Chronicle, 25

scheduled

prolonged tension and struggle

crippled industry or a demoralized working force could be
the equivalent of a
lost battle.

put

they desired to vote.

views

when—under existing laws—Fed-

where then would be the freedom

firmly—and

Soviets

This

all know

There

believe

time

same

military estab¬

Communist

target
military target.

clear, I think,
your

must

great

freedom

long

(io

enormous

this sense, have been

mortal fire.
.

of life and at the

lishments.

productive

military strength.

Those truths make

how

requires

security

industrious

an

free people cannot preserve their

economic

And

se¬

—

provide

world.

the

unbearable

an

and

curity burden leading to economic
disaster. They have believed
and,
in fact, plainly said—that
way

or

America

upon

World

not

hostile

a

Free

our

could

long enjoy either freedom

prosperity

force

to

the

on

addressed

this: These

to

mean

—a

honesty, and ..competence

editorial,
under

temporarily

the mili¬

on

never

the

on

CHRONICLE

The

by the Commission, the tem¬

To watch

tary

the

pn

markets and

holding companies under the jurisdiction of

comments

by the Commission.

page

securities

the

of member banks which

porary restraint shall remain in effect until it is
modified or vacated

possible heretofore. This it will do in

from first

bank

suspend the exemption. All this it may do without
a trial or a
hearing, and if no hearing is requested

mission will reduce the number of small business
issues

banking affiliates of

the Federal Reserve Board where they

revision

new

may

legislation

banking institutions, placed restraints

of credit in

use

temporarily
if the public offering

envisage it, the net result of all this will

we

most

the Commission
may enter an order

affiliate of such issuer.

an

of definitive

passage

which eliminated investment

goes to

223, which provides, in effect, that at any
after the
filing of the letter of notification,

time

the

to

by those provisions of the Banking Act of 1933

is Rule

under control with such issuer. An individual who

controls

registration.

provisions contained in this

atmosphere cleared by the abolition*

repetition of the abuses of th©
late twenties, which have not been already cured

change Commission is supposed to be without
jurisdiction, excepting only in instances of fraud.
The most
dangerous, the most alarming of all

is

"affiliate." An affiliate of

tention

daring and far reaching is this revision that

even

the

SEC, Congress should then address its at¬

intended to prevent a

communication, and this, mind you,
to over-the-counter securities, as to
the regulation of which the Securities and Ex¬

particularly dangerous be¬
of the broad and general definition given to

the term

full

a

of the

with respect

$300,000.

provision

With

a

other written

curities of the

its affiliates which

markets.

in¬

expense

the extent of prescribing the per¬
missible contents of
any written advertisement or

is

now

complying with

ferent from that of

affiliates in the aggregate
000 in any one year.
Under the

themselves the time and

letter of deficiency, for
since there was no
prospectus requirement, there
would ordinarily be no letter of
deficiency. Now,
however, in this regard, the treatment is no dif¬

much cumbersome detail

so

pretended search for fraud.

could spare

%

is

sorely needed is a new approach to
securities regulation. What would be of inesti*
mable service to our economic system is the com¬
plete abolition, the erasure of the Securities and
Exchange Commission, resulting in the passing
from the scene of a group of indoctrinated bu¬
reaucrats who have played havoc with our capital

eration, etc., etc.

offering of securities, the net proceeds
of which were under the previous regulation
little enough to the issuer, and which will be
less

What

example, it can say that properties given in
exchange for stock constitute inadequate consid¬

small

nullity.

a

For

is distributed.

that the

inquire afterwards.

of autocratic and bureaucratic

and the Commission has reduced that mandate to

approved

under the

More detail, more time, more money to be spent
unnecessarily in connection with the flotation of

has

this type

tyranny which has placed our administrative
agencies in such ill repute. So we see that Con¬
gress gave us a mandate to help small business,

a
legend that the securities are
by the Commission, nevertheless
the staff does attempt to set itself
up as the judge
of each particular deal. This it can do
actually

further and continue our appraisal.
first time, this revised regulation makes

us

much

is

lars there must be

to this time, there is nothing in the

up

mandatory the filing of semi-annual reports
showing the progress of the offering until the

a

It

dangerous trend in SEC activity, as it ap¬
plies to Regulation A, is, of course, that despite
the fact that in all prospectuses and
offering circu¬

help.

issue

unadjudicated conduct. Here the Commis¬

upon

restraint of trade.

not

Certainly

Let

sion may punish first and

a

The

revision calculated to carry out the Congressional
intent to help small business. So far it is hamper,
not

Here is the fearsome and extraordinary author¬
ity for the exercise of arbitrary power, the tesft
for the deprivation of fundamental rights based

stitute

from

farmer, the
allocate

and

Pnces

next,^y^l^ar^ Sm^e/j^vote

business man—-to

materials and
.

.

,

our-

.

wages

in

control

to
,

,

..short, .to

whqijyiation jo tho

grim

believe—is

the

become

is my

will argue hotly for

«umber

aircraft

of

minimum."

lute
from

the

Another,

answer

that

less

just

of

aircraft

kind is "imperative."
will

earnestly

dispensable"
tanks

All such views

mum."

with

in

argued

are

vigor and tenacity.

power

.ml-ashon
unleashed

it

^

foolish

problem

of air

any

*

"

the

Marine
of

Corps—no given number
of dollars—that \vill

billions

automatically
have

security.

guarantee

to this phase of
planning
careful,
personal, study 'and- analysis.
I
ihave, as you know, lived with it
lor
many
years.
I
have
also
I

.

sought, of course, advice from the
fnost
competent people I could
find.

to

«to

tell

me

how

you

ap¬

we

this analysis. We did
any fixed sum of money
which our defense plans had
determined

We first

fitted.

be

•what is

truly vital to our security.
next planned ways to elimi¬

every
useless expenditure
duplication. And we finally
decided
upon
the
amount
of

nate
and

for

S1Such

analysis

an

out

y^ services.
this I do assure
^

But

been

armed

the

SO

a

pamS-

sound

a

contemplates

It

tram

is

of the

>ou. w

Caretully,

SO

evolved

fakinelv

nro-

iach

in

calculated

forces

Tiskswhie™tovebeen prudently
it

And

reasoned.

nation's

represents,

what

judgment,

my
our

is

best

in

for

security.

permanent

n,

toonest, workable formula. It is no
magical,

but

tne

is

ix

in

with

also

Without

enable

renewal of

a

mediate
turn

family

inflation,

"tax" reduction''

which

inflated the dollar still

would

cheat

an

is

ment

planned

This

but

of

the income
people.

our

of

the

mass

enough

strong

defense

threat

the

the event of any aggression
it

as

—

swiftly

moves

mobilization.
The
we

•

lull

to

;

swiftly and smoothly

more

mobilize,

can

less

the

our

dependence upon standing armies,
^navies and air forces,
v

The

vigorously

more

elim¬

we

inate the non-essential,-the more

^effectively we

can

concentrate on

The course we must set for our-

mending the following

continuance

definite

of

to the

,ir...

With

need¬

a

in

ing
at

time

a

of

avoid,

penny-wise,

Continued

n

a 11

through

lack

cripple

strength

the

of freedom everywhere.

cause

This

middle

The

drama

and

sensation.

sense

and

strength

It

it

But

has
'

lasting

will

meet it, as Americans,
vigorously—and success-

2

page

crisis

and

scream

the

costs

necessary

practicing

it

Every

dehas

itg requests for funds for

the

next fjscaj year> As a result, we

for

six

months

be-

r'

^

.

inrnnm

AHrninic+rDtirm'c

fnr

rpmiPa

V10US Administiation s request toi

appropriations of new money by

billion. This prodigious
sum
means
more
man
$50 for
s"m means more than
every man, woman and child in

some $8^2

The

additional

continuation

5%

Third—The
next

this

of

will

which

April

reduction

1

excise

take

would

in

«

-

Administration.
let

Here

*

me

add

.

gradual

acceptance

of

these

..

.

tms

.

in

,

..

..

.

effect

next

Jan.

It

1.

-

-

and

can

-

should be postponed, for the oldand survivors

reached

now

$18

trust

fund

billion

has

dollars

receipts at present tax rates
This will be

a

worthwhile

word, -saving to wage-earners and, in my

Government cannot do this job— judgment, is simple justice to
any
more than any other job— them.

.

on

air

all

defense

funds

your

$40,000,000,000.
strength
are

encouraging start. But it is

an

more

than

a

start.-

During

It

that

is

in the

all of

us

next

fiscal year.

iight of these facts
must

honestly face

revenue

loss at this time would be

halt to insure longer life to bigger Fed-

the.Navy;.budget. This means eral deficits and greater eventual

tbatialmost 60?^centsxpat pf mvery. darigeri^^to our.country;/::-'




the

that

earlier

people

reduction

think

would

be

day of the coming year we prudent. Your many communicacontinue striving tions to me show that—first of all

find, in every department of the

Buttressing .this the matter of taxes. It must be
additional apparent that to. accept a great

for .1954—-totaling more than

American

that

and shan
to

those

funds allocated to naval air power

foundation
order

to

future

made

was

assure

success

secure

in

the

present and
which is now in

of developing.

school, hospital and other speaker
systems.

developments
sional

sound

the
The

very

three

a

recent

dimen¬

This is not
well regarded

system.
is

trade.

situated
whfm

This

WHFM,

been

has

a

profitable operation from
broadcasting di¬

has

had

wide

throughout

peal

popular ap¬
Rochester

the

has

division

radio-television

been

strengthened

substan¬

tially during the past year, and at
the close of 1952 inventories were
the

ual and

lowest the company

has ever

over

effective

are

3,000 share#

any one

individ¬

at the

mar¬

ket

closing on the day after stock¬
holders' meeting April 22.
The
before

five

have

years

to

run

expiration.
$2 cumulative preferred i#

convertible

ferred.

into

shares

2.42

each

for

common

Complete

share -of

oi

pre¬

conversion

of

the

preferred
now
outstanding
(over 20% has been converted in

the last two

the

The

Not

be issued to

may

The

pfnc^wwAM1'
WHAM,

Stations

the start and the

vision

employees.

options

well

is

company

WHAM-TV.,
highly

is

but

patentable
in

its

Among

months), would bring

total

shares

stock

of

common

exclusive of
options, to 435,000 shares.

There is

berg's

than

number

outstanding,
no

rate
any

question that Strong
growth is greate#

of

comparable competitor,

Sales exceed those of 1951
Dividends have been conservaand the outlook at present c°n" tive. The company is arriving a*
tinues highly satisfactory. This is tbe p0int, in view of its improvliad-

especially true
ing

opened

of the new
channels be-

in view

additional television
up

throughout

the

country.

ing

earnings

liberal

trend,

disbursements

when. mor«
might rea-

sonably be -expected to be fortltcoming. -In 1952 a dividend of $1
a
share was paid.
In February.

fel-

jiro- planned by the previous Adminis-

30, the Air Force will have available a sum totalling more than

figure. At that time the company's

-

is

every

,

company,

was a result of his revaluation
assets to a very conservative

and
of

The financial position is strong.
.
.
1953 the quarterly rate was raised
Finally—Another relief for the Current assets as of Dec. 31, 1952
amounted
to
$24,634,936; cash from 25 cents to *37^ cents, ©*
your gov- taxpayers will be the reduction in
a
share annually. Furthe*
ernment to spend less must your- personal income taxes that will go '$2,633,123, while current liabili- $1.50
seiVes
practice self-restraint in into effect next Jan. 1.
ties were $14,418,544. Net work- liberal payments are anticipated
with the possibility of a stock
was
the demands you make upon goving
capital of $10,216,392
while this ,g in accordance with
ernment. You as citizens cannot tbe letter of the existing law, it equal to $15.40 per share of com- dividend at a future time. Witto
help the common cause by merely would not have been possible but mon after allowance for notes out¬ increasing investor recognition, i*
is my belief that an application
favoring economy for every group for the economies in government standing and preferred stock. With
these shares currently selling in for listing on the New York Stock
except the one to which you be¬ that have
been
and
are
being
the neighborhood of $22 a share
Exchange may be made in due
long.
•
•
made by this Administration.
At
course.
•
net working capital, alone constiAll-that we have done to date the same time. I do not believe

ro^d, ^ e are

emphasis

handled: the

Tait

Mr.

process

scheduled

an increase m the old-age security
tax from l'/2% to 2% on both employees and employers, to go into

lures.

this

now

the are in excess of current expendi-

by

planned

was

Both

and the automatic
reduce
labor costs

area.

and

than

automatically.

all

product

present ^lavv! I'L!*!?
erates

under

Fourth—There is

shall spend at least $4.5 billion

former

this

place

ing the development of a sounder
system
of
excise
taxation,
for
which I shall make specific rec¬
ommendations to the Congress
next January.

age

*ess

when

Pr°du.c,!!g e,q ,u 1 P,m f "4' naYal-

ft?

bring in ap¬
proximately 52 billion a year.

country. This is the first Step
in cutting expenditures. Next year

our

we

and

tax,

printing unit it proon printed

a

.

rations, now scheduled to go into
effect April 1, 1954, should be re¬

^ave been abie to reduce the pre.

to

tickets,

should not be put into effect pend¬

^

the

and

linked

,

taxes,
of

tariff

On April 22 stockholders apun? 30—an extension that will
The sound equipment division
....
„r...
Pr°duce a ®airi of revenue of $800 manufactures specialty items such proved by a 73% vote a stock ©|»tion plan covering 17,500 share#
s'?"/,,, T,
„...
as high fidelity home music re- of common for issuance to certain-

speaks with conviction and realBecause

primarily inde- nitely upward.
In 1952 Strong
companies berg reported earnings of $3.28 a
through the U. S. A most interest- share; in 1951 earnings were $1.68
ing product in connection with the and in 1950 $2.53 a share.
Alautomatic switchboard is the au- though sales in 1949 were slightly
tomatic electronic
toll
ticketing better than 1948, a loss of $1.87 a
equipment.
This device records share was realized. This, however,
the number of calls, the time, the was the first full year in which
are

telephone

pendent

and

extended

pealed.

with shrill
emergency.
But
it

not

may

Recommendations

..

strength.

grammed for 1954. As of this June tration for the

•of-

danger.

Security I Like Best

division

this

switchboards

lack the

may

way

which daily becomes a government, new ways to achieve
important factor irt modern economies. I need scarcely remind
war. Our revised budget will proyou that the saving 0f 34 5 billion
-vide the Air Force with more than is, less
than
half
the
deficit

,

the
J'

This is what Task all of you to

of

pound-foolish yond its present expiration date of units appears assured.

-

major

of

from

^

help to do.

jrom

be

hand,

other

the

could,

that

needed

of

on

measures

Congress for tax legislation:

Tax

power;

40%

..

in

First—The excess-profits tax on
corporations as now drawn should

of Federal income
heavy taxation. It

excess

..rmore
.

_

We will make of it an age ot
productive freedom, unmatched In
all man's history.

duces this information

lessly high rate of Federal spend¬

no

'what is vital.

-putting

«

in

each family in the nation can begin balancing its own budget.
With this in mind, I am recom-

to
•

utterly alone. You and
toeyond this to protect the nation iow.citizens who want

—m

inherited

_

fully.

,

.footh to ^discourage aggression.and

t

^

boldly,

ex¬

pand

the

problems

We

so

to create jobs and

as

true

confi¬

or inherent in the present.
1 J
T
1_
f .1
We live, as I have said, not in
an instant of
danger but in an age

taxes

means

full,

greatest

all the
talents, and all
necessary to resolve

all

til"-

apply

harmful—and

the

past

a

to fall where pay¬

as

least

with

resources

the

be

—

to

to defend America.

way

security—in the

is

the

that is itself

economy

adjusted

so

more

family

every

k

to

sake

people

our

outlined my convictions

qualities,

our govern-

resources

our

dence that I say to you:
We possess, as a people,

appro¬

their initiative and industry fruit¬

sound

a

It

way

tiAri/M lv«AAn

the

of

sense.

Treasury DeOur system of taxation

ttrl+U

devoted

-

have
to the

pro¬

the

strong for freedom's

ever increasing cost of
living!
the withei.jng away o£ savings an(j
life
insurance
policies. An im-

selves is a difficult one. It must
avoid, on the one hand,-the. in¬

pest inax

jompetent men can deiine. It is
this:, A

and

ment

an

rejects

in and

pleaders both
imhtai

•of

« to make our

American

every

under

been

defense

This is the way to work for na¬

recom¬

Already

are

must not only provide

<

thought and formed by government accountants—but to help give each citimilitary burden zen the kind of dollar with which

our

however/long

the
extreme arguments of enthusiasts
and
of
all
groups
of
special

liaS

crucial.

would face

beach¬

freedom. persists.

this pro-

to meet

needed

money

'

is

shall

has

country.

in
Ways and Means Com¬

partment.

ability and readi-

our

bear

to

ness

set

"We

and

work

policy

proached
not

mittee

product of

is the

must

Let

:•

studies

the House

free and strong.

power—including

any

Analyzing the Defense Plan

"t

our

priate

the development of missiles now America. It would strike most
in production. Similar advances in cruelly at the poorest among us.
civil defense will help shape the
The balancing of the budget of

given

national

our

I

life

to you tonight
President but as

military

tional

completely; revised

your

4ff

this type

given number of air wings
Air
Force,
Navy,
and

-no

in

January

a

lar

technological
affects this

every

profoundly

/

within

spoken
as

whose
the

Completely

a

gram of taxation.

nature and size of our air forces, the United States is, therefore,
is no given number of ships
The plain truth is this: Security vital—not merely as some abgiven number of divisions is planned, not blindly bought. It stract, statistical feat to be per-

There
-—no

I

Clearly

Next
mend

every

dollar,

hrenk>out
break-out

tfrnat.
great

advance

hypnotized by magic
of analysis,

be

to

us

this

for

dangerous

and

numbers in

„

fact—and

a

head.

deeply believe—that it is

mostly
of

is

the
the

in
in

•

Propose

fully in

the

attack from the Normandy

1

^

to

I

American family to¬
day, this matter of the sound dol¬

destructive
of all the 2,700 planes we
duplicate

tically

But ob¬

For

prac¬

can

J

have

only

one

bal¬

as

real

believe—finally—that

,

these

a

Revised Tax Program

nation secure, our economy strong,
and our dollar sound.

aircraft

three

1

truly ur£ent need

the sim¬

as

weapons

a

if

successful,
will come

budget

Will

^

We

cannot
cannot

securitv
security

Today

modern

with

viously, all cannot be right.
Now

lepeat.

example:

num¬

always called "mini¬

are

adequate

an

_

This
This

vpneit-

becoming

But

revenue.

sight.

long-

citizen once satisfied that his
government is operating with honesf/L a"d economy, and planning
W1^ foresight wants any tax
saYfng
the price of essential

ple equivalent of a specific num¬
ber of aircraft or air wings. For

guided missies

or

artillery—all totalled

bers that

T
I

the."in¬
ships or

for

of

prove

anced

develop- n0

our

arbitrarily be defined

And others

advocate

needs

rockets

or

even

service,

that—for the

We think they are

air defense, until

attained

High

are too high.
We think they are ecoming a real
threat to individual initiative.

of security.

level

different

a

conviction that

have

we

passionately

as

too

term—present taxes

and

ficiency of the

"abso¬

military

same

will

the

as

Taxes

We. believe

steady growth in the size and ef-

given

a

Power

ing program—under constant review and study—will result in a

One military

wild abandon.

with

Cost of Air

will continue to
represent the heaviest single an¬
nual outlay of bur government. It

of this realm—and they are spent

man

I
not

sources

clear and simple,

are

investments in air power

These

coin

common

air power and air de-

represent

,

mum"

rec-

course,

efforts

The

informed, more often misinformed.
Words like "essential" and "in¬
dispensable" and "absolute mini¬

be compelled to make

ommendations for alternative

subjects

grave

we

sometimes

—

these

on

Present

anything less than this vision
of military perfection—total mo¬
bilization—we are debating in a
of speculation

The convictions of this Adminis-

tration

be

fense.

seek

realm

next year will

the

devoted to

not

the way to defend America.
It is also a fact that when

or

in

defense

firmly

(2233)

dollar to be available for national

garrison

the

of

purposes

state.

This—I

Chronicle

Number 5222...The Commercial and Financial

Volume 177

' ^

tutes

about 73%

price.

;

•

of the

market

1953

sum

up:

were

$13,339,203

We have

a company

and competentmanagement, has made extraor¬
dinary strides on the road to suc-

which, due to

.

Aggregate sales in the March 31
quarter of

To

new

nation secure and —or 48% over the corresponding cess. Pre-tax profit margins have
our dollar sound.
This Adminis- part of 1952. Earnings in the 1953 risen from 5.75% in the first quartration agrees. To advance by six quarter of $1.55 a share were lim- ter of 1952 to the almost incredmonths the date of this scheduled ited by the maximum excess prof- ible figure of 14.4% in this year,
reduction would take away $1.5 its tax provision of 70%, whereas This
bespeaks management a#
billion and, to that extent would
in the similar 1952 period earnnothing else could. It appears to
risk
both
of the objectives we ings were equal to 65 cents a share me that considering this manageseek.
♦
v
after
the
normal
corporate tax ment, the growth factors in this
No effort will be spared in the rate of 52%. It is my belief that
industry, the small capitalization
net
earnings after taxes in the and the outlook for sound cxpa®»coming months to achieve addicurrent 1953
year wilL approxi-- sion and increasing earnings,>tne
tionai vital economies.--To. do this
in significant amounts will depend ma^e $5^7 a share.
equity around current levels of"
on some gradual improvement in
my opinion that the earn22 seems worth' appreciably more
the worU situation. If ito should
u is my. opinion inai me earn
w
?,
he-disappointed m this, I shall, of mgs trend fiom here.out is.defi-. bo h.npw . _
.. —you want our

..

50

The Commercial and Financial Chronicle

(2234)

Continued from page

of the

12

industry and request him,

by Executive

decline

further

if possible, during the pres¬

ent session of Congress.

of

model and must

imperfect

very

it

for

time

allow

start with a

in fact we

and

readjust to

to

themselves.

Using them as a starting: point,
should

we

provide for their pro¬

they

such

favor

to

indiscriminately,
Department should

obliged to

ment to the

draft

grant

defer¬

specially skilled

em¬

ployees engaged in strategic work.
Second: Protection of Displaced

Labor.

Department
assist

in

the

of Labor

training and

relocation of such labor

placed

the

by

is dis¬

as

progressive

tariff

reductions. Given the
the

gradualness
program
this

proposed

should not be too much of

lem

in

except

a

un-adapt

cannot

de-build, it

or

the

make

starting date January,

that first

1954. On imports during

invoked
where

certify

President

the

necessity

imports

of

such

—

has

milk

substitute instead

import quota

an

of the volume

50%

say,

zero—-

of imports during the years im¬
mediately prior to the imposition
of the quota.

And

third,

in

all

where

cases

quota has been set up, it should
increased

by

a

20%

age—say

a

fixed percent¬
year

to

of

the

tem¬

porarily

arresting further tariff
for the
industry involved

Neither

cushioned.

let
to mili¬
we

can

economic ideals blind us

would add
the

At

month

additional

Each

98%.

further 1% discount.

a

of

end

the tariff
realities. We must preserve mili¬ collected would have crept down
to 88% of what it is today. If this
tarily strategic skills within the

political

and

necessities

tary

a

year

We must guard ourselves system were continued for eight
and one-third successive years we

nation.

against economic warfare.
if

But

we

find

can

way

a

to

problems, and can
machinery
to
handle

establish

problems unforeseen, if we allow

difficulties
out, but still move

time during which the
be ironed

direction

the

in

then

much.

freer

of

trade,

And

promise

for

submit

me

your

lieve would

direction

start

and

will

us

in the

which, if
do

to

mightily to
strength.

our

right

we

have

would

it,

add

national economic

Commercial Policy

New

a

at

would be given

impact of the change

moment

or

the Congress should

prepare
omnibus commercial policy

bill. It might be called the Trade

Expansion

Also

while

ductions

Act

of

should include the

1953,

and

it

accordingly.

these

creeping

going

were

at

on,

could

We

sequences.

amount

of

injury

the

gauge

domestic

to

producers and their ability to

of

the degree of

see

labor

and

the

reabsorption.

its

measure

re¬

We

the extent to which

ing.

imports actually were increas¬
We could watch the effect

on

the

our

dollar

balances

of

the

gen¬

Given these facts

Customs Simplification

Anyone who has

ever

dealt with

any

to

time along the

way,

amend, accelerate

or

decelerate the basic program. But
we have to get started on it.

first

confused

which

valuation

describe

practice

have

long

eign traders, and have been seri¬
deterrents to

import trade.
Clarification and simplification is
our

past due.
It

1

is

encouraging to know that
Simplification bill is

Customs

a

scheduled
Session of

for

mestic

producers

the labor

it

might

even

action

during this
Congress. However, the

I

believe

that

especially

substitute

old bill

were

provide

an

House

Program

Exceptions and

the

soundest

escape

percent-a-month
would

have

meet three

to

time to make their
but

that

they
relief

offs of their

readjustments,

should

except tax write¬

Competition

from

the competition of
sive

domestic

introduction of

products.
used

processes and

Third:

threaten

Strategic In¬

Beginning

with.;' the

Treasury
and
Post
Office
Appropriations
Act of 1934 and running
through
later
public housing legislation,
rural

the

electrification

legislation,

Stockpiling Act and the De¬

fense
Act

Department

for

a

to

eliminate

if

or

they

we

extension,
Reciprocal




strategically
military defense

are

the

^Appropriations

19&3, government
be|n required to

fiscal

less

the

For¬

the

of

production.

If, in the opinion of the Presi¬
dent, such tactics are being em¬
ployed by another country, he
should be empowered

of

the

commodities

with

the

in¬

originating in the nation engaged
in the practice of
dumping its

I

believe

erential

lation

Abolition of Import Quotas

Import

quotas

responsibility
National

particularly

are

uneconomic protective devices. As
barriers to trade they are even

undesirable than tariffs.

The

United

bitter

States

complaints

nations

for

to

do

lodged
other

using quotas to

balances, and

tinue

has

against

we

The

so.

or

pro¬

their dol¬

should

logic of

gen¬

for¬

discussion,

the

facts

hard

thinking
politics
may

of

some

intent is

atively

compromises. But its
clear, its mechanism rel¬
simple, and the goal is

challenging and desirable.
Great

strides

interests

our

have

been

un¬

lie

in

and

our

clauses

.all

such

pref¬

ia-iFederal legis¬

be

na¬

policy since the days of the

Smoot-Hawley

tariffs.

Agreements

Trade

for

proves

- our

the

all

its

Re¬

The

Pro¬

inadequacies,

growing

United

recognition

States

is a ma¬
ture member of the international

economic

family. As such it thas

deserved

the

support

of all

,

who

decry

restrictions on trade and
to whittle them
away. It we
do no better, we must con¬

seek
can

tinue that program.
But
the
need
is

urgent 'for

bolder steps. I
hope they will be
taken, and without further delay.

Illinois Bankers To
Convene in June

ifrore below the

or

made

understanding of where

customs

| Repealed. Cer¬

CHICAGO, 111.—The
vention

of

the

Association

62nd Con¬

Illinois

will

be

Bankers

held

at

-

the

Hotel Jefferson in St.

Louis, Mis¬
souri on June
2, 3, and 4, 1953, ac¬
cording to an announcement by
ment should do
procurement Kirk E. Sutherland, Association
at home, but there:seems no
justi¬ Secretary.
fication
This year's Convention
otherwise,Sin a competi¬
promises
tive
society for; procedures by to be one of the finest
that'the
which the taxpayer, through his Association has ever
sponsored.
tainly on strategic "items or mili¬
tary secrets the Defense Depart¬

[its

government,
support

pay^'fa

premium to
[domestic indus¬

specific

tries.

speakers
have
been
for the various conven¬

Permanent

a

Citizens' Commission
The

President

pointed

has

group,,

a

review

eign
like

to

on

policy.
a

our

for¬

should

I

group

for¬

Dr.

D.

Vice-President,
Association;
President,

Bankers:
W.

Morris,

President, Real Estate Research
Corporation, Chicago; and Warren
F.

S

1 e,

a r

Vice-President, The
Company, Chicago;

Northern Trust

malized and made permanent.

Elmer

The

among

Johns, President,

by for¬ Southern Illinois University, Car£ewis Douglas, bondale; James C. Downs, :Jr.,

such

see

ap¬

Included

Delos

American

already

and report

economic

are

Federal Reserve Bank of St.
Louis;
Everett D. Reese,

(headed

Ambassador

mer

sessions.

these
..

Establishment of

to

Thirteen
•engaged
tion

■'

legislative program just
has been directed al¬

suggested

exclusively to increasing the

our

position is seriously weakened by
the

fact

that,

in

for

instances,
agricultural

some

such

wheat, sugar, cotton
cheese, we too, employ pro¬

and

as

tective quotas.
To

Security

abolish

all

quotas

problems idtfolved in inter¬

to

tain

able

that

is

that

industries
is

not

inadequate,

and

skills.

feasible, or if
the Security

Council should then
certify to the
President the strategic importance

would

a

our

probably be too upsetting
farm economy.

more

be

to

with

tariffs,

should

First,

legislation should:
remove

Secretary

the

of

authority of
Agriculture to

itk0

program

which

at

no

chinery

Sales"

ident

R.
Wheeler,-, of
"Sizzle
fame; Fred Florence, Pres¬
of

Bank

the

.

Republic

National

of

has

hoib£
cad

one

must

and

Director

conse¬
Ma¬

be 4 established

I

review.
The final

to

In

.

conjunction

vention

ject

to

provjsiibn,

Senate

therefore, is

appoint, sub¬

[confirmation,

commission

charged

||#ith

the

expansion

tion,

with

there. will

of exhibits

the

Con¬

be

three

days

on display at the Hotel
These exhibits will in¬

clude

JjT1

for the President

the

Commodity De¬
American Farm!
Federation, Chicago.

Bureau

abroad

foresee.

of

And partments of the

provide continudu^ and objective Jefferson.

deceleratioi^Jor

of

all types of services -and
equipment of interest to the bank¬

ing business.
A featured event at the Conven¬

an tion

private

furthering

will

be

a

Golf

Tournament

held at the Norwood Hills
Club in St. Louis

on

Country

June 2.

This

international tournament will be
opened to all
trade. As their fpfencipal duties
member bankers and their ladies.
they should:
Some of the finer golfers in Illi¬
First, continuously study the ef¬ nois-will contend for the'many
fects of this program and' make prizes.
' ["
At the Convention, there will be
recommendations,rfbir its accelera¬
pf

amendment

on

the

domestic [

Second,
tion

as

this

election of both Illinois Bank¬

ers

Association

Association year

officers

for

the

starting July
1, 1953, and Illinois officers of the

economy.

consider

an

new

according to its [observed impact

legisla¬ American
Bankers Association.

part of the^targer problem

of United

Several

committee

meetings

States^ foreign economic and the Annual
Meeting of the
policy. Institute
jstfodies of the re¬ Installment Lending Division of
lationship
to
fh^ international
the

balance of

Illinois

payrpehtS: of tariff re¬ will be held
duction, loans, aid-programs and
foreign investments,
Third

make

Jreppmmendations

to reciprocal concessions which
the United States Should obtain

Bankers

on

Association

June 2.

Firm Name to Be

as

from

other

countries

to

remove

their restrictions oil-international

trade.

adopted.

New

the

Accordingly,

gradual approach, compar¬
that

economijc'^elations.

quences

immedi¬

sustaining orders, at pre¬
mium prices if
necessary, to main¬
those

the

con¬

to place

Where

we

[after

that

should

citizens

ately, while desirable in principle,

and

Trade

price,

duties, is 25%

advisory

IV

notably

initial

to suspend

of all commodities

or even

products

most
as

and

dictate

domestic price.

most

Council. It should be empowered
to direct the Defense
Department

might

pro¬

cannot be made

sources

many

industries and preserve the skills

for
meeting this problem properly

Month Plan."

commodity by commodity
country by country, with
the

eign

national

costs

of their labor.

The

Rather than continue to negotiate

nation

or

at

"Dumping."

more

of the
nation, provision would
have to be made to maintain those

rests

scheme

"Percent

under

be

obsolescence

inefficiency

Protection Against

their

If progressive tariff cuts should

to

Tariff Reduction

do

not

Public

that

of the rest of the nation.

expense

to

dustries and Skills.

which

u

favored

the

or

should

bolster

to

eign

new

Tariffs

comparative

new or aggres¬

rigid

gram,

Repeal of Buy America Clauses

imports

producers

job for the President

a

Congress. Nor is it- so
that it cannot be altered.

ciprocal

should be accepted by industry in
the same fashion as it now meets

cuts

contingencies:

essential

resurrected it would

a

no

continuing

established

First: Protection of

dustries

year,

excellent basis for the

And here's

receive

capital invested.

clauses to

tariff
be

measure

legislation that is needed.

call the

na¬

goods.

the operation of these

last

the tricky question
of imports.
If the

on

valuation

would

tional policy would be to provide
these firms ample warning and

lar

of

some

~

emasculated

the

they

mean

go out of business.

tect their industries

by

for

as

they employ. For

original bill submitted to the 81st unduly diminished the volume of
Congress is far preferable to the production of those domestic in¬
passed

well

as

firms it may cause a loss of prof¬
its or a decline of sales. For a few

volved,

Exceptions to the Tariff Reduction

pres¬

exasperated the most patient for¬
ous

is

imports
Ill

by red tape. The delays, compli¬

Customs

employment rises again.
true, of course, that the
competition of imported goods
may entail hardship for some do¬
It

could de¬

we

the Customs knows what is meant

ent

cuts

spelled out in precise de¬

tional

-

ex¬

-

the

imports. Then, since it is inopera¬
tive, it can be removed altogether.

excessively low prices, unrelated

national trade.

whether

and

tariff

*

Dallas; Miss Lucille LaIt is conceivable that, as a meas¬ physical flow of jgbpds into this
countries that trade with us and
Chapelle, renowned vocal instruc¬
observe the degree to which these ure of economic warfare, another country with the ipinimum dis¬ tor and Mrs. Ralph Roscher, ex¬
countries were meanwhile relax¬ nation might attempt to flood our ruption of the domestic economy. pert on the application of color;
As such it attacks; c^hly one of the and Dr.
markets with
Kenneth Hood, Assistant
goods
offered at
ing their own barriers to inter¬

cide, at

cations

further

to

and

in public

to

following

eral provisions:

procedures

empowered

until total

slow

a

be

all

postpone

financial
re¬

but inexorable pace, we would be
in a position to assess their con¬

speed

that, instead of ex¬
amending the Recipro¬
Trade
Agreements Act this

new

economy.

readjust to the new sit¬

any

could

propose

tending
year,

to

uation. The

adjust. We could
displacement of
Program

cal

time

con¬

sideration, then, the outlines of a
legislative program which I be¬

I

mestic producers

could be adjusted

Let

the

future would be known and plans

more.

A

to

much

accomplishing

of

disruption

Importers and exporters and do¬

the

have

shall

we

the

would minimize

we

would be small.
The amount of the change in the

shall have accomplished

we

the

Meanwhile

these

meet

can

finally would get rid of our tariffs.

should

dent

isn't

tail. That is

sively. Eventually the quota will
become larger than the volume of

one

no

£

„

,

That, gentleman, is the proposal.
It

progres¬

month, Customs officials would
cuts
agencies have
really compute the duty on each import until the labor is reabsorbed in
give preference to domestic
and collect 99% of it. On imports
knows, probably less than is gen¬
other industries. In the case of ducers in their
purchases. In
in February they would collect
erally feared. But still it must be
general unemployment, the Presi¬ eral Federal purchases from
much,

How

tion.

■

-

been

dried

as

import quota is

our

equal to

where absolute

cases

of

would sug¬ single industry communities or
change.
gest that
we
make unilateral, of general unemployment due to
Our actual economic structure
across-the-board, gradual and depression.
today is one in which many trade
Whenever the ordinary reliefs
progressive cuts—say at the rate
barriers exist. Over many years
of distressed industrial areas are
of one percent a month.
our system has
adapted to them
Here's how it could work. Let's demonstrably inadequate the De¬
and been built on them. It cannot
partment should
gressive reduction. I

re-adapt and re-build, overnight
without dislocation and
disrup¬

Second, in

a

basic national interest in the

pansion of trade.

prob¬

instances

rare

and additional import

new

quotas.

be

The

should

of

impose

prohibition

military,

tempted

be

Defense

be

the

on

protection

the

the individual items
Tariff schedules to Con¬

our

check

a

lest

expose

This
doesn't
mean
borrowing
gressional log-rolling, it might be
blindly from the economics text¬
better for
us
to start with the
books, waving a wand, and abol¬
schedules in existence today, rec¬
ishing all barriers in one magic
ognizing that however fair or un¬
sweep.
The theoretical adjust¬
fair they may be, they are exist¬
ments of the "long run" are pain¬
ing facts, to which domestic and
less and simultaneous only in in¬
foreign industries have adjusted
tellectual model-building. In prac¬
tice

As

Agreements, and certainly rather
than

to

tion for the industry involved.

Nudging the Inevitable—A
Proposal foi Froer Foreign Trade
way,

stop the
of tariff protec¬

Order,

Thursday, May 21, 1953

...

of

r

And fourth, sery| as
watch-dogs
national policylvto insure that

special interest

again

allowed

legislation is

never
tdLtranscend the

Unferberg, Towbin Go.
Effective
name

June

1st,

the

firm

of C. E. Unterberg & Co., 61

Broadway, New York City, will be
changed to C. E. Unterberg, Towbin

&

Co.

Unterberg
will

Partners, Clarence E.
Belmont Towbin,

and

remain the

same.

Volume 177

Number 5222

The Commercial and Financial Chronicle

...

(2235)

The

Indications of Current

following statistical tabulations

latest week

Business Activity

week

or

or

month available.

month ended

Latest
AMERICAN IRON AND
Indicated

steel

Equivalent
Steel

operations

tpercent

of capacity)

,—

May 24

Previous

Month

Week

Ago

§100.2

*100.3

101.0

§2,259,000

*2,262,000

6,276,150
6,949,000

6,705,000

May

23,041,000

23,322,000

22,503,000

___——___—May
May

2,373,000

2,674,000

2,678,000

9,465,000

10,012,000

output (bbls.)
May
Stocks at refineries, bulk terminals, in
transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
May
Kerosene (bbls.) at
May

9,790,000

8,772,000

8,457,000

8,723,000

and

gallons

Crude runs to

'

'

Distillate

fuel

Residual

'

.

Residual

(bbls.)

ASSOCIATION

(bbls.)

average

_.

_

output

(bbls.)

t

oil
oil

OF

AMERICAN

ENGINEERING

(number

of

Slab

U.

S.

Private

40,070,000

38,989,000

CONSTRUCTION

construction

and

municipal

zinc

765,411

781,499

721,139

BANK

681,058

682,457

719,859

OUTPUT

(U.

S.

BUREAU

646,149

622,708

Beehive

coke

$252,625,000

$275,001,000

$284,683,000

173,602,000

152,466,000

148,335,000

165,538,000

108,630,000

100,159,000

126,666,000

119,145,000

DEPARTMENT

STORE

SALES

EDISON ELECTRIC INSTITUTE:

Electric output
FAILURES
f

Finished

8,815,000

8,750,000

8,460,000

587,000

448,000

754,000

142,000

116,000

122,900

9

127

*114

97

INDUSTRIAL)

—

DUN

METAL PRICES

(E.

&

M.

J.

Domestic refinery
(New

Lead

(St. Louis)

Zinc

(East St.

4.376c

May 12

$38.66

$38.83

May 13

;

7,110,393

165

-

stored

r

29.700c

i

and

shipped

29.825c
33.125c

of

March

(in

15.000c

12.300c

12.300c

12.800c

14.800c

May 13

11.000c

11.000c

11.000c

19.500c

May 19

91.99

92.04

93.60

99.00

103.80

105.69

110.15

May 19

103.47

May 19

106.74

106.92

108.88

105.52

105.86

107.62

112.93

104.83

109.60

99.52

99.68

101.64

104.31

May 19

!___

103.13

May 19

and

1,801

101.97

102.13

103.97

107.44

and

Farm

other

3.41
3.23

:—May 19

3.16
s,

2.93

telegraph

and institutional
Other nonresidential
buildipg

;

facilities

Group
INDEX

NATIONAL PAPERBOARD ASSOCIATION:
Orders received (tons)

*

3.01
3.19

Miscellaneous public service
enterprises

3.65

3.49

Conservation

3.31

All

3.56

3.45
3.27

2.97

and

water

May

;

May

activity:
(tons) at end of period
REPORTER

other

416.9

9

—May

415.9

415.3

439.5

341,666

223,165

204,041

235,635

206,350

240,205

9
9

254,917

94

97

90

81

539,033

588,917.

554,127

—May 15

106.51

106.47

107.10

STATES—DUN
INC.—Month of March

27,844

31,303

32,698

27,989

May

760,886

866,522

927,029

802,482

May

$35,070,220

$38,550,080

$40,150,266

short

May

sales
sales

Customers'

short
other

23,109

229

27,452

30,943

22,911

624,644

111,021

910,364

660,310

198

May

sales

by

shares—Total

7,792

902,847

652,518

$24,773,301

$31,423,632

$36,563,744

$27,739,245

May

sales

159,260

—

251,720

279,970

198,920

SALES

251,720

219,910

1981920

309,620

&

ON

THE

NEW

319,280

278,550

310,790

YORK

■

Total

Apr. 25
ACCOUNT

OF

324,230
8,380,750

Apr. 25

8,704,980

sales

Other

sales

Total

*

,

292,080

initiated

off

the

sales

S.

A.

Refined
of

2,000

$544,000

April:

A.—

pounds)

95,888

89,473

112,016

98,402

142,282

133,462

107,579

48,382

2,000 pounds)

•101,825

112,660

55,807

61,223

104.7

of

(tons of 2,000 pounds)

stock

copper

2,000

at end

of

period

104.7

105.6

(tons

pounds)

FAIRCHILD

PUBLICATIONS

INDEX—1985-39=10©

RETAIL

PRICE

(COPYRIGHTED)—

As of May 1:
Composite index

Piece

goods

Men's

97.2

Women's
Home

children's

1

wear

furnishings

106.2

100.4

101.3

104.8

1

apparel
and

105.4

100.41

.

97.6

105.4

104.8

105.9

107.6

apparel

Rayon and

107.6

108.4

97.5

silks

90.2

90.7

107.6

110.5

94.7

95.4

94.6

102.2

102.2

120.4

120.4

121.7

95.0

—

90.6

107.5

101.6

Cotton

wash

goods

and

6,949,140

Aprons and

10,116,720

7,231,680

Corsets

comforters

Hosiery,

._.

housedresses

and

94.8

Underwear

863,090
>

734,940

1,010,130

774,990

95.3

98.0

98.1

97.5

107.3

brassieres

107.3

107.9

91.9

96.8

99.2

Shoes

99.2

100.2

108.6

.

108.6

109.2

Men's apparel—

127,470

137,410

179,880

146,330

Hosiery

646,220

860,170

631,940

Underwear

864,770

783,630

1,040,050

778,270

Shirts and

206,540

197,980

335,360

219,600

15,100

12,900

32,900

16,100

297,440

224,830

290,230

195,780

312,540

237,730

323,130

211,880

Socks

Apr. 25
Apr. 25

331,149

259,705

431,865

289,833

Shoes

54,650

60,190

74,090

36,600

458,265

323,010

425,760

353,495

Floor

512,915

383,200

499,850

390,095

Radios

104.5

104.4

106.3

101.7

101.6

100.7

''

1,400,779

1,192,625

1,777,355

1,284,423

Apr. 25

NEW
=

SERIES

—

U.

S.

DEPT.

210,500

286,870

199,030

1,194,060

1,576,160

1,690,225

1,404,560

1,863,030

1,380,245

OF

May 12

:

'Revised figure.
1953 as

farm and

([Includes 590,000

against the Jan. 1,




foods

barrels

109.9

*109.9

109.5

111.6

98.5

*99.0

98.0

108.3

103.4

of

110.6

102.4

102.4

100.2

100.2

100.2

overalls—

102.8

Infants' and

children's

102.8

104.5

106.7

108.6

102.9

102.9

wear—

102.9

—±

coverings

Electrical

—

household

appliances

112.3

108.2

108.2

118.6

118.4

118.9

101.1

.

102.8

101.1

102.8

100.9

Furniture

——

110.0

108.2

,—_—

102.8
110.0

——

100.8

101.8

102.9

China

—

■

FREIGHT CAR

OUTPUT

RAILWAY

■

*

-DOMESTIC
CAR

(AMER-

INSTITUTE)—

April:

(number

of

cars)

6,839

6,679

7,403

62,637

68,553

108,270

119.4

118.9

122.7

108.7

104.5

♦104.5

May 12

92.7

92.3

88.5

114.2

May 12

„

other than

106.6

110.0

106.7

Deliveries

May 12
May 12

foods—

_1

including

Month of

products—

commodities

Clothing,

107.0

102.4

Shoes

ICAN

100):

commodities

107.0
110.0

—

neckwear

1,181,215

Apr. 25

PRICES,

197,220
1,493,005

Commodity Group—

1,

U.

7,389,220

Apr. 25

LABOR— (1947-49

of Jan.

$507,000

737,300

Apr. 25

—

Total sales

as

of

Luggage

.

Other "sales

,

of

(tons

Underwear
,

,—

All

(tons

7,681,300

282,540

floor—

Total sales

Meats

month

Hats and caps—

Total round-lot transactions for account of members—
Total purchases

Processed

(000's omitted)

Apr. 25

_.

;

sales

Farm

30

385,390
9,731,330

the floor—

"

sales

Other

All

7,902

YORK—

Apr. 25

on

purchases

WHOLESALE

•7,943

$464,000

NEW

Apr. 25

initiated

sales

Short

Short

6

Apr. 25

'.

sales

transactions

Total

15

6

Apr. 25

1—

Total sales

Other

56
68

Apr. 25

__1

purchases

Other

57
13
58

Apr. 25

sales

Short

175

Apr. 25

7

transactions

Total

120

91.9

—Apr. 25

.

Other

109

FED¬

—

MEM¬

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which
registered—
Total purchases
Apr. 25
Short

OF

Copper production in U. S.

Blankets

sales
FOR

28

107

Women's apparel—

Apr. 25

TRANSACTIONS

.

BRADSTREET,

Sheets

sales

ROUND-LOT

42
^ -

Domestics-

sales

Other

BANK

INSTITUTE—For

Woolens

2

EXCHANGE AND ROUND-LOT STOCK
TRANSACTIONS
FOR ACCOUNT OF MEMBERS
(SHARES):
Total Round-lot sales—
Short

32.

„

May
STOCK

159*260

May

Innlnm
Round-lot purchases by dealers—
Number of shares.

35

135

34

Piece goods—

May

ROUND-LOT

of April

Infants'

sales

sales.

Other

7,517

765,583

May

v

.

11,444

611,771

'

.

dealers—

12,873

May

Short

TOTAL

31,172

272

22,392

——May

sales

of

27,724

266

May
—

Dollar value

Number

22,658

-—May
sales

sales

Customers'

138

137

$35,834,718

_

Round-lot

As

In

May

other

RESERVE

a..

.__

shares—Total

343

122

Deliveries to fabricators—

Odd-lot purchases by dealers (customers'
sales)—
Number of orders—Customers' total sales

of

ERAL

Crude

,

Customers'

325
•

(NEW) IN THE

COMMERCIAL PAPER OUTSTANDING

Refined

shares

Customers'

54

9,635

public

,

108.73

EXCHANGE—SECURITIES EXCHANGE COMMISSION:
sales by dealers (customers'
purchases) —

.;

6

826

14

412,863

Odd-lot

Number

8

46

INDEX—

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF
ODDLOT DEALERS
AND SPECIALISTS ON N. Y.
STOCK

orders

45

236

732

60

BUSINESS INCORPORATIONS

COPPER

Dollar value

'

64

development

UNITED

291,615

9

——May

PRICE

32

238

8

and

-

.

313

3.18

3.38

47

136

,

185

3.46

3.39

31

114

.

3.30

May 19

—

_

Highways

3.77

3.51

316

34

3.56

3.62

122

344

3.40

3.63

9

33

23

9

3.59

3.59

26

18

137

naval

-

11

26

138

Military* and

28

30
•

48

3.78

May 19
May 19

33

31

837

—

3.42

May 19

'

47

May 19
;

119

264

_____

.__

building
Nonresidential building

Sewer

118

73

19

Educational

3.34

40

87

,25

Industrial

3.52

33

65

137

construction

109.79

3.35

49

11

private

113.70

3.54

114

33

Residential

2.56

194

344

and

105.00

2.97

198

33

108.16

•3.08

386

119

utilities

103.13

3.09

12

430

64

recreational

Other public utilities

Public

19

49

construction

Telephone
All

71

424

May 19

of

750

(nonfarm)

Railroad

106.21

May 19

.1

of

750

20

Hospital

A

Number

.*■.

82

Hospital and institutional
Miscellaneous

102.63

May 19

Number

849

785

113

106.04

May 19

„

orders

840

192

May 19

Aa

Unfilled

1,690

V

alterations

building

May 19
-

____

Percentage of

1,716

887

■

Social

AVERAGES:

.Aaa

OIL, PAINT AND DRUG
1949 AVERAGE = 100

$2,516

$2,638

Educational

114.46

May 19

!___

(tons)

$2,448

OF

millions):

building (nonfarm)
dwelling units

Public

corporate

Production

48,444,000

$422,254,000

and loft buildings—
restaurants, and garages
Other nonresidential
building
Religious

121.500c

13.000c

s

COMMODITY

32,336,000

$467,630,000

Commercial

27.425c

99.500c

12.500c

14,418,000
6,337,000

31,170,000

construction

Additions

24.200c

29.925c

,

Group

Industrials

38,600,000

Residential

$42.00

100.000c

U. S. Government Bonds

MOODY'S

39,942,000

$455,169,000

construction

$42.75

May 13

Group

26,556,000

8,914,000

between

CONSTRUCTION—U. S. DEPT.

new

$52.77

29.675c

102.63

Baa

$210,951,000
134,932,000
7,172,000

•

u

$55.26

12.500c

;

Railroad Group
Public Utilities

$237,426,000
110,412,000

BANK

Industrial

97.000c

at

DAILY

RESERVE

countries

Nonresidential

29.550c

at

YIELD

goods

4.131c

4.376c

May 13

—

BOND

$134,145,000

OUT¬

YORK—As of April 30:

LABOR—Month
Total

154

May 13

Group
Utilities Group_„

Average

8,112,969

__.__-.May 13

at

at

corporate

Industrials

$153,511,000

$229,123,000
114,850,000
10,570,000

ACCEPTANCES

Warehouses, office

*

.-Public

$145,641,000

thousands)—

Stores,

—_i

MOODY'S

117

QUOTATIONS):

Baa

-

165

$55.26

Railroad

.'

198

4.390c

1

Aa

•>!-

7,896,539

$55.26

MOODY'S BOND PRICES DAILY AVERAGES:
XJ.S. Government Bonds
Aaa

7,959,054

May 12

'

Average

5S.838

SYSTEM—

exchange
on

Private

-—May 12

at

Louis)

23,423

GOVERNORS OF

Total

;

York)

(New York)

OF

;

New

Export refinery at
Straits tin

85,592

54,524

Nonhousekeeping
_

Electrolytic copper—

;

.

&

May 14

lb.)

(per

83,011

77,285
99,864

38,722

88,200

COMPOSITE PRICES:
steel

(in

DOLLAR

BUILDING

'.— May 16

AND

83,485

86,156
94,254

7,960,000

606,000

V

'

(per gross ton)
Scrap steel (per gross ton)

Lead

Based

9

Pig iron

.'

Dollar

39,028,000

9

BRADSTREET, INC
IRON AGE

80,117,000

9

(in 000 kwh.)

(COMMERCIAL

95,002,000

31,664,000

May

May

80,546

IIIII

Domestic shipments
Domestic warehouse credits

79,359,000

—May

100

==

6,890,391

of

Exports

20,800,000

INDEX—FEDERAL RESERVE

AVERAGE

BOAF.D

—

April

NEW

86,017,000

±__i.—_May

—

SYSTEM—1947-49

of

foreign

:

(tons)

*7,992,140

6,533,227

(tons of

pounds)

STANDING—FEDERAL
OF

MINES):

Bituminous coal and lignite (tons)
Pennsylvania anthracite (tons)

*10,168,098

7,436,919

42,900,000

2,000

Imports

$282,232,000

May 14

OF

output, all grades
of

FEDERAL RESERVE

BANKERS'

22,613,000
COAL

smelter

DEBITS

THE

May 14
—May 14

,

INSTITUTE, INC.—Month

at end of period
(tons)_
Unfilled orders at end of
period (tons)

May 14

L

9,545,000

Stocks

ENGINEERING

—

.=.

Ago

alloy

(net tons)—Month of March

pounds)
Shipments (tons

40,663,000

May

construction

State

,

for

including

stainless

Available

60,972,000

62,964,000

cars)_

construction

Public

.

steel

2,000

Not
•

NEWS-RECORD:

-

and

Year

Month

INSTITUTE:
castings produced

19,075,000

May

of

(no.

of that date:

Previous

April:

161,207,000

20,040,000
61,314,000

11

cars)

are as

STEEL

tons)—Month of April
Shipments of steel products,

Month

freight received from connections

1 Total

,

ingots

AND

(net

AMERTr/vN zinc

RAILROADS:

lreight loaded

Revenue

CIVIL

157,599,000

20,221,000

May

.

either for the

are

Month

IRON

(Strike)
157,337,000

May

(bbls.) at
(bbls.) at

Revenue

-

AMERICAN

and

.

fuel

2,134,000

of

May

oil

fuel

(bbls.

average

1

;

(bbls.)

oil

fuel

Distillate

output—daily

stills—daily

output
Kerosene output

.

INSTITUTE:

condensate

each)

Gasoline

•

of quotations,

cases

6,267,750

May

6,334,550
116,865,000

42

PETROLEUM

oil

Crude

,

in

or,

Latest

102.7

2,276,000

AMERICAN
,

that date,

Steel

_May24

Dates shown in first column

Ago

to—

ingots and castings (net tons)

production and other figures for the

cover

Year

Week

STEEL INSTITUTE:

on

51

113.4

*113.4

113.3

112.9

foreign crude runs,
SBased
1952 basis of 108,587,670 tons.

on

new

annual

capacity of

117,547,470 tons

Backlog of orders at end
of

cars)1

INTERSTATE
Index

of

March:

of month

(number

:—

COMMERCE

COMMISSION—

Railway Employment
(1935-39

*Revised figure.

average =

at

*

middle of

100)

52

The Commercial and Financial Chronicle.. .Thursday, May 21, 1953

(2236)

will do the

operation. Television

Continued from page Q

follow the pattern

TV will also

Outlook lot Appliance
And Television Indnsbies

of radio in another respect. In all
but

itself

income

lowest

the

brackets

the

and

have in

same.

picture

ceivers

excellent

duce

results.

We

within nine months to

standard. As yet the surface of the
set market has only been

the FCC gives the go
compatible standards.

scratched.

Less

1%

than

of

could

get them into volume production

two sets in the home will become

second

We lease it before it is .technically
ready for everyday* trouble-free

tube.

laboratories today re¬
with circuits which pro¬
our

TV

the

But

,

problem

a

ahead

close that

homes have freezers
10

to finance new homes. And
forget the automobile and

ways

don't

industries

building

I expect them to

years

almost

universal

as

erators

merely

are

Only 12% of electrified
today. Within

example.

for better ways to

use

Most

now.

are

be in

refrig¬
of the

as

two

or

more

initial

heavy

operating
I

cars,

cost

despite

and

the

the

high

expense.

that

know

replacement

and

multiple ownership have been dis¬

appliances have sim¬ cussed time after time. They can¬
illustrative
of
the
competition
growth
possibilities.
Air not be overemphasized, however.
for the consumers' dollar that is ilar
coming from every direction at conditioning will become the rule Together they will provide a very
rather than the exception in the substantial
and
once.
permanent
TV
home of the future.
Automatic business in all markets for strong
Areas of Improvement
other major

:

laundry equipment will be as manufacturers and strong dealers.
Our industry cannot stand still
commonplace as the conventional
and meet such competition.
We
Color TV
wringer washer is today.
The
have got to progress and progress
American home is going
to be
No discussion of the television
fast.
There
are
five
principal mechanized and the homemaker
outlook today would be complete
areas
where there is a crying
freed of physical labor as com¬ without a
review of the prospects
need
for improvement.
One is
pletely as her husband already for color TV.
the layout of dealers' stores and
has been in the factory. That may
Since the government ban on
their display techniques. Second
sound visionary.
It is not only color set
production was lifted a
""is the
quality and training of coming, however, it is already
short while ago, color has been in
retail sales personnel.
Third is well under way.
the news in a big way. Congress,
in promotion and mechandising.
Will There Be Buying Power?
through the House Interstate and
Fourth is in personal contacting
Commerce
Committee,
You
or, if you will, doorbell ringing,,
may
ask "Where is the Foreign
to get prospects. Fifth is in serv¬ money coming from?"
I suppose has again interested itself in the

ice,

too
frequently
is people asked that same question
the
automobile
industry
prompt, reliable nor when

which

i

neither

friendly.

was

in

its

The answer

infancy.

subject.

moment,

strong

is being exerted to get

pressure

color

the

At

the air. There have

on

even

been dark hints that undisclosed
leading manufacturers in is, of course, that it is coming
but sinister forces are interested
industry have been working out of increased real wages which
hard to help dealers do a better the American worker will earn in holding color television back.
3»b in these five fundamentals as a result of increased produc¬
Personally, I know of no one in
People can use only so the
of sound retailing.
Many dealers tivity.
industry who is not extremely
have been plugging hard at the much of non-durable consumption anxious
for
this
forward
step
problem too.
But the majority items such as food. As their in¬ when it is technically ready. Ad¬
still have not seen the handwrit¬ come increases the gain is spent miral
certainly is. We have been
on
durable goods which add to
ing on the wall.
conducting intensive research in
the ease and pleasure of living.
I have heard dealers complain
color reception for years in two
This is
the
historic pattern of
that
the
factories
overburden
laboratories—one at Chicago and
American
progress.
There,, is
them with sales
Most

the

;

help

and

wear

at Palo Alto, California.

one

with selling and sales every reason to expect that it
Each laboratory has cooperated
will continue to be. By the time
advice.
Recently,
as
another 10 years has passed, the closely with the National Tele¬
many
of you
know,
Admiral
amount
of
disposable
personal vision Standards Committee,
worked
out a tie-in promotion
income spent annually for electri¬ which comprises engineers repre¬
with the Peter Pan motion pic¬
cal appliances should be at least senting all interests in the indus¬
ture
to build store traffic.
We
double.
try. The NTSC, as the Committee
offered to give away a complete
So much for appliances. Now is known, has been working in¬
miniature
TV
studio
to
every
let's talk about TV. Television al¬ tensively to develop standards for
youngster who brought his parents
a
compatible
color
telecasting
in to a dealer and asked to see ready has become p necessity in
them

out

training

-

is

with

the

us,

49
t»

spend

to

Dealers

open

thousands

of combinations of

ad¬

justments possible, of which only
one is correct.
Moreover, the pres¬
ent

tube

may only

tration for

stay in regis¬

«

.

covered

ground

tonight.
we

quite a bit of!
To summarize, I

have

the last of

seen

shortages. We have built the dual
economy

set out three years
All-out competition*

we

ago to create.

which

is normal and

healthy for

American business, is back to stay.
To meet heightened competition

ences.

more

drudgery

things that eliminate
more
things that

and

contribute

to their enjoyment of
No industry has more to

living.

You

can visualize the
difficulty
industries. We. could not ask for
training servicemen, the serv¬
a greater opportunity.'<
icing problems and the public re¬

of

action

that

would

complicated

a

result

if

instrument

such
were

put into homes for everyday use.
To put it in a
sentence; this tube
is a laboratory device. It cannot
be

considered

ready

for

use by the
longest stretch of the
imagination. Even if the tube

dependable and serviceable

were

in the
to be
able

field, it is still
mass

too complex

produced at

a

reason¬

cost.

So, gentlemen, don't be misled
by talk that color is just around
the

corner.

to have

the

First, the industry has

the right color tube and

right tube simply doesn't

ist at present.

tube is

will
mass

I

And

ex¬

when such

developed, at least

be

required to
production.
as

anxious

ready for public

to

us

as

a

year

up

for

see

color

anybody in

out of the industry. When it is
ready, color will give TV the same
or

kind

of

boost

from the

it

is

opening of

now

getting

new markets

and the introduction of

Annual Field
CHICAGO,

new

larger

111.— The

!

Day
annual

field

day of The Exempters, the
municipal bond organization for
young

will

men

be

La

on

held

at the

Salle

Street*

Nordic

Hills

Country

Club,. Friday, May 22.
Municipal bond.: men; from .other
La- Salle

well

Street

organizations

as

from-cities throughout the
Midwest will -attend.
Golf and
as

softball will

be the

featured

en¬

tertainment of the day. Golf prizes
for low gross, low net and
high
net

a

tool

-

am

"Exempters" to Hold

public

will

be

awarded.; Robert

E„

Simond, Jr., Halsey, Stuart & Co.*
Inc., is general outing Chairman*
and

Raymond B. McCabe, Halsey*
& Co.,
Inc., is assistant.

Stuart

James G. Brophy, Blyth & Co., is
President; George R. Smith, Glore*
Forgan & Co., is Secretary, and
Byron J. Sayre,. John Nuveen 8c
Co., is Treasurer.
Directors in¬

models. But the most seri¬
mistake anyone could
possibly
make would be to force color set

clude the officers and William A,.

production before the picture tube
problem is licked.

pany,

screen

ous

should

arms

been carried to a high state of
cents to get 6Y2 and 7 million units. In the new by almost the entire industry.
markets opened since the freeze
The NTSC recently arrived at practicability before being sold to
dealer's store.
the public.
welcome
with was lifted last year, TV is getting compatible standards and
they are

manufacturer's

any

even

it

more

rapid acceptance than

experienced

in the pre-freeze

now
are

being field tested. These tests

expected to be completed dur¬

live

I have

vanced,

no

idea when

less

a more

complicated

tube will be available.

ad¬

color

I do know,

promotion.
You can bet markets in 1949 and 1950. This ing the summer and the FCC then
last dollar that more of demand, which will continue to will be asked to approve the however, that scientific progress
cannot be produced or hastened
these traffic builders are coming.
grow,
combined
with
demand standards proposed by the "Com¬
by either Congressional mandate
The manufacturer who originates from established
markets, is cer¬ mittee.
or wishful thinking.
the best ideas, and the dealers tain to
Three questions remain: First,
keep TV production at a
There has been a great deal of
who capitalize on the most effec¬
very high level for several years will the commission approve the
speculating done on our third
tive ones will get the business.
NTSC standards? Second, if the
to come.
question, the matter of the prob¬
Some of you may recall Ad¬
Here in New York, and in other commission approves, how much able cost of a color receiver. What
miral's offer to give away four
time will elapse before color re¬
you have heard is pure guessing
leading cities which have had TV
glasses
to
people
visiting
a
since the start of commercial tele¬ ceivers are available to the pub¬ beeause cost is absolutely incom¬
dealer's store during political con¬
lic? Third, what will they cost?
putable until the industry has a
ventions last summer. We plugged casting, four out of five families
The presumption—but it is
now have sets. Almost half of the
only picture tube which can be mass
that promotion hard over national
sets in use, however, are obsolete, presumption:—is growing that the produced,
easily registered, and
TV
your

radio

and

nection

with

in

networks

our

con¬

of

sponsorship

eonvention

coverage.
Four hun¬
thousand
people
visited

dred
dealers
the

and

glass

given

specifically asked for

set.

hundred

million

One

glasses were
That's what I call

away.

Manufacturers
this

job.
And

an

own

they

of

vantage
have

can

also

must

local promo¬

can't

traffic

idea.

an

only do part

Dealers

work out their
tions.

six

thousand

creating store traffic with

take

unless

ad¬
they

attractive store with well

displayed merchandise, and sales¬
who

men

can

close

a

sale when

a

prospect is in front of them.
know

I
j

have

offer to satisfy these desires than
the home appliance and television

matter of days.

a

31
a

representative who walks in with

;

mistake.

I

Noonan,

Jr.,

National

Continental

Bank

and

Illinois

Trust

Com¬

and Henry J. Jensen, East#
man, Dillon & Co. Blair A. Phil¬
lips, Jr., White-Phillips Co., Inc.*

If we
23 million homes and there are system. As you know, the system
move
prematurely, we
The cost to
23 million more families eagerly authorized by the FCC in the fall could set
color back for years. is Chairman of the golf commit¬
advertising was
Black and white TV never would
tee; Walter A. Hintz,-. Stone 8c
cents.
We sold the giveaway waiting for it. Receiver produc¬ of 1950 was incompatible and was,
be where it is today if it had not
Webster Securities Corp., softball
the dealer at 18 cents. We are tion this year should run between therefore, considered unacceptable

prospect into

a

fervently

exclusive of

glad
a

I

we will have to
strengthen every
phase of our selling. We have a
big advantage, however, in the
ments. An Admiral engineer spent
fact that appliances and television
months
acquiring
the
skill
to are both
growth industries. It is
bring the three colors into regis¬ impossible to
be
anything
but
tration on these tubes. There are
very optimistic about their future.
12 adjustments necessary to regis¬
The American people are dyter the tube, all of which are in¬
namic. They are rapidly growing
terdependent.
in numbers and they want progMathematically
that
makes ress.
They want more conveni¬

Admiral product.

an

home;

believe

on

gap.

search right now
sell and easier

organized

an

salesmen,

master

are

to

out

the

hope the industry will not make
that

after

year

Despite the very real problems homes have more than one re¬
are
picture tube. At present, two types
,The pres¬ we face in rebuilding our selling ceiver. Contrast that with the ex¬ are available. Both
are hand
made,
we
have one big advantage over
sure of
their competition on our
tremely high multiple ownership
many competing industries.
The of radio receivers. Or, if you will, bulky and very expensive. One
industry is going to be terrific.
does
not
give a color picture
for
practically
every
Another example is the building market
contrast it with multiple owner¬
which we
consider
satisfactory.
industry, which is planning to major electrical appliance is in ship of automobiles. One out of
The other is extremely complex
put up more than a million homes its infancy.
each eight families already owns
and requires very critical adjust¬
Home freezers are an excellent
again this year. It is conducting

who

service in

I'm talking about

the

very roots of retailing. But we've
to get back to them in our
Industry—not halfway but whole
got

hog. They must become

of life, just

way

as

fore World War XL
t

r

f

,

'

,'




daily
be¬

were
.

■

-

our

they
*

.
"

<

r*

,

.

v v—'—— *

currently being replaced and will
be replaced at a more rapid rate

the which will be as reliable in field
NTSC standards by early 1954. If service as present black and white
tubes.
this proves to be the
How, gentlemen, can you
case,
the

if

real posers are

small

we

screen

do

a

models.

real

These

selling job.

.

are

*

commission

two

and

Is There Danger of Saturation

What

saturation
The

here

solution

screen

in

lies

your

in

market.

selling

big

sets to present small screen

will

statements

widely
be

on

after

be

approve

questions number

three:

receivers

I know you are concerned about

will

When

publicly

they
have

cost?
been

will

color

available?

Recently
made

and

estimate

the

that isn't
When

cost

designed
the

of
as

something
yet?

tube

problem is
licked, I am confident that every¬

the

that

sets

will

able

to

produce

sets

at

-

and

in

ward

mass

of American families. Broad¬

Lee

Illinois

H.

Co., guest
S.

Ray.

National

Conti¬

Bank

&

committee;-Ed¬

Beaumont, Bache & Co.*

food committee; Ronald M.
Coutts*
John Nuveen & Co., prizes com¬

mittee; John N. Faust, Kidder*
Peabody & Co„ raffle committee^
and

Wilbur Inman, John Nuveeu
Co., publicity committee.

&

Bernard DeCheine With

"

Shearson, Hammill
(Special to The Financial Chronicle)

LA

CROSSE, Wis.—Bernard L*

DeCheine
with
Mr.

has

become

Shearson,
DeCheine

he

associated1

Hammill

&

Co*

formerly with
Emerich & Co., Inc., and
was

Ames,
Dayton & Gernon.

Prior

thereto

Manager of the Trading
Department for J. M. Dain & Co*
of

was

Minneapolis.
i

Join Hanrahan Staff

a

NTSC
standards
are
selling the idea
of two set ownership. We manu¬ adopted. At the other extreme are casting stations and networks will
be eager to make the necessary
facturers are doing our utmost to predictions that color is five to
investment
in
color
equipment
ten years away.
give you advanced, large screen
even though costs are enormous.
In our opinion it is impossible
sets at bargain prices to help you.
Despite all the stories you hear
at the
present time to forecast
The concept of saturation fits
about the high cost of black and
when color sets will be available
only in a static economy. By im¬
white TV to advertisers, I have
in appreciable numbers. A hand¬
no doubt whatever that
provements in performance, qual¬
sponsors
ful of sets might reach the market
will be willing to absorb the addi¬
ity and style, American industry
within a year, after a compatible tional cost for color
is
when they see
continuously ' obsdleting
its
color system is approved — but the
earlier production. The automo¬
public is willing to buy the
only a handful.
receivers. All we have to avoid is
bile and radio industries provide
There are two principal ele¬
moving too soon. The one sure
classic examples of this process in ments in a color receiver—the set
way to kill color would be to re¬
owners

Trust

thing else will follow. We will be

price
the market in 9 to 12 months well within the reach of the great
publicized

committee;
nental

(Special to The Financial Chronicle)

WORCESTER. Mass. — John U
Charamella and Joseph G. Moller
are now with Hanrahan &
Co., 3S2
Main Street, members of the Bos¬
ton and Midwest Stock Exchanges

With Keenan &

Clarey

\

(Special to The ©inancial Chronicle)

MINNEAPOLIS, Minn.
-

B.

Strom

has become

—

Floyd

associated

with Keenan

Knight
merly

-Clarey, Inc., McBuilding. ; He wasfor¬
an officer of the Elysiart

State Bank.

„

^

,

.

-

-

«j

,

^

,

.Volume 177

Number 5222. .;The Commercial and Financial Chronicle

53

(2237)

x,

Securities
Aberdeen Idaho Mining Co.,
March 30

Proceeds

stock.

common

To

—

Price

Now in

Wallace, Idaho
100,000 shares of

(letter of notification)

assessable

15

—

cents

per

June
non¬

share.

develop mining claims. Underwriter

Wallace Brokerage Co,,

—

Wallace, Idaho.

ACF-Brill Motors Co., Philadelphia, Pa.
April 20 filed 215,360 shares of common stock (par $2.50)
and 44,303.5 common stock subscription warrants. Price
—At prices not less than 50 cents per share of stock and
25 cents per warrant below current market.

To Allen &

Proceeds—

Price—At

market

(about $2 to $2^

Vancouver, B. C., Can.
April 22 filed 250,000 shares of common stock (no par).
Price—$1 per share (net to company). Proceeds — To
purchase equipment and supplies. Underwriter—M. H. B.
Weikel, Los Angeles, Calif.
if Adams (W. Smiley), Inc. (Pa.)
May 11 (letter of notification) 892 shares of 6% cumu¬
lative preferred stock (par $100) and
4,460 shares of
five

(par $1) in units of

shares.

common

Price—$125

preferred

one

unit.

per

basis

of

one

share

new

for

each

four

-^ American Brands Corp., Reno, Nev:
May 18 (letter of notification) 28,500 shares of common
stock (par 25 cents). Price—At market (about
$3.50 per
share). Proceeds — To Alfred D. McKelvy, President,

common

per

Acteon Gold Mines Ltd.,

stock

the

on

held; rights to expire about June 17. Price—To be
supplied by amendment. Proceeds—For working capital.
Office—St. Louis, Mo.
Underwriter—Kidder, Peabody &
Co., New York.

Office—206 No. Virginia

St., Reno, Nev.

share).
Proceeds—To Nash S. Eldridge, the selling stockholder.
Office—464-72 East 99th St., Brooklyn 12, N. Y. Under¬
writer—Eisele & King, Libaire, Stout & Co., New York.

common

2

shares

and

Proceeds—

American

Gas &

Electric

Co.

(6/9)

May 13 filed 800,000 shares of

common

derwriters—To

by

stock

(par $5).
Proceeds—To be invested in operating subsidiaries. Un¬
Probable

be

determined

bidders:

First

Boston

competitive

bidding.
Securities

Corp.; Union

Corp.; Blyth & Co., Inc., and Goldman, Sachs & Co.
(jointly). Bids — Tentatively scheduled to be received
11

to

up

(EDT)

a.m.

June 9 at 30 Church St., New

on

York 8, N. Y.

notes due 1963.

each).

Price—At par (in denominations of

Proceeds

$1,-

For working capital.

—

Business—
Underwrite r—Gordon

Food

processing machinery.
Graves & Co., New York.

Road and Millbrook Lane, Haverford, Pa.
—None.
•

American Automobile

Underwriter

-

„

Insurance Co.

(6/3)
May 13 filed 125,000 shares of capital stock (par $4) to
be offered for subscription by stockholders on or about

•

(letter

12

of

notification)

(5/29)

not

exceeding 15,000
of common stock (no
par) to be offered about
May 29, for subscription by common stock holders of
record May 15, at the rate of one new share for each
shares

three shares

held (with
rights to expire June 22.

oversubscription privilege);
Price—$10 per share. Proceeds

an

Texas

J.

Corp.—

Fountain

&

Preferred
Co.,

Inc.)

Industries, Inc.—
Russ

&

Debentures

Co.)

June 3,
(Kidder,

(Rau.&cher, Pierce & Co.; A. C. Allyn & Co., Inc.; and
$3,500,000

&

to

be

Co.

Peabody

offered

Inc.)

EDT)

.Bonds

$35,000,000

Bangor & Aroostook RR
(Bids 5:30

.Bonds
EDT)

p.m.

$1,675,000

Bund ay's Water Co

-Bonds

(Graham

&

Co.)

$35,000

Peruvian Oil Concessions Co., Inc...
G.

<B.

Phillips & Co.)
11

Bonds

EDT)

a.m.

Securities

11:30

Debs. & Stock

Corp.)

'Offering

Oil

&

(East

Common

stockholders—no

to

Gas

underwriting)

Corp

Coast

Common

Securities

Corp.)

$299,975

Phillips Petroleum Co.—
(Offering

.

to

Debentures

stockholders—underwritten

First

The

Rockhill

Boston

Corp.)

by

Burnside

B.

Common
&

Co.,

Inc.)

$298,000

Three States Natural Gas Co
(Lehman

Brothers)

Common

500,000

Chicago & North Western Ry
CDT;

3

(Bids

1

A.

to

(Offering

.Debentures

&

Co.)

88,385

by

Francis

$25,000,000

(Honolulu).

Common

underwriting)

200,000

a.m.

EDT)

and

M.

Common
Marks

&

Reynolds & Co.

318,625 shares

Co.)

Bonds

(Bids

(Bids

(Oifering

11

EDT)

a.m.

11

EDT)

a.m.

$7,000,000

..Common
&

Co.,

Co.

&

Co.; Equitable Securities Corp. Bids—To be received
to noon (EDT) on May 25 at 70 Pine St., New York,

up

N. Y.

:

•

•

'

filed

$18,000,000

of

(6/8)
first mortgage

bonds

due*

7

Proceeds—To repay bank loans and for new coi*-

Underwriter

struction.

—

To

be

determined

by

com-v

petitive bidding. Probable bidders:
Halsey, Stuart &
Co. Inc.; Lehman Brothers and Stone & Webster Se¬
curities Corp. (jointly); The First Boston Corp.; Whiter
Weld & Co.; Equitable Securities Corp. and Central Re¬
public Co. (jointly); Merrill Lynch, Pierce, Fenner &
Beane and Union Securities Corp.
(jointly). Bids—To
be received up to noon (EDT) on June 8 at Two Rector

due

May 1,

working capital. Business—
Underwriter—Reynolds

Manufacturer of tires and tubes.
&

Co., New York. Offering—Temporarily postponed.

Stanley

&

Debentures

Co.)-$150,000,000

stockholders—bids

to

New York, Chicago &

Common

EDT)

noon

828,516

shares

St. Louis RR.„Eq. Tr. Ctfs.
EDT)

noon

(Bids

10:30

to

a.m.

be

April 17 filed 500,000 shares of common stock (par 16
cents). Price—$1.25 per share. Proceeds—For engineer?ing, development and mining expenses. Underwriter—
George D. Clarke, Ltd., 50 Broad Street, New York.

Denver, Colo.

(letter of notification) 232,000 shares of

stock

ccxntr

Price—$1.25 per share. Pro¬
ceeds—For exploration.
Office—Interstate Trust Bldfc,,
Denver, Colo. Underwriter—Luckhurst & Co., Inc., New/
mon

(par 10 cents).

•

Aviation Equipment Corp.

(5/26)

April 17 filed $1,000,000 of 6% subordinated debenture®
due 1964; 8,000 shares of 6% preferred stock (par $56};
and depositary receipts representing 8,000 shares of coumon stock
(par $1) to be offered in units of a $1,006
debenture, eight shares of preferred stock and depositary
receipts representing eight shares of common stock. Prfc*
$1,550 per unit. Proceeds—From sale of securities, to¬
gether with $4,000,000 to be borrowed from bank, to ac¬
Underwriter—Union Securities

Corp., New York.

EST)

if Beryllium Corp., Reading, Pa. (6/8)
May 15 filed 88,385 shares of common stock (no par}
to be offered for subscription by common stockholders
of record June 5 on the basis of one new share for each,
To

be

held; rights will expire on June 18.

Price—

supplied by amendment. Proceeds—For a mod¬
and expansion program.
Business—Produces

ernization

May 14 filed $1,600,000 of 6% debentures due June 1,
1978 and 160,000 shares of capital stock (par $1) to be
in units of one $500 debenture and 50 shares of

offered

stock.
and for

$3,150,000

Price—$600

per

working capital.

unit. Proceeds—To repay debt
Underwriters—Laird Securities

Co., Inc., and Laird, Bissell & Meeds, both of Wilming¬

June 15, 1953
Michigan Consolidated Gas Co

(Bids

Bonds

ton, Del.; and Harrison & Co., Philadelphia, Pa.

Continued

$20,000,000

on

page

Bonds

invited) $7,000,000

—Common
June

underwriting)

Rogers Corp

1953

22, 1953

Class B

—

(Offering to stockholders—no underwriting

June

Co., Inc

Common

Fuel

Oil

(Bids

General

(Bids

11

a.m.

Dynamics

1953

(Eids

Debentures
EDT)

$23,000,000

Inc.)

250,000

&

Oklahoma Natural
(Bids

Texas
f

,

.,

Utilities
u

-'"id

'»+■

11

Gas

Co.,

shares

a.m.

EDT)

$6,000,000

Bonds

Co
EDT)

a.m.

835,000,000

Bonds

11

EDT)

a.m.

$12,500,000

24, 1953

Gas Service Co

Co

EDT)




Common
about

(Bids

Common
to

be

invited)

1,500,000

$7,500,000

Common
*

New York

Boston

Philadelphia

Pittsburgh

San Francisco

Denver & Rio Grande Western

235.0Q0 shares

£dt)

shajf^s

Aug. 3, 1953

Common

Co
4bids^l

11

June
Bonds

a.m.

invited)

Common
Greenshields

Iowa Public Service Co
11

be

Pennsylvania Electric Co.—
(Bids

Corp

(Lehman Brothers and

(Bids

to

New York Telephone

Corp

23, 1953

Gulf States Utilities Co.__

Aronheim)

June 2,
Arkansas

-

if Brandywine Raceway Association, Inc.,
Wilmington, Del.

General Motors Acceptance Corp

(Offering to stockholders)
(Walter

-

1973. Price—To be supplied by

Proceeds—For

amendment.

City Bank & Trust Co. of Reading, Pa._ —Common
Texas Western Oil

;

if Arkansas Power & Light Co.

beryllium alloys. Underwriter—Francis I. du Pont & Co,

Inc.)

10, 1953

Common

Finance Co

June 1,

Inc.; The First Boston Corp. and Lazard Freresi
(jointly); Union Securities Corp.; Smith, Barney

&

four shares

—Bonds

$5,500,000

stockholders—Blyth

to

June

$3,930,000

stockholders—no

to

(5/25)

of first mortgage bonds dta*>
1978. Proceeds—To repay $24,500,000 bank loans and fear
new construction, etc.
Underwriters—To be determined!
by competitive bidding. Probable bidders: Halsey, Stu¬
April 22 filed $35,000,000

800,000 shares

stockholders—underwritten by

Laurence

shares

Common

Records, Inc

May 29, 1953
(Offering

Louisiana Gas Co.

Arkansas

quire airplanes and equipment and for working capital.

June 9, .1953
American Gas & Electric Co

to

I.

shares

Bonds
EDT)

noon

stockholders—no

to

Common

Washington Gas Light Co
American National

•

York.

Bonds

$18,000,000

Electric Light & Power Co.

(Bids

Equip. Trust Ctfs.
EDT)

1953

EDTl

Telephone Co.

(Offering

(Oifering to stockholders—underwritten by
The First Eoston Corp,) 175,000 shares

p.m.

by

100,000 shares

stockholders—underwritten

to

(Morgan

Common

Rochester Gas & Electric Corp

1

June 2.

on

March 23

New England Electric System—

stockholders—no underwriting)

Ry

cumu¬

ly); Equitable Securities Corp.; Smith, Barney & Co.;
Blyth & Co., Inc. Offering—Expected at 11 a.m. (EDT}

Atomic Uranium Corp.,

1953

....

(Bids

Mutual

Common

May 28; 1953
Manufacturing Co

(Bids

and

Co.;

Common

noon

duPont

publie^-no-underwriting) $140,000

Wisconsin Central

&

San Diego Gas & Electric Co._

$2,325,000

Co., Inc..,

(Offering to

Loeb

New Jersey Power & Light Co

V

Gray

Blyth

$50,000,000

Gulf Power Co

Electric Power Co

(Offered

by

Debentures
Kuhn,

Brothers)

Lomasney & Co.)

(Offering to stockholders—underwritten by Dillon, Read
& Co. Inc. and Johnston, Lemon & Co.) 852,840 share?

Tri-Boro Finance

of 6%

stock (par $10) of Arkansas Natural
Gas Corp,
In lieu thereof, preferred stockholders may
elect to take cash.
Proceeds—To retire said preferred
stock. Underwriter — To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. IDC.;
The First Boston Corp. and Lazard Freres & Co. (joint¬
preferred

(formerly
American-Canadian Uranium Co., Ltd.).

stockholders—underwritten

Consolidated Gas,
of Baltimore

Stocks

EDT)

EDT)

lative

4, 1953

Inc.;

June 8,

Equip.Tr. Ctfs.

p.m.

to

(Bids

Equip. Tr. Ctfs.

Missouri Pacific RR..
Potomac

(6/2)

shares

common

Co

(Bids 11

$3,930,000

p.m.

Pfd. & Com.

Arkansas Power & Light Co

(Offering

Hammacher, Schlemmer & Co. Inc
(Bids

Brothers
(Offering

Decca

noon

472,596

June 5,

Edgar

shares

May 27, 1953
(Bids

shares

General Public Utilities Corp._u
—Common
(Offering to stockholders—no underwriting)

(Offering

$162,222,000

Productions, Inc

(Mortimer

Co.

Beryllium Corp.

$25,000,000

Government Employees Corp
Jewell

&

Lehman

-.Debentures

EDT)

a.m.

Read

D.

Consolidated Natural Gas Co
(Bids

Corp., Shreveport, La.

debentures in exchange for each share

of

debentures

Common

125,000

Financial Corp

(Dillon,

$10,000,000

May 26, 1953
Aviation Equipment Corp.
(Union

Co.)

stockholders—undewritten

to

June

C. I. T.

—Common

$2,000,000

Potomac Electric Power Co
(Bids

&

600,000 pfd. &

May 25, 1953
noon

Arkansas Fuel Oil

May 1 filed $23,000,000 of sinking fund debentures aue
1973 to be offered at rate of $10.60 principal amount

Athabasca Uranium Mines, Ltd.

Arkansas Louisiana Gas Co.—
(Bids

1953

Public Service Co. of Indiana, Inc
(Common

•

Office—47 Fulton St., Newark

Armstrong Rubber Co. *
March 31 filed $4,000,000 of 5% convertible subordinated!

American Automobile Insurance Co

$300,000

Underwriter—None.

#

May 22, 1953
Credit
<E.

working capital.

N. J.

St., New York, N. Y.

NEW ISSUE CALENDAR
Financial

—For

ISSUE

May

American National Finance Co.

May

REVISED

1983.

For

working capital. Business—To assemble and deal in
hydraulic pistons and piston parts. Office—Haverford

PREVIOUS

ITEMS

•

art & Co.

★ American Machinery Corp., Orlando, Fla.
May 18 (letter of notification) $200,000 of 5% convertible
000

ADDITIONS

SINCE

Registration

who is the selling stockholder.

Co., New York. Underwriter—None.

Acryvin Corp. of America, Inc.
May 7 (letter of notification) 3,000 shares of
stock.

* INDICATES

-

«-•

«** *

RR.

l

_

Equip. Trust Ctfs.

Private IVires to all

offices

Chicago

Cleveland

54

'

I
t

21, 1953

The Commercial and Financial Chronicle... Thursday, May

54

(2238)

Continued from page

Toronto, Canada
1,000,000 shares of common stock (par $1).
Price—Approximately 64.48 cents per share. Proceeds
Bristol Oils Ltd.,

Sept. 25 filed

Under¬

and for corporate purposes.
named by amendment.

acquire leases

To

writer—None. To be

Inc., Detroit, Mich.
notification) 6,475 shares of common
$1). Price—$6 per share. Proceeds—To un¬
Watling, Lerchen & Co., Detroit, Mich.
& Perkins,

Brooks

April 22 (letter of
stock

(par
derwriter,

Pa. (5/25)
of 20-year 5% re¬
funding mortgage bonds dated July 1, 1953. Price
At
par (in denominations of $100 and $500). Proceeds-To
redeem first mortgage bonds, to repay bills payable and
for capital improvements. Underwriter—Graham & Co.,
Sunday's Water Co., Linesville,
May 8 (letter of notification) $35,000

Pittsburgh, Pa.

Tex.

.

5%% convertible sink¬

$1,750,000 of 10-year

offered
rate of
$100 of bonds for each 28 shares of stock held (for a
14-day standby). Certain stockholders have waived their
rights. Price—At par. Proceeds—To repay $1,014,500 of
ing fund mortgage bonds due Nov. 1, 1962, to be
for subscription by common stockholders at the

drilling expenses and working
capital. Underwriters—Dallas Rupe & Son, Dallas, Tex.;
Carl M. Loeb, Rhoades & Co., New York; and Straus,
outstanding notes and for

Blosser & McDowell, Chicago,

111.

Offering—Postponed.

if Cal-Ore Veneer, Inc., Portland, Ore.
May 13 (letter of notification) 400 shares of common
stock (par $100) and $80,000 of 5-year 6% unsecured
debenture bonds to be offered in units of a $1,600 bond
and four shares of stock. Price—$2,000 per unit.
Pro*

Business—
peeler plant in Crescent City,

ceeds—For

expansion and working capital.

Operates

green

a

veneer

Office—800 Pacific Bldg.,

Calif.

capital stock (par 50
cents), to be offered for subscription by stockholders of
record June 9 at rate of one new share for each 3JA
shares held; rights to expire on June 25. Price—To be
supplied by amendment. Proceeds—For working capi¬
tal, etc. Underwriters—Reynolds & Co. and Laurence
M. Marks & Co., both of New York.
if Derby Gas & tlectric Corp.
47,039 shares of common stock (no par),
to be offered for subscription by common stockholders
on a
basis of one new share for each six shares held;
unsubscribed stock to be offered to officers and em¬
May 14 filed

Price—To be supplied by amendment. Proceeds
—To repay bank loans and for general corporate pur¬
poses.
Underwriter—To be named later. White, Weld
& Co. underwrote common stock financing in 1951; Allen

ing to Crescent City, Calif.).

Portland 4, Ore. (mov¬

Underwriter—None.

Carolina Casualty Insurance

Co., Burlington, N. C.

(letter of notification) 103,506 shares of class
non-voting common stock (par $1) being offered to
stockholders of record April 17 at rate of one new share

5,000 unsubscribed shares to be offered to certain em¬
ployees. Stockholders have waived rights to purchase
58,600 shares.
Price—To stockholders and employees,
$7.45 per share; and to public, $8.50 per share. Proceeds
—To repay $279,500 term loan debt and for working

rights to expire July 17. Price
Proceeds—To increase capital and sur¬

for each five shares held;

—$2

share.

per

plus.

Morehead St., Burlington, N. C. Un¬

Office—262

derwriter—None.

Underwriter—D. A. Lomasney &r Co.. New York.

Electronic Associates,

Inc.

$15 per share. Proceeds — For'
working capital. Office — Long Branch Ave., Long
Branch, N. J. Underwriter—None.
expire July 1. Price

—

Inc., St. Paul, Minn.

Fairway Foods,

.

May 8 filed $1,600,000 first mortgage lien 4J/2% bonds
to mature $40,000 annually from 1955 to 1994, inclusive.
Price—At 100% of principal amount. Proceeds—To con¬
struct
•

new

Underwriter—None.

warehouse.

Federal Loan Co. of Pittsfield,

Inc.

May 8 (letter of notification) 19,638 shares of 7% cumu¬
Central

City Milling & Mining Corp.
March 4 (letter of notification) 1,800,000 shares of com¬
mon stocks.
Price—At par (10 cents per share). Proceeds
—For

mining operations. Underwriter—R. L. Hughes &
Co., Denver, Colo.

if Cheney Brothers, Manchester, Conn.
May 8 (letter of notification) 23,872 shares of common
stock (no par) to be offered for subscription by common
stockholders at rate of
held.
ital.

one

new

share for each ten

now

share. Proceeds—For working cap¬
Office—Hartford Road, Manchester, Conn. Business
Price—$11

per

—Manufactures and sells textiles. Underwriter—None.

Chicago Bridge & Iron Co.
May 11 (letter of notification) 6,112 shares of common
stock (par $20) to be offered for subscription of em¬
ployees. Price—$49.08 per share. Proceeds—For general
corporate
cago,

Offices—1305

purposes.

West

105th

St., Chi¬

111. Underwriter—None.

if C.l.T. Financial Corp., New York (6/4)
May 15 filed $60,000,000 of debentures.
Price—To be
supplied by amendment. Proceeds—For working capital.

Underwriters—Dillon, Read & Co. Inc.; Kuhn, Loeb &
Co.; and Lehman Brothers; all of New York.
Code Products Corp., Philadelphia, Pa.
April 20 filed (amendment) 500,000 shares of 6% cu¬
mulative preferred stock (par $1) and 250,000 shares of
stock

common

shares
stock.

tal.

of

(no

par)

preferred

Price—$3

per

to

stock

unit.

Underwriter—Frank

be offered in
and

units of two

share

one

of

common

Proceeds—For working capi¬
M. Cryan & Co., New York.

Statement effective about Feb. 13.
•

Consolidated Gas,
Of Baltimore

Electric Light & Power Co.
(6/8)

May 8 filed $25,000,000 of first refunding mortgage
bonds, series Y, due June 1, 1983. Proceeds—To finance
expansion

program.

Underwriters

—

To

be

determined

by competitive bidding. Probable bidders: Halsey, Stu¬
art & Co. Inc.; The First Boston
Corp. and White, Weld
& Co. (jointly); Harriman
Ripley & Co. Inc. and Alex.
Brown & Sons (jointly).
Bids—Expected to be received
up to noon
(EDT) on June 8 at company's office in
Baltimore, Md.
Consolidated Natural Gas Co.

(5/26)

convertible

lative

(par $11) and 19,638
being offered first to
holders of participating preferred stock of record May
15, in units of one preferred and one common share;
rights to expire on June 10. Price—$15 per unit ($15.50
to public). Proceeds—For working capital. Underwriters
—Simon, Strauss & Himme, New York; William N. Pope,
shares of

preferred stock
stock

common

(par $1)

Inc.,

Syracuse, N,, YT. and Chace,
Winslow, Inc., Boston, Mass.

Corp., New York (5/22)
May 8 (letter of notification) 150,000 shares of 7% cumu¬
lative preferred stock. Price — At par ($2 per share).
—

Fountain &

For working capital.
Underwriter
Co., Inc., New York, N. Y.

Wash.

Underwriter—R. L. Emacio &

•

General

Contract Corp.

April 17 filed 500,000 shares of 6% preferred stock (par
$10) being offered for subscription by common stock¬
holders at rate of

held

one

share for each 3.3

stock

(with

adjustment).

cash

a

ing, to
—G.

repay

H.

General Dynamics Corp. (6/2)
May 12 filed 250,000 shares of common stock (par $3).
Price—To be supplied by amendment. Proceeds—To re¬
pay bank loans made to acquire a block of 400,000 shares
of Consolidated Vultee Aircraft
Corp.
Underwriter—
Lehman Brothers, New York, to handle U. S. sales of
shares, while Greenshields & Co., Inc., will handle Cana¬
dian distribution of a portion of the offering.

if General Motors Acceptance Corp. (6/10)
May 20 filed $150,000,000 of five-year debentures due
July 1, 1958. Price —To be supplied by amendment.
Proceeds—For working
capital.
Underwriter—Morgan
Stanley & Co., New York.
General

Public

be offered for
record

11:30

a.m.

(EDT)

on

be received

May 26 at 30 Rockefeller

to
Plaza*,
up

New York 20, N. Y.

Cooperative Grange League

Federation

Exchange, Inc.
'-3

£eb;
stock

file! 50'000 shares of 4% cumulative

preferred
700,000 shares of common stock
Price—At par. Proceeds—For
working capital
Business—Production of dairy and
poultry feeds. Office
—Ithaca, N. Y. Underwriter—None.
(par

$100)

and

(par $5).




June 2

Utilities Corp.

rate of

(6/4)

common

subscription by
at the

tible

debentures

common

one

new

(par $5) to
stockholders of

share for each

15

held; rights to expire on June 24. Price—To be
supplied by amendment. Proceeds—To reduce bank loans
in subsidiaries. Underwriter—None.

Merrill

Lynch, Pierce, Fenner & Beane will act
ing agent.

class A

—

Bldg., Portland

Underwriter

as

clear¬

Gray Manufacturing Co., Hartford, Conn.

—

Ferris

record

(letter of notification)

April 28

on

&

Co.,

by amendment. Proceeds — For general corporate pur¬
poses. Underwriter—None.
if Greater Muskegon Industrial Fund, Inc.
May 12 (letter of notification) $250,000 of 3% debentures.
Price—At par

(in denominations of $50, $100, $500 and

Proceeds—To make a loan to Continental Avia¬
tion & Engineering Corp. Business—Non-profit organi¬
zation which makes loans to encourage industries to lo¬

$1,000).

ton Avenue,

common
one

new

Muskegon, Mich.

Gulf Power Co.

Office—8-12 West Wal¬
Underwriter—None. ;

(6/9)

May 8 filed $7,000,000 first mortgage bonds due 1983.
Proceeds—To repay $4,000,000 of bank loans and for new
construction. Underwriters—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Kuhn, Loeb & Co.; The First Boston Corp.;
Kidder, Peabody & Co. and White, Weld & Co. (jointly);
Merrill Lynch, Pierce, Fenner & Beane, Salomon Bros.
& Hutzler and Drexel & Co. (jointly); Union Securities

Corp.; Equitable Securities Corp.; Lehman Brothers.
Bids—Tentatively expected to be received up to 11 a.m.
(EDT) on June 9.

Hydrocap Eastern, Inc., Philadelphia, Pa.
common stock, of which
underwriters have agreed to purchase 100,000 shares for

April 27 filed 500,000 shares of
public sale and to

"best efforts'!, .to

use

sell remaining
share)/ Proceeds—To es¬

shares.

Price—At par

tablish

assembly plant and acquire

($1

derwriter—Barham &

per

raw

materials. Un¬

Co., Coral Gables, Fla.

Interstate Fire &

Casualty Co., Bloomington, III.
28,000 shares of capital stock (par $10)
record
April 1 at the rate of 13/11 shares for each share held.
Price—$16.50 per share. Proceeds—To increase capital
March

to be

and

filed

26

offered for subscription by stockholders of

surplus.

Underwriter—None.

Iowa Public Service Co.

(6/2)

filed $7,500,000 of first mortgage bonds due
June 1, 1983." Proceeds — To repay $1,000,000 bank loans
May
and

1

for

construction.

new

Underwriter—To

be

deter¬

mined

by competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; First Boston Corp.; Kuhn, Loeb
&

Co.; Kidder, Peabody & Co. and Blyth & Co., Inc.
(jointly); Lehman Brothers, Bear, Stearns & Co. ;and
L. F. Rothschild & Co. (jointly); Union Securities Corp.
and Salomon Bros. & Hutzler (jointly).
Bids—Expected
to be received up to 11 a.m.
(EDT) on June 2 at 61
Broadway, New York 6, N. Y.
Israel

Inc., New York

Investors,

April 24 filed 86,960 shares of common stock
to be

sold

in units of

unit payable in
Proceeds—To

cash

aid

(no par)

shares each. Price—$1,150 per

10

than $1,000 in State of
bonds and the balance in cash.

or no more

economic development of Israel.

derwriter—None.

Un¬

'

if Jewell Oil & Gas Corp., Los Angeles,
Calif. (5/26)
May 11 (letter of notification) 299,975 shares of common
stock

(par one cent).

Price—$1 per share.

For

drilling expenses and working capital.
—East Coast Securities Corp., New York.

Proceeds—
Underwriter

Lrne S^ar Gas Co.

April 22 filed 183,300 shares of 43A% cumul. convertible
preferred; stock being offered to common stockholders
of record May 13 at the rate of one preferred share for
each 30 shares of common stock held; rights to expire

Price—At par ($100 per share). Proceeds-^-For
working capital and for additions and improvements to
property,: Underwriter

common

stockholders of
share for each

—

The First Boston Corp., New

York.
Lone Star

Sulphur Corp., Wilmington, Del.

May 3 filed 600,000 shares of common stock (par 5 cents)
to be offered for subscription bv common stockholders of
record May 8 on a share-for-share basis "as a specula¬
Price—To be supplied by amendment.

expansion program.

Manheim Water Co.,

May

5
to

Proceeds—

Underwriter—None.
Manheim, Pa.

(letter of notification) 2,000 shares of common
be offered for subscription by common stock¬
of record

April 14,

on

basis of two-thirds of a

held; rights to expire on May 26.
Price—At par
($25 per share). Proceeds—To pa/, in
n^rt, cost of new water filtration plant. Underwriter—
share

(5/26)

12,000 shares of

the basis of

Price—To be supplied

rights to expire about June 17.

holders

Government Employees Corp.

(5/28)

May 1 filed 55,313 shares of capital stock (par $5) to be
offered for subscription by stockholders on the
basis
of one new share for each four shares held as of May 28;

tion."

Washington, D. C.

(par $5) to be offered to

(moving to Grants Pass, Ore.).

4, Ore.

Underwriter—None.

stock

stock

Otis, Inc., New Yorlj.

$2,000 bond and five shares of stock. Price—$2,500 per
unit.
Proceeds
For expansion.
Office — 800 Pacific

ceeds— To

May 1

(par

-A-Grants Pass Plywood Inc., Portland, Ore.
May 13 (letter of notification) $100,000 of five-year 6%
unsecured registered debenture bonds and 500 shares of
common
stock (par $100) to be offered in units of a

For

debt.

stock

Underwriter—Gearhart &

if Goldenberg Co., Washington, D. C.
May 12 (letter of notification) 35,000 shares of class A
common stock
(par $1). Price—$3.37y2 per share. Pro¬
retire

due

March, 1973, and 1,565,000 shares
10 cents). Price—Par for deben¬
tures and $1 per share for stock. Proceeds — For new
construction. Business — Hotel and land development.
of

May 27.

stock

shares

and for investments

Co., Ltd., Nassau
first mortgage conver¬

Feb. 3 filed $1,350,000 20-year 6%

Israel Independence Issue

Co., New York and St. Louis.

their

Jfckson & Curtis (jointly). Bids—To

per

loans and for working capital. Underwriter

Walker &

purchase securities of operating subsidiaries

$49,000,000 for 1953. Underwriters—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Morgan
Stanley & Co. and The First Boston
Corp. (jointly),-" White, Weld & Co. and Paine,
Webber,

Price—$11

share.
preferred shares outstand¬

Proceeds—To redeem series A

ceeds—To

expenditures, estimated at

shares

common

of May 4, right to expire May 27.
Unsubscribed
in exchange for series A preferred

as

shares to be offered

May 6 filed 568,665 shares of

construction

Co., Inc., Spokane,

Wash.

April 17 filed $40,000,000 of debentures due 1978 (subse¬
quently reduced to $25,000,000 principal amount). Pro¬
finance

E. J.

—

if Fischer's Flavor Seal, Inc., Spokane, Wash.
May 19 (letter of notification) 4,000 shares of common
stock.
Price—At par ($10 per share).
Proceeds—For
working capital. Business—Makes a formula for pro¬
cessing fresh meat. Office—726 Paulsen Bldg., Spokane,

to

.

Whiteside, West , &

Financial Credit

Proceeds

Proceeds—For working

cate in Greater Muskegon area.

May 11 (letter of notification) 10,000 shares of common
stock (par $1) to be offered for subscription by stock¬
holders of record June 1 on a l-for-10 basis; rights to

April 29
B

1949.

if Edgar Brothers Co., Metuchen, N. J. (6/5)
May 15 filed 100,000 shares of common stock (par $1)
to be offered for subscription by stockholders at rate of
two-thirds of a share for each share held; not more than

capital.

tion warrants
share.

Grand Bahama

if Decca Records, Inc. (6/9)
May 19 filed 318,625 shares of

& Co. in

held; rights to expire on June 24. Subscrip¬
are to be issued on May 26.
Price—$15 per
capital. Office—Govern¬
ment Employees Insurance Bldg., 14th and L Sts., N. W»,
Washington, D. C. Underwriter—None.

five shares

Leaseholds, Inc., N. Y.

May 1 (letter of notification) 300,000 shares of common
stock (par 50 cents). Price—$1 per share. Proceeds—For
working capital. Office—535 Fifth Ave., New York, N. Y.
Underwriter—Weber, Millican Co., New York.

ployees.

Byrd Oil Corp., Dallas,
Oct. 22 filed

Oil

Dakota-Montana

53

None.

for

each

share

Volume 177

Number 5222... The Commercial and Financial Chronicle

Marathon

Corp., Menasha, Wis.
614,872 shares of common stock (par
$6.25) being offered in exchange for stock of Northern
Paper Mills on the basis of six shares for each share of
March

Northern

stock

common

of Northern preferred
22.

Salomon

and

five

stock.

shares for each

Offer will expire

White,

May

Underwriter—None.

.McCarthy
June

(Glenn), Inc. '
10,000,000 shares of

12 filed

(par 25

Price—$2 per share. Proceeds—For drilling of
exploratory wells, acquisition of leases and for general
corporate purposes. Underwriter—B. V. Christie & Co.,
Dealer Relations Representative—George
Searight, 50 Broadway, New York, N. Y. Telephone
WHitehall 3-2181. Offering—Date indefinite.

Keppler & Co., Inc., New York.

1973.

(par $1).

ness—Manufacture

sale

and

of

ceived

stock
10

cents)

offered

be

to

class of stock.

in

Price—$6

units

of

unit.

per

share

one

of

^

of

Fluorspar.

amendment..

.

Underwriter
.

v

."

.

be

To

by

it Michigan Consolidated Gas Co.

(6/15)

May 12 (letter of notification) 52,867 shares of
$5.50

per

retire 6% convertible debentures.

share.

*

i

Mount Holly

(N. J.)

(6/3)

Inc.

filed 600,000 shares of cumulative preferred
(par $25) and 472,596 shares of common stock (no

Co.,

writers—Blyth &

be supplied by

June 17. Price—To

on

construction

Proceeds—For

amendment.

York

Inc., New

Under¬

costs.

and San Fran¬

cisco.
Rochester Gas

—To

S.

Natural

Gas

(6/2)

Israel

Co.,

To

of class B

share.

Corp., New York
common

Proceeds

For

—

(no par) to be offered for subscription by com¬
stockholders of record April 29 at rate of one new
share for each share:, held
(with an oversubscription
mon

of
Under¬

shares of 4%%

preferred stock (par $100) to be offered
exchange for all the outstanding stock of Scranton

privilege); rights to expire May 29. Price—$22 per share.
Proceeds—To repay bank loans, etc. and for capital ad¬

Electric Co.

ditions. Underwriter—None.

Jan.

if Multnomah Plywood Corp., Portland, Ore.
/
May 13 (letter of notification) $262,500 of 10-year 2%%

Underwriter—None.

Peruvian Oil

-

16 filed

Inc.

common

share.

(par $1)

(amended April 24 to

Underwriter

v

cagb, HI. Offering—Expected early in June.

^ ;

Savage Industries, Inc., Phoenix, Ariz.
May 11 (letter of notification) 19,100 shares of cumula¬
tive convertible preferred stock (par $1). Price—$10 per
share. Proceeds—To repay debt and for operating cap¬
ital. Office—415 S. Seventh St., Phoenix, Ariz. Business
—Welding equipment distributor. Underwriters—Hanna*

ford

•

(5/25)
stock

Proceeds

Saint Anne's Oil Production Co.

San

Concessions Co.,

9,000,000 shares of

per

April 23 filed 270,000 shares of common stock (par $1).
Price—$5 per share.
Proceeds—To acquire stock of
Neb-Tex Oil Co., to pay loans and for working capital.
Office—Northwood, Iowa. Underwriter—Sills, Fairman
& Harris and H. M. Byllesby & Co., Inc., both of Chi-

Pennant Drilling

in

$100,000 bank loan an$ for working capital.

development

industry, etc., and for working capital.

Pennsylvania Power. & Light Co.
1 filed 743,496 shares of common stock (no par),
21,752 shares of 4.40% preferred stock (par $100), 53,248
shares of 3.35% preferred stock (par $100) and 39,936

'stock

share for each two

new

Price—$20

—None.

stock (par $25).

May
common

June 22.

one

on

Business—Manufacture of plastic materials.

Co., Inc., Denver, Colo.
(letter of notification) 42,507 shares of common
(par $1). Price—$1.30 per share. Proceeds—To
Morris Replfh/ the selling stockholder. ^Underwriter—
Peters, Writer & Christensen, Inc., Denver, Colo.

•

at rate of

stock

shares held

stock
'

New York.

Inc.,

Rogers Corp., Manchester, Conn. (6/22)
May 11 (letter of notification) 10,909 shares of class B
common stock to be offered for subscription by holders

writer—None.

common

Underwriter—The

Underwriter—Mortimer B. Burnside &

and radio shows.

(jointly). Bids—Expected
(EDT) on June 2 at 90 Broad

March 6 filed 100,000 shares of

per

construction.

new

—To retire

Palestine Economic

Price—-$28

Proceeds—To repay

supplied by amendment.

if Rockhill Productions, Inc. (5/26)
May 12 (letter of notification) 149,000 shares of common
stock (par 10 cents).
Price—$2 per share. Proceeds—
For working capital.
Office—18 East 50th Street, New
York 22, N. Y. Business—Producer of package television

Ripley & Co., Inc.
a.m.

be

First Boston Corp., New York.

Underwriters—To be determined by
Probable bidders: Stone & Webster

to 11

(5/28)

28 at the rate of one new share for each
Rights will expire on June 12. Price

May

bank loans and for

Underwriter—None.

Co.

& Electric Corp.

shares held.

seven

St., New York, N. Y.

•

April 14 (letter of notification) 5,000 shares of

York; and Johnston, Lemon &

New

13

rights to expire

subscription warrants for 40 shares. Price—
Proceeds—For drilling of additional wells

to be received up

Business—Retail store.

Water Co-

Inc.,

par), the latter to be offered for subscription by com¬
mon stockholders
of record June 2 on a l-for-8 basis;

March 23

—

Co.,

Public Service Co. of Indiana,

stock

Corp.; Shields & Co.; Lehman Brothers and

Harriman

-

( Underwriter—Fulton, Reid & Co., Cleveland, Ohio.

unit.

per

.Securities

h

Proceeds

&

May

filed

struction program.

.

.

21

competitive bidding.

St., Wilmington, Del. Underwriter—W. C. Doeh-

—

Read

common stock (par $7.50).
Proceeds—To repay, in part, bank loans aggregating $6,000,000 incurred in connection with the company's con¬

ceeds—To acquire additional properties. Office—927-929

(par $1)..Price

supplied by amendment. Proceeds—To repay bank
loans and for new construction. Underwriters—Dillon,

early in June.

Oklahoma

&

^ier Co., Jersey Citjf,, N. J.^
-r JV
* J
!! '*
ir Moore (William S.), inc., Newark, O.
V

27; rights to expire "On June 10. Price—

To be

May 7 filed 235,000 shares of

Refining Co. /
;
Nov. 10 (letter of notification) 400,000 shares of common
stock (par five cents). Price—60 cents per share. Pro¬

stock

loans and for construc¬

Underwriters—To be determined by com¬
Probable bidders: Halsey, Stuart & Co.

for other corporate purposes.

—

Market

one

of record May

Noryn Mines Ltd., Hull, Quebec, Canada
April 23 filed 500,000 shares of common stock (par $1).
Price—50 cents per share. Proceeds—To
repay loans and

May 15 filed $20,000,000 of first mortgage bonds due 1978,
sale of bonds, plus proceeds from sale
of 215,000.shares of common stock (par $14) to American
Natural Gas Co., parent, for $3,010,000, to be used to
repay bank loans and for construction program..; Under¬
writers
To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld
& Co. and Lehman Brothers (jointly); Smith, Barney &
Co. and Blyth & Co., Inc. (jointly); Harriman Ripley &
Co., Inc., and Union Securities Corp. (jointly)! Bids—
Expected to be received un to 10:30 a.m. (EST) on June
15 at 415 Clifford St., Detroit, Mich.
;/
■'
Mid-Gulf Oil

due

and to purchase producing wells.
Underwriter—M.
Gerber, Inc., New York. Financing may be revised.

\

Proceeds—From

.

subscription by common stockholders
new share for each five shares held

for

the basis of

record

$52

;.. /

•

(5/27)

of stock and

each

supplied

Co.

Power

May 8 filed 175.000 shares of common stock (no par) to
be offered for subscription by common stockholders of

Proceeds—For work¬

—

be offered

—

ing capital. Business—Purchase, processing, refining and
sale

Electric

Ltd., Canada
1,000,000 shares of capital stock (par 200
Canadian)
and
subscription warrants for 600,000
shares, of which the stock and subscription warrants for
400,000 shares are to be offered in units of 100 shares
Nov.

Minerals Corp., Granite City,

III,
3 filed 113,000 shares of 6% cumulative preferrec
(par $5) and 113,000 shares of common stock (pai

Nov.

Potomac

April 30 filed 852,840 shares of common stock (par $10)

Northlands Oils

—Indefinitely postponed.
Mex-American

debentures

Inc.; Blyth & Co., Inc.; The First Boston Corp. and Kid¬
der, Peabody & Co. (jointly). Bids—Expected to be re¬

conveyors

(jointly); Dillon, Read &

office.

•

fund

petitive bidding.

in industrial
and commercial applications. Office—Detroit, Mich. Un¬
derwriter—Kidder, Peabody & Co., New York. Offering
r

Proceeds—To repay bank

tion program.

Price—To be supplied by amendment. Proceeds—To pur¬
chase common stock of The Louden Machinery Co. Busi¬

Blyth & Co. Inc.

Inc.; Harriman Ripley & Co., Inc. Bids—To be re¬
ceived up to 11 a.m. (EDT) on May 25 at company's

Co., Washington, D. C.

it Northern Natural Gas Co.
May 7 filed $40,000,000 sinking

Handling Systems, Inc.

and

55

Co.

on

(N. Y.)

—

A.

Co.

&

to

Co., Inc.

April 10 filed 500,000 shares of common stock (par 10
cents). Price — $1 per share. Proceeds
To purchase
equipment and for working capital. Underwriter—R. A.

Houston, Tex.

March 31 filed 120,000 shares of common stock

Co.

North American Peat Moss

cents).

Mechanical

&

&

June 9.

on

.

stock

common

Weld

and

share

on

Bros.

Hutzler; Union Securities Corp. and
(jointly); The First Boston Corp.
Kidder, Peabody & Co. (jointly); Carl M. Loeb,
Rhoades & Co.; Equitable Securities
Corp.; Kuhn, Loeb
& Co.; Lehman Brothers and
Goldman, Sachs & Co.
(jointly); Merrill Lynch, Pierce, Fenner & Beane. Bids—
Tentatively expected to be received up to 11 a.m. (EDT)

filed

20

(2239)

& Talbot and

Pacific Coast

Securities Co.,

both of

stock

(par 25

Francisco, Calif.

Schlafly Nolan Oil Co., Inc.
150,000 shares of

March 25 filed

common

1,000,000 shares). Price—$2 per
share. Proceeds—For general corporate purposes. Busi¬

cents). Price—$4 per share. Proceeds—To purchase and

ness—Plans to produce and sell petroleum and its prod¬
ucts from lands to be held under concession from the

prospect

producing

Underwriter—None.

Peruvian

writer

£ Mutual Telephone Co., Honolulu

Co., New York.

\ debentures.
tal..

Price—At par. Proceeds—For working capi¬
S. W. Harbor Drive, Portland, Ore.

Office—1500

May 18 filed 200,000 shares of

(6/8)

fered for subscription by common stockholders of record
June 1, 1953. Price—At par ($10 per share). Proceeds—

April 10 filed

For expansion costs.

and

then

its

current

Price—At

program.

market.

'

•

National

May 11

cumulative
of

stock

100,000 shares of common stock (no par)
subscription by employees of company

market

Price—From

85%

to

price. Proceeds—For

95%

of

the

construction

Underwriter—None.

Phillips Petroleum Co.

oil

for

and

gas

properties.
L.

—

and

to

Office—Mt.

H. Rothchild &

develop and
Vernon. 111.

operate

Under¬

Co., New York. Offering

—

(&.

it Selected American Shares, Inc., Chicago, III.
May 18 filed 350,000 shares of common stock. Price—At
Proceeds—For investment.

market.

Selevision, Inc. (Del.)
May 14 (letter of notification)
vertible class A stock (par $1).

Underwriter—None.

235,000 shares of con¬
Price—$1.25 per share.

Proceeds—To

(5/26)

common

(par $100) and 1,400 shares
par) to be sold in units of one

(no

(6/2)

ing fund debentures due June 1, 1983 (convertible into
stock for
10 years), to be offered for sub¬
scription by common stockholders at rate of $100 of

non-

preferred stock

common

&

May 4 filed approximately $162,098,500 of 30-year sink¬

Credit

Card, Inc., Portland, Ore.
(letter of notification) 1,400 shares of 6%

Phillips

leaseholdes, royalties and producing properties, to

Indefinitely postponed.

subsidiaries.

it Nation-Wide Securities Co., Inc., N. Y.
May 14 filed 200,000 shares of capital stock.
investment.

G.

to be offered for

Underwriter—None.

Proceeds—For

Underwriter—B.

Philadelphia Electric Co.

stock to be of¬

common

Government.

sell

establish, equip and operate ten Selevision
Underwriter—Whitney-»
Phoenix Co., Inc., New York.
auction offices for three months.

Skiatron Electronics & Television Corp.
May 13 (letter of notification) 10,000 shares of common
stock (par 10 cents).
Price—At market (about $2 to

share of each class of stock.
ceeds

Price—$101 per unit. Pro¬
working capital. Business—Credit service.
Building, Portland 4, Ore. Underwriter—

debentures for each nine shares of stock held of record

May 26; rights to expire on June 9. Price—To be supplied
by amendment. Proceeds—To repay approximately $113,-

None.

000,000 of bank debt and for capital expenditures and

"Subscriber-Vision."

★ Naval Officers Realty Corp.. San Francisco, Calif.
May 18 (letter of notification) 7,162 shares of common

other corporate purposes. Underwriter—The First Boston

Philadelphia, Pa.

stock

ir Plywood & Veneer Sales Co.,

—

For

Office—Times

(no par), under

share.

recission offer.

a

Price—$25

Corp., New York.

per

Business—Operates income producing real estate.
Pacific Bldg., San Francisco, Calif.
Under¬

May 13

Office—233

common

for each

1G shares held

lege); rights to expire
are

by

(with
on

expected to be mailed
company

gram.

on

the basis of

on

June 8.

or
on

one

new

shaTre

oversubscription privi¬
about June 25. Warrants

an

June

11.

Price—To

Proceeds—For

be set

expansion pro¬

Underwriters—To be determined

by competitive
Blyth & Co., Inc., Lehman
Brothers and Bear, Stearns
& Co.
(jointly); Merrill
Lynch Pierce, Fenner & Beane, Kidder, Peabody & Co.
and White, Weld & Co.
(jointly). Bids—To be received

bidding.

up

to

Probable bidders:

noon

(EDT)

on

June 10 at 441 Stuart St., Boston

16, Mass.

Light Co. (6/9)
May 7 filed $5,500,000 of first mortgage bonds due 1983.
Proceeds—To repay bank loans and for new construc¬
Underwriters—To

bidding.

one

ceeds—For
'

100 shares of

(par $100). to be offered in units of a $400
share of stock.

Price—500 per unit.

Pro¬

working capital.

Office—800 Pacific Bldg.,
(moving to „Grants Pass,, Ore.). Under-

Portland, - Ore.
writer—None.*'

• Point of View, <lnc., Brooklyn,

N. Y.
May 14 (letter of notification) 200,000 shares of class A
stock.
Price—At par (25 cents per share). Proceeds—
To produce parking meter frames, for additional ma¬
chinery and working capital. Business — Manufactures
and sells parking meters.
Office—95 Atlantic Avenue,
Brooklyn 1, N. Y.
•

Potomac

Underwriter—None.

Electric Power Co.

repay

bank

loans.

Underwriters—To

be

Probable bidders:




determined

by

competitive

be

Halsey, Stuart & Co. Inc.;

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Lehman Brothers, Stone &
Webster Securities
Corp. and Union Securities Corp.

(jointly); First Boston
Merrill

Corp.; Kidder, Peabody & Co.,
Lynch, Pierce; Fenner & Beane, White, Weld &

Co. and Salomon Bros. & Hutzler

—

To

(jointly); Kuhn, Loeb

net company $1.90 per share.
the public demonstration of
Underwriter—Wright, Wood & Co.,

to

carry

on

ir Small Investors Real Estate Plan, Inc.
May 14 (letter of notification) $35,000 of units of coownership (in denominations of $500 each). Price—At
principal amount. Proceeds—To acquire title to apart¬
ment house
157

West

and

42nd

to

pay

Office—
Underwriter—

certain expenses, etc.

Street, New York, N. Y.

None.

Soil-Tone
27

Corp., Plymouth. N. C. '

(letter of

notificatiori)

$150,d(J0 of 6%
.

con¬

interest debentures due 1968 (convertible at
time at rate of 500 shares of common stock for each

tingent
any

$1,000 debenture); and 150,000 shares of common stock
(par $1). Price—At par or principal amount. Proceeds—
enlarge plant. Underwriters—McGinnis & Co., New

To

York, and Stein Bros. & Boyce, Baltimore, Md.
Southern

(5/25)

April 30 filed $10,000,000 first mortgage bonds due 1988.
Proceeds—To

share),

per

Proceeds

March

determined

New Jersey Power &

tion.

stock

bond and

New

holders of record June 11

$20,000 of five-year 6%

unsecured registered debenture bonds and

writer—None.

England Electric System (6/10)
May 4 filed 828,516 additional shares of common stock:
(par $1) to be offered for subscription by common stock¬

(letter of notification)

Portland, Ore.

$2,371/2

Bell Telephone &

Telegraph Co.

April 9 filed $30,000,000 of 24-year debentures due May
1. 1977. Proceeds—To repay advances from America® <.
Telephone & Telegraph Co., the parent.

Underwriters—

competitive bidding. Probable
bidders: Halsey, Stuart &"'Co. Inc.; Morgan Stanley &
Co.; Kuhn, Loeb & Co.; The First Boston Corp. BidsReceived on May 5 but rejected.
Continued on vaae 56
To

be

determined

by

The Commercial and
56

Continued from page

Southern Natural Gas

•

Co., Denver, Colo.

Co.

.

.

20 filed $34,220,100 of 4%% convertible sinking
fund debentures due 1973 being offered for subscription

stockholders of record May 20 at rate of $100
each 10 shares of stock held; rights to
expire on June 8. Price—At par (flat). Proceeds—To re¬
pay bank loans and for new construction. Underwriters
—Halsey, Stuart & Co. Inc.

Proceeds—To pay debt
307

14,000 memberships in the 'Employees
Purchase Plan of Sun Oil Co. and Subsidiaries"

April 27 filed
Stock
and

of common stock (no par) to be
for- sale to trustees of the plan during July,

122,700

reserved

shares

additional shares of common stock "for
possible public sale by selling stockholders during the
period of July 1, 1953 to June 30, 1954." Underwriter—
1953; also 139,762

None.

Production Corp.

of common stock (par $5)
subscription by common stockholders
of Texas Eastern Transmission Corp. (parent) of record
May 8, 1953 at rate of one share of Production common
for each three shares of Transmission common stock
held; rights to expire on May 27. Price—$10 per share.
April 24 filed 1,833,069 shares

California

by parent company.
Proceeds—To repay a $10,000,000 loan obtained or to be
obtained to finance the purchase of $9,000,000 of proper¬
ties in the so-called West Hamshire Field in Texas and
the balance will be used to provide additional working
Unsubscribed shares to be purchased

capital. Dealer-Manager—Dillon, Read

& Co., Inc., New

York.

Pipeline Co.

3?'Texas Illinois Natural Gas

May 6 filed 927,273 shares of common stock (par $1) to
be offered for subscription
by common stockholders.
be

Price—To

by

supplied

amendment.

Proceeds—For

capital.

Underwriter—

working

and

construction

None. Peoples

Gas Light & Coke Co., has agreed to

take

Texas

Inc., Dallas, Tex.

Industries,

filed $3,500,000 of 15-year 6% sinking fund
(with five-year warrants to buy 175,000
shares of common stock attached), due May 15, 1968.
Price—At 100% and accrued interest. Proceeds—To buy
30

companies, to purchase bonds of one of
these companies, to acquire assets of two companies, to
redeem bank loans and 6% convertible debentures and
of three

general corporate purposes. Underwriters—Rauscher,
Pierce & Co., Dallas, Tex.; A. C. Allyn & Co., Inc.,
Chicago, HI.; and Russ & Co., San Antonio, Tex.

for

Texas Utilities Co.

(6/2)

April 30 filed 350,000 shares of common stock (no par).
Proceeds
To increase investments in subsidiaries.
—

Underwriters—To

determined

be

by

competitive

bid¬

ding. Probable bidders: The First Boston Corp., Blyth
& Co., Inc., First Southwest Co., Rauscher, Pierce &
Co., Inc. and Dallas Union Trust Co. (jointly); Union
Securities Corp.; Lehman Brothers and Bear, Stearns
& Co.
(jointly); Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Goldman,
Sachs & Co. and Harriman Ripley & Co., Inc. (jointly).
Bids—To be received up to 11 a.m. (EDT) on June 2 at
Two Rector St., New York, N. Y.
Texas Western

Oil

Co.

Thursday; May 21, 1953

States
share

Underwriier—Sidney S,

general corporate purposes.

For

Buffalo, N. Y.

Walcott, President of company,

it Waltham Watch Co., WaJtham, Mass.
May 15 (letter of notification) 10,000 shares

of common

$1). Price—At market (estimated to be about
$1.87y2 per share).
Proceeds —To Fulton, Walter &
Hailey and David I. Shivitz. Underwriter—None.

Houston, Texas.

Washington Water Power Co.
May

Underwriter

—

Walter

Aronheim, 82

Beaver St., New York.

vertible preferred
common

proposed merger into company of Puget Sound Pow¬
Light Co. on the basis of one-half share of pre¬
ferred and one-half share of common for each Puget
Sound common share to holders who do not elect to re¬
ceive cash at the rate of $27 per share.
Underwriter—
the

&

er

West Coast

Co.

(5/26-27)

Dallas, Tex.
6% debentures due Dec.
common stock (par 50
one $50 debenture and

Pipe Line Co.,
Nov. 20 filed $29,000,000 12-year
15, 1964, and 580,000 shares of
cents) to be offered in units of
Price

share of stock.

one

—

To be supplied by amend¬

Proceeds—From sale of units and

ment.

tional shares of

common

1,125,000 addi¬
stock and private sale of $55,-

000,000 first mortgage bonds, to be used to build a 1,030
oil

crude

pipeline.

Underwriters—White, Weld &

Securities Corp., both of New York.

Of¬

West Coast Pipe

Line Co., Dallas, Tex.
Nov. 20 filed 1,125,000 shares of common stock (par 50
cents). Price—To be supplied by amendment. Proceeds
—Together with other funds, to be used to build pipe¬
line. Underwriters
White, Weld & Co. and Union Se¬
curities Corp., both of New York. Offering—Expected in
—

the Spring of 1953.

Homestead

Western

Oils, Ltd.,
Calgary. Alta, Canada
April 24 filed 1,000,000 shares of capital stock (par 10
cents). Price—$1.30 per share for first 400,000 shares.
Proceeds—For general corporate purposes. Underwriter
—Owen

Investors

Ltd.,

of

through

Canada,

Toronto,
E. H. Pooler & Co., also of Toronto.

it Western Light & Telephone Co., Inc.,
May 18 filed 78,202 shares of cumulative convertible pre¬
ferred stock (par $25) to be offered for subscription by
stockholders

common

each five

common

the basis of

on

shares held.

one

new

share for

Price—To be supplied by

Proceeds—From sale of preferred stock, to¬

amendment.

Underwriter—Harris,

Hall

&

Co.,

Inc.,

Western Safflower

Corp.

April 9 (letter of notification) 240,000 shares of common
stock (par 25 cents). Price—$1.25 per share. Proceeds—
construct

plant. Office—First National Bank Bldg.,
Springs, Colo. Underwriter—E. I. Shelley Co.,
Denver/Colo.
Electrical

filed

Instrument

shares

107,055

$12.50) being offered to

May 19

Corp.

of

common

ic Thru-Vu Vertical Blind Corp., Rye, N. Y.
May 13 (letter of notification) 80 shares of capital stock
(rfio par) and $32,000 of unsecured debenture bonds due
1963.

Price—At $100 per share for stock and at par for

bonds

(latter in denominations of $400 and up). Pro¬
buy tools and for working capital. Office—

shares held; rights to
share.

New

Proceeds—-For new construction.
competitive bidding.

Corp.; Blyth & Co.,
Inc.; Smith, Barney & Co.; Harriman Ripley & Co., Inc. 7.
Central Power & Light Co.
March

it

2

;

.

/

reported company may issue and sell
50,000 shares of new preferred stock. Underwriters—To
be determined by competitive bidding. Probable bidders:
Stone

was

Webster

Securities Corp.; Lehman Brothers
Foigan & Co. (jointly); Blyth & Co., Inc.,
Harriman Ripley & Co., Inc. and Smith, Barney & Co.
(jointly); Salomon Bros. & Hutzler.
&

and Glore,

Central

Foundry Co.

March 16 directors voted to offer rights to present pre¬
ferred and common stockholders to subscribe for addif
tional

common

stock in the ratio of

stock for each four shares of either

stock held, but
such

one

share of

common

or

common

preferred

May 19 the board concluded that

on

no

offering will be made at this time.

Central Hudson Gas & Electric Corp.
was announced that some portion of the com¬

March 3 it

pany's financing program for 1953-1954 will involve the
sale of $16,550,000 new securities, a portion of which will
common

March

24

stock

debt securities convertible into

or

Stockholders

stock.

common

voted

to

at

authorize

an

the

annual

meeting

additional

shares

1,000,000

of common stock.
Underwriters
Kidder, Peabody & Co. and Estabrook & Co. handled offering in
November, 1949, of $6,000,000 2% convertible debentures.
—

Central Illinois Public Service Co.
26 it was reported that the company may about
mid-July sell about $6,000,000 additional common stock
(first to common stockholders). Underwriter—The First
Boston

Proceeds—To

new

one

expire

(par

share for each three

June 2. Price—$18 per

on

bank loans and for

repay

Corp., New York.

Central Maine Power Co.

Jan.

2

it

was

reported

company

plans

sale

later

this

of $10,000,000

common stock (in addition to $10,000,000 of 1st & gen. mtge. bonds sold March 10, 1953),
after distribution by New England Public Service Co. of
its holdings of Central Maine Power Co. common stock.
year

Probable bidders: Blyth & Co., Inc. and Kidder, Peabody
& Co. (jointly); Coffin & Burr, Inc.; A. C. Allyn & Co.,
Inc. and

&

Bear, Stearns & Co. (jointly); Harriman Ripley
Co., Inc.

Chesapeake & Potomac Telephone Co. of
Baltimore

May 1

petitioned the Maryland P. S. Commis¬
authority to issue and sell $15,000,000 of de¬
bentures. Proceeds—From sale of debentures, plus $25,000,000 to be received from sale of common stock to
American Telephone & Telegraph Co., parent, for re¬
payment of loans and for new construction.
Under¬
writers
To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
company

for

—

Co.; Morgan Stanley & Co.; The First Boston Corp.;
Ripley Co. Inc. and Alex. Brown & Son

Harriman

stock

stockholders of record

common

the basis of

on

Co.,

Underwriters—To be determined by
Probable bidders: The First Boston

&

30

&

Edison Co.,

privilege).

scription

sion

Chicago, 111.

Weston

Noel

Boston, Mass.
;—
April 27 it was announced stockholders will vote June 2
on approving a proposal to offer 246,866 shares, of capital
stock
(par $25) to stockholders on the basis of one
new share
for each 10 shares held (with an oversub-

gether with funds to be received from sale of $3,000,000

•

Alstyne,

....

Boston

first mortgage bonds, to reduce bank loans and for new

April

Underwriters—Van

York, and Walston & Co., San Francisco, Calif. Offering
—Expected in June.
.?.
A
/. ... .,

March

—

New York.

it Blue Crown Petroleum Co., Ltd.
May 12 it was reported company plans to issue and sell
300,000 shares of common stock.
Price—95 cents per

Involve

fering—Expected in the Spring of 1953.

Colorado

May 6 filed 500,000 shares of common stock (par $1).
Trice—To be supplied by amendment. Proceeds—To re¬
duce bank debt and for general corporate purposes. Of¬
fice
Dallas, Tex. Underwriter — Lehman Brothers,

u

•

None.

To

Three States Natural Gas

1,088,940 shares of $1.28 cumulative con¬
stock (par $25) and 1,088,939 shares of
stock (no par) to be issued in connection with

filed

7

Bangor & Aroostook RR. ( 5/25)
f
will
be
received
by the RFC at Room 1157,
811 Vermont Ave., N. W., Washington, D. C., prior to
5:30 p.m. (EDT) on May 25 for the purchase from it of
$1,675,000 of collateral trust 4% bonds due July 1, 1961.
Probable bidders;
Halsey, Stuart & Co., Inc.; Blyth
& Co., Inc.
;
\s
.
-

Bids

share.

of common stock (par $1)
be offered in the United
and 110,000 shares in Canada. Price — $1.02 per
in U. S. and $1 per share in Canada. Proceeds—

construction.

(G/l)

March 24 (letter of notification) 250,000 shares of capital
stock (par 10 cents). Price—$1 per share. Proceeds—To
drill wells.
Office — 116A City National Bank Bldg.,

^

Co.,

.

Toronto, Canada

Oils Ltd.,

Co. and Union

(5/22)

debentures

•

.

April 24 filed 660,000 shares
of which 550,000 shares will

mile

all unsubscribed stock.

stock

Corp. Underwriter—Tellier &

Tungsten

Walburt

capital. Office—

City. Utah. Former Name-

New York.

being offered for

April

and for working

Darling Bldg., Salt Lake

stock (par

Texas Eastern

new

R. L. Hughes &

-

it Uranium Mines of America, Inc.
May 14 (letter of notification) 1,950,000 shares of com¬
mon
stock (par one cent). Price—15 cents per share.

by common

Co., Philadelphia, Pa.

—

'

of debentures for

Sun Oil

Underwriter

equipment.

For mining

55

April

•

Financial Chronicle

(2240)

general

corporate purposes. Underwriter—Merrill Lynch, Pierce,
Fenner & Beane, New York.

(jointly). Bids—Expected to be received in July.
Chicago & North Western Ry. (5/27)
the company at 400 West Madi¬

Bids will be received by

St., Chicago 6, 111., up to noon (CDT) on May 27 for
purchase from it of $3,930,000 equipment trust cer¬
tificates to be dated June 15, 1953 and to mature in 15

son

the

ceeds—To

Kirby Lane North, Rye, N. Y.

Underwriter—None.

• Thunderbird Shirt Sales, Inc., Prescott, Ariz.
May 18 (letter of notification) $50,000 of five-year 6%
debenture notes (in units of $100 each) and 250 shares

Allis-Chalmers Mfg. Co.
May 6 stockholders approved

of

authorized

common

of notes

stock (par

and

Proeeeds—To

one

pay

$100) to be offered in units of $200
of stock.
Price—$300 per unit.

share

off

debt

and

for

operating

capital.

Underwriter—None.

vious

•

Tri-Boro Finance Co., Inc.
(5/27)
May 12 (letter of notification) $140,000 principal amount
of 7%

subordinate.debentures. Price—At par (in units
of $100 each). Proceeds—For
working capital. Office—.
11 S.

Washtington St., No. Attleboro, Mass. Underwriter

—None.

it Triad Transformer Corp., Los Angeles, Calif.
May 13 (letter of notification) 10,060 shares of common
stock
(par $5).
Price—$10 per share. Proceeds—For

working capital. Business—Manufacturer and distributor
of electrical equipment. Office—4055 Redwood
Avenue
Los Angeles, Calif. Underwriter—None.
Union Carbide

& Carbon

Corp., New York
May 5 filed 417,717 shares of capital stock (no par) to
Jpe offered to certain officers and employees of the com¬
pany

under its stock purchase plan.

United

Mining & Leasing Corp.
City, Colo.

Central

May 4 (letter of notification)
stock.

Price—At par

to issue any of the

115,000 shares of common
(10 cents per share). Proceeds—




financing
it

proposal to increase the
par)

(par $20). It is not presently planned
additional stock. Underwriter—Pre¬

was

This is

a

handled by Blyth & Co., Inc.

Arkansas Power &
March 20

a

stock from 3,750,000 shares (no

common

to 5,000,000 shares

Light Co.

announced thsit company may

consider
refunding the outstanding 47,609 shares of $7 preferred

stock

was

(no par)

and

45,891 shares of $6 preferred stock

(no par), both callable at $110 per share. Underwriters—
To be determined by competitive bidding. Probable bid¬
ders. Blyth & Co., Inc, and Equitable Securities Corp.
(jointly); W. C. Langley & Co., and The First Boston

Corp. (jointly); Kidder, Peabody & Co., and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Union Securi¬
ties Corp.
Atlantic
March 27
sue

Refining Co.

it

was

announced that proposed debenture is¬

later this year

nature

and

termined.
authorized
ceeds—To

will be around $60,000,000. The exact
timing of the financing are still to be de¬
Stockholders voted May 5 to increase the
debt

be

from

used

to

$75,000,000

help

struction program for 1953.

$150,000,000.

to

for

pay

Pro¬

$100,000,000 con¬

a

Underwriters—Smith, Barney

& Co. may head group.V

.

'

.

J(

,'■

/

....

obviously, a combination of tortoise and hare
a
good example of how Sorg works. Wa
we have to be thorough because
clients must have quality, whatever the deadline.

and also

have to be last and
our

Specialists in all types of financial, corporate and
legal printing, Sorg has had over 30 years' experi¬
in handling the whole job...from design
through composition, printing, binding, mailing.
We're available 24 hours a day in the interests of
producing fine, accurate printing with, when neces-,
sary, utmost speed.
ence

Volume 177

Number 5222..-.The Commercial and Financial Chronicle

equal

instalments." Probable bidders:
Inc.; Salomon Bros. & Hutzler.

annual

Stuart & Co.

Halsey,

^ Chicago, St. Paul, Minneapolis & Omaha Ry.
May 19 company applied to the ICC for authority to
and sell $1,170,000 equipment tru^t certificates to
tnature in 15 years. Probable bidders: Halsey, Stuart &
issue

Co.

Inc.; Salomon Bros. & Hutzler; R. W. Pressprich &

Co.

General Telephone Co. of Kentucky
April 27 it was reported early registration is expected
of 50,000 shares of cumulative preferred stock
(par $50).
Underwriters
Probably Paine, Webber, Jackson &
Curtis and Stone & Webster Securities Corp.

May

the

7

it

31

revealed

was

$35,000,000 through sale of
Proceeds—For

determined

the

new

bonds

company plans to raise
securities (mostly bonds).

construction.

new

Underwriters—To

Co.; Kuhn,

Loeb

& Co.

Salomon

and

Bros.

& Hutzler

(jointly); Blyth & Co., Inc., and The First Boston Corp.
(jointly); Union Securities Corp.; Glore, Forgan & Co.
and White, Weld & Co. (jointly); W. C. Langley & Co.;
Lehman Brothers; Harriman Ripley & Co., Inc.; Merrill
Lynch, Pierce, Fenner & Beane.
Previous equity fi¬
nancing was underwritten by Morgan Stanley & Co. and
w. e. Hutton & Co.
Cinerama

; :;:v.

Corp.
was reported company plans issuance and sale
of about 500,000 shares of common stock.
Price—Ex¬
pected to be. around $10 per share. Underwriter—Hayden, Stone & Co., New York.; Offering—Postponed.
City Bank & Trust Co.of Heading, Pa. (6/1)
May 6, J. D. Heckman, President, announced that share¬
them

on

May 15 will have warrants mailed to

about June I entitling them to subscribe on

or

before July 15

for 15,000 additional shares of capital
stock (par $10) on the basis of one new share for each
or

shares

two

held.

Price—$30
surplus.

No

fractional

shares

will

be

issued.

share., Proceeds—To increase capital and

per

/I

••

:

."'"/"".V/..'-

Columbia Gas System, Inc.
April 6 it was announced company plans to issue and
sell later this year $40,000,000 of new -debentures. Pro¬
ceeds—To

repay

bank

loans and

for

construction

pro¬

Underwriters—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.

gram.

stockholders

approved

Co.

&

(jointly); Lehman Brothers; W. C.
Langley & Co. and Union Securities Corp. (jointly);
Morgan Stanley & Co. Stuart Cooper, President, said
it is possible that common stock may be sold later in the
year.
.

Denver & Rio Grande Western RR.

Bids

(8/3)

expected to be received by the company on or
Aug. 3 for the purchase from it of $3,300,000

equipment
Nov.

trust
certificates due semi-annually
from
1, 1953, to May 1, 1968, inclusive, and on or about

Oct.

1

of

bidders:

like

a

amount

Halsey,

Stuart

said

of

&

Co.

certificates.

Inc.;

Probable

Salomon Bros.

&

Hutzler; Kidder, Peabody & Co.
Detroit
March 24

Edison
it

unspecified

was

Co.

announced

amount of

company

convertible

(about $55,000,000 to carry
4%) which may first be

an

plans to issue

debenures

due

an

1963

interest rate not exceeding

offered for subscription by
stockholders. Proceeds—To retire bank loans and to meet
construction
authorized

costs.

the

Meeting—Stockholders

on

April

14

debentures. Underwriter—None.

new

Feb. 20 it

was

collateral

announced company
trust

mortgage

plans sale of $7,000,-

bonds

due

1973.

Under¬

Co. and Stone & Webster Securities

Corp. (jointly); The
Corp., White, Weld & Co. and Kidder, Peabody & Co. (jointly); Glore, Forgan & Co. and Harriman
Ripley & Co. Inc. (jointly).
First Boston

El

Paso

Natural Gas Co.

March 25 it was announced company plans to
place
privately $129,000,000 of first mortgage bonds and sell
publicly 200,000 shares of preferred stock and $25,000,000 debentures.

Underwriter—White, Weld & Co., N. Y.

★ First Railroad & Banking Co. of Georgia
May 4 it was announced that this new company
offer

stockholders

of

Georgia Railroad

will

&

Banking Co.
in exchange for each share
held, one share of the new
company's stock, the right to subscribe within 30 days
13

additional

shares

at

$4.10

per share and a $250
May 1, 1990; the offer to
effective upon acceptance by 95% of the out¬
standing stock. An additional 210,000 of the new shares
would be purchased by the
underwriters, plus any of

collateral

trust

5%

bond

due

become

the. unsubscribed

an

common

stockholders). Proceeds—To

shares.
Proceeds—To retire $2,190,000
Georgia Railroad & Banking Co. debentures held by

-insurance firm.

«&

Co. and

•

Gas Service

Underwriters—Johnson, Lane, Space

Joseph Walker & Sons.
Co.

(6/24)

May 12, B. C. Adams, President, said that Cities Service
Co., parent, plans to sell its holdings in Gas Service Co.,
which will

shortly be increased to 1,500,000 from 850,000
shares by transfer of surplus" to
capital account.
Pro¬
ceeds—To be used by Cities Service Co. to increase in¬
vestment in Empire Gas & Fuel Co., another
subsidiary.
Underwriters—To be determined by competitive bidding.
Probable bidders: Blyth &
Co., Inc. and Kidder, Peabody
& Co.

(jointly), Smith, Barney & Co.; Stone & Webster

Securities Corp. and Stern Bros. & Co.
(jointly). Regis¬
tration—Expected to be filed about May 25. Bids—Ten¬
tatively planned for about June 24.




Co.

stock

(the
retire bank

Gulf State Utilities Co.

(EDT)

:

*

-

11

sale

it

near

was
announced company plans issuance and
the middle of 1953 of $10,000,000 first
mortgage

bonds.

Underwriters—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.,
Langley & Co. and The First Boston Corp. (joint¬
ly); Kuhn, Loeb & Co.; Kidder, Peabody & Co. and
White, Weld & Co. (jointly); Glore, Forgan & Co.; Leh¬

W. C.

man

Brothers; Equitable Securities Corp.; Union.Se¬
Corp. and Salomon Bros. & Hutzler (jointly);
Merrill Lynch, Pierce, Fenner &
Beane; Harriman Rip¬
ley & Co., Inc.
curities

(6/23)

reported company plans sale of sufficient

was

stock

to raise about

$6,000,000.

Montana-Dakota Utilities Co..
2 it was announced company plans to issue and
in 1953 approximately $8,000,000 of first
mortgage

Underwriters—

..

May

Probable bid¬

sell

Merrill Lynch,
Pierce, Fenner & Beane and Lehman Brothers (jointly);
Carl M. Loeb, Rhoades & Co. Bids—Tentatively expected

bonds.

1953 construction program.
Un¬
be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co. Inc.;
Blyth & Co.,

Inc., Merrill Lynch, Pierce, Fenner & Beane and Whiter
Weld & Co. (jointly).
"
"
'
: ;
•>- ,; \

Hammacher, Schlemmer & Co., Inc. (5/27)
will be received by the Attorney General of the
United
States
at
the
office
of Alien Property,
346
Broadway, New York 13, N. Y., up to 3 p.m. (EDT)
on May 27 for the purchase from the Attorney General
of 1,760 shares of capital stock (including 660 shares
of $7 prior stock, no par value; 660 shares of $7 pre¬
ferred stock, no par value; and 440 shares of common
stock, no par value). This represents about 15% of the
outstanding stock of the company. All bids submitted on

.

Bids

June 26, 1952 had been rejected.

'

:

-

ir Industrial National Bank of Detroit

Monterey Oil Co.

;

announced bank plans to offer to its stock¬

.

.

-,v-L:

May 1 it was reported company may, following 10-for-I
split, register in June from $1,000,000 to $3,000,000 com¬
mon stock which
may include some stock for account, ot
selling stockholders. Price—Expected to be around $30
per share.
Underwriter—Lehman Brothers, New York.1 '
* New York, Chicago & St. Louis RR. (6/10)
•
are expected to be received
by the company up to
(EDT) on June 10 for the purchase from it of
$3,150,000 equipment trust certificates. Probable bidders:

Bids
.

holders 25,000 additional shares of capital stock (par $10)

Proeeeds—For

derwriters—To

about June 23.

was

^

Inc.; Salomon Bros. & Hutzler.

Dec

Boston, Mass.

To be determined by competitive bidding.
ders: Stone & Webster Securities Corp.;

May 15 it

(5/27)

Monongahela Power Co.

—For new construction.
Underwriter—May be Carl M.
Loeb, Rhoades & Co., New York.

noon

Halsey,

Stuart

&

Salomon Bros.

Co.

Inc.;

W.

R.

Pressprich

& Hutzler.

&
«

.

Co.;
•

.

,

l-for-8 basis. Price—$30 per share. Meeting—Stock¬
holders will vote May 29 on increasing authorized capi¬

Feb. 27 it

issue and sell

on

New York State Electric & Gas

a

Iowa Electric

April 13 it
writers

was

Light & Power Co.
and/or debentures.

For stock: The First

Under¬

Boston

Corp. and G. H.
Walker & Co., both of New York. Previous debt financ¬
ing was done privately.
—

if Kansas-Nebraska Natural Gas Co., Inc.
May 12 it was reported company may issue

and sell
$4,750,000 first mortgage bonds. Proceeds—To re¬
pay
$800,000 bank loans and for new construction.
Underwriter—Central Republic Co., Inc., Chicago, 111.

about

Kansas

Power &

Light Co.
May 6, D. E. Ackers, President, announced that company
plans to market soon about $3,000,000 of equity securities
(probably around $5,000,000 of preferred stock and 170,000 shares of common stock). Proceeds—To help pay for
new construction.
Underwriters—The First Boston Corp.
handled last common
stock financing.
Previous pre¬
ferred stock financing was done privately.
Long Island Lighting Co.
April 21 it was announced that company this Fall plans
to issue and sell in the neighborhood of 600,000 shares
of new common stock to be followed in the latter part of
the year by an issue of about $25,000,000 of first mort¬
gage bonds
(this is in addition to 100,000 shares of
C

preferred stock,

Proceeds—To

par

repay

$100, offered

bank loans

publicly

on

and for new

construction. Underwriters
(1) For common stock,
probably Blyth & Co., Inc. and The First Boston Corp.
(jointly). (2) For bonds to be determined by com¬
—

petitive bidding. Probable bidders: Halsey, Stuart & Co.,

Inc.; Blyth & Co., Inc. and The First Boston Corp.
(jointly): W. C. Langley & Co.; Smith, Barney & Co.
Louisiana Power & Light Co.
March 20 it was announced company may issue and sell
in June $12,000,000 of first mortgage bonds.
Under¬
writers

To

—

be

Probable bidders:

determined by competitive bidding
Halsey, Stuart & Co. Inc.; Kuhn, Loet

& Co., Inc.
& Co. and
Shields & Co. (jointly); Salomon Bros. & Hutzler; W.
C. Langley & Co., The First Boston Corp., and Glore,
Forgan & Co. (jointly); Merrill Lynch, Pierce, Fenner
& Beane and Kidder, Peabody & Co. (jointly); Harri¬
man Ripley
& Co., Inc.; Equitable Securities Corp.
Co., Lehman Brothers and A. C. Allyn
(jointly); Blyth & Co.. Inc; White, Weld

Maier

Brewing Co., Los Angeles, Calif.
was announced company will offer 400,000
additional shares of common stock to its stockholders at

rate

18 it

of

four

new

shares for each share

held.

Menabi

Exploration Co., Inc., Houston, Tex.
announced company plans to issue and
sell $1,000,000 of convertible debentures.
Proceeds—To
finance development of oil properties in Ecuador. Under¬
writer—Kidder, Peabody & Co., New York.
it

was

Mississippi Power & Light Co.
March 20, E. H. Dixon, President of Middle South Utili¬

due

competitive

bidding. Probable bidders: Halsey, Stuart
Inc.; The First Boston Corp. and Glore Forgan
(jointly); Blyth & Co., Inc. and Smith, Barney
& Co.
(jointly); Hemphill, Noyes & Co. and Drexel
& Co.
(jointly); Kidder, Peabody & Co. and Salo¬
mon
Bros. & Hutzler
(jointly); Lehman Brothers; Har¬
riman Ripley & Co.," Inc.

&

Co.

&

Co.

New York

&

Light Co.'s $6 preferred stock (no par), of which 44,-

considered
This issue is callable at $110 per share. Underwriters—
To be determined by competitive bidding. Probable bid¬
ders: Blyth & Co., Inb., and Equitable Securities Corp.
(jointly; W. C. Langley & Co., and The First Boston
Corp. (jointly); Kidder, Peabody & Co., and Merrill
shares

are

now

outstanding,

may

be

Telephone Co.

(6/23)

k

Feb. 26 company applied to New York P. S. Commission
for permission to issue and sell
$35,000,000 of refunding

mortgage bonds, series G due 1984. Proceeds—To
bank

loans and

—To

be

for construction

determined

program.

repay

Underwriter*

by

competitive bidding. Probable
bidders Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.r
Merrill Lynch, Pierce, Fenner & Beane and
Glore, For¬
gan & Co. (jointly); Kuhn, Loeb & Co.
Bids—Tentatively
scheduled to be received up to 11 a.m. (EDT)

on

June 23.

Registration—Expected about May 22. Stock OfferingCompany also plans to issue and sell to American Tele¬
phone

&

Telegraph

shares of

Co.,

stock

common

its

parent,

700,000

additional

(par $100).

Northwest Natural Gas Co.
March

23 it was reported that this
company plans to
finance its proposed 1,300-miles pipeline from Canada
tee¬
the Pacific Northwest by the issuance and sale of

$66,-

000,000 of

4y?% first mortgage pipeline bonds to insur¬

ance

companies and other institutional investors and $9,000,000 of 5% debentures and 1,400,000 shares of common
stock at $10 per share
publicly in the United States and
Canada.

Underwriter—Morgan Stanley & Co., New York.

Ormond
March
with

10

the

it

querque.

Corp., Albuquerque, N. M.
was

SEC

nationally.

announced

an

company plans
of stock, which will

issue

Office—5003

Central

to

register

be offered

Avenue, N.

E.,

Albu¬

N. M.

Pacific Teleohone
Dec.

17

Mark

company

in

R.

1953

& Telegraph Co.
Sullivan, President, announced

will

borrow

some

$125,000,000

thai

from

banks to be refinanced later in
year, probably by offer¬
ing of bonds and additional common stock. Probable
bidders for bonds: Halsey, Stuart &

Co., Inc.; Morgan
Stanley & Co.; White, Weld & Co.; Lehman Borthers and
Securities Corp. (jointly).
Stock would be of¬
fered to stockholders, without
underwriting. American
Telephone & Telegraph Co., parent, owns 91.25% of
Union

Pacific

common

shares.

Pennsylvania Electric Co.
April 1 it

was

in June about
and

a

(6/23)

reported company plans to issue and sett

$12,500,000 first mortgage bonds due 1983

like amount later

on.

Proceeds—For construction

Underwriters—To be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Co.

program.

tive

Inc.;

Kuhn, Loeb &

Co.;

Kidder,

Peabody

& Co.; The

First

Boston Corp.; Equitable Securities Corp.
Bids—
Tentatively set for 11 a.m. (EDT) on June 23.. Registra¬
tion—Expected soon.
*
'

ties, Inc., announced that refunding of Mississippi Power
476

was

Price—$5

per share.
Proceeds — To help finance a new bottling
plant. Underwriter—None.

April 8

reported that company may, later in 1953,
$20,000,000 first mortgage bonds (following
75,000 shares of 4.40% preferred stock,
$100 in February and $5,000,000 of 3%% debenture*
1991 in April). Underwriters—To be determined
by

par

&

April

Corp.

private sale of

reported company may sell in June some

and preferred stock

common

May 7).

writers—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Estabrook &

of

of

a total of $35,000,000 in equity securities
(prob¬
ably in units of preferred and common stock). Proceeds

series

Eastern Utilities Associates

for

value

mortgage

Line Co.

May 13 it

RR.

May 27 for the purchase from it of $2,325,000 equip¬
trust certificates to mature annually June
15, 1954
1968, inclusive. Probable bidders: Halsey, Stuart &

to

authorized

first

of

are

about

000

to

par

Commission

$200,000

Gulf Interstate Gas Co., Houston, Tex.
May 11 it was reported that company may offer for
subscription to stockholders of Panhandle Eastern Pipe

proposal to increase

a

authorized preferred stock from 200,000 shares to
300,000 shares (par $100). Probable bidders for any new
preferred stock financing may include Blyth & Co., Inc.
and The First Boston Corp. (jointly);
White, Weld & Co.
Shields

first

Missouri Pacific

on

•

the

and

•

talization.

Delaware Power & Light Co.

April 21

$483,000

U.

P.

sell

loans. Underwriter—F. L. Putman & Co.,

common

Productions

Jan. 9 it

holders of record

latter

and

be

by competitive bidding. Probable bidders
Halsey, Stuart & Co. Inc.; Morgan Stanley &

for bonds:

and

issue

Lynch, Pierce, Fenner & Beane (jointly); Union Securi¬
Corp.
■: v
'
'
v.
■«

ment

Connecticut

to

57

ties

Bids will be received by the company up to 1 p.m.

Greenwich Gas Co.

company

March

•

—

"

.

Cincinnati Gas & Electric Co.

(2241)

Permian

Basin

Pipeline Co., Chicago, III.
application with FPC

Feb. 4 company filed an amended
for
an

authority to construct

a

163-mile pipeline system at'

estimated cost of $40,269,000. Financing may be done

privately. Underwriters — Stone & Webster Securities
Corp. and Glore, Forgan & Co., both of New York. Of

Continued

on

page

58

58

The Commercial and Financial Chronicle...

(2242)

ern

51% is now owned by
Oklahoma

was

reported company may issue and

•

—

25 it

was

,

and

Lehman

shares, par $10, and split-

securities

sufficient

to

raise several

May 4 it
vertible

Pipe Line Corp.
reported company may issue

was

preferred stock before the

Fall.

—Probably White, Weld & Co. and
Securities Corp., both of New York
United

May

1 it

Gas

company

Southern

Natural

— Memorandum — Cochran,
Dominion Bank Building, Toronto, Canada.
Chemical Co., Ltd.—Analysis—R. A. Daly &

Canada.
Ltd.—Circular—Hardy & Co.,

New York 4, N. Y.

Fuji Photo Film—Data in current issue of "Weekly Stock Bul¬
letin"—Nikko Securities Co., Ltd., 4, 1-chome, Marunouchi,

Chiyoda-ku, Tokyo, Japan. Also available is data on Daito
Spinning and Weaving, Tokyo Shibaura Electric and

Woolen

ord

Co.

The

Electric—Supplement to basic report—Eastman, Dillon

Co., 15 Broad Street, New York 5, N. Y.

Co., 244 Bay St.,

Hayes Steel Products Ltd.—Memorandum—G. E. Leslie & Co.,

Royal Bank Building, Montreal, Que., Canada.
Kellogg Co.—Memorandum—Ames, Emerich &
La Salle Street, Chicago 3, 111.

Co., 105 South

Railroad—Memorandum—Ira

memorandum

Haupt

&

Co.,

Broadway, New York 6, N. Y.
Chemical

&

Manufacturing Co.

—

Memorandum

—

Smith, Burris & Co., 120 South La Salle St., Chicago 3, 111.

Brewing

Company-^Analysis—Loewi &

Co.,

225

East

Mason Street, Milwaukee 2, Wis.
Public Service Co. of New

Hampshire—Analysis—Ira Haupt &

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

Francisco 20, Calif.

Funds, and

an

analysis

of Lucky Stores, Inc.

Salem-Brosius Inc.-American Cladmetals Co.—Memorandum—

1, 1973, and the convert¬

debentures

will

be

applied

to the prepayment of the

$35,050,-

000 principal amount of outstand¬
ing notes of the company and to

the

construction

The

additions

of

debentures

vertible into

to

to

par,

each

will

common

be

con¬

stock of the

prices ranging from 100%
plus accrued interest in

line

system

extending from the
fields in Texas, Louisiana and

Mississippi
Its

to

and

and

of

sale

wholesale

to

in

Ala¬

and

Mississippi.
principal business is the trans¬

mission
at

markets

Georgia

to

municipalities,

certain industrial

tory

served

natural

other

by the

gas,

companies

and

Co.—Memorandum—Jones, Kreeger &

Westinghouse Electric
mill &

Corp.—Memorandum—Shearson, Ham-

Co., 14 Wall Street, New York 5, N. Y.




5% cumulative, convertible)
exchange for their series A

par,

in

stock plus an
ment to

by

additional cash

pay¬

be made to the company

the person desiring to make
exchange.
Any
remaining

shares

be sold to

will

writers.

the under¬

a

users.

company

had

population of 2,051,787, based on
1950 census, and total operat¬

ing

revenues

$39,425,260,

for 1952 aggregated

while

gross

income

$8,841,801 and net income of

$7,363,710
share.

purchase of

was

and

equal to $2.15

per

for

Co.

(and
a

used

for

the

50% interest in the
&

Fire
at

cost

a

Marine
of

the creation of

In¬

$505,000

Kentucky,

in

the

the

area

oil

generally

-

industry

known' in

the

as

"Illinois

Basin."
The company's

producing

prop¬

erties consist of working interests
in leases on 2,046
acres,

including

69

producing wells.
It also has
non-producing leases on approxi¬
mately 500 acres in Kentucky and
440

in Indiana.

acres

First Boston

Gro«p

Offers Phila. EL Bonds
The

First Boston Corp. heads
underwriting group which is
offering today (May 21) $30,000,000 of Philadelphia Electric Co.
an

first and refunding mortgage
bonds, 37/s% series due 1983. The
new

bonds

priced at 102.60%

are

plus
yield 3.73 %' to
The issue was awarded

accrued interest to

maturity.
competitive sale

at

an

Sale

the

of

financing

Wednesday.

on

bonds

program

volved

the

shares

of

is

part

that

new

bined

public sale of 150,000
4.68% preferred

new

will

000,000

program

be

of

used

for

To

meet

tal of

to

The

be

com¬

com¬

applied

company's
and

a

retire

short-term

curred

for

will

the cost of the

construction

addi¬

stock.

common

proceeds

toward

tion

a

in¬

employees of 100,000 shares

pany

of

of

also

stock and the future sale to

$250,000 reserve); and the
balance of the proceeds will be
used to increase the working capi¬

por¬

$20,-

loans

in¬

construction.

increasing

demands

at

tional

the

Basin Oil

Corp. Stock

Cruttenden & Co., Chicago,

111.,
publicly 393,044
shares of Basin Oil Corp. common
stock (par 10 cents) at 62V2 cents
per share "as a speculation." This
are

service

the

subsidiaries

company

its

and

planning
con¬
expenditures estimated

struction

are

$385,000,000 for the six-year
period 1933-1958. It is planned, to

company.

Cruttenden Firm Offers

Terri¬

the

was

subsidiaries

surance

oil properties located in the States
of Indiana, Illinois and

„

Of the proceeds of the

directly

—

Hewitt, 1625 Eye Street, N. WM Washington 6, D. C.

be

holders of outstanding

to

Midwestern

case.

Southern Natural Gas Co. oper¬
ates an interstate natural gas pipe

—

National Life Building, Salt Lake
City 10. Utah. Also availis information on
Ute Royalty and English Oil.
Westinghouse Air Brake

dividends from May 31, 1953.,
Unsubscribed shares are to

cash sale
of stock, an amount not exceed¬
mon
stock, ranging from $28 to ing $-331,186.20 will be applied to
and
including June 1, 1958; to the redemption of such of the
$35.50 to and including June 1, 61,881 series A shares as have not
1973. The debentures will be re¬ been exchanged for the new pre¬
deemable
at
the
Approximately
$750,000
option of the ferred.
company at prices ranging from may be used by the company to
105% to par, and for the sinking pay off loans made to it by its

bama,

able

Holders of the outstanding com¬
stock
of General
Contract

mon

the

company at principal amounts of
debentures for each share of com¬

D. Searle & Co.—Analysis—F. S.
Moseley & Co., 14 Wall
Street, New York 5, N. Y.
—

in Delaware on March
8,
1951,
to
acquire
and
operate
working interests in leases cover¬
ing producing and undeveloped

preferred stock, 6% series A ($10

gas

Servomechanisms, Inc.
Bulletin
DeWitt Conklin Organiza¬
tion, 100 Broadway, New York 5, N. Y.
Southern Pacific Company—Analysis—J. R.
Williston, Bruce &
Co., 115 Broadway, New York 6, N. Y.
Strong-Cobb & Co.—Memorandum—T. H. Jones &
Co., Union
Commerce Building, Cleveland
1, Ohio.
Telecomputing Corporation
Analysis — Hill Richards & Co.,
621 South Spring
Street, Los Angeles 14, Calif.
Utana Basins Oil—Information—W. D.
Nebeker & Co., Pacific

rated

due May

Graham, Ross & Co., 82 Beaver Street, New York 5, N. Y.
G.

Corp.; Blyth & Co., Inc.; Kidder, Peabody & Co.

20,

proceeds from the sale of

fund at

Company—Analysis—First California Com¬

pany, Inc., 300^ Montgomery Street, Sari
Also available is a bulletin on Mutual

is

the company's properties.
a

writers—To be determined by
competitive bidding. Prob¬
bidders: Halsey, Stuart & Co. Inc.; First
Boston

able

offered

Lehigh Valley Railroad—Memorandum—Hirsch & Co., 25 Broad
Street, New York 5. N. Y. Also available is
on Westinghouse Electric Corp.

$3,000,000. of 20-year first mort¬
Proceeds—To retire bank loans, etc. Under¬

$30,000,000
first
mortgage
pipe
line sinking fund bonds 4% series
ible

Toronto, Ont., Canada.

Pabst

May

Ex¬

—

May 28.

on

ization to issue and sell

General Contract Pfd.

rec¬

to 1 p.m. (EDT)

up

Halsey,

was announced company has
applied to the
Massachusetts Department of Public Utilities for author¬

Webster

1953, rights to sub¬ Corp. are being offered the right
scribe for $34,220,100 4%'% con¬
to subscribe at $11 per share for
vertible sinking fund debentures
500,000 shares of preferred stock,
due June 1, 1973, at 100% of prin¬
6% series, of $10 par value at the
cipal amount, on the basis of $100 rate of one new share for each
principal amount of debentures 3.3 shares held of record on
May 4,
for each ten shares of stock held
1953.
Subscription warrants will
on the record date.
Rights to sub¬ expire at 3 p.m. (CDST) on May
scribe are to be evidenced by sub¬
27, 1953.
scription warrants, which will ex¬
The offering is underwritten by
pire at 3:30 p.m. (EDST) on June
a
group of
investment bankers
8, 1953. Halsey, Stuart & Co. Inc. headed
by G. H. Walker & Co.
and
associates are underwriting
The above shares are convert¬
the offering.
ible and are entitled to cumulative

Hitachi.

Ill

&

plans to raise $50,-

Gas

:

(5/28)

April 2 it

•

gage bonds.

Southern Natural Gas

Co., 44 King Street West, Toronto 1, Ont.,

National

con¬

Corp., Shreveport, La.
announced

was

Ry.

Worcester Gas Light Co.
some

000,000 during 1953 through the issuance and sale of ad¬

Investments Ltd.

Pacific

pected to be received

Underwriters

Stone

Central

1953 to June 1, 1968, inclusive. Probable biddersStuart & Co. Inc.; Salomon Bros. & Hutzler. Bids

Transcontinental Gas

8

Haile Mines—Memorandum—J. E. Grasett &

Wisconsin

May 12 company sought approval of the ICC to issue and
sell $3,930,000 equipment trust certificates
to be dated
June 1, 1953 and to mature
semi-annually from Dec. l

Underwriter—Eastman, Dillon & Co., New York.

Recommendations & Literature

Missouri

-

millions of dollars

offering to its stockholders of

&

-rW

was

Corp.

•

.

Ford Motor Company of Canada

v.-

.

.

reported that company plans issuance
and sale of
100,000 shares of new preferred stock. Under¬
writers-r May be determined by ^competitive
bidding.
Probable vbidders.* Stone & - Webster Securities
Coyp.;
Harriman Ripley & Co., Inc.; Union Securities

stock. Underwriters—Hamlin & Lunt,

common

Dealer-Broker Investment

General

West Texas Utilities Co.

capital to finance two new manufacturing division
projects in each of which it would own a 50% interest.

£ San Diego Gas & Electric Co. (6/9)
May 18 company applied to the California P. U. Commis¬
sion for authority to issue and sell first to its common

30 Broad Street,

Corp.; Kidder, Peabody & Co.; Union Securi¬
—
Expected to be received on June 15.'
Registration—Expected in near future.

of

Corp.

ned for 1953 and 1954.

Dominion Tar &

Securities

-

will be re¬
quired from additional financing in the future in con¬
nection with its $35,300,000 construction program plan¬

Murray & Co.,

—

ties Corp. Bids

Buffalo, N. Y., and Allen & Co., New York.'

SEC), approximately $27,000,000

Dominion Equity

Underwriters

To be determined by
Probable, bidders: Halsey, Stuart &
Inc.; Kuhn, Loeb & Co, and A. C.. Allyn & Co. Inc.
(jointly); Merrill Lynch, Pierce, Fenner & Beane and
Stone, & Webster .Securities Corp. (jointly);..Equitable

.

★ Sunray Oil Corp.
^
May 13 company disclosed it is planning to issue and sell

May 8 company announced that, in addition to the pro-Sy ceeds from the sale about May 28 of 175,000 shares of
new
common
stock to stockholders (registered May 8

Continued from page

Co.,

;

21/2-for-1 basis.

the

&

Co.

Brothers; Blyth & Co. Inc.,, and Stone & Webster
Corp. (jointly).
.J' ;■>,<* -

additional

growth. The common was increased from 50,000 shares,
par $5, to 1,000,000 shares, par $1, and split-up
on a
5-for-l basis, and the preferred stock increased from

with

construction.

new

Strategic Materials Corp., Buffalo, N. Y. V;
April 14 it was reported company plans to offer for sub¬
scription by its common stockholders about $1,000,000 of:

increased capitalization is neces¬

Rochester Gas & Electric

First Boston Corp., Harriman Ripley
Goldman, Sachs & Co. (jointly).

%March 2 it

because the profit left after today's taxes is far
from
enough to finance this corporation's continued

2,500 shares, par $25, to 50,000

The

competitive bidding.

Securities

sary

$20,000,000 of stock may be
by common stockholders on a

that

,

sell

and

and

Washington Gas Light Co. (6/15)
May 11 it was announced company plans to issue and sell
/ $7,000,000 of refunding mortgage bonds, Proceeds—For

was

issue

Remington Corp., Auburn, N. Y.
April 14, Herbert L. Laube, President, following approval
of the increase and split-up of common and preferred

up on a

ly);

Inc. and

announced company later this year will
50,000 shares of cumulative preferred
stock (par $100).
Underwriters-?-May be determined
by competitive bidding. Probable bidders: White, Weld
& Co. and Kidder, Peabody & Co. (jointly); W. C. Langley & Co and Paine, Webber, Jackson & Curtis (jointly);Harriman Ripley & Co. Inc.; Merrill Lynch, Pierce,
Fenner & Beane and Union Securities Corp. (jointly);
April 29 it

Boston Corp.

stock, stated that the

,

was

,

Electric & Gas Co.

about

subscription

basis

the debenture offering will be
Proceeds—For 1953 construction pro¬
Underwriters—For stock, none. For debentures,
to be determined by
competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.,
White, Weld & Co. and Equitable Securities Corp. (joint¬

Southwestern Gas & Electric Co.

announced company plans issuance

that

gram.

reported company plans to issue and sell
of common stock. Proceeds—For working
capital. Underwriter—Miller Securities Co., New York.
Offering—Indefinitely postponed.
.
«■i

in June of $50,000,000 of

for

about $30,000,000.

Francisco.

N. J.

stock (par $10) and debentures. Earlier

common

reports stated

care

Shield Chemical Corp.f Verona,

March 26 it

first refunding mortgage
bonds. Proceeds—To repay bank loans and for new con¬
struction. Underwriters—To be determined by competi¬
tive bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co. and Lehman Brothers (jointly); Mor¬
gan Stanley & Co. and Drexel & Co. (jointly); The First
sale

basis. Any

about $300,000

improvements.

Public Service
Feb.

one-for-three

of $17,550,000 construction program for.
Underwriter—Blyth & Co., Inc., New York and

help take

San

40,000 shares of new preferred
writers
To be determined

tions and

ditional

total of 800,000 additional

a
a

l-for-15

1953.

sell
stock (par $100). Under¬
by competitive bidding.
Probable bidders: Glore, Forgan & Co.; Smith, Barney
& Co.; Kuhn, Loeb & Co.; Harriman Ripley & Co., Inc.,
and Central Republic Co. (Inc.).
Proceeds—For addi¬
it

on

offered

to

2

stock

common

unsubscribed shares will be offered to officers and em¬

North-

Natural Gas Co.

Public Service Co. of

March

of

shares

ployees. Proceeds—To retire $5,600,000 of bank loans and

the stock of this company,
►

stockholders of record June 9

57

Continued from page

«

Thursday, May 21, 1953

offering

spend around $73,000,000 in

1953.

Of

esti¬

the

total

expenditures

mated for the

six-year period,

proximately

$319,000,000

electric

facilities

for

is

facilities.

gas

Optional
the

new

and

ap¬

for

$44,000,000
:

redemption prices for

bonds start at 105.60%. if

includes 280,000 shares being sold
for the account of the Basin Oil

redeemed

Corp.

ending April 30, 1954, decreasing

and

account of

Basin

113,044

shares for

the

certain stockholders.

Oil

Corp.

was

incorpo¬

to

the

during

principal

April 30, 1982.

the

12

months

amount

after

Volume 177

Number 5222...The Commercial and Financial Chronicle

(2243)

under

$100 Million Delaware

all

River Port Authority
Revenue Bonds Offtl
Issue comprises $60,000,000 term
and $40,000,000 seriaj bonds.
Public

.

offering of

Delaware
first

River

series

of

by Smith, Barney &

members

in

taxation

taxes.

The bonds

ment

for

funds

and

gift

or

legal invest¬

are

savings
certain

With

di¬

banks,

trust

other funds

(Special

&

15,

1953

and

due

$40,000,000

headed

Co.;

and 3y4%

15,' 1953

Dec.

of

due

Dec.

15,

W.

to

C.

The

Financial

ISLAND,

Elder

B.

The

is

are

Co.

of

He

161 East 42d

ing

will

be

River

Port

funds

for

bridge

the

over

Delaware

in

•

funds

interest
'

of

•.

to

for

serves

and

and

principal

obligations

Authority.

The bridge is expected to be com-

] pleted during 1957.
\ " The,.term; bonds carry
sinking
f

fund,

payable

The Board of Directors has declared
this

regular quarterly dividends of
share
and

the Preferred

on

87Vit

$3.50

—

share

a

Series,

the entire issue

at

prior

or

to maturity.
In addition to the
fixed sinking fund the term bonds
;

will

have

tingent

the

benefit

of

<

payable

share

July 10,

dividend for

1953,

close of business

L.

du

P.

on

COAL

a

.

at the

May 25, 1953.

.

sel,

from

interest-exempt,
Authority coun-

Federal

income

taxes

VANDERSTUCKEN, JR.,
Secretary

10,

A.

been

1953

the

to

close

of

1953.

HENDERSON,

A

Tennessee Gas

share

this

of seventy-five

on

holders

July
of

15,

to

June
N.

stock¬

12,

1953.

LEONARD

Secretary and Treasurer

v

Boston, Mass., May 18, 1953

The Board of Directors has de¬
clared

CITY INVESTING COMPANY
per
broad

The

May

street,
of

Board

20,

1253,

dividend of

■51/2%

york

new

Directors

declared

$1,375

Series

of

the

this

4,

y.

n.

regular

stockholders of record

quartevly

The

20,'

May

July

1,

the

on

of

June

of

1,

on

'

outstanding

record

at

DECLARES

company

the

of

20

Common

Secretary.
50^ PER SHARE

on

cents

REEVES BROTHERS, inc.

of

On

Stock

business

on

1953.

A

FRAHER, Secretary.

June

15,

1953,

share

stockholders

to

June

1,

of the

by the Board of Di¬
rectors out of

COMPANY

1953. The transfer books

Company will not be closed.

earnings, payable

CORPORATION

declared

A
The

cents

of

Board

share

and

(15c)

(without

payable

19,

extra

has

value)
15,

declared

dividend

share/on

per

par

June
June

record

Directors

an

to

has

G.

at

REGNER, Secretary.

pay¬

1953

19,
of

in

every year

since 1899

1, 1953.
BP

JOHN HUME

^

share

declared,

June

stockholders

1953.

1,

been

able

of

Secretary

THE YALE & TOWNE MFG. CO.

W

W W W '

Secretary

Stock

Common

the

on

Corporation,

stockholders

quarterly di¬

regular

vidend of 3 7 Yi t per

and

Cash dividends paid

June

STOCK

a

fifteen

the capital stock

the

of'

1953,

of

Executive Vice-President

of

stockholders

to

record at the close of business

Greentburg, Pa.

10, 1953.
F. DUNNING

the Common Stock

on

1953

1,

June

Directors today

Company, payable July

of the

CONTROLS COMPANY

the close of business

dividend of 47 cents

a

share

per

ROBERTSHAW-FULTON

of

Board

The

COMMON

to

V.

May 15, 1953.

record

close of business

the

June 10, 1953.

1953.

Public Service Electric
New

York

Central

Railroad

The

Company

The

Meeting of the Stockholders of
York Central Railroad
Company, for
the election of Directors and of three
Inspectors
of Election and the transaction
of such other
business as may be
meeting,

J

will

and Gas

WALTER H. STEFFLER
Secretary & Treasurer

Southern

Company

May 14,1953.

will be held

in

the Ball

Edison

NEWARK. N. J

DIVIDENDS

of the

Room

Stockholders of record

at

3 o'clock P.

April 17, 1953, will be entitled
meeting.
RUSSELL

T.

M.,

ORIGINAL PREFERRED STOCK
DIVIDEND NO. 176

on

QUARTERLY

to vote at such

Cyanamid

declared
e

ghty-seven

(81V2<t)

per

Company

quarterly

a

$1.17'/a

share

on

today

dividend

one-half

and

the outstand¬

1953,

Experienced

and

energetic,

to

the holders

record

2,

the

at

of such

close

The Board of Directors has declared

the

following dividends;

1953.

regular quarterly dividend
of 10 cents per share on the 40(5

dividend

banking, stock exchange
or

institution.

address Box

Please

R521, Commer¬

&

Park

Financial

Chronicle,

Place, New York




on

the 4.70% Cu¬

$1.40

Dividend

a

share

on

the Common

Stock,

able

on

or

30,

a

quarterly dividend of fifty

(50^)

per

share

the out¬

on

standing
shares
of
the Common
Stock
of
the
Company,
payable
such
of

26,

1953,

stock

business

of

record

June
R.

7
New

York.

the

to

May

S.

2,

holders

at

close

1953.

KYLE,

19.

the

of

1953.

A

dividend

share

on

of 20 cents per
the Common Stock.
are

payable

on

June 1,

1953.

on

BORDEN R.

Secretary

on

GEORGE H. BLAKE

June

30, 1953 to stockholders of record at
the close of business

Vice-President

May 19, 1953

authorized the payment of the
following quarterly dividends:
50 cents per share on
inal Preferred Stock;
27

cents

per

Orig¬

share on Cumu¬
Stock, 4.32%

Series.
The above dividends

record at the close

President
Both dividends

DIVIDEND NO. 25

The Board of Directors has

lative Preferred
pay¬

before June 30, 1953

holders of

of business

DIVIDEND No. 44

1953, all

ican Cyanamid Company today de¬
cents

June

cial

the

on

COMMON STOCK

clared

firm

share

ending June
to

The Board of Directors of Amer¬

ment

the

have been declared for the quarter

DIVIDEND No. 2
A

Cumulative Preferred Stock.
common

seeks connection with invest¬

on

Preference Common Stock, and 40
cents

PREFERRED STOCK

stock

business

of

a

share

a

cents

ing shares of the Company's 3J/2 %
Preferred Stock, Series
A
and
Series B,
payable July 1,

of

share

mulative Preferred Stock, 35 cents

of

Cumulative

June

a

4.08% Cumulative Preferred Stock,

dividend

The Board of Directors of Amer¬
ican,

CUMULATIVE PREFERRED STOCK

4.32% SERIES
Dividends of $1.02

preferred

Security Analyst

DIVIDENDS

COMPANY

WALKER, Secretary.

SITUATION WANTED

Company

_____

Hotel Ten Eyck, 87 State
Street, in the City of
Albany, N. Y., on Wednesday, May 27, 1953, at
12 o'clock Noon, Eastern
Daylight Saving Tirpe.

25

California

AMERICAN

lawfully brought before the

i

books

closed.

Annual

The New

-

transfer

not be

Albany, N. Y., April 21, 1953.

on

holders of record at

NOTICE

DIVIDEND

May 18, 1953.

XBriggs & Stratton) i

past

July I, 1953, to stock¬

J. E. REEVES, Treasurer

BRICCS & STRATTON

per

declared

was

UTILITIES

of business.

the close

at

1953,

No. 260 of

fifty cents (50<)

quarterly dividend of 30c per
declared, payable

share has been
EDWARD

May 18,

dividend

NOTICE

DIVIDEND

13, 1953, to stock¬

close

260th DIVIDEND

J. E. 1YINS,

June 15, 1953.

this

dividend

a

of the company payable June
holders

YALE &TOWNE

June 5, 1953.

to stockholders

1953,

Directors

declared

1953,

share

per

of

Board

i

on

share on the outstanding

per

Cumulative Preferred Stock of the

payable

company,

a
quarterly dividend of 35(5
share on the Common Stock,

payable July 1, 1953 to

on

company

.

May

MEETING NOTICE

1953,

record
EMERY

DIVIDEND NO. 23

cents

the capital stock of

Company has been declared

payable

Company

May 29,

on

dividend

per

Transmission

Secretary-T reasurer

L.

The

of

216th

Charles E. Beachley,

per

are

close

Consecutive Quarterly Dividend

May 18, 1953.

quarterly dividend of twenty-five cents (25c)

bonds

June

27,

at

1953. Checks will be mailed.

DIVIDEND

in the opinion of

June

record

COMPANY

record at the close of business

COPELAND, Secretary

charges at least sufficient at all
times to provide revenues to pay
the exlpenses of operation and

The
:

$.25

a

of record

the bonds.

the

at

UNITED FRUIT COMPANY

meeting held today, declared a quar¬
terly dividend of 75 cents per share on the
Common Stock of the Company, payable
on
June
12,
1953, to shareholders of
at

other

or

of

has

Corporation

of

on

dividend

of record

j*

the second

payable June

13, 1953, to stockholders of record

The Authority is authorized to
rentals

this.

payable

stockholders

redeemed either at the op¬

tolls,

of

E. F.

cash

at the close

as

divi¬

the outstanding Common

on

PITTSBURGH

maintenance of Authority projects
and debt service requirements of

,

Secretary

of

collect

quarterly
share

Stock

CONSOLIDATION

25,

1953; also 85<

the Common Stock

on

interim

on

July

a

May 26, 1953.

the Preferred Stock

1953, to stockholders of record
of business

■

..,

be

The Board of Directors of

the Authority or through
operation of the sinking funds.
,

per

stockholders

ac¬

redeemable, be¬
ginning on June 15, 1958, at prices
ranging from 104% to 100%. The
redemption prices will apply to
tion

on

to

business

a

con¬

a

sinking fund .for the

will

Treasurer.

day

$1.12'/2

bonds are

bonds

A

of

business

of

DONALD

celerated retirement of the bonds.
The

stockholders

to

close

the

Stock—$4.50 Series

on

both

of record at the close of business

fixed
annually
a

commencing in 1958, calculated to
retire

1953,

at

Wilmington, Delaware, May 18, 1953

re¬

pay

payments

the

of

to

Checks

pany's capital stock, payable June 15,1953.

River

certain

bonds

1953.

12,

dend of $1.00 per share and an additional
dividend of 25 cents per share on the Com¬

FOX FILM CORPORATION

on

business

25

provide

the

payable

declared

a

Philadelphia, - Pa., and
Gloucester, N. J., and for deposit

June

on

The Board of Directors has declared

share has

a

ROBERT C. SULLIVAN,

at

of

outstanding Common Stock of the

TWENTIETH CENTURY-

May 29, 1953.

Delaware

construction

REC0R0S

TEXAS GULF SULPHUR COMPANY

today by Kennecott

Corporation,

26,

record

Authority to provide
the

MGM

•

Company, payable on June 30,
1953, to stockholders of record at the close of

1957-

between

•

beei). declared

NOTICES

June

the financ¬

by

used

NOTICES

May 15, 1953

e. I. DU pont Dt nemours & company

.

from

THEATRES

May 20. 1953
The Board of Directors has dedared
a dividend of 20c per share on the

Street, New York, N. Y.

Twenty-five cents ($1.25)

to

proceeds

•

PICTURES

business.

CORPORATION

with

Boston.

Co. of Des Moines.

DIVIDEND

group submitted a bid of
for the bonds resulting in.a

Net

>

incorporated:

MGM

the

NOTICES

A cash distribution of One Dollar and

net interest cost of 3.435% to the
Authority..
<

;

loew'S

152

at

in

KENNECOTT COPPER

previously with T. C. Hender¬

The
par

offices

engage

Vice Pres. & Treasurer

Chronicle)

&

yield 3.36% and the
serial
bonds are priced to yield
from 2.15% to 3.25%, according
to maturity.

-

securities

to

NOTICES

111.—Clarence

son

15,

priced

Beech

O.

CHARLES C. M0SK0WITZ

affiliated

now

Morton

i

bonds

term

North

Raymond

mailed.

was

1973, inclusive.

102V2%,

Salyer has opened

DIVIDEND
DIVIDEND

serial bonds dated May
and

John J.
Strauch

in

3%

4%,

—

—

with

now

DIVIDEND

Salyer Opens
Wyo.

'

(Special

ROCK

The
offering consists of $60,000,000 of 3%% term bonds dated
and

R. O.
CASPER,

J.

Howard

and

Copper

1983

Chronicle)

Joins B. C. Morton

Inc.

May

Financial

Livingston, Williams
Co., Inc., Hanna Building.

are

Pennsylvania and New Jersey.

Brothers; Harriman Rip¬
ley & Co., Incorporated; Drexel
& Co.; and Halsey, Stuart & Co.

•

to The

CLEVELAND, Ohio
Socotch

Lehman

.

Livingston, Williams

'

Pennsylvania
except estate,

New
Jersey,
inheritance, succession

$100,000,000
Authority

jointly

local

and

bonds

group

and

imposed

business

(Dela¬
ware River Bridges) is being made
by ■ a
nation-wide underwriting
303

rectly

Port

revenue

existing statutes and from;

state

59

are

pay¬

able June 30, 1953, to stock¬
holders of record June 5, 1953.
Checks will be mailed from the

Company's office in Los An¬
geles, June 30, 1933.

June 19, 1953.

PUTNAM,
& Treasurer.

19,03

I

,1953/

,

p.c.hale ,Treasurer

50 YEARS of SERVICE
to NEW JERSEY

May 15, 1953

<■

The Commercial and Financial Chronicle...

«0

(2244)

living shall not be lowered. On
other
hand, the "strong

BUSINESS BUZZ

the

economy"

•

will

•

•

TyPtfVG-

(rem the Nation's

A

-v*

ft

plan, say, for a maxi¬
corporation tax rate of say
or
a
diminution on any

mum

great scale of the burden of
governmental costs. Presumably
officials mean one day to cut

SCIK)0C

W

xJ.1 vtv

Capital

does not necessarily
the Administration

ever

42%

Behind-the-Scene Interpretation!

that

mean

J *•'

Tb

Thursday, May 21, 1953

^ V"

that cost.

WASHINGTON, D. C.—What
President Eisenhower and his
chief lieutenants see themselves
doing is this: They are fashion¬
ing a great key which will un¬
lock the door barring the broad¬
cast look at the future of what

the United States
as far
perhaps two genera¬

will happen to

of America for a period
ahead

as

tions.

This key to the future

consists

-of the broadest imaginable

of

view

military

the

defense

and

re¬

program

require¬

economy

ments of the semi-garrison state.

half in war, half in peace
.situation is something which the
Such

a

Eisenhower Administration

embraced
of

America

tuitous

accident

ture

time—for

has

the sober likely fu¬

as

barring for¬

—

in

the

mean¬

years.

So, as the President himself
his military and
'highest civilian advisers are
»ow going to try to determine
what kind of a semi-garrison
:

has indicated,

United

the

.state

States

Review Economic Capacity

review
The
military
necessarily seeks to
persuade the civil officials to
agree to provide the maximum
number of men, guns, ships, air¬
is

It

enough

not

to

alone the strategic concept.

way

officials

and may or may not

the "Chronicle's"

Every phase of American life

f will be affected by this review.
'

j TJt will determine what chance a
i youth has statistically of being
from

whisked

^service,

to

the

It

determine

may

whether the United States shall

■^pend $40 billion or $35 billion
how many billions a year for

garrison

*

state

indefinitely.

This review—as the Eisenhower
team

it

sees

will

—

the

answer

Question of whether the nation
man expect its business ever to
retain,

much

as

profits,,

what

or

half

as

part

incomes individuals

its

of

of

their

States

themselves

allow

be

to

The

same

officials must also
"She certainly

mobilization
and

and

certainly

for

steel,

ministration

tin, zinc, and a literally
staggering list of commodities.

fense

lie view

First

phase of this review is
or

So

con¬

to

cept of the military establish¬
In

ment.

lay

language

"will

a

be

or

they

guns, ships, and aircraft
"fee United States shall need.

many

have inherited.

They have also
found the planning in their
opinion miserable.
They also
mean to
improve it by the best

As has been rather

widely re¬
ported in the press, this is the
job which Mr. Eisenhower pro¬
poses to give to his new Joint
Chiefs of Staff, headed by Ad¬
miral Radford.

that

the

named

It

new

as

presumed

the

reason

the

is

business methods.

President

Joint

throughout the entire cold

is

so

the

terrible

new

could

States has
as

to what

entail.

cept

distilled

the
an




expected

to

use

least

on

a

among

so as

sec¬

to keep,

pilot plant basis,

no

In

appropriating has

great cause for the

some

sectors procure¬

In some fields

officials

military

have

been

place contracts;
in others they have lagged.

more

Actually, according to spokes¬
for both officials/ there

-

a

time-consuming.

possible mobilization base.

men

over

imbalance in military prepara¬

production going on the widest

to

eager

Want "Strong Economy"

is

which

ing

place on the military demands

up

in

shortest time

the

a

inventory of military hard

goods, but is seeking only
anced inventory and

He also

is

tenance

of

a

for

the
or

production.

widest
war

civilian

the

unlimited

will

side

materials

and

manpower—will be the mainte¬

bal¬

nance

said to favor main¬

mobilization

They have

years.

aircraft

and

inadequate

"mobilization

opinion

base,"

or

indus¬

trial capacity to produce in
of all-out war,

con¬

dundant

in

grotesquely

f

there

will

lacking

be

This
a

re¬

fields

some

other weapons.

basically

case

is seriously

and

respecting
means

of

There is

ficials

mean

omy"

possible

production

strong

a

no

of

commodity prices, real
sales, and business
—membership in the Foundation,
market,

estate activity,
which

includes

issues

10

of

"Cycles" a 56-year cyclical pro¬
jection charge and a choice of one
of three 1952 issues of "Cycles,'*
$10—Department C-5-21, Founda¬
tion
for
the
Study of Cycles,
9 East 77th Street, New York 21,
New York.

Effects

of

Taxation:

Invest¬

by Individuals—J. Keith
Butters, Lawrence E. Thompson,
and Lynn L. Bollinger—Division
of
Research, Harvard Business

School, Soldiers Field, Boston 63,
Mass.—Cloth—$6.25.
Role of Mergers
of

Firms,

Large

Weston

—

in the Growth
The — J. Fred

University of

Califor¬

nia, Bureau of Business and Eco«»
nomic

Research, Berkeley, Calif.—
cloth—$3.50.
•*

is

With Bonney & Moor

by

that

a

WORCESTER, Mass.—Raymond
B. Sideckas is now connected with

Bonney & Moor, Inc.,

390 Main

Street.

economy.

"strong

the

econ¬

standard

TRADING MARKETS

of
National Company
Riverside

/

/

Gorton

%

%

FOREIGN SICURITIES

Crosse &

i

:

t

firm

I

Trading Markets

I

I

•

PARL MARKS & pa INC,

I

I
I

I

I

•

%
%

80 8mi Stmt I.

,

tar Yort 4, M. T.

Blackwell

Polaroid Corp.

l

$

tatotyp* NT f-971
mm'mam

&

B

Caribe Stores

American Piano A & B
Lisbon

Co.

Revillon Freres

,

Washington Brick & Lime

LERNER & CO.
Investment

Securities

*

10 Post Office Square,
Telephone
HUbbard 2-1090

m m m mm

A

Pfds.

i

Id: HAsam 2-0090

mm mm mm

Fisheries

I

foreign Securities Specialists

•

Cement

Pew

George E. Keith Pfds.

%

m.mmmm+**'"

>

(Special to The Financial Chronicle)

secret that what of¬

that

revision

Cycles—Reports projecting into
future newly discovered cy¬
cles in natural science, the stock

the

,

guiding philosophy of the
civilian planning — the
curbs

argument. Mr. Wilson is said

mere

Com¬

The

to be opposed to merely build¬

in

They have found that to their
thinking, in certain phases the

the

United

ihe weapons of World War H

ondary producers

procurement of modern aircraft.

at the command
were

many

solete

framed when the oper¬

military

spread

ment has obviously been faster
and
easier;
in others,
more

This

been itself

Inventories

found heavy procurement of ob¬

with Russia will

war

weapons

of fhe

of

The older strategic

was

ating

since

years

brains

be

many,

strategic concept.

several

military

tion.

orders

Book

330 West 42nd Street, New
36, N. Y.—Cloth—$9.50.

ments

while Mr. Flemming wanted to

out

Reed-McGraw-Hill
pany,
York

authoriza¬

contract

and

tions
tions.

sadly out of balance.
They
found more soap than an Army

Officials think this revision
is important.
Reputedly it has
been

imbalance.

a

concen¬

one-half

Adjustment of Property Losses
Second - Edition — Prentiss
B.

—

from past appropria¬

are

military
leaders, free of routine duties,
can begin to huddle on a
revi-

idon of this

war

planning, officials have found

Chiefs

three months before the retire¬
ment
of
the
present
incum-

t>ents

Foremost of their headaches,
these officials see it, is that

Wilson

Congress

other

The

by

production in primary or
normal producers of weapons
and get the largest volume pro¬
duced of military hard goods,

at

hower Administration can con¬
fess is that they have informed
themselves of the broad outlines
of the military
planning

fought by land or by
by air, and where, and
In what proportions, and how
sea

year.
come

reports,

appropria¬

new

be made

to

one-half

only

from

come

will

to these
wanted to

trate

'

As of the present moment all
that the officials of the Eisen¬

will
this

Mr.

with

Have Informed Themselves

to whether it

as

—

1954,

fiscal

in

S.

tions

According

wants

tion.

the United States

guess

modified

Arthur

Director

and

fense Mobilization.

economies—status quo on
and taxes inherited
from the Truman Administra¬

-shall have to fight with Russia
If war is forced by the enemy.
That means they have got to
make

this

tails, has provided the money.
Hence, it is said that of funds

Ad¬

spending

going to try to figure out what
a war

keep

Administration

able to keep up with de-

never

Flemming of the Office of De¬

once

the

the past have
asking for more
appropriations than they could
spend. The bewildered Congress,
'

of

been

to be actually spent for defense

no

son

de¬

the

ministrations

always

reports of the alleged argument
between Defense Secretary Wil¬

some

this

that the military men are

kind of

smaller

War II the Ad¬

Since

former.

foundation for the press

be

the grand strategic
concept has been evolved.
upon,

'

means

a

than

proposed garrison state

propriation of funds for defense
and foreign aid, especially the

Mobilization Base

ministration may desire to settle

"Strategic Plan"

of the "strategic plan"

to

program

managers

new

have discovered is this over-ap¬

Fundamentally there is said to

General

which the

the

of

simul¬

course

See No Disagreement on

Eisenhower has worked out this

copper,

Another of the serious head¬
aches

there will be cut¬
backs in production not only
where production — out of bal¬
ance—is far ahead of goals, but
in areas where existing capacity
is superfluous.

vast, long-range, strategic con¬
cept. They cannot cut and there¬
by de facto commit the Ad¬

jpets,

Cut Over-Appropriation

taneously

Humphrey tell the
Senate Foreign Relations Com¬
mittee that they cannot balance
the
Federal
budget in fiscal
1954, what they perhaps don't
understand is that what they
mean is that they intend to make
until

all out war.

defi¬

serious

And of

ciencies.

Secretary

commitments

these

are

against-the- eventuality of

base

and more
acceleration

government loans to

more

there

ministration basically hinges on
this review. When officials like

no

tax

learned the 'touch system* fast!"

finance plant expansion capacity
for goals in which they think

Eisenhower Ad¬

the

goals,
of

certificates

Hence all fiscal and economic

policy of

hope to

can

views.)

indefinitely, year after
year without seeming end, to fi¬
nance this semi-garrison state.

It will deeply affect the
market ip a large degree for
•everything, from apples to zip-

retain.

coincide with

own

taxed

to continue to live as

or

civilian.

m

school

re-

trying to figure out how many
dollars will the people of United

bread, gasoline and chemicals,
textiles, and so on, can be di¬
verted regularly into this eco¬
nomically non-productive busi¬
ness of maintaining the indefi¬
nite "posture of defense," as of¬
ficials put it.

stand-

any

fleet the "behind the scene" inter¬
pretation from the nation's Capital

now

are

in

of things to come.

(This column is intended to

drastically by the civilians, for
military want all they can
get, and expect to ask for more
than they will get.
civilian

report on what
they are doing

a

prediction

spondent's

the

So

think

and why, but- is not,this corre¬

that did not have to be cut down

must

| ard of living.

"

The above is
officials

consider how much in steel and

f

^

This Is Their Purpose

craft, and guided missiles. There
perhaps has never been a war
plan evolved by military brains

out lowering the present

is

never been able,
figuratively speaking, to per¬
suade the military to abandon
"mule artillery" while stocking
up on atomic cannon.

officials have

have to secure its defense with*

i

So far the most ardent civilian

fought, if war does come.

long as maybe 50

as

They think that the cost can
cut by some unknown bil¬
lions if after this strategic plan¬
ning the military can be in¬
duced to give up old weapons
whilst adopting new weapons.
be

jet fighters,
atomic
artillery,
and perhaps
the H-bomb, a whole new look
is
needed to determine
what
kind of a war will have to be
Now that there are

Boston 9, Mass.
Teletype
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