Full text of Commercial and Financial Chronicle : May 27, 1954, Vol. 179, No. 5328

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2,
U

ESTABLISHED 1S39

NfVfcWsfTY

MIOH.GAN

Commercial anets^
Chronicle
Re*. IT. 8. Pat. Office

Volume

EDITORIAL

There has been much talk of late about

Formerly Chairman of Chase N^t'l Bank of New York
■i-.

Points out there is
recession

particularistic situations now existing. Ap¬
praisal of the alleged state of affairs is likewise
in terms which might almost be defined as tac¬
tical rather than strategic.
All this is natural

by British exporter either

concern

ernment action

British and American

dustrial

meaning of

revolution,

government in Britain and the Ad¬
will, however, be much better

America

grasped if

page

Bank

all

Trust Company
Founded 1824

My
four

went

country

first

parts

of the world

address

the

Birmingham

10,

been quite

I wish

30BROADST,N.Y.C.

WALL

NEW YORK

11,

appear

Raw

—

Refined

—

Export0—Imports—Futures

STATE

MUNICIPAL

ahd

BONDS

Municipal,

page

by Prof. Slichter before the Wine and Spirits Whole¬

America, Washington,

D. C., May 24,

1954.

State and
1856

Municipal

Members

Bonds

Exchange

Stock

York

Stock

Exchange

Cotton

York

New

Exchange

Commodity

& Foreign Bonds

Exchange,

Inc.

of
Trade
Exchange

Board

New Orleans Cotton
and,

THE NATIONAL CITY BANK
OF NEW YORK
Bond Dept.

Bell System Teletype NY 1-2152
*******

Detroit

Miami Beach

Teletype: NY 1-708

Geneva,

•

Pittsburgh

Coral Gables

Beverly Hills, Cal.

THE CHASE

NATIONAL BANK
OF THE CITY OF HEW

YORK

Switzerland

Amsterdam, Holland

122 Years of Service

Active

Dealers,

Markets

Banks

Maintained

and

Brokers

CANADIAN

Our Customers

BONDS & STOCKS

SECURITIES
Orders

Executed On

Canadian Exchanges At

CANADIAN

DIRECT WIRES TO

MEMBERS

Regular Rates

DEPARTMENT

MONTREAL AND TORONTO

NEW YORK

Gas Company
COMMON

Goodbody & Co.
115 BROADWAY

Arkansas Western

All

Teletype NY 1-2270

Members N. Y. Stock Exchange

PERTH AMBOY

•

Hollywood, Fla.

RE 2-2820

American Stock Exchange

N. Y. Cotton Exchange Bldg.

Chicago

Bond Department

Exchanges

other

NEW YORK 4, N. Y.

♦ Members N. Y. and Amer. Stock Exchs.

BRIDGEPORT

generally misunderstood. In the third place,
analyze specifically the question of whether

H. Hentz & Co.
American

50 BROADWAY, N. Y.
DIgby 4-2727

Established

T.L.WATSON &CO.
Liquid

the evi¬

In the second place,
analyze briefly the nature
the recession which, I think, has

in the Pictorial Section starting on page 23.

Commission

sugar

examine

at the 19th Annual Meeting of the
Association of America at Dallas, Texas,

★

Sixty Years of Brokerage Service

to
5, N. Y.

ISSUE—Candid shots taken

of the Investment Bankers

MABON & CO.

STREET

address

♦An

salers

Net

LAMBORN & CO., Inc.

wish

that the decline in business is

Continued

Ambassador Aldrich at the Annual Banquet of
Chamber of Commerce, Birmingham, Eng., May

1954.

call

Broadway, N. Y. 6

a month ago
been too pes¬

Preferred and Common Stocks

115

strong probability

I wish to
of

Chicago

Correspondents in all

flattening out.
H. Slichtei

Sumner

Despite the problems we are all faced whh today, the
Continued on page 44
♦An

dence

those

some¬

remarks will be divided into
principal parts.
In the first

place,

which

doubt

State and Revenue Bonds

Complete^ corporate and
personal trust facilities

may

simistic.

There

the hardest."

It is

quarter of this year.
turn out to be cor¬

rect, but there is

saying that "the first hun¬

New

All Corporate

view

That

prise and the will to take the first difficult steps which
transformed not only itself but a large part of the world.

★

—

begin turning

time in the third

out to have

Complete Brokerage Service
U. S. Government

would

ness

prediction of

are

judge

the

years

bottom of
the recession is behind us, not ahead
of us. As recently as a month ago, I
ventured the prediction that busi¬
that

turn

did

markets
one

difficult

possible

quite

hundred years
of industrial progress. It was Britain
that had the genius and the enter¬

Winthrop W. Aldrich

9 to May

★

upward or downward.

that

IN THIS

May

that

will

through

Texas Group

Chemical

the movement

the diffi¬

common

PICTURES

horizontal

transformation of
great
industrial

which

of Britain

dred

to acquire a full understanding
taking place. Secretary Stimson
on

whether

pioneering work in the world's
industrial development.
There is a

that that cause be clearly

Continued

Indeed, the movement of business

flattening out.
become

cult

we are
now

has

contributed

multiplying that the decline in business has

that American industry

sure

ters

point, though, will be badly missed if the
is not recognized that the 1931 situation
that which now obtains have a common basic

of what is

been

the days

into

Introduction

/
are

generally is profoundly grateful to
Birmingham in particular, and to
the other important industrial cen¬

The

It is important

world is the

power.

also viewed in historical

These things have their roots deep
in the events of the past.
Some commentators
have already been citing the efforts of then Sec¬
retary of State Stimson to persuade Britain to
take bold steps when Japan went into China in
1931. Within limits a parallel exists, of course,
and possibly something is to be gained by link¬
ing the two in current discussion.

cause.

much from

factor in the rapid

perspective.

fact

gov¬

of Matthew
Boulton and James Watt, was a key

the

Churchill

and

economy.

unity.

Birmingham

which

to
so

ministration

are

Gives data on recent
business development, and lists as striking aspects of
current recession:
(1) failure of prices to drop; (2)
steadiness of capital i outlays.
Stresses technological
research as factor in optimism on intermediate outlook.

BIRMINGHAM, England.—This city has always had a
particular significance for us in America. For the in¬

differences

they

score

probably

be less than in previous quarter.

Signs

whatever

understood if

the

because of the state of U. S.

predictions slightly,
may have been

during the second quarter will

in inventories

serious business

Concludes vital factor in security of free

enough, and it undoubtedly has its place in sizing
up accurately and realistically what is going on
today.
between

Harvard University

of 1954 and the reduction

reached in the first quarter

S., and holds the economies of free
have been strengthened.
Sees no cause for

nations

very

likelihood of

SLICHTER*

finds that bottom of the recession

now

Dr. Slichter, in revising his previous

.■

S., Ambassador Aldrich reviews British export
and calls attention to the Randall Report as
indicating liberalization of American import policies.

strictly contemporaneous terms. Ex¬
planations are sought in what is taking place in
the world at the moment, and to find motives in

arisen

•

progress,

situation in

have

•

and

tendency of the general public is to interpret the

The drift of world affairs and the

Stressing the mutual economic interests of Great Britain

As is usual in such cases, the

particular.

SUMNER

Lamont University Professor,

U. S. Ambassador to Great Britain

and attitudes toward the Kremlin and its associ¬
ates in

By WINTHROP W. ALDRICH*

ening breach" between Britain and .the United
States concerning international policies in general

Copy

Recession Been Reached?

Economic Progress

"wid¬

Has the Bottom of the

British and American

WMs We See It

Cents

Price 40

7, N. Y., Thursday, May 27, 1954

New York

Number 5328

179

STOCK EXCHANGE

1 NORTH LA SALLE ST.
CHICAGO

Pomeoon Securities
6rporatio?i

IRA HAUPT & CO.
Members New

York Stock Exchange

and other Principal Exchanges

40 Exchange Place,

New York B, N. Y,

111 Broadway,
WOrth 4-6000

Teletype NY 1-702-3

WHltehaU 4-8161

Boston

N. Y. 6

Teletype NY 1-2708

Telephone:

Enterprise 1820

The Commercial and Financial Chronicle.

(2302)

The

position and trade in

the following

Groups

a different group of experts
advisory field from all sections of the country

participate and give their

reasons

for favoring

(The articles contained in this fornm

Industrials

they to be regarded,

are

TODD

Natural Gas

as an

offer

Members

New

York

and Other

recent

Stock

"Argus" has

Exchange

the

name

very

much

world.

camera

also

The

com¬

t i

ing and

management

Associate

120

each

Member

Stock

Broadway, New York

BArclay 7-5660

standards

WOrth 4-2300

Teletype NY 1-583 and NY 1-40

its

Specialists in

Since 1917,

for

Members
New

Stock

York

American

Stock

Exchange

Todd

Exchange

BROADWAY, NEW YORK 5

Gas Company

Commonwealth Natural Gas

Company
Dan River Mills

Scott, Horner &
Mason, Inc.
Lynchburg, Va.
Tele. LY 62

LD 33

Since 1932

Specialists in

VIRGINIA—WEST VIRGINIA
NORTH and SOUTH

CAROLINA

the

largest

and

one

world;

the

quarter million
It
retails
at

ducts

are

it has

picture
has

movie

field;

camera

motion

The

new

model still
a

it is

and

program

likely

cameras

dnd

camera

movie

and

picture projector will be

introduced.

RICHMOND, VIRGINIA
Bell System Teletype:

RH 83 & 84

Telephone 3-9137

War II and today is

the

one

best

industry.

tures

and

recognized

lens

makers

Argus

practically

lenses

all

does

manufac¬

its

own

considerable

amount of

military business, prin¬
cipally in optical instruments such
as
are
found on gunfire control
devices
and
telescopes used in
night
operations
in tanks and
other military vehicles.
This
equipment is highly technical and
is built to extremely high preci¬

Write for Circular

the

sess

■.

its

sales

exception
the

which

spent

merchandising.
been

Its

point-of-sale
has

outstandingly effective.

All

the

officers

are

young,

ener¬

sion

standards.

types
will

not

New

electronic

gunfire

control

interfere

with

systems

the

com¬

pany's
new

cal

common

military business as this
equipment has standby opti¬

instruments

case

elec¬

the

406,917
shares.

outstanding

new

high of

over

$22

million, and earnings, despite
$1 per share of excess profits tax
payments,

should

amount

least $3 per share.
the
60

have

present
cents

nancial

modest

only

The great im¬

company's fi¬
which has been

under

the

management, should
a

the

position,

experienced

and

amount

annually.

provement

Dividend pay¬

been

rate

present

scon

reasonable

permit

payout

earnings.
New

and

cameras

projectors,
both still and motion picture, will
undoubtedly be introduced and
should further enhance
materially
the company's sales and

potential.
dications

There
that

earnings
strong in¬

are

under

the

present

management's leadership the
company
pense

has

grown

the

ex¬

of its competitors and, with

the small,
compact and

highly ef¬

the

future

aging.

Members New

York Stock Exchange

25 Broad St., New York 4, N, Y.

pro¬

George C. Astarita
the
It

emphasis
is

believed

largest factor in the
and

being

the

easily
Coast, are sold direct
realized. Argus
to dealers
Company common
throughout the United
States, Canada, and internation¬ stock is listed on the American
ally. In Metropolitan New York Stock
Exchange.

Phone: HA 2-9766

Tele. NY 1-3222

the West

111

Investment

Branches
Bankers

Broadway,N.Y.6 COrtlandt7-5680

upon

the

Trading Markets

hormone

sex

second

third

GENERAL

largest in the production of cor-'
tisone. Schering,
a
former Ger¬
man

company, was

the

United

1942

over

sales

over by
Government

amounted

PANTEX MANUFACTURING
SANDY HILL IRON & BRASS

REEVES SOUNDCRAFT

John R. Bofand &
30 Broad St.,

B0 9-3242

•

A chemical and
pany

metallurgical

engaged

ENERGY
•

the

com¬

ATOMIC

program.

Nelco Metals Inc.,

wholly owned

subsidiary, manufactures high

cium

growth go hand in hand..
Earnings of 91 cents per shEtre

under

contract

pu¬

metallic cal¬

rity magnesium and

and

of the nature of the busi¬
First quarter earnings of 23
cents versus 22 cents for the same

Teletype NY 1-4487

LIME CO.

S3
million, as opposed to
$19 million in 1953. Research

cause

Co., Inc.

New York 4

NEW ENGLAND

less

for 1953 may not appear
large but
pharmaceutical companies
sell
high in relation to earnings be¬

CREDIT, INC.

(Prospectus Available)

taken

States

with

the

ATOMIC ENERGY COMMISSION.
•

Company
four

earned

years.

$11.40

Dividends

period $2.25.

past

paid

same

ness.

period last year were recently re¬
ported.
The stock at 123/4 and

yielding 3.9%

nual dividend is

its

cent

an¬

in its classification.

capitalization consists of
1,760,000 shares of common stock.
items

exceed

total

the

balance

current

request

Dayton Haigney & Go.
Incorporated

Sole

Cash

Memorandum

reasonably priced

FEDERAL

BOSTON

STREET

10,

MASS.

sheet

liabilities,

with net working capital amount¬

ing to

balance

permits

than

sheet

the

financing at

$8.5

million.

such

possibility
some

strength
of senior

future date for

why the
Schering is selling at a

low level is to be found in

legal

suit filed against the company
by
the Attorney General of the
United States. This suit
compels

Continued

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

REQUEST

applied
for prior to Jan. 1, 1952. The case
is still pending bui, in the com¬
pany's opinion, will be resolved
;

Na Q. Ba
OVER-THE-GOUNTER

expansion purposes.
Perhaps one reason
stock

Schering to grant licenses under

Brokers

1897

Tokyo—70

bulk

and

items,

ethicals.

all of its patents issued

Office

ethicals,
proprietaries,

tinued

should

Established

Home

duces

Argus management has built,, con¬
growth

This

Argus products, except in the
Metropolitan New York area and

the

encour-

ficient

which

Securities Co., Ltd.

for

tronic failure.

organization

publications

Japanese securities

/ Yamaichi

and the

most

than

In the current fiscal year, sales

should rise to

....

rapid in

outlook

field

Argus Camera's management is
among its more important assets.

•....

write

our current

011

past 25-

years

drug

program

for

Its

has

the

Argus

considerable

"•■'•/.v

Call

rule.

been

ing and promotional activities, in
addition

growth

and

advertis¬

offices

in Japan

budgets about 5%
national

branch

our

Opportunities

large

Schering Cor¬
poration is no

the right to

national

investment

growth factor,

Druggists
about its
the

wires

is
re¬

sult of new product development,
pharmaceutical
companies
pos-

company

The company

ments

The company got into the opti^cal lens
business during
World

the

UNILEVER

hard

reserves

Direct

Exchange

The
security I
like
best
Schering Corporation. As the

pe¬

Argus

NY 1-1557

Schering Corporation

chains.

company

active research and devel¬

that

in the still

projector.

motion

CRAIGIE&CO.

with

St., New York 6, N. Y.

HAnover 2-0700

Stock

sales outlet

new

push

Rector

Exchange

Birmingham, Ala.
Mobile, Ala.

Springs, Colo.
York

York Stock Exchange

Members American Stock

New Orleans, La. -

getic, extremely able and com¬
/during the war and on March 11,
$66.50, has an f3.5 lens, built-in pletely devoted to promoting the
1952, was sold to the public at
flash synchronizer, and gear-con¬ company's profitability. The pres¬
171/2. Now available at a 4% point
trolled shutter with speeds up to ent management was installed
discount from the original offer¬
1/300 second.
Separate telephoto in 1949, prior to which time the
ing price, the stock appears to be
and wide angle lenses are avail¬ company's record was unimpres¬
exceptionally attractive for long
able at $57.50 each for this cam¬ sive. Since 1949, Argus has made
term investment. All of the com¬
era.
The "Argus A4" 35 mm cam¬ outstanding progress from both a
pany's plants are located in New
sales and an earnings standpoint.
era, introduced early in 1953, re¬
Jersey, where nearly 1,300 per¬
tails at $32.50. It has an f3.5 lens, Sales
have
increased
steadily sons are employed.
shutter speeds up to 1/200 second, from $5.3 million in 1950 to $19.4
In addition to
possessing an ex¬
double
last
exposure
preventor,
a million
year.
The
profits cellent
management, Schering is
picture-window view-finder, and progress, however, has been hid¬ noted for its extensive research
a
built-in
flash
synchronizer. den under the burden of excess activities. The pharmaceutical in¬
Other products are the 35
mm profits taxes.
In each of the past dustry expends some 4 to
5% of
"Argus C4" with an f2.8 lens, re¬ three fiscal years ending July 31, sales on research,
whereas, Scher¬
tailing
at
$84.50, the 620
size the company's tax rate has been ing spends in the neighborhood of
"Argus 40" at $37.95, and the 620 well in excess of 70%; but income 8 to 9%.
Such
relatively large
size
taxes
"Argus 75" at $14.95 and before
expanded
fro m expenditures have proved their
"Super 75" at $22.50. The Argus $1.90 per share in 1950 to $7.65 worth in that 65% of 1953 sales
projectors, retailing at $48.50 and in 1953, or over four times. Net was derived from products devel¬
$66.50, outsell all other projectors income after taxes has not quite oped in its laboratories and intro¬
of their type. All of Argus' proddoubled—from $1.05 to $1.96 per duced during the past five years.

eventually

•F. W.-

sold.

been

selling

camera

opment
MUNICIPAL BONOS

pro¬

jectors for projecting 35 mm film.
The "Argus C3" 35 mm camera

have

Alabama-Tennessee Natural

direct

amount

New

serve

become

enthusiastic

Argus

sell

300 watt blower-cooled slide

over

Trading Markets

line.

film, but most emphasis is
placed on the 35 mm cameras.
compahy also manufactures

The

Colorado

Members

Under

over

should

association

believed

cameras.

intends

strong

Tel. REctor 2-7815

American Furniture Company

time

Argus

new

A*exanaer

competitive position with those
offered
by other manufacturers.
The cameras presently manufac¬
tured are for either 35 mm or 620

is
120

turn

drug stores and
of

Supply

size

Jfo pONNELL & CO.

drug

highly effective

and each item

Rights & Scrip

stores.

from

161

United

retail

these

cameras

Supply

companies
States.

drug
the

year,

agree¬

serves

wholesalers

riod

Members New

ASTARITA

the agreement, the Argus Camera
line is being made available to

$14.95 to $84.50
is

which

47,000

price range of
varies

past

These

The

line.

the

this

Boettcher & Co.,

;

into

made

Within

throughout

are

Steiner, Rouse & Co.
■

notable

company
signed an
with the Druggists

wholesale

throughout
the

line

and

been

Corporation

intain/ed

its

get

outlets

has

direction.

product.
quality

High

Exchange

retail

can

1920

Bought—Sold—Quoted

19
GEORGE
*

ment

man¬

Louisiana Securities

Corporation—George C.

Investors'
Research
Dept.
Amott, Baker & Co., Inc., New
York City.
(Page 42).

Dis¬

somewhat

are

Astarita, Boettcher & Co., Colo¬
Springs, Colo. (Page 2)
Reaction
Motors
Company —
Stephen J. Sanford, Manager of

than those offered
A continuous
and strong effort is made by the

the

ufacturing,
be
given

Corporation

are

Todd

—

generous

progress

both

they

line.

Argus

dealers

that

merchandis¬

New York Hanseatic

American

Coast

Inc.

rado

by Eastman Kodak.

limited

the

carry

counts

pany's line is
great atten-

West

largest mail order houses, Searsand Montgomery Ward,

come

the

Alabama &

Alexander, Auchincloss, Parker
& Redpath, N. Y. C.
(Page 2)
Schering

„

sold through distributors. The two

Exchanges

years

nor

sell the securities discussed.)

Cameras,

Argus

Roebuck

Argus Cameras, Inc.

Utilities

be,

Week's

Participants and

Their Selections

particular security.

intended

not

are

and

ALEXANDER

Auchincloss, Parker & Redpath,
New York City

Pipe Lines

Forum

A continuous forum in which, each week,
in the investment and

Banks and Insurance

Established

This

Security I Like Best

Thursday, May 27, 1954

...

National Quotation Bureau
Incorporated

46 Front Street
on

page

New York 4, N. Y.

Volume 179 ' Number 5328. :. The

(2303)

Commercial and Financial Chronicle

INDEX-

Dark and Bright Sides of the
.
Bituminous Coal Industry
:

By GEORGE II. LOVE*

—Sumner

Page

President, Pittsburgh Consolidation Coal Co.

describes bituminous coal
and tells of the drastic decline in output since the

Prominent coal company executive
situation

which he

for at least
When

sylvania

Anthracite, having been confined
to

our

own

State,
has
through the
years

formed

steel

g7 employ¬

ment and

Tating
h

has

and

about

tcently and is

other .words,

when we

in ,1917

when

Love

production

primarily
in

used

obviously

and

tons

the

This is
anthracite is

continue.

shrinkage will

because
heating

and

home

the

public has been changing over to
other fuels which are more con-venient and more cheaply trans¬
ported, first to the locality of the
^consumer and finally to his base¬
ment. Some of the better anthra¬
cite
and
.a

properties
will

have

real

value

employment for

furnish

long time, but as an industry

future is

its

problematical.

When

talking of

Threatened

the decline from the ;
reached immediately after

However,
levels
the

is at far too great a pace

war

think of coal we give

These

simultaneously.
dieselization

the

are

railroads
100 million

will take some

which

from the industry, the
tremendous spread of natural gas
tons

away

what

pipelines

normally,

many

Transcontinental
■:

Financial Side of Our

Economy—August Ihlefeld

Gas Pipe

Labor-Management Scene—Robert C. Bassett

Line

- -

Bought

—.

Sold

Cites Factors of Optimism

Harlow Curtice
:'/-.

/ At

•"

•;»

...

¥#•

• : Y

—

BURNHAM AND COMPANY

Optimistic._______

Purchasing Agents More

Up.$1.5 Billion in First Quarter of 1954

.Life Company Assets

Members New York Stock Exchange
-

☆

JOHN F. REILLY, Manager

Overpopulation in East
Robert

World Problem, says

Unlisted Trading

Tuller

•

Luntz Cites Reasons Why Atomic Energy

Jerome
<

Should

NYSE

Buying

—__

New York 5
Teletype

Telephone

NY 1-3370

Dlgby 4-1680

(Boxed)

Most Fruitful Epochs"

the

15 Broad Street,

Act

•

Shows Larger Institutional

Study
of

"One

Amended

Dept.

☆

I
As

and

Bank

See

Regular Features

HYCON
Cover

(Editorial)

URANIUM

Securities

Canadian

STANDARD

Stocks

Insurance

Man's Bookshelf

Business

consider coal's territory and, third,

residual oil which is

LISBON

Events in Investment Field

Coming

ily along the eastern

Dealer-Broker Investment

seaboard.

We could hardly find

fault with

the railroad dieselization program,

from

stemmed

that

We could

asmuch

progress.

perhaps think that, in¬
coal is such an im¬

portant customer of the railroads,

could have been car¬

the program

ried

years,

Recommendations-

URANIUM

Up"

Einzig—"Sterling Exchange Rate Holds
Washington Ahead of the

From

Indications of Current Business

----

News—Carlisle Bargeron—_ 13
Activity

-1-

maintain

trading

markets in more

securities

over-the-counter

than, 250

little slower to prevent

possible chaos I mentioned
although its production has dras¬ above and, since the diesel is sup¬
tically declined, but it still main- posed to be so much more eco¬
tains second place among the nomical and such a great saver of
'States.
In 1953 we produced 94 dollars, the railroads might have
million tons in Pennsylvania com-i eased the blow to coal by reducing
pared to a high of 179 million the transportation cost of coal and
"tons in. 1918/ In spite of the fact
giving the coal industry some of
that
nationally coal production the benefits rather than having
for

Challenging

Hoadley, Jr

may

less

twenty-five States of the Union,
some 90%
of it is produced east
of the Mississippi.
Pennsylvania
was the number one producer1 of
coal

Gas Transmission

flowing into this country primar¬

bituminous,
which is used today in quantities
some
fourteen times more than
"anthracite.
While it is mined in

bituminous

—Walter

again throw this huge,
industry into economic chaos. It
happens that the industry is re-,
ceiving too many blows more or

and

chief consideration to

In
talk about

are

Chaos

Economic

the flood

Production

/ Bituminous

Texas

Pitman, Jr

great contributor to the whole
economic life of America.

in '53 amounted to only 30

^million

' *"

million

100

some

—B.

The Pockmarked

something that is produced here
in tremendous volume and is thus

produced, but the ton-

were

mage

bituminous coal

peak in Pennsylvania

redched its

•tons

George

struggling for
-its... life.. Anthracite

Business Outlook Encouraging, But

ntl y

Monetary Morality and Our Irredeemable Currency

may

re-

c u r r e

""x

Eastern Transmission

in a year's time.

year

Gas Transmission

v' —W. Randolph Burgess
*

•

of zinc.

this country

each

Texas

interested to know*
that we use far less than 25 mil¬
lion tons of all. meat products in

been

Administration's Program and the People's Welfare

million/

1/2

•

tons of lead and the same

^shrinking

Nichols

Raibourn_

Whither Television?—Paul

700,000 tons
million-tons of

lVa

copper,

You

YORK

Telephone: WHitehall 4-6551

(Canadian)—Ira U. Co.bleigh

in the Rockies

Springtime

this year, some

aluminum

cre-

busi-but it

WALL STREET, NEW

■

jPennsylin. giv-

Financing of Oil and

""Occupational Diseases of Bankers—Dr. Joe D.

.vania

I. Francis.

| Gas Ventures—Charles

coal

production was
For comparison,

our

450 million tons.
may

CASH !

into

Sky Problems in the Public

Blue

produce 80 million tons of

last year

and

obsolete*

turn

Tennessee

greats, service

single product. : We have pro-...
as much as 630 million tons

any

See

Bituminous Coal Industry

Obsolete Securities Dept.

dueed-

p e r-.

Schools—Roger W. Babson_____

Our Inefficient

fact, we produce a greater"
quantity of bituminous coal in this
country than we produce of any/
other product and we may go onv
to say that no other country in
the world produces as much of-

and bituminous.

WIND?
Cover

Business at the Crossroads—Ehney A. Camp, Jr.

The Mortgage

speak of coal in Penn¬
must differentiate be¬

tween anthracite

decade.

Love

—George

says

experiments in atomic energy will add to use of

rent

•

Dark and Bright Sides of the

threatens to throw this huge indus¬
try into economic chaos. Holds importation of residual oil,
which is displacing coal, must be limited by government act.
Sees as bright side in coal industry's outlook the» enormous.
increase in energy use, greater efficiency in coal mining, and
future uses of the mineral in chemical products. Holds curend of war,

;

-V

Aldrich

—Winthrop' W.

American Economic Progress

and

British

GONE WITH THE

.Cover

Slichter

AND COMPANY

Been Reached?

Bottom of the Recession

the

Has

llCHTMSTEin

Articles and News

the

Funds

Mutual

_____

—

Notes

NSTA

Bankers

and

Our; Reporter

—

MACKIE, Inc.

HA 2-0270

—-—

Governments

.___

___

May

Observations—A.Wilfred

Singer, Bean

—

About Banks

News

PL, N. Y. S

40 Exchange

Teletype NY 1-1825 &

NY 1-1826

has

declined

30% in
during

than

the last six or seven years
a

practically

when

period

all

booming and
-also in spite of the fact that we
are now back to a point where we
will probably mine no more coal
in '54 than in a year like 1939, we
still mine and use bituminous coal
in enormous quantities.
other

♦An

industry

address

was

Mr. Love

before the

Association,

Pennsylvania Bankers
lantic City, N. J., May

gone

in exactly

the opposite di¬
coal freight

Our

Securities

rates

some

remain¬

ability to compete in our

ing markets.
The

increase in

the

use

of na¬

and is to be ex¬
pected because the public wants
the convenience of this fuel and
our
only plea is that it be con¬
served for higher uses such as the

tural

gas

At¬

was

Continued

The Market.
The

and You—By

The State of Trade and

Wallace Streete

Weekly

Reg. U. S. Patent

Members New York Stock

New York 7,

2-9570

HERBERT D. SEIBERT,

WILLIAM

TELEPHONE HAnover 2-4300
Boston

Manchester, N. H.

•

Chicago

•

Nashville

9576

Thursday,

May

Editor & Publisher

27,

•

Schenectady

•

Pan'-Amcrican

and city

'Other

Chicago

news,

111.

etc.).

South La Salle St.,
(Telephone STate 2-0613) i

Offices:

135

office at New
March 8,1879.

Rates

Dominion

Countries,

$55.00

per

WM V. FRANKEL & CO.
INCORPORATED

Union, $48.00 per year; in
Canada,
$51.00 per year.

39 BROADWAY, NEW

YORK 6

WHitehall 3-3960

year.

Teletype NY 1-4040 &
Other

state

post

the

1954

(general news and ad¬
vertising issue) and every Monday (com¬
plete statistical issue — market quotation
records, corporation news, bank clearirsga,

Glens Falls
Worcester

1942,

Subscriptions in United States, U.
Possessions, Territories and Members

Other

TELETYPE N, Y. 1-5
•

25,

Subscription

Exchange

ST., MEW YORK 4, N.

Prospectus available
on
reqeust

second-class matter Febru¬

York, N. Y„ under the Act of

N. Y.

SEIBERT, President

DANA

Co„

Company

Office

DANA COMPANY, Publishers
Place,

Victoreen Instrument

Every Thursday

•

Drapers'

ary

Park

COMMERCIAL and

WILLIAM B.

Uranium-Petroleum Co.*

E. C., Eng¬

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

Standard Uranium Corp.*!

—

—-—

—__

Industry___—_______

FINANCIAL CHRONICLE

Spencer Trask & Co.
Albany

—-

this week.

*No article

PREFERRED STOCKS

Rohr Aircraft

Washington and You

page

—

Security I Like Best___——

REctor

BROAD

Offerings

Securities Salesman's Corner

Lisbon Uranium Corp.*
'

Security

Prospective

50% which limited our

The

specialized in

Registration.

Now

Keta Gas & Oil

Securities

Railroad

Published Twice

have

Securities.—

Public Utility

rection and increased

24, 1954.

For many years we

Reporter's Report

Bank

and

$33.00 per year.
<

4041

Publication

Quotation

Record

—

Monthly,

(Foreign postage extra.)
fluctuations in
remittances for for¬

Note—On account of the
the.rate of exchange,

eign subscriptions and advertisements must
be made In New York funds.

Direct

Wire to

PLEDGER & COMPANY
LOS ANGELES

INC*
;

(2304)

The Commercial and FinamiaF Chronicle..

*»* * <<-

4i.

billion

Hie Mortgage

Business

end

the

two

tual savings

Birmingham, AJa.

About

banks of

40%

owned

Picturing the mortgage business as having undergone a com¬

country

1953

were

privately
in
1935 through

from

financed

with

FHA

the

impact of government guar¬
anteed loans of such large propor¬
tions would exert a tremendous

do. Hints private lending institutions
cannot operate under right to exercise their own judgment.
Cites problems created for the mortgage business because of
Government activity in the field, and scores continuous liberal¬
ization of Government loan plans.
Government is going to

influence

entire

the

the end of

mortgage

1953, the mutual

savings banks owned about 18.5%
of

the

outstanding

FHA and

loans and the life insurance

of our discus¬
sion is mortgages, all of us are
naturally interested iii the out¬
look

business—what

that

for

future holds
for

what

—

the

•

•;

you

the

cise

answers

pre¬

tions,

all

you.

enough

Camp,

Jr.

this platform

definite

tell

assurance

just exactly where
one
year from
discuss

can

shall

For

now.

some

the

pertinent problems and make
observations

some

but,

beyond

find ourselves completely
in the realm of speculation.

that,

Why do I
we

say this? Why cannot
study the historical record and

the
available
statistics, measure
them against the current economic

background,
with

then

and

come

reasonably intelligent

swer?

say

the

cause

undergone

up
an¬

do it be¬

cannot

mortgage business has
a complete change in

the last 20 years. It is no more the

business today it was 20 years ago
than the streamlined Ford of to¬

day

with the

compares

Model

In the short span of 20 years,

the
mortgage business has undergone
revolutionary
changes which
dwarf by comparison all develop¬
ments in our entire previous his-

tory.

The
now

Federal

become

moments

few

insurance

over

the

take stock
what has happened to the

see

mortgage

business

that

com¬

signed

was

Roosevelt

President

and, for the first time,

except for the emergency
act

HOLC

adopted

1933, our Federal
Government actively entered the
private residential field. When, on

has

*An address by Mr. Camp before the
Association of Mutual Savings
Banks, Chicago, III., May 11, 1954.

National

21,

the Prospect Park
National Bank of Prospect Park,
New Jersey, received a commit¬
ment

1934,

$4,800

insure

Mr.

loan

home

and

Mrs.

Warren

Newkirk in the neighboring town
of

Pompton Lakes,

have

dreamed

period
loans

that

this

short

through
by

years

would

one

FHA

ihsured

1953,

on 41/4 million
living units aggre¬
gating $25 V2 billion excluding, of
course the property improvement
loans under Title I. About $16 bil¬

lion of the insurance

standing

was

then

headed

act

passage

was

of the FHA act,

passed

providing for

the guaranty of veteran loans and

has

pressive

also

resulted

volume

the government and
responsibility to
try to keep the FHA a sound, con¬
have

structive
not

mortgage operation and

auto

from

desired

manner

separate and

farming and

glass,

through

im¬

soap

works,

and

if considerations

—

the desire for

sound

stable

mortgage insuring
determine the course of

agency

FHA—then I

position
ment

buy and sell,

make

our

fearful

what

shall find the govern¬

of its activity in
the mortgage field.
Can

years

the

System

Lender^

of Private

successors

tutions

will

able

now

from

years

respective insti¬

our

that

the

savings

banks

surance

companies

the

and

say

mutual-

life

in¬

actively

and

not

misunderstand

you

FHA

80%

folio

now

loans?

closed

company

loan

Alabama

mortgage

our

the
and
por-

consists of FHA and VA

You

we so

may
rightfully
heavily turned to

loans

the

ask
gov¬

major part

portfolio.

our

the

place, the govern¬
ment guaranteed loan was of par¬
who

did

not

the small in¬

have

far-

flung

National City Bank of Cleveland

correspondents

field appraisers. This small inves¬

Towmotor Corp.

McNeil Machine &

For quotes*,

Eng. Co.

facts, information, simply

organization

tor could

develop
even

would

the smallest towns—which
have

cost under the

Pierce, Fenner

Beane

NEW YORK

Offices in 106 Cities

business

been absolutely im¬
possible to handle at a reasonable

Trading Department

Merrill Lynch,

travelling

which enabled it to

volume

mortgage

throughout its adjacent territory—
in

contact—

70 PINE STREET

and

the FHA system and

use

its appraisers

Warner & Swasey Co.

5, N. Y.

output, however,
near-record

level

than

companies

curtailing

are

number of firms

are

increasing their orders and production

them.

The

report

also

listed

the

smallest

disclosing decreases in output and bookings since

last June.

Although

new claims for unemployment insurance benefits
10% to the highest level in five weeks, they were down

rose

substantially from the high levels in January. Total and part-time
unemployment continued to be larger than indicated by unemploy¬
ment compensation figures since about 40% of all workers are not
eligible for such compensation.
Many others have already ex¬
hausted their unemployment benefits.
ally disappeared.

Over-time work has virtu¬
...

New

claims filed for unemployment compensation in 12 key
states resumed their downward trend in the week ended
May 15.

They dropped to 203,240, down 12,383 from the week ended May 8.
week had shown a rise of 8,539 in new claims after three
successive weekly declines. The total for the May 15 week was

That

still

sharply above the 126,232 filed in the like 1953 period.
Living costs, the Bureau of Labor Statistics of the United
States Department of Labor points out, eased between March 15
and April 15 for the third month in a row. The Bureau's consumer
price index dipped 0.2% to 114.6% of the 1947-49 average. The
decline reflected Federal excise tax cuts.

Don't be fooled by the "pie in the

sky" demands of the United
America; final settlement will scarcely resemble
them, according to "The Iron Age," national metalworking weekly.
In the steel industry, union and management are
beginning
their bargaining poles apart. Both are anxious to wind up nego¬
tiations peaceably, so they will soon be going after the real issues
.

Steelworkers of

hammer and tongs,

states "The Iron Age," national metalworking

weekly.
Steel officials and their

whistling in the dark

customers, many of whom have been

the possibility of

strike, will be im¬

conventional

system.
In addition, the FHA loan plan
has
flow

which would cost about
shortened the odds.

enabled
more

as much as total present
wage costs, have
Final settlement is still expected to provide a

"package" costing in the neighborhood of 5c to 8c

per hour.
Steelmaking operations continue to fluctuate within a narrow

Gains and losses in the various steelmaking districts
largely offset each other, leaving little overall change in the pro¬
The production trend is stable to strong with the
range.

moderate increase within the next 30 days, this trade

This

the

week

industry is scheduled to operate at 70.5% of

rated

capacity, down one point from last week's revised rate, but
point higher than was predicted for last week.
Scheduling of an ingot rate above 70% of capacity for the
third consecutive week, means that steel production passed its
lowpoint in March and April.
The lowpoint on new orders was
half

reached

last

October.

New orders

coming in at

rapid rate than they have
and they don't call for
sufficient tonnage to boost production significantly.
for months.

The

are

But most

most

them

a more

are

small

important factor in the steel market for the next

30 days or more will
ture would

be labor.
Any darkening of the labor pic¬
be quickly reflected in a strong burst of new orders.

There

probably be

June

will
30

contract

deadline

protective buying anyway, as the
This will be quickly re¬

approaches.
flected in production schedules Which
new orders, declares "The Iron Age."

are

now

very

sensitive to

The daily rate of domestic new car sales during early May
duplicated the April 1-10 eight-month high, according to "Ward's
Automotive Reports."

This

trade agency said this continuance of near-record sales,
high dealer stocks, is firming industry hopes for a 5,000,C00-plus sales year in 1954. In 1953, the domestic market absorbed
5,700,000 new cars.
'
*
<
:

despite

;

first

Cleveland Trust Co.

Hoover Co.

showed

weekly reports.

question I present to
therefore, is whether our

vestor

Ohio Match Co.

the

report from the "National Association of Purchasing
predicted that industrial business should experience
improvement for some time to come." Its May survey

Agents"

"gradual

first

ticular assistance to

Richardson Co. (The)

Total

than

year ago.

outlook for

Continue?

Mansfield Tire & Rubber Co.

M. A. Hanna Co.

others.

less

duction pattern.

Central Trust Co. of Cincinnati

Harris-Seybold Co.

10%

A current

occupying at the close of the

second

few that

rises

become a stronger factor in industry,
particularly in the steel
market, during the next 30 days, asserts this trade publication.
Chances still favor a peaceful settlement. But union demands,

happens

other than

markets for—

out

about

that

first

tool

attained

cancelled

down

pressed with the gravity of the labor situation before an agree¬
ment is finally hammered out.
Threat of a strike will certainly

proof of that could I offer than to

in Four Letters!

held

was

apart from the actual housing and
mortgage needs of the country. If

ernment

means

lines

some

directing economic activity in

why

are

influ¬

me.
I have always been a
strong
supporter of the FHA. What better

Representative issues? Lots of them.

own

aggressively fought for a system
Through 1953, excluding farm and in which private lenders could
business loans, the Veterans Ad¬ continue to
operate with freedom
ministration had guaranteed and
flexibility and with the right
3,200,000 individual mortgage to exercise individual judgment
loans of the face amount of $21.5 and
discretion?

parts, tires.

For. example, here

tool

political opinion

business.

investors—that's Ohio. Major factor in everything from
steel

real

it become

let

ence

are

that

ac¬

are

taxpayers,

tell

Opportunity

cannot

where

the mortgage business
knowing what the gov¬
ernment is going to do. But re¬
member that we, as citizens and

you,

the

correct,

without

The

In June of 1944, exactly 10 years
after the

predict

still out¬

OHIO

chips

on.

to you

say

curately

Dec. 31, 1953.

now

Please

companies

assumption

some

Dec.

this

dominant

most

tration

■

Government

the

On June 27, 1934, the act creat¬
ing the Federal Housing Adminis¬

it from
If

to think back with

you

paratively short period of time.

even

sure, we

for

and
A.

Ehney

inability, to do so. In fact, I
the
feeling that no man

you

Mortgage

the

past 20 years and let

could stand here,

with

want

and

have

and

life

the opinion that the Federal Gov¬

must, at the
very begin¬
ning, confess
my.

the

these government mortgage fields,
the FHA is here to stay and the

Business

smart

not

ernment, having assumed such an
important role in housing, will be

Happened

dis¬

appoint

influence
mortgage

fields

types

What

shall

affect

ment mortgage programs.

those ques¬

have

about

lending
and
very
few private
mortgage
operations
are
con¬ VA will
certainly be here longer
ducted today without some degree than was
contemplated when the
of participation in these govern¬
original act was passed. I am of

Now, if you
expecting
me
to give
are

government

and

to.

panies

com¬

30%, which means
ness.
In addition to the insuring our
two
types of institutions
and guaranteeing of a substantial
owned
pearly one-half of these
volume
of
housing loans
each government guaranteed loans. If
year,
the terms, standards and we can judge by the
past activity
general policies which prevail in of the mutual savings banks and
the

look

may

for ward

single factor in the mortgage busi¬

The over-all situation in industrial
production for the countryat-large for the period ended on Wednesday of the past week re¬
mained unchanged from that of the previous week as declines in

business.
At

Index

Failures

mortgages. It takes very little
imagination to understand that

single factor in this field, and no one can accurately pre¬
headed without knowing what the

Production

Business

constructed

dict where the business is

Industry

Price

Auto

and

country.

our

Trade

Commodity Price Index
Food

the

all

dwellings

this

plete change in last 20 years, Southern insurance executive
holds Federal Government has now become the most domi¬

Retail

State of Trade

the entire deposits of the mu¬

Production

Electric Output

Carloadings

total

the

times

Steel

The

by these two government agencies
through 1953 amounted to $47 bil¬

lion—nearly

Vice-President and Treasurer

Since the subject

The total housing loans handled

At the Crossroads

nant

billion of these

$16.1

1953.

By EHNEY A. CAMP, JR.*

Liberty National Life Insurance Co.,

and

outstanding

were

.Thursday, May 27, 1054

•

investment

freely from

Continued

funds
some

sec-

page

In definite

prospect, stated this trade journal, is an unusually
strong year-end sales push, based upon present sales trends and
an anticipated minor boom in deferred automobile
buying.

January-June this

according to the statistical agency, is
sales, which would be only 9%
comparable period of 1953. May sales are projected in
the 490,000-500,000 range.
year,

expected to yield 2,740,000

new car

under the

"Ward's" said the

industry backed up such optimism last week
production record of 148,835 cars and trucks
in United States plants.
The volume was 4% above the prior
week's 143,269 completions and exceeded any week going back to
with

nine-month

Aug. 17-22 when 155,722 units left the assembly lines.
Last week's gain stemmed from resumption of car building at
Hudson, Packard and Studebaker following shutdowns for adjust¬
ment of
dealer stocks, plus return to
five-day operations at
Plymouth after four in the preceding week due to a strike.

Field

tions.

demand, however, is restricting Chrysler Corp. opera¬
to five-day operations from four a

While Dodge returned

Continued

page AS

(2305)

Financial Chronicle

Number 5328 ...The Commercial and

Volume 179

Should

Oar Inefficient Schools

Observations.

Shortage of Teachers

close connection between schools and business,
Mr. Babson blames businessmen largely for our inefficient

Commenting

By A. WILFRED MAY

the Stock Market

business

cated

is thrown on the market's Blue

Considerable light

Chip-itis

latest

long

shortage

three

years,

the next
will run

alone. In
45 states

short of elementary teachers and

might be followed by a
movement to overhaul courses of

20 states will find themselves
in the light of what re- short of high school teachers. On
leaders and workers that search may reveal would
best Oct. 12, 1953, VNewsweek" reschools pro- serve the interests of all.
•
ported that "in the past year,
duce. Today,
60,000 teachers left the field. .. ."
the

business.

from

has only /the

business

run,

kind of

schools

<tary

Schools and colleges cannot be. This

divorced

public transactions study just compiled by
the New York Stock Exchange. This survey of the market on
March 17 and 24 last is the third in an annual series of two-day
the

will

there

72,000 teachers in our elemen-

stiate

During 1954, it is indi¬

.problem.

men

another

The teacher shortage is

and educators, we have been
unwilling to be clear and coherent about what we want United
States to be. Calls for research to overhaul courses of study.
schools.: Says

A New Look at Institutions' and Fiduciaries'

Impact

develop

society

our

people with qualities of self-disci¬
pline to develop initiative and
and intelligence?

By ROGER W. BABSON

not

study

"snapshots" of investing sources and patterns;
somewhat akin to the SEC's poll-based analy¬
sis of investor behavior in the severe break of

their

new

survey

the

impact

1 '

sources

have

combined

lift

the educational

years,
Wilfred

watering
down

The
The

Breadth of Fiduciary

h*Z
have
to

others

faiW
failed

have

use

taught

make money, we

In
to

hnw
how

thf*m
them

teach

most

The

properly.

damning criticism is that our sys-,
tern is one of education for me-i

Window-Dressing

embraces insurance com¬
panies, banks, investment trust, educational and charitable insti¬
tutions, corporations, fiduciaries, etc. Included with the bank data

also with
editorial

the real problems or

search on p e r son n e l selection

they the symptoms of a fundamental problem?
May it not be

techniques, problems of industrial
morale, diet, and health, unionmanagement relations; more ef^ctlve distribution of g<?ods

Are these
are

that

with

comply

inability

whether of the Army

re£?uiations

regulatl0ns> wnetner oi tne Army, thege and
the

home,

lack

stems from

community,

the

of self-mastery?

should

multltude 0f others

research

and

training

areas.

orders

mediocrity of conformity.

to announce—

e are

little of the latter is

Army-McCarthy Hearings

the

"appalled"

Evidence of timing of

institutions

able

also

small

haps

observers

regard

this

mercial

point.

120

gave

market

be-

ward in the past

memorandum

icy

appraised

market
valued"

investment

the- overall

pol¬

stock

reasonably
the basis of historical

level
on

MR. SAMUEL B. MILT
MR. THEODORE R. YOUNG

month to 325 in
stock

The market has now ris¬
the 1953
reached last September. The

MR. THEODORE E.

Common

"still

has

ships.

months

The memorandum, signed by

Kulp,

Executive

Vice-Presidqnt and

Director

the Fund's

Investment Committee,
-

■'

continued:

"Nevertheless, the rise has at¬

stock

and

equity risk

continue
to represent about 63% of its up¬
wards of $329 million in resources,
according to the memorandum.
The diversification, it was stated,
of

been,

Wellington

broadened

with

emphasis

recent
on

the

quality of the individual common
stocks held.
scribed
balanced

the

The portfolio was de¬
in a
conservatively-

position.

Fund's

Some 24%

consist

resources

PLUMRIDGE

about 70 points from

low

rise,

are now

associated with

in the

measured by this average,

The rise is believed to re¬
flect improving investor sentiment
based on: (a) business recession
has not threatened the prevailing

price earnings and yield relation¬

Moyer

un¬

new

Wellington Fund, in a monthly holdings

pleased to announce that

Dow-Jones 30-Industry

commitments and in the
retention of present holdings."

Reasonable

are

market has continued to move up¬

has carried about 30 pojnts

ing

Stock Exchange

MR. JOIIN D. OIILANDT, JR.

stock

sentiment:, "The

investor

very

1920

and

greater than
usual amount of caution in mak¬

Market Level

become

BROADWAY, NEW YORK 5, N. Y.

this

action

memorandum

The

summary

has

•

Telephones: BArclay 7-5660 • WOrth 4-2300

average.

This calls for

sition."

the

and

bonds.

provide reasonable stability, and
places the Fund in a flexible po¬

tracted considerable public atten¬

even.

the ceiling of

Trading Department of our New

above

York Office.

the 1952-53 trading

range.

New York Hanseatic

level

earnings and dividends
the market had not fully

which

capitalized
cations
is

that

leveling

1952-53;

the

off;

business

(c)

easy

funds

reform

1920

of in-

•

Associate Member American

money

120

Stock Exchange

BROADWAY, NEW YORK 5, N. Y.

running above the

volume of new financing; and
tax

Established
I

decline

conditions with the supply
vestible

corporation

indi¬

(b)

and

favorable political

Telephones: BArclay 7-5660

(d)

generally more;

climate."

'■

Houston, Texas

"Wellington's present position,"
Kulp pointed out, "should

September, 1946 break.

tion

■"

Mr.

tions—particularly the psychological—in both his buying or sell-

Wellington Calls

Established

Associate Member American

and short and me¬

paper

dium-term government

ebb and flow of the professionals' short sales; the figures (as now)

havior during the

.Cleveland, Ohio

corporation

de¬

high grade investment bonds and
preferred stocks; and about 13%
of resources consist of cash, com¬

^ing might well accompany future studies by the Exchange.
'
recall the SEC's highly constructive study of the investor's
?

project

teach, might be a starting

'!'

New York Hanseatic

less

know

what our schools

termine exactly

of liquidation in 1953; and a

......
'

Kramer, Makris & Company.......

less and less, per¬

research

Chicago, 111.

Bali., Burge & Kraus.

among

coming to

are

less about

and

Office to:

confusion.

useless

youth

New York

Ames, Emerich & Co., Inc...

the

and

opening of Direct Wires from
our

coherent about what

Since businessmen say our

persistently show a reduction, instead of an increase, in the "ex¬
pert" short interest as prices rise.
Inclusion of greater detail in the individual's specific motiva"

the

the United States to be.

schools

this

validation of present market
levels by the experts; while others cynically hold that this again
shows that the tyros have no monopoly of illogically "buying them
when they're high, and selling at bottoms."
As a matter of fact,
the survey shows that the non-professional category of public
individuals acted more logically in selling at this year's higher
levels after net purchases at the lower periods.
The cynics maintain their conclusion is substantiated by the

•

educa¬

buying balance in 1952.

Some

and

confusion in
business¬
men
is getting worse and worse.
The Army-McCarthy hearings in
Washington are an illustration of

purchases and sales by the knowledge¬
by the instant study. On the

excess

Direct Telephone Wire to New York

been unwilling to

have

Consequently,

the

furnished

ALEXANDER W.MOORE and FREDERICKS. MOORE

call
fundamental values

businessmen
we

want

Timing

some

be clear and

will not im¬

STREET

under the management

for even what
national rights,

might

tors,

bought this year, against sales in 1953, and a stand-off in 1952.
The insurance
companies showed a substantial net surplus of

1954, with

what are

risk his life, not just for

for

days surveyed this year the expert closed-end investment trusts
bought on balance, against a net balance of sales in both 1953 and
1952 when prices were considerably lower. Similarly, the banks

purchases in

;

life."

strength of the psychological motive for win¬

you

But it is the opinion of this writer

Evidence

84 STATE

light,

her

property, not just
but

Branch Office in

BOSTON, MASS.

the un¬
that could lead
finally on the battle¬

boy

field

States; and to those whose preferred stock, if any,

dow-dressing, the broadening of legal permission
portantly affect the actual selection of issues.

make

reasons

that

riod, but not necessarily in each year; to those which are listed
registered stpck exchange; to those of companies incorporated

that in view of the

could

tiiat

opening of

been

are

derlying

on a

legal requirements.

lack of our
of "what
the condi¬

is, what

therefore,

and

holding is limited to those issues which have a 10-year consecutive
cash dividend record; earned in the aggregate over the entire pe¬

satisfies

the

understanding

America
tions

has

that

December

youth's

Some body of opinion holds that extension of institutional
activity in equity investing will importantly depend on the legal
prohibitions. In New York State now, typically, common stock

in the United

the

President Eisenhower said only
last

New
last

August which discusses the Sum-

diocrity; we pull the bright child
downward as we try to drag the
dull child upward.
This results

placed by individuals through banks. But since very
comprised of transactions coming in "through
window"; this category almost in its entirety encompasses the
giving of advice, in either a clearcut or indirect manner. And
significantly pervading the giving of such advice is the prefer.ence for taking a chance on incurring a 10% loss in a "good stock"
like Telephone (which can be blamed on "the market"), rather
than in some relatively little known issue selected for its longterm underlying value.
Hence this institutional group supplies
a sharply growing propulsion to the drastically divergent upward
movement of the Blue Chip segment of the market.
are

while

that

say

people how to

of institutions

categorization

struggle,

Yet,

the

"Times"

York

of the Detroit "News," intimates
n. J., high school teacher
that our soldiers on the Korean who left his $85 per week teachbattlefront lacked discipline t- [ng job to drive a brewery truck
which had something to do with at $137.50 per week. Obviously,
the way things went, in Korea, there are some problems here.
There are further implications
Businessmen's Needs
that lack of discipline in our
Or, for the businesman there
schools contributes to juvenile
are such problem areas as execu¬
delinquency and is a threat to
tive development programs,
reour national security.
.

discipline

and

Roger W. Babson

those two days exceeded that
corresponding dates in 1953 and 1952. It accounted for
25% of the public buying (i.e., excluding exchange members, bro¬
kers, and dealers), and 18.7% of all the buying, a proportion ex¬
ceeding by 30% that in the previous year.
V

our

great tradition

the institutions are shown to be heavy

purchases

ap-

pearsto be

buyers. At 1,412,876 shares, the volume of their

May

public

education

particular market sector to the strato¬
sphere.
In this period, when the market as meas¬
ured by the averages comprising these institu¬
tionally-popular stocks is the highest in 25
that

product,

Free

prices

the

about

concern

expressing

are

the
public's chain reaction thereto; both of which

"good stocks" section of the market; and
.

need.

leaders

tional

substantiates the impor¬
of the institutions with
"window-dressing" motivation on the

The
tance

major

this

Tie

national
General S. L. A. Marshall,
is

Discipline

educa-

and

September, 1946.

What About Discipline?

business

many

•

WOrth 4-2300

The

(2306)

often of a highly speculative
character,
they
are
frequently
subjected b.y the states to certain

pomrnercial and Financial Chronicle

^Thursday, May 27, 1954

are

Blue Sky

Problems in the Public
financing of Oil and Gas Ventures

additional

These

procedures

pricing

writing

By CHARLES I. FRANCIS*

Occupational Diseases oi Bankers

regulatory procedures.
relate

securities

discounts,

the

By JOE D. NICHOLS, M.D.*

the

and

Editor "Natural Food and

under-r

of corporate properties, the
regulation of the issuance of pro¬
ment

Vice-President and General Counsel
Texas Eastern Transmission Corporation

Blue Sky

Author reviews and discusses the various

instances, the impounding of the
proceeds of the sale of securities

Laws of

Acts, with reference to financing oil

pending

completion
offering. It is evi¬
dent
that
although state' secu¬
rities statutes are entirely lack¬
ing in uniformity, they provide in
the
great majority of jurisdic¬
tions, a more flexible and com¬
prehensive procedure than that

and gas ventures. Calls for changes in the laws that will not
hamper financing operations unduly. Says, though investing
public must be afforded adequate protection, it is equally
compelling that investment funds be permitted to flow freely
into industry. Calls for a compromise between the protection

of the investor and the maintenance of

dure

distribute

state securities
The

oil

and

securities,

industry

gas

enterprises which

along with

many

from the

range

dealers

over

securities

licensing procedure,

demon¬

upon

stration of

the seasoned

good repute and finan¬
standing.5
■
an "inspection" type
of statute, requires the registra¬
tion of securities by the issuer,

corporate

but

giants

control

highly

speculative
]

exploration

oil

cial

and extraction

ventures

The third,

the

whose

fourth,

"combination"

respon¬

and provides both for
licensing of dealers and the
registration of securities offered

for

ble

for sale.7

growth

the

The

and

enactment

the

Act superimposed a further regu¬

prosperity

latory procedure on the distribu¬
Charles

this country.,

The

Francis

need

mechanism.

tive

pressly

for

their

This

the

to finance

permits them to

small

oil exploration

distribution

ercise

their

tory

new

instances

of supply or to mod¬

sources

ernize

and

expand

its. productive

and distributive facilities.

ex¬

over

securities, and

continue

established

ex¬

regula¬

procedures, which in

many
impinge directly on in¬

terstate

transactions.8

states should

jurisdiction

existing

venture, or in vast amounts by an
established corporation to develop

statute

to state agencies

reserves

capital is constant and virtual¬
ly insatiable—whether it is sought
a

That

have been

the

accorded

prospective issuer seeking to
acquire funds often has the alter¬

this authority is quite understand¬

native

action

negotiating

placement

private

pursuing
the
more
frequently employed pro¬
cedure of making a public offer¬
ing of its securities. The private

able, for the usual security trans¬

importance

the

distribution

technique in

certain

types
securities,1 presents virtually
sky problems, for such a

blue

transaction

registration

requirements

Securities Act
curities

from

exempt
well

statutes

the

the
se¬

large

The

tive

multistate distribu¬

mechanism

compliance

and

with

the

this

compels

state

latory procedures which

regu¬

exist

now

state

securities

statutes

represent the independent and un¬
coordinated legislative efforts of
the

several

states,

differ

and

widely both as to method and ob¬
jective
sought to
be
attained"
The

fundamental

achieved

legislation
vesting

purpose

however

was

public

sought
such

protect the

in¬

fering in detail, these state securi¬

understanding, of
and

with

the

ob¬

procedure

prescribed under the Federal Act.
The

Federal

the

upon

Act

principle

predicated

full

closure of essential facts*

dis¬

concern¬

ing offering's pursuant to its reg¬
istration and prospectus require¬
ments, and does not purport to
evaluate
of

the

investment

statutes

certain

states

which require the. qualification of
securities
prior to the sale for
the

sole

full

disclosure, obviously paral¬
the
registration
procedure

lel

of compelling

purpose

prescribed
and

by the Federal Act,
compliance with both proce¬

dures

results,

substantial

each

from

state

various

the

sions

great

regulatory effort
majority of states

dressed

the

evaluation

economic

potential of
prise whose securities

the

State

Although

accuracy.

majorify of states in
with
the

securities

uniform
by the

compilation of the

exhibits which form

ous

each

application

numer¬

part of
presents a

also

substantial

mechanical
problem.
Many exhibits including certified
copies of the issuer's charter and

well

advance

filing the

ap¬

sarily
"fraud"

type

requires

facts upon

full

which

disclosure
determina¬

statute, does not impinge directly tion can be made, and to this ex¬
on
the issuer or dealer
by com¬ tent Federal and state procedures
pelling qualification of securities coincide in purpose.
or the
licensing of the dealer, but
provides for criminal penalties for

fraudulent conduct and under
tain

circumstances

junctive

*An address
19th

Annual

ciation

10,

the

1954.

Convention

America,
The

Hon.

New

preparation
other

"licensing"

Investment

cis

For

in¬

type

by Mr. Francis before the

of the
in

authorizes

proceedings to prevent
of fraud.4

the perpetration
The second, a

Group

cer¬

York

Bar

footnotes

the

Bankers

Dallas,

Texas,

Leonard

assisted

the
see

Asso¬

May

Leaman

Mr. Fran¬

speech.
page

Texas

38.

States

whose

regulatory

pro¬

way

cedure.

The
tration
eral

exemption from the regis¬
requirements of the Fed¬

Act

pursuant to

Regulations
virtually places these
types of offerings within the ex¬
A

and

clusive
states.

regulatory

sphere

As such exempt

the

securities

nomic

life—steel,
and

num

resources

strategic

materials:

essential

executive

constantly
must

being
and

there

economy

ability?

discover

executives.

what

but

commodity
throughout our whole

scarcer

than

alumi¬

copper,

other

many

eco¬

our

are

told that
develop

new

Must

also

not

have?

those executives we

Yes,

the

these

now

preservation
times

difficult

absolute necessity.

success or

executives.

real

estate appraisals,

the
engineer

report of the petroleum

geologist, the preparation of
property maps and the informa¬
tion
relating to the validity of
title to properties in
which the
has

interest.

Obviously
these experts must receive a prior
an

briefing as to the statutory re¬
quirements of each state relating
to their particular endeavor.
The

preparation of
resolutions

corporate
the

issuance

the

authorizing
qualification of
sought to be dis¬

securities

tributed

appropriate

and

is another task

considerable

attention.

This

is made somewhat

ter

cult

by the
in

states

requiring

insistence

mat¬

diffi¬

certain

prescribing

the precise
wording of the resolutions.
The

success

distributive

any

effort depends in large measure up¬
on its timing,
which requires the

simultaneous
curities

qualification

under

regulatory

Federal

and

procedures.19

se¬

State

Meticu¬

the

degree

upon

experience and wisdom of its

Since
to

time

discuss

all

diseases

mention

mon

few

occupational
to

propose

the

com¬

discuss

then

most

with

suggestions

do about them.

Heart Disease

According to the statistics of the
Metropoliton Life Insurance Com¬
the leading

pany,

heart

Heart disease is the

of death

and

brokers

lenders,

money

of death

cause

bankers,

among

disease.

leading

cause

in almost every group

America and it is increasing year¬

There is

ly.
to

some

just why this is

controversy as

There are

so.

some

who contend that the statis¬

tical

tables

which

show

of heart disease

deaths

from

diseases

and

addition

old

age,

factors have their

criminal

states

accord

rescission

with

made

sanctions,

the

right

respect
in

any

violation

statute.

(2)

diagnosis.

eral

over¬

registered under the Fed¬

Act—is

computation
serves,

for

accurate

one

relating to
oil

gas

is obvious

estimate

determination

and

that

vital

the

issue

required

computations

the

which

upon

based his estimate,

registered

submit

and

in certain

instances may be subject to verbal

interrogation

Commission's

Oil

experts
and

Continued

Gas

last

and

the

Many of you
who

relatives

year

list only the two most common

(1)

ones:

and

(2)

Coronary
ease

thrombosis
heart dis¬

Coronary

hypertensive
I

ease.

thrombosis

of the blood vessels

becomes

vessel

stricted

and

which

stops

dis¬

that lead

tion to

and

tense

clot

blood

the

normal

con¬

forms

circula¬

It is

times.
before

and I

the

One other condition

want to

wornout
feeling
that
so
executives have at the end

tired,
many

of the
I

day.
that

believe

factors

mental

the

funda¬

same

all

cause

these

conditions, so we will lump them
all together for this discussion.
a hypothetical case
for you the routine
typical bank executive? Our

May I take
describe

and
of

observation
whose

that

occupation

the

person

largely

sed¬

entary and primarily mental,

does

habits.

Many

inadequate breakfast. A

and

sweet roll,

is the breakfast
corn

some

and

better,

sugar

Americans. A stack of

wheat cakes and

cup

white

with

loaded

coffee

us¬

have good eating
rush to work with

not

syrup

the

even

man

who gets two slices of white bread
covered with oleo and

infertile

has nothing to boast about.

egg

Breakfast is

one

of the most im¬

portant meals of the day. After a
12 hour fast, the body needs some

good food. The banker with a poor
breakfast may become tired and
irritable in mid-morning because
of inadequate food.
he

do?

So what does

another

gets

cup

coffee loaded with white sugar or
a

"coke" to pick him up. Then too

lunch

often
well

hurried

and

balanced,

and

not

all

course

day long he is smoking cigarettes
at the rate of two or more each
hour. By
and

mid-afternoon he is tired
and he is ready for

nervous

coffee

and

at the

Finally

white

some

these

sugar.

drinks.

several

that

being
hol

tends

tional

the

cocktail

that alco¬

the fact

the

emo¬

by removing

inhibitory influences. The

the day

and very often gets to bed

late.

sleep

He falls

into

exhaustion

of
At

hours.

four

to the bathroom.

bed for two
abcut

the

profound
a

few

for
five

morning he has to get

ries

for
well

sense

stabilize

the day
to the

down

then gets his one big meal of

man

too

The

household

cortical

sit

follows

is due to

hour

people

and

bar

nearest

end

the

and go

He tosses

new

his

hours and

wor¬

day which

begin all over again. Per¬
haps you think this picture is too
extreme, and of course many ex¬
ecutives do not fit this pattern,
but ^for
many

far

too

many

habits

the

are

bankers,

all

too

common.

I want to list the causes of

these

occupational diseases as follows:
(1)

Poisons.

recognized

(2)

Nutritional.

only in the

(3)

Emotional.

then

by Dr. Nichols before the 19th
of
the Texas
Group

Convention

Dallas, Texas, May

justifies

suppose

rarely

and

Investment

other

mention is "the fatigue state," that

Poisons
The

*A talk

far

for

disease of bankers.

older age groups. Today it occurs
even in the second decade of life.

Annual

disease of modern

was

1900

This

average

in including it as an occupational

part of the heart muscle.

Coronary artery occlusion causes
8.5% of all deaths, second only to
cancer.

among

about to

directly to the heart muscle. The

the

Unit.

page

groups.

friends

even

with heart disease
of 50!
There are many different types
of heart disease, but we are going

increasing

younger age

the

investment

two

ease

Re¬

potential of such securities. Neces¬

the report relating to

these

before the age

all

not

doubt

ever,

died
Reserves

Perhaps the most, difficult

specific-

influence; how¬
it is also triie that heart dis¬

have

Computation of Oil and Gas

better and

rate

caused

are

Obesity

death

1930.

in
the

groups,

in¬

thus resulting in more

man,

lous compliance with state statutes
is
nevertheless
required, for in
most

100,000
above

by (1) the increase of Ihe longev¬

ity of

disease of

bankers from suicide was 54.7 per

more
crease

the

Bureau,

of these disorders,

some

can

obesity,

of too many

permit

bankers, I

causes

make

and

what

not

the

and

ones

the

you,

will

and

quite universal in the executive.
According to the U. S. Census

ually

The

ments,

by the most competent petroleum
engineers or geologists, often vary
substantially. The expert making

any

basic

enough
of

many

large

dealers operating within their

re¬

the

not

business enterprise

sarily, due to the nature of the
problem, estimates submitted even

jurisdictions, do not in
duplicate Federal pro¬

have
of

war.

depends

cedures, in whole or in- part, are
predicated upon the licensing of
spective

Nichols

failure of any

Certain of the exhibits

require

We
Joe

extensive preparation by
experts such as financial state¬

plications.

eral

first,

great
Dr.

representing
The

possibility

of another

ent

must

problem confronting the issuer
of oil and gas securities—whether

approach.

the

for

obtained

incorporation,

sought

neces¬

ourselves

already trained executive tal¬

enter¬

This'approach

utmost

our

qualified, a matter which is
beyond the purview of the Fed¬
Act.

prepare

state

categories,
each
specific regulatory

the

satisfactory status in

ties statutes may be classified into
four
principal
a

preserve

the

bankers

strained

ing

exhaused

becomes

Another occupational

our

certificates of good standing which
evidence
the
maintenance
of
a

the

continued

long

heart failure follows.

re¬

country is be¬

Act, suchi an appli¬
cation is specifically stated to be
inapplicable for the qualification
of oil, gas and mineral issues.9
The

muscle

to train.

source

under

Federal

they

Every

connection

registered

take

find,

when

years

Commis¬

authorized

Hypertensive heart disease is
result

often

and

and the requisite informa¬
carefully prepared to insure

tion

years.

found,

obtained:

ad¬

the
are

increased

has

the past two

high
blood
pressure.
The
increased
pressure causes the heart to en¬
large and eventually the heart

necessarily

must

are

Canada

In
in

are

men

hard

offering is
The application form

to be made.

assets

These

review of the stat¬

purchase

duplication of effort.
The

executives.

which the proposed

quality

securities.
The

their

valuable

requirements of each state

utory

regula¬

the several, states

contrasted

the

of the

scope

efforts

tory
as

against

misrepre¬
sentation and fraud, and in certain
states even against the investor's
own
imprudence.5 Although dif¬

appreciation of the numer¬
inherent in inter¬

jective

solicitation

state blue sky operations requires
some

in all but two states.
These

character

problems

ous

most

sky opera¬
intensive advance

and

preceded by

issuer

jority of states.

existence of

the

in another state.

ma¬

The large scale procurement of
capital by public offerings of se¬
curities necessarily requires the

interstate

offering made by a person in one
state, looking toward acceptance

placement, although of considera¬
ble

involves

and

preparation

Federal

economic
o f

Only in very recent years have
big companies come to realize that
their

blue

requires

application

prevalent

small

way
se

securi¬

type of statute, is by far the most

pro¬

ductivity
in

the dealer in

over

The

unpar¬

alleled

does not purport to exert any

ties.5

industry

multistate

tion

its control only

statute, exerts

successful

entire

prescribed under the Federal Act.

integration

proce-

regulations with Securities and Exchange Acts.

heterogeneous collection of
sometimes

expeditious

the

Among bankers' occupational diseases discussed by Dr. Nichols
are heart
disease, suicide and obesity. Lists ancillary causes
of these diseases, and ascribes much of physical deterioration
to improper food and emotional hypertension. Outlines a pro¬
gram of health inspection and health improvement.

motional securities, and in certain

the States and the SEC

Farming"

Chairman, Atlanta National Bank, Atlanta, Texas

appraise¬

Bankers

11,

1954.

Association,

use

of tobacco and its effect

the human

still

body has been and

controversial

subject.

However, Raymond Pearl, one of

Number 5328

Volume 179

world's

the

The Commercial and Financial

...

authorities

greatest

cardium

Chronicle

heart muscle requires

longevity, has noted that one a normal amount of circulating
heavy; smokers, between dextrose for its maintenance.
the ages of 30 and 50, dies befores Habein noted that 62% of execu¬
his time. The primary effect of tives smoke more than a package
tobacco is to raise the blood sugar of cigaretts a day, 27% two packs,
level. Unfortunately the excessive and 20% more than two packs.
on

five

tobacco

has

secondary
effect; it depletes the blood sugar
use

level

and

glycemia.
chain

relative

hypo¬

This is the reason why
frequently feel
giddy. As a rule a chain

It is my very

definite opinion that
smoking is a nasty, dirty and
filthy habit—it is expensive and

smoker
dence of

irritable,

shows

all

muscle, not

and

tear

only

increased tension

effect

the

one

Ciiioiuone

any

'not

use

are

and

D. D. T. and

poison.

the

perils

grave

and

you

shown

that

million

causes

has

five

definite

Dairy

me.

only

rat's liver.

with

been

parts

per

damage-to
sprayed

cows

produce milk with

the

lards

this do to your already

burdened liver?
brilliant

Dr.

biochemist

Dendy,

Texas

Research Foundation at Renner is
now

Oleomar¬

compound

tinued

poisons? These insecticides
are
not only poison to the boll
weevil, they are also poison to
the very useful honey bee as well

What will

made from hydrogenated cot¬

are

know

you

cotton, farmers, who

over

age.

garine

these

use

pesticides

and

myo¬

oil.

ten times that amount of D. D.

insecticides

another

the coronary

circulation, but because the

Otherwise

you.

of our scientific

the heart

kill

right.

The constant increase in the

evi¬

high tension, and suffers

wear

will

smokers

faint and

from

causes

(2307)
seed

ton

doing

research

some

this

research

center

very

important

problem.

support.

The sponsors of
this organization are
certainly to

proves

liable to

congratulated

vision.f

cease
no

and -desist.

condemned.

not be complete if we did not in¬

nitrate

had

you

Perhaps
the

for

your

factor

sodium

many

clude
Noah

cumu¬

diet is certainly
in

the

chemical poison

who

alcohol.
was

ever

different

considered

puts

discussion

not

widespread disease of today. The
pure food and drug law of
our
great country is a farce. If a food

in his

Washington.
A

sausage
was

but the

you,

poisons in
to

the

little pig
breakfast

enough to hurt
lative effect

processor

product, and later

pn,

and

years.

poisons

took

history

alcohol

shortened

his

day

for 40

nights, and

of the

partook

soon

days
as

cup

Continued

page

to principal only.

Exempt from Federal Income Taxes under Existing Statutes and Decisions

Baltimore County, payable both principal and interest from ad valorem taxes which may be
limitation

in the opinion of counsel,

levied

upon

are

general obligations of

all the taxable property therein, without

to rate or amount.

AMOUNTS, MATURITIES, COUPONS AND YIELDS OR PRICE
Due $720,000 each June 1, 1957-83,

$712,000

inclusive;

June 1, 1984;

$184,000 each June 1, 1985-93, inclusive;

$192,000

June 1, 1994.

Due

Coupons

Price

Prices

Prices
Yield

Due

Coupons

Due

Yield

1957

1.15%

1965

1.25

1966

2.15

1967

1.35

1.45

1961

5
5

1.65

1963

1.70

1964

100

2l/2

2.55%

(price)

1974

1.75

2.60

100 (price)

1975-76

1.55

1962

Yields

2 Vz%

1973

2.35

1959
1960

1971-72

1.90%

1958

Coupons

2.70

2.65

2.50

1968

1969

2 y2

2.40

1970

2 Vz

2.45

1977-78

2.70

100 (price)

1979-81

2 3A

100 (price)

1982-83

3.00

1984-91

3.05

(Accrued interest to be added)

$560,000 Bonds due June 1, 1992-94, inclusive,

The above Bonds

are

and received

us,

The National City

Kidder, Peabody & Co.

offered subject to prior sale before

after

appearance

Drexel & Co.

Bank of New York
Union Securities Corporation
The

Continental Illinois National Bank

of this advertisement, for delivery when, as and if issued

Mercantile-Safe Deposit

The Northern Trust Company

Hornblower & Weeks

W. E. Hutton & Co.

F. S. Smithers & Co.

Stroud & Company

Dean Witter & Co.

Roosevelt & Cross

John C. Legg & Company
Trust Company of Georgia

King, Quirk & Co.

Auchincloss, Parker & Redpath

Incorporated

E. F. Hutton &

Craigie & Co.

L. F. Rothschild & Co.

Bache & Co.

Laidlaw & Co.

Hirsch & Co.

Andrews & Wells, Inc.

Mead, Miller & Co.

Corporation

Incorporated

Company

Robert

William Blair & Company

The National City Bank

Winthrop & Co.

Baxter, Williams & Co.

of Cleveland

Sills, Fairman & Harris

Bank & Trust Company

Incorporated

Cincinnati

Scott, Horner & Mason, Inc.
May 27, 1954.

Baker, Watts & Co.

Francis I. duPont & Co.

Provident Savings

Stone & Webster Securities

Blair, Rollins & Co.

Philadelphia National Bank

Merrill Lynch, Pierce, Fenner & Beane
y

F. W.

Chemical Bank & Trust Company

Company

Incorporated

Equitable Securities Corporation

Glore, Forgan & Co.

Halsey, Stuart & Co. Inc.

Company of Chicago

Stein Bros. & Boyce

reoffered.

and subject to the approval of legality by Messrs. Semmes, Bowen & Semmes, Attorneys, Baltimore, Maryland.

and Trust

not being

are

■

Field, Richards & Co.

Folger, Nolan-W. B. Hibbs & Co. Inc.

Breed & Harrison, Inc.

Anderson & Strudwick

and 40

that both

(June 1 and December 1) payable in Baltimore, Maryland.

These Bonds, issued for Public School, Public Facilities and Metropolitan District purposes,

950.

the

he got off

5%, 2V2%, 2.60%, 2.70%, 2%% and 1% Bonds

Interest

man

$22,000,000

goes

excess,

The Lord put him

water wagon

this

would

probably the first

New Issues

Coupon bonds in denomination of $1,000, registerable

This

Dated June 1, 1954. Due each June 1,1957-94, inclusive. Principal and semi-annual interest

penalty, and the bur-

den of proof is vested in a bureau »

The
food
preservatives, bread
softeners, and yeast inhibitors in
your daily bread are also to be

con¬

merits your

for their broad
"
.•»*
' t

*■'4

to be lethal, all he has to

(2308)

The Commercial and Financial Chronicle...

United

States Steel Corporation — Analysis — E. F. Hutton &
Company, 61 Broadway, New York 6, N. Y. Also in the same
'bulletin is an analysis of Armco Steel Corporation and Re¬

Dealer-Broker Investment

June 24,

Recommendations & Literature
It

understood that the firms mentioned

send interested parties the

will he

Wisconsin

Central Railroad Company — Bulletin (No. 167)
Smith, Barney & Co., 14 Wall Street, New York 5, N. Y.

pleased

Dividend

for

Fire

Casualty

1954—List—Gruntal

Insurance

Earnings—Annual

Insurance Stocks—Annual comparative

Notes

annual
ton

The

weekly Stock Bul¬
1-Chome, Marunouchi,

Securities Co., Ltd., 4,
Chiyoda-ku, Tokyo, Japan.

Robert

discussions of Investment Trusts in Japanese Economy
current foreign trade.
*

American
&

Machine

Metals,

Inc.—Analysis—Filor,

entire

Research

New York 5, N. Y.

way,

Coro, Inc.

—

Memorandum

—

New York 5, N. Y.

Freeport

Reynolds & Co., 120 Broadway,
&

Co.,

Wall

New York 5, N. Y.

Grumman
ris &

Aircraft

McDermott

Corporation—Analysis—Fer¬

Co., 44 Wall Street, New York

Company—Analysis in

Financial

Digest"—Loewi

Wall

New

Park

Jockey

Club

current issue of "Busi¬

Co., 225

Analysis
Street, New York 5, N. Y.

England

East Mason
issue is an

—

Vickers

Lime

Royal

Dutch Petroleum
Memorandum
"-oad Street, New York
4, N. Y.
Sa:o Lowell Shops —

Hirsch &

—

Analysis — May &
Devonshire Street, Boston 10, Mass.

Safev ay Stores,
iir mvay

Incorporated—Annual

Stores,

Caiif.

•

330

Incorporated,

■

selected Secretary-

was

newly

until the

pro-tern

meeting..

election.

votg of thanks for his assistance by the

Nov.

Kosterman,

the

Manager of

Trading

of Zilka,

U. S.

National

wood Beach Hotel.

Smithers

Co., Inc.,

Paine, Webber Go.

(

game

of Portland.

Bank

Celebrates 75 Years

hour by

George

Paine, Webber, Jackson & Cur¬
tis, today is celebrating its 75th
anniversary. The firm was

gusto and Dan V. Bailey, Manager of the Trading Department for
the local office of Foster &

Marshall, told

some very

should write him—they

you

founded in

Jackson &

all clean, too.

were

Adams, Donald C. Sloan & Qo., made his first

meeting following

severe

fall

he just can't stay away from

but

Association

Portland

The

Amos C. Sudler & Co., Denver,

Association, at

entertained

William A.

Webber.

Phillip

Clark,

Seaway—Discussion—Ross,

Snap-on-Tools Corporation

Report
Office Square, Boston
9, Mass.

Co., 25

Gannon, Inc., 161
•

Box

660,

Oakland

Knowles & Co., Ltd.,

the

tional

Paul A. Ludlam, Merrill Lynch, Pierce,

May 25.

—

Lerner & Co., 10 Post

tis

two

Wallace G.
old

Boston

na¬

character,
merged in
Paine, Webber, Jack¬

holds

stock
June 9-12, 1954 (Canada)*

Investment

COMING

Investment

Convention

Jasper Park Lodge.
1954

1-3, 1954

(Boston, Mass.)

Boston
Security Analysts'
ciety annual meeting.

So¬

June 11,1954 (Los Angeles,
Bond

nual

June 4, 1954

(Baltimore, Md.)

Club

field

Los

day

Calif.)

Angeles an¬
the Wilshire

Country Club.

Chairman

Elkridge Club.
June 4,

June 11, 1954

Bond

1954

(Chicago, 111.)
of

field

nual

day

Chicago 41st

an¬

the Knollwood

Club

Nev

outing at West¬
chester Country Club and Beach
Club, Rye, N. Y.

Miottel

June 4, 1954
Club

Bond
annual

Co.,

Broad

the

11, 1954

field

(New York City)
of

New

day

York

the

30tl

Sleepy

"°"0WN Country Club, Scarboruugu,

rM.

(Philadelphia, Pa.)

Philadelphia summer outing at
Whitemarsh Country Club, White-

New

June ^

(M|naeapollj>

1954

Board

City

Bond

Club

Mr.

Mason

Association

annual

Exchange

Governor

Stock

Firms.
addition

the stock

and

being active

field, Paine, Webber, Jackson

age

& Curtis act as underwriters of
security issues and has active

municipal bond and mutual fund
The firm maintains

40 offices and has 35 general partners,

13 limited partners and

let June 16; field day and goll
tournament, White Bear Yacht

than

Country

Detroit

Club.

commodity broker¬

picnic cocktail party, Hotel Nicol-

Club

the

Exchange

summer

Bond

and

party at the Grosse lie Golf and

Street,

the

Governors of the

Stock

departments.

Twin

George

Governor of the Detroit

York

new

marsh, Pa.

Minn.)
June 8, 1954 (Detroit, Mich.)

Board

ton
Stock Exchange.
Albert P.
Everts, Boston partner, has just
completed a term as a member

In
June

Canada.

Stock Exchange and Robert MacArthur is a Governor of the Bos¬

of the

(New York City)

Municipal

Club

T me,

Inc.—Resume of stockholders'
meeting—Troster Singer
& Co., 74
Trinity Place, New York 6, N. Y. Also available is
a resume of the
stockholders' meeting of American
Express.

Bond Club of Baltimore annual

outing and golf tournament at the

and

Forrest is a Governor of the Los
Angeles Stock Exchange, R. W.

(Chicago, III.)

Analysts Society of
Chicago annual meeting.
June

States

Thorson, Chicago partner,

Midwest Stock Exchange.
v

June 10,

Field

memberships on 18
commodity exchanges

United

Reuben
is

and

j[n the

Dealers' Association

of Canada Annual

Investment Traders Association

Paine and

The

& Curtis. Lloyd W. Mason is
managing partner of the firm.
Paine, Webber, Jackson & Cur-

•

Club, Lake Forest, 111.

Production

New York 4, N. Y.

or¬

son

Beane, President of the Portland Traders, presided at

meeting and at the dinner for Mr. Clark.

Bond

Co.—Memorandum—Gross, Rogers; Bar¬
bour, Smith & Co., 559 South Figueroa
Street, Los Angeles
17, Calif.

I'Mlever—Circular—°ppenheimer

was

Charles

growth and had both become

President of the National Security

cocktail party and dinner at the Mult¬

Com¬

Ont., Canada.

—

1879

houses, which had largely parallel

Investment

report—Librarian, CF,

Club

nomah
Fenner

Co.,

Toronto 1,

Paine, Webber & Co., which was
founded the following year, by

single-handed,

those trading keys!

also

consolidation of

Curtis, which

C.
Jackson and Lawrence Curtis, and

appearance

month ago, when he hurt

Dick is supporting the Portland cabbies

Boston, Mass. in 1879.

It constitutes

funny stories

ganized
at

(Hollywood,

Annual

McFaul, Jr., of Blyth & Co., Inc., sang his "Yale'' tunes with great

—for which

1954

Department, and

furnished for the

new ones—were

Hill of the

Investment Bankers Association
Convention at the Holly¬

Albert B. Schwab, Walston

were

Pacific Northwest Company,

Vice-President

appointed

28-Dec.

Fla.)

members inducted

Cards—nice,
Virgil

(Minneapolis

Board of Governors of Associa¬
of
Stock
Exchange Firms

obliged to leave the gathering early to fly to the Los Angeles-

was

1954

tion

York 21st annual

Bay Street

Southern

given

EVENTS

105 East Pikes Peak Avenue, Colorado
Springs, Colo.

St. Lawrence

Pete

■

Brothers,

Co.—Analysis—Dayton Haigney &
Inc., 75 Federal Street, Boston 10, Mass.
Reeves-Ely Laboratories, Inc.—Analysis—Boettcher and
pany,

Co., Inc.,

1942 to form

Street, Milwaukee 2, Wis. Also in the same
analysis ol Central Maine Power Company.
Manning, Maxwell & Moore, Inc.—Analysis—H. Hentz &
Co.,
60 Beaver
Street, New York 4, N. Y. Also available is an
analysis of Whiting Corporation.
Monmouth

■

Traders

Johnson Service
and

Telegraph Corporation—Bulletin-

New York*

ness

Street,

Company, Washington Building, Washington 5, D. C.

International Telephone
Peter

new

his back.

Engineering

Secretary-Treasurer

was

& Co., and Art W. Abeita,

Dick

Sulphur—Analysis—Bache

Blyth

membership.

Two

23-25,

Minn.)

Pitt,

Mr. D'Amico

Bullard

and Development
Corp.—Analysis—C. E.
Unterberg, Towbin Co., 61 Broadway, New York 6, N. Y.
Anheuser-Busch, Inc.—Analysis—Abraham & Co., 120 Broad¬

Hotel Claridge.

Sept.

San Francisco Traders party at Fresno.

Smyth, 39 Broadway, New York 6, N. Y.

American

serving

was

Pulp Industry In Japan—Analysis in current issue of Nomura's
Investors Beacon—Nomura Securities

and

:-r

with dinner serv¬

Treasurer, succeeding Neil D'Amico, of Dean Witter & Co., who

Averages, both as to
yield and market performance over a 13-year period —
National
Quotation Bureau, Inc., 46 Front Street, New
York 4, N. Y.

and

The group's business began at 4:30 p.m.

•».

ciation Annual Convention at tbo

iced at 6:30 p.m.

Jones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau

Valley Country Club, Abing-

National Security Traders Asso¬

held its

Security Traders Association of Portland, Ore.,

regular monthly meeting on May 20 in the Green Room, Congress
Hotel.

Over-the-Counter Index—Folder showing an up-to-date com¬
parison between the listed industrial stocks used in the Dow-

Co., Ltd., 61 Broadway,
New York 6. N. Y. Also in the same issue are
analyses of
the Electric Wire and
Catyle Industry and Spinning Industry

Philadelphia 29th
day at the Hunting¬

field

Sept. 22-26, 1954 (Atlantic Ctty)

THE SECURITY TRADERS ASS'N OF PORTLAND, OREL.

7, N. Y.

letin—Nikko

(Philadelphia, Pa.>

ton, Pa.

analysis—Blyth & Co.,

Stocks—Discussion

Bond Club of

Comparison—

Investment Opportunities in Japan—Circular—Yamaichi Secu¬
rities Co., Ltd., Ill Broadway, New York

•

Club

York annual outing at
Spring Club, West Orangey

Sept. 17, 1954

Inc., 14 Wall Street, New York 5, N. Y.

Shipping

Bondwomen's

New

Rock

NSTA

Club*

(New York City)

Municipal

Increases

Country

24-25, 1954 (Cincinnati, O.F

June 25, 1954

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

Japanese

Shore

As¬

outing

Municipal Bond Deal-,
Spring party.
*

ers

following literature:

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

Traders

annual

Cincinnati

—

Resources—Descriptive booklet—Dept. M, Utah Power
Light Co., P. O. Box 899, Salt Lake City 10, Utah.

Candidates

South

June

•

-y

Area

35th

Hingham, Mass.

Victoreen Instrument Co.—Analysis—Blair, Rollins & Co., In¬
;

(Boston, Mass.)

Securities

sociation
the

•

1954

Boston

public Steel Corporation.

corporated, 44 Wall Street, New York 5, N..Y.-

Thursday, May 27, 1954

thousand employees.

Club, June 17.
June

H^ere

you

able

to attend the

3j0wnv;i Securities

Stockholders' Meeting ol

Time Inc. and American

Co., m
Member

Express?

If not ask for

Troster, Singer
Members: N.

Japanese Stocks and Bonds

& Co.

Security Dealers Association

Trinity Place, New

preceded

June

the

cocktail
Nicollet

Record

York 6, N. Y.

without

J^Y

376

lune 18, 1954

Club

(New Jersey)
of

BOwling
Head

Green

Office

9-0187

Tokyo

fire

information

label.

For

please contact

New

Jersey an¬
Spring
Club, West Orange, N. J.
nual field day at the Rock

obligation

Broadway, New York 6, N. Y.
Tel.:

Safes,

and 3x5 cards.

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

C. Christiansen

THE DIME SAVINGS BANK

June 18, 1954 (New York City)
61

Desk

storing both 5x8 cards

Hotel.

Bond

—

Diebold

Two-hour

Material and Consultation

2400

FOR SALE

City Bond Club 33rd an¬
outing White Bear Yacht

resume

Club

party
Broker and Dealer

(Minneapolis,

Twin
nual

N.A.S.D.

17, 1954

Minn.)

OF BROOKLYN
9

DeKalb

Ave., Brooklyn 1, N. Y.

TRiangle 5-3200

Volume 179

Number 5323

The Commercial and Financial Chronicle

...

(2309)

prospective bride. Calvan appears

Springtime in the

Rockies

(Canadian)

and at

Now

their

and

several

beavers

the

traps

trappers have
the season,

for

tens

have

thousands

gnawed

their

pine

;

West Canada petroleum

current

000

the adverse

eco¬

destiny

sheared

beaver

for

milady, the
sound

supply a lot of gas itself, also
through its affiliate, Peace River
Gas Co. (common selling
at 6%) in which it owns
1,342-

Natural

fill¬

ing their

drill

—especially
wells!

the
Pas¬

U. Cobleigh

and

Sas¬

katchewan.

Bright

hopes

for high gravity oil from low cost
animate

minds

the

op¬

from

Alberta

gas

The

Canada
out

enabling

will

transport facilities,
and oil to flow East

gas

West

Line

Pipe

the

depending

the

favorable price or demand factors.

Mani¬

berta,
toba

Al¬

tures

to Spokane

construction permit¬
ting Eastern flow of the gas via

echoing

through

all

and Seattle, and when official ar¬
rangements for same are con¬
cluded, many caps will be doffed

Trans

Moose

Despite

hullaballoo, Canadian

will be exported

gas

round

again

shares.

common

and derrick is

wells

progress,

dam-site,

nomic

last

boles

route

Ira

somewhat

of the companies delving for oil in that scenic
section of North America.

some

that

shut

With

outlets

rather

well

ar¬

ranged for (although in blueprint
only for gas), the question for

smaller

many

prairie

petroleum

whether

they can
proration

companies

survive

the

meager

erators, and thousands of eager
enterprising men, geologists, bro¬

flows

good producers, and hold out

un¬

kers, and Pollyanna minded spec¬
ulators, all hoping that, this
Spring, their company, or their
well, may open up a new Leduc.
It's all sort of like a Kentucky
Derby without the horses.

til capped gas can be
waiting markets. That

the

This

by way of suggesting
can't do much drilling
at 30 degrees below zero and that
Springtime is both physically and
that

you

psychologically the season for re¬
newed oil exploration in the up¬
per latitudes.
About

for

hopes

thousands there has

ging deferment in

for

profit,
been

nag¬

the wish ful¬
1951/52 saw

fillment department.

churning market in Toronto for
every equity that sniffed

almost

oil.

Since

there have
awakenings,
maAy share price slippages run¬
ning sometiihes'as high as 50%
been

then,

rude

many

75%; and the holders of most

Canadian

certificates

oil

view

from

wells

known

piped
sets

stage for the major motif in the
West Canada corporate picture at
the

moment

oils

ones

when the big

era

getting

are

smaller

bigger,

the

and

getting big by

merg¬

trend

unique

found

of this

Canadian

Pipe

against risk, pray look elsewhere.
Manager of It's a Las Vegas type gamble,
both. Mr. La Borde is an experi¬
playing respecied management
enced oil geologist from Louisi¬ and 1.6 million acres of
muskeg
ana
State, and is generally cred¬ country back to back, hoping for
ited

market

"What

stocks.

bull

market?",
they plaintively
in¬
quire. But we came to praise the
prairies
not
to bury them
in
gloom—so let's be about our task.
Certainly

consideration

Canadian oils is justified for spec¬
ulative
If

the record.
sought for risk

purposes

growth

checkerboard
and

west
Vancouver,

going east,

covers

able

oil

Freehold

belt astride

about

Calgary
together

most favor¬

appraise

mostly
to

the

gas

what
being

to do
found,

capped and just begging
given transport and entry.

The Westcoast Transmission Com¬

Limited pipeline from Peace
River,
Alberta,
to
Vancouver,
British
Columbia, Oregon and
Washington, argued
about for
months and even years, is bound
pany

come

and

I would venture

predict its official approval before
Labor Day. That will be a boon
to the whole area and of special
significance to Pacific Petroleums
(common sells at 10) which
sponsors and will probably man¬
age the $110 million line when
.built. Pacific Pete is in a position
Ltd.

for

American Stock
it has sold

Exchange, where
high as 19—today 12.

Homestead

Producers

Gas

Ltd.

Ltd., Cal-Williston

Petro¬

oil

business
and

money

move

into representative

Royalite, Home, Great
Plains, Canadian Superior, Dome;
gravitate down to

the

market

midgets. Risk is usually (but not
always)
proportionate
to
price
range, and luck is awfully impor¬
tant.
are

The

still

acreage

Spring
in

the

best

criteria

company

money,

management and

in adequate quantity. This
there'll be fortunes made

Rockies. You

also lose

can

shirt there!

your

Portland Papas

till

March

1,
1954) has just com¬
per share have pleted a l-for-4 reverse split leav¬
PORTLAND, O r e g. — George
been paid since 1939. Not a fat
ing 924,000 shares outstanding and Patten of George Patten Investdividend record,
enmt
you
may
say, correspondingly upgrading the per
Company,
is
the
proud
but pretty classy when compared share worth. The new stock sells father of a boy, Stuart Edward
with some other Canadian oils.
around $2. It gives an interesting Patten, born April 30, the sixth
Security F r e e h 01 d is much but highly speculative call on the child for George and his wife
Dividends

10c

smaller, with owned rights to
274,339 acres, but a slick balance
sheet with

Elsie.

proven

Other members of the fam¬

Hamilton Lake, Baxter Lake and

potentialities of spread acreage in
Alberta fields — Armena,

July
(17);
Meg
(13);
George Norman (10); Debbie (7);
Princess, plus a 20% cut of 1,600,- and Alice (5). Mr. Patten pre¬
sented the boys at the monthly
000 acres in N. W. Territories.
That
leads
us
to
the
second meeting of the Security Traders

$1 million work¬

over

ing capital. With these

resources,

it is

equipped to move ahead; and
its 71/2% interest in 6,400
acre^ in

member

the Elkton Gas Field, and recent
drilling successes in the Roselea
Field, Manitoba, have given stock¬
holders

lot

Association of Portland with most

team, speculative
West Territories

attractive
stead of

plastic
cigars.

card

cases

lie in

tories, in

sheltered speculation than

window. But still

Kenzie

speculation.

Toronto is President of both; and

Rivers.

Some

very

also

introducing Kurt Douglas,
oz. of bouncing boy who
arrived May 18.

im¬

lbs.

Joins B. C. Morton
(Special to The Financial Chronicle)

BOSTON, Mass.

—

Joseph

Blumenthal has been added to the
staff

dividend prospects, and insulation

State

of B.

Morton

Co., 131

Street.

dicate, Red Deer Mineral Holdings
Ltd., plus some mineral acreage
from Trans-Canada Oils

Ltd., and
acquired, without cash out¬
lay, by issuance totally of 1,709,-

This

announcement

common

is not

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

The

buy these securities.

Canadian

Pipe.

Thus, in a relatively short peri¬
od, Canadian Pipe Lines winds up
with

lion

proven

barrels

(light oil), about 100

billion cubic feet of
holdings

erty

$50,000,000

of 21/2 mil¬

reserves

gas, net prop¬

over

million)

and 3,000 points of royalties
(a point is 1% of the realized oil

Public Service Electric and Gas

acres,

produced

160 acres). Estimated

First and

dated,
and

Polaris,

Zodiac

result

has

where

Price 102.915% and accrued interest

Prospectus

lion barrels and
mineral

rights

8th

ern

Provinces

west

million

throw

wells

and

the

into

take

the

INCORPORATED

MERRILL

from

first

North¬

prepared
18

COFFIN

BURR

above

a per

There

are

mergers,
most

rumors

WEEKS

G. H. WALKER Sl CO.

WEEDEN

CO.

AUCHINCLOSS, PARKER Sl REDPATH

WILLIAM BLAIR Sl COMPANY

share val¬

HIRSCH

SL CO.

COOLEY & COMPANY

INCORPORATED

J. C. BRADFORD Sl CO.

COURTS Sl CO.

the 4,299,-

outstanding.

CO.

capped

SHEARSON, HAMMILL Sl CO.

suggests

INCORPORATED

reserves

HORNBLOWER

BAXTER, WILLIAMS Sl CO.

GREGORY Sl SON

uation

L. F. ROTHSCHILD

INCORPORATED

pipe line
that materializes. Computation of
gas

042 shares of common

LADENBURG, THALMANN Sl CO.

LYNCH, PIERCE, FENNER Sl BEANE

1,184,000

the

It's

BLAIR, ROLLINS & CO.

EQUITABLE SECURITIES CORPORATION

broad spread of

held

Territories.

BEAR, STEARNS Sl CO.

among

located in all the West¬

acres

HALSEY, STUART Sl CO. INC.

point

working capital, oil reserves (De¬
cember, 1953) estimated at 17 mil¬

net

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.

constructive, and

Calvan

producers. It is further

distinguished

May 1, 1984

Garrison
Companies. The

today it ranks

Canadian

Due

Garnet,

Oil

been

projected

Company

Refunding Mortgage Bonds, VA% Series due 1984

Dated May 1,1954

The

IRA

HAUPT Sl CO.

further

with Canadian Atlantic

frequently mentioned

the

May 27, 1954.

in¬

the Northwest Terri¬ his wife Shirley.
They are also
natural basin, north of parents of twins, Neal and David,
present Alberta fields, at the con¬ now four years old.
r
Derele Swails, of Camp & Co.,
junction of the Laird and Mcmay

a company of its
size, Security Freehold looks like

the

an
ing shares quoted at 18c. The big
April 30 arrival is a
hope here is based on the theory daughter, Anne, to Preston L.
that the next headline oil strike Phipps, E. M. Adams & Co., and

encouragement.

quite unusual for

at the $2

extreme,

are

Also

only 1,900,000 shares out¬
standing and financial strength

the

Oils Ltd., with 3,600,000 outstand¬

With

most

ily

leums Ltd., Alberta Royalties Syn¬

588

take

play it quite

can

outfits like

Another

which

your

big ones—Imperial,
American, McCall-Fronte-

nac—or

pressive companies such as British
bracketing of two com¬ American and
has,
Imperial have > een
in the past year and a half, ab¬ panies may attract you if you've
reported to have taken permits
of
sorbed
sporting
blood.
This on a broad
five
smaller
companies plenty
swath of land here.
with production, producing wells, combination, piloted by the same
Western Territories has a 70% in¬
and a lot of royalty acreage re¬ management
team
is
Canadian
terest in 1,600,000 acres. It also
quiring no drilling expenditure on Homestead Oils Ltd. and West
owns and operates its own
equip¬
its part. The companies merged Territories Oils Ltd. First about
were Model Oils
Ltd., Mitmor Oil management. Basil O. Jones of ment and drilling rig. If you seek
Line

choice. You

British

46,000 acre tract at
(Alberta). It, too, is
pipe lines and has

Western

was

Canadian

your

Kinmundie

waiting

this
pay

safe with the

zone. Calgary five tapped gas wells eager to de¬
producing wells liver. Estimated reserves are
and
19
gassers, creating a 1953 above V-k million barrels of crude
production
of
1,887,752 barrels. and 7 billion cubic feet of gas.
Calgary
common
is
listed
on
Canadian
Homestead
Ltd.
(it

Edmonton to van Consolidated Oil and Gas
Interprovincial Company Ltd., created in 1952 by
two-directional flow welding together Calvan Consoli¬

pressing

all

In
you

producing

from

of Canadian crude is now a real¬

oil.

(October, 1951).
companies, Canadian
Homestead has the advantage of
having 18 producing wells, a 1953

has interest in 151

and

ity; and both these pipes will
doubtless, in due course, be fur¬
ther expanded.

discoverer of the

Of the two

that

pattern

Security

monies, where can you get a reserves work out to about $1.32
growth rate to beat the Alberta a share and the stock sells (To¬
Story?
6.4
million
barrels of ronto) about $1.50. Canadian Pipe
crude produced in 1947; 76.8 mil¬
appears
well managed
and fi¬
lion barrels for 1953; 600 wells at nanced
(no debt); and has rather
the end of 1947; 4,500 at the end better
defined
prospects
than
of last year; these are the sta¬
many other shares selling in this
tistics. At the beginning and still modest
price range.
sl major problem are outlets. True,
Another
company
which has
with Trans Mountain Pipe Line moved forward
by merger is Calgoing

the

Armena Field

were

wistfully, and rather sadly, the
upsurge of the Dow Jones aver¬
ages in New York. There's a bull

Calgary is Vice-

they
own most of their mineral
rights production of 166,934 barrels
in fee. Calgary has
rights to worth $265,000, and a working
1,142,109 acres of land in Alberta, capital at the 1953 year end of
and only in recent
years has it $231,000.
Prospects include pos¬
done exploration for its own ac¬
sibility of larger production at
count, being content, at an earlier Hapiilton Lake (Alberta), possi¬
stage, to gather income from leas¬ bly as many as three evaluation
ing out drilling rights. The wells to be drilled with associates

ing.
An excellent illustration

E. H. La Borde of

President and General

improving value

the need and de¬

—

sirability for corporate consolida¬
tion. We're in

rather

favored, is found in the Calgary
&
Edmonton-Security Freehold
liaison. Companies have an inter¬
locking
management,
and
are

Enterprise Economist

look

risky
business.
Stock
is
quoted around $5.
A pair entry which
many have

By IRA U. COBLEIGH

A vernal

offer

KEAN, TAYLOR Sl CO.

WM. E. POLLOCK Sl CO., INC.

The Cominercial and Financial Chronicle...

(2310)

pressed it often. But they are the
of,a law which is respon¬

servants

Whither Television?

sible for their existence and which

gives theni the duty of allocating
the wave-lengths among all who
demand part of them. Tnis leaves
only a limited number of channels
available for television and they

By PAUL RAIBOURN*

Vice-President, Paramount Pictures Corporation

under
investigation to determine what can be done regarding future
of ultra high frequency TV stations to solve question of color
and pay-as-you-go television. Outlines among proposals as
solution of the problem: (1) granting of additional UHF
economic problems

Mr. Raibourn reviews present

channels

networks and important operators;

now

have

been

convinced

that

is—the

the

with

the horse

best

to the

will

money.

Every

en¬

trepreneur

what

believes that
what

attrac¬

should

have

them. When it

Paul Raibourn

This

becomes

evident

that

been

has
more than
a
proportionate share
of them—and the bankroll begins
to

shrink,

somebody

else

many

My first assignment in
the amusement business, in 1920,
was
to try to explain to Wash¬
ington why changes in the rules
wouldn't
solve
certain
existing
problems. Today, I'll try to ex¬
plain what solutions for television
are
being discussed in Washing¬
who

portant

race

the

Hialeah

old

man

solutions

these

there

was

coming
track

from

will

Wyoming

illustrates

said

haven't

never

entered in

There

you

were so

has

what

sible

often

humor

and

beeh

has

be. The effects of it

had been taken
.-.I

*An

address

care

pathos.

areas

much

coverage

were

25 to 35 miles. Per¬

were

tape

even

Raibourn before
the Television Council of Chicago, Chi¬
cago, 111., May 21, 1954.

has

been

and

were

detection
more

cir¬

sensitive

found that these fre¬

are

limited

not

the

horizon and diameter of coverage
areas were closer to 200 miles and
in

the

sta¬

some

cases

300 miles.

the distant communities to which

be avail¬

would

smallest

these

com¬

make

ideas

available

our

Federal

dream

and

al¬

ex¬

allocation

was

from

community

itself

and

with little interest in its problems.
What has been called the clear
channel

When

ity

problem

arisen all

reach

radio

had

in such

and
a

cultural

way

alleviate

extent

local development, many
problems arise. The more impor¬
human
that

while, although inefficient, objec¬
It is by these relationships
that our society must hold itself
together and it is in them that

cally,

inneHjonsciousness
derstanding
who

munities

make

culture

our

keep

our

The

been

divorce

from

direct

the

A copy

will be

now

with

contact

with

our

easily
not

disregarded

seen

times.

felt

because

strument
comes

Boston

•

Springfield

Louisville

Chicago
•

instrument

which

cal nature
a

by clever

This is

men.

serious

and

great

problem.

happy to say thkt at least one
group has seen where it is lead¬

The

benefits
refer

mass

the

Philadelphia

Pittsburgh

•

•
Detroit
•
Minneapolis
Sacramento
•
Fresno
•
San

•

Jose

•

Spokane
•

now

there

have
69

are

television
trouble

the

channels

from

both

ers

are

economic

For the

television

most

existing

which
the

sets

own¬

re¬

■

•

than

VHF

the

channels

apparatus

has

owner

still

from

new

and

The UHF
cope

VHF

with

existing

are in a larger com¬
network advertiser is
interested in buying time because

these stations
no

is covered from

area

another

hurt

If I

would

the

this

situation,

there have been enough licensees
who have
money

likely to run out
and enough complaints

are

v
any

judge of the temper

that organization and its pre¬
vious efforts to prevent reduction
of excise taxes,

the measure is not
likely to become a law unless a
united industry really puts pres¬
sure

Executive

the

Branch

the government.

(3) Various types of subsidies for
UHF

consisting of

tion for

the

and

loans

grants to help the UHF

opera¬

period of time.

proposed

measure

(2) is

go¬

ing to have trouble getting any¬
where, then these are doubly so.
These proposals however do have
merit

the

they

that

right

the heart of the UHF problem and
do it

(4)

immediately.

A proposal that

have

interstate

which

commerce

tuning

color set

sold

may

for

not

does

UIIF

chan¬

nels.

This proposal also has merit in
that it is likely to have no oppo¬

within

the industry.
proposed prices for
color sets, the cost of a UHF tuner
At

from

to-day's

mere

feature

the

whole

cost.
The question has
the
the

been raised by
legally-minded members of
industry that the proposal

does have anti-trust difficulties if

carried

out

constitutional*
law.

possible

result

sets.

con¬

for

only

proposal

sition

the

aimed

combination

Treasury.

Brand

situation where

and technical bases.

and
by

agreement

difficulties

probably would only be
under an umbrella of a
control agency in

production

Washington, though the economic
theory to justify it would be dif¬
ficult to find.
The industry now
has

system on which it has
and several tubes avail¬

agreed

two

able

going to investigate. Seventygrants have been dropped of
which 60 are in the UHF region.

that which will be available from

These

•

Oakland
•

Portland

•

Cleveland

Pasadena

basically
the

has gotten enthu¬
reception from all indus¬
try sources since the only person

pro¬

The Present Situation
We

munity,

Seattle

•

that

Senator Johnson under

facilities for the

Los Angeles

sets able

siastic

ing economically and is trying to
responsibility without

the

and

fact

money

relocalize

losing

l^anufac-

VHF-UHF tunable sets cost

10%

receive UHF.

the

can

be pressed into Service of a politi¬

competition

New York 5, N. Y.
•

each

of channels.

situation

by which education be¬

the limited color bandwidth.

Indianapolis
•

Eureka

San Diego

run

started Wednes¬
They are likely to

hearings

day, May 20.

San Francisco

that

station

This is another proposal of Sen¬
Johnson to help solve the

Even

stations which may be either in¬
side or outside his community. If

Blyth & Co., Inc.
14 Wall Street

ator

to Washington so that the Senate

idea,

same

turers excise tax

education, there
has been a tendency to decrease
its dependency on the resources or
the local community and free it
from many of the natural safe¬
guards inherent in that tradition.
As it is freed, it becomes an in¬

•

was

elsewhere.

one

Remission of
to

emotionally at all

imperfectly understood.

purchase and sale of insurance company stocks.

the

group

(2)

those

community.

specialize in and offer

in which the VHF

grants be al¬
lowed two additional in the UHF

merely units of consumption or
impersonal force which can be

the

and

holder of

these

sent to you upon request.

says

tries, by indirection, to place the
in stronger hands. The
suggestion has also been made,

his destiny.
In such
they become on both sides

cases

Meanwhile

available.

give

who control

station

country's leading insurance companies is

March 9 of this year.

area

individual

stances.

of the

bill intro¬

UHF grants

instruments of communication has

verter—ranging in cost from $20
A supplementary antenna
would be required in many in¬

group

Senator

given

tendency of the growth of
populations and effective

to $35.

the

modern

tional piece of apparatus—a

comparative analysis of

UHF.

which,
techni¬
hearings to be

proposal

in the

com¬

operate.

their understanding of
problems, that we will
society steadfast.

and

local

our

in¬

to
in

that anyone who
VHF station will
be automatically entitled within
five years to two UHF grqnts, one

But, if
ever our security
is attacked, it
will be because of our respect for
them

UHF

Johnson

will

and un¬

local

operators

caused

Colorado

There is arnassive debt owed to

those

additional

duced

part of

our

great

called is contained in

ijiout ourselves is made Basically, it
and becomes

tofc

known

They

quo,

their interest

crease

This

tive.

the truth

important

type
worth¬

status

the

fi¬

not

channels to the networks and

the

democracy

maintenance
of

proposals

but

problems.

the

Granting

(1)

those associated with

relationships

make

solve

involve

in¬

out

ones are

will

nally

to block

namely

which

into another of differ¬

commercial

what, based

palliatives,
commun¬

one

than

experience of the motion
business can
be
called

picture

again.

over

stations of

the

UHF it is technically man¬
datory that he purchase an addi¬

annual

being

geography rather

The list starts with

ceive

Our

the fact

people.

the

duction.

insurance Stocks

the

made

Names Foundation.

signals they received
didn't put a very good picture on
the tube face of the receiver, but
as everyone in the motion picture
business had learned, the people
are interested in whether they can

conclusion

that

conditions by a station miles away

Some of the

Com¬

have

they

finally

signals, none of
which were capable of receiving
signal on these UHF channels.

munications Commission have had
that

were

based that

the thralldom of existing

to receive distant

who wishes to listen.
of

held

nobody

and

His community was

quality, highly sensitive receivers

existence

those

channels

located waited for them, the fami¬
lies
living therein bought high

its desires and

express

Members

Mr.

which

quencies

through tele¬
vision complete freedom of artistic
or
controversial
expression and
anyone

they de-

efficient

it ought to
the human

which television

time

and

into

put

was

mind, due to its convenience and
The
disconcerting
thing
that
its ability to convey what is hap¬
happened is that some 23,000,000
pening at distant places, are tre¬ sets were sold before the top 69
mendous. The possibilities in edu¬ channels from 470 to 890
mega¬
cation are staggering. Every one
cycles, with their present limited
of us has conceived of a television
propagation came into use." While

munity to

The track stewards didn't want to

bothered, but the fees
paid and the necessary red

different. There

were

great

dream of television

able

before.

believed

propagation

spoken of

the

he is

deal
spoken and written concerning the

tions,

showed

a race

the

always been

the

of man—that

situation

im-r

down at

Miami.

seen."

ever

up with an eight-year-old named even to the weakest cultural or
Pay-as-you-see, whom he stated social interest. In other words, to

had

ar¬

character¬
"If istics of these various frequencies

The Dream of Television

rules.

and

true,
why
before"

essence

nobody
is
ever
smart
enough to figure all the effects
which will result from a change in

be good for.
Last Winter

that

hasn't

cuits

But

ton

these

that

consecutively

haps they were practically and
effectively limited by technical
is able to distinguish the differ¬ equipment at that time, but as the
ence
between conditions as they ability to produce higher power,
to
radiate
it
more
are and conditions as they ought
usefully, to
to be. Max Eastman calls this the develop receiving antennas which

people appeal to
Washington to
do
something about it — usually to
change the rules.

the

noted

not

only animal who laughs and weeps
because he is the only animal who

someone

are

steward publicity in the late 1930's and
persisted.
"I
hate
to
tell the early 1940's to the effect that the
truth," the owner sheepishly range - of
the
lower
television
answered, "but we couldn't ketch channels, 50 to 100 megacycles,
him until he was seven."
were limited by the horizon. Pos¬

facilities are,
that

"Nothing,

him

raced

tions and best
and

horse

that

said

soundest

these

best

with the eight-

wrong

was

year-old.

knows

will

channels

by five lengths and going away.
Naturally there was an outcry and
an
investigation. Chicanery and extreme ends of four octaves the
doping was suspected. The doctors propagation characteristics of the
could find nothing wrong. So the lowest frequency are quite differ¬
owner
was
called in and asked ent from those of the highest.

get
the

to listen to it.

so-

ranged in the
spectrum.
Since
they extend over a range of the

audience

operating station

hearings in 1950 with the follow¬
ing statement: There is "the preg¬
nant possibility that UHF will not
mean
ultra
high frequency but
unutilized ' high
frequency."
I

applied early

unlucky enough to get it, had

was

tant

who

man

of the UHF channels and

one

ent

nels (470 to 890 megacycles) con¬
stituting so-called UHF channels.

post, the tote board showed
of
$159.60 for each $2.00

the best facili¬

and

the

for

terests

called VHF channels and 69 chan¬

ticket to win. Pay-as-you-see won

ties

mony

megacycles), 7 channels (174
216 megacycles)
constituting

by the owner

odds

—

presentation of testi¬
the channel allocations

pleted

not

enough channels available to

attraction and

the

television

state

the action and story, and
particularly in the technical
quality of the image.
follow

please everybody. There are three
ranges
which are taken up by
theni, with 6 channels (54 to 88

The only bet¬

was

the

ought to be, which I described a
minute ago, is not anything more
than a dream. There just aren't

and when the horses went

and himself

thing

one

man

ting

made

that

anticipated.
cided to let it ride.

geographi¬

When that distribution has
it becomes apparent

cally.

(2) remission

the

law to in¬
limited channels
the

distributed

must

using UHF; (3) sub¬
sidies; (4) reallocation of FM and other bands to provide
more channels;
(5) authorizing booster and satellite stations
in UHF coverage, and (6) new chain broadcasting rules.
Holds color television is coming sooner and more cheaply

My thirty-four years in
the
amusement business have certainly

that

dicate

of the 10% manufacturers tax on sets

than

interpreted

Thursday, May 27, 1954

most

of the

for

summer.

have

appraisal a
list of 12 of the proposed remedies
assembled

your

for the situation.

Many
about

which

people

the

definition

will

exceeds

dubious

usefulness

the

pro¬

posal since they assume that color
sets will be about

$1,000, this fall,

$700 in the fall of 1955, and $500
in the fall of 1956. If sets at these

Some Proposals
To justify myself as an

author¬

ity I want to point out that I com¬

prices and these dates

Continued

are

to save

page

Number 5328... The Commercial and Financial Chronicle

Volume 179

(2311)

■

their

Administration's Program
And the People's Welfare

destructive

power

over

ing operations so as to avoid
adding to the expansion of bank

human welfare.

A major cause of
these movements has been unwise

Deputy to the Secretary of the Treasury
more

are

economy,

and

lower taxes,

and sound money, Dr. Burgess points out its
accomplishments for the people's welfare as (1) a reduction
of $12 billion in the Federal budget; (2) tax cuts totaling
$7.4 billion; and (3) return to honest
is

first

money.

may

summarized

economy, lower taxes, and honest

These

money.

clear aims

are

and

they have
important im¬
plications for
human

wel¬

fare.

People

learn

The

not

show

A second

This

tives.

the

1955

used

rapidly

either

endangering our military
strength 'or risking too severe a
readjustment in the economy.
<

and

dent's

this

year,

the

Presi¬

adopted, will
total $7.4 billion, the largest total
program

dollar

tax

in the

history of the country.

cut

made

any

year

regained

Reserve

been

the

past
its

tion in

with

more fully
regained in
16 months. The System

combat infla¬

1952 and the

the

past

vigor

equal

climate

early part of
year
it acted

create

the

ease

fi¬
im¬

The third

requirement for hon¬

that

great na¬
tional debt of $270 billion shall be
money

handled

neutralize its
tion

nearly

influence

deflation.

infla¬

for

This

means

spreading the debt out over a
goes directly to individuals.
The longer period of years and gradu¬
other third goes to stimulate pro¬ ally placing it more widely among
duction more directly and make the people.
Progress has been
more and better jobs and
improve made in doing so through larger
standards of living. These tax cuts sales of Savings Bonds and mar¬
ket bonds.
are possible only because we have
Now let me come back to the
reduced Government spending.
human
Part of this tax program is the basic
principles of this
revision

Senate
a

bill

Finance

Committee.

comprehensive

whole
the

work
and

the

revision

code.

revenue

result

before

now

the

bill

year's

In ad¬

lief from double taxation of divi¬
dends are among the provisions
stimulate

business.

These changes will not only help
new
businesses
get started but
to

expand,

create

existing businesses

to modernize,

and better

The tax revision
In loss of

but

this

and

jobs.

bill will result

of $1.4 billion,
largely offset by
corporation
tax

revenue

loss

continuing

the

rate at 52% instead of

going down

to 47%.

its

and

economic enemies of human prog¬
ress?
One
such
enemy
is too
much government—too many con¬

the

flation.

Inflation
benefit

the

and

often

too

robs

the

Bonds,

the

who

ways, may

when he

they
value

saves

that the

Savings

money

other

reasonably expect that

comes

will

years

buys

have

when

use

his savings,

about
he

the

same

saved- them.

paves

the

addres

the National

Board

New York City, May

Dr.

Burges« before
Fire Underwriters,

20,

1954.

the

of the issue.

serve

months

before

The

system's

took

the

rates

form

and

kept

took

enabled

convert

that

our

While

been significant

they

But,

term

economic

growth

im¬
the

Brooks &

ated

With

Co., Inc.

The First

poration, 75

Federal

Boston

Mahon

joining Henfy-Seay

direction with

Kirby

Building.

reduce

Mahon

McMahon & Co.,

(Special to The Financial Chronicle)

BOSTON, Mass.—Edward Rogal
has

been

announcement

Mr.

President

the

Newton

has

become

with A. M. Kidder &

offer of securities for sale
offer to buy securities.

or a

May 21, 1954

(Without Par Value)
share... Plus accrued dividends from April 1,1934

85,090 Shares—Common Stock ($5 Par Value)

flation

War I

the

late

the

way

the

dollar

followed

was

The in¬

'20's

risk of

nearly

rate

of the

was

half

would have

run

has issued warranty expiring June 2, 1954 to holders
Stock, evidencing rights to subscribe for these shares at

1 share for each

10 shares held.

Any unsubscribed portion

85,090 shares of Common Stock is being offered by the company

employees. The subscription rights and the offering to employees
fully described in the Prospectus dated May 21, 1954.

are more

Subscription Price to Warrant Holders
$23.00

for
had

per

During and after the subscription period, the several Underwriters
may offer shares of Common Stock, all as more fully set forth in the
Prospectus.

fol¬

lowed by the deflation of the '30's.

if continued,

the

and,

the

Copies of the prospectus may he obtained from such of the
undersigned as may legally offer these securities
under applicable securities laws.
CRUTTENDEN & CO.

THE FIRST TRUST COMPANY OF

LINCOLN, NEBRASKA

violent deflation.

In recent years we have learned

aboutvthese great economic
movements which can carry such

HAROLD E. WOOD & COMPANY

BEECROFT, COLE & COMPANY

ESTES & COMPANY, INC.
■

grave

Experience both
demonstrated
principles' of keeping

dangers'.

some

them

the

under

control

and

curbing

RAUSCHER, PIERCE & COMPANY
-

UNITED TRUST COMPANY OF ABILENE, KANSAS

connected

Co., 122 West

10,000 Shares —$5 Cumulative Preferred Stock

The company

(Special to The Financial Chronicle)

Forsyth Street.

Inc.

staff

State Street.

JACKSONVILLE, Fla.—Leon L.

not an

solicitation of an

added

Co., 53

With A. M. Kidder & Co.

Mc¬

Frank

Kansas-Nebraska Natural Gas Company, Inc.

Price $101 per

Cor¬

Street.

With Keller & Co.

Henry-Seay Staff

Bond

BOSTON, Mass. — Branton H.
Henderson, Jr. has become affili¬

DALLAS, Texas—Frank B. Mc¬

Co.,

the

(Special to The. Financial Chronicle)

Keller

departments to
government spending, and
plan the government's financ¬

June 4.

our

Frank McMahon Joining

executive

feature

First Boston Adds
;

re¬

This

nation.

office.

major responsibility
policy rested with
the Federal Reserve, the Treasury
other

laying

are

Trading in the shares

The

groundwork for the healthy long-

the

same

sound.

today

Chair¬
charge

LEWISTON, Maine—George E.
McConaghy is now associated with

outlook

in smoothing the

current transition.

portant,

monetary

worked in the

Barton,

committee

been

books

Joins P. W. Brooks

living.

the

(Special to The Financial Chronicle)

We haye confidence

program

was

Frederick

steps that have been taken have

bank

will

defense

business

present

Club Field Day on

busi¬

many

from

and better

serves.

for

has

is reassuring.

policy of restraint
of higher discount
open market policy

pressure

move

defense orders have been

The

the policy of restraint
nonpartisan Federal Re¬
Board,
a
policy
begun

saver

here and abroad has
♦From

man

for¬

with

cord

that

mu¬

for

In dealing with this move¬
ment, Treasury policy was in ac¬
by

announced

production to production of things

years.

speculator

after, followed by the inflation of
Korea, had cut the buying power

over

number

Another great enemy of human
welfare has been inflation or de¬

is honest money—money that will
retain its general level of buying

person

Exchange

offering of 2,500 shares has
closed,

nesses

inflationary movement that
for

The Bond Club Stock

gradual

and

cut.

the coming to a head

inventories.

excess

oversubscribed

ward

happened in the first half

gone

out

carry

nicipal construction to

inflations

welfare.

Treasury

power

had

equipment development, and

boom

inflation

These

Exchange
Offering All Sold

ample credit supply has also
permitted
housing,
plant
and

Korean

of its Common

The inflation of World War II and

the

of the

Street.

Bond Giub

the

half, with much of this shrink¬
age since the end of World War II.
was

Wall

ease

adjustment.
With
available, businessmen have

able

reduction

had cut the value of the dollar in

of 1953

came

fort,
genius.
This government's pro¬
gram for-economy, lower taxes,
reducing controls, and freer mar¬
kets is a program to release more
of the energies of the American
people to work for their own

tion of World

the

II.

the country who
prosperity—with their ef¬
their initiative, and their

by the deflation of 1921.

aim

followed

War

head¬

office,

people' of

make

ing by Government.

third

been

makes

his

current

credit

deflation.

inflationary

followed

World

Johnston

too high
taxes,
and
too
much government spending.
It is

tion period to less defense spend¬

The

of credit during
has done much to

year

the

military effort, which, in its turn,
had

Mr.

trols,

early

It will help

availability
last

quarters at the New York

con¬

repay

pro¬

ment

in the shift of workers from pub¬
lic to private employment.

desire to

The rapidity with which moves
have
been
taken
to
insure the

governmental

When this Administration

had

credit to

reduction, and

to make

better jobs and

enact¬ deflation.
This country has
by the Congress will be bitter experiences with both in¬
helpful during the present transi¬ flation and deflation. The infla¬
measure,

rec¬

into power, we were in the latter

duce higher standards of living.
Aside from war, what are the

for

While this bill is basically a tax

reform

people of this
long-term, dy¬

Con¬

dition, more flexible depreciation
allowances, as well as partial re¬

will encourage

the

make

team

of wages and salaries.

will

for

the

This bill provides many benefits
for the 60 million American earn¬

which

freedom

namic progress; freedom

gress.

ers

outstanding
purpose is more freedom and the
removal of handicaps to freedom;
country

to avoid inflation

stages

accumulation

the

dents, and R. B. O'Brian as direc¬
tor, Secretary and Treasurer.

debts.

principle is to

which

the

36
in¬

Cole and E. H. Ely as Vice-Presi¬

private spend¬

steady expansion of

sumer

interpret the events of
the past 16 months. The Treasury,
working with the Federal Reserve
System, has been using its influ¬
ence

from

re¬

The great,

program.

tax

Treasury

our

Committees

This

than

the

which

our

About two-thirds of the tax cut

tax

ing,

Canada—Wood,

Gundy & Company, Limited,
King Street, West, dealers in
vestment securities, anounce
election of E. S. Johnston, J.

infla¬

checked;

inventories to their

must from
prevent in¬

establish

What

pact of cuts in Government spend¬
ing.

want

how

second

hearings
Its freedom

pressures.

powers

nancial

est

days

was

from government to

was

1951,

Congressional

public

has

Second, tax cuts which will be

effective

purposes.

Federal

pressures

1953.

ing

the

fiscal 1954.

cutting spend¬
possible without

political

partially

used

are

for

System from these

$12 billion less than the
budget submitted to the Congress
by the past Administration for
We

the

of the System are used to
the price of Government se¬
curities, or if the Reserve System

result

First,

Administration's budget for fiscal

done

peg

Freedom

these
objec¬

cannot

powers

reach-

Bernard
few

This is the broad background of
the economic philosophy against

the Federal Reserve

statutory duty of influencing the
supply for the public wel¬

rds

continued

System's; freedom to perform its

months to-

ing

control—

requirement for hon¬

est money is

fare.

done

three
Burgess

under

cause

brought under this control.

The figures given above
that the budget is
being

w a

is
a

first

money

realize

climate favorable to recovery.

requires

inflation.

may

how much has
been

that

gen-

erall'y
not

budget
that

Mr.

quoted

ognize recession in its early stages

money

The

TORONTO,

adjustment followed. That read¬
justment involved a gradual shift

was

flation.

Honest Money

Honest

situation.

tionary trend

inflation.

stop

and

istration

economic

Prevent

ago as saying that "if
to prevent depressions,

reassuring.

The aims and objectives of the
financial program of this Admin¬

principle is to avoid

first

Baruch

Says we must
stop inflation and holds present business outlook

learn how to

How

Inflation
The

Asserting that Administration's objectives

with the middle of
there was a turn in the

last year

By W. RANDOLPH BURGESS*
Learn

New Officers

The Readjustment

Beginning

tary policies.
Must

Wood, Gundy Elects

credit.

government policies. A major cure
is found in sound fiscal and mone¬

H|'

The Commercial and Financial Chronicle...

(2312)

the argument goes;
no
capricious individual should
have the privilege of demanding

Monetary Molality and
Our Irredeemable Currency

.unessential
Since

technical

the

aspects

qualified
m

confine

experts, I shall
observa¬

tions

what

be called

may

the

all

government bonds and bought
stock.
I
would
wager
a
small

question from

amount

the

guished members of this Commit¬
tee have their savings in stocks,

standpoint
a "plain va¬

nilla

citizen."

real

summuary

four phases of

what

call

o n e

a r

Morality,"
Jr.

Benj. F. Pitman,

Incon-

vertible

causing

currency

tern.

threat to our free enof a
managed

(2) The

system

currency.

(3) The political motives which

XtLri
obslruct

VP turn inconvertibility:
return to convertibility.

a
a

gold

that

illusion

(4) The

useless and unessential.
^

-f,r

t\it

Monday, Mr. W. Randolph
Burgess stated (and I quote).
AH
business
lite
depends
on
the
al of promises, commitments
and
them fulfillment.
Lending
and

borrowing

and services,

and investinents all depend
that

confidence

contracts

money,

to buy and sell goods
savings

the

been shaken?

(lj Since few people would dis-

with Mr. Burgess-statement it logically follows that loss
agree

confidence by our citizens in
the enduring value of our money
would be

a catastrophe.
There are
(perhaps hard to recogmze) signs that faith in the future

several

the

dollar

disappear-

For example, the stock mar-

mg.
ket

boom

reasons

various

—

are

given for the renewed upsurge

the market but the most

explanation
new
or

popular
lhat a

inflation, is already,

will

soon

seems

wave

underwav.

be,

People with- mofiey
in both
large
and
small amounts
are
eagerly buying shares in various
better known are more popu-

ing

but

uar

funds

some

faith

because

This

bncinpcc

wholesome
.

growth

American

c o

r s e

desirable.

■.

depends

abiding

and

bread and butter in
ure

future

the

also,

secunties

these investments

cases,

made

are

their

finding

are

foieign

into

way

stocks be-

Domestic

enterprises

our

money.

public confidence
Many people would

simply shake their heads and reply that they don't know but that
something is wrong and the dol-

upon

•.

large

the

meas

Continued

expansion
economy
and

and

t h e

people

the

all

for

the

unshackling

and

continue

will

currency

our

progressively be worth less.
The increase in

lice

and

debt

both

indicates

private

pub-

the

thinking of the times. A growing
numker of people mortgage their
homes

heavily

possible

fheory that they will eventu¬

the debt in cheap
pattern followed by
"money-wise" individuals before
apy

0ff

pay

dollars.

The

the

and

durjnor

man

inflations is in

oyer

French
a

and

Ger-

limited way

preference

"things"

for

money
,.

The building boom continues,

on borrowed capital. Thin
estate equities have in the

provided

past

agaiust

money

vafues
prjces

are

some
protection
dilution.
Land
historically
high,

line when
econ0mie worth is considered, but
Respite falling income from agricuitUral activity,1 there are many
eager buyers and few sellers. The
familiar
js

jand

out

appear

theory is that no new
being created but unlim-

p-ed paper nioney may be created
until checked by the reestablish-

b-jg

]acj. 0£

true
a

convertibility.

The

medium of storage value

which

people feel secure has
far-reaching and unfavorable imFiat

h6riz®n

that the evils which have alwdys

accompanied inconvertible

appearing in

....

our own

money

country,
■

While the movement
money

free

economic forces.

The

present practice
judgment of

assumes

the

that

small

in the Federal Reserve and
Treasury is superior to the col¬
lective judgment of the people.
group

The

the life

well

value

our

of the economy,

blood

factor

vital

away

from

is still comparatively mild,

ft may properly be defined

as an

incipient "Flight from the Dollar."
Threat to Free Enterprise

the

political, and even moral
well being of the nation, is con¬
trolled by a small group of un¬
doubtedly well intentioned, but
social,

perhaps not clairvoyant, men.
Such a condition is basically and
fundamentally contrary to all the
tradition of this country. Since a

inherent

the

denied

citizen

the fantastic
of these men under present

right

gold,

own

some

are

businessmen

some

subjected

being

hope that

■,

faith

our

earn-

„

in-

(2) The managed currency system under which we now operate
js inimical to free enterprise. The

dollars

the

crease

occurred

has

with

currently

their

con¬

substantial in¬
respective gold

reserves.

me to note
observers consider gold

perplexing to

some

unessential

General

Africa

It may

last

the

war

took

Clark

Mark

North

time.

war

that in

recalled

gold

in pay¬

use

More recently the
Russians offered gold for various

they

rencies

to exert an influence
proportion to their num¬
bers.
They seem to assume that
those
who
own
paper
dollars,
appear

out

bank

deposits and thrift accumu¬
no part of the

lations should hold

jurisdiction
"In

the paper dollar

allowance

some

fact

that

since

of last November

election

the

doubt

must

the

for

made

is¬

other than the money stand¬

sues

seemingly of more immedi¬
ate urgence, have distracted
the
attention of Congress, the Admin¬
istration
and
the
people them¬
ard,

selves.
return

home

banks

that

true

convertibility

gold

(foreign

central
vert
not

And

governments
now

even

can

ing the natives.
goods

at
and

eager

ment

which

times

dependent
All

it has

the

will to

it.

ac¬

foreign countries
commodities

essential

these
been

and

always
we

will

have gold

to pay

for them. Sordid though it
sound,
high
ideals
often
evaporate in times of war stress.

may

in the future
critical supplies

Hence,

past,

in the
will flow

which has the uni¬

nation

the

versally accepted medium of pay-,
ment—gold.
I submit that gold
should be high, if not on

the top,
criticaFand strategic

of the list of

metals.

con¬

upon

readily available if

NYSE Dinner in
Honor of R. Crooks

spending.
Congress
something about that, if

generally

for materials critical in war time.

deposits into gold) is
only available brake on

when

war

The Paley report in¬
dicates that we are increasingly

Government
can

cepted fact.

dollar

the

commodities. They
sellers. The debase¬
occurs, in
the cur¬
belligerent nations in

and

found

have

for our adher¬
standard

accounting
to

ence

exchange

the

over

value of the dollar.

Members

the

York

New

Stock Exchange will give a

testi¬
"Our Midwest correspondent monial dinner
Thursday, June 10,
time tested, revered free enter¬
refers to the gold standard plank in honor of Richard M. Crooks,
prise has been evident.
Now a of the
Republican platform.
As who retired this month as Chair¬
repudiation of fiat money and the this
newspaper said at the time, man of the Exchange's Board of
restoration of the right of a citi¬
that plank put the cart before the Governors, John K. Cloud, Chair¬
zen
to own gold is the solemn
horse by saying in effect that our man
of
the
Dinner
Committee,
duty of our government.
return to gold could only follow announced.
a
stable
world
Mr. Crooks, 48-year old partner
economy,
thus
Political Motives
postponing it indefinitely if not in the Exchange firm of Thomson
(3) I can not express the politi¬
forever. What Treasury Secretary & McKinnon, became a member
cal
motives which
have so far
Sherman once said about 'specie of the Exchange in 1941. In 1946
obstructed a return to gold any
payment' during the 1870's fits he was elected a Governor and
better than by quoting verbatim
our
present monetary situation: became Vice Chairman in 1950.
the following editorial which ap¬
In 1951 he was elected Chair¬
'The way to resume is to resume.'
peared
in
the
"Wall
Street
man and, following the retirement
"We think it all comes down to
Journal" June 12, 1953:
of Emil Schram in May that year,
this: Congress, the Administration
from collectivist ideology back to

We Remain Off Gold"

"Why

does

continue
vertible

our

maintain

and the

Government
an

incon¬

What
better, what more 'constructive'
step could it take than to return
to a real gold money standard,
internally as well as externally?
Why not perform the promise of
the
Republican -campaign plat¬
currency?

paper

form?

about breaking
away from their long indulgence
in Government profligacy and the

from

lieve

printed

this

page

reader,

of today's

issue. The note he sounds

is pre¬

cisely in tune with the veritable
chorus of opinion among profes¬
sional

economists, both
The

other

here and

day the

Bank

tional

Bank

o r

and Development)

headquarters

Reconstruction

issued from its

Switzerland

declaration that
eral

(not

with the Interna¬

confused

return to

gen¬

convertibility was
'a practical problem of the great¬
est urgency.'
The convertibility
which would permit the 'free for¬
eign exchange markets' for which
the BIS pleads means, of course,
convertibility into gold at fixed
currency

ratios for the

line of least resist¬

But

decision

will

they
in

hope and be-,

the

make

the

Gold

(4)

Monetary Base

respective

currency

In recent

school1

while

years,

cialistic theories

deemed

commerce

were

so¬

fashionable,

thought

grew

would

and

Then,

industry

gold

too,

down > at

the

and

had

monetary
producers

bottom

the

(along with the manufactur¬

ers

artificial

vestment

flowers

in¬

and

Mr.

bankers!) as unessential
defense effort. It

the

perhaps superfluous to point
that, contrary to the conten¬
some

omists,
is

of the modern econ¬

gold as

today

even

was

Trading

the

world

than

available

for

re¬

Chairman.

Cloud

said

that

approxi¬

change, partners of member firms
and
their
guests
will join
in
honoring Mr. Crooks at the dinner,
which will be held at the Biltmoro

Hotel.

Midwest Exch. Members
CHICAGO,
Committee

free

monetary base
important

more
or
100

years

ago.

yellow metal
markets

has

111.—The Executive

the Midwest Stock

Exchange has elected to member¬
ship in the Exchange the follow¬
ing: Raymond F. Smith, Chicago;

Harvey Sloane. Chicago; David S.

O'Brien, Chicago.

national

tion of

not

election

list

out

Presi¬

unessential

also lost its potency as a

were

until

over as

September, 1951. In Janu¬
this year he announced he

ary

gold as a use¬
less and worthless commodity. It

base.

addition

Chairman,

dent in

which pronounced

was

President in

duties

Keith Funsfon took

mately 1,000 members of the Ex¬

future."

acted

his

distant

too

not

right

;

Midwest

it.

ance

minds

money

paper

"Such is the substance of a let¬
ter

people have not yet made

their

With

Hemphill, Noyes

YORK,
is

Pa.—Roger Cj Ileimer,
representative for

registered

Hemphill, Noyes & Co., 28 North
George Street.
Mr. Heimer was formerly with
Baker Weeks &

Co., Philadelphia.

been

almost equal to
the inadequate
total world production.
Royalty
"Well, there are several reasons
payments made by some of the
why the United States lingers in
stitutions will again be the strong nationalization
of gold reserves
major Ui S. oil companies to Mid¬
the lap of fiat paper,, not one of
dle Eastern countries are required
force
behind
participation in supporting the currency is char- which
is
good
in
economics,
to be paid in gold. Hardly a month
American
enterprise.
However, acteiistic °t. a ^bhectiYist state, though some are more or less use¬
such as Russia. What moral j ustigoes by but that a devaluation of
ful ih the political arena.
First
there is much evidence to indi? fication
is there for denying the
some foreign currency occurs,
among them is the fact that ren¬
cate
that such
wholesome
and United States citizens the right
brought on by too much currency
dering our paper and deposit dol¬
or
too
little gold.
The official
desirable motives are today out- to possess gold? The weak argulars convertible into gold at the
weighed by the urge to hedge men^
Siven that the monetary domestic holder's option would parity of any currency, although
sometimes stated in terms of dol¬
*
reserves should
be under strict
set up a potential brake on the
against inflation.
lars or pounds, is gold. Although
government control as a defense
volume
of
our
Government's
some of our financial technicians
*a
statement
of
Mr.
Pitman
before f-^r the dollar in its international
spending.
Now political office¬
function;the g°ld belonss to M holders, of course, are unani¬ insist that gold is no longer
rency Committee, Washington, D. C.
the people and should be USed for mously against any more Gov¬ vitally important as a monetary

American

estly

'rigid' regulation which the peo¬
ple's freedom to choose between
gold dollars and paper dollars is
asserted
to
impose.
These are
doubtless
minority groups, but

swing

and

who hold that Government

power
conditions may not be challenged.

political pressures cause them
become
myopic,
who
can

there

"Moreover,
bankers

which

money,

for International Settlements

has a tendency to
speculation and over

m0ney

expansion and disc0urage frugalit
Signs on the
sug|est

are

the

capitalistic system.
The smooth
functioning of our democratic in¬
stitutions requires the free play

abroad.

plications,
encourage

institu¬

of democratic

lar isn't what it used to be. They to
will probably add that presum- gainsay the decisions?
Recently a gratifying
ably in the future, as in the past,

real

Be¬

distrust

value

has

why

which elected them.

marks, and British pounds against

into

I contend that the best

system.
The highest
standard of living the world has
ever
seen
is the result of our

mostly

...

value

intuitive

will ^noticeable in this country. I refer

money

value. When this confibroken, as we have seen
in so many countries,
the economic life is disorganized
and
is

future

keep its
dence

of dollars?

number

fixed

And

"flight from the dollar," which
may disrupt our capitalistic sys-

terprise

cause

follows:

(1)

distin¬

the

estate,

ures,

views

most

oil, gold, art treas¬
something similar—not
in government bonds, mortgages,
annuities, or fixed income securi¬
ties.
Why are astute individuals
avoiding investments payable in

A condensed■

that

pressure

stead

pre¬

gold in preference to

to hold

tions

his

money

respective

it in
nearly

thing

had sold

that he

most

that

restoration

gold and monetary policy with a
highly regarded Congressman
who is greatly interested in the
nation's fiscal policies.
He con¬
fided

the moral side

will

what
the

content

interpret

they

spend¬

currency.

discussing

was

welfare,
terms

ing, credit controls and fiscal poli¬
cies in general should be 'flex¬
ible'
under
the management of
those fit to do the managing, in¬

are

enterprise

month

collective judgment of the public

base, U. S. reserves are carefully
lest
ordinary
citizens,
seeking security, obtain some. It
may be significant that the rise
in
Canadian dollars,
German

guarded

groups

fer

Fixed Dollar Investments Ignored
Last

spending than the pub¬
requires.
Actually,

welfare

they put their trust in their own

intrinsic value of the dollar,

basis for currency.

the several gold bills under con$ideration have been covered by

ernment
lic

admission that the
gold reserves, valued at $35 an
ounce,
are inadequate, and
that
astute people, distrustful of the
spect,

restoration of
r

personal protec¬
Such arguments, in one re¬

tion.

Texas investment banker, in supporting measures for the
gold redeemable currency, contends: (1) inconvertible currency is causing a "flight from the dollar"; (2)
the free enterprise system is threatened by a managed cur¬
rency;
(3) only political motives obstruct a return to con¬
vertibility, and (4) it is an illusion that gold is useless and

his

for

reserves

Antonio, Texas

Pitman & Co., San

sizable chunk of the Fort Knox

PITMAN, JR.*

B. F.

protection

and

benefit

the

everyone,, so

Thursday, May 27, 1954

Joins Westheimer Staff

units.

(Special to The Financial Chronicle)

CINCINNATI, Ohio—Samuel D.
Brill has joined the staff of West¬
heimer

Company,

322

Walnut

Street, members of the New York

...

and

Cincinnati

Stock

Exchanges.

Mid Continent Securities
SHREVEPORT,
tinent
in

La.—Mid Con¬

Securities, Inc. is engaging

securities business. R. A. Fitz-

simons is

President; Lyle E. Jones,
Vice-President; and V. A. Mayberry, Secretaty-Treasurer.

Volume 179

Number 5328

The Commercial and Financial Chronicle

...

(2313)

—\

Business Outlook

From

Washington
Ahead
of the News

Encouraging,
Challenging

But

Economist, Armstrong

bers.

night

for worrying over IndoChina, as is the case with several of my friends, forget it. Pick
up and go on about your business.
The military appropriation
bills will have safely passed Congress in the
next few weeks and the crisis will have

slide

of the old

having

are

that

saw

comes

now

ments

agricultural production.

every

spring, about

submarine, an amazing one, something
we
have, something taken from
Germans nine years ago,
showing up off

the

come

what

are

an added touch.
Having beleader, the leader, in fact, of
wittingly known as the Free World,
conducting our foreign relations on a

Chamber

Comrfterce

high

always

aPParent

the

Administration

public generally has not become
similarly excited. Seem¬
ingly, however, this activity has made our so-called Allies
nuts.
Consider what it is all about.

Indo-China is a French colonial
The investments there are French. The French care
little or nothing about the idealism
of "stopping the march of
Communism" or of "saving Indo-China for the Free
World." They,
would like to save their investments
there and think they can
save most of them
by1 quitting the fight. But the U. S. Government
insists that they fight
on,
gives support and intimates that it

enterprise.

might give more; might, in fact, be "forced" to send
ground troops.

Why? What is the propaganda to the American people? Well,
regardless of what the French who have the money stake in IndoChina may feel, the U. S. must
preserve Indo-China for the Free
in order that the U. S. can get
strategic materials. Why
does it have to have these
strategic materials from Indo-China?
Don't be silly. In order that it can
fight in Indo-China.
World

Not

only that, if Indo-China is lost to the Free World, next
in line is Malaya. Who has the financial stake in
Malaya? Why,
the British who in World War II boosted the
price of Malayan
rubber to us so high that Jesse Jones was moved to his
greatest

profanity.
this,;

our

State

Department

Britain excited about the dire threat to its pocketbook.

can't get
The State

Department, in fact, finds itself split with our two greatest "free¬
dom loving" Allies, split over the fact that we are
pressuring
them to save their pocketbooks and
they think they know their
business better than

do.

an isolationist piece.
It is apparent that the com¬
"leadership of the free world" is about to run our
"freedom loving Allies" crazy.

our

know of nothing more

indicative of the lack of interest on
the part of the American people, generally, than the experience
of
Jim
Lucas, Pulitzer prize winning correspondent for the
Scripps-Howard newspapers. Jim did a corking good job with his
front

line

stories

Korea.

the

returned

States

the

acclaim and admiration of his fellow craftsmen, received all sorts
of honors and went around the country making speeches to large
and

deeply interested audiences. iV
Then running out of honors

graphic front line stories, showing the same courage he showed in
Korea, and his stories are appearing way back in the paper. They
lack the fire and the interest of his Korean stories, not through any
fault of his but because it isn't American boys

in Indo-China.

gains

plicitly
lies

This

Pes-

brought

find

W. E. Hoadley, Jr.

how¬

the

surge

business

find

people
middle
views

activity.

themselves

between
and

fused.

Most

these

the

extreme

understandably

con¬

Our

toughest job these days is
to maintain or regain perspective
the

readily

sporadic changes
by political and
well as economic

economic

analysts to find and doc¬
statistically the "bottom"

gardless of what the next reading
of any economic barometer may

show, the economic future poses
great challenges to business "lead¬

situation.

spective
ments

essential that

devoted

gaining per¬
longer-range develop¬

and

positive actions

insure

sound

ernment and business seems to be

nomic

growth

heavily

Since my plea is for perspec¬
tive, I would like to direct our at¬

the

attention

moment

concentrated
and

ments.

not

too

The

method

ments—and I

eco¬

sense

which

commend

it to ,you

to step back and away from
deluge of day-to-day reports

business changes and take a
longer look at where business is

going — national
business, - a n d

business,
local
particular

your

business.
I

the

recognize fully the limitations
address

2nd

for

General

Dr.

Hoadley

Session

the

before
42nd

immediately ahead

business.

time

could

leaders

American

look

confidence to strong
expansion
of
our
economy than at present. Not too
many years ago there was wide¬
spread concern about stagnation.
But

and

individuals

few

that

our

will

1960's

growth

can

now

economy

strong growth characteristics.
known.

has
The

story is well
anticipate the

anj& 1970's with confidence

because

tion

and

effec¬
insure

stream

public.
All

will

new

values

' i

<•

•

(Special to The Financial Chronicle)

combine

Price has become associated

Ryons

with

Co., 623 South
Hope Street, members of the New

decade

certainly by the mid¬
the economic

dle- 1960's to provide

basis

for ' another much
higher
period, far greater than that
which has been experienced dur¬

ing recent postwar

the

changes.
an

Mr.

officer

Price
of

Co. with which he
for

many

the

Certainly the longer-range out¬
look

encouraging. But as con¬
as the underlying growth

vincing

trends

the economy

individuals

(Par l alne $1

per

the

Los

•

Angeles

Stock

Ex¬

Copies of the Offering Brochure

minimize

ness

fluctuations

activity, there

was

Co.

Gifford

was

SAN

has,

also

are

casting
sion

previously

Bateman, Eiehler & Co.

with

gomery

New

has

Walston

become
&

Street,

York

Co.,

members

and

Stock Exchanges.

San

associated

265

even

business

"test"

the

booms.

serious

the

Francisco
,

May 27, 1954.

cycle

for

may

few-

not fore¬

depres¬

much

further

But

continuing

economic
too

down-turn.

period

individual

products,
managements,
and

prices.

Why

does

the

nation

challenge?
For several rea¬
sons:
(1) despite strong demands,
everywhere for "more" goods and
services,
the
urgency
to
buy
among
consumers
and
business

organizations
has
been
mate¬
rially reduced by the elimination
of

shortages

defense

and

reductions

war

Continued

he obtained from the underwriter.

Broadway, New York 6, N, Y,

face

"interim period" of economic test
and

Teletype NY 1-4777

Mont¬

busi¬

reason

"interim period" be¬

nor

foresee

refer

tween two

alive

FRANCISCO, Calif.—John

Quinn

with

believe that the business

years

S. D. Fuller & Co.

(Special to The Financial Chronicle)

associated

joined the staff of Lester, Ryons
&

has been eliminated.

Joins Walston Staff

some

Share)

Price $3,25 per

change.

are,

important temporary weaknesses
over the period just ahead cannot
be ignored. Despite great national
economic strength and widespread
public and private determination

material
on

PYRAMID ELECTRIC COMPANY

ANGELES, Calif. —Ells¬
has been added to
Mitchum, Tully & Co.,
■050 South Spring Street, members

past

Brashears

years.

Gordon

years.

Long Range Outlook

York and Los Angeles Stock Ex¬

was

consuming

powerful forces
the end of this

the staff of

LOS ANGELES, Calif.—Mark B.

Lester,

the

92,000 Shares

Tuplin

and

products

for

these

LOS

worth

<
of

(Special to The Financial Chronicle)

Lester, Ryons & Co.

In* addi¬

business

Common Stock

the

by,

incentive operate

across

NEW ISSUE

Mitchum, Tully Adds

other

and

ahead.

years

not

Mark Price Joins

be¬

tion, the major forces of competi¬

privy to what is going on in the minds of the British
and French foreign offices but I would be willing to bet my boots
that they are happy over the diversion the U. S. State Department
has got in Guatemala. And if it should prove enough of a diver¬
sion to direct Foster Dulles' energies away from Indo-China and
Malaya, it should make the American people happy, too. Because
a
"crisis" in Guatemala is something we can take in stride. We
would be back in the good old Coolidge days with the Marines
having the situation in hand, and a chicken in every pot.

life

forward

with greater

growth

H-bomb

determination

processes;
At

business

'population

C., April 27, 1954.

he is writing about

tention

question

Annual Meeting of the Chamber of Com¬
merce of
the United States, Washington,

eco¬

what lies

their

lost

seem

perspective amidst chang¬
current
economic
develop¬

ing

enduring

best

nomic

the

it's

people

many

adopt

in this country.

direction.

have

—is

very

develop¬

and

briefly to some underly¬
ing trends of importance to busi¬
ness,
and
then,
against
this
longer-run backdrop, to consider

surprising that
to

gov¬

near-term
result

tendency of
to

outlook

the

over

The present drive among

of the current readjustment seems
rather shortsighted to me.
Re¬

time

the

and

living standards substantially

business
ument

in¬

boom

now

ership.

•

toward

to clear.

Optimists now read
slightest upward tilt of
any
economic barometer strong
indications of a I new general up¬
into

about

opinion, too much time
being spent watching—and
waiting—for the economic horizon
;

ad¬

small.

ever

are

family

American people to increase their

fundamental

influences.
-

devel¬

opment,

typically

psychological

confirmation

every

rec¬

developments.

is \ because

■

discernible than

of their views
in

short-term

very

verse

strong

better

trends

gloom,

matter

living

developments, all point to

tively

ex¬

what

cause

similar

ord, moreover, it is often possible
.to forecast longer-range
develop¬

t s,

ahead.

popu¬

the

individuals

ments with greater accuracy than

prophets

cer¬

upon some

projection

increases

people

can

Nevertheless,

implicitly,

national

come, important advances in the
educational level of the Ameri¬

fool¬

decision-; rests,

forecast

ball.

teenagers

few

very

records.

plus the ability of in¬
provide them.
Recent

marked

escape from forecast¬

every

pro¬

nounced.

♦An

and awards and not being able

get down to domestic reporting, he returned to the wars, this
time to Indo-China.
He has been over there writing the same

ing

appear

crystal

there is

conflicting

now

quite

forecasting and

tainly admit that I have

V-

While

economic

proof

differences

opinion

gain

This is not

motion

dustry

many

the

even

current

notwithstanding

standards

moderate

the

skilled
analysts, such

that the

But

about

among

pressure

annoyance

Predicts only

uncer¬

are

found

publicity firm's basis. The idea is to show
activity, whether there is any need for it or
not.
Our conscientious
Carlisle Bargeron
Secretary of State is
^running around the world helter skelter. Al¬
ready he has broken all records for flving and man-hours
put in
at international conferences.
It's exciting and the headlines are
^

time..

forecasts 1

of.

exists

outlook

present

global

amount

confusion

and

business

There is also

unusual

tainty

than

coasts.

our
•

important

rise

abounds

new

growth

are

num¬

rapid

number

shorter-term

Russian
better

current

further business turndown, i

refinement

for

as reasons

lation

activity: (1) plentiful supply of con¬
(2) slackening in rate of new family forma¬
(3) reduced capital outlays, and (4) need for adjust¬

tion;

passed

booms, Dr. Hoadley gives

the

children

begin to set

Equally

"interim period"

goods;

away.

What

sides, and in
the

years

will

off in business

sumers

all

economic
years

unprecedented

number

Cork Company, Lancaster, Pa.

Picturing the next two to five
between two

Evidence

By CARLISLE BARGERON
If you are so down in the mouth that
you almost step on your
lower lip, if you can't sleep at

today who will then be forming
families

By WALTER E. HOADLEY, JR.*

page

in
re-

Union forces the resetting

The Pockmarked

for

ads already run

only
the

Labor-Management Scene
Counsel

General

Newspapers,

marked

labor

with

anomalies

and

load

(4)

and

strikes

without

called

Concludes the moral turpitude that has led to growth
dangerous monopoly power of labor unions can one day

engulf the system, and cannot be curbed without restoration
moral way

Act

of life. Calls for amendment of Taft-Hartley
basis of fairness, not

Today, in a world frantically
struggling to outlaw the violence
of

between sovereign nations,
stand idly by at the ghastly

the homes and
f

ilies

a m

graft, extortion, racketeering and
gangsterism have permeated the
ranks of organized labor far more

day's
against

work

the

heavily than some are willing to
admit. Selfish and power-lustful
racketeers have been exposed in

feather-

bedding

rules

recent brief

of their union.

Today
nation

chairmanship

whose

partly

our

have

leaders

under the Fifth
few have admitted

refuge

Amendment,

Bender.

and

union

such

sought

Congressmen

Smith

Hoffman,
few

rests

upon

Bassett

hearings by Congres¬
committees
under
the

sional

greatness
Robert

that

knowledge

common

honest

equality of their crimes, and a few have been
opportunity to rise from mes¬ sent to jail.
The surface has
senger boy to corporate president, hardly been scratched.
Business¬
by our own inaction we permit men have been shaken down for
some
unscrupulous union to de¬ years. Tribute has been paid to
stroy the business and livelihood avoid "trouble." Individual union
of
a
wounded
war
veteran
by members have been robbed of the
picketing his customers into with¬ funds which they have built up
drawing their business simply be¬ out of their own earnings.
One
this

cause

little

who

man

owns

union at least has used

and drives his

one and only truck
join that union.

refuses to
In

with

/dotted

land

churches

find,

millions
in

men

forgotten
union

vast

our

being

robbed

temptible

bosses

are

jails,

funds

union

welfare

who

funds

conserve"

country,-we

see

vision.

incurred

mental

hundreds of

part

under

tion.

course

rooted

funds, and
in the Senate
any such pro¬
these practices

out

investigation

govern¬

should

legisla¬

and

welfare

course

kinds

all

funds

made

subject
to the joint control and other pro¬
visions
as

the

well

Taft-Hartley
the

several

Act,

insurance

States.

laws

course,

the

labor

and

pressure

Of
be

must

small, being tossed into insolvency
by the unreasoning upward pres¬
sure
on
labor
costs, while our
government stares at a hopeless

orgr-ized

con¬

mem¬

union

has failed to make

thousands of businesses, large and

debt

these

yet the Smith Bill

they
were their own personal property.
In the face of the greatest ma¬
terial prosperity ever known in
one

Some

welfare

Hartley Act, the President called
for
legislation to
"protect
and

few con¬
handle

these

used

In his message on the Taft-

bers.

little

structures

have

simply to control the

duct and obedience of their

blind apathy to disclosures

that

with

and

its mortu¬

fund to finance strikes.

ary

unions,

everywhere

individual worker, the em¬
ployer, the public and the unions

other groups bent upon selfish re¬
distribution of the wealth, regard¬

themselves

less

jackals who have sullied the labor

tinued

existence

the

consequence

con¬

free

our

bly

stem

Why?
Y/hy is today's national
labor-management scene so pock¬

sire

marked

must

But

saved,

from

necessary,

movement.

en-

terorise system.

action

forci¬

ihe

few

must

not

management
the name of

de¬

tive

with

anomalies

and

from

any

blacken

labor

tried

Fr.r

Cause of

laborer

the

from

Evils

this

movement,

hi!*Y

that

gest
thru
•

d~e

alternative but to

nor

the

collec¬

any

the

our

^er

than

lies

answer

daily
our

deeper

for

profit,

cries
conflict

than
ized

prerogatives, far deeper
the simple desire of organ¬
labor

and

overbalance

the

moral

one-way
i

his

public.

the

first

quarter

this

The answer, I suggest, must in¬
the vast immorality which

clude

to have invaded this
gener¬
The moral law which lies

seems

ation.

the

seems

for

roots

very

to have become

exercise

cease

come

for

glib legal talk of
featherbedding, of secondary boy¬
cotts, of strike votes, and rather

*An

our

address

by' Mr.

Bassett

before

the 42nd Annual
Meeting of the Chamber
United States, Wash¬

of Commerce of the

ington,

C., April 27,

de¬

examine
is

their
not

The union leader

responsibility
and

the

effective

moral

by
the

moral

willingness
to
Last, but not
legislator must
have

them.

courage

problem, not with

face

eye

the

ballot

box, but with a conscience
guided by the simple principles

decency.
Problem

Legislature have the moral
to enact the law which
they and we know is needed? The

question

not

costs

business

all prate too much about

the hor¬

rible

ments.

Let

labor,
the

alone.

these practices
and loss state¬

impact of
our
profit

upon

management,
lawmaker alike, face

and

real

all,

issue

should

—

against stealing! We should want
with all of our hearts, to restore
a

sense

the

decency
labor-management

morality and
of

area

relationships!
The

likewise.

should

support these
strengthening provisions, and the
Congress should
accept them.
Once again however, the issue is
course

the

not

economic

primary

union

welfare

the

issue

the

devil

the

quarrels of the primary
disputants. Through its use, the

union forces

irreparable economic
and their
employees who are in no way
associated with the labor dispute
other than through their innocent
relationship of customer, supplier
or simply by-stander working
on
the
same
lot.
Deprivation
of
employers

upon

And so it is with other urgent
Taft-Hartley issues today. For ex¬
ample, the right to a strike vote
is
not
a
necessity for the em¬

economic

well as of
I challenge

power

public responsibility.

leader to act in the

union

every

unselfish

industry to
to

in business and
conduct yourselves
the
ever-growing

you

merit

prosperity

I chal¬

of all.

interest

lenge each of

American

of the

sys¬

tem.
It is

imperative that

system

can

enterprise

Ameri¬

our

capitalistic

free

preserved!

Groups Expected
on Kentucky
Turnpike Bond Issue

FRANKFORT, Ky., May 25—
concerning
Kentucky's
initial 40-mile toll turnpike route
of the millions of nameless union
and its financing through the pro¬
members
and
their wives
and
posed issuance of $38,500,000 of
children who suffer through the
Turnpike Revenue Bonds, were
but

ployer,

moral

becomes

without

matter

decency when

deprivations

strike

democratic

Similarly,

called

process

domination

explained here today by Governor
Lawrence W.

Wetherby, Highway

Commissioner William

communist

curb

Details

think

power-mad union leaders.

and

Curlin,

representatives of Glore, For-

unions, we need gan & Company, fiscal advisors to
thorough
legislative study, fol¬ the Kentucky Department of
lowed by such effective action as
Highways.
a
subversive
activities
control
The public information meeting
board; it becomes morally neces¬ held at the State Capitol today

heaps

sins and

rule

To Bid

to prevent society from

boycott.

secondary

device

to
by
fairness, not expediceny,
and to preserve between
management and labor a balance
the

Four

mitting

the innocent third party the

way of life.
challenge the Congress
the Taft-Hartley Act

nomic warfare.

self-destruction.

This

moral

and

less ob¬

upon

loss

ployees, and to protect the public
short, to preserve morality
decency in a system which
otherwise permits restricted eco¬

the

amend

—in

sary

moral
in

scure

political

Outside
the

the

com¬

attended

was

economic investment

and

Taft-Hartley

area

cities

pal

than

bankers

from

dealers

•

and

security

Kentucky's princi¬
from
Cincinnati,

and

Ohio.

compelling need appears
Governor /Wetherby emphasized
For example, the
current drive for the guaranteed that primary consideration of the
turnpike
project has
annual
wage
does not partake Kentucky
designed
to
relieve local
alone of the great humanitarian been
elements
ascribed
to
it by the traffic conditions and is entirely
CIO.
It is well recognized as a independent of toll turnpike proj¬
same

time and again.

cover-up

the

for

elevation

unconscionable

unemployment bene¬

ects

The

fits and costs at the local govern¬

consideration

under

now

adjacent

other states.

Governor

and

some

of his

unfortunately associates have conducted similar
public is not the some
persons in high places have information meetings recently in
least evil involved.
The boycott
fallen for the ruse. If successful, New York City and Chicago.
is a thug's blackjack which forces
it could mean the construction of
Sealed
bids
for
$38,500,000
unwilling employees into unions, a Frankenstein monster of local
Turnpike Revenue Bonds (series
and
helpless employers into in¬ government costs and individual
1954)
of the Commonwealth of
solvency. It destroys the freedom law evasion of more horrible
pro¬ Kentucky, dated July 1, 1954 and
of choice in
our
economy,
and
portions than even Frankenstein maturing July 1, 1994, will be
sometimes prevents the individual
dreamed.
opened on June 8 at 10:00 o'clock
from exercising his right to work
in the morning at the office of the
at a job of his own choosing. In
The Increasing Burden of Social
Commissioner of Highways in the
the spectacular New York news¬
Security Benefits
State Office Building in Frank¬
paper
strike of last December,
In the same field we find the
fort, Kentucky.
the boycotting union£ who were
imminence
of
increased
Social
services

not

news

coming

handle

refused

stories and advertising

from

the

struck

news¬

thus blacking out from all
printed news the largest city in
papers,

the

world, violating the constitu¬

tional

guarantee

costing
$5

million,

the

help¬

depart¬

this

panty-waists.
recognize the inevitability

occasional

over

destroying
like

business

second¬

business

None

stores.

all

and

advertisers

labor

Press,

Free

and

newspapers

Christmas

ment

the primary

employer

ary

prefer
like

which

conflict.

But

bully

the

the gang

innocent

children

the

Taft-Hartley

most

fair fight, and few

the

and

caught

are

beats

women

who

switches.

boycott
be

that

his

the Presi¬

Message,

indefensible

permitted."

statement

and

with

must

earlier

by Senator Taft to the effect
that no witness before Congress
had
shown
any
difference be¬

are

various kinds of secondary

bad

the conclusion that
obvious.

and

The

Security benefits
rise

the

Unfortu¬

base, spurred

political

pressure,

only compounds the felony

so-called

security insurance
which is neither security

system
nor

with

coupled

taxable

union

which

insurance, and which will

one

day build another monster of such

gigantic financial proportions that
both unions and
become

its

the

to speak

Worse, too

gressional

out

morality
the

pany's

front

hall,

the

rise,

office,

alike.

ment

who

evidences

gov¬

and

conduct

outside the moral code.

agement

com¬

must

indict those

management

responsibility.

then, to

govern¬

the

will

issued for

paying the cost
proposed turnpike which

the

are

extend

Louisville

from

Elizabethtown, Kentucky, and it
is expected that the turnpike may
be open to traffic by Jan. 1, 1956.
According

Company,
are

four

now

each

formed

these

&
there

that

have

bid

groups

C. Allyn

for
are

Com¬

Company, Halsey
Inc., and Union Se¬

Stuart

curity

Company-C.

Co.

Forgan

groups

These

Blyth

pany,

understood

accounts

bonds.

headed

Glore,

Co.

Devine

Each account will contain the
of

names

investment

firms

from

today

mediately
bids
will

upon

June

the opening of the
8, announcement

made of the group sub¬
mitting the highest bid. The bonds

will

form

delivered
or

about

definitive

July 1', 1954.

themselves
The great

the national labor-man¬
scene

bonds

purpose

all over
the country who have
that shown an interest in this financ¬
home,
ing, and it is expected that im¬

the

and

Each

labor,

issues

So¬

the

I say with¬

imperative

union

ernment

offering

equivocation

Con¬

already

votes

Security will be
fear

our

have

their

that

against

out

the Fall elections.

Many
haven't

many

friends

admitted
cial

slaves.

businessmen

courage

it.

government will

abject

American

Supplement

one

tween

level,

are

dent said that "the true secondary
not

ment

the

strike

even

all

Featherbedding

one

economics

boycotts, and
of

does

are

greater

only

under¬

Gardner Chiles

Trip

To East Coast

nately, the President was misled lying weakness. True, that factor
Gardner Chiles, Denault & Co.,
into recommending the legaliza¬ does not stand alone in a thor¬
is
analysis, but it looms so Russ Building, San Francisco, is
tion of secondary boycotts of ough
The Musician's Union
adds un¬ farmed-out work and at construc¬ large
in any thoughtful attack making his annual tour of the
conscionable
costs
and
destroys tion sites. The Smith Bill in the upon the riddle of organized labor East Coast. He will spend con¬
that it cannot be ignored.
siderable itime
at
Chicago,
St.
workers'
morale
by forcing the Senate provides for such legaliza¬
This very moral turpitude has Louis, Boston and New York City
employment of stand-by bands. In tion, as does a tentative House
consulting with leading invest¬
led to the growth of a dangerous
almost every major newspaper in Committee Bill.
Those proposals union
monopoly power which can ment bankers, brokers and deaLthe
country the
should be rejected. On the other one day engulf the system. Monop¬ ers.
Typographical
The

Sundays only.
to

un¬

civilization

Perhaps the time has
us

least,
the

century.

and

Virtue

Laws cannot be

abide

during

should
fiber.

street.

without

employers

offends

fundamental

membership

shi'.by treatment received by the
many

morality

must learn his great

w:rker

from

the

tribute

own

over man-

cg:rlal

nostrils

because

cency
of the labor-management
relationship. Those men in man¬
agement who have paid kickbacks

sug¬

remedy this

courage

less

eradicated

dermines

the vineyard of union
problems' to preach a sermon, but

Congress

them.

use

once

vital

the

practical

situa¬
tion, but the Supreme Court vir¬
tually struck down the law. Will
this or any succeeding Congress

be
The

techniques

from

refusal

bargaining advantage which
might accrue.
The stench must

con¬

tradictions?

and

barred

insist

doing

labor-management

the

scene.

work¬

who

together

Let us briefly analyze a
of these current burning is¬

sues

consci¬

entious
ers

cause

today.
few

bombings of

some

which draw

the evils

war

conscience

the

find

Labor-saving
have been
industry by union

home.

return

tools

national

our

effort

version

tive

their

they

expediency.

examine

loopholes in the law. Except as
just mentioned, the House tenta¬

respective pants.
Bricklayers and millions of other

process.

trucks and ve¬
helpers

our

occupation is to assist
in
wearing out the

driver

the

seats

democratic

the

economic

hand, Senator Schoeppel of Kan¬ oly is abhorrent to our American
sas has introduced a bill (S 2989)
way of life, but monopoly cannot
which would correct many of the be curbed without restoration of

employer in¬
volved.
It is( not a question of
bargaining advantage or of dollars
and
cents
to
the
quarreling
workmen
Such legislation is im¬
perform a ridiculous parties.
minimum quota per day, stretch¬ perative
because it is the only
ing it out over the required hours known way to protect the inno¬
to the point where they must hate
cent,
to
outlaw
the
economic
to look into the honest faces of blackjack,
to
preserve
the in¬
dividual rights of third party em¬
their wives and
children when

relations

leaders; (2) featherbedding by unions; (3) secondary

boycotts,

engage

Teamsters,

so-called

with

whose chief

(1) low moral standards of labor

expert lays situation to:
union

contradictions,

hicles

pock¬

scene as

The

irresistible

almost

pressure,

Describing today's national labor-management

of decency

sense

deceit.

such

with

"Sentinel"

And Now Publisher of the Milwaukee

cost

its members who must

Labor, Hearst

the reset type
adding millions to
of consumer goods and

away,

tearing down the

By ROBERT C. BASSET!'*
Former

of type

in the paper,

have

thrown

Thursday, May 27, 1954

The Commercial and Financial Chronicle...

(2314)

1954.

problem of featherbedding
draped in no different gown.

Number 5328

Volume 179

;

...

The Commercial and Financial Chronicle

(2315)

volve

Financial Side oi Our

thus

Economy

transition from

is of fundamental importance to our

Ihlefeld evaluates the impact

of recent economic changes on
various segments of the economy. Reviews basic changes in
commercial banking and other financial institutions, which he
of Federal

eral Reserve

developments.

Looks for

Treasury deficit financing, but indicates
available funds for investment and

vate

Business

activity has been

nomic

field

attention
in

the

By the end of last February mem¬
ber bank investments had reached

There has been considerable

con¬

expressed

about

the

clining
in

de¬

trend

business.

Less has been

effect
have

will
the

financial
our

side
econ¬

Yet, the

omy.

transition

buyers'

market

from

sellers'

market, which
Ihlefeld

August

last

been

der way

un¬

since

is having

summer,

effects

has

our

profound
and capital

money

These effects which will

markets.

continue in the months ahead are

direct

im¬

fundamental

and

The great growth

113% of loans.
of

time

years,

deposits during the past

impetus

of course, gave added
the rising proportion

securities

commercial

bank

portfolios.

said about the

1929.

in June

1920, to 39%

months.

recent

cern

June

This

the

War II
boom,
getting under way
again. Loans and discounts have
been shrinking and there is little
reason to expect, from the present
outlook
any
appreciable upturn

30,

On the other

have

investments

begun

and

capital

and

credit

the

management

debt

management,

mar¬

kets.
Basic Changes in

Commercial

Banking

changes in our times.
market boom of the

many

stock

The

ending

year

June

1955,

United

States

Treasury will have
impact
even
greater
than
usual on the money and capital

authorities have

grade securities.
•

ficulties

consequence

any

for

problem

The

years.

many

financial

over-extended

institu¬

tions, which was so characteristic
of
previous severe declines in
business, has not arisen. As a re¬
sult, there has been no forced
liquidation of loans and reduction
of the money supply as in previ¬
ous
business readjustments.
On
the

Commercial banking has under¬
gone

fiscal

expand, and current indications
—especially the continuation of
Policies of the Reserve Authorities
deficit financing by the United
There has been no secret about
States Treasury—point to a pro¬
Reserve
policies
since
longation^ of this expansion. All Federal
last May.
this means increased competition
The Federal Reserve

An
outstanding
and
indeed
impact of these
changes requires at least a brief comforting feature of the business
analysis of the financial position readjustment is the strong posi¬
tion of our financial institutions.
of commercial banks, corporations
and the government which will
Banking, in particular, is in a
determine Federal Reserve policy, very strong financial position.
There have been no banking dif¬
Treasury operations and the sup¬

give you an outline of probable
developments in credit and money

the

might reach a much
than the $3 billion
that was anticipated
at the be¬
ginning of January, this year.
This
financial
position of
the

To evaluate the

and demand for credit and
capital in the months ahead.
Along with this analysis I shall

In fact, it now looks
Federal budget deficit

markets for the next few months.

for high

supply
be expected to increase be¬
the

contrary,

may

the commercial banks are in

cause

the

meet not only

position to

money

declining

seem

consequential basis,

any

present

conditions.

With

Treasury 3V4S crowding a
of 110, and all other gov¬

ernment bond issues

selling above
it would be difficult to justify
such purchases. This is a specific
reason
for
expecting that
any
further
easing of money and
credit by the monetary authori¬
duction

portion in commercial bank port¬

folios,
could
directly
Treasury actions. 1

Term Market

Based
of

oriented

aims

unequivocal

terms

Their

opportunity.

every

their

announced

at
an¬

nounced and obvious primary aim
is to prevent

decline

Just

ous.

what

the present business
becoming too seri¬

from

obviously,

matter

might be said to the con¬
their secondary aim is to

trary,

assist the Treasury in

its refund¬
ings as well as its coming new
financing.
And, now, with the
growing Federal deficit and the
growing demands that "something
done"

about

increase

the

inflationary

which

are

tional

central

their

building

up.

bank

pressures

Federal

the

not

seem

reasonable

conclusions
the

through

which

have

the

for

There

might

duction

the

BUt

this

should

and

ma¬

even

demands

tions

non-financial
the

reached the huge

lion.

ity

This

1949.

was

And,

1953

double the liabil¬

now

the

end of

the further ac¬

celeration

recommended

President,

that

half of the corporate

Continued

1959

widely

vary

page

not an offer to sell or a solicitation of an offer
buy these securities. The offering is made by the prospectus only.

present

under

circumstances.

indus¬

Lowering the discount rate, for

easily through the capital markets
that most of them became inde¬

try, but also the additional money
requirements of the government.
As such needs will be met largely

has little more
than
psychological impact, under cur¬

pendent of bank loans. ^As a re¬

with

enabled

twenties
tions

life.

The
was

banks

had

way

investments

turn

commercial

the

sult,

large corpora¬
themselves so

finance

characterized
in

loans,

United

States

Federal

investments

banks

member

were

World

The

of the

War

1933,
of

period

early forties, with its tre¬
deficit

mendous

financing,

did

bring about an increase in loans,
"but

there

pansion

was

far

greater

investments

result

the

year

end,

that

than

times

three

securities,

investment

ex¬

these

United

Government

States

with

banks

commercial

the

1945

held

and

were
one-half

loans.

still

find

there

has

been

persistent upward trend in the
percent of investments to loans in
the

Federal

banks..

banks

Reserve

member

from 31%

regardless of

present

for

the

for

stocks

price

absolutely /and
present 50%
on

stocks is

the

if the

relatively.

of loans in'

both

The

and

it could

need should arise.

meantime,
have

not

does

small,

margin requirement
high; at least, histor¬

speaking,

ically

reduced

purchase

are

this margin
restored

it is consid¬
erably higher than the banks
prices drop,

and

otherwise

would

not be

require, margin
forced sales

with their

will

problem.

The

growing purchase of equi¬
companies, pen¬
sion funds, trust funds, and mu¬
tual
savings
banks has
added

ties by insurance

basic investment strength to

quality

equities

these

high
pur-

chases are made with real sav-

*An address

by Mr. Ihlefeld before the
Banks Officers Forum, Group
four, New York City, May is, 1954.
'<
Savings

;ingS.

Cannot

...

tOO

Strongly em-

conditions

rent

banks

are

not

using the discount window at the
Federal

Bank

Reserve

know,

you

increase the

supply of loanable or
But, it does

lowering of interest
rates generally and thus favor¬
ably affects the market price of
high-grade bonds.
encourage

50,000 Shares
$1.20 Cum. Dividend,

reserve

reserves

Such

the

commercial
the

crease

demand

for

front

would

along

directly

in¬

wide

medium-term

short-

and

government securi¬

ties; also, for tax-exempts.

As all of these
effects are earnestly desired by
the
Administration,
it would

STRAUS, BL0SSER & McDOWELL

to be

only

H. M. BYLLESBY AND

throughout
Federal

deposits for ' banks
the country.

Market

Reserve

Account

System

Open

purchases

other

COMPANY DEMPSEY-TEGELER & CO.

(INCORPORATED!

IRVING J. RICE & COMPANY,

FUSZ-SCHMELZLE & CO.

reserve

demand

BELL & FARRELL, INC.

AMES, EMERICH & CO., INC.

programs.

a question of time
requirements are
lowered both on time deposits and

until

from any of

L0EWI & CO.

Indi¬

rectly, but nonetheless power¬
fully, it would stimulate home
construction
as
well
as
public

seem

Copies of the prospectus may be obtained
the undersigned licensed in your state.

loans.
It
increase the de¬

banks for

PRICE $6.25

PRICE $20.00

the

mortgage

from

mand

banks

($1 par value)

($20 par value)

commercial

increase

lending and investing capacity of
the

Common Stock

Convertible Preferred Stock

requirements,
on the other hand, would directly,
and
immediately,
increase
the
banks.

100,000 Shares

Lowering

free

REFINING

does

funds.

investment

reduction in the
not directly

rate

discount

OIL

any

Furthermore,

consequential basis.

tphasize that..such purchases in¬

CLARK

example,

works

these

Investments
rose

loans

common

calls

Omitting the valleys and peaks
of depression
and war periods,
we

The stock market,

fact,

secu¬

June

steady.

loans.

in the money

Reserve

Government

were

tively

increase
supply is inevitable.

expansion,

92%

banks

expanding and other
investments
were
holding rela¬

rities

credit

and

levels, is not a serious problem
to banking as in previous read¬
justments. The end of the business
boom was not caused by a break
in the market; nor has it been
followed by a break in the prices
of equities.
Bank credit is not
being used on any consequential
basis to support stock prices. In

by a sharp con¬
while invest¬

commerical

ments

trade

needs

justification

the thirties

depression of

traction

credit

INCORPORATED

THE MARSHALL COMPANY

METROPOLITAN ST. LOUIS COMPANY
V

May 26, 1954

LINK, GORMAN, PECK & CO.
-

the
one-

tax liability

ability and utility of these weap¬
ons

had

total of $19 bil¬

evidenced

corpora¬

end

This advertisement is

are

the

desir¬

the

re¬

from

would

loans

for

great problem with interest rates

de¬

some

certain.

books

provision for tax notes and other

turing.

excess

the

discounts.

and

acceleration of
payment of corporate taxes. For
example, the tax liability on the

certificates, to say nothing of the

obligations

the

credit

demand

$9 billion of the Decem¬
ber 2s of 1952-54 and nearly $16
billion
of
Treasury
notes
and

non-marketable

ac¬

Factors which will increase the

desired

bills

into

reduce

loans

means

around

Treasury

reserve

price declines a little later
year, although this is by

modest

in addition to the
has to refund
current
year
end

will

tax

mand

refunding,

roll-over

for

funds

over

taken

elimination

and

The Treasury,

the

and

must

headed

before

loanable

lowering

the

profits

effect.

June

specific, lower busi¬
volume, consumer credit re¬

ness

quantity offered would, of course,
be fitted to that purpose and it
would not have to be too large
offering

outlook

supply

payment, inventory reduction,

banks

prevent long-term rates from de¬
clining too far. In such case, the

markets.

To be

count.

might
issue to

long-term

outlook

On the demand side, there are
important factors of decrease

Of course, there

token

the

capital

the very
near
term through the return of
currency from circulation up to
the vacation period.

conditions

the better.

basic

requirements,

be expected unless business
change materially for

may

and

increase

later offer¬

commercial

for

Treasury

In the short-term funds market,

ings; therefore, further new issues
suitable

and

credit

the

expect that this stimulating effect
will be overlooked in

Reserve

policies, it will now be comparativley easy to arrive at reasonable

The tradi¬

weapons

but

disposal;

does

the foregoing analysis

unemployment, they have a third
responsibility, namely, to keep in
check

the

important financial
factors, and estimates of probable

Probable Treasury Policy

Treasury policy in the coming
must

affect

Supply and Demand in the Short-

probably be through re¬
bank reserve require¬

ments.

months

investment

market will, of course, influence
Treasury decisions. In particular,
the
expanding volume of taxexempts and their growing pro¬

par,

ties will

other

and

opportunities decreasing. Compet¬
itive
conditions
in
the
capital

none

larger figure

now

seasonally.

except
hand

and

post-World

Strong Present Financial Position

ply

for

but

price

sys¬

expected.

the increase in lending to

portance to all of our financial in¬
stitutions.

reversed with
finance

temporarily

was

investments

toward

trend

financial

our

Treasury bills do not

growing volume
of
deficit fi¬
difficulties have oc¬
Declining revenue be¬
are
anticipated. nancing.
cause of declining business activ¬
The
Federal
Government, in
contrast
with
private financial ity and the growing tax cuts and
institutions, is not in an especially increasing social security expen¬
ditures inevitably means a larger
favorable financial position. There
deficit.
The anti-deflationary
was
no
overall decrease in
the
of
deposit
expansion
public debt during the 1946-53 pressure
will be secured by financing this
period, one of the greatest boom
deficit
through the issuance of
periods, we have ever had. Al¬
securities which will be bought
though our public debt "is very
large, and heavy refundings lie by the commercial banks, such as
has been done in recent financing.
ahead, still larger deficits must
curred

eco¬

the

pri¬

the

saying that it is in strong

position:

will not be due to weakness of financial side of the economy.

center

summarize

sector

tem by

declining demand for
Concludes,' if business activity falters, it

long-term capital.

our

instead,

me,

plentiful supply of

strong

companies, and of
mutual savings banks
which have unparalleled financial
strength, could be analyzed in de¬
tail but time does not permit. Let

growing volume of

also in

are

than

likely
under

purchasing of the 1920?s.

Corporations

course

strong financial position.

all, and

insurance

Holds reverse is true
Government's situation, and discusses recent Fed¬

says are

position today. Their net
working capital is close to $93,000,000,000 as compared with only
$68,600,000,000 only five years ago.
The financial position of lead¬
ing financial institutions such as

buyers' market
financial institutions, Mr.

sellers' to

credit

far different from much

financial

President, Savings Banks Trust Company, New York City

In pointing oat

bank

are

of the

AUGUST IHLEFELD*

The Commercial and
16

Financial Chronicle ...Thursday, May

(2316)

THE MARKET..
By WALLACE

peak. Hovering at the poorest a deterioration of leadership.
price of 1953-54 recently, it Whether this is a signal or
means that virtually all of the not, the fact remains that the

AND YOU

active

most

issues

different

It is what

been cancelled out.

has

STREETE

1946* /split

since its

progress

after1

long

illustrations spell during which New York
around to give theJ.ie to the Central, Radio, General Mo¬
The overhead resistance in when Textron, which is seek¬ story told by the averages, tors and American Telephone
the 325-26
area
stalled the ing control of the company, that "prices" are the highest were regulars in top positions
stock market again for a while offered several points above since 1929.
on the list. Recent most active
issues have been such as
this week, leaving it pretty the market for offerings total¬
of

one

many

down

the

much

ladder

"bull

without

market"

offered little

though they

poised in

are

where

too much

Rails

help.

help, either, al¬
wouldn't

an
take

strength to test the

1953-52 top.
•v

Blue chips mostly rested,
although some light pressure
was enough at times to drive

General Electric off
and

-A

Some

bit hard

Registering

Issues

Declining Highs

News

Some of the individual

pany

among

of which

in lieu

On .'stock

Detroit

Steel

was-also

the dividend casualties

among

line

famine

days is

the

pre-war

one

the other soft-

trace¬ goods issues. For one not in
able to dividend news, includ¬
the group that has a similar
ing sell-off s|by Celanese on a
trimmed payment and Deep pattern there is United Fruit,
cash.

the basis of non¬ ning markedly behind last
recurring profits that look year although some of the in¬
good at the minute. This ternal measures taken to cut
classic example of a feast and costs have had a beneficial
on

directly

were

Rock Oil

been due to a series of market
shares subdued. With the
reports cautioning against too April reports starting to ar¬
much enthusiasm for the
rive, revenues are still run¬

of the segments of
big business that hasn't what
might be called a "normal"
Both American Woolen and
profit base from which to
Celanese had plenty of com¬
start calculations.

swings

get in

group

has

fallen

the staid ways

fore

bit

The search among

from ondary

it followed be¬

political unrest started in

might
the

in
when directors took np action. Central America. At the cur¬ for
spotty attention at inter¬
rent level, United is some 20 vals with long strings of
Avco, or Allegheny Corp., or
:;*■ American Woolen's recent points below the best of 1952
Republic Pictures, taking over
erratic history continued and 30 points under its 1951
the tape momentarily. But it
NOTICE

HOLDERS ■.'■OF

that

maintain

who
To

market

January 1. 1946, due
January 1, 1976

NOTICE IS HEREBY GIVEN that, pursuant to
of the General Bond, dated

LIC

while

But

the provisions

of January I, 1946, the REPUB¬

such

play is

thereof.

views,

correction of

some

Play

this

Utilities

since last

point advance

quiet

way

outstanding
Du-

been

has

section

week

this

that

push

new

utility

September. A large working
rampant

actively

commercial

toward

REPUBLIC OF EL SALVADOR
„

By Banco Central

May 27, 1954.

Reserva

Salvador, Fiscal Agent.

N--B-—After June 30.

1954,

additional 4%

External Sinking Fund

the

correction

of the

none

July 1. 1948 who surrender such

Bonds in-acceptance of said Offer after June 30. 1954,will receive in lieu
of said 4% External Sinking Fund Dollar Bonds, a cash distribution

equal
amount

the .principal.amount

from January 1, 1946 to

thereof

plus

July 1, 1954

accrued

the

rate

interest

of 4%

oil

per

rather siz¬

lurking
the

point

market

swing into action
and

and

they

setbacks

quickly cancel them out.

The ranks of sold-out "bulls"

Bonds

seem

follow^

any

are

under

are

matured

selling spells

body of bargain hunters

cline

which

but

able

dated

imminent,

through. Instead,

waiting for

Series

before

bargain-hunting

which

optimistic

outlook

predicated:
"While

un¬

employment

reported

was

have

Curtice

Harlow

reached
of

March,

drop of 260,000

peak

3,725,000 in
was re¬

This drop was
partly seasonal, but it would ap¬
pear
to comfirm the viewpoint
for April.

ported

that

the

has

rise

unemployment

halted

been

that

and

further in

likely to decline even
months ahead.

the

"Too little attention

is given to
employment, which is
reported to be in excess of

the level of
now

the

and

armed

This
a

com¬

ago

year

58,500,000 in 1950 when things
considered

also

were

While
at

forces.

with 61,000,000

pares

current

booming.

employment is not

level, it is at the best

record

attained at this time of

level

ever

year

with the

exception of 1953.
other

some

are

factors

contributing to the overall

are

the

health of

economy:

"Consumer savings are at a rec¬
ord

high, and the rate of saving
the

than

first

quarter

higher

was

year ago.

"Consumer

disposable

income

has been running higher than last

has

consumer

now

faster

spending.

being

are

con¬

than

rate

they

being produced.

are

"Investment

expenditures

being maintained at

construction

"Total

tablished

"The
holds

expendi¬

the first four

tures in

months

es¬

record.

national

gross
to

are

high level

1953.

comparable to

rate

very

product

last

near

year's all-time high level, despite
decline

substantial

nation is

defense

This indicates that the

spending.

readjusting from

"All

The

atomic

prime

energy

part-

peace economy on a very

mine

uranium,

had

have

take to the sidelines after

last

good

such

been

taken
the

over

this

Duquesne and

Copper which have

latter

ment

the "atomic"
the

play,

announce¬

its

week that

ernment

would

expressed

first

that 1954 will be

for

business

generally

re¬

oye-

good

popularity. Instead it has bile

Anaconda

which

year

indi-,

economic

to reinforce my con¬

serve

January,

and

cent

these

cators

issues, i.e; the companies that viction,

considerable de¬ processing work for the gov¬

"As

for the automo¬

stands:

terms

last

in
the

Motors,

January

'General

sales

from

General

for

forecast

year

business in particular.

Motors

physical

1954

high

and

should

not

still

volume

dollar
be

far

attained

level

1953:"

enlarged
With J. K. Mullen Co.

growing to the crowded significantly.

(Special to The Financial Chronicle)

stage.
s>:

[The

❖

usuch

aphum.

facts

sound, orderly basis.

the

generate

Dollar

Bonds, due January 1, 1976, will be issued pursuant to the Offer
April 26, 1946 as extended to January 1. 1955. However, holders of
Republic of El Salvador Customs First Lien 8% Sinking Fund Gold

that

expectation

following

war

utilization of atomic energy.

the

cited

and

quarter of a cen¬

Somewhat

this

business,

poor

sumed

to the best showing

nearly

the

talk

year.

proportions after highs, in part due to the fact

70-odd

the

amount of caution is

Said Bonds should he surrendered for payment on or after
July 1, 1954, at The National City Bank of New York, Corpo¬
rate Trust Department, 22 William Street, New York 15, N. Y.,
New York Agent, of Banco Central de Reserva de El Salvador,
Fiscal Agent, with the January I, 1955 and all subsequent cou¬
pons attached. From and after the redemption date, interest
shall cease to accrue on the Bonds called for redemption and
the bearers thereof shall have no further rights thereunder,
except upon surrender of the appropriate coupons 1o receive
payment of interest thereon accrued and unpaid to such re¬
demption date and upon surrender of sufli Bonds (together
with all coupons maturing after said redemption date) to re¬
ceive payment of the principal thereof.

for

considerably overdue in some quesne Light which continued
worthwhile

mistic

de¬

pessi¬

cried

one-day-

now.

OF EL SALVADOR will redeem and

hereby calls for re¬
demption on July 1, 1954 (the date of redemption >-nil its 4%
External Sinking Fund Dollar^ Bonds, dated as of January 1,
1946, due January 1, 1976, issued and outstanding on June 30.
1954 at the redemption price equal to the principal amount

margins,

narrow

Atomic

The

W„

Curtice

"Goods

tury.

President,

Harlow

that

performance

group

General

the

"So

Corporation, of which he

"Here

4% External Sinking Fund Dollar Bonds,
as

shareholders

sjs

three weeks

dated

Motors

mostly has been

a-week

explosive windup of rampant
speculation are still waiting.

Republic of El Salvador

economy.

bull have fared well in
forging as

without

end

can

the

ly in nudging its high along

students

the market

and

far

REDEMPTION

by them

While the senior section of

the route

contrib¬

Addressing, at Wilmington, Del.,
on
May 21, the annual meeting

the list has succeeded recent¬

came

hasn't been too worthwhile

suc¬

any

high of last year some two
points away could revive the

sec¬

some

low-priced issues

cessful assault

❖

the

factors

the action of the

crucial and

over-all health of the

60,500,000, exclusive of personnel

profits state¬
again partly a

issues for those that
be ready to make a

continued and

move

rails

uting to

the

where

case

stockholders

ments.

industrials.

Searched

Secondaries

effect

Optimism

President of Genera! Motors tells

line this week, prob¬ pectation of a pickup in rail
ably
because
the
division business after the first quar¬
wasn't overly popular gener¬ ter was one of the
disappoint¬
of
ally. A part of this might have ments that kept the carrier

Celanese, as a matter
Telephone had some momen¬
fact, has a similar record of
tary
weak spells. But re¬
declining highs since
1951
covery was as prompt as the
which have carried it from 58
pressure was spotty. Among
to below 18. The halving of
the other quality issues, du
the dividend was sufficiently
Pont was
somewhat promi¬
anticipated so that the issue
nent in resisting the pull
held, on the immediate news,
either way, while Allied
a fair margin above its year's
Chemical showTed a mild in¬
low—the postwar low, inci¬
clination to dip when an easi¬
dentally—in the 16 bracket.
er
tone was prevalent.

Dividend

Among the aircrafts Grum¬ Greyhound, Texas Instru¬
which would increase Us
man
stands out in that it ments, Equitable Office
holdings by a third more. The
probably is the sole member Building, Illinois Terminal—
price level of the issue, how¬ of the major airframe pro¬ even lowly Benguet Mining
which has the unenviable title
ever, has been such recently
ducers yet to post an all-time
that no historic records were
of being the Stock Exchange's
high. The best price of the
set although it did post a new
most regular "penny" issue in
year reached by the issue has
high for this year above 22. been a shade above 28 which the under-.? 1 bracket where it
This compares with a 1953
approximated last year's best occasionally is joined by Le¬
high of past 27, with 37 in and is a few points under the high Valley Coal.
1952 and nearly 47 in 1951.
highest reading of 1*952. It
i'fi
showed no great disposition to
The somewhat general ex¬

American

staid

even

100,000 shares

to individual issues ling up to

to work their way up or

area

•'»

»■»
'»•

much up,

Factors of

some¬

are

27, 1954

article

There

has

been

what <the -market

recently

analysts-call

time

views
do

coincide

Chronicle.
those

not

expressed

necessarily

those

with

They

are

of the author

this
any

the

presented as

only.]

/DENVER.
Campbell is
Mullen

Colo.
now

Donald

—

with The J. K.

Investment

U; S. National Bank

Company,

Building.-

Volume 179

Number 5328

...

WUM.IM1W4WW it

rflj

The Commercial and Financial Chronicle

iinnuiMfrfii
■

1-MvMvt-

•I*>Xv'.vXy

■*

$ :.V>

Safeway, the world's second largest retail
food concern/set
1952

•

Safeway's 2,037 retail
,

tfee'U.S.A

earnings in this first post-war

...

stores

-t'liWH"'

competitive business conditions

arfi^lflcated-^n^S'States*of
r

Hit sales top I9S2
:

!,;Y>a'WXV/"v

; ■

■

•

•.•

•

Thirty-one
end and

of normal

year

5 Canadian Provinces.

ana

new stores were

;

record for sales and nearly doubled

new

■

sf$ecificatiohs5VrereT completed

completion for 121 additional

process

Topping the record.-year of 1952, net sales for 1953
of

Safeway Stores, Incorporated and alhsubsidiaries
reached-$1,751;819,708, the greatest in the Company's

under construction at year's

history. This

stores.

the

over

Mvk'"y:v?x\

increase of $112,724,49&«r 6.88%

was an

previous high set in 1952.

■>'

•

In 1953,

Sqjfeway contributed $6,700,619 in the'form of
net profits continue up

city, county, school and local district taxes toward the
cost

of local government. In

1953 net

addition, it paid $21,231,592

the state and feaeral governments.

«or

income, sales, excise, franchise and social security taxes

profits before income-taxes

nearly double 1952's

Aftej allowing for

taxes

and

Excellent
Liberal

employee relations

Canadian

year.

taxes

income of

after income taxes

insurance, retirement and profit-sharing

group

programs

■MMtM

maintained c!l

were

$29,620,074

after'providing for United States Federal

Norma! Income Tax and Surtax of
•

''-j 4

were

profit of $17,094,348?
refund of $470,122 of excess profits
net

$12,026,000 and

$3,185,000, the

net

$14,544,732 for 1953

was

profit

com¬
i* f

pared with $7,331,943 for 1952.

are.available to all employees.

ox'x.y

earnings and dividends
Net

ttw.y.w/.wwA^w.y.j

'&y&:

the

|J||f

stock, after payment of
preferred dividends of $1,914,418, were $4.31 per share

wnmm*
ifiifptl

earnings

common

the 2,928,159* average number of

outstanding during 1953. This
share earned

1952

common

compares

with $2.01

per

the 2,831,207 shares outstand¬

ing. Dividends.on the 291,886 shares of 4% cumulative

preferred and 120,177 shares of 4!72% cumulativejrpn-

in 1953

vertible

preferred stock outstanding at the end pf the

Paid out to Farmers and other

Suppliers of
Expended for Manufacturing
and Warehousing
V
Goods and

Paid out in Salaries, Wages
Paid out for Operating

year were

and Bonuses

the payment

Paid out for Local, State and Federal Taxes
Set aside to

cover

of the 109th consecutive dividend

Surplus

assets and liabilities
Toral

$100.0D

$100.00

net?assets on

all subsidiaries

of the

same

liabilities

Wm&m

date

were

to current

December 31, 1953 of Safeway and

were

$138,196,700. Total

were

$141,721,275. The ratio of

liabilities

was

current assets

$233,101,905 and total

current

current assets

1.64 to 1.

mmmm
~

/
'
-

SAFEWAY STORES,

2
Net Assets

PerShareof

Preferred

Surplus

Book Value

PerShareof

Capital
and

jts

Compensation to Elected

Officers

Depreciation

Profit for Stockholders and
as

^tock in December, 1953.

•common

per

the common stock. The Company's
uninterrupted dividends was maintained by

record of

Supplies and other

Expenses

Paid out

earned 8.51 times. Cash dividends of $2.40

were* pa

Common

Stock

Stock*

$ 62,564,498

$299

63,604,685

311
359
388

Common
-

21.96

Stock*

20.18

76,039,946

Stock*

16.97

71,901,081

INCORPORATED

Dividends Pd. Net Earnings
PerShareof
PerShareof
Common

428

24.44

488

81,972,829

91,236,990

$16.40

LIBRARIAN, SAFEWAY STORES,

INCORPORATED

P. O. Box 660, Oakland 4, California

28.22

115,215,274

371

29.76

113,821,747

377

29.58

266

29.03

335,

31.23

132,273,480
138,196,700

•Number of shares adjusted to reflect

NAME

STREET

April I2,J945 3-for-l split,
ZONE

life

STATE

<•

■■

(2318)

The Commercial and Financial Chionicle...

Thursday, May 27, 1954
r

Ohlandt, Milt, Young and Plnmridge

Sterling Exchange Rate Holds Up
By PAUL E1NZIG

Dr. Einzig explains causes

change, and states there is

Join New York Hanseatic

of recent firmness in sterling exto believedhat the British

with

;

Open Boston

Branch

LONDON,

Eng.

One

—

for

reasons

the

firmness

sterling
during
April
and
the
early part of May was the wide¬
spread
belief
that

the

ish

Brit¬

Govern¬

ment

decided

widen

limits

the

-t h

27%, since
September, show declining
payrolls in May.
Most of these
the

al¬

Under
Bretton

under
Einzig

pleased.

sterling
from depreciating or appreciating
by more than 1%. On the basis
of
the
sterling-dollar parity of
$2.80 the permissible limits would
be $2,772 and $2,828.
In fact the

keen

actual

bring

fall

the government's

was

widen

Limits

the

either

side

This

parity.
preciate

the

International
Some

time

fluctuate

without

sent

from

the

drastic

such

basic

principle

however,
sumption that
was,

believe

that

the

any

out

ties

con¬

adopt the system

time

any

within

—unless

and

until

restore

rumors

But

casion

official

denial.

the

safe

not

present

the

contemplate

the

widening of the margin to the
full permitted limit of 1% each
'

way.
It

Plan

the

Commonwealth

provides for

floating pound,
plan

vertibility.

return

but

returning

The

idea

the

part
to

was

has

that

sterling,
convertible,

become

the Treasury is not under ob¬
ligation to
maintain
it
within
narrow

those

limits.

any

There

question

limits,

has

never

removing

widening
substantially, so long "as
sterling remains inconvertible.
or

even

In the

sterling the original parity
$4.02, so that the limits up

origin

the

rumors

that

the government intends to widen

All

formerly witJr Eastern

were

Corporation also announces the opening
a branch office in
Boston, Mass., at 84 State Street, with direct
telephone wire to their New York office. The new office- will be
under the

management of Alexander W. Moore and Frederick S.
Moore, formerly of Eastern Securities Inc.
The corporation has also established
direct wires to Ames,
Emerich & Co. Inc.,
Chicago, 111.; Ball, Burge & Kraus, Cleveland,
Ohio, and Kramer, Makris & Co., Houston, Texas.

opinion

pur¬

chasing agents who comprise the
Survey Committee, of

Business
the

National

Association

could

further

Whether
made

that

not

Swanton,

Director

Purch ases,
W i n Chester

there

devaluation

Companies

Arms

when

its

Com-

p a n y,

will

New

convertibility is restored remains

Haven, Conn.,

holds

that

for

general

busi-

seen.

But

granted

it is

that

safe to

take

such

step

n e s s

will be taken prior to the restora¬
tion of its convertibility.

prove

James
New

become

Exchange,
in

partner

will

Ray

Sackett & Co., 71 Broadway, New

City, members of the New

York

Stock

Exchange,

June

same

the

firm

will

name

changed to James McKenna & Co.

Delafield & Delafield

third

Delafield, 44 Wall

Street, New York City, members
of the New York Stock
announce

that

Howell
them
sory

now

their

Exchange,

Bennington

associated

Investment

Department.

month.

consecutive

For

month,

the

those

reporting increases in orders and
production top the decreases by

Industrial

material prices are firm but have

failed

the

trend

pears

with
Advi¬

to be in the fabricated items
than

Purchased

basic

material

materials.

inventories,

though still on the down trend,
indicate that correction has been
completed by the majority,
64% report holding to present

$21 billions

moderately

increasing

stocks.

Employment trend is slightly

Buying policy is of

up.

conservative

capital

the

of mortgages.
in

the

national

amount

made available

was

the

economy

life

companies,

Institute
is at

800,000,000,
1953

according

Life

total

This

nearly $5,-

compared

the

Insurance.

annual rate of

with

the

$5,167,000,000.
investments

new

companies

the

first

the

three

ing

maturities, replacements and sales,
were
$3,654,000,000,
compared

availability of materials.
Over-all, the statistics and the
easy

capital

new

and

also

funds

from

comments reported show purchas¬

with

ing executives, barring strikes

sponding period of 1953.
Corporate securities comprised

international

optimistic

disturbances, to

for

improvement
for

ness

steady,

gradual
industrial busi¬

some

time to come.

$3,312,000,000

This was, how¬
$70,000,000 less than corre¬
sponding acquisitions in the first

quarter of

1953, due largely to a
$215,000,000 decline in the pur¬

ported

laneous

strength

markets

and

cannot

Most declines

fabricated

called

products

competition

April.

re¬

The
soft.

reported in the

are

where

causing

keen

marginal

concessions to be made in
moving
stocks of maintenance and other

non-productive

supplies. Basic
prices are considered

materials
firm

this

for

time,
either

moverment

and

sharp

way

looked

porate

industrial

bonds.

securities

$1,056,000,000, only $21,000,000 less than
in the like period of last year.
Mortgage holdings on March 31
were

000

$23,769,000,000,

from

the

inventories

continue

trend, but at
than

during

months.

the

There

increase in the
additions
stantial

ing
is

has

down

been

several
a

slight

quarter
a

000,000,
off in

warehouse

those

totaling

loans

March

year.

the

greater

$178,paid

were

that loans
were

$2,-

only $62,000,000 in
the first quarter.

Two

report¬

time
of

and
many

large
items.

taking in extra steel

ratios

ago,

large volume

956,000.000,

reporting
and a sub¬

hedge against

Turnover

$494,000,-

the

32%

were

but old

are

steel strike.
much

better

With

Investors

Planning

General comment

stocks

A few report

year

outstanding

that inventories can be held at
low point because of short pro¬
lead

number

increase

curement

past

stock,

change.

the

much slower pace

start

policy loans made

than

material

first three months totaled

New

purchased

miscel¬

of cor¬
March
31

$35,053,000,000, an increase
of $658,000,000 in the quarter.
New mortgages acquired in the

first
Inventories

and

Holdings

were

in the immediate future.

Unworked

corre¬

investments.

new

chase

March

the

ever,

Commodity Prices

$1,101,*000,000 of the first quarter's

Industrial materials prices have
failed to show the

$35

over

months of the year, including this

comfortable margin. May shows
the lowest number reporting de¬
since last June.

Kold

now

range, and is expected to
continue that way with the exist¬

the

strengthen that was reported in
April.
The price softening ap¬

L. B. Howell Joins

Delafield

May

approxi¬

moderate rate that prevailed

the

creases

and

im¬

mately

McKenna, member of the
Stock

Robert C. Swantoa

Sackett Admits

York

activity

tended

op¬

billion of corporate securities ami

Total

Repeating

sterling

elastic

Chair¬

is Robert

are

improve¬

business.

first quarter of this year through
the increase in assets of all U. S.

short

Pur¬

man

whose

Agents

continued

industrial

First Quarter of 1954

life

composite

$3.62-$4.42. This
means that at
$2.80 the parity is
already well under the permis¬

limit,

opinions

Company Assets
Up $1.5 Billion in

of materials.
A

for

$1,448,000,000

Purchasing Agents More Optimistic

about

lower

extended.

the

Life

for

Majority of Business Survey Committee of the National Asso¬
ciation of Purchasing Agents see
gradual improvement in gen¬
eral industrial activity for third consecutive
month, but state
buying policy is of a conservative short range
type, and is
expected to continue so because of current easy
availability

sent

(

Buying policy is

par.

Purchasing

ment

New

chasing Agents

are

employment

with

timistic

Moore

reckoned

the original parities.

them

The

New York Hanseatic

Inter¬

been

trading department.

Securities Inc.

side

con¬

would be easier to defend
once

them in their

York

true,

Frederick

York

oc¬

Not

even

New

without the Fund's consent.

only does the
Treasury not intend to widen the
range to 10%
each way, but it
does

the

obtain

sible

exchange value of their curren¬
cies right to the moment when
the changes can be announced of¬

Moore

Hanseatic Corporation, 120
Broadway, New York
City, announces that John D. Ohlandt, Samuel B. Milt, Theodore
Young and Theodore E. Plumridge are now associated with

change

ready to
The per¬

widening of the range of fluctua¬
tions were categorically denied.
It
is
true,
governments always
deny impending changes of the

ficially.

imminent

convertibility.

sistent

20%

range

to which its
parities can be
changed without the Fund's con¬

of the floating

Alex.

R.,

popular fore¬

entitled

in¬

States.

Inventories

same.

and

the

little better. Prices

dian
Theo. E. Plumridge

was

of
buyers in the United States, Cana¬

widening of

permitted

are

from

pound—even with its fluctuations
limited

the

long
easily

have

books

somewhat

10% up to which changes of pari¬

any case, there is no reason
believe that the Treasury seri¬

about

the

higher

are

10%, without changing the
parities. This is not, however, the
official interpretation of the rules.
Moreover, under the rules the

case

considered

ex¬

remain

than

about

are

German

on-either

order

Production is

ously

having

materials

creased

And

procure¬

Canada

Monetary Fund's consent.
was assumed that, since
they
change their parities to that
extent, they could equally well
change their exchange rates up

Monetary Fund would be in favor

shoit-range

policy will continue

Canadian

viewed

face

why

are

optimistic,
a

available.

exchange fluc¬

10%

was

While Purchasing Agents

most

can

reason

ment

So it

International

advantage

except in large capital
equipment
contracts, and price
protection is more freely

Young

mildly
pected that

national

of sacrificing stability without the

compensating
vertibility.

their parities to that extent with¬

Woods

are

that, under the Bretton
Agreement, member gov¬

Woods

con¬

restored

There is

ernments

exchange
stability
based on the as¬
the convertibility

time.

same

parity

cast

departure

Bretton

sterling would

the

Its

the

reason

limits

expressed its willingness
to a return to the "float¬
pound" which would be al¬

lowed

Milt

unnecessary

themselves

favor.

The

the

tution

officially declared limits.

offered.

long way toward undermining
confidence in sterling.

ap¬

to agree

ing

would

"hand-to-

the

agreement

such

pre¬

decline

Monetary
that insti¬

ago

about

would be most unwelcome.

to $3.08 and to de¬
$2.52. To effect this
change would require the consent
Fund.

Samuel

Ohlandt, Jr,

would

subsequent depreciation would

the

way

and

appeared
John

Jjy a
would be

out of its

Policy

conservative

dominantly

Japanese competition an ap¬
preciation of sterling would im¬
pose an additional handicap that

preciate

available

are

mouth" to 60-day range. Upward
escalation of prices has about dis¬

and

that

sterling would be allowed to

level

government

tuations

mean

Still

followed

labor

Buying

the

disorganize

price

going

with

sterling-dollar

would

the

Nor

rumors,

10%

that

price fluctuations.

intention

would

rise.

limits, established in No¬
vember, 1951, when free dealings
the London foreign exchange
markets were resumed, are $2.78$2.82.

According to persistent

entail

believe

Even

unlikely

But there is

price structure by allowing ster¬
ling to appreciate by some 9%.
Such an appreciation would nec¬
essarily be temporary, so that the

pre¬

vent

reason

are

obliga¬

tion

rise considerably.

work

most areas.

though the
influx of "hot money" is causing
concern
in official circles, they

ment the gov-

Dr. Paul

classes

$2.82, would have caused the rate
to

reduced

temporary furloughs. As

labor-mdifagement dela¬
tions, with strike agitation not
receiving employee approval. All

the

absence of official intervention

very

Woods Agree¬
ernment

which,

result of

proved

prevent its appreciation.
Indeed, when announcing the un¬
expectedly favorable gold figures
for April, Mr. Butler, Chancellor
of the Exchequer, appeared to be

lowed to fluc¬
tuate.

the

of
the sterling-dollar
persistent buying pres¬

sterling

effort to

sterling-dollar
rate

limits

against this trend, several report
rehiring of layoiis of January and
February.
Reports indicate im¬

Treasury views with disfavor the
influx of gold resulting from the
official
sales
of
sterling in- an

within

which

the

sure

The lowest number,

week

sterling-dollar rates.

rate is the

frequent

Employment

are

Treasury ever considered adopting a system of a "floating
pound." Sees no intention of British Government to widen

main

and
/

last

no reason

the official limits of the

stocks

replacement.;

Corporation

lower

(Special

to The Financial Chbokicle>

BOSTON,

Mass.

—

Oswald

Blpmit and Peter A. Jones have
joined the staff of Investors Plan¬

ning Corp. of New England, Inc.,
68

Devonshire

Street.

Volume 179

Number 5328... The Commercial and Financial Chronicle

■" ".

First

Knopp,

National Bank of St. Paul.
The announcements of the

N. Y. Sec.
William R.

and. B.

Beane,

White, President of

Analysts

pic¬

nic have been

White, stock market

very

printed in the form
handsome bond.

analyst of Hornblower & Weeks,
elected President of the New

was

York

L. J. Werschkul Sons

Society of Security Analysts.
He

Sidney

Paine,. Webber, Jackson
&

Curtis.

Other

officers

chosen

the

annual election

held

Schwartz
Restaurant
Nathan

were:

Bo wen, • GoldSachs &
Co., Vice-

man>

SHHb

JHi

Wiiiiam

White

In New Larger Quarters
PORTLAND,
Werschkul

the

nounced
fices to
the

new

United

Oreg.

have

Sons

removal

—

an¬

their of¬

and larger quarters
States

National

Bank

Building, in which they have been

Gas Shares Offered
I

'.j..

for

some

offices

have been

most

attractive

modern

lighting

windows.

time.

The

new

laid out with
color

and

enormous

'-r-:

underwriting group, headed
by Cruttenden & Co., Chicago, and
The First Trust Co. of Lincoln,
Neb., are offering publicly an is¬
of

10,000 shares of $5

lative

cumu¬

preferred ; stock
(without
of Kansas-Nebraska

value)

pat-

Natural

Gas Co.,

Inc., at $101 per
share,
plus
accrued
dividends
from April 1, 1954. Concurrently,
the company
is offering to its
common

stockholders

record

the right to subscribe on
before June 2 for 85,090 addi¬

May 21
tional

scheme,

vol

located

employees at

The

(par $5)
basis

stock

at $23 per share on the
one

new

10 shares held.
common

common

for

each

the

price.

same

stock

common

underwritten

sue

succeeds

Kansas-Nebraska Nat.

offering is also
the same group

investment

bankers.

The net proceeds from the sale
the abovementioned

together,
funds

securities,
working
capital,

with

;from

operations

and

proposed to be sold by July 1,
investors) will

1954 to institutional
be

for construction

used

tional

facilities

sas-Nebraska's

the

and

retail

States

Nebraska,

duced
total

distribution
Kansas '

approximately 16% of its
requirements in 1953.

J. E. Call Co. Formed
SALT LAKE CITY, Utah—Jack
E. Call is engaging in a securities
business from offices in the Phil¬

addi¬

lips Petroleum Building under the

increase

Kan¬

firm

system

/capacity

name

pany.,';':

Call

•

Kansas-Nebraska

Natural

Gas

Bond, Richman Branch

Co., Inc. is an operating public
utility company engaged in the
production
ural

and

gas

purchase

the

States

nat¬

Okla-

PATERSON, N. J.—Bond, Richman

Co.

office

at
the

homa, Kansas, Nebraska and Col-

under

being offered

orado, and in its transmission and

has
138

opened
East

Shapiro.

direction

and
Donald
H.
Randell,
Home Insurance Co.,
Secretary.
urer;

Mr.

White,

who

editor

"Evening
before

Post"

New

York

many

for

joining

financial

was

the

years

Hornblower

Weeks, is a director of the na¬
tional Federation of Financial An¬
alysts Societies and has

served

Vice-President of the local society
for

the

was

last

Previously

year.

Chairman

program

he
has

and

been active in the society's affairs
several years. Mr. White is a

lor

member

the
Society of the
Inc.,
an
organization
of men who worked on

Silurians
made

New York newspapers 25 or more
years ago.
In

addition

officers,

members

were

ecutive

Committee:

Anthony,

five

elected to the Ex¬

Philip

Kuhn,

Co.,

Loeb

Lawrence R. Kahn of E. F. Hutton
& Co., Walter Maynard of Shear-

Hammill

son,

Novak
John

& Co., Nicholas F.
Drysdale & Co., and

Stevenson

Salomon

Bros,

and Hutzler.

Twin

Giiy Bond Club to

Hold Picnic June 17th
MINNEAPOLIS, Minn.—The
Twin City Bond Club will hold its
33rd annual picnic on June 17 at
the
White
Bear
Yacht Club
at

White Bear Lake, Minn.

The out¬
ing will be preceded by a cocktail
party for members and guests in
the Junior Ball Room of the Nicol¬
let

Hotel,

Wednesday

June 16 from

evening,

p.m.

Scheduled
Club are

for the day at the
golf tournament, horse¬

shoe

tournament, .tennis tourna¬
bridge tournament, swim¬
ming and boating. Also planned

ment,
ii

very

special entertainment.

Reservations
K.

should

Joas, Smith,

sent

Barney & Co.

Tariff for guests $25; for members,

$1, plus $3 for the cocktail party,
and $6 for the picnic without golf;
$3 for picnic with golf.
Members
mittee
eral

of
C.

are:

the
M.

Picnic

Good News for Telephone

Com¬

Webster,

Gen¬

Chairman, J. M. Dain & Com¬

pany; cocktail

Woodard-E

Company;
jL

transportation, Oscar M. Bergman,
Allison-Williams
nis

and

Users

party, S. Jay Marsh,

w o o

Company;

horseshoes,

Willys

mean

ten¬

FEDERAL EXCISE TAX

ON LONG DISTANCE

ON LOCAL SERVICE

reductions in federal excise taxes, voted

recently by Congress,

substantial savings

Your telephone bill is

lowered

for telephone

users.

by the entire difference between the old and the

new taxes.

Jones, Allison-Williams Comapny;
golf,
veen

Wallace
&

Co,,

Fisk, John

St.

Paul;

Nu-

prizes, Robert A. Krysa, Harold E.

REDUCED

Wood & Co., St. Paul; registration,
Robert

McNaghten,

Rieger, Merrill Lynch,

Fenner

Maynard

Beane;
W.

Rue,

FROM

Long Distance calls,

25% TO 10%

15% TO 10%

customers.

saving in taxes

None of it is retained

The reductions

hilled

went

to you on or

into effect

prizet, GeorgeaA-

Mc¬

Donald, First National Bank; prize

Now it

April 1 and apply to service

costs you

even

less to keep in touch by telephone.

Vi'if-:

■
.

solicitation,
Merlin

Lowell

;fn-\

Driscoll,

Lynch, Pierce, 'Fenribf & Alit-

-'Y.d?,j V*[i

off the hills of

after that date.

ving J. Rice, Irving J. Rice & Co.,
Paul;

comes

by the telephone companies.

Company; bridge tournament, Ir¬

St.

you now pay

FROM

Pierce,

Dain

paying 25%

The entire amount of the
our

entertainment,
J.

REDUCED

Williams-

McNaghten Co.; publicity, Charles
J.

Instead of

10%. On Local telephone service, the tax is now 10% instead of 15%.

special

iLM.W

'iU.Ur.

BELL

TELEPHONE

SYSTEM

branch

30th' Street

Macomber, Reynolds & Co., Treas¬

news

Com¬

■:

from 188,000 MCF to 206,000 MCF.

President; W.
S t u r g i s

and

gas

Any unsubscribed
are

retail distribution
Colorado—The' company pro¬

ap¬

proximately $4,500,000 to be raised
by the sale of debentures (which
are

wholesale
in

;

(2319)

Max

Financial Chronicle

The Commercial and

(2320)

Thursday, May 27, 1954

...

Corp. Bond Traders
Our

Elect Abbe Pres.

Reporter

Governments

Securities Salesman's Corner

wmmi

By -JOHN: T. CHIPPENDALE, JR.

JOHN DUTTON

By
thin

and

highly professional government market is being

moved

about rather readily by the trading fraternity., Quoting
and quoting down of prices of many Treasury issues, in not a
few instances, represents the bulk of what is going on at times.

Stay

the Beam

The

market

is still in

the process

have

been

appearing here and

there

the

been elected President of the Cor¬

poration

Bond

Traders

time

Club

ident of the

New

formerly

Reserve Banks

Security Traders As¬

and

member

Association
District

York

There

Manager

Accordingly,
take up

has

been

associated

Heller, Bruce & Co.
he

was

Prior to that

Los

Lieutenant

Angeles.

Commander

the

market

made

and

requirements.

reserve

can

the

made

available

case

when

through

once

quirements is the important factor in such

U. S. Naval Reserve, a member of
the San Francisco Bond Club; the

change

operation

Joins
(Special

■ia

Financial

CHICAGO, 111.
Dillmann
with

has

Bear,

South

Stearns

formerly
Weeks

and

with

Paul

Co.,

135

Davis

last six months

1954, which

means

that the commercial

banks

was

Hornblower

which starts

July 1, there will really be a need for very
large amounts of money to finance the contemplated deficit. It is
estimated that at least $10 billion will have to be raised in the

associated

Street.

supplying the money that
However, with the new fiscal

Co.

will have

important role to play in this operation.

the business pattern continues to show

Even though

flattening out

mar¬

growth,
defense

Boland With White, Weld
(Special to The Financial

CHICAGO, 111.
Boland

has

—

Chronicle)

Raymond H.

doesn't

know

ment

can

well.

the

that

much

take

investment
no

become

associated

tangible evidence

Corporation
Blyth & Co., Inc. < v /

longer period of time about the

way

going before the monetary authorities will be

The inflation fear appears to have been well relegated to the

background because of the ample supply of goods and services and

formerly with Stone & Web¬
Securities

over

inclined to modify the current easy money program.

White,
Weld
&
Co.,
231
South La Salle Street, Mr. Boland
ster

business

unless there

and

resultant

effect

repetition of the pre-Korea psychology, with its

prices, there

upon

should

for

need

any

important change in monetary policy. An easy money market with
an

ample supply of credit

that the needs of

and in¬

commerce

are

all

other

things

words,

ex¬

with, the

dollar.

same

do all these

split

can't

mail'and
A

pencil,
of

corner

Doug

was

in
any.

paper

BOSTON,

Security

desk

confu$ion

reserves,

alent.

One

backlog,

The

because

section

point
had

section

the

man

need

was

STATE

the

financed

and

other

and

expected that

the

place,

MUNICIPAL

will be taken

care

SECURITIES

concerned.

too

much

first

government

this will

done

must
at

high

substantial part of the deficit

by tax anticipation issues which should not

burden

sizable

far

amount

cost

the

securities

do. that there will

the

deficit

carrying them is
will

financed

comibercial banks, and in

the

have to

relaxing in

reserve

re¬

quirements especially among the large money center institutions.

However, action
most

reserve

requiremenf, when it does

even

reserves.

though they

token long-term

that the smaller banks will also

have the

now

bulk

the

excess:

offering cbuld be made to keep the1
the

CHICAGO 4

BOSTON 9

ST 2-9490

HA 6-6463

Now Branch

GRAND
H.

with

Co.,

has

become

Miller

affiliated

931

MacNaughton-Greenawalt &
Michigan Trust Building,

74th

members of the Detroit and Mid¬
west Stock
Exchanges.,
-

••

•

(

of the New York

chabge,

RAPIDS, Mich.—Lynn

Clark

Manager

Newburger, Loeb & Co.,
bers

(Special to The Financial Chronicle)

45 Milk

Barney

sort

The

way

air,

and

Dinner.

of Atomic Energy

Industry" by Gordon Dean,
Chairman of the

Energy

and

associated with Leh¬

now

Commission

Brothers.

man

held

—

(All Day Field Trips)

Choice of:
1.

Dewey & Almy.
Photon, Inc.
Polaroid Corporation.
Ultrasonic

urge to

Corporation.

3. Boston Edison.

for

Future

JUNE 2

who have

bit restless. The

easy

Company, Montreal.

Atomic

not

very

Wil¬

broad

paying securities
participated in the
in the price of some of the
specialties and blue chips have
a

Former

could

Securities"

p.m.—Annual

"The

Scudder, Stevens & Clark.

&
6:30

dividend

have

Winfield

Smith,

liam T. Moran of Greenshields

rise

become

Gillette.

securities

salesman to take the lines of least

INCORPORATED

WHitehall 3-1200

"Canadian

in the market,

move

resistance

With MacNaughtonGreenawalt & Co.

ST., NEW YORK 5

the

Recentlv clients

that

Loeb,

"Money Rates" by Sidney Homer

well be that there will! be

AtTBBET G. LANSTOW

231 So. La Salle St

what

speculate is beginning to reappear.

upside.

IS BROAD

upward

Carl

4:00-5:00 p.m.—Choice of:

this

foundation.

Perdun

returning, the
public is beginning to stir, Profit
talk

"The Oil Industry" by

dis¬

it simple—find out

looks confidence

will

come,

prices of the outstanding issues from getting out of line

& Co.

clients

your

sound

Industries" by Armand

Erpf

Rhoades & Co.

during the next year or
have an understanding with

Wil¬

p.m.—Choice of:

v"Which

ever

sound

likely be all embracive,

than

dent, Oxford Paper Company.

point. That's the prescription and
it is going to be more
important
so

through the sale of
order

the

Professor

Industry"

Paper

3:00-4:00

help him find it. Then stick to the
hand, the deficit

Abbott,

liam H. Chisholm, Vice-Presi¬

prospect wants—if he doesn't
have a clear idea
in his
mind

Short-Term

is not

interest rate.

Borrowing to

& Co.
*

Keep

School.
"The

was

the

and 3.

includes:

Finance, Harvard Business

They developed the problem. No
security or investment was men¬
until

June

will

Meeting,

Business Situation" by

Charles

currently in¬
vested,
01*
balanced,
and
just
where he wanted to put his next
money. Questions brought this out.

tioned

Annual

m.—Choice of:
"Th

labeled gain and the other section
income.
It
was
soon
discovered
how

Boston

Society

JUNE

dollar equiv¬

second

The program

the

Bulk

held

and

Mass.— The

Analysts'

their ,8th

hold

business/There

sections—to

problem.

un¬

Hold Annual Meeting

thing Doug did was to
pie chart—a circle divided

three

Boston Analysis to

first

into

have

didn't

nec¬

simplicity.

prospect's

sound

And
you
have
keep reminding them too. -

grand sales-

piece

was

never

the

He is

for specu¬
that

derstanding.

remember

may

stickler for

Doesn't

stocks.

whom

with

If you must

money into
select the proper
each
part.
This

you

Doug Laird.

suggest about 10%

right to you?" Then stick
to it. The only customer that ever
gave me a hard time was the one

way you keep it simple and avoid
confusion.
of

we'll

fine,

select that looks

can

others

for

that's

your

"Some

bit

"OK

about

equally

you

things it will be

of appears to be what the powers that

care

for

good
speculation.
How
cutting off a corner for that;

lative

invest, speculate and be defensive

endeavoring to bring about.

are

JJ. S. TREASURY

well taken

said

about

I'd

covered."

dustry

lot

say,

see.what

dollar mark in it: This represented

with

was

and

invest-

one

and

some

busi¬

the

which

still

the

Laird's pie chart. I'd cut a
corner
off
say about 10% for

gained experience, you
keep
the interview
to finding the problem

the decline is concerned, it is not expected that there will be any
more

stick

Doug

important change in monetary policy.

There will have to be

is right—keep
the customer
help him deter¬

Moorman

those

there

other

some

topic?

draw

far

about

dollars,

parts and
investment
for

be needed to meet this deficit.

year

Sylvester M.

—

become

Salle

will

beam

saw.

ness

Large Treasury Borrowing in Prospect

Chronicle)

down-side

perience

essary

care

talk

the right tool for the right job.
1 You did not try to drive nails with

The Treasury will end the current fiscal year with a sizable
deficit somewhere between $3 ¥2 and $4 billion, but the recent

financing operation has taken

appreciation,

and the proper solution. You used

three

Bear, Stearns
The

the

confined

the money markets are concerned.

Association and the Guardsmen.

Larry

—

Street

Club; the Press and Union
League Club;
Security Traders

with confidence and have
of iflind.-;v-C^^^^^;v:' ■

it simple—sell what

"As you

re¬

far

wanted

levels,

learned

•

reserve

future
-peace

than

needs

off the

of money

sums

days,

point. Don't let him forget it. In
a period when reaching for specu¬
lative
profits is something that
you will have to talk about and
recognize •; every
working
day,

conservation

reserve

The fact that substantial

his

end

the

then his family will need

talking

better

and
it. With¬
out
capital there is no income.
Without a sound program no in¬
vestor can look forward
to thq
until

investment

provide

and
goes

mine

"open market operations" can have a very definite
the trend of the money markets and it does give

upon

come

income

for

need

you

ket

available

;

about

his

but

dependability; conserva¬
purchasing power; better

client

these deposit institutions mainly to

one

markets

bear

and

many

bog down, or get com¬
pletely off the track, because the

require¬
ments of the commercial banks are changed. However, the effectiveness of "open market operations" takes more time because it
is not as quick as would be the cas'e if there were to be a change
in

order

terview

the allotments which had been made to them in the 1%%

influence

Manager of the
Department of California

used

were

areas

set

needs—after

being offered by the Treasury.

was

into

came

City

investments—
he forgets to keep
of

than average income; more buy¬
ing power—and then have the in¬

the part of the large com¬

Reserve

greater flexibility of action than is the

Assistant

Bank

Central

issue which

new

To be sure,

with

Bond

the

note.

the

past four and one-half years Mr.
Jordan

Federal

funds, which

For

until the Treasury comes

banks

need for additional funds

banks

assimulate the

FRANCISCO, Calif.—Hill
Richards & Co., 155 Montgomery
Street, announced that James O.
Jordan, III, has joined their San
Department.

was

mercial

SAN

office

require¬
into the

reserve

first time since March 24 to give help to the money market, espe¬
cially to the New York City and Chicago banks which have been
on the light side as far as excess reserves have been concerned.

Hill Richards & Co.

Bond

change in

again for deficit financing purposes. The Federal Reserve
Banks in the past week used "open market operations" for the

Committee.

Francisco

the

started

ever

you

client

average

Help Finance Note Purchase

though there will be

market

Dealers

O.Jordan, III, With

the

seems

ments of the commercial

National

Security

"Have
to

tion

was

known

retailing shares of National
Funds, has sent me something tnat
I' I believe is
very worthwhile pass¬
ing along. Here goes:

element of surprise will be involved.

some

well

designed

New York. Mr. Abbe is Past Pres¬

sociation

that

after he has

repeating in

how

know
program

agam,

are

deposit banks still persists, even though each Thurs¬
day so far has been a day of disappointment for those that have
been waiting for the announcement to be made.
When there is a
change in reserve requirements, it most likely will come at a

Richard F. Abbe of Shearson,
Hammill & Co., of New York has

worm

Once

dealers throughout the south who

ments of the

Abbe

are

column.

/who

longer-

2V2S with the proceeds, according to reports, being put into

tax-exempt obligations. The talk about changes in reserve require¬
Richard

mat

sound

Larry lit in good repair—and when a
Moorman, Vice-President of Na¬ -broad bull market starts you must
tional Securities & Research Corp., continually remind him that bull
this

bit.

Sellers
term

to.nle

doesn't

letters
along ideas

receive

from friends who pass

of making homes for the new
note iiSsue, which continues to go into strong hands.
Switches
from the older outstanding securities into the new money .obli¬
gation is still going on even though the pace has been slowed
quite

Occasionally,

Ex-

have appointed Lewis H.
Associate

Madison

Manager of the

Avenue

branch

(at

Street), New York City. Mr.

Miller has

been

with

quickest

ness

during

fidence

•

JUNE 2 and 3
go

way

off; the
to

track.
busi¬

period of rising

Maine

Central

New

con¬

Hardy Branch

Railroad.

short-term

sell

(2 Day Field Trip)

Oxford Paper Co.

profits, quick turns, and to allow
your accounts to downgrade their
*

lists.

This

into

run

along

Newburger,

Loeb & Co. since 1950.,
i

mem¬

Stock

and

The

trouble

sooner or

The average

also

sure

that

way

will

come

later.

security buyer who
non-professional
inyestor

Southampton, N. Y.—Hardy &
Co. has opened a branch office at
Meetinghouse Lane & Main Street
under
T.

the

Doyle,

management of Lester
a

partner in the firm.

Number 5328

Volume 179

...

The Commercial and Financial Chronicle

(2321)

LETTER TO THE EDITOR:

riches because of the Western In¬
dustrial

Public

Utility Securities

Sees

United Gas
United

Gas

East

Corporation
rural

Robert

second largest natural gas system,
1953
revenues
of

$209 million comparing with

tion

the

consolidated

Co¬

lumbia Gas System's $232 million.

Part of the system's gas require¬
ments

produced

Union
Producing Company and trans¬
mission
is
handled
by another
are

wholly-owned subsidiary, United
Gas Pipe Line Company, while
the parent company takes care of
retail distribution.

Duval Sulphur
Company is also con¬
through
ownership
of
nearly 75% of the common stock.

areas

service

and

end

Texas,

the

and

lines

465,254

served

year

Orchard

After

Bend

Fort

County, Texas, and the mining
and
processing of potash from
leases
in
Eddy
County, New

The

entire

Texas,

sippi,

system

extending

Alabama,

part

serves

Louisiana

and

into

Missis¬

southern

Pensacola
in
the
northwestern part of Florida, and
the

international

boundary at
Texas.
In addition to
natural gas, subsidiaries are also
engaged
in
the
production
of
Laredo,

United
ed

Gas

Corp. is not affect¬

by the recent Panhandle deci¬

sion

the

been

Federal

since

mission

Com¬

Power

has

there

always

"arms-length

bargaining"
between it and the producing sub¬
sidiary with- respect to gas pur¬
chases.

other

words

the

gas

purpose
one

years

bond

prosecuting

the

I left
this world trip

pleas¬

Cons

11 y,'

in?

terest in 191 other oil wells. These
wells

located

are

93. fields

Texas, Louisiana, Mississippi, Ok¬
lahoma

Arkansas.

and

Reserves

approximate 4.3 trillion cubic feet
compared with the 22.5 trillion of
of

reserves

supplying companies.

Last year total reserves increased
about

trillion

the sale

cubic

feet

after

trillion bubic feet of

the

nomic
of

eco¬

are

aspects

any

country
manner

The average simple man is too
close to the subsistence level not
to appreciate the fact that with

one

which

would

qualify

write

article

fewer

traction

natural

and transports gas
and

gasoline, etc..
to cities, towns

industries and

with other pipe line companies. It

and

owns

1,254 miles of

operates

field lines and

8,040 miles of main

transmission lines. Sales
the

recent

25c

United
tion

distribution

are

made

divisions

Gas Corp., other distribu¬

systems

panies,
panies,

and

power

pulp

chemical

plants,

line

pipe

plants, oil
and: paper

com¬

of coal in

mills,

plants, synthetic rubber

cement

lime

and

com¬

panies, aluminum plants, sugar
refineries, brick and tile ' com¬
panies, glass companies and other
industries in the states of Texas,
Louisiana,
Mississippi, Alabama
The distribution divisions of the
company
deliver gas to
residential, commercial, industrial
and other customers in 309 cities,

parent

communities

and

the

where

cost

The

debt

northern
include

1954

and

43%

ratios

stock

the

respectively.

count includes
for

long-term

common

expected

are

45%

57%

—

cruitv—and the

peoples

end

tive
an

oil

They

gies,
to

mass

attempting

And

I would say to the many

various

dedicated

research
the

foundations

welfare

hu¬

these peoples some simple and ef¬
fective
method
by
which
they

correlate

and

adjust

this

him

that

the

Mr.

that

1953)
can

$2.18

(vs.

$1.99

assuming that the

work

the

out

reach

rate

level

this

nroblem

Pdt

there

that

W
>/'•„..

%
..x.

bank

Co.;

Kidder,

Gpldman, Sachs
Peabody

Co.;

Alex. Brown & Sons; Dean Witter
&

Co.;

The

Boatmen's

Bank, St. Louis; W.

National

E. Hutton &

Co.; First National Bank in Dal¬

the

so-called

las; Bache

Co.;

The
&

& Co.;

Stern Bros. &

Milwaukee

Company;

Tripp

Shelby Cullom Davis & Co.

its ISifc

FPC

way,

Cjo., Inc.; Rand

Co.;

ELECTRICAL

WIRES

1954

77c

lem o

possi¬

Fiscal Years Ended

March 31, 1954

March 31, 1953

$44,115,000

$54,633,000

5,347,000

3,709,000

1,638,000

Net Sales

•

Income before Taxes

Total Taxes

year;

will

loan

*■

•.

•

■■

•

ta-.

;

Earnings

Net

used.
is

program

........

.....

Net

neces¬

Earnings

per

....

$3.27*

....

Common Share

Total Taxes per Common Share

will be required this year, it

for the

years

half the

1951-53.

aver¬

7.43

$53

million, and

that
at

thL

will

Equity

per

Common Share

At March 31, 1951 there,

were

27.14

8,029,000
•

•

•••••

•

6,021,000
2.008,000

$4.01*
12.04
25.25

199,127 shares outstanding compared to 500,273 shares in the prior year.

As of

1,-the company had cash

it is

as¬

ROME

es¬

CABLE

dip to $35

the year end,

with the

Plants:
ROME, N.Y.

depreciation,

stock

'S/s

x::.

offering

now

the

might be

construction

The
?

maturity.

the

include: The First National

Bank of Chicago;
&

CONDUITS

period of 1953.

vided

group

according

members

smaller number of shares in the

and retained

2.90%,
Other

balance of construction funds pro¬

prices scaled to yield from .80%

company

cases

and
of

out

quarter of

million

•

offered

CABLES

earned compared with 72c on

timated

the

1974,

are

riches of the East, such as rubber,

bility of an increase in the pres¬
$1.25 dividend rate.
In the

sets

given

1955

bonds

oil and tin, for example, are only

their

(with revenues
collected under bond). If earnings

age

atomic

reassure

The

FPC

Jan.

inclusive.

1954

Share Owners'

not

many

bonds, due June

Independent

ac¬

estimated

is estimated, about

about

Texas,

District, 4%, 2M>% and 1%

rate

McGowen

earnings

cash

know

should ponder on the

oering off—only about $43 million

I b

Pakistan.

I think

fact

had

him

Dallas,

School

Chicago

MANUFACTURER

The

told

citizen
time

000

syndicate offering $9,830,-

sary

'A-///.

might

Co.

Northern- Trust

heads

given to the

force, I did think I could
bomb to

Offering $9,830,000
Mas School Bonds

moderate amount

financing for this

/,/

it.

)

Northern Trust Group

for

not

Co..

Street,
New York City.

55%

Plant

The company does not plan any

,,,,

Tuller

Broad

(being

same

Producing Company.

ROBERT N. TULLER.
Robert

the

Pakistani

was

States

given

Pakistan

the

make

had

depletion

TORRANCE, CALIF.

earnings.
is

currently

SALES

ROME

OFFICES

AND

NEW

YORK

WAREHOUSES

CITIES

selling

•

M 4

44M

the New York Stock Exchange

around 32 to

yield 3.9%.

the

acquisition adjust¬
amortized through
of $1,502,655 per
annum) and there may be some
intangibles in the plant of Union

was

he had heard, that

that while it

much

sincerity whether

States

won¬

are

only

plant

gas

1962

first

vt^vXvX*'/

hydro¬

going
My Kashmir friend

bomb

use

United

manity that they concentrate some
effort on placing in the hands of

may

true,

hydrogen
wish

what

in all

United

such

water.

and

fear

was

the

bucket

But the literate

own.

and

asked

extinguish

much

bomb than appears relatively

our

der

the few

their newspapers about the
gen

writing,

will apply equally
Himalayas on through
the Appenines.

political ideolo¬

read

this

met

permit of such luxuries.

amusing

potentiali¬

proper

remarks

not interested

are

our

own

from

will they be. The strug¬
versus death is too close

nor

gle of life

effec¬

than half way around
globe, but I feel certain that

the

can

numbers.
as

Such i well-inten¬

well fire with

truthfully help these
peoples only by teaching them to
help
themselves
control
their

tradi¬

been

tween the many poor and
rich.

are

have

would

«.

little

yet I have never witnessed
such contrast and disparity
be¬

ent

■

Communism

and

begin

would

have

kindness and courtesy every¬
where, even among the poorest,

for transporta¬

oil.

and

these

efforts would be

must

simple

aid

resources

manner.

capital structure of United

not

tional

tion, the, danger from competing
might be even greater, de¬
pending largely on shipping costs

Gas

does

tioned

fuels

productivity

America

have the expendable

supplies

Alabama and lignite in
course

and

market."

plentiful

before; the

and Florida.

towns

out

for coal

solved.to

mentioned

ments

com¬

been

per

themselves

Texas.

have

producers might "price

reported)
He

contracts

met

resources

there

divide.

to do with it.

connections

numbers
to

it has

of wealth

sources

will not be to their relative gain.

teeming

ied

(some

econ-

the liv¬

ties.

tively futile until and unless their
problems of population in relation

their
seen

these

as an objective
apparently not be contrary
religious taboos, though such
legion.

ther

would

millions, one cannot understand qualms in solving my concern
why the problems of disease, pov¬ with over-population via the gun
erty and ignorance are not just or planned famine. Let us hope
simply a matter of, say, peniciilin, that such a force is not ready to
subsidy, and education. The con¬ move before the Asiatics come to

price of
high

of
has

one

sbme appre¬
hension that if the rise in the field

perhaps 20c

United Gas Pipe Line Company
purchases all of its gas require¬
ments, operates plants for the ex¬

Until

conditions

Analysts, expressed

should continue fur¬

and

Europe and the United States,

the loss of these

know their

Company

gas

values

Revolution progresses as far

areas

gas,

ing

produc¬

trol of population

such

would

had
been in existence prior to acqui¬ that country's
governmental
sition of control by United Gas
crude oil, recovery of natural gas¬
securities.
Corp.) has been on the same cost
oline and other liquid hydrocar¬
Robt. N. fuller
basis as gas purchased from other
However, one
bons
through
natural
gasoline
cannot
travel
producers.
While
last: var the
plants, cycling plants and by con¬
subsidiary supplied slightly less through such countries as Japan,
densation, and the production of
than one-quarter of the System, a fringe of China, Thailand, Indo¬
sulphur and potash. System, oper¬
sales, the fact that its earnings nesia, or- India without feeling in¬
ations include considerable whole¬
have not been
regulated on an tensely about them, tlieir prob¬
sale business.
"original cost" basis has improved lems, and our problems in relation
Union
Producing Company is the system showing.
to them.
engaged in exploration and devel¬
Thus far
The
the
system has not
outstanding impression I
opment of lands for the produc¬
been hurt by the price squeeze in
have is. the problem of POPULA¬
tion of natural gas, oil, etc., and
Our efforts to
gas.
However President McGow- TION!
aid these
owns 634 gas wells
plus an inter¬
en,
in a recent talk before the peoples with food or clothing or
est in 514 other gas wells.
It also
New
York
Societv
of
Security shelter are destined to be rela¬
owns 455
oil wells and has

trial

the

completely ruthless in getting
them. However, until the Indus¬

have not stud¬

company

numbers

possibilities

omiesv

business,

was

q u e n

purchased from Union Producing

(which

tive

New York City on
dedicated to the principle that my

ure.

Mexico.

trolled

physical

Chronicle:

will

value

until

fringe of China, Thailand, Indonesia and India.

Editor, Commercial and Financial

Dome

They

same

behind the Iron Curtain

Potash
is
municipal
engaged in the mining of sulphur
Sulphur

Potash

the

customers.
Duval

preciates

the

they
are
industrialized, but there is
another political force at large in
the world which undoubtedly ap¬

TuIIer, New York Investment Banker, gives his
impressions of a round-the-world trip, which included Japan,

Louisiana,
and
Mississippi.
They own and
operate 10,876 miles of distribu¬

Corporation

the

peoples

these

World Problem

Revolution.

have

never

Overpopulation in

By OWEN ELY

iybss

WL; Atomic Energy Act Annual Keeling of
Should Be Amended
Chicago Inv. Analysts
D.

Luntz,

Editor

Meeting

of Chicago will be
10, in conjunction
with the last luncheon meeting of
Society

the

officers,

Atomic

pre¬

Energy

ics,"

Hartman L. Butler, Jr.,

maga¬

b>y
G

the

r a w

The

Mc-

Duff, An¬

Company;

ishing
Company,

—

William

Vice-President

Maas,

—

J. C. Knotter,

Associated

American
Cos.

'•'■'r'-";" v':-

Treasurer

—

Insurance

Dufly,

Governors—One-year

who

(to replace J. C. Knotter

is resigning

being

Of N Y Slock Exchange

Franklin

because, by virtue of

Boettcher

Bickmore,

& Co.

Francis

Scudder,
R.

Wayne

Clark;

Stevens

Bennett,

Continental

and

Charles R.

the Exchange's

elected

May

of last

Public

has

Hook—to

office

the

Stock

Exchange

ated in 1938 to

the

Governor
was

cre¬

bring to the Board

Exchange

closer under¬

standing of the public viewpoint
and

The

interest.

Board

com¬

posed of 28 other governors, the
Chairman

the

and

President

the Exchange.

Board of Govern¬

ors.

With State Bond & Mtg.

Dickey is President of Dart¬

Dr.

mouth College
a

Three-year terms: Philip C. Biggert,

Exchange,

re-appointment of
the three Public Representatives
—John
Sloan
Dickey, Clarence

ex-officio member of the Board):
J.

President of the

Stock

York

New

officer, he will be an

Representatives

announced the

Secretary—Lucian B. Wilkinson.
Board

first

was

The

Public

Keith Funston,

Thomas

1952, and Charles R. Hook, Chair¬
of Armco Steel Corporation,

man

year.

Northern Trust Co;

Arthur J.

Northern Trust Co., and

Richard H. Samuels.

Fu b 1

urged

Illinois

O'Hara,

H i 11

President

White, Weld & Co.

Clark; Ed. K. Hardy, Jr.,

derson &

zine published

Harris

Trust & Savings Bank.

term

Chairman, University of Chicago;

"Nucleon¬

Trust

Norby,

William

following nominations for officers
for the fiscal year 1954-1955:

fiscal

pointed a Committee on Nomina¬
tions consisting of J. Parker Hall,

Bank

National

Illinois

Co.;

of the

members

The Board of Governors has ap¬

May 10, Jerome D. Luntz, Editor
of

and

1954-1955.

Committee,

Nominating

The

having duly met, has proposed the

Purpose of the meet¬

season.

ing is to provide for the election

the Joint Congressional

Committee

June

Board of Governors, for the

statement

prepared
to

the Investment Ana¬

held

year
a

lysts

and constructive.
In

111. —The Annual

CHICAGO,

of
"Nucleonics" magazine, publish¬
ed by the McGraw-Hill Publish¬
ing
Company,
says
changing
Atomic Energy Act to facilitate
industrial participation is timely
Jerome

sented

and Financial Chronicle... Thursday., May 27, 1954

The Commercial

(2322)

(Special to The Financial Chronicle)

and has served as

NEW

public governor since May, 1953;

Clarence

Corporation,

Foods

General
been

Chairman

Francis,

ULM,

Minn.—Le Roy

Moore has become connected with

has State Bond & Mortgage Cbmpaay*

public governor since May,

North

Minnesota Street.

enact¬
t

ing n

bi 11

the

pending

in Congress to

ticipation

Interest

NEW ISSUE

facilitate par¬

Exempt from All Present Federal Income Ta^es

industry in all
kinds

clear

nu¬

$9,830,000

power
D.

Jerome

developments.
e
h i g h
lights of Mr.

Luntz

T h

Luntz's

(1) A
tion

survey

the

of industrial'

proposed

SCHOOL. DlSTRICT

I XVLLAS, TKXAS, IM)KPFA1)IOT

statement

follows:
reac¬

legislation,

4%,2M> and 1% School Improvement Bonds, Series

conducted by "Nucleonics" maga¬
the technical assistance

1954

zine with
of' the

Atomic

Industrial

Forum

industrial concerns and
key professional people, (just
completed) shows overwhelming
support for revising the law sub¬
stantially along the lines of the
among 351

Dated June

Cole-Hickenlooper bill.

Principal iand interest (December 1, 1954 and semi-annually
thereafter

(Accrued interest to be added)

(2)

Changing the Atomic En¬
ergy Act now to facilitate indus¬
trial participation is timely be¬

Amount

of the intense interest of in¬

cause

Due June 1,1955-1974

1,1954

AMOUNTS, COUPONS, MATURITIES AND YIELDS

Coupon

$330,000

June 1 and December 1) payable at The Chase

Yield

~80%

Maturity

Bank of the

Mercantile National

1955

405,000

1956

.95

would

405,000

1957

405,000

1958

1.25

405,000

1959

1.40

405,000

1960

1.50

405,000

1961

1.60

405,000

1962

1.70

405,000

1963

1.80

405,000

1964

1.90

405,000

1965

2.10

405,000

1IVi

1966

2.15

405,000

1967

2.20

730,000

1968

Bank, Dallas, Texas.

1.10

represent an interim change. Fur¬

National

City of New York, New York, or at the

2.30

dustry

all

(3)

The

nuclear

bill

proposed

changes

will

plants.

power

ther

kinds

the

necessary

legislation
the

atomic

energy industry develops.

(4)

play

The

Government

should

ing

nonsecret atomic energy in-1|
formation to industry and to the

public.
(5)

One

industry
changed
sion

application of nuclear

that

power

may

this

year

proposed

pursued

the

Act

this

These bonds will constitute,
direct and

positive role in disseminat¬

Coupon bonds in $1,000 denominations.

ses¬

Congress is the construc¬

730,000

2Vz

1969

730,000

21/2

1970

2.40

cost-power

730,000

1971

2.45

730,000

1972

2.90

tp punishment

470,000

1973

2.90

520,000

1974

payable

be levied

within the limits

2.35

tion and sale of "package" nuclear
power plant* for location in high-

School District,
taxes to

in the opinion of

bond counsel,
Independent

general obligations of the Dallas, Texas,
as to

principal and interest from ad valorem

against all the taxable property located therein,

provided by law.

2.90

(('

Two

the

.for

d'.s

proposed

relating
•

mation,
of

areas.

o:ure

may

create

intimidation

and

may

revisions

classified
an

and

infor¬

The bonds
and
&

are

offered when,

and if issued and received by us

Crowe, Attorneys, Dallas, Texas

and the Attorney General

of the State of Texas.

atmosphere
harassment

inhibit the desired dis¬

semination of

information.

THE NORTHERN TRUST COMPANY

THE FIRST NATIONAL BANK

KIDDER, PEABODY & CO.

GOLDMAN, SACHS & CO.

OF CHICAGO

J'iiea Fslchlin
To

Trip

James

Felchlin,

Marnier at San

take

extended

several weeks to
k

wife,

City,
Sybil,

FIRST NATIONAL BANK

Resident

;.;V'

who

making

BACHE & CO.

STERN

INCORPORATED

BROTHERS & CO.

THE

MCDONALD & COMPANY

TRIPP & CO., INC.

MILWAUKEE COMPANY

IN DALLAS
SHELBY CULLOM DAVIS & CO.

his

CWINNELL, HARKNESS & HILL

RYAN, SUTHERLAND & CO.

WOOD, GUNDY & CO., INC.

INCORPORATED

: i

■

■
.

;;

New York Stock

Exchange
Weekly Firm Changes
Stock Exchange

PRESCOTT & CO.

•

STRANAHAN, HARRIS & COMPANY

MCMASTER HUTCHINSON & CO.

MCCLUNG & KNICKERBOCKER

■

FR1DLEY & HZSS

'V-V-J.;-

the

trip with him for the first-time.'

;

W. H. MORTON & CO.

W. E. HUTTON & CO.

7.'.

SILLS, FAIRMAN & HARRIS
INCORPORATED

•

The New York

THE BOATMEN'S NATIONAL BANK

Chicago and New

accompanied

RAND & CO.

City,-

trip

DEAN WITTER & CO.

OF ST. LOUIS

Francisco for F.

5s f". ithers & Co., New York

ALEX. BROWN & SDNS

Dhisago end N. Y. G.

will

Parkhurst

subject to the approving opinion of Messrs. McCall,

BARRET, FITCH, NORTH & CO.

A. G. EDWARDS & SONS
■

:=•

■

HERBERT J. SIMS & CO., INC.

J. M. DAIN & COMPANY

DEMPSEY TEGELER & CO.

FARWELL, CHAPMAN & CO.

MCDOUGAL & CONDON, INC.

has announced the
following firm

changes:

HENRY-SEAY & CO.

David B. Stern will retire

officer of A. G.

limited

Beckey & Co. In¬

partner

Ross, Blan-

chard & Co. April 30.

BREED & HARRISON, INC.

EPPLER, GUERIN & TURNER

LENTZ, NEWTON & CO.

corporated May 31.
Peter C. Wright-Clark retired

FULTON, REID & CO.

May 27, 1954

HENRY DAHLBER3

j
<■-

A. WEBSTER DOUGHERTY & CO.

H. V. SATTLEY & CO., INC.

AND COMPANY

Volume 179

Number 5328... The Commercial and Financial Chronicle

(2323)

ECUTIV

SECRETARYCHAIRMAN

VICE-CHAIRMAN

EXECUTIVE

TREASURER

SECRETARY

v;-U:

R. R.
First

Gilbert, Jr.

National
in

Bank

Dallas

Edward Rotan
Rotan,

Cooper,

&
Houston

Mosle

W. Wallace
First

Payne

Texas

Cor¬

Hugh D. Dunlap

R. B. (Brud) Smith

Binford-Dunlap, Inc.,

Dallas

poration, San

Dallas

Antonio

NINETEENTH ANNUAL MEETING

Texai

tyoup

INVESTMENT BANKERS ASSOCIATION
OF AMERICA

DALLAS,
MAY

9 -10

TEXAS

-11th,

1954

COMMITTEEMEN

Joseph R. Neuhaus
Underwood, Neuhaus
& Co., Houston

W. Lewis Hart
Austin, Hart

Parvin, San Antonio

Thomas Beckett

W. C. Jackson, Jr.

John D. Williamson

First Southwest

Dittmar & Company,

Company, Dallas

San

Antonio

The Commercial and Financial Chronicle...

(2324)

Distributors

Underwriters

Dealers

Rauscher, Pierce
Members Midwest Stock

Active

Thursday, May 27, 1954

Exchange

Trading Markets

MUNICIPAL & CORPORATE
SECURITIES
BANK and INSURANCE STOCKS

SOUTHWESTERN MUNICIPAL and

Cartwright, Merrill Lynch, Pierce, Fenner & Beane, Dallas; Omar Briggs, Securities Com¬
of Texas, Austin; Miss Chris
Lowery, Merrill Lynch, Pierce, Fenner & Beane, Dallas;
Binford, Binford-Dunlap, Inc., Dallas; Gordon Calvert, Investment Bankers Association of
America, Washington, D. C.; Mr. and Mrs. C. Rader McCulley, First Southwest Company, Dallas
O.

missioner

Joe

PUBLIC UTILITY SECURITIES

OIL & GAS SECURITIES
Mercantile Bank

Building

DALLAS 1, TEXAS
Telephone:

Bell Teletype:

Riverside 9033

DL 186 and DL 197
AUSTIN

SAN ANTONIO

HOUSTON

LUBBOCK

HARLINGEN

WACO

Direct Wires

New

Ydrkt-s!SL Louis and other

Principal Markets

BIDS

FIRM

OFFERINGS

AND

Mr.

Mrs.

John

Williamson, Dittmar & Company, San Antonio; Mr. & Mrs. R. R. Gilbert, Jr.,

First National Bank in Dallas; Mr. & Mrs. Hal H. Dewar, Dewar, Robertson & Pancoast, San Antonio

MUNICIPAL BONDS

TEXAS

Bond

Department

FIRST NATIONAL BANK ran
Telephone ST 5471
Teletype DL
& DL

•

►

DALLAS

The Bank Wire

Principal Markets

218

Charles I. Francis, General Counsel and Vice-Pi esident, Texas Eastern Transmission Co.; Ed
Rotan,
Rotan, Mosle and Cooper, Houston; R. R. Gilbert. First National Bank in Dallasi W. Lewis Hart,
Austin, Hart <6 Parvin, San Antonio; Brud Smith, Texas Bond Reporter, Dallas; John D. Williamson,
Dittmar & Company, San Antonio

Southwestern

Securities

SOUTHWESTERN
Investment
MERCANTILE

Securities Company

Bankers
i

CCMMELjCE CHILLING *

E AIT AS, TEXAS

Phone

UNDERWRITING—

RETAIL

Riverside

54 7 1

TRADING

UNLITTED CCRPCRATET, MUNICIPAL DCNDT

Omar

Briggs, Securities Commissioner of the State of Texas; Joseph Neuhaus, Underwood, Neuhaus
Co., Houston; W. C. Jackson, Jr., First Southwest Company, Dallas; P. B. (Jack) Garrett, Texas
Bank & Trust Co., Dallas; W. Wallace
Payne, First of Texas Corporation, San Antonio

Volume 179

Number 5328

...

The Commercial and Financial Chronicle

(2325)

INVESTMENT SECURITIES
of

Mr.

and

Mrs.

Small wood,

William

First

Jackson, Jr., First Southwest Company, Dallas; Mr. and Mrs. Wm. P.
Company, Dallas; Mr. and Mrs. James F. Jacques, First Southwest
John S. Hilson, Wertheim & Co., New York; Winton A. Jackson,

the

DISTRIBUTOR

UNDERWRITER

DEALER

Southwest

Company, Dallas;

First Southwest Company, Dallas

FIRST

<^01lthiV€4t COMPANY
Investment Bankers
MERCANTILE BANK BUILDING

DALLAS, TEXAS

Abilene

Mr.

Mrs.

Delton

Plainview

•

Tyler

•

TEXAS

Jr., First of Texas Corporation, Dallas; Mr. & Mrs. W. Wallace Payne,
San Antonio; Mr. & Mrs. C. L. West, Russ & Company, Inc., San Antonio

Bennett,

First of Texas Corporation,

San Antonio

•

MUNICIPAL BONDS

Central Investment Company
—

of texas

Kirby Building, Dallas 1, Texas
Bell

Teletype—DL 586

RAndolph 9145

Branch Offices

St. Paul

San Antonio

Phillip J. Clark, Amos C. Sadler & Co., Denver; David Barnes, Ranson-David son
Company, Inc., San Antonio

SOUTHWESTERN MUNICIPALS
REVENUE

OFFERINGS,

APPRAISALS

BIDS,

EDWARDS, INC.
GLOBE LIFE BUILDING

MERCANTILE BANK BUILDING

DALLAS 1,

TELETYPE—DL

Bank
-

of Ft.

—

Worth;
—

•

Harold

Corbett & Pichard, Inc., Chicago; A. V. (Jack) Lewie, Firet National
H. Spink, A. C. Allyn & Co., Chicago; Robert M. Gardiner, Reynolds
/>l-'—o; Fred Deaton, E.
of Chicago; Fred Deaton, E. F. Hutton
««

»»

Co., New York; George B. Wendt, First National Bank
& Company, Dallas; J. Marvin Moreland, J. Marvin

M oreland

& Co* Galveston,

OKLAHOMA CITY 2,

TEXAS

TELEPHONE—RANDOLPH
William J. Corbett, Jr., Barns,

LOCAL SECURITIES

CORPORATES,

R. J.

BONDS

7715

TELETYPE—OC 370

162
DIRECT

OKLA.

TELEPHONE—REGENT 6-3541

PRIVATE

WIRES

The Commercial and Financial Chronicle

(2326)

Sanders

...

Thursday, May 27, 1954

Newsom

INVESTMENT SECURITIES
ST.

MAIN

1309

Dallas

Rauscher, Pierce Gang: Standing: Taylor B. Almon, Dallas; Morris A. Dudley, Dallas;
Richardson, Tyler, Texas; Ed Volz, San Antonio; Harland Mayes, Dallas; E. C. Hawkins,
Seated: Arnold J. Kocurek, San Antonio; John L. Canavan, Dallas;
John H. Rauscher,
Dallas; Charles C. Pierce, Dallas; James S. Carroll, Dallas; Louis J. Kocurek, San Antonio
of the

Some

Lewis

Houston.

Sr.,

C. NESOM BURT

Over

Twenty-five Years Experience in

TEXAS MUNICIPAL BONDS
Originators

Local

Distributors

—

Dealers

Corporation Securities
Shares

Fund

Mutual

C. N. BURT & COMPANY
Kirby Bldgr., Dallas 1, Texas
RAndolph 8733
West

Texas

8734

—

Representative—William S. Hamilton

UNDERWRITERS

DISTRIBUTORS

—

DEALERS

TEXAS
MUNICIPAL
CORPORATE

STOCKS

UNLISTED

LOCAL

BONDS

Mrs. W. Lewis Hart, Austin, Hart & Parvin, San Antonio; Mr. and Mrs. Francis I. Abshire,
Phillips Investment Company, Incorporated, Houston; Mrs. Paul J. Fagan; F. Vincent Reilly,
Commercial & Financial Chronicle, New York; Paul J. Fagan, National Association of
Securities Dealers, Inc., Dallas

Mr. and

BONDS

SECURITIES

R. A. UNDERWOOD & CO.
Incorporated

MERCANTILE
Bell

BANK BLDG., DALLAS

1, TEXAS
Riverside 9295

Teletype DL 492

Representatives

Dealers

—

Belton

—

Edinburg

Distributors

Corporate
Bonds & Stocks

Mr.

Mrs.

William

J. F. Perkins &

Company

1508 First National Bank

Hobbs,

Jr., Russ Sl Company, Inc., San Antonio; Mr. & Mrs. Charles A.
Company, Chicago; Charles J. Eubank, Charles J. Eubank Co.,
Jackson; Mrs.
Thomas Beckett, Dallas; Winton A. Jackson,
First Southwest Company, Dallas; Mr. & Mrs. Landon A. Freear, William N. Edwards & Co., Ft. Worth1

Schoeneberger,
Waco, Texas;

Central

Mrs.

Republic

Winton

Bldg.

DALLAS 1, TEXAS
Telephone-—STerling 4531

TEXAS

Teletype—DL 481

SECURITIES
We

Specialize in

Republic Natural Gas Co.
National

Tank

Co.

Seismograph* Service

Corp.

Southwestern Life Insurance Co.
Southwestern

States

Southwestern

Telephone Co.

Investment Co.

Underwriters and Distributors of Corporate Stocks and Bonds

SCHNEIDER, BERNET & HICKMAN
j

Members Midwest Stock Exchange

SOUTHWESTERN LIFE BLDG., DALLAS
BELL TELETYPE

Private Wire

1, TEXAS
STERLING

DL 286
to

1201

White, Weld & Co.
Annapolis Reunion:
Barrow, Leary &

Co.,

(Ted) Taylor, E. F. Hutton & Company, Dallas; A. Mclntyre Leary,
Shreveport, La.; Ed Bernet, Jr., Schneider, Bernet & Hickman, Dallas

Volume 179

Number 5328

...

The Commercial and Financial Chronicle

(2327)

Firm Bids and

Offerings

TEXAS MUNICIPAL

BONDS

MERCANTILE NATIONAL BANK
H.

Frank
&

DALLAS, TEXAS

Burkholder, Equitable Securities Corporation,

Co., New York;

Nashville; Lloyd B. Hatcher, White, Weld
Edward D. McGrew, Northern Trust Company, Chicago; William J. Mericka,
Wm. J. Mericka & Co., inc., Cleveland

Bank Wire

Riverside 4181

Principal Markets
*

DL 457

Bond

Department

Investment Bankers

J. E. W.

Thomas, Keith Reed & Company, Dallas; Raymond R. Wilson, Union Securities Corporation,
R. R. Rowles, Rowles, Winston & Co., Houston; Hugh Bass, Keith B. Reed & Company,
Dallas; Henry Keller, Keller & Ratliff, Ft. Worth

New York;

SAXETk

DALLAS

nvt.

aumt,

taenew

jfinweUment t/ecuiciUeb
Kenneth

S. Johnson,
Indianapolis Bond and Share Corporation, Indianapolis; Charles L. West,
Company, Inc., San Antonio; Wallace Payne, First of Texas Corporation, San Antonio; Oscar
Bergman, Allison-Williams Co., Minneapolis; Edward Edelman, Locke, Locke, & Purnall, Dallas

OlallaA 2,

Russ &
M.

Established 1920

Dealers and Brokers in

•

CORPORATION STOCKS AND BONDS

•

PUBLIC

UTILITY

PREFERRED

AND

STOCKS

COMMON
•

BANK

•

INSURANCE

•

TEXAS

STOCKS

MUNICIPAL

BONDS

DALLAS UNION SECURITIES COMPANY
Member Midwest Stock ExchangeAmerican Stock Exchange

Associate Member

FORT WORTH, TEXAS

DALLAS, TEXAS
DALLAS NATIONAL BANK BLDG.

RIVERSIDE-9021

Harry Ratliff, Keller & Ratliff, Ft. Worth; Mr. & Mrs. A. V. Lewis, First National Bank of Ft. Worth;
Carroll H. Little, Jr., C. H. Little & Co., Jackson,
Tenn.
*
*

•

FT. WORTH

TELETYPE DL 390

NATIONAL BANK BLDG.

EDISON-1248

The Commercial and Financial

(2328)

Underwriters

Chronicle... Thursday, May 27, 1954

Dealers

Distributors

Corporate and Municipal Securities

Trading Markets in Southwestern Securities

Eppler, Guerin & Turner
415

Fidelity Union Life Bldg.
DALLAS 1,

TEXAS

Riverside 3681

Teletype—DL 358
^

Direct Wire to Goldman,

Sachs & Co., N. Y.

Walton, Ft. Worth National Bank, Ft. Worth, chairman of tour committee of Texas Group
I. B. A., confers with Harvey Gaylord (left), Bell Aircraft Corporation, prior to group's
,
tour through company's Ft. Worth helicopter plant.

the

Company

Garrett
Since

1924

Specialists in Texas and Southwestern
Municipal

and

Corporation

Securities

Oil and Gas Financing
Private Placements

RETAIL DISTRIBUTION
Ground

Floor

Fidelity Union Life Building

DALLAS 1, TEXAS
Bell

Telephone STerling 4751

Teletype DL 91

tour of Bell Aircraft
Corporation helicopter plant at Ft. Worth: F. Vincent Reilly, Commercial
Financial Chronicle, New York; William H. Cooley, Television Shares Management Corporation,
Chicago; Paul A. Just, Television Shares Management Corporation, Chicago; Phillip J. Clark, Amos
C. Sudler & Co., Denver; William J. Corbett, Jr., Burns, Corbett & Pickard, Inc., Chicago; Hiram
F. Bright, Hams
Trust & Savings Bank, Chicago; A. Mclntyre Leary, Barrow, Leary & Co.,
Shreveport, La.; Robert M. Gardiner, Reynolds & Co., New York; Avery Rockefeller, Jr., Dominick
& Dominick, New York; Quitman R. Ledyard, Equitable Securities Corporation, Nashville

On
&

Henry-Seay & Company
KIRBY

BUILDING

DALLAS 1, TEXAS
Telephone

—

Prospect

Teletype —DL

8124

386

Municipal and Corporate
Securities

Gordon

Guerin

One

our most

important services to

institutions and

U. S.

Whelpley, Goldman, Sachs & Co., New York; Mr. & Mrs. John W. Turner, Eppler,
& Turner, Dallas; Dean P. Guerin, Eppler Guerin & Turner, Dallas; Harry L. Arnold,
Goldman, Sachs & Co., New York

•

individuals

GOVERNMENT,

STATE AND

MUNICIPAL BONDS

SAINT

New York

LOUIS

MISSOURI

Correspondent 14 Wall Street

Chicago Telephone to Bond Department Dial 211 Request Enterprise 8470
RESOURCES

OVER

*000

MILLION

Frank K.

Fisk, Garrett
Company, Dallas; Edmond L. Brown, Garrett & Company, Dallas; Paul A.
Just, Television Shares Management Corporation, Chicago

Volume 179

Number 5328... The Commercial and Financial Chronicle

(2329)

Keith B. Reed

George S. Rooker

James R.

Stanley

Hugh Bass

J. 0. Henderson

J. E. W. Thomas

Pat O. Humphreys

Underwriters

Dealers

Distributors

Texas

Municipal Bonds
Corporate Stocks and Bonds
Specialists in —
Private Placements
Oil

and

Gas

Financing

Sale-Leaseback Transactions

Mortgage Loans

Mr.

Mrs.
and

KEITH REED & COMPANY

Ed Beriiet, Schneider, Bernet A Hickman,
Dallas; Mr. & Mrs. Ed Rotan, Rotan, Mosle
Cooper, Houston; John P. Henderson, M. E. Allison A Co., Inc., San Antonio

INCORPORATED
=

—

Investment Securities

Fidelity Union Life Bldg.

Telephone STerling 1234

•

DALLAS

==—

Teletype DL 503

•

1, TEXAS

B
UNDERWRITERS

DEALERS

DISTRIBUTORS

texas
MUNICIPAL BONDS
vr.:.0v

'/I-

;

...

...-a'.;'.

■■

;

Murray W. Moore & Company
FIRST

NATIONAL

DALLAS
Mr.

& Mrs. Eugene D. Vinyard, Central Investment Company of Texas, Dallas; Mr. & Mrs. Lewis
Rodgers, Central Investment Company of Texas, Dallas;
Mr. & Mrs. Claude C. Boothman,
Dumas, Huguenin A Boothman, Dallas; Mr. & Mrs. W. E. Knickerbocker,
McClung A Knickerbocker, Houston

Phone

Riverside

BANK

BUILDING

2,..TEXAS

6475

Bell

Teletype DL-160

CROMWELL & CO.
KIRBY BUILDING
DALLAS

1, TEXAS

Underwriters & Distributors
of

CORPORATE AND

MUNICIPAL

SECURITIES

Bell

Teletype DL 530

Telephone

Riverside 5141

Decker, American National Bank & Trust Company, Chicago; Taylor B. Almon,
Rauscher, Pierce & Co., Dallas; Munson McKinney, Rauscher, Pierce & Co., Dallas;
Oscar M. Bergman, Allison-Williams Company, Minneapolis

UNDERWRITERS and DISTRIBUTORS

Complete Information
on

Southwestern Issues
I

For Firm Bids
on

Texas

Municipals,

Call, Wire
Investment

Write

Department

REPUBLIC

NATIONAL BANK
or mm

Arthur
Keith

J.
Reed

C.
&

Underhill, Arthur Wiesenberger & Co., New York; Mr. & Mrs. George Rooker,
Company, Dallas; BUI Estes, R. J. Edwards, Inc., Dallas; Mrs. Pat O. Humphreys,
Dallas; W. R. Benzing, Granbery, Marache & Co., New York;
John W. Turner, Eppler, Guerin A Turner, Dallas

Tel. HL3065
•

-01-418

The Commercial and Financial Chronicle

(2330)

Thursday, May 27, 1954

...

Markets in

TEXAS SECURITIES?
We

arc

specialists in all Texas

Municipal and Corporate Issues

Dittmar &
Members

South

Midwest

Dana T. Richardson,
Underwood, Neuhaus & Co., Houston; Wilbur Frederking, Fridley & Hess,
Houston; Ed Franklin, Dittmar & Company, Dallas; Jack P. Brown, Dallas Union Securities Company,
Dallas; Jesse A. Sanders, Jr., Sanders & Newsom, Dallas; Harry I. Prankard, Lord, Abbett & Co.,
New York; D. Acheson Keeler, Lord, Abbett & Co., Dallas; Wilbur Hess, Fridley & Hess, Houston

Company
Stock

Exchange

San Antonio, Texas

Texas Building

•
,

.-.■■■

■ -1

;

• ■

:.'•••

•

Teletype SA 15

Phone: Garfield 9311

Phone: Riverside 9681

Dallas Office—'Wilson Bldg.

Teletype

—

DL 486

MILAM BLDG.

SAN

ANTONIO

5, TEXAS
CIRCLE 4-5548

TELETYPE—SA 4

ALL TEXAS MUNICIPALS

PUBLIC

REVENUE

Louis

ISSUES

Dallas;

SPECIAL

AND

SITUATIONS

Henry, Henry-Seay & Co., Dallas; Mr. and Mrs. Joe W. Ellis, First Southwest Company,
Mr. and Mrs. D. E. Walton, Ft. Worth National Bank, Ft. Worth; William H. Seay,
Henry-Seay & Co., Dallas; O. Roy Stevenson, Ft. Worth National Bank, Ft. Worth

MUNICIPAL BONDS
OVER-THE-COUNTER STOCKS

Underwriters of Corporate

Issues

Austin, Hart & Parvin
NATIONAL

BANK

COMMERCE

BUILDING

SAN ANTONIO 5, TEXAS
Telephone Cathedral 2-1491

Bell Teletype SA 71

Mr.

Mrs.
J. R.
■

Ray Condon, B. J. Van Ingen & Co., Inc., Chicago; Mr. & Mrs. Francis I. Abshire,
Phillips Investment Company, Incorporated, Houston; Mr. & Mrs. Fred J. Bolton,
Lentz, Newton & Co., San Antonio

TEXAS NATIONAL CORP.
Retail is Our Outlet

•

GUS

NELSON

EDWARD

TRANSIT

TOWER

Telephone Garfield 3401

III

SAN

KELLER

ANTONIO

5, TEXAS

Bell Teletype SA 40

Mr.
.

Mrs. John
Bryce, Garrett and Company, Dallas; Mr. & Mrs. Walter Kline, Garrett
Company, Dallas; Mr. & Mrs. Steve Denning, Garrett and Company, Dallas; Mr. & Mrs.
Edmond L. Brown, Garrett and Company, Dallas

and

Volume 179

Number 5328

...

(2331)

The Commercial and Financial Chronicle

TEXAS SECURITIES
ACTIVE

TRADING MARKETS
Houston Natural

Longhorn Portland Cement Co.
Johnston Testers, Inc.

Central Power &

Garrett Oil Tools, Inc.

Houston

Light & Power $4 Pfd.

West Texas Utilities

Johnston Oil & Gas

Texas Electric Service

Lone1 Star Brewing Co.

Dallas Power &

Kirby Lumber Corp.
Texas Industries,

Gas, Com. & Pfd.

Light Co. 4% Pfd.

6% Pfd.

4.56% Pfd.

Light 4%% Pfd.

Southwestern Pub. Svce. 4.15

Inc.

Duncan Coffee Co.,

San Antonio Transit Co.

Pfd.

Class A

All San Antonio and Houston Bank Stocks

Nicholas F.
New

Roberts, Republic National Bank of Dallas; Avery Rockefeller, Jr., Dominick & Dominick,
York; John H. Rauscher, Jr., Rauscher, Pierce & Co., Dallas; W. Rex Cromwell, Cromwell & Co.,
Dallas; Sam Johnson, Southwestern Securities Company, Dallas; James D. Murphy,
Shearson, Hammill & Co., Houston

Quick Firm Bids On All

Texas

Municipal Bonds

& Gompany

Russ

INCORPORATED

Members

OFFICERS

Midwest

Exchange

Stock

OFFICES:

Alamo

C. L. WEST
W. G.

HOBBS, Jr.

E. D. MUIR

National Building
HOUSTON

SAN

ANTONIO

FT. WORTH

A. M. RUSS

Direct

and

Connecting

Wires

to:

Dallas, Houston, Galveston, New York & Los

Angeles

Dealers in

F. Parvin, Austin, Hart & Parvin, San Antonio; Quitman R. Ledyard, Equitable Securities
Corporation, Nashville, Tenn.; Carroll H. Little, Jr., C. H. Little & Co., Jackson, Tenn.; W. Travis
Sikes, Dewar, Robertson & Pancoast, San Antonio; Claude O. Boothman, Dumas, Huguenin <fi
Boothman, Dallas; Marshall Schmidt, Drexel & Co., Philadelphia
William

TEXAS
I w.
Wallace

MUNICIPAL

Payne,
President

BONDS

Exclusively

Telephone Garfield 9253

Teletype SA 13
GUNTER

Mr.

and

Mrs.

Lockett

Shelton, Republic National Bank of Dallas;

BUILDING

ANTONIO 5,

SAN

TEXAS

Jack C. Payne, Republic National

Bank, Dallas; Mrs. John L. Canavan, Dallas; Newell S. Knight, Mercantile Trust
John L. Canavan, Rauscher, Pierce & Co., Dallas

Company, St. Louis;

TEXAS

SECURITIES

Dewafc, \K,e/wt/4f}n
Members:

New York Stock

ANTONIO

National

Bank

Commerce
Mr. & Mrs. Keith
R.

Congdon, R. A. Underwood & Co., Inc., Dallas; Mr*.
Underwood, R. A. Underwood & Co., Inc., Dallas;
Murray W. Moore & Company, Dallas

Murray W. Moore; Mr. & Mrs.
Murray W. Moore,

Phone

Building

F-7141

Y?aneea4£

Exchange • American Stock Exchange (Assoc.)

National Bank of Commerce Building
SAN

AUSTIN

•

San Antonio, Texas • F-71 41

CORPUS

CHRISTI

SAN ANGELO

Building

Jones Building

McBurnett Building

Phone 8-2509

Phone 2-1652

Phone 6032

Brown

The Commercial and Financial Chronicle... Thursday, May 27, 1954

(2 m)

Established 1907

Underwood, Neuhaus & Co.
MEMBERS

MIDWEST STOCK EXCHANGE

Government, Texas Municipal

and Corporation Securities

Vincent

Republic

CITY NATIONAL BANK

BLDG., HOUSTON 2, TEXAS

Newman, Allan Blair & Company, Chicago; Mr. and Mrs. Charles A. Schoeneberger, Central
Company, Chicago; Mrs. R. E. Whitlock; Mrs. Vincent Newman; Robert E. Whitlock,
James C. Tucker & Co., Inc., Austin, Texas; Mr. and Mrs. J. Marvin Moreland,
J. Marvin Moreland & Company, Galveston, Texas

Telephone CEntral 8841

Teletypes HO 321 and 399

Direct Private Wires to Dallas and New York

DISTRIBUTORS

UNDERWRITERS

DEALERS

Corporate and Municipal
Securities
Mr.
-

and

Mrs.

Maurice

Hatcher,

First

National

Bank

Dallas;

Mr.

and

Mrs.

Fritz

Stewart,

Southwestern Securities Company, Dallas; Arnold J. Kocurek, Rauscher, Pierce & Co., San Antonio;
W. G. Inman, John Nuveen & Co., Chicago; Morris Dudley, Rauscher, Pierce & Co., Dallas; Robert

■

Gil

Tucker, R. A. Underwood & Co., Inc., Dallas; Arthur E. Kirtley, First Boston Corporation, Chicago

FRIDLEY & HESS
FIRST NATIONAL BANK

HOUSTON 2,
Bell

Teletype HO 42

BUILDING

TEXAS
Telephone ATwood 8221

Marshall

Schmidt, Drexel & Co., Philadelphia; Hal H. Dewar, Dewar, Robertson & Parte oast,
Antonio; Russell R. Rowles, Rowles, Winston & Co., Houston; John D. Williamson,
Dittmar & Company, San Antonio
.

CLAUDE T. CROCKETT

1st NATIONAL

San

A. GORDON CROCKETT

BANK

BLDG., HOUSTON 2, TEXAS

CHarter 2541

TWX

—

Underwriting, Retailing and Trading
TEXAS SECURITIES
Direct

and

Connecting

Wires

Albuquerque—Quinn & Co.

New Orleans—T. J. Feibleman

Atlanta—J. W. Tindall & Co.

New York—Joseph McManus & Co.
Odessa—Southwestern Securities Co.

Chicago—McMaster Hutchinson & Co.

Co.

Cleveland—Wm. J. Mericka & Co.

Phoenix—Kenneth

Dallas—Dallas

Pittsburgh—Blair F. Claybaugh & Co.
Portland—Zilka, Smither & Co.
St. Louis—Dempsey-Tegeler & Co.
Salt Lake City—A. P. Kibbe & Co.
San Antonio—Lentz, Newton & Co.
San Francisco—Wulff, Hansen & Co.
Seattle—Blanchett, Hinton & Jones, Inc.

Rupe & Son

Dallas—Southwestern Securities Co.
Denver—B. E. Simpson & Co.
Detroit—R. C. O'Donnell & Co.
El Paso—Harold S. Stewart & Co.

Harrisburg—Blair F. Claybaugh & Co.
City—Burke & MacDonald
Angeles—Dempsey-Tegeler & Co.
Midland—Southwestern Securities Co.
Kansas

Los

(Contact

Ellis

Toronto—Matthews

Co.

Tucson—Henry Dahlberg & Co.

through

any

them)

Ed Muir, Russ & Company, Inc., San Antonio; Jesse R.
Phillips, J. R. Phillips Investment Company,
Incorporated, Houston; Omar Briggs, Securities Commissioner, State of Texas; Charles C. Pierce,
Rauscher, Pierce & Co., Dallas; C. Willard Houser, American National!j Bank, Austin; Joseph R.
Neuhaus, Underwood, Neuhaus & Co., Houston; Reginald MacArthur, Kenower, MacArthur & Co.,
Detroit; Hugh Dunlap, Binford-Dunlap, Inc., Dallas

Volume 179

(2333)

Number 5328... The Commercial and Financial Chronicle

UNDERWRITERS

DISTRIBUTORS

•

DEALERS

•

TEXAS
•

Municipal Bonds

•

Corporate Securities

Members Midwest Stock

Exchange
TELEPHONE CA-9944
TELETYPE HO-395

P. Small wood, First Southwest Company, Dallas; Mrs. Joseph R. Neuhaus; John Brandenberger, J. Marvin Moreland & Company, Houston; Charles I. Francis, Texas Eastern Transmission
Co., Houston; Mrs. William P. Smallwood; Mrs. C. Rader McCulley; Joseph R. Neuhaus, Underwood,
Neuhaus & Co., Houston; C. Rader McCulley, First Southwest Company, Dallas

William

BUILDING

;iTY NATIONAL BANK

HOUSTON 2, TEXAS

SINCE

1927

UNDERWRITERS

DISTRIBUTORS

BROKERS

&S/&A'/,

CORPORATION

MUNICIPAL
Mrs.
Mr.

W.
&

Mrs.
&

Jackson,
James

Co.,

New

Dallas;

F. Jacques,

York;

Mr. & Mrs. W. C. Jackson, Jr., First Southwest Company, Dallas;
Jr., First Southwest Company, Dallas; Edwin J. Markham, Wertheim

Mr. &

Thomas

Mrs.

Lockett Shelton, Republic National

Beckett, First

SECURITIES

Bank of Dallas;

Southwest Company, Dallas
TSXAS

111111

HOUSTON,

P. Guerin, Eppler, Guerin & Turner, Dallas; Mr. & Mrs. William Seay, Henry-Seay &
Dallas; Mr. & Mrs. A. C. Black, Henry-Seay & Co., Dallas; Mr. & Mrs. John W. Turner,
Eppler, Guerin & Turner, Dallas

TEXAS

Co.,

Dean

UNDERWRITERS

—

DISTRIBUTORS

—

DEALERS

TEXAS

CORPORATION

MUNICIPAL BONDS

SECURITIES

•

Shawell & Company
PIONEER AMERICAN

HOUSTON 2,
Charter 3569

P. B. (Jack) Garrett,

Texas Bank & Trust Co., Dallas; Lewis Miller,
R. R. Gilbert, Jr., First National Bank in

First National Bank of Chicago;
Dallas

(

INS. BLDG.

TEXAS
Teletype HO 339

The Commercial and Financial Chronicle

(2334)

are

...

Thursday, May 27, 1954

actively interested in all issues of

TEXAS-KANSAS-FLORIDA

MUNICIPAL BONDS

%e RAN SON-DAVIDSON COMPANY
incorporated

Specialising in municipal jSonds
BEACON

MILAM

BUILDING

J. Lau, J. M. Dain & Company, Minneapolis; Gus Nelson, Texas National
Corp., San
C. Hecht, Dempsey-Tegeler & Co., Los Angeles; Tom Kemp, Dempsey-Tegeler &

Wm.

John

Angeles;

Teletype—SA 8

Teletype—-WI 192

Coral Gables, Fla.

McAlIen, Texas

BLDG.

SAN ANTONIO 5, TEXAS

WICHITA 2, KANSAS

St.

Floyd

Antonio;
Co., Los

W. Sanders,
Russ

White, Weld & Co., Chicago; John J. Fosdick,
& Company, Inc., Houston

Petersburg, Fla.

Tim

Dunn,

Southwestern

Securities

Southwestern

Company,

Midland,

Tex.;

Mr. and

Mrs.

Hugh

Bradford,

Securities Company, Dallas; Jonn S. Hilson, Wertheim & Co., New York; Mrs. Sam
Johnson, Dallas, Tex.; E. Michael Growney, Joseph McManus & Co., New York; Mrs. Glenn Sheppard,
Southwestern Securities Company, Dallas;
Graham Walker, Joseph McManus & Co., New York;
Mrs. C. Rader McCulley, Dallas

umlisted

GHAS. B. WHITE & GO.
Rusk

Building

HOUSTON
Bell

2, TEXAS

Teletype

Telephone
CHarter 7643

322

Jesse

San

R. Phillips, J. R. Phillips Investment
Company, Incorporated, Houston; Mrs. P. J. McNeel,
Antonio; Mr. and ^Mrs. J. Marvin Moreland, J. Marvin Moreland & Company, Galveston; Paul W.
Fairchild, First Boston Corporation, Chicago; Mr. and Mrs. William G. Hobbs,
Russ

Company, Inc., San Antonio

TEXAS SECURITIES
All Markets
Municipal

—

Public Utility

—

Industrial

Bankl— Insurance
We specialize in all
dealer and

Texas securities and due to

large investor

prompt bids and

contacts

offerings

can

large blocks

Pertinent information furnished

wide

usually furnish
or

any

odd lots

Texas

security to responsible inquirers.

$. % (Ehrtfittr Sc 01 a.
Estd.

First
Bell

1915

National Bank

Bldg., Houston 2

Teletypes

Corporate—HO 332
Municipal—HO 333

Telephone
PReston

1274

Marquette
&

de Bary, F. S. Smithers & Co., New York; Reginald MacArthur, Kenower, MacArthur
Co., Detroit; Lewis F. Lyne, Mercantile National Bank, Dallas; Mrs. W. C. Jackson, Jr., Dallas;
C. Bush, National City Bank, New York;
Lewis W. Pollok, Eddleman-Pollok Co., Houston

Rollin

Volume 179

Number 5328

...

(2335)

The Commercial and Financial Chronicle

HARRY RATLIFF

KELLER

HENRY

TEXAS MUNICIPAL BONDS

CORPORATE SECURITIES

KELLER & RATLIFF
SINCLAIR

BUILDING

FORT WORTH

2, TEXAS

Telephone—Fannin 3301

Teletype—FT 8043

Fuess, First National Bank in Dallas; Chris Lowery, Merrill Lynch, Pierce, Fenner & Beane,
Dallas; Mrs. Mavoline Cottingam, Rauscher, Pierce & Co., Dallas; Mrs. Winifred Scott, Texas Bond

Mary

Reporter, Dallas;

Brud Smith, Texas Bond Reporter, Dallas;
First Southwest Company, Dallas

Mandy Denham,

TEXAS MUNICIPALS
AND

SOUTHWESTERN CORPORATE ISSUES
Bids

Firm

—

Firm

Offerings

Statistical information gladly

Quotations

—

furnished

request

WILLIAM N. EDWARDS & CO.
FIRST NATIONAL BANK

FORT WORTH

BUILDING

2, TEXAS
Teletype—FT 8032

Telephone—FAnnin 2211

Dealers

Distributors

Underwriters

Corporate and Municipal Securities
Mr.

and

Mrs.

Sqnders &

Company,

Sr., R. A. Underwood & Co., Dallas; Alec B.
Mr. and Mrs. John M. Hamilton, C. N. Burt &

Underwood,

Boston;

Felder Thornhill, Dewar, Robertson

Stevenson, Vance,
Company, Dallas;

.-V ;;

V':

' i■

Natural Gas Securities

& Pancoast, San Antonio; Mr. and Mrs. William R. Newsom, Jr.,
Sanders & Newsom, Dallas

Lentz, Newton & Co.
ALAMO NATIONAL BUILDING

Telephone:
Garfield

SAN ANTONIO 5,

2361

and Connecting

Wires to:

Direct
New York

Chicago

Pittsburgh Portland St.

sa 45

Cleveland Dallas Denver
Orleans Phoenix
Louis Salt Lake City San Francisco Seattle Toronto Tucson

Los Angeles

EI Paso Harrisburg

Detroit

Teletype:

TEXAS

Albuquerque Atlanta

Houston Kansas City Midland New

TEXAS
M U NIC I PALS

CORPORATES

Muir, Russ & Company, Inc., San Antonio; William A. Parker, Incorporated
Mrs. Ed Muir; Charles Devens, Incorporated Investors, Boston

Investors, Boston;

Eddleman-Pollok Co.
FIRST NATIONAL BANK

BUILDING

Copies of Candid Photos appearing in
may

Mrs.

Bank

George B. Wendt, First National
Co., San Antonio; Mr. & Mrs.
Neuhaus, Underwood, Neuhaus & Co., Houston; Mr. & Mrs. Phillip R. Neuhaus, Underwood,
& Co., Houston; Mr.
& Mrs. Leslie L. Lentz, Lentz, Newton & Co., San Antonio;

Raymond V. Condon, B. J. Van Ingen & Co., Inc., Chicago;
of Chicago; Mr. & Mrs. Fred J. Bolton, Lentz, Newton &

Joseph R.
Neuhaus

Alfred

Stalker,

Kidder,

Peabody

Co.,

New

York

be purchased from

2712 RIUTH ST.

^
,

this issue

Telephone

•
—

DALLAS, TEX.

TE 6309

Mr.

The Commercial and Financial

(2336)

and

Mrs.

E. Sample, Mercantile National Bank, Dallas; Mr. and
William N. Edwards & Co., Ft. Worth; Mr. and Mrs. Wm. N.
William N, Edwards <& Co., Ft. Worth

Clarence

Hendricks,

^£r,8* Clarence R.
Edwards,

F. Rodgers, Central Investment Company of Texas, Dallas; W. E. Knickerbocker,
McClung &
Knickerbocker, Houston; Ed Rotan, Rotan, Mosle and Cooper, Houston; Lewis W. Pollok,
Eddleman-Pollok Co., Houston

Lewis

Walter

M. Bader,

First Southwest Company, Dallas; Mr. and Mrs. Scan Hilger, Dallas
Rupe & Son,
Dallas; Mr. and Mrs. G. Harold Pearson, Rauscher, Pierce & Co., Dallas

■

Mr.

and

Mrs.

Gilbert,

Jr.,

•

/•

First

National

Southwest

....

Bank in Dallas;
Company, Dallas

Mrs.

Keith

Congdon;

Underwood

Chronicle... Thursday, May 27, 1954

Nelson Waggener,
Walker, Austin &
Waggener, Dallas;
Co., Inc., Dallas; Mrs. W. Perry McPherson, Dallas; Mrs.

Keith Congdon,
Lockett Shelton,

Dallas; Mr. and Mrs. Manley A. Hagberg, M. A. Hagberg & Co., Inc., Dallas

Charles

E. Kimball, Wellington Fund, Dallas; Mr. and Mrs. John B. Cornell, Jr., Distributors Group,
Incorporated, Dallas; Mr. and Mrs. Stephen E. Case, Shearson, Hammill & Co., Dallas; Gus Nelson,
Texas National Corp., San Antonio; Edward H. Keller, Texas National Corp., San Antonio

Byron

Sayre,

John Nuveen & Co., Chicago; Mr. and Mrs. Keith B. Reed, Keith
Dallas; Ed iVolz, Rauscher, Pierce & Co., San Antonio

Reed

Company,

Mr.

and

Mrs.

Thomas

Beckett,

R- A. Underwood, Jr., R. A. Underwood & Co., Inc., Dallas; Jack Dickson, First National
in Dallas; Ted R. Alexander, Texas Bank A Trust Co., Dallas

Bank

Continued

from

this matter by State

page

*||

trators

•

■

*!■

■

...

often

are

by compromise, but the
estimate, ln the last analysis, must
be approved by the Commission's
It

expert is one of the
important decisions made

most

by ar^y

the

Unless

reputation

question it

ultimately
miV

thp

experts

established beyond
perhaps well to clear

u1-

reauTred ^o^deter

hi!

arfMirarv

pomnn

accuracy 01 ms compu

tntinns

•

The

estimates submitted

reserve

experts

securities

whose

the

under

Act

most

state

than

issuers

registered
accepted by

are

without

commissions

casual

The

scrutiny.

however,

problem,

behalf

remains

troublesome one for issues sought

presents a variation in its
regulatory approach, for althouga
it is a fraud type of statute whic.i

The

multi-

and

nature

diverse

customarily

only directed to the

}lcensin& .°* dealers, it neverthe- tensive

surety bond
with its
provisions. A few states, such as
quire the posting of

to guarantee compliance

Alabama, require the posting of

without

bond

and

exception

or not the issue sought
qualified was registered

whether
to

problems involved

se-

may

filed

ease

best

perhaps

illustrated

specific

to certain
requirements.

reference

states, the issuer who
an initial offering
stockholders is con-

many

desires to make
its

own

ment

registering

dealer.11

requirement, however, such
may
be
exempt

same

transaction

when

offering
solely to

issuer

holders and

payment of

does

taat

this type of an underwrit-

underwriter

usually computed

basjs

the

entire

mef.ely ?n

ancL h?
scribed

the

compensation

the

ing

to the fact

ascribed

parently be

issue,

unS+u

portion
to
which the
is; committed. Certain

underwriter

already

have

states

taken action

h°asedrr^on a^rather"
fwnH

ihk

cXofp

tup

ipa 11

^prtinn

nf the

Taw

Illinois which snecif-

PYPmnfc

techrb-al

Rppiiritipt?

pnsrtpH

nproiv

standby

offerings '
8

Securities

Illinois

Law,12

prior to the enactment of the new
and completely revised Act, had

perhaps the questionable distinction of being the most cumbersome
and obstructive law of its
kind.
Securities
sought
to
be
registered in Illinois were divided
into
four
inflexible
categories,
each with
its separate requirements. The application to qualify
such securities was required to be
both executed and acknowledged
in the State of Illinois. The issuer
reeking registration of its securities
a

was

Kansas

that state

requires

Another

disconcerting

rather

Drobiem rGiatp<? to the exercise of

registered. There is virtually
legislative standard to guide
state official in making such

determination

authority is
cjse(j

required not only to file

formal consent to submit to the

«r,aiifv

trancaet

hucinpss

draw

with.

♦

stae
nffpr;ng

eon-

fcfhnif nf

thP

hLr

not

,lOCe fnr nt lpact five vear«?
aiLmntiraiiv determined to

P,1T.?+V

with

and, although this
the whole exerappropriate restraint,
on

fhp

J «1l

cnhmiccinn
nf

nronerties

procedure was ~inflexible.
on one occaston praduced the anomalous situation of

tration

This

Ind

compelling a large gas
sion corporation which
been
in
existence
for

and

register as a dealer unless such
distribution is exempt under Seetion 3(c) of the Texas Securities
Act as "a distribution only to its
stockholders and without the payment of any commissions." It has
been held, however, that an underwritten issue on a standby
basis, which is initially offered by
an issuer to its stockholders, does
not fall within the purview of this
exemption if the underwriters'

exemption the consummation of any sale, commissions were either directly
be obtained with relative and Regulation 320 (d) provides 0r indirectly predicated upon the
that

by simply filing a Form of

the

offerer

deliver to the entire issue.

now been

to provide more than cursory in-

other factor in this trend has
been the more extensive use of
the intrastate transactions involving a restricted number of investors which are exempt both
under the Federal Act and under
statements the statutes of the majority of

P1? any °th<;r geological information; and only those issuers in the
promotional stage are even reQuircd to include a brief description of the properties to be operated or developed. In addition to

imown

occur.

The

State

iss"er was at a11 times extremely

who may reqUire the revision of
a nronnsed nlan of financing in

this respect as a Condition to the
jssuance of a permit. A regulation
has been promulgated to supplement this procedure which prohibits the issuance of promotional
securities in excess of 20% of
authorized capital. The promoters
0£ any such corporate issue are
aiso compelled to subscribe for at
ieast 10% of invested capital and
are further required to
deposit
such shares in escrow, to be held
subject to the direction of the
Secretary of State until the other
shareholders receive a specified
return as dividends.29
There is little doubt but that

J5°1^Jn-drl:™a"d offLC3rs of ification of registered corporate the financing of the promotional
securities. Alt. ougn this form of oil and gas venture. The effect of
application was adopted by the
National Association of Securities
Commissioners for use in connection with offerings other than oil
and gas issues, its use is neverin- theless permitted in Texas to

^u^trates the imponderable factor
it is evident that compliance
wblcb necessarily exists in suca v/ith the procedure prescribed
reSulatory procedures.17
under Regulation A presents litThe diverse advertising re- tie difficulty to a prospective isquirements of the several states suer. Nor does it furnish any
warrants

most

consideration, for substantial safeguards to the
require

jurisdictions

the

qualify all securities.

vesting public.

this arduous procedure, however,
avoided by resort to the exemptions prescribed
oy Sections 3(e), (j), (k), and (1)
may sometimes be

0f that Act. The most frequently
used exemption is that accorded

by Section 3 (j) which permits a
domestic corporation under certain conditions to issue and sell
securities to not more than 25
persons. The use of this exemption
although not limited in amount,
is restricted to corporations in-

The public distribution of fracIn the state of Texas the qualiundivided interests in oil fication
procedure
relating to
agency.
The publication of a and gas rights offers another registered issues is further simplistandard announcement type of method employed in certain states fied by the acceptance of a copy
advertisement which includes the to finance small gas and oil ven- of the prospectus filed with the
names
of
nonregistered dealers tures. Although defined as secu- Securities and Exchange Commishas in some instances been held rities by both Federal and state sion in lieu of the plethora of re- corporated
under the laws of
t0 violate state statutes. The use statutes, and subject to their re- quired exhibits.26 This eliminates Texas and must necessarily by a
0f the restrictive or hedge clause spective procedures, these oil and the troublesome problems in- wholly intrastate transaction. Alindicating such a publication is gas interests are specifically ex- volved in the establishment of the though the existence of rather
made only on behalf of registered
eluded from the exemption pro- reserve estimates; for the geolo- substantial amounts of speculative
dealers and does not insure com- vided for by Regulation A.
This gist's computation included in thp money in this region permits the
piiance with all state statutes. The type of offering however, is ac- prospectus is invariably accepted financing of many promotional oil
problem is reglatively simple if corded an exemption from regis- by the state regulatory agency and gas ventures by reason of this
advertisement
is
confined tration in an amount not exceed- without further question.
and similar exemptions, large
submission
material

within

the

and approval of all
the state regulatory

boundaries

one

tional

ing $100,000 pursuant to Regula-

™ldable when yiewed in connec*on
interstate circulati.on
newspapers and magazines. Obviously, the matter is
0?e wh^h comPels the institution
3 uniform practice.

The exemption is not available

Rules
Act

Rule 314 however, eliminates such
restriction with respect to issues

to any offering—other than those
representing a participation in a
landowner's royalty interest—unless the operating lessee retains a
minimum working interest of
The distribution of identifying 20% in the property under develst^ements and preUmitwy pros- opment The recently modified

?31^and

occtuses

nermitted
132 ot
presented

under

Securities
a

rather sub-

stantial problem, for in some
states the use of 'these "red herring" prospectuses was held to

The

annliration

( curities which

vided the smallest interest offered
for sale is not less than $300.

aualifv

se-

are exempt either
under Regulation A and B, or by
virtue of their intrastate charactor, requires the submission of
more detailed information than
that sought of registered issuers,
There are numerous exhibits
which also must accompany the
application including financial
statements, property maps, geologist reports and property ap-

that do not exceed $30,COO, pro- praisals.

The Regulation B exemption is
transmis- constitute an offering in viola- further conditioned upon the filhad not tion of state statutes. Fortunately, ing of an offering sheet with the
the re- the sympathetic treatment given Commission but can in no event

just

The Regulation A

unusual situations have been

initially

onH

fair,

of prohibit the use of any informa- chaser."28

Ef'taTwas totherUeomDeIled st?<je,!?ut 'I somewhat more for- tion B.23
+£ ?
t.at

uncertified financial
covering a two-year period, the states.
jowa) on 0ne occasion refused to offering
circular must disclose
a review of the qualification
qualify a fully registered under- the offering price, underwriting procedure prescribed under the
written issue of preferred stock of commissions
or discounts,
the Texas Securities Act will serve to
a
iarge gas transmission corpora- purpose for which the proceeds demonstrate the varied requiretion although it had permitted the received from the sale of secu- mGnts applicable to registered and
gaje 0£ ^g common stock only a nties will be used, and certain exempt offerings.
the exacting requirements of tne
year previously. It might be added other inform at on relating to maThe filing of a (uniform applica- Texas Securities Act imposes u
^at
financjai position of the terial
transactions
with pro- tion is tne initial step in the qual- rather substantial restraint upon
some

also

The

constructionlucrative ?ntlS,fac.tor?L'T!"S slt"atl°" mter?Iy

statutorv

attorney.18
Although Notification and offering circular purchaser satisfactory evidence of
The state nrocedure is comoresuch a statute evidently has the in triplicate with the regional of- the validity of title which he is hensive and permits the exercise
endorsement of a substantial part fice of the Securities and Ex- to receive.
ox
a fUrther substantial
control
0f the Kansas Bar, the require- change Commission in which the
The relatively slight use made over the more speculative type of
ment is an example of another issuer's principal place of busi- of Regulation B in the financing securities The amount of promopetty nuisance confronting inter- ness is located.21
This offering of oil and gas ventures must be tional securities may be reviewed
state distributors of securities.
circular, the use of which has attributed in large measure to the by the securities Commissioner

/.not; to apply to an offering underwritten on a standby basis. The
denial of this exemption can ap-

appears

equitable and the securities whicn
it proposes to issue ... will not
work a fraud upon the pur-

Kansas

great majority of states

state

curities

other

however, this exemption has been
held

The

t ion. Unfortunately,

a commission or

r e m u n e r a

required

made mandatory, fails less stringent requirements and
the larger exemption provided by
the auth0rity permitted Securities formation relating to the issuer of Regulation A, as well as a rather
is made by an Administrators under many state the securities.
The issuer more- pronounced preference of both
its own stock- statutes to pass upon the invest_ over is not required to furnish dealers and the investing public
not involve the ment
quality of the issue ought to an estimate of reserves or to sup- for corporate securities. 25 Anhaving this

In certain other states

require-

with the further

fronted

disclosure

The offering sheet prescribed
by Regulation B further requires
the incorporation of the proposed
instruments of conveyance and a
ratlier detailed map of the propthe decided advantage to the is- erty to be developed and certain
suer in the promoticnal stage, of
adjacent properties which indiavoiding the full disclosure re- cate the extent and results of any
quirements, afc well as the rather prior exploration.
substantial expense, incident to a
A copy of the offering sheet is
registration effected
under
the required
to
be
delivered
to
Act.
every potential investor prior to

multistage blue sky effort that all applications to qualify

may

issues rights. The geologist's report may
be included in the offering sheet
but has not been made mandatory.
Rule 328, however, does

quiring capital not in excess of
$300,000,28, is often accomplished
through the use of the exemption
from
registration
provided
by
Regulation A. This procedure has

state

registered issues and is indicative tion relating to an estimate of oil
The distribution of all securities
L? ™meral securities.
of a more complete integration of and gas recoverable from the must be effected through regisThe statutes of certain states Federal and state procedures, 19
property involved unless such an tered dealers. If the issuer parpermit the Securities AdminisThe financing of small scale oil estimate is included in the offer- ticipates in the offering of its
trator, in his discretion, to re- and gas corporate ventures, re- ing sheet.
securities, it too is required to

of the

applicable

rather derailed and

from registration under
Regulations A and B. This can
be attributed in part to the exexempt

plicity
any

those

fr0m

The disclosure requirements

however are

bama statute, however, has been
recently revised to exempt issues
registered under the Act from this
onerous requirement.15

registration under the Act.

ing which has been authenticated

registered counterpart,
A permit to offer the securities
not unlike that called for in Form for sale in Texas is issued if in
S-10, which is the appropriate the opinion of the Securities Cornform of use in connection with missioner upon due consideration
the registration of fractional un- of the application, "the proposed
divided interests in oil and gas plan of business of the applicant

sale.

under the Federal Act. The Ala-

from

exemption

dealer as defined in the Se-

been

statutes which have

curities

accorded

I VAIIVAAVw practice and extreme caution is depending upon the nature of the scrutiny by the Securities Comrequired in the distribution of this oil and gas interest offered for missioner than that given to a

period, to submit an ap- material so as not to violate the
praisal of all its extensive prop- statutes of such states.18
erties, despite the fact that its
The requirements of state qualearnings
pattern
and
financial ification procedures with respect
stability had been definitely es- t0 securities registered under the
tablished.13
Securities Act are substantially
The securities law of Connecti- different
and
less
formidable
quisite

se-

state

under

qualified

regulations, or by curities Exchange Act unless such
amendment of statute where re- person is registered.24
quired, resolved the difficulty in
The information required to be

Prospective issuer of such cut

securities.

the

that

evident

selection of

existence in good stand-

Adminis- be obtained by any person who corporate

promulgation

■

19 AC

opinion

resolved

experts.

the

permissive

• li

VA« 1AABM VMM

iJiiierences

#1*1

At UlI and

111 AilCltlCI

by an appropriate official of the
issuer's state of incorporation.27
The application to qualify an
ff
mos^ jurisdictions. Certain of the included in this offering sheet is unregistered issue is unquestionlvAlltllfAC states, however, still prohibit this prescribed by Rule 330 and varies ably given a more meticulous

_■

■

King \||V KrnnlPinC lit til A rllllllf1
B#"»Jr • IVMAvUlil AU BAftV A Ml#AAV

■

(2337)

Number 5328... The Commercial and Financial Chronicle

Volume 179

scale acquisitions of capital re-

quire, the use of the multistate
distributive mechanism.
Attention is called to the fact

that the Texas Securities Act does
not contain a "private offering
exemption" as that exemption is

understood under the Federal Act.
Section 3(j), as stated, applies
only to domestic corporation^not to individuals or to foreign

corporations. The broad definit on

of the term "security,"

appearing

All issuers of securities, whether in
Texas Act, is sufficient to
or not registered, are required to >ndude
file a formal consent to submit to a™
lease an oil pay
the jurisdiction of the courts of [°yaalty '"terKt, and would s e
Texas, and an additional certifi- lrW cover any ana an ryp s o
cate evidencing the continued
Continued on page oo

The Commercial and Financial Chronicle

(2338)

Continued from page

The

Blue

Sky Problems in the Public
Financing of Oil and Gas Ventures
oil and gas lease,
but does not apply to the grant¬
interests in an

of the original lease by the
nor
does it apply
to a

ing

In my

opinion, it would be most
difficult
to
defend
an
action
brought by the ordinary investor
recover the
purchase price in

lessor

"shooting permit."
The oil operator who sells in¬
a lease is by definition

All
the
participant
would have to allege was a viola¬
tion of the Act and it would be

terests in
an

"issuer." Also, he is by defini¬

tion

unless the trans¬

"dealer"

action

within

comes

one

the

exemptions contained in Section 3.
I submit that it is obviously im¬

deal.

any

encumbent

the
seller to
compliance or ? valid
exemption. Numerous bona fide
deals are daily made in the Texas
oil industry which are technically

permission of the Securities Com¬

made

issuance

the

ing, under certain conditions, the
partner¬

sale of an interest in any

ship, pool, or other company, not
a
corporation) is inadequate to
cover
the ordinary drilling deals
as
the same are usually drafted

primary consideration being

with

given to income tax consequences.
Subsection (c) of Section 3 (deal¬

with

ing

affords

investments)

personal

limited field for exempt

operations

however, suffi¬

not,

—

ciently broad to cover the multi¬
tude of every day transactions of
individuals who are entitled to

equally favorable consideration to
domestic

accorded

that

corpora¬

(j) of Sec¬
tion 3, heretofore mentioned.
Section 30 of the Texas Securi¬
tions

by Subdivision

with

ties Act makes it a felony

fine

for

$1,000

not

/for

imprisonment

than

two

years,

dealer to sell or
security which
is not registered under the Act,
Section 33(a) provides that every

both,

any

sale any

offer for

sale

contract

violation
at

the

election

the

shall

who

the

sale

made

voidable

Act.

the purchaser,

entitled

seller, in
tender in

recover

action

at
law upon
proper form
to the seller of the security sold,
from

interest or other in¬
distributions received

dividends,
and

come

amount of all

with the

together

by the purchaser from such se¬
curity, the full amount paid by
the purchaser with interest from
of

date

the

date

the

The
period is two years from
that the purchaser had

limitation

that

knowledge
violation

purchase.

the

sale

was

Securities Act

of the

in
or

when he should in the exercise of

ordinary care have discovered that
sale

the

was

Securities Act
exercise

violation

the

when he should,

ordinary

care,

have discovered that the sale was
in

violation

the

Act.

Any op¬
comply with
the registration provisions of the
erator who does not

Act has

assurance

that he will

permitted to retain that which
has received in payment and
may find himself obligated to re¬
turn with interest the purchase
he

price for the interest sold in the
lease. There

where

are

cases

reported

action has been brought

by a purchaser to rescind the
transaction. This may be because
of the nature of the individuals
who

are

ness

engaged in the oil busi¬
it, may

because

ignorance of the stringent provi¬
sions
Sellers

the

have

statute.
not

However,

been

loath

,the dealer registration
re¬
quirements of the statute to es¬
cape paying commissions for sales
use

leases

which

faith
should have been paid. This "free
good

ride"

of this

violation

practicable for the ordinary oil
operator in carrying on his busi¬
ness
to register and secure the

"security" that would be involved
in the typical drilling deal. Sub¬
section (k) of Section 3 (exempt¬

upon

either prove

missioner

there

However,

Act.

only two or three in¬
an attempt has been

are

stances where
to

securities

such

the sale of
be

deal involves

interest with

well

drilled

thereon, the papers
drafted so that the minimum

are

amount is attributed to lease cost
the

and

residue

the

for

pur¬

chaser's share of the cost of drill¬

turnkey
or
straight
participating
basis.
This, of course, is done to give the
purchaser the intangible deduction
and to capitalize the least possible
ing the well either

amount.
the

then

the

would

most

difficult

fend

for

small.

it would

buyer to de¬

against the contention of the

purchaser that he paid X dollars
for an interest in the lease with
well drilled thereon.

Obviously,
if the lease was worthless, the
purchaser would not hesitate in
making this contention from a tax
standpoint.
The Securities Act was passed
to protect innocent investors, but
not to hinder legitimate oil and
gas operations nor to provide the
knowing investor with a "free

ride."

would

The broad provisions of the
statute encompass a field far be¬
ator.

yond what is needed in the regu¬
lation of the securities affecting
the oil and gas business and could

seriously hamper the prosecution

sug¬

bution

proach presents
tutional
the

which

authority

the

interstate com¬

over

merce

encroach

can

the

para¬

Federal

the

Government

rights

ap¬

serious consti¬
which involves

question

extent

mount

This

securities.

the

upon

states

legislate

herent in

in¬

single Federal proce¬

dure, it is submitted that such a
completely centralized control
the

over

step

undesired

and

the direction

mented

regi¬

economy.

large

number

blue

sky problems exist only
by reason of the failure of the
states
to
completely
integrate

their

regulatory procedures with

the Securities Act.,

It is difficult

justify state statutes whose
regulatory approach is predicated
upon
a
full
disclosure
which
nevertheless requires an issuer to
file a detailed application accom¬
panied by supporting documents
setting forth the identical infor¬
mation contained in the Registra¬
tion

There

Statement.

why

appear

determination

the

information

Federal

Act.

readily

not make

can

basis

the

required

The

by the

states

general public offer¬
ing. This can be accomplished by
no

exemption similar to the ex¬
emption contained in Section 3 (i)
an

there

would

accomplish this simplifi¬

not

from

the

ex¬

same

Certainly the
business is a vital por¬

operation.

oil and gas

tion

oeople but

individuals

of the

economv

of this

state

and the Securities Act could have

derided! v deterrent effect upon
the industry if purchasers avail

themselves of the rights given un¬
Section 33(a).

der

is,

course,

virtually

im¬

the

made

the

information

contained

Registration Statement.

This

approach

will

expeditious

securities

proved

permit

distribution

without sacrificing any

the

technical

can

be achieved

attempt at

procedures.
The

cumulative

effect

the

several securities statutes on the
distributive mechanism cannot be

underestimated.

The

ling.

however,
that
investment
funds be permitted to flow
freely
into industry.
The effectiveness of the modern

investment mechanism depends in
last

analvsis

distribution.

The

unon

speed

interest

in
the

public necessarily reauires that a
compromise be achieved between
the protection of the investor and

The problems presented
by the
co-existence of state and Federal

securities
pear

legislation

warrant

determine

sirability

of bona fide legitimate oil opera¬

tion

tions in this state.

dures.

would

investigation

ap¬

the

necessity and de¬
of the continued opera¬

state

for

This

the

Securities

recommendation

particularly applicable with re¬
spect to gas and oil securities in¬
asmuch as many of the states are
without

the

services

com¬

petent
petroleum
engineer
or
geologist to assist in the evalua¬
tion

such

application to qualify

securities.

There
the

state

eral

little

the

but

that

extent

legislation

the

doubt

that

regulatory procedures
to
perform
a
useful
fails

investment

quality

Fed¬

evaluate

regulatory

proce¬

28 Ibid

secu¬

The exemptions from reg¬
istration under the Securities Act

wholly intrastate transactions

also provide a broad area for the
states to exclusively exercise their

regulatory
perform

functions. The states
further and extremely

useful services in connection with

distribution of promotional
rities.
A

review

state

the

issued

State

procedures.

The enactment of such
hensive

all

how¬

not

final solution

problems in this field.

re¬

mains essential that the effect
the

the

regulatory efforts on the dis¬
constantly
This will permit the

securities

such

re¬

statutes.

The need

is compelling, however,
for the states to more fully inte¬
grate their

regulatory efforts with

the Securities Act.

If this

accomnlisbed,

salutary

the

can

pur¬

of this tyne of legislation will
achieved without placing an

pose

undue burden

legitimate
necessary
A

the efforts of

business

31 See

acquire

tend

and

the

promote

distributive

cient

techniques

the

states

procedures

with

been

correlate
the

1, page

form Sale of Securities Act

proved

however,

for
a

Secu¬

State

the

withdrawn from

was

conference

held in

missioners

referred

ap¬

Confer¬

Uniform

the American Bar Association.

Laws and

Act,

first

was

the National

1929

Commissioners

ence

Com¬

1943 and was
Act Section

August

Law

Public

further study with authority to draft
act.
No substantial progress has

new

been

acceptance of new and more effi¬

House Blue
492. A Uni¬

Clearing

Sky Reporter, Vol.

consideration

made

ment of

any

date

secure

the^enaot-

such uniform statute.

With Llo-d D. Fe n»!d Co.

regulatory agencies.

(Special to The Financial Chronicle)
1 The

placement is
a
term
which relates to all non-public offerings,
but usually applies to sales effected to
insurance
companies and other similar
institutional
investors.
Although
this
type of distribution was originally lim¬
ited to high grade debt securities, re¬
private

amendments

cent

the

laws

most

permit such companies to in¬
obligations as well as
preferred and common stocks; see Men¬
del,
Institutional
Investment
Through
Private Placement of Corporate Securi¬
ties, 53 Columbia Law Review 804-816.
states

The

Bulletin

Statistical

the

effected

associated

with

(Specie! to The Financial Chronicle)

DETROIT, Mich.—Samuel
Goodman

than

such

state

Securities

twenty

statute

obscot

Act

enacted

the

Co., Pen¬

Building.

(Special to The Financial Chronicle)

1911.
Similar legislation was
enacted in other jurisdictions
and
in
1919 thirty-two
states had en¬
acted legislation regulating the distribu¬

securities.

added to

been

With State Bond & Mtg.

The

years.

was

3 For

has

staff of B. C. Morton &

antedated

statutes

the

enactment

Bo C. Morton At!ch to Staff

1953.

securities

2 State

1933

now

Stone & Co.

Securi¬

Exchange
Commission
(Feb.
estimates
that
private
place¬
approximating $3,370,672,000 were

1954)
ments

the

Bunce

Lloyd D. Fernald & Co., Inc.,
Holyoke National Bank Building.
He was previously with Hayden,

unsecured

and

ties

HOLYOKE, Mass.—Kenneth R.

now

vest

NEW

ULM, Minn. —Earl O.
now with State Bond

Ormseth is
&

Mortgage Co., 28 North Minne¬

sota Street.

discussion see Wright,
Correlation of States Blue Sky Laws and
The Federal Securities
Act, 26 Cornell
Law
Quarterly 258-295; Smith, State
Blue Sky Laws and The Federal Securi¬
ties Act, 34 Michigan Law Review 11351166;
Smith, Relation of Federal and
State Securities Laws, 4 Law and Con¬

general

temporary Problems 241-255.
4

Examples of this type of law may be
in Maryland and New Jersey. The
New York statute commonly referred to

Joins Pasadena

Corp.

(Special to The Financial Chronicle)

PASADENA, Calif. —Ralph W.
is

Barnard
the

now

Pasadena

connected

with

234

Corporation,

East Colorado Street.

found

"Martin

the

edly
the
5

Examples
found

Act"

which

With FIF Management

purport¬

a fraud type of statute also requires
licensing of dealers.

this

of law may
Connecticut,

type
states
of

the

and

Maine

(Special to The Financial Chronicle)

DENVER, Colo.—W. J. Smilie,
become

connected

6 This
type of statute is rather rare
exists in only a few western states,
including Wyoming.

Examples

and

found

diana,

has

Management Corporation, 444

Sherman Street.

this

the

type of law may
of Illinois,
In¬
Nebraska, Michigan

states

Ohio,

Texas,

Wisconsin.

8 15

9 See

77r(18).

Commerce

Clearing House, Blue
Sky Reporter, Vol. 1, pages 485 et seq.
10 See

Lobell, Revision of the Securi¬
Act, 48 Columbia Law Review 313-

ties
340.
11

Examples
be found

may

and

this type
the states

statute

Indiana

Texas.

Revised
Statutes,
Chapter
l/z, Sec. 96-137; the foregoing statute
completely revised by the enact¬
ment
on
July 13, 1953 of the Illinois
121

was

Securities
effective

Law

13 Texas

Jan.

(offering

became

1954.

Eastern

ration
March

which

1953

Transmission

Corpo¬
stock in

1952).

common

...is

14 General Statutes

vision
et

1949,

of Connecticut, Re¬
Chapter 288, Sees. 6010

of Alabama

Amended,

Sec.

16 General

and

Statutes

Amended,
17 Texas

Sec.

Eastern

1940, Title 53,
12 (3).
of

Kansas,

your

1949,

19 See

and

Bloomenthal,
Gas

pages

not

where

bill

pending

2846)
tion
to

which

amend

the

Congress
will

wart

seq.

Persistent

mole

indigestion

difficulty in

swallowing f?l (above) H Any

change in normal bowel habits.

49-88;

Securities

(H.

increase

|?| Unusual bleeding

discharge |]j Any change in a

For other facts about cancer
that may some

day

save your

life, phone the American Can¬

38-53.

pages

signals

H Any sore that does
heal 0 A lump or thick¬

ening, in the breast or else¬

Meer,
Oil Finance and the
Securities
Law, October 1951 Texas Law Review
885-903; Doss, Judicial Interpretation of
Texas Securities Law, 2 Baylor Law Re¬
view,

visit to

doctor.

are-

Blue

S.E.C. Aspects

Financing,

seven

signals

cancer...but

The other six danger

Corpo¬
ration.
Its common stock was qualified
for distribution in Iowa in March 1952,
but its Preferred stock, 5.50 First Pre¬
ferred Series, offered in August 1952 was
refused
qualification.
The corporation,
however, was permitted to withdraw its
application without prejudice.

Oil

of the

should always mean a

Transmission

Clearing
House,
Sky Reporter Vol. 1, page 481 et

sixth

that may mean

7-104.

il8 Commerce

the

commonest danger

seq.

15 Code

cer

Act

Society office nearest you,
write to "Cancer"-in

7550-S.

the

exemp¬

of your

provided by the Act from $300,000

care

local Post Office.

$500,000.

rities Act and the trend continues

21 Rule

218.

definitely in this direction. There

22 Rule

219.

with

Sr.
FIF

Pennsylvania.

and

20 A

effort has

Commerce

The

quired

(1917)

Co.

U. S. 539.

242

reappraised.

enactment of such cor¬
rective legislation as may be re¬

approved

and

Texas

Geiger-Jones

tributive mechanism be

capital.

substantial

made

their

upon

Secretary of State.

30 Hall

a compre¬

will

program

result

ever

completely justifies

existence

the

secu¬

legislation in the li«?ht of the
sults achieved

Sec.

29 See

12 Illinois

rities.

and

Chapter

Sec. 6-

Laws of Texas of 1935,

Amended, Sec. 5.

27 Ibid

eral

were

consultative

investing the licensing of dealers and the
regulation of the issuance and

public must be accorded adequate
protection. It is equally compel¬

the

Commission

available

continue

broad coverage of this field is to
delineate the nature and scope of
the basic problems which exist
under
both
Federal
and
state

staff

function

operation.

services

Exchange

made

involved in

extensive blue sky
Perhaps the most that

100,

Regulations dated Aug. 1, 1952
by the Securities Commissioner

tion

possible to review all the problems
an

enactment

rapidly

purposes.

type

$38,797,997.
26 The

in¬

may

Kansas

and

clude

the

secure

the

for its fiscal year

that

such further legislation
be required to complete
the integration of state and Fed¬

se¬

of Securities

take

and

basis

curities to

not

than

Exchange

cates

adequate uniform state stat¬

ute,

permitting the qualification of

to be
why a domestic
corporation could sell securities to
appear

first

sound

reason

itiative

cation of blue sky prQcedures by

anv

Administrators

could

disturbing the existing regu¬
latory spheres occupied by the
Federal and
state
governments.
Indeed, state
administration
of
other securities statutes might be
considerably facilitated and im¬

in the several states.31
responsibility devolves upon
such
articulate
groups
as
the
existing

pass

quality of securities
a

not

reason

those states which pur¬
upon the investment

even

port to

does

valid

any

Act should be amended to exclude

there

National Association

and

protection of the investing public

from its operations the sale of in¬
terests in oil and gas leases where

25 19th Annual

American Bar Association and the

diverse

requirements

prompt

Unfortunately,
of

mechanism

investment

substantial

310.

312.

Report of the Securities
Commission (1953) indi¬
ending June
30,
1953
securities sought to be ex¬
empted under Regulation B amounted to
a
mere
$1,678,898, whereas Regulation
A
offerings
relating to
oil and gas
securities for a similar period amounted

the

eliminate

statute

for the welfare of their citizens. 30

Aside from other inadequacies

24 Rule

securities

The

removing the rather substan¬
tial impediments which are now
imposed on the interstate distri¬

300 and

23 Rules

compelling

uniform

the

that

appear

for

and often anomalous

recovery

case

the

light,

cases

However, in such
be

that

purchaser's

look

would

court

transaction

been

however,

remains,
need

gested by certain students in this
field as the most effective method

with the Securities Commissioner.

Ordinarily where

provision poses a serious the
maintenance of an expeditious
problem for the legitimate oper¬ procedure
to distribute securities.

superseding

legislation
authority
has

state

additional

enactment

Federal

Thursday, May 27, 1954

...

American Cancer Society

^Volume 179

Number 5328... The Commercial and Financial Chronicle

'Continued

from

ease

page

(2339)

Prior to

Some

lied,

Occupational

hours

two

come

appointement

inebriates, and cursed

This

leaves

fat

sick.

and

Our

-his grandson, Canaan, because he
-refused to cover the old man's

infertile, our fruits and
vegetables have been canned and

naked

these

bones.

different

•a

Every

slant

■alcohol,

but

ferment

(and

^process)

the

long

this

things

spirit

had

idea

the

has

age

old

mix

other professions.

drinks

fight

that

will

Some

make

you

grandmother, and one
will put on the finishing

your

touches, and
(beautiful

then

and

all

life

women

are

primrose

Seriously

speaking,'

made laws will
of

Self

Old

man-

with

this

alcohol

use

poison

civilization has had
culiar customs and

every

—

it's

own pe¬
in all ages

men

other

necessary

for

bank.

good nutrition.

The

clinic

has

doctor"

"family

become

all

the

both

by industry and the medical
profession. Not only do all the
employees from the President to

man

the janitor get a complete yearly

Our modern inventions in

munication

and
ways

com¬

transportation
simplified the

Eighty

America

nation

percent

sumed

know, is

as you

think

the

my
the

the

world.

food

con¬

by the average American is

unfit

for

There

human

consumption.

two reasons

are

why this is

In the first place our farmland
has been mined year after

so.

year

and

most

today is

the

land

land, and!

poor

grows poor food

people

who

grown

America

land

poor

that makes
sick.

are

land

poor

The

food

ity.

Unfortunately,

the use
of
chemical synthetic fertilizers does
not make land
our

rich, and although

business is

To¬
too

great

hard

driver

quickly

world is bounded

limits,

but

the

with

because
not

literally

earth.

his

by his city
the

ends

One

trouble

with

who has the type of driving
energy needed for such a job, is

man,

calm

his

vacation

are

restored

with

by returning organic

at mealtime and

home

with

brain

man

many

has

years

that

proved

to restore the depleted

way

the

black

fertile state is

to put them back into grass.

The seconcl

trition is

longer
food

natural

simply

has

food.

the

natural

for

beings

make

system built

such

the

abuse.

constant

Ma¬

urge

ruin your

money, can

health.

benefits

tenance

the

and

recent

have

years

become

banks

many

interested

the

health and happiness of not only
their executives, but all their em¬

ployees.
bought
the

Many

hospital

some

deducting

premium

some

them

group

policies,

insurance
part of

the

payroll,

paying all the premi¬

even

from

have

idea

fine

of course,

negative approach. It
is like locking the gate after the
horse

has

been

paying for
has

the

stolen.

Simply

treatment

little

very

dis¬

preventive

minerals

banks

and

industries

are

insisting that their executives

now

and

instances

some

employees have

all

their

yearly physical

destroyed

packaging.
caloric

the

processing

Fifty

intake

out

and

the

percent
of

the

American

comes

average
from
three

things:

sugar,

white

and

white

the

White
and

hydrogenated

these

one

three

its

use

make

upsets

the

body.

sugar and starch in
a

relative

fats.
fit

will

sugar

balance

flour

to
you

both

meal

execu¬

Va.,

for

one

week.

atmosphere. They went
through the Clinic in the mornings
and played golf and relaxed in the
tests

were

advised

modern

made

how

causes

An
bank

that

field

All

and

live

outstanding
has

scientific

they

and

do to prevent future

hyperglycemia, that is,

too much sugar in the blood. This

and

with

die

better healtn for the

the

personnel. A

August,

"Texas

be
issue

can

1950

Bankers

Record,"
your own
magazine, and may I
say here that if you do not keep
every issue of the "Texas Bankers

Record,"

for the library of your
bank, you are making a grievous
error. The first page by "PHIL" is
worth the price. The whole maga¬
zine is beautifully edited and you
should

throw

never

issue

one

away.

This plan

of the Seamans Bank

for

Savings could

adopted

should

and

bank
in
it would have

every

America. Of course,

to be modified to suit the needs of

smaller

institutions, but it is

banks

the
The

this

provided

promise you

up to
initiative.

the

take

leadership

programs
be

undertaking

has

nature

industry! I
that the medical
by

were

what to

disability.

(2)
is

to stop that monster,
medicine. This sort of

way

socialized

plan, I feel, would go a long way

solving

toward

should be

the problem.

seems

health

that

the usual thing instead

of the unusual

thing. As we have
said before practically everybody
in the country is sick with one

another. The answer to
this problem of illness, when
solved, will no doubt be simple.
or

The

example of a
in this

pioneered

employee

health

the

with

most

all

the

been

the

has

been

other

removed.

cereals

degerminated.
endosperm

Nearly

have

get

starchy

also

clinic in Brooklyn.

programs fell
accomplishing pre¬
therapy. Just a prepaid

hospital

found

was long range health
maintenance. They recognized the
need for a positive approach and

the

are

mouth

bung

and cure of polio and

cause

well turn out to

very

may

I have

matter.

simple

very

read that it is not in the nature of

do not have

you

should

you

that

rule

human

made,

tremendous

get

I offer

ability

alcohol

and

excess

are

certainly poison and you must be
temperate in their use. For that

all out in ev¬
erything he does, ; perhaps com¬
plete abstinence, is his only solu¬
tion to this problem.
indiscriminate

science says

Modern

demands.

cannot prove
beyond any
question that this or that is true
you

then
say,

cannot believe what you

and

very

tablished.

standards

definite

have been

es¬

only be dealt with

can

committee

this

investigate
the

There
Congress
peril, but so
.

preponderance

Our

poisons.

testi¬

will remain
of

food and drug

pure
a

farce until

enlightened

the

and

en¬

raged public is heard.

Therefore, you should eat
whole grain cereals.
This

grairf.
only

whole

means

wheat

flour,

home

ground meal, brown rice and reg¬
White sugar, white

flour

and

hydrogenated
omitted

(4)
would

much

t s
as

short

ventive

adequate.
most

company

insurance

The

so-called

big

policy

loophope

health

in¬
in

insurance

observables
ture

imperturbability. Imper¬
turbability means coolness
and
presence of mind under all cir¬
cumstances, calmness amid storm,
clearness of judgment in moments

tude

grave

things,

have

who

being
so

Twenty years ago

considered

the

are

certain things
be

positively

scientifically proven facts. Today,
wc
know better.
I believe today
certain
health

peril,

simple

very
are

true

rules
of
although, with

only

plans is that the individual waits

present methods, we'have no pure

part.

for the outward symptoms of dis¬

scientific

proof

immobility, and
Some people are

born with this

phenomena.

were

Another simple rule that I
like to suggest is ah atti¬

phy¬
un-

them;

but do

St.

patron

American
and

gen¬

who

saint

St.

ever

the

keyed

are

The

tense

are

quality, but to you
not so fortunate, may 1

that you
quality and in

suggest

And

it.

cultivate
measure at¬

can
a

there

mental

this bodily endow¬
equanimity is the
desirable attitude. A clear knowl¬
equivalent to
ment.

edge
low

calm

relation to our fel¬
indispensable. One of
essentials in securing a

our

man

the. first

good natural equanimity is not to

much of the people
whom you dwell.
Ac¬
ceptance of the other fellow as
an
individual
with
rights and

expect

too

amongst

that it is impos¬
them to sleep even

up,

with

sermon,

body

and

Vitus.

people

sible

put

but

the

that

steed

longest

goes

under

human
freest

light riders
lightest of all riders is a

and the

cheerful

heart.

morose

Your

sad

embittered

preoc¬

cupied

heart settles heavily in
saddle, and the poor beast, the
body, breaks down the first mile.

the

heaviest thing in the
heavy heart. The brain

out

much

than

worry

there

was

quicker

from

band

negro

Onc^iX/.
woman

Her hus¬

died, her house burned and

of the children broke, his leg:
was asked
how she managed

one

She

hold

from?

work.

old

who had nine children.

well

trouble.

Her

trouble

with

answer

learned that you

learn

all

befo'

and

wear
are

troubles
conflicts

We must

accept.
the

has.

wear

corral

our

some

practice

this
that

was

jus' has to

clothes loose."

your

three

A's:

Acceptance, Approval and Adora¬
tion, or love; instead oi condemn,
cuss

and criticize.

late

God's Natural Law of Love.

Habakkuk,

We cannot vio¬

one

the

minor

prophets,
was
known
as
the
doubting prophet. He cried out to
the

Lord

about

all

before

the

him.

violence

could

the

why

right¬

surrounded

and

over¬

by the wicked.
plained that the law

com¬

has

been

eous

were

come

slacked, and judgment doth never
go forth; but in the end he fi¬
nally saw the light, and with a
happy

joyous

heart

cried:

will rejoice in the Lord.
I will
joy in the God of my salvation."

Gentlemen, the rules for a happy,
joyous and healthy attitude can
found

Mount.

the

Sermon

the

...

G>
William Everit Burnet
William

Everit

partner

died

Road,
nesday

Burnet,

senior

his

Burnet

Co..

eve¬

brief
He

home, 32 Brookside
West Orange, N. J., Wed¬

ning after

illness.

was

Mr.

79.

Burnet

was

born Jan!

1 87 5

East

Americans

The

This is?

nervous

vitamins is from the kernel of the

Just

existence

most

has.

know

Patrick; of the English,
George; the patron saint of

fertile soil and it should
fresh.
The place to get your

forced

been

the

Peale

don't

grown on

impassiveness.

sicians have

lived.

(3) You should eat natural food

In my opinion this very

idea is unscientific.

eration

the

understand

mony
has been given
by the
chemists who make and sell thesa

science

modern

that

sense

toothe

tension.

overcome

probably

not

and

should

Some facts cannot be proved

how to

Norman

strife

now

use

by National Legislation.

voice

and
with

being only half

Dr.

Americans

that

and

step by step and every man
depends on the work of his prede¬
cessors. Newton with true humil¬
goes

pay for

civilized.
said

in¬

secticides

law

tension,
interferes

pesticides, and th?
chemical preservatives in

The

far

You

pursuit of happiness, but it is the

price

individual who goes

tension

so won¬
just learn to
with such a loose!
There
to regenerate that we must

ular oatmeal.

any one man

leads

body,

and

itself, can withstand small doses
of poisons without disaster.
To¬

to make a
sudden violent discovery; science

things for

that
much

Indeed

should not hesitate
your
problems with

The

derfully

bacco

attitude."

get mad. Hate*
envy and jealousy cause conflict

world is

temperate with all your

The next
be

vices.

healthy

"I'se had

food,

cancer

Simple Health Rules

discuss

use

thing

round

age

man's

and

doctor,

our

grown

him.

to
can

all, both of us, business and
the medical profession, are eager
to find

food

you

pro¬

for scientific proof

Their goal

far

enzvme

time

simple rule is to
complete physical exam¬

and

that

1941

degerminated, that is the kernel, where all
and

barrel. ;

family

one,

the

vitamins

was

toothless

troubles.

tain

Our

110

teeth

own

There

stay,

your

this

suffers.

ination every year and do not be
afraid to tell your doctor all about

na¬

been

The

The first

(1)
have

lives.

own

afford

wears

forced
to
have faith
in the reality of
unobservable mental and spiritual

has

their

the

soil,

A Few

muscle

live

natural

hole in

laith

bread

India

become

Seamans Bank for Savings in, New
York. They instituted the program

heart

thing.

very

mouths.

fertile

quickly followed by a hypogly¬
cemia—not enough sugar in the
blood.
During these periods of
hypoglycemia, our resistance to
disease is lowered, we become fa¬
tigued, nervous and irritable and
daily

this

the

top

clinic at White Sulphur

Springs,

their

afternoon.

much

bank

the

happy

Americans

are

Hunza's

back

one of' the
conflict and

Irish is St.

does

here

our

places, in the souncivilized
world, where

deed, there
called

and( also with.

stop

(5) You must learn to maintain

In¬

age.

calm

sent

eat.

chemical

Too

years

daily diet.

companies

Not

fat

120

shoulders of others.

tives to

taken

110

puberty.
Accord¬
could expect to live to

There they had a complete physi¬
cal examination in an unhurried,

has

all

years

ity said that he was able to see so
far
because
he
stood
on
the

examination. Last year 36 leading

them

possible. At the present time in
many places this is difficult to do.
Therefore, I advise that you in¬
clude raw wheat germ in your

and enzyme that nature
put there; but 80% of what we eat

had

man

increasing ef¬
ficiency, reducing absenteeism,
improving morale and resulting in

Other

vitamins,

number

employee,

After

Suggested Program

value.

Natural

ingly

fession stands ready to cooperate.

nu¬

food that still

means

The

made

human

terialism,

ease

our

is because

poor

eat

why

reason

not

us a nervous

stand

lands of Texas to

night.

steadily all day and into
night. I doubt if He gave

but

few

take it

work

the

Research

was

intended

never

This is

sur¬

hard

such constant energy! The Creator

um.

Foundation

man

other

some even

them

matter back to the soil. The Texas

short

driving human dynamos and gogetters. Together they hunt or fish
too
strenuously. In the evening
they may play poker for high
stakes and often they smoke and
drink too much. They have an in¬
ability to rest. During their work¬
ing days they even discuss business

almost

unlimited, our
becoming poorer every
year. Fortunately a new movement
in agriculture, the
organic move¬
ment, is rapidly gaining Jieadway.
Many of our best agriculturists
are
at long last
learning that the
fertility of the soil can only be
lands

such

himself

capacity to produce these fer¬

tilizers

birth

will

world

woes.

must

poor

vitamins, minerals and- enzymes,
and the proteins are of poor qual¬

from

that this program of health main¬

executives, but they

our

big. The successful executive

rounds

fed

left

decisions

subject,

uni¬

stamina. He must be able to make

tasks

worst

this

people did without dentists,
but when man began losing his
teeth, a way was found to put
them
back, and unless we get

found

hobby:

animals

examination, but they
also get a psychiatric examina¬
tion. Their family problems are
explored, and all of this is kept
on a voluntary basis and the dig¬
nity of the individual is never for¬
gotten. This bank, is convinced

some

complete story of this plan

Nutrition

years

when

suicide,

even

down, he must keep
driving hard even on his days off.

This

of age.
impossible feat.

times the

their

physical

fatigue and

pressure,
v

disease, high blood

not

leads to heart

that he cannot shut it off, he can¬

little

the great killers. They cause con¬
flict and tension and this tension

company quicker than the society
of a stranger, for when he talks

learns

are

few

in their natural
habitat, barring accidents, live to

Worry, fear, anxiety, hate, envy
and jealousy—these emotions are

self, and he gets tired of his

em¬

not

verse,

confidential. They are not
given to the President of the bank,
but only to the personnel director.
The virtues of the "family doctor"
is
being recognized once
more
kept

himself,
listening.

the

ployees. The medical reports
Emotional

have drunk the
draught that kills,
it's not that they like the
taste,
tout it shuts man out from him¬
own

hundred

day the

Corn.

in instituting the progarm— This
significant point—came from the Most

you

rules that, if followed,
help each of you to live

simple
to

suggest to

own

tension in

temple of truth, and
a

out the

initia¬

stone of

that

ways

cannot

would

program. The

the

and there is confusion of tongues.

system led the directors to work
new

somewhere

without this stone the tower falls

re¬

inadequacy of this

the

of his

we"Part' his im^perfections/ i"s

before

beginning has been laid
faith

tive

Barley
only

comes

that always we opinions

pre
proof

believe—for

the

have also added to their

country
only half civilized. Excessive

are

nutrients

basis of

too

have

contain

not

obliterate the

ever

John

control

civilization.

vital

have in

path to fame.

curse

foods

Noah

-specialists in the bar business
many

are

natural

still walks abroad. Today we have
•in

eggs

re¬

employees

see

not

must

afternoon for

one

tainer fee. The

■cheers and

submitting

treatment.-

this bank had

other industries had,
"Company Doctor" who

used to

Diseases of Bankers

and

1941

as many

just

before

occur

diagnosis

Orange,
J.,

lived

and
in

Oranges

the

most

of his life. He

the

entered

securities
business
1892

and

ganized
firm

in
or¬

the

W. Everit Burnet

of Alex¬

ander

■■/Burnet

Company in

1912.

192,0 the firm was merged into

Strong, Sturgis & Co. and became
E. Burnet & Co. in 1927. Mr.
active in the

Burnet had remained

business

until

very

short time

before his death.

Mr. Burnet was a director in

the

Co. and |the
Central Romano Corporation and
in 1945 and 1946 he was Chairman,
of the Stock Exchange Committee
for the finance campaign of the
Puerto

Rico

Sugar

Greater New York

Scouts of America.

Councils, Boy
i ;

The Commercial and Financial Chronicle...

(2340)

National Forecasts

A MUTUAL INVESTMENT FUND

Peak Business For

Mutual Funds

NATIONAL

SECURITIES

Next 12 xMonths
RISE

THE

for the sharp

FREE INFORMATION

United

FOLDER AND

this

PROSPECTUS

group

President

stockholders

the

CORPORATION

Eitablished 1930

ties

120 Broadway, New York 5, New

York

tial increases in net assets in view
the

steady

rise

the

various

month"

periodic

and

tual fund

ning "well in
a

cash

that

$2 million

the

face

value

also

are

tributions

gains
March

May 15 amounted to

gain

$140,400,000,
of

last

representing a gain
than $40 million since the

annual

meeting and

of the
In

selected

of
for

long-term growth of

Prospectus

may

be obtained

from investment dealers

United

said

that

concentration

recently

chemical

the

United

net

asset

Income

Fund

200

Corporation

Parker

Berkeley St., Boston, Mass.

value
has

of
ad¬

point of

the stock market last

fall; United
Accumulative is up 26%; United
Continental up 31%, and United
Science up 30%.
"I

time

that

will

further substantial

investment

four'

the

arrest

the

first

Custodian Funds
BOND, PREFERRED AND
COMMON STOCK FUNDS

INVESTMENT

wide

quarter

the

Fund's

stocks which

common

are

by relatively stable

earnings and dividends."

Keystone Company

50 Congress Street, Boston

Please send

your
ten

Gas,

Edison

9, Mass.

prospectuses

describing

Organization And the shares of your

Funds.

Name

D-92

;

Sales

State

City

for the

tual

P'und.

shown

are

Total

below

asset value

was

of April 23, 1954:

Canada
through

Mutual Fund
?

Amer.-Potash & Chemical Co., class B
Centre Lake Uranium Mines Ltd.

200
500
100
50
1000
200

Climax

100

Molybdenum
Gold

Gunnar

Homestake

Mines,

Mining

Mines

quarter

shows

Beckman

Consolidated

100

General
Metal

for

the

months

ended

Victoreen

Blaw-Knox

Co.

Grinnell

Harshaw

300

Mallinckrodt Chemical Works, class A

Corp.

National

Phillips Petroleum Co.
Union Carbide &

$9.45

per

share value

year-end. Adding

at the

Series of funds paid four quarterly
distributions
of
net
investment

income," Mr. Simonson
"And

reported.
April 26, 1954 just prior

Continued

the

was

"sales

sent

securities

sev¬

introduced
almost

field

some

securities

business

its

and perhaps most important,

new,

market—the middle-class individ¬
who

ual

life
a

has

owned

before

never

his

bond

business corporation.
The

use

of the Visual Presenta¬

the

over-all

representative
his

advantages

financial

term

two-step program.
with

prospect
of

long-

and the
objective in such

planning

Distributors

over-all

are

fund
as

re¬

Group,

to show how shares
properly-selected mutual

can

the

serve

investor

best

"equity" component in his

over-all financial program.

Anderson,

Herbert

business, is

The Visual Presentation display

book,
or

sometimes called the "VP"

"VEEP,"

said

solve

the

program

long-term

—

instances

expe¬

the

that

now

more,

helpful

plan

contacting new
first time,

has
each

together

that

also

ness—and

sale
ad¬

•

business

the

financial

aiming

may

themselves

visers.

"Salesmen

that

securities men
Visual is particu¬

old-time

are

new

the

its helpful¬
somewhat surprising
report

result has been the value that has

holder's account,

been

the

will be invested

more,

send

such

Formerly,

all
as

back total dis-

amounts

quarterly.

dealers

The

well

in¬

were

bank

duplicate

acknowledgments

reported

experi¬

men,

enced in

day of receipt.

except for initial deposits of $250

1953

the

accounts where, for the

investing

one

page

months ago.
"systems" actually repre¬
new
approach on the part

the

our

actual

"The

rienced,

they
HOWARD

field

the

effectiveness

larly
Corp.

Electric Corp.

changed

systems"

importance of

with any cash balance in a share¬

the

over

Carbon

accumulative

been

adjusted for the 32V2c payment
capital gains on Feb. 15, 1954

gain of about 9%

Co.

from

the

Presentation in

calls,"

find

100

for

Securities

Co.

200

Lead

use-i

bepn

each

year,

number

Chemical

from

"During the recent
thje seven National

rather than
just make a sale of fund shares."
Mr. Anderson added,
"In a

100

vested

and

funds climbed

31,452,790 from 23,459.060.

of years.

financial

300

that

$9.95—$10.27V2

planning. The second step, in this

basis

100

March 31. The per-share value on
was

Corp.

Co.

700

h°s

display

key to its effective
use
appears to be largely in the
degree to which a salesman will
go after the entire account on the

Inc.

Instrument

device

stated.

Co.

Engineering
Corp.

large-

from

cessfully by salesmen in the life
insurance industry for a number

President

Vitro Corp. of America
Allis-Chalmers Mfg. Co.

date

Ltd.

Dynamics

Hydrides,

400

value, both for the three months
and

repre¬

84.281

outstanding of the

the effec¬

proven

Presentation,"

"Reports

Instruments, Inc.

deposit of $250

re¬

gain

sales

book
used
by salesmen in their dis¬
cussions with prospects. A similar

tail

200

port to shareholders for the first
1954

their

and

story-telling

sized,

Visual

Laboratories

300

Allis-

Fund's

mutual
that mutual fund

Securities'

reports

proving

Ltd.

600

in¬

Brewing and Ruberoid.
Mutual

advanced

65,822, and the number of shares

These

test¬

April

the number of share-

ago;

owners

simultaneously

Anderson, President of
Group, underwriter

Group

funds,

Ltd.

Co.

Atomic Instrument

200

Co.

Rix-Athabasca Uranium Mines, Ltd.
Vanadium Corp. of America
Abbott

1000

Mines, Ltd.

Lindsay Chemical Co.
Pronto Uranium Mines,
Rand

1500

Iron,
Marshall
Field,
McGraw-Hill,
Pacific
Lighting,

Invest in

Algom Uranium

2000

Interlake

RIDGE

Herbert R.

sale«

500

300

BLUE

year

income

compared with $7,207,885

eral

weather,"

ing in all kinds of "sales

dealers

Atomic Development Mu¬

Westinghouse
Chalmers, Armstrong Cork, Chry¬
sler, Congoleum-Nairn, Duquesne
THE EATON
Light, Falstaff Brewing, Goodrich,

Pfeiffer

last,

$9,590,113

fund

West Penn Electric.
were

Presentation

of thorough

months

year

Distributions

year.

investment

amounted

discusses

1,000
American
Gas
&
Electric, 1,000 Bethlehem
Steel,
1,500 International Paper and 3,eliminated

fiscal
net

first

cluded

Stocks

vious

from

Shoe

stocks

$162,021,914 in the

April 30, 1954 from $122,021,914 at the close of the pre¬

mutual

500

common

Total net assets of the funds in¬

into

After

po¬

ended

penditures which are expected to
continue for an indefinite period;

OK, Says H.R. A.

financial

consumers.

The

Company,

United

substantial

tion involves

1953

23,

$1,103,184

3,000

the

"Visual

Machinery.

000
Addreu

and

for

tiveness of the Distributors Group

4,000 Reynolds To¬
Southern California

2,000

government defense ex¬

the

backlogs

March

year,

bacco,

level

vistas

new

proc.ucts;

COMMON STOCK additions since

Inc.
during the first half of its fiscal

Naural
The

sustaining forces in the economy."
These forces include the high

open

highways, schools, hospi- >
and
other
public facilities,

sition

activity, employment and

personal income over the next 12
months
on
"powerful long-term

sentatives have

our

Sept. 30, 1953 to March 31,
1954, included the purchase of
2,000 shares of Boeing Airplane,
2,300 Long Star Gas, 2,000 May
Dept. Stores, 3,400 Mead Johnson,
1,700 Ohio Edison, 5,000 Oklahoma

business

for

changes of Nation¬

Securities

upward," it added.
The corporation based its fore¬
cast on a continued high level of

increased

400

ey stone

will not continue

curve

quality

characterized

re-elected.

were

intermediate changes
in the long view, the

Distributors

group," Reed said.
All directors

trends,

—

dy¬

electronics,

The majority of the

growth of the
funds

for

investments continue to be in high

nothing in the picture at

see

this

conditioning,

the fields

and atomic energy were

year.

production pos¬

new

creased to

American

the

March

holdings of stocks

during

said

air

construction

large

year

D. G.'s "V. P."

namic industries such
of

utility

and

owned

1954:

purchase of electronic, paper,

oil,

investments

31,

has

stocks.
■

the

Science

there

vanced 25% since the low

The

Conti¬

United

and

Fund

Reed

rubber,

capital and income

A. Sloan, President of
Ridge Mutual Fund since
operations began on June 28, 1951,
made the following comment on

Fund, United Ac¬

Fund,

Fund,
been

Dow-Jones

George

discussing the investments of

nental

the

4.1% gain for the
Composite Average. ,

start

7.2%

Blue

cumulative

with

ended

has

Fund

fiscal

has been growing

economic

the year, compared with

over

1954.

years,

lowing

capital

months

the

31,

from

50lfcc

the

from

year.

United Income

portfolio

the

$112,611,549 reported at

iictimmi

mu¬

operating informa¬

30,

450

Secu¬

in
size, in volume and in strength,"
the report stated.
"There is no
reason
to believe that, after al¬

run¬

of $2 million

excess

April

economy

month."
Total assets

ref¬

the

"For

formation, trust informatiqn,
sales aids and sample forms
for executing orders.

are

sales

plan

essential

information

erence

stock

funds

averaging "more than
a

retailers

National

for

Series

ended

man¬

to give mutual

tion, regulatory and tax in¬

shareholders

told

loose-leaf

report

and

numerous

tals

fund

substan¬

level

advances, which accelerate ob¬

and

ual designed

sligntly

predicted yesterday in the

was

dealers of

sales

securities

and

rities

fund

Fund

over

sponsored

CFAC

date.
Robert

Bowman

th«

an¬

Bank

the

ultra¬

new,

office

building
stage, Mr.

planning

independentlybank, the Love Field Bank

established

was

1945

Mr.

Blakley as the controlling stock¬
holder, and ownership will remain
essentially unchanged.
*

charter

the

issued

was

MacGregor

May 7

Park

National

Bank of Houston, Houston,

Texas,,
by the Office of the Comptroller

of the

Currency. The bank has a
capital of $300,000 and a surplus
of

$200,000.

President

C. B.

Carter, Jr., is
John, A.
Beck

and

Cashier.
*

The

St.

and

:Jt

Anglo

.•

California

;

National.

Bank of San Francisco, Calif., will

Louis

open an office in the new Stan¬
forerunner, the Third Na¬ ford shopping center to be devel¬
Bank, St. Louis, Missouri oped on Stanford
University
since 1917, was made an Assistant
property west of El Camino Real
Vice-President and territorial of¬
at Palo Alto,
it was announced
ficer
in
1950,
representing the on May 20 by Paul E.
Hoover,.

and

its

tional

Bank

Illinois.

Indiana

and

President

Prior to that time, he
was manager of the Bank's credit
department.
Kentucky.

si:

honored

for

sis

office
the

completing 50

re¬

closely

McAuliffe, telephone
who begari her banking

St.

Bank,

Louis,

which

Mo.

was

National

First

into

McAuliffe

Miss

Stauss

Mr.

apd

presented with en¬
graved
gold
wrist watches by
William A. McDonnell, President
were

lish
a

the

into

bank

and

number

and

years

the

and

the

Books;

General

Lopez,

Joseph Orlando, Special Repre¬
sentative; Roland J. Reisel, Book¬

keeping; Lester W. Schreier,
Eookkeeping;
Milton
O.
Spies,
General Books; Louis E. Straub,

Isa-

The

Atlantic

Jacksonville,
common

capital

increased

stock

its

from

$3,000,000 to $4,000,000 by a stock
dividend effective May 12.

Company,
converted

River

Bank

and Trust

Bradenton,
Fla.,
has
a
national bank

into

of Bratoton.

Fla!

ratificar

The

Stanford,

the

Eureka,
a

Sacramento

area

constructionr at
in

fifth
21sh

the capital city„

Stock at $1 a Share
Greenfield & Co., Inc. are

offer¬
shares of Mutual In¬

ing 298,000
vestors

Corp. of New York com¬
(par 10 cents) at $1
share.
stock

Net
the
to

proceeds from

the

and

sale of

the

stock, will be added

common

company's working capital

used

tion's

expand the

portfolio

corpora¬

estate

real

properties and mortgages.
Mutual

York,

Investors

ducted

con¬

Sidney

Investors

Corpora¬

the

purchase

engaged

resale

place¬

estate

previously

President,

its

Mutual

Lott.

tion

Dec. 23,

to a 13 year old

real

and

business

ment

Corp. of New

organized

was

as successor

and
Manatee

Calif.,

opening of

Streets

mortgage
Bank

through

Bank

Mutual investors

1953,

National

Fla.,

and

per

were:

under

now

Teller; Celeste C. Keeve, Audit¬
ing; Joseph
E. Kolb, Personal
Loan; Hulda R. Kowert, F. H. A.;

the

establishment

office

mon

The
Willmer A. Allen, Note

Eureka

with

pending.

now

25-Year

their

follows

announce¬

office will be Anglo's 38 in North¬
ern
and Central California, after

presented

with

sets

pen

Stanford

Bank will estab¬

Eureka,

the

recent
in

office

merger

service engraved on the base.

Louis

the

dinner, 11 staff members

inducted

tion of which by the shareholders

of the Bank.

At the

1955P

has

office

center

office

■

Both

office

ment that Anglo

the Mechanics-Amer¬

ican National Bank, St. Louis, Mo.,

merged

Anglo

Permission

Announcement' of

Miss

banking with the Third National

the

y',y*,/

already
been granted by the Comptroller
of the Currency.

Genevieve

with

new

second

that

said.

the

shopping

operator

The

bank.

Anglo's
area.

expected

Hoover

establish

years

The 50-year veterans were

Alto

office will open sometime in

cently.

j. 919.

Mr.

of service at the annual dinner of

career

of the

will

Palo

the Bank's 25-Year Club held

sub¬

this year's competition,

bank

asso¬

Mr. Tabbert, who has been with
First

effective May 13.

suc¬

newspaper advertis¬
ing campaign at the 12tn annual
competition dinner of the Jr., Assistant Cashier and
belle Vassier, Personnel.
Chicago
Federated
Advertising

mitted

Field.

that

completely

owned

ciated with First National.

sence.

new

t h

its

St.

NaUo'nll1 Bank

re¬
e

remained

and

the Mercantile Trust Com¬
Louis, Missouri, until

cessor,
pany,

velopment, in Mr. Lindquist's ab¬

t i

department since
In 1938, he joined

awards

Club. Over 800 entries

Mr.

erection

loan

held.

w e n

the

Award

with

Love

Blakley said.

instalment

merged

one-fifth

Company will

stock

CFAC

presented

Baker

Lindquist is Vice-Presi¬
dent in charge of advertising for
the Harris Bank, 'and Leo Burnett
Company, Inc., is the Bank's ad¬
vertising agency. The award was
accepted for the bank by William
N. Flory, Manager of business de¬

Company will

one-t

1954

was

Savings Bank,

institutional

Hartford-

and stockholders of Phoenix State

Trust

over

the

will

shares,

valiie, will in¬

par

assets and liabilities of both banks

pany

new

Directors

have

basis

placed

Bank's

being on the basis of which later became
part of First
The subscription warrants
National, and William C. Stauss,
to shareholders on May 24,
Assistant Cashier, who started in

2 for 5.

crease

permanent

been

the

now

has been a special
representative of First National's

to be offered ratably

are

record at the

establishment

has

the

names

office.

the

tional Bank in St. Louis, Mo. were

the

declared

The next phase
of the Love
Field State Bank's expansion will

dividend to shareholders

as a

lated for the eventual location and

main

Kenneth

Baker and Elmer A. Tabbert Vice-

the

Bank,

other step in the bank's expansion

and

can

President

State

suc¬

program.

both

offices

Blakley, founder and for¬

The Board of Directors of First
National Bank in St. Louis, Mis¬

formu¬

main

plans

absorbed

Mr.

April 27

election

desk

the

past President of the Dal¬

Chapter, American Institute off

ceeded by any other association.

with

A "Plan of Conversion" of Royal

and

until

las

merly

Club

banks

/>*•: He is

voluntary liquidation

were

one

number

The

Bank

Banking.

profits to the sur¬
account. This amount, to¬
gether with that received from

•'»

its capital account

a
Mercantile

the

in Dallas, Texa»>
began his banking ca¬
reer as a bank
messenger 34 years
ago.
During this time he served
in most departments of the bank.

business

formerly

was

plios, Delplios, Kan., with common
capital stock of $25,000 went into

plus

cluding

Bowman

where

The First National Bank of Del-

from undivided

Central and

effective-

Directors.

National

voluntary

Two staff members of First Na¬

of 35c per

Eastern Connecticut. It is proposed
to continue all present
offices, in¬

Texas

according
to
Wm. A*
Chairman of the BoarcL

Vice-President of

other communities in

ceive

i>.

May 8.

authorized the transfer of $300,000

Bank

ex¬

Kan. at the

ca,

approximately 1,000 officers
and
employees and
21
offices,
serving the Hartford area and 12

receive

are

The consolidated institution will

staff, and in personal mail.

depositors

assets

have

East River by tellers, new account

trust

$400 million.

will be distributed
and friends of the

"Log"

resources

into

went

the February shareholders' meet¬
ing, 5,000 shares are being distrib¬

$326
million and loans of $119 million.

flbirthday,
tof

will

ing held in February.
Under the plan approved by the
Directors, of the 25,000 additional
$20 par value shares authorized at

per

of the

which

outstanding
50,000 tb 75,-

from

thorized shares at

May

1954.

meeting

action

from $1,000,000 to $1,500,000.
shareholders
had
approved

necticut

common

$50,000

Bank's

000 shares and

that

total

The

Company,

its

took

commence

institution will
operation as The Con¬

merged

Trust

Ohio

facturers Trust's offices to 111. Of

The

authorities.

Seneca,
capital stock

liquidation and was absorbed by
The Citizens State Bank of Sene¬

with

Directors of

Citizens

basis.

Federal

happenings

:J:

and

contains

in the growth arid progress of the
Bank.

office, and George R. Wells,
Manager.
opening
of
this
office
brings the total number of Manu¬

State

24,

to its pres¬

pictures and facts showing

many

the

The

of record at

The

March

1865

respective meetings to be held, on
June 15, 1954, subject to approval

Assistant

with

Mr.

officer.

of the

ington,

uted

siew

Kan.
of

Bank

of Bank

very

stockholders of each bank at their

merger

National

Dallas,

June

Blakley,

loan department, and Mr. Tabbert,
who had previously been assigned
to territorial duties is now a loan

Manager of the

approval by

Bank,

the

anniversary has
interesting historical
booklet. The Bank was organized
on
Jan. 11, 1814 under the name
issued

JBindner

plan

The

Washington, D. C. in celebra¬

will be submitted for

proposed

Presidents

Winsted.

and

Avenue, corner of Francis Lewis
Boulevard, Hollis, N. Y. John W.
will

Meri-

Middletown, Moosup, Nor¬
wich, Rockville, Stafford Springs

Phoenix

Trust

jointly by John B. Byrne, Chair¬

necticut

New York announced the opening

hon¬

presented by Robert

Company will

members

den,

increase

the Civil War.
%

Hartford-Con¬

banks.

man,

proposed

C., where Lincoln had wor¬
shipped during the critical days of
*

The

directors

Bank

Hartford,

it to the New York Avenue Pres¬

byterian

were

B.(Johnson, Chairman

advisory council of Phoenix

necticut Trust Company, Hartford,

that

members

Hampton,

Nelson,

Club

further

numerous

Mr. Balaban has been President

of both banks

of the

orary members of the Board of
Directors of the merged Bank.
The consolidated Bank will be

President;
Vice-President;
M.
Mossbacker, Secretary;
Howard W. Pollock, Treas¬

The

con¬

urer.

announced

was

will

All present trustees and directors

Francis J. Kenna,
and

Committee,

Lillie

awards

CFAC awards committee.

tinue
in
an
active capacity
as
Honorary Chairman of the Board.

serve

Dime

Charles

The awards dinner, held on
Gus
May
Bowman, Dallas banker
20, was presided over by A. J. and civic
leader, has been elected
Cusick, President of CFAC. The President of Love Field State?

Chair¬

composed of
600 officers and employees of The
a well integrated
institution, serv¬
Dime Savings Bank of
Brooklyn, ing Greater Hartford, Newingtoii,
N. Y., has elected the
following West Hartford, Wethersfield,
new officers for the
coming year: Daniglson, East

Corporation,

Trust

b,y

President

Pictures
elected

New

The

Elin

Barney

years

ager

Bias

was

York effective June

has represented the Bank in vari¬
ous
official capacities in the Far

the

Royal State Bank of New York

of the Executive

and

President;
continue

active management
A.

the

and

Raymond

mortgages

and

properties..
Upon completion of the financ.

the

company

wlil

have out-

standing 748,000 shares of common
stock.

The Commercial and Financial Chronicle..

(2348)

Continued from

The ratio of inventories to sales

first page

Recession Been Reached?
certain

aspects

outlook

ness

recession

the

lessons

certain

and

briefly

discuss

wish

place,

the fourth

and in

reached,

been

over

of the busi¬
'the interme¬

Evidence that the Decline
Business

the movement of

flattening

abundant

now

conclusion

this

that

out

established.
As I said a moment ago, the bot¬
tom may be behind us. Evidence
accepted

that the decline has been flatten¬

ing out is provided by the index
of industrial production, by new
orders of manufacturers, by per¬
sonal incomes before taxes, and
by retail sales.

During the three months from
January to April the drop in the
index
of
industrial
production

adjusted)

(seasonally

than half the drop in

less

was

the preced¬

ing three months—3 points instead
of 7.
Between March and April
the seasonally adjusted index
showed no drop at all—the first
month

since

last

which

July

drop occurred.

The

drop

before

personal

October

Between

ing.

vember
and

between

and

the

December

incomes

diminish¬

been

and No¬
November

in the
personal incomes
before taxes was $1.3 billion; be¬
tween December and January the
annual

drop

rate

million;

$900

was

drop

be¬

and

tween February and March, only
$200 million.
For two

months

manufacturers

orders of

new

(seasonally

ad¬
This
rise follows four months of steady
drop.
The rise of new orders
justed)

have

rising.

been

between

January and February
and between February and March
raised new orders (seasonally ad¬
justed) to the highest level since
last July.
Unfilled orders of
manufacturers are still dropping,

June.

all is the
retail sales, because

interesting
of

behavior

retailing has been one of the weak
spots in the economy during the
recession.
April was the first
since

month

November

last

ad¬

which retail sales (seasonally

justed) showed an increase over
the corresponding month of a year
ago. The significance of the retail
sales

has been
the ground that the

for April

figures

questioned

this

date

the

tail

this

figures

but

year,

not

this

durable

and

year

the

sales

greatly

consumer

last year,
goods

such

affected

the

goods

because
not
date of

are

drop below March, 1953, was
$441
million;
in February, the
drop was $559 million below Feb¬
ruary,
1953; and in January, it
was
$564 million below January,
The

1953.

reduction

April 1 may have led to a
modest postponement of buying
April,

postponement

this

but

hardly sufficient to destroy
the
significance of the above
figures.
The accompanying table shows
the
month-to-month changes in
was

All

indicators.

business

seasonally adjusted.

are

production
(poiiUs)

manufacturers

—$0.5

—

Jan.-Feb.

Feb.-Mar.

—

Mar.-Apr.

—

1.3

0.6,
0.6

1.3

—

0.9

—

—172

1.3

—

+$58
+ 64
—340

0.7

0.3

0.2

1.0

—150

+472

Ill

The

Nature

three
Business

the

Re¬

The nature
cession

has

of the

been

understood.

somewhat
been

re¬

mis¬

quite

generally

regarded as almost
inventory adjustment—
adjustment from a shift in the

solely
an

accumulation

reduction

inventories

inventories.

The in¬

ventory adjustment has been

important aspect of the recession.
The basis for the view that the

depressing influ¬

efforts

(1) The
reduce

business

has

principal

ences.

cession—the Immediate Causes
for the Drop in Demand

business

inventories.

the

peak

quarter of the

boom, the second
quarter of 1953, business was not
selling as much as it was pro¬

ducing. As a result, inventories
going up at the annual rate
of $6.3 billion.
The additions to
were

inventories
third
nual

continued

during

the

quarter of 1953 at the
rate

cut them.
to

ventory

The efforts of business

inventories

the

fact

drop in

that

five-sixths

gross national

the

product be¬

tween the second quarter of 1953
and the first quarter of 1954 can

cut

are

reflected

the drop in the new orders of
manufacturers. These fell from a

peak

of $25.9 billion

adjusted)
billion

(seasonally
1953, to $22.3

May,

August.

Incidentally,

be accounted for

this drop in new orders was con¬

accumulating

fined in the

annual

rate of $6.3

reduction
annual

the

by a shift from
inventories at the

rate

recession

than

a mere

Two

other

have

r e

billion to

inventories

$4.8

has

billion.

been

far

But
more

important

influences

d demand:

cuts in

government

spending and the

tailment

retail

dividuals.

the

inventory adjustment.

u c e

the

Let

cur¬

main

the durable

July

February
1953

September
1953

1953
^-billions

Inventories

$24.8

orders

New

$26.4

$27.0

12.4

Retailers

11.6

69.4

64.2

Durable

February

1953

$10.1

$"*10.7
5.1

4.9

billions

son

with

drop of only $429 mil¬

dustries.

September, when
(seasonally adjusted)

inventories
reached

goods in¬

peak, the ratio of in¬

ventories to sales in manufactur¬

examine

1.68.

and

trade

was

second quarter of

rate

annual

reduced

were

$3.0

the

billion,

and

in the first quarter of

1954 at the
annual rate of $4.8 billion.
The

(2)

reduction

Federal

the

ond

in the pur¬
and services by

goods

Government.

sec¬

making
fairly
large reduction in the purchase
of goods and services by the Fed¬
influence

important

contraction

has

been

Government—from

eral

rate

$60.5 billion in the second quarter

tional

security

atomic

and

Government

19472-5083.

sales of non-durable

Decline

able

The behavior of

esting characteristics that
light on the nature of the
sion.
of

had

re¬

inter¬

shed
reces¬

During the last five months

the

boom

when

retail

sales

not

were

rising, personal incomes
fairly substantial increase.

They rose by an annual rate of
$6.5
billion
between
February,
1953

and

March, 1953—a gain of

2.3%.
The

failure

retail

sales

rise during the last five months of
the boom while personal incomes
were

growing

trouble

was

ahead.

warning of

But the

failure

sales to rise did not extend to

branches

retailing.

non-durable

adjusted)
tween

goods

had

(seasonally

modest

all

Sales
rise

be¬

Febraury and July of last

year.

The failure of retail sales to

grow

during

the

of this

boom

drop

closing months

attributable

was among

have

The

over

the

states

dur¬

annual

the auto¬

motive stores.

exceeded

dustry.

end

in
of

general.

and

seven

tained

July, 1953, when personal
incomes ceased to rise, retail sales
began to drop. As I have pointed
out, they fell from $14,469 million
(seasonally adjusted) in July, 1953
to $13,813 million in
March, 1954.

One

the

staff work, lead enterprises
develop long-range programs
they tend to carry out re¬
gardless of the immediate state of
business.' A second

the

is that

reason

substantial

liquid resources
enterprises accumu¬

which many

March

lated

Second World
willingness of
managements to go ahead with
investment programs
regardless

years:

718.000,000

during

the

increase

the

280,000,000

677.000,000

—

859.000.000

expansion

119,000.000

business during recent years
has built up a large backlog of
cost-saving and product-improv¬
ing ideas or inventions which
managements would like to put

of the immediate state of business.

—1,745,000,000

March

third

and

April.

adjusted

basis,

into
for

rapid
research

effect.

Outlays

larger than its entire outlays

the decade

course,

have

had

not

the last
to

the

thirties.

the huge outlays in
time

effects,

the large research

Influences

industry

3 0

sustain

years

the

but

1953

produce
much

demand

for

plant

and equipment.

rate

$6.3

(3) The Well-Sustained Demand

bil¬

reducing them

for

goods

and

Housing. The number of

new

housing starts (seasonally adjust¬
ed)
has been rising with little
interruption since last August. In
April private housing starts were
at 1 he seasonally adjusted annual
rate
of
1,159,000 in comparison

serv¬

fairly substantial reduction
be expected
to bring about a large and cumu¬
lative contraction in production,
employment,
and+incomes.
No
such large and cumulative reac¬
a

with

962.000

last

August, and in
expenditures
on
(seasonally
adjusted) were $1,081 million in
comparison with $979 million last
July and $956 million last August.

in retail sales, might

March,

1954,

non-farm

residences

occurred!;'The absence of
The
well-sustained
demand
contraction is indi¬
by the faff that the total housing may well represent

tion has

cumulative

drop in

some

production :is little larger

than the

expenditures of
is today helping

accumulating in¬

the

technological research in 1953

were

Sustaining

that

industrial

commercial

from

reason

ices, and still further aggravated

cated

Government for

extent

cumulated

amount+redhired by the

demand which

last

for

to
ac¬

when mort¬
tight.
In the

year

from

expanding inventories

gage

cutting

them.jp-have pointed

main, however, it probably repre¬

shift
to

that

out

about

sents

DVe-sixths of the

money

was

combination of influences

drop in production is' attributable
to the change fr<|m increasing in¬

which have been helping

ventories to

ing

principal
from

levels for
about four years. One of the most
important of these influences is
the possibility of buying a house
lor monthly payments no higher
than monthly rentals.
It should
be kept in mind that the current

reducing them. Five
sustaining, influences

feeding

on?

ltsjslf:

(1)

in¬

spendfhg by states and
localities; (2) theytell-sustained
creases

■

1 Part
of the nonrcOi&uinption spend¬
ing that is included ^it-+ftail sales is the
purchase
of
tools.kinds' equipment
by
farmers and by many.-gthall non-agricul¬
tural firms, most of-them unincorporated

and

owner-operated. Part of the gasoline
sold by
filling stations is for business
consumption, not personal consumption.

to keep
build¬

the demand for residential

which have preV£nte<l contraction

art

which

After

equipment.

improvements in

billion, aggravated
by a cut of $5.5 billion a year in
the expenditures of the Federal

are

well-sus¬

plant and
reason
is

upon

in¬

the rate of $4.8

There

management, and particularly the
growing reliance of managements

The Nature of the Business Reces¬

the

for

reasons

expenditures

and

borrowing's has dropped

year

quarter

outlays reached

that

substantially, but is still large.

third

peak of $28.92 billion.

several

the incomplete April figures indi¬
cate that the excess of repayments

lion

these

or
when

—

seasonally

ventories

the

1953

—

between

shift

non-

annual rate of $28.48

billion,

Incomplete figures for April in¬
dicate
no
change in
consumer

at the

were

and

+$ 123,000,000
—

adjusted) — almost as large as
expenditures in the peak
quarter of the boom when they

War
___

quarter

these

Be¬

consumer

first

expenditures

agricultral industries on plant and
equipment were at the annual
rate of $28.04 billion (seasonally

new

December

during the last

sion—Some

less

billion

$3.6

the

1954

over $3 billion a year.
The
following table shows the change
in
outstanding consumer credit

new

were

(2) The Well-Sustained Demand
Plant and Equipment by In¬

debtedness is being reduced at the

over

for
the

outlays

services

for

rate of

likely to con¬
example, in

their

than in the first quarter of 1954.

of repay¬

excess

cate that short-term

been

have

For

so.

rate

that the

expenditures for

are

1952

and

goods

until the

year

discuss

say,

localities

and

tinue

March, outstanding
consumer
credit
dropped
from
$28,896 million to $27,151 million,
or
$1,745 million.
It is difficult
to judge what part of this drop
has been purely seasonal, but the
drop has been far greater than the
decrease
in
any
previous year.
Probably at least $850 million is
non-seasonal, which would indi¬

credit

it to

time and

some

between

time

take

not

Suffice

increasing their

goods

the

end

shall

the

con¬

growing expendi¬
of states and localities, and
the

them.

sea¬

influences

Numerous

tures

new

been

1951-52—____

several

$27.0

rate

annual

(seasonally

tribute

borrowings has,
deflationary in¬
fluence, limiting the demand for

increased.

adjusted

exhibits

trade

the first

1954 states and local¬
buying goods arid serv¬

the

boom.

goods stores.

limited

by the expansion of

credit

of course,

(3) The Decline in Retail Sales.
third
principal
influence

sales

retail

was

1953

adjusted) in
comparison with a rate of $24.6
billion in the second quarter of
1953, the peak
quarter of the

credit. Since the begin¬
ning of the year, however, new
borrowings have dropped, with
the result that repayments of con¬

The

tail

goods

end

billion

1953

6.5% in the

were

ices

were

was

serv¬

Spending

Localities.

and

ities

sonally adjusted sales in compari¬
son
with a drop of only 3.5% in

en-1

making for contraction has been
the drop in retail trade.
Retail

about 4.5%,

States

first

March, 1954

ergy) dropped by $6.5 billion in
this period, but the purchase of
other goods and services by the
Federal

boom),

the

Increases

quarter of

ail

(the peak
$229.8 billion
quarter of 1954—a
period in which retail sales drop¬
ped 3.9%. The drop in retail sales
was concentrated among the dur¬
able goods stores where the de¬
cline
between
last
July
and
of the

consumer

drop of nearly 3.8% in the sales
(seasonally adjusted) of the dur¬
able goods stores. More than half

lion in the non-durable

nual

(5)

(1)

account for
personal

and

comes.

whole, which were at the an¬
rate of $230.4 billion in the

tween

During the last quarter of 1953
inventories

un¬

non-con¬

consumption expenditures.1 Per¬
sonal
consumption expenditures

$10.9

5.3

Inventories

two-thirds

about

ments

September

1953

Sales

spending)

sumption

borrowings.

Goods

July

small amount of

sumer

10.1

72.8

Unfilled orders

industries, where new or¬
dropped $2.6 billion between
April and September in compari¬

clude

virtually

Retail sales (which in¬

changed.

for

influences
limiting the drop in personal in¬

consumer

Goods

goods

ing, wholesaling,

Durable

ders

buying by in¬
these

Manufacturers

an¬

$3.1 billion, despite
apparent efforts of business to

recession has been

mainly an in¬
adjustment is found in

the fact that inven¬
rising while new or¬
falling.

wore

boom between February, 1953 and
July, 1953. After July, 1953 retail
sales
began to drop. They de¬
clined from $14,469 million (sea¬
sonally adjusted) in July to $13,813
million in March.
1954, or

+ 350

—

tories

ders and sales were

peak, on a season¬
basis, in February,
1953, when they were $14.5 bil¬
lion.
There
was
virtually
no
change in the level of retail sales
during the last five months of the

(millions)

(billions)

+$0.9

Most important,

remained

have

of course, was

ally

Sales

2.2 in September.

sales reached

(billions)

quarter of 1954. National security
expenditures (including interna¬

before taxes

ratio of inventories

from 1.9 in February to

of 1953 to $55.5 billion in the first

September;

of retailers of durable

tax

Retail

Dec.-Jan.

rose

from 2.0

rose

goods

the

few consumer durable

New orders of

Nov.-Dec.

the

sales

the

Personal income

—

goods

for

of industrial

case

manufacturers

the ratio of inven¬
orders

new

in the

chases

(seasonally adjusted) in
April, 1954, were only $194 mil¬
lion below April, 1953. In March,

among

goods

in February to 2.67 in

goods

case

tories to

movement

durable

durable goods

Sales of durable consumer

Easter.

figures

Oct.-Nov.

the

inventories

year

it
entirely responsible. This
indicated
by comparing
the
last

with

compared

Drop in index

and

retailers

partly responsible for
comparisons of re¬

sales

durable

of
the
(the
two
spots
where the inventory
problem was most serious) indi¬
cates
plainly why businessmen
were eager to cut inventories. All
figures are seasonally adjusted
except those for unfilled orders.
goods

sales

favorable

the

April

inventories

and

orders,

orders, un¬

new

manufacturers

Easter

Undoubtedly

difference

Easter

later

than last.

year

the

that

fact

weeks

two

came

the

for

correct

February

Sept.-Oct.

the

seasonally adjusted figures do not

several

and

smallest

the

orders

last

Most

but the fall of $1.2

billion between
March was the

increas¬

are

decreasing them. The
of firms reporting
de¬

are

sales

has

taxes

two
The May
any

their1 orders and production

ing

since

Flattening Out

companies

creases

Evidence that the recession has

must

that

special

total expenditures on consumption

was

cared to have it.

men

of the National Associa¬
Purchasing Agents reports

survey
tion of

number

between

drop

months since July, 1953.

than

diate-term.

been

smallest

demand

ices;

higher than business¬
A glance at

for plant and equipment
by industry; (3) the well-sustain¬
ed demand for housing;
(4) the

in view of the additional fact that

filled

has

recession

the

well-sustained

1951, but the ratio in Sep¬

September

tember

bottom

demand

interesting in view of the
fact that personal incomes after
taxes have held up quite well and
larly

1.61 in

Has the Bottom of the
the

The drop in retail sales is particu¬

not particularly
high, for the ratio had been 1.64
in 1952 as a monthly average and
in

.Thursday, May 27, 1954

and

around

recent

view

household

rates

construction

high

present

are

(1)

residential

particularly
of the rate of

not

formation

and.

(2)

old and poor¬
ly-equipped houses in the counthe large number of

Volume 179

Number 5328

The Commercial and Financial Chronicle

...

(2349)

The moderate rate of hous¬
construction of recent years
is attributable to high
building
costs. The purchasing power of a
dollar spent on construction has

try.

ing

fallen

the

drastically

last

For example, a dollar spent
construction today buys only

years.
on

much

would

cents

have

purchased in 1929, whereas

a dol¬
kind of consum¬
ers' goods included in the con¬
sumer goods price index will buy
abiout as much as 64 cents would
have purchased in 1929.

most

entirely confined to manufacturing and coal mining.
In
April, 1954 employment outside

in the gross national product unless the smaller, reduction in inventories is offset by smaller sales

manufacturing and coal mining
about 800,000 larger than in
April, 1953.
About 70% of the
drop in factory employment be-

of goods. There may be a further
drop in the volume of exports,
but this drop is not likely to be

which

tween

almost as much on plant and
equipment in the second quarter

was

July, 1953 and April, 1954
the durable-goods indus-

was

tries.

lar spent on the

(4) The Well-Sustained Demand

for

Services.

services

1054

were

the

first

than

quarter

$3.7 billion

rate

annual

Expenditures
more

the

second

quaiTtehof 1953—the peak quarter
of

the

Services

poom.

include

wide

variety of things — rent,
transportation fares, professional
services,
admissions
to
amuse¬
The

ments,
more

for

tendency

spend

PnHnm

fho

the

annual

rate

This figure

but
us

that the

Influences Limiting

March, 1954.
fore

taxes

$4.8

personal incomes be¬

billion
The

running

were

about

below

year

July,

drop would have been

billion,

actual

inventories

reduc-

during

the
quarter of 1954 turns out to

first
be

$4.8

is a revised estimate,
be revised again. Let

may

assume

tion

close to the revised

quite

es-

timate of $4.8 billion a year.
total

The

output of the economy will
unless

rise

the

difference

*(5) Special

During the first quarter of 1954
drop in inventories was at

quarters

the Drop in Personal Incomes.

;

the

reduction

by the recession.

R^ccinn

I n-eawica.

the

has been strong
and has apparent¬

two

inventories

the

between

offset

changes in the purchase of goods
b.y government, business, foreignGrs?

01*
at

the

Let

consumers.

first

reductions
the

us
look
for further

prospects

inventories

second

quarter

during

1954.

"By the end of March total
in

ventories

trade

and

in-

manufac-

iqoderately greater had there not

turing had been reduced $2.0 bil-

been

lion

rise of $2.2

social

billion

year

security benefits, veter¬

the

below

the

September,

peak

1953,

level

the

outlays be-

$500 million.

The

Federal government plans to continue to reduce1 both its total

penditures

ex-

outlays

its

and

for

service, and thus far
has apparently been able to carry
out its intentions.
In April, 1954,
goods

and

total

cash

Federal

expenditures

government

the

$5,303

were

million, or $1,141 million below
April, 1953> The drop in the purchase of goods and services by
the Federal government will be
offset to a limited extent by the
rjse

these

purchases by the
governments. The
total drop between the first and
second quarters in the annual rate
0f purchases of goods and services
by foreigners and by our government
(Federal, state, and local)
state

and

local

pension

payments

ployment
has

and

compensation

unem¬

benefits

been

particularly useful in
lwniting the tendency for unem¬
ployment to produce drops in per¬
incomes.

sonal

the

considerable

too has been the

importance
in

Federal

income

cut

tax

last

January. This cut has been part¬
ly offset by the rise in social se¬
curity contributions by workers,
but

the

net

gain

in the

purchas¬

sales have

dropped

rise

social

manufacturers,

wholesalers,

and

retailers

whole

March,

table

$1.71.

only about $2.4 billion
low

July, 1953

March, 1954:
End of

End of

Mar. '54

1.86

1.90

Durable.

2.12

2.27

Non-durable__

1.59

1.57

1.29

2.05

2.02

.92

.95

Manufacturing-

Wholesaling---

be¬

Durable..

Non-durable.-

than 1%.

1.64

Concentration of the Drop In
Demand and In Employment

sales

The

preciably

net

tween

effect

the

tending

the

depress

be¬

influences

powerful

clash

demand

and

of the opposing influences tending
to sustain
demand has been to

prevent

much

the

economy

The

that

fact
ratio

does

not

has

inventories

matter
not

must

the

absolute

has

been

lim¬

ited

part of the economy. In other
words, the economy cannot be
truly said
to
have
suffered
a

general
the
to

contraction.

recession

the

has

durable

the

been

goods

main,

confined

industries

tive to sales during periods when

to confine

goion.

inventories canexpected to decline rela-

ffftm experiencing recession and
to

September

fact,

sales

the recession

1.33

last

total

con-

such

expected?

answer

that question

"Yes."

steadily'

is,
the

rising

services,

Thanks

total

expenditures for
consumption outjays bave scarcely dropped since
the peak of the boom
in spite
the
poor
showing of retail
trade
The April figures for retail sales, which show
a
slight
gain over April,
1953, do not
prove that retail trade has ceased
to drop, but they strongly suggest
the

decline

perhaps

least

retail

sales

diminished
may
have

greatly
that it

textiles

contraction

The

and

are

dropping.
size

The fact that

cut

traction

the

con¬

durable-goods in¬

inventories

to sales.

the

continued

struction

and

rise

strength

ditures
the

would

probable

housing;

(2)

this

than

drop

March,
billion
the

the

(seasonally

new

$1.3

been

has

1954

industries.

new

1953

drop

and
these

$1.5
adjusted) in

orders of manufacturers,

billion

experienced

was

the

makers

the

$2.3

durable

goods; of
in sales of
manufacturers, $2.0 billion was
experienced by makers of durable
goods; and of the $657 million

billion

drop

drop in the sales of retailers, al¬
half

most

million) was in
the sales of durable-goods stores
and

half

($332

the

sales

durable goods stores, but

non¬

the

per¬

centage drop in the sales of dur¬
stores was 6.5% gnd
in the sales of non-durable goods
3.5%.

The

drop in employment is al-

farm

fall

the

up
a

research in

to now, it has devellarge scale in only a

one

enterprise forces

research in other

concerns.

* The development of industrial
the index of non-farm products research means that at all times
dropped from 153.3 in September many-enterprises will have a
1948 to about 145.0 a year later! backlog of unexecuted investment
In the present recession, there has opportunities. It will usually be
been little
movement
of
farm uneconomic for managements to
prices as< a whole, but the index Postpone cost-saving expenditures
products—though

in May, 1954 was slightly higher
than in Ma.y, 1953.
The failure of prices to drop
during the current recession

simply because business

naturally prompts the question
whether the old-fashioned reces-

enterPnses to delay bringing
°r. ?1€w or lmproved products
^lch research has created. In
°
words, the growth of research makes investment expendl?ures less sensitive to the cycliups a
downs of business.

sion

with

its

drastic

declines

prices is giving way to a new type
of recession in which there is
little movement of prices. »It is
of

course, too early to say.
The
drop in prices in the recent reces-

sion of 1949

much

was

less

than

the

moment happens to be contractmg instead of rising. Further™ore'
wiU often be uneconomic
.

The rise of business staffs and
staff planning has the same
effect. I have called attention on

recession

considerable

cidental

farm

attributable
to

measure

circumstance

products

the

that

dropped

in
ac-

from

occasions to the

lutionary change in business

revo-

man-

tions in American industry. The

unique characteristic of the work
13%.staff executives is investigation and planning. When policies

other words, the
drop in farm
prices came before the recession.

are

are bound to rest upon

based

upon

staff

they
broader

work,
a

of farm products may accompany foundation of fact and investigathe recession, as it did in 1949. tion than the policies made solely
Nevertheless, the fact that the by line executives. Among other
current recession has been accom- things, this means tn^L^policies
panied by no drop in prices re- based upon staff work tend to be
inforces the view that the long- based upon long-run considerarun movement of the price level tions as well as short-run.
But
is upward.
'
policies based upon long-run conThis view receives additional siderations tend to be executed
reinforcement from the fact that more or less independently of
the hourly earnings of workers in business cycles. A carefully
virtually all branches of industry worked out long-run construction
have continued
to
rise
slowly °r expansion program is not likely
during the year in the face of to be curtailed very much simply
rising unemployment. Wages will because business turns dovyn.
continue to rise because there are
The next recession which this
important negotiations ahead. The

country experiences may not

see

pur-

the

new

year.

the

(3)
orders

Some

Lessons

And

Some

itself in April.
It is
possible, of course, that demand
may
rise so quickly and unexca-

pectedly that inventories

cut

are

much

agers

expect them to be cut. This

drastically than

sort of thing often

early

happens in the

revival.

stages

man-

But

large and unexpected iump in dc-

is not

mand

ternational

likely unless
relations

den turn for the
guess

take

worse

our
a

in-

sud-

My rough

is that the reduction in in-

ventories

the

second

thanrin the first cmnrter

'1'
This
a

\v,

qhange alone would lead to

rise-ot

aoout

"""^Reference

billion

seasonally

figures for inventories.

year

adjusted

striking aspect of the
recession has been the

steadiness

of expenditures
for
non-agricultural plant and equipment.
The steadiness of these
outlays prompts another question:
"Can we expect capital expenditures to show a similar steadiin future recessions?"

the

Aspects

Business Outlook

Recession

the

Over

expenditures

equipment

present

(or recent)

reces-

on
plant and
been one of the

have

characteristics of the

cycle.

Dare

^js

historic

same
was

business

consumer

characteristic

—

the

During the

period in 1951, the growth
billion. The expansion

$1.2

hope that from
cycles will lose

one

business

now

The

In the

recession and the preceding boom
has been the role played by fluctuations in consumer credit. Congress made a blunder in refusing
to extend the authority of the
Federal Reserve System over consumer credit in May, 1952. As a
result, consumer credit expanded
by $4.1 billion between May, 1952

past violent cyclical fluctuations and December, 1952.

The Intermediate Term

credit

1952

came

time when the Federal Gov-

ernment

was

rapidly

increasing

its expenditures (the cash outlays

interesting aspects that sharp up-and-down movement of of the Federal Government in
2L nSn "fTf
S capital expenditures? One re- December, 1952, were $1.6 billion
g
of
cession is obviously an inadequate greater than in May in contrast
economy and on the problems ot basis for generalization. Never- to a rise of only $467 million in
^^"g tbe economy stable. One theless, I believe that the im- the same period in 1951) and
.e sti'lkmg aspects of the re- portant changes in the determi- when gross private domestic incession has been the steadiness of nants of capital expenditures vestment was also increasing rapPnces- Recessions are usually ac- which have helped to keep plant idly. Fortunately, the combinaS10n

jompamed by drops in prices. In
the recession of 1949 for example,

^®nrm.thiv

quarter

will be about $2 billion a year less

A second

current

ness

manifested

able-goods

was

the

was

because,
oped on

offset

the

VII

manufacturers; and (4) the im¬
provement in retail sales which

sales and

prices

in the second quarter of

con¬

most of the drop in

July,

few industries. Furthermore, it
is inherently competitive, so that

price of labor is determined fun- business expenditures on plant
diminishes and
damentally by conditions of sup- and equipment holding quite as
services continue to grow, per- ply and demand, but the rise of steadily as they have held in this
sonal consumption outlays in the strong unions increases the effect recession. Nevertheless, the tensecond quarter will be somewhat of the supply side of the market dency for research work and staff
higher than in the first quarter, on wages. A high proportion of work to make plant and equipA drop of about $2 billion in the the
workers in manufacturing, ment expenditures less sensitive
annual rate at which inventories mining, construction, transporta- to the business cycle is a major
are being reduced and a rise of,
tion, and public utilities is or- change in the direction of greater
say, $1.5 billion in the annual rate ganized. As the agreements under economic stability,
of personal consumption expen- which these men work expire, the
At the same time that changes

economy

recent

between

to around 92 to 93 in May, 1954.
In 1949, the principal cause for
the
decrease
in
the
wholesale

in retail sales
if expenditures on

Four recent developments indi-

dustries is shown by the fact that
orders

country. The expansion of industrial research is bound to go on

the

is aoDarentlv ceasing to dron*

the

catch,

in
May, 1954 was
slightly above May, 1953.
The
index of 22 sensitive commodities
has risen from 88 in May, 1953

nien expect the agreements to be jn the planning of investment exreplaced with other agreements penditures are adding to the stasignificant chases of goods and services by providing higher wages or better bility of the economy, the growth
result.
When inventories become
foreigners and the government conditions.
Hence, the high or- 0f consumer credit has been infairly small, managements will and the purchase of plant and ganization of labor tends to make troducing new causes of instacease
to cut them further, even
equipment by business.
In that wages rise right through a re- bility.
Indeed, one of the most
though they are not small relative event, the total output of the cession such as the current one.
interesting aspects of the present

apparel

of business.

concentration

much

If the drop

this year will turn out to be
have suffered substantial contrac¬ cate that enterprises are not like- slightly larger than total output
tion too.
But construction and ly to attempt to reduce inven- in the first quarter. The behavior
most of the services
have con¬
tories/in the second quarter as °t retail trade in May and June
tinued
to
expand.
It has been rapidly as in the first quarter. wil1 largely determine whether
unusual for construction to ex¬ These four developments are (1)
or not the bottom of the recespand in the face of a general the fact that industrial production sion occurred in the first quarter
—though

failed

twice

Next time the drop in the prices

expenditures.
be

think,

interest.

that the reduction

mean

The
j

rise

ceased. The May report on retail
sales will be awaited with unusual

inventorychanged ap-

not

rise to

has

the

since

sumption
a

that

2.28

1.32

Non-durable-.

The Nature of the Recession—the

small

and

1.65

2.25

Retailing—____
Durable

different

Sep. 'i»:{

were

year

following

for

end

at the end of

drop of less

—

The

least

held

industry the ratio of
monthly sales at
September, 1953, and

inventories
the

security

after taxes in March, 1954

compares

branches

Hence, personal incomes

year.

$1.68 of inventories for each $1.00
of monthly sales, and at the end

contributions is about $2.3 billion
a

in-

ber,

power of consumers from the
cut in the personal income tax
the

fast

At the end of Septem-

ventories.

ing

minus

because

index

than

the beginning of 1952 until June,
1953 the wholesale price level of

billion less than in the first quar-

changed

the

index

industrial research in the eight
years beginning with 1946 as in
all the previous history of the
on

agement represented by the rise
staff positions.
Before
1900
there were very few staff posi-

ter, the total output of the economy will fall unless there is
at

not

The

spent

rent

The

has

whole-

likely to exceed $2 billion a year,
Hence, if the reduction of inventories goes on at a rate only $2

ever,

numerous

ratio of inventories to sales, how-

rise

index

though there has
probably been some drop in prices

in earlier recessions, such as 1937and jn the expenditures on plant 38, or 1921. The failure of the inand
equipment by business
is /dex of prices to drop in the cur-

transfer

The

the
—

tween the tw0 0uarters is esti" Price index

ans' payments, and other forms of

payments.

2.4%.2

spend

drop

these

plans

first—the

rate

mated at about

years

ly' keen too strong to be affected

1953.

iho

Business

annual

services

some

large.

drop in
prices

sale

and equipment outlays steady in

this

recession

will

permanently

tion of these powerful inflationinfluences did not .produce a

ary

in
thS' tend.*0 make capital outlays less rise in the price level. Neverthesensitive to the ups and downs iess, the rise in consumer credit
n?ar?v ?
lne,Sif; Particularly impor- came at a time when it could

lut In nil

wholesale prices decreased nearly tant are the growth of industrial
10% between August, 1948, the research and the growth of the
high point, and August, 1949, and
the drop continued slowly after

Au£ust> 1949-

business
called

have

already

the

enormous

industrial

research,

attention

In the present re- increase

cession, however, there has been

staff.

matter of

fact, industry has

scarcely have been

worse

planned.

During the first six months or
of tbe current recession, consumer credit continued to expand

Continued

page

•

The Commercial and Financial Chronicle,..
Thursday, May 27, 1954

(2350)

Continued from page

sion—namely, that the rate of expansion is likely to drop substan-

tially

that the demand for
goods is not likely to keep pace

Has the Bottom of the

and

from

Recession Been Reached?
helping

thus

the

first

the

Since

business.

sustain

however, the repayments of

year,

short-term

have

debts

consumer

running considerably above
new borrowings.
Hence, the con¬
traction of consumer credit in the
been

early months of 1954, though
healthy in itself, has been an im¬

portant

depressing

influence

volume

retail

trade.

the

Unfor¬

the contraction of con¬
has come at a time

tunately,
sumer

credit

when

the

has

Government

Federal

sharply cutting its out¬

been

and services,
it
in fortunate, as I have pointed out,
that other sustaining or expansive
goods

for

lays

influences,
on

business

well-sustained

lays

and

cuts

tax

such as

the

out¬

plant and equipment, have
the effects of contracting

limited

credit and of falling ex¬

consumer

penditures

the

Federal

Gov¬

The country has been
in avoiding an
«

the

credit

been

ing serious

1952,

fortunate

avoid¬

from the

consequences

contraction

and

act

credit

consumer

than

credit

sumer

that

used

now

con¬

ex¬

tensively that it adds significantly
the
problem of keeping the
economy stable.
The benefits of
to

credit

consumer

—it increases

considerable

are

the

capacity of the

to expand, and it has
important sociological effects in
economy

enabling people of moderate in¬
to

comes

acquire

the

kind

of the

people

tolerable.

find

down

this

that

history

failed

ministration

should

obscure

not

arrangements
the

tendency
aggravate

the

that

fact

needed to limit

are

however,

credit,

recession

this

been, the
Administration in power, whether
Republican or Democratic, will
scope

Perhaps
question

the

most

raised

recession is:

promptly and more vig¬
orously than the present Admin¬
more

has

istration
I

have

words

interesting
the current

"How wisely and ef¬

tempted

the government at¬
limit the recession?"

the

four

the

not

five

substantial

make

could

believe

will

cuts

that

tions

early

/nine months
have

been

last

during

seems

good,

and

year

the
me

have

special comment

Congress made

significant

last

make

it.

con¬

April first.

dollars

added

about

instead

should

billion

have
year

billion to

consumer

power

virtually

the

manufac¬

all

turers' and
is

—

$2.5

of $1

purchasing
v/iping out
It

year

But Congress did not

far. enough

retailers'

the

excises.

executive

branch

ced

the

This

con¬

necessity

But if large

spending

are pos¬

not primarily

mean,

the

but

total

shift

the

demand

from

peaceful

for

the

individuals.

other way of

goods,

reason,

That

saying that

and

part

is
a

an¬

world1 will

secure

con¬

The

principal reason why it is
impossible for me to be anything
optimistic

about

business

the

outlook

inter¬
is

the

extraordinarily rapid growth of
technological
research.
I
have
mentioned
times.

this

g r o w t

h several

Research increases the de¬

mand lor goods as well as the

ca¬

portunities and partly by increas¬
ing the variety of goods offered

thus

consumers,

proportion

for

raising

personal

consumption.

keeping the cash budget in bal¬
than in limiting the
drop in

erly

its

ance

production and employment. Cer¬
tainly it is not easy to find evi¬

huge

dence
in

that

rise

unemployment
much

concern

istration
deficit

the

two

has
in

the

million
aroused

Admin¬

possibility

cash

budget.

The

Treasury overlooks the fact that
^unemployment represents

kind

of deficit—a failure of the demand

for

labor

This kind
as

much

cit in
one

equal
deficit

the

is entitled

consideration

the cash budget.

must

supply.

defi¬

Indeed, if

choose, I would accept

deficit of

two

three

billion

called

living

The

age

development.
made by

eight

years

may prop¬

research

expenditures

research

last

are

Most

age.

the

industrial

industry in the

have not yet had

ex¬

birth

low

rate

1930's;
(3)
expenditures

outlays

demand

before

trends

greatly

longer-range

catch

expanded

with

postwar
in many

ductive

capacities
lines
business; and (4) many ad¬
justments in agricultural produc¬
tion

achieve

between
still

better

balance

consumption

output and

have to

faced.

but

advertised

for

several

well
years.

much

return

"normal"

petitive
tended

conditions

not

are

been

have

They reflect the

predicted

after

com¬

ex¬

demand caused

by heavy war and
defense spending. It is far better
for

the

continuing

economic

health of the nation to make such

adjustments

orderly fashion—

such

as at
present—than to adopt
policies which only serve to post¬
pone
and
accumulate
economic

trouble.

stands

and

nature

tions

than

view the Ameri¬

public

can

general

these

economic

much

observers

under¬

essential

the

accepts

correc¬

greater

politically

many

would

extent

motivated

lead

be¬

lieve.

not

stress that

predicting
a

economic

test—for

two

trouble.

years

What

continuing
a

period

of
as

caused

"interim

The

period"

late last year. As
well

continuing

an¬

find

the
still

bridging

onomic

e c

faces

now

challenge

means

started

result, business

government

sound

gap

ahead.

penditures
It

easy

will

make

con¬
ex¬

tremendous.
a

persuasive

for expecting rapid economic

case

expansion

ately ahead.
ever,

for

enormous

the

years

immedi¬

I should hate, how¬

have

the

responsibility

arguing the opposite conclu¬

term

business

accelerated

all

know, many organi¬
zations already are following care¬
fully laid plans to introduce new
we

products,

reduce

in¬

and

costs

tensify merchandising methods in
order
to
meet
successfully the
challenge of the "interim period."
But there is definitely a rough
ahead

for

companies

lagging in

are

preference

whose

and

whose

consumer

costs

are

not

being held in check by im¬
proved methods and equipment.
How much time

planning

business

are

the

you

future

giving

your

i.e., products, equip¬
finances, distribution, etc.
—beyond the next few weeks or

payments

months? In my opinion, few busi¬
can

count

sales

record

and

high profits more or less
automatically over the next few
Success

years.

period will
ful

the

"interim"

"earned"

by
planning

management

extent

this

than

perspective

longer-range

care¬

many

economic

toward
develop¬

ments, the immediate outlook may
take

some

new

meaning. Over

the past 6-9 months national busi¬
ness

under

quite clearly has shown signs
very

succession
sellers'

industry

the

Mills

tax

Plan,
ex¬

penditures for defense, the un¬
certainty surrounding government
tax
and
other
legislative
pro¬
grams, as well as the adverse im¬
pact on consumer buying because
of

rise

some

Again, let

unemployment.

keep

our

terials
for

less

tion

across

income.

The

the

na¬

have

been
virtually
un¬
by the over-all adjust¬
ment
in
business,
at
least
as
measured
by
after-tax
income.
The adverse impact on income has

touched

been

heaviest

certain

farm

communities and among industrial
workers with
limited tenure or
workers

previously

industries

The

employed

plants

which

have

be competitive.

Challenge

principal task

find

buying. The evidence

quite

and

now

to stimulate

ways

con¬

seems

that

strong

buying can be
well
maintained, for consumers
generally
have
the
purchasing

They must now be given
greater inducements to buy.
power.

The

keynote

period
to

thus

the

becomes

business

the

interim

challenge

to find
capitalizing fully upon
buying potential

managements

tremendous

which exists

currently and which
to
exist
despite
economic cross-currents

will

continue

many

modest
of

decline.

adjustments

buyers' markets
which

began

The

from
across

1951

finally reached the end of the line

raw

ma¬

stage
wav,e
of

the

short-lived

forecasting

terest

principal in¬
predicting

our

naturally

what will happen,

but at best we
only indicate the "most prob¬

can

able" developments ahead.
Hence,
if we are realistic, we should also
be

concerned

about

what

coulcl

happen. In this connection, I wanl
to point out a chain of possible
events
which
could
materially
alter

the outlook for the economy

and

your

business.

Visualize

levelling or moderate upturn in
general .business activity in the
(for the

plus

the

given earlier)

reasons

renewal
on

the

Indo-China

somewhat greater scale
end of the monsoon rains.
a

A further upsurge in confidence
supported by growing opinion that
the business cycle "problem" has

"solved"

been

touch

off

The

could

burst

devoid of

swift

speculation

economic base.

would

assure you,

contraction

than

severe

conceivably

sound

outcome, I

much

—

the

moderate

adjustment which the nation has
experienced
Here is

recent

months.

situation which will bear

watching in business and

govern¬

call

different short-term poli¬

than

cies

must be to

come

setting

now

generally

con¬

templated.

managements
time to

some

prices

ment circles and which could

confronting

business

new

for very

Business

Management
The

confidence,

inflation.

fall

perspec¬

than

personal
majority of families

there

weeks

indications

business

may

and

recent
many

was noticeably depressed at
beginning of the year. There
some signs of specu¬
lation—a dangerous force—which
fortunately has been largely ab¬
sent during recent years of high
economic activity. Developments
in the commodity
markets, in se¬
curity markets, and recent firming

small—about 3% in gross national

product,

are now even

war

after-tax

expansion

the

tive. The over-all decline has been

In summary, the business out¬
look this year can only have real

meaning to the extent that atten¬
tion

focused

longer-term

underlying
trends
rather
than
primarily upon very current de¬
velopments.
—short-

tinues

The

well

general

outlook

long-run—con¬

encouraging but, I
add, challenging as well.
personally
convinced
thai
American
business represented
must

I'm

here

the

today

forward to

meet the test of
period" and move
new period of funda¬

can

"interim
a

mental economic
now

looms

expansion which

the. not too distant

horizon.

ahead.

Looking to the remainder of the

With Jamieson Co.

relatively little further de¬
is in prospect. There is a
strong probability of & moderate
upturn in general economic ac¬

ert C. Parks has become affiliated

tivity before the end of the

with Jamieson and Company,

year,

(Special to The Financial CunoNicLE)

•

cline

Economic

conditions in

the

year.
coun¬

try obviously would be improved

SAN FRANCISCO,

Building.

months

neutral.

became

indeed

worst

This

the

general

dation
metal
to

stocks

metals

and

Staff

•

LOS
S.

632

Calif.—Girard

ANGELES,
with

South

has

Jr.

Brewer,

nected

become
Witter

Dean

con¬

Co.,

Spring Street.

products promises to come

end

the

third quarter. The

close of the
delayed impact

of Federal tax cuts should also be

evident

fall.

the

will

moreover,

the
be

Government

second

much

half,

higher

than receipts, with some resultant

stimulating

effect

upon

With Victor Lawson Co.
(Special to The Financial Chronicle)

CORAL

filiated

First

Lawson

National

Bank

Joins F. I. du Pont

velopments expected later

lead

you

in the

to believe that

"interim period" will be over

very soon.

I doubt such

sion

much.

very

Victor

general

(Special to The Financial Chronicle)

These encouraging economic de¬

year may

with

Company,
Building.

Fla.—Blanhas become af¬

GABLES,

chard H. Phillips

business.

the

(Special to The Financial Chronicle)

inventory

already seems to have
been completed, and further liqui¬

Rusa
previously with

was

Witter Adds

reasonable prospect. The

correction

Calif.—Rob¬

Sutro & Co.

merely if the factors which have
depressed
business
in
recent

expenditures

With

exam¬

corporate

era

boom.

which

—

ment,

nesses

which

activity; for

new

been

been marked

developments

ple,

means

penditures have been pretty com¬

these

other

have also served to restrain short-

sumer

year.

1954 has

tendencies
an

for

minimum of

war.

stimulus

Thus far

pro¬

perhaps as long

dislocations

other

earlier in¬

inventory liquidation has
opposite'depressing effect.

five years—leaving out, of course,
any

obvious

general

serious

economic
jected is

these

pletely wasted, the economic

months

ventory accumulation provided

ceased to

Again let

Unless

sequences

recent

unusual extent. Just

period of abnormally high

greater

ex¬

buying has been well
maintained, but the country has
been "living off the shelf" to an

the sharp drop in government

developments

unexpected,

produce economic effects.
research

buyers.

over-all

pro¬

time to

large

major industries,
steel, automobiles and
major appliances, found that
"choosey" customers had replaced
as

eager

renewed

rent

the

incomes

This research age is not
very old.
We are still in the earliest stages

Treasury

interested

should not be ac¬
the end to general post¬
adjustments and the begin¬

have

several

such

years..

"recovery'4
just ahead,

months

Again I make my plea for per¬

tal

products

op¬

down moderately

the

when

few

view,

spective.

production
and employment, recent and cur¬

It increases the demand

for goods

over

continuing

whatever
the

and further

although
for
new
plant and equipment should re¬
main high and perhaps even set
a
new
record this year,
in my
opinion the nation still faces a
period of somewhat reduced capi¬

road

which

tfo be

early

business

pacity for industry to make goods.

in which

seems

can

years

to slow

moderate

but I suspect that it is attributable
to the influence of the

the

govern¬

higher standard
sumption for us all.

mean

drop

substantial

demand
to

spent

know

sible, large cuts in taxes will also
be' possible.
In other words,
a
more
peaceful and secure world
will

few

because

prevent large adidtional cuts

sion.

not

important.
defense pro¬

defense spending.

the

pected

are

of the Communists.
may

Adminis¬

effectively the "small-war" policy

surprising lack of initiative and
enterprise in fighting the reces¬

to be

seem

partly by raising investment

the government which has shown

its

cuts

which will enable it, in

but

billion

The

anno u n

mediate

junction with its allies, to oppose

sion

about

able

substantial

planned

that it does lit

ones

tribution

to mitigating the reces¬
by reducing excise taxes by

whether

policy of
"mass retaliation" fits only a few
special situations — though the

System in combating both threat¬
inflation

The

I wish that

that

strategy.

tration's

over

ill-conceived concep¬

upon

ment

contraction

busi¬

cuts

possible.

now

are

based

ened

country will

defense expenditures.
I

few

years.

uncertainty

greatest

The record of the Federal Reserve

and

only

intermediate

the

families will be formed

These

for

prospects—the prospects

ness

quirements; (2). the rate at which
new

done.

time

fectively has

has

one

cuts in defense

sions.

t her-

even though
as
limited in

occurs,
mild and

credit

and

vigor
u r

I believe that the next time

more,

reces¬

consumer

booms

Ad¬
with

act

initiative and
fighting contraction. F

gram

consumer

proper

had

will

in which

one

goods which

only the well-to-do
previously been able to af¬
These
important benefits

Hence, I be¬

recession

The country needs

ford.

country

the people conclude that the

however,

the

will

plain,

but

lieve

action

when

and

the level of unem¬
ployment which the Administra¬
tion regards as justifying action,
seems
to be considerably higher
needed,

during the early months of 1954.

Encouraging/
But Challenging

Administration

the

that

faces

the

Therefore,

ning

Business Outlook

several

said

have

for

occurs

war

than

rather

budget

ministration
would

conclusion.

"test"

cepted

unnecessarily unem¬
Spokesmen for the Ad¬

times

such

page

million

two

ill-timed

consumer

has also

fortunate

inflationary effect
expansion of

cash

ployed.

act

ernment.

from

the

to support

opinion,

Continued

slowly,

with our capacity to produce. I
do not know where I should find
the evidence or the' arguments

The

conclu¬

nation,

■

MIAMI, Fla.—Estelle Alexander
has become associated with Fran¬
cis I. du Pont &

Second

Co.r121 Southeast

Avenue.

Miss

Alexander

formerly with Oakes &
and Bache & Co.
was

Co,

Volume 179

Number 5328

...

The Commercial and Financial Chronicle

(2351)

The following statistical tabulations

Indications of Current
Business

latest week

Activity

week

month available.

month ended

Latest
AMERICAN

IRON

AND

STEEL

steel operations (percent of capacity)
Equivalent to—
Steel ingots and castings (net tons)___-^_.

AMERICAN

and

condensate

Kerosene

output

Distillate

68.7

*1,712,000

1,637,000

!i 7,020,000

6,422,400

2,262,000

6,359,200

*6,811,000

6,915,000

6,884,000

24,050,000

22,660,000

23,598,000

22,477,000

2,019,000

1,872,000

2,119,000

2,442,000

8,953,000

9,557,000

9,881,000

9,156,000

8,015,000

8,454,000

175,750,000

175,874,000

21,590,000

—

fuel

oil

(bbls.)

20,210,000

178,923,000

153,993,000

CIVIL

ENGINEERING

17,527,000

CONSTRUCTION

63,939,000

57,034,000

64,682,000

44,668,000

43,265,000

677,581

647,954

612,884

779,805

588,414

572,808

COMMERCIAL
ERAL

construction

May 20

$330,447,000

State

and

municipal

(U.

BUREAU

SYSTEM—1947-49

143,687,000

95,299,000

102,475,000

100,021,000

75,933,000

83,324,000

34,666,000

19,366,000

14,151,000

7,100,000

6,775,000

6,690,000

May 13

9,109,00Q

418,000

426,000

479,000

614,000

May 15

123

118

105

Electric

output

(In

AND

INDUSTRIAL)

—

.May 22

DUN

COMPOSITE

Finished

steel

(per

Pig Iron

(per

gross

8crap steel (per
METAL PRICES

Electrolytic

8,373,000

8,380,000

8,257,000

8,013,000

May 20

248

229

156

PRICES:

May 18
May 18

4.634c

$56.59

$55.26

$28.08

$27.58

$25.67

$38.17

29.700c

29.675c

29.625c

29.700c

29.600c

May 19

29.700c

May 19

100.000c

93.750c

93.500c

97.000c

May 19

14.000c

13.000c

13.800c

12.800c

May 19

10.250c

11.000c

U. S. Government Bonds

May 25

99.41

99.33

100.57

Average
Aaa

91.93

May 25

110.52

110.70

110.88

103.30

(East

St.

Louis)

at—

corporate—

-May 25

Baa

—

Public

COTTON

Industrials

AND

LINTERS

*105

110

♦89

104

JOO—Month of April:
(average monthly), unadjusted-

103

(average

101

102

113

116

•121

113

111

•115

STORE

DEPARTMENT

Uniilled

ERAL

Sales

Stocks,

102.30

104.66

99.20

109.60

101.64

110.70

110.88

102.63

Durable

111.62

112.19

105.86

Non-durable

2.54

2.55

2.45

3.09

3.14

3.13

3.12

3.55

2.87

2.86

3.34

3.03

3.01

3.43

3.15

3.14

3.15

3.61

3.48

3.47

3.80

3.20

3.21

3.19

3.65

3.14

3.13

3.12

3.59

3.06

3.05

3-40

May 25

439.3

439.1

438.6

242,970

298,213

209,612

May 15
—May 15
-May 15

252,436

INDEX

end

period

237,514

242,332

204,133
251,473

429,134

378,774

529,536

103.13

103.34

109.50

EXCHANGE

Dollar value

short

1,090,970

999,957

—May

$47,744,336

$52,036,873

$45,365,898

$33,993,771

May

1,008,020

1,110,720

1,005,027

8,614

8,162

6,306

4,700

Other

FOR

ROUND-LOT

ACCOUNT

THE

STOCK

MEMBERS

ACCOUNT

BERS, EXCEPT ODD-LOT DEALERS AND
Transactions
Total

Other

160~790

308,420

358~470

343,340

355,060

316,910

315,680

—

10,772,160

6,461,170

11,228,830

6,814,280

1,272,230

1,138,740

1,158,290

227,530

249,650

146,590

Federal

890,610

396,940

576,630

Dividend

1,146,590

723,220

360,350

319,800

395,790

149,060

31,000

24,600

30,600

20,900

375,730

O310,310

342,550

159,920

406,730

334,910

373,150

180,820

437,660

348,360

371,830

271,420

55,050

41,750

33,850

82,500

401,130

381,365

520,593

321,531

456,180

423,115

554,443

404,091

2,070,790

1,807.100

1,925,910

1,130,810

May

331.370

PRICES.
(1947-49

NEW
=

SERIES

DEPT.

1,582,285

1,760,038

1,058,081

2,136,210

1,876,165

2,074,188

All

commodities—.

Processed
Meats

—.—.May 13

111.3

111.0

111.3

99.0

101.1

98.2

107.6

*106.3

105.6

other than

farm and foods

101.9

99.1

95.8

93.0

May 18

114.4

114.6

113.6

§Based on newr annual capacity of 124,330,410 tons
([Includes 615.000 barrels of foreign crude runs,
of Jan. 1. 1954, as against the Jan. 1, 1953 basis of 117,547,470 tons.
(Number df orders not reported since introduction of Monthly Investment Plan.
♦Revised

—As

Total

figure.

CLASS

$32,574,078
25,120,862

$77,797,464

57,694,940
3,711,243

95,867,024

from

income

3,419,100

53,983,697

92,053,687

24,336,155

20,422,930

58,743,064

2,791,094

2,829,257

2,800,627

21,545,061
43,638,545

17,593,673
43,142,484

55,941,437

—

taxes

3,813,937

57,836,476
—

—————_

._—

18,069,560

40,893,960

.___

19,254,342

19,267,909

44,393,072

_________—

27,021,222

15,681,701

25,101,575

—___________

19,522,440

9,465,284

18,893,363

1.73

1.61

2.76

—

appropriations:
stock

stock
fixed

charges—

—

face
any

April 30

(000's omitted):
that

amount

may

be outstanding
———

$275,000,000

________

271,046,794

270,235,368

264,589,809

79,825

time

77,086

52,373

$271,126,620

$270,312,455

$264,642,181

Outstanding—
Total

debt

public

gross

Guaranteed

obligations

not

owned

the

Treasury
Total gross public debt and guaranteed

obligations
Deduct—other

——______

outstanding

gations not subject

under
UNITED

104.5

May 18

„

All commodities

78,954,000
$ 410,421,000

U. S. GOVT. STATUTORY DEBT LIMITATION

109.9

100.7

May 13

foods

63,686,000

$374,908,000

$44,417,883

(way & structure & equipment)

preferred

Balance
.—

63,630,000

16,837,693
61,255,576

deductions

income

Grand

May 18

—

35,193,000

62,825,000

86,805,000

Ratio of income to

100):

products

9,479,000

35,062,000

79,293,000

40,856,000

public

debt

obli-

554,613

555,952

605,478

$270,572,006

$269,756,5Q2

$264,036,703

4,427,993

to debt limitation——

6,243,497

10,963,297

$271,126,620

$270,312,455

$264,642,181

4,787,069

6,354,530

3,581,886

$266,339,551

$263,957,925

$261,060,295

2.380^

2.394?#

2.388ft

Commodity Group—
Farm

$182,781,000
40,384,000

8,573,000

LIFE

_____

common

1,308,131

293,880

$163,906,000

38,682,000

February:

250,050

1,854,340

314,100

1.59

March:

deductions

1,113,140

members—

sales

1.86

$196,916,000
49,479,000

INSTITUTE

—

income

Depreciation

245,320

$1.75

1.90

•1.65

operating income

710,330

May

$1.79

1.90

10,241,000

—

PAYMENTS

Income available for fixed charges
after fixed charges—

1,077,430
1,323,250

Short sales

Miscellaneous

Total sales

—

10,184,860

10,573,690

——

purchases

LABOR

values

income

Total round-lot transactions for account of

39.5

1.65

income

Total

—_

41.7

38.8

$1.80

—

_______

INCOME ITEMS

Total sales

WHOLESALE

12,071,290

floor—
'

40.8

•40.0

(Interstate Commerce Commission)—

sales

Other

353,110

Net

——

•39.5

39.7

38.1

—

payments

railway

Other

456,670

12,567,130

Initiated off the

62.81

_______

1„_

On
-

77.56

•64.02

—_

$461,416,000

SELECTED

Other

May

Short sales

Total

333,830

the floor—1
-

purchases

Other

—_

goods

Policy dividends

$71.40

•76.00

62.87

endowments

sales

transactions

DEPT.

Income

Total sales

Total

495,840

MEM¬

Short sales

Other

Matured

RYS.

—

purchases

Other

April:

benefits

316~220

sales

transactions Initiated

Total

Annuity payments

SPECIALISTS:

sales

•$70.71

75.43

HOURS—WEEKLY

goods

Surrender

.—.May
May

—

7,024,000

39.0

AND

INSURANCE—Month of
Death

160,790

specialists In stocks In which registered

purchases

9,989,000

*6,756,000

___;

INSURANCE—BENEFIT

316,220

Short sales
Total

LIFE

Net

FOR

17,013,000

*9,402,000

6,747,000

manufac¬

manufacturing

358,470

May

TRANSACTIONS

•16,158,000

9,287,000

manufacturing

Month

Total sales

149.3

Non-durable goods

(SHARES):

111.0

•138,6

$70.20

employees

Durable goods

308,420

STOCK

—

*103.4

Hours-

Disability

TRANSACTIONS

sales

KOUND-LOT

goods

Non-durable

589,001

Short sales

Other

Durable

$23,865,896

Total Round-lot sales—

5,613,000

102.5

Weekly earnings—
■All manufacturing

998,721

——.—May

8,115,000

137.3

Total

AND

13,733,000

•5,316,000.,

16,034,000

ESTIMATE—lb.

AVERAGE

$42,782,365

May
.

♦12,793,000
♦7,477,000

Avge.—100)—

FACTORY EARNINGS

1,102,558

dealers—

TOTAL ROUND-LOT STOCK SALES
EXCHANGE

(1947-49

———

May-

Number of shares

5,303,000

Durable goods
Non-durable goods

$50,707,069

sales

Indexes

number

999,406

-May

purchases

12,683,000
7,375,000

goods

manufacturing

$45,373,149

Number of shares—Total sales

Round-lot

workers)

—May

by dealersi

DEPT.

goods

POLICYHOLDERS

—

turing industries—
All

593,701

May

value

SERIES—Month

(production

manufacturing

Estimated

746,831

sales

Short sales

All

1,038,600

May

sales

other

Hourly earnings—

Customers'
Customers'

unadjusted

seasonally adjusted

LABOR—REVISED

Durable

Odd-lot purchases by dealers (customers' sales)!—
Number of shares—Total sales

1947-1949

Non-durable goods

-May

———————————:

FEDERAL

—

manufacturing
___■
Payroll
Indexes
(1947-49
-Average—100)—

106.52

COMMISSION:

——

FED¬

All

(customers' purchases) t—

Number of shares

PAYROLLS—U.

manufacturing

Ail

.May 21

EXCHANGE —SECURITIES

Odd-lot. sales by dealers

Dollar

100)rr-

February:

417,905

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT
DEALERS AND
SPECIALISTS ON N. Y.
STOCK

Round-lot sales

Average

RE¬

adjusted.—

AND

LABOR—Month
'

100

All

ASSOCIATION:

activity

AVERAGE

EMPLOYMENT

416.3

—May 15

—May 25

daily),

seasonally

109.24

2.88

(average daily),
Stocks, unadjusted

104.66

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
5949

(FEDERAL

DISTRICT,

BANK

Employment

(tons)

99,152

Average

109.24

May 25

(tons)

SALES—SECOND

RESERVE

110.52

(tons).

orders

SALES

STORE

104.43

May 2s

PAPERBOARD

Percentage of

May

April:

105.34

Group

Production

1,869,231

106

SYSTEM—1917-4!)

106.92

Group

Orders received

909,240

1,806,301

10,522,907

107

SERVE

May 25

COMMODITY

845,036

1,728,497
9,727,732

19,970,000

DEPARTMENT

112.93

Group

NATIONAL

1,528,541

110.34

May 25
May 25

MOODY'S

660.209

May

19,626,000

115.82

May 25

Utilities

48,332

COM¬

110.52

Public

105,255
1,590,188

May

spindles active

115.63

•

Industrials

142,282

19,457,000

Stocks

Sales

AVERAGES:

Aaa

95,795

125,759

(tons

5,536,648
127,705
1,129,435

112.56

corporate

Railroad

DEPT.

—

months of April
consuming establishments as of
public storage as of May 1__
Linters—Consumed month of April

112.37

Group
YIELD DAILY

95,890
112,660

BALES:

--.May 25
May 25

—

*81,100

117,546

104,329

pounds)

of 2,000 pounds)
stocks at end of period

115.24

U. S. Government Bonds

Average

77,063

112,617

124,523

2,000

pounds)—

110.34

Group

BOND

pounds)

(tons

copper

2,000

(tons

May 25

Group

Utilities

MOODY'S

•

May 25

Railroad

$464,000

April:

fabricators—

May 25

•

Refined

Sales

MOODY'S BOND PRICES DAILY AVERAGES:

$720,000

9,507

29.700c

May 19

Zinc

...

May 19

Louis)

$672,000

omitted)
month

Adjusted for seasonal variations..
Without seasonal adjustment

(St.

(tons

Refined

Month of

(E. tc M. J. QUOTATIONS):

copper—

(New York)

10,514

YORK—

4.390c

$56.59

—May 18

ton)

gross ton)

Export refinery at
Straits tin (New York)
Lead

Crude

Cotton

lb.)

Domestic refinery at

Lead

(000's

NEW

BKADSTREET. INC.IRON AGE

Lint—Consumed

kwh.)

000

(COMMERCIAL

BANK

MERCE—RUNNING

EDISON ELECTRIC INSTITUTE:

FAILURES

April

10,272

Copper production in U. S. A.—

May 15

100

50,678,096

OUTSTANDING—FED¬

INSTITUTE—For

INDEX—FEDERAL RESERVE

AVERAGE

$479,296,318

April

RESERVE

COPPER

PAPER

Deliveries to

coal and lignite (tons)
Pennsylvania anthracite (tons)
SALES

155,167,000

OF MINES):

Bituminous

DEPARTMENT STORE

$257,642,000

152,653,000

80,483,000

May 20

Federal
COAL OUTPUT

$247,952,000

102,937,000

May 20

200,358,000

22,454,000

construction

$344,045,000

227,510,000

—

construction

Public

$408,345,529

87,811,374

INCORPORATIONS (NEW) IN THE
STATES—DUN & BKADSTREET,

INC.—Month

Private

78,549,857

$507,391,255
99,045,726

$529,974,414

55,Q63,805

City^

16,983,654

82,284,930

$21,111,893

UNITED

NEWS-RECORD:
Total

York

40,631,732

15,367,414

$429,312,335

—

New

41,116,159

$434,376,230

York City

56,063,620
131,953,233

79,781,772

Outside

94,290,437
76,275,782

13,318,867

United States

105,167.335

36*.676,458

Pacific

96,869,051

46,453,570

71,770,239

Central

Mountain

128,191,656

43,536,082

Central

$23,411,307

110,066,444

664,601

589,402

Ago

$24,059,033

—-

South

New

Year

Month

CITIES—Month

Central

West

40,258,000

ENGINEERING

—

of that date:

Atlantic

East

20,864,000

65,531,000

44,996,000

May 15
of cars)— May 15

(no.

DUN

—

April:

BUSINESS

freight received from connections

VALUATION

INC.—215

England

Total

May 15

ASSOCIATION OF AMERICAN RAILROADS:
Revenue freight loaded (number of cars)
Revenue

PERMIT

8,666,000

8,136,000

Residual

South

6,589,950

May 15

output (bbls.)
May 15
Stocks at refineries, bulk terminals, In transit, in
pipe linesFinished and unfinished gasoline (bbls.) at
May 15
Kerosene (bbls.) at
May 15
Distillate fuel oil (bbls.) at
May 15

are as

Latest
BUILDING

BKADSTREET,

—May 15

(bbls.)

of quotations,

cases

either for the

are

Month

100.3

May 15
.

output

6,428,250

oil

fuel

or,

Middle Atlantic

May 15
May 15

(bbls.)

oil

fuel

Residual

§1,680,000

*71.8

(bbls.)

average

that date,

New

(bbls.

Dates shown in first column

Ago

§70.5

May 30

Crude runs to stills—dally
Gasoline output (bbls.)

Ago

--May 30

output—daily average

42 gallons each)

Week

production and other figures for the

cover

Year

PETROLEUM INSTITUTE:

oil

Crude

Month

Week

INSTIIUTE:

Indicated

total

face

outstanding

amount

above

obligations,

GROSS

DEBT

DIRECT

GUARANTEED—(000'S omitted):
As

April

General

balance

AND

t—

fund

issuable

authority

STATES

as
Net

debt

Computed

annual

rate

452

The Commercial and Financial Chronicle...

(2352)

Continued

from

page

much of the current thinking' sure
your
Congressman under¬
—particularly in political circles stands it.
is exemplified by FNMA.
There are many other phases of
Its

—

The

proponents argue that we need a
secondary market just as the com¬

Al the Crossroads

the

mercial

Mortgage Business

banks

the

they

country where

in abundance to other sections

ure

where

tual

they

needed. The

are

savings

otter

banks

mu-

good

cxample of this freer movement of
funds. I

which

FHA.

home

its

had

been

not

office

have

not

con-

for

the

loans

and

include

have

diversify

greatly
portfolio

FHA

appraisal
its

and

been

able

systems

damentai

that

standards

S1
throughout

fun-

certain
set

are

to
oq

the entire nation

gives

the investor confidence
ii> lending
hi territories where his persona

knowledge

not

intimate

in his immediate territory.

limited

are

1 ^ 1ra.!^ J??

°ifdn,.i SL

the market a "shot

ment

sTunf—?

pooling of risks by investors, all
us
have
been
permitted to
make
larger
percentage
loans
which means a greater total ina

fixed

number

transactions than would have been

the

under

state

usual

laws.

executives

mortgage
lending institutions take the position

the

FHA

soundest

type

represents

the

cooperation

government with private industry
and

which, because

program

of its size and complexities and its

nationwide

adaptation, could not

possibly have been worked out
and operated by private lenders.

sible.

haVe

wher*

reagon

.g pog.

We are like the
}

effectg

the

are

th*

^ too

jg
we

already

point

the

hag taken d
feel

agk

of the

that

when

agajn confronted with

markets

and

reduce

and

the

rising

the

term

loan

to the market the next time it

will

forthcoming because we
in a democratics society

ance

plans.
FHA
be

the

government loan

The

the

disap-

the continued liber-

see

Congressional debate
original act creating the

made

it clear there

was

sound

mortgage
program
within the framework

operating
of private

also disturbed by the pre-

are

should be used

tools

which

stimulate

our

general economy—without regard
to Actual demand for housing and
and

demand

mortgage
people

feel

the

sup-

There

money.

who

are many

housing

shortage has been met in some
areas and that easy credit terms
designed to artificially create a
demand for additional housing
could lead to an over-production
which, in the long run, would be

mam

90%

sys-

95%—and, in the
have

100%

maximum term

was

of VA,

case

loans.

then

and

The

FHA

first set at 20

and then lengthened to
years
and subsequently to
years

years.

will argue the point that
'these liberal steps weakened the
one

insurance
program
cannot expect 95%,
to

work

out

because
30

year

loans

long period
of years as satisfactorily as
80%,
20 year loans. I have the
feeling
these
liberalizing
steps
were
agreed
ord

upon

over

based upon the

rec-

foreclosures

have

wherein

been negligible but we must remember
these government
systems have not been put to a real
test.

We have been

steadily ris-

ing real estate market since the
first loan
true

was

insured in

appraisal

VA must

await

the

1934.

FHA

and

the passage of a

sufficient

length of time to encompass both good times and bad
and only then may we determine
bow a 95%, 30 year loan or a
100% loan is going to fare and

But

such

FNMA.

repay

sav¬

not

you

the

in the background and

re-

spond to actual effective demand
rather than place these insurance
programs in the forefront with

or-

Advisory Com mitt e e recommended that interest rates on
government guaranteed loans be
w !* ,on!y ,one sinSle
thought in mind—to keep these
rates competitive with other

oeived its,fair share of investment
fund?. You can readily detect a

Xfry fundamental difference
these two approaches,

f\tMA
4

This whole concept to which I
am

referring and which pervades

economy.

loan

sure

penalized in acquiring

was

prefer¬

today

first

was

funds,

ury

ated

for

Treas¬

uses

has

money

the

been

same

basis

of their country in time of active
I would like to discuss with you
some

FHA

debentures

the

problems

buying
these mortgages which not only
adds to
the inflationary stream
but places our government in the
position of directly competing

gage

with

terest rate and other details bear¬

purpose

the

mind, play

operation of the entire FHA mort¬

ing

the

heavily

must

designed to
fluctuating needs of the

agency

the

ultimate lenders.
FNMA

What lenders is

designed to serve?

mentioned

that

the

banks and savings and loan
ciations have their
facilities.

Life

own

asso¬

secondary

insurance

compa¬

nies, when needing such facilities,
and

can

banks.

the

use

commercial

The mutual savings banks,
large holdings of cash and

due to

government

bonds,

can certainly
temporary ad¬
justments but, if they need sec¬
ondary facilities, they are eligible
for
membership
in
the
Home
Loan Bank System.

work out their

own

have

given

the

benefits of the laws of supply and
demand
which
have
heretofore

now

well

our

regulating

will FNMA supplant

on,

all

economic life. From
sup¬

ply and demand and will it regu¬
late the volume of
housing and
the amount of mortgage financ¬
ing?
We

told

are

that

FNMA

the marketability of these

debentures

will

day

some

the

weigh

mort¬

minds

gagees if we encounter a period of
greater than normal foreclosures.
I

I have

commercial

The questions of in¬

system,

legitimate mortgage in¬
vestors of the country.
To be a truly secondary facility,
serve

involving
which, to my
powerful role in the

wish

could

talk

with

you

about the desirability of FHA ex¬

tending its loan limits on single
family houses, as contemplated by
the Housing
Act of 1954, from
$16,000
to
$20,000
with
corre¬
sponding increases on two-unit,
three-unit

ings.

four-unit

and

dwell¬

Would it be better if what

assistance

government

our

can

-render in this field be confined to
the

lower

priced houses and
thereby spread over a greater
number of people who need it
most—keeping in mind that those
who contemplate buying the more
expensive houses should be in a
better position to pay for them?
These and many other questions
could be discussed at great length
and I am sure we would not all
agree

the

There

correct

solutions.

facets of the con¬
ventional mortgage business that
are

should
make

many

covered

intelligent

one

the

select

needed to provide mortgage funds
in
small
towns throughout the

him,

country.

am extremely pleased
Cqle recognizes it is
more expensive
to negoti¬

Mr.

ate, close and service
ume

small vol¬

thinking

moment

and

Loewi

heads

who, usually, are better in¬
formed than the speaker.

Co., Milwaukee, Wis,*

underwriting

our

service

fee

allowed

loans and that such a pro¬
vision is included in the
Housing
Act of

1954.

The flow

of money

responds to the net rental
its use and I predict a

paid

territory, if lenders do
the

only

branch

way

funds

office

they

available

basis

system,

the

their

make

can
on

not operate

nationwide

through the servicing

was

cumulative divi¬

bers of the group include:

Blosser

McDowell,
Farrell,
Inc.,

Co., St. Louis; The Marshall Co.,

Milwaukee; Metropolitan St. Louis
Co., St. Louis and Link, Gorman,
& Co., Chicago.
Clark, the largest independent

Peck

oil company in the Midwest re¬
fines and sells petroleum products

both

thrdugh

regular

addition,

been

too

actively identified with
to fail to give it our
best of
thinking at this

them for
very

time.
I want us to contemplate the
responsibility we have to help
shape the future of the mortgage

business

—

field

which has meant

in St. Louis and four in

Illinois.
der

Six

Let

and

to the investor is
the

sounds

na¬

rate

always Vz % less

contract

elementary to

rate.
you

This

but

suggest you take the time to be

are

un¬

Chicago

and ten additional sites have

been selected in that

The

company's

new

market.

operating income

has grown from $22,000,000 in 1949
to more than $36,000,000 in 1953..
The company's two refineries and
water

transportation facilities

modern

and

adequate

The

net

additional

are

handle

both
present
requirements
planned expansion.

and

proceeds will provide
working capital.

Bache
Louis
mitted

limited

Admit

Voltter

will

ad¬

partnership

Bache & Co., 36 Wall

Street, New

York

City,

York

Stock

members

the New

Exchange, June 1.

Joins

Taylor Staff

^Special to The Financial Chronicle)

BEVERLY HILLS, Cal.—Robert
R. Hammond

has joined the staff
Taylor and Company, 364 North
Camden Drive.
of

With Cantor,

Fitzgerald

(Special to The Financial Chronicle)

with offices in the White
to

as¬

is everybody's business is
nobody's business. We must work

plan individually and collec¬

tively
and

and

then

act

our

tive

and

individual dealer.

With First California
(Special to The Financial Chronicle)

LOS

ANGELES, Calif. —Ralph

M.
Dahi
has
become
affiliated
with the First California
Company
Incorporated, 647 South Spring

Street.

Fairman

was

Co.

previously
and

with

Edgerton^.

Wykoff & Co.

Ira J. Ducey

policyholders

Ira

Ducey, associated with
Vogel & Company, Detroit
Michigan, for 16 years, passed
to away May 16 at the age of 61.

owe

government and to

depositors

busi¬

aggressively

forthrightly. As citizens of

private enterprise system, we
to

Building

the securities

Melvin J.

Scoville, a princi¬
pal of the firm, was formerly ac¬

democracy made great by the free
it

engage

ness.

banks throughout their entire his¬

the other fellows will do it.

referring to the

the

investment

sume

are

Southern

stations

new

construction

area

much to your

What

are

construction, eight in Wis¬
consin, three in Minnesota, seven

BEVERLY HILLS, Cal.—Olive*
mortgage field, it was time for us H. Bonham-Carter is now with
to
stop—take stock
and
think Cantor,
Fitzgerald & Co., Inc.,
carefully about what the next 232 North Canon Drive. He was
twenty years might have in store previously with Curtis Lipton Co.
for us. The government loan plans
have too many good qualities—
Nelson, Scoville Co.
have
accomplished
too
much—
and the mutual savings banks and
SEATTLE, Wash.—Nelson, Sco¬
the life insurance companies have ville & Co., Inc. has been formed

4% must be paid originating
costs,
office expenses and losses.

tional mortgage market, the

stations

new

under

feeling that after
of progression by
government in the residential

We cannot sit back and

keep stressing the fact that

wholesale

channels and its 160 retail outlets.

tory.

Straus*

Chicago;
Madison;
Ames, Emerich & Co., Inc., Chi¬
cago; H. M. Byllesby & Co. (Inc.),
Chicago; Dempsey-Tegeler & Co.*
St. Louis; Irving J. Rice & Co.,
Inc., St. Paul; Fusz-Schmelzle &
Bell

years

agent system. Then, a 4*2% loan
becomes a 4% loan and out of this
home

group
shares oi

tional
such

dend, convertible preferred stock.,
$20 par value and 100,000 shares
common stock, $1
par value. Mem¬

Conclusion

twenty

than

of loans in these little towns

is solidly behind the
recommendation
of
the
Presi¬
dent's Committee that an addi¬

when

Refining

which is offering 50,000
series A, $1.20

then

some intelligent
the part of his audi¬

Securities Offered

phase of

ence

and that he

Clark Oil &

to be basic and funda¬
the

solid
experience in the field of trustee¬

hope to stimulate

that
much

seems

mental

such

ship.

business which, to

mortgage

listen

will

presentation,

broad

some

whom

businesses

of them many long years of

the over-all

mortgage picture.
But I have long since reached the
conclusion that the whole subject
of
mortgage loans
is just too
broad and comprehensive
to be
adequately treated in one brief
talk. About all a speaker can do
is

and mine which have back

should

and

to those who went to the defense

cre¬

exactly the

hesitate

not

was

the benefits of the act be granted
to those entering the service to¬
on

most

intently

1944 when the

passed

never

administrative officials in govern¬

of the time he had spent in
Do the same conditions

cause

must

home be¬

war?

the extent FNMA

forms of investment in order to be
suFe ,W,e mortgage market re-

but

ence

com¬
ders to create demand at all costs?
The prevailing attitude is re- plete satisfaction of the mortgage
needs of small communities if this
fleeted in the Housing Act of 1954
w.here the President would be service fee should be permitted.
It cannot be too
strongly em¬
Siyen authority to regulate intere
rates on mortgages and estab- phasized that we have an educa¬
^h loan percentages and terms, tional job to do in connection with
The inference is that this power the usual fee of x/2% paid by in¬
would be used as a tool to influ- vestors to servicing agents. Ex¬
?.nce tae, demand for and produc- cept for loans made in their local

housing. The President's

war-time

The purpose of the G.I.
to give the veteran

day

for

\lan.

and

not

act

with

caset

fortunate

are

mortgage, you
wash your hands of it. You have
no responsibility to
repurchase it.

phases of

inally limited to 80% of value but

loan.
A truly secondary market func¬
tion is performed in those cases
by smoothing out the peaks and
paper

served

and

later increased

the government. Loans were orig-

counted

FHA

disastrous for property owners,
lenders and the Government. I
as^ you—would it not be better
to let the government agencies re-

investors under

tem of insurance administered

facility and then forget
them. They either repurchase dis¬

FNMA,

Program.

tioned

the

We must
where economic problems are not
inevijably come to the
fully understood by the masses of conclusion that those who want
FNMA want a primary market—
the voters. To my mind, the con-„
thaued liberalization of the FHA a place to dump loans which fail
hi all periods—both active times to meet the tests of the market
anc* times not so active—-has cre- place, which reflects a philosophy
ate(! f°r us a situation which some that housing must be kept going
£ay 1Tia/ actually threaten the at a boom level regardless of basic
financial soundness of the insur- market forces and, because of

ply

alization

really needed. Frankly, I am not
too
hopeful such statesmanship

without regard to the laws of

pointed to

the

percentage?

field?

greatly

ac-

prices

picture. What are some of
the problems being created for the
mortgage business as a whole by
governmental
activity in this
been

conception—even in our
present administration — that the

So much for the favorable side

have

ghot

vailing

Mortgage Business

who

man
h
d

This would require real statesmanship but it is the only way we
could be ready to give a stimulant

Problems Created for the

nothing elge within

operate

Many

wye

But

liberalized

that

permitted

in iUfin*1
ifJjIL1"L? i?"

^ W]?c

loan

each

extremely high activity and(
during periods when we were
using every weapon at our disposal to combat inflation. It seems

Due to the insurance feature of

for

and

^ive

100%

that

now

and

speak openly and frankly to the

yours

exist

the FHA system which represents

vestment

sell

not

veterans

tives

ment,

operations of the banks and

tech-

underwriting and the fact the

you

chasers

the

underwriting

knows

with

service.

and

loans

you

permitted.

think

desirability

for

valleys in the normal investment

SosTof t'he^FHA'oHicelare anx-'™uW
lous to do gcS^job of appraising
investor

using

time

with

the influence which right*
fully belongs to us in the mort¬
gage field. We must be willing to
make suggestions and give advico
to our duly elected
representa¬
exert

housing shortage exists and
are not operating under a ra¬

its guaranty. The problem coUld
be particularly acute in connection with the large FHA. rental
and cooperative projects involving big amounts concentrated in
single developments and where,
after foreclosure, prospective pur-

Most investors have confidence
the

loans

facilities

like
the

programs

discuss

acute

those

enough to sell it

our

detail

about

cases,

ernment loan plans during periods

the FHA system.

these

would

institutions

both

soon

mortgage
to location because of

to fulfill

member

ings and loan associations.

loans, the relationship
to

upon

the

seeking a real bargain,
It is somewhat paradoxical that
we have been liberalizing the gov-

we establish
acquire FHA

connection to

broadens

will be called

Federal

conventional

Usually, when
a

is
far

company

territories

would

sidered

from

removed

such

sure

lending

today

whether the United States Treas¬
ury

the

savings and loan

associations have the Home Loan
Banks.

tions

have

Reserve and the

loan

government

should

Thursday, May 27, 195$

our

Number 5328...The Commercial and Financial Chronicle

Volume 179

(2353)

five groups ready to bid competi¬
tion should be keen.

There

are" several

moderate-

sized negotiated undertakings on
tap, the largest of these being the

Scudder Fund of Canada's 700,000
shares of capital stock.

Halsey, Stuart Group
Offer Utility Bonds
The new issue market continues

ot hope

developed this week when

underwriters,
°l
a

Things

have

been

stalemate

with

weeks

with

attracted buyers tor

ZmL
ange.

came

so-called

pretty much
period

segment

over

major

institutional

"'virtually

strike,"

investors
as

ob-

one

put it, against yields being
currently offered.

offering
Service
and

3y %

■

102915%

this

week

Gas

Natural

$25,000,000
in

mnature

ful

Co.

put up for bids
debentures due to

of
25

The

years.

banking

issue

Consolidated

repriced

group

101.833

success-

for

the

indicated

yield of 3.02%.
And at this rate of return there

Public

$50,000,000

refunding

Co.

Gas

first

bonds,

mortgage

| M f f 1984
and accrueg interest,

yield 3.10%, is being made today
(May 27) by a syndicate headed
by Halsey, Stuart & Co. Inc. The
group won award of the issue at
competitive sale
bid of 102.3199%.

server

But

Electric

bonds

May 26

will

the

sale

added

the

company's general funds and will
be used for general corporate purposes and for construction expenThe

ditures.

estimates
that approximately $84,000,000 has
been or will be expended in 1954
for construction purposes.

The

company

bonds will be subject

new

F. Rothschild & Co.; Hirsch & Co.;
Wertheim

& Co.; Mead, Miller &
Co.; Andrews & Wells, Inc.; King,
Quirk & Co. Incorporated; Auchincloss, Parker & Redpath; Wil¬

liam Blair &

"One of the Most Fruitful Epochsft
"When in the

course of the nineteenth
century
guild system and the other forms of traditional

the

Company.

organizations which had
be

S. D. Fuller Offers
D.

Fuller

and

are offering publicly an is¬
of 92,000 shares of common

stock

$1) of the Pyramid
Electric Co. at $3.25 per share.

North

and

epochs

fiscal

year-end,

than

complex
April

It is not

the

■

diversity; in¬
more

had

before

ever

This

been

the

fifty

was

the

history of man." — Per
Quarterly published by

"Skandinaviska Banken."

MUTUAL FUNDS
to

for

-J

—

move¬

period before 1914—in many
ways
one
of the most fruitful

Jacobsson
page

view

)
4

year

Paterson, N. J.

Continued jrom

at that time

was

experienced.

are

Bergen

period
spiritual

freedom of

more room

ideas

produces

bular paper capacitors, under the

located

eco¬

scope for the interchange of goods
and services and the commerce of

hermetically sealed miniature tu¬
Plants

point

deed, there

The net proceeds are to be add¬
to working capital and to pur¬
chase additional equipment.

Co.

was

ment,

Electric

economic

there

(par

Pyramid

come

obstacles to

in which—from both the

Co., New York

City,
sue

regarded

nomic progress were
swept away,
the world entered
upon a

Pyramid Electric Shs.
S.

trade mark "Glasseal."

from

proceeds
the

merely a form of nostalgia which leads
the passing of that era.

to regret

capital

redemption at regular redemp- gains distributions were made by Business Index at New
slightly higher than in the fourth
each series of funds," he added.
bentures. Savings banks and pen- Bon prices ranging from 105.92%
quarter and as high as in the third
sion funds were reported to have t° Par, and at special redemption
"We are pleased to report that
quarter, which was the highest onHigh Since February
shown substantial interest in this Prices receding from 102.92% to
record.
approximately 62% of the capital
The
Axe
Houghton
weekly
one and by the close on
Tuesday, Par> P^us accrued interest in each gains distributions were accepted
Personal consumption expendi¬
business index has advanced dur¬
more
than 80% of the total had
by shareowners in additional
ca;Letures on the other hand are estibeen spoken for.
Public Service Electric & Gas shares at asset value instead of ing the last three weeks and is mated to have continued to de¬
buyers

were

around

for

the

de-

relative popularity

Though

sue.

of this

carries

maturity, there

Co.

1"d1uceme"t.s>

"I ' !,,,1,

the

*,n
is-

25-year

sinking fund
designed to retire 80% of the total

ff
out

i-f

life of

However,

while

Consolidated

Natural Gas 3V8S were going well,
it

minate

weeks

their

decided

agreements

the bonds find their
Hasn't
The

ter-

and

let

levels.

own

Territory served by the
includes

most

fmal,er

communities

5p?sev

the

larger

well

ibuyers toward the bond market is
perhaps summed up by the remarks of the manager of a fund
that counts its resources well up

cities
manv

Based

He says he hasn't

the

turn

marking that
put

the

turn

can't

you

can't

out

bond

year,

re¬

afford

break

possible

re¬

3.15% to 3.20%.

Asked

whether

its

from

electric

about 28%

and

operations

thought
yields would get to that level, "he
^stated
that
"unfortunately
he
doesn't- think so, much as he would
like to see it."

Even

been

12 months ended

amounted

March

revenues

and

net

$25,206,773.
1953, total operating
were
$230,267,295 and

For the year
revenues

net

income

was

Baltimore

those

among

"fighting

have

who

the

market"

avoiding the
buying side, it is recognized that,
basically, easy money is the order
of the

day for

considerable'time

of the

people

is that

looking

are

downward

matter

for

some

another

adjustment in

Federal

wider

variations

individual
tries

declared

National

because

larly important
ahead," it stated.
"For

heads

awarded on
$22,000,000
Maryland,
2.70%, 2"k %

The

bid

Steel
and

and

prudent,

advisable

benefit

from

the

rela¬

and

automobile

have

op¬

corporations,"

participate in the
growth
of successful

the

re¬

asserted.

production

lumber

loadings have in¬
slightly, but miscellane¬
loadings have declined.

ous

index

material

raw

durable

goods

prices has shown

further advance making the pres¬
ent recovery the most extensive
c.f any

have

of the several upturns that

occurred

during the general

decline since the spring of 1952.
An additional sharp rise in cop¬
sible

time

same

variation.

seasonal

creased

prices is mainly respon¬

per scrap

the

high record, after

new

for

tively high income available and

WAY

making

ring

that

some

extra

for

'advance, although

this

has

there

also

been

further

rise

further

gradual

in steel

moderate

prices.
Copper refiners' sales have shown

1994' in the amount of $560,000,
National

post¬

welcome

will

income

slightly.

the

lead

have

but

imports

bringing
with

along

the month's bills. That is the pur-,

pose

the. "Dividend

Every

Month"

plan announced by Hugh
Long and Company, national

underwriter to mutual funds with

assets
The

investors

ment

than

plan

with

provide

balanced

each

dividends

invest¬

scrap

important

only

one

of the

the

Divi¬

Plan.

Month

The

Long organization points put that
the plan is a prudent way of ac¬
quiring a l'ully supervised invest¬
ment

account

zinc

March.

the

combining

op¬

for

and

fairly low,
increased
peso

will

probably encourage lead and zinc
imports thence for a while, al¬
though several United States com¬

notably American Smelt¬
Refining Company, have

panies,
ing

extensive

mines, smelters, refin¬
eries, and other property there.
semi-durable

The

goods
raw
price index has held up
ad¬

reached three weeks ago.
The outstanding development in
the semi-durable goods industries
vance;

has

course

buying

been

movement

substantial

cotton

tex¬

tiles, starting about May 12.
retail

Total

sales, according to
Commerce, de¬
July to January but

the Department of

receive

from

rate

Kidder, Peabody & Co.; Union Securities Coiporation; Mercantile-

again, it is more likely that
reserve
requirements of member

Safe Denosit and Trust Company;
The
Northern
Trust
Company;

vestor

Reserve

the

rediscount

rates

before

Fourth of July.

There
feel

are

that

of course, who

some,

before

the

bank

moves

banks will be

ing

reduced, thus freeportion of deposits now

earmarked in cash.
t>

•

offering

are:

Chemical Bank & Trust Company;
Continental Illinois National Bank

The

the

nrexeT^Co'' Halsev""'Stuart'
Co "Set Gk^e
F^af& Co^

and

Breathing Spell Ahead

Bank

Trust

Company of Chicago;
Philadelphia National Bank;

Blair, Rollins & Co. Incorporated;
As far as the corporate market Goldman, Sachs & Co.; Stone &
is concerned it looks as though Webster
Securities Corporation;
(

underwriters

breathing
next

week.

sized

live

and

Only

offering is
bids

the

dealers

have

one
up

Equitable Securities Corporation; Merrill Lynch, Pierce, Fensubstantial ner
&
Beane;
Hornblower
&

ahead

spell

for

the

competiv

for

Legg & Company; Stein Bros.
& Boyce; W. E. Hutton & Co.; F.
S. Smithers & Co.; Dean Witter
& Co.; Stroud & Company Incor-

pro-

P?rated; Trust Company of Geor-

calendar.

Consumers Power Co., has fixed
next

the
.

Wednesday
opening

jected
first

issue

bids

the

date

„

...

of $25,000,000

mortgage

bonds

its

*
of new

and

Wecks, Ba^r» Watts & Co., John
C.

with

gia;

Francis

Roosevelt

Laidlaw

Cross

Pont

Fundamental

funds:

Fund and

Manhattan

this way

interest

different

In¬

Investment

Diversified

vestors,

Fund.

Bond

the investor acquires
in

the

securities

than

240

all

held

ings

Funds.

include

bonds,

ferred

stocks

stocks.

An investment of

and

169

pre¬

common
an

equal

amount in each of the three

funds

gives the investor
account

with

in bonds and

60% in

from

considerable

showed

recovery

April, Axe re¬
ports.
This however was almost
entirely attributable to ia decline
and
recovery
in retail sales of
durable
goods; and the decline
and
recovery
in durable goods
was
largely attributable, to a de¬
cline
and
recovery
in sales of
January

automobiles
Retail

and

sales

investment

approximately 40%
preferred stocks and

common

stocks.

all-time

high

quarter of 1951.
These

income

and

they

are

and expenditure
estimates,
though

savings

undoubtedly subject to

considerable
seem

first

error,
nevertheless
to indicate that the January

tax

reduction

has

been

important factor in maintaining:
purchasing power and in prevent¬
ing the decline in general busi¬
ness

activity from

Axe

comments.

high
of

and

getting

The

worse,

remarkably

well-sustained

personal

explain,

savings

volume

indeed

may

least in some
part, the recent advance in
at

small
secur¬

ity prices.
done

non-durable

nothing in recent weeks to

influence the money mr.rket, Axe
notes.
Short-term interest rates
have

remained

bond

yields

there

has

It has

low.

Treasury
advanced, but

have

been

reaction in

its

high-grade corporates.

been almost

since

year

Board

began
epochal reversal of policy, but *

the effects continue to be manifest
in

several

has

been

directions.
to

1929,

has been
level

One

effect,

put stock prices up,
Axe states.
Another

help maintain
home

new

high. 1

construction,

by making financing easier.
Another has apparently been to
the
financing of huge

facilitate

public

projects such as throughadditional school facilities,
and
other
improvements for
which, it is said, there is a des¬

ways,

perate need.
this

Where

body's

but

states,
would

come

the
cess

leads

the

looks

struction
to

all

guess,

lack

activity

Administration
of

is any¬

heavy

con¬

some

time

for

specially if,

Axe report
as
if there-

rumored,
in

pro¬

reversing

also its posi¬
Federal pow¬
and ^reclamation
projects in

tion With respect to

the

face

the

apparently

over¬

have been comparatively
steady, and-the April total, sea¬
sonally adjusted, was indeed only
slightly lower than the December
1952 peak.
According to the national in¬
come figures compiled by the De¬

whelming regional political pres¬

partment of Commerce, total per¬
sonal income showed a moderate

increased

further decrease in the first quar¬

ter,

but this was offset by a

duction
the

total

re¬

that

disposable income

was

income

taxes,

•

comparable

the Federal Reserve

accessories.
of

goods

Currently these combined hold¬

Co.:

Incorporated;
Co.; Bache & Co.; L.

plan the in¬
shares of three

purchases

mutual

three

this

under

year

checks

dividends

dozen

clined

with

record of $20.8 billion in the third

The Federal Reserve Board has

The devalua¬

Mexican

profit in common
stocks with
"rainy day" shelter
in bonds and preferred stocks. To

City

portunity

copper

close to the top of the recent

features

Every

tion

remained

sharply

compared

improvement.

Imports

material

program.

Convenience is
dend

$250,000,000.

designed

from

month

1957 to

I991> jri lhe amount of $21,440,000,
are
beir<g reolfered at prices
scaled to yield from 1.15% to
3.p5%, depending on maturity,
are not being reoffered.
Associated
with
The

reasonable

bonds

seems

know

1957 to

group

2.5078%.
Bonds maturing from

stocks

man's

net interest cost of

order

allowing

The

believe

ONE

May 25 an issue of
Baltimore
County,
5%,
21/2%,
2.60%,
and 1% various pur¬

inclusive.

months

reached

Producers' stocks have declined

City Bank of New
syndicate that was

bonds, due June 1,

the

particu¬

continue to have adequate repre¬
sentation
in
common
stocks
in

port

City Group

and

invest¬

investors,
a
of selected

preferred

"Unusual

selection

therefore

American

County

The National

P°se

the

will

indus¬

and

anticipated

ments

that

earnings

companies

are

for

portunity
long-term

Tne bonds maturing from 1992 to

least
Fact

report

the

highest since the end of Feb¬
cline in the first quarter, the dif¬
ruary
although the net increase
ference being attributed to an in¬
from the March 13 low point has
crease in personal
savings, which
been
only
3.4
points.
Electric
reached $20 billion, according to
power
production has advanced
the Department of Commerce, as
in the last three weeks and has

$25,562,807.

Bonds Offered

100.0208, for

least to the extent of

months,

backlog

income

1994,

Watching Money Rates

over

from its gas oper-

ations.

York

investments

care

un¬

even

obtain

outlook

increasing cbmpetition.

served with electricity
3,193,524. Of the total
operating revenues of the cornpany in 1953, about 72% was de-

return

2.9% to 3%. His argument

that

less

the

you

money

■basis of

bought

told.

were

the

and gas was

in the millions.

since

cash," stockholders

Discussing

the

territory

31, 1954, total operating
aggregated $235,548,631

institutional

company

the 1950 census, population of the

For the

Bought This Year

attitude

engaged in the electric
and gas business in New Jersey.

developed that groups which
brought out four other issues ri^ed
recent

operating public utility

company

fiad
in

V*16'* irV/ averagin§'
about 16 ■,a years.

for

sure

this

type ol government

activity.
TEXAS

fifth

1954,

31,

FUND,

year

reported

1949

completing

its-

Aug. 31,
assets have

of growth on
from

total

$150,000

$15,001,690

Aug.

April

30, this year, of which $2,792,731
represents unrealized gain on in¬
vestments.

The Commercial and Financial

Chronicle... Thursday, May 27,

(2354)

if INDICATES

Securities Now in Registration
due

Pittsburgh, Pa. (6/9)
debentures

Co. of America,

ic Aluminum
May

filed $100,000,000 of sinking fund
June 1, 1979. Price—To be supplied by
20

amendment.

and for capital expen¬
Underwriter — The First

Proceeds—To repay bank loans
ditures

working capital.
York.

and

Boston Corp., New

American-Canadian Oil & Drilling Corp.

shares of common stock. Price—
($1 per share). Proceeds—For drilling expenses
and acquisition of additional properties for development
and exploration, and delated activities.
Office—Dallas,
Tex. Underwriter—None.
May 12 filed 1,500,000

At par

shares of com¬

March 22 (letter of notification) 300,000

Price—$1 per share. Proceeds
working capital, etc. Office—20 Broad St., New

stock (par 10 cents).

mon

,—For

Securities, 164 Con¬

York, N. Y. Underwriter—Mid-West

St., Brooklyn, N. Y.

gress

(6/3)

Cyanamid Co., New York

American

May 5 filed 585,000 shares of cumulative preferred stock,
series C (par $100—convertible prior to July 1, 1964) to
be offered for subscription by common stockholders of
each

for

preferred share
held; rights to

1, 1954 at the rate of one
shares of common stock

record June
15

Price—To be supplied by amendment.
increase working capital and dor general

expire June 17.
Proceeds—To

corporate purposes.

Underwriter—White, Weld & Co.,

New York.

American Transportation Insurance
Kansas City,

Co.,

22 filed 105,000 shares of cumulative preferred
stock (par $50).
Price—To be supplied by amendment.
Proceeds
To
redeem
two
issues of $2.50 preferred
—

stock

$50), totaling 98,800 shares, and, together
from proposed issue of $8,000,000 of new

(par

with proceeds

first mortgage bonds,

to redeem $8,000,000 37/s% bonds
presently
outstanding.
Underwriter — Merrill
Lynch
Pierce, Fenner & Beane, New York.
Offering—Tem¬
porarily deferred.
:

if Central Illinois Public Service Co. (6/15)
May 24 filed $5,000,000 of first mortgage bonds, series
F, due June 1, 1984. Proceeds—To finance part of con¬
struction program. Underwriters—To be determined by

competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc.
(jointly); Blyth & Co., Inc., Kidder, Peabody & Co. and
Merrill Lynch, Pierce, Fenner & Beane (jointly); Leh¬

Newport, Del.
May 12 (letter of notification) 5,467 shares of class A
non-voting common stock to be offered first to stock¬
holders at $18 per share; then to public at $20 per share.
Proceeds
To improve and expand water distribution
system. Office—501 Newport & Gap Pike, Newport, Del.
Underwriter—Laird, Bissell & Meeds, Wilmington, Del.
Co.,

—

Associated Oil & Gas Co.,

Houston, Texas

stock

one

preferred share for each 50 shares

new

stock

common

held

and

one

May 20 on the basis of one new share for each six shares
held; rights to expire on June 7. Price—$14 per share.
—

vending field.
York.

extend

activities

the

merchandise

NEW
June

(White,

cents), to be offered in units of two shares of preof common stock to each present
holder of four shares of common stock. Price—$280 per

Of¬
Hillgrove, Western Springs, 111. Underwriter—

unit. Proceeds—For expansion and working capital.

(Central

if Barnesville Rural Telephone Association
May 27 (letter of notification) 8,000 shares of common
stock. Price—At par ($5 per share). Proceeds—For gen¬
purposes.

Office

—

Barnesville,

Minn.

Underwriter—None.
Basin

Natural

• Brandy wine Raceway Association, Inc.
April 28 filed 20,000 shares of capital stock (par $1)
and $200,000 of 6% subordinated notes due June 1, 1964
being offered in units of five shares of stock and $50 of

notes to stockholders of record May 19, 1954, on the basis
of one unit for each 50 shares of stock held. Rights will
on

June

Price—$100

per

unit.

Louis

Co.;

Weld

Price—At market

(Offering

Rodman

Childs

Securities

Co., Inc., and Laird, Bissell & Meeds,
both of Wilmington, Del., and Harrison & Co., Phila¬
delphia, Pa.

and

Dempsey-Tegeler & Co.;

A. G.

Edwards & Co.)

if Connecticut Light & Power Co.
May 25 filed 590,290 shares of common stock (no parstated value $10.0625 per share), to be offered for sub¬
scription
on

June

by commoin

For construction

Consol.

April

date

new

set.

Consumers Pov/er Co.

(6/2)

May

1984.

Price—To be not less favorable to company than a

filed

$25,000,000

first

mortgage

bonds

due

CALENDAR
Fuel

Co.

900,000

(Bids

iVickers

Central

(A.

EDT)

a.m.

Allyn & Co.

Oil &

Gas

(J.

Illinois

Inc.)

187,791

Gulf

States

toJ

$299,998

Securities

(A.-G.

Co.)

Bonds

Co
EDTi

a.m.

(Greenfield

Electric

Preferred

Common

Harriman

Ripley

Common
be

stockholders—may

Stroud

underwritten

40,000 shares

Inc.)

Co.,

Jersey Central Power & Light. Co
(Bids

Lil.y.-Tulip

$3,000,000

Cup

Bonds

$6,000,000

EDT)

a.m.

Common

Corp

Common

Co.,

Inc.)

(Lehman

Vanadium

88,000

Inc.)

Co.,

Debs.

Brothers)

(Kidder, Peabody

(living

Hoffman

Debentures

& Co.)

(Blyth

Radio

Co.,

Inc.

(Wednesday)

June

Common

800.000

Common

Corp

William R. Staats & Co.) 130.000

and

June 7

(Monday)
Common

stockholders—no underwriting)

Lynch Carrier Systems, Inc
(P.

Brooks

Staats

Inc.)

Gulf

Inc.)

(Lehman

250,000

Co.)

Weeks;

(Bids

Common

Panhandle

$600,000

CDT)

Merritt-Chapman

$20,000,000

(The

iBids
.

Boston

Corp.)

„

$25,000^000

(Friday)

& Scott

Common

Corp.—

underwriting)

about 231.432 shs.

Bonds
be

invited)

July 12
Debentures

United

Gas

$16,000,000

(Monday)

Improvement
(Bids

$100,000,000

(Tuesday)

•

(Wednesday)

of America
First

Duquesne Light

Peabody
/■',

Co.

.Debentures

Line Co

invited)

$6,000,000

invited)

stockholders—no

June

Common

June
Aluminum

$10,000,000

(Offering to stockholders—underwritten by Kidder,
& Co.1) 213,261 shares

Cleveland

...Bonds

Utilities, Inc

■"

$10,000,000

..Preferred

Pipe

June
Debentures

a.m.

EDT)

(Wednesday)

Eastern
(Bids

Gas & Electric Co

(Bids

a.m.

Duquesne Light Co.—

(Offering

Southwestern

(Tuesday)

Bonds
11

June 23

and First

(Tuesday)

Brothers)

Co
(Bids

Common

Hornblower

Fruehauf Trailer Co.
-

Power

Common

Co.;

June 8

..Bonds

...

$25,000,000

invited)

$490,000

Co.,

June

$250,000

Inc.)

Co.,

Rothchild

(Bids

$500,000

Debentures

Co.,

(Monday)

Tennessee Gas Transmission Co.

Light Co., Ltd

shares;

$5,000,000

June 21

(Offering

Common

Rice & Co.) $475,000

$5,000,000

Corp. of America

Hilo Electric

$275,000

Engineering Co

Scudder Fund of Canada, Ltd

Weeks)

Hornblower

and

Inc.

Co.

Western Plains Oil & Gas Co

(Blyth

$24,000,000

(Offering to stockholders—Underwritten by Blyth & Co.. Inc.)

Mesa 'Uranium

Reliance

Chicago

Common

100,000 shares

Organ ,Co

Becker

iOffering

Debentures
Co.)

Tool

Weeks)

Utilities Co

$5,042,300

Machine

Hercules Cement Corp
Preferred

Fibers, Inc

United

...Bonds

Preferred

$58,500,000

Inc.; The First Boston Corp.; and Coffin & Burr, Inc.)

(McCormick

$5,000,000

114,954 shares

...

(Offering- to stockholders—underwritten by

Grand

Service
invited)

(B|ids 11:30 a.m. EDT) $16,000,000

(Thursday)

Weld

(Bids

Gulf States

..Common

American Cyanamid Co

Glass

$760,000

(Tuesday)

$249,000

Corp.)

Hammond

Co.

Utilities

•

Common

R. Williston & Co.)

(White,

Brothers)

(Hornblower &

Common

Development Corp

June

Common

Public

Giddings & Lewis

$25,000,000

Corp

(McGrath

$12,000,000

Bonds

Merritt-Chapman & Scott Corn
Nortex

Debentures

Corp.)

United States Sulphur & Chemical Corp.__CommOn

June

Boston

stockholders—Drexel & Co. and Morgan Stanley
will be dealer-managers) 944,952 share.;

7,127

(Thursday)

Supply Co
First

(Bids

(L.

Edison Co.

Common

underwriting)

Transportation Development Corp

offices

p.m.

filed

(Offering

Common

Co.)

Power

California

San Francisco

share for each

one new

per
share.
Proceeds—
Underwriter.—None.

program.

(Wednesday)

(Allen

Consumers

(William

Private Wires to all

stockholders of record

1, 1954, in the ratio of
held.
Price—$12.75

Philadelphia Electric Co

Metropolitan

Southern Nevada Power Co

Philadelphia

111.

Stores, Inc., Jacksonville, Tex.
April 26 (letter of notification) 5,000 shares of class A
common stock (no par).
Price—$13 per share. Proceeds
—For working capital. Underwriter—Moroney, Beissner
& Co., Houston, Tex., and Eppler, Guerin & Turner,
Dallas, Tex.

$300,000

Associated Oil & Gas Co

(P.

Pittsburgh

Chicago,

Renshaw,

(The

Lynch Carrier Systems, Inc

Boston

(estimated at $8.8712 per sh.).
Nagels, President. Underwriter—

Food

Mountain

...-Preferred

stockholders—no

Proceeds—To

current liabilities, and for expansion and improve¬
ments, etc.
Office—Wilmington, Del.
Underwriters-

New York

Earl

Proceeds—To

$2,500,000

Co.)

New Orleans Public Service Inc

pay

Laird

Elgin Ry., Wheaton, III.
(letter of notification) 5,000 shares of common

June 10

Central Maine Power Co

Gas

Corp., Santa Fe, N. Mex.
Dec. 23 (letter of notification) 748,000 shares of commoc
stock (par five cents). Price—40 cents per share. Pro¬
ceeds—To acquire properties and leases. Office — Blatl
Bldg., Santa Fe, N. M. Underwriter—Hunter Securitiei
Corp., New York.

expire

ISSUE
Common

Republic Co. Inc.;

St.

Shawano

corporate

Underwriter—None.

if Chicago, Aurora &

(Tuesday)

Missouri Telephone Co

eral

June 2

fered and eight shares

None.

preferred

10 shares of 6% preferred stock held on
4; rights expire June 14. Price—To be supplied

effective May 20.

^ Automatic Devices Co., Inc.
May 18 (letter of notification) 630 shares of preferred
stock (par $100) and 2,520 shares of common stock (par

fice—714

for each

June 3

Underwriter—Glore, Forgan & Co., New

Statement

new

Inter-Canadian Corp.

April 30 filed 77,706 shares of common stock (par $5)
being offered for subscription by stockholders of record

Proceeds

tal.

(6/2)

America

Cherokee Industries, Inc., Oklahoma City, Okla.
May 10 filed 5,000,000 shares of class B non-voting com¬
mon stock (par 1
cent). Price—$1 per share. Proceeds—
For construction, operating expenses and working capi¬

conditions.

Bear, Stearns & Co. (jointly); Salo¬
Hutzler; Equitable Securities Corp.; The
Corp. and Central Republic Co. Inc. (joint¬
ly). Bids—Planned for June 15.
&

New York.

Co.

proceeds—To reduce bank loans. Un¬
Ripley & Co. Inc. and The First
Boston Corp., both of New York; and Coffin & Burr,
Inc., Boston, Mass.

the basis of

Bros.

bank loans, for development of properties and for
general corporate purposes. Underwriter—Allen & Co.,
Canteen

REVISED

if Central Maine Power Co. (6/3-4)
May 20 filed 50,423 shares of convertible preferred stock
(par $100) to be offered for subscription by holders of
outstanding common stock and 6% preferred stock on

Brothers and

First Boston

pay

Automatic

ITEMS

of New York, Inc.
$50,000,000 of first and refunding mort¬
gage bonds, series K, due May 1, 1984. Proceeds—To be
applied towards cost of redeeming $27,982,000 New York
Steam Corp. first mortgage bonds and $25,000,000 West*Chester Lighting Co. general mortgage bonds.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley
& Co.; The First Boston Corp.
Offering-^-Originally set
for May 11, but has been postponed because of market

May 12 filed 900,000 shares of capital stock (par 10).
Price—To be supplied by amendment. Proceeds—To re¬

•

derwriters—Harriman

stock.

California Electric Power Co.

;

ISSUE

by amendment,

May 18

mon

of capital stock (par $100).
Price—$150 per share. Proceeds — To increase capital
and surplus. Underwriter—None.
Water

None.

man

Mo.

March 17 filed 20,000 shares

Artesian

if Broadway-Hale Stores, Inc., Los Angeles, Calif.
May 20 (letter of notification) an undetermined number
of comhion shares
(par $10) to be issued under em¬
ployees stock purchase plan. Proceeds—None. Office—
401
S.
Broadway, Los Angeles, Calif.
Underwriter—

April

N. Y.

American Coffee-Matic Corp.,

Industries Corp.
(letter of notification) 3,750 shares of capital
stock.
Price—At market ($2 net to seller).
Proceeds—
To Kay L. Rockey, the selling stockholder. Underwriter
—Stubner & Co., New York.
British

April 23

ADDITIONS

SINCE
•

1954

...Bonds

invited)

$10,000,000

Volume 179

3V8%

Number 5328

basis.

The Commercial and Financial Chronicle

Proceeds—To

redeem

105.25%..a

preferred

stock outstanding on the basis of two new
shares, plus $4 per-share in cash for.each'-5.2^% shaye.
held.
The exchange offer will expire on July 1.
The

arriount

of outstanding 3%% bonds due 1983.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Morgan

Stanley
Co.; Kuhn, Loeb & Co., and Union Securities Corp.
(jointly): Harriman Ripley & Co. and The First Boston
Corp. (jointly). Bids—To be received up to 11 a.m.
(EDT) on June 2 at 20 Pine St, New York 5, N. Y.

remaining 30,000 shares of 5% preferred stock were
offered publicly at par by Paine, Webber, Jackson &
Curtis and Stone & Webster Securities Coyp. and asso¬
ciates. Proceeds—To retire 5.2% preferred stock, to re¬
pay bank loans and to pay notes due to the General
Telephone Corp., its parent.

Cornbelt Insurance Co.,
Freeport, III.
March 17 filed 300,000 shares of common stock
(par $1).
Price—$3 per share. Proceeds—For investment. Under¬
writer—None.

Cornell-Dubilier Electric Corp.
(letter of notification) 1,666
stock. Price—At market

April 7

it Georgetown-on-the-Aisle Club
v
May 21 (letter of notification) 200 shares of 6% nonPrice — $50 per share. Pro¬
ceeds—To operate a theatre club for entertainment of
its members. Address—c/o C. B. Heinemann, Jr., 74011th St., N. W., Washington, D. C. Underwriter—None.
cumulative preferred stock.

shares of

(approximately $30

common

share).
Proceeds
To Octave Blake, the
selling stockholder.
Underwriter—Pyne, Kendall & Hollister, New York.
per

—

•

it Giddings & Lewis Machine Tool Co. (6/15)
May 21 filed 100,000 shares of common stock (par $2),
of which 60,000 shares are to be sold by the company and
40,000 shares for the account of a stockholder. Price—

Decca

Records, Inc., New York (6/1)
May 10 filed 954,474 shares of capital stock (par 50
cents) being offered in exchange for Universal Pictures
Co., Inc., common stock on the basis
of Decca stock for each Universal share.
1 owned 672,996 shares

IV\

Decca

hands

Also there

approximately

were

warrants

1,783

Soliciting Agent—Georgeson & Co., New York.
it Duquesne Light Co. (6/23)
May 26 filed 120,000 shares of preferred stock (par $50).
program.
Underwriters—To
by competitive bidding. Probable bidders:
Corp.; Lehman Brothers; Blyth & Co.,
Peabody & Co., Merrill Lynch, Pierce,

Price—At par (50 cents per share). Proceeds—
development and exploration expenses. Office—205
Bridge St., Winnemucca, Nev. Underwriter—None.
•

Proceeds
Salt

par

($1

share).^

per

operating
Hudson St., New York 14, N. Y.
Bliedung, Washington. D. C.
Financial

•

Jan.

$20,000,000

debentures

due

1, 1974. Price — To be supplied by amendment.
Proceeds—To refund $16,070,000 of present senior funded
debt and to increase general
operating funds. Under¬

writer—Lehman Brothers, New York.
Gamma Corp., Wilmington, Del.
Feb. 2 (letter of
notification) 140,000 shares of common
stock (par 10 cents). Price—$1.50
per share. Proceeds—
For inventory, capital expenditures and
working capi¬
>

tal.

Office—100 West 10th Street,
Wilmington, Del.
derwriter—Sheehan & Co., Boston, Mass.

Un¬

General Credit

Corp., Miami, Fla.
(letter of notification) 74,990 shares of capital

stock (par $1). Price—$4 per share. Proceeds—For
work¬

Office—799 N. W. 62nd Street, Miami, Fla.
Underwriter—Murphy & Co.. Miami, Fla.
General

—

Gas

selling

common

stock

(par $5).

Proceeds

—

stockholders.

Underwriter—Kidder, Peabody
Co., New York. Offering—Postponed indefinitely.
General

Public Utilities

Corp,
' 1
April 15 filed 606,423 shares of common stock (par
$5)
being offered for subscription by stockholders/at rate
of

one

with

new

share for

Proceeds

—

subsidiaries.

invested

per

May

per

corporation's

Beane will act

General Stores

held

Price—$28.50
in

but

12;

share.

domestic

Merrill

Lynch,
clearing agent.

Corp., New York

March 8 filed 300,000 shares of

Price—SI.37^

Underwriter—None,

Pierce, Fenner &
-

each

rights to expire June 2.

share.

of acquisition of Ford

common

stock

(par $1).

Proceeds—To pay part of cost

Hopkins Co., Chicago, 111.

Under¬

writer—A. C. Allyn & Co.,
Inc., Chicago, 111.
•

General Telephone Co. of

Kentucky
May 7 filed 46,000 shares of 5% cumulative preferred
stock

(par S50), of which 16,000 shares are being offered
exchange for the 8,000 shares of 5.2% cumulative

stock

(par $1)

common

and 20,000 rights to purchase one share

at $5 per share as a unit.

Price—$5 per share. Proceeds
capital, etc. Office—35-10 Astoria Blvd.,
Long Island City 3, N. Y. Underwriter—None.
—For working

Hilo Electric Light
Co., Ltd., Hilo, Hawaii (6/7)
May 10 filed 25,000 shares of common stock to be offered
for subscription by stockholders of record June 5 on
the
basis

one

scribed

par

($20

and

for

each

four

offered

share).

per

additions

Proceeds

held.

employees.
—

improvements.
May be named by amendment.

Unsub¬

Price

—

bank loans

repay

and

Underwriter

—

it Hoffman Radio Corp., Los Angeles, Calif. (6/16)
19 filed 130,000 shares of common stock (par 50

May

cents).

Price—To be supplied

by amendment. Proceeds
equipment and working capital.
Underwriters—Blyth & Co., Inc., San Francisco, Calif.,
and New York, N. Y.; and William R. Staats &
Co., Los

—For

new

plant and

Angeles, Calif.
•

Indian

Head

Mills, Inc.
May 6 (letter of notification) 59,000 shares of common
stock (par $1) being offered for
subscription by com¬
mon stockholders of record
May 19 on the basis of one
share for

each four shares held (with an
oversubscrip¬
privilege); rights to expire on June 7.
Of these.^
shares, 9,000 are to be first offered to employees. Price
—$5 per share, Proceeds—For working capital. Under¬

tion

writer—Blair, Rollins & Co. Inc., New York.

Inspiration Lead Co., Inc., Wallace, Idaho
May 4 (letter of notification) 2,000,000 shares of class B
stock (with debenture warrants).
Price —15 cents per
share.

Proceeds

For mining development.
Office —
Wallace, Idaho. Underwriter
Mine Fi¬
nancing Inc., West 909 Sprague Ave., Spokane 10, Wash.

106

—

King St.,

—

Inter-Canadian Corp., Chicago, III.
(6/1)
April 19 filed 100,000 shares of common stock (par $1).
Price—$25 per share. Proceeds—For venture or
venture investment situations in

semi-,

Canada. Underwriter—

White, Weld & Co., New York.
Jersey Central Power & Light Co. (6/15)
May 13 filed $6,000,000 first mortgage bonds due June 1,
1984. Proceeds—For construction
program. Underwriters
be determined by competitive
bidding. Probable

—To

bidders:

Glore,

Halsey, Stuart & Co. Inc.; White, Weld & Co.;
& Co.; Kidder, Peabody & Co.; Union

Forgan

Securities

Corp., Salomon Bros. & Hutzler and Merrill
Lynch, Pierce, Fenner & Beane (jointly); The First Bos¬
ton Corp.; Lehman Brothers.
Bids—Expected to be re¬
ceived up to

Uranium

c/o

Public

•

General

(EDT)

a.m.

June 15 at 67 Broad St.,
Corp., New York, N. Y.

Utilities

Kansas-Nebraska

Natural

Gas

Co.,

Inc.

April 28 filed 85,090 shares of common stock (par $5)
being offered for subscription by common stockholders
on

the

basis

one

new

for

each

held

record

share.

loans

and

new

construction.

Underwriter—To

determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and
White, Weld & Co. (jointly); Merrill Lynch, Pierce,
Fenner & Beane, Salomon Bros. & Hutzler and Drexel
& Co. (jointly); Equitable Securities Corp.; Union Secu¬
rities Corp. Bids—Expected to be received up to 11 a.m.

(EST)

June

22.
Utilities

Co.

—

$105, $105, and $105.75, respectively.
Underwriter—To
be determined by competitive bidding.
Probable bid¬
ders:
Stone
&
Webster
Securities
Corp.;
Lehman
Brothers and Equitable Securities Corp. (jointly); Kuhn,
Loeb & Co.; Glore, Forgan & Co. and W. C. Langley &
Co. (jointly). Bids—Tentatively expected to be received
up
to 11:30 a.m. (EDT) on June 15 at The Hanover
Bank, 70 Broadway, New York, N. Y.
11

Gulf States

May

Stockholders will
approving preferred stock financing.

Utilities Co.

(6/15)

filed

$24,000,000 of first mortgage bonds due
1, 1984. Proceeds—To redeem $10,000,000 of 3%%
first mortgage bonds due 1981 and $10,000,000 of 3%%
first mortgage bonds due 1983,i and for general corpo¬
rate purposes.
Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; Lehman Brothers; Merrill Lynch, Pierce, Fen¬
&

ner
mon

Loeb

Beane

and

White,

Weld

Bros. & Hutzler and Union
&

Co.

and

Co.

(jointly);

Salo¬

Securities Corp.; Kuhn,

Allyn & Co., Inc. (jointly); Lee
M. Loeb, Rhoades & Co.
(jointly); Stone & WebsteriSecurities Corp. Bids—Ten¬
tatively expected to be received up to 11 a.m. (EDT)

Higginson

June

Corp.

and

The

Carl

Hanover

Bank,

70 Broadway,

New

York, N. Y.
Hammond Bag & Paper Co., Wellsburg, W. Va.
May 13 (letter of notification) 15,000 shares of common
stock
Price
ment

to
—

and

—None.

offered

for

subscription by stockholders.
share). Proceeds —For equip¬
inventory, and working capital. Underwriter.
1

At par

($20

Proceeds—For property, additions. Underwriters
& Co., Chicago, 111., and The First Trust

Co. of

Lincoln, Neb.

Kendon

Electronics Co., Inc.
(letter of notification) 150,000 shares of com¬
stock (par 10 cents).
Price—25 cents per share,

April 21
mon

Proceeds—For
purposes.

working capital and general corporate
Office —18 Clinton Street, Brooklyn, N. Y.
Century Pioneer Securities Co., New

York, N. Y.

(6/15)

May 14 filed 160,000 shares of preferred stock (par $100).
Proceeds
To redeem 50,000 shares of $4.50 dividend
preferred stock, 60,000 shares of $4.40 dividend preferred
stock, 1949 series, and 50,000 shares of $4.44 dividend
preferred stock at the prevailing redemption prices of

vote June

May 21 (with an oversubscription privilege).
Employees to be given right to purchase unsubscribed
shares.
Rights will expire on June 2. Price—$23 per

Underwriter—20th

June

Corp., Baton Rouge, La.

To be supplied by amendment.

Heliogen Products, Inc.
May 10 (letter of notification) 20,000 shares of

—Cruttenden

ing capital.

Price

Western

Gulf States

March 19 filed 100.000 shares of

N. Y.

bank

(6/8)
fund

selling stockholders. Underwriters—A. G. Becker & Co.
Inc., Chicago, 111., and Hornblower & Weeks, New York,

• Gulf Power Co. (6/22)
May 26 filed $10,000,000 of first mortgage bonds due
1984. Proceeds—To refund $6,593,000 of outstanding first
mortgage 4V8% bonds due 1983 and for repayment of

Office—421

June

March 25

1957

Co., Denver, Colo.
May 10 (letter of notification) 2,000,000 shares of com-,
mon stock
(par 100). Price—150 per share. Proceeds—
For mining expenses. Office—-704 Equitable Bldg., Den¬
ver, Colo. Underwriter—J. W. Hicks & Co., Denver, Colo.

Underwriter—Carl J.

sinking

Bldg.,
& Co.,

to retire $403,100 of collateral trust
100% and accrued interest. Under¬

be used

due

Great

Credit Corp.* New York

filed

Underwriter—Greenfield

share.

writer—None.

Proceeds—For

expenses.

it First Investors Corp., New York
May 24 filed $5,000,000 of Single Payment and Periodic
Payment Plans. Proceeds—For investment.

May

10 cents).
Price—25 cents per
mining expenses.
Office — Felt

com¬

Proceeds—From sale of stock, together with other

bonds

filed

Fruehauf Trailer Co.

For

City, Utah.

funds,

new

250,000 shares of 7% cumulative sinking
fund preferred stock. Price—At
par ($2 per share). Pro¬
ceeds—For working capital. Underwriter—E. J. Foun¬
tain & Co., Inc., New York.

•

Lake

ment.

Family Digest, Inc.
April 9 (letter of notification) 142,875 shares of class A
and

(par

—

1,100,000 shares of

it Grant Building, Inc., Pittsburgh, Pa.
May 21 filed 22,069 shares of common stock (par $1) to
be offered for subscription by common and
class A
common stockholders.
Price—To be supplied by amend¬

share for each 15 shares
held; rights to expire on June
9, 1954. Price—$18.50 per share. Proceeds—For working
capital. Office—Long Branch Ave., Long
Branch, N. J.
Underwriter—None.

capital

(6/3-4)

Inc., New York.

Inc.
(letter of notification) 7,500 shares of common
(par SI) being offered for subscription by stock¬

Price—At

stock

mon

Electronic Associates,

stock.

Uranium Co.

Grand Mesa

May 15 (letter of notification)

April 19

operating

•

Corp. (jointly); Harriman Ripley & Co.
Bids—Expected i to be received on June 29.

one

Co.,
.

For

Securities

the basis of

stock.

• Duquesne Light Co. (6/29)
May 26 filed $16,000,000 of first mortgage bonds due
July 1, 1984. Proceeds—For construction program. Un¬
derwriters^—To be determined
by competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; The First
Boston Corp.; Glore, Forgan &
Co.; Kuhn, Loeb & Co.,
Union Securities Corp. and A. C.
Allyn & Co., Inc.
(jointly): White, Weld & Co.; Drexel & Co. and Equit¬

general

Producers, Inc., Winnemucca, Nev.
May 19 (letter of notification) 100,000 shares of common

White, Weld & Co. (jointly); Kuhn,
Loeb & Co. and
Smith, Barney & Co. (jointly). Bids—
Tentatively expected to be received on June 23.

May 10, 1954

deben¬
amend¬

it Gold

Fenner & Beane and

holders of record

Under¬

—

The First Boston

stock

company,

• Glitsch
(Fritz W.) & Sons, Inc.
May 3 filed 170,000 shares of common stock (par $2).
Price—$11.50 per share.
Proceeds—To selling stock¬
holders.
Office
Dallas, Texas. Underwriters — A. C.
Allyn & Co., Inc., Chicago, 111., and The First Southwest
Co., Dallas, Texas. Offering—Expected today (May 27).

Proceeds—For construction

Inc.

Proceeds—To

for working capital.
Weeks, New York.

and

June 30.

able

loans

•

purchase of 79,873 shares of Universal stock at
per
share held by others than Decca, and
any
Universal stock acquired upon exercise of such
warrants,
may be
tendered for exchange. Offer will expire on

Kidder,

by amendment.

bank

Glass Fibers, Inc., Toledo, Ohio (6/3)
May 13 filed $3,000,000 convertible sinking fund
tures due June 1, 1969. Price—To be supplied by
ment.
Proceeds—To repay bank loans and for
corporate purposes. Underwriter — McCormick
Chicago, 111.

other

outstanding for

$10

Inc.;

reduce

writer— Hornblower &

the

be determined

be supplied

May

(66.2%) of Universal stock, with

344,338

stockholders.

(2355)

per

it Hammond Organ Co., Chicago, III. (6/15)
May 24 filed 114,954 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds — To

it Kentley Corp., Grand Rapids, Mich.
May 17 (letter of notification) 1,783 shares of class B
common*stock to be issued to employees under the cor¬
poration's stock bonus plan (about 10

persons involved).
book value
($1.14747). Office—1425 BurlinAve., S.W., Grand Rapids, Mich. Proceeds
For

Price—At
game

—

general

corporate

purposes.

Underwriter—None.

it Kirschner Oil

Co., Inc., Denver, Colo.
(letter of notification) 28,000 shares of common
stock. Price—At par ($1 per share). Proceeds—To drill
May 19

well. Officer—756 South Lopan
writer—None.

St., Denver, Colo. Under¬

it Langendorf United Bakeries, Inc.
May 12 (letter of notification) 2,500 shares of common
stock (par $1). Price—At market (estimated at $28
per
share). Proceeds—To a selling stockholder. Office—1160
McAllister

St., San Francisco, Calif.

Underwriter—First

California Co., San Francisco, Calif.

Las

Vegas Continental Hotel, Inc.
May 17 filed 500,000 shares of preferred capital stock
(par $9.90) and 500,000 shares of common capital stock
(no par—100 stated value) to be offered in units of one
preferred and one common share. Price—$10 per unit.
Proceeds—To

build

and

operate

luxury hotel and for
Underwriter
LaFortune, Las Vegas, Nev.

working capital.
—Lester

Office—Las Vegas, Nev.

it Leeds & Northrup Co., Philadephia, Pa.
May 24 filed 4,529.5 employees' shares and 2,381 partici¬
pating shares to be offered to employees.
I
it Lily-Tulip Cup Corp. (6/15)
May 25 filed 88,000 shares of common stock (no par) to
be offered for subscription by stockholders of record
about

June

the

basis of

one

new

for

each

eight shares held; rights to expire June 29. Price,—To
be supplied by amendment.
Proceeds—For general cor¬
porate

purposes.

Underwriter—Blyth & Co., Inc., New

York.
,

.Continued

j **

page

The Commercial and Financial Chronicle

(2356.)

.Thursday, May 27, 1954

each $1,000 of

basis of 0.135
share for each held; rights to expire on June 24. Of the
total number of shares outstanding, 1,059,901 (or
95.255%) are owned by Middle South Utilities, Inc. who
may subscribe for an additional 143,086 shares. Price—
$25 per share. Proceeds—For property additions and im¬
provements. Office—217 Baronne St., New Orleans, La.

taik stock at $3.75 per

Underwriter—None.

Continued

Lynch Carrier Systems, Inc. (6/7-8)
May 4 filed $250,000 of 6% sinking fund debentures,
series A, due June 1, 1969 (with capital stock purchase
warrants attached—each warrant to entitle purchaser of
debentures to acquire 150 shares of capishare through May 1, 1962). Price
—100% and accrued interest for debentures.
Proceeds
—To establish sales application engineering offices in
selected cities to aid effort of company's national dis¬
tributors: for machinery and equipment; for general
funds to continue research and development; and to pro¬
vide additional working capital. Business — Designing
and manufacturing of electronic communications sys¬
tems.
Office—San Francisco, Calif. Underwriter—P. W.
Brooks & Co.,

($25

voting

certificates

trust

ploratory drilling and development, in State of Israel,
and for operations and expenses. Underwriter—To be
r.amed by amendment.

•

Inc.,

Hospital,

May

Mission Indemnity Co., Pasadena, Calif.
29 filed 600,000 shares of common stock

first to stockholders and

be offered

eral public.

Price—$2

April

Public

per

Co.

gen¬

•

50,000

(par $100).

Telep'ionb Co., Columbia, Mo. (6/1)
May 13 (letter of notification) 12,000 shares of 6% cum¬
ulative preferred stock.
Price—At par ($25 per share).
expansion.

Underwriters—Central

Re¬

public Co., Inc., Chicago, 111.; and Dempsey-Tegeler &
Co., Metropolitan St. Louis Co. and A. G. Edwards &

Sons,I all of St. Louis, Mo.

filed

257,338 shares of

stock

common

(par $1).

Price—At the market price then prevailing on the New
York

Stock

Exchange, or through special offerings or
secondary distributions. Proceeds—To Lehman Borthers
(400 shares); partners of Lehman Brothers and members
•$»f their immediate families (150,458); and The Lehman
Corp. (106,480). Underwriter—None. No general offer
planned.

it Mountain Fuel Supply Co. (6/10)
May 20 filed $12,000,000 of debentures due June 1, 1974.
Price—To be supplied by amendment. Proceeds—To repay bank loans and for new construction and acquisition

properties.

Underwriterj.— The First Boston Corp.,

New York.

if Mountain

Uranium, Inc.
May 18 (letter of notification) 30,000,000 shares of

com¬

stock. Price—At par

mon

(one cent per share). Proceeds
mining expenses. Office—1117 Miner St., Idaho
Springs, Colo. Underwriter—Underwriters, Inc., Sparks,
Nev.
/•
^
..

Natick
March

Industries, Inc., Natick, Mass.
(letter of notification) 58,800 shares of

com¬

(par $1), Price—$5 per share. Proceeds—For
working capital, etc. Underwriter—J. P. Marto & Co.,
Boston, Mass.

^National Negro Television, Theatre & Motion
Pictures Industries, Inc.
(N. Y.)
March 18 (letter of notification) 100,000 shares of 4%
cumulative preferred stock and 40,000 shares of common
stock. Price—At par ($1 per share—in units of not less
io shares).

klan

Proceeds—For working capital. Office
Carnegie Hall, New York 19, N. Y. Underwriter—

—605

•

approximately $24,000,000.

Proceeds—To erect

penses.

Corp. (Fla.)
(6/2)
(letter of notification) 83,000 shares of com¬
stock (par $1). Price—$3 per share. Proceeds—For

mon

development of land and planting Ramie and for work¬

Underwriter

capital.

ing

Proceeds—To drilLfor oil and gas on
Office—401 Zook Building, Denver

—

McGrath

Securities

Corp.,

offset

locations.

New \ ork.

Colo.

Underwriter—None.

if Simplified Farm Record Book Co.
May 21 (letter of notification) $135,000 of 11-year 6%

Telephone & Telegraph Co.

Pacific

subordinated

May 7 filed 1,004,603 shares of common stock to be of¬
fered for subscription by common and preferred stock¬
holders in the ratio of one share for each seven shares
of

Development

April 23

(ietter of notification) 800,000 shares of com¬
mon stock
(par five cents) to be offered first to stock¬
holders.
Price—25 cents per share to stockholders; at
public.

III.

Address—P. O. Box 5110, Chicago 80, 111. Under¬

Shawano

Denver, Colo.

April 30

market to

For investment.

—

Brothers, New York.

May 20 (letter of notification) an undetermined number
of shares of common stock to be offered to employees.
Price—At less than market. Proceeds—For general ex¬
writer—None.

Oil Co.,

Proceeds

& Co., Chicago,

(G. D.)

if Searle

of common

Office—725

oxide.

(6/3)

initial investment funds of

provide the company wth

ynderwriter—None.

Scudder Fund of Canada, Ltd.

421, Bis¬

May 12 filed 800,000 shares of common stock. Price—To

common

and/or preferred stock held.

($100 per share). Proceeds—To
ings.. Underwriter—None.

reduce

stock

debentures

and

2,025

common

Price—Of debentures, at par; and of
stock, $7.50 per share. Proceeds—To finance expansion
of business into new territory.
Office—P. O. Drawer
1210, Chapel Hill, N. C. Underwriter—G. H. Walker &
Co., Providence, R. I.

Price—At par
bank borrow¬

$1).

(par

if Southern Great Basin
Las Vegas, Nev.

Inc. of Republic of Panama
certificates for 1,-

March 30 filed American voting trust

Oil

May 17 (letter of notification)

000,000 shares of common stock (par one cent). Price—
To be supplied by amendment.
Proceeds—For explora¬

stock. Price—At par

($1

& Gas,

Inc.,

50,000 shares of

operations and expenses. Underwriter—To be named by
amendment.

•

Southern Nevada Power Co.

May 17 filed 250,000 shares of common stock

tures, notes and preferred and common stock heretofore
and holders thereof are to be offered the right to

Nev.

rate

one

Office—Las Vegas,
& Co., Los An¬
geles, Calif.; Hornblower & Weeks, New York, and First
California Co., Inc., San Francisco, Calif.

Phoencx

Budget Loans, Inc.
of notification) $200,000 of 512% sub¬
ordinated debentures dated May 15, 1954, due 1956 to,
1965, inclusive.
Price — 97.98% to 100%, according to
maturity.
Proceeds—For working capital, etc. Office—
Minneapolis, Minn. Underwriter — M. H. Bishop & Co.,
Minneapolis, Minn.
(letter

cago

per

(6/8)

program.

Underwriter—To

6, 111.

1964, to be sold to pea growers located in East¬
Washington and Northern Idaho. Price—100% of

June 15,
ern

principal amount. Proceeds—To improve facilities and
working capital.
Underwriter—None.

for

lative

ic New Britain Machine Co., Now 3ritain, Conn.
May 20 (letter of notification) 5,000 shares of common

Co.

Spokane Seed Co., Spokane, Wash.
March 8 filed $600,000 of 5% convertible debentures due

Phoenix Budget Loans, Inc., Minneapolis, Minn.
May 4 (letter of notification) 4,000 shares of $1.50 cumu¬

None.

Electric

loans and
deter¬
mined by competitive bidding.
Probable bidders: Halsey, Stuaft & Co. Inc.; Equitable Securities Corp.; Leh¬
man
Brothers; Blyth & Co., Inc.; Kuhn, Lceb & Co.;
Merrill Lynch, Pierce, Fenner & Beane and Union Se¬
curities Corp. (jointly); Harriman Ripley & Co. Inc.;
The First Boston
Corp.
Bids—To be received up to
11 a.m. (CDT) on June 8 at 20 No. Wacker Drive, Chi¬
construction

for

Staats

Proceeds—To repay $7,500,000 bank

due 1984.

share for each

May

Gas

May 14 filed $10,000,000 first mortgage bonds, series F,

held; rights to subscribe on June 26. Price—
supplied by amendment. Proceeds—For construc¬
Underwriter—None. Drexel & Co., Phila¬
delphia, Pa., and Morgan Stanley & Co., New York,
will act as Dealer-Managers.

Underwriters—William

Southwestern

new

shares for account of certain selling
—
To be supplied by amendment.

Price

Proceeds—For construction program.

(6/10)

200,000

stockholders.

May 19 filed 944,952 shares of common stock (no par)
to be offered for subscription by common stockholders
at the

and

pany

rescind their purchases.

June 7

(par $5),

of which 50,000 shares are to be sold for account of com¬

sold

com¬

(6/7)

People's Finance Corp., Denver, Colo.
March 23 filed 2,904 shares of 6% cumulative preferred
stock. Price—At par ($50 per share). Proceeds — For
general corporate purposes. Underwriter—None. Com¬
pany is also seeking registration of $164,000 of deben¬

of record

common

share). Proceeds—To

per

plete well. Underwriter—Jock Hemingway, Hemingway
Associates," Las Vegas, Nev.

tory drilling and development in State of Israel, and for

tion program.

stock

mon

prospecting and development. Address—Box
marck, N. D. Underwriter—None.

smelting plant to produce Wilcox Process
Peyton Bidg., Spokane, Wash,

operate

if Philadelphia Electric Co.

States

>—For

and
zinc

Pan-Israel Oil Co.,

Monterey Oil Co., Los Angeles, Calif.
Feb.

expire on June 8. Price—$38 per
property additions.
Underwriter

25 cents per share.

—

Conly,

Underwriter—William E.

Underwriter—Lehman

Price

stock.

Missouri

Proceeds—For

to make
Address—P. O. Box

if Schoonover Oil Development Co., Bismarck, N. D.
May 17 (letter of notification) 51,000 shares of common
stock.
Price—At par ($1 per share).
Proceeds—For

Proceeds—For

Oklahoma

shares of cumulative preferred
Price—To be supplied by amendment.
Proceeds—To redeem outstanding first preferred stock
($3,475,000), to repay $750,000 bank loans and the balarce
for construction
program.
Underwriter—Kidder,
l^eabody & Co., New York.
Offering — Postponed in¬
definitely.
filed

*i;ock

Neb.

if Northwest Refining & Chemical Co.
May 18 (letter of notification) 800,000 shares
.

Omaha,

Co.,

For operating expenses and

—

Longmont, Colo.

194,

Price—$100 per

share of each class of stock.

Business—Finance company.

Jr., Longmont, Colo.

—None.

share.

Service

Gas

one

Proceeds

unit.

basis of one new share for each nine
Unsubscribed shares to be offered to em¬

Rights

ployees.

Proceeds—To increase
Underwriter—None.

capital and surplus.
Missouri

(par 65

units ot

loans.

the

share.

Underwriter—None,

March

shares held

S ty'ay 17 filed 900 shares of common stock (no par). Price
i
—$1,000 per share. Proceeds—To erect a hospital in the
Borough of Paramus, N. J., and fcr working capital, etc.

cents)

Longmont, Colo.
April 19 (letter of notification) 1,150 shares of common
stock (no par) and 1,150 shares of 6% cumulative parti¬
cipating preferred stock (par $100) to be offered in

May 5 filed 365,400 shares of common stock (par $10)
being offered for subscription by common stockholders

N. Y.

Bronx,

Natural

Northern

...

Rio Grande Investment Co.,

Underwriter—H. C. Wainwright &

Mass.

Co.* (6/3)

Calif.

Co., Boston, Mass.

Altyn & Co. Inc., Chicago, 111., and New York, N. Y.
General

1, 1954, on the basis of one new
shares held. Price—At par

common

(letter of notification)

Boston,

& Engineering

$5,000,000 20-year debentures due 1974.
Price—To be supplied by amendment.
Proceeds—To
repay bank loans and for expansion program.
Under¬
writer—Blyth & Co., Inc., New York and San Francisco,

Proceeds—For general corporate pur¬
Office—Gibsonia, Pa. Underwriter—None.

St.,

(6/2-3)

May 14 filed 187,791 shares of common stock (par $12.50).
Price—To be supplied
by amendment.
Proceeds—To
Wilport Co., the selling stockholder. Underwriter—A. C.

Electric

filed

May

Feb.

1.000,000 shares of common stock (par one cent). Price
be supplied by amendment.
Proceeds—For ex¬

Midland

City, Utah.

Boston, Mass.
$80,000 of 5% notes due
1, 1974, and 2,000 shares of common stock (par
$10) to be sold in units of $400 principal amount of
notes and 10 shares of stock. Price—$500 per unit. Pro¬
ceeds—For actors' equity bond, royalties, land, construc¬
tion of theater and related expenses.
Office—60 State
Feb.

for

—To

Merritt-Chapman & Scott Corp.

five

(letter

stock (par 10 cents).

Proceeds—To complete

North Shore Music Theater, Inc.,

Republic of Panama
American

notification) 1,170,000 shares of
Price—25 cents per share.
plant, repay obligations and for
working capital.
Office—1820 N. Yellowstone, Idaho
Falls, Idaho.
Underwriter — Coombs & Co., Salt Lake
29

common

share).

per

poses.

Mediterranean Petroleum Corp., Inc.,
filed

Pumice, Inc., Idaho Falls, Idaho-^March

April 23 (letter of notification) 2,000 shares of common
stock to be offered for subscription by common stock¬
for each

,1;;

(par one cent).

Reliance

of common
Price—$1 per share. Proceeds—
For working capital in the acquisition, manufacturing
and distribution of products. Office—1511 Fox Building,
16th and Market Streets, Philadelphia, Pa. Underwriter
—A. J. Grayson, New York.
;/-;

stock

holders of record May

Corp.

May 4 (letter of notification) 300,000 snares

Pittsburgh Telephone Co.

North

Inc., New York.

York.

Product. Development

York.

—

March

•

^ Nortex Oil & Gas Corp. (6/2-3)
May 14 (letter of notification) 99,966 shares of common
stock (par $1). Price—$3 per share. Proceeds—For pay¬
ments to creditors, drilling and completion of well, and
working capital. Office — Fidelity Union Life Bidg.,
Dallas, Tex. Underwriter—J. R. Williston & Co., New

Lynch Carrier Systems, Inc. (6/7-8)
May 4 filed 140,000 shares of capital stock (par $1).
jprice
$3.50 per share.
Proceeds — To selling stock¬
holder.
Underwriter—P. W. Brooks & Co., Inc., New

•

stockholders of record June 1

common

from page 55

stock

(par $10) to be offered for subscription by em¬
ployees other than directors. Price—At average bid price

during month of April, which is about $24.98 per share.
Proceeds—For working capital and repayment of bank
loans.

Underwriter—None.

preferred stock, series A (no par).
Price—$24
share. Proceeds — For general corporate purposes.

Underwriter—M. H. Bishop & Co.,

Porta Co., Inc., Chestnut Hill, Mass.
April 8 (letter of notification) 640 shares of $6 cumula¬
tive preferred stock (no par) and 640 shares of common
stock (no par) to be offered in units of one share of
each

class

stock.

New

Mexico

For manufacture

Copper Corp.

April 4 (letter of notification) 600,000 shares of common
stock (par 25 cents).
Price—50 cents per share. Pro¬
ceeds—For mining expenses.
Office—Carrizozo, N. M.,
and 1211 E. Capital
St., Washington, D. C. Underwriter
—Mitchell Securities, Inc.,

A New

Orleans

Baltimore, Md.

Service Inc.
(6/1)
(letter of nobfication) 7,127 shares of common
(no par) to be offered lor subscription by minority

May 1.9
block
f
%

a
*<

J i

Jt .H-

5 '

per

of sporting goods.

Co., Inc., Boston,

unit.

Office

Underwriter

—

Bank

Trust

offered

Co.,

first

Westmoor

Road,

Rocky

River,

Underwriter—

None.

48 Moody

Streveli-Paterson Finance Corp.

Minot Kendall

Feb.

filed

640,000

shares of common

stock

(par 50

being offered in exchange for the $300,000 par
value
of
authorized, issued and outstanding capital

cents

ir Producers Corp., Bradford, Pa.
17 (letter of notification) 8,000 shares of
be

2694

Proceeds—
—

will be at the net asset value of the account).
finance the investment account.
Office—

Proceeds—To

Mass.

May

the price

common

stock of Streveli-Paterson Finance Co. on the basis
of

(a)

sharesj of Corporation stock for each of the 5,000
shares of 5% cumulative preferred stock (par $10) of

tel. stockholders of Producers

Bradford,

Pa., on a 1-for-l basis.
Proceeds—To purchase
Underwriter—None.

Price—At par ($2.50 per share).

the

property and erect building.

for each

Company and

(b)

of the 25,000

23 shares of Corporation stock
shares of $10 par common stock

Price—$100

St., Chestnut Hill, Mass.

stock

Public

if Stocking & Co., Inc., Rocky River, Ohio
May 18 (letter of notification) an unspecified number of
participating units for investment in Commodity Futures
Contracts.
Price—$1,000 per unit (after July 1, 1954,

Minneapolis, Minn.

■

i
'

J
•

■

rv;-»

/n;

Volume 179

Number 5328.. .The Commercial and Financial Chronicle
V;

-J

•

;

the

company. Offer expires Oct. 31.
Underwriter—
None.- Office—Salt Lake City, Utah. Statement effective

March 30.
j
Sun Oil Co., Philadelphia, Pa.
April 15 filed a maximum of 139,662 shares of common r
stock
(no par) to be offered for possible public sale
during the period July 1, 1954 to June 30, 1955. Price—)

market.

Proceeds—To

selling

stockholders.

writer—None. The shares will be sold

houses.

Sun Oil

Under¬

through brokerage
■■•-K
;7:

Co., Philadelphia, Pa.

April 15 filed 14,000 memberships in the stock purchase
plan for the employees of this company and its subsidi¬
aries and 146,100 shares of common stock
(no par), the
latter
representing the maximum number of shares
which it is anticipated may be purchased

by the trustees

:M'

(2357)

ceeds—Together with other funds, to be used-to build
pipeline. 'Underwriters—White, Weld & Co..and Union
Securities Corp., both of New York.
Offering—Post¬
poned indefinitely.

held.

Price—$10

Plains

the plan.

Underwriter—None.

cumulative

convertible

stock, of which 100,public and 50,000 shares to

Price—At par

($2 per share). Proceeds—For
Underwriter—Graham & Co., Pitts¬

working capital.
burgh, Pa.

States and

Gas

Rice

Three-In-One Gold Mines

Corp., Reno, Nev.
May 3 (letter of notification) 1,993,333 Vs shares of capi¬
tal stock (par one cent). Price—15 cents
per share. Pro¬
ceeds—For mining expenses.
Office—139 N.

For

Office

—

420

share.

Proceeds—To finance

the

costs of

for

other

general

corporate

L. H. Rothchild &,

Underwriters—

purposes.

Co., New York.

it Triad Transformer Corp., Venice, Calif.
May 18 (letter of notification) 20,000 shares of common
stock (par $5). Price—^$10 per share. Proceeds—To re¬
duce

bank loans

and

for

working capital. Office—4055
Redwood Ave., Venice, Calif. Underwriter—None. /
Trican

Petro-Chemical

Corp.,

April 30 filed 500,000 shares of
Price

To be

—

the

Montreal, Canada.
stock (par $1).
price at time of

common

market

non-cumulative preferred stock

working capital, etc.

this

porate

purposes.

Underwriter
on

April 28 stockholders approved
the authorized,
to

common

enable

the

Underwriter—Vickers Brothers, New York.

Office—505

Symes Bldg., Denver, Colo.

when

necessary.

Feb.

Utilities, Inc. (6/8) •./
May 19 filed 213,261 shares of common
to

record

offered

for each six
Price—To

by cornpnon

the

basis

stockholders

one

new

held; rights to expire on June 22.
supplied b,y amendment. Proceeds—To

subsidiaries

vested
&

subscription

June

bank loans incured for construction requirements

repay

for

about

(par $10)'

and

remainder

subsidiaries.

advanced

in¬

Underwriter—Kidder, Peabody

Co., New York.

■

Corp. of America (6/3)
May 14 filed $5,000,000 of convertible subordinated
bentures due June 1, 1969.
Price—To be supplied
amendment.

Proceeds

by
of 3V2 %
Underwriter

$3,250,000

Cities Service Co.

may

sell its

reported company

issue

due

plans to sell, probably
about $7,500,000 first mortgage

1984.

and

Securitiei

Boston Edison Co.

Union

repay

corporate

purposes.

—Kidder, Peabody & Co., New York.
Webb & Knapp,

stock

mon

each

first

mortgage bonds due 1984.

Proceeds

—

For

construction

Central

Illinois Electric & Gas Co.

Dec. 9 it

was announced
company intends to
sell around the middle of 1954 an issue of

stock
less
-

offer and

(par $1).

than

Price—$10

(in blocks of not
each). Proceeds
To repay bank
working capital. Business—Aluminum and
per

loans and for

common

—

stainless

steel
mouldings, , aluminum
ladders,
sink
frames, clothes dryers, etc. Office—Osgood Road, Green¬
ville, Pa. Underwriter—None.

West Coast Pipe Line Co.,

Dallas, Tex.
$29,000,000 12-year 6% debentures
due Dec. 15, 1964, and 580,000 shares of common
stock
(par 50 cents) to be offered in units of one $50 deben¬
Nov.

20,

1952

filed

ture and one share of stock.
Price—To be supplied by
amendment. Proceeds—From sale of units and
1,125,000
additional shares of common stock and private sales of

$55,000,000 first mortgage bonds to be used to build a
1,030 mile crude oil pipeline.
Underwriters —T White,
Weld & Co. and Union Securities Corp., both of New
York.

Offering—Postponed indefinitely.

West Coast Pipe Line Co.,

common

mortgage bonds.
new

stock (par

Pro¬

Proceeds—To repay bank loans and for
Underwriters—To be determined by

bidding. Probable bidders: Halsey, Stuart
Co. Inc.; Stone & Webster Securities
Corp.; Kidder,
Peabody & Co. and White, Weld & Co. (jointly).

it City Title Insurance Co., N. Y. C.
May 20, it was announced that company is planning to
issue and sell not to exceed
$1,000,000 of new preferred
stock.
Proceeds—For working capital.
Underwriter—
Chilson, Newberry & Co., Inc., New York.
Colorado-Western Pipeline Co.
March 5 it

was

announced company has applied to Colo¬

rado P. U. Commissioh for
000 natural gas pipe

authority to build a $21,500,line, in Colorado, to be financed
through sale of about 70% of bonds and 30% of equity

capital.
a

John R. Fell, a partner of Lehman
Brothers, is

Vice-President.

Columbia Gas System, Inc.
March 5 it was announced that
June
and

issue

and

Light Co.
company

plans early in

$40,000,000 of senior debentures
additional $40,000,000 of senior debentures later
Proceeds—For construction expenses and to

re¬

Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.

may

Inc.

later

this

year

(jointly).

General Acceptance
Corp.
March 22 it was
reported

company

near

future,

$4,000,000

due 1984 (with
warrants).
Jackson & Curtis.

May 20 it

was

plans registration,

convertible

the

(6/15)

held; rights
and

one

expire

early registra¬
to

stockholders

common

basis

debentures

Underwriter—Paine, Webber,

announced company plans
shares of common stock

40,000
subscription

June

new

June 29.

modernization.

for

be
of

offered
record

each

four

Proceeds—For

Underwriter—Stroud &

Co., Inc., Philadelphia, Pa.

Indiana & Michigan Electric Co.
Jan. 27 it

was

announced

November, 1954,
gage

bonds

due

company plans to sell around
issue of about $16,500,000 first mort¬
and 40,000 shares of
cumulative

1984

preferred stock (par $100).
Underwriter
To be de¬
termined by competitive
bidding. Probable bidders: (1>
For
bonds—Halsey, Stuart & Co. Inc.; Union Securities
Corp., Goldman, Sachs & Co. and White, Weld & Co.
—

(jointly); The First Boston Corp.; Harriman
Ripley &
inc.; Kuhn, Loeb & Co.; (2) for preferred—The Firs*
Boston Corp.; Smith,
Barney & Co.; Lehman Brother*;
Co.

Union Securities

Kansas City

Corp.

;

Power & Light Co.

March 8 it

was announced that
company may sell in tha*
latter part of 1954
$16,000,000 first mortgage bonds. Pro¬
ceeds
To repay bank loans and for new
construction.
—

Underwriters—To be deterihined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Lehman.
Brothers and Bear, Stearns & Co.
(jointly); Kuhn, Loeb
& Co., Salomon Bros. & Hutzler and
Union Securities
Corp. (jointly); Glore. Forgan & Co.; Blyth &
Co., Ire.
and The First Boston
Corp. (jointly); White, Weld & Co.
and Shields & Co.
(jointly); Harriman Ripley & Co., Inc.,
Equitable Securities Corp.
Meeting—Stockholders on
April 27 aprpoved new financing.
•

company

sell

bank loan of $25,000,000.
Underwriter—To be
determined by competitive bidding. Probable bidders:
pay

by amendment.

$4,00^0,000 first

construction.

in 1954.

Dallas, Tex.

Nov. 20, 1952 filed 1,125.000 shares of
$0 cents). Price—To be supplied

reported

$15,000,000 of first mortgage bonds.
Underwriters—To be determined by
competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; White, Weld
& Co.; Lehman
Brothers;,Merrill Lynch, Pierce, Fenner
& Beane; Glore,
Forgan & Co. and /Harriman Rioley &
Co.

expansion

competitive

Co., Inc.
May 17 (letter of notification) 30,000 shares of

was

issue and sell about

1)00

A Werner

(R- D-)

Power

share of Equitable stock.
Exchange offer, which
expire any time after June 7, 1954, is conditioned
solely upon acceptance by 80% of outstanding shares.
Underwriter—None. Statement effective May 5.
will

sought permission of Massachusetts
Department of Public Utilities to issue and sell $18,000-

Equitable Office Building Corp. on basis
of $5 in cash and $7 principal amount of debentures
for

2,500,000 shares to 5,000,009
from 250,000 shares ta

stock

500,000 shares.

for

company

White, Weld & Co.; Harriman Ripley & Co. Inc. Offer¬
ing—Tentatively expected in July.
Stockholders will
vote June 30 on
approving bond issue.

—

from

tion

Beane

April 14 filed $8,607,600 of 5% sinking fund debentures
due June 1,
1974, being offered together with certain
cash by the company in
exchange for outstanding com¬

general

March 25

A Hercules Cement Corp.

Inc., New York

for

and

shares, and the preferred

Lynch, Pierce, Fenner
Corp. (jointly).

—

Co.

program.
Underwriters—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; The First Boston
Corp-.;* Lehman Brothers;
Kuhn, Loeb & Co.,and A. C. Allyn & Co. Inc. (jointly);

notes

holders

Underwriters
To be determined by
bidding. Probable bidders: Halsey, Stuart
Inc.; The First Boston Corp.; Lehman Brothers,
Stone & Webster Securities
Corp. and White, Weld &
Co. (jointly); Blyth &
Co., Inc., Equitable Securities
Corp. and Central Republic Co. Inc. (jointly); Merrill

competitive

May

de¬

was

August,

bonds

•

Vanadium

reported

—

stockholders), Kidder,
Peabody & Co. and Merrill Lynch, Pierce, Fenner &
Beane (jointly). For
bonds, to be determined by com¬
petitive bidding. Probable bidders:
Halsey, Stuart & Co.
Inc.; The First Boston Corp.; Lehman
Brothers; Kidder,
Peabody & Co. and Merrill Lynch, Pierce, Fenner &
Beane (jointly). Common stock was
increased by stock¬

Jan.

Arkansas Power & Light Co.
in

stock

was

that the company plans new

—

Florida

Co.

holdings of 1,900,000 shares of this company's stock.
If
$old at competitive bidding, bidders may include Smith.
Barney & Co. and Blyth & Co., Inc. (jointly).
Feb. 8 it

United

increase

4,000,000 to 5,000,000

to sell additional shares
will probably be made to

Gas

Corp.

was announced

summer which would
require issuof common stock and probably
$10,000,000 of bonds.
Proceeds
For new construction. Underwriters
For
common'stock (first to common

Underwriter—None.

Louisiana

Underwriter—None.

financing late this

company

Offering

programs.

Arkansas

None.
•

rights to expire on June 16.
Proceeds—To increase capital and.

,ance
,

present stockholders. Proceeds—To subsidiaries for their
construction

Underwriter—

proposal

stock from

held;

share.

Florida Power

Prospective Offerings

per

March 27, it

Securities

"best efforts basis."

First Trust & Deposit
Co., Syracuse, N. Y.
May 9 it was announced company plans to offer to corrt-^
mon stockholders
200,000 shares of new cumulative con¬
vertible preferred stock on the basis of
six preferred
shares for each 10 common shares
held.
Proceeds—To
retire, in part, outstanding class A preferred stock held
by Reconstruction Finance Corporation.
Underwriter-*William N. Pope,
Inc., Syracuse, N. Y.

American Natural Gas Co.

—

capital.

record

National

—

each

surplus.

Office—5119 West Stiles St., Phila¬

Corp., Seattle, Wash.,

States

A United States Uranium Co., Denver, Colo.
May 19 (letter of notification) 100,000 shares of com¬
mon
stock.
Price—At par ($2 per share).
Proceeds—
For exploration,
development and operation of uranium
mining properties and other minerals, and oil and gas.

River, N. J.
May 1, 1954 were gi^en
share

for

Price—$50

(par $20) to be offered

v-'/

Bank of Toms

right to subscribe for an additional
3,000 shares of
capital stock (par $10) on the basis of one new

Wyton Oil & Gas Corp., Newcastle, Wyo.
April 20 filed 1,000,000 shares of common stock (par
$1).
Price—$1.12% per share. Proceeds—For general cor¬

—

working

..'J/'

National

May 14 stockholders

Underwriter—None.

None.

amendment.

Sulphur & Chemical Corp.,
I
Carson City, Nev. (6/10)
April 30 filed 380,000 shares of common stock (par $1).
Price—$2 per share. Proceeds
For acquisitions, ex¬
ploration and development expenses, and for

one

summer.

First

Underwriter—Tellier

Wyoming Oil & Exploration Co., Las Vegas, Nev.
April 29 filed 500,000 shares of common stock. Price—
At par ($1 per share).
Proceeds—For exploration and
development of oil and gas properties. Underwriter—

Proceeds—For development costs and general
corporate purposes.
Underwriter
To be named by
United

Eastern Utilities Associates

new share for each 12
shares held.
Proceeds—To pay off $2,000,000 of bank
loans. Offering
Oct. 1, 1954; probably
early

offering.

•

gen¬

—Expected not later than

share of preferred and 10 shares of class
stock.
Price—$30 per unit. Proceeds—For

delphia, Pa.

stock

Underwriter—Ira Haupt & Co.,,
Registration—Expected in June, 1954.
*/

not greater than

one

common

eral corporate
purposes.
New York.

Fidelity

per

160,000 shares of

mon

Transportation Development Corp. (6/7)
April 26 filed 100,000 shares of common stock (par $1).
obtaining contracts for the construction of the com¬
pany's transportation system, for working capital and

reported

April 30 trustees authorized issuance of
additional com¬
stock (par $10) to
present stockholders on a basis

Underwriter—Irving J.

St., Reno, Nev.

Price—$6

was

publicly offered—100,000 shares for account o£
company and 60,000 shares for
selling stockholders. Price
—In neighborhood of
$10 per share. Proceeds—For

the

in units of

1954.

Beverage Corp.

to be

are

it Wynn Pharmacal Corp., Philadelphia, Pa.
May 17 (letter of notification) 100,000 shares of class B
common
stock (par 10 cents) and
10,000 shares of 8%

Virginia

Cott

leases and royalties in the
Canada and for other corporate pur¬

exploration costs.
Bldg., Oklahoma City, Okla.
& Co., Jersey
City, N. J.
—

cost $23,100,000 in
Read & Co. Inc., New York.

plans to issue and sell
80,000 shares of preferred stock
(par $10).
Underwriter
Alstyne," Noel & Co., New York.

interests,

Bank
~

(6/15)

A Willistcn Basin Oil Ventures, Inc.
May 20 (letter of notification) 2,500,000 shares of com¬
mon stock
(par one cent). Price—Two cents per share.
Proceeds

assist

estimated to

—Van

May 5 it

Co.

company plans to raise $15,in
financing its construction

Continental Commercial
Corp.
May 17 it was reported company

per

Office—Glendive, Mont.
Co., St. Paul, Minn.;-/,

preferred

000 shares will be offered to

creditors.

mineral

poses.

year

Underwriter—Dillon,

May 24 filed 100,000 shares of common stock (par $1).
Trice—$4.75 per share.. Proceeds—To redeem 1,250 out¬
standing preferred shares ($125,000), to repay bank
loan, etc. ($2,500); for purchase or acquisition of addi¬
tional

Taylorcraft, Inc., Conway, Pa.
April 30 (letter of notification) 150,000 shares of

Oil

announced

which is

program

share.
Proceeds—For
general corporate purposes.
Office — 319 West Market
St., Lima, Ohio.
Underwriter—None.

A Western

was

000,000 this

Lima, Ohio
May 10 (letter of notification) 22,386 shares of common
stock (par $5), to be offered to common stockholders
of record May 15 in the ratio of one new share for
each

United

under

Columbus & Southern Ohio
Electric Co.

April 29 it

West Ohio Gas Co.,

Libby, McNeill & Libby

May 20 stockholders approved a proposal to authorize
an issue of
100,000 shares of cumulative preferred stock
(par $100), and to provide that this stock
may be
without

first

issued,

being

offered

common

stockholders.

Underwriters—May be Glore, Forgan & Co., New York.
-

Continued

page 58

The Commercial and Financial

Continued from page

Equitable Securities Corp. and Union

Lighting Co.

Long Island

Underwriter—To be de-

construction program.

New

Barney & Co.

Lighting Co.

announced plans to offer rights to com¬
subscribe to 690,082,
new common shares on a one-for-eight basis.
Proceeds
For
new
construction.
Underwriters—Blyth & Co.
Inc., The First Boston Corp. and W. C. Langley & Co.
(jointly). Registration—Expected in June.

,May 21 company

stockholders early in July to

mon

sell

reported that the company may issue and
late in 1954. Proceeds—To retire

Panhandle

Underwriters—May be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.; White, Weld & Co. and Salomon
poses.

New York.

ital.

be received about June 23.

Pipe Line Co.

*•.:* '?

refund

reported

was

series

and

H bonds.

Underwriter—

To be determined by

competitive bidding, Probable bid¬
ders: Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Glore, Forgan & Co.; Kuhn, Loeb & Co. Offering—Ex¬
pected 4n July or August, 1954.

first mortgage bonds, due

of $15,000,000

issue

Metropolitan Edison Co.
reported company may sell in 1954 about

Dec. 16 it was

$3,500,000 first mortgage bonds due

1984. Proceeds—Foi

Underwriters—To be determined
by competitive bidding.. Probable bidders: Halsey, Stuari
& Co., Inc.; White, Weld & CoKidder, Peabody & Co
and Drexel & Co. (jointly); Kuhn, Loeb & Co. and Salo¬
construction program.

Bros. & Hutzler

1984.

and

late

sell

bonds.

year

some

additional first mortgage

Underwriter—To be determined by competi¬

Probable bidders:

bidding.

Stuart &

Halsey,

Inc.; Blyth & Co., Inc., White, Weld & Co. and
Lynch, Pierce, Fenner & Beane (jointly); Blair,

Merrill
Rollins

& Co. Inc.

.National Fuel Gas Co.

Dillon, Read & Co., New York, handled secondary offer¬
ing in 1943.

England Electric System

April 29 it was announced company plans to offer to
its common stockholders next Fall additional common
stock on a 1-for-10 basis. There are outstanding

9,108,824; common shares.

Proceeds

—

For construction

program of subsidiaries.
Underwriters — To be
mined by competitive bidding. Probable bidders:

deter¬
Blyth
& Co., Inc., Lehman Brothers and Bear, Stearns & Co.
(jointly); Carl M. Loeb, Rhoades & Co., Ladenburg,
Thalmann & Co. and Wertheim & Co.

(jointly); Merrill
Lynch, Pierce, Fenner & Beane, Kidder, Peabody & Co.
and White, Weld
$ Co. (jointly).
New Jersey Power & Light Co.
Dec.

16 it

was

reported this company tentatively plam
1954 of about $3,000,000 first mortgage

bonds due 1984.

Proceeds—To repay bank loans and for

construction.

Underwriters—To be

determined

competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Kuhn, Loeb & Co. and Lehman Brothers

(jointly); Equitable Securities Corp.; Union Securities
Corp. and White, Weld & Co. (jointly); Merrill Lynch,
Pierce, Fenner & Beane.
New

Orleans

Public

Service

Feb.

8 it was reported company plans to offer for sale
$6,000,000 of first mortgage bonds due 1984 late this
year.
Underwriters—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Equitable Securities Corp.; Union Securities Corp. and

Service

Co.

New

Hampshire

construction.

new

Underwriter—If

through

and sale of

(Minn.)

reported company is planning the issuance

approximately $20,000,000 of first mortgage

bonds due 1984 in October of 1954.
be determined by competitive

Underwriters

—

(6/21) ,>

Tennessee Gas Transmission Co.

May 24 it was reported company plans issuance and sale
of $25,000,000 of first mortgage pipe line bonds in

June

$20,000,000 of debentures later in 1954.

and

Proceeds—

Underwiters-^T.o be

determined

construction.

For

new

competitive

Probable

bidding.

bidders:

Halsey,

Securities Corp. and

Stuart & Co. Inc.; Stone & Webster

Bids—For bonds, expected

White, Weld & Co. (jointly).
June 21.

around

International Sulphur Co.y

Texas

ffouston,. Texasf

was

Brothers, New York.

Trans-Canada Pipe Lines,
March 26 it

Ltd.

that the cost of the building

annouced

was

of the proposed

cross-Canada gas pipeline would be ap¬
winch would
be financed
through the issuance of about $36,500,000 each of com¬
proximately

$292,000,000.

Underwriters—Lehman Brothers and Wood,

Gundy & Co., Inc., both of New York.
Transcontinental Gas
March

Puget Sound Power & Light Co.
the directors approved a program designed to
refund the company's long-term debt. Bidders may in¬
clude Halsey, Stuart & Co. Inc.; Lehman Brothers; Stone
& Webster Securities Corp.

securities in the United States.
Gas

year

The First Boston Corp.

Weld

Co*

Tri-Continental

repay

temporary

for new construction esti¬

and

Stone

Underwriters—
Webster Securitiee

Corp.

presently authorized but unissued $6 cumulative pre¬
ferred stock, without par value, into 1.000,000 shares of a
of

stork

class
a

stock,. $50

preferred

value,

par

making

refunding of the outstanding $6 preferred
apnrnoriate time, when conditions warrant.,

Underwriter—Union Securities Corp., New York.
Ultrasonic Corp.

May 17 it

was

securities

reported

plans to offer- some
capital.
Details not

company

provide working

new

yet

available.

United Gas Improvement Co.

May

writer

reported

was

$10,000,000
Rockland Light & Power Co.

pay

March 30 stockholders voted to reclassify 500 000

was

some

financing

permanent

Corp., both of New York.

possible

reported company may issue and sell this
additional bonds and preferred stock. Pro¬
ceeds— For new construction.
Underwriters—(1) For
bonds to be determined by competitive bidding.
Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; Kidder, Pea¬
body & Co. and White, Weld & Co. (jointly); Salomon
Bros. & Hutzler; Shields & Co.; Blyth & Co., Inc.; The
First Boston Corp.; Union Securities Corp. and Equit¬
able Securities Corp. (jokvtly). (2) For preferred stock,
May 17 it

Pipe Line Corp.

reported company plans later this year

loans necessary to

White,

new

Electric Corp.

was

mated to cost about $11,000-000 for 1954.

Investment Fund, Ltd.

April 27 the SEC authorized the company to register as
an investment concern and to make a public offering of

Rochester

some

bank

April 5

Resources of Canada

16 it

negotiated basis.

—

first

Probable

$8,000,000 bonds were also sold last year at competitive
bidding, with the following making bids: Halsey, Stuart

(7/12-16)

company

mortgage

determined

Halsev,

bidders:

April 1, Rockwell C. Tenney, Chairman of the Board, an¬
nounced that the 1954 construction program, estimated
at $14,000,000, will require further financing.
Common^
stock financing to stockholders in 1953 was underwritten
by Merrill Lynch, Pierce, Fenner & Beane. An issue of

may

issue

sell
Under¬

and

bonds due 1.979.
by competitive 'bidding.

Stuart

Co.

Inc.:

Blyth

July 12.,

Co.

Inc.; Equitable Securities Corp.; Kuhn, Loeb &
Co.; Stone & Webster Securities Corp.; The First Boston
Corp. and Salomon Bros. & Hutzler (jointly); Lehman

Brothers; Merrill Lynch, Pierce, Fenner & Beane.

Co.,

Kidder, Peabodv & Co.: Morgan. Stanley &
Drexel & Co. (jointly); The First Boston Corp.;

Inc.:

Co. and

Blair, Rollins & Co. Inc. Registration—Expected about
15 to June 18. Bids—Tentatively set for week of

June

West Coast Transmission Co.
Oct.
issue

14,

1953,

estimated, will cost $1,661,000. Underwriters—May
by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Smith, Barney & Co..
and Glore, Forgan & Co.
(jointly); Union Securities
Corp.; White, Weld & Co.; Equitable Securities Corp.
determined

San

Diego Gas & Electric

April 28 it

reported

Co!

plans to offer late
in 1954 (probably first to stockholders) 800,000 shares of
additional common stock. Underwriter
Blyth & Co.,
Inc., San Francisco and New York.
was

company

—

was

announced company

now

plans to

$29,000,000 in l-to-5JA-year serial notes; $71,000,000

in 20-year,

first mortgage bonds; and $24,440,000 in sub¬
long-term debentures and 4.100,000 shares of

ordinated
St.

bidding. Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; Lehman Brothers and
Riter & Co.
(jointly); Smith, Barney & Co.; Glore,
Forgan & Co.; Merrill Lynch, Pierce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly);

bonds.

was

•

loans.

stock and debentures and $219,000,000 of first mort¬

it is

Feb. 8 it

Underwriters—Smith, Polian &
Co., Omaha, Neb.; Glidden, Morris &,Co., New York;:
and C. D. Robbins & Co., Newark, N. J., who handled
previous underwriting in 1951.
bank

repay

gage

Co.

Northern States Power Co.

Proceeds—

Price—To be named later.

six shares held.

mon

Kidder, Peabody & Co. and Stone & Webster Securities
Corp. (jointly); The First Boston Corp.; White, Weld &

(jointly); Lehman Brothers:

company

be Vickers

Joseph Light & Power Co.
March 30, C. A. Semrad, President, announced that the
company may raise new money this year through the
sale of $1,000,000 first mortgage bonds or from tempo¬
rary bank loans for its 1954 construction program, which,

Harriman Ripley & Co. Inc.

Power Co.

Utah

applied to FPC for authority to issue
and sell 13,135 shares of common stock (par_$10) to com¬
mon stockholders on the basis of one new share for each
May 10

body & Co. and Blyth & Co., Inc. (who made the only
bid in June, 1952, for the 5.40% issue, which was re¬

Inc.

sell to its stock¬
holders about $10,000,000 of additional common stock
(par $25). Underwriter—None. ^
\

competitive bidding, bidders may include Kidder, Pea¬

issue and sale in

new

Co.
in addition to de-

reported company,

was

preferred

for

and

financing, plans to issue and

reported company plans to do some addi¬
tional financing in the near future.
Underwriter—-May

stockholders approved a proposal to
increase
the -authorized
preferred stock from ,160,000 shares to 300,000 shares, of which it is planned
to issue not in excess of 75,000 shares. Proceeds—To re¬
fund outstanding 50,000 shares of 5.40% preferred stock
7

benture

jected); R. W. Pressprich & Co. and Spencer Trask &
Co. (who were awarded that issue in July, 1952, on a

April 1 it was reported company plans to offer about
400,000 shares of capital stock (no par) for subscription
by stockholders later this year or early next year. Stock¬
holders on April 29 approved a proposal to increase the
authorized
capital stock from 4,000,000 to 6,000,000
shares. Proceeds—For new construction. Underwriter-

New

Southern New England Telephone
March

April 28 it

(jointly).

Public

Proceeds—To repay bank loans and for new con¬

struction.
tive

this

Co.

May

reported that company plans to issue

was

petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc., Kuhn, Loeb & Co.; The First Boston Corp.; Harris,
Hall & Co. Inc.; Harriman Ripley & Co., Inc. and Union
Securities Corp.
(jointly); Lehman Brothers; Kidder,
Peabody & Co.; Blyth & Co., Inc. and Smith, Barney &

(jointly).

Montana-Dakota Utilities Co.
17 it

quent common stock financing was not underwritten..

Southern

company

& Scott Corp.

Underwriter—None.

March

securities.

livan

(Canada)

series

1,200,000 shares. It is planned to
through issuance and sale of new
Underwriters—May be vHutchinson & Co.,

Pueblo, Colo.; and Boettcher & Co. and Bosworth, Sul¬
& Co., both of Denver, Colo.; who underwrote
common
stock offering to stockholders in 1948; subse¬

•

early in 1954. Underwriters—To be determined by com¬

mon

$50) and to increase the authorized common stock from

1,000,000

(6/25)
Public Service Co. of Colorado
April 23 it was announced company plans to offer ad- /*
April 12 it was reported company plans to finance its
ditional common stock (about 281,432 shares)'to stock¬
1954
construction
program
through temporary bank
holders of record June 25, 1954 on a one-for-five basis
loans, with permanent financing delayed until later in
(with an oversubscription privilege); rights to expire,
the year." previously, the company had planned to float
on July 19.
Proceeds—For expansion and working cap¬
Merritt-Chapman

raise about $3,500,000

plans the sale of $40,000,000 first and refunding mortgage bonds. Proceeds—

loans and for

indebtedness

authorized

stockholders were to approve a proposal - to
create an issue of 50,000 shares of preferred stock (par

May

Pierce, Fenner & Beane-, and Carl M. Loeb, Rhoades
& Company. Registration—Expected May 28. Bids—To

May 10 it

Underwriters—Merrill Lynch, Pierce, ?
Be&ne and Kidder, Peabody & Co., both- of *.

the

and

in¬

company

writers—May be Kidder, Peabody & Co.; Merrill Lynch,

$20). Proceeds—To repay bank

which

5,000,000 to

from

stock

common

Southern Colorado Power Co.

& Co. of New York.

construction.
&

(6/23)

jointly by Mannix Ltd. of Calgary, Dome Exploration
(Western) Ltd. of Toronto, and Carl M. Loeb, Rhoades

May 10 it was reported company plans early registration
statement of about 30,000 shares of cumulative preferred

Fenner

Line Co.

Peoples Gas Light & Coke Co.

Service Co.

the authorized

.........

proposals

from, $25,000,000* to ..$50,000.090., The
company
has no specific financing program - UndeYwriters—Previous offering of $24,952,800 3% convertible
debentures, in September, 1953. was underwritten by
Drexel & Co., Smith, Barney & Co. and Merrill Lynch,
Pierce, Fenner & Beane.

(jointly).

& Hutzler

Maine Public

new

Eastern Pipe

April 14 it was announced company has been granted
the right to obtain a permit to build a 72-mile pipe
line to transport crude oil from the Pembina Oil Field
in Alberta to Edmonton;
Financing will be handled

issue of bonds

stock (par

Underwriter—May be Glore, Forgan & Co.,
City.

Pembina

$24,610,000 Atlanta, Knoxville & Cincinnati Division 4%
"bonds due May 1, 1955, and for general corporate pur¬

Bros.

York

May 12 company applied to Missouri P. S. Commission
for authority to issue and sell $25,000,000 of 25-year de¬
bentures due 1979.
Proceeds—For expansion.
Under¬

Louisville & Nashville RR.
Nov. 12 it was

the

order that the

financing.

Paper Co.
■■7/,.:.;:
stockholders approved

10,000,000

Co.-

common

competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; W. C. Langley & Co.; Blytb
& Co., Inc. and The First Boston Corp. (jointly); Smith
by

Long Island

Power

Scott

April

creased

12 stockholders voted to increase the authorized
stock from 750,000 shares to 1,000,000 shares in
company be prepared for possible future

April

finance

Tail

Otter

April 20 it was announced company plans later in 1954
to
issue $20,000,000
mortgage > bonds.: Proceeds —To.

'iermined

Securities Corp.
Co, Inc. and

(jointly); Kuhn, Loeb & Co., A. C. Allyn &
Wtfrtfteim &'Co.'(jointly).

^
..

•

Chronicle.,.Thursday, May 27, 1954

(2358)

common

stock

sold

finance construction of

the

public. Proceeds—To
pipe line from the

natural gas

Canadian Peace River field to western Washington and

Oregon. Underwriter—Eastman, Dillon & Co., New York.
Western Pacific RR. Co.

March

applied to the ICC for exemption
bidding or. its proposed $22,500,000
debenture issue.
The 30-year 5% income securities,
would be offered in exchange for 225.000 of $100 par
preferred stock, of the more than 300,000 shares out¬
standing. The company plans to offer $100 of deben¬
from

company

competitive

tures, one-fifth of
mined

share of

cash payment for

and fhery redeem

the then

shares of preferred stock.

common,

and

undeter¬

each share of preferred stock

remaining outstanding 83,2X1

£
)

Volume 179

Number 5328

The Commercial and Financial Chronicle

...

(2359)
NOTICES

DIVIDEND

DIVIDEND
THE

ej/w J^rwSuccun. JofiaeexdxrrnnamJp
0
(/

GALLEY

NOTICES

MOUNTAIN

DIVIDEND

mC©"*0*»*-eo

COAL

DIVIDEND

COMPANY

dividend of 50c per share on the
Capi¬
tal Stock of the
Company was declared pay¬
able June
10, 1954 to shareholders of record
at the close of business June
a

199th Preferred Dividend
A

quarterly dividend of 1/4%

share)

DOROTHY

1954.

BRITNELL.

Treasurer.

May

43%
and

declared,

were

holders

June

Dividend

July 1, 1954, to stockholders of record

Common

NO.
has

Board

Directors

892

WILLIAM T.

declared Dividend

New

($.40) per share of $12.50
Capital
Stock,
payable
June
11,
stockholders of record June 11954.
will

Dividend

mailed

May

11,

Irving
Agent.

Disbursing

JOHN

The

Secretary.

COMPANY

of forty cents

pany,

AMERICAN EXPORT LINES, INC.

Hay 25, 1*54

McCAULEY,

MINING

Trust

HAMILTON,

Allegheny Ludlum Steel Corporation
Pittsburgh,
At

meeting

the

Pa.

mon

Board

Directors

Stock,

stockholders

Allegheny Ludlum Steel Corporation
held

today,

May 20,

1954,

dividend of fifty cents
per

the

Common

American

Stock

record

the

June

the

June

Yice-President,

holders

record

business

Jay 19,

the

Dividend No.

Board

The

dollar

declared

also

dividend

nine- and

three-eights
cents
($1.09375) per share, on the S4.375 Cumula¬
tive
Preferred
Stock
of
the
Corporation,

one

INTERNATIONAL BUSINESS

MARK

1954,

MACHINES CORPORATION

IBM
TRADE

JunC

590 Madison. Ave.,

McCASKEY,

JR.

Secretary

June

10,

1954,

MICHAEL!,
Treasurer

^
record

m95B-

Nt»M

President

LOEB,

DIVIDEND
A

QUARTERLY

161 East 42d Street, New

per

of record

cash

and

stockholders

COMPANY

June

record

able

New York,

business

28,

2,'

June

ROBERT C.

the

GOODWIN,

Y., May 20,

the

common stock

the

of business

June

REYNOLDS

15,

"X
J

the

DIVIDEND NO.
dividend

160

share has been declared

outstanding

Company,

payable July
stock of the

CENTS

of FIFTY

UTILITIES

record

the

16,

(5%)

stock

common

has

common

1954. Scrip certificates will

No.

(25c)
Arundei

(May
cents

dend,

1954)

25,

per

the

payable
the

issued

corporation's

15,

thirty-five

quarterly

divi¬

outstanding,

and

after

July

books

June

day

value stock cf the

par

stockholders

business

the

this

has

declared
as

and

Directors

Corporation

-corporation,

record

the

dared'

June

the

outstanding
Corporation,

Directors

30,

1954,

the Common Stock

1954

stockholders

the close of

business

June 1, 1954.

Sec'y.

D. W. JACK

Secretary

REYNOLDS

May 21, 1954.

METALS

stockholders

of record at the close of business

today

Company, payable July

record

J. Osborn

Exec. Vice Pres. &

GAS

UNITED

June 4, 1954.

company

CORPORATION

Reynolds Metals Building

A. R. BERGEN,
SHREVEPDRT,

Secretary.

Richmond 19, Virginia

LOUISIANA

COMMON DIVIDEND

May 24, 1954.

Dividend Notice
The

of the

ALLYN DILLARD, Secretary

1954.

MARSHALL

dividend of 52 cents

Dated, May 20, 1954

payable

the

per

Resulting stock and scrip
certificates will be mailed by Bank

common

this1

1954,
on

Board

declared

not

share has today been de-

per

stock

cents

will

of the Manhattan Company.

will not be closed.

Hervey

twenty-five

books

closed.

June 15, 1954. The

saitihokc

Board

transfer

stock transfer books of the Com¬
pany

The

business

NOTICE

close of business June

issued for resulting fractional shares.

holders of record at the close of

dividend

DIVIDEND

Company, to holders of

at the

capital stock of this Company,

COMPANY

declared

1954, in

been

payable July 1,1954, to stock¬

HARTIAKO

New York 6, N. Y.

COMMON STOCK
A dividend of five
percent

company

the

Corporation

Treasurer.

Broadway

METALS

Secretary

International Salt

SULLIVAN, Secretary

DIVIDEND

Richmond 19, Virginia

rC0BP0RATI0N\

June 9, 1954.
John G. Greenburgh

1954.

COMMERCIAL SOLVENTS

the close of busi'

Reynolds Metals Building

Notice

stockholders

to
at

company

ARUNDEL]

1954,
record

Treasurer.

1954.

payable

1954.

GERARD J. EGER,

fifty (50£)
share has been de'
payable June 30,

per

clared

business

ness

1954, to stock¬

record

Company have declared quarterly
157 of fifty cents
(50^)

today by

Copper Corporation, pay¬

June

holders

the

1954.

dividend No.

Cents ^($1.25)

Twenty-five

cents

this

distribution of One Dollar

Kennecott

A dividend of

Seventy-five

July 15,1954, to stockholders of record

York, N.Y.

share has been declared

John R. Park
Vice President and Treus.

May 17, 1954

146
of

($.75) per share on the Common Stock
Company has been declared payable
at the Treasurer's
Office, No. 165 Broadway,
New
York
C,
N.
Y.,
on
June
21,
1954,
to
of

HARVESTER

May 21, 1954
A

NO.

DIVIDEND

Cents

per

CORPORATION

June 1, 1954.

The

COKPOMATIOM*

Tennessee
Corporation

N. V.

INTERNATIONAL

KENNECOTT COPPER

share,
payable July 1, 1954 to

Dividend

Secretary.

1954.

Cents

May 19,1954 declared
regular quarterly divi¬

June

1954

be closed. Checks pre¬

not

of Directors

stockholders

business

stock has

The Directors of International Harvest¬

50c

SOUTHERN PACIFIC COMPANY

pared on IBM Electric Punched Card Account¬
ing Machines will be mailed.
A. L. WILLIAMS, Vice Pres. & Treasurer
April 27. 1954

143rd Dividend

dend of

stockholders of
on May 18. 1954.

COMPANY

J. E. IVINS,

Quarterly Dividend

Transfer hooks will

Board

May 19,

The Board of Directors of this Corporation has
this day declared a dividend of $1.00 per share,
to
record at the close of business

The

1S'

Brooklyn,

payable

AMERICAN STORES

de¬

stockholders or

The 157th Consecutive

1954.
S.

New York

Directors has

97
Forty

«h. Common
declared, P

been

97 of

($.40) on

Eayablc of record at the close of business
June 15, 1954, to Preferred stockolders
June

-a

Dividend

June

1954:

J. H.

Manufacturing company, inc.

the

at
on

Board

June 4, 1954.

DIVIDEND NO. 228

1954.

1954

stockholders of record

LIGHTING COMPANY, INC.

The

•

Corporation,
payable
June
30, 1954, to Common stock¬

a
quarterly dividend of 35c
share on the Common Stock,
payable July 1, 1954 to

clared a dividend of 25tf per share on the
outstanding Capital Stock of the Company
the par value of $12.50 per share,
pay¬
able July 1, 1954, to holders of record at

Kinney
Secretary-Treasurer

clared

Com¬

1954,

15,

NO.

The Board of Directors has de¬

THE SAFETY CAR HEATING
AND

IJjjjJ

(50c)

declared

was

per; share

payable

SMITH, Treasurer

York, N. Y., May 25th, 1954.

f—|

Secretary.

1954,

Lines, Inc., at a meeting held
1954,
declared
a
quarterly
dividend of thirty-seven and one-half
($.37 V2 )

Company
DIVIDEND

per

19,

cents

Transmission

Com¬

Export
May

NOTICES

Tennessee Gas

Dividend No. 104

May 25th, 1954 the Directors of Newniont
Mining Corporation declared a regular divi¬
dend of 50c per share on the
2,658,230
shares of its Capital Stock now
outstanding,
payable June 15th, 1954 to stockholders of
record at the close of business
June 4th, 1954.

value

Checks

Harry L. IIilyard. Treasurer

892

par

Stock

Checks will be mailed.

the

of Directors

Board

1954,

10, 1954.

DIVIDEND

1, 1954, to stock¬
close
of
business

DIVIDEND

The
No.

the close of business June

record

71st

July

Stock

1954.

HOMESTAKE

cash

The

payable

Common

NOTICES

Corporation

quarterly
dividends
of
Preferred Stock

per
share on the
cents per share on the

the

American

Stock

Preferred

Tobacco Company, payable in

Plaza, New York, N. Y.
1954,

26,

cents

(51.50

declared upon

has been

Rockefeller

meeting of the Board of Directors of The
Mountain Coal Company held May 24,

1954,

DIVIDEND

Newmoiit Mining

NOTICE

Gauley
New York 3, X. Y.

111 fifth Avenue

NOTICES

GEORGE W. HELME COMPANY

NORRIS,

Board of

declared

Secretary.

one-quarter
on

dividend of

thirty-one and

(2>llAf)

cents

per

tion, payable July

twenty-five
on

has

the

cents

outstanding

been

declared

payable July 1, 1954, to holders of
14, 1954.
The

1954, to stock¬

transfer

closed.
Bank

books

Checks

of the

will

not

by
Company.

Dated, May 20, 1954

Secretary

Southern

California

mailed

Manhattan

ALLYN DILLARD. Secretary

H, WlNHAM

share
stock

record at the close of business June

June 10, 1954.

May 26, 1954

common

the Common Stock of the Corpora¬

ness

dividend

(2S()
Directors has this date

holders of record at the close of busi¬

Edison

Company

DIVIDENDS
ORIGINAL PREFERRED STOCK

CELANESE

A dividend of fifteen cents

DIVIDEND NO. 180

| CORPORATION OF AMERICA
(15<i)
mon

tion

per

the Com¬

1180 Madison

declared payable

record June

the

ness

A. WEDEMEYER
TREASURER

PHILLIES
■

June 7, 1954.

current ouarter

record

the

of business

June 7, 1954.

Quarterly dividends

Florida

12>2

cents

per

STOCK

share payable June

24, 1954, to holders of record
close of business June 7, 1954.
R. O.
«-

l^Iay 25, 1954.

the

The Board of Directors of Lud-

Corporation has declared
quarterly dividend of
10c per share to stockholders,
of record June 15, 1954, pay¬

Secretary

common

87J/2^

DIVIDEND NO.

stock,
$4.00
ferred

able June 30th, 1954.

ferred

$1.00

convertible

stock,
on

the

second

pre-,

$1.061/i

and

the $4.25 second pre¬

stock

have

been

following quarterly dividends:
50

stock,

preferred

The Board of Directors has
authorized the payment of the

the $3.50 cumulative

the usual

de¬

quarterly dividends without
interruption since its first

clared, payable

public offering.

cents

share
Stock;

per

inal Preferred
per

lative Preferred

Orig¬

Cumu¬

Stock, 4.32%

Series.
The above dividends are pay¬
able June 30, 1954 to stock¬
holders of record June 5, 1954.

Checks will be mailed, from the
Company's office in Los An¬
geles, June 30, 1954.

to stockholders of record at the

close of business

MAX HOFFMAN
GILBERT

20<*

the

Ludman Corporation has paid

COMMON

America's NSicijar

North Miami,

man

regular quarterly dividend for
of $1.75
per share,
payable July 1, 1954, to holders
the

May 21,1954

the close of busi¬

The

Philadelphia, Pa.

■//,

7% SECOND PREFERRED STOCK

•vs.

ICORPOR ATION

regular quarterly dividend for
quarter of $1.12>2 per
payable July 1, 1954, to

4.32% SERIES

RAIIWAY, N. J.

current

holders of record

[ LUDMAN
||

MERCK & CO, INC.

share,

1954. Checks will be mailed.

CUMULATIVE PREFERRED STOCK

41/2% PREFERRfcD STOCK,SERIES A

The

16, N.Y.

THE. Board the Directors has this da v
declared of following dividends:

16, 1954, to share¬

holders

Avenue, New York

Stock of this Corpora¬
was

June

President

<►

July 1, 1954

P. c.

June 11,1954.

John H. Gage,
May 25, 1954

hale,

Treasurer

May 21, 1954

Treasurer

The Commercial and Financial Chronicle... Thursday, May

(2360)

from the Nation'*

Capital

(

traces

WASHINGTON, D. C.—A big

JL C/

was

Novem¬

later than

not

of this

ber, 1955. Senate passage
resolution is anticipated.
While the President

proposed
to

the

January,

last

Congress

Message

Annual

his

White House decided not to fol¬

through this year. Mrs.
Olveta Culp Hobby, the Welfare
low

Secretary, said that she ,did not

should pass such

think Congress

(f; ^ a program at this time until the
subject had been studied more
carefully.

President, after the
is passed, will call

the

resolution

each State governor to set
up
a
state conference on ed¬
ucational problems, to precede
upon

national

the

conference

1955.

in the fall of

held

the

construction.

school

for

aid

theory the idea is that (a) there
is a problem of providing ade¬
quate education in view of the
war-stimulated birth rates, and

(b); the "proper" roles variously
of Federal, State and local Gov¬
should

ernments

the

Federal

be surveyed.

in the pedagogical
role of the

However,
racket

proper

is to pro¬

Government

role

vide money, and the proper

of State and local governments
is

does

budgets
Government

Federal

States

the

not,

most

their

balance

the

and

Although

it.

spend

States

inevitably

assumption

this

followed

Federal

since

However,

resolution

are

kind
to

animals.

did

"President's

educator what the
dominant problem in public ed¬
forward

come

with

one

the

House

resolution

debate

this

oil

there

showed,

are

•

Man's

he wants

not

need

■''

!■

Bookshelf

' •

uiisi

Economic

held,

this

school aid

delayed

new

many

will break just in time to

plunge it into the middle of the
election

1956
be

campaign. It will

political party

courageous

candidate

courageous

House

Senate

cord himself

for

will

who

opposed to that

high school and those

new

re¬

new

elementary schools for his

con¬

stituents. After all, didn't Con¬
the President

na¬

education?

011

Aid

Federal

upon

summon

tional conference

Large

since

early

World

|Deen making large grants
both construction
of

local

During
carried

was

known

was

Act,"
of

and

whose

the

This

subsidizing

school
part of the De¬

for the

housing came as
fense Housing Act of 1951. The
"defense"

purpose
was
that
colleges and universities were
training various Reserve Officer
Training Corp students.

However,
order

its

own,

cant

easy

for any

the

Administration,

this restriction
an

removed

Federal funds

loans basis

kind of students.

did

bring

said

college housing loans it
an offer to buy bonds
for this purpose at a range of
will

put

3.5 to 3.6%

and that if they can
privately at such terms,
the college must
borrow pri¬
vately.

be sold

Corporate

was

fyy

Speed-Up

enor¬

revision bill, it is expected that
the
corporation
tax
payment

in-

Congress who feel that

speed-up will be retained.

role

any

has

Government

Federal

the

education

public

people
claim they have no compilation
of the sums spent for local pub¬

This is the provision which
requires that ? from fiscal 1955
through 1959, corporations each
year will
be paying 110%' of
their

Office

schools

Act.

SITUATIONS WANTED

Act

Columbia Graduate

mer

School

1955

employment.

mercial

Park

June

Box

Financial

Busi¬

seeking
R-429,

under

the

Lanham

of the

same.

came

The Lanham

for

tax

liabilities.

After

1959

corporations will be again pay¬

ing taxes

in four

equal

tive

sum¬

Com¬

Chronicle,

session

before

tion knew it
As

the

could

definitely conserva¬
tive and politically hard-headed
Senator explained it this way:
"Individuals

holding tax
rently.

Even

20%

tax

for

tions, it would take

plaining

had better

for

necks

save

it.

the

der

the version

that

dema¬

Korea, these are known
erally "affected" areas.

quar¬

Norman

research
director for the Special House
Committee
to
Investigate Tax
Exempt Foundations, has writ¬
ten
of

any

tee

the

one

Dodd,

clearest

Congressional
kick

off the

reports

Commit¬

Committee's

public hearings. It

may be ob¬
writing to Mr. Dodd,

tained by

for

school

erally

SEEKS POSITION
Ex-naval

officer

istrative

experience,

judgment,
tion with

and
a

expansion
need

from

tion.

firm

plans

with

admin¬
mature

ambition
of

seeks

posi¬

responsibility and

that cannot

within

years,

broad

ability,

present

fill

this

organiza¬

married, 4 children-—

presently employed.

Box C 520, Com¬

mercial & Financial Chronicle, 25 Park

Place, New' York 7.

construction

speed¬

furthermore

has

corporations

Fed¬

will have paid 11 years of taxes

majority of tax exempt founda¬
tions

plan,

1959

One thing which helped

allay

Mr,

patriotic

are

Dodd

contends

and
that

useful,
these

tories. HHFA's latest announced

approvals
to

house

were

York

Laws

Effecting

Corporations

Revised

April 20, 1954 — United States
Corporation
Company,
160

Broadway, New York 38, N. Y..
(paper) $2.50.
Vital

Our

Creole

Stake

350 Fifth

Venezuela—

Petroleum

Present

Corporation,

FOREIGN

'I"

'
Day

Treasury

Banking

1954:

Widely

Useful!

for $2,856,-

women

teacher

students in Indiana, and another
loan of $504,000 to a denomina¬

HANOVER 2-0050

•

Banking and Business Research.
—

American

Bankers

Associa-

tion, 12 East 36th Street, New ^
York 16, N. Y. (cloth).
Y,.;

Trends

; i -v.:

Consumer
R.

lishing

■

Finance

—

Neifeld—Mack Pub¬

Company,

Easton,

Pa.

(cloth, in durable case) $6.00 in.
United

When

Co. Inc.

NEW YORK 4. N. Y.

TELETYPE NY 1-971

>>■

States; $6.50, Canada anck'

Foreign.
Parents

Grow

Old—Eliza¬

beth Ogg—Public Affairs Com¬

mittee, 22 East 38th Street, New
York

16, N. Y. (paper) 25 cents^

MembersfN.A.S.D.

We suggest to
a

investors seeking

liberal return and

potential growth

STOCK

Report available

SECURITIES SPECIALISTS

50 BROAD STREET

TEL:

Avenue, New York 1,.

CAPITAL

Carl Marks

Busi¬

CORPORATION

appropriated

long-term loans for
university dormi¬

,000

New-

SNAP-ON-TOOLS

and

loan

Fed¬

Then, too, the Housing and
Fjnance Agency is mer¬
rily pouring out funds in the
of

While reporting that the great

Home

college

New

Concession to

$271,620,000 for the states to
spend as they please in oper¬
ating expenses for such schools.

form

the

Avenue,

Representatives,

with

areas,

"affected"

Fifth

500

Anthony Hyde

c/o B. Carroll Reece, Chairman,

$520.5 million to give to states

EXECUTIVE

—

York 36, N. Y. (paper).

Dr.

Dodd Reports On Foundations

in 10 years.

came

Inc.,

Story

Council

worse

'liberal'

Washington, D. C.

Democratic

Tea

—Tea

ex¬

think

political

our

some

corpora¬

lot of

oppose

cur¬

this be¬
in effect

years

boost

U. S. House of

the

New

with¬

the

taxes

though

five

for

comes
a

with

now pay

cluding

Un¬

Management, 125
Street, New York 16,.
(cloth).

ness

one

Federally "impacted"

areas.

House

the way.

whether

killed,

was

terly instalments. However, in¬

was

Beginning with 1951 and in¬
cluding amounts requested by
the Eisenhower Administration,
Congress will have appropriated

Place, New York 7.

Treasury

Ways and Means Committee. It
was
approved reluctantly, and
under
Treasury
pressure,
by
that Committee before opposi¬

bailing out munici¬
palities in what was known as

Marketing Student
ness

Education

However, with Korea

Graduating

scheme

gogues."

Likely to Stay in
In the final version of the tax

the

in the eyes of those
inquiring about it, claiming last
fall that no such plan was being
considered.
Subsequently,
the
Treasury quietly but
most
vigorously pressed it in execu¬

attacks

and

migration of people to defense
and military areas.

this

that

edition—Americana

38th

East

threw dust

one

with

that

fact

Excellent Manage¬

these

purpose

education

expanded

quietly

very

Eisenhower
an

municipalities

for

"Lanham

facilities

local

and

public
War II

under what

the

out

need

mously

World
on

was

bailing

opposition

was

college in Iowa. Against
$504,000 of Federal funds,
the college is putting up $15,500.

innovation.

War II the Federal Government
has

the

However, the Eisenhower Ad¬

Already

1954

Institute

ministration

Ever

call

resolution

gress

Manual
ments:

the

The propaganda and the pro¬
gram

Brookings Insti¬
tution, Washington 6, D. CL
(cloth) $3.75.

contain?"

tional

Charles L*

—

Dearing—The

a gentleman out here—wants
to know
elasticity our suspenders are supposed to

much

Capi¬

request.

Industrial Pensions

"Sir—There's
how

Early

Hayek—Founda¬
Economic
Education,

Inc., Irvington-on-Hudson, N. Y„
(paper), single copy free; quan¬

CP-

program

buildings.

for

tity prices

lic

few

tion

III

con¬

high school, plus so
elementary school

new

Myths

talism—F.

passed, then your city and
your county can get that long

other

to wit, "money."

answer,

will

inavariably

(r If

down

such

]

Business

into details by
!3tate, city, and county. If such
and

with

Al mJ

ganda and statistics all designed
to show the crying inadequacy
of funds for public education,
spelled

>:•

ference will mobilize the propa¬

this

Money

any

Conference

I if
mi

yyyyY: III

Education."
When

in¬

upon

they

Congressional resolution to call
a

dependence

and may or may not coincide
the "Chronicle's" own views

sup¬

any

and

Eisen-

anything, from the prob¬
promoting foreign trade
problem of mistreatment

lem

to the

schools.

Congressional

conference

emphasize

problems,

I ■&'/'>/
1

wanted

the power he needs to call

maintenance

ucation

the

governmental

all

pretation from the nation's Capitai

IMllllIiii!'M

yi1"-

y.-.y

the

resolution the President has all

for

passed,

any

ernment.

Ask

been

and

oil

phil¬

[This column is intended to re¬
flect the "behind the scene" inter¬

it.

passed

to be incapable of ex¬
panding adequately the sums
they raise for education. No
State government has the power
to manufacture money in the
same
way as the Federal Gov¬

Problem

control.

Administration

hbwer

posed

Big

liitgl /

resolution does
not state,that the aim of this
program is to call for Federal
Literally

iilf

pro¬

educational

dividual freedom.

IllililS:

kind, for they fear

any

Without

Federal aid for school construc¬
tion

gram

aid

had

against

MR. SWITZEL

that the granting of money will

passage

ucation

educational

Federal

solutions

money.

enthusiastic about the idea of

country
of
construction

of a resolution
authorizing the President to call
a President's Conference on Ed¬
House

provide

y'•*•'

:•

the

program

build-up

the

Furthermore, few members are

of school buildings.
of

than

■

drift

collective
■>}.'■>y ^-y'-

societies,

contends that from 1933

osophy

organized to

build-up is getting
sell Congress and
on
a
large-scale
Federal aid for the
Start

other

inter-relationship

educational

the

■

funds

and

V//Iff
Illli'-filfflS

the

leading

SNITZEL'S SUSPENDER CO.

—
,

educational

and

according to channels prescribed
by
educationists.
Mr.
Dodd

>»»»»»»

Washington...
A
jljL I 9jxJL

research

•

Behind-the-Scene Interpretation*

foundations tend to expend their

BUSINESS BUZZ

27, 1954

LERNER & CO.
Investment Securities

10 Post Office

Square, Boston 9^ Mass.

Telephone
HUbbard 2-1990

Teletype
BS

Full text of Commercial and Financial Chronicle : May 27, 1954, Vol. 179, No. 5328

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