Full text of Commercial and Financial Chronicle : May 28, 1953, Vol. 177, No. 5224

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University
OF
Michigan

Z

ESTABLISHED 1S39

MAY 2 9 1953
ESS

tfflf/jy

Commercial anif
Chronicle
Reg. U. S. Pat. Offioe

New York

Number 5224

Volume 177

EDITORIAL

Let's By-Pass

National Security, Stability,
And Economic Solvency

We See It

As
For

Price 40 Cents

7, N. Y., Thursday, May 28, 1953

good while past there have been com¬
plaints in divers quarters that the President was
a

giving the country the "leadership" that had
expected of him. He has; now come forward
in few, straight-flung words setting forth precise¬
ly what it is his Administration is striving for in

Sen.

Economics, Harvard University

Dr. Hansen reviews economic progress since

tions

Says prices haye increased less than rate of Gross Na¬
been moderate, while burden of
debt has declined, and private consumption and capital
formation have shown a healthy growth. Warns, how¬

tional Product, and have

fiscal affairs.

And where there

;

are

complaints before, there

were

bitter denunciations

now.

Where there

developments that indicate favorable results.

six

were

ever,

charges before, now there are intemperate
charges—usually directed not at the President
directly but at those of his associates and lieu¬
tenants believed to be most vulnerable to political

flattening out,
of 3Vi% bonds as a
"jump," signaling the turning of the tide.

rising output and income

How has

had

our

to

appear

1

a

as

way

if funds

amounts than the New Deal

or

;

the Fair Deal had

pronounced essential or, at all events, provided.
Gloomy predictions

are

heard about the curtail¬

ment of services which "must

Alvin H. Hansen

inevitably" follow

lobby tricks with all the New Deal and Fair Deal
embellishments have been marshalled and mobi¬

are

that

consummation of the plans which

year

on

asked to

forecast

until it

—

-

munism

out

on

in

us

Communist

which there

a

from

war

Korea,

has
and

situation
to

seems

in

be

Asia

no

for

satisfac¬

the

Nevertheless,

last

Adminis¬

Robert

A.

Taft

tration certainly believed in the gen¬
eral

of

policy

backed

up

opposition to communism, since they
and Turkey in 1947, and, of course,

Greece

in Asia since the

Korean

war.

Again I point out that this policy is not a policy of

working through the United Nations, but is

Continued

a

on

policy of
page

35

by Sen. Taft read for him at the Silver Anni¬
versary Meeting pf the National Conference of
Christians and Jews,
Cincinnati, Ohio, May 26,; 1953.
♦From

27

an

address

to the securities field, investors, and businessmen which is
"Chronicle" every week throughout the year.

State and

WESTERN

Municipal

&

Founded 1824

com¬

situation

available in the Thursday

Bank
Trust Company

y

V./

A glance at the Index on page 3 vividly shows the wealth of informa¬

of vital importance

Chemical

***

■JV<:

tory solution.

for the

page

•&#

.

in

the mainland, the unfor¬

on

involved

this

Asia

for

The failure to check

withdrawal

tunate

a

all

go

communism

too late to make it truly

was

effective.

(3) the GNP

Continued

ON THE INSIDE

1

1953 each of the following: (1) the price level, (2)

30

page

tion

were

not

against

policy

First, a mild and brief reces¬
sion, then Korea and nine months of
panic buying, government spending
for national security rising rapidly
from $18 billion in 1948 to over $50
billion, and along with this a vast

economists

did

tration

1948?

the Federal Reserve index of production,

obviously essential to realization of the ends
Continued

these

t

,

Unfortunately,.;j the last Adminis¬

expansion of defense industries. Remembering that 1948
was
already a year of full employment, let us imagine
that a board ot economists had been told back in 1948
that the events listed above would happen. Let us assume

proposed budget economies. All the old super-

lized to prevent

country.

nor¬

a

.

available in smaller

are

the

spread of communism beyond its present limits, either
as an ideology or as
an advance by
force.
Certainly our policy has not
been based on any reliance on the,
United
Nations • or
on
any
other

fairly good balance had been,
reached in the price structure, post¬
war inflationary pressures had. sub¬
sided, and wholesale prices in De-,
cember, 1948 stood 2% lower than in
"-"i
January of the same year.
Now
what
has
happened
since

spontaneous and to suggest horrible

consequences
t;

"leaked" in such

the

under Democratic or Republican

charge, has been based on the general opposition to

sonal savings as a per cent of dispos¬

mal,

on

United States, whether

had been measurably overcome, per¬

able income had settled back to

independently in seeking

policy in Asia based

During the past three years, the foreign policy of

By 1948

gotten back to fairly normal peacetime

Arrangements are made for partisan elements
in the Pentagon to "respond" to Congressional
"requests" for "information" which shows that
current plans to curtail outlays can but lead to
are

been faring since 1948?

economy

condi¬
tions.
Pipelines were again full, peacetime inventories
had been restored, the most serious postwar shortages
had been filled, backlogs of demand
for housing and consumers durables

barrages. There has been a burgeoning of the
contemptible procedure of encouraging under¬
lings and subordinates to criticize and "tell tales
on" their superiors.

disaster. "Facts"

curves are

and decries recent government issue

we

Taft, describing ineffectiveness of the United Na¬
as an instrument against aggression, urges U. S.

a truce in Korea and favors
alliances rather than United
Nations action. Cites Atlantic Alliance as by-passing
United Nations in formulation of positive action against
communism. Says problem of Administration is to main¬
tain the world-wide alliance against Soviet Russia, but
doubts whether it is possible to do this over long period
of years. Urges tolerance for "those trying to conduct
our foreign affairs."

act

1948 and

a

lists

UN in Korea

U. S. Senator from Ohio

not

been

Copy

By HON. ROBERT A. TAFT*

By ALVIN H. HANSEN
Professor of

a

Pacific Coast &

Bonds

I

Direct Private Wires

Hawaiian Securities

Coast to Coast

Complete corporate and
personal trust facilities
Correspondents in all
parts of the world
19 Officesin

NewYork City

Direct Private Wires
_

Dean Witter
14 Wall

Co.

&

THE NATIONAL CITY BANK

and Security
San Francisco

Boston

•

•

Chicago

OF NEW YORK
Bond

of

Canada, Ltd.

t. l. watson & co.
ESTABLISHED

Members New
American

1832

Commodity Exchange, Inc.

Circular

on

To

Active

Dealers,

Markets

Banks

Request

•

1915

-

J

Denver 1
Spokane j

Brokers

CANADIAN
BONDS & STOCKS

Company, Ltd.
Orders

BANK

NATIONAL
OF THE CRY

OF NEW YORK

Maintained

and

Powell River

Commission

CHASE

THE

■

Exchanges

NEW YORK CITY

and 10 other Western Cities

York Stock Exchange
Stock Exchange

ESTABLISHED

Salt Lake City
Los Angeles

Dept. Teletype: NY 1-708

Honolulu

Net

Ford Motor Company

Bond Department

HOGLE & CO.

50 BROADWAY

Exchanges

Los Angeles

•

'' x " —rA—

Members of All Principal

Principal Commodity

Members of

r

TA.
^

Street, New York, N. Y.

i

Public Service Co.
of New

Hampshire

COMMON

Executed On All
Regular Rates

Analysis

Canadian Exchanges at

upon

request

Over-the-Counter Trading Dept.
CANADIAN

H.

G.

Bruns

Hardy & Co.
Members
Members

New

York Stock

American

30 Broad St.
Tel. DIgby 4-7800

Stock

Exchange
Exchange

New York 4
Tele. NY 1-733




60 Broadway, New

York 4, N. Y.

Telephone WHitehall 4-G500

Teletype NY 1-1843

Bridgeport

Perth Amboy

DIRECT

DEPARTMENT

WIRES TO MONTREAL AND

Poxnion Securities

TORONTO

GOODBODY & CO.

Grporatioti

ESTABLISHED 1891
MEMBERSNEW YORK STOCK
115 BROADWAY
NEW YORK

EXCHANGE

1 NORTH LA

SALLE ST.

CHICAGO

<

40 Exchange Place,

New York b, N.Y,

ira haupt & co.
mnd

other

111 Broadway,
WOrth 4-6000

Teletype NY 1-702-3

WHitehall 4-S161

York Stock Exchange
Principal Exchanges

Members New

Boston

N. y. 6

Teletype NY 1-2708

Telephones

Enterprise 1820

*

2

(2302)

Commercial and Financial Chronicle... Thursday, May 28, 1953

'f

The

WE POSITION and
IN

TRADE

A continuous forum in which,, each week,

Phillips Petroleum
Rights &

cv.

in

;

*

Security Mike Best
different

a

Week's

Participants

Their

and

Selections

Alabama &

of experts

group

investment and

advisory field from all sections of the country
.participate and give their reasons for favoring a particular security

deb. 3.70/83

This

Forum

Sonoco Products Company—Glenn
E.
Anderson, Executive Vice-

v

Air Products

(The articles contained in this forum

•

Telephone

-

The

Corp.

Puget Sound Power & Light
Stromberg Carlson
—

-

★—

wide

Corporation

products

Associate

American

Member

Stock

Exchange

120 Broadway, New York 5
BArclay 7-5660

Teletype NY 1-583

i

p a n

have

whose

important
sition in

stock

not

been

widely
distributed,

.195.851

$1

shares

proved
last
year when it
sold

current

stock.

common

amounted

150,000

shares

rently

division

of

the

busi-

stock

The

of

share

was

G.

to

E.

Anderson

to

ratio

of

Members

of

its

on

which

$5

3.57

to

expected

reach
At

19520

writers.
pany

Sonoco

of
in

the

Southern

1899

adopted its present
It

is

Novelty
South

a

Com¬
as

name

Mi'ler

in

cor-

the

textile

cots

and

other

0f
js

the

Commonwealth Natural

Dan River Mills

Moore Handley Hardware Co.

Scott, Horner &
Mason, Inc.
Lynchburg, Va.
LD 33

assortment

an

enterprises

which

of

textile

special

textile, electrical and
trades; paper
and

r

o

pliers,

sification
which

the

can

that

fact

be
it

ing

approximately
80%
of
the cones and paper carriers, other
than tubes, used
by the textile
industry in the United States and
50%

of

the

tubes

of

the

manufactures.

o«ri

™

i

'
company s plants are located in South
Carolina,. New Jer-

Vu*?n'

An»l£

VIRGINIA—'WEST VIRGINIA
NORTH and SOUTH

counts.

than

a
a

sales

jJiirA*

.A*.

RICHMOND, VIRGINIA
Bell System

Teletype: RH 83 & 84
Telephone 3-9137

ation

1912.

*

•

1,920____

York

Chicago
New

Cotton

Exchange

Exchange,
Board

Orleans
And

Exchange

of

Cotton

other

Inc.
Trade

Exchange

Exchanges

itV

Exchange Bldg.

NEW YORK 4, N. Y.
CHICAGO

DETROIT

PITTSBURGH

GENEVA, SWITZERLAND




206,018

326,827

has

in

557,528
293,131

operations

still sold

centage
trade

of

;

to

by

2 7nn

company

products

vals

has

year

trade.

In

to, the textile
spite of this, the

shown

of its

profit in
existence with
a

the single exception of 1924 when
it lost $1,873. As a matter of

fact,
its earnings during the depression
period from 1931 through 1933
were

at

ing the

a

higher level than dur¬

year

1928.

every

indi-

.

as

are

thousands

group

cus-

financial
i

i

j

selected

The

operating

4. •

■

lme

■

'•

i'

inter-

shown below.

1952

jn the past.
interest
of
the

<dmrphnlders

year

a

in sales and profit>

the management continued in its
policy

of

growth

by

,

borrowed

,,

.

,

.

.,

made

funds

which

Net Sales

Sept. 30

(-$000-s)

Bought—Sold—Quoted

at

quar-

jntPrrlintion

which

time

nPrmitfed
hj

th

fh

sells

T^

share

to

At

stock

to

the

cinoe

in

Earnires

retaS

furnished

and

in

can

be

*

sales have

the

fore-

t

Street, New York 4
'

.

"

•

'

'
,

,

from

seen

Gordon Graves & Co.
36 Broad

the

base for expansion,
As

request

time

aooroxi^

thebusing ha™ broughT flanstability

on

the

nrpc;(lri+

vield

Prospectus

public

Telephone.

-

.

WHitehall 3-2840

"V.7

.

*

,

tJ

;

NY 1-809

increased

approximately ten-fold since then

taking into account the
sharp increase resulting from the
recent;acquisition of Bonney.
„

.

Teletype

■V

410 Pan American

Bank Bldg.

Miami 32, Florida

summarization, Miller Manu-

facturing Comapny has been folr
iowjng a carefuiiy selected route
growth

that

should

lead

to

further expansion in product cov¬
erage^

sales, earnings and inyest-

mint m^h

*

.

N. Q. B.
OVER-THE-COUNTER 7

B

tra7ed 7 th7ol7th7
counter market and is suitable for

INDUSTRIAL STOCK INDEX

_

the outstanding stock of the Bon
Year End.

,

working

str0ng

a

withmjt

1942j

acquiring

durinS March °f this Year> a11 of

Company

Common Stock

the

is

Dividends have been paid
t

of

represented

Oil

the af-

'7niy witnout interruption sine

matelv

serv-

of

various industries.

Although

in

are

guided

without

years

sold

in

with

castings, forgings, and

at

Commonwealth

will take the form of long-term
'

steel

.....

DIgby 4-2727

in¬

made of+er

was

management

the

going table,

comparative

Liquid

—

approximately

aptly

so

Monroe, and West Branch,
Michigan, and Cleveland, Ohio)
engaged in the production of

tomers in

Refined

—

Exports—Imports—-Futures

consolidated

capital position and the 'balance

troit,

for

Raw

ac¬

immediately

by

the

^roug^

have

(with plants located in De-

ice-tools

SUGAR

through

active

Miller

acquisition

nr™nt

through its three principal divi- cial

statistics

1,447,543

the textile

was

but,

Sales

At the end of 1952, the company

1.675,989

recent

its

a

investor.

steadily

grown

has

wnu.ii iu»
stability that

cation of continued expansion.

'VusTne^'^althmigh'^approx'i- record
50%

the

attracts

1,678,041

diversification

some

has

the

Enhancing

was

21,215,355

mately

every

N. Y. Cotton

114.446

5,017,567*
8,895,502
18,895,461
23,839,851

achieved
Exchange

,

1.598,178

Sonoco

/

29,139
33,707

2,631,075

-

1945

Members

132,103
907,955
1,236,285

1925

1940__

H. Hentz & Co.

Net Profits

which

diversification

suudnx aiveiMiicduuu

sions
.

1930

1856

pany

sales

5, N. Y.

forgings

gaymeX/ been

given

STREET

as

fajrs 0j tj,e company

*

.

Production of service tools was

sultant

WALL
NEW YORK

thorough and competent consider-

1Ed hrge^tomotoe mmfadurer
until the year 1942. At that 1 ,
I a
management f ,0UP
are
control and demonstrated its abil-

has enjoyed:

Sales

1910

1935

New

plans

following figures for

company

Tel. NY 1-1932

wrenches,

5,000

picture

The

Chester

Paul

Company,
company,

T

1953 to place the
company

the

Ass'n

New York 7

35%.

Mf.',,

the automotive service tool field

competitive position,

which

CRAIGIE&CO.

Commodity

i

and net profits after taxes
clearly
reflect
the ' outstanding- growth

■F. W.-

Stock

m

in

in

Dealers

•

,,

creased

Manufactur-

hefter rmrmptitivp Tuition
oetter

The

MUNICIPAL BONDS

1

99

pro-

such

distributed

are

Bonney

tatoeWSoerati^?ll1i?hth»UMwllZ ** by into otherle?.d!"g the/0m~
gradua"y fields and retunng operations
the Middle

West
in
in

CAROLINA

Tsra
1952
and

In
in

Angeles

'

extensively in the chemical
and gas
oil
industries.

approximately

Among

since

tools

drivers,

Pennsylvania, the primary activity of the company and
sales principally to a
partiaUy ■ from

rita ftn»r fmrm.

Security

the

Products

ca-

these is Miller

ing
ln?

well-known

a

commercial

are

lm~ wbich .haS tbeen ldentlf,ied ™ b which has

,

Connecticut

used

serv-

more

try.

The

sey,

Y.

LAMB0RN & CO., Inc.

line of patented pipe fittings

a

and

motive indus-

•

are

and

into

are

is

screw

duced

just the auto-

Pa-

DoLnt nStf

N.

Broadway

'

V

.

chisels, etc., for automotive,
aviation, farm, industrial, marine,
and refrigeration use. Also pro¬

w

pable of

type which it

(iKIISTEtf & FRRIVREL

saws,

activities

spe-' S

Some idea of the im-

about

•

Tel. DIgby 9-1550

ducer of mechanics'

t h
through diver-

from

Preferred

Members

Bonney

give

'Mre greatness,

the company

obtained

offices

stock

common

the home ney Forge & Tool Works of Allengiants,* there town, Pennsylvania. '

allied

paperboard.

rw

Since 1932 Specialists in

Stock

-

•

is traded in the over-the-counter

Massachusetts, California Canada

York

-

market.

promise of fu-

cones and

and

impregnated and

of

branch

our

and SHOVEL

will

area,

industrial
found

be

budding

supplies

Gas Co.

Detroit

many

to

portance

Natural Gas Co.

to

for

Sonoco Products

$2.28

Many of such
winding cones, paper companies
spools, bobbins, underclearerrolls, are finding

construction

wires

;

.

both income and growth.

in

trades;

tubes for the

Alabama-Tennessee

American

1953

Manufacturing Co.

In

-

for

cialties;

New

in

sales

high.

Department,
Baker, Simonds & Co., Detroit, Mich.

The company is engaged in the
and
sale
of paper

manufacture

carriers, in the form of

Trading Markets

Direct

Maimer, Trading

Hartsville, South Carolina.

cork

Birmingham, Ala.
Mobile, Ala.

Company

Carolina

tubes

NY 1-1557

New Orleans, La. -

of

PAUL P. CHESTER

under¬

Products

Exchange

Tel. REctor 2-7815

•

rate

4Hror>+"rp

^

with

compares

Exchange

Exchange

St., New York 4, N. Y.

HAnover 2-0700

150

organized

was

25 Broad

approximately
$18.50 per
share I consider the stock of this
well managed and growing corn-

per

stock

common

that

a new

1.

earned $1,95

Stock

reversed in late 1952 and it is

was

value

par

being paid at the
share,

per

York

New

Members American Stock

paid

was

textile production-which began
in late 1951. This trend, however,

share in 1951 adjusted for the

per

Exchange

BROADWAY, NEW YORK 5

Established

dividend

The decline in earnings in 1952
largely due to the decline in

Working capital
$3,883,707 witft a

company

1952.

public
through
a
group

ffiC PONNELL & CO.

Members

However,

was

capital stock and surThere
were
outstanding

731,414

im¬

was

and

Tele. LY 62

100%

a

of

plus.

at

120

Steiner, Rouse & Co.

~
number of shares.

same

re-

will be further expanded.
Capitalization of the company
at Dec. 31, 1952 consisted of $1,992,734 of long-term debt, $440,000 of preferred stock, and $13,-

Its

has

1923.

Stock

to

ness

po¬

poration with its executive offices

Stock

They ~

used

the

Since 1917

York

is

pouring concrete col-

This

umns.

their

distributed

Rights & Scrip

American

former

forms in

as

which

New

building

perhaps

less

a

Bought—Sold—-Quoted

common

is

who

e s

occupy

selected

stock, most of

Specialists in

the

industry.

Sonoairduct and Sono-^

The

tubes.

but this situa¬

1920

in

acceptance

called

tion

Established

Manufacturing CompanyChester, Manager, Trad¬
ing Department, Baker, Simonds
& Co., Detroit, Mich. (Page 2)

place galvanized iron or clay pipe in early 1952 followed by the issupply or return lines in heating suance of 150,000 shares of new
not so well known by the investinstallations, in slab-on-ground common stock through rights to
ing public as are many other com- construction. Sonotubes are used stockholders. Dividends are. curI

Louisiana Securities

Miller

recently devel¬

construction

and

Company

company

stock

industries.

New York Hanseatic

nor

oped by the company have found
<-

are

Morris Plan, Pfd.

Carolina
Securities
Corp., Raleigh, N. C. (Page 2)

President,
.

Paul P.

Raleigh, N. C.

Metal & Thermit

be,

to

sell the securities discussed.)

to

Two

Executive Vice-President,
Securities' Corp.,

Sonoco Products

Polaroid

offer

as an

Carolina

*

Inc.

Electrol,

be regarded,

to

GLENN E. ANDERSON

Copeland Refrigeration
Centra!

they

are

Arkansas Missouri Power

intended

not

are

14-Year Performance of

speculative individuals.

Net Income-(SOOO's)
Bef. Tax.

Per Common Share

Aft. Tax.

Earned

..

35 Industrial Stocks

Dividends
POLDER

1942

1,073

264

112

$0.21

2,676

362

92

0.16

3,846
6,097

681

384

0.66

0.25

764

434

0.75

0.40

5,331

437

265

0.46

0.225

10,467

1,737

567

0.97,/.,

0.35

REQUEST

0.20

1946

ON

$0.15

1944

1948

1950
1952

____

*

-

National Quotation Bureau'
Incorporated

46 Front Street

Hew York 4,

N.Y.

Volume 177

Number 5224

What Do

The Commercial and Financial Chronicle

...

(2303)

You Think?

I N D E X

llCHTtnSTflf

B. S.

What About
Letters received

the

on

■

On

the

the
'

of

cover"ipage

May

of

21,

caption,, "What

Think?" attention

to outlaw

the

called

I

;

Formosa and

schools

of thought

subject of picketing:
who

feel

it

that

the

on

zen's

infringes

as

sacred

on
•

property rights and civil liber¬

r

ties

should

thus

and

be

the

opposite

view,

right to strike,
those

work

picketing

is

tected

essential

aw

clarify thinking
Editor

the

invited

have

on

the subject,
"Chronicle"

comments

In
-

been received

that

accommodated in this issue

physical

Chairman, General

Shoe Corp.,

Nashville, Tennessee

only believe that picketing
infringes on property rights and
.civil liberties, but I also believe
that strikes themselves

should be

prohibited.
Neither

be

of

should

these

prohibited

without

ting

set¬

the

up

proper

for

means

working

people

to

se¬

Certainly
strikes

d

n

a

;

"picketing are
not

a

for

way

anybody
reach

j

a

to

u s

t

They

answer.

•

the

represent

-

of force and

use

cedure

the

which

cold

a

is

labor

disputes

better

a

winning.
to settle

person

There

pro¬

only result in

can

stronger

war

way

employees have
it follows that

/

to

make

t h

strike
been
and
to

premise

that

all

C. A.

,

H.

Colvin

same

way

of other

Enclosed

is

leaflet

a

have

we

violate other
which restrain people from
destructiveness.

and

thereafter

disputes.
on

this

from

leaflet

referred

to

prepared

was

by Mr. Jarman and is entitled "A Better
Way To Settle Labor Disputes: A Pro¬
posal

in

not

working

be

to

prevented

The

fundamental
mendations

is

established

Fublic
of

Interest."

Mr.

that

whose

A

Jarman's
"Labor

decisions

putes would be binding on
ers
and unions.—-Editor.

basic

recom¬

Courts"
in

labor

be

dis¬

both employ¬

are

he wishes.

as

feelings

impossible

in

high,

are

enforce.

to

and,

law

a

mainly

In

large

Situations, I do not think that the
law

enforcement

either

the

compel
the

of

HON. SAMUEL WM. YORTY

to list, almost im¬

easy

possible to define
when

agencies

power

or

the

have

will

to

the

letter

defines

observance
law

Operations

these

of

which

-

►

and

It

V '-•>'

•'

-.

Ordinary picketing is simply

device
of

to

advertise

grievance

a

the

and

a

existence

A.

to

propa¬

gandize for support of the position
of those on the picket line. Any
attempt to make the practice il¬
legal would violate the constitu¬

Stocks..!

Insurance

Man's

has

become

evidence. Where

a

much

less

Dealer-Broker

in

Bookshelf

on

page

•

/

•

Chicago

•

Nashville

•

.

1

.

;

-

-

LOS ANGELES, CALIFORNIA




8

Recommendations

,

U. S.

8

of the News—Carlisle Bargeron.

Indications of Current Business Activity.
Mutual Funds
NSTA

34

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l_-__

Notes
Banks

8

Bankers.

and

Offerings

.:

.

.

*curity

Corner

/

*See

page

and You—By Wallace Streete,
Markets, Walter Whyte Says")
.

TO

The

10

*

2

:

5 !

m

"

•'

Twice

1

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land, c/o Edwards & Smith.

Weekly

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Copyright 1953 by William B. Dana
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Reentered

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plete

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HERBERT D. SEIBERT, Editor & Publisher

vertising

-

48

;_

!______—

"Comparative Stock Exchange Trading Records"

FINANCIAL

.

CONQUER
CANCER

to

successor

fColumn not available this week. Mr. May is in Europe in¬
vestigating economic phases of East-West situation.

38

1-1826

40

•__

I Like Best—_______

article

Exchange PL, N. Y. 8

GIVE

27

_

Washington and You

40

Teletype NY 1-1825 & NY

25

—

Securities Now in Registration

"Tmnorrow's

HA 2-0270

44

24

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Salesman's

&

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^___

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Securities

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46

Our Reporter on Governments

Security

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MACKIE, Inc.

\

f

Our Reporter's Report

Prospective

j

18

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39

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____

Observations—A. Wilfred May

'

Worcester

•

Resort Airlines, Inc.

*

Investment

25 Park Place,,New

Glens Falls

•

Schenectady

Mexican Gulf Sulphur

18

TELETYPE N. Y. 1-5

Private Wire to CROW ELL, WEEDON & CO.

.

I

*

1968

48 \

From Washington Ahead

shut

a

ST., NEW YORK 4, N. Y.

Boston
•

'

Deb. 4 y2

23

28

likely result to

PREFERRED STOCKS

TELEPHONE HAnover 2-4300
•

Kerr-McGee

Einzig—"Money Rates in U. S. and Britain".....

on

is the most

Hycon Mfg.

f

-

majority of the

employees want to strike
down

Members New York Stock Exchange "

Manchester, N. H.

i

•

The State of Trade and Industry

hired

by

Spencer Trask & Co.
Albany

1

•

t•

Securities

WILLIAM B. DANA

BROAD

v.-

•

•

___

Reg. U. S. Patent Office

25

-

Coming Events in Investment Field___—

Published

specialized in

' •'

•

.iCover

The

picketing

Continued

have

■

•.

'

48 r

_

Regular Features

/

that

tion.

For many years we

v

Cinerama, Inc.

27 i

(Editorial).

The Market

mobs

Los Angeles

•

}

differences. Industry's response of
late years, it seems to me, has

violent

Direct IFires

Philadelphia

25

;w

--

*

-

:

See

''

'

been to shut down with the result

U. S. Congressman from California

6-

Teletype NY 1-3370

19 c

1
'

'

News About

.

ences

*The

freedom for that in¬
be persuaded and

Personally I think these differ¬

subject.*

L

Canadian

cannot

include the right to

justice in the
case

avers

Business
W.

dividual not to

in the

Broadway, New York

says

Policy of Lifting Economy by Its BootVictor B. Gerard______
23

T'

'

'

'

Bank

any

balanced by

i

Benoit, Jr.__

V

Similarly, the right to attempt to
persuade an individual must be

by

" ,f

1

•

As We

lawful right to

laws

Incorporated

in Industrial

Comparative Stock Exchange Trading Records

other

violence

Spots

Soft

Commodity Exchange to Resume Trading in Copper Futures.

is

to

picket

Cite

i

J. F. Reilly & Co.

10

_______

61

eral Debt Refunding

things

hand,

Exchange Market

Committee

'

•

Frank Freimann Sees TV Color at Least Two Years Away and,
Puts* Set Cost at $l,000_'_^__i
26

On

the

to

straps,

per¬

up

-.1

9

G. Rowland Collins and Marcus Nadler Urge Caution on Fed¬

right

picketing.

'*

3

1_

We Have Abandoned

progress.

add

>

BO 9-5133

other

These

'••■'

*

*

:

(Letters to Editor)

Steady Growth for U. S. Automotive Service Industries,

other

*■

in

*

Purchasing Agents

a

strike

Corp.

Remington Arms

22
24

New Specialist Rule Adopted to Attract Large Blocks of Listed

employees not
the

Taca

v

Lovejoy, Jr

-v

that

has

the

Domestic Scene—A. W. Zelomek__ 20 j

on

No Slump Ahead! says Harlow H. Curtice-

called

try to

suade

.:•■.••'.

es

t

a

;

they have the right

certain

p1oye

e m

know

E.

What About Picketing?

strikes,
violence and picketing. This is a
judicial means which will give us

than

*".'■»

right to strike

a

Natural Gas & Oil

19

Who Said Gold Standard?—Lewis P. Mansfield-

Stocks

on' the

17

constitu¬

r

to work while

justice..

cure

—Thomas

President, Crucible Steel Company
of America, New York City/

Starting

Stromberg Carlson

16

Keezer

—

Signs of Trouble in Home Mortgage Field

infringe¬

an

citizen's

15

_

Finances—Roger W. Babson

Impact of World Affairs

W. H. COLVIN

I not

Maxey Jarman

the

tional and moral right to work,

JARMAN

MAXEY

work, thus

on

Fairless

F.

Monetary Fund's Role in Restoring Convertibility—Ivar Rooth 21 '

pre¬

ment"

^

Haile Mines

14

—Simeon H. F. Goldstein—!

and

vention of

13

Investing Results by Endowment Funds

has

coercion

Alan K. Dolliver

are

given below:

•Your

amounted to

be

can

—Benjamin

date

actually

the

on

Communications that

4-6551

12

_

The General Business Outlook—Dexter Merriam

,

practice,
to

STREET, NEW YORK

Preserving Industrial Peace—Our Most Pressing Problem

much "picket¬

ing";

WALL

Telephone: WHitehall

/ —Carter C. Higgins

wish to strike.

the

of

brief

question.

To help

09

More Foreign Trade, Not Aid, Universally Advantageous

well,',
who

Winkler

Lloyd

request.

on

10

11

'Dollar Literacy—The American "Must"—Orval W. Adams
,

equally,

those

as

rights.

as

and

component of the strike weapon
to secure human

to

should be pro-,

argue
'

that

—Robin

who

wish

6

Pay-as-You-Go Basis—H. C. Bonfig

a

Descriptive Memo

Staff Rule

'

on

Bought—Sold—-Quoted

6

..

Materials Handling—A Growth Industry '

therefore,'

out¬

lawed, and (2) those who, hold¬
ing

Have Television

his

as

—Leslie Gould

~

and

proper

5

Cobleigh__

New SEC Appointments Mean End of

CORPORATION

4

Bullis

..The Challenge to Business Enterprise—Roy L. Reierson__.

objection to genuine
picketing, but the 'citi¬
individual "right to work" is

see; no

those

(1)

Far East—Harry; A.

the

Gulf-International Oil Stream—Ira'.U.

peaceful
two

Cover

Business Outlook and Stock Prices—Jules I. Bogen_____

Corporation, Wilmington, Del. /

to

NORANDA OIL

-

-

\

AND COMPANY

Taft________Ct>ver

National Security, Stability, and Economic Solvency
—Alvin H. Hansen
;

picketing presented.

President, Family Finance

You

Page

Let's By-Pass UN In Korea—Hon/Robert A.

Taft-

not the

or

Articles and NevSs

ALAN K. DOLLIVER

•-

under

Do

was

Picketing?'

subject of whether

Hartley Act should be amended

"Chronicle"

3

rate

of

Record

—

Monthly,

Sv

TELETYPE MI 488

(Foreign postage extra.)

account

of

the fluctuations

in

exchange, remittances for for¬

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

I MILWAUKEE: BRoadway

|

PHONES
'

••

I CHICAGO:

6-8040

|

STate 2-0933
^

4

The Commercial and Financial Chronicle...

(2304)

year

Business Outlook and Stock Prices

that

a

start

six

or

The

depression is sure to
eight months hence.

is

truth

in

somewhere

Professor of Finance, New York

A

University

third,

middle-of-the-road,
our private en¬

school holds that

terprise system

Dr. Bogen reviews current

and prospective business situation
possible recession from present high
levels. Says view that business cycle has been abolished is
not justified, although there are factors inhibiting its course.
and finds

Holds,

grounds for

tinue

a

likely to be maintained.

are

Industry
volume
fore

is

IVz
of

Looks for greater

Defense

can

points

30% of the in¬

in

physical
out¬
put of indus¬
The

try.
is

have

not

weaknesses

The

banks

are

relatively
Corporations are

were

many

into

goods.

part

industry

foreign loans.

upon

Now

it

is turning out
more
than

is dependent in large part upon
foreign gifts. You can keep on
giving away, whereas you cannot

double

keep

the

physical

vol¬
goods

of

ume

it

that

no

Dr.

Jules

I.

1939,

question is:

are

saturated?

Are

the

obvious

not demands being
the

not

demands

industry and consumers being
satisfied and satiated as they have
in

periods of prosper¬
ity, and, therefore, are we not on
the verge of a cyclical downturn
past

If industrial

production

decline

from

that of

1950—and 1950

the

current

"no

cycle" school points out that
economy
is going through
"rolling adjustments" right along.
have

We

had

an

adjustment^re-

had

21%.

of

depression.

correction

a

not

was

a

That

would

be

be

be

we

have

can

to

cor¬

maladjustments

along, one by

have

not

If

have

one,

the

as

do

we

concerted

corrections which go by
of depression.

the

name
>

The argument that the business

had

lived through

not

the 1920's.

a

.

three

among

business

schools

those

of

appraising

outlook.

words but in effect, that

the business

cycle has been abol¬
ished. They point out that during
this period of prosperity we have
had no speculative excesses.
We
witnessed

those

of

stock

no

market,

would
in

not

this

no

a

now

1920's

bit

and

excesses

markets

like

excesses

in

although

mind

fjeld

have had

modity

later

such

the

of

end

the

that the

war

of

the

some
excess

then.
as

charac-

or

a

year

They are the counterpart of
people who, in the early 1930's,

ago.

the

insisted

month

after

month

that

"prosperity is lurking just around
the corner."
These
people now
say

that

depression

a

just around
it

will

The

be

fact

poned

so

In

my

extreme
It

the

that

is

corner,

with

at

us

it

has

lurking

and that

any
been

time.
post¬

make it
serious, they hold.

long

much more

We

in the com¬

de¬

pression is overdue, that it should
have started six months

First,
there is
a
substantial
group who hold, perhaps not in

the

will

opinion,
views

so

both

are

is unrealistic and

of these
not justified.
dangerous to

hold that the business cycle has
by Dr. Bogen before the
.been, abolished, but it is equally
Brokers, New
York City, May 21, 1953.
unrealistic
to
insist
year
after
*An

address

Association

of

de¬

of

de¬

iting

is

force.

present level

such

The

which had been

low

the

government,

spending in 1950

business

cycle1 to assert

In

Customers'




in

an

I

can

by

certificates

now

profits tax,
powerful

excess

do

amortiza

is

a

think

not

there

be any

ing

question but that part
of the plant and
equipment spend¬

going

has

been bor¬

rowed from the future.

When the

on

time,

the

business

to reassert itself.

ment,

the

business

cycle

Under

these

is

dis¬

de¬

the economy.

extent

been

We

observer

that

business

the

abolished

holds

cycle has

that

nor

been

major

a

to

sure

start

de¬

seek

to

at

any

prosperity has
long. Rather, he will

so

determine

whether

the

getting

are

He will also

analyze what is happening to the
cyclical forces, to see if they are

getting stronger or weaker. He
will then ask the question: "When
is the business cycle
likely to re¬
assert itself because the

forces

inhibiting

First let

look at the

us

inhibiting

forces.

the current level of approximately
$52 billion a year. The increase
in

security

off

is

and

end.

spending is tapering
probably about at an

While

have

we

had

con¬

flicting estimates from
ton—as

Senator

out—it

looks

level

of

Washing¬
pointed
$50 billion

Taft has
if

as

defense

a

and

foreign aid
spending is likely to continue for
time

some

to

In

come.

di¬

some

rections,

military
spending
is
being reduced, but it is being in¬

creased

in

other

directions.

penditures for trainer and
port

planes

being

are

example, but they
for fighter planes.
symbolizes

what

I

is

trans¬

cut,

for

increasing

are

think

going

the defense program.

Ex¬

that

on

in

These shifts

doubtless for the best, but the
effect is that-military spend¬

are

net

some

in

crease

in

the

the number

country

700,000.

If

will

of

families

be

closer

continue

we

to

to

pro¬

family, since there is

every new

a

very small replacement demand
for housing that means that we
are

in

crease

the

demand

for

resi¬

In

durable

consumer

as

also

credit, we
satisfying the

more-than

curring rate of demand.
In these

three fields, plant and

gross

national

ways

it

element
near

15%

the

the

our

In

most

many

stable

for the

economy

future.
second

business
tion

factor

has

cycle

growth.

The

increasing at
a

to

moderate

in

the

of

2.700,000

certainly help

cyclical

downturn

horizon

getting

stronger as backlogs are
disappearing and production con¬
tinues at

level which cannot be

a

sustained.

There
where

two

are

cyclical

recession

What

inhibiting factor

is

tax

wars

of taxes.
war

been

on

the

In

reduction.

have

When

with

a

taxes,

is certain when
can

.

would

protracted

mild

a

recession

the

but

longthe

to

mean

market and to

investors?

past, profits, dividends
prices
have
proved

stock

ana

much

vulnerable than busi¬

more

activity to
Leaving

turn.

'thirties—that

cyclical down¬

a

out

the

not

was

early
cyclical

a

other

forces

fields

favoring

a

also soon become
Inventories have been

'37-'38.

three years.
u s t r i a 1

peak

of

$75,000,of $20,000,000 in

With any dip in in-

activity,

inventories

doubtless be cutback some.
Another is foreign trade.
We

are

exporting about $15 billion of

goods

and

billion.

importing

This is

that Congress will

assurance

that

to

If

it

trade

export

foreign

approve

level.

$11

possible by
There can be no

grants and gifts.
tinue

about

made

is

con¬

aid

curtailed,

will

at
our

vulner¬

prove

able.1
ten

to

in durable

in

sumers,

spending
home

twenty

goods spending by con¬
plant and equipment
by
industry, and
in

building,

plier

cent drop

per

effect"

with

this

the

will

"multi¬
have

on

other consumer
spending and in¬
ventories, could easily produce a
10 to 15% drop in
aggregate in¬
dustrial

production.

That

would

mean
a
drop from the present
level of 243 for the index of
pro¬

duction

of

of

nors

the

Board

the

of

Reserve

For

be

greater,

of

But

course.

with

inhibiting factors, like de¬
fense
spending
getting
weaker
and

the

cyclical

stronger,
to

a

factors

recession

getting

of

from

10

in

greater than
industrial

production, and very
much greater than the decline in
gross national

product, which

was

only 5%.
In

next

our

recession,

on

the

hand, profits, dividends

other

and

stock

prices

should

be

consider¬

ably less vulnerable than business
activity, for
First,

a

number of

taxes

reasons.

take

now

nearly

60% of the corporate earnings be¬
fore taxes.

little

a

In

1937, they took only
20%. When profits,

over

before taxes, declined

a*

dollar in

1937,

profits after taxes dropped
about 80 cents. But if profits be-4
fore taxes

today,
est

in

history

provide

against

a

taxes

dollar
would

a

decline

a

on corporate
thick cushion

in

net

corpo¬

profits.

But

be

after

only 40 cents. The high¬

taxes

rate

to decline

were

profits

decline

in

addition

reduced

in

tax

rates

recession.

a

have

a
great to-do
the extension of the

today
excess

will
We

about

profits

tax from June 30 to Dec. 31. With
a

business

tion

is

recession, when infla¬
longer feared, tax re¬

no

duction is to be expected
regard¬
less of the budget
position.
A

Gover¬

Federal

declines

stock prices
the decline in

were

incomes
A

The

profits, dividends and

may

d

second

reason

why corporate

profits

will hold up relatively
well in the next recession is
that,
after

so
long a period of pros¬
perity with high taxes, manage¬

ments

have

been

less

cost-con¬

scious than

they will be in a re¬
Many ways are available

cession.

to reduce expenses in the face ot
moderate decline in sales.

a

15% in industrial production is

The

outlook

reasonable expectation.
Such a
recession could start by the be¬

ginning of next

32%.

for

dividend

sta¬

'37 and

earlier.
a

the

or

the

recession

task, because
affect

year,

Pinpointing

business

After
the

financed

chiefly out of borrowings.This cold
War is the only'major war we have
financed just about entirely out
a

—

.

is

so many

little

a

start
a

of

useless

factors will

outcome.

bility

is

would

a

the

at

likely?
is

Between

'38, dividends dropped by
Any such decline in divi¬

dends

ing

better.

even

be

I think the

clear

disappoint¬

very

present

time. ; Is it
to that

answer

no.

economy.

A third

past,

will
a

been popula¬
population is

rate

a

This

year.

inhibiting the

'

recession, it was a structural ca¬
home
building and
tastrophe in our economy — the
durables, the cyclical last substantial
cyclical recession
forces making for a recession are
was
in

a

A

future that requires em¬

near

phasis.

consumer

could

of the

so

product.

appears

in

or

invest¬

equipment,

that

absorb

the

It

ness

re¬

con¬

tinue to

This

come.

this

at

for

abroad,
long as I

so

see

is
more
the
absence
of
powerful recovery forces than the
danger of a severe recession' in

are

military spending is likely to

least

that

not

scale.

In

goods,

shown by the rapid recent
expan¬
sion of consumer

particular months, the decline

to

years

maintained
at

will

Of

American dol¬
in the development
India and other back¬

stock

means

be

level

countries

afraid

am

we

goods?

always the great

are

lars annually

oversatisfying the current in¬

Board to, say, between 205 to 215
—certainly a moderate decline.

will

I

borrowed

several

ing

high

there

undeveloped

would

Military spending, including for¬
eign aid, has risen steadily from
the $18 billion level of 1950 to

consumers' durable

are

getting weaker, be¬
stronger.
cause the cyclical forces are
get¬
expanded to a
ting stronger, or both?"
a
rise
I shall now attempt to do that. 000,000,
are

re¬

from the of
Africa,
putting up this ward
countries
because
these
year
approximately
1,100,000 countries will not be able to
repay
dwelling units, whereas the in¬ money invested in them on
a huge

the

neither

elimi¬

major

a

ment of billions of

..

.

building also has to

future.

depression, but has

course

but

dential space.

conditions,

sensible

is

mo¬

mounting

by rapidly
activity.

fense

cycle

At the

or

live

Home

any

could

covery within the next few years.
What could give us
great new
upsurge after a ^moderate reces¬
sion?
Are there
backlogs of de¬
mand
for
housing?
Are
there
backlogs of demand for producers'

future

rolls around, that amount
spending will not be there to

see

that

new

major upturn
the economy within the rea¬
sonably near future. The current
long-sustained period of prosper¬
ity has not laid the basis for a

of

sustain

horizon

a

nated the basis for

amortization

stimulus.

the

in

$27 billion major
$8 billion will be

part

Under

rapid

situation, I do not
on

about

duce almost 1 Vz dwelling units for

itself.

sure

bring about

They

authorizing accelerated

inhib¬

an

because

But this is clearly the "New Era"
philosophy all over again. Those
depres-, who held this
opinion in the late
sion. If you doubt it, may I remind
1920's did not fare at all well in
you that between 1937 and 1938,
the subsequent years. The asser¬
our last "normal" depression, the
tion that the business cycle has
gross national product declined by
been abolished will prove unjus¬
only 5%.
r.
tified again.
:
The productivity of the Ameri¬
A second school of thought about
can
economy has been raised to
the business
outlook
might be
so high a level that even a return
called the "depression overdue"
to the level of 1950 would thus
school. It includes the people who
mean a full-fledged depression.
have been pointing out ever since

have

rearmament

moment

a

many

The

a

of

agricultural

in

a

not

so

recession.

of

is

rolling adjustments, to

go

we

cur¬

not

the

a

backlogs

inhibiting
forces
stronger or weaker.

level.

these

It would

thought

Huge

and

following a war are a
similar
inhibiting force.
While
satisfying these postwar backlogs
of demand, we cannot have much

continued

rect individual

readjustment. It would
recession. It would be

are

war,

mand

pression

1950, it would
cycle has been abolished would
drop in the gross national sound more
convincing to me if I

There

pression.

demands

prices during recent months. Farm
prices have gone back to the pre-

rent level to that of

a

of

industry#We

cently in the textile

to

uct were to decline from the

product

a

of
some

covered

tion.

In

force.

a

tnat

times.

at

buying prevents ca¬
production from causing

pacity

torted

busi¬

more

our

to

mean a drop
production of fully
If the gross national prod¬

mean a

forces

economy

is such

war

satiation

ness

were

year—it would

18%.

is

repayment.

the

level

industrial

in

powerful

the

Korean

in business?

bad

of

assurance

Bogen

of

been

lending where there

on

Moreover,

in

did

this year,

financially strong, without a coun¬
$18 billion annually for defense
terpart of the railroads with topand foreign aid, is spending $52
heavy bonded debt that we had
billion this year. So rapid a rise
in the 20's.
Also, in the 20's our
in defense spending does not al¬
foreign trade depended in large

nsumqrs'

If

structural

economy.

—

do

we

weak in the 20's.

producers'
goods
and
c o

our

strong

rest

going

that

out

major

any

the

in

had in the late 20's.

we

as

penditures

longer

A

This first school of thought also

only

crease

such

for

account

about

II.

War

be in¬

or

the

government

the

that

goods

World

can

by

are

factors?

cyclical ing with accelerated amortization.
Out of plant and equipment ex¬
cyclical

to

shorter

nominate

force

We have overstimu-

business

periods

are

What

lated plant and equipment spend¬

But

for

tional

them.

well known.

movement of

out today terized the boom of 1920. We have
physical had no excesses in real estate—
it did be¬ certainly not in undeveloped land

turning

times

subject

con¬

major inhibiting

see

hibited

stability in stock prices than in previous depression periods.
about

will

and

the

are

down¬ the available evidence.
Assuming
no major
change in the interna¬

factors, as I
the
cyclical

fluctuations.

with recession, business will still show earnings

even

and dividends

be

to

is

These

be¬

tween.

By JULES I. BOGEN*

factor in the next cyclical
turn.

Thursday, May 28, 1953

be reduced

nation finances

tax

reduction

military spending
even

to

a

limited

extent. Tax reduction and reform
could be a
powerful;

inhibiting

That

is

tion

a

cyclical recession, what?

a

than

important

more

when

start,

and

at the

how

ques¬

recession

a

will

beginning.

it will

severe

Many people say, "Sure,
have

a

recession.

short, and then
new

But it

will
output peaks."

It is far

we

will

we

will

soon

be

be

reach
„

.

logical to expect
this recession, when it comes, to
be

more

protracted,

on"

the

basis

First, the undistributed profits
tax

was

in

effect

made dividends

in

a

recession.

in

'37,

which

doubly vulnerable
-

,

-

Secondly, corporations are pay¬
ing out a little less than 50% of
their earnings at the present time.
That is a relatively low pay-out
compared

to

65%

in

the

middle

and late 'twenties.

In

the

of reduction

third
in

place,

with any
income

personal

Volume 177

Number 5224... The Commercial and Financial Chronicle

taxes—and

above

credit granted

all,

with

liberal

more

than

has

the

very

high personal

institutional
and

in¬

Stock

also

should

stable in

more

a

The

cluded

in

an

125

industrials

Moody's
of 9V2

average

stocks sold at
16

times

inves¬

Mr.

in

taxation

of
as

conditions

ness

the

past.

But in

have

the next

in¬

assistance to free countries of Far

reces¬

Sees

countries.

we

have

No

.

the Orient

m

experienced.

a

who trawls

one

returned

all

\*

Steel

month's
Production

to

state of Trade

.-Retail

-..

Trade

Commodity Price Index
Food Price Index

■

;

Industry
;•

the level

Particularly active

7

industrial
oil

equipment

manufacturers of

were

and

appreciably above
discord hampered output.
was

armaments.
a

year

ago

consumer

it

when labor-management

-

executives
year

-

expect June to be

factories

as

schedule

predicted

all
prior to the
A majority of the agents interviewed
would continue strong -through September.

business

They also foresaw

ri

production
shipments possible

no

sharp change in prices.

•

not
■

otheiv

individuals

pamedme.

accom-

['

nessmen

istrator, and Clarence Francis to

seven-month rise employment of non-farm
a leveling off tendency,
according to a report

a

T
1

Jobholders

in

^

long
.

way

from normal at today's

appliance-field

one

buying

pressure.

seized

later.

are

it-

steel

strike

is

as

a

tion

of

•




buying interest, appliance sales
on

page

received

in

tilizer piants, a cement plant,

an

plant, dockyards, harbors and arsenals. Industrial de-

on

Formosa, especially the production of a number of items which

In December, 1949,

fertilizers.

chemical

The Formo-

industry

textile

san

now

has

its

seat

in

of

that- tilizer
es-

government

production has reach e d
tons
annually,
as
compared to about 30,000 tons in
135,000

over

end 0£ Formosa.

1

present

^"-seni.

Formosa

Government

vinciai

has

rormosa

levels of government

government,

,,
r
:
Rice is Formosa's principal farm

.

two

nas

—

iwo

crop.

.

About
.

3,000,000

.

.

lo-

wnicn

10

of

Th

vallJP

xne
rice

m
rice

of

—

the

one inira. or

population—are; engaged
.

Na-

persons

one-third

the Pro- approximately

-which

Dro_

d3 raprelentf tpprox?mate?y

governments operate side by side, exPorts

,,

^

The Island of Formosa confronts
the Communist troops on
the

strategic

of China and
position

is

in

a

the

between

armies
in
Korea and the
Communist forces attacking Indo-

t013?®3
with

compared

1951"
su"gar
lgrprpef

and

rice

spectiVely,

of

million

Military

33

'

earners

88% and 20% retotal export value

.

Production of

„

other

many

prin-

m®ai^s cipal farm products has been at

^eaut.ful felan^ The^nd ,s

Continued

called bZ the Chinese and Jap-

on

page

WE

ARE

PLEASED

THE

ANNOUNCE

TO

ADMISSION

OF

port 31

ELLIOT

days

STEIN

H.

trip,

it

was

it

hope

AS

A

GENERAL

AND THE

PARTNER,

was

ACQUISITION

OF THE

BUSINESS OF

the

utmost

ELLIOT

Am¬

L.

&

STEIN

H.

COMPANY

Assistance

Formosa,

(Taiwan)

•»

SCHERCK, RlCHTER.COMPANY
MEMBER

a

320 N.

ST.

the

States

of Vermont

and Connecticut combined.

JUNE t,

MIDWEST STOCK EXCHANGE

FOURTH ST.

is

as

36

v

the

13,800 square miles.' By
comparison, Minnesota has 84,000
square miles.
Formosa is there¬
fore only
one-sixth the size of
Minnesota. It is approximately as *

large

m

1Qfr9

cbina and Malaya.

quick picture of For¬
mosa.
The island is 325 miles long
and from 60 to .90 miles wide. Its
area

3a

Formosa's

are

exchange

foreien

aCefanting fo?

mV„.on

$14.5

1953, and re¬

help from

and

Formosa

Other firms expeet to outproduce 1952, in itself a profitable year.

Continued

following Japan's defeat in

tablished

\

Karl

Now for

Contrary to ill-timed reports pointing to a serious downtrend
of appliance production, this industry is maintaining high output"

consumer

toured the island in-

specting
sugar
plantations and
mills
farms, health centers, fer-

Formosa, our Evalua¬

Team

Group,

Age" this week saw no*
substantial slackening of demand until the fourth

\ A weathervane. of

was

Advisory
and Hubert G.
Schenck, Chief of MSA.

being overlooked by any purchasing agents
premium price steel they can afford
hedge, "The Iron Age" declares.

Hotpoint President John C. Sharp told
Age," his sales are outstripping last year's by 90%.

it

summer

developed the iscoiony 0f japan. For- had previously been supplied by
restored- to China
in the Japanese, such as textiles and

Rankin; Major
General William C. Chase, Chief

;

Iron

I

and

in

bassador

quarter.

**The

strenuous

a

cooperation

being

with but few exceptions.

there

we were

March,

north and

all by air, and
25,000 miles. While

some

was

While

not

any

China

'

Francisco

San

to that same

Steel firms interviewed by "The Iron

possibilty of

team
,

worthwhile.

but the dilemma is how much

buy

and

the

former Chief of

and

interesting,

grounds for hope for more
steel, but Detroit won't relax the pressure. The possibility of a
upon

when

February

winter in

Our trip was

totaled

by appliance people as

slowdowns

are

and March.

last stronghold of operation nearly 130,000 spindles
National
China
following
the where practically none existed
evacuation
of
that
government prior to the war. ' Chemical fer-

Morrison,

left

turned

it, and is in no mood to relax
Five" appliance companies which do the

automotive

1945^

a

was

World War II.

Formosa.

on

middle of February,

At least

business report average inventories at about 30 days
These companies are down to 15 days or less on some

and strike-caused

by

For 50 years,

war.

-

We

of the largest manufacturers has

components

as

m0sa

China, and
President of
Morrison
Holding Company
of Minneapolis.
^

bulk of the
overall.

In the south,

time lawyer in

been using steel as fast as it Can get
steel

my

___

,

Clinton

''independent," this trade paper notes, is cutting
conversionsadother "penalty" steel for the third quarter.

the

m0nths

in

November and
the best
January,
February

October,

months,

December.

Police of Los Angeles.

one-automotive
on

yeai,

Judge Norwood Allman, former
Consul at Shanghai and long¬

inventory picture show, according to this
trade magazine, that steel is still a limiting factor in Detroit,
particularly in auto body plants. High-priced foreign and con¬
version steel is still a major factor in keeping up operations of
'The Big Three."
Strikes in auto parts suppliers' shops could

*In

land

in the Far mainland

members of

_

The facts behind the

back

of it

much

General

-

materials and tighten the parts supply outlook.

ex-

Major General W. Arthur Worton,
retired
Marine
Corps

hottest pressure for steel—the automotive and appliance industries
still unsatisfied. They report inventories ranging from 15

,

with varied

Raymond T. Moyer of. the
Ford Foundation, former head

—are

a

the

Di\

unbalanced, "The Iron Age," national metalworking
weekly, states this week. Those who have been putting on the

pace.

Formosa
rormosa.

securing

m

men

of ECA

days' supply, which is

to
to

team
team

were:

badly

ease raw

of

The

East.

Inventories of the major steel users are still far below normal

production

the
tne

fortunate

perience,

factors, reported each month since last July."

struction work.

to 30

a

aluminum

.going to as many for-

hpaHeH
neaaea

was

services

non-agricultural lines on April 15 numbered
48,800,000, a record for the season. This was 139,000 above March
15, and 1,300,000 higher than a year earlier. The gain over the
preceding month reflected mainly the normal-spring rise in con¬

and

Main-

japanese

^

I

month—non-farm employment changes were primarily seasonal,"
the Bureau stated. "This contrasted with the uptrend, after allow¬
for seasonal

200 inches

dlfilTTnTludv'The op^ation; tTonTGoverament' whfch formu- 60% of the total value of all crops
of the Mutual Securify program
Iftes over-all policy. .These Two ^;n^0S|i4I'\Slrtce

of the Bureau of Labor Statistics of the United States Department
of Labor.; "Between March and April—for the second consecutive

ance

Mutual

Mutual

head teams

Zone, and the

heavy rainfall, as much

kas very

Qur team

across

the

ceded

was

nese-Japanese

busi-

asked by Harold E.
Security Adminsecurity /vanun

were

that

southern part in the Torrid Zone.
The climate is damp. Formosa

2,400,000.

to

usually rough.

are

x.^hrtiy after»the ihpugurationj.nor^ern

qta^en

"For-

means

at the capital city of Taipei, at the 1941.

.;"Q11

;;

have been "comparatively small."

Following

—

of President Eisenhower, 11

workers has shown

..

who

h

btassen,

This

the, Temperate

j

of

tower which marks the

a

.^~ it became the

0

J

Strait

My statements
from the China Mainland. At
necessarily the opinions of-pie.time, the Republic of China

„

;

"in the main" roughly equal,-so that additions to inventories this

to

Many of my re-

•

year

;

co™ acv

in

of our survey.

The- United States Department of Commerce currently ;reported that business activity is maintaining "boom" proportions.
Incoming orders of. manufacturing firms, it stated, are keeping pace

,

came

posed by the short time and scop

the high rate of sales, so that producers continue, to hold
large backlogs. It declared that sales and production have been

•

-

we

of course, Subject to tne

cun

is

-rroBjc Df Cancer

to japan jn 1895, after the Chi- velopment is being emphasized

business,

an
street personalities

along the way.

with

:

will-w.v^ sum-

tmnKing oi tne p

-the

are,

Formosa

Formosa

marks will be personal, but these

The buying
month of the

notes.

vacation period.

summer

:

the top

comments

which

less than

land of China. The waters in the

.

,

military,

with

[heC center^ o^Ve^Istend
mosa

together in the south.

from 90 to 110 miles

Harry A. BulIU

man-m

-

activity remained high in May, states a current
monthly survey of the National Association of Purchasing Agents.

nttle

a
is

the

litical,

Industrial

however, continued to taper off, it

lt

others and my own Strait

of the

mary

Minnesota has less than
The

nnn

total

observations.

My

ingot production the past week slipped to 99.8% (re¬
vised) of capacity, or a decline of more than three points from the
all-time high reached two months ago.
^ k :
'
"
* - \

,

Connecticut

,

of

latitude

northernmost

the

high

populations for the States of Ver-

the

.

have

,

o^n

that

marize

rich

must support a popuapproximately 9,000,000

of

can

opinions

crude

small

a

3,000 000 for the whole state

sum¬

of

Steel

New orders,

to

is

F ormosa

possi¬

durables,

production

sea;

On

say

ex-

the eastern coast; howmost place on that coast

mountains

.lation

other

ble

There

over

cliffs , In the north the driest and best
and drop down vertically to the
months are
the three late fall

brief,

a

■

is

.

The

width.

the

from

the

on Wednesday of last
prior period. Compared
moderately higher.

was

in

conclu¬

journey.

be cul-

coast does not exceed 20 miles

era

ulti¬

at

sions

of

down^the- eastern the westcoast of
The plain on

on

also

year ago

tends

the

is

East,

It stands nearly
of Cancer, which

ranges.

under the Tropic

the island

a

mate

from the near-record level of the
a

by high

one-fourth
can

in

14,000 feet high and is surrounded

A chain of mountains

in

nation-at-large for the period ended

week

tivated.

the

of

Far

the

of

islands

an

one

peaks

Morrison,

mountain

highest

is

only

Formosa is arable and

ever,

hand, I

with

back with

the problems
As one who has
of

plain

Little change was noted in over-all industrial
production for

the

Mount

private

encourage

However,

I

rive

<

Auto Production
Business Failures

-

concept to

few weeks

trip

Formosa,

such

^

a

tan

Carloadings

:

"Terraced Bay."

the free Asian

program among

truthfully
say
it lis im¬
possible to ar¬

Electric Output
>

new

re¬

cently from

re¬

of

come

can

solution to

in the Far East.

and

need

East, and creation of

alike, Taiwan, which means

anese

foreign investment.

relatively less vulner¬
in any previous cyclical

depression

of businessmen, who visited

Also advocates continuing economic

integrated trade and economic

in

prove

able than

stock

;';VThe

Island.

tiality of the

sion, for the several reasons dis¬
cussed, I believe the stock market
will

group

Security
Sfassen, reports the results of their findings.
Finds Formosa possible means of breaking Communist hold
on China and urges improving economic and
military poten¬

dividends. :

they

as

the East-West situation.

Chairman of

as

Administrator

per¬

corporate

Bullis,

is in Europe

May

investigating economic phases of

Formosa and the Far East at the request of Mutual

prices, let me say in con¬
clusion, will fluctuate with busi¬

price-earnings ratio

cause

Chairman of the Board, General Mills, Inc.

pur¬

credit, even
begin with, is

income

Wilfred

A.

a

to

"OBSERVATIONS"

:

By HARRY A. BULLIS

Stock

at

average of over

should

be

equities

stock

bracket

if

distributed

come

relatively stable earnings and

dividends

to

sonal income tax returns to lessen

earnings.

A moderate
and

an

higher

credit

in

of

dividend

double

times earnings
In 1929, listed

at the end of 1952.

tend

by the growing

interest

income

granted

in¬

index sold

by

small

a

be

reces¬

sion.
For one thing,
the priceearnings ratio is relatively mod¬
erate.

will

revival

a

for

tors

prices

relatively

by

chases

taxes.

come

prices

stabilized further

in recent

case

Foimosa and the Far East

business recession.

a

Stock

adopt
policies

dividend

in

usual

more

been

of

years

prices to be less vulnerable than,

any

dividend income—

managements will be under
pressure for stockholders to

5

(2305)

1953.

LOUIS

1

2,

GARFIELD 0225

MO.

6

The Commercial and Financial Chronicle

(2306)

pletion,

Gulf-International Oil Stream

like

The

America.

some

its horizon

Challenge to

visible need

on

for

in Wall Street"

Author of "Winning

in

has

By IRA U. COBLEIGH
"

biggest capacity
Fourth, un¬
of its competitors, Gulf
the

as

oil-line

raising capital funds. Present

no

Business Enterprise

■

long-term debt of $185 million is

slight in relation to $l1/2

of a surging company with a notable record of
plowing back petroleum profits into more petroleum.

A brisk survey

little

a

market

luster,

for

the g e n e r a

market.

1

well

e s t

aoiisnect

was

the

leum

preferthat

ence,

is

standard

many

Swenrud, .Gulf

burgeoned, as
Gulf has--done, with a bunch of
second raters calling the plays, v

Figure out the per-well take, and
in
oils
(and you'll see how prolific are the
Sands of Araby. Total reserves of
natural gases)
and
lr« U.

Cobteigb

as

some

high

25%.

as

And

a

i t

u

a

Kuwait

high

50%

a

A

Now

it's

Quality
the

about

quality

a

as

earned

barrels—and

billion

20

Gulf has

estimated

been

have

as

executives,

598,120

Stock

employment

conditions,

$6.01

• our

At

-

good

business

beset by a

we are

wave

concerning the future of
"

Y

present,

i di

r

gl. the

n

logical

no

may

curtail

to

prepare

prospects

to

boorfr twhich
length and
strength has:

manage¬

expand

favorable

appear

its. operations;

if

and.

when

the

>

be taken in order to contribute (
the sustained
high levels' of .'<•

employment and production which,
have become, the

political and

assets

underground

simply that business

ment

to

1952, and paid
in
plus. all the common. In 1936, and again in- n o precedent ;
in
our
modreason
to feel that favoring the implementing investments—pipe¬
1951, there were 100% stock divi¬
ern
history.'It
-oils is the part of financial folly. lines, docks and a 30,000-barrel dends. Down from a
high of 59 in
is almost 15 Y
It is true that the rate of growth refinery—must conservatively be 1952,
Gulf, presently around 46
ye a rs
a go
■of oil consumption for 1952, over worth over a quarter of a billion (less than eight times
earnings),
1951
about
the:
4% — was quite a dollars to Gulf shareholders; yet presents values that may perhaps since
notch
below
per-year
increases they were acquired and developed be less than fully (measured by economy first
began to feel/
averaging over 9^2% from 1946 to almost entirely by retained earn¬ today's price tag. If, for instance, >
frankly, today, there is

economy in the period ahead:

not

«

for

in

our

ay

of:

crest

25,- '

correc¬
a

outlook is poor, but that we
may.
better consider the steps that
need(

still

are

;

definitely. It,,

outstanding
$2, plus 4%

and

economy.

we

stock,:r

each- of: the

on

shares

of doubts

v,"

.

common

item,

These

interest.

Once again, in the midst of full

have prospered and

wells.

150

perhaps

of

a
healthy
soundly on

longbasis. Points out people are now more conscious than
formerly of their stake in the free enterprise system.

,■

is

equipped with
highly
efficient, and well paid to 'do their
jobs Well. A company could not
echelon

an

be

can

programs

range
.

thought to be about 380,000
from

and points out business fluctuations

tive, if businessmen plan their
„

invested

15%

'

a

competence. Chairmaned by S. A.

hunting

barrels

portfolios had

com¬

•

It's

now

management.

up

highly discernible
quality of all enterprises bearing
the Mellon label is management
and

pany;

in Saskatchewan),
they'd throw it back like a five
inch trout! For example, Gulf's
slice of Kuwait's daily production

petro¬

Holding it would not be surprising if lower business activity \
developed before year's end, Dr. Reierson urges business man¬
ly agers adopt policies, which moderate the extent and duration
of the adjustment. Cites some factors of economic
weakness, -

,

brings

Gulf is, of course, a Mellon

with Kuwait. You've

if you

good

Vice-President, Bankers Trust Company, New York
-

Mellon National *

of the

doors

Which

such lush oil country
brought in a 100-barrel-a-day well (which would be
gest."

that

working

current

and

Bank.

exciting over¬

probably read something about it
in "Fortune" or the "Readers's Di¬

trusts,

so

quite

holdings.

Let's start

individ¬

uals,

Gulf's

seas

Both

among

U.

the

outpaced

and

in the

from

a

decade-before that they habitually

the

S. The rest came

faced

assets,

By ROY L. REIERSON*

billion

capital, above $350 million, does
not indicate any urgent knock on

barrelages, only 223,500 was sur¬

Despite the fact that, since last
the oils, as a group have

July,
lost

of

Thursday, May 28, 1953

...

lates of

economic, social;
military postu—•

even

times.

our

!

^

.

The Outlook for Business Activity
In appraising the economic out¬
look, it is significant to recall that"
the;

—

1951. Then, too, some have sug¬
gested that overproduction might
rear its ugly head, if the inscrut¬
able

Iranians

ular

got

back

production.

that

would

even

switched

from

old

;

Revolving

find Gulf has

duction of around

lesser

earnings and
competition in this industry;
factors which might find reflec¬
lower

prices

for 'I oily

have

Creek

district,

to

run

takes

opining that six million

cars,
trucks and buses will hit the road

this

in

demand;

dieselization

of

importantly expanding
aircraft, and par¬

that

ticularly fuel hungry jets, are
steadily enlarging the market; and
finally that this new petro¬
chemical

deal

synthetics

large

for

liquid and

production

offers

outlet

for

a

of

in

production

barrels;

amounting
in

acres

to

400,000

some

Manitoba

and

nearly

in

a

significant

Venezuela

Grande

with

field

its

Mene

rated

reserves

course,

duction

there's

big U.

at

Then,

S.

pro¬

in

Texas, the Panhandle,
Mexico, Wyoming, and bright
drilling prospects in Montana. Al¬

New

S.

and

Gulf

prop¬

erties exceed 13,700,000 acres, and

Canada,

analysts

would

not

too,

whether

and ,/a

seven

tirpes earnings overtells the Gulf
story..
••'•Y'•
.

'

Of course, in

today,
to

our

troubled world

people

many

in

to those of this mind

mar- : at

ket

short

of

if

this

discounting has been

overdone here. Get the latest
and

conceivably,

clude

oils,

particularly

the

big inte¬
glimpse at Gulf

grated ones; and a
at this juncture
may not be amiss.

that

even

you
your

facts,

many
own

con¬

stellar

Gulf
and

Oil

Corporation

Corporation

honored

and

one,

is

old

ranks

im¬

portantly among the international
companies, with assets of over

$1,600,000,000
tion
That

and

(1952)
sounds

of

daily

produc¬

689,360

barrels.

awful

big and

it

is.

But a key to the Gulf
story is
found in the fact that of the
above

*

,

IN

STREET

AND

utilities,chemicals,

atomic

securities, etc.—by

■

Arthur

and

broadly

throughout

our

turer

in

fi¬

nance

at

the

any

event

well

"Good

established

to millions

name

Gulf"

of

is

a

trade

motorists.

your

clip
mail

$2

Earnings Expected

Certain

general conclusions
from a current analysis

a

Gulf. First,1 Gulf is not only
far-flung enterprise but it has,
the

record,

to

World

Here's

It's

ad

ress)

to

from

lavid
Dept. 4

McKay Company, Inc.
225 Park Avenue, New York 17, N. Y.




a

■

a

wonderful

nose

War

II,

a

sum

of

money

J

of its Philadelphia refinery
100,000 to ,175,000 barrels a

day; and from its controlling in¬
terest

Gulf

above

Cornell

in

Pipe

the

new

West

Line—rated,

on

Texas
com¬

deferred

has

perhaps

of

The

lectures

will

be

given

boom

the

of

peak

of

and

the

pro¬

which
of

fol-

war

in

by

E.

T. McCormick

the

Lewis

Insurance

has

been

Build-

in

the

investment business in Seattle for
more

than

20

years.

in.,

in

demand

these

durable,

consumer

goods./
deficit

sulted in

billion

$15

in 1950 to

year

than

1952

$45
has

and

further
lion

since

growth

more

an

a

annual rate of.

billion
risen

in

early

moderately
$30 bil¬

This

then.

in military spending

than the total

likely to be

spent by all American business on

the international outlook released

about

of

wave

a

questioning and

reap¬

praising of economic prospects for
the period ahead and some con¬
for

the

underpinnings that
currently support the high rate
of business activity.
Furthermore,
in

even

the

absence

improvement

of

basic

any

the foreign scene,

on

forces appear to be at work in

our

If

this

appraisal should

be

period of sustained

expan¬

plant and equipment in 1953. It is
of

as

much

public

is

tion.

It

twice

the

the current rate

private

probably

retail

senger cars

in

as

and

construc¬

more

than

of

pas¬

value

all

produced in 1952.

Yet

spite of this great increase in

the takings of goods and services

consequence

establishment^
shortages of
to the economy

for

the .speculative,

there
real

have

and,

been

except

surge in
no

defense

the

by

no

late 1950 and early 1951,

acute inflationary pressures.

;

This

graphically illustrates the
great productive capacity of the
American industrial plant. At the
time, it suggests that

same

real

we

face

keeping1
history of our this productive plant reasonably*
times, it is apparent that business fully occupied in the future, espe¬
enterprise has acquired functions
cially since only a few of the;
■and responsibilities which presup¬
major factors that have stimu¬
pose that it evidence more than lated the
economy during the past.
merely
a
passive
response
to 15- years show signs of further,
changing conditions. If the Amer¬ strength for a prolonged period,,
ican enterprise system is to dem¬
while
a
number
are
displaying
onstrate its ability to cope with
unmistakable symptoms of hav¬
the

we

read

economic

present
dynamic

high

must

* energy

level

without

problems

it

age,

the

of

for

of

the

provide
a

economic

activity

*An
the

goad
of inflation,
has characterized much of

we

must

address

Conference

It

is to this end

explore the factors

by
on

Dr.

15, 1953.

Reierson

Industrial

ment, sponsored by the
Chamber
of
Commerce,

May

in

ing reached maximum levels.

the

sustained

the

long boom.

that

problems

the

that affect the probable course of

in

of

and

Some weeks ago, however, the
prospects of an improvement in

;

SEATTLE, Wash. — John R.
Lewis, Inc. will move on May 29
to
larger
and
more
elaborate
Mr.

backlog

items

is

which

quarters

the

more

of

1951

outbreak

1948

iJohn R. Lewis, Inc.
In New Quarters

ing.

themselves added greatly to-

years

some

Uni¬

versity.

retro¬

Korea.

As

Adminis-

tration

in

was

sion.

and Pub-

c

the business

even

1949

boom
the

-

recent

School of Busi¬

l i

of

than any it has experienced in the

lec¬

a

Three, its earnings should increase
from the expansion (now in
prog¬

NOW!

this

pointed

gen¬

accurate, business management
may be facing a more critical test

McCor¬
big factor in all M r.
mick on two or three week-ends
world's
major
oil
bearing
areas.
Second, it has plowed back during the academic year begin¬
from earnings, since the end of ning September, 1953.
oil.

common

copy

has

ness

Increased

demands

latter

the most powerful and sus-'
tained force; not only- did we en-"

above the level of the in¬

duction

ture.

ap¬

special

our

or

economy which suggest a down¬
turn in
the not too distant fu¬

x-

In

market value of its common stock.

Get

E

,

been

roughly equal to the total current

it!

Presi¬

the

change,

for

"savvy" that spells prof¬
Just

of

McCormick,

the

cess—Timing, Technique,
Tenacity. PLUS a list of

and

dent

T.

sure about
this, but
impression is that Gulf had
the pioneer American
filling sta¬
tion in Pittsburgh back in 1908.

hopefuls for 1953.

(COBLEIGH

Edward

land. I'm not

stocks, and 20 speculative

By IRA U.

Stock

Lecture at Cornel!

ethylene

new

my

on

name.

gives advice on' buying
and
selling, explains the
3 "T"'s needful for suc¬

"forever"

Port

The

Stock

of

I

issues, rails, electric

It

10

in

spread

emerge

prophetic profile of
profit-laden stocks covers

York

American

I

This

bank

WALL

STREET
IT.

New

is

.T.

plant at Port Arthur is among the
world's largest. If you're a
tourist,
you'll find attractive Gulf stations

MAKE A KILLING IN

KEEP

the

on

addi¬

which

Exchange.

refining, Gulf ranks
the biggest, with vast in¬

among

By the author of the
best-selling HOW TO I
WALL

brief

About

pretty
„

in

traded

common,

read¬

sharp

so

to impair

as

postwar

cern

Philadelphia.

an

much

Gulf

for the production end.

stallations
Gulf Oil

So

zones.

25%

itial

You must decide for your-:
10%

war.

self

the hazards

of

logical

of

The

war.

,

to be that these assets
appear, to¬

be brightened by the

the

'

day, to be discounted in the
for most of

of the

none

prosperity;

downturn

seems

tion

towards

fulfillment

Furthermore,
the
huge
financing of the war re¬
a tremendous growth of
spect hardly more than a pause individual and
business holdings
in the broad upward
sweep of the of liquid assets which were
put to!
postwar years. Furthermore, be¬ use in the
postwar years, with a
ginning with the late summer of resultant
rapid increase in prices.V
1952, our economy has demon¬
-V The hostilities in Korea brought
strated its continuing
strength by a renewed
upturn in military re¬
a
renewed vigorous upsurge; in¬
quirements; defense spending in--:
dustrial production today stands
creased from about
eral

•

surrounding political ferment
Egypt, Arabia and Iran, The

answer

problems from

some

time,

widespread

heavily property so
Kuwait, what with all

as

to

justments have been

discount

remote

day,

attitude

the conduct of war, and the'-

war,
.,

been

time

inclined

are

in favorable and

constructive

^

Re*ers°n

by

encountered

half

coverage for further strikes of oil

widespread geo¬

•

output and many other indicators

be

to

case

a

<

World War; ', since then,
national income, our national

cur

if you don't think these ought
worth $26 a copy. Decide,

see

collection of equities might, some

currently be made for

the.
has

,

that, plus 6,350,000 of acres and
options in Canada, gives plenty of

can

of

decades

ter World War II without having
over-optimism. Such a rough i
of Jyciripss activitv have been in
made
estimate (and it is nothing more
good
the
deficiences
in
a rising trend which has
carried, business
than that) would leave $26 a share
equipment; housing and'
them to ever new high marks. Al¬
for Gulf's U. S. properties. Riffle
public facilities accumulated in
though individual industries have the Great
Depression, but the war
through the last annual report and

form. Personally
I prefer to
string along with the
opining optimists. A rather decent
vapor

of

or-'?

coming

competent
criticize' you

stimulation

one-and-a-half

been provided by preparations for

ders placed in anticipation of the

most

—.

effects

defense v

for

the

producer

close to 600 million barrels.
of

a

Saskatchewan.

is

Gulf

this

and

account of Gulf undrilled

no

fabulously together, total U.

petroleum

thousands

daily

11,500

million

by

travel

to

in Canada this year may perhaps

land

more

That's peanuts

and output and
prospects seem to be looking bet¬
ter with each passing day. With
its proven areas in the Pincher

The optimists
among us counter
the
above
wisps of gloom

that

a

miles,

ocean

equities.

year,
railroads is

9,100 barrels

compared to Kuwait, but this oil

eco¬

more

in

Canadian pro¬

some

to

enigma

from last year, may usher in

tion

we

day presently.

of

of

bit,

a,>

a value of, say
share for all of Gulf's for¬

a

eign holdings—Kuwait, Venezuela

"Mossy"

Others feel that inventories of
gasoline and fuel oils, up roughly
j period

globe

the

doesn't

a

the

but

nomist this instant!

9%

$20

Company's Other Producers

the

would attach

you

at

months

if

-y;

so,

Maybe

take

earliest,

into reg¬

ings.

cardinal

past-

before

Manage¬

Greater

Boston

Boston,

Vass.,

Government

international

the

take
of

Spending

a

—

situation

turn for the worse,

defense

spending

around its peak and

is

should

the rate

currently;

will probably,

decline in the months ahead.
the

'

Unless

For

least, the rate of
cutback will probably be fairly
modest; the outlook is fdr a grad-,
ual downdrift in defense spend¬
present, at

ing, not for a sharp

Continued

curtailment.
on

page

30

New Issues

$122,515,000

The Bonds of each issue will be secured
by a first
tract

between

contributions

the
will

Local Public

pledge of annual contributions unconditionally payable pursuant to an Annual Contributions Con¬
Housing Administration and the Local Public Agency issuing said. Bonds in the opinions of bond counsel. Said annual
payable .directly to the fiscal agent of said Local Public Agency in an amount
which, together with other funds of the

Public
be

Agency which

The United States

are

actually available for such

Housing Act of 1937,

the annual contributions
by the Public

as

will be sufficient

purpose,

to pay

the principal of and interest

amended, solemnly pledges the faith of the United States

Housing Administration

on

to

the Bonds when due.

the payment of

pursuant to the aforesaid Annual Contributions Contracts.

Quotation from
nell

an opinion of the Hon. Herbert BrowJr., Attorney General of the United States, to The

President of the United States, dated
"IN

CONTRACT

TO

PAY

ANNUAL

ENTERED INTO BY THE PHA1
WITH
-

May 15, 1953.

SUMMARY, I AM OF THE VIEW THAT: *

THE

IN

CONFORMANCE

PROVISIONS OF THE ACT- IS VALID"

AND BINDING

UPON

THE UNITED

THAT THE FAITH OF THE
BEEN

* « A

CONTRIBUTIONS*

SOLEMNLY

STATES, AND'

UNITED STATES HAS^

PLEDGED

TO

THE

PAYMENT.

OF SUCH CONTRIBUTIONS IN THE SAME TERMS-

•rITS

FAITH

HAS

BEEN

PLEDGED

TO

THE

PAY-'

MENTOFITS INTEREST-BEARING OBLIGATIONS."
1

Public Housing Administration.

" United States Housing Act of

1937,

...

as

amended.

Interest Exempt, in the opinion of counsel to the
Underwriters, from Federal Income Taxes

by the provisions of the United States Housing Act of 1937,

as

Amended.

Legal Investments, in the opinion of counsel to the Underwriters, for Savings Banks and Trust Funds
in New York and certain other

States; except

as

Bonds Issued by Local Public Agencies which

2%% Scale A j

S

$ V 930,000 *

2%% Scale B

Greenwich, Conn.

$

1,505,000

Norwalk, Conn.

2,565,000

Waterbury, Conn.

1

located in:

2%% Scale C
$

Lawrence, Mass.

3,465,000

Gary; Ind.

'

3% Scale D
$

r

2,450,000

*1,815,000

Binghamton, N. Y.
Plattsburgh, N. Y.

(

1,230,000
995,000

1,625,000< Easton, Pa.
835,000

Anniston, Ala.

Medford, Mass.
Dover, N. H.

3,570,000

1,075,000

11,180,000

;

Rock Island, 111.
.'7

v'■

7

-.7

3,120,000

Woonsocket, R. I.

Capital of Puerto Rico

Chattanooga, Tenn.
Fort Worth, Tex.

Valdosta, Ga.

9,435,000

2,885,000

775,000

San Antonio, Tex.

875,000
1,140,000

Savannah, Ga.

Waco, Tex.

The Bonds of the local public agency located in the
Capital of Puerto Rico

are

Lebanon, Tenn.

1,640,000

:

Bristol, Va.

the

Gaffney, S. C.

820,000

-

Pueblo, Colo.

Tampa, Fla.

Moultrie, Ga.

Thomasville, Ga.

2,375,000

' ''

'
*

780,000

•

Monterey County, Cal.

Sylacauga, Ala.

Carrollton, Ga.

850,000

Cumberland, Md.
Providence, R. I.

13,170,000.
■

•

Opelika, Ala.

660,000

1,665,000

755,000
1,295,000

.

Decatur, Ala.

: 835,000

,

950,000

1,150,000

2%% Scale C
*.$

2%% Scale B
Denver, Colo. /

Richmond, Ky.

9,145,000

Montgomery County, Pa.

$15,190,000

Owensboro, Ky. •'

2,235,000

'

Lycoming County, Pa.

1,735,000

Hopkinsville, Ky^

3,225,000

Maiden,Mass.

;

1,160,000

Lowell, Mass/'.

Covington, Ky.

1,335,000

1,2*40,000

2,815,000

1,095,000

.

1,265,000

'}',

are

1

1,700,000

1.

noted below*

895,000
1,065,000

only exception to the above

statement on

Brownsville, Tex.
McAllen, Tex.
Paris, Tex.

Legal Investments.

Maturities, Rates, Yields and Prices
Scale

Scale

Scale

Scale

Scale

Scale

Scale

Year

A

B

C

D

Year

A

B

C

Due

2%%

2%%

2%%

3%

Due

23/4%

2%%

2%%

1954

1.40%

1.40%

1.45%

1.50%

1964

2.15%

2.20%

1955

1.50

1.50

1.55

1.60

1965

2.20

2.25

1956

1.60

1.60

1.65

1.70

1966

2.25

Scale

•

!

Scale

Scale

B

C

D

23/4%

2%%

3%

2.75%

2.85%

Scale

Scale

D

Year

3%

Due

2.25%

2.35%

1974

2.65%

2.30

2.40

1975

2.70

@ 100

2.80

2.90

2.30

2.35

2.45

1976

2.70

@ 100

2.85

2.95

•7 V

A
:

y

2%%

2.70%

1957

1.70

1.70

1.75

1967

2.30

2.35

2.40

2.50

1977

@ 100

2.80

1958

@ 100

1.75

1.75

@ 100

1.80

1.85

1968

2.35

2.40

2.45

2.55

1978

@ 100

2.80

2.90

1959

1.80

1.80

@ 100

1.85

1.90

1969

2.40

2.45

2.50

2.60

1979

2.80

2.85

2.95

1960

1.85

@ 100

1.85

1.90

1.95

1970

2.45

2.50

2.55

2.65

1980

2.85

2.90

3.00

@ 100

2.60

2.70

1981

2.85

2.90

3.00

@ 100

1.80

*

r-

'

1961

1.95

1.95

2.00

2.05

1971

2.50

2.55

1962

2.05

2.05

2.10

2.15

1972

2.55

2.60

2.65

2.75

1982

1963

2.10

2.15

2.20

2.25

1973

2.60

2.65

2.70

2.80

1983

2.85
:*■

2.90

3.00

@ 100

2.85

2.90

3.00

@ 100

(and accrued interest)
The Bonds of each issue will be callable

The Bonds

ten

years

from their date, and thereafter,

as

stated in the Offering Prospectus.

being offered, subject to award, when, as and if issued and received by us, and subject to approval of legality, with respect to each issue, by bond counsel to the underwriters. The
offering is not made hereby, but only by means of the Offering Prospectus, copies of which may be obtained from such of the undersigned and other underwriters as are registered dealers in this State.

Phelps, Fenn& Co.
.

are

' Lehman Brothers

-

'

'

'

-

Blylh & Co., Inc.

Shields & Company

•*

...

The First Boston Corporation

Goldman, Sachs & Co.

Harriman Ripley & Co.

i

Incorporated

.

Drexel & Co.

A. C.

Eastman, Dillon & Co.

Allyn and Company

Equitable Securities Corporation

Alex. Brown & Sons

Incorporated

Estabrook & Co.

'

Ira Haupt & Co.

Stone & Webster Securities Corporation

,

Hemphill, Noyes & Co.

Hornblower & Weeks

Reynolds & Co.

Schoellkopf, Hutton & Pomeroy, Inc.

American Securities Corporation

Bacon, Stevenson & Co.

R. W. Pressprich & Co.

White, Weld & Co.

Bear, Stearns & Co.

Lee Higginson Corporation

*

Incorporated

.

Paine, Webber, Jackson & Curtis

Coffin & Burr

Merrill Lynch, Pierce, Fenner & Beane

Smith, Barney & Co.

'.

Braun, Bosworth & Co.

F. S.

R. S. Dickson &

Incorporated

First of

Michigan Corporation

Harris, Hall & Company

Hirsch & Co.

Kean, Taylor & Co.

Wm. E. Pollock & Co., Inc.

L. F. Rothschild & Co.

(Incorporated)

Francis I. duPont & Co.

Eldredge & Co.

Laurence M. Marks & Co.

Wood, Struthers & Co.

Company

Incorporated

A. G. Becker & Co.
Incorporated

Folger, Nolan Incorporated

Paul Frederick & Company

Geo. B. Gibbons & Company

Gregory & Son

Incorporated

Incorporated

Incorporated

MacDonald & Company

Tucker, Anthony & Co.

Moseley & Co.

Roosevelt & Cross
Incorporated

F. S. Smithers & Co.

William R. Staats & Co.

Hallgarten & Co.

Stern Brothers & Co.

E. F. Hutton & Company

W. E. Hutton & Co.

'

Stroud &

Company

Incorporated

Chas. E.

Weigold & Co.

Incorporated

May 27, 1953

1%




8

May 28, 1953

The Commercial and Financial Chronicle ...Thursday,

(2308)

data

Union Pacific Railroad Company, Western Maryland:

on

Country

ing at the Plum Hollow

>

Club.

comparison of Railroad

Western Pacific Railroad and a

and

Common Stock Values 1946 vs 1952.

Dealer-Broker Investment

Recommendations & Literature
It

send

to

Securities

Corporation,

40

available is

Also

Y.

N.

an

June 19-21, 1953 (Los

Exchange Place, New York 5,
analysis of the White Pass and

Arrowhead, Calif.

Utana Basins Oil—Information—W. D. Nebeker &

& Light Co., Dept. K.,

able is information on

899, Salt Lake City 10, Utah.

Box

Vacuum Concrete Corporation

Industry—Review—Stern, Frank, Meyer & Fox,
Union Bank Building, Los Angeles 14, Calif. Also available
are reviews of Aircraft Industry and Municipal Bonds.

their 1951-1953

quoted well below
peaks—Francis I. duPont & Co., 1 Wall Street,

Analysis

—

Analysis

Municipal Bond Dealers Group
of Cincinnati annual party at the
cocktail

Street, New York 4, N. Y.

25.

June

27, 1953 (Chicago, 111.)

Chicago Bond Traders Club An¬

1953—Analysis—Thomson & McKinnon, 11

Country Club.

earnings comparison—

Laird, Bissell & Meeds, 120 Broadway, New York 5, N. Y.
Stocks—Annual comparative

Notes

NSTA

analysis—Blyth & Co.,

June 28-30, 1953

California Group of

Over-ihe-Counter Index—Folder showing

up-to-date com¬

an

parison between the listed industrial stocks used in the Dowthe 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
yield and market performance over a 13-year period —
National
Quotation Bureau, Inc., 46 Front Street, New
York 4, New York.

bara Biltmore.

Security Traders Association of New York

(Capt.), Klein, Weissman, Murphy, Searight
(Capt.), G. Montanye, Voccoli, Siegel, Reid
Meyer (Capt.), Kaiser, Swenson, Frankel, Wechsler, Barker
Donadio
(Capt.),
Demaye, Whiting,
O'Connor, Rappa,
Seijas
Krisam (Capt.), Ghegan, Jacobs, Gannon, Cohen___»
Serlen (Capt.), Gersten, Krumholz, Rogers, Gold
Bean (Capt.), Frankel, Strauss, Nieman, Bass, Krassowich
Growney (Capt.), Craig, Fredericks, Bies, McGovern
Goodman (Capt.), Smith, Valentine, Meyers, Farrell, Brown
Murphy (Capt.), Manson, D. Montanye, O'Mara, Pollack,

—

Analysis

—

May & Gannon, Inc., 161
Also available is an
,/V:V

Boston 10, Mass.
analysis of Scott & Williams, Inc.
Bingham

Herbrand

Corporation—Bulletin—De

Witt

Co.—Analysis—Hirsch & Co., 25

New York 4, N. Y.

Also available is

a

Broad

Street,

memorandum

cific Petroleums Ltd.

on

Pa¬

Ed

East

Mason

reports

report

No.

CF—Loewi

Street,, Milwaukee 2, Wis.

Also

&

the

are

Corporation.

Tea

ended

\

of

Stock

ing.

32%

Exchange

of Governors

Board

Meet¬

*,; V * *

. ..

Nov. 29-Dec. 4, 1953

(Hollywood, Fla.)

32

Investment Bankers' Association

of America Annual Convention at

Hollywood Beach HoteL

;

•

Samuel I. Gold to

a

Join

/

'

*

in

a

tie

and

a

Lapham & Co.

play-off will take place to decide
-

Bowling League Dinner will take place

1953 at the Antlers.

Let

us

on

June 4,

all turn out for it.

SECURITY TRADERS ASSOCIATION OF CONNECTICUT

Holly Corporation—Bulletin—W. Keyser Manly, 11 West 42nd
Street, New York 36, N. Y.
v.
Jewel

Firms

207
Half

Second

Annual

National Container Corp., Ed. Schuster & Co., Inc.,
Wisconsin Power and Light Company and Shellmar Products

(Louisville, Ky.)

Association

212-202

winner.

on

v

Hotel

(Aug. 21).

Oct. 14-16

,

;v\V— 5v.--.vV.--.;

203

Albany

ciation 20th Annual Convention.

Cy Murphy

__-__209

Krisam

W.

Co., 225

available

Klein
Whiting

Group-

National Security Traders Asso¬

48
47%
46%
46
41

Point Club

5

.234

Leinhard

*The

Inc.—New

Club

Donadio

Roy

Dewey & Almy Chemical Co.—Memorandum—Kidder, Peabody
& Co., 17 Wall Street, New York
5, N. Y. Also available is a
memorandum on Time, Inc.
■
■

Mine,

49

the
Joe

Chicago & Eastern Illinois Railroad—Analysis—Vilas & Hickey,
49 Wall Street, New York 5, N. Y.

Getchell

Point

200

:

at

(Aug. 20) and Park Hill Country
Club

38

Mewing (Capt.), Bradley, Weseman, Hunt, Gronick, HuffLeone (Capt.), Greenberg, Tisch, Werkmeister, Leinhard
Corby

Conklin

frolic

Sept. 16-19,1953 (Sun Valley, Ida.)

Gavin

Organization, 100 Broadway, New York 5, N. Y.
Bucyrus-Erie

54
54
52%

(Denver, Colo.)

Mountain

Rocky

Bond Club of Denver annual sum¬
mer

*Burian

•

Street,

Points

*Hunter

Co., 120 Broadway, New York 5, N. Y.

Devonshire

IBA

Team:

American-Hawaiian Steamship Company—Review—Sutro Bros.

Bettinger Corporation

(STANY) Bowl¬

Aug. 20-21, 1953

ing League standing as of May 21, 1953 is as follows:

on buying and selling and ex¬
necessary for success (timing, tech¬
nique, and tenacity) plus a list of "forever" common stocks
and 20 speculative hopefuls—Ira U. Cobleigh—David McKay
Company, Inc., Dept. 4, 225 Park Avenue, New York 17,
N. Y.—$2.

&

an¬

SECURITY TRADERS ASSOCIATION OF NEW YORK

planation of three "T's"

•

Investment
second

nual conference at the Santa Bar¬

Winning in Wall Street—Advice

:•

Association

Bankers

Jones Averages and

«

(Santa Barbara,

Calif.)

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

',>v:

Outing at the Nordic

nual Spring

Fire & Casualty Insurance Stocks—1952

;

party, Thursday evening

June

Street, New York 5, N. Y.

Insurance

Country Club June 26;

Kenwood

Oppenheimer & Co., 25 Broad

—

Cincinnati, Ohio)

June 25-26,1953

Heimerdinger &

—

Y.

Electric Utilities in
Wall

—

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

Depressed Stocks—45 selected equities now
New York 5, N.

Co., Pacific
Also avail¬
Ute Royalty and English Oil.

National Life Building, Salt Lake City 10, Utah.

Automobile

Ang., Calif.)

Security Traders Association of
Los Angeles annual spring party
at the
Arrowhead Lodge, Lake

Corporation, Ltd.

Yukon

Area Resources—Booklet—Utah Power

Spring

Club.

Company—Analysis—Dominion

Trans Mountain Oil Pipe Line

mentioned will he pleased
interested parties the following literature:

Jersey an¬

Rock

at

day

Company, 207 East Michigan Street, Milwaukee 2, Wis.

kee

understood that the firms

is

field

nual

Manufacturing Company—Analysis—The Milwau¬

of New

Club

Bond

Republic Co., 209 South La Salle Street, Chicago 90, 111.
A. E. Staley

(New Jersey)

June 19, 1953

Co.—Memorandum—Central

Telephone

States

Southwestern

'

The

of

party

summer

thcSecurity Traders

Association

o£

Connecticut is to be held at Shuttle Meadow Club in New Britain,

Company—Data—Joseph Faroll & Co., 29 Broad¬

Conn.,

New York 6, N. Y. Also available are data on Min¬
Mining & Manufacturing Co., and analyses of Con¬
solidated Engineering Corp.,, General Precision
Equipment
Corp., and A. M. Byers Co.

June 5.

on

'

■

....

....

..'V

V'-'

way,

nesota

Kendall

Co.—Memorandum—Auchincloss, Parker

52 Wall

Lear,

&

June 5, 1953

wood

In

La

Investment

5, 1953

annual

EVENTS

Street, New York 5, N. Y.

of
Chicago
46tfc
day at the KnollClub, Lake Forest, ~

June

COMING

Redpath,

Inc.—Memorandum—Rogers & Tracy, Inc., 120 South

Field

Salle Street, Chicago 3, 111.

Mengel

Co.—Analysis—F. S. Moseley & Co., 14 Wall Street.

Connecticut

May 29, 1953 (Los Angeles, Calif.)

New York Central
&

Railroad—Memorandum—Van Alstyne, Noel
Co., 52 Wall Street, New York 5, N. Y.
Oil

Corporation—Descriptive literature—B. S

tenstein & Co., 99 Wall
Street, New York 5, N. Y.
North American Acceptance

Lich-

'•

Bond

Company, Inc., 37 Wall Street, New York 5, N. Y.
Phillips Petroleum Company—Card
memorandum—New York
Hanseatic Corp., 120
Broadway, New York 5, N.-Y.

field day
Country Club.

Hampshire—Analysis—Ira Haupt &
Broadway, New York 6, N. Y.
>

Scranton-Spring
Cohu &

Samuel

(Connecticut)

Brook
Water
Service Co.—Memorandum—
Co., 1 Wall Street, New York 5, N. Y.

Southern Railway
Company—Data—Eastman, Dillon & Co., 15
Broad Street, New York
5, N. Y. - In the same circular are

Angeles

the

at

summer

party

at

Shuttle Meadow Club.

an¬

June 5, 1953 (New York City)

Wilshire

Bond Club of New York Annual

Field Day at Sleepy Hollow Coun¬
June

1, 1953

Midwest

(Chicago, 111.)

Stock

try Club.

Exchange

June 5-7,

Bond
brook

(Detroit, Mich.)
of

Club

summer

Detroit

Association Spring Party.

annual

June 9-12, 1953

golf party at the Meadow-

Country Club.

.....

'

Canada

--"

"

June 4-5, 1953

•

Beach Club, Rye,
■

(Boston, Mass.).

...

Boston Security Analysts Society
annual meeting and New England

Regional meeting at the Harvard

Club, June 4, followed by field
trips

Members: N.

74

Y.

Security Dealers Association

Trinity Place, New York 6, N. Y.




Lilley & Co. will discontinue their
New York office on the same date.

Ralph Robey to Join
Wertheim & Go.

Annual

_

Twin

June 12, 1953
New

Troster, Singer & Co.

40 Exchange Place,
City, as of June 1.

Wertheim & Co., 120 Broadway,

Municipal Bond Club of New
3-4, 1953 (Minneapolls-St. York Annual Field Day at the
Paul, Minn.)
Westchester
Country Club
and

Club.

and other Oil & Gas Stocks

Co.,

York

Investment Dealers' Association

of

(St. Louis, Mo.)

City Bond Club annual
picnic at the White Bear Yacht

Southern Union Gas

&

New

New York City, members of the
New York Stock Exchange, an¬
Convention,
nounced that as of Monday, June
Bigwin Inn, Lake of Bays District
Illinois Bankers Association 62nd
1, Ralph Robey will become as¬
Convention at the Hotel Jefferson. June 12, 1953 (New York City)
sociated with the firm in charge

June 2, 1953

—

Tennessee Production

ham

(Bigwin, Ontario,

1

Delhi Oil

in Lilley & Co., imd
of their New York office,
will become associated with Lappartner

manager

Canada)

June

We Buy & Sell

Samuel I. Gold, for many years
a

1953 (San Fran., Calif.)

San Francisco Security Traders
June 2, 1953

I. Gold

An¬

nual Election.

Public Service Co. of New

Co., Ill

Club of Los

nual

Corporation—Report—J. G White

&

field

Security Traders Association of

New York 5, N. Y.

Noranda

(Chicago,. 111.)

Club

Bond

in
June 5. V

the
.
.

Providence '
.

V

area

,

York

Analysts

N. Y.

(New York City)

of

research. Mr. Robey was pre¬

financial

viously
New

of

(Baltimore, Md.)

Bond Club of Baltimore annual

outing at the Elkridge Club.

the
from

1933; contributing edi¬
the
"Washington Post*

to 1935; associate editor and
of Security writer of a .column for "News¬
festival at the week," 1937 to 1946, • and more
1933

Society

spring

Sleepy Hollow Country Club.

recently, Vice-President and chief

June

economist

12, 1953

(Philadelphia, Pa,)

Investment Traders Association

of Philadelphia annual summer
outing at the Whitemarsh Valley

Country Club.

V

V

sociation
1946 to

V-

of
of

the

National

Manufacturers

As¬

from

1953.v

Joins Laidlaw Staff
(Special

June 5; 1953

of

Post"

until

tor

editor

"Evening

York

1931

to The Financial Chhonicli)

June 16, 1953 (Detroit, Mich.)

BOSTON, Mass.—Richard N.
Securities Trades Association of Ober is now affiliated with Laid¬

Detroit & Michigan summer out-

law &

Co., 80 Federal Street.

Number 5221... The

Volume 177

Commercial and Financial Chronicle

(2309)

return

No

continue.

We

with Korean truce, defense expenditures will
For longer term outlook, says our country is not
on war or

would

vote

even

dependent

billion

dollar sales of defense

on

more

facilities

our

and

to

ammunition

have

no

a

be

in

truce

adverse effect

defense

and
not

that

will

Korea
on

business,

immediately and severely

"There

will
upon

tial

defense

will nize

expenditures

curtailed.

believe

"General Motors holds substan¬

are

have

some

a
an

who appear to

in

Korea

adverse

effeet

truce

business," Mr. Curtice stated,

adding "I do not subscribe to this

We recog¬

bad

business

for

fense

expenditures

will

now

getting

into

the

present

ments

of

load

we

have

work

forced

postponement

schools, hospitals,
highways and other important and
necessary projects.

attitude

sincerely hope it will—I
it

believe

influence

would

mainder
fense

of

rate

little
of military

throughout
this

outlays

annual

have very

the

on

expenditures

im¬

be

if

I

—and

be

to

seems

on

just

are

stage

municipal and state improvements
huge. War and defense require¬

is

on

"Furthermore, to the extent that
defense expenditures can

in cessation of hostilities in Korea

the assumption that de¬

based

make-ready

of the Soviet Union should result

truce will be

a

our¬

year.

are

rate of

the

re¬

These

there

reduced,

should

safely be

be

cor¬

a

responding

reduction

taxes.

will release funds for

This

in, Federal

de¬

currently at

spending and for other

consumer

purposes.
an

"The

approximately $50

qualified to mediately and severely curtailed. billion.
handle. We did this in World War This
"As for the longer term, the
assumption does not take into
II. We are doing it currently to
consideration the large balance of prosperity of our country is not
the extent required and will con¬
dependent on war or defense extinue to do so as long as the need unexpended defense commitments
which amounted to about $85 penditures. The backlog of needed
exists despite the fact that the
fense

that

contracts.

obligation to the nation in
time of need to assume any de¬
our

"The belief that

the

"Even

and planes.

We firmly believe that
the progress of our country must
In his remarks to General point of view—and, judging by
be measured in terms of goods
Motors' shareholders at Wilming¬ recent statements of members of
and
services
produced for
the
ton, Del., on May 22, President the Administration in Washington,
benefit of the consuming public.
Harlow H. Curtice expressed the I appear to be in good company.
view

January 1. We

production.

civilian products in¬

of tanks, guns,

stead

in

been

happy to de¬

very

of

more

making

defense expenditures.

be

of

as

selves, for example, have several
large defense projects which have

products is considerably less than
is the case with civilian products.

President of General Motors, tells share¬

Harlow H. Curtice,

holders,

Slump Ahead!

are

American

people

continuing appetite for
ucts.

past. I
so

their

am sure

appetite

in

in the future."

$23,000,000

Dated June

Bonds

as

a

counsel, are general obligations of
the taxable property therein, without

School, Public Facilities and Metropolitan District purposes, in the opinion of

These Bonds, issued for Public
Baltimore County,

payable in Baltimore, Maryland.

from Federal Income Taxes under Existing Statutes and Decisions

Interest Exempt

limitation

Maryland

1,1953. Due each June 1,1956-93, inclusive. Principal and semi-annual interest (June 1 and December 1)
Coupon Bonds in denomination of $1,000, registerable as to principal only.

payable both principal and interest from ad valorem taxes which may be levied upon all

to rate or amount.

"

:

\v

*

AMOUNTS, MATURITIES, COUPONS AND YIELDS OR PRICE
Due

$774,000 each June 1, 1956-82, inclusive;
$770,000

June 1, 1983;

on

$131,000 each June 1, 1984-92, inclusive;

$153,000

on

June 1, 1993.
Yields

Yield*

Prices

Coupons

Due

Due

to Yield

Coupons

or

Coupons

Due

Price

or

Price

5%

2.00%

1957

5

2.10

1958

5

2.20

23/4%

1969

23/4%

2.80%

23/4

1964

2.50%
2.55

1970-71

23/4

2.85

1972-73

1956

1963

3

2.90

1974-75

3

2.95

1976-78

3

100 (price)

2.60

1966

23/4

2.65

1967

23/4

2.70

1979-81

3

3.05

23/4

100 (price)

1982-89

3

3.10

2.30

5

1959

23/4

1965

5

2.35

1961

5

2.40

1962

2%

2.40

1960

1968

(Accrued interest to be added)
$546,000 Bonds due June 1, 1990-93,

The above Bonds

are

and received by us,

The National City Bank

Glore, Forgan & Co.

Halsey, Stuart & Co. Inc.

Drexel&Co.

of New York

Mercantile Trust Company
of Baltimore

Continental Illinois National Bank The PhiladelphiaNational Bank
and Trust Company

of this advertisement, for delivery when, as and if issued
Semmes, Bowen & Semmes, Attorneys, Baltimore, Maryland.

offered subject to prior sale before or after appearance

Union Securities Corporation

Kidder, Peabody & Co.

inclusive, are not being reoffered.

and subject to the approval of legality by Messrs.

The Northern Trust Company

Chemical Bank & Trust Company

Blair, Rollins & Co. Stone & Webster Securities Corporation

EquitableSecurities Corporation

Incorporated

of Chicago

The Marine Trust Company

Stroud & Company

of Western New York

Roosevelt & Cross

Francis I. duPont & Co.

Trust Company of Georgia

Hornblower & Weeks

Incorporated

Laidlaw & Co.

Wertheim & Co.

Baker, Watts & Co.

John C. Legg & Company

Mead, Miller & Co.

F. S. Smithers & Co.

Stein Bros. & Boyce

King, Quirk & Co.

Andrews & Wells, Inc.

William Blair & Company

Incorporated

Bache & Co.

Hirsch & Co.

F. W. Craigie & Co.

Incorporated

E. F. Hutton & Company

Auchindoss, Parker & Redpath

Robert Winthrop & Co.

The National City Bank

,

Dean Witter & Co.

Sills, Fairman & Harris

•;

Baxter, Williams & Co.

of Cleveland

Fahey, Clark & Co.

Provident Savings Bank & Trust Company
Cincinnati

Field, Richards & Co.

Folger, Nolan Incorporated

Incorporated

Scott, Horner & Mason, Inc.

Paul Frederick & Company

Breed & Harrison, Inc.
'

May 28, 1953.




Anderson & Strudwick
•

4

the

it will continue to

v

5%, 23A% and

a

prod¬

Aggressive salesmanship has

stimulated

do

have

new

New Issues

Baltimore County,

ft

T. H. Jones & Company
•

10

The Commercial and Financial Chronicle...

(2310)

i

Thursday, May 28, 1953

■

*

■

rier statistical

New SEC

Appointments

Mean End of Staff Rule
By LESLIE GOULD
Financial

"Journal-American"

Editor, New York

(Reprinted with permission from the New York "Journal-American," May 22, 1053)

Gould, commenting on new appointments to the Securities
and Exchange Commission, which he says has deteriorated
because of "staff rule/' concludes "the best thing probably
would be to abolish the SEC and start all over again."
Once

iiis

Eisenhower

President

Capitol Hill the

latest

curities

Exchange

will

only

cago

Democrat for
formerly in the
securities business in New York,
Anniston,

missioner

.

The third

RowCn.

staff

Thus,
rule

importa nt
■h

be the

which

agency,

deterio¬

a s

inception

mission

20

a

has

been

strong
.has

Leslie

missioners

time' and

the

Com¬

again

and
so-called

their

"bosses."
Richard
who

H.

Com¬

Adams,

the small

banking and

be

to

Paul

Rowen,

1936,

being

Boston

ad¬

regional

of Kansas,
pointment in 1948. He is
Republican

a

but has proved to be anything but
in his voting
as
SEC Commis¬

sioner, is stepping out.

His term
expires next month and he failed

while

and

regarded

from

favorable investor

a

as

a

is

extreme

an

Dealer—just

reappointment.

•

for

shedding

no

has gone along

of tears,

for

he

The

Rock Island & Pacific.
*

$

designed

New

are

with the SEC staff,

11

m e n

former

THE MARKET... AND YOU

debts

t

sales.

hand the

corn

On

against

the

Impressive bidding for the
was

single session by this

aver-

ge over the last two decades,

stimulation,

roved

1954

processors

f its
-even

narrow

weeks.

ssion creates

a sense

o

the market any

of

un-

likely

good

over

*

tax outlook for

administration
made"

a

*

h

d 1 y

a r

dent 'in
as

that

the

minor

the

yet, and

tion

miracle

market,

by

section, seemingly

conceded
urden

will

that

be

below

as

Corn

Products, Penick

&-

has

overall

more un¬

(i.e.,

in

way. of a
the reduc¬

*

*

number

about
ber

as

the

EPT

continued

to

EPT

will

be

just to the usual utility attributes
weighty next Decem¬ of stabler dividends and pro¬
they are now.
~
tected
positions,
there - are

as

the

block

of

shares

*

0f

shares

in

the

Prospects Good-.".
r

The railroads

are

'

"

not

cur¬

nor

view

of the

change,

on

the old
have had to

a

the

sys-

of

course

The

the

will

.

.

only in

a

a,

-

mar¬

will be allowed
blocks off the floor
new
plan only when,

regular

not

auction

be

made

market

in

the existing condition of the
specialist's book and Floor

stock;
interest

(f)

a

current

a

stock

a

potential tax reduc¬

jalancing the probabilities as tion would bring to other
hey will exist around the end types; of securities. The car¬

the

on

market

value

of

the

particular block of stock.

.

Any specialist who has effected
purchase of a. block of stock

pursuant

prices, and when the purchase by

mit

specialist would aid
maintainingv a fair and

such

the number of shares and the

>

the

within

in

Floor; and

*

f

reasonable time and at reasonable
the

'

A,

(e) the apparent past and current

opinion of a Governor of
the- Exchange,
the sale of the
could

'

attempts which have been
made to dispose of the stock
on the Floor of the Exchange;

the

block

ihe

determination

such stock;

block

declining

purchase
the

or

(d) the specialist's position in the

; ;
I The. specialist

under

time

price

quotations with respect to

ket.;

in

Exchange

°* transactions in such stock
an the Floor of the Exchange
during the preceding month;

allowed

acquired

interest

such

.

*,

i.l0V has kuy -arij issV^
i°r
he

which

the

reasonable

a

de_

W pJ1(:e rang? an(? the volume

market

be

have

regular market

of

reasonabie

a

pro-

following factors may be taken
into ccnsideration> viz!

regulation, the

auction

specialist

at

makjng

fill

of, such

removal

h n

as

noty,be

m

prices, absorb the particular block
sto,ck
and ^ the purchase
will aid th
specialist in maintain.
ing a fair and orderly market |In

share, the amount,
the block off the
this

353

of

affected adversely by -I

was

Floor

within

order
on
his
book,
$50 .or above, at the

Under

market

the

and

than the
the Ex-

size,

Ruk

termined that'the

a

Under

would
at

board.

s

price

in

Fioor Gover-

a

purchase

granted unless he

share—
share less in

a

block

$51.

limited

$50

ffect

vided

his

10)000

market

current

on

to

to

to

the

Rule

353

shall

Department

of

sub-

Floor

him in Procedure on Form 81 daily reorderly ^ ports of all transactions in the

market.

stock

effected

on

the

Exchange

new

^or anY account in which he is

anc^ ending at the time that the
number of shares of the stock
'so*d t°r such accounts has
equalled the number of shares in
block purchased for such accounts,

Following

is

text

of

the

utility companies op-' rule:
1 "
directly or indirectly interested,
erating in sections of the ,v Rule 353: A specialist may, with commencing with the time that
country which, for one reason the prior .approval of a FloorLthe block purchase was effected

rently being affected by the

which

block

Governor, purchase off the Ficor

*

some

Rail

sold

Exchange

specialist might
shares off

a

of

Exchange at
' perhaps a dollar

stock




number

The approvai of

current

or another, are.
growing more "of the
Exchange, for an account
the next EPT progression, except inso¬ rapidly than the average. in which he is
directly or indinalysis of the tax problem far as the wiping out of this Here there is the added ^ad¬ rectly interested, a block of a
ecessarily will have -to be 'tax may bring about a rise in- vantage of some potential ap^- -stock in which he is registered,
without
executing the purchase
irected toward whether or the
regular, corporate rate, preciafion in .capital over the orders on his book at
prices at
ot this impost actually will and hence hurt them. Thus next -few
-y e a r s,
at. least or above the per share price paid
allowed to expire, without the
buying of .these equities enough to. offset whatever by the specialist for such block.
No specialist who has purchased
)ffsets, by the beginning of has- been the more encourag¬
further depreciation in buy¬ a block of stock as provided above
[954. If the market is looking ing in that it has been
going
shall
bid
for
or
purchase such
;ix months ahead, as it cus- ahead without the stimulation ing power that the dollar may

now

"zero plus" tick)

a

Specialists' Transactions Off the

large

a

he end of this year,

omarily does, then it is

period starting June 1;

.

*

any

of

purchased for such accounts,

he paid for the

the

to

Some. Growth Utilities

those

for such accounts has equaled the

.

*

with

a

until .the

buy orders (b)
from the specialist's book.
"
v
that no price concessions seem'
/ Under
the new plan, the buy \
"
necessary to bring in a big' orders will remain on the book, (c)
volume; of sales. Hence ac¬ to be executed in the normal

to

of

instance

a

has widened for such

of

have

he adverse action of the inustrial

For

buy

nevertheless,, in -the

uation

EPT Extension Discounted
Now

on

on

any

be

this

price above the rext preceding
different
sale
price

.

price of $50
he
paid for

Growth utilities have been
spending is going to
take place over the
inviting investor confidence,
Caution and a very decided next six
months, or else the for they offer an unusually at¬
-oup selection should pay off arguments currently being tractive combination for con¬
ver the
coming summer:
employed to force the contin¬ servative capital. In addition
*

Exchange

book at the price

move

he immediate future at least.

❖

stock

he

doubtedly has been expected cumulation of these, equities,
compilation out of it, though so far the time has been going forward at a
time
when the same basic
range of the last has been short for recording
force has been hurting others.
This mixed pro- any real
progress. Something,
to

asiness which will not

of

tern,

concerns

at

regulation

specialists'

required to fill buy orders

have

looming large Ford, and Clinton Foods, at a;
time of shch heavy, demand
directly ahead. The new
will

however, spending

insufficient

the industrial

(2)

market price on the Exchange was

helped decidedly by the ;
prices for this''
commodity. The profit margin

of next November. This is the

gest advances experienced in and

his

the

lower level of

STREETE

this time that the

capped

past week by one of the big¬
a

of

block

others-

been

By WALLACE

issues

iloor

buy

a

coincide

six months' trial

of the

Exchange
new

entire block.

t

in

necessarily at

the
They are presented as
those of the author only.]
\ j

preceding regulation,
who bought off ^ the

specialist

a

have lessened the demand for

s

rail

a

facilitate

Under the

-

machinery and rendered more
precarious the collection of in-

again.

not

period, commencing June 1.

Present

over

views. expressed
do

Chronicle.

wtn
+
?e4-w
i
S -n'
The effects of the regulation will
be studied over a six-month trial

off sharply
from the 1952 levels, hurting
prices

Stock

to

over

Governors

May 21 adopted

Corn Processors Favored
Grain

York

New

#

of

Board

anyone

abolish the SEC and start all

this

Specialist Rule Adopted to Attract Large i
Exchange Market

Effects will be studied

Francisco, and the Chi¬

not

New Dealer.

time

•

»

When

Blocks of Listed Stocks to

policy is not to name some groups and helping
from the staff, until there ethers.
Agricultural machin¬
thorough reorganization of
He had expected to be the new is a
the SEC, including its personnel, ery equities have been drop¬
Chairman, such hopes going back
to 1948 when Dewey, seemed such, rules and regulations, as well as ping for quite some time, for
a sure shot winner.
* some rewriting of the laws.' The more cautious buying policies
best thing probably would be to
on
the part of the farmers
His departure will- be the cause
to win the nod for

New

regard;

Southern

cago,

lawyer,

a

Harvard

[The
article

might be considerably
equities should prevail over chipped down, this group was
the coming summer. Equities
which should feel the weight

two San

for

except

buck.

not

weapons.

carrier

the

toward

Rwy., Seaboard,
Illinois Central, Denver & Rio
loan
Grande Western, St. Louis-

has been with the SEC since

years,

could

adverse devel¬

some

ministrator at the time of his ap¬

McEntire,

claims

of the

Clarence

business.
buck

to

stymie

even

Repub¬ titude
He is to

by Truman a year ago, as of
Republican from Connecticut.

age,

Gould

it

able

been

a

He has had experience in broker¬

so

that

is ahead

are

The staff

and which this speculative group

decided advance in op¬ will be found relatively lib¬ pressure eventually lightens,
erating efficiency. The impact: eral while waiting out the the airplane manufacturers
of this double leverage has, growth potential.
and equipment
suppliers
*
#
❖
could take a broad turn for
jumped the net figures, and
the buyers have been trailing
Aircrafts Oversold?
the better, particularly if the
along behind them. The next
The air problem is gett'ng current air-power controversy
few sets of monthly compara¬ a
good going over at present, ends as anticipated in the full
tives will be helped by the
but in the end it must be pre¬
recognition of the great pro¬
strike-reduced volume of this sumed
that, as formerly, this
tective
power
of these
time last year. Unless there branch of the
service will not

named

will

years ago,

end.

This; Colorado, Southern Co.

result of the Texas Utilities. Dividends also

be hurt materially by budget
opment which cannot now be cutting. On the assumption
first revealed foreseen, the constructive at¬ that
their
cash
allotments

member

is

a

member, whose ap¬

Chairman,

new

The fifth

since its

rated

new

pointment also was
here, is Ralph Demmler,
lican Pittsburgh lawyer.

this

of

a

and

receive SEC appointments.

to

are

.

.

Ala.,

Eisenhower

"career" Com¬

Paul

and

New

very

Andrew Jackson Goodwin, of

and

one

been

revealed
by this col¬
Sinclair Armstrong, a Chi¬
lawyer and a Republican,

As
umn,

re¬

main

has

first

Se¬

the

sion, and they
are confirmed,
there

which

lower.

been

have

costs

very

Fair Dealish.

Commis¬

for

selections

and

of

names

have offset the : lesser Lighting" &
Power, Middle lowed, but the more recent
tonnage movement. Since less South Utilities, Montana recovery tendencies have run
work
has
been
performed, Power, Public Service of into general market weakness
rates

also has been

Mr.

sends to

background in¬ Southwest, Delaware Power sold quite consistently over
cludes a level of gross* just, & Light,. Florida Power, the f rst four months of the
about even with the first four Florida Power & Light, Gulf year. Its reaction went
beyond
months of last year, as higher; States Utilities, Houston realities and a turnabout fol¬

suffer.
gory

Included in this cate-I "count

will be found Carolina

Power

on

&

Central

&

which

he is

indirectly interested:

directly

or
■

to

The

Financial

MILWAUKEE,
Petersen
„rifu

has
s

Chronicle)

Wis.—Glenn

C.

become'associated
oon

^

*

-cir-

WIth Bache & Co- 229 East Wisconsin Avenue, Mr. Petersen

was

price above the preceding formerly with'Loti L. Grief & Co.
"I „sale (Le., a "plus" tick), or _and A. C.
Allyn & Co.
'
1 / ;
(1)

Light,

m

the Exchange for an acr

Joins Bache Staff
(Special

at

a

Volume 177

Number 5224

The Commercial and Financial Chronicle

.,.

(2311)

financial

Have Television

support

Patently,
tire

1

Vice-President and Director

Sales

of

Zenith Radio Corporation

*

v

*

.

»

.

nation

-:

mature

Says economics of the industry have not
urges subscription TV, i.e.,

scription income.

:

caught

Phonevision,

of opening

as means

the

latest

television

service,

possible
into

programs,

being

combination

with

advertising
subscription income.
'. ;

'

V

available premium attractions.

Television

.

Small

In this matter of

y

1i *

in

vision .service

The

is

\

-

\

'

the

v<

•

.

to

me

-people

you.

•

for

need

no

to

make

television

underscore. national'service—and

tremendous

•

impact

.

to

advertising medium

the-development

^e Show Is the Thing

the

The

has

made—on

the

the

on

—

ufactur-

man

ing and broad?
casting indus-

•
•

try -'and,
■

especially,
the
+

on

advertis-

ing profession,

xhe

,.

nothing

short

But

of

the

pnterprise.

television

fancy.

be en

phenomenal,

credit to

American

The

years

has

,

truly great

tew

a

Bonfig

...

to

its

in

of

economics

full

stature?

I

larger

the

believe it needs to set its

economic

house in order, by broadening its
financial base to encompass sub-

scription income. Television needs
this

subscription

income

menting its present
advertisers—to
advertisers
to

maturity
I

am

sure

television
when

the

healthv
heaithj

have

of

come

age

able

economically

valid

is

and.current

which

events

technically able to do.

now

The fact that television today does
not

provide the

public with this

full panorama of entertainment
not

of the

criticism

a

television

economic

television

al;)je |.0 transmit

reasons,

not

are

-py

at

0f

TV

going into

the

present
top

—

pictures,
many
legitimate
productions, opera, bal-

sports

theater

let

programming

motion

major

and

events,

^

other

culturai

fare —is

simpiy — and logically — too expensive for the advertising spon-

v

sor.

'

"P/:....

,

Evld/"cre ls mount!nS that-this
.ar^? °/
programming, too cost-

aclvertising purposes,, is expand
ing' LeavmS aslde the Production
lights"

or

costs,

also

must

we

entire

ets

the

far

t'h

,mI
the

jt

be

from

to

me

TV programming

bei

rentl

finest

criticism

tainment
in

It is not

On

of

televisions

tion j

public

national
the

of

TV

s

be_.

sections

of

the

cities

as

By a truly
I mean bringing
country—to

well

as

the

the

large

metropolitan centers.
X

mean

they will have television. V
The

for

reason

apply

for

And,

cetvers

k

and
of

^

of

providing

done

and

thusiastically
But

for

next

of

TV.

believe national

without

would

have

to

advertiser.

But

service

So

;.in

isn't enough

the

small

advertising

markets

money

can

can

of'

parts

without

seem

such

a

benefit

would

help

all

we

this

the

that's

television

And

from

grass

be

shot-in-the-arm

to

maturity.

reach

stand

healthy

to

eco¬

nomic maturity.

The. entire concept of subscrip¬
television and Phonevision
with

me

profound feeling

a

commercial system is'

a

not

only "in the public interest,"

but

that

it

also

provides

tirely reasonable
sist to television

and
as

an

an

en¬

logical

as¬

advertising

medium.

with

overall
of

CINCINNATI,
ham

advertising
can

TV

greatly

audience.

premium

subsqription

and

program¬

&

form
rey,

be

Co.

will

subscrip¬

television, working

attraction

Cunningham, Gunn
& Carey Formed
Co.

that

see

ming, supplementing—but not re¬
placing—the advertiser-sponsored

in

needed

America

can

television,

the

specialty

just

support

to

it

combination

supported

'.least

there

remain

tion supported

The

station,

to

you

operation,
pretentious

—

presently covered.

>

of*' the

the

those

markets

expand

for

to

And

relatively high costs of television
even

and

help support
additional competitive stations in

depend

because

be

Sub¬

country which presently

service.

sub¬

scription television the small town
telecaster

advertisers

home

on

to television the premium

destined

buy

than the top 100 to 125 mar¬
kets for their network shows-.
more

that

to

basis—will

attractions, currently unavailable.
Subscription TV can bring tele¬
vision

means

boon

open up

the

This

economic

seen

distributing it to the

of

leaves

advertising profession.
scription TV — Phonevision

small

advertisers will not be able to

gramming not yet
TV and

tion

me

the

This announcement is not an

ojjer oj securities or sale
J

or a

J

'

.

merge

Gunn, Carey &
of

as

June

Cunningham, Gunn

Inc.

X

&

to

Ca¬

Officers of the firm will

Russell I.

dent;

Ohio-Cunning¬

and

Cunningham, Presi¬

Clemens

President,

and

E.

Gunn,

Walter

J.

Vice-

Carey,

Secretary.

Offices

the

Commerce Building.

*

Union

are

located

in

solicitation oj an ojjer to buy securities.

'

:

:

'

May 28, 1953

•'

852,840 Shares

'

Potomac Electric Power Company

I
t

turity

to

—

servjce

0f

with

received

toward

.

to

the

Common Stock

.'

shares at the
,"rf.

-

.

'

*

Share

Company is issuing to holders of its outstanding Common Stock transfer¬

able warrants, expiring

en-

June .10, 1953, evidencing rights to subscribe for these

price set forth below, all

Common Stock may

as more

w

;

fully set forth in the prospectus.

be offered by the underwriters

as

set forth in the prospectus.

the

make

ma-

national

a

things
to

ready

The

of

programs:

economic

become

ap

technically

TV

Subscription Price to Warrant Holders

is

distribute—

$16

providing

importantly,

the

cost

sponsors.

no

doubt

subscription
economic

in my

mind

television
device

can

whereby

telecasting industry will reach

this maturity.

per

share

a

for

underwrite

me

strong, continu-

television,

the

future

more

of

the

by Mr. Bonfig before the

Chicago
Federated
Advertising
Chicago, 111., April 30, 1953.




Club,

he obtained Jrom such oj the undersigned (who
prospectus) as mag legally ojjer
applicable securities laws.

are

these securities under

analogy be-

spell

this out.

newspapers

from

tele-

and

newspapers

$2,458,500,000

In

Dillon, Read & Co. Inc.

1952

received

advertisers,*

Johnston, Lemon & Co.

Alex. Brown & Sons

Folger, Nolan Incorporated

according to the latest estimates.In 1952 the

newspapers

from

received

newsstand

a"d subscriptions according
latest Bureau of AdvertisIP®

.

s- Jn

es'™

J?er w

Now

"

compare

In

this

with

Merrill

Lynch, Pierce, Fenner & Beane

Ferris &

Company

:

-

Auchincloss, Parker & Redpath

Jones, Kreeger & Hewitt

Goodwyn & Olds

,s'

support of
newspapenTcame from the readers,.
t,-

vision.
address

draw up an

the nation's

demonstrated that the commercial

to insure

map

the underwriters named in the

and Television
Let

rapid march of events has

ing demand

Copies oj the prospectus

An Analogy Between Newspaper

$1,208,905,000

establishment of subscription television-and Phonevision-can do

*An

great

casting industry

re-

years,

public

television

gtep

to

to

in

sound

a

reluctance

magazines.

or

that such

The best economists in the broad¬

great job,

a

formative

the

vision

more

be

to

are

benefits

Subscrpition TV

;

Believe

a

is understandable to you
the small town broadcasters.

the,

that is onl

these

tively by the

The

full

Par Value $10 per

the

the

advertising—that

Americans

the

cus¬

effectively

.

sound
news¬

a

most

the

potential
be

obvious that the advertising

is

tween

be

by TV

million

denied

markets

t0

salesmanship,

our

cou

ing vehicle must be kept at the
level where it can be used effec-

that

televi¬

1

as

for

is

Phonevision's system of opening
up the reservoir of premium pro¬

means

million

just

it

papers

This

cannot

reached

■

picture

of this flexible national advertise-

There is

this

television

the adver- the advertising support must be
nation-wide medium,
supplemented by direct subscripthat furnishes outlets—a choice of
tion support from the viewers, v •
outlets—in all parts of the nation.
tisers with

20

is

as

indica¬

subscription

without

sion,

20

stations.

it

million

20

April 1, applicants in only

public has purchased
23,000,000 TV sets in just a

during
a

^wonders of television, to all

small

city

tomers

is

ad_;

by the

ma-

service.

service,

of

and

television

economic

might like to think that the

will alsp agree community has

mark

turity will be its extension into
truly. national

upwards

enter¬

advertising service
publishing world.
revolutionary economic

a

concept,
for

.

,

informational,

and

entire

that the

It

.

you

do with¬

or

the basis of present

,

..

another

reception,
entirely.

area

the

roots

vertisers. Even though as director"
of sales of Zenith Radio Corpora.-

advertisers

structure which puts the
burden on
the

be^leve

.

that

of

of, television

cur.

avaiIable

made

American

is

financial

.

channel

circula¬

country

N

commercial sponsors.
T

TV

a

set

The combination of
subscription

n;ar.astronoraical

footing the current TV {ew
years is due solely to
bill.
It may, however, be contechnical
quality
of
these
sidered
economic

given

I

which

almost entirely on the home town

f

.,

3

are

a

(and

overall

the

that

that enjoy splendid radio service,
there is today no indication that

technically to

is

time. For the most part, this large

over

who

been

city

advisedly)

from

small

895

Here is the significant statistic.
As

0f the entertainment items

many

which

to

public. the

rt

demand for

congid|r

bring to an eager
whole panorama of entertainment,
sports

The

smallest

word

Phonevision,

vision is used to help support the

Goldfield, Nevada, population 336.

the

home.

The

the

the

will agree that distribution costs when TV blank-;

you

will

it's

income from

attain

the

of

re¬

in

programs

aug-

-

all hope for it.

we

has

sets.

grade

firmly

use

from

income

subscription TV—by
putting the television medium on

in-

the

less.

or

again in¬

creasing

advertising income has built

more
and
better
the
programs, - 100 of the 895 cities had seen fit
the greater total audience there is to apply for a TV channel. That I
f0r advertisers and, of course, the means that in just under 800 cities

area

_

still

is

What, then, does television need
attain

It's

buys television

see

comfort

easy

a

vitality

medium have yet to catch up with
lts technology
to

fundamental.

stage axiom that the

public

ceivers

For

growth, in just

;

H. C.

is

reason

ancient

sub¬

tion.

,

people will have virtually no TV
service, or be without a nearby
station, unless subscription tele¬

population of 25,000

a

with

country's printed media into

out TV

final

for

of profit¬

assurance

operation

scription support added to ad¬
vertiser support will increase the
number of outlets, thus

wise depend upon the vagaries of

country,
.

television

a

this

fringe

2,000 channel

some

station

stations in hundreds and hundreds

issued its

year

of

cities with

,

general public, show is the thing.

-

last

any" blueprints

culation. The
able

of small markets that must other¬

covering the entire

.

of

television

national■ mission

.

than

the

pro¬

own

receiver, thus increasing set cir¬

profitable operation

and

Markets

the horizon today:; allocations covering the
it;; earmarked channels

on

-postwar

blossoming

a

—

broad¬

strong plus factor

a

to

and

you one more set of figures. When
tions,
real:. the. Federal Communications Com¬

"

a

their

desire

spon¬

industry, land',

manufacturing

more

to

of

.

,

income

added

<

I would like to examine briefly; set

part

stations

the

sored programs, could finance the

nation, I just want to lay before
the economics of television.. There

enjoy local

these

shows, will be
in

small

"pay-as-you-see"

gramming.

mature tele¬

a

■>

can

that

so

cast day to

same

of

towns

devote

can

only

can

and

television,

sup¬

this

revenue

>

that most

way

TV service of any kind is
through
the establishment of
subscription

news

:

•

up to television currently
Holds there is not enough local
advertising, to support television stations in small home markets

;

'

best

V

with its technology, and

up

with

plying the entire nation with the
come

sponsorship

only

•cities

of
advertising and
subscription income. I believe that

Asserting"television is still in its infancy," Mr. Bonfig points out, in order to expand to small towns and outlying areas, it s
must augment its financial support from advertisers with a sulb-:

*

en¬

combination

.•

a

;■

supplying the

material, could not
into being without this

come

on

The

news¬

feature

have

»

.

mature

our

and

By H. €. BONFIG*

V

station
alone.

service,

paper

Pay-as-You-Go
■--

the

from

viewers? Zero.

on a

11

tele¬

Mackall & Coe

Robinson and Lukens

Rohrbaugh & Company

Rouse, Brewer & Becker

1952, the nation's tele¬

casting

industry

000,000

from

received

advertisers.

i

$580,Direct

M

l

12

The Commercial and Financial

(2312)

Close Maine

Materials Handling—
A Growth Industry
By ROBIN

items. Buyers see no need to stock

Turnpike Financing

in anticipation of shortages
price increases.
up

to higher pay rolls
topped off. Overtime is being

has

Harris, Upham & Co.,

Philadelphia from May
name

revolutionize

can

easing

Layoffs and

in

in this

up

more

replacements

selec¬

are

-

re¬

expanding. Technological im¬
provements due to plant modern¬
ization programs are

Exhibition held in

reported,
productivity. Employ¬

with higher
ment

managers are watching
closely the steel wage negotiations
now under
way. V
**

handling equipment is an all-inclusive term de¬
scribing tools and machines which, lift, trans¬

Materials

an

tivity

ancient product.

an

of

ported. Seasonal outdoor work is

May 22 demonstrated that a new

18; to

still plagued by
skilled workers,

are

shortage

respect.

'

Handling

Materials

National

recent

along the line. While

areas

others report

of material han¬

dling technique aimed specifically at reducing costs on a mass
scale for factories and industries. Presents data on various

The

all

several
the

companies in field.

trend

reduced

Members, New York Stock Exchange

Mr. Winkler calls attention to advancement

or

Employment
The

LLOYD WINKLER

Research Department,

,yadsruhTn28, 1953
May orhC

port and place any material. Thus a hand
!* shovel is technically material handling equip¬
ment as much as the modern fork lift truck

Buying Policy

V:

-

'

which

raise

can

great

as

a

load

it

pounds, move it to another place and stack
in

new

a

A

Buying policy is still

15,000

as

ran

leading spokesman for the industry, the

that

infant industry.

statement would be that

tion of costs
tories
Robin

L.

on

industries

and

much
Jerome C. L. Tripp, President of Tripp & Co., Inc., New York

investment

with

concerned

the

and

is

fications of which will

be

more

and

more

felt in

nationwide

a

be

1;

Recent

Minimum Est.

Price

Dividend

,

Since

7

>'

holding

well, though

up

new

A composite opinion of
purchasing agents who comprise the Na-

tional

Association

Agents

of Purchasing
Survey
Com-

Business

i

s

Swanton,

Repeating
Arms

Com-

New
Haven, Conn,
indicates

it

that

division has become

very

o v e

ity

manufacturing

significant than keys and locks.
$1.60

1936

5%
and shovels

Co

in

42V2

$2.401906
5%
Manufactures chains and sprocket wheels
for mechanical
power transmission and
conveying of materials as well as
speeder-shovel cranes and railroad car
movers and unloaders

Chain Belt Co.
in

33

addition

to

general

$2.00

conveyor

1902

process

operated
pany

has

a

unique

electronically

In

guided

Nations

36%

largest

producers

$2.50
of

com¬

"

missile

mining

1929

a

6%

reduce

to

60

State Street to engage in the
securities business under the firm

SAN

Oliver

Armingtoif^rihiSt0mcmit?0' h^1*' drGS'
with

Livingstone & Company and

Jordan

&

Co.

Prior

pL£rn
T'

thereto

he

to

The

Financial

Aubrey,

Eloy

^°-»

Melen-

-




Francisco Stock Exchanges.

of

the year.
can

July

1

and

price trends, 57% see
changes up or down,

sidewise

general

a

Thirty-five percent

n

in

for

the

increases

j

The Committee

a

is, possibly, to be the banner

in

portant commodities.

mem-

.,

b

expecting increases

To "
osse
steel

.

which

crease

for

other

\

a

might set

wage

'

b

triem

wage

Stein

& Co.

will be

Scherck,

by

Richter

Company, effective June 1.
In addition to his partnership
-

securities

in the investment

com¬

Mr. Stein is on the board of
directors of A. S. Aloe Company;
St. Louis Browns; Berland Shoe
pany,

Stores, Inc.; Elder Manufacturing
Co.; Fulton Iron Works Company;
Company; Paramount

The Medart

Shoe

Company; St. Louis Public
Company; Velvet Freeze,

Service

man

Machinery Company.

Woodcock, Hess to Be
NYSE Member

Corp.

Broad

a

inventories

rate

Bodman, Secretary and Treas¬
Directors

urer.

is

M.

pattern

materials

improving,

for deliveries is shorter

staff of

decline.

talance.Tead
on

the

and

officers,

Clifford G.

With Managed Inv.
(Special

to The

time

many

grams,

Financial

Chronicle)

FRANCISCO,

Charles
to

are

Hess

Pennington.

SAN

purchased

turnover

H.

.

continue

showingbetter

Woodcock, President; William Z«
McLear,
Executive
Vice-Presi¬
dent; Daniel J. Taylor, Ralph E.
Hendee, Vice-Presidents; Warren

on.

agreements.
.

Unworked

The

-

H.

over

™

in-

Inventories

is expected to be more

Elliot

taken

William

j

as

possible before the July vacation

recess

,£e

the possibility of

shutdown. The vacation production

*

pro-

year,

Elliot H. Stela

business

All

faPst

t0

notes that June

15

..

materials
tendency to level

xA

30-to-60-day

the

years.

of

for

past

industrial

growing. Some areas

(i

the

Street,
members
of
the
Philadelphia-Baltimore Stock Ex¬
change, on June 4 will become a
out or decline this month. Ad- member
corporation of the New
justments, following decontrol, are York Stock Exchange.
The Ex¬
believed to be about completed, change
membership will be held
Supply and demand are
be- by William M. Hess, a director of
coming
the
controlling pricing the corporation.
fact0r. Softness in foreign markets
Officers are Arleigh P. Hess,
bears heavily on several inci¬
Chairman of the Board: Harold P.

Buying policy contmuconservative, finds the
ji

in

stment

PHILADELPHIA, Pa. —Wood¬
cock, Hess & Co., Inc., 123 South.

treTd:

very

the

gradual decline. Only
visualize an upward trend.

extras,
prices show

with much presPay rolls

f

since

n v e

a

Except

Davies & factories schedule all shipments

Montgomery Street,

between

steel

further.

onnf °7 »L hand-to-mouth
yu-aay spread.

invcstment £ers of the New York a"d Sail
-

October,

inventories

3nd J°hn R' Sigman have duction month of the

become connected with

end

Commodity Prices

still

majority

Calif.—
H.

pur¬

.

Chronicle)

FRANCISCO,

can

i

to forecast, the

care

^

Three With Davies Co.
(Special

far

Questioned on the future price
critically short of skilled
57% of
cxecu!
workers, others ar
g tiyes gee nQ major movements up
position. Overtime generally is
or
down
for
several
months.
being cutback. Productivity is im-

equipment,

are

ing

Armington Co. Formed

since

materials

have stopped

proving.

BOSTON, Mass. — Henry W.
Armington has opened offices at

8%

price structure, the report

continue to slide,

Joy
continuous miner" which
combines cutting,
drilling, blasting and loading into one
operation particularly
applicable to labor and cost
saving in coal mines.
manufactures

stronger ten¬

trend this month would be down,

sure

Joy Manufacturing

a

o

Inc., and the United States Hoff¬

estimate

states, shows statistical strength,
due principally to the advances in
steel
extras.
Without
that, the
Unworked

pro¬

as

percent believe they

radical

slack

production

The

on

trends

gradual decline in business

movement.

1952, is noted in this month's re¬

?

addition,

controlled

show

broker¬

business

opinion

the

as

expecting

plies to the Committee.

at the end of
full line of electric and
gas

a

loading and moving equipment.

loader.

and

Lull Corporation

company manufactures

far

off. The widest
between falling order books

gap

equipment this
1943

in5^[ter the Purchase of the
1952 the

no

Robert C. Swanton

May— nothing alarming. Prois holding up well, while
to

an

executives,- with, -very
hedging as to peace,-war

a

his

invest¬

Co.

&

many

Survey Committee

On future

soft

orders

*

Dec. 31.

high, but

dency

6%

manufactures concrete mixers and
placers.
Baker Raulang
16%
?
company

n s

has

Elliot H. Stein

defense

as

see

duction
new

and, in

year

price

they

as

volume

spots appeared

Manufacturer of commercial size
power cranes
for material
handling by non-road building companies
and for earth
moving by construction companies.
Belt

i

for
and

Sixteen

in¬

r e m a

some

30

used

Link

r-all

Stein,

firm

age

hold that view. Another 31% take

dustrial activ¬

more

Street,

announced.

ment

vacation time in July and August,
will be good. Fifty-three percent

p a n y,

a

Shovel

Scherck, Richter Company.

own

that

W inche ster

37%
$2.00
1899
5%
manufacturer of keys and
locks, company is
strong position in electric and gas operated
lift trucks and last year's sales reflect
that this

Thew

Activity

cutbacks, • estimate
businessthrough,the third
quarter* making ;allowance f or

Purchases,

,

Yield

7

North

headed

chasing
and

for

use

as a
general part¬
investment securities

the

active

little

conservative

1951, has been

Business

Direct olrof

foremost

assuming

320

of longer duration.

ahead

Robert

C.

Towne

A

in

ner

who

prevalent this
cases,

the

on

Elliot H. Stein

the

►

.

Asked

whose
Chairman

40y2
$3.00
1933
7%
leading manufacturer of gas, diesel, and electric power
lift trucks.
Recent acquisition of Michigan Power Shovel and
Ross Carrier places
company in the construction and road
building field.

now

underwrote

orders show stronger tendency

duction

mittee,

A

&

markets.

Scherck, Richter

Fourth

to slack off.

Clark Equipment

Yale

that

Proceeds from the sale of the bonds will

equipment

Dividend

the

LOUIS, Mo.—Admission of

firm of

is

Several companies have-demonstrated an
earnings ability and
capacity for growth in this industry and related enterprises. Some
of these, with related
dataware listed below:
r
'
•

firms

ST.

Business Survey Committee of National Association of Pur¬
chasing Agents says condition is not alarming and production

tell, but that the industry will forge ahead

can

of 237

group

Cite Soft Spots in Industrial

doubt.

no

In

on

Mr.

Which companies will be successful and which fall
by

only time

Looking

is

by American industry points up the fact that the mate¬
handling industry is on the threshold of tremendous growth.
Already the competition is keen and new companies are entering

can

of

90

the

Stein to Be Partner

held in the 23 Wall Street offices of

were

Turnpike and for the redemption of presently outstanding 2^%
2%% bonds of the Authority.
;

since 1946

there

view

to

days

months.

be used to finance the extension and improvement of the Maine

rials

the field.

banking

Maine Turnpike issue.

Because of the introduction of modern materials handling
techniques and equipment, costs can be reduced markedly. Since
the inception of a technical materials handling program at the
Camden, N. J., plant of the RCA-Victor Division of the Radio Cor¬
poration of America the company has made an annual saving of
not less than $330,000.
It has been estimated that from 20 to 35%
of the costs of manufacturing in many industries are consumed in
materials handling.
If these costs are cut by 'modern methods
the savings will be reflected by greater profits.
^

the way

Refunding bonds

and

funds expended for new plant and

60

effect

many

(center), is John M. Lancaster, of Stifel, Nicolaus & Co., Inc., of
Chicago and St. Louis, which together with Tripp & Co., headed

largely eliminated by machines.

enormous

shown

J. P. Morgan & Co. Inc., paying agent for the bonds.

the economy.

With the greater utilization of the modern fork lift truck, for
instance, in warehouses more equipment will be stored in much
shorter time.
The unloading of cargo, now partially done by such
material handling equipment as power cranes, can be made more
efficient by the wider use of lift trucks and electrically operated
loading cars. The back-breaking labor of the stevedore can be

The

banking firm, is

with the issue of $75,000,000 Maine Turnpike Authority Revenue

handling of material. Today material handling
a
refined engineering technique the rami¬

Winkler

to

buying policy in general

(left), handing a check in
the amount of $73,158,333.33 to Joseph Say ward, Chairman of the
Maine
Turnpike Authority, closing ceremonies in
connection

scale for various fac¬

mass

a

30

Two-way escalation is being of¬
fered to influence longer forward
commitments, but it has not had

..." A more accurate
prior to World War II
material
handling was not organized on a
technical basis aimed specifically at the reduc¬
was an

with

majority

Institute, Inc., has asserted
"Before World War II material handling

Material Handling
'

"hand-to-mouth"

g e,

days,

arrangement.

of short

M.

Eller

1

Calif.—

has

joined

the

Managed Investment Pro¬
41 Sutter Street.

formerly

Company.

with
•

E.

'

•

-

He

was

Hutton

F.
v

■

-

&

J

Volume 177

Number 5224... The Commercial and Financial Chronicle

onstrating that

Dollar

we have the power the gold standard, politicians aim to go through a period of painful
against this world- to entrench themselves in office; deflation in order to restore ecowide infection, whether we can that when once a party is power-,nomic sanity, which would be the
boast of immunity from the germs ful enough, by the application of only way to construct a sound

Literacy—the

of

w

American

resistance

of unsound thinking that are infecting the world.
"
" '

By ORVAL W. ADAMS*

Our Greatest Problem
Our Greatest Problem

Executive Vice-President, First National
Bank,
Salt Lake City, Utah

as

learned profession—a profession
involving; an intimate and accu¬
knowledge of subjects re-

rate

.

.

highly
specialized
training and

quiring

..

lmposing
du¬
ties
upon ; its

We

know

them.

They
They

exist.

upon

the-, members
f

th

o

learned

e

pro¬

fessions.
cannot
our

We

serve

country

the best of

to

ability

our

unless

the

r

duties

we

resting

.

•

,

.

,

.

.

identified

the National Industrial Conference

Board,
of

"the U. S. A.

government

is

victim

a

by subsidy,

fake

the-savings

money

of

-

its

..

,

being

and
.

.

.

„

destiny of all peoples center in
the Preservation and perpetuation
national solvency/ , • *

,

is little

is

time

far

tion, it
to

have

not

They

have

pressure

organization,
They issue
They
conduct

no

group.

propaganda.
parades

and

make

speeches

or

have

banners

no

They have

no

no

implements.

controls,

no

no

terest>

press.

[larti

no

he"

have

by

bu-lt

UD

and

th%%oml7prac-

of feeding their

following out

e.v?n us; y°u anf me> their 0f the public treasury, giving little

unofficial custodians, the bankers

?f Amenca. They have

lobby

no

sound

upon

institutions.
J." *

in

us

our

own

!*«

•'

What Bankers Can Do

.

-

;

I take
bankers
tageous

the

>

v

position
in

are

a

-

•

the

that

advan-

more

position

citizens to satisfy its lust for ever-acquire,

to
understand,
disseminate knowl-

and

increasing power." He said also:
"The welfare and protection

edge dealing with dollar literacy

promised for the-future in return

f

'

-

That nnift,vfan« knnw that

it

roll^

stated by

fact

so

Daniel Webster said in

adher!

for party

to make more and more citi¬
economically dependent upon

the public purse.;

fraud

—a

Chairman Martin of the

who'has

said recent¬

most

the

selves.

able to

And

the aged

^

deflation

sets

"To

; y,

,

? '

(6) That .by prolific spending of

debased currency, divorced from

Will

influence

nomics of the

votes.

If

situation

us

.

the

same

and

'

subject, the

preserve

independence,

our

let oiir leaders load

with perpetual debt.

We must
between econ-

and liberty, or profusion and
servitude."

eco¬

It is

un¬

on

rare

indeed when

watchtower

the

even men

seem

cruelest

and

that has

ever

credulous
Jordan

only be called

can

colossal

most

the

fraud

been practiced on a

people." No doubt Dr.
in mind the dollar-

had

political

of

record

the

past

20

years.

citizenship of this great coun¬

Continued

try would be willing and anxious

on

statement

a

Dr. Jordan

when

he

proving that

not too far wrong

was

referred

the

to

colossal fraud that has

practiced

on

"most
been

ever

credulous people":

a

"A special item in this issue of
'Monetary Notes' deals with losses
in purchasing power of savings

bonds,

time

deposits

page

mately 65

the

times

on

these

the

loss of

$1,-

901,000,000 of depositors in banks
for the years 1921-1933.' He states
that-'this economic disease, which

to

cancerous

a

growth, is not widely understood,
partly because people's savings
are

remote as compared

ters

relating

to

with mat-

immediate

in¬

come.'"
Who

a

these

superior intelligence. My reason
making the assertion is simply

that

have

we

been

opportunities

have had

exposed

to

to
We

learn.

occasion and

more

$10,000,000

more

opportunity to know all the businesses

of the country, and the fi¬

nancial

and

interests

economic

of all

the

country, than has

Potomac Electric Power

and

lives

people of the

any

other single

First Mortgage

group.

It

is

sincere belief that
here has a definite

my

every

one

this

country

pened

credulous,

for¬

to

of

our

what

money

Dated

can

to the forces

struction

are

moved to tears by the lamen¬

tations

of

the sad

fate of

forgotten
the

politicians
some

people.

politicians

"concerning
unidentified

Scarcely
pointed

ever

exactly who these forgotten
pie

and

are,

they

for
such

possess
.

,

have
out
peo-

whose

welfare

grave

concern.

■

Price 102% and accrued interest

hap¬

has

the last
dollar il¬

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

The Prospectus may

threatening the de¬
individual

of

S

initiative

Our

forefathers

builded

such

well

HALSEY, STUART &, CO. INC.

and left behind them impressive
evidence of what

can

be

the- independence

tiative

of

the

wrought

no

WM. E. POLLOCK

with his fellows, are re¬
and rewarded. There is

record of

our

L. F. ROTHSCHILD

BEAR, STEARNS & CO.

ini¬

and

individual, cooper¬

forefathers hav-

THE

SHIELDS 4. COMPANY

& CO.

GREGORY Sl SON

COURTS 4, CO.

4, CO., INC.

SHEARSON, HAMMILL A CO.

attempted to ignore the teach- ^

INCORPORATED

STERN

BROTHERS & CO.

THE ILLINOIS COMPANY

SINGER, DEANE A SCRIBNER

ROBINSON-HUMPHREY COMPANY, INC.

*n&s °* history, to set aside ex-

perience, or to reinaugurate discarded theories paraded under
new and attractive names, such
as New Deal and Fair DCail.
We must ask ourselves whether

that virus

of

misconception

t.£-

takeh.hpld of

Texas, May 25, 1953.

profession; whether




June 1,1988

through dollar debasement.

ating

we

Due

June 1,1953

to

spected

Sometimes

Bonds, 3%% Series due 1988

years
because of
literacy, and an obligation to do
all in his power to put an end

refers?

know!

Company

in

20

gotten people to whom Dr. Jordan
I

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

an

The

for

when
are

This announcement is not

of our fra¬

bring about a proper understand¬
ing on the part of the people of

losses

analogous

men

ternity have been endowed with

obligation to do what he

three items alone exceed $123 bil¬
lion which, he says, is 'approxi¬

is

opinion that the

policies for the

period 1945-1951.
that

banks,

in

group

Dr. Spahr esti¬

and life insurance

mates

in

single

I do not say this boast¬
fully, not because I entertain the

more

Here is

other

any

us

has'

in the banking
we are

dem-

STEIN

BROS. & BOYCE

MULLANEY, WELLS A COMPANY

HELLER, BRUCE & CO.

THOMAS 4. COMPANY

ANDERSON

INDIANAPOLIS BOND AND SHARE

•

May 27, 1953

able

to

this approaching force
of disintegration. And as for the
recognize

America.

for votes

than

im¬

Southern

stalwart

omy

derstood, that would not be true.
The

his daily bread

make our election

sanity,

were

the

must not

we

^
1S

to restore economic

earns

democrat, Thomas Jefferson, said:

The painful experience which x
necessary and must take place in
order

who

mortal

...

.

all others
interest in

and who suffers

by mischievous legislation, is

man

On

being true, the economic suffering
that will take place during a de..

deepest

industry, to give it both encour¬
agement and security; but above
all, security."
" '

in, businessmen, bankers, workers,
suffer alike, as most of us here
know from the early 1930's." That

.

above

man

the

currency,

A vast majority
of us live by industry. The Con¬
stitution was made to protect this

defend them¬

when

of

by his daily toil.

robbing the saver, the pensioner,
least

very

sound

is a sneakthief—it
seems
to be putting money into
our
pockets when, in fact, it is
retired workman,

out

earnings by first cheating
them out of their understandings.

"Inflation

the

them

cheat

to

their

The

—
those

"I

industrious labor¬
er in this country to be on guard
against those who would perpe¬
trate against them a double fraud

Reserve System, who

ly,

1834:

admonish every

'; ably

ticipated by those affected.,

g reward

J
ents, to permit more and more
people to fatten on the public pay¬
zens

of{ the

aware

run

tion and self-destruction.

whTnot heTn"

SKflnd

i-pbs

v
- r

,

national solvency is

upon which
maintained :

and

savings

the vital principle of
donars — the foundation

thought to

are the un-

defenseless

devolving

.

'

political

frequently

and

^Led
tjce

Jhey issue no publicity They
spokesmen, no defenders
«.

000,000

two years

not

'»•

*

there is a
with more' vital
consequences than any
other in
our
time, a race between educa¬
being

Board of Governors of the Federal

of exploitation,

(4) That politicians of all perfiery 'suasi0ns are disposed to make
They pUbnc office a personal, vested in-

denunciations.
or

and
democracies
been
spared
in this

be too late"thereafter
what is left of the most

generation.

a

race

,

remained inarticulate,

.

At this very moment

process

pointed

per-

may

save

to

no

America.

__

priceless heritage ever bequeathed

no

of

generally

to

the New Deal Money Magiover in the next elec-

and

100,-

our

task

cians take

spent—there

education to

commercial and

educational

human

remaining" to provide dol¬

lar literacy

elec¬

next

form, in the transition period from
inflation to deflation,
Let us not fail—for if we do

citizens,

brib-

and robbery; a government
willing to steal, and convert to

ery,

That

(1)
,

^ps"r
j

(and a recession always foliows devastating conflicts and po-

"The

the

savings accounts of 100,000,000 of
their customers,
have a super¬

Administration

well

far

is

time

The bankers—the unofficial

custodians of the

that they

the

before

education

looms

and—

in flesh

being the victims of dollar
illiteracy, the breeding agency of

known,

who is the Chancellor of

hew

of

is left

-

tion.

.

the

beginning, for

what

spent—there is little remaining,"
and I mean time remaining for

jj.
^e an almost superhuman
realize that task to clean up the present politithe government is the servant of
cal, inherited mess in the next few
the people and not the master,
years.
!" '
•
•
V '• *

We should know that, our de- commercial depositors. ; <
;
positors not being organized, they ■
It is not enough that we
become the victims of organized
charge faithfully and to the best
to the words of Virgil

Jordan

save

save

Repeating,, "The

r

.

a new

to

already 50% depreciated dol¬

lar.

their

class

not

ful-. in Washington. They

■»*,

the

have daily

are

—n

...

To

*

in

serve

our

middle

They

ing

nil
fill such obligations.

or nullify constitutional restrictions so as to extend its powers,
they become entrenched office-

They are not noisy or
complaining. On the contrary, the
real forgotten men and women

great

have

and unless it be
generally understood that we are
guided in our actions by a recog-

insurance

depositors; ; In ; less than
there will be a Congres¬
(2) That the problem transcends sional election, and in less than
in importance, parties, politics, four years there will be a general
election. The present Administra¬
and partisanship,
tion is attempting to restore sound
(3) That all through, history,
governments have multiplied their money. This is a stupendous and
undertaking.
Many
of
functions at the expense of the painful
these
100,000,000 depositors are
property;
liberty,' and lives of

upon us as members of the bank¬

profession,

platform for

an

indications

'

inflation.

o

is

in-

to

or

unforgivable lack of ntical debauchery), the next Administration and Congress may be
Fortunately, we can now ob- 0f the New Deal variety, because

vision.

myth. They

a

basis.

money

would be

out as

imposed

keep in mind

not

are

an

defeat,

to

-

sound

a

banks, owners
of insurance policies, of government bonds, in building and loan
associations.
They compose the

comparable
with those

Orval W. Adams

have

are among us

and bones—in

practitioners

■

and

today

take

the world and bankrupt ourselves

political mess in next few
people are not given understanding re¬
garding import of sound money. Concludes creeping inflation is
greatest tragedy to civilization.

Banking must be recognized

to

methods,

crush its opponents and to modify

.

young

a

problem

greatest

bestir ourselves

such

holders, and having bought the
tense, continuing interest in this electorate, they remain in power
thing which we call sound money, to
keep the electorate bought—a
which has helped us to live in
most costly debauchery.
*
peace,'happiness, and prosperity
"
^
with
one
another, and to dis"Another Depression Looms"
charge our world obligations on
Now
that : another
recession

task to clean up our
present inherited

Contends

•

^

Our
to

Asserting bankers have definite obligation to do what, they
can to foster a proper
understanding of what has happened to
our
money in the last -20 years,'Western banker decries what
he calls "dollar illiteracy."
Says greatest problem today is to
restore our world obligations on a sound
money basis. Holds a
recession may be in offing, because of almost
superhuman
years.

13

(2313)

& STRUDWICK

CORPORATION

28

14

The Commercial and Financial Chronicle

(2314)

More

connection with defense programs
which the free world must have,

Foreign Trade, Not Aid,
Universally Advantageous

because

President and General Manager
Worcester Pressed Steel

,

,

New

*

to

our

back

home

and

;^ou toe'greatly benefit by the
a! rirJ
natural
We

Manufacturers

national
lations

mittee, I

We

r

imnort

must

and

Conner

can-

in

self sufficient

are

Com¬

in

items
and

oil

and

chromium

also^must

We

■

buv

fully for them
and

if

you

:whfsker
'things

you

will
some

say

it

of

NAM

Carter

C.

Higgins

not agree with
w

put ,;down
sentiments
/

since

.g

^

the

as

imports

a

ttTA

AV»A

my
.

we

are

in

4UHAA

AHA

in,

that

,

A

by

terest.

In

to

for

H

our,

interest

our

fact, if

is

now

re-

national

in-

citizens

own

are

we

regain true sovereignty, which
me means the
right to control:

to

our

be

own

affairs, I think

prepared

what

sovereignty

and

international
I

am

limited

accept

government.

(1AA

national

aspects

of

its

volume

last

—

h0"
and

imported
a

+

represents
nil

thp

$10

last

t

of

our
u

ic

is

I

,

itseK^and
than

more

•

f

a

manufactured
manutactured

goods
goods.

that foreign
that it has

reason

is

,n

idea

seller

both

will

pleased with
Likewise
between

pleased

are

with

one

coun-

their

trade

together

the

world
wunu

.U1C

i

In

know

Inat

our

"livincr

Ic

o£ams
O) earns

with
-

.

today

lives
lives

in
in

both
-

standard

uLV™*

ar0aHv

nennfi'T,

fbey?nd.

Of
of people in

>

much-of

poverty

American

il^ealth mSlv

ana
and

of

^

foreign lands

th^mo^
helping tohaise their

or

instance

tural
and

of

living

and

13% of

implements
almost

our

are

12%

of

health
agricul-

exported

our

motor

—

4An
tfce

address

League

eiz.ee,

r.

of

factories, American workmen out
of jobs; etc. Actually, the million
dollars will either reduce the aid
our government has to supply or
else it will be used to buy other

bv

Mr

Women

I., May 7,

Hip'pins

hafnrp

Voters,

Provi-

1953.




jobs

displaced.

There

is

no

,

Gottron,

,

been

mov-

tariffs

and

have

the

right

bwn,

this

based

on

should

^.amend

the

only -be
of

owners

The

done

compensation'
**Xr
-T,

should recognize reasonable^ replacement
cost
for
plant
and

simPson

the

the

BiU

Reciprocal

to

;

Union

Grace

formerly conducted his

Mr.
own

investment business in Cleveland.

mmim

'

.

i.U

J.

/y>L 4

„11

L

lUIll*

-.

WIlMSM UUIflffllllS Willi

Trade

British company, for instance,,
did a Poor j°b of selling
us'
tbey would be all right, but if they
do a &°od i°b> theg°es UP'
a"

foreign'

.7.

Co,

the Midwest Stock Exchange.

of the Re-

4L

ATI

Hall & COr

QUj-

Agreement Act would require that
tafiffa be raifedin annoymg ways
n an industry complained. If

with"' their'

fair compensation agreed

w^h

on

ai0ng

'posals--of

tbev

nationalize for-

to

indust

n

&;

Building, members of

-

^hile

territories

Russell

Commerce

Agreement Act
without/limiting amendments will
tawfitS continuevthis process. The pro-,

?hould J?5. r£

t

Foreiini

(Special

CINCINNATI,
Cummins
with

has

Clair

Union

Chronicle)

to The Financial

S.

Ohio

—

&

Hall

William

associated

become

Company,

Trust -Building.

Mr. Cum¬

Trade

® ®1

®

ex-.

.

rp.

? aouars-

.

investors
cent

per

Naturally,

such

to employ too creasing our imports and have all
0f native help? been
benefiting. We have not

deter been subsidizing our uneconomic
Many industries here as we once were,

practices

private investment abroad.

They get their dollars by dig- foreign

nations

and

particularly

f'ufn|0'd'ld J ay m/f, ft f»d underdeveloped

f® !.n ® ®tol<?h/°; "f
Th

,

j

,,

,

Jbls 's

.

invpstmpnt

had

hppn

countries do not
welcome our investors.
.

.

.

£ and
abroad, £7 our

^

private

ninnind

In some

ment '!•
has

ways our own

not
,

international

been
•

.

private

govern-

We recognize that too

investment,

move to free trade might destroy
investments here and
dislocate
certain industries. It must be done
that

so

do

we

not

put

^

_

us

imoorts

our

of

enodd

travel and services-and this
Plies

most

h

Finally

of

the

sup-

dollars

since the

and

they
these

war

purees

7

enough

dollars

$38 billion, and
seven

years

given

^38

by approximately

durin^h^sTsame

our

government

billion

i^ods

p

and allies

,i£

tw

J£ay, ka

•

"

«#««««••

m

has

and

?1Vmg Tn7

c

ob"

yi°usiy enter into

our tax burden

^portantly; in fact, they

amount
°Yer Onr for each American
$630 aiiipc
nrnwimt
Our aBles are Protesting
aro

our cl?arl&,and clamoring for a
n?ore healthy economic relationsblP' T1?ey do not wish to be poop
Thev
,

of

look

nLJ

building
tfadp

share

whkh

the

fnr

States.
in

leadership .in. re-

ar>d
that

S()
and

United

lpariA-rchir,

expanding
every

build

the

world

nation can
self-resnert

rtmes"'froi^earntag^eir
earning. their

ourselves

TKn./.

our

industries

a?rea£7r

.

.-i-i

,

,

taxed

,

payments

particularly

be

must

McKinnon, 11 Wall

New York City, members

of the New York Stock

Jr.

has

them

and

become

as

tive.

He

Exchange,

that C. Berkeley Cooke,

associated

registered

a

was

with

representa¬

formerly with Steele
and prior thereto

Company

with Bond & Goodwin. In the past
he

in the investment business

was

in Baltimore.

maintained

indastry today is productive rather sometimes has been done. Except
than exploitative and that United, for ;a very few instances, why
States enterprises-seek to .be-good should we taxpayers pay more
*

izens in the countries in which
they operate. Finally our govern-

ment bas seemed to encourage
socialistic regirpss^tbroad at times
when they
taking un-

hafCbeen

measures/with

fair

industries

therb

It

to

regard
would

our

aoDear

for American made goods to ship

Tucker, Anthony & Co., 120

Broadway, New York City,

mem¬
bers of the New York and Boston

to our allies rather than accept-

Stock

ing their bids? Let's hope that

was

imports

will

continue

a^d tLT for
countriefwhfoh
Vsi

Cntrmt

exoand

those

nstance

S,

Vi

i

to

~

+

our

h

tn

*T

u

'

bond

Mr.

Exchanges.-

formerly

Johnston

in the Institutional
F. Roths¬

department of L.

child & Co. and prior thereto was
officer

an

^

Johnston is associated

James S.

with

&

of

Bramhall,

Co., Inc.

Barbour

'

go^nmenl removfng f ^
n°L be f0rCed
dSerreL to Sate invStment will not take their products. we
with them because
aeierrenis 10 private investment
abroad
dollars
could
Hilmar G. Appel With
^ dad|
Summary
available in this way.
Uhlmann & Lalshaw
Could Import More Goods
In
that

bv

more

-

'be

^

summary,

Foreign countries get
*oreign countries
irs' by
iars- -j^y shipping their
ship

ldi

-uy w"PPmS men
us
us

services to
;rvices

There

1S

ifh,

even

Q.f;.

goods

more

the

or

gooas or
'
-

...

.

llttle Question that

coaWabsorb
than

dolc.__

more

foreign .trade

is

important to good foreign relaTions. It is important to
,

and

s

our

Av-nortant
we

.

,

4

industries
to

vou

Jou

and

fcirms

our
it

is

because

Vecaufd

.

imvour

yo?/
imported-goods standard of living is built on it.

hieli

leveh

being

iiow

Foreign trade will find

a

balance

imports

WOTk

*

,

in

Thomson &

Street,

by .firms abraad are hi^ber tban ;*°T Parposes of national defense, James S. Johnston
their competitors pay. In other but I would interpret this narcases' our government officials rowly rather than lumping large
: W|lh TUCHGT. ASltHOnV
have not recognized that American fields under defense heading as
ffl1"
HHUIVIIf

have to be such We

.

public

are

WithThomsonMcKinnon

.

prises. United States tax rates paid industries

imP°rted- what approxt set by the dollars available to
too high
our long-run f"ately the $7 billion of
other people. We should remove
good* and because we must re- under taȣfs could expand to.iif
obstacles to private invest¬
spect how other countries feel to- tariffs were removed, we cannot me?t abroad we should cut down
ward us> we must cut down on say, but our tariffs and our quotas, ^
that we cO
°"l government giving money out and our regulations have been a some i'^"la«ons so that we can
abroad.
sore
point to foreign countries. imPort more each year We should
izens and

Berkeley Gooke, Jr.

a

for gradually, Z
but it should be done

helpful

G.

pnnounce

sudden

^a year They get
tbeir dollars from what they sell wT^bsidi^compeUng S- 'anothef''rurthe'r TceTtainllw
TT./li fr,rrPrg
anotner. jt urtner, a certain lew

relations
*.

i

that

export are
standards of

need* along tariffs. If we import a mil-

the

quiring
high a

pur-

si les benefiting

We

thinking

our

^ts aI^(baf, been/,un"
JL °V* 75 bd]the past two
y
y
^aJ d°?{y
y more

+i

chases, and the exporting country
pleased
with
the
trade.
It
is,
therefore, natural that countries
should

depression

a

influence

ISent 7 e*P°rtera makes UP for
the

The/investment.

A.i

M

vnu

be

countries, the citizens of
try

let

to

psychosis

goOds. from this country./Employ-

inyi.°ir

foreign

country.

I I supolies to our friends
y you bqy in the free worlds-

Presumnhlv

Wn!e ?

trade.

your

such'in-therefore,

on

Gollron, Russell & Co.

balance is still there. It is too bad,

bond supposed to be paid out of regulations, our Customs Regulafuture earnings and ceased enter- tions Act has not been passed,
prjsesAnother problem is re- Nevertheless, we/have been in-

something because you will be
pleased with your purchase and
the

-

®ulregimes^WpbSievl^iprocal^Trade

agree

a"d the dollar gap between

to

Txpolrover

We

important

year

ge?s^^thTrette7^CtrotherP?r"
ftuoid

are

b^y
f°°ds,1f tb^y ca" Set the dollars

°

^ S0^j:ce-2f goodwHl between
k S
.]
,a^t when there

q

There

'war

opportunity and

A-L

maximum

VIAliwv

Promote

S°od! ves7mPgn
billion
of vestment

in

billion

year

The second

tiade

in

2

nanUni

dered

10%
/

$15 4
i

+

important

trade'is

the

•

of

foreign
trade
policy tonight.
Foreign trade is important be-cause

Arthur V. Grace With

trade balances.

any

^tion. Often you cannot^be sur^ npffiigfr.?i

us.

•

particularly going to talk

the

on

must

we

to

give up mu^h of
thought was national

we

support of foreign trade. '•

mins was formerly an
officer^ of
equipment and inventory, and ad- vjk?" take , the bill's proposed Edw. G.
Taylor & Co., Inc. and
ditional compensation should be taritf on Petroleum, this would
Now can foreign trade flourish? made for
prior thereto was manager of the
goodwin and other-^in- i almost surely lead to us m New
E.
„jlaL/e-hcai/„s^nd abr0?d lscoun- tangible assets. Further/ compen- EnSland having to pay more to the trading department for A.■> Aub
llm"
& CO.
't0 °y the dollais foreign
sayori should
be paid promptly 011 • oompanies. It is a bad bill,
tr!ies have to buy our goods, Peo- rather than giving the investor a Though study has been devoted to

thought too inattitude

an

national

as

of

period

a

° getting, any profit - out, much-. ; since 1934 we have
ijrss your ori2inal ^^p^^Vjing toward/reduced
Even your money invested abroad'^roval by Congress

scarcity does not ap-^

peal to

-

was

trade,

trade and in'this
AA^Hin
A^
doctrine of

three 'too

are

of

the

in

all

.

own

across

capital here
A great deal of f lion dollars worth of goods bethe hope of getting good returns; cause'it-is cheaper and better to
is limited, abroad by the poverty 'do so, some' people foresee idle,

.

will

we

believe

we

volume

'HAA

many.

quired

their stead¬

,,.v

we

come

something to be ignored, they
have
very
important effects on
this country.
Two war§ and the

; What once

on

l

are

and

year

a

thought foreign re-'; going farther.
pleasurable, a bore,
I think that

ternationalist

Women Voters

* fast

.

better.

,

-or

fracas

understanding
League

of

/

war

-

we

communica¬

more

better

,

these

sim-J you buy the best goods you can
He get for the lowest price and you
complained,
"They- are
not believe in stretching your dollars.
yo»*
English!"
Even within my ex-/If
ex- I£
we
get better goods from
g
perience,
we
have
found
that .abroad, obviously your dollars are
were

higher volume of trade,

a

expect

and

£or

Mr. Podsnapp, in Dickens,
ply did not like foreigners.

whether

are

rope.

been

limitations

i

lations

.Atime, just

•*

our

I said earlier that foreign trade
does : balance

.

carriers
of

with the other free nations of the
world. I congratulate the

does

V

-

can

tion

debt

end

for the ^security facing investors/overall unemployment and your
Arthur V. Grace
/* >
we
onlv
because °f- government v, actions, standard of living tends to im- ;-.y.
(Special to The Financial Chronicle)
year, but-Money tayested abroad in "many proVe, •, Though .we
believe in
up
to $15 cases cannot be brought back be-, high wages, we use good systems - i
CLEVELAND, . Ohio—Arthur V.
are living
cause currency is subjeet
- and equipment and s our-prUjes^ate.-, Grace has become affiliated*.with

miss

Of our imports, about 55%
in free of duty and the reown, mainder pay an average tariff of
:V ,12%%. When you go to the store

.

be

may

Before

billion

do

you

2

and

tea

anH

wCuld

We

bur

now

and

.what

hanann?

; imported $2 billion

the

to

anH

oiityar

I

attribute

t

agricultural

products like coffee and

agree

what

we

and

the

•

hope that

-with

tronical

manv

;

,

reaching
Through

understand

vate investment if it had not been

few

manganese

and tin and rubber

speak

them : to

foreign
nations
want
aid," and because our

not.

taxpayers

it

made

their Pe°Ples> by P°or: tcansr
port' by un*rained working pbpulations> and by their inability to
buy even locally made goods,
Then there is the threat of war.
DesPlte these three limitations,

resources as we were

'

Re¬

-

lmiopr

nn

Inter-

has

geveral

1

f

o

:

for-js^and

have

the " United * States'

where

vestment and j think the greatest

by those who need them..

AsAs

sociation

because
trade

considerable'vQur income *s eQual to our outgo,
disappointment expressed with re--.We may accept promissory notes
gard to private foreign/invest- -f°r
income sometimes but the

lb,au upufront and be found out--be b0ljSht except on the foreign
am a member of the
market
nal
National

hard j for

burden

Investments

living abroad, and they could not

Although I

our

"

There

better

mean

the

So much for
,

rnent

These exports

trucks.

inconspicuous

of

more

tariff: 'supporters

Increasing Our Foreign

England manufacturer advocates cutting down

Sometimes I feel it is better to

not

being free.

eign aid.

our foreign
and investments abroad.
Opposes Simpson Bill which permits tariff boosts, and con¬
cludes foreign nations want trade, not aid.

—

shoulder

of

aid and, instead, increase our imports

be

of

cannot

than through government
payments, they will be better able

foreign trade is important, both because of its
volume and because it is a source of international good will,
Pointing out

1

branch

another

so,

government limits the figs or the

ways

- |

\A

Company

do

to

afford-cheese or the sugar we will buy
the full measure of equipment re- from them. In the
meantime, we
quired. As they grow in strength; are boasting about our competitive
in
part
through
having
more -country
and
how
competition
knowledge,
and
through
other raises the standard of living. High

By CARTER C. IIIGGINS*

11

allies

our

Thursday, May 28, 1953

...

say

to them,

build

up

your

export trade," and when they try

SO

ernment

large

a

tn3t

OUT

national

does not have to

gOV—

play

so

part in foreign trade both

(Special

to

The

KANSAS

Financial

Chronicle)

CITY, Mo.—Hilmar G.

^pel has become associated with
U^niann
ioth

Latshaw,

&

111

West

Street, members of the New

York

and

changes.
Kansas

Midwest

Mr. Appel

City

Stock

Ex¬

formerly
representative for
was

John N'uveen & Co.

With Hamilton Managmt.
(Special to The

Financial

SPRINGFIELD,
Hammack

with

has

Chronicle)

Mo.—Ralph

become

J.

associated

Hamilton Management Cor¬
poration, Holland Building.

Volume 177

Number 5224 ...The Commercial and Financial Chronicle

15

(2315)
:

Industrial Peace—

;

velvet

he

gained

a

it

And

means

new

-

He played

'v the 7 stakes

foul—

or

his

If

own.

sotnetimes became

*

and, secondly,1'

gel

something away
pend primarily on workers' productivity, and

i,

existing

scores

t.

:•
.

.

production.
-

..

We

and

live

in

they

an

of miracles,

age

have

become

so

com-

existed.
owner

*

"featherbedding" work rules. Stresses identical interests of
labor, management and the public in more efficient and
economic

?TSi

And

to

"Malefactor of

the

be

Baron"

that

if

industrial world

our'

day

any

without

passes

producing
some

and

new

wonderful
«

ac-

compliShmentj

.

we

are

m-

clined

(

to

-

that,

let

us

all

compared

to

could

and

formers, all the labor unions and
the

agencies

Basis

'

of

government

change it!

never

The

body and soul together,?
sometimes had to labor al-

for

Improved

Labor

Conditions

No, the truth is that the high
beyond the limits oT their vwages, the short
hours, and the
physical endurance, and that little enlightened
working
conditions
children had to work
long hours that industrial labor enjoys in this
in the mills. Let

these

a

that

„

the

also agree that

us

conditions

bred

safety

of

disease

country -today,
brought about

—

workers

in

have
by

NOT

the

been

purely-

humanitarian impulses of anybody

Yes, this was the conventional- dangerous occupations was not—discouraging
as
that
thought
picture of the man who brought properly
protected, and that there may be to all of us.
business leadership into popular was a
great deal of inhumanity
Qur workers have gained more
disrepute,, and .whose sins have to man, generally
speaking. Andj
weaith, simply because they probeen visited upon industrial man.

wv.
^+1 ouraelves; Why. duce more wealthy and they are
affairs agement right down to the present'
has been largely restored to it;
w
h
generation.'
Was it—as Karl can'ditions exists. 1 able ' to produce more, simply beMarx declaredJ
cause
modern tools and methods
and some of 'its.leading
figures" But let>s face it: He did build' because greedy owners stole what * of production have multiplied
have been called*upon to help
America!
he called the
He. made it the most
surplus value pro- their
strength enormously. Today,
establish
NOT a businessmans
productive nation on the face of; duced by .the, workers.
leach of these workers ds the boss
aammistration,- but;; av business- this earth.
And, in spite of himself,
No.
That
clearly is not
the i of an invisible crew of mechanical
like administration
in -Washingbe djd m0re to give the American
answer; for if all the wealth of«men whose energies he commands
ton.- But this new prestige —
people their present high standard the owners had been
distributed; at the flick of a switch, and whose
joy able as it is —
has, 'brought of/living than all the reformers, equally-among their
workers, the; productive effort enriches his life.
i^avy
obligations with
it; and Who ever lived!
resulting improvement in the liv- j - How did he
set these
tools?
personally, I know of no leaderibf'
c- -p
.' '
„
'
ing. standards of the men would : Who created and
ousiness
and? industry-'who ^is
developed them?
have been negligible-at
not acutelv conscious o/theM
the great.change that has occurred
best,: and; Who placed them at his disposal?
The win
industrialmanagement during even this-nnprovement would notl

right

to

its

manage

own

dl(i ^es®

.

monplaee in

would

malnutrition and exposure;
disease would spread everywhere,
all the Socialists, all the re-

native

all

wages,

as;a

Great Wealth."

Many

from

work

their

„

granting
that

as

later

and

population.

most

successful

known

of

keep

mep

to the compara-

thus
to

came

VRobber

entire

hoped

those of today, were
pitifully low
eveh in America—that in order

stive poverty in which his workers

v

give up idea of trying
from each other. Points out wages de¬

shocking contrast

industries

agree

hope of solution until «^,v5:edlthy • • -.that the splendor in
equal desire to remove this
f ■ which he lived was in almost -

that labor and management are natural
enemies,
at the
bargaining table, each side must

produce enough food, shelter and
clothing to sustain the life of our

of

he

busi¬

big; and
enormously

so

have

never

through,a lifetime of

the

in

sees no

leadership of labor displays an
menace.
Says labor leadership must first rid itself of notion ^

to

to gain

standard

a

a-, de£ree of security surely die; millions would suffer

that they could

fshirt. If he won, he won

of industrial peace and avoiding disastrous shrikes and

downs, prominent steel executive

an

of se-

measure

ness, his savings, his home and his

pressing problem is maintenance

most

here, and to enjoy

for high stakes, and

were

our shores
by
millions to seek their fortune

the

^Vcurity for himself and his family.
■

earth flocked to

on

if

competitor out of

a

-i'fidst', he lost everything—his

Asserting management's

just

was

him.

for

business—by fair

'

Chairman, United States Steel Corporation

>

>

.

customers,

much

so

he could drive

Our Most Pressing Problem
By BENJAMIN F. FAIRLESS*

from, his

%

t

worry ab o u t

it,:

and

we

der

won

if

-

maybe

Sen

.)

:V

!

we

beeYn-

t

;

,

.

'

get rid of

; «!n-ral1pd

•

Wavnninf-in

.

.they expect American business-to
be

()»

.

we
few of the."

a

that stiU

run

.

; -• At.this mid-

,

half century- 1 think

<afen^;,,»egii^.has^n^e^5m£l^^urt;ftll^t first
r«f:
^ f.perriin in; a pusiness liKe^way, s§v ahfHif'
be
little, °
rrv-r

.

f-;We^re to undrstand fully-

persist

d

Se S°

R

'

the long-range .interests";.:-r>>*
'
t
i
public.?And the; major-re-v, tet-.us remember, for example,';
sponsibiiity 0f.present-day-Indus- ^that^they, did not create the inrun m

,

.,

v;-. in^ zum-uenFairies,^
^ria|
;

Benjamin F.
—i

i.

-

'radio

' '' /^. Vthe miracle
and ^television and

V ;

Then - there

is

of

; atomic
the even

v

jc

management—as 1:

to

exnectkion fullw They 'inherited

this

meet

see^'ifNv^dustrial ^conditions of their day.
them

from

their

We^faiT ^fdb^ so^T;^^3e^?ors5 for industry—in one
fear-that manyofthebasid fbi-m or another-—has existed on"

f0f- should

greatly

.

The

real

trouble

workers—for

"Rnhher

of the

have lasted long.
that

was

the

it

Well. rm.very
afraid that
all. began with .what we know
the

as

"Industrial

Revolution:"

all their

long hours and that the job was done
primaof labor—could produce so little,
rjiy by those same tycoons who
with the tools they had at their have
since been so universally and
disposal in those days, that the indiscriminately condemned. The
total
made

vide

value

of
the
things they
barely sufficient to pro-

was

them,

with

the

necessities of life.

minimum

amassed

the

were

a

venture

e s

which they
source of

major

capital

that

was

risked to develop and build these

*

.

personal: for tun

Why, just think what would tools.
It was their wealth that
this dearth since the earliest days happen if modern America—with perfected the steam engine, that
the °f' recorded history, and for many its 160 million people—had only produced the internal combustion
owe our
very survival as a .free
past 175 years will be crushed f0r^ centuries the labor force consisted the tools which existed back in engine and the oil to run it, that
a.nd independent nation.'■.•ButI;tO"■ ever bv the arowins authoritv "Of •''Phiefly of slaves,
the days when Benjamin Franklin made" mass
production possible
night, f
that
historic
spark
of and
that built huge hydraulic
^^t; to • talk* - witm you ari all-powerful state. '
1
Let us also remember that Nine- coaxed
fTZl
But any discussion of the grave teenth. Century working'^ondi- lightning down his kite string, presses, integrated steel mills, and
acle which
greater, ttiiraClg- of mass produc—
tion, to which we;. undoubtedly

individiial

liberties

"herished

.

that■'* we"haVed

nSidn^Sr°

this

in

.

may seem to you

a

to be

but which—to

.very minor one;

Wf7 of Jinking—may prove

of

shoulders

-ana
And

that
tnat

versal

is
is

which

public

the
tne

has

attitude

miraculous
miraculous

toward

re
re-

the

in

business

management in the past few years.
Twenty years ago-at the depth
the

depression-the

businessman
far

outcast.

cerned,

opinion was confound himself at the

he

bottom

of

the

barrel;

and

while

it is true that ne shared
this unhappy position with
number of unfortunate bankers

a

and

few unreconstructed

a

licans, he

was

nevertheless,

Repubgenerally regarded,
as the lowest form

of economic life.
It

is

said

that

ran

and an understanding of the great
chanee

luriaameniai

which

cnange

has

wnicn

"as

Jaken P'^e-even during my life'I™-111 ]h? ckaraete/ of industry
ltself and, !n,the nature °f mod"
industrial management.

ern

Back in the last century,

And

it

vas

shackled

with endless regulations and
trols.

con-

partners in the venture.

is always the

In

fact, had it not been for the
part he played in winning the
war, when American industry was
upOn

The

kind

only

this country, by the same
of state socialism- that has

swept
But

so

many

that

miracle

did

lands abroad.
not

happen.

lieve,

as

"fast buck."

a

dom

hear

of

men

who

were

whoi

the

occurred!

desire

We sel-

driven

by

a

pas-

build—the

to

men

the material welfare of

Renewed Confidence

'

.

in

,

.

Industrial

Management

Today, industrial management
is winning the renewed confidence
of

man

the

the

—77"""

American

j.

.

„

people.
,

owner

motives

The
.

was—nor

might

was

absolute

ran

the

improve

humanity

be—his

of

the

Franklin

Philadelphia, Pa., May 20, 1953.

in

those

business

days.

himself;1

statesmanship.




clock

in

the land—

°

J

{h

us

say

that

f

t

their

them

Continued

around—could

motives

selfish.

sometimes

are

qualified to-act as

a

dealer in securities and in which l/je prospectus

niqy

Let

on page

May 26,1953

$162,098,500

Phillips Petroleum Company
(Convertible into Common Stock until June 1, 1963)

to

their

as

and

satisfaction,

could

he pleased.

Every

labor

dollar

came

do

'

that

*

just
.

he

and

Purpose of Issue: The net proceeds will be added to the Company's
general funds. Out of such funds, $75,000,000 will be used immediately

at

$72 per share

adjustments.
Sinking Fund: An annual,Sinking Fund of $5,590,000, commencing
June 1, 1955, will retire 100% of the issue by maturity by redemption
(at 100%, plus accrued interest), or by purchase or otherwise.

Subscription Offer: The Debentures, which bear interest from June
9, 1953, are being offered for subscription at 100% to holders of the
Company's Common Stock in the. ratio of $100 principal amount of
Debentures for each nine shares of Common Stock held of record

General Redemption: The Debentures will be redeemable at the
option of the Company in whole or in part at any time at .103%% on
or prior to June 1, 1954, and at decreasing prices thereafter.

prepay

used

on or

May 26, 1953. Subscription Warrants expire June 9, 1953.

also

Capitalization: As of March 31,1953, the consolidated capitalization
Company was as follows: $207,519,246 principal amount of

of the

offer to certain of its employees and officers
the opportunity to subscribe at the same price, for not'more than
$5,000,000 principal amount of Debentures, not purchased through
exercise of rights, The Underwriters may publicly offer Debentures
during and after the subscription period.
•
■
The Company

may

debt, and 14,58-3,022'shares of Common Stock, without nominal
par value.
-

about

;

paid

to

he COUld shut down his plants, if
he wished, and try to starve them

an

or

Listing: Application has been made for the listing of the Debentures
upon issuance on the New York and San Franciscb Stock Exchanges.

The First Boston

Corporation
Kuhn, Loeb & Co.

Dillon, Read & Co. Inc.
Union Securities

Blyth & Co., Inc.

Corporation

Goldman, Sachs & Co.

Hallgarten & Co.

Eastman, Dillon & Co.
Harriman Ripley & Co.

conextra Rollar

Glore, Forgan & Co.
Hemphill, Noyes & Co.

Incorporated

Kidder, Peabody & Co.

Lazard Freres & Co.

Lehman Brothers

Smith, Barney & Co.

Please send

me a copy

of the

Merrill Lynch, Pierce, Fenner & Beane

Stone & Webster Securities Corporation

out of his own pocket;

extract

The Debentures are convertible into Common
redeemed) at $05 per share until Junel, 1958
thereafter until June I, 1963, subject to certain

bank loans due 1953-1957, and not over $38,000,000 will be
about March 15,1954, to prepay drilling program bank loans.

to

and

On this

to

Conversion Privilege:
Stock (unlesspreviously

He

Institute,

trive

Company is a diversified, integrated enterprise engag¬
phase ol* petroleum operations. •

every

and

obeyed the relatively simple laws
that were then on the books, he
was
responsible only to his conscience

Business: The

ing in virtually

prospecttis

relating

to

Fund Debentures due 1983 of Phillips Petroleum

the 3.70% Sinking
Company.

Name
Address..

us

hungered

legally be distributed.

NF.W ISSl'F.

it to suit him-

run

rn%«'Medal'of XeF,,r„kCir^st?tuteVw into submission. If he couldI
industrial

Let
were

what his

under" "the"6 Edward"'G^B^dd^Uct^re and if his workers became unruly,
Foundation

they

authority

self. As long as he served his customers

•

„

is

ojfer to sell these securities. They are subject to the registration and prospectus requirements of the Federal Securities .del. Information
about the ifsna, the securities, and the circumstances of the offering is contained in the prospectus which must be given to the buyer
and may be obtained from any of the several underwriters, including the undersigned, onh in States in which

seem

kind—the

other

sought sincerely to

therefore could

The

it

not an

to hear about any more, of course;
the
bad kind—the men
who

m

kind

And

all. of the men,

and children

the

the aluminum industry.

would

3.70% Sinking Fund Debentures due 1983

ever

we

to

competitive
enterprise
have
been
overwnelmed,

unbearably.
whether

few cents

in

—

would

a

work

is

dividual

here

women

And—as

1 suppose,

case,

—and the men, in short, like Edoutproduce all of* ward
Budd,
who
found - their
the enemy nations put together—
greatest satisfaction just in doing
and did
so
I honestly believe the
impossible,
that our whole system of
free, inn0
matter what kind of a
called

Thii is

any century, and in any broad
occupational group — these men
were of all kinds of dispositions,

sionate

,

.

doubtful

or family; or by
a lAuie handful of men acting as

his

generally

be

must

lengthen

of

single individual

interest.
It
was
argued were
selfish
and
ruthless; and
anything that was good for- who were interested only in makhim was automatically bad for tne
ing what is known today, I bethat he

never-

Hours

■

even

the largest of our industrial enter-,
prises were often owned by a

that

country.

day.

irom almost every other country toiling

:

public

agreed

were

<heJinest in the world at
t.hat tlrae- That 1S why immigrants

good, bad, and middling.
since he

business for private gain, he could
never be trusted to run it in the

they Wages would fall to

™^*:iMess

So

public

as

very

ah

was

American

as

Anierichri may have been by modern stand-

must" beginTit'-ards of comparison

businessman todav

fimdamentai

occurred

°unon tions in America—poor

rests

the

the m°St sl^lflcant of ^em

all

of

rgsQonsibllitv ^hich

the

White, Weld & Co.

q2

16

should
anticipation of , not, I give you the talk about at
cars can be sold at any such rate
summer, with a tapering off to- "peace
scare" which has been
in the months ahead. That means ward the end of the year.
This echoing through the chancelleries
a
piling up of automobile inven- pattern has been blotted out in of Europe and the canyons of
tories and sooner or later
I the postwar years by the rush to Manhattan in recent weeks as if
should think soner—a cutback in fill backlogs of demand for auto- the prospect of peace were a sort
automobile production.
mobiles. I find this idea that we of ogre.
Although
the
available
statis- are returning to a seasonal patIn the light of such a performtics which both arrive tardily and
tern of automobile production ance I do not think it can be premobile sales whom I consult har-

By DEXTER MERRIAM

KEEZER*

Director, Department of Economics,

Keezer, after reviewing briefly present situation, foresees
decline in business activity ahead, but holds, so far as the
bask economic structure is concerned, it is resilient enough to

Dr.

some

absorb

pick up the pace and continue
expanding. Cites factors of economic strength, and stresses
large prospective new capital investment as important ingre¬
dient of high level prosperity. Warns, however, because of
shift away from the inflation "incentive," business will be more
competitive and will require more selling effort.
outlook.

is

subject which

in

This,

as

can

large

of

variety
this respect it
a

resembles
meat
uct

know,
be sliced

you

In

ways,

speeches
about

~

out¬
fre¬

are

'

1 i k-

quently
ened.

this

casion

I

strikes me,

oc¬

pro¬

time to be

to devote
about half of

decline in

pose

m

on

-

a

the lookout for some

fc&uh

In

Dexter

Decline

Ahead

tQ

But,

_

for the

period
immediately ahead
turn

particularly

that

,

if

key phase of

which

outlook

of

I

one

we

heads

our

use

the

decline of somewhere in

a

believe

to

neighborhood of 10% in industrial

to

production,

mind

effort

the

Administration

price inflation
ing force of
Before
may

good

a

where

of

to

national

our

tional

get away from

economy.

in

;

are

we

perhaps

the

history of

right

a

for

the

so

well.

official

national

measured

As

figures for the

product

(it

gross

reason

decline

number of

a

vasive

be

mind

the

particularly

about

gauging the sales outlook for
consumer
durable goods I take
of

note

the

fact

that

.credit

consumer

the

has.

use

of

expanded

about 20% during the last year
while sales of products which this
credit is used to finance have ex-

PocL-ihiniir

T.a

that

So far as a prospective abund-,

°f/Jfcprt1
^ foHow theyindustrv cioS£w
of

seriousjy> They

that the

me
Actr

'as

situation, at least

uie

lmnieuiau;

far as tbe immediate future

concerned, will

of

bv

the

automobile

negotiations
adjustment
in

now

|g

Of

care

course

possibili ty also

same

the

luiuie

be taken

strike

steel

a

in

in

industry where
the cost-of-living

on

controls

wage

searing mem0ries of the depres-

sion of the 30s#
But> s0 f.ar as the basic economic
structure is concerned, I am com-

ymced that
0 .a 0

,—

.

,

striking fact that

no

higher than it has been at
in
the past when the

some

vol-

of this credit did not precip-

any/^particularly ^serious

problems. Even so, the extremely

llapi<i

wjnch this credit

e

dustrial relations in

the

...

rapid increase in popuation, and a broadening of the

by

well,

by Mr. Keezer at the
Tenth
Anniversary
Convention of The
National Savings and Loan League, St.
Louis, Missouri, May 13, 19So.' *

effect

7

at

me

our

annual

an

million.

The

confident that

at

tons of its ingot production, which

business

to be pro-

economy,

automobile

cars

.

reasonably

is

in

on

am

least the equivalent of 10 million

which cannot be

pace

Another

industry which is obviously producing at a far higher
rate than its products are being
chewed up (I believe that is the
technical term) is the steel industry. I have no reliable statistics
on the point in question,
but I
,

rate

of

about

experts

on

auto-

a

income base.

vast

materials,

in-

imposes

catastrophic declines.
benefits which cush¬

Insurance

income loss from un¬

ion the

employment.
bank

of

Insurance

III

trial

I have absolutely no credentials
as an expert on the intentions of

in

investment

of

for it.

plant
the

over

and

years

dustry. This pattern,

as you

know,

it,

is

the

that

leaders

be

can

their

of

counted
resolve

to

In each successive postwar year

the
to

upon

over-

high has been hit
by businessin all the recent years when

but one, a new

in capital investment

in due course, but that
that the surest way to
fulfill this ungracious purpose is

And

this has happened

avoid all-out conflict until the

"This must be the

to

Russian

MANUFACTURER
OF

ELECTRICAL

WIRES
CABLES

CONDUITS

is

bloc

parity with

us

somewhere

near

in industrial power

position they are a long way
attaining. As this Russian

—a

from

industrial

for

drive

to

anticipate

Russian

parity

pians,

Hill survey,

March 31, 1952

production get within shoot-

.

.

*

S54.633.000

,

$42,658,000

8.023,000

.

7,021,000

Taxes.

Total Taxes
Net

Earnings.

6,021,000
.

...

»

.

Net Earnings per Common Share

•

*

•

*

could
So

to

have

in

sharp

turn

toward

be

we

quite

prospect either

toward

«

5,268,000

♦

or

war

a

sharp

turn

vitally affect the immedi-

ate

business

which

peace

to

as

the

In

1956.

Far Will

$3.58*

If I

the

Decline

Go?

for

the

im-

provement of our industrial facilltieg ralher than their expansion
wiU be the dominant consider¬
ti

'

*

.

,,

,

.

^ business is able to carry out
its plans for capital investment m
the next few years we will have
.

the most important single ingrea

There has
How

immediately

years

investment

ahead

dient of

outlook.

1,753,000

$4.01*

reported in our McGrawindicate that it plans
maintain the pace right through

do not

would
»

2,008,000

*

a

(it
ours.

of

literally)
seem

.

meaningful, unless
index of heavy indus-

distance

ing

capital investment, and its present

the

decisively

trial

Fiscal Years Ended

But again this year
planning to hit and will
SUCceed in hitting a new high in

safe

propaganda line and the
But they won't

let the

refrain,

up."

keep

shifts in

military lien, too.
we

same

end; this can't

business is

goes

many

be

there has been

the

much

pretty

seem to me

forward, it would

.

equipment
immediately

ahead.

they feel

Income before

indus¬

new

has recently been running at an the U.S.S.R. All I know is what
annual rate of 118 million tons, is the experts tell me. But the best
Capital Investment Outlook
going into inventories of one kind of the experts, whom I assume to
As I trust I have indicated, this
or another.
be clustered in our Central IntelI am told that, if it materializes, ligence Agency (at least I de- economy of ours is putting on a
the cutback in automobile pro- voutly hope they are), seem to dazzling performance. But I susduction which I expect to come hold
the position that neither pect that perhaps the most rebefore long will be of no abiding World War III nor anthing that markable part of the entire persignificance but will merely be a could be remotely confused with formance is that reflected in the
return to the traditional seasonal peace is imminent.
plans for capital investment by
pattern of production in the inTheir position, as I understand business.

power us

Net Sales

deposits

panicky withdrawal,
and, perhaps preeminently,
Plans by the business community
to go ahead with a high level
against

might be imminent. Then almost
any kind of an inventory would
be a better thing to have than the
money which could be
obtained

maintain

31, 1953

farm

both

of

prices and wage rates against

its line, and start making motions

U.S.S.R.

March

income.

decline in

a

insulation

An

the Kremlin should suddenly shift

War

it

lightened automatically

with

There

better

as

geared that the
tends to

A tax system so

the let-

World

well

as

to sell them.

ways

be

that

in

developing new products and

jf s0> ^he effect will be primarily

suggesting

of

engaged

proportions

burden

down in business activity.

i

establishment

research

A

dustry, it could happen again. But

change the timing of

created

expanding market,

An

two

steel

,,

.

the factors which give me'this
con^ence are-

For all I know about in-

strikes.

.

und continue expanding. Some 01

are

on

refn,1
~

,

^

_

business and then pick up the pa

pr0gress.

a

complicated by neurotic rethat this

not be

difficulty is enhanced by the fact
gQ
many peopie
have such

c*,.;trA

^ ^ takg

will

down-turn in business

some

actions to it. And I think

The Possibility of Steel Strike

so

In

hit

we

^

the seasonal doldrums.

su

7 million

business

in

]et_down

U.UUU.U™

for looking

major segments
to

seem

year—

a

heads

industry has recently been producing passenger

address

.

our

use

sustained.
One industry I
particularly in mind is the
automobile
industry which,
as
you
know, has a broadly perThe

*An

de-

somewhere

have

by

would

the

expect

]ong

much of the economy has been

doing

we

0f industry
ducing at a

time in

country when

our

na-

neighborhood of
if

some

that

gross

course

/My primary

There

now.

been

never

the

again

taking a look at where
be bound, it is probably
idea to take a look at

I

its

run

somewhat

the

in

product.

cline to

a

and

decline

smaller

the major driv-

as

our

has

so

I have in

business leaders.

you as

we

alter the fact that it means some

tolerably

of transcendent importance

be

in

year

has been expanding seems to me will s^ji he a let-down,
-say the next
well, I do not expect it to be
some heavier going
q£ COurse, any problem of topor so. - Then
I propose to either very serious or very pro- with instalment sales in the period heavy industrial inventories would
to the longer range outlook,
longed. I am thinking in terms immediately ahead.
be eliminated if the new crew in

year

and

immediately ahead

year

the

Pjausible enough, but it does not dieted with absolute assurance that

is

itate

I do look for some decline.

Keezer

M.

the

?

tell

■

outlook

not
mv
my

has been at an annual rate of 10

ume

busi¬

the

to

ness

do

also
also

is
is

tunes

business.

Some

remarks

y

is

of heavy production early evidence of this, which you

one

panded, only 15%. I am aware occasions in this postwar period
that, as compared to the volume the near prospect of a plenty of
economy. That, it
of sales as a whole, the volume S£eei has been turned into the
particularly good of outstanding consumer credit is reality of a severe shortage by

capacity of our

On

-

in

have

a year

--

the

business

I

unemployed.
Unless people are suddenly going
to start working a lot harder or
more
efficiently than they are
working—a development I do not
anticipate—we are going along at
somewhere near the peak of the

which

it
it

production of television sets which

CQme

doing

was

unreliable,

much
mucn,

as
as

cutback u.
of

1.6 million

than

less

passenger

prospective sales by a wide
margin to portend some
production before 1UU6.
long.

enough

at that time it was doing
whale of a business.
We have

a

a

look

outrun

ago; and

prod¬

to

than it

ousiness

that

suspicion that other lines of con¬
sumer durable
goods continue to

more discreet to say "as roughly
measured") our economy as a
whole is doing about 6% more

My subject is the general business

relatively

are

surest
suggest

and then

turn down

some

in

suspicion

no

—

New York City

McGraw-Hill Publishing Company, Inc.,

is

bor

The General Business Outlook

a

May 28, 1953

The Commercial and Financial Chronicle... Thursday,

(2316)

the

high level of prosperity.
never been a period in

Share Owners'

Equity

per

•At March 31, 1953 there

.

.

Common Share

were

500,273 shares

10.93

12.04

.

history of

our

country, apart

22.68

25.25:

outstanding compared

in business activity is in prospect
this question immediately arises:

481,752 shares in the prior

when capital investment and general prosperity
have not gone along together. And

Why,

Total Taxes per Common Share

there

right that

am

once

some

decline

started, won't the de-

wartime,

from

ROME

CABLE

year.

is

cline snowball and keep on going?
There is* as you know, a grim line

that

of economic

to

Plants:

TORRANCE. CALIF.

the beginnings of some unemployment, winds up when the

their
•

and
so

SALES

OFFICES




AND

WAREHOUSES

IN

PRINCIPAL

himself.

jobs

others

NEW YORK

broken

with

shoots

ROME

anticipate

ahead.

logic which, starting

last fellow with

ROME, N. Y.

to

reason

no

out

put

a

Those

buy
of

.iob loses it and

less,

jobs,

others

who

that

lose

puts

they buy less
jobs, and

out of

this line of logic goes.

This,"I hasten to add, is

eyed line of logic.
*-fSeems

this
in

cock¬

the

years

will

be

immediately

This

alI.important business of
a high level of capiinvestment brings me to the

maintaining
tal

second and concluding part of my
observations
look.
the

These

effort

tration to
a

But the world

relationship

the business out¬

on

are

our

with

concerned

national

abandon

Adminis¬

inflation

as

a

primary if not the primary driving
force

pretty fully populated with

cockeyed people.' If you demand if

\£v

a

of

our

economy—an

L Qontinued
.

effort

on page

32,

Volume 177

Number 52247..The Commercial and Financial Chronicle

(2317)

the

at

sumer

moment

than

and others

better off than
are

or

not

nounced the results of the finan¬

con¬

of

families

available4 to

have
into

debt

either

each

later

In

in.

their

either

You

these

Saving

good

to

t

Bureau

it's

a

not

but

the

com¬

situation
be

by spending less

the

by

pro¬

Statistics

our

increased

of living
remarkably in the

people have

frigerators,

appliances,

more re¬

automo¬

ever, as a

stamina

to

harder

work

and

longer to deserve these blessings
have

and

an¬

or

other

forms

(Special

to

The

Financial

(Special

reserves

for

an

emer-

to

The

CHICAGO, 111.-The

Financial

Club,

John V. Condon is
with Renyx,

now

presided

members

and
with

associated

son,

John

Sturm,

Chronicle)

O.

E.

Little,

best
are

Yet,

BENICIA, Calif. —Kenneth E.
Merry has joined the staff of King
Merritt &

ment

Company, Inc.

and

Andrew

G.

told.
some

sections
times

%

as

six

many

persons are

failing to meet
install¬

their
ment
Roger W. Babson

ments

pay¬

failed

today
in

normal

as

How

times.

time

on

are

you

fixed?
.Are You Rolling in Money?
•

The U.

S. Department of Com¬

reported

merce

personal

record

earnings of $268.3 billion for 1952
5V2%

—a

payrolls

of

jump over 1951. The
private industry ac¬

counted for much of the increase.

Government

payrolls, which in¬
military, were up 13%.
report implies that almost

cluded the

The

everybody but the farmer should
be rolling in money.
The

all-time

farmers
of

$16.7

income

in

came

billion.

about 25%
boosted

from

net

a

dropped

1950

But Korea

1947.

output

for

high

with

1947

prices,

and

and

the net for the farmers moved up

again to

little better than $14

a

billion for 1951'. 1952 dropped back

slightly from 1951, and

further

a

5% drop in net income is expected
for

1953.

farmer is

Perhaps the
rolling in money.

not

WHAT IS THE TRANSISTOR?

signals. It requires only
Wage Workers Are Prosperous
Are

you

income

better off

those

of

one

has

increased?

today than

You're not!

Let

Three types

• r-

analysis
income.

national

Here's what I found.

top 20% of
93%

of

In

S

gleeful about

our

perity,

and
be

average

earnings of the industrial

the

in

this

of

which

sounds
well

like

off.

$72

are

about

in

almost

talk

Laboratories—opens

$10

1951.

provements in

per

their

share

You

would
not

are

of

show

are

If you

not

the

doors to far-reaching im¬

telephone service and in other fields

per

is

that

Many important inventions for com¬

think

munications

enjoying

these

labor

should make out
and

follow

get

yourself

it.

discovery with the exciting
promise of the Transistor.

you-go basis

back

ought
on

This tiny

including

careful

a

You

a

electric

you

times.

budget
now

more

pay-as-

tirely

ing up your liquid assets—that is,
savings accounts and Government
We must avoid
national consumer

a

debt,

now

are

now

tubes

can

things that

do and

many

so

little power, it can

reach of
P

be
and places beyond

on

defense,

tube.

a vacuum

Invented at the Bell Laboratories

amplify the voice in telephone
service, the Transistor is opening
to

new

doors of opportunity in

fields.
The

reasonable terms. These include

makers of advanced equipment

other
1

-

•

Bell

System has licensed
thirty-eight other companies to

sets,

as

well

as

hearing aids, and

The Transistor is
used in the
ment
to

new

coast

to

It is another

of Bell System

our

inventions available to

others

'

BELL
4

already being

electronic equip¬

you

more

example of the value
research in bringing
and better telephone

service.

TELEPHONE

from

coast.

patents. This is in accordance with
our
established policy of making

small and rugged,

range

which enables telephone users

make and sell transistors under its

so

wide

dial Long Distance calls

It is something en¬

new,

a

of electronic apparatus.

and works on entirely
principles.

besides.

for

radios, television

ac¬

Our national economic problem




a

do many

Because it is

reaching

$19.3 billion of this debt.

can

can

and takes

used in ways

$25.7

billion. Our installment credit
alone

new

too large

amplify
hundred thousand

device

signals
It

vacuum

to

in addition to build¬

bonds.

from the

new

Spending Too Much?

payments,

come

Telephone Laboratories. Sel¬
dom, however, has there been a

cannot meet all of your

time,

have

Bell

prosperity.

telling the truth.

monthly bills on
your
installment

counts

new

Telephone

This

everybody

you

workers

Are

The Transistor—invented at Bell

The

multi-billion-in¬

1953

than

wage

Statistics

GIANT^

Big Future

Yet to hear labor union

officials

leaders

thankful.

is

capita higher

workers

wage

very

year

week,

by amplifying electric

pros¬

should

worker

the
LITTLE

with the

only 7% of

the national savings.

come

you

.«*

1950, the
held

savings, leaving 80%

our

are

are

do amazing things for

our wage earners

of the population with
We

of Transistors

can

of a vacuum tube. It will be low in cost and last many times longer.
shown above, about actual size.
power

you

of

on

tiny electronic device that

before?

ever

A short time ago I saw an

figures

a

whose

Are

tell you why.

me

It is

fraction of the

a

F.

Sundell, Joseph
H. Powers, Helen Novotny, Caro¬
lyn R. Johnson, Alice M. Fiddy-

ever,

in

Edward

Paul

good times;

we

11

and

The new members include Hat¬
field Smith, a partner of the
firm,
and Donald J. West,
Henry Swen-

freezer? These
are

watches

after corporate stock forms.

home

the

presented

membership certificates patterned

—

King Merritt Adds
Financial

service,
held
its annual
meeting at the
University Club May 25. Paul H.
new

Field & Co., Inc.

(Special to The

with 25 years and over of

Davis

Chronicle)

Colo.

Paul H.
&
Co.
Quarter Century
comprised of 33 members

Davis

Chronicle)

JUNCTION,

Club Admits Eleven

-

v

BOSTON, Mass.—Ruth Bramsley has joined the staff of J. F.

GRAND

Paul Davis Quar. Cent.

of

*

'

With J. F. Jordan & Co.

homes. We have, how¬
nation, lacked the moral

and

save

With Renyx, Field & Co.

standard

last decade;

biles

to

Jordan & Co., 92 State Street.

more.

Surely
has

time

credit.

is

corrected
or

the

taking

give the

should

and

was

is

Also, try to pay more down
anything which you do buy on

on

TV,

car,

and

than it

gencyr Now
more.

if the 'installments

as

spending that

Let Us A11 Produce More

also

that

times

discover

Labor

does

Its

a

on

new

of

in. 1950.

Enough?

median liquid asset holdings of all
U.
S.
families
(money readily

pay¬

was

more

story;

serious

How heavily, without danger, available, savings accounts, stocks
and bonds) have decreased 50%,
can you as an individual go into
from $470 in 1947 to $230 in 1952.
debt? How large a mortgage can
Many economists received quite
you handle and at the same time
make
install- a jolt a short time ago when the

ments

This

plete

or sooner

experiencing real finan¬

shocking

many

in e n

$200

year

12,000

>some

studied

family

average

ducing
Are

much.

too

it

preliminary report read

year

increasing

condition'" of

cial

money

cial difficulties.

consumer debt,
"are not saving
enough."

warns

amount

production and earnings

Cites increases in
and

our

rising faster

before, and people

spending

now

the

further

without

re¬

are

people

go

port of record personal earnings,
wage earners

that

spend. People cannot continue to

Mr. Babson points out that de¬

spite Commerce Department's

has

that

|! By ROGER W. BABSON

is

debt has been

17

SYSTEM

BertoncinL

C' ronicle. Thursday, May 28, 1953

The Commercial and Financial

(2318)

18

and

Tradesmen's Land Title Bank

will begin operations on
22.
It will
be the fifth

Trust Co.,
June

Banks

News About
CONSOLIDATIONS
NEW BRANCHES
NEW OFFICERS, ETC.
REVISED

CAPITALIZATIONS

Washington

Ahead

$228,385,000, and deposits of
$201,473,000.
As previously an¬
nounced, James M. Large, Piesident of Tradesmen's, will be Pres¬
ident of the combined bank, and
Warren H. Woodring, Land Title
of

Bankers

and

From

largest bank in the city and the
seventh largest in the State with
combined assets, as of March 31,
t

of the News
BARGERON

By CARLISLE

.

hats.
mis¬

radio audience, hold your
epic struggle and unless I am

Ladies and gentlemen of the
You

about to witness

are

an

Vice-Presi¬ in charge of correspondent city Vice-President and Treasurer, J taken, you will be the loser in the er.d
A serious effort is going to be made to cut the budget of the
Bank & Trust mortgage loan operations; and in will be Executive Vice-President.
1950
Third
Vice-President.
In Howard A. Loeb, Tradesmens
Air Force.
We are so deeply ^in The giip or
Company, of New York has been
1952 Mr. Carpenter was appointed
Board Chairman, will be Chair¬
the military that it is almost impossible to cut
elected a Trustee of the American
Second Vice-President in charge man of the Board, and Percy C.
University
of
any
branch, but the Air Force—why even
Beirut,
Leb¬ of city mortgage and real estate Madeira, Jr., Land Title Presi¬
the effort is audacious.
operations.
anon,
it
was
You are in for a dramatic intermingling of
dent, will be Chairman of the
*
*
*
announced on
Executive Committee.
The main
the pocketbook nerve and politics.
Watch it
Robert F. C. Benkiser, a Di¬
May
26
by
office of the merged bank will be
closely and you will learn more about the
and
Vice-President
of at Broad and Chestnut Streets. It
Harold
B. rector
operation of your government in a few weeks
National
Bank
of New will have six other offices—16th - than
H o s k i n s, Grace
you would ordinarily learn in a decade.
Chairman
of York, died at his home, in Pel- & Walnut Streets; 320 Chestnut
The Democrats have been having a field
the Board of ham, N. Y. on May 21. Mr. Ben¬
Street; 5th & Chestnut Streets;
day over the Republicans' inability to balanceTrustees. The kiser, who was born in New York 5614 Germantown Avenue; Broad
the budget.
Now they intend to have a field;
University
is City in 1892, joined Grace Na¬ and Louden Streets; 19 S. 52nd
day in obstructing a .serious move in that di¬
the
largest tional Bank in 1917, becoming Street; and, in the process of
rection. Businessmen, conservatives, who have
American
in- Assistant Cashier in 1919, Acting building,
been in the forefront of the demand for lower
Erie
Avenue
and
I
s
t i tution Cashier the following year, and Street.
Land Title's title insur¬
taxes—you will find them flocking to Wash-Carlisle Bargeron.
Cashier in 1921.
He was elected
of
higher
ance
department will be trans¬
ington now to join in the fight on the side of
learning
out¬ a Vice-President in 1932 and a ferred to a new corporation, viz:
the Air Force.
Already there are more than.
He was Chair¬
>tirrea n. nauser
side the con¬ Director in 1949.
Land Title Insurance Co., whose
100 publicity representatives
of the -aircraft industry and its
tinental
lim¬ man of the Lay Advisory Com¬ stock will be owned by the com¬
related parts, the multiple gadget and equipment manufacturers
mittee of the Willard Parker Hos¬
its of the United States.
It was
bined bank. Lawrence R. Zerfing,
and suppliers, on hand turning out speeches such as that just made
member of Land Title Vice-President now in
founded in 1866 and is a member pital, New York; a
by Representative Yorty of California, demanding the resignation
the Pan American Society, Robert
of the Near East College Associa¬
of Defense Secretary Wilson.
The propaganda about crippling
charge of its Title Department,
Morris Associates, etc.
tion. Mr. Hauser is also a Trustee
will be President of the new title
the Air Force, about throwing ourselves wide open to the Com¬
*
S'
#
of the International College, Bei¬
insurance
munists that you have already heard is nothing compared with
company
which will
rut, Lebanon and the American
what you are about to hear.
Announcement
was
made on continue to operate at its present
College
in
Madura, India.
At May 25 of the retirement of Wil¬ offices. The new company will
It makes no difference to the propagandists that President
Chemical Bank he is in charge of liam G.
have
a
reinsurance
reserve
of
Genner, as a Director and
Eisenhower, who has recommended the cut, is a military man, the
the Investment Department. He is Vice-Chairman of the Board of $500,000, and capital and surplus
General who commanded our European armies in World Wgr II.
Alfred

dent

of

Hauser,

H.

Chemical

.

American

of

Trustee

a

Surety

the Em¬
pire City Savings Bank of New

Company of New York,

York,

etc.

Trust
N.

*

*

For

47

of

$2,000,000.
The

with the Bank of

tional

Garden

years

associated

Island

City,
Mr. Genner

of

Company

Y.

was
$

Long

the

of

Directors

capital

\

Pa.

Mercer,

The

has

Company

at

100

of

000

new

stock

the

Columbus

*

*

The

*

*

Norman

of

Life Insurance

been
Dime

elected

a

Savings

capital

000

Carpenter,

Vice-President
tan

A

its

*

as

of May 13 from $100,-

$150,000.
*

Second

*

*

Stockholders

of

Tradesmen's

Company, has

National Bank & Trust Co. and of

Union

Land Title Bsfrik & Trust Co. both

trustee

Bank,

of

New

York.

graduate of Wesleyan Univer¬

sity, Mr. Carpenter has been with
the Metropolitan Life since 1927,

of

Philadelphia,

ings

on

May 25

at

special meet¬

approved

a

plan

for the merger of the two institu¬

tions,

Under

the

issued

to

ord June

tional

additional

the

on

basis

for

share

capital

the

This
•Defense

$10,000,000

to

-of

The

condition,

showed

FOR

Bank

as

total

and

Building in Havana,
Cuba, for sale by estate, $375,000.
Inquiries invited. Address

latest

issue.

made

the

of

have

underwrite

to

different.

cooperation right

down

on
.

v

•

Force

major turned

up

as

the culprit.

Presumably he has been

The Democrats
come

apparently expected just such a fight as this to
their way and in preparation for it they placed Senator Stuart

Symington, former Secretary of the Air Forces, on the SenateArmed Forces Committee. Naturally he ranks as an authority and
in

matter

a

so

important

knowledge to be
from

him

the

as

this

you

would think he would

helpful influence.

about

detriment of the

for

a

how

use

the Air Force is

being wrecked to the

country^ security. As politics go it is not

Democrats.

budget balanced

or

taxes

They

a

certainly

don't want to

a

bad

see

the

reduced by the Republicans., The Air

Force budget that is being cut
have nothing to lose,

his.

Not at all; you will hear a

is

a

Truman budget. Politically they

lot to gain. But the sad part of it is that it is

if Eisenhower

will be able to hold the

Republicans.

.

*

~

*

*
:■

Joseph

be

properly dealt with.

the

.

things will

'

report

Arrangements

that

but will demand

up

$11,-

accounts

are

a

fact, there has already been an example of this. Wilson im¬
mediately went to work to find out who was responsible for the
so-called factual material that went into Yort.y's blast and an Air,

doubtful

been

indications

In

of April 20, 1953,

capital

SALE
$21,292,493.

Chartered

bank's

the

back him

they

issue

800,000.

time

Secretary Wilson is

the line.

lot

surplus from

given only lip service to the Commander-

stubborn man and he has a com¬
pletely new team of the high echelon to work with. Undoubtedly
he will demand their cooperation to the extent that not only must

five

and

than just

more

the President's part

in-Chief.

from

stock

$7,200,000,

even

on

affected branches have

held, at $50 a share. The
rights would expire June 23. The

$6,000,000 .to

The President's prestige as

offers the only chance the taxpayers have to win.

this prestige. It will take a
and that determination will
involve enforcing discipline among the Air Force at the top levels
and the lower ones.
In the past the high and even lesser brass '
has not hesitated to oppose the President in the matter of appro¬
priations.'You had the spectacle of open defiance against Presi¬
dent Truman in his effort.
Even the civilian secretaries of the
It will take

one

each

man

determination

sliares

raising

military

a

certain amount is adequate

And, indeed, this will be the main

prepared to accept it.

am

argument of the defenders of the cut.

reference to which ap¬
when he joined the company's ap¬ peared in our issue of March 26,
plan would increase the bank's
praisal staff. In 1947 he was ap¬ page 1345. It is expected that the
accounts
by
$3,000,000,
pointed Assistant Vice-President merged bank, to be known as capital
a

of accuracy in the astronomical sums in which
military deals—whether $10 billion this way or that means

When General Eisenhower says a
I

rec¬

of

$5 billion reduction in next year's appro¬

a

However, I do not profess to be an expert in the matter, al¬

9, to purchase the addi¬

shares

tapping economic veins all over the place.

are

though I am just as well informed as those who >are doing the
yelping in Congress and I am certainly well informed about whom
and what is turning ithe wheels in the fight against the reduction.

V

shareholders of

you

charge that

anything.

shares, par value $20.
plan, rights would be

all

F.

Verhelle

L. A. Caunter Adds

announces

W. B. Molinare Opens

(Special to The Financial Chronicle*

Box

226, Church St. Station, New York 8




DESK 31-M

HOUSTON,

his resignation as President of the

City

Bank

of

Detroit,

Mich.,

which he will continue to
a

.

be any degree

can

the

holders, June 9, to vote- upon a
proposed
plan
to
increase the
capital stock by issuance of 60,000
additional

Metropoli¬

the

to

government has become so
of the most serious

our

priations of the Air Force would cripple it or seriously affect it
is ridiculous in the light of the billions which it has been given *
and which it still has on hand.
Indeed, you wonder how there •

National Bank of Providence, R. I.

Assistant Vice-President.

an

funds

its

York, held on
The
First
National
Bank -of
has
increased
its
capital
from
May 26, Adrian M. Massie, Chair¬
Girard, Ohio, reports as of May 12
$625,000 to $700,000, the enlarged
man of the
board, announced the
a
capital of $250,000, 'increased
following
promotions
in
the capital having become effective from $125,000 by a stock dividend.
on May 15.
Banking
Division:
Robert
F.
*
*
*■
*
At
*
—
Loree, Jr., Assistant Vice-Presi¬
Directors of Manufacturers Na¬
Through the sale of $50,000 of
dent, was elected a Vice-Presi¬
new stock the First National Bank
tional Bank of Detroit,-Mich., are
dent; and John B. Stalford, As¬
of Whippany, N. J., has enlarged calling a special meeting of share¬
sistant Treasurer, was appointed
New

in

problems facing the country today. But the tentacles of the Air
Force reach out deeply into the country's industrial veins.
The
matter of dollars and cents, profits, livelihoods, is involved in how 1
much the Air Force has to spend. When you talk about reducing

.

Trust

influence

military

strong that this, in itself, is to my mind one

Neck, and for over a quar¬ been increased from $300,000 to
George H. Lanier, Jr., Presi¬ ter century served as its Presi¬
$450,000; part of the increase re¬
dent of Lanier Textile Company, dent.
Mr.
Genner's
retirement sulted from the sale of $100,000 of
Inc.,
and
George
W.
Walker, from the Great Neck Office of new stock, while the additional
President of Neuss Hesslein & Co., the
Long Island Trust Company, $50,000 was brought about by a
have been elected to the Advisory which -office
was
formerly the
stocky. dividend of that amount.
Board of the Textile Office of Bank of Great
Nehjt, ■ became ef¬ The enlarged capital became ef¬
Chemical * Bank" &
Trust
Com¬ fective
May 21. It may be noted fective May 13.
r
pany
of New York it was an¬ that the Bank of Great Neck re¬
^
*
*
*
'• 7
nounced on May 26 by N. Baxter
cently
merged
with the' Long
The Miners National Bank
of
Jackson, Chairman.
Mr. Lanier Island Trust Company,'which was
Wilkes-Barre, Pa., is liquidating
is
also
Vice-President and Di¬
formerly the Garden City Bank
agent for the First National Bank
rector of Wehadkee Yarn Mills of
& Trust Company.
of Dallas, Pa., which latter was
West Point, Ga.
Mr. Walker is
#
absorbed by the Miners National
also President of Marlboro Cotton
Dominic. Migliardi
has
been on May 15.
Mills, McColl, S. C.; President and
*
*
*
named as Assistant Treasurer of
Treasurer of Caledonia Mills, Inc.,
The
County Trust Company
in
An addition of $100,000 to the
Lumberton, N. C. and Lakeside
White Plains, N. Y. Mr. Migliardi,
capital of the Farmers National
Mills, Inc., Guntersville, Ala., and
who marked his 30th year of serv¬ Bank
of Salem,
Ohio has been
Treasurer
of
Commander Mills
ice with the bank last January, is
brought about by a stock divi¬
Inc., Sand Springs, Okla. and of
a
graduate of-the American In¬ dend Of $50,000 and 'the sale of
Plymouth Mfg. Co.. McColl, S. C.
stitute of Banking.
if
*
$50,000 of new stock,-making the
*
*
*
capital now
(May 15) $600,000
Following
a
meeting of the
As a result of the sale of $75,- against $500,000 previously.
Board of Directors of The New
York

better.

And going

Na¬

First

the

of

of

Bank

i.-\

•

Great

Broadway,

propagandists and their stooges, in Congress know
right along with them will be a lot of editors.

The
*

*

*

Director.

serve

of
as

CLEVELAND, Ohio

—

Jack M.

Savitt has been added to the staff
of

L.

A.

Building.

Caunter

■

&

Co.,

Park

Molinare

is

Tex.

—

William

conducting

a

'

B.

securi¬

ties business from offices at 2509

Yoakum Boulevard.

.

Number 5224

Volume 177

..The Commercial and Financial Chronicle

.

*

(2319)

famous ballad about Old Soldiers.

it

may fall outside ol this range,
depending on the portion of the

'

"Oid

Investing Results by

•

buildings

die, but their
usefulness
just fades

economic

never

Endowment Funds

,

By SIMEON H. F. GOLDSTEIN
Executive Director and Comptroller, Harry

that

Fischel Foundation

«

Mr. Goldstein's survey of foundations and educational institu¬

•

tions with

of

;

Reports relatively higher yield from real estate holdings. Finds-capital gains are not considered income, and depreciation provided on income-producing real estate.
of

rate

they.

up

longer charge
One said that as a

producing real estate but that they
occasionally come into possession

swered

with

usually high
tionnaire

the

reply

a

toone

the questions.

of

more

This

to the ques-:
great validity to

gives

resulting data.

Twenty-six
swered the

return

of

replies

question

similar

measure

a

portfolios.
of

indication

against which
of other
It also gives

the

cost

average

the

or

advantage—in terms of yield—in

by the

market

a

time what it

ley than do these institutions
Foundations and educational

3.52%.,

to

between
,

.

.
-

almost

five

worth when it

if*

:

•

e

would be

iate of return earned on current

cljne

nrHinarv

inenme

-

income

considerable equity holdings.
On the other hand, these inves¬
tors

understood

are

to

follow

a

policy in
their cnoice oi equities, nmiung
tneir
choice of equmes, limiting
conservative

The

ation

may

bound 'to

continue

trend of the past 14
forecast.

their

the

The

value

the

tQ

who

of automotive

invest

This

facts, a letter was
major foundations and
educational
institutions
by the
Harry & Jane Fischel Foundation,
as

32

follows:
"I

r

writing to

'

number of
educational institutions and founam

a

dations with large

endowments to
obtain information for a survey
which we are making of policies
regarding investments.
' ;
,
"We would appreciate any data
that, you would care to give us
on the following questions:
.

"(1) What is the rate of return
on

the

book value of

vour

investments?
ff/ot

un.

"

4.

for

^ d gs.

ts

j

4.u

4.

f

leturn

,e

f°:ZtZC,UTTent ValUe °f your
investments.'
,

(3) If you sell an investment
at a higher price than its cost, do
Von consider the profit as income

Qvailable
your

for the
institutions?

operations

of

"(4) If you own income-producing real estate, do you consider
depreciation as an expense in determining the amount of net income

of

available for the

your

tore

^ exDectancv^of

busineSman
®
;

,

v,»Vnn^

pla„ed ,n

operation

institution?"

The institutions addressed were

the

foundations, universities and
colleges listed in a recent edition
of the "World Almanac"




as

having

in

the

gross

nation

are

business

now

persons

of

doing

use

to bare minimums.

keep

nation's

the

motor

industries growing
annual

dJ^ft
most

is

an

*

rate

of

at

an

than

more

W. F. Ellison Opens

vehicle
average

William F. Ellison is conducting

30%'

an

to¬

THE

investment business from offi¬

ces

at 12

East 46th Street.

EQUITABLE

LIFE ASSURANCE

SOCIETY.'

OF THE UNITED STATES

buildings

__

can

stand

who

the

ad-

much

return

on

e^tate

return

on

was

category.

tr

the

same

vestors who are not likely to face

(Stocks

can

quickly, but to in-

to raise cash overnight that
should not be a major factor.)

a need

should
these

be noted,
however,
figures are based on

yiejd

aJter

depreciation, while the

reai

estate

It

yields

quoted in the market

be summarized by

FRANK R. McCOY, Washington, D. C.
STERLING MORTON, Chicago,
Chairman of the
RAY D.

commonly
before

tween 1V2 % and 3% of the overall

parodying the investment, although occasionally

111.
Board, Morton Salt Company

MURPHY, New York, N. Y.
President of the

«

Society

JOHN LORD O'BRIAN, Washington, D. C.
Counsellor-at-Law

THOMAS I. PARKINSON, New York, N. Y.
Chairman of the Board of the Society
EDWARD L.

SHEA, New York, N. Y.
President, Ethyl Corporation

.

SAMUEL R.

WALKER, New York, N. Y.
Director, City Investing Company

Vice President and

A certificate of nomination of the said candidates has

filed with the Insurance Department of the State of New

been duly

York.

The annual election of Directors of The'

Equitable Life Assurance
Society of the United States will be held at its Home Office, 393
Seventh Avenue, New York 1, N..Y.-, on December 2, 1953, from
10 o'clock a.m. to 4 o'clock p.m., and at said election twelve
Directors, constituting one Class of the Board of Directors, are to
be elected for a term of three years from January. 1, 1954. Policy¬
holders whose policies or contracts are in force on the date of the
election and have been in force at least one year prior .thereto are
entitled to vote in person or

are

by.a substantial additional invest- depreciation. Depreciation generment.
ally amounts to somewheres beThe reason for depreciation may

Md.

Honorary Member, Edison Electric Institute

for

typical older
American city

those in other fields

Middletown, Ohio
Board, Armco Steel Corporation

CHARLES W. KELLOGG, Queen Anne,

was the same.)
current values

vestments in real estate than from

that

York, N. Y.

CHARLES R. HOOK,
Chairman of the

(The average in the non-

more

"

President, Southern Railway System

(The

higher return from "quality" in-

^id

"

HAROLD H. HELM, New

book

conservative, and avoids the
additional risks of "trading on the

be

Society:

President, Chemical Bank & Trust Company

values,- and which, makes any
computation of income failing to
provide for depreciation, misleading and unrealistic.

neighborhood in an
will reveal numerous buildings
more than 50 years of age.
But,
they all are either so old-fashioned that the main value of the
property is the ground on which
they stand, or were modernized

Directors

HARRY A. DEBUTTS, Washington, D. C.

„real estate„

estate which is generally regarded

,

of

FRANCIS B. DAVIS, Jr., New York, N. Y.

as

,

.

Directors of said

as

estate ^eneralfy exPect much
hiSher returns than 4%. However' f°undations and educational
institMtions are understood to buy
only s°-called "quality" real estate* H one limits oneself to real

years.

a

Nomination

hereby given that in accordance with the provisions of the
York the Board of Directors
of The Equitable Life Assurance Society of the United States has
nominated the following named persons as candidates for election

es-

f

of

of

Insurance Law of the State of New

others

^ e inevitable tendency to equity" by holding the property
become obsolete) is the big factor free of mortgage, there appears
which gradnaliy destroys, building to be-little justification for a

Inspection

New York 1, N. Y.

Notice is

Buyers of income-producing real

neoule

..

.

393 Seventh Avenue,

real estate cate^ory was 4-24%

obiective fact that

ionger than 50

.

viz 4%

average

In

{he

however,

thg median

difficult

f

iUJL_

those
obtain

W
average,

a

about $2% billion to labor.

each year, Benoit declared.
In the first place, he said,

•

the nonreal

,

approximately

.

car

and for real egtate only 4 04% )

it

^
,
tate
re&^ni^debreciation
,

:

while

^edian

The

ih*

the

makes

estate

re-

n

*4.

establish¬

employing 2,000,000

rose an average of about
$14 billion per year, with about
annually despite idle new
$11V2 billion allocated to sales of
assembly lines during the four
war
years
and fuel and other parts, accessories, fuel, lubricants,
shortages which cut mobility and and maintenance chemicals and

,

category

paworv

the fact that

Moreover

u ?r, „n^faJL

.

wer£

^jed an mcrease inland values
buildings

aiiaiV/,cw

real

tate„

it is

is

attitude

peculiar

analyzed fur-

whether

placed in the "non-real

were

How,<rver' functional deprecia-

'

ments

car

ation by stating that they have
f .,

ported to have originated in the
days of viritua ly unrestric ed iramigration into the United States,
when, the rise in popu ation as-

'

earned

automotive service

the U. S.

of-^e donar.

WC1C
were

in

the

27%

to the question regarding depreci¬

often referred to as "tax-free m-

The information Asked

learn the

000

1948, volume

Notice

determine

,

busi-.

estimated that the 379,-

upward

service business in

where

higher return than those

a

regarded
expense.

high-class real estate.

provision

replies

thgr

the real estate field

"ywcyW,
However, in

In fact,

To

of

future

do not- Institutions which replied

lease to well-known firms or other

sent to

the

years," Benoit

Between 1939 and

a

unnecessary.

seem

largely to "blue chips" depreciation is widely
in stocks, and to properties under
_as- not being an actual
s

volume

Real Estate

reeardins' deWe--

Question

themselves

-

record

Comparative Return from

Depreciation Practice
-

generally

all-time

consuming principal and

that

below

remains

reasonably close to current levels, ness and employment > for
total service sales, volume, in-'
automotive service industry.
eluding materials and labor, is
Benoit

nUmber of cheaper dollars.

Questions 3 and 4, regarding
the treatment of capital gains and
of depreciation, are interesting in
computed on book value in this their own right and are also essurvey.
The substantial increase sential if a fair comparison with
in price since the assets were purnet income reported by any one
chased, which this implies, reflects c-se is to be made.
markedly

cars

,

national

■

whrnh these trustees wvest.

The rate of return computed on

is

new

producers of transporta¬ ped.
...
•,
,
industrial maintenance'
The 54,000,000 vehicles current¬
chemicals, predicts.
ly in operation are providing an

was

the market value of their investments

production of
than made up

more

.

in

of commercial banks.

but peak

nation's auto-, has

where the "gain," in effect, leaves

.

in

annually has re¬
record highs since
1948,

mained at

growth

ve¬

scrapped

and

4% The;aver- the institution with the same real
tune and
age' was 413%. This indicates net WOJth and the same real fa_:
than insurance companies, savings what can be expected if money is
Come, which merely happen to be
banks and the trust departments placedtoday in the: type of asset expressed in-terms of a larger
equities for a longer
to a much greater extent

vesting

heap

i

tbev

especially Important

jn

scrap

The; total number of motor
hicles

^ capital gain ls due to the de-

„

The'median

invito

enrWeH

TeoDardiziriir

This is

the

Several factors will combine to"

ti^T^vere' to treat^true capttai

po^olio^ , _^ V. •
institutions an-

free of the

are

if

ever

hit

until after 116,500 miles,

.

in^e t^. fates on^nit^tive and
risk^kinff ^v lustFfv thf atti
tudp
g' may justify this atti ,

restric-. va 1 u d of '"vestments ranging
tions on investments imposed by. froip
£25% to 5 43% Eleven or
Banking and Insurance Laws and. a majority, were between 3.70%
Departments. They have been in-..
.
w
stitutions

.

politicall^^^

of

swered
in-

all

P*s ^ extending capital ^gains
treatment to various forms of ecoa^
X asaa Teansrt«ir7-

This is

5%.

Twenty-one

investment pol-

They

..

foundation with-

was

operations.

capital Sams and income is clearly
established in law and m account*5®'.,, ts °f^n .disregarded by mdividuals. Tne practice of Con-

4.75%.

value

their

an-

10.371% return, which earns
this high yield because it owns a'
large block of stock which now

following,.a more conservative or,
less conservative

fwerpd the question as. to whether
;Pr?^t °n sale ofincome available
an investment is
considered
as

a

has

^w®n^"slx institutions an-

doesn't

now

and

"If

Their

were

was

-

,.

the

scrap¬

for scrapservice industries
C. A. page. In 1951, for example, more
than 6,000,000 new vehicles- were
Benoit, Jr., President of the Per-:
matex Company, major develop¬ registered against
3,569,000 scrapers

While- the distinction between

value.

was

c

ahead for

being

motive

tion

Poliey Toward Capital Gains

for

-

median

have occasionally

'

'

to the rate

from

One-half

distorted

the experience

check

an

esJate n°w **eAcl>"

...

-

an(j 5 cj

The

to

as

book

on

The

It offers

,

institutions

ranged

10.37%.
407

Simeon H. F. Goldstein

-

,

The Rate of Return

•

-

lies

not considered as
them, although in

un~

response

•-

r.

or,

/

An unprecedented era of

on the income

,

80%,-an-'^?e':so"

motor vehicle before

Service Industries

through gifts or

and
motor

average

ped has doubled since 1935, it was
pointed out. The average vehicle

For U. S. Automotive

"

i

or

in

Steady Growth Seen

{ vest endowment funds in income

by - endowments rin excess pf $20,000,major ioundations and educational 000.
(A few were excluded bea
institutions on their investments cause it "was understood th,at their 5
rea
Is interesting for.several reasons, investments were largely limited depreciation is
*•
A*"
; ;■r ;
to one corporation or one indus--.J®, expense by
try)
the past they

Twenty-seven,'

invest¬

equities.

no.

return .-earned

,

the

of

considerable representation

depreciation.
t matter of policy they do not in-

>■

s!«

of

operated

The

today is nearly 14 years
old before scrapping age, as com¬
pared with a scrapping age of
only about 10 y2 years old in the
early 1940's.
Mileage served by the average

that has already been

reserve

bujlt

*

*

?

values.

The

the

*

some

properly

maintained.

large-scale highportfolios which include

grade

charged depreciation
roughly equivalent acOne said that in view of

count).

are

ment results

(or some
'

large endowments indicates securing median yield
4.75% on hook value of investments and 4% on current

*

they

'

;

vehicle

These

the question of depreciation
inapplicable to them. Sixteen said

;

& Jane

when

ture, and the buildings' estimated
remaining economic life.

,,Nine of the replying institutions
do not own any real estate, mak-

ing

.

day's cars have greater built-in
durability and hence longer life,

investment applicable to the struc¬

away."

19

by

proxy or

by mail.

HENRY G. WOOD, Secretary.

May 27, 1953.

20

The Commercial and Financial Chronicle... Thursday, May 28, 1953

(2320)

In

fense

On Domestic Scene
International Statistical Bureau, Inc.

after

stands

This is true; but

crowd

(1)

of

(2)

the or

to side

they
the

as

long one.

<

Even at the end of the
road, there is not certainty of a
permanent peace, if historical
precedent is any criterion.
There
have
been three
great

v.

We in Amer¬

ica today

find

ourselves in

somewhat

economy

each time the Kremlin
from the rapprochement

more,

on

gained

W. Zelomek

and

evidence

#

possible

it

indeed

is

to

assess

and

individually,

situations

both

do

to

necessary

so,

important to consider
them simultaneously in relation to
it

most

is

each other.

Always, what has happened outside

continental limits of

the

United

as

has

States

had

the

im-

some

is

There

lost.

no

the

that

presently

accounts for about
$50 billion, or roughly 14% of the

total.
deal
that

has

been

stimulated

defense program.
ous

by the
The most obvi¬

example of that is the accel¬
amortization

erated
the

of

program

government, which

events within the United

has

pro¬

at high levels, and

achieved, either on a world scale,
States.
or limited to specific areas such as
This impact has varied with the
Korea, the Far East, Europe, etc.,
historical
period
in which
we there will continue to be trouble
found ourselves.
Today, perhaps spots throughout the world. This

omy

the most important fact about the
world in which we find ourselves

sumption is valid.

pact

is

on

that

the

does

between
inner and outer events is not only
growing deeper, but is one which
we

cannot avoid

if

even

will

ing

it

necessarily mean that
be military action goat any specific moment,

0n

but

does

Qf small

would,

we

not

there

relationship

be

ever

mean

that

the

threat

conflicts will

"localized"

present.

those of

high,

a

/

areas

economic

without imply¬

declines

cases,

In

collapse.

of

country

as

That the non-dfefense

(2)
tor

of

weak.

the

economy

sec¬

is essentially

,

I do

not believe

that e'ither

as¬

Even outside of the fact that

Thus, to
and

peace

major

cut

would not

in

mean

once

a

Depression

defense

spending
complete elimina¬

tion of such spending, the fact that
there is a very huge backlog of

the question whether
concomitant or sub¬

To round out the

situation

current

and

major question before us
indeed
the
determining

question, is that of
It

is

and

peace

accident

that

war,'
war,

no

rather

war.

I

say

"peace
"peace

or

such

definition is valid for what

and
and

a

than

war" since I believe that

lies ahead.
To

put

it

another

the

foreseeable

in

way,

negative aspect, what

its

face in

we

future

is

"no-

a

peace, no-war" situation.
To

date

this

1

the major
news event is the
launching of the
so-called Soviet "peace offensive."
Whether
such

we

year,

accept the fact of

offensive, or however we
react to it, the columns of print
an

l

A

that

,

_

have

been

„

devoted

clear indication that it is
factor in

.

to
a

it

.

is

major

thinking.

our

Especially important is the fact
that many of those columns, which
are still
being written, appear Jn
the

business

tions

than

of

and

our

only

financial

newspapers,

in the

news

sec-

rather

and

edi-

torial pages.
Will

Peace

Bring

a

Major

Depression?

Furthermore, a great many
speeches have been made by leading members of the Administration, and will continue to be made,
The

deep

concern

question is based

on

with

the

two factors:

*An

address by Mr. Zelomek
Hollywood Executives Club,
Wood, Calif., May 14, 1953.
the




before

Holly-

aspects
by
Administration
leaders, headed by the President

ous

himself.
js

The

course

clearly emerging

relaxation of

we

as

will take
one

of

no

defense efforts.

our

level

On the
is

come

other,

of

buying

the

and

consumer.

high.

very

disposable

during

exam¬

determine

hand, disposable in¬

one

very,

On the

of* the

income

is not

average worker

peak

high

as

year

as

World

of

War II.

trends, must be stated.
It

to

is that there

be

the

end

of

very

likely

declines to¬

business

some

wards

are

this

and

year,

into 1954.
As

my

To

close

foregoing re¬

eyes to the possi¬
declines, however,
would not be realistic, and would

There

our

impair

At the
mand for

in

the

factors

of

current

business

or

the possibility of situa¬

tions which could prove to be un¬

an

level, the de¬
amazingly wide vari¬

ety of goods of all kinds is

very

strong; and when demand for

one

are

es¬

demand

for

earning

future

being

a

solid

should

go down.

At the

time, according to

same

the Federal Reserve Board, about
three-fifths of all spending units
in

this country have liquid sav¬
ings of $500 or less, with a signif¬

portion of those having no

liquid savings at all.
On

of

another

consumer

:

v;;t

,

level, the question

debt is of

concern.
.

■

Consumer short-term debt,* that
is debt for the purchase of
auto¬

mobiles,

appliances,
etc.
is at
levels, and is back at pre¬
ratios to disposable income
..

record
war

Long-term
debt

at

record

debt,

of

that

is mort¬

consumers,.

levels,

a

little

is iajso
,$53

over

billion, and is easily back to
war

pre¬

levels.

Are
In

these

levels

themselves,

unhealthy?"
As

no.

long

as

income payments and employment

healthy.
• '
The, .situation in

plans eventually stand

consumer

as

base

gage

number

a

are

.;

savings

consumer

timated at close to $300 billion, a

future

picture which point either to de¬

clines,

Total

some

certainly act to
earnings levels.

up

liquid form.

icant

implied in

marks, such declines do not mean
depression, severe recession, or
any
of the multitude of terms
which are currently being bruited
about by the pessimists.
bility of

apparent contradiction
in looking at over-all
savings and individual savings in

future

that

course

real

close

to

figure often cited

picture, how¬

another important aspect of

ever,

the

"no."

answer

.

of factors,

set

likely

required

spending ability of the

shows

a

must

more

present
a

being spelled out daily in its vari- examination.

t

.The

the

the

over

Nevertheless,

of

amount

is

7%

about

Another

We Will Not Have

argument does not stand up under

tomorrow.

today,

this

Given

[s

certain

ination

and

year ago.

as

respect to a
what public
works,
including *much
rising level of interest rates, for
the needed highways, etc., amounting
example, which threatens to overUnited States will take in relation to about $100 billion is itself an
contract credit, is one that needs
comes many
and grave responsi- to world affairs; more specifically, area where additional stimulation
to be watched very closely.
bilities.
To carry out these re- what
will be the course
taken could be
provided, if needed.
But of more general and over¬
sponsibilities
requires
that
we concerning
defense build-up of
As to the second
assumption,
have the clearest possible view of both ourselves and the
European that the non-defense sector of the riding interest is the position of
where we stand today, and espe- and Asian allies?
the ultimate consumer, the man or
economy is essentially weak, that
daily of what is likely to happen
woman
on
whom
all
business
The answer to this question is
The position of this

the leader of the West is unquestionable. But with that leadership

a

some

sequent cutback in defense spend¬
addition, there is a great
ing would bring a depression. I
of private capital spending

In

moted $25 billion worth of new
for reconciliation by the Kremlin defense plant construction.
js any different from the others,
Those who believe that a major
This is not to say that world
cutback in defense spending would
tension in the current period will
bring about a business setback
increase. On the contrary, there
rest their argument on two basic
are some hopes that tensions will
assumptions:
ease; but it is likely at the best
(1) That there would be noth¬
that they will ease only slightly,
Whether or not anything re- ing to take the place of defense
sembling over-all settlements are spending in maintaining the econ¬

volved.

is

West

the

present peace
offensive and the apparent desire

is no humor in-

there
it

the

by

urgent need of the Communists
a "breathing spell."
Further¬

fortunately,

While

dictated

and

was

for

the other. Un¬

however,

reconciliation

of

motivated

the

on

domestic

the

spending,

wave

hand, and

one

Defense

Each

world

number of

rates,

have

very

to

trillion dollars.

nists

peace

a

ing

offensives by the Commu¬
constituted,
prior to the current one.

rela¬

in
to

events

a

an¬

it is also beg¬

have to examine is the

we

posi¬

alogous
tion

tion

,

Unfortunately, the road to peace
with the Communist world is a

watch

play.

major depression?

a

from side

ing

high

we

now,

In spite of the high hourly rates,
cost-of-living and tax factors have
much as
probable development of the econ¬ 10-15% would leave output levels advanced as rapidly, so that real
purchasing power of a worker
omy, assuming a major cutback in among the highest in history.
with a wife and two
defense expenditures is possible.
children,
The steel industry provides an
That is a large assumption in
the
average
worker
in
excellent example of this situa¬ taking
this period, but it must be exam¬
tion. Current production of ingot manufacturing, is under that of
ined, especially since I think that steel is at a 117 million ton an¬ 1944.,
As long as over-all disposable
every one
of us would happily nual rate. A cut of 10% would
hail the day that it became realis¬
leave output of 105 million tons— income levels are at the levels
tically possible.
and that is higher than in any that we are enjoying today, the
At the present time, the gross
position of the individual con¬
year prior to this one.
national
product, which is the
There are many other such ex¬ sumer is not, of course, the key
total of all goods and services pro¬
amples, and they are not confined in the situation. The key factor
duced in the country, is running
to production figures, but embrace is the number of people at work,
at better than $350 billion, or as I
such important areas as employ¬ and the income they receive as a
like to put it, at one-third of a
result of that work.
ment, income payments, etc.

What

peace

heads

with the
swing¬

match,

time

total income payments, are at very

economy.

of economic

tors

ging the question.

Is it really possible to have
in the world today?
If there is peace, complete
relative, will this country have

in

year, is a
at a tennis

laugh producer

year

the

is true of

same
our

likely in the 1954 fiscal year, and levels of output is looked upon as
that
consequently, a fear of a a serious decline, overlooking the
serious setback is unwarranted.
fact that declines are possible in

1954. Denies there is nothing
to offset defense spending as means of maintaining a high level
economy, and answers "no" to question, "Will cutback in
defense spending bring on a depression?"

of

sense,

some

record indica¬
activity. And it
has been true that hardly a month
The simple answer to that kind passes that some economic record
of assumption is that no major of one kind or another is not set.
cutback
in
defense spending
is
Consequently, a return to lower

ing until after the fiscal year

sure-fire

;

a

evaluation of

For

and in some cases,

the question before us is based on: (1)
is a world peace really possible, and (2) if there is peace will
this nation have a major depression. Predicts no relaxation
of our defense efforts and no major cutback in defense spend¬

A

■

Cutback in Defense
Spending Until After 1954

Mr. Zelomek, staling

view

become accustomed

No Major

By A. W. ZELOMEK*

newsreels,

our

this country.

Impact of World Affairs
President and Economist,

the

spending, which in turn
bring about serious set¬
backs in the economic climate of
would

or

stay

at

these

factors

Parenthetically, I should like to
point out that most industries can
operate relative to the consumer's
position
on
a
very
short-term

good

*

sumer
ness

are

actually

levels,

the
positive side, in that they under¬
write a very good level of con¬
on

purchasing, and good busi¬

conditions

generally.
However, and this a big how¬
ever, should income payments de¬
cline
the

fall.

relatively

to

any

appreciable

position

in

the

degree,

consumer

would show very weak spots.
A

decline

in

income,

whether

in the form of lower levels of

em¬

ployment, lower hourly earnings,

a
shorter work-week would
is well on the basis, although long-term consid¬
erations are, of course, important. act to make the volume of out¬
being satisfied, another
The motion-picture industry, per¬ standing debt a burdensome factor.
new
type of demand is rapidly
of major cutbacks in the defense
haps more than any other, must
created.
In this discussion, by the way,
program, with the figures being
pay essentially long-term consid¬ I am
It is very easy, for
leaving out the question of
citied in the billions of dollars.
example, in eration to the position of the con¬
lower real purchasing power of
calm acceptance of the
But no contradiction exists, since today's
sumer, since economic conditions
television media to forget the fact
earnings because of a rising cost of
actual
defense
spending in the
prevailing at the start of produc¬
fiscal year ending June 30, 1954, that a very few years ago, tele¬ ing a picture can be widely dif¬ living. The outlook for the bal¬
ance of this year, and into 1954 ia
will probably be only slightly less vision was very much of an infant ferent from that at the time of its
for relative stability of the costthan
during the current
fiscal industry. Today, as another ex¬ scheduled release.
of-living index, and possibly a
year- And 1 would like to add that ample, what is happening in airis not a-l„A of the realm of possi- conditioning helps carry out the The Consumer in Postwar Period slight decline.
out
1'
Should the decline in income^
The consumer in the postwar
bilities that it may amount to point.
151* vxj
s^Shtly iiivi
more,
Furthermore, those who assume period has been the subject of a take place, it is highly probable
If the budget for a motion pic¬ that
a
cutback
in
government very great deal of attention. His that the consumer will be able to
ture is $1,500,000, and a request spending
automatically eliminated income, savings, hours worked, weather
the
situation
without
■
■
foran
?250.°9° 's de" purchasing power, forget the very preferences, whims and fancies too great a strain.
important factor that a cut in are all
"le<?'
But it is important to note that
given the closest of atten¬
atS 3
spending implies a cut in taxes. tion.
savln8s of $250,000. I think not.
consumer spending for a
variety of
That is very similar to what is And a cut in taxes clearly means
Today, employment is at the goods and services, would show
happening today. Requests for increased purchasing power.
highest level in the history of this some declines, even though these
spending powers are being cut;
Our Economic Anoxia
country, while unemployment is goods and services are not in the
hut the actual amounts to be
so-called luxury class.
Also, in examining the state of for practical purposes negligible.
spent are very, very close to the
same
is
true
of
income,
amounts being spent during the the economy today, and the prob¬ The
Thus,
the
kind
of
situation
whether measured by total income described above would make
able direction it will take,
current fiscal year.
for
we
suffer from what might be de¬ payments,
at least a short-term decline in
weekly
earnings,
or
To some degree, the foregoing
scribed as economic anoxia.
hourly wage rates.
spending
for
entertainment
in
remarks apply to the question of

This

statement

contradiction

to

is

the

in

apparent

daily reports

iA

A

or

kind of commodity
way

to

A„

f°ulA£aLhne,dTe??"led

A

whether
peace

or

not

peace

would bring

a

or

relative

depression.

A pilot who is flying at
high
altitudes, and who for one reason
or

another

is

not

receiving suf¬
ficient oxygen, begins to lose his
or
not
there can be a depression rested sense of judgment without realiz¬
on
the
assumption
that
there ing what is happening to him even
It

applies because such
questioning of whether

would be

a

of

the

major cutback in de¬ before blacking out.

•

„.».

,

In

actuality, the most important

indicator of current buying power
of consumers in general is dispos¬
able income. This is income after
the

payment

of

mostly Federal..

Disposable

income

-

income

taxes,

various forms.
As I have indicated

above, there

factors on the economic scene
which would prevent a long-term
serious setback in the business
are

?
picture; not the least of these is
levels, like the determination and the ability
,

..

Volume 177

Number 5224...The Commercial and
Financial Chronicle

of the Federal government to
pre¬
such an occurrence.

tions.

vent

Nevertheless,

any

ning must take this potential
of

weakness

some

it

such

areas,

presents

not

into

area

account.

in

problem:

have

undoubtedly

banks rand

becoming
with

the

ening

other

the world

Fund

•

•

;

covered

a

lot

.

of

situation

on

embracing

ground

of

people,

now

future

and

that

assume

will

resources

the
be

never

scale.; For this assumption, how¬
ever, there is no justification.
It

;

7

is

ready for true stabilization operations. - Sayshas reserve of $3.2 billion which could be
used in '

machinery to supplement monetary

Hie centrah theme bf this meetto convertibility and

to

/

not

was

creation of added

v:

of the

world-wide scale,

a

billions

in

believe that

made available except on a small

suppose

that the

transactions will

from time to time, in accord¬
with changes in world con¬

vary

'

ditions.

Already the working rules
which have guided our decisions
on
transactions have changed

V

reserves.

than once, and undoubtedly

more

members with the task of

logical to

more

volume of Fund

ance

promoting currency convertibility, and is now ready to meet
^ test without a revision of its Articles of
Agreement and

Conclusions
We've

seem to

They project the past into

Fund's

Defending the International Monetary Fund against critcisnr,
Mr. Rooth points out
daring years since Fund was established,

increasingly concerned
situation, and are tight¬

today, from considerations

the

Chairman and Managing
Director,
International Monetary Fund

are*

their interest rates.

up

lished.

By IVAR ROOTH*

noticed,

lenders

Some of those interested
activities

permanent pattern of very lim¬
ited operations has been estab¬

also the question of what
type of
credit policies to pursue. And as
the

ing.
our

retailing,

as

The volume of transactions

recently been slowly increas¬

a

only the future of sales, but

you

has

For

two-fold

a

Monetary Fund's Role in

business plan¬

helping they will require adjustment

ing—steps

in

to bring about an environment in the future.
individual
consumer.. And
whether we discuss these relation- ' monetary reconstruction—is at the which these impediments can be/ Hindsight now shows that when
same tim^ the most
important of eliminated.-/' /.
r /
;;
ships in the broadest of terifts, or
the Fund started doing business
the issues with
: We
In terms of
try to carry out our task in I in' 1947; the world was not ready
individuals, there is a:
strong connection. To summarize','
for ■ true stabilization, operations.
I* think the key factors - in the"
the

•

.

that

Despite

situation

in

which

find

we

selves today are:

v

our-'

•

ry'< '/■

*

its

predicate

*•"

situation, and wilP

foreign pblibies 'on

(2) Stemming out of this is the
fact that defense
spending will hot'
•

to

ing the

„

(3)

situation arises whereit is possible to make
major cutsin

If

a

defense

spending, there is

no'

to

sion

major recession will take:

believe that

place.;;:f
:

(4)

a

1

■

depres¬

v;

i-M-;„■

-

*

Civilian demand, plus the

tax cuts made possible

by spend¬
ing cuts will help keep demand at
strong levels.
:
.1 - :
-'
(5) -Some .weak. spots exist in•

•

,

iii

i

cj.at.iuu

.

UJ

,

ijiieii.:

(

Fund. undertook

Auieign :

discussed and examined

are

matter of international

as

gregating

wt

in the Men's Grill

In

a

concern.

putting

contest

(on

at

'0Jv

is

there

Instead,

that

awareness

near

priorities.

increasing

an

should

we

make

rapid progress toward these
goals in the period immediately
ahead—not to satisfy a dogmatic

more

principle

the

in

but

interest

immediate

-

direct and

Aid" is much more than a
It

represents

not

slogan.

real change in the
Europe and:

a

Western

of

attitude

the

"Trade

concerned.

countries

.all

of

j

°.

the emergency conditions that

built

was

%

these varying interests

works

the

and

uses

which its.

to

,

pro¬

can

.

*

enJ
an^
and

anj»® F?

balance of payments difficulties.;.

^ ^inf.tion of. restrictions .^he
discriminations. Several coun-.

underlying

the

difficulties

basic economic position of each of
the countries concerned as to re¬

purpose

in

and then

the

of

restoring bal- stand-by arrangements with memcountry's payments, bers. Under a stand-by arrange-

can

.

..

.

The

Fund

sometimes

has

be

gold

pleased that there
substantial pool of

a

in the Fund.

serves

and

totaling
Opinions

convertible

than

more

$3.2

vary
about
the
supplementary reserves

to support general
vertibility but $3.2 billion is

tainly

I

%

am

country
preliminary
measures to place its internal and
external policies in order, and is
any

basic

>

prepared to take some of the risks
involved

in

toward

move

a

con¬

vertibility, "its

proposals will be
sympathetically received by the
Fund. Our Articles of Agreement
will present no barrier.
be

can

The Fund

institution in this

useful

a

context

if

ing

understand

to

goals

and

are will¬
each others'"
to help each other to

governments

reach thern.

There is

reason

no

to-

doubt that this

willingness exists.
Those who have suggested a re¬

vision

of

the

Articles

Fund's

or

the creation of additional machin¬

make

ery

do

not

assumption which I
convincing. It is as¬

an

find

sumed that governments and par¬
liaments

cles,

billion.

currencies.

that, when

instituted

has

re¬

may

amount of

convinced

on

currencies

of

vertibility

re¬

The Fund has

necessary

a

could

or on

new

than

Fund's Arti¬

the

the terms under which

institution
the

on

easily agree

more

revision of

a

would

operate,
of

elaboration

set

a

of

policies that would enable the
Fund as it is to operate effective¬
ly.

con¬

is

cer¬

if

In fact, the situation probably
precisely the reverse. Moreover,
the

convertible

at

assets

the

large part of what will be Fund's disposal prove insufficient
needed
for
this
purpose.
The. to support the moves toward con¬
monetary authorities in the coun¬ vertibility that our members are
tries
concerned
know
that
this
prepared to take, it would be rea¬
pool of reserves exists. The ques¬ sonable to hope that our resources
a

.

_

_

all

mains

more

_

tion

in

these

been

their

reserves

is

minds

whether

will be put at their

could

be

substantial

either

increased
loan

to

the

by

Fund

a
or

The methods by which the Fund

criticized, particularly here in Eu- disposal in a volume adequate to by a general revision of quotas.
hopes to promote higher levels of rope, as being an institution too support major steps toward con¬
In conclusion it should be said
are not always clearly
And I believe
that that I fullv recognize the period
rigid to be really useful. Several vertibility.
in eastern and
understood, and it may, therefore, suggestions have been made for conditions today warrant the ex¬ immediately ahead as one which
and any committee member
may be useful for me to describe brief- the revision of our Articles or the pectation
by our members that will present the first real test of
be called for additional
invita¬
ly the kind of work that we do. establishment of various kinds of the picture in this respect in the the adequacy of the Fund ma¬
tions. The guest fee is $15, which In certain circumstances there additional stabilization - f u n d s. future will be different from that
chinery. Our function as a source
covers
greens
fees, dinner,, and may be convincing short-run rea- While I fully understand and ap- of the recent past:
of reserves will be tested. We will
door prizes.
sons for the elaborate systems of
preciate the spirit in which these
The reluctance shown by a also have to show that govern¬
; Members of the Entertainment restrictive controls of trade and
suggestions have been made, I be- number of member governments ments can effectively consult and
Committee are T. Norris Hitch-,
payments that have been so com- lieve that the Fund can do the job to see the Fund's resources used collaborate on international mone¬
man, Kenower, MacArthur & Co., mon since the end of the war. The in the period immediately ahead
in substantial volume has not, in tary problems. The economic and
Chairman: Wilfred J. Friday, Siler perpetuation of these things would, without a revision of its Articles
my judgment, been the result of financial relations of many coun¬
& Co. John O. MacFarlane. Manhowever, certainly place an effec- and without the creation of addi¬ unwillingness to take risks.
A tries will, during this period, be
ley. Bennett & .Co.; William C. tive brake on the growth of world tional machinery to supplement more important factor has been subjected to stresses and strains.
ing .invitations to

list of friends- world trade
mid western cities
a

,

Roney, Jr.. Wm. C. Roney & Co.; trade that we all desire. Unstable monetary reserves. It is in a po- the desire to avoid
using
the The Fund was intended to be a
Philip G. Turner, National Bank and unrealistic exchange rates sition to make substantial sums of Fund's
in
which these
relations
resources
for
purposes forum
of Detroit.
may be another serious impedi- convertible exchange available by other than those for which they could be discussed and solutions
ment checking this expansion. The purchasing other currencies and were contributed. When countries worked out to the best advantage

Now Dillon

-

*

Nancy Dillon is
her
the

investment
name

Company

now

Fund

has

been

entrusted

by

its

business

of The Dillon

under

Co., from




-

-

by

extending

lines of

credit

to

•An

address

by Mr. Roath at
the
Congress of the International Chamof
Commerce,
Vienna,
Austria,
May 20, 1953.
>
♦
14th

ber

••

r

,

♦

..1

During
vpar„

y^S

thp

the

last

two

ha<?

Tr,1nrJ

or

in

that

in

,

i.ii

their

short-term

relatively few exchange transac•

of

ness

help in the form of grants
long-term loans it would clear¬
ly have been wrong to pretend

three

pn^aeed

tne t Una nas engagea
>.U

all1 concerned.

needed
or

-

monetary authorities.

conducting

Offices at 520 Fifth Avenue.

>

then

i

-

Out-of-town guests are cordially
invited.
The Committee is send--

longer

no

are

our member governments on con¬
all be vided the Western
European coun¬
structive and progressive policies
tries with an- opportunity to re¬
can go far toward breaking down
store and increase their produc¬
i
icvels of employment When' .the transitionalarrange- tive/capacity, and enabled the any rigidities that critics have
income and in developing ments have ended the Fund will Fund to reconsider/its policy in seen in the machinery of the Fund.
productive resources. ,The Fund
have similar responsibilities with
I do not think that any of our
relation
to
transactions
from
a
waJ pleated because its, founders, respect - to - exchange restrictions somewhat
member : governments
will lack
and the governments they
longer run
point
of
repre- and discriminations.
Further we
either the desire or the willing-;
view: It was not unreasonable to
sented, believed,, that this objec^- can
provide, short, or rather me.-;
ness
to see the Fund-provide a
hope that four years of Marshall
iye3 SKS Sw
substantial volume of assistance
ex" dium. term, advances. to member Plan* aid would so
improve the
change arrangements that would, countries
who find themselves in
for major steps toward the con-;
4-

p.m.

;

trade

the bottom of the list of

W0rl^.trade. 1S- taken into account before—rather
ifnlie T16" in mamT than after—adjustments are made.,

o

ance

your

3

lateral

*

Ivar

rigid controls were ment a member is assured the
for non-golfers (prize for winner imposed on imports and on other right to purchase a stated amount
expenditures abroad. There is now of foreign exchange for a fixed
and runner-up); dinner at 7
p.m.
of time.
The time anAfter dinner prizes will be widespread doubt whether this is period
really the best way to achieve the nounced for
stand-by
arrangeawarded to winners of the
sport¬
objective in mind.
People have ments is six months with the posing events and a special event
become more and more dissatis- sibility of renewal.
We can, of
will
be
held
of
which
Frank
fied with rigid controls, and gov- course, consider a somewhat
Meyer, First of Michigan Corp.,
ernments are more willing to longer period if a member finds
is in charge.
On arrival at the
mould their policies in accordance that six months is not sufficient
club, members should register at
with the concepts upon which the time to cover its problems.
the locker room entrance and
pick Fund was founded.
up
envelope
Criticism of the Fund
containing dinner
tickets, etc.
Methods of the Fund

own);

sub¬

alleviated.
Even more
important, the climate of opinion,
not only among bankers and busi¬
ness men, but also in government
circles, has undergone
a
great
change since 1948. The goals of
convertibility
and
free
multi¬
stantially

pnirci-

,

p.m.

been

been

prevailed, this was undoubt¬ resources are devoted necessarily
our members have an obligation
edly the proper thing to do. At depend on the attitudes of govern¬
\ pal' Objectives* to
refrain, except withip." certain this point I might say, parenthe¬ ments. The new economic climate;
WM> is-to facilitate rather - narrow limits,; from alter-;
tically, that our total transactions that is now developing will un-.
tne
restorajng their exchange rates without have amounted to nearly $1 bil¬ doubtedly have important effects
11 o n of con-,
the approval of the Fund. The inlion
of: which more
than one- for^the operations and activities
terests of all .trading nations will fourth has
of the Fund.
The instrument it¬
been repaid.
The expansion, be
affected by changes
inexself is potentially quite flexible.The generous scale
on
which
balanced
Rooth
change rates, and in this way
Sincere and active cooperation by
the Marshall Plan
.

-

compe¬

have

have

.

.

Lunch at 12:15

Others

resolved.

more

-

tition for prizes.)

started

Plan

Marshall

the

here is to; duce
economy,. and, will T be evi-greatly the Tisks- involved in
give time so that necessary ad justdenced in the form of business tries
was recognized
^have /recently shown re-; ments do not have to be made too convertibilityIt all • of ^ Western
declines towards the end. of this:
indeed
that not
newed-practical interest in this
abruptly, : arid that the /normal
year and into 1954. The
declines,' approach ; to these fundamental- channels of trade' should .not be Europe's- economic problems
would be solved by the Marshall
however, : will- be i from J record economic problems, tt is a hopedisrupted> our general policy is
Plan, but in view of all the cir¬
trighs, and will-leaver-business op-* ful .sign that increasing attention. that
Member drawing on the
erations at
generally. satisfactory' is now being.given tp it nearly Kund should repay the Fund cumstances/at that- time the Fund
decided in* 1948 that its resources
levels. "*■
••
>-?r ■ ' •*w,'
everywhere —our discussions towithin, a period of three to five
should be substantially preserved
day being only one mustration.;
years
in me recent past we have
for use as supplementary reserves
; The exchange restrictions that'adopted two policies designed to
at the end of the Marshall Plan.
had inevitably been imposed dur- facilitate use of these resources by
During that period the Fund's re¬
ing the war could certainly not our members.. We give the over-*
sources were, therefore, to be used
have been immediately relaxed, whelming benefit of any doubt to
by its European members only to
DETROIT,- Mich. — Arrange¬ In many quarters, however, their members wishing to purchase for- meet unforeseen
emergencies not
ments have been made to hold maintenance was almost wel- eign '"exchange
within the > so- covered
by diredt aid from the
comed
because it
was
believed called "gold tranche"—a term that
Annual Summer Golf
Outing of
United States.
that the protection of full employ- can be somewhat roughly defined
the
Bond
Club- of
Detroit
at
Meadowbrook Country Club on ment at home required expansive as meaning an amount equivalent
The Fund's Reserves
June 2, 1953.
monetary and credit policies, ir- to the part of a member's subWhatever
respective of their effects on the scription that has " been paid in
may
have been
Program for the day includes
golf, starting at 9 a.m. (The first country's international payments gold. The Fund is also prepared, thought of the policy then adopted
position. These policies increased in appropriate cases, to enter into by the Fund, I think that now we
18 holes will count in the
the

them when the

lems which faced

an£real

reason
or

*

the

however, the situation of
many of our member countries is
different. Some of the basic prob¬
day,

Sterling Area toward their
transactions ag¬
than $500 million major economic problems.
chases in their exchange: rates,- during its) first year of activity. / The manner in which the Fund
utio--

tnat

however,

fact,

To¬

solved with Fund assistance.

.

major extent'4ur-;
coming fiscal1 year,'and'
any

may conceivably be a little higher
than in the year just past. -7\
;

wT'

Know

Sneq>°
Fund s

that base.' .'y/

be cut

oil
a

-

Vr?»' e.xcha^e arrangements, including,

pprnpd

(1): For; some time to ; qorifie/
America will find itself iri a"no-;
war, no-peaee"

-

21

(2321)

■

'*■

jj

,

.

problems
nature
.

,.

y..

of

were

that
.•»

could
r*0t

i

* •

/*

a

be
-

The

effective¬

of this forum will depend in.

large measure on" the willingness
to

cooperate of those governments

who

participate in it.

\"

22

its ugly head.

off

by

has

easing

in

the

sumer

credit.

in

crease

Company

prepared to meet

more

and VA loans and the

general rise in long-term

be faced,

to

One

the

of

of

believe, has

mortgage
particularly

since
of

the

the

What

be

generation, I
the growth of

business,

banking

source

of

or

The
I

was

absorbed by the

life

companies,

insurance

believe, took

lengthen

into

ma-

by

long-term obligations,
offering
of
31/4%

balloon is

A

quite

a

it mildly.
-

to

the

of

one

bring

out

bonds as compared with
balloon, to put FHA and VA loans, which involve
the heavy internal costs just menlooks

it

the greatest per¬

—but

looks

it

to

me

these factors out for you to see.

the

Reaching the Saturation Point

is about over for the
banker, and he must
prepared to meet compe-

honeymoon

miss business

centage of this increase in mort¬

has

for, according to figures
published by the Federal Reserve,

_

be

to

grown

big

gages,

busi¬

many of

its

000,000 as of the end of 1945, to
$21,245,000,000 as of the end of

as¬

pects, and in¬

when

announcement

had

with

to

1952,
300.

d

o u s

E.

T.

of money.

sums

Lovejoy, Jr.

The

mortgage
banker can rightly

be

proud of

the part he has played in provid¬

ing decent homes for the average
citizen of our country, as well as
the part he has played in provid¬
ing modern office buildings and
stores and factories, which has resuited in more pleasant working
conditions.
The development of
the FHA and, since the war, the
VA, is also partly responsible for
this improvement in the housing
of the average American citizen.
if

But

it

had

enlightened
FHA

and

not

been

for

the

of

the

exploitation

VA

the

by

mortgage
banker, such improvement might
not have taken place to the extent
it

And I

has.

ploitation"

the word

use

the

in

"ex¬

constructive

sense.
<

Now,

ticular

moment ago I made par¬

a

reference

growth

to

Federal

of

Reserve

Bulletin

of

creased from

$35,500,000,000 at the
$90,600,000,000, ac¬
cording to preliminary figures for
end of 1945 to

the

end

55.1

billion

of

Increase

in

1952,

increase

an

dollars.

Most

mortgage

of

debt

of

this
was

absorbed by fingncial institutions,
for, according to the Federal Rererve

ly

figures, the mortgages held

all

financial

creased

from $21

institutions

during this
billion

same

in¬

period

of the end of

as

such

in

some

1952,

areas

com¬

are

petitors of the mortgage bankers,
account for the next largest in¬
in

mortgages, showing an

1952.

In

other

words, during

this period the financial institu¬
tions absorbed about $46 billion

^PPen it could mjan we would

what I

on

up1, with "10^.^ari a million
dwelling starts this year. Han,

giv-

ing it careful consideration, 1
to

came

such

an

the

increase

should

rate., to 4 /2%
sh?uld ref«in. a« unwarranted

that Mf 1 Jcrease

conclusion

be

an-

$12,128,000,000 for the nounced before I deliver these
period from December,
1945 remarks, it would not materially
u
through Sept. 30, 1952. Then com¬ change what I have to say.
be a
false burst'of acmercial banks come along, with fact, if anything it might make it
tj
followed by
a
an
increase of $11,140,000,000 of even more timely to warn you to „,
y
^ h
,, .
mortgages during this seven-year^ get your house in order now.
' ~ snarP dr°P wmcn couia De Paln
ful ; and cause some hardships.
I
period, and savings banks during
Iri..today's market I have some
this same period 'showed an in¬ doubf in my mind that a
t h^Viin
nf thp
crease
of $7,151,000,000.
As al¬ percent increase in' the interest J
'
,
believe, in vie ofAhe
ready stated, these figures come rate on VA loans and a one-quarftiay not
from the March, 1953 Federal Re¬ ter
of
one
percent increase
thd sahirktibn
serve Bulletin, and although they
FHA loans would really be com?ar T™! ]re saturation
do not quite balance out.
in housingand may already
they are petitive with other available in- P
accurate
enough, I believe, to vestments. I have always in my ^ve
it in some areas.
show the
rapid growth of the own mind used a rule of thumb Also I have heard some peop.e
mortgage portfolios of financial as to what might be regarded as say.'hat even our industrial cainstitutions.
a
reasonable spread between the Pacity
may be over-built, parIf I were sitting there in your yield on long-term United States Ocularly so if there is a decrease

In3otild

p?obaby

one-halfv']S*-h5t

S

^last^even vearTwe
fapTroni

reached

or

Treasury bonds and other invest¬

stretch-out of

our

rearmament

program, and from what I read
AAA
corporate security should m
e. Papers, it looks like we
yield a minimum of 30 to 40 basis are g.01"® to have s"ch a decreas*
points more than a United States or- stretch-outre g a rd 1 e s s o
Treasury bond. AA corporate se- whether or not there is peace m
outlets.

ment

For

instance,

a

careful

very

their living standard.
You cer¬
tainly don't want to take on addi¬
tional
collection
headaches
by

careless selection of home buyers.
Another

•

in

thing,

the

case:

of

is that even though the.
restrictions have now been lifted

VA loans,
and

make 100%, loans,
think it would be
sell homes indiscrimi¬

can

you

under the VA, I

unwise

to

veterans with 100% v
On
this particular,
point I have been wondering if
it would not be a good policy for
an institution to vary the discount
to

mortgages.

prices it would pay for VA loans
according to the amount of cash
paid in by the veteran at the time
he buys

the home. This, of course,'
screening *.

in addition to the usual

of the loan

on

security and ability

the loan. That's just a
thought, it hasn't jelled yet, but
I am sure the same type of thinkto

carry

ing has

been

going

„

through the

minds of other institutional mort¬

I

^

buyers.

gage

primary
im¬
portance which no doubt most of
you are already doing is to tight¬
en
up
on
your collection pro¬
cedures.
Actually, you are doing
One

a

of

thing

disservice

to

the

home

owner

him get into bad paying
habits in regard to his mortgage.
A tough collection policy, exer¬

if you let

cised

the

pays

home

to

helps

preserve

his

investment, and in the

the

saves

run

bankers

under¬

and

dividends,

owner

home and

long

discretion

with

standing,

internal

-

costs.

mortgage
Prompt

action is cleaner and cheaper. This
yield 40 to 50 basis Korea>
- y
is something I can say with as¬
points more, and a single A bond
When the saturation point has
surance, because I began to learn
50 to 60 points. When you get to been reached. I do not believe al1
about the handling of mortgages
lower
quality
than
that,
the building
will stop, because I in the 30's and have seen what a
spreads get bigger. In other words, think there will always be some
timid collection policy can do to
a BAA bond should yield 60 to 75
building and some creation of an institution's
mortgage port¬
basis points, and mortgages should new loans.
However, it is my folio.
at least have a net yield of close
thought that this period of subNow. this next point touches on
to 1% higher than United States stantially reduced building activa
problem that I guess we have
Treasury bonds. After taking out ity might last for several years
all had in recent years—compe¬
a servicing fee of one-half of
1%, until the crop of war babies born
the net return at par for an FHA in the early '40s begins to grow tent help. There is no need to go
into the caliber of help we have
or VA loan
bearing a 4%%' rate ■ up and create new families. When
been having in recent years. How¬
have been getting tougher in the would be only 4%.
This recent that takes, place, there will be
last three or four years. You have of ering of United States Treasury another
wave of building
and ever, some progress can be made
in bringing about improvement in
been getting a little
competition; 3y4% bonds makes me wonder if creation of mortgages,
the efficiency of your help by a
a
net return of 4% .on FHA and
from other forms of
No doubt you have heard that
investment,
lot of patience and understanding,
and this competition has intensi¬ VA loans would be a sufficient the reason for the delay of an
but insistence on effective work
fied since the Federal Reserve spread
to
justify
buying such announcement of an increase in
the
employee.
Generally
pulled the pegs on the; govern¬ loans at par. Don't forget that in rate on FHA and VA loans has by
addition to a service fee of say, been resistance to such an
ment bond market in
in- speaking, if the boss takes the
March, 1951.
Prior to that time you had in some one-half
percent, an
institution crease by the Veterans Adminis- time to try to explain to the clerk
I have heard, and you why he or she is asked to do a
respects an artificial market for has its own internal costs of ban- tration.
certain job
and how important
your loans,
indirectly supported dling a mortgage portfolio, which also have probably heard, that as
that particular job is to the over-.
by the pegs on the government must be taken into consideration. a counter-proposal, the Veterans
all operation, the employee then
have heard
some
institutions Administration prefers
bond market and accentuated by I
to leave
the lack of demand for money claim that their internal costs run the rate at 4% and legalize a dis¬ is more likely to show some in¬
terest in what he or she is doing,
from other sources.
But that is ss low as one-eighth of 1%, but
curities should

,

count

of

end

increase have

increase of

not

the

an

think

I

so,

screening should be made of all
new
purchasers of homes, to be;
sure that they have
the capacity
to
meet
their mortgage
instal-;
ments and not materially cramp .*■

No doubt you have nately

mortgages.

FHA and VA

have to say here today? After

preliminary

for

on

which

crease

in

mortgages. As a consequence of k®^d P r e d1 c t10 n s of another
this uncertainty, a big question in. ^00,000 _oL dwelling units
this
my mind was, what effect would year;
ahd if this flurry should

mort¬
gages represented approximately
28% of insurance company assets.
Savings
and • loan
associations,

1945; to $67 billion, according to
figures

made

increase

the interest rate

of

end

the

1953, the mortgage debt
outstanding on all properties in¬

been

increase of $14,609,000,-

the

March,

'

an

the

an
At

remark¬ places, after getting this bunch of
mortgage^ figures, I wouldn't be surprised
banking business since the war, if my reaction were, "So what?"
and let's see what has happened
Well, I think these figures indi¬
during that period. There has cate that the mortgage bankers
been *a
tremendous
amount
of have been doing all right for the
building of all types of property, last seven years, particularly in
but to illustrate what has been the
early part of the period, when
going on, since
1945
approxi¬ mortgages were selling at sub¬
mately 7,000,000 non-farm dwell¬ stantial premium, but even when
ing units have been built. That these premiums finally melted
is to say, during the seven-year away, you still did all
right until
period from 1946 through 1952 the last few months, when you
inclusive, using a figure of ap¬ found the going really a little
proximately 1,200,000 units for tough.
1952, an average of about 1,000,Things Have Been Getting
000 housing units have been built
Tougher
each year.
During the same pe¬
There is a reason why things
riod, according to figures from the

able,

FHA and VA lnterest rates to:,4%%. _It is quite
possible that there will be a flurry°f building which would resuit ina substantial volume of

add at this point that
preparing these remarks no

reference

,,

,

an (increase m

little hard work.

a

mortgages held by life insurance

in

aggregate,
n

do

,

the most
optimistic view-of the effects of

L might

volving, in the
treme

and

tition

companies increased from $6,636,-

highly

ness,

technical

be

u

suppose we take

mortgage
now

* Just want to bring

aaF nlor^

to

if

as

,

tioned? I won't belabor the point

trying

am

that

done

dollar dling

billion

things I
is

nominal cost of servicing or han-

trial balloon for

a

program.

begin with, I think it only
say that I am quite sure

to

cess.

Treasury bonds maturing in 1983,
this

To

fair

Last week the Detroit Edi- many of you are already doing
son, which is a AA credit, offered many of the things I am going to
$40,000,000 of bonds on a 3.75 suggest. But I think it only prop¬
basis. This offering did not go er, in order to do a thorough job,f
out" of the window, either. Now, that I bring out all the suggestions
how do these offerings look com- that come to my mind. For in¬
petitively, when you consider the stance, if you have not alreadyf

out

recent

has been called

The interesting thing

is that it was not a howling suc-

me—and I know I could be wrong

institutions?

financial

or

hit

which

gages

to

less

the

of

breakdown

the

and

from,

money,
particularly
the
83%% of triis increase in mort¬

end

more

come

money

to

considerable extent the

debt

did the
what is

where

is,

question

obligation.

and

year,

but also has

year,

itself

The

mortgage loans is a lot of money.
The

a

fiscal

current

refunding the present short-term

this

w a r.

used

a

our

been

the

remarkable

many

you

United States Treas-

turities of its debt obligations

Urges mortgage bankers to exercise careful screen¬
ing and otherwise to "get your house in order now."

,

the

committed

building.

phenomena

occurs

It not only has to fund the
which it is going to show

the

probably next

rates as

money

de-

credit

for

sources

ury.

and foresees saturation point in home

to

demand

cona

deficit

competi¬
FHA

factors

when

But

of

for

little hard work. Cites higher interest rate on

a

for

demand

the

sign

form

prominent life insurance executive points out reasons

mortgage bankers must be

Some Suggestions in Getting Your
bring out, there is one
House in Oraer
point that will show you
It is not my nature to be pessi¬
the type of competition you have
today. About two weeks ago, tne mistic—in other words, I don't ^
Maine
Turnpike offered some believe in just throwing up your
bonds to refund their presently hands in horror and giving up.,
outstanding obligations and -fi- When I see signs of trouble ahead
nance the extension of the Turnmy first reaction is
to begin to
pike on a 4% basis. Now, here's a figure out how to meet it. And
now we get to
the point of what
tax exempt bond yielding 4%.
Granted it is not the best quality I came down here to say to you
—at least a lot of people say so— about "getting your house in or¬
;,
it is still 4% on a tax-exempt der now."

So
of

year.

no

Thursday, May 28, 1953

otner

find other competition in the

may

why things have been getting tougher in last four years, and
tion and do

been

from these two

Stressing the remarkable growth of mortgage banking since
the war,

of this

the end

there

far

...

to

ing

signs that
financing
of

are

for

plant expansion may begin to ease

By THOMAS E. LOVE JOY, Jr.*
President, The Manhattan Life Insurance

There

demand

this

Signs oi Trouble in
Home Mortgage Field

says

Financial Chronicle

The Commercial and

(2322)

for

the

fact,
the

case

it

today.

hasn't

last

18

As

been

a

months

to

I

do

I

The

3%,

of

idea

of

dis-

think

not

take that at face value, counts is all right in theory but
something close to one- I don't think it is practical and
two duarter of 1 % as the average cost. I do not believe it will produce
tre¬ of an institution's internal costs the
results
intended.
In
other

matter

the

case

and.

try

work for
,

to
a

give

a

decent

day's

day's pay.

Mechanization, where it can be

profitably, is a very desir¬
take. No doubt most
of the total increase in
increase to 4%% on FHA and VA problem.
mortgage
To be competitive in of you have done that already,.but
debt over this seven-year period. sulted in their
going to the mar¬ loans, when and if it. comes, or if today's market the discount should perhaps your machines are now
This represents about .83%% of ket for funds to finance such it has been announced since I
be much greater in the first place, out of date and there are more,
the total increase.
expansion. Also, since credit reg¬ started preparing these remarks, but I think that is a dangerous modern machines available that
Now, 7,000,000 dwelling units is ulations were removed last year,
would result in further economies
may not necessarily be the an- practice, because first, it is likely
a lot of units, and $55 billion of
there has been an unprecedented
;
to be misunderstood by the pub- in your operation.
On this ques¬
swer to your problems or bring
increase in consumer credit.
As
Uc.and second lt 0Dens the £00r tion of mechanization and sim-*
''An address by Mr. Lovejoy before the
about a par market for such loans.. tQ abuses a^d criticism of
i
result, the old law of supply
the plification, however, I have a feel¬
.Texas
Mortgage
Bankers
Association
years.

There

has

been

a

mendous amount of plant expantion by our industries, which re¬

closer

comes

.

Convention, Dallas, Tex., May 7, ^953.




and demand is

beginning to show

Just to

to

the truth.

*,

So

an

.

.

words,

that

does not answer the

done

able step to

;

emphasize what I'm try-' lenders.

'

J

"

•"*

ing that it can sometimes be over-.

Volume 177

done.

be

For

of

tion

1VL

machines

the form of frankly, we have had the satisfac¬
salary, dividends, etc., when I ask tion in the past of pointing out
for a copy of his auditor's state¬ to one or two of our correspond¬
ment. What I am interestedin is ents weaknesses in their operation
whether
or
not his
business is where they were kidding them¬
making money. Is his servicing selves that they had a sound busi¬
carrying itself?
Are his profits ness when actually, if they hadri't

out of his business in

might

for

one
fellow, but not
else, and is not neces¬
sarily tne cure-all for every mort¬

some'one

bankers

gage

lems.

Try

accounting
work

to

counting

procedure

machines

which fit

and

-

ac¬

get tne
individ¬

your

situation and which

ual

prob¬

the

out

primarily

And

kind

mind

in

bear

that

simplify

can

be

where

you

By H.

or

tion

on

Since the accord

sound basis.

a

to

in

up

the

the

last

business

mortgage

two

three

or

in
of

years,

is the
mortgage correspondent offering
to
service
loans
on
one-family
I

this

have

rangement is
less

both

business

No

parties to

Speaking

ar¬

should

the

of

the arrange¬

profit by it. The servicing
end of a mortgage correspondent's
business

support

in

etary policy" of the Treasury and
the Federal
Reserve before
the

ment

Prime bank

carry

itself

Fi¬

Advanced

and

Classes

nance

stick
accepted

going to
have
not

when

did

we

one+

a

servicing fee, but
it, it was with the

thought in the back of our minds
that some day the men who sol i
these loans will'come to

that

say

they

cannot

us

and

survive

if

they continue servicing loans at a
-%% rate. -I hope, because I have
whom

from

ence

in the audi¬

we

have

rw

purchased loans with a lk% serv¬
icing fee will meet me after this
session
on

is

over

apd go to work

\

me.

~

Strengthening Your Subsidiary }
Income

final

One

of

sources

most

of

have

Sources

suggestion I have to
search for other

that you

make is

a

For

income.

instance,

if not ail of you,
secondary source o^ in¬
you,,

come

in

from

your

operation
commissions on fire
present

your

insurance and other lines of gen¬

I

insurance.

eral

am

sure

that

with ingenuity you

might find in
respective communities other

your

of income which will con¬

sources

tribute

maintenance

the

to

of

a

operation in< your office.
suggestion I have is to give

sound

of

Life

postponing

C

cjtm

Victor B. Gerard

pan yr,

;

crying 'wolf' because the Fed¬
eral Reserve has stopped support¬
are

the

Stock

York

New

Keith

printing-press money that has
been sending prices skyrocketing
the

the

of

end

war.

These

:
.

<

Exchange's

the

Funston,

;

Stock

Exchange

as

feel that
perhaps you will antagonize some
of your clients.
I will admit that
operation

there is
tion.

because

some

But

there's

day

merit to that objecr

there's

where

way

a

you

and

a

will

perhaps some

will come to realize the
op such an operation and

you

value

enthusiatically seek to find some
to offer mortgage redemption
insurance to your home buyers.

way

When you get to the

point of giv¬

ing consideration to this sugges¬
tion, I would like to remind you
that the Manhattan Life has the
best

the

on

redemption policy
market,
gives the best

mortgage

service, "md has been doing busi¬

in Texas for

ness

over

a

hundred

years.

What

I

going to say now
popular, but any
institutional man should, if he is

may

am

school in

correspondent to have a
profitable operation and should be
gage

tee

issuing longMr. Gerard

"If deflation occurs,"

contended, "it will not be because
the Federal Reserve and the

have

Treasury

long

at

last

•

re¬

verted to orthodox economics and

finance.

sound

it

Rather
of

aftermath

the

on

>

will be

inflationary'

the

Firms—

of Member

Department

term bonds."

the

of

by its bootstraps. It

economy

happens that with the supply
credit thus reduced

so

where he served in various capac¬

ities.

During World War II, Mr. Van¬
served as a U. S. Naval

derbeck

Reserve officer from

the

with
Com¬

Lieutenant

of

rank

July, 1942, to

emerging

1945,

December,

is doing—for instance, I don't

what the boss may be taking




+ 0.88

2.28

+ 0.80

3.06

2.80

+ 0.26

2.74

2.45

+ 0.61

(")__

3.35

2.99

+

0.36

3.04

2.67

+ 0.68

grade bonds (t)

2.74

2.42

+ 0.30

2.13

1.72

+

4.02

3.72

+ 0.30

4.12

3.55

+ 0.47

tinuing to increase, interest rates
have
risen
somewhat;, but this
is

rise

incidental fea¬
ture of the basic program to elim¬
inate further artificial expansion
merely

in the

supply.

money

is

"It

an

important

that interest rates
any

"to

recognize

still low by

are

historical measure. They have

risen only in

relation to the arti¬

ficially depressed levels of recent
Current interest rates re¬
conditions of supply

years.

cord existing

and demand for funds in the open

market. Rates

are

no

William

longer being

manipulated from Washington. '

Hutton

E.

was

the

of

elected

Exchange,

of

Hutton,

the

of

a

partner of W. E.

Exchange

since

1940

new

have

not

unwise

first

exclusive

an

the present
to

Administration

does

patent

on

fiscal program. A halt
monetary policies was

achieved

through the skilful

was

Douglas early in 1951. The

carried
man

that

carried

was

then

established

of

the

Federal

Re-

risen in price and

2V2

of

years

ago.

are

now

.■/■•

.

this period

Where

considerably above

In other words, the movement of bank

a

has been largely determined by changes in
or the prospect

larger payment fairly certain, the stocks have risen.

would

seem

to be in prospect in the coming
bank stocks are not

As investments for income purposes,

nearly so attractive today as they were two years ago when the
general level of interest rates was much lower. For this reason,
we would not expect bank stocks as a group to rise in the market.
This does not mean that in individual instances, where larger
dividends
On

are

in prospect the market action will not be favorable.

the contrary,

there

seem

to l?e several cases where the im¬
larger payments and

provement in earnings will be reflected in

higher stock prices.
where the best opportunity for capital gains

area

in bank stocks is believed to exist.

selective at

Joins R. S. Dickson Co.
(Special

In other words where capital

objective, investors in bank stocks should be quite
the present time.

gain is the

Douglass & Co. Adds
(Special to The Financial Chuon.cle)

to The Financial Chronicle)

BEVERLY HILLS, Calif.—Edwin A. Buckheim, Jr. has been
Co., Inc., Grant Build- added to the staff of Douglass &
Ga.

ATLANTA,

Townsend

—

joined the staff of R. S.

Budd has

Dickson &

Co., 464 North Bedford Drive.

ing.

With Inv. Service

With

(Special to The Financial Chronicle)

Dempsey-Tegeler

(Special to The Financial Chronicle)

LOS
COLO.—Herman A.
ANGELES, Calif. —Mar¬
Stein has become associated with garet D. McGurk is now affiliated
Investment
Service Corporation, with Dempsey-Tegeler & Co., 210

DENVER,

Sherman

West

Street.

With Keller Bros. Securities
(Special

Seventh

Street.

Mass.

—

Dorothy

Roosov, formerly with Hodgdon

Joins E. F. Hutton Co.
(Special to The Financial Chronicle)

Financial Chronicle)

to The

LOS ANGELES, Calif.—William

& H. Engquist is now affiliated with

Co., has joined the staff of Keller E. F. Hutton & Company,
Securities Co.
South Spring Street.

C23

Brothers

past

three

Scott

NATIONAL BANK

Foster, whose term as a governor

of INDIA. LIMITED

for

governor

years. '

the

succeeds

He

expired May 18.
:

Mr.

Bankers

ties

business

in

1930

as

an

a

partner ' in

June,- 1933.

saw

active service with the United

States Navy as a

mander

on

Lieutenant Com¬

board

the

U.

S.

S.

Wasp

to

which

for 22 months.

he was assigned

Government in

26,

FIRE & CASUALTY

INSURANCE ST0CI1

Uganda

1952 Earnings

Bishopsgate,

London, E. C. 2
Branches
.

During World War II, Mr. Hutton

the

Office:

em¬

ployee of his present firm, becom¬
ing

to

Kenya Colony and

entered the securi-.

Hutton

,

dividends have been increased

David

a

,

•

and

out, and is still being

out, most ably by Chair¬

Martin

,

Since the change in Administration last November,

spitq of the increase in market prices most of the New
are now yielding approximately the same as at

Head

"The

policy adopted by the Federal Reserve to prevent fur-

BOSTON,

has been a member

Hutton & Co.,

1.02

tStaridard & Poor's.

stocks have

months.

Funston, Presi¬

Keith

(■>)„_

A similar pattern

annoiinced.

Mr.

bonds

BAA

'

of

Board

Governors of the New York Stock

-

bonds

AAA

the end of 1950 and 1951.

444

Vice-Chairman

dent,

1967-1972 (incl.)

It is in this

Of N. Y. Stock Exch.

demands for money con¬

the

and

policy

care

1.95

2.68

dividends.

W. E. Helton Vice-Glim.

additional

find that out. It isn't idle

he

2.34

stocks in

mander.

directly

excesses

Paul

curiosity

0.41

+ 0.30

York bank stocks

Exchange's Commit¬
Business Conduct—now the

financial program by

ments which would enable him to

mortgage banker is asked how

+

2.78

ferred to the

leadership of Democratic Senator

a

2.42

3.08

In

elected Vice-President was trans¬

interested enough to ask for state¬

if

+ 0.70

2.83

the levels

1928,'continu¬

January,

step in the direction of a balanced

not be too

doing his job right, want a mort¬

1.80

bank

messenger

a

cautious forward

a

2.18

being graduated from high

after

ing his education at the New York
Stock Exchange Institute.,
r
'
After several months, the newly-

taken

+ 0.26

1952-1954

.

the

people also see the spectre of de¬
flation stalking through the na¬
tion because the Treasury has re¬
cently

2.24

Dec.

has been generally favorable. Operations have improved substantially because of the rise in yields and the expansion in demand
for credit.
Although taxes have also gained, including in some
cases an excess profits liability, the large increase in gross has
been sufficient to offset higher expenses and taxes, enabling most
of the banks to report a sizable' improvement in net operating
earnings. As a result the banks have increased their dividend
payments. Because of this and the improved operating outlook,

,

Ex¬

change, has been elected a VicePresident of that institution, G.

ing Government bond prices and President, has announced.
He began his career with
stopped flooding the country with;

since

..

.

with

+ 1.10

2.50

yr.)

1

this policy has been pursued more aggressively and has been
accompanied by private demands for funds of record proportion.
The resulting stringency in the money market has forced
short-term rates to the highest levels in 20 years and required a
sharp downward adjustment in the prices of outstanding market¬
able obligations including governments. ■
•*
■
The adjustment has been noteworthy in municipal securities,
where despite a tax advantage, the weight of offerings has forced
yields to rise more rapidly.
•
>
The impact of these changes in interest rates on bank stocks

>

,

who

Vanderbeck,

K.

+ 0.71

1.49

ther inflation.

spent his entire business life

has

1.35

1.82

tive credit

<

business readjustment."

William

Louisville,
/ .,
Kentucky, stated that "Some poli¬
ticians and a few special interests

1.77

■"Moody's.

business expansion,

Of N. Y. Stock Exch.

Insurance

0.06

+ 0.68

(about

These changes in yields are, in part, a reflection of the restric-

.

wealth

+

1.91

Railroad

Vanderbeck Named V-P

the

Common-

2.00

2.59

Munic. high

Treas¬

urer

gasoline on the fires of
inflation by recklessly manufac¬
turing additional credit will prove
a blessing to the nation. It should

future

+ 1.00

2.06

bills
notes

or

Corporate

should reduce the severity of any

Convention
and

2.25%

2 Vis Dec.

pouring

marignal

3.00%

1956-1959
2y2sSept. 1967-1972_:

attributable to;
Shortly after he returned to the
consideration
to
mortgage
re¬ the substantial expansion in the
Stock Exchange, he was appointed
demption insurance as one of the money supply brought about by
an
Assistant Manager of the De¬
other tools you have in your kit. the support buying of U. S. Gov¬
partment of Member Firms. In
bonds
To me it is a natural round-out ernment
by the Federal
May, 1949, he was promoted to the
of any package that you sell to a Reserve System and the sale by
home buyer. Statistics have shown the Treasury of short-term securi¬ position of Assistant Director of
the
Department
of Floor Pro¬
that for every home lost due to a ties to commercial banks which
cedure,
and he
was
appointed
fire, there are 16 homes lost due paid for them with money they
Director
of
that
department in
to the death of the head of the
created by bookkeeping entries.
"We have abandoned the policy March, 1950.
family. However, a lot of you are
hesitant to undertake any such of manufacturing credit—of lifting

One

Present

0.25

rate (New York)

2V4S Sept.

longer

"The fact that we are no

selves with debt, and by

.

said this, that no one

1950 to

1950

+

2s

of

appointee

ing down the rate at which con¬
sumers are now burdening them¬

neck out. We tion of the
few offerings— American Life

many—of loans with

quarter of 1%

of

1951

Change

Treasury bonds:

prevent our current boom from
getting out of hand; and by slow¬

my
a

*

Change

of

1952

3.00%

Treasury

former President Truman.
:

End

3.25%

Ctfs.

System—an

serve

preferably should throw off a lit¬ at the Univer¬
tle profit.
I don't see how that sity of Ken¬
can
happen if a large volume of tucky Victor B.
any mortgage banker's business is Gerard, Chair¬
on
a
servicing arrangement of man of the Fi¬
'one-quarter of 1%.
Now I am nancial Sec¬

u:

Current

Company, Louisville, Ky.

Life Insurance

un¬

good

or

End

of

"courageous and far-sighted mon¬

sound

'

End

practice and think it should

be discontinued.

us

This change is illustrated in the following comparison of rep¬

Victor B. Gerard, Chairman of Financial Section of the
American Lif? Conveniicn and Treasurer of Commonwealth

of

approved

never

Treasury and the Federal Reserve in

resentative rates at various dates.

So says

dwellings at one-quarter of 1% or
less.

Policy of Lifting
Economy by Its Bootstraps"

The

which I hignly disapprove,

of

in the level of interest rates.

"We Have Abandoned

Another practice that has grown

r

of the

of 1951 which resulted in the withdrawal of fixed price
supports for government bonds, there has been a dramatic change

point

a

Bank Stocks

March

lose control.1

carried

—

Rising money rates continue to dominate the attention
investors interested in bank operations and bank stocks.

them get their opera¬

and helped

resent

JOHNSON

E.

This Week

fees, they
would - have been losing money.
And
then we followed through

suggestion that you should
any questions of that
that may be asked;
Very

So

Bank and Insurance Stocks

origination

their

had

would

be my
not

source?

it

other

effective and economical for you.
cation

originations

from

some

most

are

23:

(2323)

The Commercial and Financial Chronicle

....

the installa¬

instance,
B.

1.

OK

Number 5224

in

India,

Pakistan,

Circular

Ceylon,

Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somali-

on

Comparison
Request

Burma,

land

Protectorate.

Laird, Bisseli & Meeds
Stock Exchange

Members

Capital-.—_£4,562,500
Capital
£2,281,250
Fund
£3,675,000

Authorised

Paid-up
Reserve

description of
exchange business."

New York

Members

American Stock

P>0

and

Trusteeships and

Executorships

also undertaken

Bell
(L.

A.

Teletype—NY

Gibbs,

Exchange

NEW YORK 5, N. Y.

Telephone: BArclay

The Bank conducts every

bankipg

BROADWAY,

Manager

7-3500

1-1248-49

Trading Dept.)

Specialists in Bank

Stocks

24

The Commercial and Financial

(2324)

Public

MANSFIELD
San Francisco, Calif.

Managers,

standard in 1879, and

asks "What

whole generation

States with

of

the largest

Federal

12

our

cause

supply of

Reserve

small

mercial

a

gold

cuse,
severed
its
money

standard

is absent.

from gold and
thus followed

hibited

the

flimsiest

the

standard

ex¬

with

coun¬

mess

of

standard

had

—our

no

omy

unless

pro¬

birthright
have

We

pottage.

for

rendered

the

substance,

very

<

entitled to

was

for

well

over

gold

hundred

one

No

smooth words
from
politicians or bankers or
business tycoons pleased with the

xeason.

of Janu¬

The Gold Reserve Act

sophistries,

no

bankruptcy.

meaningless

nature

serious and
fundamental matter like a stand¬

honest

had to be settled

perate

that

ard

for

money

a

the

of a des¬
Government

cry

for

then!

We hear proposals to form com¬

all
and Ex¬

approval
Congressional Acts
of

crown

us

largess, pump-priming, dole, will
Demo¬
crats or Republicans, to turn the
spigot wide open.
God help us

The Gold Reserve Act placed

the

people

dis¬
out.

our

force the money managers,

Sin in haste, repent at lei¬

sure.

of

find

will

Sooner or later the

during an emotional crisis. It was
analogous to the passage of the
18th Amendment and the Volstead
Law.

our

money

upon

mittees

to

study the problem of
the gold standard. We
doubting
Thomases
talk

ecutive Orders of 1933 which had

gold and

served to outlaw

hear

gold as a medium

had rendered its about the danger that with a re¬
possession by American citizens deemable dollar, all our gold will
illegal. The idea was, of course, be withdrawn. We hear it said
that we must not resume the gold
to free the government from the
fetters of gold and permit the un¬ redemption standard at the pres¬
for

and

money

It

thought also that this
give the govern¬
ment a large profit (in terms of
unredeemable money) and would
boost prices of goods so that busi¬
ness
would improve with rising
prices. And, of course, reelection
was

would

many

would

process

follow

business

good

rising prices.

tending

to

rise.

Likewise

and

money

party's

only

because

and

production

employment

is

money

standard.

tionary structure is
little

moment

citizens

that

to

the

the

money-system

assert

that

standard.

are

we

Their

an

official

namely $35
assertion
tent

price

is

for

that the

true

also

United

to

a

gold

law.

effort

Bills to

opinion,
anced

for

have

many

years

unless

us

it safe for

it.

It

that

budget

is

to

us

standard

for

our

waiting for a bal¬
improvement

or for

other reason,

some

gold,

vant.

and

their

time.

ex¬

Now, they

that

we

Furthermore,
have

a

it

say,

now

is the

a

gold standard in

1879

in this

is




followed

true

gold standard ber

be built in order to have

access

Edison's

present generating

capacity on a nameplate
rating basis is 720,500 KW compared with the December peak
load of 651,000 KW (the latter was 10% over 1951). Unit No. 6
of the Edgar Station, currently under construction, will add 81,250
KWH.
When this unit is completed the company will have in¬
creased its rated capacity 75% since V-J Day.
Over the next 2Y2 years

the company will need $58.4 million
for its plant construction program. It contemplates spending $19.1
million this £ear, $23 million next year and $16.3 million during
(including

About 60% of the total amount

1955.
mon

stock

will

be

which

a

proposed

com¬

issue) will come from investors. The remaining 40%
from internal sources through retained earnings,

raised

now

amount to about $18 million, and through future bank

borrowing. If the company resorts to financing in 1954 it will
probably be through debt. A comparison of present capitalization
(Dec. 31, 1952) with 1951 and 1942 year-end ratios is as follows:
iqm

1 qri

46%
Stock Equity-—54

42%

33%

58

67

1,

the

1958,

wide

com¬

until

company

and

group

firms

which

the

$72

of

215

will

company

share

per

investment

purchase

from

unsubscribed

any

portion of the issue.

Commencing June 1, 1955, an
sinking fund of $5,590,000

annual

provides for retirement of the
tire

en¬

issue

by maturity.
General
redemption prices range from
103% on or prior to June 1, 1954
to par after June 1, 1982.

Phillips
oil

gest

Petroleum,

concern

in

ninth
the

lar¬

United

States, will use a portion of the
proceeds to prepay $75,000,000 of
bank loans, with the remainder
to be available for capital ex¬
penditures and other corporate
purposes.
It is anticipated that a
portion of the balance will be used

to prepay

in March of next year

additional

bank

loans

not

to

ex¬

ceed

$38,000,000. During the past
five years, capital outlays aggre¬
gated $671,151,000. Estimated ex¬
penditures
total

for

the

present

approximately

year

$185,000,000.

Engaged in virtually every
phase of petroleum industry op¬
erations, Phillips derived more
than one-half of

ating

iqi?

Long-Term Debt
Common

convertible into

of

thereafter until June 1, 1963. The
First Boston Corp. heads a nation¬

to

The

highway should eliminate a great part of the heavy
traffic that now pours into metropolitan Boston.

troleum products,

oil,

and

1952 gross oper¬

from

revenues

lesser

refined pe¬

18% from crude

percentages

from

natural gas

In the 12 months ended March
a

share

around

stock

with

compared
50

$3.23

the Boston

on

in

31 Boston Edison earned $3.33

previous

the

period.

Selling

paying $2.80, the

Stock Exchange and

yields 5.6%, and sells at about 15 times earnings. Listing on
York Stock Exchange is being actively considered, but

the New

decision has yet been reached.
On June 2 stockholders will vote

no

on

the proposed

issue of

246,866 shares of common stock to be subscribed for on a l-for-10
basis—the first equity financing in many years. The management

issue should net the company about $12 million
which will be used to pay for this year's construction program.
expects the

new

liquids, aviation gaso¬
line, natural gas, fertilizer, and
other products.
At the close of
1952, total proved reserves in the
United States, excluding tidelands
leases, were in excess of one and
one-quarter billion barrels of
crude oil, condensate, natural gas¬
oline and other natural gas liquids
and 17.89 trillion cubic feet of nat¬
ural
a

gas. The company also owns
one-third interest in American

Independent Oil Company, holder
contest

Los

Ang. Bond Club
Sets Field Day

LOS

sixth

ANGELES,
annual

Calif.

Field

Day

Bond Club of Los Angeles
held

—

The

on

of the
will be

Friday,

May

29

committees; Dick Jones of
Mitchum Tulley & Co., entertain¬
ment; Robert C. Crary of J. Barth
&

Co., trophies and publicity.
This

annual

will
field

the

be

club's

of

a

000

Neutral

Gulf.
sive

sixth

day and outing for

one-half interest in the 1,650,acre
Kuwait-Saudi Arabian
Zone

Phillips

near

the

Persian

holds exten¬
and producing

also

exploratory

leases in Canada and South Amer¬
ica.

the

Spring Street crowd, accord¬
ing to Mr. Bingham, and promises

fore.

President.
Lewis

a

signal

by

success and

decade

a

of

was

pros¬

perity without inflation.
■'
I

erspoon

'What 4are we waiting for now!
1 f
1

i

1

& Co., Robert C. Crary of

!i

*

17

'***

Joins Hill Richards
(Special

to

The

Financial

Fairchild

has

Chronicle)

Calif.—Myron

CAMPBELL,

become

with Hill Richards

&

L.

affiliated
Co.

of

San

Barth & Co., Sam Green of
Francisco. Mr. Fairchild was for¬
Pledger and Co., and Dick Jones
merly Campbell representative for
of Mitchum-Tully.
Hannaford & Talbot.

J.

W.

R.

Staats &

Co.

Keene & Co. Formed

(horseshoes),
Co., Inc. has been
of Wagenseller
& formed with offices at 120 Broad¬
(tennis),
Bob
Diehl
of way, New York City, to conduct
Paine, Webber, Jackson and Curtis a securities business. Officers are
(baseball), A1 Jack of E. F. Hut- J. D. Keene, President;
Linda
ton
&
Co.
(gin rummy), and Noles, Secretary, and
Florence
Lloyd Young of Lester, Ryons & Wood, Treasurer. Mr. Keene was
Co.
(dominoes).
Sam Green of previously with Barrett Herrick
Pledger & Co.. is,,,Chairman of & Co., Brady & Co.,. and Frank
Earl

We resumed

was

country.

period in 1952.

same

express

Boston

are

stock

June

Society

highway is being built west of Boston and the
should benefit substantially in the future due to the new

new

Mr. Witherspoon will be assisted
abroad, or in the matter of
"sports and allied
is irrele¬ activities"
by Charley Gooding of

after a long and severe de¬
ernment still has the right to deal'
pression with a tiny gold cover
in gold at this price with central lor
our
money—and the resump¬
banks
of
foreign
governments tion
use

43-36

held, at a price of
$100 debenture. The de¬

1963, unless previously re¬
deemed, at $65 per share until

so,

this road.

we

resume

plain, in

of economic conditions

States Gov^

and also for industrial

2.50

recent luncheon forum talkbefore the New York

output are running well ahead of the

A

to

create

standard

convertible

maintain

true

the

or

gross

Washington

serious

gold

of

make

Their

per pure ounce.

is

a

of

cn

have in

we

to

correctly
a gold

can

still

assertion

to the extent that

laws

defenders

47-40

Whitney of Dempseyreturn before long to gold.
It is Tegeler & Co., is General Chair¬
their serious judgment, backed by
man
of the Field Day program,
precedents of history, that there assisted
by a committee consisting
is ample gold in the United States
of William Witherspoon of With-

has concealed the basic weekness
in our monetary structure.

still,

from

no

that disaster awaits

prices, for in general the overall
prosperity of the last 15 years

Worse

But

of

of

subject

of

thrifty Americans has been de¬
frauded by paper dollars and
high

our

2.80

stock

During the past six years, reve¬
at the
nues
have increased from $302,to be the best. With the Wilshire
centrally located Wilshire Coun¬
771,000 to $723,092,000 and net in¬
try Club with all day tournaments Country Club located at such a come from $40,893,000 to $75,284,short distance from downtown Los
in
golf, tennis, baseball, horse¬
000.
them.
It
is
the
over-whelming shoes, dominoes and gin rummy, Angeles, members will be able
to make greater use of all the
opinion of those economists and
according
to
Curtis
Bingham,
scholars who
have
studied
the
available facilities than ever be¬
Bingham, Walter & Hurry, Inc.,

our-

segment

mon

the abundance of skilled manpower is a favorable
factor for future industrial development. Although there has been
a
decline in the textile industry, this has been offset by an in¬
crease in other industries, notably those connected with electronic
research. Mr. Dignan held that there is no reason to fear a reces¬
sion in the New England basic industries, since employment and
year

1953,

June 1,

2.90

—

26,

Congress, but so far
the party leaders have remained
eloquently silent with respect to

we

of

mass

a

bentures

47-41

Security Analysts, Mr. T. G: Dignan, President of Boston
Edison, discussed the economic situation in his area. While the
population has remained constant in New England over the past

been filed in

reared. It is of

large

a

a

per

51-38

the

was

to restore sound
redeemable
gold

redeemable gold

a

infla¬

our

hear

actment

high

do

only

implement this policy in the only
way it can be implemented—en¬

fail to be impressed
by the rotten

foundation upon which

and

is

and

is

high

policy

we

dollars

paper

plank asserting that it

a

costs

become drugged with the tonic of

unredeemable

the

upon
which
President
Eisenhower was elected, contained

word, has

a

is

gold

that

party

capi¬
steadily shrink¬

The country, in

heart

days of the prophets.
The platform of the Republican

to say, the margin earned on
tal investments is

ing.

that

good,

its

money which has proved its en¬
durance as sound money since the

and

evident—that

is good only if its content

is

are

more

knows

in

common

52-45

May

on

to the deben¬
tures in the ratio of $100
principal
amount for each nine shares of

$100

of

do not

we

which

tending to rise
but the profit pinch is
becoming

more

But what

is the wee, small voice of
conscience, the voice of America

Politics!

everything

things.

hear

Well, it worked—and unfortu¬
nately it is still working. That
is to say, business is still
"good,"
and
prices and wages are still
of

1948
At

price of $35 per ounce because
the
gold
miners
cannot
make
profits at that price.
We hear

redeemable in gold.

years.

Approximate
Range

stock

common

rights to subscribe

2.80

,

ent

restrained issuance of money un¬

utilities

underwriting marks the current
offering by Phillips Petroleum Co;
of
$162,098,500 of 3.70% sinking
fund debentures, due June
L 1983.
The company is
offering, for a
two-week period, to holders of its

2.91

1949

company

emerged from a deep and

rather
terrifying depression, and it was

paid

serves

2.80

3.13

—

factories and homes that will

of

other

$2.80

3.16

1950—--

the truth

moral, monetary
Sooner or later the

unfortunate

$3.30

-

present state of things can eclipse

1934, became law at a time
this
country
had
just

when

to

Dividends

Earnings

1951--

bar¬

Caesar

unto

has
It

a

years.

good politics can be called a good

ary,

19.52

metal which served this free econ¬

Lewis P. Mansfield

compel ling
reason

We, the citi¬
are

sales

Share

own

our

and

stock record in the past five

common

Years

America,

our

than Caesar

more

But

reasons.

of

have

We

for
compel ling
money

we

Following is the

gold

gained away an honest money for
mere
n
paper-money-of-account.

abandoned the

gold

by

sold

have

which

tries

of

laws from
demanding the very metal upon
which our money is based.
We

parade of

those

free

of

zens

pretense

1886

about 32% of total
revenues, com¬

31%,

very

essential

was

and industrial 14%, while
16% and miscellaneous sales 7%.

were

here

But

nation,

any

founded in

proportion of industrial business and the high equity ratio.

In 1952 residential business

and deposits which

ends, for alas, the
of our traditional

by

and

was

stock in every year since 1897.

450,000 customers in Boston and some 39 other cities and
While New England is not noted
as
a. growth area, net system KWH output has increased about
91% since 1942. The company has two elements of stability—the

they create.

gold possessed

Company

common

One of the largest issues of con¬
debentures ever offered
stockholders
through negotiated
vertible

towns in the metropolitan area.

are

the money

its

on

Company

about

required to hold Gold
Certificates to the extent of 25%
Banks

Edison

Boston

dividends

waiting for now?"

are we

has grown
up since
the world had a true
gold standard. In 1933 the United

Boston Edison

Group

Underwrite Phillips
Pefroteum Debentures

By OWEN ELY

ascribing inflation of the
last two decades to lack of a gold redeemable currency, says
"sooner or later the meaningless nature of our dishonest money
will find us out." Refers to successful resumption of gold

West Coast investment counselor, in

A

Utility Securities

Mansfield,

Partner, Stevenson &
Investment

Thursday, May 28, Chron
1953

First Boston

Who Said Gold Standard?
By LEWIS P.

...

Keene

Kitchell

Durst

special

events

and

Serving In
UTAH

and

Dow-Jones M. Cry an & Co,

)

IDAHO
WYOMING

COLORADO

AREA

RESOURCES

A

GROWING

liuiiiimimiuiiuimiMH

COMPANY IN
A

GROWING

WEST

BOOKLET

on

request

P. O. Box 899, Dept. K, Soil Lake City

10, Utoh

.Volume 177

-

(2325)

in general and the banks in

ness

Urge Caution in Large Scale Federal
Refunding Operations

!

t

Number 5224... The Commercial and Financial Chronicle

particular

the money supply through its un¬
pact on the volume of reserve bal-

lins,

ances.

Director,

and

Dr.

Marcus

to

W

-

*

H

-k

hit

■

1

f

Jf

1

1

F

**

•v—A

\\
Collins

Rowland

Marcus Nadler

Nadler, Research Director, of the
Institute of International Finance
York University, largerefunding
of
excessively
large floating public debt at this
time through issuance of longof

New

scale

term bonds

with

higher rate of

a

interest

could

effect

the economy.

on

If

have

mishandled,

states, refunding
have
ness

for

permit

be

their

of

govern¬

could

interest

of

and

be

the

of

since

business

price

not

busi¬

on

increas¬

an

may prove

bank-held

debt,

activity

structure

with

and the
caught up

have

the

loss

of

the
latter would reduce their lending
and investing ability. Such a pol¬
icy is desirable during a period of
inflationary pressures caused in
part by a rapid expansion of bank
credit.
In periods when business
activity is on dead center, and
particularly when deflationary
by

reserves

forces appear on the

funding

sidered

These

satisfactory.

With regard to the effect of re¬

operations
on
interest
rates, the bulletin states: Taking

funding
into

account

may

be concluded that the rise in

interest

all

the

last

has

about

occurred

is a
movement

two

years

cyclical

temporary

large
amount
of
the floating debt
is
held by nonbank investors. There
a

danger

that

the Treasury will run into diffi¬
culties because
of
the frequent

will

also

largely

the
the

by

have

take

to

into

ac¬

industries.

In

part, it reflects also

the changed open market policies
of the Reserve authorities. If this

the

porations.

holdings

In

,

recent

the

years

of

Treasury bills, cer¬
tificates and notes, which since
1949 have made up about 15% of
total
deposits.
Excess
reserves,
-which before the war played a
large role in helping the large
banks meet their liquidity needs,
have dwindled.
Moreover, since
the adoption of the flexible open
market

policy,

these

method

former

risk-

replenishing re¬
the sale of gov¬

obligations

the

to

risky.

The banks have there¬

fore been forced to rely more on

discounting to meet their
requirements.
Other financial

the

notably

life

reserve

would not

be ad¬

visable.

Referring to the Treasury's re¬
refunding operations and the
issuance of $1,070 million of 3^4%
30-year bonds for the purpose of
raising new money, the Institute's
study
expresses
the
following
cent

Limited

though the experience
of the Treasury with the raising
of

new

and with refunding
provides certain les¬

money

has been, it

Briefly

sons.

summarized,

these

are:.,

But if the newly

of

the

been

short-term

held

government

securities

primarily for liquidity pur¬
it will lead to a widening in
yield spread between short-

poses,

the

term

and

long-term

couple

a

the

company sold $10 mil¬
term bonds, part of the

of

of

proceeds

which

were

utilized

short-term

bank

considered

that

requirement

loans.
with

It

was

this

war

business

buying

large

have

because

the

latter

rate

of return
to

a

long-term

on

rates

necessarily

new

general
but

issues this

increase
it

does

in

less

mar¬

Treasury obli¬
attractive to ulti¬

tional

investors.

This

in

turn

deficits

and

the

Reserve

author¬

ities follow a policy of credit re¬
more widely
No matter how attrac¬ straint, it will not be possible to
long-term rate of interest carry out successfully any large-

ketable and fluctuate
in

price.

tive

a

obligations.

at

dividend

cash

(it

decide

quarterly) but
to pay a stock

dividend of 10%.

did

$0.50

is, of course, subject to approval
by the Interstate Commerce Com¬
mission but no difficulty is ex¬
pected on this score. It was an¬
nounced: that
application would
be made promptly for Commission
authority to make the payment.
At

annual

the

meeting of

the

stockholders, which took place the
day as the directors' meet¬

White, President
of the road, struck a more opti¬
ing, Mr. Lynne
mistic
late

than

note

last

been taken

had

initial esti¬
results
were made. As quoted in the press
Mr. White had this to say for the
when

year

of

mates

probable

1953

in

business

third

quarter.

scale

recent

From

the

with

beginning

sur¬

perhaps this anticipated de¬
develop;

veys,

cline in business will not
in any

event, it seems reasonably

certain that it will not develop as

early

appeared likely some
He gave no direct

as

months

ago."

revised

estimate

of

possible 1953

be,

may

will

not

portion

curities.

holdings
If

a

large-scale

eration

reduced

refunding

the

volume

government obligations
the commercial banks,
also lead
ume

of

a

to

a

bank

held

it

op¬

by

It

tificates

thought

even

being

acquired

is

.lift

modest,

announced last week that di¬

was

rectors had approved

purchase of

27 additional units for

Peoria

division

use

sections of the line. It is
conceded

its

that

of

cause

the

Nickel

other

generally

Plate,

be¬

nature

of

much

and

the

lack

operations

serious

thf*

on

several

and

cS/t

c&

grade problems, will

make

substantial

as

nc&

savings

sm

other roads from dieseliza¬

tion.

Nevertheless, such operation®
improve the efficiency per¬
formance, and thus the earningjti
potential, in significant degree.

should

...

Max Jacquin, Jr., Pres..
Of Slanwood 01
Announcement

has

been

secu¬

that

/

made*

by the Stanwood Oil Corp. of the*
election
well

of

new

a

President

ae»

the appointment of a new
of
di¬

as

board

rectors.
Max

Jr.,

Jacquin,

member
the

of

York

New,

Stock

Exchange and
partner of the
member
of

firm

Jacquin

Stanley & Co.,
has

been

elected

Presi¬

dent.

Of

the

,

.

,

.

Max Jacquin. Jr.

fol-

market

by

offering

higher rates

the

grade bond market, as well as in¬

outstanding

creasing the debt burden, for the

cer¬

sake of

to eriaBle 'bu£i-

amount

raising
of

new

a

relatively small
money.-

,

lowing:
David
Reger, Morgantown, W. Va.; O. K. Tackle, Danbury, Conn.; Charles S. Greeny
New York City;
Clifford R. Jt
Smith, Toronto, Canada; and Me.
Jacquin.
The immediate objectives of

tins*

management will be the re--

new

lysts it now appears reasonable to
results at least modestly

ward

.

organization of the finances of tfct*

look for

the

of

ahead

$8.96

a

share

re¬

ported for 1952.
April

results

of

Nickel

Plate

particularly gratifying, fol¬
lowing
an
opening
quarter
in
which gross revenues just about
were

and the exploitation to¬

maximum

utilization

oil

properties
Pennsylvania.

in

of it»

northwestern

Two With H. A. Riecfee

This earlier show¬

tion with them of Ernest M. Der¬

the

performance

off somewhat.

of

a

ing had not been particularly sur¬

prising inasmuch as the company
has a fairly heavy stake in the
movement of bituminous coal and

the

that

was

had

suffered

alone

gross

than

more

month.

1952

one

commodity that

severely. For April
revenues

13%

from

Expenses

were

up

the

like

were

un¬

rigid control and net income
increased by nearly $70d,000,
der

reaching $1,732,000. This brought
income

for

the

months to $6,071,000,

full

four

equivalent to

to expect that
opening month of the
second half of 1953 will also show

seems

PHILADELPHIA, Pa.

rick

as

fice

Manager of their new of¬

in

John

—

Pa., and.
registered.

Wilkes-Barre,

D.

McGirk

as

a

representative in their Clearfield^
Pa., office.

Hemphill Noyes Adds
(Special

LOS

improvement. From
point of view,
analysts and close followers of the
situation see considerable promise
significant

longer-term

*

to The Financial Chronicle)

ANGELES,

E. Gillette has

Calif.—Frank

joined the staff of

Hemphill, Noyes & Co., 510 Wesfc
Sixth
with

He

Street.

was

previously

Dempsey-Tegeler & Co. and

G. Brashears & Co.

Specialist$ in

Guaranteed
Railroad
Securities

reasonable

at least the

the

-

earlier and net income was

matched
year

net

company

H. A.
Riecke & Co., Inc., members g£
the Philadelphia-Baltimore Stock
Exchange, announce the associa¬

time

and thus disrupt the entire, high-

in order

freight service

of tb*»

short-term

long-term

large volume; of bills and

deposits.




their

Treasury must leave

decline in the vol¬
re-

corporation

substantial part

is therefore evident

a

The

of

into

a

rities.

of

could

business

invest

.Is*

company

earnings but to most railroad ana¬

funding operations. For the
$2.88 a share. For the four months
being, therefore, the Treas¬
through April, 1952, per share
of
its working capital in long- ury may be forced to adopt a pol¬
bidders for bills, certificates, and
earnings on the common stock
term government obligations. This icy of offering short-term gov¬
other
amounted to $2.68.
obligations
coming
due
was proved
during the February, ernment obligations, which are in
within a year.
Since the supply
In his talk to stockholders at
considerable demand by corpora¬
only 7%
would be reduced, this demand 1953, refunding, when
the
annual
meeting Mr. White
of maturing certificates totaling tions.
could lead
to
a
decline in the
stated that the management ex¬
$8.9 billion were exchanged for
(5)
Finally, so long
as
the
yield of short-term obligations.
new bonds.
On the other hand, a present tight money and capital pected that May and June also
On the other hand, the increased
would be somewhat better than
relatively high coupon rate on market conditions exist, it is ques¬
supply of medium- and long-term
long-term obligations will induce tionable whether it is advisable last year. Considering that the
obligations might lead to an in¬
steel strike was still going on dur¬
institutional investors to convert
crease in the return on those
se¬
for the Treasury to follow the
a
ing most of July last year it
Banks and other institutions need¬

ing liquidity would continue to be

the

the pace at which this new powear
is

The distribution

they

not

make

amounts

are

left

was

that

The
new
When the Treasury com¬ road's
prospects: "When we made
aggressively with private our 1953 estimate before the turn board of di¬
borrowers by offering
a
higher of the
rectors consists
year, we anticipated a drop

com¬

firms

increase the

road

cash

of and the

fact

in for dieselization

many

disposed

working capital position bolstered
the company would be in a po¬
sition
to
pass
along
to stock¬

to

the

(1)

of further impairs the stability and
obligations are of short
obligations,
the marketability of government ob¬
maturity this rate will be paid government
only for a relatively short period. greater portion of which consists ligations, rendering them less at¬
On the other hand, it must be of Treasury bills and certificates. tractive to these investors.
The
short-term
obligations are
kept in mind that constant re¬
(3) Under such circumstances
held
by corporations
partly to even
funding operations may interfere
a
minor
spread
between
with the credit policies of the Re¬ meet their current cash require¬
government and high-grade cor¬
ments and partly to accumulate
serve authorities.
porate
obligations
of
approxi¬
funds to pay taxes on the quar¬
In discussing the possible im¬
mately the same maturity may in¬
terly payment dates.
It may be
duce
institutional
investors
to
pact of refunding on the money
assumed that the short-term gov¬
and
favor the latter.
capital
markets, the New
ernment securities held by busi¬
York
University
study
asserts
(4) So long as the Treasury is
ness
concerns
as
part
of their
that if refunding results in a ma¬
working capital will not be con¬ confronted with the task of rais¬
terial reduction in the supply of
verted into long-term obligations ing new money to meet current
issued

lion

given a sharp
of months ago

were

in

going

petes

gations more
obligations are held primar¬
panies, have also acquired large mate investors.
In
order to be
ily for liquidity purposes or for
amounts
of
short-term
govern¬
successful
the
Treasury
would
making quarterly tax payments,
ment obligations in recent years.
have to follow the market upward
or in anticipation of higher rates
The purpose of this policy was
and pay increasingly higher rates
of interest on long-term obliga¬
primarily to have liquid assets of
interest on its medium- and
tions, they can always be re¬
readily convertible into cash and
placed by other short-term secu¬
long-term obligations.
thus enable the insurance com¬
rities at the prevailing interest
(2) Such a policy leads to a de¬
panies to meet their heavy com¬
rate.
cline
in
prices of outstanding
mitments in mortgages and loans
It
is true that
with a large to
long-term
government
obliga¬
industry.
tions and to considerable depre¬
floating
debt
the
Treasury
at
Similarly, since the beginning ciation in the portfolios of institu¬
times may have to pay a high
rate of interest.

boost
when

same

views:

leads

institutions, and
insurance

mediate future

Re¬

Banks has become uncertain

serve

and

the

of

through

serves

need of

refinancing large amounts
maturing obligations.
Since

hopes

circumstances, it for
payment of the balance of the

that

rates

during

horizon, such brought

program, the
Institute's
points out, the Treasury

bulletin

ernment

that

New York, Chicago & St. Louis

policy is not desirable. Accord¬ aftermath of the Korean war,
ing to the authors, this seems to spending of billions of dollars on
holders a larger share of the good
be the situation at present.
rearmament, and the expansion of
earnings.
At their meeting last
and
In formulating a long-range re¬ defense
defense-supporting week the directors did not vote

noted,

little

weeks.

a

less

therefore,

of

operations of the
Treasury should be concentrated

At
replacing
the
maturing or
long last, stockholders of
holdings to mature without
renewing them this would result callable long-term securities, as it New York, Chicago & St. Louis
in a reduction in reserve
may
be
presumed
that
these (Nickel Plate) are to be rewarded
balances,
since the Treasury would have to bonds, originally bought as long- for their patience." Ever since the
maturities,
will
be
ex¬ middle of last year the financial
replenish its balances with the term
Reserve Banks by transferring to changed by their owners for sim¬ community
has
been
expecting
them balances from the member ilar or longer maturities, partic¬ each
quarter that the dividend
banks.
ularly if the coupon rate is con¬ policies
would
be
liberalized.

supply of deposits cre¬
ated during the war.
It must be
moreover,

period

a

refunding

liquidity requirements analysis is correct, it would in¬
of
commercial
banks, insurance dicate that adoption of a longonly companies,
range refunding policy in the im¬
and
industrial
cor¬

unwarranted.

volume

The

over

bulletin

Lengthening
of maturities of outstanding Fed¬
eral obligations does not appear
to be a pressing problem. There
is no special urgency to reduce

of

part

were

of this need
the offering,

April, of an addi¬
billion in bills for new

$1

money

from

li¬

in

announced

tional

aware

seen

their

That the

on

count

the

ing debt burden which

is,

affect

activity but saddle the nation banks have satisfied their
liquid¬
years
to come with higher ity requirements
mainly through

rates

to

adverse

an

detrimental effect

a

also

If the Reserve Banks

The

'

v

G.

could

ment

■■

\i

policy

is

Treasury
may

According to a bulletin entitled
"Refunding
the
Public
Debt,"
issued by Dean G. Rowland Col-

funding

maintain

to

quidity requirements.

IK(»

fcBAlANTIEP

YVPt 1 * *1 •

mmi W0CO-M1M

25 Broad Street

New York 4,

Telephone BOwlinf Green
Members Nat'l Assn.

N.Y.

9-6400

Securities Dealer®. Ine.

-

The Commercial and Financial Chronicle... Thursday,

26

Magnavox President Says No Color TV
For at Least Two Years; Sees Cost $1,

Rose O'Neill Pres.

Of
Rose

O'Neill,

registered

fice of

repre¬

Paine, Webber, Jackson &
Sorop-

has

York,
been

Miss

an¬

serve

two

Stock

York

Exchange reg¬
istered

repre¬

t

sentative

the

far

O'Neill

Rose

of President of

The

service club.

Soroptomist Club of New York is
a member of the Soroptimists In¬
ternational.
Membership in the
Soroptimists is by invitation and
one representative of each

only

professional field is eligible at
any given time.
The New York
club meets twice a month and is
of Girl's Town on Wel¬
Island;
Second
Horizons,
which is devoted to caring for
sponsor

fare

elderly women, and the New York
Women's Infirmary.

Lodwigsen to Enter
Lutheran Ministry
Clarence William Ludwigsen, of

Beechhurst, L. I., N. Y., Manager
of the Investment Advisory De¬

partment of Granger & Co., Ill
Broadway, New York City, and
who is also a Registered Repre¬
of the New York Stock

sentative

Exchange and member of the New
York Society of Security Analysts,
has severed all his

business

con¬

nections to enter into the ministry

Church-Missouri

of the Lutheran

Synod.
his

Besides

Lutheran

Home
also

on

Church

Samaritan

the

at

Welfare Island

other

served

City

and

churches

Mr.

Pastor

John

of

Evangelical

Church

of

College

the

St.

Lutheran

Point

while

preparing for his ordination.

only minor importance.
While no attempt is

A

3V2%

come

also looked for by

*

to be

corporate

showing

obligation, which was

Rates

on

where

of the

some

they

been some

are

bond

of

the

money

the

.

market

recently floated issues have reached levels

attractive to buyers,

and

even

though there has

of these securities have

been

cleaned

out, they have nevertheless eventually gone rather well.
The spread between the highest-grade corporate issues which have
into the market and the

new

Treasury 3y4%

obligation has

points yield which has been considered
about the desirable differential by many bond
buyers. It is be¬

8c Co.
INCORPORATED

15 BROAD

b

.

ST., NEW YORK I

WHitehaU 3-1200

Marsh

Three With Slayton & Co.

Planning & Inv.

WASHINGTON, D. C. —Marsh
Planning & Investment Company

131 So. La Salle St

45 Milk St

has

CHICAGO 4

BOSTON f

1832

M

ST 2-9400

HA 6-6463

in

securities




engi¬

The industry

ing experimental
receivers
for

to

still

is

test¬

color television

develop

standard

a

transmitters/and

receivers

V.

that will be dependable.

will

these

tests,

Communications

Federal

the

be

petitioned to

standards-

the,

as

'•

<

.

'•

U

■

.

*

'

'

v

■

'

' '

•

'

'

•"

'

r

bank¬

(

•

Ala.; Carrollton, Moultrie,

cauga,

in

of

19

and

states

in

the

group:

Shields

at

Corporation;

Goldman, Sachs & Co.; Harriman
Ripley & Co. Incorporated; Smith,
Barney & Co.; and R. W. Pressprich & Co.
r

and accrued interest and

104%

thereafter at

Company;

&

Boston

First

callable 10 years from their dates

Each
cured

of

decreasing call prices.

the

issues

will

be

se¬

first pledge of annual
contributions unconditionally pay¬
able

by

a

under

an

Annual

Contribu¬

tions Contract between the Public

Housing
Administration
(PHA)
coupon and the Local Public Agency issu¬
and 3% for ing the bonds. The contributions,
the bonds.
together with other funds of the
The bonds are being reoffered
Local Public Agency available for
to
the public in
four separate such purpose, will be sufficient
yield groups—scales A, B, C, D— to pay principal and interest on
at prices to yield from 1.40% to
the bonds. The faith of the United
3%, according to maturity.
States is solemnly pledged by the
Scale A, ranging in yields from United States
Housing Act of 1937,
1.40% to 2.85%, applies to housing as
amended, to the payment of
agencies in Greenwich, Norwalk such annual contributions by the
and Waterbury, Conn.; BinghamPublic
Housing
Administration,
ton and Plattsburgh, N. Y.; Easton,
according to an opinion of At¬
The

rates

group

specified

of 2%%, 27/q%

County and Mont¬ torney General Herbert Brown ell
Jr., to President Eisenhower. At¬
in yields from torney General Brownell stated
1.40% to 2.90%, covers bonds of in the
opinion that he is of the
lieved this spread will not narrow much as long" as the money
the
following housing agencies: view that a contract to pay an¬
markets are under pressure.
Denver, Colo.; Rock Island, 111.; nual contributions entered into by
Lawrence,
Lowell, -Maiden and the PHA in conformance with the
Medford, Mass., and'Dover. N. H. provisions of the United States
Merit Co. Formed
Wells & Stanton Branch
Scale C,. ranging -in yields from
Housing Act of 1937, as amended,
PHILLIPSBURG, N. J. — The
LUBBOCK, Tex. — Wells & 1.45% to 3%, re&i'es' to bonds of "is valid and binding upon the
Merit Company has been formed
following housing agencies: United States, and that the faith
Stanton
of
New
Orleans
have the
with
offices
at
90
South
Main
County; Cal.; Pueblo, of the United States has been
opened a branch office at 1517 Monterey
Street to engage in the securities
Texas Avenue under the direc¬ Colo.; Tampa, Fla.; Savannah, Ga.; solemnly pledged to the payment
business.
Thomas
Lynch
is
a
Gary, Ind.; Covington, Hopkins- of such contributions in the same
tion of Fred L. Parham.
principal of the firm.
ville, Owensboromid Richmond, terms its faith has been pledged
come

about reached the 50-basis

Aubrey G. Lanbtow

of

including out own, have
working on color for several

been

broadcasts will be legal, duly authorized color broad¬
for a long time be¬ casting system."

' '

group

The

signs of stabilization, although it may
to indicate this may be the case for sure.

hesitation before certain

a

Armed

"(4) Color

located

hit higher

sector

"hundreds

:

"At the conclusion of these

Capital of Puerto Rico. The fol¬
lowing firms also are managers of

to be considerable opinion

some

bit premature yet

a

said

the

for

elec¬

of

manufacturer
devices

in¬
is

approximately 200 Thomasville and Valdosta, Ga.;
members headed by Phelps, Fenn Capital of Puerto Rico; Gaffney,
&
Co.,
Lehman
Brothers
and S. C.; Lebanon, Tenn.; Browns¬
Blyth & Co., Inc. was the high ville, McAllen and Paris, Texas. ;
Interest on the bonds is exempt,
bidder on May 26 for all of the
in the opinion of counsel, from
$122,515,000 New Housing Author¬
ity Bonds, due serially 1954-1983, all Federal income taxes.
sold by 46 local housing agencies
The bonds of each issue are

Corporate Bond Market Stable

be

whose firm

loudspeaker and

neers,

A

A nationwide investment

,

seems

the

approve

ing

the

issue

Freimann,

Commission

i

maturity in it. If there should be an attempt to extend
maturity, then a longer-term bond would have to have a
higher rate than 3V4% in order to attract any important amount

new

miracles because
have
been

models

Obligations being placed by nationwide investment banking
group headed by Phelps, Fenn & Co., Lehman Brothers and
Blyth & Co., Inc.

one-year

The

expect

'

levels in the fall
refunding.
They point out that the demand for loans will be
stronger at that time and the Treasury will have to compete with

a

least three
present-day

problem. It
sud¬

to

$122,515,000 New Housing Bonds Marketed

Higher Short Rates Expected

this need for money. Accordingly, this will mean higher rates for
the near-term part of the operation which will most certainly have

at
as

\

infrequent

these followers of the money markets, believing

that the certificate rate will

TV receivers

"(3) Color pictures on these re¬
inches in

about.

around

Mr.

Forces,

prices

•:

color televi¬

the

of

production

laboratory

vented

high

on

demonstrated."

ceivers will be about 12

has to be put on all sectors of the market in order
out what the powers that be are attempting to bring

one-year

as

cannot be legis¬

.

unrealistic

too

size.

by this group in the latter part of

seems

is

exist¬

black and white sets.

pressure

carry

with

.

government edict.

or

complexities
den

at least two years away.

times

.

being by either wishful

progress

years.

being made by

bond is expected

U. S. TREASURY

SECURITIES

rauuuo*i

"(2) Color receivers will be an
extreme luxury for a long time to

maturing issues, according to those that are looking for
higher rates in future Treasury operations.

MUNICIPAL

r raiiK r

and

"(1) Commercial

1953, which may or may not be the peak of the Treasury's effort
to combat the forces of inflation.
Higher short-term rates are

of

and

"The

stands today:

are

day

sion has been slow because of the

pool," he listed these
points as "essential to a clear un¬ leading
tronics
derstanding of where color TV

this group to pick a
specific price level to which prices might go in case there should
be a further upping of interest rates, they seem to have rather
definite ranges in mind, that they look upon as the area in which
buying should be forthcoming. For the first time in a long period,
it seems as though certain prospective buyers are getting some
fairly definite ideas as to the areas in which acquisitions might
be made in the outstanding marketable long-term Treasury issues.
On the other hand, there are those who do not believe that
prices of Treasury obligations have entered an area of stabilization
yet, and it will be some time, according to them, before this will
be.the case, because they are looking for higher levels of interest
rates. While they believe it is possible for quotations to move in
a narrow range for a while, they are looking for continued pres¬
sure
on
the money markets with no let-up in the restrictive
policies of the monetary authorities. They hold to the opinion that
future refundings and new money raising operations of the Treas¬
ury will bring with them higher long-term interest rates.

the

STATE

thinking

a

ing patent

the longer-term

.used in the June operation, there
Dick

lated into

ing color receivers under an

moment to liquidate
Treasury obligations from some quarters, because
the opinion seems to be strong that prices of these securities are
close to, if not already at, levels that do not warrant, further sale
of these issues. While conceding that some additional firming of
interest rates could take place, students of the money market are
not looking for any really great changes from here on.
There¬
fore, they do not consider it advisable to dispose of bonds which
could turn about in price after an adjustment which could be of
be less of a desire at the

Despite the 2%% rate for the

Herbert

Point?

Long Bonds at Low
There appears to

on

Ludwigsen will be assisting

immediate future.

complicated
sets," he

more

present

engineering

leading manu¬
facturer
of

market.

has

Long Island.

Company,

times
the

said, "invention, development and

,

The Magnavox

stabilization with minor price fluctua¬
would not be unlikely, according to some followers of the

money

to

Good

m a n n

President of

radio-phonograph sets.
Pointing out that "no one who
has the technical organization and
facilities will be deprived of mak¬

that

the

i

r e

color¬

including

now."

than

by Frank

F

They will receive

broadcasts,

many

made here to¬

day

fore¬

the

in

value

Pointing out that "Color TV is

.

tions,

Pastor

of

was

television

busy

Ludwigsen

all

state-

t

in

to come and
obsolete or de¬

years

many

casts, in black and white—as they
do

That

for

preciated

However, a period of some

business life,
from his early
youth, has always found time to
do church work. During the past
five
years,
he has been acting
Mr.

policy looked for in the

"(5), The present-day receivers
continue to be the standard

will

seeable future.

market."

as

change in the restricted

profes¬

sional women's

the audience small.

will not be made

m e n

and

the cost will be greater

cause

sets

probably will
priced over
when
they reach tne

Opinions still appear to be pretty much as they have been as
the government market is concerned, with no important

hold the office

at least two years away—

be

bills.

o

are

$1,000

of the high yield
payment of $898
million in the June refunding was not unexpected because of the
tight money conditions. However, the $800 million of tax antici¬
pation bills due Sept. 18 to take care of the heavy drain on the
Treasury's cash incident to the latest refunding was something of
a surprise.
A sizable demand has been reported for 107-day tax

New

right to know

a

and that these

ability and stability purposes, but also because
is available in these securities.
The cash

is

years,

first

has

receivers

that

for the next

the

use

again to new lows on practically no activity. The additional offer¬
ing of Treasury bills appears to be well taken, because more funds
are moving into the near-term sector, not only because of market¬

O'Neill,

public

that color television sets for home

certificate with the 2%% rate, which was used
maturities, seems to have had quite an effect

The one-year

to refund the June

the government market. The initial influence was a dropping
quotations, but since no important amount of securities came in
for sales, quotations were moved back up only to settle down

President

a s

ican

of

it

nounced.

who will

CHICAGO, May 25—"The Amer¬

CHIPPENDALE, JR.

upon

timist Club of
New

By JOHN T.

Avenue of¬

Curtis, has been elected President
of the

Reporter on Governments

Our

Soroptimists

sentative in the Fifth

a

May 28, 1953

(2326)

been

a

Van

formed

with

offices

Street, N. W., to
business.

Valkenburgh

of the firm.

is

a

at

engage

Willard

principal

(Special

to The Financial Chronicle)

Lycoming

gomery County, Fa:
Scale B, ranging

Ky.;

Cumberland,

dence and

tanooga,

Md.;

Provi¬

WoonsQ£ket, R.I.; Chat¬

Tenn.; ^ort
and Waco,

Worth, San

Texas; and
F. Antonio
and Bristol, Va.
Scale D, ranging in yields from
Helen R. Payne have joined the
1.50%
to
3%, covers bonds- of
staff of Slayton & Co., Inc., 408
housing agencies lncated in AnnisST.

Drain,

Olive

LOUIS,

Mo.

Pauline

Street.

J.

—

George

to

Decatur,

Opelika and Syla-

payment

of

its

interest-

Charles R. Morgan Opens

LaDu,

ton,

the

bearing obligations."

KNOXVILLE,

Tenn.

—

Charles

Morgan has opened offices in
the Mercantile Building to engage
R.

in

a

securities business.

Number 5224... The Commercial and Financial Chronicle

Volume 177

price

Comparative Stock Exchange Trading Records
For the first

had

history, the Toronto Stock Exchange in
1952 led all North American exchanges in volume of share trading,
transactions involving 599,954,211 shares, an increase of 48,000,000
shares, or nearly 7% over 1951. In all previous years the New
York Stock Exchange headed the list. In point of dollar values
the standing was third, being exceeded only by the New York
Stock Exchange and the American Stock Exchange, thus maintain¬
ing the dollar value position held each year since 1942.
Trading records for 1952 of stock exchange on the North
American continent showing the dollar values and number of
shares (including rights and warrants) are tabulated below. Fig¬
ures covering United States
exchanges are faken from the Statis¬
tical Bulletin of

the Securities and

STOCK EXCHANGE
Stock

1.

New York Stock Exchange

2.
3.

American Stock Exchange
Toronto Stock Exchange

4.

Montreal

;
1

•

5.

6.

San

7.

•

Boston

•

Francisco

Stock

Exchange-_

Stock

8.
•

Exchange
Los Angeles Stock Exchange

9.,

-

Phila.-Balt.

Stock

193,777,539
181,096,434
166,310,137
75,024,952

Exchange

10.

Detroit Stock

:11.

Calgary Stock Exchange
Vancouver Stock Exchange

52,114,522
25,824,745

16.

Pittsburgh Stock Exchange
Cincinnati Stock Exchange______
Washington Stock Exchange—__
Salt Lake Stock Exchange

17.

New Orleans Stock Exchange

1,779,588

18.

1,127,365

.12.
13.

14.

,15.

Exchange

19.

Richmond

21.

Wheeling

22.

559,405

488,731
452,263

(i.e., correcting for
price changes), (4) private consumption in real terms,
vate
capital formation

(5)

pri-

in

real

terms, and finally (6) the ratio of
public debt to national income,
™riT*r "v7j
What
could

T
be
expected
with
respect to each of these items by

'"g

m

.U

,

as

peopfe

mately

as

The first thing

•

Here
This

Record

income

curves

Anyone

a

spurt
n

.

-

are

is

the

what

ap~

(1) Prices. Wholesale

prices rose

/nn

•

urt-

i

i

(the

bv iust

In the meantime

o?r?and

lO%

innrpacpc

in

such increases m

n.i+nnt

output

throwsPlight
^asQels'_x?1„°Lyht]?tSic!l
creases?

History

on

rec

per

Federal

5V2%

per

(3)

index

Reserve

or

or

(in

real

rlv PrS

terms')

ner

—

counteracting

because

problems

when

Who had the personality and the
ability to get away with it. In this

instance he actually walked out
Df that office with an order for
$50,000 worth of railroad bonds
and the renewed good-will of this
man who couldn't help but go
along with a fellow who had the
ability to get away with such an

approach. This was stunt selling
—but it was different. The point

is that resourceful salesmen who
don't quite come up with new ideas

and
there
going just

the

are

gets

—new ways

business waiting for any one who
can

sit down with

Sometimes there is little you can

wear

false whiskers either to do it.

about these periods except to

wade through them and wait them

Maurice Moes to Join
Merrill Lynch Staff

That is the time to try a new

That is the time to

approach.

work out a new advertising camhap- paign, or find a new type of se-

curity
special situation. Then
to work,

fu„D0rte7blwmLber?f Con-*'
|"2^rom
_

' it

,

„

.

himself, analyze

rough. Markets and investor con- his problems and then use his
fidence have much to do with the head so that he can get out and
way business booms or slumps, get it.
And you don't have to

factors

happened before, and it may,

am

b0th sides of the aisle,

cape

come

Maurice

N.

Moes

Maurice Moes, now associated
profitable motivations that with Erdman & Co., New York
from sources that are sound- City, will become associated with

ly conceived and inspired in the the 38th Street office of Merrill
intensity of conviction. Haven't Lynch, Pierce, Fenner & Beane,
sh ould keep taxds you often seen the change that members of the New York Stock
through the rest comes over a-room full of sales- Exchange, as of June 1.

the time being (that is, for the
0f 1953) a policy of "wait and
wise We

fh|y

are

wnwe_mey

°ro1"cTer

B

g

men

when ou1i of the clear blue sky

in defense some one comes up with a good
jjrtflew of the pla- idea or suggestion. I've watched
is already in sight, the the atmosphere change almost inreductions beginning stantaneously from one of indif-

reductions

P^|"and
?ea"^ich
d t

the

;nrome taxes

tax'

P^n-of

toward

The

the released that a particularly at- t
profits tax, tractive new offering of securities first

all scheduled for January, 1954- has been made that appears to
are 1 believe sound policy. It IS have a very intense public acsound, however, only on the as- ceptance
There is no greater
sumption that the economic at- stimulant to sales than the hope
mospheric pressures point slightly of a profit. Profit for the selling
mQre

Hold

ference to announcement has been
almost feverish activity,
when an

and

increases,

the excess

New York

deflation

than

to-

organization and the customer as

Analysts to

Outing June 12
Society

York

New

Se-^

of

,

'spring

festival at the Sleepy

Hollow Country Club, Scarborough-on-Hudson, New York,
on june i2th. Tickets are $12.50
and reservations should be mailed
to Sturgis Macomber c/o Reynolds
&

Co

12q

Broadway, New York

in this case enthusiasm city, by June 8th (price of tickets
be the case- and 1 therefore wel- generates enthusiasm and the net thereafter is $14.00).
come the Eisenhower tax ' pro- result is an avalanche of business.
Scheduled for the day are g0,f
P°sats<
Many years ago a good frien (greens fees $4.00); a kicker's
This I believe to well

ward

—

_

mine
Farentneticany, 11 may ae aw"™ of nnnec-Pl 11 turned duvci^ into a tournament will be held, entrance
01 iiuue tunicu adversity
« tournament will be held, entrance
ivA/iAvinici-Qwf
col
cl
CnPAT

Parenthetically, it may be added
A.

J J

* i.

L/v

in

D

011

TnA

Til

#»

a ^

aa

1-1

1

o

-

.

•

_

A

rose

ince

in

70

Have the price increases
been abnormally large

194g

to^output increases?

relation

They have not.-Fred Mills ("Price-

repeat another episode such as the He had a very good client wno at $2.50 per hour. A softball game
recent 3J/4% bond issue. An in- had made several substantial pur- js a]s0 pianned prizes for which
crease
may have ---— of securities from him at
chases
m be awarded at dinner for
•
•
1—i-i— little effect in checking a strong prices that were far ^bove the winnjng teams.
WE MAINTAIN ACTIVE MARKETS IN

output, prices increased

(6) In 1948, the public debt was
very nearly equal
to the Gross
National Product (98%). By 1953,
the debt had fallen to 75% of the.
GNP.
Now it is, of course, true

increase in

that debt tends to fall in relation

The fact is

that^price increases in '

to income if

relation

output increases have

us

are

rising.

Let

therefore consider the GNP in

real

terms*

value
ratio

In

dollars
of

debt

(1952

of

prices)

GNP

to

constant

the

declined

in 1948 to 75% in 1953.

from 88%

However

terms

you

rially

less

0.8%.

than

it

was




in

for

1948

every

.

to

extraordinarily small since

1943

judged

ground of

Against

the

back-

nearfi acentury ofex-

perience with the free price systern

;

Uary

increases

are

nec-

.

^

,

,

,r

the rate of interest may signal the of^ce.^agam. One
morning

turning of the tide,

prices have increased only 0.2%, '
and consumer prices only 0.4%.

been
s

sinc£

But

1.0% increase ihFoutput, wholesale

look at it, whether

lhemburdyeneoTSth0e debtt maTe-

_

marked

that

creases.

(in

5^te™sannum. 12%> or about
rose
z72
per

prices

•

increases in that it would be inconsistent in successful sale just by the sheer free $1.00. Fee for tennis courts is
output are usually associated with view of the projected tax reduc- magic of his ingenuity and his $2.00, and for the pool $1.80.
somewhat comparable price in- tions beginning June 1, 1954, to sense of timing and salesmanship. Horseback riding is also available

annum

consumption

X

and what every businessJ
knows from practical experi-

,

man

ence)

around 5%

common

sense

of

"about

annum.

GNP

23%

^ ^ow °(wh?is?My

prices rose 10.3%, or
annum.

DrodUfioner?oseR<26%"

high

new

a

sonal

chart, do

?e25*esaIndief ^January.j954-the individual
viTbd elotn
postponement of

Price Increases Moderate

Are

on

consumer

2.3%

on a

hold the economy steady for
considerable period. That has

a

*

py over zo/<?, and

figure.

same

Arp

•

fp°m 1948 t0 M*y average;
per annum
the 1953' or

L2%

this for himself

can prove

*

not recommending this
technique to anyone except a natural born actor such as this man,
i

out.
But there is one thing you don t
do if you are in the selling business when these quiet periods
is not.
Running on a plateau we come along. You don't fold up¬
do not need to add to inventory or go back to the same old way
stocks, and we do not; need to ex- of doing things
or go to the ball
pand
plant and equipment
as game. You don't do these things
rapidly as in a rising market. A unless you want to encourage
plateau has a way of turning into more
dull business and more
a decline. ', It does not always do
slumps in sales and morale,
so

respectlvely'

han

y

nened

output and

may

resnectivelv

answers

has

increased

7creSed

1948

factual

p,,

"

Radio at 111."

plataau. Now business-cycle history teaches us that plateaus are
precarious. An upward movement
is self-reinforcing. But a plateau

the GNP in real terms by nearly
the

actuaUv

need to

we

ffeures

m prices

crisis

.

J

of doing things, and
streaks and hitting slumps. They that is why they are at the top of
have morale problems and per- their profession. There is always
times

flattening out.

are

by plotttag the
We
are
reaching

prices

events have

Since

that

note is that the rising

action came quickly. Wholesale

ques-

id fact turned out?

The

slumD <

Sal„

*

aid

Present Plateau

of

Beware

—

lowing the K o re a

at

favorable

foreign

policies approprithis political decision?

ate to

for n>ne months immediately fol-

af figures e^eTapprox? * seen,
iigures even approxias

and

defense

about economic

have been falling now for
to imagine that there
might well more than two years A truer pichave
been
a
large measure of ture can be obtained by taking a
agreement on highly pessimistic look at the whole period from 1948
cOnclusions.
Is there any likely to the present. In this period, inarrived
arrived

whpn
mi_

There are times when the gooutlays as outlined by President in§
a bit difficult. Sales orEisenhower
If this be accepted ganizations
are
like
baseball
as
a
datum, what can one say teams.
They go into winning

militarv

130,931

There was indeed

however, not difficult

is

That s a ±act-

litical forces dictate reductions in

^

•

these;

It

my purposes

That's one of the nice things about
the securities business—as well as
one of its Problems. This business
won,t let y°u stagnate. If you do
^ won't be in it very long,

issues. I shall assume that the po-

,.t0,have answered economists panic buying episode) but the re- :S> j*
know how

tions.

,

,

despite the large increase in milia^in. Nevertheless" wd need
or a
tary expenditures.
to
wary of a plateau.
(
.
_go
Illusions die hard. We are told
" Present Tax Policy Sound
Ideas Are Dollars in the Bank
again and again that we have been
Under these circumstances I beThe human mind is so suscepliving in a period of pronounced
lieve
the
Eisenhower tax
pro- tible to the power of suggestion
inflation
during
the
last
five
;nrxxauvi.
yxWxxix5
pxxC
iaai
uvc
,
are
SOUnd and should be that it is almost impossible to esyears.
This is just not correct.

would.be extremely interest-

would

But for

here I shall stick to the economic

-

II
It

candid and

page

real terms

as

cal issue deserves the

National Security, Stability,
And Economic Solvency
in

just

are

The politi-

Including rights and warrants.

from first

facts

pro-

careful consideration of the Amer-

16,466
5,119,416

72,664

Stock

political

defense

economic facts

831,208
1,776,842
11,278

964,068

Stock

Exchange
Exchange
Mining Exchange
Colorado Stock Exchange*.

Continued

But

real

244,460
21,884,685
54,026

2,762,346

San Francisco

*

•

1,147,945
632,299

21,435,802
5,275,011

Winnipeg Stock Exchange—
Spokane Stock Exchange

20.

23.

have to come up with something
new when you are selling securgram can therefore not be justi- ities, too.
It is almost the same
fied on economic grounds. This is thing as writing a column. If you
a politicial issue, not an economic
want to keep your own interest
issue.
alive you've got to be resourceful,
the

of

reduction

A

107,964,051
36,219,714

40,206,591

x

strong; arid it is securely solvent,

95,859,192
17,781,765
18,321,494
5,321,492
9,888,782
5,979,874
4,002,403

463,812,142
201,829,339

.

.

T

capital formation have not
Sometimes when I sit down at know you, what did you say was
sharply cut back.
Instead the typewriter to set up another your name?" My friend replied,
they have shown a healthy week's column I come back to the meanwhile taking off the hat, wig
growth. The burden of the debt same old problem —what can we and whiskers, "I am that blankhas
declined.
The
economy
is tell them this week? You always ety-blank so-and-so that sold you

ican

593,572,963

By JOHN DUTTON
,

been

521,562,723
117,803,883
599,954,211

1,109,716,542

Securities Salesman's Corner

increased defense pro¬

vate

Stock

Exchange and
Canadian Stock Exchange
Mid-West Stock Exchange

in¬

moder¬

gram in its stride? Private con¬
sumption (in real terms) and pri-

* Shares

$14,761,931,376
1,285,366,861

have

price

have In fact been

taken the

TRADING —1952

Values

The

as

tory

Commission, while
from their official records.

Exchange

should

we

output.

comparison with past his¬
shows.
The economy has

ate,

Exchange

the figures from Canadian exchanges are

increases
less

creases

time in

27

(2327)

maker

whiskers

of

Arlrlc

T

"

an

•

-

sent

,„r,nv

jsiny^Saturday
to the wig

out

obtained
and

a

false

shaggy

a

set
gray

wig and he disguised himself like

J OWnsend, Uabney Adds
—

he

and

c

.

rt

t onirrtt

Tr

Mass.
iq

—

Joseph

- •

hie

,

an

,

ENGLISH OIL
Information

on

request

F. '"8

now

the New York and Boston Stock

when output is rapidly exV Exchanges. He was
1948 panding. HaJ .we prevented all with Burgess Sc Leith.

UTANA BASINS OIL

elderly beggar. Taking a walk-

sfick in his hand and putting
connected
? wlg, ,andu whiskers under his
Lockett' Jr' 's
connec'ed raincoat he headed for his ex-cuswlth Townsend, Dabney & Ty- tomer s office. The disguise was
son, 30 State Street, members of so effective he was ushered into
BOSTON,

UTE ROYALTY CORP.

previously

{wl^as a?olT friend?/wl

X? 7he c^ent

looked closely

at him and said, "I don t think I

W. D. Nebeker & Co,
Members N.
PAC.

NAT'L

A. S. D.

LIFE

SALT LAKE CITY

BLDG.

10, UTAH

Phone 9-3783

28

the chances of

a

tion of

Money Rates in U. S. and Britain

ling.

of ster¬

are

since

repatriation of American funds from London

cause

money

U. S.

a

tt^xt

mu

LONDON, Eng.—The hardening
•of the trend of money rates in the

United States is causing some con¬
in

cern

London.

Although

this

i

j

were

proceeding for

trend

on

time

Offer

it

i

r*

*

It would Electric
bonds,
est,

produce a rising
the Stock Exchange.

was

this

achieve

the

side

of

the dollar. The
both

of

dian
Einzis

dollar

,

lowering of

interest

would

rates

deficit

reduce the budgetary
reducing expenditure.

Sterling

and the CanaDr•Paul

trying to
through
It is argued

of

while the tax concessions
to increase the budgetary
deficit by reducing revenue,
a
that
tend

by

Now that
the immediate danger of a crisis

in

terms of U. S.

through

dollars is gen-

gold reserve has passed the Government is pressed to relieve in-

efcally attributed to the repatriation of American funds. This again
ls

regarded

the

as

consequence

a

The

actual

extent

of
so

But

recent remark

a

burden

far.

of the

the

den

the

change has been moderate

of

exhaustion

dustry and agriculture of the bur¬
of high interest rates. That

of

higher rates obtainable in New

York.

the

;

accepted

was

as

a

neces-

part of the defense of sterling.
With the improvement of
sary

the balance of payments

Sec-

retary of the United States Treassiry that interest rates had been
.•artificially manipulated during

expected to mitigate

the past 20 years and that what is

position
widely

the bank rate,

needed

is

now

termined

"courageous,

corrective

the

action"

impression

the

through

de-

it

con-

that

is

Government

the burden
lowering of

gradual

a

is

now

feared,

that

however,

barked

on

...

has definitely em- it would
become more difficult if
"hard money" policy,! not
impossible to lower British

a

and that the recent moderate rise
in American money rates is

merely

' Even

as

is

it

York.

the

United

States

aoot afford to go too far in that direction without risking a

ously

ster-

policy

new

xnerely aims at reversing the resent expansion of credit, without
wanting to produce actual deflacion

beyond that.

tendency

with

if

rise

the

would
in

money

.

States might drift into

Such

developments

disaster

But

..

unduly

firmer
xates

if such

even

$rove

would

for the free

tone

is

fears

spell

the

cause

not

altogether

evidence

of

hard

a

to the effects of

in-

an

in limited urt>an

lirKan

/■;-

.r~.

Operations

Agricultural College will
conduct the 1953 summer course
on the Economics of Capital Formation in New York City, June
22nd through July 30th. The six
weeks' course on securities markets operations and analysis will

improvement

of international political relations,

cning

The desire of the United States be lead

of

sterling

caused

the

by

authorities

to

pursue

a

by Philipp H.Y Lohman,
disinfla- Converse Professor and Chairman

tionary policy is fully understood, of the
What

writing sterling is still at

gives

cause

for

concern

the

over

the absence of

a slight
dollar, this is

.liable to disappear if
money rates
in the United States should
continue to rise. The inflow of

.

One of the disadvantages of the
firmer tone of American

tor might well

-

to be

last year,

forts'1i^^SstSing1Samfirii°tnHrir
costing
great deal
is

with

view of the
l

a

«*f

easier.

judgment

error

It

is

might well

prove

which

to be fatal for

the United States and for Britain
and
the other democratic coun-

to the interest of the

^rovernment that this tendency

One thing is certain, the adop-

in'°

ownership

of

the

PniVatI rates °f 3the United Wgher further
ti0n in P0UCy °f States m°ney

denationalized




Greatest

11*—"mt

.

..y——.

&

-

Tragedy

Is

lence?
labor

to make that

reality
the

lT

.

bankers

us

Harris is conducting

an

*

~

ANGELES, Calif.—Charles
i

u

Gersten

and Joe

i_

witbSS^ruehiaBe KSnTcr

pany; 215 West Seventh Street.

maintain

possible
the

which

moment,

only

against

guarantee

that

will

be

can

that

have

sound

medium
a

as

to

endless

our

inexhaustible

and

The

American

best

as

of

were

in

stead of
In

ap¬

exchange,
of

value,
of

not

our

civilization, in¬

day

and

the

another

'

with

under the greatest orgy of

was

intermediary in

attempted in

debtedness

alarms

apprehension

us,

the

of

it

in¬

is

trend

al¬

inter¬

no

our

country.

were

simple

transaction

Every

complete in itself. This
barter

was

the

was

method

through which exchanges of serv¬
ices

present

our

tangible.

when

government in

the history of civilization.
as

was

mediary. The American dollar is
that

and

much

there

advancing, will retreat.

to

As

and

known

Rewards and returns

ever

as

and finally,

primitive times labor

man

is that it has been able
stand up for the past several

period has

a

then,

exclusively of the hands.
Negotiations were between one

of government

any

the

as

value.

is sound,

years,

to

first,

most

and remain
that

alerted

money,

storehouse

a

even

resources,

proof

pattern

are

material progress. If these
fundamental facts are forgotten,

have been able, up to date, to
wars

save

was no

without

parently

to

In the dawn of civilization these

suffering com¬
and absolute wreckage.

Thanks

of

measure

facts

ruthlessly violated

so

>

..

Dollar-illiterate

be

must

functions

earth

on

.

Savings

struggle

labors.

America

that

principles of economics

have

we

country

power?

if they know that they

their

of

be

safely be maintained

other

no

not

policy
constitu¬

ultimately to be denied the fruits

civilization

counts

of

A Damper on

will

fiscal

safe,

our

and

restore

to

sound

a

and

Then

goods

came

transacted.

were

what

be termed

may

our

representative labor, and not un¬

that

til this time did any great progress
occur

eral billions of dollars deficit this

rranKlin

(Special to The Financial Chronicle)

tj

perpetuate
and

crime; that they all
unite

now

overwhelms us, with another sev¬

3 With Samuel Franklin

W. Cottle, Jack

this

for

must

money

of Federal spending at the earliest

in-

vestment business from offices ?n
the First Security Bank Building.

fer

youth, to all peo¬

or class,
they will all be made to suf¬

that

Men

in

and recapture the control

money

any

SALT LAKE CITY, Utah—Walter M

purchasing power

irrespective of color,

ple,

assisting

present Administration

spending that

^

bankrupt countries,

its money is destroyed? Can it

living

a

their terrific task to restore sound

solvent.

Walter M. Harris Opens

-

by

declaration

fight devastating

^

.

in

will there-ever be in any na- *

let us say, it must not tional balances
happen here! Then let us proceed

plete

w

organizations that there are

not be shown to

it cannot happen here.

benevo¬

told to the

it not be

Rather,

Stock Exchanges, and both over¬
the-counter and listed markets
will be studied.
••

Can

unions

of

civilized state.
say

government

u pon

tion where the

"Creeping

in the < final analysis is
creeping inflation, is the greatest
tragedy that can happen to any
We

to those who will be subsist¬

even

ing

it

Inflation"

acquire property

fiscal year in prospect.
We are not unmindful

their

in the world. Men began to
as

a

result

ol

earnings. Property took the
of those form of savings, representing the
stalwart, patriotic Americans— margin of value between earnings
Democrats and Republicans—in and living expenses. Investment ol
the present Congress of the United the margin was made in land or

States,
:

.

churchman; to the farmer, to the
vast army ' of honest workmen,

nor

could

LOS

tries.

tehould continue, if only in order

That is how

masses.

:

-.-4

who
- ♦'

* •

at

are
*

v

4

this

,

man

merchant; to

manufacturer, to the house?
the - educator, to the

no

York investment field are scheduled, as well as talks by officers
of the New York and American

xxr

ahont

the bank rate, and
reoney rates have been somewhat

apathetic

„

wife, ; to

happened "over there."

It

Lectures by leaders in the New

vnrlr't Stuyvesant °va1' New
York Clty"

th°Se in- Brjtain ™ho follow cl°sely
economic developments in the

lowering

applause of the unsuspecting and

the City of New York,

c

to proceed, therefore,
its hard money
policy with

SUTherp haprivathe Uni*ed States cannot help feeling
Utelv
t much.anxious about the possibility of
lately about the possibility some
of

the

.

peo¬

ple and rode to power amid the

after civilization among its victims.

s^moar Wagner is conducting
?-n inv.eSot?1f1nt business from of-

interests
tolfc
Talk

imagination of the

the street, to the

in

government.

735 of the Chase National Bank of

the utmost caution. Nevertheless,

to

solvent

of

tured the

we

likely

though salu-

down

Classes will be conducted in Room

Sevmour Warner Onen«

,

atorts

Commerce

spec-

British point of viewNeedless to say, it is realized
is that it reduces the
chances of that the United States Governa lowering of British
interest rates, ment is fully aware of the
gravity
The rise in interest rates
result- of the risks involved and that
it
Jsng from the increase of the bank , is
to 4%

of

a

jtary from the point of

;

-

■

Can it not be shown to the

by the break¬

so

demon

tacular.

money

retes from

prove

Department

and Economics of the University,

is

any borderline between disinflation and deflation.
It is felt that, should the conclusion of peace in Korea and more
gold far-reaching international agreewhich has been
proceeding unin- ments take place at a moment
terruptedly on a small scale for when higher money rates and
«over a year would then
come to
tighter money tends to depress
all
end and might even become business in
any case, the psycho-,
reversed.
logical effect of the political fac-

premium

to

of power made

University of Vermont and

convenience to Britain. The weak-

repatriation
of
American funds
from London may become accentuated.
Although at the time of

vitally

which,

on

State

money

might render American
economy
eminently susceptible

money

much

;ni;mu0f)

? 1?^?

.

The

of

which

the

rni„„w_

Market

It is feared that this polwould create an undertone

icy

to

the

Loss of confidence in its money,

carry

this side in view

on

electricity in the Dis- ~

Summer Course

policy.

were

American
to

do

conviction

world.

pessimistic,

of

liable

States

sanity, has been Senator Harry S.
young Byrd of Virginia. The 100,000,000
people in this generation coming depositors in American banks
out of the halls of learning into should thank the Lord for that
the world, have not been given great Democrat. Their efforts
necessary

at

operating revenues of the
company for 1952 aggregated $47,901,401; gross income was $9,086,769, and net income was $6,165,942.

the United States. Restatements which have
made recently in the United

been

group

Total

i e 7*°.vement might go slump in
jarther than is intended, and that assuring
® Umted
deflationary spiral which could
mot easily and
quickly be reversed,

,

1952.,

is, however, a matter of
importance compared with
the ever-present fears of a peace-

fi

the

the

of

Award

by

won

of
approximately 640
miles, with an estimated
population of 1,300,000 on Dec. 31,

All this

What is feared

yesterday (May
headed by Halsey,

Inc.

square

small

*3 Ju

Money

I know that most of the

1,

consists

be-

simultane-

rates in the United States there
should be a noteworthy decline in
British money rates,

slump,

Xt is assumed that the

This

accentuated

could 'come

was

Jj

suit of

ain that

and

areas; in Virginia and Maryland; Coming -out of comparative ob¬
and in areas m Maryland subur- ; scurity, after a debased money
ban to tbe District oi Columbia.; system had exacted its tragic toll,
; The service area Of the company ; these dictators on horseback cap¬

ling tends to be weaker as a rehigher money rates in New

foretaste of things to come.

It is, of course, realized in Brit-

&

rates

monev

Co.

&

and sale of

States

•

June

due

destroy

economic,

•

should the firmer trend of money
rates in the United States continue

the

fjrst mortgage

restore

to

sound

important education seem, at the moment, to be meet¬
understand the im¬ ing some success. I hope and
they
will succeed. They
competitive sale on Monday on a port and - significance of sound pray
money.
Shame on those schools know, and we bankers know, that
bid of 101.4011%.
and
colleges who
have
failed public spending, once out of con¬
Of the net proceeds from the
America in this vitally important,
sale of the bonds, and from the
trol, is most difficult and painful
patriotic responsibility! I have in¬ to recapture."4;:'
of^o5<?nn4nnnhf.^i
terviewed many graduates — boys
4
stock, $9,000,000 will be applied ;
How then may the masses, our
and girls—and most of them have
toward the payment on or before:
fellow citizens, be won over and
admitted that they have had mea¬
June
30,
1953,
of
outstanding;
stimulated
into
action,- so that
3 Vs %
bank loan notes : incurred ; gre education having to do with
they, the victims of such a pro¬
the importance of sound money,
in connection with the company's
one of
the principal pillars of a gram, will act in the interest ol
construction program for 1952 and
their own security and their own
1953; $6,000,000 for the payment of representative Republic.
personal liberty? How can it be
The dictators who controlled the
the company's outstanding 3%%
done? Who should be more willing
bank loan notes payable on or be¬ destiny of Europe were not selfthan we to undertake the task?
fore March 19, 1954; and the bal¬ elected. They were invited. They
Who should possess more courage,
ance, together with other company came into power because of the
or
more
determination, or more
funds, will be used to meet con¬ breakdown of solvent government.
power of discernment to seize this
struction costs during 1953.
They were receivers for nations
opportunity, ere it be too late?
The bonds will be redeemable, gone
bankrupt. Possessed of a
John Rustgard said: "If we are
at the option of the company, at superior
power
of persuasion,
too weak today to handle-the sit¬
prices ranging from 105% to par, coupled with native political
uation as it should be handled, we
sagacity and a burning passion
P*"s accrued interest.
shall be weaker tomorrow and
Potomac Electric Power Co. is for
power, these men recognized
engaged principally in the gen¬ that their day had arrived. They the next day still weaker. We are
eration of electric energy in the witnessed
the
helplessness
of giving shelter to a vulture that
is
District of Columbia and nearby those in
constantly eating out our
power. They saw before
-4 4
■:
>y:
Virginia and in the distribution them the beckoning; vacated seats vitals."
issue

end

same

lower interest rates.

Atlantic

by the firmer
tendency of
weakness

instead

the

a group

Stuart

ulate business with the aid of tax

concessions

made

was

27) by

In any case there has been a
certain amount of criticism of Mr.

drawn to it on

Co

series

1988, at 102% and accrued inter¬

to

only quite
recently that Butler's policy of trying to stim-

attention

psower

37/8%

barriers

their po¬
money.
First, foremost,
social lib¬ fearless, able, consistent, and with
never a faltering pause for politi¬
erty.
cal expedience in the battle tp
Import and Significance of Sound maintain and perpetuate
dollar
to

comes

litical,

Utility Bonds

insur¬

against

fighting

mountable

able

that

Offering of $10,000,000 Potomac

j

moment

they seem never to have
to identify the enemy

masses,

Halsey, Stuart Group

for
the
steel
stocks
at
satisfactory
prices if a lowering of money
rates

some

j

sterling is made convert¬
been

be much easier to find buyers

trend has been

is

•

and steel industry

iron

Dollar Literacy—the
American "Must"

It will

ible.

"peace slump,"

l

if

crease

lead to

may

further weakness of sterling. Says Britishers fear high interest
for loans in U. S. will impede lowering of their own interest
rates and thus delay sterling convertibility. Points out fear of

t

more

provide a forceful reminder
of the disadvantages of financial
interdependence which would in¬

much inconvenience in Great Britain,

rates

to

even

also

Britain's interest in the U. S. hard-money

policy, Dr. Einzig points out undue rise in American
liable

it

adequate gold reserve.

an

on

It will make

difficult for Britain to accumulate

By PAUL EINZIG

In commenting

Continued from page 13

restora¬

the convertibility

removes

■"

28, 1953

The Commercial and Financial Chronicle... Thursday, May

(2328)

cattle

very

r

or

sheep at the trading post*

-

"■

;i

-

I..'-'

i--"

••

'

:

•

■

*

Number 5224... The Commercial and Financial Chronicle

yolume 177

(2329)

2®

or a

of saleable articles. The

cargo

able to destroy that human trait,

flocks and herds of Abraham rep-

That

resented the results of labor. From

power.

them he drew

competence,

a

himself, and by careful
management acquired an unusual
of this world's

measure

politicians

lack this

those

to

in

content of

that

know

we

are

we

particular, the

without

standard prescription

a

As

worked and

men

the

slowly

struggled

yielding

forces

of nature, it was for the purpose,
first, of storing up wealth, and
then, either having their property
earn
for them or their savings
produce an income for them as

against the day when they themSelves would no longer toil. The
land would bring forth abundant

harvests and the herds would

vide milk and meat for food, and
wool

hides
for
clothing—
product being inherently
progessively representative
labor. By this process man was
and

every
a n d

enabled

obtain

to

*

.

both

returns
.

,

,

.

,

,

,

„

from the labor which he himself

with

performed

his

earlier

(Of

pen.

no

the responsible

course,

measure

representative labor
was deemed
worthy of its hire,
•Eventually, money entered into
the
picture, as a convenient
method of providing a medium
of exchange, a storehouse of value,

•

a

of

value.

Com-

pensation for the labor of the in■dividual assumed purely
>

„

mone-

a

v

^

,

tary form.

Likewise, money bethe token of representative

came

[labor, the
"
IT

rj

.

whereby return

agency

_

of any one

of interest

duced. Primitive

was

pro¬

in his com¬
isolation fought to pro¬

parative

man

tect his property against

in Washington!)
inherently sound for anyone to have the right arbitrarily
to take from a person a major part

thi<1 aw ic

in?labnn ^ythp

his best to keep
the commandments and then When

+,*w*«

determined
•

1-

• "l

action.

i

organized

«oiic.

i

and

action

calls

It

i

i

i

-

a

• 11

*11

is still

.!•

for
_

action,

educated

•

_

while

"■

.

_

possible.

man were to do

Restore
Most

the

Gold

important

Standard

of

all

is

$s. to. its safety and security in and international exchange, civil-

that

under

our

meaning

no

savings in any

modern

ing and corrupting the world ex-

debased, corrupted and
lamily. This desire for progress, politically managed medium of
sometimes referrred to as a profit exchange. The gold
standard is
actuated

has

smotive,

immemorial.

men

will

It
nt

It

from

always

mnno.r

oro

W1

mnn

n v-1

avi

aa w

men

ovmt

dividend, as well
protected in purchasing
or

Nothing

more

is

be

as

to

PMiarrl

apainst

Unless the present

noison

the

A

Administra-

tion carries out their promise to

we

have

known

them

may

arioney,
ffimitiPQ

constantly challenge the

of
property.
As f o r
its safety and its opporfnr

emnlnvmPnt

are

dp-

^unities tor employment are ae-

Jermined by economic movements,

in

Washington—something

bemg

uemg

batterv

treated

uedlfa

with

not

the

proper

was so

alleged,

wiui

respect—at least it

about

additive

me

We need standards. We need the

.

that

The

50%

of

survey

all

re-

indicate®

earners

have

savings accounts and 40% have
checking accounts. In 1941, 98%
of all accounts

were

under $5,009.

More recent figures are not available. Banking already has an entre to the so-called "little man'
whose influence in sometimes mis¬
nzv*ncift ir\-f1 iia/-v is
a<«
guided and proves costly to him
as well as to banking..
£..

or About one-third of the commercial

putting myself on record as
favoring such legal safeguards in

nAwvUi'wnli

overnight,

now

4-V*

enir

the m0netary system of this

coun-

«..—i:

•_

i~i_

question of dollars redeemable in
gold>

r\

am

a-fl

IVIam nf

4-

worth half

or

double

was.

Being
in

promise to

is

pay

promise

a

n

fir

Of Monetary

that this

say

more than onehalf in centers of less than 25,OOP*
and only one-quarter in cities of
over 500,000.
/
.

Science

banker, I

analysis of

an

my

a

can

indulge

bankers.

observation that

.

many

a

It is

of

us

t

ui.-

j„

m

j

in the body politic, and if hot
checked, will become malignant.
This tragic truism should be t61d
to our depositors. Whose obligation is it? The answer: The Airier*
i.i

•

.

iin

mi_

mi

_

a

ican Bankers Association.
J
If they
knew the impendibg
tragedy, the 100,000,000 depositor®

buck comprising the great middle class

a con- private operates with a rifle and of America would exert their intract, we enter into it in terms cartridges. Both know how to use fluence to forestall future ruinous
that are definable. We do not the material. The buck private inflation;
just say we promise to phy ten knows how to shoot his rifle, but
From the reservoir of economic

thousand.

We

say

thousand has

ten

knowledge of the

no

alloys wisdom

at

trie headquarters of tha

dollars. But if a dollar has no that go into the rifle barrel

nor American
Bankers Association,
fixecj value we do not know what of the chemistry going into the supplied as it is by eminent ecoriwe are promising to pay any more explosive. The average banker omists, there could flow down to

a description of
strength, or wine

tural

its struc- money; many of us, therefore, are tors the educational material deal^
that has

an(j find that it
we

that

took

with

was

60

kind

,

adainot

ldWb

dgcUIibl

!fgri,ty
its
traditional
+wpnfv

ins

;f

and

?ee?

content

at

Piphths

]d nine.tenths £ine.
,

sary

we

do know and remain

silent,

their substance to the disease-of

Only a fraction of the
wateringi*1 the silent and neutral class and amount in mty opinion so lost
someone has said that the hottest would be needed to promote apt

fiVp

.....

,

gold

fivp

ing with

money economiqs neqesto sustain the educational
amental difference between an ir- program to which I have.lxe-

of us do not know the fund-

then we qualify to be numbered inflation.

*nrnnpr|n?
lailljjei Illg

.

olULKS,

treatment

of

dollars, lying down!)

our

dollar illiterates. In other words,
many

redeemable currency, and one ferred.
;
.
convertible into gold. If we do not
Each year for the past 20 years,
proof! But know, we are misfit bankers. Jf our depositors have lost part oI

...

...

nl0.al,

o^itnofirtnol

XI0/q0C,

oliminoto

nmawm

in convention, strong resolutions
haVe been formulated for the
fraternity who, for personal profit, preservation of sound money. This
laid aside their fundamental judi- has been true in the annual meetbe this is
ment

Qf

also true of that seg-

^

leggal

new

—

Hdde and arbitrary dollar

degenerate into doughnuts.

.somebody's

The diffusion of accounts is

out

naner,

security

be

can

fiscal agents and financiers with- less than 1,000,

value takes the power of predicIdle and insecure.
rf
T
rpfld
thp
ri«htlv
tion out of business and takes the
In the physical world, floods the;e h
' TL„ 1^1^, rel inherent integrity out of contracts,
and storms, winds and waves, heat centlv in the Bureau of Standards and takes away the lncentive for

and cold,

figure is
It

And when we enter into

power^ reestablish the gold standard,
to made without reservation, dollars
as

.

.

to pay. A contract is a contract, operate with' money as

devastating

the morale of a thrifty people than
to observe their investments grow

the

one

any other group of responsible banks are m population centers of

can

4-

att av»n l

can,

the automatic watchman on the
tower of the government of free

gin of profit in the form of interest

a

men.

imposing

an

and assuring.

not want to stand before this

and

liquid form

against ruthless politicians debas- without

him and his lows

but

could Yet happen if we do not do ^The geographic distribution of
something about it. And I would the good-will potential is broad,

labors just as in- changes and money systems of a been ten times watered.
<lustriously and productively as free people. I repeat, it is a bless(i £an imagine that' some people
cloes he, himself. In this he finds ing from an all-wise Providence ^vould
be
pretty upset if they
incentive for progress and more to prevent the tragedy that fol- should order 100
proof whiskey

time

are dealing with safety

we

econOmy money

abundant living for

duplications o!

many

in us, or they would not be doing
business with us. In other words
our banks have a direct contact

mean much, so long as the fiat of
one man or any combination of Bankers Should Have Knowledge
rfV*
Af
C/iiah/ia
av1a

what it
an

-

realizes

at the mercy

are

tracting for in the future. As the try so that no one> now or ever>
There are over 300 000 bank'ofold story goes, he may promise to in the loreseeabie future, could ficers and employees. The num{tel'ver 9*'J° pay al* °fmake dollars into doughnuts. I ber of bank stockholders is rough-*
but without a gold standard he think we should safeguard the ly estimated at 3,000,000.
does not know in advance whether soundness of the dollar even if it
he is going to have to deliver six takes a Constitutional Amendment Dollar Illiteracy—a Tumor inthe
rabbits or^six horses—or six mice to do it—and I am not so sure but
Body Politic
or six elephants. No arrange- what We should have a ConstituWe must admit that dollar ilment much definite payment can tional Amendment to cover the literacy is a well-developed tuirior
for any future
have miieh definite mpaninf—and
have

dollar is

education program to work for
fruits of his earnings, against in- tbe reestablishment of the gold
jflatiop.
standard as promised in the Plat,ri(l1The stored up monetary value, form of the Republican Party,
representing the returns from Gold is a gift to the world from
'labor, becomes his servant. In be- an, all-wise Creator. There is no
'^alf of this servant he has a right substitute. There will not be.
$0, ask that it be protected, first, Without it as a base for national

[(Compensation for its services. He

or

ductive period has passed, when

is

ernments and corrupt the people,"
we find the corruption process, as
prophesied, is a long way down
*be trag!C road to fulfillment.
Let us resolve to win the battle
t0 save the dollar. That dollar of
destiny must not become a casualty, lost through political action,
Let us dismiss any gay opti™ism. The time calls for actionspeedy action, intelligent action,
mimv,

ronrsA-

parties served "time" for this
"dastardly deed," as they say in the with contracts for the future, with with what constitutes the voting
soap operas—some 20 years of the savings of widows and or- control in this great country—the
time, as^I recall—not in jail but phans, and of people whose pro- depositors of American banks,

usurpa¬

tion. So modern man must defend
#he dollar, which represents the

man

of the fallibility of

judgment of
many men; when we are dealing

he went fQr hig reward found that

.

_

in the from

afford to be at the mercy

.

pnd

Of

assumed that they have confidence

base.
Hpht in

States

cannot

still

.

olir national

the United

robbed of some 40% of their
life's savings by a stroke of the
once

manage-

day,

and

or

in

security, economic soundness and
incentive, and with the future of
0f his savings—or make it so that our families we need a dollar that
fortunes.
a substantial part of his life's ef- cannot arbitrarily be made into a
" ought to be burned into the forts are lost? If this false prin- doughnut.
consciousness of every citizen, cipie were to prevail,
people
"Dollars to Doughnuts" is not a
through a concerted education would increasingly ask, "What are f>°od gamble even by the most
drn^tflm. t.Hflt. flip "fiof Hp—
reckless standards. Yet there are
vnnlrlOPP
n«a
program, that the first line of de- w0 working
places where it has happened,
f ense in a free country is a bal(Suppose eternal salvation
It started to happen here, and it
anced budget on a sound money were put on such basis! Suppose a

hands

own

talent

that

bank accounts

f*st
caU^ 0f Wendell Phillips the Lord had arbitrarily changed
ment proceeding from his own calling
what
.,
rules overnight'1
brain. He has found these servants said> "Debt is the fatal disease of
'
aiding him in his work and adding a^ republics, the first thing and
Without a gold standard dollar,
to his resources. For those of this the mightiest to undermine gov- no man can know what he is conhis

from

and

something

there

longer historically minded. We
imagine that history began with
us. We are the "Little Red Riding
Hoods" bringing our hard-earned
substance to our dear old "Government Grandma," who turns out
to be a hungry wolf that devours
not only our substance, but also
threatens our very lives and

pro-

is

Vagueness in money matters is
something we cannot afford. We

we

'

With

gold

should haunt all of us!

education; that
self-centered, and

group-conscious; that

any

cannot well forget that
some millions of Americans were

money

have grown

we

goods.

known

—but

The

sus-

tained

is

fact

he changed, in

f "*

■

■

.

They should now in£>s of

learnings.

the American Bankers As-

j0in
educational crusade for sociation and also at the yearly
reaffirmation of those principles meetings of all state associations.
in the constitution envisioned by UP to the present time these resothe founding fathers to establish lutions have been little else other

imnortant to know that the and
perpetuate a sound money
bijiaS a:
to
It is important to know that the foundation, without which na- cymbals. This is the moment to
cloth we buy ls " a wo° and a tional survival of our free way of formulate an educational prograni

PTis

.

d wide," and it is important to

r

A,ir

t.

-Lc

,

^^f ^

fivpd

o11

in<?t

lifp

nnf

to carry into action the intent of

nn<?«;ihlp

lite is just not possioie.

wp^mJ-nn LttPr

In

a

representative

foreottpn rp«?ninfinn^

national

^fQ

Not to

favorable

no-

•SiaastSKgSiJSSSr Bu,r,
;y"i Af> ,r 3»4wSV5fifi »■«■« sssits^zXiStf
""i"" ■ «««identified
ifira " ssxvzttsstzt tsax*^
ju
a wjsvirt &
tamper with the
igreater part understood. This
♦of destruction to
are

well

ana

tor

me

is

jnot the case with respect to the
Tforces which affect the stored up

^products of labor—money.

j;

In thinking of money as repre-

isentative

of

stored

labor, let
ms
consider your neighbor and
iSrune as its possessor.
It is they,
individually and collectively, who
Jiold the great material wealth of
this nation, even though some
Tolks

would

owned

have

up

us

believe

it

Bureau

of standards has any
over.
We are constantly

risdiction
an(j

greatly concerned about what
goes into an aspirin tablet, what
goes into a vitamin pill, and what
goes on the labels of thecommodities we offer the public for purchase—and

should be

it
so

is

that

proper

concerned.

cloth has 5% of

rayon

we

tions.

by

our

People who

large
see




coun-

'He

ability

to

bas

vote

,an

outstanding

himself

benefits

today, and an equally astounding
Keep Up Battle Against
ability to ignore the costs tomor"Soft Money"
row.
Thus they open the portals
In the vmrds of F. M. Kauffman,
the demagogue and the prom-

\~en*Xo0

^er. Little remains to stem the

remaining," and

to sfand up and
wu

,

■

.,

now is the time
^g counted,
...

.

^by sbould not the American
Bankers Association promote slich
an

educational program that would

accomplish this great service to

JJ. y®u who influence financial tide of selling tomorrow down the
f
A
.
niirwi„M9
thinking with your clients and river.
our ^
try and to ours lv s. To
who with your Congressmen, that we
a survey recently made dis- spend a little money ip an all-out

If wool

label must say so—or the man
due for trouble.

corporaBut it is sometimes puzzling
their life how some people can be so coninsurance or their savings yielding cerned about the content of a yard
less and less become disturbed, of cloth and yet seemingly so unWhen their principal means of concerned about the content of
support is thus seriously dimin- our basic standard of monetary
tshed. they, vcwnrc distracted.
mcu
bucj
become vuowawtu.
value-Uhe uvxxm.
dollar.
No trick of logic will. ever be
A man might well go to jail if

is

to

cash register.

.

in it, the

made it and the man who sells it
are

wants

keep swinging at soft money, so
that soft-headed men can not mismanage it, and wipe out the things
that hard-working Americans
have worked for.
Someone once said that currency is merely the ghost of gold,
We have no quarrel with the idea
-w we do not want to give, up
but
the ghost or the gold. And a ghost

closes that the aggregate of bank- advertising campaign to save what
ing customers provides
a
tre- is
of
5qc dopar is vitaL
mendous field for educational ,
.
.
.
purposes. Most of the depositors
111S m°re
,
* 1"STJ5®
are voters. In one way or another the survival of this land of ta©
_

contact with these depositors free, keeping in mind always that
has been made already. As a
is not only the land of our

a

rough approximation, there are
close to 100,000,000 ^ accounts
bank
in the 18,000 banks and branches

but

fatfiers.
children.

also the

land

of

our

also tne land 01 our

SO

The Commercial and Financial Chronicle...

(2330)

impending deficit—is not enough to bring general
support for reduced expenditures, it would be folly to sup¬
pose that a larger deficit deliberately brought into being

ably

would do other than court financial disaster.

the

and

Continued from first page

We See It

*As

which the President has all

The leader has

along been known to favor

spoken plainly; it is

been

fully convinced, that waste in almost incredible de¬

gree has long characterized most of the operations of
Federal Government. We believe, moreover, that as

the

the
of its activi¬

ties, waste has grown apace.
Defense No
We

tionate reduction in defense readiness. We do not under¬
•

for

can

moment

a

suppose

that

inefficiency and waste are not an almost universal attri¬
bute of the defense effort. Let him who doubts inform
himself
orders

its

•

if

stocks

Such

Challenge to
outlays

,

,

addition to the direct effect

In

Government

in

the

disbursements,

of defense

level

fore¬

are

fairly

not fully realized.

are

adjustment would prob¬

an

ably react fairly rapidly

Enterprise

Several

formation .over the next
the continuation of
building
at
present
would build up a surplus

family
few

years,

residential
levels

upon

important'

.

the
-

industries

probably cannot indefinitely

con¬

diminishing support.

but

of

will

sales

which

levels of industrial production.

however, the housing situation has
tinue for some time to come to eased considerably in recent years:
provide the economy with a large As we face a smaller rate of new
defense

Thus

current

of

many,

con¬

tinue to operate all their facilities

without

interruption. Some
the textile-industry
have already had to cut back their
some

of

segments

production from time to time dur¬

ing the past several years, while
the : output
of some' home -ap¬

of housing, presumably with at¬ pliances is apparently being cut
may
also affect the
tendant pressures upon building back currently.
.»
indirectly through the
values and rentals.
The residen¬
Even the more optimistic ap¬
changing anticipations regarding
tial building boom is not likely to
praisals of the automobile market
the volume of Government orders
collapse but some sag in the level for 1953
hardly seem to justify
and the like.
For example, the
of starts would not be unexpected.
the expectation that second quar¬
expectation of a large rise in de¬
Commercial building is current¬ ter
production rates can be main¬
fense spending, coupled with the
of this
uncertainties in the international ly in a rebound that reflects to tained for; the balance
some
degree
the
restrictions year. These considerations suggest
scene, sparked a sharp inflation¬
placed upon this type of building the likelihood of some decline in
ary
burst after the outbreak of
by the shortages of materials in the rate of
the Korean War, well before the
production of impor¬
the earlier years of the Korean
tant
actual amount of defense spend¬
products
within the pre¬
war.
New industrial plants and
dictable future.
ing had
increased significantly
the movement of population to¬
above pre-Korean levels.
There
Expansion of Indebtedness —
ward the suburbs pose the need
is little prospect that the defense
for additional business facilities of Another brake upon the current
cutbacks on the scale currently
a great many kinds.
Here again, peak rate of economic activity ap¬
contemplated will cause a corre¬
pears to be developing in the debt
a high level of activity may con¬
spondingly sharp deflationary tinue for some time but a
gradual situation. The postwar boom has
movement. In contrast with the
been
decline is to be anticipated.
accompanied, naturally
rapidity of the rise in defense
Public Works
The upward enough, by a steady and persistent
outlays between 1950 and 1952,
trend in building and construction rise in personal and business in¬
the present outlook is for the re¬
debtedness. Increasing attention is
duction to be much more moder¬ by Federal, state and local gov¬
ernment is
likely to persist for being directed to the growth in
ate
and to proceed at a
more
some
years
to come.
Our highT real estate mortgages and in con¬
gradual pace.
sumer debt, which are at record
ways, schools and other public fa¬
Business Spending on Plant and cilities are already less than ade¬ heights not only in dollar amounts,
Equipment — In addition to de¬ quate to meet our present needs, but also in relation to personal
fense spending, private domestic and these needs will increase in income. This fact does not neces¬
investment may also be at or near the future. In appraising the im¬ sarily establish that
individual^
its peak. The surveys of business portance of these activities in our are
dangerously overextended, but
spending intentions on plant and $365 billion economy, however, it it does raise some questions re¬
equipment show that 1953 is likely.. should be kept in mind that pub¬ garding the desirability of relying
to
be slightly higher even than lic construction today accounts for
upon a sustained rapid expansion
the
record year 1952.
The tax not much more than $10 billion a in
individual
economy

perfectly certain in our own mind that our
are definitely no exception to this gen¬
eral rule. We reject with scorn the notion implied in so
much that is said these days that a billion dollar reduc¬
tion in defense expenditures necessarily means a propor¬
anyone

clear that

seems

spending

Exception

are

how

•

•

Business

changes

defense activities

stand

6

page

such

first of all, fully convinced, and have long

Federal Government has broadened the scope

from

optimistic,

The

the American system of strictly limited gov¬
activities could but bring disaster. Now, for

part, we have no patience whatever with any

our

Nevertheless, it

casts,

management of our affairs, and that any move at all
a return to what through the ages has been re¬

notion. We are,

of

aspects

ably would be inclined to reduce

Continued

toward

garded as
ernmental

reassuring

are

inventory situation.

with lower inventories and prob¬

Mars

from

might well suppose from all
this that there has been no waste or extravagance in the
visitor

important
These

present,

at

unquestionably was an
factor two years ago.

American business could get along

the rank and file.

and to desire.
A

unimportant

whereas it

the turn of

now

Thursday, May 28, 1953

by consulting any business man who has defense
his books. The only real question is whether

on

proposed reductions will be effected in such a way that it
of defense readiness, that is

is the waste, not the degree
sacrificed.

^

'

—

Nor have those who would defeat the Administration

failed to call into

play various other old political tricks
past it has been rather more than
military men have been having a field

of the trade. For years
evident that the

day. Few could be found with the courage to say them

We had been caught flat footed in 1941,; many with-,;
bothering to inquire into the why's and wherefore's
have permitted themselves to be persuaded that if we
were to avoid such a catastrophe again we must heed the
nay.
out

generals and the admirals. But for one reason or another
during recent months there had been a good deal said
about the need to get our military establishment again
under civilian control. The Eisenhower Administration, an
advocate of such

procedure, no sooner begins with some
effectiveness, so we hope, to give effect to this reform
than civilian control becomes "political control," and
therefore to be thrown out of the window.

But reactions such

as

these

not confined to

the

military establishment and its special pleaders. Almost
everywhere we hear about the same sort of whines. The
Veterans Administration slyly lets it be known how many
beds it must de-activate in its hospital system should the
Eisenhower brand of economy
neither the VA

nor

be given effect. Of course,

the veterans'

lobby could be expected

to have much to say

about the almost incredible extent to
which the taxpayer is being called upon to pamper the exsoldier and ex-sailor in innumerable ways which have
no

connection

whatever

with

his

service

in

the-armed

forces.
And

so

it goes

is that thanks in

Deal

there

enormous

has

everywhere. The truth of the matter
large part to the New Deal and the Fair
developed in this country a perfectly

vested interest in waste and

inefficiency. From

all of the holders of
interest

we

now

participation certificates in this vested
hear, and can expect to hear regularly

until such time

as the
public makes it perfectly clear that
definitely and permanently behind this Administra¬
tion or any other political leader who has both the interest
of his country sufficiently at heart and the simple courage
to challenge these leeches and to put an end to their
political power.

it is

All

the

this, obviously, has a very direct bearing upon
question of tax reduction. Let there be no mistake

about

that.

Unless such

modest

plan for reduction in
expenditures as that now brought forward by the Presi¬
dent can command wide support from the rank and file,
there is simply no hope of any basis for sound tax reduc¬
tion either

a

in the future. It is easy enough to talk
about tax reduction bringing about a reduction in receipts
and thus

situation

now

or

forcing curtailment of expenditures; but if the
by which we are faced now—with a large current




plant
programs
aggregating over $25
billion, has doubtless contributed
measurably to the present record
volume of business spending. Ad¬
vided

are

depre¬

ciation has been granted on

has

stimulus

ditional

All Over

program,

accelerated

which

under

..indebtedness

certificate

amortization

been

pro¬

much
In

is

and

year,

increasing

not

by

than $1 billion a year.
economic downturn, resort

more

an

high business activity,
satisfactory
profits,
rapid
in¬ short notice in view of the time
creases in wage costs and the large
required to draw plans, obtain the
scientific and technological prog¬ authorization of the voters or leg¬
by

of recent years,

ress

While

there

v

,

!

-

is

impressive evi¬
dence of a continuing high level
of business spending on plant and
equipment, it would be reasonable
to

assume

that

economic

the
to

a

deterioration in
would lead

outlook

reductions

some

in

such

out¬

lays. This appears all the more
likely in view of the rapid expan¬
sion of capacity in many indus¬
tries in recent years.
Also, ex¬
penditures for equipment have
apparently been running above
their
customary relationship to
national output for several years.
Residential

Building

and

Commercial

Residential

building
also is still moving at a high rate,
and 1953 will probably be another
big housing year, even though
some of the recent optimistic fore¬
casts for 1.2 million starts, 10%
above 1952, may not be fully real¬
ized.
Housing represents perhaps
—

field of

one

some

be

economy

backlog of demand

at

in which

still
Furthermore, the
boom is supported by
may

work.

housing
basic

our

social

and

economic

forces,
such as the currently still high
rate
of marriages,
the growing
size of families, the movement to¬

ward
to

the

new

sult,
are

suburbs, and migration

industrial

vacancies

in

areas.

the

As

a

re¬

aggregate

still low, rentals generally are

firm,

and the sales prices

of old

islative

bodies

and

arrange

nec¬

financing.

essary

Business Inventories

—

Business

among

are

the

most volatile and influential forces

affecting

fluctuations

short-term

activity.

Consequently,
the horns of

on

continuation

in

growth

we

of

to be

appear

dilemma. Unless

a

further

have

we

inflation,

the

personal

the
swift

recent

for

debt

a

protracted period would gradually
increase the burden of debt, im¬
pair the credit-worthiness of some
and

borrowers

them1 to

subject

increasing difficulties in
their

v

inventory policies

business

of

would

probably be had to public
works as a contracyclical instru¬
ment of public policy, but results
are
not likely to be immediate;
real delays would be encountered
in expanding these activities on

>to

perpetuate the current peak rates

obligations. Such
well

might

the

carry

meeting
situation

a

of

germs

more

serious problems for the fu¬

ture.

On the

other

curtailment * in

in economic activity. The business

sharp

a

expansion

might

downturn in 1949, the

hand,"

debt

upon

of

pressures

inflationary
1950 and early

late

1951, and the slackening in mid1951 all represented mainly or in
important
business

part

the

reaction

conditions to

of

changes in

have
perceptible
effects
important industries, includ¬
ing residential building, automo¬
biles

second

has

again

been

ventories.
tion

half

The

reached

tions

in

of

1952, buisness

accumulating
of

rate

fairly large

the

latter

in¬

accumula¬
propor¬

of

part

1952;

which

hasten

durable

would

A number
at

goods

probably

decline in industrial pro¬

a

duction and business

inventory policies. Beginning with
the

other

and

output,

in

work

activity.

of forces
our

to be

seem

economy

which

may tend to check the growth of
private indebtedness. The present

high and rising levels of indebted¬
place

ness

more

indi¬

more

viduals

reduced pace.

borrowings. Also, the markets for

recent

However,

the recent inventory

accumulation differs from the up¬

of

surge

in

1950-51

least

at

two

important respects. First, business
sales

in

panded

recent
more

gate

than

ratio

of

have

months

inventories,

improved;

in

and

inventories

to

contrast,

in

less

rently
may

the
has

the

position where they

a

willing
the

of

some

to

add

durable

being

' weaken

bought
later in

their

to

goods
on

cur¬

credit

the

year.

Finally, the credit policies of -the
Federal

ex¬

rapidly in the aggre¬

sales

are

in

and

months, the trend has
apparently continued, but at a

in

debt

Reserve

System

and

the

management policies of the

Treasury

are

operating

to

the rate of credit expansion.

Summary of the

limit
-•

Outlook—This

months following the outbreak of
the
Korean
war,
inventories

brief survey

jumped

underlying the present high rate

also
1950

in

ahead
marked

and

early

of

sales.

contrast

1951,

Second,
to

late

there

has

of the

economy sug¬

gests that most of the main factors
of business

activity are at or near
that production ap¬

their

peaks,

pears

to be running ahead of

are still relatively high in
comparison with new and modern

been

units.

quently, speculative accumulation

sumption, and that economic in¬
dicators are likely to move down¬

of

ward.

houses

Despite these sustaining forces,

a

conspicuous absence of in¬

flationary
business

psychology.
inventories

Conse¬
is

prob¬

Even

though

the

con¬

prospec-

Number 5224;,. The Commercial and Financial

Volume 177

reductions

tive

least temporarily. Businessmen
also will probably be inclined to
goods are expected to be mod- defer some oi^ tneir plant proferate, the combined effect of such grams until they believe they can
tlook more clearly,
a movement raises the prospect of
appraise the
economic downturn in the fair¬

an

however, the ready
A further important contribuavailability of credit is not likely tion to stability can be made in
by itself to stimulate business bor- the field of private investment. A
rowing and spending .
basic requirement is that more

Even

modist

a

inventory

cor-

The decline in

Treasury deficit.

rection,

of 1948-49,

business activity would probably
have to Persist for some time be-

the end of this year.

the economic indices. The Federal
economic indices

a Program designed deliberately
tQ unbalance the budget. However,

near

-

substantial

Obviously, there are a number
of

which could im¬
alter this anticipated

possibilities

portantly
_

Too

ahead.
•forces

complex

index;

industrial

pro-

duction

declined

by

more

than

•

1ft,Q

fairly

a

even

vigor in recent years; it cannot be

business

moderate

Treasury

since

deficit,

some

However, while the need

rotes.

ex-

project the
degree of

months. Thus, the decline in pro- vulnerable to declines in personal

possesses

duction

tremendous

a

come

and

employment

may

incomes

be Unlike

rather suddenly and may

profits,
ago, there

corporate

and

generatinon

.a

be growing
opportunities
abound for plant modernization,
and

thus

personal income, are more stable
importantly affect the spending than the productiori index From
plans of government and business the high quarter in 1948 to the

tures.

in the international situation may

the

'and

-and

sumers,

■hasten

of

expectations

'The purpose of

this review is not

detail the

'to forecast in

gross

income

are

American

In the current situation, we are

;events but to call attention to the probably

*«»r.nir»nTYiT/»
economic

of

sence

"to be

«rViir>V.
which, in +V.Q abthe

-Pr\r>naa
forces

developments,

new

seem

will be

working toward lower levels

of

aggregate business activity, to
"the end that we may be in position to deal with them

and

!idly

more

rap-

make themselves felt.

they

Economic Climate in

4 1
J
correction ion

However,

the

whether the decline
be held within the fairly nar-

pend
can

Downturn

upon

limits

of

inventory

an

of

have

ad-

or

some

cumulative effect upon

'

.nric„mQ„

traction

levels

current

from

of

activity. A prime question, funda¬
mental to business thinking and
.

„

„

„

M

pt!

„

'

„

obviously refers to the

planning,
of

kind

downturn

a

pect: whether

we

ex¬

may

likely to

we are

ex-

brief

and
painless readjustment, as in 1949,
or whether, at the other extreme
we
need
anticipate a sustained

*perience

relatively

a

.

...

,

rather

difference of opin-

some

economists

among

into

stagnation, and which will release
and
stimulate
the
recuperative

society.
Sound policies of this kind would
have as their general objectives:
powers

of

our

goods

tribution

to

as

is

will have
bearing in deter¬
mining the environment in which
important

an

economic

business decisions will have to be
made.

•.

Tlll.

.

Pn.H

i

«

~

Cycle
the

—

barring

Always

continuing

war

threat

serious

or

ScTahead

The

pnate

SPendin^

bUSineSS

to

device

tax

action

is

likely

an

present

Administration

business activity than we
since

been

have Governments grip upon the econ-

WOUld be to

sustained

and

war

when the forces
making for cyclical movements
were overridden
by the extraordinary
uiiidi,
and

period,

combination

of

nublic

y
„iu
^U.UUL
private demands. The major_

j

j

ity of these fluctuations in earlier
years was

of fairly modest proporno lasting harm

lions and worked

nen„Vth?
people. In
and

fact,

some

fluctuations

in

fTILuut

flexibility

economic

ac-

measures

general decline in economic activity. Neither Congress nor the Ex-

in

depression of the early 1930's

was

exceptionally long and severe;
should

in taking

bility

equipment.

plant

in

investment

new

research

depreciation on
d

a n

This would probably
stimulation to capi-

more

lower

corporate income tax rates.

The Role of Business

Enterprise

While Government

policies will

probably play a prominent part in
attempting to .moderate and re-

C]ose

heart

^nTle^

tiative to the Government/it
the

vigor

the

and

resources

or

great

has opened

and

years

vistas for industrial

new

long-term

to

sion.

At no time is

more necessary

the face of a

The

decljne>

imDOSed bv

business

a

-

research

than when compe-

likSy

to

be

waae

taxM
taxes,

that
tnai

even

in-

Prospects are

rates

if ItfUUL-CU, will
11 reduced
WHi

still remain a heavy

to

bring

The

dynamic factors in our
economy

past

growth

by

are

decades/ of

have

business
ened

added
expan¬

no

among

height¬
responsibility for

management,
of

sense

business

developed,
a

the economic health and progress
of the community. Throughout

the

postwar boom, business has given

remarkable proof of its emotional
s a 11 y and maturity, despite rePea^ed inflationary pressures, it
,as rerused to indulge in over®Y«"a,enGe and has generally disP ayed _^n unprecedented degree
of caution and restraint. The re-

sultlnS

absence

of

widespread

com-

rates"and^arge TxeT'cS
Cb dine

expect this growth

and

exhausted.

means

significant economic
problems ordinarily
shrinking volume of

are

The

industrial

turning into a high-cost producer
and
lacking the
new
products
needed to spark the progress of a
company.

to

continue

opportunities for business

be short¬

would

action

the

in

are

more

many

reasonable

their

sighted indeed; the record sug¬
gests that the firm that econo¬
mizes on research during a period
of reduced business activity irisks

burden upon

™ds alld ^obably contributed

materially to our sustained prosperity' In the period equallybusiahead, im¬
may have
an
hntro

ness

portant

o/n,„ollTr

an

opportunity

business as far ahead as can be
reduction to hourly" wag7?ates

significant

downturn takes
are

natural

consequence

abdjcati0n
further

by

of

such

an

business would be

to

demon-

-■

--

^

V*

most difficult to

participation by the Gov¬
economic life.

the

trap

A

Program

of

signs in the picture.

fairly effective

in preventing a

The future

of business

imagination
all—enterprise!

and,

courage,

would, present business

tary

economy.

Furthermore, enterprise may well depend upon
of encouraging the
ability of business to show
above

for

efforts to stimulate consumer buyThe best way to do this is to
Slve dollar through lower prices
the consumer more value for
his

conscious

more

of their

factors

are

importance in maintaining a
greater degree of investors' confidence than has been generally

apparent in earlier years.
Furthermore, it appears

investment

further

in

Joins Vermont Securities
(Special to The

Chronicle)

Financial

BRATTLEBORO, Vt.—Frank N.
Gigliotti has become associated

with Vermont Securities, Inc., 67
Main Street. He was formerly
with Townsend, Dabney & Tyson
and Tifft Brothers,

stake in

system. All these
probably not without

enterprise

the

that

the final day of business corporations in the agDesigning new gregate will be in an adequate financiai position to undertake

proportions. Reduc¬ spiral of credit contraction, since Industry will have to find ways
the money and investment mar¬
tion of employment, whether by
for improving distribution techkets would then be highly liquid
layoffs, shutdowns or fewer hours,
niques and passing savings along
and banks presumably would find
Nowhere are imwill obviously reduce the income
themselves out of debt to the Fed- to consumers
and
the
expenditures of those
Rese„e banks and in posses- agination and drive more necesdirectly
affected.
In
addition, sion of •excess reserves. In the sary and more rewarding than in
other consumers may decide to event of a significant economic this area of our economy.




aggregate.

the

there are a number

buslness Prospects

holdllioweverl its Mng? s£hTolicfes' clfn Te

casual

in

costly to business

more

even

ernment in our

likely to be of more

into

into
the proportions <of 1932 and 1933.
a

be

products can help create new desires and cultivate new markets.

fall

ment begins, it will cumulate

than

continued unabated

has

recent

laboratory or the pilot stage. It is

to defer
projects.

and

programs

terminate

Such

to will probably be

business

not

nf uuuuiijinj, that vnvv ,uu "Wju-Jk"
assuming
once an adjust-

effects

"

authorities would doubtless
and better products. Through the
contribute
through large openi n t e n si v e development of im¬
market purchases of Government
proved and modernized products,
acbuillica rtllU possibly a i vuuvuuii
securities and yuooitjxj a reduction r
•
J„„q
in the discount rate and in reserve furthermore, business can in u
requirements in order to assure Ibe consumer to part w t
ms
amnie funds for bank lending and equipment before

jvi

Once

and

assurance

growth. Advances in the field of

Cffnvent^

are, on

The

we

eco¬

our

should bear in mind
and technological

we

sweeping

Opportunities for Progress—To¬
Action—Sound day, business is operating in a
ecutive branch of the Government business policy in a less favorable political environment which is
likely to be less sensitive to the economic environment would be more sympathetic to the problems
+brpat nf ppnnnmir in<?tahilitv nnr economic enviromiieiit
wuuiu uc
to take the leadership in stimulat- of industry than at any time in
less inventive in aesigning meas
forces of expansion and the
past two decades. The many
td
fu^^s^es"^prospl?ts 'loneJterm growth. In the first years of full employment and
^tplrXte
place> a contraction of economic high personal savings have not
Prompt resort is likelynotipo^hle activity
to be had management with the opportunity only resulted in a broader owner.
PrPriit
nnlipv
Anv
ship of American business corpodpriine in
business
even
in the as wel1 as the need to intensify its rations,
but have made people

the whole, probably abgence of a pron0unced contracnecessary
for the balanced and ti
is likely to be accompanied
healthy growth of Xhe economy. by an easing of credit. The mone-

tivity

of

scientific

progress

corporations to economize on

to assume that it will be less en

in taking appropriate
to prevent an inventory
postwar correction from spiraling into a

industrial economy, except for

boom

periods

history. This should enable

Finally,

to both the development
of broader
m a rik e t s
and the
a^Vupvement of more modern and

substantially greater flexi-

gran^-

may

•erally characteristic of the Ameri- ergetic
the

upon

prewar

fluctuations in the past were gen-

can

based

support them with greater con¬

that

A key

to ating the extent and duration of
an
adjustment. Should business,
at the first sign of economic weak-

susceptible to' cyclteS fluctuations
m

position

better

a

viction than in the past.

ous ones.

important part in any eco¬
of
nomic contraction of significance
play

econ¬

our

analysis than it has been

previous

to

modernization Well development in
and BS in prOSpeTPOOr yeHTS 3S

encourage

'

Government

in

decisions

plans with greater

leaders in American business today are those that persisted m
their efforts ;at improvement,

(2)
(3)

be'more ?e leSS eagGr thf itS predecesfsors

may

we

anrt
and

im¬

various

of

result, business today

a

make

dis¬

power,

alert business management to lay

establishment of favorable condi¬

the present state of the econ- The

war,

HpmanHs
-demands,

As

factual

business to-

American

in

leaders

thp The policies adopted by business
the
enterprise are a vital factor in any
economic environment; its retions for private
investment in
sponse to a lower rate of activity
housing and business facilities.
can be of great and possibly even
Prospective Economic Policies— of decisive importance in moder¬

mnsiimpr
consumer

purchasing

probably

to

tition sharpens.
(j) the prevention of a spiral of verse an economic decline, busij do not intend to minimize the
contraction
and
forced ness has a real obligation to take difficulties that business would
I period
of business
stagnation. credit
"Furthermore, the economic pol¬ liquidation,
(2) the sparking of energetic and constructive action. face in purSuing a bold course in
icies of the government

of

portant components in
omy.

markets

the

services,

behavior

the

and

various

of

and

broad upward sweep inproduc-

work against tal outlays than an equal amount
serious unsettlement, prevent an 0f relief extended in thq, forfp. of

turning

condition

for

that/n snite^f somcTvicis"

tion, productivity and sales.

policies which will

from

the

that individual income taxes, .cor- creasingly important to American
P°rate taxes and excises will all industry; in fact to progress,
it has become
the prerequisite
sh?w some reduction. An appro- business decline might lead some
the nrerecuisite to progress. A

in^ the responsibility for adopting provide

adjustment

frequently
savings in costs.
many
examples
in
business
history that

efficient production facilities
is synthetic materials, electronics
late consumer spending) or to
and elsewhere have released many
business (to stimulate plant pro provided by research. Over the new products to the market; a
grams). What is most probable is years, research has become in_

whether the lowering
production in key areas will

justment

Also, in the past decade or so,
gathering information concerning

nomic

actual stimulated, per dollar of revenue

,
.
ni.
,
/this analysis of the factors
anH htfJnpE'crfp^W
operating
in
our
economy
is housing .and business spending on
reasonable, the question arises as plant and equipment.
to the conditions which business
Business, together with govmay face in the event of a con¬ ernment, labor and others, shares

If

•

Tax

innroecoH

than increased
outlays, appear to be the most
likely initial avenue of approach,

assuming There is

in

general

tv,on

cor¬

upon

ican industry has experienced a

pronounced than that whether the economy can best be

more

1948-49.

row

Business

a

.

1

-4

next

investment.

to-

extent and duration of any eco- loss to the Treasury, by granting
nomic downturn is likely to de- tax relief to individuals (to stimu-

when

effectively

more

of

justified

the

that

directed

be

ivate

r,Q,1]nri.„c

reductions,

4%.

of

course

HWe."

inroads

make

great advances have been made in

in

in

.

about

by

dropped

out

substantial

There

.

probably

and

product

national

sonal

either

adjustment.

any

carried

the inherent soundness of a
business decline by levying long-range approach to ithe plantaxes or reducing expendi- ning of plant and equipment ,pro-

example, ~
perand

con-

thus

may

defer

or

new

should

downturn

porate profits.

other than boom years,
with

seems

in a

be

business

moderate

a

may

can

little likelihood of a concerted effort to balance the budget prove

sustain ac¬ fairly significant. Ori the other
tivity longer than anticipated. A hand, the comprehensive measures
of
aggregate economic activity,
'tax reduction might provide some
economic stimulus. A real change such as gross national output and
momentum which may

if

continued indefinitely at present

downturn would increase the

period

The economy at present

assurance.

.

.

iQW

13% from the high quarter in 1948

eyen

jumped from less than two million insurance benefits, and the like)
to above four million within a few would increase, while receipts are

great

any

Thefederal

Reserve

huge and

our

to

economy

with

future

'still

many

at work in

are

fairlt immediate and
effelts upon some of fore the Government would adopt

to the low quarter in 1949, and penditures (such as farm price f°r expansion
unpredictable the
number of unemployed supp0rt programs, unemployment more limited,
the

in

business

of

course

have

can

Si that

such

taxes, corporations have succeeded

businesses plan their plant and in building up their equity preequipment programs soundly on a dominantly out of retained earn¬
pnninmpnt nmorams cnnnHiv nn => j — .•
n- - -l J ^
,
long-range basis and avoid the ings. Furthermore, depreciation
charges
have
been
mounting
temptation to shelve or reduce
them at toe first sign of an easing rapidly in recent years; together
m economic acti'ity- The expan- with retained earnings, they are
sion of. plant capacity has admit- likely to provide corporations
tedly been pressed with great with sizable internal funds

: Easy credit policies will probably be accompanied by a larger
~- 1

future. It would not be
surprising to see a lower rate of
•activity take hold well before
ly

amount, but also relative to longterm debt, than prior to World
War II. Despite prevailing high

government hold back on their purchases, at downturn,

in.

*

spending, capital investment, and
consumer
purchases of durable

31

(2331)

Chronicle

research,

impr0Vement and plant
modernization
in the period

J. Clayton Flax Adds
(Special

to The

Financial

SPRINGFIELD,

Chronicle)

Mass.—Hyman

bas become associated

with J. Clayton Flax

Main

& Co.

Walston Co. Adds
(Special to The Financial Chronicle)

SAN

FRANCISCO,. Caljf.—

aJ^7

duct

ahead
ings

Although business borrow-

have been substantial in re

cent years,
tal

is

ftedplLito

today

not

WaMon

T

Co

^tg^^gtee" members
tbe New york

corporate equity capi- Stock

larger

1562

Street.

of

and San Francisco

Exchanges.

He

was

for-

only in merly with Hannaford & Talbot.

32

The Commercial and Financial Chronicle;..

(2332)

Continued

from

inclined

15

page

to be pretty smug and
complacent about our industrial
today were it not for one
thing:
*
And that is this unending strife
between management and labor.

have

Preserving Industrial Peace—
Our Most Pressing Problem
But let us fact because I happen to be one
admit, honestly,
that this was of them, myself.
So like any other employee, the
-their doing.
And, ironically, it
also proved to be their undoing; professional manager can succeed
€6r fortune and power.

for in the end, the tools and ma¬
chines which they built became so

Sbig,

so

complicated and

so expen¬

only by serving his bosses loyally
and to their satisfaction.
But he
has

a

great many such bosses, and

Barons."

One

these

the

$100,000 worth of tools and ma¬
chines in some of our largest in¬
And

dustries.

•must often

single

a

employ many

4«uch workers.

and

—

there

can

fire

more

are

—

than

customers

Then

me.
a

hundred

who have to

Widespread Ownership of the
Modern Corporation

the

industrial

is not

manager

dollars

each

to

year

Management

make

work

pleasant,
more rewarding and more satisfy¬
ing to the men who perform it.

But still

more

have failed to

we

secure

than

year

before in its his¬

ever

to

seems

that the

me

exactly simple. He stands in the
leaders of management, on their
That is why it is no longer pos¬ great, unhappy middle. His stock¬
sible for one individual or for one holders want larger dividends; his part, would do well to study those
email group of individuals to own workers want more pay, and his strikes, to determine their causes,
to search out the errors that were
«iny large enterprise in America. customers want low prices, high
And that is also why the Dynasty quality and immediate delivery! made, and to avoid their repeti¬

tion in the future.
And with a
has ended forever. And his job—Heaven help him—
little soul-searching of the same
is to please them all!
kind on the part of Labor's lead¬
-or the ruthlessness of which we so
Fortunately, however, the con¬
•often accuse these men, but be¬ flict between these three groups- ership, we might — between us —
to
avoid
this
of bosses is far more apparent manage
useless,
cause they literally worked them-

The other is this disastrous idea
that

in

a

something

power depends on the tools that
corporation.
•'
Today, most of our big compa¬ he uses, it is to his advantage that
nies are owned by hundreds of profits be large enough to attract
thousands of people; and several the capital necessary to provide
€nrge corporations have more him constantly with better ones.
But since the tools will not yield
owners than employees. But since
it is not humanly possible for all a maximum profit unless they are
-these owners to run the business skillfully, efficiently and steadily
■themselves, they must hire profes¬ employed, it is to the owner's ad¬
sional managers to do the job for vantage that wages be high
them.
enough to attract the finest type
And that is the great, funda¬ of workers to their plants.
And
mental
change that has taken since the customer will buy only
jplace in the character of industry where he can get the best prod¬
and management during the pres¬ ucts at the lowest prices, it is vital
ent century.
Big Business is no to both the worker and the owner
longer run directly by the men that prices be kept at the lowest
xvho own it; and it is no longer possible level.
owned primarily by the men who
So the responsibility of modern,

the

in

never

nobody
The
lose

and
so

the

do

in

companies which

it.

other

not directly

dispute

all.

at

In

short, everybody loses; and
certainly all of us would be better
off if strikes did not

Why

then

occur.

and what

they

do

continue;

industrial leadership

can

offer by way of preventing them?

Suggestions

Well,
for

tions,

Peace

friends, I wish I knew;

my

if I

Industrial

for

could

those ques¬

answer

would

I

medal.

really deserve a
since I can't, I should

But

professional management—as I see like in the few minutes remain¬
of today it—is to
operate the company to
ing to me here this evening, to
is a "hired hand" who no longer the
joint advantage of all three of
give you—for what they may be
Jhas a purely proprietary interest
these groups. It must serve their
in the enterprise.
Let me hasten common interests at all times. But worth—one or two personal ob¬
servations and opinions based on
to add, however, that he does, of
in doing this, it necessarily serves
my
own
experience
over
the
course, have a direct and compel¬ the
public interest; for the cus¬
years.
ling personal stake in it, because
tomers, employees and owners of
3his entire career, his reputation
A wise philosopher once said:
American Business are the Ameri¬
The industrial manager

livelihood depend can
public, and ther interest is the
-upon his ability to manage the
public interest.
•company successfully—to keep it
And that is a point which I want
aound and prosperous and to pro¬
to emphasize especially. I know of
vide for its necessary growth and
no way by which any large enter¬
-development. And the better he
-does this job, the greater his re- prise in this country can survive
today unless it is managed in the
«Urard is likely to be.
long-range public interest—unless
But the profits of the business,
it is ready and able at all times
as such, no longer belong to him;
to meet the essential needs of its
tbe payroll no longer comes out of
customers, in peace or in war; and
4his own pocket; and the failure of
his

•and

a

very

unfortunate

dozen

competitors

longer assure his future
iwelfare and security. So he has
no

can

«iothing whatever to gain by
starving his fellow workers, gyp¬

ping his customers, or indulging
in the practice of monopoly.

unless

it can provide for its fu¬
growth, in the service of gen¬
erations yet to come.
ture

have

which

been

in¬

vested in it by

all the other own¬
his own holdings are neces¬
sarily so small as to be negligible
in comparison. His dividends,
therefore, constitute an equally
ers,

^negligible part of the total profit
of the business; and he has no
Ihope on earth of ever building the
Idnd
of
personal
fortune that
sprang from industry in days gone
%y.
Tax Executives

Are Also

In fact, many

As I look at American Industry

today, I

am

satisfied that manage¬

utives in

some

of

our

exec¬

largest

cor¬

porations have spent a lifetime in
*iie field of industrial management

needed

to

deal

in

with

a

times,

our

whole people in the past"
—and while he made that obser¬

whole national economy.
We shall never produce more
wealth, however, by fighting over
•

the profits of the owners; nor will
workers ever gain wealth and

our

security for themselves by trying
whittle those profits away; for
if we persist in doing that, then
one
of two things must happen:
Either

about

truth

And

that

centuries

ago,

is

obviously timeless.
today, it seems to me

so

greatest opportunity, on
of the pic¬
lies in the field of human

management side

ture,

relations.

We

human

sense

find

the

this

dustrial

best

be

realized

to

maintain

constantly
and

understand

in¬

our

communications

to

those

production.

mass

strive

management

come

which

by

of

also

improve

be

quick to
aspirations and to

can

age

must

both

must

means

aspirations
in

four

our

the

must

we

having

to

other—a
the

boost

phony illusion of
shall end

we

ished

security, and finally, wide¬

spread unemployment.
So

is

it

think,

time

true

production in
world:

and

so

to

pay

today
to

pay

if it

were

downs

not for strikes and slow¬

and

featherbedding

and machines and limit their

men

earnings accordingly.

be

power

wages and

living that

even

known.

And

clearly

it has been fair to the
customers because the price of our
products—measured in terms of
the hours of work necessary to ac¬
on

this

Yes, modern professional

from

agement has served the public in¬
terest.
It has provided the jobs,

could

page

I

am

seek to do so, they

may

succeed in

never

dustrial

of

gaining in¬

until

peace

the

leader¬

sure

is

of

the

most

all—must

be

based

mutual

confidence,
understanding.
Now,

that

it

in saying
is

always
in

mote

eye;

time

labor

but it
has

the

seems

come

achieve

firmly

respect

it
on

and

for

enlightened

opportu¬

cooperation

between the leaders of Labor and

Management. I
of

am not suggesting,
that Labor should as¬
of the responsibilities

course,

sume

and

any

functions of Management,

that

Management

and

try to

should

the

run

or

in

step

union;

but I

suggesting that if we can ever
away from, strikes, disputes,
blunderbuss bargaining, we
have a magnificient opportunity
to start working together in our
get

and

own—and in the
I

believe

shall, and that
way

we

can,

that

we

must find the

we

industrial peace.
I see
the fact that—just as a

to

hope

public—interest,

that

in

welcome

great

and

taken

place

in

the

change has
character of

industrial management during

past 50
may

the

similar change

years—so a

be taking

now

place in the

character of Labor's leadership.
I believe that the most success¬

ful

and

which

the

most

powerful labor

call

never

never

have

to

fulfill. their

faithfully.

strike

a

do

at

so.

labor

all,
They

contracts

They will strive—not

to destroy—but to promote mutual
confidence and
tween
And

understanding be¬
and worker.

management

they will
that the

insist, above all
only limitations
which shall ever be placed upon
the
productive power and the
earning power of any of their
else,

shall

members

be

the

individual

skill, the ability and the capacity
of the

man

himself.

.

With that kind of union leader¬

ship, and with responsible,

pres¬

ent-day management, there is na
ture progress.

ard

of

There is
so
high

living

stand¬
that our

no

people cannot attain it.

rible

weaknesses.

One,

yott

as

is that it pauperizes peo¬

ple

develop,

or

at least unveil, the

ate in

carrying out its

purpose

to

who

relatively

are

helpless

in

protecting themselves, this adds
up to a pretty dirty trick. A much,
more devastating weakness, how¬
is that inflation works like

perpetuate prosperity. But it has

ever,

already made it clear that, at least

dope. The habit grows and as it

in

grows,

the

initial

design, it does not
to make continuing price

propose

inflation

a

central and controlling

part of this structure. It has done
this

perhaps primarily by vigorous

efforts to cut the Federal

budget.

same

see

it, this

cause

basic

economy run.

since
one

the

of

distribute

the

them

dollar—in

assume

to

invited

by the

in

the

make

World

incen¬
our

War

II,

incentives both
has

been

words

and

hence

its

that it is with its eye

cocked

to

other

value

we

Almost continuously

end

of the greatest

its

of

adhesive power.

struggle to

a

shift
upon

that

which holds our
together, has lost

money,

kind of economy

I

means

in the midst of

required to get the

are

effect, with the logical end

result being economic collapse be¬

"Incentive"

are

larger and larger doses of

inflation

most

Shift From the Inflation

steady reduction in the value of

at

to

nity

which af¬

to

broad structure of economic policy
within which it proposes to oper¬

peace—if

are

a field
unlimited

ple with relatively fixed incomes.
Since these are largely older peo¬

The Eisenhower Administration

ship of Labor displays an equal
to attain it; for industrial
we

then, is

almost

know,

to buy goods and to produce

desire

fords

has not been in office long enough

other's

earnestly the leaders

living.
Here

16

profound significance.

A

we

any

The General Business Outlook
which

As I

above all,

how

the
man¬

of labor

wiped out, once and for all, I

Continued

And they
without
increase
in

moreover,

conceivable limit to America's fu¬

If all these restrictions upon the

productive

problems better.
But

of

work

rules which restrict the output of

will

has

uses.

tragic truth in America
is that industry's capacity
could be greatly increased

industry

the world

their

at

now

prices that would add to their cost

will

country of the

any

the tools that he

may

each

do this,
necessitating

system of

any

that

men

could

and

that industry's
higher wages is
not
governed primarily by the
company's profits; but that it de¬
pends entirely upon the value of
what the worker produces with

capacity

and efficient facilities that exist in

the richest standard of

tools and

same

are

present earning power.

fact

that is

the

they enjoy the highest

economic

under

a

it has

that

unions of the future will be those

recognized, I

we

simple

one

relied

Clearly

prosper¬

with in¬

up

adequate profits, poorer tools, less
production, lower wages, dimin¬

tives

today.

which results only

course

make

world

go
on
raising
hand, and then
prices, on the

wages on the one

ter

been fair to the workers because

machines

of the

many

of our industries

—using exactly the

to

because they continue to
supply it with the most productive
owners

workers in many

am

a

vation

its

from each other.

task, of course, is to join
together in producing morewealth,
not only for ourselves, but for our

must recog¬
nize frankly, I think, that no mat¬

earth.

of the top

than

and

quire them—is the lowest

Employees

individual

Job

a

sums

single

We

of course, that he is ment has done a
good job in meet¬
minor stockholders in ing these difficult responsibilities.
tbe company; but in relation to the
Clearly it has been fair to the
vast

is

Management Has Done A Good

It is true,

usually

"More

take

But the

-

irun

—

owners

many

are

the

in

owners

lose

workers,

customers

involved

the

lose,

customers

the

try to

Our real

that is

workers

opposite

on

and

collec¬

are

public interest; and
wins them.

ever

and

and

one

do know: that strikes

we

sit

away

in

senseless conflict. For there is

bargain

.

table

ity—or

thing

to

must

we

of

JEt fell—NOT because of the greed

*

order

tively,
sides

4©f the Tycoons

They served than real; for their long range in¬
their purpose and they passed— terests are actually identical.
Since the worker's earning
leaving in their place, the modern

natural

are

eternal

protect the

health and safety of our workers

tory; and it

•selves out of a job!

wholly-

unrealistic notion that Labor and

firmly believe that

enemies; and that I, for
thinking— example, am in some way a foe,
or
antagonist, of the men who
the most pressing responsibility work in our mills.
Actually, of
that the managers of American in¬ course, we are fellow employees
dustry face in this day and gen¬ of the same company, performing
eration.
We pay, as I have said, different assignments in our mu¬
the highest wages in the world. tual interest, as the nature of our
We spend hundreds of millions of business requires.

be kept happy if the
is to stay in business.

of

,

Here—to my way of

corporation industrial peace.
And beyond
We are confronted by the dis¬
thousand that, my 300,000 fellow workers
couraging fact that there were
are not always too easy to please!
more strikes
in this country last
As you see, therefore, the life
company

.

is the most difficult problem and

285,000 shareowners who —to

thousand

hire

.

disposal, and without lengthening

even the richest of men
they often appear to be sharply at and to help provide for their fu¬
longer possessed enough wealth odds with each other. In my case, ture security. We spend additional
for example, I figure that I have millions on the betterment of hu¬
•to acquire them alone.
A hundred years ago, the aver¬ about 700,000 of them. First there man relations within our
plants
are

?
the

is

their hours of work in any way—could substantially increase their

mo

worker had about $500 worth
of tools at his disposal.
Today,
Iiowever, he must use as much as

of

and

sive that

age

disappeared along with the

"Robber

future

Thursday, May 28, 1953

and
the

price

ultimate

the

chronic

disaster

resort to

inflation that the Eisenhower Ad¬

ministration is trying to get away
from

have

it.
a

have

we

If

it

succeeds

we

shall

far stronger economy
had

at

any

than
time during

this

postwar period, and this in
spite of the fact that all sorts of

new

highs

have

fevered rushes of

inflation.

been

hit

by

production.

Why keep money if it
But if the effort is to succeed
spoiling? Exchange it for goods!
business will be required to do a
Why hesitate to produce at top
lot more exacting job than it has
speed? What you produce will be
been
required to do to enjoy
worth more
is

that, I realize
easier
other
to

when

me

to

see

fellow's
that the

responsible
leadership ought
to
rid
of two
old-fashioned and

later.

In view of the fact that

had

a

boom

almost

great

we

have

continuously

prosperity since the warrelatively simple thing
produce profits when, as it
does, price inflation keeps prices
running ahead of costs. Likewise
It

is

a

to

since the end of World War II,
the tools and the goods which our itself
it can be, and in fact
having been able to people i have needed to sustain
is, argued
outworn ideas which seem to lie
^accumulate as much as a million their economic welfare
and their at the root of most of our
that the inflation policy has it is a
relatively simple operation
present
^dollars. And I know that to be a national
security; and I should be difficulties,
and
which - should worked well. But it has some ter¬ to round up customers when d

"ivithouf

ever

■

'

'■




i

Volume 177

dollar is

Number 5224... The Commercial and Financial Chronicle

spoiling

their hands

on

Continued

from

*

(2333}

they were considerably below the comparable 1951 total of 191
and were only one-half as numerous as in prewar 1939.
'

5

page

and thus
it

is

helping to herd them in;
far more exacting opera¬

a

tion when

have

consumers

The State of Trade and

such

no

compulsion.

Specifically it

to

seems

that

me

if the effort to escape from

is to

do

the first quarter indicated a clean-cut boom—with washer,
dryer, and ironer sales jumping 35.5% over the same period last
year, states this trade authority.
Although at least two major
appliance producers announced cutbacks this month, the bulk of

vastly better selling job than

a

succeed, business must

it has been

required to do at

time since the end of the

the

any

In

war.

industry's output did not falter—and in some
higher. This in a highly competitive market

up

selling I include everything from
product design through advertis¬

estimates

ing to door bell pushing. Also, if

industry extra

safely to reliance
traditional economic in¬

upon our

centives
times

believe

I

in

there

will

steel

be

must

faith

that

the

An

costs

price

increases.

run

have

been

raised

was

Auto

is

going to carry out its
plans for capital investment suc¬

work up
by steel

general

Wholesale

bring another round of increases in base

General Motors

Corp.

and

&

past week.
week
date

earlier,

the

funeral

that

of

Profits

Excess

Tax

other

only thing
not
is

about the

disreputable

growth.
requisite

its
of

A boost in the annual

It

name.

from

economic

anticipate

I

that is

tax

is

killer

deadly

a

that

cooperation

will

lose

can

by

This

grains

hike.

This

future

10-cent

a

previously had offered 5 cents.

be

Steel Output

coopera¬

the

appliance

industry

for

an

early

lar

output.

the

leaders

munity

of the

must,

bolder
than

reasonably hope for,

and

business

I

com¬

believe,

more

do

job

courageous

they have been called

a

upon

to do at any

time since World War
II if we are going to succeed in
getting away from progressive de¬
as

basic driving force of our

a

While

economy.

stocks of
Will

We

And

what

Return
if

to

the

effort

from inflation

away
ceed?

The

Inflation

answer

to

doesn't

while

suc¬

to

seems

car

one

me

new

'//
alarmingly large
it has been producing in excess of sales. Auto

auto
cars,

industry has not built

inventories

dealers'

get

the

a

year

American

The

of

On

Institute

Steel

and

announced

that

.along

go

that

with

If

you

government

the

will

and

vene,

it.

,

mated

promptly,

try

to

to

maintain prosperity if such an op¬

eration

read

me

to

comes

you

in

be

Eisenhower's most clear-cut

paign pledges. He

made

speech

on

last

in

year:

the

If

Harlem

"So I

finest

hearts, that
Washington
of

we

can

in

in
25

and

of

power
mated
at

recession, and depression,

any

that would put honest, hard work¬

ing

and

men

out of work,

women

the full power of private
of

will be

mobilized to

that that does not happen. I can¬
not pledge you more than that."
If

the

government

necessary

to

indicated

by this

f i

in the

move

n

d

s

Car

manner
•

obviously
of

the

be

liberties

our

business

since I

am

sure

our

liberties

as

it

will

heavy

loss

a

of

members

community.

these liberties is
tress of

pledge,
the

at

And

are

at

stake,

too.

So while I have been dealing with
the

business

terms

outlook

of-/profits,

in

wages,

grubby

prices,

etc., I have, in effect, been talking
about

something of vastly greater

dignity
the

and

outlook

economic,

importance.
for

social

your

and

That

is

freedom—

political.

did

53,848,000 kwh. above that of the

"■
.

'

F'

market

was

developed

a

turned

attributed to the improved outlook

and the decline

crop

firmer

last

in wheat prices.

week

cotton

in

relatively

slow

consumption during the five-week April period! afc

entries for the season

total

2,024,100 bales, against

to

a year ago.

Improved

as a

f

Result of

many

the nation quickened perceptibly

Wednesday of last week as mild weather •

attractive promotions encouraged shoppers. As during r
retail merchants generally had larger sales*

a

year

ago.

The total dollar volume

mated by Dun

pre¬

set several weeks ago

most retailers of durables stressed relaxed

as

a

credit terms.

of retail trade in the week was esti¬

& Bradstreet, Inc., to be from 3 to 7% higher than.
year ago.

' f

Regional estimates varied from the com¬

parable 1952 levels by the following percentages: New England
+ 1 to +5; East and Midwest +3 to +7; South and Northwest

-j-4

to -f8; Southwest and Pacific Coast +2 to +6Retailers of consumer durables noted a slight

demand

for

many

items although the total

remained well above

a

year

models remained lethargic.

in used

slip

in

the-

spent on such goods*

'

before.

buying of automobiles increased

The

mildly but the Interest
v

/

automobile supplies, hardware andt
small radios.
The consumer call for television sets, washers*,
freezers and large appliances continued to weaken.
The volume of trading in most wholesale markets in the*
In

'

Output Hampered in Past Week by

Supplier Strikes,/

rising

demand

were

period ended on Wednesday of last week did not vary appreciably
the high level of recent weeks. As during the past several

from

total orders were slightly higher than a year earlier;
year-to-year gains continued to be in the call for
consumer
durables.
Inventories remained slightly higher than
months,
the

a

larger

year ago

with the most pronounced rises in consumer durables
merchants were more confident about near-term

Passenger

•

car

production

in

the

prospects than they were several weeks ago.
Department store sales on a country-wide basis, as taken from
the Federal Reserve Board's index, for the week ended May 16>

.

,

United

States

last

week

preceding week. In tber
that of the

dropped about 8% because of the wave of supplier strikes, accord¬

1953, advanced 7% above the level of the

ing to "Ward's Automotive Reports."

previous week an increase of 9% was reported from
similar week of 1952. For the four weeks ended May

It

vised)
like

aggregated 130,624 cars compared with 141,905 cars (re¬
in the previous week, and 92,475 cars turned out in the

1952

week.

*

Total output

increase of 5% was
.

for the past week

was

made

up

of 130,624

Retail trade in New York the past

cars

according to trade observers, and

and

23,706 trucks the previous week and 92,475 cars and 25,308

6%

trucks in the comparable 1952 week.
'

-

week

ended

May

21

industrial

from

failures

declined

the three-month

good indeed

ualties

more

numerous

than

a

year ago

to

156

in

the

of 198 in the
Although cas¬
when 145 occurred,

high

preceding week, Dun & Bradstreet, Inc., reports.
were

as

scored over the like period one year ago.

According to the Federal Reserve Board's index department
weekly period ended May 1$,

Business Failures Decline Sharply
and

were

store sales in New York City for the

fc.

.

16,1953.
of 5% above 1952.
week was "seasonally good,*
a consequence, gains up to

reported. For the period Jan. 1 to May

20,937 trucks built in the United States, against 141,905 cars

t

(

16, 1953, an

department stores sales registered an increase

and

which will help you make it very




the

Consumer debt held close to the record

issue of May 21, 1953 the increase in output

<

Commercial
,

and

Most wholesale

U. S. Auto

I

hope that I have said something

the

receipts than in the similar week a year earlier. Durable goods*
a larger share of shoppers' money than they

Loadings Move Ahead 1.9% Above Week Ago

essential but¬

personal and political

these

and

Loadings of revenue freight for the week ended May 16, 1953,
totaled 779,805 cars, according to the Association of American
Railroads, representing an increase of 14,394 cars, or 1.9% above
the preceding week.
'
f
The week's total represented an increase of 25,357 cars, or
3.4% above the corresponding week a year ago, but a decrease
of 29,670 cars, or 3.7% below the corresponding week in 1951.

large measure of
an

sources*

outside

continued to attract

:

it

foreign

most of the past year,

Advances of Past Week

•

limited

Retail trade in most parts of

16, 1953 over that of May 19, 1951 should
have read 1,399,836,000 kwh. in place of
6,559,218,000 kwh., the
actual output for the latter period.)

see

buying

the period ended on

in

for the week ended May

government, of the Federal Gov¬
ernment

our

in

prices

the level of

(NOTE—In

industry,
municipal government, of state

and

sections

Mild Weather and Attractive Sales

distributed by the electric light
industry for the week ended May 23, 1953, was esti¬
8,012,902,000 kwh., according to the Edison Electric
was

wheat

good demand for the cash article.

a

Trade Volume Further

100.7% of capacity.

The current total

Winter

some

were

aided by

an average

ceding week when output totaled 7,959,054,000 kwh. It was 866,698,000 kwh., or 12.1% above the total output for the week ended
May 24, 1952, and 1,360,203,000 kwh. in excess of the output
reported for the corresponding period two years ago.

foresee the signs

can

offerings

bringing

Institute.

the finest
mobilize in

domestic

which

459,800

The amount of electric energy

a

this.

you

or

Electric Output Extends

cam¬

Oct.

pledge

brains,

2,091,000 tons,

President

of

one

at

let

order

lows for the crop year as the

new

both

920,000 bales, equal to a daily average of 37,300 bales. CCC loant
entries dropped sharply in the week ended May 8 to 16,300 bale&,

of 100.6% of
capacity for the week beginning May 25, 1953, equivalent to 2,268,000 tons of ingots and steel for castings as against 99.8% (revised)
of capacity, or-2,250,000 tons a week ago.
For the like week a
month ago the rate was 100.3% and production 2,262,000 tons.
A
year ago when the capacity was smaller actual output was placed

doubt
inter-,

in

from

45,800 bales in the latest week. This compared with 50,100 bales*
the previous week, and 39,100 in the corresponding week a year
ago.
Export inquiries were light and sales continued small ins.
volume.
The New York Cotton Exchange Service Bureau esti¬

the

capacity for the entire industry will be at

whole set of government
controls direct and indirect which
the

last

$40,000,000 Export-Import Bank cotton loan to Japan. Sales o£
cotton in the ten spot markets continued to decline and totaled!

operating rate of steel companies having 93% of the steelmaking

and

evidence

Supporting influences included unfavorable weather con¬
tended to delay field operations and plant growth
much of the belt and the completion of details regarding a

over

May 1

Iron

demand

Winter wheat

ditions

up

obvious. We'll return to inflation,

in

continued

grains

showing considerable weakness while-

trading.

autos

new

in

of the Southwest.

areas

Cotton

have been creeping up about
they averaged 12.8 cars per dealer,
earlier the figure was 7.7, "Steel" magazine reports.

month.

a

the corresponding?

on

comparatively firm.

improvement

the

for

to the trend of business and the demand for

struction of the value of the dol¬

tion they can

were

Slowness

clue

steel, says "Steel,"
the weekly magazine of metalworking the current week.
This industry's production is exceeding demand, and for the
moment the surplus output is going into storage.
In some cases,
the producers' storage space is full and they are seeking rental
storage space, this trade paper states.
A cut-back in steel buying by the appliance producers would
be welcomed by the automakers, who have been struggling to
line up enough steel to cover their expansive production sched¬
ules, which, if adhered to, might this year set a new record for

as

297.84

small lot replacements.

to

Scheduled to Rise to 100.6% of Capacity

household

j

Visible
supplies of corn continued to drop and were reported at 23,815,000bushels, as compared with 42,124,000 a year ago. Oats were in*
fairly good call and moved up in sympathy with corn. Trading;
activity on the Chicago Board of Trade slackened the past week.:
Total sales of air grain and soybean futures were reported at
37,400,000 bushels, compared with 40,300,000 the previous week,
and 40,100,000 a year ago.
Cautious buying policies continued to rule in the domestic
flour market as bakers and jobbers restricted their purchases*

"productivity" wage increases to 5 cents

company

movements

slow

Corn

hour, effective May 29, 1953, and May 29, 1954.

an

of

drought

means

any

40,000 skilled General Motors workers will get

pay

Watch

given all the

even

cents

hourly

taxation.

But

4

Some

the

forthcoming in the field of busi¬
ness

now

and

declines in the cost-of-living figure is five cents.

scheduled—on June 30. About the

with

All wheat contracts fell to

Motors

that the most General Motors workers

as

the wholesale level.

compared

and

Irregular

The union had sought 21 cents as the permanent base.

holding

the

of

coopera¬

.

pound at

Commodity Price Level Reflects Slight

week with the bread cereal

in

wretched

is

<j
per

last year.

firmer tone,

One

high*

commodity price index, compiled by Dun
Inc., displayed a mildly higher trend during theThe index rose to 279.15 on May 19, from 278.24 »

effective June 1 this year. The union gained the 24 cents through
an escalator clause in its
contract/tied to the cost-of-living index.

key points.

crucial of them

most

a new

Bradstreet,

tion from the Federal government

some

May 19,

on

The daily wholesale

the CIO

result

at

$6.47

Gain for Week

agreed to certain changes, beneficial to its
workers, in its U.A.W. contract, which does not expire until May
29, 1955, which included: a total of 19 cents an hour out of 24 cents
gained so far will be fixed as a permanent base wage increase,

cessfully, the business community
must, of course, have cooperation

price index resumed!

and its chief function is to show the gen¬

use

eral trend of food prices at

The

base prices have been increased most of the

between

food

following the mild dip of the week be¬

the highest level since Sept. 16, 1952 when it
The current figure compares with $6.48 on the corre¬

31 foods in

Workers, according to reports, at least partly eased

General

Bradstreet wholesale

and

year

$6.49.

Meanwhile, some 126,000 auto workers were off their jobs
Friday last, compared with 80,000 on Thursday, because of a series
of wildcat strikes in parts plants.
This picture is expected to
brighten by Monday of this week because of a settlement Friday
of a Budd Co. dispute.

"

&

sponding date last year, or a drop of 0.2%.
The index represents the sum total of the price

current phase of
Steel-union wage negotia¬

its course.

the

for

the mounting labor tension in the auto industry last week.

to drive the customers in.

it

to

some

agreement

United

customers

justifying
completion
of
these
plans will show up a little later.
They won't have inflation helping
If

While

their

base

Dun

^

High for Year

fore. The index rose 5 cents to stand at

jacked

cases was

consumers

The

its upward trend last week

adjustments have been in extras, concludes "The Iron Age."

plans for capital investment

the

much

and

expected

are

prices.

ahead with

go

how

of

before major steel

pass

price increases has

tions

during the transition when

businessmen
their

Some weeks may

to return

we are

Trend to Set New

in

infla¬

tion

Wholesale Food Price Index Reverses Previous Week^

Industry

' f

In ;
of
16t increase of 5% was reported. For the period..Jan.*1 to,.
1953, volume declined 1% under -that of 1952.***-

1953, registered a rise of 9% from the like period of last year.
preceding week an increase of 4% was reported from that
the similar week of 1952, while for the four weeks ended May
the

•1953,

an

May 16,

'

34

(2334)

The Commercial and Financial Chronicle.

jWith Hornblower & Weeks
Mass. —Alfred

Jr.

is

now

blower & Weeks, 75

with

R.

Horn-

1953

Thursday, May 28,

iimimiiiiiimmiiiimiiKiuimmiEiiH

(Special to The Financial Cheonicle)

BOSTON,

Meyer,

—

t

"It Is

MUTUAL

Federal St.

"

Partly In These Business Leaders That We

FUNDS
By ROBERT R. RICH

llfllllllllllllliilllillllllllllllllllllillflllll
BOSTON
months

FUND

for

the

three

ended

April 30, 1953^ re¬
ports total net assets of $89,408,051

^

compared with $78,759,404 a year
ago.
With 4,015,399 shares out¬
standing, net asset value per share
was $22.27
exclusive of a capital

gain distribution of 35 cents
share

earlier

paid

year

the

ago

$22.36

this

asset

share

per

A

year.

value

wai

with

3,522,352
outstanding shares. The Fund has
23,735 stockholders, a gain of 3,254
in the past 12 months.
A

per

quarterly dividend of 19 cent:

share
payable May
25
to
stockholders of April 30 record has
been declared. In this connection
per

Henry T. Vance, President of the
Fund, states that beginning with
the

current

dividend, dividend
be approximately

will

payments

the amount of net investment in¬
come rather than at a fixed rate
As

of

April 30, the Fund's

vestments

lows:

56.3%
in

vested

of

ferred

•

t

CALVIN BULLOCK
'?<' X
4,
I NEW YORK
mm mm mm mm

GENTLEMEN: At
me a

Canadian Fund,

were

assets

fol¬
in¬

stocks; 24.2%
bonds; 17.9% in pre¬

stocks

and

1.6%

in

cash

treasury bills.

The

following

major

are

portfolio

three month

the

among

changes

in

the

period:

BOUGHT

obligation please send

no

prospectus on

in¬

as

common

in corporate
and

diversified

were

S.

'J.

U.

Treasury

Bills:

S.

Treasury
7/23/53

Bills,

2.25%,
$1,500,000

,

Jonds:

None.

New

Address.

England

3 V4S,

4*

Electric

System,

'77_

Preferred

$72,000

Stocks:

-

CHy

r

C.I.T.

Pub.

Service

Financial
&

Crown

Iowa

eystone

Jewel

Utilities_______

,

6,300

10,000

5,200

C.I.T.

Financial,

£0-day__^_^
Credit, 90-day_

Motors

COMMON STOCK FUNDS

Accept.,

$800,000
900,000

90-day

900,000

37/8s, '70
Light, 3'As,'72

$110,000

Aluminum
'

United

The Keystone Company
50 Congress Street, Boston 9, Mass.

your

describing
Organization and the shares of your

Funds.

ten

me

Co.,

Pwr.

Can.,

&

Gas,

Common

3%s,

125,000

'71

16,000

Stocks:

Central

Please send

Name..........

Address

City

...

Shares

Illinois

Pub.

Service—

9,000

fully managed

a

using

for

a

ure

of

its

investment

shareholders,

balanced-type portfolio

seek for

its shareholders

a

stability of capital,

to

meas¬
a

moderate

growth.
28%
term

long-term

capital

On March 31, 1953, about

of the

assets

government

were

in

short-

securities,

cor¬

porate notes, and cash; 10% were
corporate bonds and preferred
stocks; and 62% were in common

•in

stocks—21%

in

industry and

the

nearly

public utility
13% in oils

and natural gas.

may

KEYSTONE

analyzing its
financial

be obtained

from investment dealers

or

ports

LP

Parker

Corporation

Berkeley St., Boston, Mass.
FOUNDED

1925




CUSTODIAN Funds,
own position in the

life

that

000,000
than

The

to

its

in

93%

of

the

more

assets
.

of

country,
than

make

all

life

it

re¬

$200,larger

insurance

companies,
97%
of
all
mutual
savings banks, 99% of all com¬
mercial
banks, and all Federal
Savings and Loan Associations.

Continued

on

Steel.

can

ever

American

industry

their

more

page

35

is

National

glad

their

and

Securities

salute

to

these

in

which

Securities

invested."

in
some

Series,

the
of

funds

'

In order to introduce its share¬

the

to

who

men

complex

try in

of

run

modern

this country,

tht

indus¬

National Se¬

curities Series has featured in this

unique Annual Report the photo¬
graphs of 55 board chairmen or
presidents of companies whose
curities
of

one

tional

N. T. & S. A.;

F.

are
or

dent of

Standard

Oil

(N. J.); D.

souri-Kansas-Texas

Railroad;

Southern

Charles

Copper;

Railways;

Bertin Clyde

President,

President,

within

Bank

Western

report

the

are:

Wood Steel; Stuart M.

Holman, Presi-:

V. Fraser, President of Mis¬

Harry

R.

DeButts,

A.

Cox,

President

President,

of

Kennecott

Gamble, President of Gamble-Skogmo.

The

for

basis

selection

the

of

The total

executives featured in the Repor
was made as broad as possible in
order

to

the

of

seven

represent

holdings
"funds.

oicked

as

porations
oas

one

a

of

each

Executives

representing:
in

of

the

fiscal

series

largest dollar in¬

porations;

(2)

sales

in

pany,

1952

an average
investment regardless of the size
corporation,

tne

largest and
n

^iand

(3)

53.8

smallestycorporations

each portfolio;regardless of the
investment of the series.
•

-

>

f
i

-

'

v.\

a

with

$122,404,337

companies.
sales

fiscal

year

of the

com¬

46%

increase

over

largest

a

the period the number

shareholders
65.8

to

increased

from

17.7

million

Oil

of

N.

J.;

Carl

•-5

American
Business Shares

F.

Wente, President, Bank of Amer¬
ica; Gwilym A. Price, President
Westinghouse Electric Corp.;
Cox,

President

of

A

Balanced Investment Fund

Prospectus

upon

request

Ken-

necott

Copper Corp.; Ralph Cordiner, President of General Elec¬
tric;
and
Col.
Roy
B.
White

President of the
Ohio Railroad.

Baltimore

&

Lord, Aiu:i:ti & Co.
New York

-i:|;

Chicago

to

23.5 million, ah increase of 32.8%.

se¬

funds.

from

thousand, and shares

held in the portfolios
of the seven Na¬

Series

for
were

record high of $41.8

more

Securities

as

sales.

outstanding
i

,

history

the

During
of

Tne

dollar

the

National

ending April 30

the

in

of

of

Securities'

year

million,

serie| ha£

>t'

356

in

reported at

cor¬

Corporations

in

$27,576,342

Series

National

onef rf'-the smallest,

which each

assets

total

invested

Cor¬

regardless of the .size of the

is

against

Securities

were

(1)

whicb(J each

vestment ami

photographs

the

of

amount invested

corporations represented by the 55

cross-sect'O"

Among the executives pictured
in the Report are Harlow
Curtice,
President
of
General
Motors;
Eugene
Holman,
President
of

Charles

Whitman,

B.

photographs carried

other

'

Standard

Robert E. MacNeal,'

Carl F. Wente,

Curtice, President of General Motors; Eugene

poli¬

men

achievements

fields

National

great

Curtis Publishing;

than their

partly in these

holders

Left to right in the lower row are:

America

Among

and

American business leaders and to
note

President.

Cream of Wheat Corp.;

J. T. Whiting, Board Chairman of Alan

the

measure

direct

and

They have

various

Krehbiel,

Harry

Pacific; Cleo F. Craig, President of American Tel. & Tel.

stockholders," the report said,
the men who head the big

Series

top:

Bull, President,

Crocker, Board Chairman of Columbia Gas System; Harlow H.

one

report,

are

of

Securities

National

right,

F.

President,

65,000

over

complement of brains, imagina¬
tion, initiative, vitality and man¬
agement ability.

rea¬

sonably good and dependable rate
of income, and an
opportunity for

Investment Fund

an

SHARES of New England
in these qualities that an invest¬
Fund have been qualified for sale'
ment is made whenever shares in
in Wisconsin by the
Department1 their
companies are bought.
In
of Securities of that state.
New this

vide

A Mutual

sent

of

of

cies.

THE

England Fund, which was founded
May 26, 1931, is operated to pro¬

State.

&

"It is

program

200

its
"to

prospectuses

D-66

Prospectus

ties

companies

Bonds:

Florida

takes

by National Securi¬
Research, sponsors and

managers
Series.

debt

Commercial
General

Report

"No

.

.

Catalin Corp.;Joseph H.
Sutherland, President, J. P. Stevens & Co.; H. G. Bixby, Presi¬
dent, Ex-Cell-GbCorp.; Charles M. White, President of Republic

shareholders

11,000

.

It

to

Daniel

A

the theme of the An¬

was

nual

SOLD
,

freedom?

7,500

Lighting & Power

Tea

Notes:

V

That

9,600

of

5,550

Custodian Funds

left

re¬

Plant?

climate

Zellerbach

Southern

Natural

of these and more—it takes men."

3,500

Traders Finance "A"_.
Trane Company ___;

BOND, PREFERRED AND

great?
Location?

18,000

West

Ex-Cell-O
Houston

an

25,800

^

,

South

industry
sources?

6,000

Arizona

"What does it take to make

Co.,

Stocks:

Central

leaders of corporations carried in the Fund's portfolio, shows,'

5,000

4.60%

Securities' Annual Report, featuring

COVER of National

THE

G. BURKE

CARTER

5,000

____

Pacific Lighting, $4.75
Southwestern Pub. Service

Oomnion

By

Shares

Georgia Power, $4.92

Atlanta

—

•

Los

Angcle*

^Volume 177

Number 5224... The Commercial and Financial Chronicle

Continued

from first

have

I

page

who

those

Let's

By-Pass UN in Korea

least

be

undertaken

occupy

After

Europe.

all,

225,000,000

likely to

In any event, I think we are
bound to the policy of preventing
Communist
aggression
where it

ly free

so

certain

their

use

Communists

tacked.

be

can

reasonably
reasonably hopeful that

or

they will
the

we

arms

if

to

The

and where it

occurs

at¬

are

difficulty with the United
as

a

of

means

preventing

military

aggression

from the

beginning. I pointed out

obvious

was

that

soldiers

continent

of

about
if

we

were

which could be used

any

of the five

United

of
Nations

reserve

to

power

united

veto

action

to

powers

against them¬

selves and against any one of their
satellites. •>.
program of

IN

bringing

WASHINGTON:

another

As

phase of its
investment and mutual fund informa-i

more

The

United Nations and Korea

;

We. made

,

rely

Nicholas, Executive

the

far

Continued from page 34

$3.21 in the
corresponding period of 1952, the
company announced yesterdav.
Uhdistributed earnings of I.D.S.'
wholly-ownsd subsidiaries were
$778,574 -or $2.68 per share of
or

I.D.S, stock against $378,035 or
$1".30 per share, making the total
increase in surplus $1,784,266,
first

to

$6.14

310,5-^9

pany stated.

SALES
up

in

ago,

the

com¬

/'/

OF

Delaware Fund stood

well in April

cline

share in the

per

year

a

the

despite the de¬

stock

market

during

that
month, W. Linton Nelson,
President, reports.
April sales, he said, amounted
to $322,000
and compared with
average monthly sales of $338,000
during the first quarter of this

Sales

year.

of

the

Fund

for

the

first four months of 1953 amounted
to $1,336,000 and were 20% high¬
than the average of the Fund's
monthly sales during the last half
er

of 1952.
"I
our

in

the

impression

from

sales since the market decline

March," Mr. Nelson observed,

"that

the

small

investor

doesn't
share in the forebodings of many
of the market professionals.
Our

from

reports
on,

business

our

NEW,

economy."

illustrated

.

Group Securities' Fully Ad¬
ministered Fund, its investment
policy is compared to the conduct
of any careful driver on a
long
trip.
.

.

To

quote in part:

are
favorable few troops, in addition to those
generally are best which we had to send to Korea.
for 'speed,' but in times of busi¬ But Russia returned at once to the

ness

that

prudence

more

placed in bonds.

thereby

Security Council, and when Com¬
be munist China attacked, then the

may

money

While

'speed' is United Nations failed to take any
'safety' is in¬ action against the real aggressor,
and from that time until today

reduced,

creased."

has refused in every way to

A

PHILADELPHIA

printing and
stationery
company,

action

reaching

"As

a

a

risk.

You

tirement

fund

for

its

one

of

the

leading balanced

tual funds in the

Thomas

Shaw's

M.

mu¬

East.

but the General Assembly
has absolutely no such power un¬

the

to

speed record.

under

that

all

fund

contri¬

be

to

are

trust

a

agreement.

at

low

cost, keeps
at

penses

a

operating

minimum and

hazards

on

the

road

conditions.

achieve

the

Your
best

which

ex¬

York

starts

five-minute

tion-and-answer

going to shock
people who still beI be-

lieve in the United Nations.
the

withdrawing

or

'

^

in

them

retreat
.

.

ar,e worried

we

about

country

the

...

here m this
dropping of

Russian bombs on American cities

United

Nations

this country,, in which,, case our
European expenses would be of
doubtful value.

my¬

.

*

.

Difficulties^ in

Maintaining

•.

ques-

over

station

WO% The program
called, "The ;jK-P Key."

''Surveyjj. have
said,

shown,"

think

"that-

of-families

should do

best now

our

away

of Wall Street* Our effort will be

-

.to

answer

questions

is

to

the

of

increasing

some

of the elementary

we-are

public as^

most

result

interest

asked

A Korean Truce Not Solution

Even the best truce under pres¬
ent

conditions

along

of widely
in

create

an

an

will

be

extremely

It will divide Ko¬
unnatural line and

unstable condition likely

to bring war again at any

will

release

Chiang

million

a

who

soldiers,

moment.
Chinese

mutual

Korea, because in Eu- all the Iron Curtain countries. It
have practically aban- seems clear that Mr. Churchill
entirely.
When we and
the
French
administration

we

it

adopted the North Atlantic Treaty,
we did not ask the United Nations
leave, and
We

claim

tion

did not consult it.
that such an organizawe

formed

be

can

the

under

terms of Section 51 of the Charterl

and

perhaps

mind it is

it

But to my
antithesis

can.

the complete

itself, and while it

of the Charter

not violate the Charter, it
certainly substitutes a military almay

for

liance
a

means

Nations

United

of preventing

gression.
NATO,
and

the

as

Soviet ag-

following
the
Greek
agreements and the
arrangements with

Turkish

moved

be

China

for
or

ised

clearly

is

a

military alii-

^to'^the

to spring
which is

oYZy

M

attacked,

nation

either

by the Russians or by any other
nation,
including one
of the
'

..

Our obligation con-

NATO group.

L
for

tinues

on

20 vpars
years

today, as since

So

1947 in Eu

1950 in Asia, we are
really trying to arm the world
against Communist Russia, or at
least
furnish
all
the assistance
which can be of use to them in
and

rope

defend Europe.

we

tion of Korea under free Koreans,

pledge against further
pansion in Southeast Asia. If
a

once

make

this

matter what
ment

for

about

united

we

present truce,

ex¬
we

no

out in the agree¬

further

Korea,

it

defend

that

we

fight

of

case

attack.

should

Russia

a

have

I

on

sudden Rus-

felt

always

not

attempt

to

the

ground

on

the Continent of Europe any more

than

is

China

more

in

sian

negotiations
no

to

that

assign
gladly

and

the

Poles, the Czechs,
Hungarians and the Ruina¬

the

nians

to

Soviet

the

mercies

tender

Russia

in

cut

in

and

promises

return

armaments,

for

freer

behave

to

of

some

trade
the

in

future.
rp^e

present Administration has
0f

trying to maintain this

WOrld-wide alliance against Soviet
Russia.

can

We

that

have

spent

billions

hope that it
be carried through, and only
purpose.

I

to whether

rajse here the doubt

as

r js jn

over any

period of

possible

long

years

» is pretty hard for the United
States to claim the right to

?ff J;ra<j?e chan"els. which have ex"ted for centuries. I have no
doubt
about the
desirability

™eaesuduiiuy

of

ox

the policy if it does not go beyond

our

economic strength, but

I do doubt its possibility,
All that I can urge is two different kinds of tolerance to this
body. The first is that
be tolerant of the situation of

tolerant
we

opposing communism.
every country, that we try to unIs this policy of uniting the free derstand their problems and not
communism in time force upon them a policy they do
of peace going to be a practical not approve, either by the preslong-term policy? I have always sure of grants of money or grants
been a skeptic on the subject of of soldiers. No doubt they will be
the
military
practicability
of glad to get these, but they will
NATO. I am no military expert, be of little use to us unless the
but I have never heard an argu- policy which they are supposed
ment that impressed me attempt- to enforce is the determined pol¬

to

seems

willing

influence

of

abandon

world against

me
that from the
Certainly we seem to have unshould have insisted dertaken to defend countries like
on
Norway and Denmark, which it
a
general peace negotiation
be
almost
impossible to
with China, including a unifica¬ would

It

be

would
zone

for

will
down to
use
against ing to show that United States
against the ground forces could effectively

doubt

no

Kai-shek

beginning

by and

safety. You will accept funds."
The ""series will be re¬
greater hazard of increased corded for cross-country distribu¬
tion.

negotiations in Korea.

peace

large French in Indo-China.

a

shy

are

speed when the road appears clear

we

Southern
a

rope

Spain,

is promptly

a

will

whether

,

v,

Nations in

doned

an

Satur¬ It

program

day morning, May 20, at 9:15

soeed and




a

contemplated

unsatisfactory.

individual account.

an

combination

purpose

*

v°te themselves to a bombing of

and

allows

from investingr-because they don't
know the why's and wherefore's

increase and decrease with trrffic

me

would be wise to try to set up

we

A retirement plan of this
type, to negotiate this truce, and if we
according to the investment firm fail, then let England and our
which developed it, provides ex¬ other Allies know
that we are
from
all further
perienced investment management withdrawing

percentage

You know there

doubtful to

Charter.

by the Pennsylvania Com¬ get the United Nations as far as
pany for
Banking & Trusts as the Korean War is concerned. I

des¬

for

Nations

United

the

der

tered

careful

trying

ag¬

develop any such power. In
assembly where we have one
made by the company. Employees vote out of seventy,
it can be
with three years continuous serv¬ easily turned against us in the
ice are eligible to participate. The future.
retirement fund will be adminis¬
I believe we might as well for¬
butions

spokesman

not

an

gressor,

It is very

Shaw, President of

Inc., said

or

There has been

employees. tions to join in defeating

The plan provides that all con¬
tributions be invested in shares of

with

are

take

punish the real aggressor.
some attempt to
Shaw's Inc., announces that it has
substitute the General Assembly
established
a
profit-sharing re¬ as a body which can call on na¬
wholesale

concerned

are

tination with the least amount of

the

uncertainty

suggest

pre-determined

you

were

stocks

folder- KIDDER PEABODY & Co. in New

on

driver

in

attacked

that the Rus¬

conditions

common

rea

THE

gQ^iers

and

East

.

the

being done in
IN

e/ght

Council, and

field," he went maximum flexibility and liquidity
many of because each participant's shares
investors like what is are not
comingled, but are kept in

small

Koreans

It happened

sians

"would indicate that

the

a

..

trustee

have

probably

French port for a year,
and
or ten bombs would cut
mQst means 0f supplying our

destroy

boycotting the Security
call a conference for amendment anxious to settle with Russia and
so we were able to
persuade the others to call for of the Charter and work out a resume as much trade as possitroops from all members against plan such as the one I described ble, which means that as long as
last year in my book on foreign Russia
talks
nicely
the
whole
the North Koreans.
policy which would have a rea- military alliance against Russia
There is some doubt whether
sonable chance of preventing ag- is
but C will ..reduce
weak, even though military
speed —.. even the call was a valid call even
then,
gression and eliminating the veto preparations behind the lines conthough not certain of danger— because the charter
clearly re¬
when visibility
tinue unabated.
is low or road quires the. affirmative vote of all power.
conditions are more hazardous.
i Secretary Dulles has tried to
of the five controlling nations, and
United Nations Abandoned in
"In investing, 'speed' and
reassure. th§ Iron Curtain nations
'safety' I don't think that absence provides
Europe .>
are<•' controlled * largely
that we 'are not going to make a
by
the an affirmative vote.
But no one should be shocked at deal with Russia giving the Comamounts
of aggressive
and
de¬
Nevertheless, it was treated as
fensive-type securities used. When a proper sanction and produced a my suggestion about the United munists a zone of influence over

1953

$4.51

or

like period

share, in the
against $1,-

per

quarter of

ourselves

many

in

One atomic bomb would

an(* factories, .surely it is ten times
as easy f°r them to bomb Western
Europe and its ports. Or they
completely could leave Europe alone and de-

the

in

hand.

good

and

>

versified
Services.
Inc.,
in
the
first quarter of 1953 approximated
$1,005,692 of $3.46 per share, com¬

equal

as

This statement is
a

factories

the

well abandon
working with the

might

we

idea

free

of

,r

v-'NET EARNINGS of Investors Di-

pare^ with $932,534

North

1950.

Quilitz, of Bache & Co.; Mrs.
Ala.; Henry G. Strobhar, of
right, Mrs. Norman Allen, of
j>
:

an abortive attempt to
the United Nations when

on

the

Clubs. ,'Others

.'are, from the left, Miss Analeise
C. L. Ragsdale, of Birmingham,

Co., and. .at
•Hammond, Indiana.

I

all

self, but not as an effective means
an Alliance
to
prevent aggression.
It does
have
many
methods by which,
But there is another difficulty
through peaceful persuasion, it about, maintaining
the general
can deter and prevent war.
policy of a unified world-wide
It has important agencies which opposition to communism by all
are concerned with
the improve- free.. nations:
we
have to have
ment of conditions throughout the not only the written word
but
world. But as far as the preven- the real sympathetic support of
tion of aggression is concerned, our
allies in that job. Recent
it might as well be forgotten for events
in ! France and England
the present.
I think we should indicate that they are more than

v

is L. B. Brubaker, Manager of the Bache Washington office, and
on
Mr. Brubaker's left, is Mrs. Stephen J.

&

win.

to

the Russians would be able

bomb

communication lines behind them.

lieve

istered representative in the United States; on Miss Shoor's left

Bache

able

Qnce

r0pe
to

t

always been concerned
our troops are in
Eu-

of those powers refused to go
along it was hopeless to create
any sanctions that would be bind¬
ing on the other nations to pro¬
vide troops against aggression.

.^explaining the meaning of ticker tape symbols. In the center, is
;Miss Bess Shoor; of Bache & Co:, the first woman customers' reg¬

of Women's

based

was

one

"only brokerage firm represented at the affair,. Bache & Co. ex¬
plains at its exhibit the advantages of .investing. in American
The photo, abcve shows representatives of the firm

Federation

Nations

exhaustion

have

I

50%

them,

have in the

trol

Industry.

^Director of the General

United

the theory of a five-power con¬
of the world, and whenever

on

,tion to women, Bache & Co^ members of the New York Stock
Exchange, are-presenting an exhibit at the International Homejnakers' Exposition in the Statler Hotel in Washington, D. C. The

course,

complete

believe

any one

of

the continent of Asia it would

bring

veto

by

Ameri-

and

prevent aggression because of the

EXHIBIT

the

proper

even

possibly

send

to

includes
Indo-China,
simply because we are so outnumbered in fighting a land war
Chma

treaty that

not

should

we

Asia,, which,

on

could

our

haYe nev®r
felt

in the first speech I made in favor
of ratifying the United Nations

it

within

is

fight

^

Nations

a

'

can

they

than

occur

many.

Western
there are at

we

people than
united Ger-, United States.
'

the world and provide arms for all
those nations which are sufficient¬

that
by

of

more

military alliance. It is an attempt
to build up freedom
throughout

that,

felt

always
must

defense

BACHE

35

(2335)

we
on

should
the

attempt

Continent

to

fight

of Asia,

icy of the country concerned,
Second, I urge upon you tolerance
of those who are trying
their best to conduct our foreign
affairs. I think already they know
more

about

the

realities of the

situation than those who preceded

them. I know that they are inspired with the best of good will
toward all nations. They have to

meet what seems to me the most
difficult
problems
of
foreign
policy the United States has ever
faced.

36

The Commercial and Financial Chronicle... Thursday,

(2336)

<Continued

front

Chinese Air Force is

5

page

get

hoping it

probably not because they like
him, but because they are becomin ing disillusioned with Com-

can

modern planes.

more

The average age of the men

Formosa and the Far East

the Chinese National Forces is 28

have

states

that

told

been

There is an old saying that the
is growing older,
good for the Chinese are always on the winfour years.
ning side. If the Chinese on the

to 29. The Army

it

but

peak levels. Sugar output is lower
than it was before the war largely
because it took considerable time

we

is

probably

next three

or

would be favorably disposed to
Since May, 1951, the training of
giving increased military and fi¬ the Chinese Armed Forces has
to
rehabilitate plantations after nancial assistance. We negotiated been
supported by the U. S. Mili¬
wartime damage and neglect. Also, with the governments of Britain,
tary Assistance Advisory Group,
except for this year, sugar acre¬ France and other maritime powers
Formosa, or MAAG, Formosa, as
age has been restricted because of for a tightening of the blockade of the
group is called. This group is
low world prices.
For the first Cummunist China. They are tak¬ now under the command of
Major
time, some farmers on Formosa ing important practical measures. General William
C. Chase, United
are growing wheat on a relatively
You can see, as others have seen, States
Army. General Chase has
large scale in order to reduce that a new order of priority and
served in the Army since April,
Formosa's dependence on import¬
urgency
has been given to the 1917. He has an outstanding com¬
flour.

ed

Far East."

tangerines, oranges, bana¬
and pineapples. It also pro¬
petroleum, fertilizer, cotton,

duces

coal, salt, and cement.

In

in most of Asia,
farmers and
land.
Every bit of

Formosa,

not

enough

land

which

and rents

many

cultivated

be

can

Most

used.

as

too

are

farmers

the

Tiller"

is

of "Land

in

proceeding

three steps.

The

(1)

..

'pays
main

farmer

tenant

now

maximum of 37.5% of the

a

in rent instead of the

crop

former 55%.

(2)

Plans

almost completed,

are

that the 162,500 acres of

so

land—17%

of

being

by

cies

sold

all

public

land—is

rented

government agen¬

and

enterprises for purchase
by tenant farmers.
(3)
Private ownership of land
will

be

seven

limited

to

poses

to

approximately

The government pro¬

acres.

purchase

acres, out of
of land now

about

held

and resell it

to

tenants

laborers.

is

planned

pensate the

payable

430,000

615,000 acres
by landlords,

some

It

and farm

to

com¬

landlords with bonds

in

The

farm

and

products

weakening

institutions

free

the

island

since

look

new

the

cf

China

the

on

achievement

continue

on

potential that exists.

its
the

present [Formosan] situation. The
TJ. S. Government
will not
.

.

provide military aid or advice to
Chinese forces on Formosa."

Approximately six months later,
June 27, 1950, two
days after

©a

the

Korea

man

attack, President Tru¬

announced,

the Seventh

attack

hope; of

all

of

top Chinese officials
return

the

to

"I have ordered

Fleet to prevent any
As a corollary

the National forces

Formosa

major

remain

invasion

They

lifted them

would

if

a

we

the Strait in

across

ships and gave them
astic

if

attempted?

was

undoubtedly

now

loyal

full

The

support.

of

;

President

State
Feb.
was

of

2,

Eisenhower

the

Union

Government

Chinese Govern-

Formosa

a

The officials of the government

from

this

is

country

being

1953,

announced

Relation of Formosa to

Far

Affairs

Problem

is

a

Bureau

exercise

may

too

erally

It

is

a

show

window,

known

the

to

that

because made toward this objective.
is
While present unsettled condi¬

Mainland

of

they must first land

land

tions in

the

Far East

continue, a
military force on

modern effective

is

Formosa

great

a

deterrent

craft

carrier

tinued
on

the

use

is

reform, good gov¬ Mainland

because

threat

to

Mainland,

it.

We

unsinkable

an

a

and

if

Invasion

air¬
con¬

Communists

even

should

is

it

the

we never

issuing instructions

Seventh

ployed

Fleet
to

no

shield

that

that the Russians and the Chinese

April

We talked to

he

in-Chief

State

John

18, 1953, Secretary of
Foster

Dulles,

in

a

^•speech reviewing the first 90
days
in the
foreign policy of the Eisen¬
hower

Administration,

relation to
*

i-w+jdp.

P.-#*

1 '*"<*•

.

"In

Indochina, the French

Government
*

said,

*

*

and
w

'•

'

the
**•<»■

associated
'




'

"v,

-

••

•

V''■ ;•

Chinese

-

National/

Formosa

on

?.

1

has

be-

the Chinese Communists on
greatly
im¬
proved their situation. They are

bringing the Chinese people more '
and more under tighter central
control. Communist China is in a
*'
' :
They are said to have destroyed

strong position today.

practically/all books giving the
history
and
traditions
of
Old
China. They have gone a long way
in
breaking • up
the
historical
Chinese family system.
While it is difficult to ascertain

group is headed by the Generalissimo's oldest son, Lt. General

than

Chiang Ching-Kuo, who is Direcof

1

State

a

morale

builder

of the

secret

tional

is

answer

the

Forces.

He is head

of

police and is becoming

Party.

strongly
does

We

said

is

be

to

anti-Communist, but he
that

Communism

must be fought with Communistic
techniques. He is reported to hold

of

the

Ground

General Sun

Li-jen,

Purdue

VMI.

of

the

and

equipment.

statesmen

and

a

Forces,

graduate of

We

saw

We

some

talked

military

about the potential of the

-

to

leaders

Army.

The Chinese National forces

on

Formosa number between
400,000
and
600,000 officers and men.

They

are

in

excellent

physical

condition.

Would

Many
him.

Chinese Air Force has

ex¬

of

cannot

China

Southern

Chiang Kai-shek?

them

Southern

would

China

different

ways

of

is

from

welcome
in

many

Northern

China. The Southern Chinese have
a

different

Northern
food
in

is rice.

the

Wheat

North.

munistic
a

language

Chinese.
The

not

too

the
main

predominates
present

government in

Northern China

China.

than

Their

Com¬

China is

Government. It

popular

in

Southern

People in Southern China
pilots. Some people think are
apparently getting fed up^with
the Chinese pilots are
among the Communism, Therefore, they are
world's, best,. when trained. The turning, more to
Chiang Kai-shek,
cellent

they

centive
is

were;

pay

before,- with in-

and social security in-

Since; private enterprise :-l
becoming, less and less as. the

movesdn^'the urban middle

class—vdivested. of nvosivof its
wealth—is not faring so well.; .-i
Everyone on the. Mainland must \
:

pay

iip service

ment., It is

to

thernew

r,

govern-

reported that the ma-

the view that the Mainland would
not have been

lions

lost if

police controls and
been

used

more severe

had

measures

by the National

Gov-

ernment.

of

will

students

r

become

adults without having known any

other government; ,//•■
The rigid controls of the

Com-

The other group has been large-

munist police-state system extendi

into every community. We must
realize that Communist China is
now an
important factor in the
politics of the world, since it ha3

a

with

efforts
such

the

there.

closely

States

This

men

as

K.

United
group

C.

Wu,

brought under strict control nearly 500 million people,

graduate of Grinnell College of

Iowa

Southern

people

China welcome

is
The

by

the

Commu-

apparently better off #■'

are

—

ly responsible for progressive developments on Formosa during the
past two years and has cooperated

impossible.

Welcome

Chinese gen¬

.

-

jority ^of/students V. supportthe
Communists. If the Reds remain in
power for/a few more years; mil-

coun¬

Mainland

No.

He

believe

includes

The

with/ the

.

r

surance.

tor of the Political Department

Mainland?

including the Commander-

longer be em¬
Communist

China'/'.

Mainland1, also

nists

most

expect

liberty.

and

of

Princeton

and

Democratic

encouraged

policies

on

its democratic

port

a

should

our

country with

ideals should

regime that

uses

sup-

Commu-

nistic tactics to enforce its will
the people.

be

Formosa, since it is

inconsistent that

on

The Chinese National

Government

will

gain

for

itself

great support if it concentrates

on

giving the people of Formosa the
possible with an
increase in their living standards

best government
and

a

greater

measure

of individ-

ual- freedom.

However,
permit

we

a

President
President

cannot

write

.

Chiang
the

of

Kai-shek

is

Republic

of

China,
Generalissimo
of
Armed National Forces, and

the
Di-

rector-General of the Kuomintang
(National Party). He is known as
the "Gimo." He looks more like a
genial
professor
of
philosophy
than a great military general. He
is 66 years old and appears to be
in good health. His eyes shine and
he has a keen sense of humor. He
doesn't/speak English;, of course
he has excellent interpreters. At
the time we were there Madame
Chiang, who usually acts as his
interpreter, was in New York. She

js ]y°.w, in Tormosa with the Gimo.
* think he^ understands a lot of what1S saidhim in English.
He had

our

team in

his

,,

office

for about forty-five minutes one
day,

the following day he
dinner in his attractive.

and

gave us

a

home. He

was

very

dinner and told

us

jovial at the
liked

that he

to talk to businessmen but he did
not like to talk to diplomats.
A
nese

?

custom of the

dinner

is

ordinary Chito
leave shortly

after the dinner is

over.

However,

off at the President's home he kept U3

the Chinese National Government
and

•

Chiang Kai-shek,

who

are

erals,

China. He thus took action
ending
the Seventh Fleet's
"neutralizing"
role - between
Formosa and the
Mainland of Red China.
On

Communists

show.

the

the

A

Government

stronger during the past two

come

This

Could Chiang Kai-shek and his
Armed Forces alone invade the

forget

never

to

further aggression from the China

ernment, and rising living stand¬ for the Anti-Communistic
ards on the Mainland, before they
tries of Asia.
can attempt to land troops.
Formosa

being

there

on

Communist China. The officials of

for

Great progress is now

mosa.

everything that goes

ideas

agreed

"Show Window" and

a

personal

who increasingly important in the Na-

among those
speak with authority that a strong
"Unsinkable Aircraft Carrier."
fighting force can be built on For¬

been called

civilian

political activity within the
major key to the National Armed
Forces, it is gen¬ the

whole Far Eastern situation. It has

on

that

While-

Government

-u

v..

,

Communist

•<;In.

the Armed

-j-'/]'

up.

spite of all of the shortcom¬
ings and the fact that the Political

his

in

Message

Mao's

the

of

,

years,

National

Is the present

of

they would have lost China.;

National

Chiang's
having their armed forces of
©f this action, I am
something less up to several weeks after we left
calling upon
Formosa
was
problems too; while we worry than
Governor
of
the
the Chinese Government on
500,000 effective troops alone
For¬
about their intentions, they are
Government;
George
mosa to cease all air
cannot conquer a nation of nearly Provincial
and sea op¬
K.
C. Yeh, Minister of Foreign
erations against the mainland". The worrying about what we are do¬ 500 million people.
Affairs and a graduate of Aming. If war should occur, Formosa
•Seventh Fleet will see that this
If Chiang Kai-shek is to make
is
would really be an "Unsinkable
herst; C.
K.
Yen, Minister of
done."
a successful landing and invasion
Aircraft Carrier."
Finance; and General Sun Li-jen.
Since then we have
of the Mainland of China, he will
announced
This group understands and really
•that Formosa is included
within
require U. S. Naval and Air Force
Chinese National Army
believes in the principles of
the American defense
combat support and logistical sup¬
system in
What about the
the Far East. We have
Chinese Na¬
democracy. They believe that conset up a
port. Without such aid, any major
tinued
reliance on Communistic
military mission on Formosa in tional Army on Formosa? I can invasion would
undoubtedly fail.
tell you a little about it because
•addition to our Mutual
techniques will hinder the growth
Security
Chiang's forces do have the capa¬
of popular support for the NaProgram, and we have concerned we saw the Army first hand and city,
however, to carry on raids
tional Government of China and
©urselves
with
witnessed it in beaoh landing and
its
serious
eco¬
against
the
Mainland
and
to
lessen the chances of achieving the
nomic problems
growing out of other military exercises. We in¬ blockade shipping along the
the island's need to
objectives of the Mutual Security
an
maintain a spected
Army
regiment
of Southeast China coast.
strong military position.
Program.
Chinese troops. We saw
an
air
Formosa.

on

i

government they are now giving
Formosa it is doubtful whether

_

the Mainland.

ment

the. same-kind

Mainland

the

■

Chinese

Formosa

on

government differs radically from 4
ours and that the Chinese National 4

our

enthusi¬

our

the

Mainland

>■

follow ;. democratic ;
methods; however, if Chiang's re- •
gime had -given the Chinese on 't¬

Troops
would

the

In

realize

.

the

Ori-

the

that

philosophy: of j'

and

always

to

is

It

realize

must

method

Government does not and will not

Loyalty of National Chinese

Chinese National soldiers and the

the stepped

on

no]

in

uprising

We

ental

.<

t

popular

out

capitalize fully

the National Chinese Government

utilizing

which

in

manner

chances for

off the

s

granted

works here, ought to

will

However,
invasion is

within China become less.

this

of

carried

be

to

Formosa to

an

interfere

rapid

about

there

«

that, the thing that
work equally
well everywhere else. But this
conclusion is not justified by ex-

for

.

well

of

the

talked

we

enthusiastic

very

our

developed on the Mainland.
are
working intelligently to
assist in upset¬
The Chinese National Army has achieve eventual
self-sufficiency.
ting
the
Kremlin's balance of the core of an effective
Within
the
fighting
Chinese
National what
is
going .on in China, it
power and lead to a crumbling of
force, but much will have to be Government, there is a conflict would appear that; millions;-of
the
whole
Cummunistic
World
accomplished before it is ready to going on between two opposing peasants are not as well off as
Movement. There are risks and
achieve major victories in battle. forces
regarding how best to fight they were formerly. While most
difficulties in a positive program There is a
shortage of modern Communism. Several leaders ap- of them have been, awarded land,
aimed at achieving this objective,
equipment. As General Chase has parently believe that Communistic heavy taxes are taking/most of
but there is hope in such a pro¬
said, the National Army needs techniques should be used and their farm"products.*; . ;
gram. An adequate and wise pro¬ more
heavy
hardware.
Fortu¬ that there should be maintained
Workers; in the cities—the class
gram of United States aid should nately, the supply of modern arms a totalitarian
process of control of most

On Jan. 5, 1950, Pres¬
ident Truman told his
"press con¬
ference," "The United States [has
to

were

willing

that
China.

should

nificance."

forces

to

con¬

It is both.

intention

is

Several of the

American officers that

to

The

within.

objective

1949, our State
Department emphasized that "For¬
mosa has no special
military sig¬

December,

armed

soldier

learn.

hope

within

with each day that an

on

Chinese

and eager to

is

rift

a

put

and

much

President Eisenhower.
In

I

There
be

\

republican form of governmeht, which we find so well
adapted to our needs, is really not
suited to them; Most of us take it

that

thought
that
Chiang
Kai-shek, supported by us, would
win, they would be for him. -"v
perience.

good governprobably no more dif¬ China.
ment? It probably is as efficient
ficult, or strategically more im¬
Formosa is extremely important
as any other government in Asia,
portant, question
than that of for the
West, but we must not Almost everyone has sufficient
using to full the potential on think that the National
Army now food/especially the farmers. The
Formosa as part of a broad effort
on the island as a force that will
necessary social needs are being
to bring about the eventual libera¬
militarily soon defeat the large met. There is order on the island.
tion of China, predominantly from
Communist machine that has been

Eastern

at

election

War

There is

Formosa

a

Communistic

of

Mainland.

Today?
taken

aggressive,

trol and the eventual establishing

Why Is Formosa in the News

have

World

Mainland

troops do have high morale, and
denying Formosa to the Commu¬ Chinese soldier
picks up and
their officers seem to talk serinists and, second, using the po¬
adopts American modern war
ously about their hope to return
tential present in Formosa for the
methods.

with shares in public corporations.

We

United

the

that

will pursue an

States

of

high.

are

A land reform program

to

is

tenants

are

Formosa

Toward

assumed

is

It

in

record

World War II.

positive policy on Formosa with
the general
objectives of, first,

Land Reform Program

there

Policy

Our

as

nas,

bat

fruits

choice

raises

island

The

such

munism.

evidence

convincing

little

show

May 28, 1953

for about

key military base to the

thirty-five minutes after
earnestly to

dinner,r, talking

degenerate, just because they several of

us*,.,

Volume 177

Number 5224

...

The Commercial and Financial Chronicle

(2337)
The typical Chinese dinner consists of from 12 to 14

President's dinner

about eight

was

and he had

courses,

The

courses.

it served

in

Western style, that is with-plates,

kmves, forks, and spoons.
log

Communism

1927. There

since

other, outstanding figure in
Asia who has fought Communism
is

no

consistently:<He saw the isclearly Train the very first. He
.symbol of Free China;; ithas

roore

sue

to the printing press would
How MSA Aids Formosa
directly to inflation. ConsidThe Mutual Security Adminisn+i/-kVA
erable progress has been achieved tration
finances imports into Forduring the past three years in mosa of selected
agricultural and
cutting down deficits. American industrial
i

important factor

an

this achievement

in

but vigorous

collection efforts of

tax

tional

i.

•

—

commodities

aid has been

Chiang Kai-shek has been fight-

.

ing

lead

Government

the

IN

a-

have

a so

been very important. The people
of Formosa now carry a heavy
tax burden which can hardly be

t0

maintaining

the

*rrt

_

_

essential

tions in 12

countries, believes that

ders,

these
vides

the

The

T?itvnv-k

nomic

4-'t»1

A

A

should be reduced

purposes

civilian

necessary

and

military

i_

•

a

....

■

_

kept busier

and

more

Drosoer-

trade

with

This effect of

high rate of

a

Amlrican

duction in the
is

*

-

because of its

ous

sale

projects.

i.

is

of

economy

coun-

because of the improved situa- tries gives them great
assistance.
lorrffll** in
tion—largely in Europe—financial At such times we reauire huee
aid throughout the world for eco- imports, and the rest of the world

linn-

greatly for the next year, and
of many of most of it stopped within a comMSA-financed imports pro- paratively short time.
However,
local currency to support that
group has said that some

Island.

trade with other

our

37

us

pro¬

economv

doubt of greater importance

no

countries, such as those in the Far in international affairs
East, must have further economic iffs and trade treaties

than

tar-

7

The MSA program also includes

aid if we are to continue our curIt is . peculiar fact that ,h„
is a
increased.
a
large percentage of "common- rent military, program. In other
United states which
been said that he is Nationalist
The -second
major
economic use" items which go - directly to words, we are probably going to
out aid in such huge amounts has
China. He is a .hybrid of the old
problem is the deficit in foreign the military forces on
Formosa, have to pick up the check for not been weakened therehv
can d,. the new China.
if
However, he exchange which arises because the
supplementing the military assist- some time to come in Formosa.
anything
we
is a product
hav?
hp™™**
ofold.;jChina rather am0unt received from exports is ance

~Qhgof |he greatest sources of

strength of the

_Gimo.jmhis early

that .he .negotiated T'ar

years uwas

battles.than

£he :warlords

of

old

type of China
Eventually that became
of

source

him.

in;

great

a

weakness, because these

old warlords that he had taken in

finally turned against him.
_

Another of his weakness is that

lie makes too many decisions that
should be made by the men under
fiim. Like most leaders, he likes to
exercise

obtain

to

the

v

..

„

stronger

w

Necessity of Building Strong

com-

his power. As the

active
head of his government and party

<the Kuomintang), he makes all
policy decisions, in addition to

rice

°Vr bas.lc objective in providing
foreign aid now is to build up on us. This attitude
strong allies as a means of de- should be brought
sugar, harbors which can be used jointly fending the Free World against
quickly as possible
argicultural prod- by the armed forces for strategic the continued
encroachment A of and for our good,

other

an(j

ucts, the foreign exchange earned
by Formosa has increased almost
three

and

third

a

times

in

the

three years from 1949 to 1952. This

amoUnt,
the

however,

needed

plies

cannot

amounts

cover

such

of

sup-

fertilizer, soy beans, petroproducts, and cotton, as well
as
machinery and parts for the
development of industry. (Amerias

ieUm

Communism.

purposes.
"

The Joint Commission

Rural

on

Reconstruction (JCRR), composed
of three Chinese members and

two American members, is doing
excellent work in formulating and
carrying out a program of rural
reconstruction in Formosa under
the general direction and control

of MSA.
Work has been comcan
airmen
effectively bombed pleted on about 300 projects leadFormosan industrial plants dur- ing to improvement in
agriculture,
jng World War II when Formosa livestock and disease control, ir...

was

rigation

japanese colony.)

a

,

.

and

flood

control,

for-

provement,

This

not

Since the Chinese National Gov-

__

decisions.

minor

,

to

be

military

of

in

the

found

in

basic

having

allies with governments capable
°f governing their populations
under standards of living high
enough to make them difficult or
impossible targets for Communis-

tic ideas for the next five

ten

or

years,

,

creased
a

must be

program

han-

so

jncreased
•

duction
th

our

purel

w

modern state.

It is questionable

whether he has the equipment and
the

knowledge of economic life to

.be able to do.that job.
tie is honest and he is
triot.

He

is

However,
true pa-

a

Christian, a very
devout
Methodist, and leads an
austere, simple life. He is the only
a

'

"

who

:iman

United

tiim,

once

'

~

rally

can

The

States

China.

Free
must

look

to

American policy on Forclearly defined.

has been

mose

(1)

Fear of possible

.

.

The

of

the

size of thet States of Vermont and

«

•

••

(million

seven

•
•

.

,

-

hvV

habitants,'!

'

«

a

original inpopulation

'•••'

..

"refugee

-■

.

•

from the China mainland of about
two

million

additional

This

cannot

outside aid.

be

from

war

damage should be guaranteed by

?nI<fi!»

tSS

Guaranty Program, which

guar-

ffom expropriation or confisca-

tin-n

iitoe

wi

nrlo

n

r*nl inohm

ta

hyu1-

tl0n» was made applicable to For-

be

can

from

reduced

frlUs and

all
all

re_

of

parts

its

— agricultural,
transporistrial Hpvplnrimpnt and
tation, industrial development, and
technical assistance-and by limiting its proposals strictly to what

is essential for the achievement of
united
mubd.
m0Sa.

States

objectives

We must make
We iliUbl lIldKe

„

»

.

when

1

up our minds
UP OUI nunab

,«

how

d,m
and

For-

on

the

Formosan

,I1UW
f.
economy, and
ecunumy, anu especially 11s mdusits inaustrial productivity, shall be orientated—whether, on the assumption that the Mainlanders will
.

mosa-

without

The economy of the

island could readily support, with
a

As

Program

eiim'ina^ing

by
finements
Program

June> 1952, the MSA Industrial

persons,

done

good standard of living, its civil

population.

It cannot, in addition,
feed, clothe, and house this
large number of troops and build
?up the installations needed in the
pay,

present effort to create

a

There is danger that there may

mosa more closely with the Japthe island, anese economy. Policy decisions

again be inflation on
largely because of this year's sugar crisis, induced
by an unusually
large crop in Formosa and large
crops in many other major sugar-

producing countries, which made

National

Government.

deficit,

fcoth in the internal budget and in
the balance of international payOrients.
•in

is

J

The American aid program
rtvN

n

J

w*

A

IrA

i

designed to make

<cit.

/Ia-Pi

1

up

Since the deficit

this defi-

is

the result

•of necessary expenditures for mil-

itary purposes, the

economic aid
program is
devoted
tirely to the support of the mili¬

.

.

.

■

,

.

,

.

tary effort.
A

balanced

budget is essential
T?^ww-»^c.o
stability on Formosa,
Public borrowing to make up deficits is impossible to any considIcits
consid¬

to economic

erable

which
for

plpUnUvr

extent,
the

tons

of

such

limited.

of

sugar

a

asked.
mosa

It

negotiation, for $35 a
price originally

is

estimated

will have

that

funds

government.

purposes

are

can

^

nearly 800,000 tons

rextremely

use

for

and

the

as a

present

military

size

export

A

imagine that

the

costlv

we

of

in

gave

a

iht

than

wav

away;

great deal of aid to the

rest of the world

time
at

raise

home.

In

been and

are

course

and at the

standard

our

this

area,

of

same

living
have

we

moving along

a new

for America.

Future

Private

Investment

Abroad

next

:

During the period from 1883 to
1913, the countries of Western Eu-

might be

said

that

dif-

one

the Formosan

tnrf><3

rpnnirpH

tures

for

par

Poses and bV the baslc facts ln the

economic situation.
1

'

*

1

forthcoming

Even

year.

likely

appears

that

at

best,

economic

,

..

^

y

a

economic

be continued
aid is

only

maintained

be re-

can

one

or

at

if
a

n

.

a

rhinpqp

Onvprnmpnt

X^ h°aVe stri>en^^intelligenUv
ith

determination

and

,

«uide

noSurTfin«

their

to

and

stimulate

government

resnonsibilitv

for

in

qolv

aSSuming Tdlnnd'c eennnmie nrnhresp0nSlDlllty t0r S01V
fi-p
!
fT
?,
economic prob
+

lems.

Notable

mndp
madG

nq
as

progress has been
rpqulf nf their efforts:
result of thpir pffnrfq-

n
a

hn

morp

and

pan

should
snouia

nowever, more can ana
done

hp

oe

As long as birth

+t

a*

auytning

levels

in

like

-

tneir

Formosa

and

rr-

"
need .a new concept.;t(i) encouraSe private ; foreign'' investment-" °ur Department of State

should

adopt an a&6i.v-o^xvt posian. aggressive
approach toward assisting and

-nnni1Vaffintf

Amerienn

hnqine«!«! in

wlwulta6"'6
eHcouragmg^American busmess.ta
^
make investments abroad. What-

legislation is needed to in¬
our
private
investment

eyer

should

abroad

rates continue

i-,

~

ln the past*

crease

Birth Control

be

speedily enlegisla-

acted in connection with

conunu® actec

present
in other

tion

covering
both the Mutual
Assistance and Technical Assis-

°verpopulated areas such as India tance
a"cl. Gnina, tne pest possible way

programs.

.•

,

>

Recently Secretary of State

d{ti™P07Se^eonleTn0th™eCcoSn-

i°h" F°?tfr DuilehS t0W
H°tif?
™jPe°Ple^n
Appropriations Subcommittee that
™lesof n^neo! Themasse'sof he wants eventually to get the
,

jnharitants

is to instruct them

government

wn^lfSS ^es

from giving

away

Foufprog'S
j™" a^o.tthe^esfhope^or ove"- "d ^s'pTsiMe1 shoSd^e0'under
populated
like
Formosa,
areas

priVate

china and India is to have
kind

0£

affirmative

effort

some

made

tion.

(Point

and

In

philanthropic direcsome American

the past

0ii companies have furnished this

sirt ^afd

fhn
the

nn
on
0.

Jf

Amnr'ipan
American

1pto

Smce

1913,

our

dpVGi0D;n£r
Cievt Op
5.

Fnnnnmv

Economy
.

.

Ho

be

inorpqcpH
increased

in
in

order
nrr-Ar

maintain the economic and

tn
to

,.

...

international

required us to ex"
tend mri nnn grants to niir allies
aid and rrrnnTs tn our nllipc
to an aggregate total of some $110
billion.
It has not been repaid,
We probably do not expect it to
be repaid. During the past seven

social

Mutual

costs

xxrViioH

which

has

a

out international
cuoVi
irfH
require such high

rnnnirn

tremendous

effect

on

necessary to. a successful our economy at home.
The

°ur group of 11

headed

policies

teams

chairmen who

which

evaluated

Security Program

opera-

has

an

American
enormous

rest of the world.

omy is

hitting

on

When

aded

and

greater incentives are
provided, there are some areas in,
^

■1

i

things offer any
inducement to outside capital. XJntil there is an increase in the flow.
of American

private capital to un-

derdeveloped countries, there will

probably continue to be a strong
need for the kind of assistance
fbat p0int Four was originally de,1

j

r>

signed to give through the Techllical Cooperation Administration
(TCA),

namely

+rQ:n:nCf

and

s

all eight cylin-

+

natUre of

itself
the

upon

j

need of technical aid which do not

in the

our econ-

economy

impact

But until new legislations is en-

.

TPnri

nnlinioo

ify,

fi

^creased, economic aid will also billion. Carrying

have tn
to

military effort.

,

.1

,,

fw® year®i but Probably not elim- years the aid we have extended
!nated' Jf mLbtary activities are has amounted to more than $35

stabflity" during^ the^nexU"fiscal stabibty
•

thl^

of future private investment
However, full credit should be
abroad, we need to think in terms
given to the group of able, conscieven
iarger than the best years
entiouiT "and°'ha"rd-"wor¥ing^*ofU\
®
°f our private foreign investment
ria1<, nf fhp
.

policies have

-

duced substantially after

^

The^eJor„eA Y en

feet.

own

...

niir.

need for economic aid

^

its

on

econ-

militarv

re3"irei four

be
e

..

stand

can

drastically and

This situation permits no
rosy
view of the economic situation to
be exnected in Formosa during thp

and

S outrrln

*r

any reduction will
reflected in the budget.
budget,

itself

to control births.
Otherwise, it is
n the Middle East and
become self-sustaining. doubtful if the economic svstem SI
Lnr^d thp tPrhnm-d comTaking all of the possibilities into
the fertUtty
the peteice the
t e r a
and the
account, an immediate reduction
pe0pie>
fcichlc, ofc living of- the popula¬
V'
standard
of economic aid to Formosa is
tions whose resources they were
precluded by the large expendi- Effect of Our International Policies

omy

profit is usually made by the gov-.
Unless increased expenditures
ernment in its handling of rice and for military purposes are required,
sugar
This profit may be reduced it should be expected that the

The alternative of resort-. fairly high level.




this

The government also found it
difficult to collect rice needed for

on

draw

For-

year.

jnternal

of

long mosa, it would be unrealistic to

less than the

ton

am

since

long

be borne by the economy of For-

250,000

crop.

of sugar available for export
a

as

burden

period

do this require expenditures great.en' than can be met by revenues

Accordingly, there is

However,

it difficult for Formosa to market

Jive mllltayy. for9f 0ULwere sold to Japan, after
.troops now living there Efforts to
.available to the Chinese

should be made and a clear course
se' s0 'Jl?t the aid program can be
more efficiently and economically
administered.

its

an

during

r>m-

,

loss

result of the combined efand two levels of government, na- fects of National fuinacn GovernChinese
tional and provincial. In addition, ment action and United States
aid,
Its economy is called upon to sup- a substantial measure of economic return to the
Mainland, the Island
Sport an armed force numbering up stability was achieved during 1952. should be made an economic adiin Ron nnn mpn
anH
nrnrnrp
Thic
wa?
pviHpnppd
in
a
to
nparlv innot.
600,000 men, and to procure This was evidenced in a nearly junct tn the Mainland pfnnnmv. or
to thp Mainland economy, or
equipment and erect installations balanced budget and in a slight whether we should put greater
that are essential to the success of decline
in price levels and ex- importance on the present foreign
the present military program.
change rates.
trade of Japan and integrate For<

years.

It

port facilities.

nomic

for

Connecticut,-with-only, one-fourth | antees, American investors against
of. its; a^ea, culiiyatable, is called ipabdify ■ to^ convert, foreign curwpon to^^ stipportta population of coney
receipts and against loss
almost

few

have

rnnsnmp

1940's. In any event,
have proved that we were able

to give a

must

*

during the

the

and

pm

rope—largely those that have reficulty with our present aid pro- ceived our aid from the Marshall
MSA also provides experts from
gram in Formosa is that it does P*an—were pouring
out for inthe United States to advise and not
sufficiently induce the Chinese vestment in the rest of the world,
work with the Chinese NationGovernment to become more re- including the United States,
(2) Fear of possible interfer- alist Government,
sponsible for its own economy; amounts annually equivalent to
ence by the National Government
;
instead that government is allowed
billion of today s dollars,
Outlook for Reducing Aid to
0f the Republic of China.
to continue in the habit of mind That is a large figure compared
Formosa
of receiving money for its activiAs an incentive to attract Amerour average annual assistance
since
nrj.rato hncin^cc
Fnrmnca
Costs to the United States eco- ties when it should earn more for of one-third of that amount AT-V

basic fact in the economic

jsituationioislt^hat'-.anvarea

war

their plants—that is, damage
from attack by the Commumsts on the Chinese Mainland,
and
age to

compensation

f Economic Situation of Formosa

Island, MSA is emphasizing projects to develop power,
transportadam- tion, fertilizer
manufacture, and

hiuh

denreqqion

%

that

.

™le ^lvate inveatment on For

the

economic

pecially

of

ranacitv to

during

mQ,

we

governments

fn

Drobabie that the lark of

nn

amazing transition of old China to
I

as

w^

Dlovment and high

es-

estr.Y

caoacitv

our

died that the populations and
the

end

an

result of continued

production

This

to

for their good

ai^n t^nthp^^pnnntrl^?11

,

a

of dependence

the im¬

means

only

potential, but also
security

wp

aid have not become stronger
Instead they have become denendent

and fisheries. The JCRR countries allied with us will not
However,
ernment itself has no other re_ program has been an
important become
accustomed
to
relying
he
seems
to
be
learning new
sources on which it can draw for factor in bringing about the genupon us in
all emergencies but
these purchases, the deficit must erally good condition now found rather will develop resourcefulability to offset many of iTT.f.Jv
his weakbe made up by outside aid or by ai^ong the large rural population ness,
aggressiveness,
outside aid or bv
integrity,
nesses.
F
self-respect, and eventual finanprivate investment. The reasons of Formosa.
Chiang has had the opportunity
^iuau6
wpjjun.uuitj'
nrivatp onmnanip"? havp not
*n addition to the program for cial independence, and thus beto become the chief leader in the
mJpPnT.ivfltp invP^Wnt
Foragricultural improvement on the come the kind of allies we need
...

many

The countries which

fQrpJ

had

Allies

.

pe fought/When
^hina saw the creased exports, especially

Shandwriting on the wall, : he let
them joiri his Army, and become
part of his administration. That is
the

program carried out by the
Department of Defenses In addimodities that the island has to tion, MSA has helped Formosa's
imp0rt, including military items military possibilities by assisting
imported by the National Chinese in the construction and improveGovernment-itself.
Through in- ment of highways, bridges, and

insufficient

,

snore

hasloured

technical

advice

not

aid,

dollars

_

oo

Continued on page Jo.

The Commercial and Financial Chronicle...

(2338)

38

Non-Communist

nations

and

Thursday, May 28, 1953

Conclusion

en-

Let us hope that the American
couraging them to join with the
Within the past several
weeks, People will not indulge in a bit
West in opposing Communism.
Russia has made peace overtures, of wishful thinking and put presSuch a program of assistance it is
my belief that it would be a
sure
on
our
Administration to
and development will cost effort,
great mistake if we were foolish weaken our defense and economic
time, and money. But, with it, we enough to accept at face value a forces during this period of peace

Continued jrom page 37

Formosa and the Far East

them- are spending dollars received would be building a solid base for complete change of heart on the negotiations. There should be no
from this aid to buy from third the economy of our own nation part Gf the Russians. We should relaxation now.
countries commodities which are because we are now deficient in iearn
from
the
painful
conseWe should all enthusiastically
Japan and Trade Relationships in available from each other.
needed raw materials, whereas at quences we experienced when we support President Eisenhower in

~-to

others

help

help

to

selves.

the

East

Far

in the Far East is Japan.

furn of the century we were scrapped our military establishnot deficient. By thus rebuilding, ments in 1918 and again in 1945.
we could insure our own future.
The Russian peace offensive is
The United States should adopt
Here is an opportunity for us to probably designed to destroy the
a more active role in seeking to build world trade both on a mul- European Defense Community. In
bring about an integrated pro- tilateral basis and
on a •basis Edition, the new Russian Govgram. Appropriate Unitea States largely free. Enlaring our invest- ernment apparently has internal1
agencies and officials could seek ments and the inflow of raw ma- - difficulties, not only With the peoto identify potential development terials becomes a desirable way to p]e jn Russia but in the Satellite
projects, bring the parties to- enlarge the outflow of dollars. Countries.: I my opinion, Com-"
gether, discover what each is will- Then we create third area markets munism has reached its peak, both
ing and able to do for himself, for the products of western Eu- jn Europe and in Asia." I believe

One of the major

policy objecin the

Pacific is the creation of a stable,

democratic Japan, c a p a b 1 e and

willing to defend itself and contribute to the common defense of
the

The first requirement of

area.

is a vital, livable
productive enough to

stable society

a

economy,

lost

result

a

of the

Japan

war

of her previously rich
raw iiiaioiioro
materials-Manlow
x.xwii

many

of

sources
auuiLca

yj.JL

.

,,

,

.

,

,

churia, Formosa, Korea, and SakSince the war, the population
of Japan has increased by

halin.

nearly 10 million. With the Communistic conquest of the Chinese

and the "cold"

has the will to do
sary,.-to

if

so; or,

neces-

these wars more
victory * can 'be
'* ' ■ I'1
'

wage

effectively

war
if the Kremlin

war,

until

assured.

Weir Elected by

Montreal Stock Exch.

:

MONTREAL,..Canada

ed aiaieb wuum
Western Europe has now had a
°
A1fies ar® Montreal p Stock MnArfV.nr a sucExchange,
,ea States would
western Europe nas now naa a
gaining
in
both economic and
p
tt
mutual interest substantial recovery and, except
be actmg ln'he muxuar nueresj suosranuai recovery ana, excepi miiitarv strength, time is work Ames & r. G. McArthur, A. as
military strength time is work- ceeamg Co. Mr. Weir served E.
of these countries and in the spirit for our military assistance, is now ing in our £avor. We can afford Chairman during 1951 and 1952.
of seeking to promote maximum We now able to pay its own way. to be patient and to take advanprobably need the same
cf,lf hpln

Lrorfavorable oreaKS, ana we
la8e OI iavOraOie breaks and we

gains in

seii-neip.
It is apparent that an effective the East,
Summary
dollar-lending agency will be
needed to make these projects
j have endeavored to point out
move. The United States Export- the potential of Formosa as a posImport Bank might serve as the sihie means of breaking the Comdollar-lending agency for any munist hold on China. I believe,
TTocf

Mainland, she has lost additional
sources of food and raw materials,
As a result of this combination of such program.
circumstances, Japan's import re-

provide for greater

0rder to

jn

ourselves

help make

can

Communistic

breaks.

Jacques Forget' nf Ihp F.vohangp
Previously Sec"
retarv-Treasiirpr

retary-Treasurer of the Exchange,

the

control

for

elected

was

is

Forget

maintained by coercion and force.

is

panorh'nn

It is of such a nature that it cannot satisfy the economic and
spiritual needs of millions of peothat while the cold war continues, pie
with diverse backgrounds,
we should concentrate on improv- There will always be some who
ing the military potentiality of seek to shake off the shackler.
the Island and the maintenance of
The complete political, military,
a stable economy there. This and economic task
which conmeans that we should have a more fronts us now is as important as
clearly defined policy—both eco- any we have faced since the end
nomic and military—for Formosa, of the shooting in World War II.
Such important policy decisions We should negotiate with Russia,
would make more efficient our but we should negotiate in our
American aid on Formosa.
strength and we should keep
in my 0pini0n
we
should do strengthening our side until we
everything possible to see that have world peace.

Vice-Chairman.

also

of

Chairman

Mr.

the

irvphancjp

c+npb-

S

;

G. L. Jennisoit Named
Head of Toronto Exch.

food, coordination and more intelligent
have increased substantially, and pianning
of United States promany basic raw materials which grams of economic aid from the
were formerly obtained elsewhere
point of view of the Far East renow
must be imported from the gion as a whole, a mobile coordinUnited States. On the other hand, ating group might be appointed in
large markets have been lost, and charge of a highly competent perexports are only about one-third sorl) located in the Far East and
of the prewar volume.
willing to travel from country to
Ever since the war, Japan has country.
The responsibilities of
had a serious deficit in foreign this group might be (1) to assure
trade, which has been met by that economic activities receiving Formosa, which is actively resistUnited States aid in one form or xj# g. ajd give maximum support jng f
u.
aid
Communist China, should Continued from vaae 3
— .
...
onn+hpr
Tn
1PFS2.
this
deficit +n militarv nlans and nro^rams in
another.
In
1952,
this
deficit to military plans and programs in have the support of the Free y^uniniuea jruiii puye o
amounted to $756 million. United the area, and (2) to effectuate bet- Chinese throughout the world It
especially

quirements,

his attempt to end the Korean

sources.

defense forces.
As

a

United States bhou d lake a
.

States

of the United

tives

Take

.f«shmiid

TT

relationships

The heart of trade

TORONTO, Canada—George L.
Jennison, Wills, Bickle & Co., was
elected

President

of

the

Toronto

Stock

Exchange,
succeeding
D'Arcy
M.
Doherty,
Doherty

Roadhouse & Co. J. C. L. Allen
was elected Vice-President; Gor-

don S. Osier, Osier & Hammond,

Secretary, and J. G. K. Strathy,
Treasurer,

^

in

spending

States

of ter

form

the

between

relationships

trade

special procurement and personal Far Eastern countries and better
expenditures of troops and civil- planning'for economic developians, amounting to over $800 mil- ments from an area point of view.
lion, fortunately permitted Japan
T
,
wifh th
F
East
to finance her necessary imports
and to add to her foreign exWe as a nation can become a
great

change reserves.

special dollar credits can-

These

one

importing

inai

nation,

of the most important

is

ways

js S£dd that there

are

twelve mil-

in

are

Hong Kong,

Most of the others are in Southeastern

Asia.

There

are

many

thousands scattered in other

tries> such

coun-

forever. However, we can achieve international ecowhat is to happen to these Free
Japan is depending on them to nomic equilibrium.
Chinese? Will they accept Chiang
cover
an
enormous and growing
it iS 0ur industries, our factor- Kai-shek as their leader and can
ieS) and

^

The

question

what

can

sume

be done to reduce this continuing

them

burden

is

now

the United States.

on

should use
special dollar receipts as
contracts placed in Japan to maintain economic s t a b 111 ty there.
contract

These

awards

should

be

used for

negotiating purposes, and
should agree to spend so much

we

Japan if that nation will do
things to help herself such

in

more

f?i™Ar0rnL^ulUipiT?.ni.^
decreasing

thus

and

techniques

her costs.

materials

raw

finished

into

convert lead in the attack

and

products.

to successfully

so as

Communist

on

we

of the

Some

East.

Far

the

is

ports

In

are

^er metals,

jute burlaps, manilla

fibre, silk, vegetable fats

and oils, Communist control
Mainland

and wool

In^he

jast

war

alI of our SCrap

campaigns,

and .salvage

except role in

that for paper, were necessary
were

we

cause

Chinese

The

reason

Asia

Free

and

the

ol

Japans
level,
too

and

southeast

why

is

the

China

National

struggle against Com-

be- munism.

shut off from the

The fact that

cannot trans-

we

and

principal reasons why

costs^are above the world
that she now purchases
fr°m

the

they

cauSe

are

dollar

Far Eas^.
^ure years

and

shaii in fu-

we

import much more. We

I have tried to show the abso-

lute necessity of

need the raw materials of the Far economic
Easj.

and

markets.

need

expanding
We need to help develop
we

countries

continuing

assistance to
of

the

Far

TRIPP

D.

Consolidated

In

mv

mo?e^erious

there

asnects

are

to the tebor

5 serious aspects to me labor

a„d not

Picketing,

elYm-

,

=

.

dom of the world not lost by

jng that

enormous area

?°™1^'.nte.rciourse between Japan Ponents.
and Free Asia.

In my

Integration of Far East Development Programs
.

A11

All

.

,

x

development prothe Free Asian countries
should be integrated. They should
economic

grams in

take

account

between

and

the

Asian

the

of

the

interrelation

Japanese

economies

countries.

economy

of other

At

the

Free

present

time, apparently no such compre^ bensive and integrated planning
exists. As an example, both Forinosa
and
Japan are
receiving
considerable direct

or

indirect aid

from the United States,

and they




-

1

J/1.a,

*

ln£ as

...V

fort

would be the height of folly to let

made

that

^

it

turbulent

%

0ff

our

for security age

a program

shoulders—the shoul-

der of Western Europe
across

der

to the East
the Atlantic and the shoul-

of

Japan,

the

the

across

West.

By developing the economic poof these lands and their
we

gain the

new

concept to

foreign

in

western

encour-

investment.

civilization

individuals
profit

has

come

seeking

to

rendering

by

economic service.

can

be

power

an

It has not

set

up

so

that the

of capitalism

pies all

we can

over

be

can

sure

come

magic

be made

that peo-

the world will share

knowledge more rapidly
gain than through a Point Four
our

China, and we
the advantage of building up the gram.

flMfl
lIMi

-

aC'

T

•

D. Tripp

good

a

even

pro-

of

Eu-

rope"and A~sia

v a

is being made
.
look

and

of

the

Rights
fore¬
Allan P.

Kirby

yes

unmolested

deal of

unneces-

antagonism might be gener-

ated

that would

havefa bad

chological effect

on

public.

he

sees

fit.

the citizens of this country have been
deprived of that privilege and,
worse

even

famiiy and

than

that, he, his
have been

his home

subjected to violances of the worst
order.
In

psy-

tfie American

f-j'.

as

For the past many years

__

sary

After all, the great dynamic force

double vie- to work,

tory of ending the appeasing of
Communist Russia, of appeasing
Communist

an

through government. If conditions

tential

people,

a

private

through
Philippines, make a

Australia and New Zealand
the Pacific to

become

1 have endeavored to show the

NATO, for the Far East. Then we need of

would have

area

easy prey to the Soviets.

fields

for

battle¬

the

clearly specified, that it should be
inalienable right of map to

to elim-

-

boys

died

work

were

to our op-

opinion, the United States

have

the

ef-

an

being

the

intended,

„v.

if

our

our

whether
or
not it should
and

are

and

fathers

the

with the Free Asian countries. It

line

liberties

that

on

constitution

our

of

very

Bill

system to ap-

los-

picket

a

crosses my
mind is: "the fundamental princi¬

tion

matter on the

point

see

the Constitu¬

^°°
es"
tablished in
the American
proach

I

Through

picketsac^ 1S

grounds.of

our

Whenever

the first thought that

Jhink the cus-

I'01*1

KIRBY

ridiculous."

0

free

—

ALLAN P.

to

T

be eliminated

.

manv

.....

Morristown, New Jersey

one

Coppermines

opinion

export markets, the United States
should
promote
increased
eco-

.

„,A.la.

violated

Corporation, New York City

the Far Eastern territory working of view. I have emphasized the
economical sources of raw mate- w^h
Japan, so that peace there need for an integrated trade and
rials for Japan as well as widened
may be won and the future free- economic program among and
.

law

some

President,

which

the

East

trying to align to

we are

our

aspects of the problem should be

treated and not the problem itself,

ples of
CHESTER

.

eco-

necessary

through

which tries to define rights.

Frep

complementary and We must not repeat the old Amernon-competitive with our prod- ican mistake that our form of
Japan ucfSi We do import heavily from democracy is best for all peoples,

between

is

exclusively

area;

Asia.

increased

intercourse

norrnc

one

south

in

than

ptay" Inimportant t7o°n fs'Vo^

can

our

on

A

,

therefore think that the unsocial

the real wishes of the majority

the ultimate objective of weakening and finally overthrowing

the

One

is

-

of and the other Free Chinese with

natural rubber, tin and

are

long run, J&Pan must Ear East.
form Orientals into people with
maximize its exports.
The greatMost goods from the Far East our characteristics and traditions
est potential markets for Japan
enfer this country duty-free be- should be a minor consideration.

+

picketing

violent

minority

a

"Ktiy ip ue a icsun.
These things are to say that I
woutd think that more progress
woufd come from a secret and
protected method of determining

are

these

^

.

rather

A China?

raw materials
No one can tell. But it does apimported from pear that we should support, with
abroad.
The source of a consid- all of our influence, the National
erahle number of our huge im- Chinese Government on Formosa

part

convert

large

In the short run, we

these

machines which con- he rally them

0ur

Picketing?

if the general institution is imdifference. Where the strike is posed upon it can play into the
instigated and supported by only hands of goons very easily and I
expect and picketing makes little

Japan and the Unit-

as

gtates

ed

not be kept up

trade deficit.

What About

^on Free Chinese living in areas
other than on Formosa. Two mil]j0n of them

a-

one

my
means

opinion there is only
of correcting this out-

evil and that is to change
Taft-Hartley Act making
orderly picketingVis.^definitely a picket lines illegal. This will not,
part of the American scene, and of course, cure the evil but will
that emphasis should ; be put on he a long step in the direction of
the word orderly. If ul am right restoring the rights of citizens of
in this, any change fin the law this country to where they were
should be to the eridfbf safeguard- before the days of the New Deal
ing orderly picketing and putting when the most unfair legislation
" '

I think it is fair
-

a

—-

.

cp*~rp

'

to.;;assiime

npnaifv

rageous

that the

,

picket

-

line

can

do

no

,

.

..

...

.

„

,

nl

,+

in .the history of our country became law^ eyen though the jaw
was in the direct conflict with the
harm, but Consitution and Bill of Rights.
rfievr^r.i„

Penaiiy
disorderly
P^ketmg. If properly: handled the
.

.

Volume 177

Number 5224

The Commercial and Financial Chronicle

...

(2339)

The

Indications of Current
Business

latest week

Activity

week
Latest

i

AMERICAN

IRON AND

Indicated

steel

operations

^percent

of

capacity).,

Week

May 31

tons)

met

or

Previous

Week

STEEL INSTITUTE:

Equivalent to—
Steel ingots and castings

following statistical tabulations

§100.6

or

month available.

month ended
Month

oil

and

42

gallons

Crude

runs

condensate

each)

to

*99.8

100.3

100.7

(bbls.

average

§2,268,000

*2,250,000

2,262,000

6,259,200

6,334,550

6,280,500

2,091,000

lay 16

116,884,000

6,865,000
23.041,000

May 16

2,615,000

2,373,000

9,244,000

9,465,000

9,561.000

May 16

8,666,000

Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at__
May 16

8,772,000

8,701,000

155,415,000

157,337,000

157,942,000

;M*y 16

21,360,000

20,221,000

May 16

64,941,000

62,964,000

61,738,000

May 16

40,258,000

40,070,000

39,855,000

(bbls.)

oil

oil

__

;

output

(bbls.)

output

,

.

(bbls.)

tbbls.)

Distillate

/

iuel

Residual

at_

oil

fuel

ASSOCIATION

ibbls.)

oil

OF

•

^

at

(bbls.t

at

AMERICAN

Revenue

treight

CIVIL

ENGINEERING

NEWS-RECORD:

Total

U.

S.

Private

Public

number

•

of

cars)—_—■___

CONSTRUCTION

..

;

-

.

,

/:

..

—___May 16

779,805

cars).. May 16

of

ino.

665,661

/

•

COAL

(U.

coal

Beehive

OF

681,058

$287,981,000

STORE

EDISON ELECTRIC

Electric output
FAILURES

SALES

173,602,000

169,-03,000

108,630,000

118,678,000

97,162,000

88,324,000
14,151,000

86,017,000

92,980,000

59,976,000

22,613,000

25,698,000

37,186,000

*8,850,000

8,675,000

606,000

439,000

*142,600

123,300

109,900

May 16

DUN

steel

;/

106

*128

v/

,012,902

May 21

/

7,959,054

156

v

;>

■.

105

8,015,707

198 ■'/

vIay 19

4.390c

$55.26

$55.26

/fay 19

;

*

4.3S0c

lay 19

Pig iron (per gross ton)
Scrap steel iper gross ton)

in

PRICES

Electrolytic

(E.

&

M.

J.

Straits

tin

(New

Lead

(New

Lead

$38.17

7,146,204

159

Zinc

(East

at

*$38.67/

29.700c

$41.00

29.700c

29.750c

24.200c

32.125c

Louis)

at

99.000c

Industrials
MOODY'S

.

Group.

Group

BOND

YIELD

DAILY

Aaa

ERAL

daily),

103.47

105.17

110.15

106.74 '

108.34
106.74

112.93

104.66

109.42

99.52

100.98

104.31

101.64

101.97

103.13

107.44

102.63

102.63

104.48

109.60

105.86

106.04

107.62

113.50

2.97

2.59

Stocks,

EDISON

MOODY'S

3.10

3.09

3.54

3.54

Month

•;

3.44

3.16

3.65

3.63

3.56

3.31

May 26

3.59

3.59

3.48

3.19

Death

Orders received
Production

(tons)

Percentage

of

Unfilled

OIL,

PAINT

1949

—

(tons)

2.9_

3.47

3.20

3.78

3.69

LIFE

3.49

3.40

3.39

3.30

AND

DRUG

AVERAGE

=

of

416.9

422.5

204,133

291,615

223,515

PRICE

251,473

240,205

252,496
96

83

DEALERS

EXCHANGE

Odd-lot

—

sales

Number

.

SPECIALISTS

SECURITIES

by dealers

588,917

523,178

of

Y.

106.51

106.64

109.12

shares

Customers'

short

sales

Customers'

other

of

.

Customers'

short
other

sales

Number

TOTAL

of

______—.—

Round-lot

Short

.;

%

v

SALES

■

ON

.

22,392

34,069
1,021,506

575,448

12,873

9,870

4,545

589,001

611,771

1,011,636

NEW

/

$23,865,896

$24,773,301

$38,154,956

180,790

159,260

294,980

180,790

294/80
364,500

ACCOUNT

353,110

324,230

305,510

10,070,000

5,670,510

May

6,814,280

10,375,510

on

the

May

710,330

863,090

1,201,050

initiated

off

the

MONEY
—As

146,590

127,470

131,920

121,150

576,630

737,300

978.440

456,690

2

723,220

864,770

1,110,360

$24,558

2

206.540

149,060

2

20,900
?

15,100

349,700

25,100

134,100

11,600

159,920

297,440 "

333,200

150,500

180,320

2
2

312,540

358,300

162,100

&

$23,401

*19,368

19,836

*$43,848

$43,237

*25,360

22,085

SALES

of

2

271,420

331,149

329,240

228,605

May

—

2

82,560

54,650

35.040

38,390

2

321,531

458,265

337,700

310,126

May

—

2

404,091

512,915

372,740

(in

the

149,980

3,464,793

•49,506

60,904

$29,754,000

$29,793,000

$28,473,000

$12,913,900

$19,860,300

$275,000,000

$275,000,000

$275,000,000

264,589,809

264,484,781

258,292,339

52,372

51,275

44,389

$264,642,181

$264,536,057

$258,336,729

605,478

607,515

647,852

$264,036,702

$263,928,542

$257,688,877

10,963,297

tons)

♦132,093
*29,458
•2,897,074

51,019

tons)
ounces)—

134,568

30,494

3,125,182

$36,211,800

fine

11,071,457

17,311,122

33,432

IN

CIRCULATION—TREASURY DEPT.
March 31 (000's omitted)

of

MARKET
AND

S.

TRANSACTIONS

GUARANTEED

IN

DI¬

U.

A.—Month

of

SECURITIES

April:

Net sales

Net

U.

S.

purchases

GOVT.

—As
Total
at

of

STATUTORY

April 30

face

amount

DEBT

(000's
that

LIMITATION

omitted):
may

be

outstanding

time

any

Total gross public debt

Guaranteed

2

May

2

250,050

197,220

192,060

171,140

May

DEPT.

not

owned

public debt and
obligations

2

1.058,031

1,493.005

1,649,340

917.316

2

1,308,131

1,690,225

1,841,400

by

the

gross

guaranted

1,088,456

1,130,810

1,400,779

1,879,990

Deduct—other

OF

Balance

(1947-4^=100):

outstanding

public

debt

obli¬

gations not subject to debt limitation
Grand

S.

obligations

Treasury

983.315

May

;

.

U,

in

Alaska:

and

ounces)

short

Total

:

SERIES

of recoverable metals

short

(in
(in

MINES)—

March:

fine

(in

OF

348,516

of members—

sales

NEW

(BUREAU

Outstanding—

May

under

Commodity Group—

total

face

outstanding

amount

above

of

obligations,

issuable

authority

May 19

109.9

109.9

109.7

112.0

May 19

98.2

98.5

98.6

110.6

..May 19
—May 19
All commodities other than farm and foods—_>May 19

104.4

104.5

104.3

108.7

93.0

92.7

91.1

113.9

Production

113.0

Shipments

(short

Stocks

end

Farm

—

products

Processed

,

.

foods

Meats

;

♦Revised
as

•$24,480

19,213

INVENTORIES

COMMERCE) NEW SERIES—
(millions
of
dollars):

577,840

floor-

—„

commodities

$2,495,000

*

OF

620,610

2

May'

.;

-

sales

All

246,000

$2,617,000

March

RECT
2

1__

May

PRICES,

530,000

402,000

$3,337,000

United States

which registered

purchases

—

$1,719,000

513,000

$43,771

TREASURY

floor-

Total round-lot transactions for account

LABOR

$1,702,000

619,000

25,428

Month

5,886,550

-

May

WHOLESALE

$2,158,000
560,000

■

.

.

MEM-

May

Other

March

of

216,040

8,380,750
8,704,980

i_:
OF

72,489,000

$366,424,000

7<-

__

Lead

May

Short

57,783,000

$343,743,000

INSTITUTE

:

OF

293,480

2

initiated

sales

Total

—

-/.
:

Gold

_May

Total sales

PURCHASES

INSURANCE—Month

Total

157/10

309,620

6,461,170

sales

sales

159,260

315,680

9

May

purchases

Short

78,954,000

...

METAL OUTPUT

.May

—

__

Other transactions

57,169,000

Durables

YORK

..May

Other

49,000,000

omitted):

Silver

——:

FOR

specialists in stocks In
purchases
;___

Short

8,351,000

30,826,000

63,630,000

157,210

sales

Total

41,738,000

32,946,000

.

values

of

$24,463,941

:___

-

transactions

LIFE

$155,851,000

LIFE

Zinc

TRANSACTIONS

Other

OF

March:

570,903

-May

Total sales

Other

of

Nonduarables

sales—

-—

sales

122.5

TO

8,362,000

Inventories:

21,239

624,644

,

TRANSACTIONS

sales

Short

PAYMENTS

37,059,000

Month

131

4,700

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Total

119.4

of

$158,593,000

(DEPT.

21,370

(SHARES):

Transactions of
,

265

21,421

May

THE

STOCK

MEMBERS

Other sales

ROUND-LOT

266

593,701

4

STOCK

Total sales

47,035,610

9,479,000
35,193,000

Mine production

shares

OF

middle

Sales

sales—

EXCHANGE AND ROUND-LOT

Total

123

9

-May

ACCOUNT

48,528,954

$31,039,809

35,234>:

—

ROUND-LOT

.* FOR

$42,645,270

26,658

-May

by dealers—

purchases by dealers—

Number

$35,070,220

21,544

—May

sales

Round-lot

48,603,169

r

-

sales

Other

28,641,095
$512,746,100

$410,421,000

Total

694,773

..

May

shares—Total

of

Short

1,109,442

May

Dollar value

Round-lot

760,886

May- 9

sales

sales
saies

31,615,986
$569,333,600

24,686

--May

shares—Total

Customers'

30,875,314

40,384,000

MANUFACTURERS'

sales

Number

39,954

746,831

9

^ay

27,844

$33,993,771

9

May

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales—

26,428

9-

iVfay

*110

119.8

February—'

Industrial

9

110

94

$182,781,000

Group
^ay

"115

payments

Ordinary

—_—_—r—May

Dollar value

at

COMMISSION—

payments

(000's

^

—

customers

_____—

INSURANCE

OF

COMMISSION:

„

96

115

consumers-

omitted) —

Total

LIFE

STOCK

purchases)—

100

customers—month of

388,381

106.52

INDEX—

N.

ON

EXCHANGE

(customers'

orders.

of

Number

AND

ultimate

Policy dividends
-

*95

91

98

205,276

94

96,':

529,536

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

92

93

.

adjusted-

endowments

Disability

181,601

May 16

.

94

114

(000's

COMMERCE

benefits

Surrender

May 22

REPORTER

100

to

ultimate

INSURANCE—BENEFIT

Annuity

_May 16

123.1

119

INSURANCE—Month

431.9

period——

unadjusted-

unadjusted

POLICYHOLDERS—INSTITUTE

2.98

416.4

——May 16

—

end

at

136.1

INSTITUTE:

sales

of ultimate

Matured

__

activity.

orders

1,652

3.01

3.59

'!

3.26
3.35

—May 26

./
/'>■ '
(tons)—____^__„__May 16

2,410

1,659

FEDERAL

7. Index of Railway Employment at
April (1935-39 average = 100)

3.79

—

2,645

$557,642,500

INTERSTATE

3.61

3.35
3.42

.

<

May 26
INDEX

1,997

April:

seasonally

February

from

Number

3.34

Group

2,079

Y. —1947-1949
of

February

'

___—.—May 26

COMMODITY

of

Revenue

3.43

_—

2,142

129.6

April—

adjusted-

ELECTRIC

Kilowatt-hour

NATIONAL PAPERBOARD ASSOCIATION:

•

seasonally

May 26

Group

6,059;

114.46

May 26

i__

/Utilities

N.

OF

100—Month

=

(average daily),
Stocks, unadjusted

May 26

Industrials

BANK

AVERAGE

of

DISTRICT,

monthly),

RESERVE

__May 26

Railroad Group

RESERVE

(average

103.47

6,383

SALES—SECOND FED¬

(average

102.63

".. Baa

STORE

Sales

105.52

■

Public

KM))—Month

=

DEPARTMENT

98.62

3,337

6,390

BRADSTREET, INC.—

Sales

99.36

-_

A

'

&

14.800c

93.52

3,882

PURCHASES OF COMMODITIES-

19.500c

91.99

l,07g*

'

3,956

1,673

11.000c

91.79

1,378

2,575

11.000c

__May 26

Aa

4,044

„

1,384

credit

15.000c

—.May 26

—

6,090

5,133

*

121.500c

May 26

corporate

14,550

8,470

loans

accounts

AVERAGES:

U. S. Government Bonds
Average

$20,609

18,863

5,162

and

11.800c

102.30

I—/

/

$25,246

19,285

consumer

12.000c

..May 26

—_

31:

8,783

95.000c

May 26"

Utilities

Credit

$25,675

12.300c

105.34

Group

term

.____

12.500c

May 26

!_!___

March

RE¬

SERIES—Esti¬

credit

Sales

May 26

_I

FEDERAL

credit

97.000c

May 26

II

Public

of

as

consumer

THE

intermediate

11.000c

___.______i.May 26

Baa

OF

REVISED

and

13.000c

106.92

Railroad

millions

DUN

;

——_

OUTSTANDING—BOARD

12.800c

May 20

corporate

I

short

CONSUMER

27.425c

May 20

U.S. Government Bonds

A

CREDIT

Charge

$42.00

29.550c

York)'at=__.—-—/May 20''
St.

518

4.131c
$52.77

29.600c

MOODY'S BOND PRICES DAILY AVERAGES:

Average

4.376c

May 20

——

223,505

166,744

Single payment loans

145

May 20

at

390,767

149,236

tons)

SYSTEM

(11)47-194!)

May 20

York)

(St. Louis)

149,239

140,293

tons)

__

goods__
modernization
Personal loans
Noninstalment credit

QUOTATIONS):

Export refinery at

1,202,709

140,293
(net

tons)

(net

copper—

Domestic refinery at

$

181,300

(net-tons)

GOVERNORS

Other

99

$55.26

'

METAL

$

anthracite

America

tons)

Service

lb.)

(per

(net

Instalment

&

,

$

Automobile

1

—

Central

(net

Africa

Total

IRON AGE COMPOSITE PRICES:
Finished

Asia

OF

753,000

119,300

May 23

INC

Europe

SERVE

RESERVE

INDUSTRIAL)

(000's

—

America

Repair

AND

Pennsylvania

South

CONSUMER

8,317,000

614,000

(in 000 kwh.)

(COMMERCIAL

of

and

mated

1,125,000

May 16

100

=

March

140,699,000

102,475,000

.May 16

INDEX—FEDERAL

AVERAGE

of

tons) '

North

To

INSTITUTE:

BRADSTREET,

*

$73,620

(BUREAU OF MINES)—

To

$237,861,000

i—May 16

:

;

SYSTEM—li)47-49

•

*$74,941

of March:

exports

To

628,286

$282,232,000

'

DEPARTMENT

"656,899

clay 21

_

S.

(net

754,448

MINES):

and

coke* (tons)

Month

lay 21

lignite (tons)
Pennsylvania anthracite (tons)..

/

20,321

1,251,100

COAL EXPORTS

$257,642,000
155,167,000

day 21

BUREAU

S.

COMMERCE—Month

-lay 21

.

.

Bituminous

.

10,062

*20,973

$75,179

To

—

municipal—.

OUTPUT

751,628

$43,237

*10,120

_

DIVIDENDS—PUBLICLY REPORTED BY
S.
CORPORATIONS—U. S. DEPT. OF

omitted)

.

May 21

Federal

765,411

•

-

•$43,848

21,227

To

:

construction
and

Available

ENGINEERING

—

construction

construction

State

■

10,181

U.

U.

freight received from connections

loaded

CASH

Not

RAILROADS:

Revenue

'

$43,771

_I———I—

Total

(Strike)

_

Kerosene

,

Ago

March

SERIES —Month

dollars):

19,685.000

fuel

Resicual iuel

''■

of

Year

Month

COM¬

2,656,000

May 16

Kerosene output

'

of

OF

Previous

Retail

22,736,000

__

of that date:

are as

6,686,000

22.960.000

(bbls.)

output

Distillate

•

NEW

DEPT

—

Wholesale

/

lay 1(5

Gasoline

,

INVENTORIES

(millions

of

.lay 16
(bbls.)——

average

either for the

are

Month

BUSINESS

Manufacturing

output—daily

——

stills—daily

of quotations,

cases

Latest

MERCE

—May 31

in

or,

Ago

/AMERICAN PE1ROLEUM INSTITUTE:
Crude

Dates shown in first column

Year

Ago

production and other figures for the

cover

that date,

on

39

of

Jan.

1,

figure.

Slncludes 610,000 barrels of foreign crude

1953

against

as

the Jan.




1,

1952 basis of

luns.

108,53/670

113.4

113.6

§ Based

tons.

on

new

annual

113.2

capacity of

ZINC OXIDE

(BUREAU OF MINES)— Month of

March:

at

(short

117,547,470 tons
♦Revised figure.

of

18,363

tons)

month

17,034

14,864

16,138

tons)

(short

tons)—_

14,954

13,814

28,234

26,009

31,646

40

The Commercial and Financial Chronicle... Thursday, May 28, 1953

(2340)

^INDICATES

Registration

Securities Now in
Wallace, Idaho
notification) 100,000 shares of non¬
assessable common stock. Price — 15 cents per share,
proceeds
To develop mining claims. Underwriter —
Wallace Brokerage Co., Wallace, Idaho.
Aberdeen Idaho Mining Co.,

The First Boston Corp. and Lazard Frerei
(jointly); Union Securities Corp.; Smith, Barney
Equitable Securities Corp. Bids — Received on
May 25 at 70 Pine St., New York, N. Y., were rejected.
The first group mentioned bid 101.4011 for an interest
rate of 5% and a syndicate headed by Smith, Barney &
Co. bid 100.0788 for an interest rate of 514%.

art & Co. Inc.;
&

JMarch 30 (letter of

—

Philadelphia, Pa.

ACF-Brill Motors Co.,

j&4>ril 20 filed 215,360 shares of common stock (par $2.50)
•ind 44,303.5 common stock subscription warrants. Price
—At prices not less than 50 cents per share of stock and
25 cents per warrant below current market. Proceeds—
*To Allen & Co., New York. Underwriter—None.

Proceeds—To repay bank loans and for new con¬
Underwriter

be

To

Beane

com¬

Co.; Equitable Securities Corp. and Central Re¬
Co. (jointly); Merrill Lynch, Pierce, Fenner &
and Union Securities Corp. (jointly). Bids—To

be received up to noon

(EDT) on June 10 at Two Rector

Armstrong Rubber Co.
of 5% convertible subordinated

March 31 filed $4,000,000

May 1, 1973. Price—To be supplied by

debentures due

Proceeds—For working capital. Business—

amendment.

Inc., New York

Underwriter—Reynolds

Manufacturer of tires and tubes.

April 24 filed 200,000 shares of common stock (no par)
"Interests in Employee Stock Invest¬
ment Plan." Proceeds—For general corporate purposes.

&

to be offered under

Co., New York. Offering—Temporarily postponed.

Feb.

filed

27

series of 1952 (no par) (convertible

prior to June 15, 1962) to be offered for subscription by
officers and employees of company and its American
and Canadian subsidiaries under a "Restricted Stock Op¬

May 13 filed 125,000 shares of capital stock (par $4) to
t>e offered for subscription by stockholders on or about
June 2 on the basis of one new share for each four

tion

Plan

Employees." Price—Alternate

for

provision*

Price—To be
supplied by amendment. Proceeds—For working capital.
Office—St. Louis, Mo. Underwriter—Kidder, Peabody &

price at 85% and 100%, respectively,
of the market value of the stock at the time the option*

Co., New York.

part for property additions and improvements. Under¬

held; rights to expire about June 17.

American

fix the purchase

writer—None.

Blyth & Co., Inc., and Goldman, Sachs & Co.
^jointly). Bids — Tentatively scheduled to be received
■up to 11 a.m. (EDT) on June 9 at 30 Church St., New
"York 8, N. Y.

Corp.;

Athabasca Uranium Mines,

Atomic Uranium Corp.,

Denver, Colo.
(letter of notification) 232,000 shares of com¬
mon stock (par 10 cents).
Price—$1.25 per share. Pro¬
ceeds—For exploration.
Office—Interstate Trust Bldg.,
TVnver, Colo. Underwriter—Luckhurst & Co., Inc., New

(in denominations of $1,000 each). Proceeds — For working capital. Business—
IFood processing machinery.
Underwriter—Gordon
Craves & Co., New York.
May

12

shares

Price—At par

(letter of

of

common

notification)
stock

(no

par)

York.

IN. J.

1^'

subscription by

common

•capital.

to

repay

Underwriter

—

bank

loans

and

due

1964; 8,000 shares of 6% preferred stock (par $50);
depositary receipts representing 8,000 shares of com¬
mon stock
(par $1) to be offered in units of a $1,000
debenture, eight shares of preferred stock and depositary
receipts representing eight shares of common stock. Price
$1,550 per unit. Proceeds—From sale of securities, to¬
and

gether with $4,000,000 to be borrowed from bank, to ac¬
quire airplanes and equipment and for working capital.
Underwriter—Union Securities Corp., New York.

ic Bangor Hydro-Electric Co., Bangor, Me. (6/16)
May 26 filed 45,254 shares of common stock (par $15) to
be offered for subscription by common stockholders of

for

working
C. K. Pistell & Co., Inc., New

record

Proceeds

to

—

of

one

construction

For

be

offered

for

of record June 5

by competitive
Halsey, Stuart & Co. Inc.;

new

share

for each

six

program.

Underwriter

June 2 at 70 Pine St., New
York, N. Y.
Arkansas Louisiana Gas Co.

Blackwood

subscription by

common

the basis of

new

on

one

(no par)
stockholders

share for each

& Nichols

Ltd., Toronto, Canada
stock (par $1).
64.48 cents per share. Proceeds—
common

acquire leases and for corporate purposes.- *?Underwriter—None. To be named by amendment.
/ ■.
?

Brooks & Perkins, Inc., Detroit, Mich.
' ' V
April 22 (letter of notification) 6,475 shares of common
stock (par $1). Price—$6 per share. Proceeds—To un¬
,




to

all

offices

$5) and
Co.

on

stock (par $5) of Northwest Cities Gas
l-for-5V2 basis, plus 25 cents in cash. Price—

common
a

$25 per share. Proceeds — To acquire aforementioned
stocks. Underwriter—Sheridan Bogan Paul & Co., Phila¬

delphia, Pa.
Carolina Casualty Insurance

Co., Burlington, N. C.

(letter of notification) 103,506 shares of class
B non-voting common stock (par $1) being offered to
stockholders of record April 17 at rate of one new share
for each five shares held; rights to expire July 17. Price

April 29

—$2

per

share.

Proceeds—To increase capital and sur¬
N. C. Un¬

Office—262 Morehead St., Burlington,

plus.

derwriter—None.

Central City Milling

March 4 (letter of
mon

stocks.

—For

& Mining Corp.
notification) 1,800,000 shares of com¬

Price—At par (10 cents per share). Proceeds

mining operations. Underwriter—R. L. Hughes &

Co., Denver, Colo.
Central Fibre Products Co., Inc., Quincy, III.
March 23 (letter of notification) 2,400 shares of common
stock (par $5). Price—At market (approximately $39.50

stockholders at rate of

held.

one

new

share for each ten

now

share. Proceeds—For working cap¬
Office—Hartford Road, Manchester, Conn. Business
Price—$11

ital.

per

—Manufactures and sells textiles. Underwriter—None.

Chicago Bridge & Iron Co.
May 11 (letter of notification) 6,112 shares of common
stock (par $20) to be offered for subscription of em¬
ployees. Price—$49.08 per share. Proceeds—For general
corporate purposes. Offices—1305 West 105th St., Chi¬
cago,

111. Underwriter—None.

Financial Corp., New York (6/4)
May 15 filed $50,000,000 of debentures. Price—To be
supplied by amendment. Proceeds—For working capital.
Underwriters—Dillon, Read & Co. Inc.; Kuhn, Loeb &
C.l.T.

Co.; and Lehman Brothers; all of New York.
Corp., Philadelphia, Pa.
filed (amendment) 500,000 shares of 6% cu¬
mulative preferred stock (par $1) and 250,000 shares of
common
stock (no par) to be offered in units of two
shares

of preferred stock and one share of common
Price—$3 per unit. Proceeds—For working capi¬
Underwriter—Frank M. Cryan & Co., New York,

stock.

tal.

Statement effective about Feb. 13.
•

Consolidated Gas,
Of

Baltimore

Electric Light & Power Co.

(6/9)

,

derwriter, Walling, Lerchen & Co., Detroit, Mich.

Co.

Baltimore, Md.
Underwriters Investment Corp.
May 25 (letter of notification) 13,000 shares of class A
stock (par $10).
Price—$20 per share. Underwriters—
★ Consolidated

F.

D.

Keith, S. O. Ryan and A. C. Decker, who will

re¬

ceive 1V2 shares of class B common stock for each share
of class A stock sold.

To

Private Wires

Seattle, Wash.

The First Boston Corp. and White, Weld
(jointly); Harriman Ripley & Co. Inc. and Alex.
Brown & Sons (jointly). Bids—Expected to be received
up to 11:30 a.m. (EDT) on June 9 at company's office in

Price—Approximately
,

Chicago

Gas Corp.,

(letter of notification) 60,720 shares of com¬
mon stock (no par) to be offered in exchange for 11,400
shares of 8% cumulative convertible preferred stock (par

&

Bristol Oils

Cleveland

writer—Harry H. Daley, San Francisco, Calif.

art & Co. Inc.;

Underwriter—None.

Sept. 25 filed 1,000,000 shares of

Pittsburgh

chase equipment and for development costs.
Office—
Pershing County Court House, Lovelock, Nev. Under¬

oil and gas leases.

working capital. Underwriters—Laird Securities
Co., Inc., and Laird, Bissell & Meeds, both of Wilming¬
ton, Del.; and Harrison & Co., Philadelphia, Pa.

San Francisco

Inc., Lovelock, Nev.

May 8 filed $25,000,000 of first refunding mortgage
bonds, series Y, due June 1, 1983. Proceeds—To finance
expansion program. Underwriters — To be determined
by competitive bidding. Probable bidders: Halsey, Stu¬

and for

<

Cal-Alta Oil & Mining Co.,

May 21 (letter of notification) 250,000 shares of common
stock. Price—At par ($1 per share). Proceeds—To pur¬

Co., Oklahoma City, Okie.,

Brandywine Raceway Association, Inc.,
Wilmington, Del. (6/1-4)
May 14 filed $1,600,000 of 6% debentures due June 1,
1978 and 160,000 shares of capital stock (par $1) to be
offered in units of one $500 debenture and 50 shares of
stock.
Price—$600 per unit. Proceeds—To repay debt

Boston

held (for a
waived their
$1,014,500 of
and working
capital. Underwriters—Dallas Rupe & Son, Dallas, Tex.;
Carl M. Loeb, Rhoades & Co., New York; and Straus,
Blosser & McDowell, Chicago, 111. Offering—Postponed.

$100 of bonds for each 28 shares of stock
14-day standby). Certain stockholders have
rights. Price—At par. Proceeds—To repay
outstanding notes and for drilling expenses

Code Products

•

Philadelphia

5%'% convertible sink¬

ing fund mortgage bonds due Nov. 1, 1962, to be offered
for subscription by common stockholders at the rate of

and Oil & Gas Co.,
Madison, N. J.
May 1 filed 359 working interests in oil and gas lease*
to be offered for sale "as a speculation." Price—$1,392.75
per
working interest.
Proceeds—For development oi

April 22 filed $35,000,000 of first mortgage bonds due
*978. Proceeds—To
repay $24,500,000 bank loans and for
•lew
construction, etc. Underwriters—To be determined
t>y competitive bidding. Probable bidders: Halsey, Stu¬

.

Byrd Oil Corp., Dallas, Tex.,
Oct. 22 filed $1,750,000 of 10-year

April 20

held; rights will expire on June 18. Price—
To be supplied by amendment. Proceeds—For a mod¬
ernization and expansion program. Business—Produces
beryllium alloys. Underwriter—Francis I. du Pont & Co.

on

New York.

improvements. Underwriter—Graham & Co.,

Pittsburgh, Pa.

—

four shares

(joint¬
ly); Equitable Securities Corp.; Smith, Barney & Co.;
!31yth & Co., Inc. Bids — To be received up to 11 a.m.
'•

rate

Beryllium Corp., Reading, Pa. (6/8)
May 15 filed 88,385 shares of common stock

"*£he First Boston Corp. and Lazard Freres & Co.

<EDT)

at

Smith, Barney & Co., New York.

Cas Corp. In lieu thereof, preferred stockholders
may
olect to take cash.
Proceeds—To retire said preferred
•stock. Underwriter
To be determined
—

16

(with an oversubscription privilege); rights
to expire July 1.
Price—To be supplied by amendment.

of debentures in exchange for each share of 6% cumu¬
lative preferred stock (par $10) of Arkansas Natural

bidders:

June

shares held

Arkansas Fuel Oil Corp., Shreveport, La. (6/2)
•May 1 filed $23,000,000 of sinking fund debentures due
€973 to be offered at rate of $10.60 principal amount

Probable

for capital

Cheney Brothers, Manchester, Conn.
May 8 (letter of notification) 23,872 shares of common
stock (no par) to be offered for subscription by common

Co., Inc., New York.

Aviation

Equipment Corp. (6/2)
April 17 filed $1,000,000 of 6% subordinated debenture*

York.

•ridding.

redeem first mortgage

per share). Proceeds — To E. Carey, Jr., and W. D. P.
Carey, the two selling stockholders. Underwriters—Bosworth, Sullivan & Co., Denver, Colo.

•

Underwriter—None,

remainder

(in denominations of $100 and $500). Proceeds—To
bonds, to repay bills payable and

par

writer—Luckhurst &

not exceeding 15,000
to be offered about

*»V Applied Science Corp. of Princeton
•May 21 filed $750,000 of 6% guaranteed sinking fund 10&ear debenture notes due April 30, 1963, of this company
*and 75,000 shares of common stock (par one cent) of
IBradco, Inc., to be offered in units of $100 of notes and
40 shares of stock. Price—$105 per unit. Proceeds—For
acquisition of stock of two companies, who will borrow
the

funding mortgage bonds dated July 1, 1953. Price—At

ir Atomic Uranium Corp., Denver, Colo.
May 21 (letter of notification) 232,000 shares of common
stock (par 10 cents). Price—$1.25 per share. Proceeds—
To repay debt and for improvement program.
Under¬

(5/29)

stock holders of
•record May 15, at the rate of one new share for each
three shares held (with an oversubscription privilege);
rights to expire Junq 2£. Price—$10 per share. Proceeds
—r-for working capital. Office—47 Fulton St., Newark. 2,
•May 29, for

Uranium Co.,

March 23

Machinery Corp., Orlando, Fla.
Hay 18 (letter of notification) $200,000 of 5% convertible

American National Finance Co.

Ltd.

(formerly
Ltd.).
April 17 filed 500,000 shares of common stock (par 10
cents). Price—$1.25 per share. Proceeds—For engineer¬
ing, development and mining expenses. UnderwriterGeorge D. Clarke, Ltd., 50 Broad Street, New York.
American-Canadian

American

•notes due 1963.

granted. Proceeds—For working capital and used in

are

(6/9)

Co.

Electric

Gas &

-

March 30

100,000 shares of cumulative second pre¬

ferred stock, $1.50

(6/3)

Hay 13 filed 800,000 shares of common stock (par $5).
(Proceeds—To be invested in operating subsidiaries. Un¬
derwriters—To be determined by competitive bidding,
frobable bidders: First Boston Corp.; Union Securities

Sunday's Water Co., Linesville, Pa.

ISSUE

May 8 (letter of notification) $35,000 of 20-year 5% re¬

Cascade Natural

Ashland Oil & Refining Co.

^Underwriter—None.

shares

REVISED

St., New York, N. Y.

Weikel, Los Angeles, Calif.

Insurance Co.

determined by

Weld &

public

Libaire, Stout & Co., New

American Automobile

—

petitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Lehman Brothers and Stone & Webster Se¬
curities Corp. (jointly); The First Boston Corp.; White,

York.
Acteon Gold Mines Ltd., Vancouver, B. C., Can.
April 22 filed 250,000 shares of common stock (no par),
^rice—$1 per share (net to company). Proceeds —To
yiurchase equipment and supplies. Underwriter—M. H. B.
Air Reduction Co.,

mortgage bonds due

of first

7

struction.

May 7

writer—Eisele & King,

$18,000,000

filed

May
1983.

PREVIOUS

ITEMS

•

(6/10)

Power & Light Co.

• Arkansas

Acryvin Corp. of America, Inc.

(letter of notification) 3,000 shares of common
♦stock. Price—At market (about $2 to $2*/2 per share).
JProceeds—To Nash S. Eldridge, the selling stockholder.
Office—464-72 East 99th St., Brooklyn 12, N. Y. Under¬

Co.

& Co.;

ADDITIONS;

SINCE

Office—209 Town

House, Shreve¬

port, La.

Cooperative Grange League Federation
Exchange, Inc.
Feb. 13 filed 50,000 shares of 4% cumulative preferred
stock (par $100) and 700,000 shares of common stock
(par $5). Price—At par. Proceeds—For working capital,
Business—Production of dairy and poultry feeds. Office
—Ithaca, N. Y. Underwriter—None.

Volume 177

Number 5224 ...The Commercial and Financial Chronicle

Corona do

Copper Mines Corp.

Jan. 23 (letter of notification) 299,970 shares of common
etock (par 10 cents).
Price—$1 per share. Proceeds—
To acquire leases, for exploration expenses, to repay
loans and for working capital.
Office—100 West 10th
St., Wilmington, Del. Underwriter—Charles J. Maggio,
Inc., New York. Letter to be withdrawn.
Dakota-Montana Oil Leaseholds, Inc., N. Y.
May 1 (letter of notification) 300,000 shares of common
stock (par 50 cents). Price—$1 per share. Proceeds—For

Edgar Brothers Co., Metuchen, N. J. (6/5)
May 15 filed 100,000 shares of common stock (par $1)
to be offered for

two-thirds of

subscription by stockholders

share for each share

a

5,000 unsubscribed shares to

at rate of

held; not

more

than

offered to certain

be

Decca

Records, Inc. (6/9)
May 19 filed 318,625 shares of capital stock (par 50
cents), to be offered for subscription by stockholders of
June

record

9

at

of

rate

one

share

new

for

each

3*4

shares held;

rights to expire on June 25. Price—To be
supplied by amendment. Proceeds—For working capi¬
tal, etc. Underwriters—Reynolds & Co. and Laurence
M. Marks & Co., both of New York.

Derby Gas & Electric Corp.
May 14 filed 47,039 shares of common stock (no par),
be offered for subscription by common stockholders

to

on

basis

a

of

one

unsubscribed

share for

new

stock

be

to

six shares

each

offered

to

officers

held;

and

em¬

ployees. Price—To be supplied by amendment. Proceeds
bank loans and for general corporate pur¬

-—To repay

poses.
Underwriter—To be named later. White,
& Co. underwrote common stock financing in
1951;
& Co. in 1949.

Weld
Allen

Dixie Fire &

Casualty Co., Greer, S. C.
(letter of notification) 8,000 shares of common
(par $10) being offered first to stockholders of
April 1 at rate of one share for each 6Y4 shares

April 9
stock
record

held; rights to expire May 25. Price—$25

per share. Pro¬
Underwriter—None.

ceeds—For working capital.

$279,500 term loan debt and for working
Underwriter—D. A. Lomasney & Co.. New York.

capital.

ferred stock.

Price—At par ($10 per

share).

Electronic

Associates, Inc.
May 11 (letter of notification) 10,000 shares of common
stock (par $1) to be offered for
subscription by stock¬
holders

of record June

expire July 1. Price

pre¬

Proceeds—

To redeem first preferred stock and for working capital.
Office—2519 Fourth Ave.,
Moline, 111.
Underwriter—

Harry Hall Co., Rock Island, 111.

1

on

$15

—

l-for-10

a

basis; rights to

share. Proceeds

per

For

—

working capital. Office — Long Branch Ave., Long
Branch, N. J. Underwriter—None.

Fairway Foods, Inc., St. Paul, Minn.
May 8 filed $1,600,000 first mortgage lien AY2Y0 bonds
to mature $40,000 annually from 1955 to
1994, inclusive.
Price—At 100% of principal amount. Proceeds—To con¬
struct

new

warehouse.

Underwriter—None.

.

Wash.

\

Pittsfield, Inc.
y
May 8 (letter of notification) 19,638 shares of 7% cumu¬
lative convertible preferred stock
(par $11) and 19,638
shares of common stock (par $1) being offered first to
holders of participating preferred stock of record May
15, in units of one preferred and one common share;
rights to expire on June 10. Price—$15 per unit ($15.50
to

public). Proceeds—For working capital. Underwriters
—Simon, Strauss & Himme, New York; William N. Pope,
Inc., Syracuse, N. Y., and Chace, Whiteside, West &
\Winslow, Inc., Boston, Mass.
Financial Credit Corp., New York
May 8 (letter of notification) 150,000 shares of 7%
stock. Price

cumu¬

At par ($2 per share).
working capital. Underwriter — E. J.
Fountain & Co., Inc., New
York, N. Y.
—

Proceeds— For

Fischer's Flavor Seal, Inc.,
Spokane, Wash.
May 19 (letter of notification) 4,000 shares of common
Stock.
Price—At par ($10 per share).
Proceeds—For

' v

.

Price—At

May 26, 1953
:

(Bids

w,

1

EDT)

p.m.

(To

New

,

be

San

American National Finance Co
(Offering

Common

stockholders—no

to

-

■

v

'

Brothers)

(Lehman

-

11

R.

Jobin

1, 1953
Brandywine Raceway Association,

June

(Bids

Debs. & Stock

;

Securities

Harrison

' .and

/

Inc.;

Co.,

&

Laird,
Co.l

Bissell

Meeds;

&

City Bank & Trust Co. of Reading, Pa

to

10, 1953,/
Bonds

share of each class of stock.

Proceeds

Common

be

invited)

$3,000,000

v

Brothers)

372,273

Paducah, Ky.

'

Texas Western Oil Co., Inc

..Common

*

'

.

(Walter

Aronheimi

Juno

$250,000

(Offering to stockholders—bids

Common
EDT)

noon

ic Gas Service Co. (6/29)
May 22 filed 1,500,000 shares of common stock (par $10>~
Proceeds—To be used by Cities Service Co. to increase
investment in Empire Gas & Fuel Co., another sub¬
sidiary. Underwriters—To be determined by competitive
bidding. Probable bidders: Blyth & Co., Inc. and Kidder,
Peabody & Co. (jointly); Smith, Barney & Co.; Stone
&
Webster Securities Corp. and Stern Bros.
& Ce.
(jointly). Bids — Tentatively planned for about June
29

or

30.

Debentures
.

(Bids

11

EDT)

a.m.

$23,000,000

Aviation Equipment Corp
(Union

General

Dynamics

Securities

,

Inc.)

•

.

o.

Greenshields

& Co.,

(Bids

Texas

Utilities

11

235,000 shares

EDT)

a.m.

350,000

&

(Kidder,

Peabody

to

(Common

Co.

&

offered

be

Inc.)

Co.)

to

Indiana, Inc.

Pfd. & Com.

common

by

Read

&

Co.

Lehman

Kuhn,

Brothers)

&

,

(Mortimer

Inc'.
Inc.)

Co.,

Brothers
(Offering
D.

•

-

A.

5, 1953

to

stockholders—underwritten

(Bids

June 8,

1953

York

New

(Offering

to

Common

stockholders—underwritten
duPont

Mutual

&

Co.)

Telephone Co.

(Offering .to

(Bids

Western

by
shares

11

Francis

200.000

EDTi

a.m.

shares

Hall
.,

&

EDT)

EDT)

Decca
-

Records,

11:30

a.m.

Common

EDT)

&

f

Inc

an<f Laurence M. Marks

&

Co.)

by

-

(Bids

.Bonds
11

a.m.




EDT)

poses.

$1,250,000

.Class B

1953
Common

Co
invited)

about

$6,000,000 *

<\

$35,000,000

Common
underwriting)

about

$20,000,000

29, 1953
Common

Gas Service Co
(Bids

to

be

invited)

1,500,000

shares

30, 1953
Pennsylvania Electric Co

$7,000,000

a.m.

EDT)

Bonds

share for stock. Proceeds
—

Hotel

and

land

—

For

new

development

bidding.

Equip. Trust Ctfs.
be

Underwriter—None.

invited)

'

(6/9)

(6/23)

May 20 filed 350,000 shares of common stock (no pai%<
Proceeds—To retire bank loans and for new construc¬
tion. Underwriters — To be determined by competitive

Aug. 3, 1953
RR.
to

per

Business

* Gulf States Utilities Co.

Bonds

Denver & Rio Grande Western
(Bids

St»„

& Co. (jointly); Union Securities
Corp.; Equitable Securities Corp.; Lehman Brothers.
Bids—Tentatively expected to be received up to 11 a.m.
(EDT) on June 9.

$12,500,000

Commonwealth Edison Co...
\
(Bids to be Invited) $40,000,000

'

clear¬

& Hutzler and Drexel

July 8, 1953

<

*

11

as

May 8 filed $7,000,000 first mortgage bonds due 1963.
Proceeds—To repay $4,000,000 of bank loans and for new
construction. Underwriters—To be determined by com¬
petitive bidding.
Probable bidders:
Halsey, Stuart *5;
Co. Inc.; Kuhn, Loeb & Co.; The First Boston Corp.?
Kidder, Peabody & Co. and White, Weld & Co. (jointly);
Merrill Lynch, Pierce, Fenner & Beane, Salomon Brew.

-*•'

24, 1953

June

15

••

Gulf Power Co.

Bonds

EDT)

a.m.

share for each

it Gulf Life Insurance Co. (6/17-24)
'-v
May 27 filed 999,216 shares of common stock (par $2.50).
Price—To be supplied by amendment.
Proceeds—To 4Qi
selling stockholders. Office—Jacksonville, Fla.
Under¬
writers—Equitable Securities Corp., Nashville, Tern*.;
and R. S. Dickson &
Co., Charlotte, N. C.

*

Corp..

Common

Reynolds & Co.

318,625 shares

Gulf Power Co
-

Co.)

22, 1953

stockholders—no

(Bids

$25,000,000

.(Offering to stockholders—underwritten

\

to

800,000 shares

Consolidated Gas, Electric Light & Power Co.
of Baltimore
Bonds
(Bids

$3,150,000

June

June 9, 1953
a.m.

Gas

$1,955,050

American Gas & Electric Co
(Bids 11

(Offering

$40,000,000

Inc.)

Co.

United

..Debentures

Light & Telephone Co., Inc._..__Prcferred
(Harris,

(Bids 11

,

new

June 24. Price—To be

Gray Manufacturing Co., Hartford, Conn.
May 1 filed 55,313 shares of capital stock (par $5) to be
offered for subscription by stockholders on the basis*
of one new share for each four shares held as of May 28;
rights to expire about June 17. Price—To be supplied
by amendment. Proceeds — For general corporate pur¬

shares

I.

Common

Co.___.__

be

June

(Honolulu)

stockholders—no underwriting)

Northern Natural Gas
.

88,385

170.000

Telephone Co

"

Beryllium Corp.

to

on

Underwriter—Gearhart & Otis, Inc., New York.

Preferred

Gulf States Utilities

$1

construction.

...Common

June 23,

by

100,000 shares

one

W., Washington, D. C. Underwriter—None.

tures and

1953

__

Common

Lomasney & Co.)

Smith,

(Offering to stockholders—no underwriting)

Co

rights to expire

shares

Rogers Corp
June

•

Edgar

by

shares

19, 1953

June

$298,000

„

Co., Ltd., Nassau
$1,350,000 20-year 6% first mortgage convesrtible debentures due March, 1973, and 1,565,000 shares
of class A stock (par 10 cents). Price—Par for deben¬

Common

Reid

\

Motors Acceptance Corp.

Grand Bahama

Erie Resistor Corp
(Fulton,

General

of the company. Priee—Op¬
$9.50 per share.
Proceeds—For

Feb. 3 filed

Common

Corp.»

noon

at

Government Employees Insurance Bldg., 14th and L
N.

1953

17,

exercisable

shares held; rights to expire on June 24. Price—
$15 per share. Proceeds—For working capital. Office-

;

Co

Boston

(Bids

...Common

Burnside &

B.

'

$7,000,000

45,254

Co.)

June

Common

portion of the offering.

five

Bonds

York, Chicago & St, Louis RR.^__Eq. Tr. Ctfs.

underwriting!

a

\ • Government Employees Corp.
May T (letter of notification) 12,000 shares of commoa
stock (par $5) being offered to common stockholders of
record April 28 on the basis of one new share for eadN-

and

Co.;

p

,*

Instrument Corp.

.

$20,000,000

Light Co

First

$50,000,000

/Offering to stockholders—no

&

999,216

Kansas Power &

New
Loeb

General Public Utilities Corp

Rockhill Productions,

.

Bonds

invited)

June

Debentures

Inc.;

.

(Equitable Securities Corp. and R. S. Dickson & Co.)

Blyth

shares

4, 1953

Financial Corp

(Dillon,

EST)

a.m.

be

Gulf Life Insurance

(The

C. I. T.

,

.-...-^...Common?

stockholders—underwritten

to

Common
shares '

125,000

pfd. & 472,596

June

I

..

shares

500,000

June 16,
Bangor Hydro-Electric Co
(Offering

stockholders—undewritten

to

GOO,000

&

Co.)

10:30

Barney

Public Service Co. of

$150,000,000

Washington Gas Light Co

shares

June 3, 1953
American Automobile Insurance Co

.■

General Dynamics Corp. (6/2)
May 12 filed 250,000 shares of common stock (par
Price—To be supplied by amendment. Proceeds—To re¬
pay bank loans made to acquire a block of 400,000 share*
of Consolidated Vultee Aircraft Corp.
UnderwriterLehman Brothers, New York, to handle U. S. sales o*
shares, while Greenshields & Co., Inc., will handle Cana¬

Merrill Lynch, Pierce, Fenner & Beane will act
ing agent.
.••••.

Debentures
y.
'
...Common

Co.)

Common
..Common

11

(Bids

&

June 15, 1953
Michigan Consolidated Gas Co

(Bids

Co

r

-

supplied by amendment. Proceeds—To reduce bank loan*

(Merrill^ Lynch, Pierce, Fenner & Beane) 217,000 shares

$7,500,000

Co

EDT)

a.m.

(Allen

(Bids

Bonds

Oklahoma Natural Gas

Stanley

Maryland Casualty Co...

250,000 shares

."(Bids 11 a.m. EDT)

'

v

Common

Iowa Public Service Co
■

.

Corp.)

Corp

(Lehman Brothers and
■

•

Debs. & Stock

,v

and for investments in subsidiaries. Underwriter—None.

11, 1953
General Motors Acceptance Corp
Johnston Oil & Gas Co.....

Arkansas Fuel Oil Corp

>

,

shares held;

828,516 shares

June

(Morgan

2, 1953'

Underwriter—W. L. Lyons

Co., Louisville, Ky.

record June 2 at the rate of

shares

England Electric System

(Offering to stockholders)

.

Price—$12.50 per unitcapital. Office — 107 SoutJi

For operating

—

Fourth St.,

General Public Utilities Corp. (6/4)
May 6 filed 568,665 shares of common stock (par $5) to
be offered for subscription by common stockholders «£

Equip. Trust Ctfs.
Common

(Lehman

New

Undeitw

investment.

Investments, Ltd., St. Peters¬

(6/11)
May 20 filed $150,000,000 of five-year debentures due
July 1, 1958. Price — To be supplied by amendmentProceeds—For working capital.
Underwriter—Morga»
Stanley & Co., New York.
i
'

EDT) $18,000,000

Monterey Oil Co

,

$1,920,000

:

T

it Friendly Finance, Inc., Paducah, Ky.
May 21 (letter of notification) 21,400 shares of 6% prefererd stock (par $10) and 21,400 shares of class B non¬
voting common stock (par $1) to be offered in units cd?

•

Common

Chesapeake & Ohio Ry

Inc.

;

:

working capital.

Bonds

$5,500,000

(Offering to stockholders—Blyth & Co.,: Inc.) 800,000 shares

( Bids noon

(Laird

EDT)

a.m.

Arkansas Power & Light Co

June

■„

burg, Fla.

tions

Diego Gas & Electric Co

Common
shares

500,000

'

executives and employees

Common

$3,000,000

underwriting)

Three States Natural Gas Co
'

<

underwritten)

Jersey Power & Light Co
(Bids

May 29, 1953

.

May 7 filed 57,800 shares of common stock (par $1), issu¬
able upon exercise of certain options held by certain

Merchants National Bank of Detroit

Equip. Trust Ctfs.
$3,930,000
i;/

vv

it Fort Myers Beach Water Works, Inc.
May 21 (letter of notification) $298,000 of 51fe% first;
mortgage bonds due May 1, 1968 and 2,980 shares cdP
common stock (par $1) to be sold in units of one $1,008*
bond and 10 shares of stock. Price—$985 per unit. Pro¬
ceeds—For working capital.
Business—Water distribUrtion system. Underwriter—Goodbody & Co., St. Peters¬
burg, Fla.

General

NEW ISSUE CALENDAR

■

Proceeds—For

market.

writer—Gerard

dian distribution of

Wisconsin Central Ry

^

it Florida Mutual Fund, Inc., St. Petersburg, Fla.
May 25 filed 1,000,000 shares of common stock (par $1>-

one

Federal Loan Co. of

lative preferred

it Eagle Super Markets, Inc., Moline, III.
May 21 (letter of notification) 25,000 shares of 6%

Business—Makes a formula for precessing fresh meat. Office—726 Paulsen Bldg., Spokane^
Wash. Underwriter—R. L. Emacio & Co., Inc., Spokane^

repay

working capital.

Office—535 Fifth Ave., New York, N. Y.
Underwriter—Weber, Millican Co., New York.

working capital.
•

em¬

ployees. Stockholders have waived rights to purchase
58,600 shares.
Price—To stockholders and employees,
$7.45 per share; and to public, $8.50 per share. Proceeds
—To

45

(2341)

Probable bidders: Stone & Webster Securities

Continued
1

on

page

42

*42

The Commercial and Financial Chronicle

(2342)

Continued,

from page 41

Corp.; Merrill Lynch, Pierce, Fenner & Beane and Leh¬
Brothers (jointly); Carl M. Loeb, Rhoades & Co.
Bids—Tentatively expected to be received on June 23.
man

* Link-Belt Co., Chicago, III.
v
May 22 filed 22 793 shares of common stock (par $5) to
be offered for subscription by "selected group of officers
and employees of company and its subsidiaries." Price—
$37 per share. Proceeds—For working capital. Under¬
writer—None.

★ Heat-O-Matic, Inc., Pittsburgh, Pa. (6/8)
May 22 (letter of notification) 20,000 shares of common
stock (par $3) to be offered for subscription by present
stockholders until June 30, 1953. Price—$1 per share to

May 8 filed 600,000 shares of common stock (par 5 cents)
to be offered for subscription by common stockholders of

stockholders; $1.50 to public. Proceeds—To pay current
and for working capital. Address—Joseph F.

tion."

Carroll, President, 2886 Glenmore Ave., Pittsburgh

For

liabilities

16,

record May

Pa. Underwriter—None.
Household

27

(letter

of

notification)

1,000

cumulative preferred stock

unit. Proceeds—To payment of $15,000
notes and purchase additional gas equipment. Under¬
writer—Mohawk Valley Investing Co., Inc., Utica, N. Y.
Price—$200

per

★ Hudson Fund, Inc., New York
May 20 filed 500,000 shares of capital stock. Price

—

At

Proceeds—For investment. Underwriter—None.

market.
•

Hydrocap Eastern, Inc., Philadelphia, Pa.
April 27 filed 500,000 shares of common stock, of which
underwriters have agreed to purchase 100,000 shares for
public sale and to use "best efforts" to sell remaining
shares. Price—At par ($1 per share). Proceeds—To es¬
tablish assembly plant and acquire raw materials. Un¬
derwriter—Barham & Co., Coral Gables, Fla.
Insurance Co.

of North

America, Phlla., Pa.
April 16 filed 30,000 shares of capital stock (par $5) to
be offered for sale to employees of company and five
affiliated companies. Underwriter—None.
International Harvester Co., Chicago, III.
April 24 filed 568,000 shares of common stock (no par)
to be offered tor subscription by certain employees of
company and its subsidiaries under Employees' Common
Stock Subscription Plan of 1953. Price—To be supplied
by amendment. Proceeds—For general corporate pur¬

Underwriter—None.

poses.

Interstate Fire &

share-for-share basis "as

a

on

;

a specula¬
Proceeds—

Underwriter—None.

expansion program.
Water Co.,

Casualty Co., Bloomington, III.

$7,500,000

of

(6/2)
first mortgage

bonds

due

June 1, 1983. Proceeds — To repay $1,000,000 bank loans
and for new construction. Underwriter—To be deter¬
mined by competitive bidding.
Probable bidders: Halsey, Stuart & Co.
& Co.; Kidder,

Inc.; First Boston Corp.; Kuhn, Loeb
Peabody & Co. and Blyth & Co., Inc.
(jointly); Lehman Brothers, Bear, Stearns & Co. and
L. F. Rothschild & Co.
(jointly); Union Securities Corp.
and Salomon Bros. & Hutzler
(jointly). Bids—Expected
to

be

received

to

up

11

(EDT)

a.m.

on

June 2

at

61

Broadway, New York 6, N. Y.
Israel Investors, Inc., New York
April 24 filed 86,960 shares of common stock
to be

sold in units of

10

(no par)

Price—$1,150 per
than $1,000 in State of

unit payable in cash or no more
Israel Independence Issue bonds and the balance in
cash.
Proceeds—To aid economic development of Israel. Un¬

derwriter—None.
Jewell Oil

& Gas

Corp., Los Angeles, Calif.
May 11 (letter of notification) 299,975 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
For drilling expenses and
working capital. Underwriter
—East

Coast Securities Corp.,

New York.

Junction City

(Kan.) Telephone Co.
3 (letter of
notification) $206,000 of 4V2% first
mortgage bonds, series A, due Feb. 1, 1977.
Price—100%

March
and

accrued

purposes.

Nebraska.

interest.

Proceeds—For

general

corporate

Underwriter—'Wachob-Bender Corp., Omaha,

loans and for
Boston

new

construction.

Underwriter—The

First

Corp., New York.

—

—

Keystone Helicopter Corp.,
Phila., Pa.
April 23 (letter of notification)
mon

stock

295,000 shares

of

com¬

Underwriter—None.

Philadelphia, Pa.

★ KLB Oil Corp., Wichita Falls, Tex.
May 25 (letter of notification) 120,000 shares of
capital
stock (par one
cent). Price—$2.50 per share. Proceeds—
For working
capital, etc. Office—Wichita National Bank
Bldg., Wichita Falls, Tex. Underwriter—Aetna
Securities
Corp., New York.




Ore. Underwriter—

are

holders of record June 11

—For working
Los

capital. Office

6014 S. Eastern Ave.,

—

Business—Groceries.

Angeles, Calif.

Underwriter—

None.

shares of $1.05 convertible preferred stock
shares as of May 15, 1953), which have been
redemption in July. Underwriter — Merrill
Lynch, Pierce, Fenner & Beane, New York.
unconverted

(190,380

called

for

McCarthy

(Glenn), Inc.
June 12 filed 10,000,000 shares of common stock (par 25
cents). Price—$2 per share. Proceeds—For drilling of
exploratory wells, acquisition of leases and for general
corporate purposes. Underwriter—B. V. Christie & Co.,

Houston, Tex. Dealer Relations Representative—George
A. Searight, 50 Broadway, New York, N. Y. Telephone
WHitehall 3-2181. Offering—Date indefinite.
Mechanical Handling Systems, Inc.
March 31 filed 120,000 shares of common stock

ness—Manufacture

and

sale

of

commercial applications.

conveyors

in

(par $1).

industrial

Office—Detroit, Mich. Un¬

derwriter—Kidder, Peabody & Co., New York. Offering
—Indefinitely postponed.
4
★ Merchants Credit, Inc., Washington, D. C.
May 22 (letter of notification) 450 shares of 6% cumu¬
lative preferred stock (par $100) and 450 shares of com¬
mon stock
(par $1) to be offered in units of one share
of each class of stock.
For

working capital.

ington, D. C.

Price—$101 per unit. Proceeds—
Office—513 11th St., N. W., Wash¬

Underwriter—None.

by company

amendment.

•

Michigan Consolidated Gas Co. (6/15)
May 15 filed $20,000,000 of first mortgage bonds due 1978,
Proceeds—From sale of bonds, plus proceeds from sale
215,000 shares of

Natural
repay

common

stock (par $14) to American

Gas

Co., parent, for $3,010,000, to be used to
bank loans and for construction program. Under¬

writers

To

be

determined

by competitive bidding.
Halsey, Stuart & Co. Inc.; White, Weld
& Co. and Lehman Brothers
(jointly); Smith, Barney &
Co. and Blyth & Co., Inc.
(jointly); Harriman Ripley &
Co., Inc., and Union Securities Corp. (jointly). Bids—
To be received up to 10:30 a.m.
(EDT) on June 15 at 415
—

Clifford St., Detroit, Mich.

if Mid American Oil & Gas Co., Chicago, III.
May 22 (letter of notification) 475,000 shares of
stock

mon

(par 10 cents).

ceeds—To G. W.

ing

Price—At

the market.

Pro¬

Snyder and G. S. Olmstead, the two sell¬

stockholders.

Underwriter—Greenfield

&

Co.,

Inc.,

Nov. 10
stock

&

Refining Co.
(letter of notification) 400,000 shares of

common

(par five cents). Price—60 cents per share. Pro¬

ceeds—To acquire additional properties. Office—927-929
Market St., Wilmington, Del. Underwriter—W. C. Doeh-

Co., Jersey City, N. J. Letter withdrawn May 25.

if Monterey Oil Co., Los Angeles, Calif.

(6/10)

May 21 filed 372,273 shares of common stock (par $1),
of which 110,000 shares are for account of
company and
262,273 for account of selling stockholders. Price—To be
supplied by amendment. Proceeds — To reduce
loans. Underwriter—Lehman
Brothers, New York.

bank

Moore (William S.), Inc.,
Newark, Ohio
May 12 (letter of notification) 52,867 shares of
stock (par $1) being offered for
subscription by
stockholders of record May 22 on

common

share

for

each

share

held

(with

an

oversubscription

11.

Warrants

Price—To be set

expansion

by competitive

and

determined

pro¬

bidders:

Blyth &
Stearns & Co.

Bear,

debenture

bonds

i

t/

7%

dated

Juhe 1, 1953. Price—At par (in
$500 each). Proceeds — For working
capital. Office—1330 Clinton St., Hoboken, N, J. Under¬
writer—None.
{
' -' V ._;4 •: v; ■

denominations

of

New Jersey Power & Light Co.
(6/9) - ^- 4.; :-'y\
May 7 filed $5,500,000 of first mortgage bonds due 1983.
Proceeds—To

tion.

bank loans and for

repay

Underwriters—To

bidding.

Probable

be

determined

construc¬

new

by competitive

bidders:

Halsey, Stuart & Co. Inc.;
Salomon Bros. & Hutzler; Union Securities
Corp, and
White, Weld & Co. (jointly); The First Boston Corp.
and Kidder,
Peabody & Co. (jointly); Carl M. Loeb,
Rhoades & Co.; Equitable Securities
Corp.; Kuhn, Loeb
& Co.; Lehman Brothers and
Goldman,;. Sachs & Co.
(jointly); Merrill Lynch, Pierce, Fenner & Beane. Bids—
Tentatively expected to be received up to 11 a.m. (EDT)
June 9.

on

V-7./V

★ New York Telephone Co., New York (6/23)
4
May 22 filed $35,000,000 of refunding
mortgage bonds,
series G, due July 1, 1984. Proceeds
To repay bank
loans.
Underwriters—To be determined by
competitive
bidding. Probable bidders: Halsey, Stuart &
Co.; Inc.;
Morgan Stanley & Co. Merrill Lynch, Pierce, Fenner &
—

Beane and

11

Glore, Forgan & Co. (jointly); Kuhn, Loeb'&
Tentatively scheduled to be received up to
(EDT) on June 23. Stock Offering—Company

Bids
a.m.

also

—

plans to issue

Telegraph

Co.,

stock

common

and

sell

to

American

its

parent, 700,000
(par $100).

North American Peat Moss

April

10 filed 500,000 shares

cents). Price

$1

—

Telephone

additional

Co., Inc.

of

common

share. Proceeds

per

shares

&
of

(N. Y.)
stock

—

To

(par 10
purchase

equipment and for working capital. Underwriter—R. A.
Keppler & Co., Inc., New York.
•

Northern Natural Gas Co.

May

7

filed

$40,000,000

(6/8)

sinking

fund debentures due
Proceeds—To repay bank loans and for construc¬
tion program. Underwriters—To be
determined by com¬
1973.

petitive bidding.

Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc.; The First Boston Corp. and Kid¬
der, Peabody & Co. (jointly). Bids—Expected to be re¬
ceived up to 11
•

a.m.

(EDT)

on

June 8.

Northlands Oils Ltd., Canada

Nov.

21

filed 1,000,000 shares of
capital stock (par 200
Canadian)
and
subscription warrants
for
600.UOO
shares, which statement was amended May 20 to 200,000

—

offered

and

warrants

in units of

to

one

purchase

share

200,000

of stock

and

shares
one

to

be

warrant.

Price—75 cents per unit. Proceeds—For
drilling of addi¬
tional wells and to purchase
producing wells. Under-

vvriter^-M. S. Gerber, Inc., New York.
Noryn Mines

Ltd.,

Hull,

Quebec,

Canada

■■

April 23 filed 500,000 shares of common stock
Price—50 cents per share. Proceeds—To
for other corporate purposes.

Oklahoma

May

Natural

Gas

(par $1).
repay loans and
Underwriter—None. -

Co.

(6/2)

7jfiled

235,000 shares of common stock (par $7.50).
Proceeds—To repay, in part, bank loans
aggregating $6,000,OOQf incurred in connection with the company's!

con-

structibn

program.
Underwriters—To be determined by
competitive bidding. Probable bidders: Stone & Webster
Securities Corp.; Shields & Co.; Lehman Brothers and

Harriitian Ripley & Co., Inc.
ceived up

to 11

a:m.

(EDT)

(jointly). Bids—To be
on

re¬

June 2 at 90 Broad st.,

York, N. Y.

★ Oregon Fibre Products, Inc., Pilot Rock, Ore.
May 26 (letter of notification) $292,200 of sinking fund
debentures due Jan. 1, 1968 and 5,844 shares of common
stock (par $1) to be offered in units of
$100 of deben¬
tures and two shares of stock.

April 14 (letter of notification) 5,000 shares of common
stock (no par) to be offered for
subscription by com¬
mon stockholders of
record April 29 at rate of one new

June

be

ceeds—For working capital.

(N.J.) Water Co.

share

Proceeds—For

Underwriter—Fulton, Reid & Co., Cleveland, Ohio.
Mount Holly

about June 25.

or
on

2-for-5 basis; rights
expire June L Price—$5.50 per share. Proceeds—To re¬
tire 6% convertible debentures. Business—Retail
store.
a

new

if New Jersey Casket Co., Hoboken, N. J.
May 25 (letter of notification) $50,000 of 10-year

New
common

one

oversubscription privi¬

an

Co., Inc., Lehman
(jointly); Merrill
Lynch. Pierce, Fenner & Beane, Kidder, Peabody & Co.
and White, Weld & Co.
(jointly). Bids—To be received
up to noon (EDT) on June 10 at 441 Stuart
St., Boston
16, Mass.

,

Mid-Gulf Oil

Probable

Brothers

shares
com¬

June 8.

on

Underwriters—To

gram.

class of stock.

Price—$6 per unit. Proceeds—For work¬
ing capital. Business—Purchase, processing, refining and
sale of Fluorspar. Underwriter — To be supplied by

on

expected to be mailed

stock

stock¬

common

the basis of

on

(with

lege); rights to expire

Co.

Mex-American Minerals Corp., Granite City, III.
Nov. 3 filed 113,000 shares of 6% cumulative preferred

of

10 shares held

bidding.

+ Maryland Casualty Co., Baltimore, Md. (6/11)
May 22 filed 217,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—To be
applied towards payment of the redemption price of

•

(par 10 cents). Price—$1 per share.
Proceeds
To purchase helicopter and
equipment and for work¬
ing capital. Office—Land Title
Bldg.,

Price—$101 per unit. Pro¬
working capital. Business—Credit service.

For

—

Office—Times Building, Portland 4,
None.

for each

ler

★ Keefe Co., Washington, D. C.
May 25 (letter of notification) 35,000 shares of
common
stock. Price
At par ($1 per
share). Proceeds
For
working capital. Office—1701-16th St., N.
W., Washing¬
ton, D. C. Business—Manufacturer of
religious articles
Underwriter—None.

ceeds

+ Market Basket, Los Angeles, Calif.

New York.

★ Kansas Power & Light Co. (6/17)
May 25 filed 170,000 shares of common stock
(par $8.75)
and 50.000 shares of
preferred stock (par $100). PriceTo be supplied
by amendment. Proceeds—To repay bank

share of each class of stock.

May 25 (letter of notification) 14,886 shares of common
stock (par 50 cents). Price—$11.50 per share. Proceeds

Probable bidders:

★ Johnston Oil & Gas Co. (6/11)
May 21 filed 500,000 shares of common stock (par
$1).
Price—To be supplied by amendment.
Proceeds—To re¬
pay indebtedness and for general corporate
purposes.
Underwriter—Allen & Co., New York.

Inc., Portland, Ore.
(letter of notification) 1,400 shares of 6% nonpreferred stock (par $100) and 1,400 shares
common
stock (no par) to be sold in units of one

(par $1) to be offered for subscription by

stock (par $5) and 113,000 shares of common stock (par
10 cents) to be offered in units of one share of each

shares each.

National Credit Card,

May 11

None.

April 14,

share held;

share for each

and

filed

Mutual Telephone Co., Honolulu
(6/8)
May 18 filed 200,000 shares of common stock to be of¬
fered for subscription by common stockholders of record
June 1, 1953 and to employees. Price—At
par ($10 per
share). Proceeds—For expansion costs. Underwriter—
None.
'
'/■ ■1

New England Electric System
(6/10)
May 4 filed 828,516 additional shares of common

of record

Price—$16.50 per share. Proceeds—To increase capital
and surplus. Underwriter—None.

1

ditions. Underwriter—None.

on basis of two-thirds of a
rights to expire on May 26.
Price—At par ($25 per share). Proceeds—To pa/, in
part, cost of new water filtration plant. Underwriter—

holders

Price—To be supplied by amendment. Proceeds—To pur¬
chase common stock of The Louden Machinery Co. Busi¬

Iowa Public Service Co.

privilege); rights to expire May 29. Price—$22 per share.
Proceeds—To repay bank loans, etc. and for capital ad¬

of

Manheim, Pa.

(letter of notification) 2,000 shares of common
stock to be offered for subscription by common stock¬

March 26 filed 28,000 shares of capital stock
(par $10)
to be offered for subscription by stockholders of record
April 1 at the rate of 1 3/11 shares for each share held

May

Thursday, May 28, 1953

cumulative

May 5

shares of 6%
(par $25) and 125 shares of
common stock
(par $10) being offered in units of eight
shares of preferred and one share of common stock.
April

8

Price—To be supplied by amendment.

Manheim

Service, Inc.

Sulphur Corp., Wilmington, Del.

Lone Star

...

Price—$102 per unit: Pro¬
Underwriter—None.

if Otis Oil & Gas Corp., Denver, Colo.
May 21/(letter of notification) 1,500,000 shares of com¬
mon
stock (par five cents).
Price—20 cents per share.
Proceeds—For repayment of debt and for
tal.

oiUnderwriter—Hunter Securities Corp., New York.
KT- -

'

Volume 177

Number 5224... The Commercial and
Financial Chronicle

(2343)
Packaging Materials Corp., Providence, R. I.
(letter of notification) $160,000 of 5% deben¬
tures due Dec. 15, 1960, and 2,000 shares of common,

of class B stock

April 29

shares held

stopk (no par) to be offered in units of
and

share of

one

$80 debenture

an

stock.

common

at rate

of one

share for each two

new

Tennessee Gas Transmission Co.

June 22.

Price—$20 per share. Proceeds
—To retire $100,000 bank loan and for
working capital.
Business—Manufacture of plastic materials. Underwriter

,

Price—$100 per unit.
Proceeds
For purchase of
machinery. Office — 607
Hospital Trust Bldg., Providence, R. I. Underwriter—

on

—None.

April 27 filed $1,200,000 of "contributions to be made by
employees of company to the thrift plan." Underwriter—
None.

,

Texas Illinois Natural Gas Pipeline Co.
May 6 filed 927,273 shares of common stock (par $1) to
offered for subscription by common stockholders.
Price—To be supplied by amendment.
Proceeds—For
new
construction ancL working capital.
Underwriter—
None. Peoples Gas Light & Coke Co., has agreed to take

—

None.

•

Price—$5

Corp., New York

&

Harris and H.

Proceeds— To

—

Address

Victor

Concessions Co.,

(amended

April 24 to

ucts from

lands

Peruvian

1,000,000

to

be

held

Government.

Co., New York.

stock

shares).

/

its

under

concession

-

subsidiaries.

from

the

95%

to

of

the

expire

„

expenditures and other corporate

Underwriter

purposes.

• Pittston Co., New York

holders

be
on

shares of

.

offered

for subscription by common stock¬
the basis of one preferred share for each 13
stock

common

Power Co.

record

new

share for each five shares held

May 27; rights to expire

on June 10. Price—
Proceeds—To repay bank loans and for
construction.
Underwriters—Dillon, Read & Co.,

per

share.

New

York;

ington, D. C.

and

Johnston,

Lemon

&

Co.,

Wash¬

1

it Public Finance Service, Inc., Phila., Pa.
May 19 (letter of notification) $250,000 of 6% cumulative
debentures, 1950 series. Price—At par (in denominations
$100 each). Proceeds—For working capital. Office—
West Chester Ave.,
Philadelphia, Pa. Underwriter—

None.

•

Public Service Co. of

13

filed

600,000

••

•

V.

-

•

..

Indiana, Inc.

shares

of

(673)

cumulative

preferred

stock

(par $25) and 472,596 shares of common stock (no
par), the latter to be offered for subscription by com¬
stockholders

rights to expire
amendment.

of

on

June

record

June

17.

Proceeds—For

2

on1

l-for-8

a

Price—-To

basis;
supplied by

be

construction

costs.

writers—Blyth & Co:, Inc., New York and

Under¬

San

Fran¬

cisco.'^

Individual Stocks.

Underwriter—None.

Rochester Gas & Electric
Corp.

May 8 filed 175,000 shares of common stock (no par) to
be.offered for subscription by common stockholders of

—To

May 28 at
shares held.

be

supplied

the rate

of

one

new

share

foxs, each

Rights will expire on June 12. Price
by amendment. Proceeds—To repay

bank loans and for new construction.
First Boston Corp., New York.

Underwriters—The
/

Productions, Inc. (6/4)
*7 ^
May 12 (letter of notification) 149,000 shares of coihmon
(par

10 cents).

Price—$2

per

share.

For working capital. Office—18 East 50th
York 22, N. Y. Business—Producer

Proceeds—

Street; New

of package television

and radio shows.

Co., Inc.,

New

Underwriter—Mortimer B. Burnside &

York..

Rogers Corp., Manchester, Conn.

May 11 (letter
common

April

Natural

by

common

of

stock to

notification)
be offered for




(6/22

10,909 shares

llW

of class

B

subscription byJiplders

demonstration

pay

bank loans and for

307

purchase 30

For

working capital.

per

stock

com¬

(par

Price—15 cents

cent).

one

com¬

share.

per

Darling Bldg., Salt Lake City. Utah. Former Name—
Tungsten Corp. Underwriter—Tellier & Co.,

—

Walburt Oils Ltd., Toronto, Canada
April 24 filed 660,000 shares of common stock (par $1)
of which 550,000 shares will be offered in the United
States and 110,000 shares in Canada. Price — $1.02 per
share in U. S. and $1 per share in Canada. Proceeds—
For general corporate purposes. Underwriier—Sidney S.
Walcott, President of company, Buffalo, N. Y.

^Washington Gas Light Co.

(6/15)

May 20 filed $7,000,000 of refunding mortgage bonds due
Proceeds—For

construction.

new

Underwriters^—

To be determined by
ders: Halsey, Stuart

competitive bidding. Probable bid¬
& Co. Inc.; Kuhn, Loeb & Co. and
A. C. Allyn & Co. Inc. (jointly); Merrill Lynch,
Pierce,

Fenner & Beane and

Stone & Webster Securities Corp.
(jointly); Equitable Securities Corp.; Kidder, Peabody
Co.; Union Securities Corp. Bids—Expected to be re¬

&

ceived

on

June 15.

Washington Water Power Co.
May 7 filed

1,088,940

shares of

$1.28

cumulative

con¬

vertible preferred stock (par $25) and 1,088,939 shares of
common stock
(no par) to be issued in connection with
the proposed merger into company of Puget Sound Pow¬
er
& Light Co. on the basis of one-half share of pre¬
ferred
Sound

and

one-half

common

ceive cash

at

share

of

common

for

each

Puget

share to holders who do not elect to

the rate of

$27

per

share.

re¬

Underwriter—

None.
•

West Coast

Pipe Line Co., Dallas, Tex.
6% debentures due Dec.
15, 1964, and 580,000 shares of common stock (par 50
cents) to be offered in units of one $50 debenture and

$500 deben¬

Nov. 20 filed $29,000,000 12-year

share for stock. Proceeds—
—

(no par) to

employees of the

Davenport, Iowa
(letter of notification) 10,000 shares of common
stock. Price
$10 per share. Proceeds — For working
capital. Underwriter—A. J. Boldt & Co., Davenport, la.

shares of stock. Price—$925 per

Office

Corp., New York

Vault Co. of America,

held; rights to
(flat). Proceeds—To re¬
construction/Underwriters

a

Lehman Brothers,

March 2

convertible sinking

purchaser of

—

California

par

stock (par $1). Each

Underwriter

New York.

it Standard Factors Corp., New York
May 18 (letter of notification) $250,000 of 5% subordi¬
nated debentures due Dec. 31, 1960 and 15,000 shares of
may

Dallas, Tex.

May 5 filed 417,717 shares of capital stock

mon

it Square Deal Market Co., Inc., Washington, D. C.
May 22 (letter of notification) 37,000 shares of preferred
stock. Price—At par ($7 per share). Proceeds—To open
new store.
Business—Operates "Food Fair" stores in the
Washington, D. C., area. Office—2060 West Virginia Ave.,
Washington, D. C. Underwriter—Auchincloss, Parker &
Redpath, Washington, D. C.

common

(par $1).

Proceeds—To pay debt and for working capital. Office—

—Halsey, Stuart & Co. Inc.

ture

stock

Uranium Mines of America, Inc.
May 14 (letter of notification) 1,950,000 shares of

being offered for subscription

new

common

May 4 (letter of notification) 115,000 shares of common
stock.
Price—At par (10 cents per share);
Proceeds—
For mining equipment. Underwriter — R. L. Hughes &
Co., Denver, Colo.

of

stockholders of record May 20 at rate of $100

June 8. Price—At

on

shares of

United Mining & Leasing Corp.
Central City, Colo.

of debentures for each 10 shares of stock

expire

—

1978.

20 filed $34,220,100 of 4*/2%

St., New York.

Three States Natural Gas Co.; (5/29)

pany under its stock purchase plan.

Gas Co.

fund debentures due 1973

270 Madison Ave., New

one

York 16, N. Y. Underwriter—None.

share of stock.

Price

—

To be

supplied by amend¬

ment.

it Stylon Corp., Milford, Mass.
May 22 (letter of notification) 32,043 shares of

Proceeds—From sale of units and 1,125,000 addi¬
tional shares of common stock and private sale of $55,-

common
.

stock.

Price—At the market. Proceeds—To Joseph Maas,
Newton. Mass.
Business
Manufactures ceramic tile.
—

Underwriter—F. D. Gearhart, Jr., New York.
Sun Oil

Co., Philadelphia, Pa.
14,000 memberships in the "Employees'

April

27

Stock

Purchase

and

Rockhill

stock

Southern

—

be offered to certain officers and

Underwriter—Wright, Wood & Co.,

$1,000 debenture and $4

it Quinby Plan, Rochester, N. Y.
v
May 18 filed $1,500,000 of Plans for the
Accumulat/on of

seven

:

Office
116A City National Bank Bldg.,
Texas. Underwriter — Walter Aronheim, 82

i New York.

r

bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley &
Co.; Kuhn, Loeb & Co.; The First Boston Corp. BidsReceived on May 5 but rejected.

April 30 filed 852,840 shares of common stock (par $10)
being offered for subscription by common stockholders
one

public

(no par).

subsidiaries.

(6/1)

Union Carbide & Carbon

par com¬

Telephone & Telegraph Co., the parent. Underwriters—
To be
determined by competitive bidding. Probable

—None.

the basis of

i,

Southern Bell Telephone & Telegraph Co.
April 9 filed $30,000,000 of 24-year debentures due May
I, 1977. Proceeds—To repay advances from American

held

(with an oversubscription
privilege). Price—At par ($100 per share). Proceeds—
For working capital. Business—Natural
gas. Underwriter
Potomac Electric

the

in

competitive

bid¬
The First Boston Corp., Blyth

Oil Co.

May 6 filed 500,000

& Television

on

by

Price—To be supplied by amendment. Proceeds—To re¬
duce bank debt and for general corporate purposes. Of¬

$1,000 debenture); and 150,000 shares of common stock
(par $1). Price—At par or principal amount. Proceeds—
To enlarge plant. Underwriters—McGinnis &
Co., New
York, and Stein Bros. & Boyce, Baltimore, Md.

M4&.20 iiled 50,000 shares of 5V2% convertible preferred
to

•

any time at rate of 500 shares of common stock for each

Corp., New York.

wells.

Beaver

March

$75,000,000 of bank debt and for capital

—The First Boston

drill

Corp.
May 13 (letter of notification) 10,000 shares of common
stock
(par 10 cents). .Price—At market (about $2 to
$2.37per share), to net company $1.90 per share.
carry

Probable bidders:

.Houston,

Soil-Tone Corp., Plymouth, N. C. Y
27 (letter of, notification) $150,000 Of 6%• con¬
tingent interest debentures due 1968 (convertible at

June 9. Price—At principal amount. Pro¬

on

Office—Mt.

Electronics

common stock

investments

determined

.March 24 (letter of notification) 250,000 shares of
capital
stock (par 10 cents). Price—$1 per share. Proceeds—To

it Socony-Vacuum Oil Co., Inc..
May 19 filed $15,000,000 of interest in company's em¬
ployees' savings plan and 375,000 shares of capital stock
purchaseable under the plan.

debentures due June 1, 1983 (convertible into common
Stock for I'D years), being offered for subscription by

ceeds—To repay

Skiatron

be

Texas Western

operate

Philadelphia, Pa.

"

stockholders at rate of $100 of debentures for
each nine shares of stock held of record
May 26; rights

and

Underwriter—Whitney-Phoenix Co., Inc.,

"Subscriber-Vision."

30-year sinking fund

-common

develop

fice

Proceeds —To

market price. Proceeds—For construction
Underwriter—None.

Phillips Petroleum Co.
May 4 filed $162,098,500 of 3.70%

to

savings plan, together with 210,000 shares of no
mon stock of corporation issuable under
plan.

&
*

85%

and

New York.

(6/2)

Price—From

shares of common stock (par 25
share. Proceeds—To purchase and
royalties and producing properties, to
gas

increase

Co., Inc., First Southwest Co., Rauscher, Pierce &
Co., Inc. and Dallas Union Trust Co. (jointly); Union
Securities Corp.; Lehman Brothers and Bear, Stearns
& Cow (jointly); Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Goldman,
Sachs & Co. and Harriman Ripley & Co., Inc.
(jointly).
Bids—To be received up to 11 a.m.
(EDT) on June 2 at
Two Rector St., New York, N. Y.

per

and

To

—

&

construction

it Sinclair Oil Corp.
May 22 filed $10,500,000 of participations in employees

Y

■

oil

auction offices.

per

Phillips

•

record

for

(Del.)
(letter of notification), 235,000, shares of con¬
vertible class A stock (par $1). Price—$1.25
per share.
Proceeds—To establish, equip and operate ten Selevision

current

program.

mon

and

Selevision, Inc.

April 10 filed 100,000 shares of common stock (no par)
to be offered for subscription by
employees of company

May

loans

ding.

May 14

(par $1)

Price—$2

Underwriter—B/, G.

Philadelphia Electric Co.

18

Proceeds

Underwriters—To

Vernon,, 111. Under¬
writer^— L. H. Rothchild &
Co., New York. Offering —
Indefinitely postponed.

prod¬

of

bank

producing properties.-

Inc.

common

leaseholdes,

prospect for

share. Proceeds—For general
corporate purposes. Busi¬
ness—Plans to produce and sell petroleum and its

Inc.,

retire

cents). Price—$4

—

Peruvian Oil

new

Texas Utilities Co. (6/2)
April 30 filed 350,000 shares of

Schlafly Nolan Oil Co., Inc.

c/o Alfred Robbins, President 83-06
Ave., Eimhurst, L. I., N. Y. Underwriter—None.

Jan. 16 filed 9,000,000 shares of

$16

all unsubscribed stock.

June 3.

March 25 filed 150,000

•

of

on

and New York.

sell

Perfect-Line Manufacturing
Corp.
May 6 (letter of notification) 180,000 shares of common<
stock (par 10 cents).
Price—$1.50 per share. Proceeds—
For expansion.
Business
Manufacturing ventilating
equipment, specialty wiring devices and lighting equip¬

on

Byllesby & Co., Inc., both of Chi¬

Underwriter—Blyth & Co., Inc., San Francisco

/program.

Electric Co., Underwriter—None.

•

M.

of

outstanding stock of Scranton

stock

of

one new share for each three
shares held; employees to be entitled to purchase unsub¬
scribed shares.
Price—To be supplied by amendment.

3.35% preferred stock (par $100) and 39,936
shares of 4V2% preferred stock
(par $100) to be offered
in iexchange for all the

to

stock

•of record June 9 at rate of

Pennsylvania Power & tight Co.
May 1 filed 743,496. shares of. common stock (no par),
21,752 shares of 4.40% preferred stock (par $100), 53,248

then

acquire

be

★ San Diego Gas & Electric Co. (6/9)
•May 20 filed 800,000 shares of common stock (par $10)
to be offered for
subscription by common stockholders

Drilling Co., Inc., Denver, Colo.
.
March 23 (letter of notification)
42,507 shares of common
stock (par $1).
Price—$1.30 per share. Proceeds—To
Morris Replin, the selling
stockholder.. Underwriter—
Peters, Writer & Christensen, Inc., Denver, Colo.

•

Proceeds—To

cago, III, Amendment to be filed

Pennant

and

share.

(par $1).

Co,, to pay loans and for working capital.
Office—Northwood, Iowa. Underwriter—Sills, Fairman

—

ment.

per

stock

common

Neb-Tex Oil

,

March 6 filed 100,000 shares of common stock (par $25).
Price—$28 per share. Proceeds
For development of
Israel industry, etc., and for
working capital. Under¬
writer—None.

shares

Saint Anne's Oil Production Co.

April 23 filed 270,000 shares of

,./J

Palestine Economic

43

filed

122,700

reserved

for

Plan

shares
sale

to

of

of

Sun

common

trustees

Co.

Oil

of

stock
the

1953; also 139,762 additional shares of
possible public

and

Subsidiaries"

(no

plan

par)

common

sale by selling stockholders

~«riod of July 1, 1953 to June 30,

to

be

during July,
stock "for

during the

1954." Underwriter—

None.

it Sunrise Mining Co., Inc., Seattle, Wash.
May 21 (letter of notification) 500,000 shares of common
stock (par one cent).
Price —? 10 cents per share. Pro¬
ceeds—For working capital, etc.
Office—416 American

Bldg., Seattle, Wash.

Underwriter—None.

000.000 first mortgage bonds, to be used to build a 1,030
crude oil pipeline.
Underwriters—White, Weld &

mile

Co. and Union Securities

Corp., both of New York.
fering—Postponed indefinitely.
•

Of¬

West Coast Pipe Line Co.,

Dallas, Tex.
1,125,000 shares of common stock (par 50
cents). Price—To be supplied by amendment. Proceeds
—Together with other funds, to be used to build pipe¬
line. Underwriters
White, Weld & Co. and Union Se¬
curities Corp., both of New York. Offering—Postponed
Nov. 20 filed

—

indefinitely.
it West Penn Power Co.
May 20 filed an unspecified number of shares of com¬
mon
stock (no par), sufficient to raise approximately
$7,000,000, to be offered for subscription by common
stockholders (other than West Penn Electric Co., parent).

Continued

on

page

44

/

44

The Commercial and Financial

(2344)

;Continued from
Price—To

be

v

Proceeds — For.
Underwriter—None, the parent to

supplied by amendment.

construction program.

buy

Ripley & Co., Inc. and Smith, Barney & Co.
(jointly); Salomon Bros. & Hutzler.

Harriman

43

page

unsubscribed shares.

any

Western

Homestead Oils,

Ltd.,

Calgary, Alta, Canada
April 24 filed 1,000,000 shares of capital stock (par 10
cents). Price—$1.30 per share for first 400,000 shares.
Proceeds—For
—Owen
E.

H.

general corporate purposes. Underwriter

Ltd., of Toronto, Canada, through
Co., also of Toronto, only in Canada.

Investors

Pooler

&

Statement effective

of

shares held

about June 5;

rights
to expire on June 19. Price—To be supplied by amend¬
ment. Proceeds—From sale of preferred stock, together
with funds to be received from sale of $3,000,000 first
mortgage

bonds,

construction.

bank

reduce

to

or

on

and

loans

Underwriter—Harris,

Hall

for

new

Inc.,

Co.,

&

Chicago, 111.
Western Safflower Corp.
April 9 (letter of notification) 240,000 shares of common
*tock (par 25 cents). Price—$1.25 per share. Proceeds—
To construct plant. Office—First National Bank Bldg.,

Colorado Springs, Colo. Underwriter—E. I. Shelley

Denver, Colo.
Weston

April

Co.,

Electrical

May 19

the basis of

on

new

one

each three

share for

*

held; rights to expire

June 2. Price—$18 per

on

share. Proceeds—To repay bank loans and for general
corporate purposes. Underwriter—Merrill Lynch, Pierce,
Fenner &

Beane, New York.

-Ar York County Gas Co. (6/24)
May 25 (letter of notification) 6,000 shares of
stock

of

com¬

one

new

share for each
tion

12 shares owned (with an oversubscrip¬
privilege); rights to expire July 14. Price—$40 per

share. Proceeds—From sale of stock, together with
$600,000 to be received from sale of first
mortgage bonds to

$600,000

repay

Office—127

bank

West

loans

Market

V;r.

Tfone.

for

and

new

construction.

St., York, Pa. Underwriter—

UV-:kv\W&-te';s-rfrtf

on

$1,250,000

May

3,750,000 shares (no par)
to 5,000,000 shares (par
$20). It is not presently planned
to issue any of the additional stock. Underwriter—Pre¬
vious financing was handled
by Blyth & Co., Inc.
March 20 it

was

announced that company may consider
refunding the outstanding 47,609 shares of $7 preferred

.Tcock

(no par) and 45,891 shares of $6 preferred stock
(no par), both callable at $110 per share. Underwriters—

To be determined by
competitive
ders. Blyth &

bidding. Probable bid¬
Co., Inc, and Equitable Securities Corp.
ijointly); W. C. Langley & Co., and The First Boston
Corp. (jointly); Kidder, Peabody & Co., and Merrill
Dynch, Pierce, Fenner & Beane (jointly); Union Securi¬
ties Corp.

y-Atlantic

Refining Co.

—

utruction program for 1953.
'fe Co. may head
group.
•

Underwriters—Smith, Barney

it

31

was

One

bid

received

was

1157, 811
Vermont Ave., N.
W., Washington, D. C., prior to 5:30
p.m. (EDT) on May 25 for the
purchase from it of $1,€75,000 of collateral trust 4% bonds due
July 1, 1961.
It was refused,
however, as it was too low. It is possible
that

the

bonds

may

be

offered

again

in

the

months.
Blue Crown Petroleum

300,000
share.

ilwas reported
shares

of

coming

Co., Ltd.

company plans to issue and sell

common

stock.

Price—95

cents

per

Underwriters—Van

Alstyne, Noel & Co., New
York, and Walston & Co., San
Francisco, Calif. Offering
—Expected in June.
Boston

April 27 it
on

Edison Co.,

announced stockholders will vote
June 2
a proposal to offer
246,866 shares of

approving
•»cock (par
$25)
mew

share

scription

Boston, Mass.

was

for

to

each

privilege).

capital

stockholders
10

on

shares held

Proceeds-For

Jwf1rmF]be determined
Probable bidders: The

the

(with
new

basis
an

of

one

oversub¬

construction.

by competitive bidding.

First Boston
Corp.; Blyth & Co.,
Jbac.; Smith, Barney & Co.; Harriman
Ripley & Co., Inc.
Central Power &
Light Co.

»0,000 shares of

reported company may issue and
sell
preferred stock. Underwriter*-To

new

^determined by competitive bidding.
Webster Securities
end

Corp.;

Probable bidders:
Lehman

Brothers

Glore, Forgan & Co.
(jointly); Blyth & Co., Inc.,




this

Georgianew

Georgia Railroad

company

&

will

Banking Co.
of the new

&

& Co. and Joseph Walker & Sons.

"

the

unsubscribed shares. Proceeds—To retire $2,190,000
of Georgia Railroad & Banking Co. debentures held
by
an insurance firm.
Underwriters—Johnson, Lane, Space

revealed

the

new

April 27 it

.

.

construction.

new

Underwriters—To

(par $50).
Webber, Jackson &
Curtis and Stone & Webster Securities Corp.
>

be

Jan. 9 it

states

sued

two

May

the

7

Productions Corp.

Connecticut

to

company

and

latter first

issue
to

Price—$30
surplus.

the basis of

on

No

share.

per

one

fractional

will

be

was

company

$40,000,000 of

stockholders). Proceeds—To retire bank

Iowa Electric

common

writers

★ Commonwealth Edison Co.

ing

Gale,
and

(7/8)

Chairman,
sell

announced

issue

Light & Power Co. \

the

sale

of

securities.

new

termined by competitive

Stuart

sey,

&

Co.

Underwriters—To

be

Kuhn,

Loeb

&

Co.,

on

the

authorized

preferred

stock

...

■

...

,

.

reported

company

be sold later in the
.

i

1

•

v

/

may

stock. Underwriters—To be determined by competi

bidding. Probable bidders:

¬

Lehman Brothers; The

Boston

Pierce,

Fenner

&

Kansas-Nebraska Natural Gas Co., Inc.

May

12

it

was

reported

company

may

about $4,750,000 first mortgage bonds.
pay

$800,000

bank

loans

and

for

issue

and sell:,

Proceeds—To
new

re¬

construction.

Underwriter—Central Republic Co., Inc., Chicago, 111.

to

proposal to increase

stock may
,

was

Corp.; Merrill Lynch,
Beane, Harriman Ripley & Co. Inc.

of

from

Corp. (jointly); White, Weld & Co.
Shields & Co.. (jointly); Lehman
Brothers; W. C.
Langley & Co. and Union Securities Corp.. (jointly);
Morgan Stanley & Co. Stuart Cooper, President, said
common

it

Long Island Lighting Co.
April 21 it was announced that

and

.,

15

First

Lehman

and The First Boston

year.

Previous debt f inane-

tive

de¬

200,000 shares to
300,000 shares (par $100). Probable bidders for
any new
preferred stock financing may include Blyth & Co.. Inc.

it is possible that

First Boston Corp. and G. H.

mon

June 11.

Delaware Power & Light Co.
April 21 stockholders approved a

For stock: The

Co., both of New York.
done privately.

issue and sell
early in 1954 about $6,000,000 aggregate amount of com-

Brothers, and American Securities Corp. (jointly); The
First Boston Corp.;
Glore, Forgan & Co. Bids—Tenta¬
tively scheduled to be received about July 8. Registra¬

tion—Expected

was

May

bidding. Probable bidders: Hal¬

Inc.;

—

if Iowa-Illinois Gas & Electric Co.

company

of

$40,000,000 first
mortgage bonds, due 1983. Proceeds—To help pay cost
of new construction,
which, it is estimated, will total ap¬
proximately $500,000,000 during the four years through
1956, of which about $280,000,000 will be obtained from
an

>

Mass.

was reported company may sell in June some
and preferred stock and/or debentures. Under¬

Walker &

issue

•

(the

April 13 it

bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.
Willis

mortgage

stock

talization.

debentures. Pro¬

repay

to

common

Industrial National Bank of Detroit

bank loans and for construction pro¬
Underwriters—To be determined by competitive

May 26
planned

of

authorized

first

May 15 it was announced bank plans to offer to its stock¬
holders 25,000 additional shares of capital stock (par $10)
on a l-for-8 basis. Price—$30
per share. Meeting—Stock¬
holders will vote May 29 on increasing authorized capi¬

issued.

plans to issue and

new

value

of

—For new construction.
Underwriter—May be Carl M>
Loeb, Rhoades & Co., New York.

Proceeds—To increase capital and

announced

year

Commission

$200,000

a total of $35,000,000 in
equity securities (prob¬
ably in units of preferred and common stock). Proceeds

Columbia Gas System, Inc.

April 6 it

par

U.

Line Co.

share for" each

new

shares

,

Gulf Interstate Gas Co., Houston, Tex.
May 11 it was reported that company may offer for
subscription to stockholders of Panhandle Eastern Pipe

about June 1 entitling them to subscribe on
July 15 for 15,000 additional shares of capital
held.

P.

sell

loans. Underwriter—F. L. Putman &
Co., Boston,

or

(par $10)

and

$483,000

was

shares

gram.

that, under present plans, these shares will be is¬
the growth of the corporation warrants;
I-

as

bonds

City Bank & Trust Co. of Reading, Pa. (6/1)
May 6, J. D. Heckman, President, announced that share¬
holders of record May 15 will have warrants mailed to

stock

Corp., Washington, D. C.

Greenwich Gas Co.

reported company plans issuance and sale
500,000 shares of common stock. Price—Ex¬
pected to be around $10 per share. Underwriter—Hayden, Stone & Co., New York. Offering—Postponed.

on

.

Paine,

Government Employees

about

before

Probably

—

March 18 stockholders authorized an issue of 3,000 shares >;
of preferred stock (par $100) to
carry a cumulative divi- !i
dend rate not to exceed 6% annually. The
management *

W. E. Hutton & Co.

of

reported early registration is expected

was

Underwriters

Lynch, Pierce, Fenner & Beane.
Previous equity fi¬
nancing was underwritten by Morgan Stanley & Co. and
Cinerama

Kentucky '

of 50,000 shares of cumulative preferred stock

plans to raisesecurities (mostly bonds).
company

(jointly); Blyth & Co., Inc., and The First Boston Corp.
(jointly); Union Securities Corp.; Glore, Forgan & Co.,

ceeds—To

by the RFC at Room

of

to
to
&

by competitive bidding. Probable biddersfor bonds: Halsey, Stuart & Co. Inc.; Morgan Stanley &
Co.; Kuhn. Loeb & Co. and Salomon Bros. & Hutzler

sell later this

Bangor & Aroostook RR.

that

announced

was

stockholders

General Telephone Co. of

them

$75,000,000 to $150,000,000. Prohelp pay for a $100,000,000 con-

stock.

;

or

to

For

for

(jointly). Bids—Expected to be received in July.

March 27 it

♦eeeds—To be used

plans to issue and sell
Price — To be
expansion. Underwriter —\

preferred
—

company's stock, the right to subscribe within 30 days
13 additional shares at $4.10 per share and a $250
collateral trust 5% bond due May 1, 1990; the offer to
become effective upon acceptance by 95% of the out¬
standing stock. An additional 210,000 of the new shares
would be purchased by the underwriters,- plus
any of

Stuart & Co. Inc.; Kuhn, Loeb
Co.; Morgan Stanley & Co.; The First Boston Corp.;
Harriman Ripley
Co. Inc. and Alex. Brown & Son
&

mie

was announced that
proposed debenture islater this year will be around
$60,000,000. The exact
nature and timing of the
financing are still to be de¬
termined.
Stockholders voted May 5 to increase the
'Authorized debt from

(6/19)
company

in exchange for each share held, one share

and White, Weld & Co. (jointly); W. C. Langley & Co.;
Lehman Brothers; Harriman Ripley & Co., Inc.; Merrill

Arkansas Power & Light Co.

it

4

offer

determined

stock from

common

convertible

First Railroad & Banking Co. of

from sale of common stock to
Telegraph Co., parent, for re¬
of loans and for new construction.
Under¬
To be determined by competitive bidding.

Proceeds—For

•authorized

Under¬

Fulton, Reid & Co., Cleveland, O. Registration—Expected
May 29.

received

Chicago, St. Paul, Minneapolis & Omaha Ry.
19 company applied to the ICC for authority
issue and sell $1,170,000 equipment trust certificates
mature in 15 years. Probable bidders: Halsey, Stuart
Co. Inc.; Salomon' Bros. & Hutzler; R. W. Pressprich

1973.

due

on

Telephone &

May

plans sale of $7,000,-

bonds

Underwriter—White, Weld & Co., N. Y.

named later. Proceeds

$35,000,000 through sale of

proposal to increase the

mortgage

Paso Natural Gas Co.

000 debentures.

Cincinnati Gas & Electric Co.

a

trust

★ Erie Resistor Corp.
May 19 it was reported

Probable bidders: Halsey,

March

Allis-Chalmers Mfg. Co.
May 6 stockholders approved

announced company

25 it was announced company plans to place
privately $120,000,000 of first mortgage bonds and sell
publicly 200,000 shares of preferred stock and $25,000,-

May 1 company petitioned the Maryland P. S. Commis¬
for authority to issue and sell $15,000,000 of de¬
bentures. Proceeds—From sale of debentures, plus $25,-

writers
common

(par $20) to be offered for subscription by
stockholders of record June 17 at rate

mon

El

sion

payment

was

March

Baltimore '

to be

April 14

on

debentures. Underwriter—None.

body & Co. (jointly); Glore, Forgan & Co. and Harriman
Ripley & Co. Inc. (jointly).

Chesapeake & Potomac Telephone Co. of

000,000

Meeting—Stockholders

new

Co. and Stone & Webster Securities Corp. (jointly); The
First Boston Corp., White, Weld & Co. and Kidder, Pea¬

purchase from it of $3,000,000 equipment
certificates due in 15 years. Probable bidders:

American

interest rate not exceeding
offered for subscription by

an

writers—To be determined by competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; Estabrook 8c

Halsey, Stuart & Co. Inc., Salomon Bros. & Hutzler.

Instrument Corp.

Co.

announced

costs.

collateral

000

June 10 for the

107,055 shares of common stock (par
$12.50) being offered to common stockholders of record

shares

company

about

Probable

Eastern Utilities Associates

sale

ic Chesapeake & Ohio Ry. (6/10)
Bids are expected to be received by the

filed

30

construction

■

.

trust

v

plans

was

authorized the

Feb. 20 it

company

on or

certificates.

said

stockholders. Proceeds—To retire bank loans and to meet

reported that the company may about

reported

was

Edison

(about $55,000,000 to carry
4%) which may first be

later this
year of $10,000,000 common stock (in addition to $10,000,000 of 1st & gen. mtge. bonds sold March 10, 1953),
after distribution by New England Public Service Co. of
its holdings of Central Maine Power Co. common stock.
Probable bidders: Blyth & Co., Inc. and Kidder, Peabody
& Co. (jointly); Coffin & Burr, Inc.; A. C. Allyn & Co.,
Inc. and Bear, Stearns & Co. (jointly); Harriman Ripley
& Co., Inc.
■ 'I' Y;\;;',7
r
it

of

amount

company plans to issue an
unspecified amount of convertible debenures due 1963

Central Maine Power Co.
2

like

a

Detroit

mid-July sell about $6,000,000 additional common stock
(first to common stockholders). Underwriter—The First
Boston Corp., New York.
Jan.

of

March 24 it

common

was

1, 1953, to May 1, 1968, inclusive, and
1

bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. &
Hutzler; Kidder, Peabody & Co.

Central Illinois Public Service Co.

Light & Telephone Co., Inc. (6/8)
May 18 filed 78,202 shares of cumulative convertible pre¬
ferred stock (par $25) to be offered for subscription by
common stockholders on the basis of one new share for
common

Nov.

Oct.

stock7 Underwriters — Kidder, Peabody & Co. and Estabrook & Co. handled offering in
November, 1949, of $6,000,000 2% convertible debentures.

shares

May 21.

Western

each five

the com¬

announced that some portion of

was

(8/3)

expected to be received by the company on or
Aug. 3 for the purchase from it of $3,300,000
equipment trust certificates due semi-annually from
are

about

pany's financing program for 1953-1954 will involve the
gale of $16,550,000 new securities, a portion of which will
involve common stock or debt securities convertible into
common
stock.
Stockholders at the annual meeting
March 24 voted to authorize
an
additional 1,000,000

March 26 it
•

Denver & Rio Grande Western RR.

Bids

Central Hudson Gas & Electric Corp.
March 3 it

Chronicle.... Thursday, May 28, 1953

issue

and

company this Fall plans
the neighborhood of 600,000 shares
stock to be followed in the latter part of

sell in

new common

the year
„

by an issue of about $25,000,000 of first mortbonds (this is in addition to 100,000 shares of
C preferred stock, par $100, offered publicly on
May 7). Proceeds—To repay bank loans and for new
construction. Underwriters — (1) For common stock,
probably Blyth & Co., Inc. and The First Boston Corp,
(jointly). (2) For- bonds to be determined by com¬

gage
series

petitive bidding. Probable bidders: Halsey, Stuart & Co.,

Volume 177

Number 5224

The Commercial and Financial Chronicle

...

(2345)

Inc.;

Blyth & Co., Inc. and The First Boston Corp.
(jointly); W. C. Langley & Co.; Smith, Barney & Co.

nationally.

Office—5003

Central

Avenue, N. E., Albu-

N. M.

querque.

Jan 29 company received FPC
permission to file
substitute application proposing to construct a

writers

mile

To

be

determined

by

competitive

bidding

Pacific Northwest

transmission

Pipeline Corp.

line

a

third

1,466-

extending

from the San Juan
Colorado to market areas in
Estimated overall capital cost

Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co., Lehman Brothers and A. C. Allyn &

Basin in New Mexico and

ijointly); Blyth

of

the

Co., Inc.
Inc.; White, Weld & Co. and
Shields & Co. (jointly); Salomon Bros. & Hutzler; W.
C". Langley & Co., The First Boston Corp., and Glore,
.Forgan & Co. (jointly); Merrill Lynch, Pierce, Fenner
& Beane and Kidder, Peabody & Co.
(jointly); Harri¬
man Ripley &
Co., Inc.; Equitable Securities Corp.
Mater

April

Co.,

&

rate

18 it

announced

was

of four

company

stocks.
Underwriters—White, Weld & Co. and Kidder,
Peabody & Co., both of New York, and Dominion Secu¬
rities Corp. Ltd.,
Toronto, Canada.

will

share. Proceeds — To help finance
plant. Underwriter—None.
per

Menabi

offer 400,000

stock to its stockholders at

common

shares for each share held.

new

a

Price—$5
bottling

new

Pacific Telephone & Telegraph Co.
Dec. 17 Mark R. Sullivan,
President, announced that
company in 1953 will borrow some $125,000,000 from
banks to be refinanced later in
year,

ing of bonds and

Exploration Co., Inc., Houston, Tex.

April 8 it

was announced company plans to issue and
$1,000,000 of convertible debentures. Proceeds—To
finance development of oil properties in Ecuador. Under¬
writer—Kidder, Peabody & Co., New York.

Pacific
•

(Mich.)

(-6/9)
26

it

announced

was

company

plans to

offer

to

stockholders of record June 9

a total of 60,000 shares of
capital stock (par $20) on a one-for-five basis; rights to
expire June 23. Price—$50 per share. Proceeds—To in¬

crease

capital and surplus.

Underwriters—To be named.

Minneapolis-Honeywell Regulator Co.
April 28 stockholders approved a proposal

probably by offer¬

common

stock.

Probable

for bonds: Halsey, Stuart &
Co., Inc.; Morgan
Stanley & Co.; White, Weld & Co.; Lehman Borthers and
Union Securities Corp. (jointly).
Stock would be of¬
fered to stockholders, without
underwriting. American
Telephone & Telegraph Co., parent, owns 91.25% of

sell

May

additional

bidders

-

^Merchants National Bank of Detroit

Northwest.

the

project is $186,000,000, including $2,000,000 for
working capital. Financing is expected to consist of first
mortgage pipe line bonds and preferred and common

Brewing Co., Los Angeles, Calif.

additional shares of

Pacific

increasing

shares.

common

(6/30)
April 1 it was reported company plans to issue and sell
in June about $12,500,000 first
mortgage bonds due 1983

Securities

Corp., New York.

Mississippi Power & Light Co.
March 20, E. H. Dixon, President of Middle South Utili¬

,

ties, Inc., announced that refunding of Mississippi Power
& Light Co.'s $6 preferred stock (no par), of which 44,476

shares

are

now

outstanding,

.This issue is callable at $110 per

be considered.
share. Underwriters—
may

Corp.

(jointly); Kidder, Peabody & Co., and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Union Securi¬
ties Corp.

Inc.; Kuhn, Loeb & Co.; Kidder, Peabody & Co.; The
First Boston Corp.; Equitable Securities
Corp. Bids—
Tentatively set for 11 a.m. (EDT) on June 30. Registra¬
tion—Expected today (May 28).

0

Mobile

Gas

of

company
additional

~

^Proceeds

—

will offer to its stockholders 40,000 share*
common

For

stock

construction

on

a

one-for-five

program.

basis.

Underwriters

—

To be named later.

Monongahela Power Co.
Jftec 11 it was announced company plans issuance and
sale near the middle of 1953 of $10,000,000 first
mortgage
bonds. Underwriters—To be determined by competitive
Lidding. Probable bidders: Halsey, Stuart & Co. Inc.,
W. C. Langley & Co. and The First Boston Corp. (joint¬
ly); Kuhn, Loeb & Co.; Kidder, Peabody & Co. and
White, Weld & Co. (jointly); Glore, Forgan & Co.; Leh¬
man
Brothers; Equitable Securities Corp.; Union Se¬
curities Corp. and Salomon Bros. & Hutzler
(jointly);
Merrill Lynch, Pierce, Fenner &
Beane; Harriman Rip¬
ley & Co., Inc.
:

Montana-Dakota Utilities Co.

May 2 it
sell

in

Londs.

announced

was

1953

company

plans

to

issue

and

approximately $8,000,000 of first mortgage

Proceeds—For

derwriters—To

be

1953

construction

program.

Un¬

determined

by competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co.,
Inc., Merrill Lynch, Pierce, Fenner & Beane and White,
Weld & Co. (jointly).
•

New

York, Chicago & St. Louis RR.

(6/17)
expected to be received by the company up to
noon
(EDT) on June 17 for the purchase from it of
313,150,000 equipment trust certificates. Probable bidders:
Bids

R.
'»

W.

was

reported that

Pressprich

&
•

-

New York State Electric & Gas

Feb. 27 it

Co.;
■»'

•competitive bidding.

company may,

Probable

bidders:

later in 1953,

Halsey,

Stuart

Co.

Inc.; The First Boston Corp. and Glore Forgan
(jointly); Blyth & Co., Inc. and Smith, Barney
Co.
(jointly); Hemphill, Noyes & Co. and Drexel
Co.
(jointly); Kidder, Peabody & Co. and Salo¬
Bros. & Hutzler

(jointly); Lehman Brothers; Har¬
riman Ripley & Co./Inc.
Northwest Natural Gas Co.

March 23 it was reported that this company plans to
finance its proposed 1,300-miles pipeline from Canada to
the Pacific Northwest by the issuance and sale of $66,-

600,000 of 41/2% first mortgage pipeline bonds to insur¬
ance companies and other institutional investors and
$9,600,000 of 5% debentures and 1,400,000 shares of common
stock at $10 per share publicly in the United States and
.

Canada. Underwriter—Morgan

Stanley & Co., New York.

Ormond Corp., Albuquerque, N. M.
March 10 it was announced company plans to register

t"

With the SEC

an

issue of stock, which will be offered




raise

to

several

millions

of

dollars

capital to finance two new manufacturing division
projects in each of which it would own a 50% interest.
Underwriter—Eastman, Dillon & Co., New York.
Toledo Edison Co.

April 21

stockholders approved a proposal to increase
the authorized common stock from 5,000,000 to
7,500,000
shares and to amend the articles of
incorporation so
to

as

provide

that the limit on the amount of
indebtdeness
that
the
company
may

cured

unse¬

create,

without consent of majority of the preferred stockhold¬
ers shall be 20%
(instead of 10%) of the aggregate of

company's secured indebtedness and capital and surplusw
Charles E. Ide, President, stated that the
management
has no present plans to issue new common shares.
Tho
First

Boston

Corp.

and

Collin, Norton & Co. handled
financing.
Probable bidders on
any bonds: Halsey, Stuart & Co. Inc.; The First Boston
Corp. and Glore, Forgan & Co. (jointly); Equitable Se¬
curities Corp.; Kidder, Peabody &
Co., White, Weld &
latest

stock

common

Pierce, Fenner & Beane (jointly);
Corp.; Smith, Barney & Co.

Union Securities

owned by North¬

.

•

United Gas Corp.

May 1 it
to

(6/24)

v

was announced

company plans to issue and sell'
stockholders about $20,000,000 of common

common

stock

on a l-for-15 basis
(with an oversubscription priv¬
ilege). Proceeds—For 1953 construction program. Under¬

writer

•

None.

—

around

Offering

Tentatively scheduled for

—

June 24 to Aug. 3.

United Gas Corp.

May 1 it

was announced company (in addition to abovementioned proposed stock offering)
plans to issue and
sell about $30,000,000 of debentures.
Proceeds—For 1953

construction program.

Public Service Co. of Oklahoma
March 2 it was reported company

may issue and sell
preferred stock (par $100). Under¬
writers
To be determined by competitive
bidding.
Probable bidders: Glore, Forgan &
Co.; Smith, Barney
& Co.; Kuhn, Loeb &
Co.; Harriman Ripley & Co., Inc.,
and Central Republic Co.
(Inc.). Proceeds—For addi¬

tions and

May 4 it

new

improvements.

Underwriters—To be determined
by competitive bidding. Probable bidders:
Halsey, Stuart
& Co. Inc.; Morgan
Stanley & Co., White, Weld & Co.
and Equitable Securities
Corp. (jointly); The First Bos¬
ton

Corp., Harriman Ripley & Co. Inc. and Goldman,
(jointly). Offering—Expected later in 1953.

Sachs & Co.

Walworth Co.
March

25

Public Service Electric & Gas Co.
Feb. 25 it was announced
company plans issuance and
sale in June of $50,000,000 of first
refunding mortgage

bonds.

Proceeds—To repay bank loans and for new con¬
struction. Underwriters—To be determined
by competi¬
tive bidding. Probable bidders:

Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co. and Lehman Brothers (jointly); Mor¬
Stanley & Co. and Drexel & Co. (jointly); The First
Boston Corp. Offering—Postponed.

gan

Remington Corp., Auburn, N. Y.
April 14, Herbert L. Laube, President, following approval
of the increase and split-up of common and
preferred
stock, stated that the increased capitalization is neces¬
sary because the profit left after today's taxes is far

and

creased
to

voted

to

increase

authorized

from

1,900,000 shares to 2,500,000 shares
grant directors right to issue all or part of in¬

to

also

stockholders

stock

common

stock

without

reserve

prior offering to stockholders;
part of the additional shares for issue

conversion

of convertible 3V\%
debentures due
May 1, 1976. Underwriter—May be Paine,
Webber, Jack¬
son &
Curtis, New York and Boston.
upon

Washington Water Power Co.,
April 10 it was announced directors have approved the
issuance and sale in May of
$10,000,000 of first mort¬
gage bonds and $18,000,000 of debentures.
Proceed^—
To repay

shares

of

$24,000,000 of bank loans and to redeem 35,000
$6 preferred stock at $110 per share. Under¬

writers.—If

from

competitive, bidders may include: Halsey,
Inc.; Union Securities Corp. and Lehman
Brothers (jointly); Blyth &
Co., Inc., Smith, Barney &
Co. and White, Weld & Co
(jointly); W. C. Langley &

par

$5, to 1,000,000 shares, par $1, and split-up on a
basis, and the preferred stock increased from
2,500 shares, par $25, to 50,000 shares, par $10, and splitup on a 2 V2 -for-1 basis.

Co. and The First Boston

5-for-l

issues may be
& Co.

Rochester Gas & Electric Corp.
May 3 company announced that, in addition to the pro¬
ceeds from the sale about May 28 of
175,000 shares of

April 10 it was stated company may issue and sell $59,000,000 of 4% first mortgage bonds to insurance com¬
panies (including Prudential Insurance Co. of
America,

enough to finance this corporation's continued
growth. The common was increased from 50,000 shares,

stock

to stockholders (registered
May 8
approximately $27,000,000 will be re¬
quired from additional financing in the future in con¬
nection with its $35,300,000 construction
program plan¬
new

with

common

the

SEC),

ned for 1953 and

1954.

Corp., Verona, N. J.

reported company plans to issue and sell
about $300,000 of common stock. Proceeds—For
working

capital.

&

Co.

Corp. (jointly). However, both
sold privately through Kidder, Peabody'

Westcoast Transmission Co.

New York Life Insurance

Insurance

Co.

Co.; Northwestern Mutual Life

and

several Canadian
companies); $25,000,000 of 3% to 4% short-term notes to the National
City Bank of New York; and about 3,500,000 shares of
common stock for
about $30,000,000.
Proceeds—To fi¬

construction of a natural gas pipe line from the
Canadian Peace River field to western
Washington and
nance

Shield Chemical
March 26 it

Stuart

was

Underwriter—Miller Securities Co., New York.

Oregon. Underwriter—Eastman, Dillon & Co., New York.
West Texas Utilities Co.
2 it was reported that

March

company plans issuance
100,000 shares of new preferred stock. Under¬
writers—May be determined by competitive bidding.
and sale of

Co.

.

now

Corp.

private sale of 75,000 shares of 4.40% preferred stock,
[par $100 in February and $5,000,000 of 3%% debentures
«due 1991 in April). Underwriters—To be determined
by

mon

51% is

Offering—Indefinitely postponed.

issue and sell $20,000,000 first mortgage bonds
(following

<&

the stock of this
company,
ern Natural Gas Co.

are

Halsey, Stuart & Co. Inc.;
Salomon Bros. & Hutzler.
•

Financing may be done
privately. Underwriters — Stone & Webster Securities
Corp. and Glore, Forgan & Co., both of New York. Of

•

Service Corp.

March 6, Maurice White, President, announced that, after
proposed two-for-one split-up to be voted upon June 2

*the

Permian Basin Pipeline
Co., Chicago, III.
Feb. 4 company filed an amended
application with FPC
for authority to construct a 163-mile
pipeline system at
an estimated cost of
$40,269,000.

„

,

sufficient

of

—Probably White, Weld & Co. and Stone & Webster
Securities Corp., both of New York

on.

—

.(jointly; W. C. Langley & Co., and The First Boston

securities

Proceeds—For construction

40,000 shares of

To be determined by competitive bidding. Probable bid¬
ders: Blyth & Co., Inc., and Equitable Securities Corp.

Sunray Oil Corp.
May 13 company disclosed it is planning to issue and sell

Underwriters—To be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Co.

like amount later

a

authorized

common stock
(par $1.50) from 3,440,000 to
3,950,000 shares and the preference stock (par $100) from
160,000 to 210,000 shares.
Immediate issuance of in¬
creased stock not planned.
Underwriter—Probably Union

Lunt,

Transcontinental Gas Pipe Line Corp.
was reported company may issue some con¬
vertible preferred stock before the Fall.
Underwriters

program.

tive

stock. Underwriters—Hamlin &

Co. and Merrill Lynch,

Pennsylvania Electric Co.

and

common

Buffalo, N. Y., and Allen & Co., New York.

Louisiana Power & Light Co.
March 20 it was announced company may issue and sell
in June $12,000,000 of first mortgage bonds.
Under¬
—

additional

45

Southern

California

Edison Co.

April 23, William C. Mullendore, President, stated that
company is considering selling sufficient securities later
in the year to raise

approximately $30,000,000. Proceeds

—For 1953 construction program.

Underwriters—May be

determined by competitive bidding. Probable bidders for
bonds: Halsey, Stuart & Co. Inc.; The First Boston

Corp.
Harris, Hall & Co. (Inc.) (jointly); Blyth & Co., Inc.;
Kuhn, Loeb & Co. Probable bidders for preferred: The
First Boston Corp. and Harris, Hall & Co.
(Inc.) (jointly).
and

Southwestern Gas & Electric Co.

April 29 it

was

issue

sell

announced company later this year will
50,000 shares of cumulative preferred
stock (par $100).
Underwriters — May be determined
by competitive bidding. Probable bidders: White, Weld
and

.

& Co. and

Kidder, Peabody & Co. (jointly); W. C. Lang¬
ley & Co and Paine, Webber, Jackson & Curtis (jointly);
Harriman

Ripley

&

Co.

Inc.;

Merrill

Lynch, Pierce,
Fenner & Beane and Union Securities
Corp. (jointly);
Lehman Brothers; Blyth & Co. Inc., and Stone & Webster
Securities Corp. (jointly).

Strategic Materials Corp., Buffalo, N. Y.
April 14 it was reported company plans to offer for sub¬
scription by its common stockholders about $1,000,000 of

Probable bidders: Stone & Webster Securities
Corp.;
Harriman Ripley & Co.,
Inc.; Union Securities Corp.

Wisconsin

Central

Ry. (5/28)
sought approval of the ICC to issue and
$3,930,000 equipment trust certificates to be dated
June 1, 1953 and to mature
semi-annually from Dec. 1

May 12

company

sell

1953 to June 1, 1968, inclusive. Probable
bidders: Halsey,
Stuart & Co. Inc.; Salomon Bros. & Hutzler. Bids
Ex¬
—

pected to be received

up

to 1

p.m.

(EDT)

on

May 28.

Wisconsin Public Service Corp.
<
was reported that the
company may, late thi*
year or early in 1954 issue and sell some common stodk
to round out its financing
program.
March 17 it

Underwriter—May

be

The First Boston

Corp. and Robert W: Baird & Co.

(jointly).

_

Worcester Gas Light Co.

April 2 it

v

announced company has applied to the
Massachusetts Department of Public Utilities for author¬
was

ization to issue and sell
gage bonds.

$3,000,000 of 20-year first mort¬
Proceeds—To retire bank loans, etc. Under¬

writers—To be determined by competitive
bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; First

Boston

Corp.; Blyth & Co., Inc.; Kidder, Peabody & Co.

46

The Commercial and Financial Chronicle...

(2346)

Within a period of several four-year
construction program,
weeks, two of the latter have re¬ slated to run through 1956, at an
jected bids for sizable new issues aggregate outlay of more than

measuring up to their ex¬ $500,000,000.
More than half of the necessary
pectations. Such action, of course,
curtails the prospective supply of funds will be raised through the
material at

new

a

time when in¬

sale

of

with

securities

new

be

balance

plowing back of earnings.

Although the Treasury list still

the

fortnight ago when reluc¬
tance of buyers threatened to stall
new
emissions in syndicate.

general feeling in the invest¬
ment world is visibly better than
it

was

few

a

weeks

back.

a

Even

Gas Co.'s offering

Natural

idated

not in

evidence

its

for

bids

offering is Arkansas-Louisithis week
tenders from two syndi-

new

Gas Co. which early

ana

received

cates, one specifying a 5% coupon
second

the

>5Vs%

a

interest

rate.
the

Had

awarded

been

bonds

inclusive.

authorization

Commerce
tificates

ing

a

Subject " to

of

the

Interstate

the cerpriced to yield from

tough front, but the

to

3.80%, depending

on

ma-

A week ago,

it looked

as

that

result that both cleaned up

will

pick up 100 to 300 bonds of a
issue, are displaying a will¬
ingness to
scan
anything that

National

jnc

the offering

jn

are:

is

in the money

be

the

is

assumed,

July

belief that the seasoned
market has "scraped bottom" and
growing

$40,000,000

clear

made

was

be expected to do better. Per¬

at

the

potential

bids.

negative factor in the sit¬

corporate

rising costs of

to

borrowers

new

National

needed to

are

finance

a

1956

DIVIDEND

NOTICE

-

to

Of

3%

and

30 Church Street

New York 8, N. Y.

The Directors of American Car and Foundry Com¬

today declared,

pany

fiscal year
the year of
ferred

of the earnings for the

out

ended April 30, 1953,

7%

shares

upon

the

of the

amount

par

outstanding,

dividend for

a

payable

four

in

pre¬

in¬

stallments, each of 1%%, payable respectively (1)

close of business June 12, 1953;

1953

to

stockholders of record

(2)

on

to

September 11, 1953; (3)

stockholders of record

December

at

11, 1953 and (4)

stockholders

of

record

at

on

adelphia Trust Company.

Securities Corp.;

York;

Stroud

and

first

Horn-

dividends each in the

of 75

cents per

set

respectively (1)

to

record

(2)

on

(3)

the

at

the

at

at

share

per

July 2, 1953
of

business

of

business

January 2, 1954

the close of business

(4)

on

12,

April 1, 1954

to

to

September

1953;

1953;

11,

stockholders of record

December

11, 1953 and

stockholders of record at

the close of business March 12, 1954.

There
per
on

was

share

also declared
on

July 15, 1953

to

special dividend of $2.00

stockholders of record

close of business June
dividend

a

the shares of Common stock payable

29, 1953; also

(one share for each

the Common stock

stockholders

of

payable

record

at

ten

on

the

a

at

The
-

&

Trust

the

of

books will remain open.

<•

C. Allan Fee,

Secretary

n

1B

-

to

corn-

m

1

1

B

_

.

Stuart

La

to

The

has

Financial

111. —William

York

& Co.

an

&

and

Mr.

R.

associated

Linn, 209 South

Midwest

Stuart

Stock

was

six

years

of

the

San

Hutton

&

George

business

in

individual

an

ex¬

employed
of E.

Company.

Patten

Investment

is engaged In the
ties

banking

was

Francisco office

Co.,,

general securi¬

Portland, doing
institutional

and

business.

vj

Municipal Bond Club *
Nominates Officers
The

nominating

committee

for¬

officer of Mason, Moran

of

the Municipal Bond Club of New
York has presented

the following
1953-54, to be voted upon

slate for

at the annual

the

at

meeting

on

June 12,

Westchester Country

Club

in Rye:
;

For

President, Thomas F.
Adams, McEntee & Co.;
Vice-President, Roald A. Morton,
Blue List Publishing Co.; Secre¬
tary, Floyd F. Stansberry; and
Adams,

Monroe V.

ernors:

Gibbons

Poole, Geo, B.

Co.

&

Inc.,, Harry W.
Youngdahl, Estabrook & Co., and
Frank P. Lynch, Blair, Rollins &
Co., Inc.

.

:

,,

H. C.

Wainwright Adds

Gordon Benedict
(Special

to

The

Financial

to

Staff

Chronicle)

BOSTON, Mass.—Gordon M.
Benedict

has

become

associated

with H.

The program Will include a golf
tournament, tennis matches, and
a Popular "feature." Dinner at
^ p* JJ* -w
afternoon s

changes. Mr. Benedict was form¬
erly manager of the statistical de¬
partment for F. L. Putnam & Co.,

x

ton

C.

Wainwright & Co., 60
Street, members of t&e Bos¬

State

New

and

Inc.

entertainment.
Guests
11 j1"e"d fr°ra W®sh,"
Philadelphia, New York

York .Stock

'

:

Ex¬

.

.

SITUATION

WANTED

-

and other cities in the East. Guest

tickets

are

$8. Reservations should
with

made

G.

Melvin

Lynch,
is

G.

Warfield

Pierce,

President

of

of

Fenner
the

Read-

Co.

Merrill

&

club.

Beane.
-

Experienced

-

and

energetic,

seeks connection with invest¬

Street, members of the

Exchanges.
merly

in

Chronicle)

become

Rodman

Salle

New

his

to

F. Barton Harvey, Jr. of Alex.
B™wn & Sons is Chairman of the
committee on arrangernents.

du Pont,

ment

Homsey Adds

(Special to The Financial

with

tive and assist with other general
activities of that firm. Previous

_

|Q HQ fl A1111113! OlltillS
w "WIH """»«■ WM5l,aO

Albert

Joins Rodman & Linn

officer

Treasurer, George T. Ragsdale,
dividends on its common
Lehman Brothers. The following
in each year since 1904.
have
been
nominated
as
gov¬
June 1952 quarterly divi-,.

li"

—

loan

as

Burlingame Branch of The

American
Trust
Company has
joined George Patten Investment
Co., to become sales representa¬

obtained

applicable

mond of E. R. Jones &

William R. Stuart

CHICAGO,
Guaranty Trust Company of New York. The transfer

loans

BallimOrG BOItO CiliD

be

business

Checks and stock dividend will be mailed by the




of

Strudwick; and T. H. Jones & Co.

(Special

,

Bank

Provident Savings
Co., Cincinnati;
Co.; Sills, Fairman
& Harris Inc.; Baxter, Williams
& Co.; Fahey, Clark & Co.; Field,
Richards &
Co.; Folger, Nolan
Inc.; Scott, Horner & Mason, Inc.;
Breed
&
Harrison,
Inc.;
Paul
Frederick
&
Co.;
Anderson &

July 30, 1953.

May 22, 1953

City

Dean Witter &

August 15, 1953 to
close

National

Cleveland;
Bank

held .position

in the

&

10% stock

shares lvld), on

bank

Wells, Inc.; F. W.
BALTIMORE, Md. —The Bond
Craigie & Co.; E. F. Hutton & Club of Baltimore will hold its
Co.; Auchincloss, Parker & Red- annual summer outing at the Elkpath; Robert Winthrop & Co.;
ridge Club on Friday, June 5.

stockholders of

June

he

purposes.

of $5,760,942 or $1.35
share. The company has paid

n

V.\"

PORTLAND, Ore.—Edwin Todd,
formerly of San Francisco where

approximately
first
retiring

after

stock

cash

Inc.; William Blair & Co.;

Andrews

forth, payable

October 1, 1953 to stockholders of record
close

on

on

close

Co.

&

the shares of Common stock outstanding on each

of the record dates hereinafter

cost

earnings

mon

Mead, Miller & Co.; King, Quirk

amount

to

& Cross Inc.; Laidlaw dends have been paid at the rate
Co.; Baker, Watts & Co.; John of 25 cents per share.
C. Legg &
Co.; Stein Bros. &

business

:

construction projects

1953

$23,000,000
$15,000,000

&

The Board of Directors also declared four ordinary

on

mortgage bonds and other
funds will be used to

&

12, 1954.

tactics.

Edwin Todd Joins j
Geo. Patlen Inv. Go.

the sale of the

company

net

Co. Inc.;

associate professor of air

as

science and

F.

27.

Ma

record

Roosevelt

April 1, 1954, to
of

June 10, at

on

Proceeds from

Boyce; W. E. Hutton & Co.; F. S.
Smithers &
Co.; Bache & Co.;
Hirsch & Co.; Wertheim & Co.;

March

expiring

assigned to Penn State Col¬

lege

of

Weeks; Trust Co. of stock
Georgia; Francis I. duPont & Co.; Since

January 2, 1954

close

the

&

A resi¬

the Korean emergency
developed,
he was recalled to active duty

perience Mr. Todd

Drexel for such

Marine Trust Co. of Western New

October 1,

the close of business
on

offering are:

City

Equitable Securities Corp.; The

blower

ness

National

joining Kidder, BeaCo., Mr. Ashbridge was

dent of

Halsey,

Co.;

ster

the close of busi¬

at

common

shares through

Stuart
& Co.;
The company, incorporated in
Glore,
Forgan &
Co.;
Kidder, 1896, furnishes electric power to
Peabody & Co.; Union Securities an area
0f
approximately
640
Corp.; Mercantile Trust Co. of square miles comprising the enBaltimore; The Northern Trust tire
District
of
Columbia
and
Co.; Chemical Bank and Trust portions of adjoining counties in
Co.; Continental Illinois National Maryland and Virginia, having a
Bank *and Trust Co. of Chicago;
population of about 1,300,000.
The Philadelphia National Bank;
p0r
the year
ended Dec. 31,
Blair, Rollins & Co. Inc.; Gold- 1952 the company reported opman, Sachs & Co.; Stone & Web- erating revenue of $47,901,401 and

July 2, 1953 to stockholders of record at the

on

its

The company is of-

common

not estimated

is

.

with

the

in

warrants

$546,000, finance

1993,

through

Associated
Bank

*

The balance of

1990

being offered.

&

various

to

body &

$16 per share on the basis of one
share for each five shares held

June 1,

honds due 1956 through
inn

due

American Car and Foundry Company

New

fering the

inclusive.
common stock together with prototal issue, $22,454,000 ceeds from the sale of
$10,000,000

to 3.10%.

X

.

°^erjn&
m0JeQ^OUri- '

o-.S'r? PmuecL ? y

vy/l

of

1993,

the

™

X

at

£rouP

d

5%, 2%%

?nJP°fe

c

1

Bank

City

Jf.°orL5SJ
S'
Md.,

Funds

money.

Baltimore llOi Bonds Stockholders.
„

to

stock

common

■

D

n

n

it

annual

uation is the stiffening attitude of

a

Offers $23 Million

market early in

another

for

meeting this week. The company
plans to offer that amount of first
mortgage bonds for competitive

can

haps

Dillon, Read & Co. Inc., and
Johnston,. Lemon & Co. are head¬
ing an investment banking group
which is underwriting
an
offer¬
ing by Potomac Electric Power
Company of 852,840 shares of

City Group

Joining the Roster
Commonwealth Edison Co. will

Underneath this apparent change

it

figure.

much

eral.

looks attractive.

feeling,

the

to the relief of the market in gen¬

new

of

with

3rd,
them

associated with the Fidelity-Phil¬

Offer Underwritten

first-mentioned

the

Ashbridge,

registered representative.

Prior

Potomac El. Power

for

L.

become associated with

a

»,

w

>

smaller insurance firms and pen¬
sion and trust funds, those who

Thomas

has
as

the

in

manner

Pa.—Kidder,

Holicong, Pa., he attended
George School, Newtown, Pa.,
turity.
:
the University of Pennsyl¬
The issue is to be secured by »and
vania.
the following new standard-gauge
^
Mr. Ashbridge served four
railroad equipment, estimated to
years
cost $2,966,898:
19 diesel-electric in the U. S. Air Force during
World War II, leaving the service
freight locomotives.
-*
'
Associated with Halsey, Stuart with the rank of Captain. When
3%

5% coupon had•
Pressprich & Co.; Freeman
though new issue.
which some recent new issues
j * h
& Co.;- The Illinois Co.; Wm. E.
Pacific Gas & Electric Co.'s $65,However, it is understood that. Pollock
have' been
moving out suggests
&
Co., Inc.;
McMaster
of first
and refunding company officials were fore~
that, even among these buyers, the 000,000
Hutchinson & Co.
mortgage bonds,
plus Southern warned of prospects at an infor¬
pressure of idle funds is making
Natural Gas Co.'s $34,220,100 of mation meeting preceding the
itself felt.
convertible sinking fund deben¬ opening of bids. It was indicated
Those who keep close tabs on
tures might drag along.
then that a rate under 4%% was
developments in the investment
But the latter issue got away unlikely,
but officials appeared
field
report that many of the
on
that
fast and touched off brisk demand confident of improving
a

PHILADELPHIA,

Peabody & Co., members of lead-'
ing
stock
exchanges,. announce

the

Commission,

are

Ashbridge With
Kidder, Peabody Go.

and

today

1968,

to reject
projected

company

of 25-year 3%

short time

a

Inc.

(Thursday)
$2,325,000
Missouri
Pacific RR. series VV 3%% serial

% debentures, carry¬ the successful
group planned retriple-A rating, was mar¬
back.
offering at a price of 102%; for a
keted quickly at a price of 102.016
yield of 4.83%. This-marked^the,
True some of the larger institu¬
for a yield of 3.75%. Bankers had
tional investors continue to put up
! *ime in u year& or^«Os.that -& -£j0v
paid the company a price of 101.42. a

was

Co.

equipment trust certificates, maturing annually June 15, 1954 to

bankers'

and
This week, for example, Consol¬

list has shown
ability to develop resistance that
government

&

offering

are

latest

The

cur¬

new

from

ness,

the

for

stampede

no

offerings. But, certainly
situation is vastly different

rent

is inclined to displays of nervous¬

is

provided

Stuart

Ark.-Louisiana Gas

Headlong Rush

No

There

to

Halsey,

associates

the

through

vestment funds in the hands of in¬

stitutions continue to pile up.

T. L.

Halsey, Stuart Group
Offers Equip. Tr. Ctfs.

not

as

Thursday, May 28,1953

Chronicle)

firm

banking, stock exchange
or

institution.

Please

~

\

BOSTON, Mass.—Bernard J.
Bagdis has become associated with

address

Box R521, Commer¬

du Pont, Homsey & Company,

cial

Financial

Milk

31

Street, members of the New

York .and

changes.

B'oston

He

was

Hanrahan & Co.

Stock .Ex¬

previously with

25

&

Park

Chronicle,

Place, New York
:

7
£_

*

ft

Volume 177

Number 5224

...

The Commercial and Financial Chronicle

(2347)
DIVIDEND

NOTICES

DIVIDEND
HOMESTAKE

NOTICES

MINING

DIVIDEND

The

67th

No.
to

Common

888

Directors has declared dividend
forty cents ($.40) per share of $12.50
Capical stock, payable June 12. 1953,
stockholders of record June 2,
1953.
of

will

be

mailed

by Irving
Disbursing Agent.

Dividend

pany,

JOHN

Stock

NO.

THE

va.ue

Checks

May

12,

W.

NOTICES

DIVIDEND

NOTICES

DIVIDEND

Trust

Com¬

MOUNTAIN

COAL

COMPANY

At a
meeting of the Board of Directors oi'
Gauley Mountain Coal Company held
May
25, 1953, a dividend of $1.00 per share on the
Capital
Stock
of
the
Company
was
declared
payable June 10, 1953 to shareholders of record

JOHN9MANVU.il

george w. helme company

The

at

HAMILTON,

GAULEY

the

close

Secretary.

cf

business

CHARLES

June

E.

1,

1953.

HEWITT,

1953.

9

Rockefeller Plaza, New York, N. Y.

On
of

May

43%

Stock

Treasurer.

27,

1953,

cents
and

Common

share

per

40

quarterly

cents

Stock

dividends

the Preferred

on

share

per

on

declared,

were

the close of business June 8,

The

Board

Export
May

of

Lines,

20,

at

of

declared

a

on

of

record

At

June

1953,

1,

The

Com-

company, inc.

manufacturing

to

Dividend No.

1953.

in

of

A

C. J. Kinney
Secretary-Treasurer
"May 20.

*£*£££

93 of

Dividend No.

ferred

1953

.J

stockholders

1953

to

JunC

15'

Board
Iron

in

cents

the

cents

with

Directors

1953,

the

ocmmon

of

amount

legstock

thirty-

share

per

of

held

de¬

was

the

regular
quarterly
A
$50 par value pre¬
amount of sixty-two and

series

the

share,

per

and

also

the

regular
$50 par

record

at

the close of

N. Y.

D.

business
C.

June

on

5,

June

2,

1953,

195th
A

quarterly dividend of 1%%

share)

a

has been declared

Preferred

Stock

of

The

the

upon

Tobacco Company, payable in cash

jjuly 1, 1953, to stockholders of
at the

,

on

record

close of business June 10,

1953.

,,

May 26, 1953

in

cash

lieu

at

thereof

the

stockholders

of

rate

will

dividend

A

(25c)

clared

June

receive

Thirty-six Cents (36$)

1953

to

shares;

all payable
stockholders of record

(New York City Time)
H. G.

on

June

on
at

3:00

A

of

twenty-five

regular quarterly divi-

E. W.

the

on

30,

record

outstanding

1953,
the

at

common

Corporation, payable
to

business

15,

The Directors of International Harvest¬

close

of

business
:'•••:

ROY

of

on.

rec-

(15$)

June

"

W.

share has been declared

York,

mon

WILSON

tion

„President

per

share

on

.

'

r

f:

■

the Com¬

Stock of this Corpora¬
was

June

declared payable

16,

record

pany

Company have declared quarterly
No. 153 of fifty cents
(50$)
per share on the common stock pay¬
able July 15, 1953, to stockholders

stock

the

P.

transfer

payment

N. Y.,

A.

SIMPSON,

May 21,

1953.

Broadway, New York 6, N. Y.

of record

of record at the close

the close of business

at

June 17, 1953.
JOHN G. GREENBURGH

IE TT T

YYest Penn
Electric
1

on

declared

June 15, 1953. The

Common Stock

•

of business

55^

will not be closed.

share

per

Payable

June 30, 1953,
to stockholders of record on

:

Exec. Vice Pres. &

————

quarterly dividend

the close of

at

Company

(Incorporated)

the

on

Secfy.

oTi

June 8, 1953.
h. d. Mcdowell,

on

June 15, 1953.

Secretary

GERARD

J. EGER, Secretary

May 27, 1953

June 1,

LIBERTY

*1953. Checks will be mailed.
Dividend

Notice

A. NELSON HIRST
ASST.

X

PRODUCTS

Irving Trust

Company
One

Wall

Street, New York

The Board of Directors has this

day

declared

dend
The

Board

of

Directors

of

the

Arundel-

Corporation
has
this
day
<May 26, 1953) declared thirty cents
per share as a quarterly dividend, on
the no par value stock of the corpo¬
ration, issued and outstanding, pay¬
able on and after July 1, ..1953, to
the stockholders of record

on

the

dmericats N-f ciyar

the

2.^ cents

par

on

Com¬

$10, payable July

1,

1953, to stockholders of record
at

The Board of Directors of

Corporation declared a
regular
quarterly
dividend of
Twenty Cents (20^) per share on
its common stock, payable June
26, 1953 to stockholders of record
at the close of business on June

A dividend of five percent
the outstanding common

12, 1953.

record at the close of business June

William G. Holman

1953.

cor¬

T reasurer

STEPHEN

G.

,

electric bond and share

CELANESE
180 Madison

MERCK & CO, Inc. i

transfer

books

Resulting

will

stock

THE Boardthe Directors has this day
of following dividends;
declared
4%% PREFERRED STOCK, SERIES A
The

regular quarterly dividend for
the current quarter of $1.12,% per
share, payable July
1, 1953, to
holders of record

38th Dividend

ness

quarterly dividend
CENTS

a

share -will be paid on June 30,

at

the close of busi¬

June 5, 1953.

7% SECOND PREFERRED STOCK
The

regular quarterly dividend for
of $1.75 per share,
payable July 1, 1953, to holders

of this year—to share owners

of

record

of record at the close of busi¬

June 5, 1953.

JUne 22, 2953.

at

the

COMMON

25




Company.

The Board

of

of

the close of business June 3, 1953.

dividend

will

be

payable in
shares of United Gas Corporation
Common

Stock

for

the

at

each

cents

per

close of

business

STOCK

share

payable June

24, 1953, to holders of record
close of business

at

the

June 5, 1953
R. 0, GILBERT

Secretary

May 26. 1953.

Common

of

shares

100

Stock.

rate

2

of

Company

No

The

Company proposes to arrange
for the Company's dividend agent
to handle fractional share equiva¬
lents for the stockholders.
B. M. Betsch,

Secretary and Treasurer

share

a

87l/z§

share

a

stock,
the

$1.00

and

$4.00

a

share

convertible

payable

on

the

close

of

July

on

business

thirty-seven

1,

June

on

the

$4.25

70^

second

preferred stock for the period
May 1, 1953 to June 30, 1953
was

July

also

1,

declared

payable

June 12,

May 26,

ing

1953

and

preferred
for

the

on

has

payable

holders

of

been

July

record

cents

convertible

ending

quarter

dollar

the outstand¬

cumulative

stock

one

one-half

share

a

5%%

30,

1953,

1,
the

at

declared

June

to

close

of

business June 16, 1953.
A

dividend

(25y)

of

twenty-five

share

on

stock

a

common

has

the

cents

outstanding

been

declared

record at the close of business

transfer

books

Checks

Bank of the

Treasurer

June

16, 1953.
The

closed.

1953.

John H. Gage,

May 27, 1953.

($1,375)

payable July 1, 1953, to holders of
on

1953 to stockholders

of record at the close of busi¬
ness

COMMON DIVIDEND

The regular dividend of

1953,

An initial dividend of

share

PREFERRED DIVIDEND

second

12, 1953.

a

Reynolds Metals Building
Richmond 19, Virginia

on

1953 to stockholders of record
at

company

preferred

preferred stock have been de¬

clared,

METALS

on

stock,

common

the $3.50 cumulative

scrip

representing fractional shares of
United Gas Corporation CommonStock will be issued to stockholders.

20(f"

the

Directors has

a dividend, subject to the
approval of the Securities and
Exchange Commission, on the
Common Stock, payable June 30,
1953, to stockholders of record at

The

Secretary

REYNOLDS

Quarterly dividends

shares

current auarter

H. T. McMeekin. Treasurer

scrip

by Bank

RAIIWAY, N. J.

Common Stock Dividend

Electric Bond and Share

the

second quarter

be

not

and

Dated, May 21, 1953

St., New York 6, N. Y.

declared

METALS, INC.

TWENTY-FIVE

Two Rector

Avonuo, Now York 16, N.T.

AMERICAN

ness on

Scrip certificates will be
issued for resulting fractional shares.

ALLYN DILLARD,

CORPORATION OF AMERICA

€953—for the

Company, to holders of

17, 1953.

closed.

COMPANY

MACHINE AND

of

TEXTILES

PLASTICS

of

stock of the

Secretary.

-

on

stock

Company, has been declared
payable July 3, 1953, in common

The

KENT, Secretary

(5% )

the

of the Manhattan

MARSHALL G. NORRIS,

regular

COMMON STOCK

certificates will be mailed

;

A

Reynolds Metals Building
Richmond 19, Virginia

Liberty

Products

the close of business June 2,

June 15, 1953.

_

share

per

capital stock of this

pany,

poration's books at the close of busi¬
ness

of

quarterly divi¬

a

company

May 26, 1953

May 21, 1953

PHILLIES

METALS

Farmingdale, New York

ARUNDEL]
►UflriAMO

REYNOLDS

CORPORATION

TREASURER

Philadelphia, Pa.
May 22, 1953

SU.1IMM

of

Treasurer,

■Treasurer.

HERVEY J.OSBORN

...

dividend

1953, to share¬

holders of

The

fifty (50^) cents
per share has been declared, pay
able June29,195 3,to stockholders

capital stock of this Company,
payable July 1, 1953, to stock¬

er

cents
.

1953,
M.,

three o'clock

for

dividend.

stock transfer books of the Com¬

«TV'.

at

1953.

closed

,

A dividend of FIFTY CENTS

business

COMPANY

A dividend of fifteen

1,

be

not

J.

New

ATKINSON, Treasurer

holders of record

regular

'

this

record

June

will

DIVIDEND NO. 156

The Board of Directors has declared

1953.

Monday,

books

May 25, 1953.

HARVESTER

June 15, 1953, to stockholders

to stockholders of
on

company

Secretary.

June 1, 1953.

CORP.

1,

New

International Salt

*

A. R. BERGEN,

FAHLBUSCH, President

^

Seventy-five

on

Chicago, Illinois

t

of

per share on the
Common Stock
Company
has
been
declared
payable
Treasurer's Office, No.
165 Broadway,
York 6, N. Y., on Monday, June 22,

the

June 4, 1953.

P.M.

per

DIVIDEND

($.75)

this

at

of

INTERNATIONAL

ord«™at"the

QUARTERLY

of

on

stockholders

close of

1

.

May 11, 1953.

ADVANCE ALUMINUM CASTINGS

quarterly dividend of 12%
share, and an extra dividend
of 12% cents per share, on the com¬
mon
stock of the corporation, payable

A

Cents

May 19, 1953

transfer books will remain
open.

a

a

PACIFIC COMPANY

DIVIDEND NO. 142

61

on
the Capital Stock of this
Company, payable June 16, 1953, to stockholders of record May 29, 1953. The stock

cents

■\

cents

ef

^

ROGER HACKNEY, Treasurer

O'BRIEN, Secretary

been declared

74

May 21, 1953.

r

Stock

holders

to

A dividend of

share has today been de¬

per

stock of this

for a one hundredth of a share of said
4%%
Cumulative Preferred Stock: no dividends on

fractional

J.

dend of 50tf per share has

DIVIDEND No.

holdings of Class A Participating
Stock, Class A Common Stock and Common
Stock; no fractional shares will be delivered
•

be

dividend

a

Common

1953.

COMPANY

Corporation

per share on the Participating Preferred
Stock, $2.50 per share on the Class A Partici¬
pating Stock, $3.50 per share on the Second
Preferred Stock; ana at the rate of one share
of 4%% Cumulative Preferred Stock of Hat
Corporation of America on each 100 shares on

but
■

,

to

the

1953,

11,

By order of the Board of Directors.

COMMERCIAL SOLVENTS

combined

Harry L. Hilyard, Treasurer

-

June

1953.

McGREW, Secretary.

'

Checks will be mailed.

dividend

LION OIL

$1.50

American

payable

on

Tennessee
Corporation

The Directors of The
Byrndun Corporation on
May 21, 1953 declared dividends as follows:

($1.50

busi¬

June 12, 1953, to the holders of
of shares of said stock at the
close
of business on June 2, 1953,

CORPORATION

Preferred Dividend

of

payable

tlsl b7rxtdun

JsewYork3,N.Y.

such

(25<0

common

the close

record

JOHN

111 Fifth Avenue

shares of

of

as

share

per

SOUTHERN

NOTICE

all

on

outstanding

ness

75c

record June 1,

Twenty-five

share

per

of

1953,

The Board of Directors of
this Company
on
May
13,
1953,
authorised
the
pay¬
ment of a
dividend of

Cents

DIVIDEND

The Board of Directors declared

at

THE MINNEAPOLIS & ST. LOUIS
RAILWAY COMPANY

stock

Corporation

C TI

McCAULEY, Secretary

DIVIDEND

of

Corporation,

quarterly dividend on the
series
B
value preferred slock in the amount of
sixtyeight and three-quarters cents per share, all
payable on June 30
1953
to
stockholders
of

^B. LOEB, President

Brooklyn,

the

on

stock

one-half

in

one-half

together

dividend

the Common!Stock 1K
declared. Pafi,ble
record

the
and

corporation
and

clared,

($.40) on
been

the

seven

v.

of

Fuel

York, N. Y. on May 25,
quarterly dividend on the

ular

93

meeting

a

Colorado

New

PAODU

payable

Corporation

one-half

the

"mon Stock payable on June 12,
i-stockaoiders

The Colorado Fuel & Iron

held

quarterly

and

share

per

J. P.

American

meeting

a

thirty-seven

of

i$.37»/2)

cents

Directors

Inc.,

1953,

.dividend

LINES, INC.

Johns-Manville

iZ\

the

July 1, 1953, to stockholders of record

AMERICAN EXPORT

NOTICES

COMPANY

Board of

888

par

Dividend

DIVIDEND

47

will

not

be

mailed

by

will

be

Manhattan

Company.

ALLYN DILLARD, Secretary

Qated, May 21, 1953

1953

Financial Chronicle... Thursday, May 28,

The Commercial and

48

(2348)

Business Man's

BUSINESS BUZZ

Bookshelf

Washington.. .;■£]
/4 -y.fi

BeTiinJ-tht-Sctne InterprsMionJ
from the Nation's

.

Harold J.

—

Com¬

Book

Heck—McGraw-Hill

X Utt/

SM.lt/Li/

C>pital

Foreign Commerce

\/Sill

Inc., 330 West 42nd Street,

pany,

New York

36, N. Y.—cloth—$6.50.

Edi¬

Investment Companies 1953

tion:

WASHINGTON,

C.

D.

in 1954 will be a tax re¬
duction or a tax relief bill.
In
context the President, while em¬

61

President

fjardless of the fate of

sixmonths extension of the
Ex¬
cess
Profits Tax, the basis al¬
ready has been laid for a dis¬
agreement between the White
House
and
the GOP leaders
about the whole fiscal question
when it comes up in the 1954
JEisenhower's proposal for a

in

lias already

tle and

a

West

remarks,

further borne out by his

annual basis.

leaders
have
about the same look on their
faces as the conservative Demo¬
crats of 20 years ago did, when
.Republican

chairmanships

*hey succeeded to

3>y virtue of seniority with the
*932
Democratic victory, and
called to the White House

were

*o

"emergency"

radical

-(specific

and

spending

heavy

back

measures.

unlike that of

The look is not
a

well-to-do father who learned

daughter had had an
with
a
deformed Red

his

that

affair

Chinese houseboy. Nevertheless,

and

pride

their

back

tiolding

principles,- the
GOP
leaders
were
seeking honestly to get
EPT extended upon their expec¬
tation that the White House in
1954 will back a bill providing
lor substantial tax reduction.

20

be

that,

this

350

Congress is unlikely
to act this session to extend the

basically
did

and

FDR

that

sponsor

Politically,

regarded as a bad deal.

who

the
not

meas¬

all the outpouring
statements makes it

However,

neither

that

Eisenhower

nor

President

his chief fiscal

adviser, Treasury Secretary

Humphrey, has promised a bal¬
anced budget for the fiscal year

already

Mr.

Humphrey

candidly
is

his

ardent hope, and few doubt

his

it

makes

clear

intentions

as

that this

expressed.

them

some

dustries

How¬

is to include new in¬

and

new

it is possible only if inter¬
do

not

newly-taxed will out¬

This would prove particularly
true if the Administration were
to

sponsor

sales
tax.

or

is

to make a dif¬
qualification.
In
con¬
text of his radio talk and budget
and tax message, he seems to
indicate that a balancing of the

course,

would

sell

and

politically

hardly
to pave

the way for desperately needed

to

improvements
centive.

in¬

business

It could be gotten into

the tax fabric perhaps if

it

were

substantial
personal income tax rate cut.
by

s

Economically,

of

course,

everything can be said for a
more equitable readjustment of

burdens, which is ALL that
Administration, has

ised.
not

prom¬

through reduction
of
spending will be possible in fis¬
cal
1955 only if international
conditions improve.
budget

Also

president

Is

Taxes

Qualified

Mr.

Humphrey and
Eisenhower
at
no




major

changes

which

desires

istration

will

and

proposals

back
of

terms

official

the

is

on

to

source

established

business

pool
gram

to

group

concerns

bid

on

a

can

petent by SDPA,

military

to

small

form

as

pro¬
com¬

a

procure¬

ment contract to this group.

Politicians, however, and
will be voting

of

a

RFC's former
to
a

eliminate

possible

and may or may not

weeks
ago that legislation would -be
passed providing for the event¬
ual
liquidation of the postal
savings system, appears to have
gone a-glimmering. Office

Department offi¬

cials, who at first interposed no
objection to
this proposition,
later broke down and confessed

they

also

would

keep this system alive.

as

a

future

views.)

With Coburn Middlebrook
;

•

like

to

Then

FOREIGN SECURITIES

national arbitrage in the

ing facilities, manufacturers and
fabricating consumers of copper
will be able to protect themselves

against inventory losses. And

market's

the

through

facilities

will be enabled to purchase

users

forward

supplies of the metal, and

producers can sell their supplies
for future delivery.
streamlined

new

will

contract

fu-«.

copper

be

dealt

ins

trading is resumed on June

It has had strong support in the

1.

trade and it is

anticipated that it

will result in accelerated turnover

the

on

15,

Approved

Exchange.

the Exchange

the

new

membership

on

contract

copper

by

May

is

basically different from the pre¬
vious

which
a

on

was

electrolytic

copper,

previously considered

Other grades of

premium grade.

refined

will be

because trading

one

based

copper

are

also

deliver¬
fixed

discounts.

TRADING MARKETS

Cement

Pew

Fisheries

George E. Keith Pfds.
Crosse & Blackwell A & B
Polaroid Corp.

Lisbon

I

Pfds.

Co.

Revillon Freres

Washington Brick & Lime

Foreign Securities Specialists

•

80 Bread Street...New York 4, *Y.

LERNER & CO.
Investment

<■*./-

metal.

the Exchange's hedg¬

Through

American Piano A & B

HARL MARKS & pp. INC.

I

trading:

Caribe Stores

Trading Markets

••"•v

free

of

National Company

I

I

lead, tin and

of Hartford.

I

I

now

(Special to The Financial Chronicle)

MANCHESTER, N. H.—Ralph J.
Maloney is associated with Coburn & Middlebrook, Incorporated

I

Firm

status..;

in London on Aug. 5*
opportunities will arise for inter¬

Riverside

I

the

of

are

able at the contract price or

...

!

"Saved"

The prospect of a few

markets

renewal

Gorton

Postal Savings

Post

repu¬

it

coincide with

own

changes, if any.

Be

the

if
similiar facility,

flect the "behind the scene" inter¬
pretation from the nation's Capital

a

requiring the

award

metals list
its prewar

copper

tures

(This column is intended to re¬

of small

defense

and be certified

in

of

business.
a

with

when

the "Chronicle's"

Under SDPA

to

conducted in copper,

would

giant government lending activ¬

on

Plants Administration"

hurt

defense

as

ity.
Democrats, on the other hand,
are
beginning to rally behind
the idea of keeping RFC.

arrangement actually has oper¬
ated

of

and

nucleus

the information that the "Small
Defense

well

liquidate RFC, even

to

tation

Small Business

One

the

futures

A

because

ing industry is demanding.

Develops

liquidate.

to

SDPA scheme for

Administration

replaced by

to

FHA-insured loans, as the hous¬

Quirk

as

like

repayment

payments

down

lower

an

The

to be proposed to

at least this summer.

increase

brings

Free

work.

gress,

Home

Admin¬

Eisenhower

the

Some want

Con¬
The
Finance

RFC,

shall replace the

agency

ex¬

are

pected

and

manu¬

Congress currently is tearing
kind of an

peacetime
No

in

success

economists

To

that

their

its hair about what

the

to

where

cases

facturing defense equipment.

overhaul of public hous¬
ing and slum clearance.

a

i'

assistance

it

Exchange

in the past have demon¬

strated

plete

politi¬

of

vulnerable,

appears

Both

which

in

other

been

having been cer¬

groups,

tified, have precluded awarding
bids
to
small
business
firms

delayed.
Adminis¬

the

the return of the metals industry
to a free, uncontrolled market, a&

zinc, and have enjoyed increasing;
Also,

There have

these

cooperation
with
Congress, would
formulate a
complete new look at the multi¬
farious Federal financing aids

excise

ferent

on

that

was

Federal

general

a

manufacturers'

This,

cally

Mr. Eisenhower, on the other

Promise

experience and have fallen flat
and failed to deliver on their

prospect also

indefinitely

been

Agency

the

worsen.

commodities

weigh the benefit of-some re¬
lief to those already taxed.

the

hand,

Another earlier

from the

qualifies the prospect in that he
conditions

Department was obliged
to
award bids to such groups
which
were
without business

Housing Program

Housing

tax

national

com¬

taxed.

the

where

explained,

was

Defense

Planning Delayed

within excise taxation, the howl

Secretary

Treasury

the

ever,

and
are

Sure, they are clamoring for re¬
lief, but if the price of cutting

accompanied

1955.

«ays

industries

Certain
modities

the
of the Exchange*
marks another important step irt
ring

popularity in recent weeks.

More

they think this will give Repub¬
licans to get re-elected in 1954.

dear

it

housing industry.
One feature
of this study was to be a com¬

only for the unemployment
"emergency," the GOP leaders
tiope Ike means to cut expenses
^sufficiently in the 1954 session
i© clear the way for a substan¬
tial cut in taxes, with the help

public

up

is

ures

of

tax revision bill

a

The restoration of copper to

contracts.

tration,

As Dubious

lined

against the bill.

has

Regarded

the Senate Post

on

Committee

Office

expiration date for these higher

Is

"liberal"

and

Democrats

Then

Republicans

ply because in a changing pic¬
ture, there is no need to act on
this so far ahead of April 1, the
rates.

1951.

There have been many cases,

solidly to the

came

of postal savings as a
great boon to the working man.

and

was

queer

AFofL

support

their

unbalancer

budget

a

52% rate, sim¬

and the

excises

the

price controls, the
forced to suspend

was

dealings in copper futures in July,.

mink!"

new

trading

net reduction in the tax burden,

given

were

ago

years

ointment

to throttle the

continuing

a

which is devoid of a substantial

Democrats

the

were

him for

the

are
operating
concrete expecta¬

as a

Like

tion.

and

Reed bill.

they

•upon

faith

for

are

trying seriously to

Revision Without Relief

ago,

rewarded.

will

than

"Well, frankly, Mrs. Nagmore—I don't think this would
be exactly the very best moment to touch

This

that

hope

leaders

COP

years

reduced,

be

extended,

EPT

also

servative Democratic committee

of

will
reason

and

Exchange

Congressional leaders because

that

com¬

Because of allocations of.

1.

materials

Federal taxes.

they think they have a commit¬
ment that the total burden of

preparations have been

June

position against
drive next year to

cut the burden of

(then) unhappy con¬

chairmen

all

Exchange, Inc..
today that:

announced

pleted for the resumption of trad¬
ing in copper futures on Monday*

the
bet¬

extended

were

general

Conditionally Promised
Like the

The Commodity

officially

bargaining

Balance Is

Budget

these

get

Trading i
Copper Futures

in

and

White House would be in a

taxes

Com¬

To Resume

gasoline, together with the ex¬
piring 52% corporation income
tax rate, should be extended.

;

McKay

17, N. Y.—cloth—$2.00.

request

tobacco,

liquor,

on

If

David

York

expiring higher excise

the

rates

a

—

Inc., 225 Park Avenue, New

a

that

ter

Y.—cloth—$5.00.

Cobleigh

has the President made
commitment.
This is

point

.

330

York 36*

New

other

the

on

income tax
tx>ost, averaging about 11% on
an

42nd

Mc¬

—

Company,

Winning in Wall Street—Ira U.

hand, would disclose that at no

personal

Street,

N.

of the Pres-

A careful reading

proval of the President, or the
•expiration not later than Dec.
SI of both EPT and the latest

C1951)

Book

pany,

dent's

such

Tate Whitman

W.

Graw-Hill

relief.

provide more
been given the ap¬

would

fcill

provide

This
than

1954.

relief bill in

tax

a

Investment Timing: The Formu¬

would
necessarily
large measure of tax

incentives,

i e s—

p a n

Wiesenberger & Company*

la Plan Approach—C. Sidney Cot¬

to
diminish inequities and improve

Congress, the expectation is that
President Eisenhower will back

o m

Broadway, New York 6, N. Y.-^cloth—$20.00.

all revision bill he discusses,

Republicans

the

Among

Arthur

phasizing what
a
bad thing
present high taxes are, might
give a casual reader of his re¬
marks the notion that the over¬

session of Congress.

C

Funds

Mutual

about

Investment

and

gress

•

of

compendium

annual

stage promise that the tax bill
which
they
have
committed
themselves to back before Con¬

Re-

—

An

information

Tel: HAnow 2-0050
Teletype NY 1-871

10 Post Office
Telephone

Securities

Square, Boston 9,Mass(
Teletype

HUbbard 2-1990

BS 69