Full text of Commercial and Financial Chronicle : May 29, 1952, Vol. 175, No. 5120

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A

TSFoK?
MAY

ESTABLISHED 1S39

311952

Tk e

IKMUS UMIHISTMIIH
UllUf

Financial
Beg. U. S. Pat. Office

Number 5120

Volume 175

New

EDITORIAL

Price 40 Cents

York, NvY., Thursday, May 29, 1952

We See It

By SIDNEY B. LURIE

Today and Tomorrow

Paine, Webber, Jackson & Curtis,
York Stock Exchange

Members, New

For

long while past

a

economists have
been inclined to say that
large outlays to help
'Hinder-developed areas" would be essential
when rearmament outlays
began to taper off or
even reach some sort of a
plateau—essential, that
is, if we in this country were to escape depression
and unemployment on a large scale. In recent
months there has been a growing disposition on
the part of some of the Fair Deal elements to
worry about recession and unemployment, not
postdefense but even while huge rearmament
outlays were being poured into the economy, arid
hence to preach a doctrine of supposed economic
necessity of large foreign aid now. Some of the
labor economists have of late joined in support
for some sort of ambitious scheme of abolishing
poverty the world over if we are to escape it
within

By EDWIN G. NOURSE*

many

Market analyst maintains external bearish

factors have
already been discounted id recent market action, and
numerous
constructive elements are being overlooked.
Asserts business trend is turning upward, stocks are
strongly held, and we have frozen-in inflation. Recommends purchases specifying industries and issues.
I'm
hand

bullish.

This

doesn't

that

mean

the

time

Former Chairman,

President's

tr' %

r

-

-,.:

evidence

the
~

.

—

favors

but selective

—

of the outlook.

a*

is at

constructive

,

that goods

The speculative en-

those

If I

can

.

who

i

"opportunity"
for
realize there's no rule

that says the market must go straight

were

or

widely prevalent attitude of mind lends
significance to certain indisputable facts
about the experience of the past year or two in
many parts of the world. Geneva, Switzerland, is
still in some respects a world center of informa¬
tion and sometimes of clear-headed analysis of
world economic affairs. Writing from that city
-recently, Michael L. Hoffman has this to say in

terest from here out;
The Background

v

v

Continued

*

on page

pay

rates. Thus the pipe lines

the national spending
full, and the pusher
pumps still working. It seems to me that the extent to
which the public's propensity to save has been at a high
level furnishes sellers a challenge to pare prices and
carry

stream

were set in motion months ago.
They are the reasons
why there has been a ceiling to the market as a whole
for the past six months.
And once an uncertainty be¬
comes an established fact, it loses market significance.
From here out, therefore, the chief point to remember

35

on page

higher
that

Edwin G. Nourse

But, and it's a big "but," all this isn't news to the stock
market! Today's headlines are the result of trends which

terial-producing countries feel temporarily rich
Continued

present salutory, but cautious, prun¬
ing has been completed. Business is
still in an uncompleted building pro¬
gram, and workers' pay envelopes
are
marked
for further
fattening
both from overtime work and from

to make the businessman reexamine his e x p a n s i o n
plans—pull in his horns, so to speak. Furthermore, in¬
ventories of consumer hard goods are excessive — and
the public isn't "spending minded."

the United Nations on the
1950-51, which was writ¬
ten in the economic climate of the first quarter
of 1952, shows about as well as anything can the
utter futility of the economic gyrations that fol¬
lowed the outbreak of war in Korea. The steep
rise in raw material prices which made raw ma¬

;

tagious recession. The government is
committed to a scale of expenditures
which will be large even after the

enervating than exhilarating.
The
downward trend of commodity prices
and
weakness
In
finished
goods

prices .'encourages inventory liquidation—not inventory
accumulation. And the decline in corporate profits fends

"The latest report of
world economy during

would

snowballing unemployment, and con¬

No question about it, the outward
evidence — at first glance—is more

the New York "Times":

that

forces

plunging,
runaway inflation, or the final "blowoff" of a boom; or, on the other hand,
the collapse of ability to buy, general
impairment of business confidence,

added

s. B. Lurte

and

make for reckless business

you

This

[

conditions

straight down. Let me tell
why I believe it's advisable to
have a more aggressive buying in¬

up,

■'

to

attempt the shortest description of today's
economic situation, I would describe it as "equilibrated."
That is to say, there is a pretty good balance between

spells

--which

conces¬

be sold and jobs maintained there
is prospect of snowballing into a general recession.
so

vironment is changing for the better

-

Advisers

Economic

Warns unless business and labor make mutual
sions

intermediate view

.

i

of

Describing today's economic situation as "equilibrated,"
e.
balanced by offsetting factors, Dr. Nourse finds
"stretch, out" of military peak goal from '53 to '55 has
turned tide by bringing the national economy in much
closer balance with its ^domestic -productive capacity.
Forecasts, however, increasing tensions for 1953 and be¬
yond, which betokens end of our "artificial prosperity."

'

violent moves are the,ex-1
ceptioo—-not the rule, And I don't visualize an advance
of front page proportions. Rather, it seems to me that
.

Council

i.

"bet the bankroll";

to

borders.

our own

Copy

The Economic Situation-

I'm Bullish

As

a

are

Continued
*

on

page

36

An address

by Dr. Nourse before the 37th Annual Internationa!
Convention
of
the
National
Association
of
Purchasing Agents,
Atlantic City, N. J., May 26, 1952.
•„'/

28

PUBLIC UTILITY ISSUE SOON —The "Chronicle" of June 12 will feature the proceed¬

ings of the 20th Annual Convention of the Edison Electric Institute which will
be held in Cleveland, Ohio, from June 2 to June 4.

DEALERS

State and

in

,

U. S. Government,
State and

Municipal

R. H. Johnson & Co.

Securities

Established
telephone:

STATE

AND

Oil

SECURITIES

Direct Private Wires
Bond Department

64 Wall Street,

BANK & TRUST

New York 5

BOND DEPARTMENT

ESTABLISHED

Wilkes-Barre

Allentown

Washington, D. C.

ol INDIA. LIMITED
Government in

.

Pacific Coast &

"
ft

Hawaiian Securities

Kenya Colony and Uganda

.

.Head Office: 26, Bishopsgate,

London, E. C. 2
Branches

♦

India, Pakistan, Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somaliland

Protectorate.

Authorised Capital

„£4,562,500
_£2,281,250
Reserve Fund
£3,675,OOO
Ifce Bank conducts every description of
banking and exchange business.

Paid-up

Capital.

__

Trusteeships and Executorships
also undertaken




*

Peace RiverSr

Bought

—

CANADIAN

DeanWitter
14 Wall

&

'

Sold

—

-

Quoted

&

Co.

of Principal Commodity

and

Security Exchanges

MEMBERS NEW YORK STOCK EXCH.

Pomituox Securities
Grporaitom
40 Exchange Place,

'

•

Boston

Los Angeles •
•

Honolulu

Chicago

upon

request

IRA HAUPT & CO.
Members New York Stock
r

115 BROADWAY

105 W. ADAMS ST.

NEW YORK

CHICAGO

Teletype NY 1-792-3

WHiteball 4-8161

and other Principal

WOrth 4-6000
Boston

Exchange

Exchangee

111 Broadway, N.

New York B, N.Y„
-

San Francisco

Light Co.

DEPARTMENT

Good body
•

Analysis

♦

ESTABLISHED 1891
Members

Power &

°:

Co.

Street, New. York, N. Y.

Puget Sound

CANADIAN
BONDS & STOCKS

Sherritt Gordon

Mines, Ltd.

Direct Private Wires

in

OP THE CITY OF NEW YORK

(

.

Natural Gas Co., Ltd.

■

NATIONAL BANK

-

Spokane

Los Angeles

...

NATIONAL BANK

*

Denver

Salt Lake City

Bond Dept. Teletype: NY 1-708

Exchanges

New York

50 Broadway

*■.» '

Williamsport;

THE CHASE

1915

Members of all Principal

OF NEW YORK

Scranton

Harrisburg

/

THE NATIONAL CITY BANK

Albany

Troy

30 BROAD ST., N.Y.

J. A. HOGLE & CO.

PHILADELPHIA

BOSTON

COMPANY

the

Mining

Securities

HAnover 2-3700
INVESTMENT

to

and

1927

Chemical

Bankers

Municipal

UTAH

MUNICIPAL

Y. 6

Teletype NY 1 -2708

Telephone:

Enterprise 1820

2

The Commercial and Financial Chronicle

(2230)

.

.

Thursday, May 29, 1952

.

•

This

The

IN

MARKETS

TRADING

Davison Chemical
Rights

Conv.

&

participate and give their

Consolidated Natural Gas*

they to be regarded;

are

American Can*

Assistant

Iowa Power & Light*

Due

•Common

Corporation

Puget Sound Power & Light

tory

usual

Corporation
120 Broadway, New York 5
Teletype NY 1-583

Specialists in

pany

Rights & Scrip

in

formed

1945

to

ac¬

the eastern distribution districts of

Petroleum

Co.

Under

aggrqssive management

the company has increased its

MC PONNELL & CO.
Members
New

Stock

Exchange

New

120

York

York

Curb

Exchange

BROADWAY,

cus¬

5

tomers

from
70,000 in 1945 to
250,000 by 1952, both through
growth and acquisition of smaller

distribution

costs

districts.

by

tfuilllllllllllllllllltlllillimilllillllllll

Trading Markets

of

Territory

American Furniture Co.

j

Tennessee

to

and

more

and

farm,

business

of

the

is

the

subsidiaries

distribution

of

liquefied
household,

for

gases

commercial

and

industrial

Handley Hardware Co.

L-P Gas is used

cooking,
tion

Boston & Maine Railroad
$7 prior

current

pfd.

cum.

$ 55persh.

(over

the

counter)

com.........

•

Listed

app.

as

New

and

York

if

equivalent $66

this

employing heat.
added

past year,

their

to

in

a

lim¬

replace nitrogen in the soil. This
broadens the market for Subur¬

sh.

in

use

suburban

INCORPORATED

recognized

distribution

that

earnings.

dividend

it

is

are

essential

an

aggressive
products,

IN

and

or

tanks
or

on

consumers'

prem¬

by replacing portable cyl¬

par

Inc.

St., Boston 9, Mass.
Tele. BS 142
2904
6800

Canal 6-1613




book

n e w
rev¬

value

Suburban

Propane

stock

common

is

stock

is

traded

opinion,
for

is

Corp.

candidate for

portfolio.

The

actually

in

market

and,

over-the-counter
ment

Gas

a

customer's

your

cludes

plain

suitable

a

the

in

invest¬

conservative

investors,
trustees, fire and casualty insur¬
ance
companies and investment

value, 843,853 shares

$50

which

1951.

was

of

Rulane

trusts.

Direct

wires

to

branch

our

offices

en¬

of

J

V

National

Its

UNION TWIST DRILL
Information

tile

request

fireproofing,
building

ornamental

tile,

roofing

in

states

seven

east

of

Now

products per year.
also

owns

that

our

economic

Washington

about

50

gether
of

somewhat

"plan¬
to

be

frightened by growing
they are removing

inventories,

restric¬
and

pealing

re¬

of

years

with

is

operation,

estimated

an

A

Mineral

Virginia Electric & Power

supply

Commoi

&

Rights

Consolidated Natural Gas
Commoa

&

Rights

*

National

Fireproofing

Co.

a

General Aniline & Film "A"

out of reorganization in 1936

first

funded

debt

mortgage

due

of

in

$800,00.)

1946,

$2,624,000 income debentures due
May 1, 1952 and 490,000 shares of
stock.

common

amounted to

Ensuing
to

the

1939

Net current assets

only about $800,000.

years

depression
also

and

1940-1945

difficult

were

of

years

the

when

war

1946

mortgage

and

the

assets

of

sales

has

since

the

end of the

war:

•

1946

1948

10,958,450

1950_—,—__—

CAROLINA
MUNICIPAL BONDS

•F. W.-

CRAIGIE&CO.
RICHMOND, VIRGINIA

Teletype: RH 83 & 84

Telephone 3-9137

12,00^,177
15,148,963

1951___
Net

the

earnings

for

;

<"oe

this

period,
depletion and

after

Specialists in

NORTH and SOUTH

Bell System

1949.

the
light"

Tel. NY 1-1932

VIRGINIA—WEST VIRGINIA

$8,620,643
10,137,101
9.879,449 :

1947—

New York T

Tel. DIgby 9-1550

following

substantially

increased

Dealers Assn.

retired

debentures,

the

figures, the volume

Security

Since 1932

was

5%

by

Y.

N.

Broadway

of

increased

indicated

150

1937-

years

frorq
$880,000 on Dec. 31, 1936 to over
$1,770,000 on Dec. 31, 1951.
As

Members

due

sharply restricted.
first

Geiisteiv & Frenkel

construction

new

on

for

Teletype BS 259

to¬

came

other

on

:

Foote

of

acres

with

prac-

"green

7-0425

approximately 2,500,000 tons of
The

buildings.

In

CA

N. Y. Telephone WOrth 4-5000

coal.

in

seem

^

The company

6,000

over

plant and clay deposit sites.
Re¬
coverable
clay is sufficient for

current

in

148 State St., Boston 9, Mass.
Tel.

Mississippi River.
These
plants have a total estimated ca¬
pacity of 1,170,000 tons of clay

due May 1, 1952 were
paid on ma¬
President, Grady, Berwald & Co., Inc.,
turity
partly
with
company's
New York City
funds and partly with the
help of
a
bank loan of $1,325,000.
National Fireproofing Co.
Net

ners"

on

the

The

EDMOND P. ilOCHAT

hollow

locations

construction
depreciation,
taxes, were as follows:. %
industry.
/
'/
Year
'
Total
Per Share
According to
1946—
most
$704,415
$1.44
experts,
T

Misi

t
3

^

°

,

potential

1947__

building
terials

at

is

a

are

in

mated

needs

short
for
are

classrooms

and

supply.

instance

It

is

approximately
over

the

next

esti¬

school

600,000
seven

583,079

1.19

846,739

1.73

$3,720,212

$7.59

——

Total.
As

highway

that

1.02

1951

very
high
level.
Low-priced
homes, public and commercial
buildings, municipal, water and

structures

.92

498,987

1950—

ma¬

452,886

1949

for

634,106

1948____

de-

d

m a n

Edmond P. Rochat

no

_—

dividend

was

1.29

Saving^

paid during

this

period, these amounts were
either
expended on plants and
equipment or used for the retire¬
ment of

Now

cial

outlook

management

company's finan¬

has

been

will

clarified,

have

to

stock.

share

"buys" around present prices.
Being associated with an "over-

pears

per average num¬

the-counter" house, I shall not at-

a

or

earnings,

now

at

about

for 39 Years

give

consideration to the possibility of
some
dividend
on
the
common

Selling

Over-the-Counter

Quotation Services

debts.

that the

the time is approaching when the

Co.,
December,

acauired

Earnings

NY 1-1557

to

for

sewer pipes. It owns
plants, located in 15 different

18

common,

Gas

Exchange

Birmingham, Ala.
Mobile, Ala.

drain tile and

par

exclusive

stock

States.

and

floor

was

sewage

1951,

Curb

New Orleans, La.-

tile, bin
and
silo tile, underground
clay
conduit, face bricks, stove liners,

since 1946 and with the

years.
Religious and medical fa¬
value, warrants to pur¬ cilities
are
also urgently needed.
chase 45,658 shares common stock
As the supply situation in
regard
at $9.50 per share
prior to Nov. to materials
has eased consider¬
27, 1955.
ably of late, numerous deferred
Net earnings before income tax
projects are being revived. Most
and
contingency has increased of the building issues are
selling
from $924,308 in 1946 to $2,814,- well
below their 1946 highs and
110 in 1951.
The latter figure is are
considered rather attractive

$1

I. B. Maguire & Co., Inc.
Securities Dealers

31,

preferred,

CAnal 6-1613

to New York

with

outlook for vigorous growth
the
foreseeable future then

business

consisted of $15,107,000 long-term
debt, 100,000 shares 5.2% cumu¬
lative convertible

to New York

Or>en End Phone

firm

a

same

uneconomical

Capitalization at Dec.

IDirect Private
Telephone

Enterprise
Enterprise

present

per

management,
increases in gross

dividends

areas

inders.
MARKETS

UTILITY STOCKS

Portland, Me.
Hartford, Conn.

$1

industry,

lay expensive pipe.
Decen¬
tralization of industry has been a
big factor in the company's

ises

Tel. HUbbard 2-5500

divi¬

If you want a security of

in

tanks by truck to permanent stor¬

of

in

share
yields about 5.9% on the current
retail price of approximately $17
per share.

gener¬

WOrth 4-2463

Assn.

meaning

as

The

of

to

age

willing

income

common

United

word s,-

2-8100

31 Milk

earnings

increase

real possibility in 1952
of the about favorable

in

trend

of

lib¬

a

controls

N. Y. Phone

Wfembers Nat'l

rights

a

view

annual

of

interpreted

modest

a

dends is
in

the

stockholders to receive

new

Liberty

ACTIVE TRADING

the

com¬

and

growth.
Distribution is effected
by delivery from * bulk storage

Street, Boston 10, Mass.

those

of

current

The

York

St., New York 4, N. Y.

HAnover 2-0700

a

tile,

connection

rural

and

adjacent to industrial

Dayton Haigney & Co.

on

New

25 Broad

of

the

The

appliances

Members New York Stock Exchange
Members

in¬

allow

Anhydrous

simultaneously.
sells

where

not

hancement potentials.

tically all

ally

is

increased

be

served

i

^'

Steiner,Rouse&Co.

Fireproofing Co. is, in my opin¬
ion,
an
attractive
speculation.

tions

also

T

This company is the largest man¬
ufacturer of structual clay tile in

credit

with the various gases.
The districts served

,<

benefit

forego

stock

both

as the same farm
served
L-P
Gas
can

customers

this

at

efficient operating

overhead,

centers

75 Federal

as

tional

equipment for

Exchange

per

uses

scope, was a liquefied gas
known
as
Anhydrous Ammonia
which is used as a fertilizer to

Ammonia

issued)

Stock

chicken

ited

company

13*

1% shares $5 pfd..... 44*
(when

Indus¬

for

used

product

new

now

Proposed reorganization plan
1-share

is

heating.

*

basis, this is written for

price

ban's products without much addi¬

(12/31/51) $140persh.

price.

it

services

33

fl39lllllllllllllllllllllllllllllllllllltlllll

accumulations

water

various other
A

LD

83

domestically for
heating, refrigera¬

brooders,
curing
tobacco,
deicing switches, metal cutting and

Lynchburg, Va.
Tele. LY

and

trially,

Scott, Horner &
Mason, Inc.

space

the

of

condi¬

As

dividend

line

my

purposes.

Moore

tion.

products which is diversified,

for

Ohio.

petroleum

Dan River Mills

Massachusetts

principal

*

Bought—Sold—Quoted

a

a

Gas

plus

should

each year

sale

L-P

increase

from

and

Office

authorized

has

Carolina,

company

ad¬

changed the past week

OPS

enue,

The

r

t

Louisiana Securities

New York Stock Ex¬

special situation
being currently neglected and of¬
fering, in my opinion, unusual
possibilities for capital apprecia¬

customers'
This

the

on

remarks to

m,y

which

wages

established

served includes Atlantic Seaboard

2-7815

and

Stabilization.

South

REctor

y.. ;

n

change, but will instead, confine

had

Co.

were

by

not

States

Tel.

<

earnings

offset

over

bottled gas companies within their

YORK

NEW

1951

should be

com¬

and

per

cents

versely affected by increased

the

business of Suburban Gas Co. and

able

The

eral

D'Arcy

time.;

Phillips

tempt to analyze any of the "Blue
Chips" of the building industry

always
J.

^

\ U V,.

Alabama &

Inc.,

to record their greatest net
earnings per share in 1952.
The fact that management has

quire the liquefied petroleum gas

Since 1917

&
Co.,
City. (Page 2)

listed

pany

John

was

Berwald

New York

been owned the entire year.

methods

choice

The

30

Rulane Gas

if

net

sales and

Gas

common,

at this

share

This

meeting these
requirements
my

(Page 2)

in¬

been

wholesale and retail levels.

Corporation

is

outstanding

have

about

by

increase

un¬

growth

Propane

creased

the

Suburban

Curb Exchange

would

1951

tion has

cou¬

possibilities.

1920

for

rates

dividend

pled with

,
* f*,

.

k

National Fireproofing Company—
Edmond P. Rochat, President,

to

Price

satisfac¬

income

BArclay 7-5660

Boston, Mass.

$1.30, $1.61, $2.21, $2.16 and $1.60.
Pro forma earnings of Suburban

were

of

because

1 '

*•*

'

Putn'am^Co.,

Treasurer, F. L.

be, nor
sell the securities discussed.)

product

that

their

New York Hanseatic

stock

the

attractive

are

5*4/52

confronting

market,
investment dealers
throughout the country are look¬
ing
for
se¬
curities

Pfd.

unsettled

current

*

from 1946 to 1951 have been $1.02,

Treasurer,

Gas Corp. (common)

the

to

conditions

N. Y.

to

intended

not

are

\

Selections

SUxb"^baT0wPr0?a™ AGaS ^orP°raT

particular security.

ber of common shares

F. L. Putnam & Co., Boston, Mass.
Suburban Propane

Established

offer

JOHN J. D'ARCY

Southern Production*

Associate Member

as an

a

and

.

Grady,

•Rights & Common

Central Public Utility

for favoring

(The articles contained in this forum

Wisconsin Electric Power*

Morris Plan,

reasons

| I

Week's

Participants

Their

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

Pfd.

Virginia Electric & Power*

Polaroid

Forum

Security I Like Best

I

L

$5

National Quotation Bureau
,

a

the

to be

a

common

stock

ap¬

good speculation in

booming industry.

Incorporated

Established 1913

less than three times 1951

46 Front Street
CHICAGO

New York 4,
SAN

N.Y.

FRANCISCO

Volume 175

Number 5120

.

.

The Commercial and Financial Chronicle

.

(2231)

3

LETTERS TO THE EDITOR:

"Our Dwindling
Comments elicited

Sovereignty'7

c_...

article

the

on

And

cover

Sovereignty," J. Reuben Clark,
Jr., former Undersecretary of
ico,

Ambassador

and

and

presently

Clark.

the *<.Equitable
Life Assurance
Society and of Western Pacific
Railroad
Co.,
contended
that

'

-

i

S.

policy of ron-entanglement
affairs, initiated by
Washington and abided by dur¬
ing the first century and a quar¬

I

inclined

am

to

history, made possible
■the great development of Amer¬

asserted,
achieved

we

under

would

our

pre-eminent status

have

never

to

Clark's

than

rather

HON.

EVERETT

'

Taxes

Government

'

tion

from

entangling

our

ropean

conflicts and is

involvement in

our

constantly dimin¬
a result of

Bank,

over

membership in the > United
Nations, Mr. Clark averred, we
lost

the

our

own

affairs

and

have

of

world

feel

in

course

impaired

New

York

Mr.

Clark's

that

the

Business

?

*

*

HON

mand

l)

such terms
or

Since

and

of

peace

as

'■

;

Mr.

the

on

SMITH

*

Registration of

BO 9-5133

Philadelphia

—.

Mr.

sub¬

Clark's

his

career,

25

Trading Hoiirs-:_^

Regular Features

.:

Bank

California Eastern

30

See It

and

•

.

'

A.

,

•

r

.

.

— —1

(Editorial)—

Insurance

—

—_

j

Natural Cas & Oil

29

:

with

Coming

the

15

—

State Department, and his service

Ambassador

an

as
v

■,

make

his

op-"

27

Field.

From Washington Ahead o-f the News—Carlisle

-

Indications of Current Business

world

Mutual

about:

hesitation in expres-:

politics 7

Funds

8

21

Singer, Bean

Bargeron____ 12

Activity__:_l___^_^_________

40

!

&.

34

that

pre-

long story.
It all goes back to what premises
course

an

.

J

me

could

we

the evidence

that

ise

not,

it

go

seems

alone.

like
'm
c

To'

we

K.

H.

simpler day. Our
scientists, followed by our engineers

and

>

businessmen, have made.

——w— does"vftaUy^and
directly affect

and vice

us,

e n

than

Smiui

says.

what

*

.

about

c,ark

M

these

Utility

25

_______

as

The

Security I Like

as

his gospel the words of Presi-

*Mr.

Continued

on page

—

Conference

in

Moscow,

37

correspondent,

appears

Twice

Weekly

-

Spencer Trask & Co»
Boston

•

Chicago

•

,

.

a

;

York

7,

N.

9576

to

^

Y.

WILLIAM

DANA

SEIBERT,

*

Schenectady

-•

Every

Worcester

vertising

CROW ELL, WEEDON & CO.

.

,

LOS ANCELES, CALIFORNIA

issue)

25,

York,

as

1942,

N.

Y.„

second-class

the

at

under

post

the

matter

office

Act

of

Febru¬

at

New

March

8,

Prospectus

Subscription Rates
Subscriptions

Possessions,,

President

in

United

Territories

Pan-American* Union,
*

29, -1952.

Dominion

oL

-and

$45.00

Canada,

Other Countries,

(general news and" ad¬
g.nd every Monday (com*
issue — market
quotation

records, corporation news,
and city news, etc,).

bank

clearings,

state

Other

Chicago

Offices:

3,

111.

135

U.

.

of

year;

Other

Bank

La

STate

Salle

St.,

2-0613);

and

iat.e

on request

S.

Members

in

States,
per

$48.00

per

year.

$52.00 per year.

PETER MORGAN & CO.

Publications

Quotation

Record

—

Monthly,

$30.00 per year..(Foreign postage extra.)
Note—On account of the fluctuations In

the

South

(Telephone:

SOLD

•QUOTED

•'

.

Thursday

statistical

•

Eng¬

1.879.

■

Thursday,- May

C.,

Copyright 1952 by William B. Dana
Company
*

"

•

.

E.

'

ary

Publishers

BOUGHT

TELETYPE N..Y: 1-5

•

,




COMPANY,

New

Place,

REctor 2-9570

"

.

plete

Private Wire to

and

HERBERT. D. SEIBERT, Editor & Publisher

Stock Exchange

Glens Falls

as

"

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

CHRONICLE

DANA

B.

Park
"

a

-

•

International

attended

1

*

FINANCIAL

25

TELEPHONE HAnover 24300

he

this week.

^

COMMERCIAL

WILLIAM

f

the

on

which

Reentered

NEW YORK 4, N. Y.

48

r_

May's seventh article in the series

Economic
-

Reg. U. S. Patent Office

New Yorjc

CORPORATION

39

•

The

ST.;

5

*

r

»

Members

SULPHUR

2

Industry.^*;—

Washington and You.—

specialized in

Albany

41

Tomorrow's Markets (Walter Whyte Says)

'

BROAD

30

Best__________Y___^

Tii£ State of Trade and

~ Washington in which he:

versa.

GULF

31

Cerner.—

confirmed isolationist and takes'

a

26

____

_

Securities Now in Registration_:.I_

he

For many years we

25

44

Securities

Securities Salesman's

t i rrres>

himself

Governments.

*

things.'*

describes

on

Security Offerings.—-

Published

have

46

\ Railroad Securities

t;

an *

But I do

s o me

work With other nations far more.
wonder
a

an

m

o. m

Public

yL

e

with

whether we like it or
have to deal with and

closely than in

k

a

Prospective

rag r e e>m e nt

have to accept the prem¬

we

that,

Inc.

Exchange Pl^ N. Y. 5

28

Wilfred. May

Reporter's Report_-j:_u_______l______i__________^

Our Reporter

r

me.to

other

compelling

nin-

u

formed person

accepts.

when

Our

sumptuous for

Bankersl____

and

40

Teletype NY 1-1825 & NY 1-1826

-

a

It might be nice to
go back to the foreign policy of
the days of the founding fathers,
one

Banks

Observations—A.

-

mackie,

HA 2-0270

46

About

it -would

seem
-

of

News

.

hearty disagreement with'

is

NSTA Notes

excellent:

Whiting Corp.

46

"

nform'ing'

himself

_

the Investment

Einzig—"British Wage Inflation"_______________

portunities for

<

Events in

Dealer-Broker Investment Recommendatio-ns-...-^

.

•

Cover

Stocks_____^____;

Canadian Securities
,

Airways

—

National Alfalfa

Business Man's Bookshelf—

r
*

.

what Mr. Clark said.
This

Angeles

— 27

*

/

As We

.

long, distinguished

connection

so

no.

Los

^27

■

my

and

25

-

HERBERT BRUCKER

I have

Teletype NY 1.-3370

Placements.
_____

,

f

R. II. SMITH

—

Editor, The Hartford Courant

sing

s

6

Direct Wires

Philadelphia__ 24

Private

■

.

Broadway, New York

.

Deposits of Savings Banks Show Gain of $117 Million in
April

—'

I shall

'

-

Oppose

Incorporated

•

.

61

*23

SEC—

u

campaign. -'

i

«

15

,__i4

J Midwest Stock Exchange Extends

'

Railway Company

ject matter in question.
Some
of the communications are given
herewith; others will appear in
subsequent issues.—Ed.

>

J.F. Reilly & Co.

.

1951, Reports

Cites Russians''Knowledge of Engineering—

President, Norfolk and Western

•

and

—

of the First National Bank of

Companies

greatly impressed with J.

it in the coming

use

article, the "Chronicle"
has received a number of com¬
thereon

3

Lower___„_—8

Typical Postwar Problems (Boxed)

rt

*

may

of

at Conference

Life

S. Congressman from

was

Clark's
ments

LAWRENCE H.

Reuben Clark's article and

be forced to accept."

the appearance

'

article

on

'

I

com¬

we

*

.

With

Wisconsin

armies, and to make

our

desire,

direct

U.

Continue

Malcolm P. McNair_._

•

is

politically feasible at this time.

make treaties;
to manage* our
.foreign affairs; and to declare
war
(subject to our temporary
right of self-defense), to chooses

to

S, Tower— 20

Taxation, Bank Earnings and the Business Outlook Discussed
;

damental matters: "the right to

enemy,

«

Department Store Net Earnings Down 39% in
'

City

program

Orders

Chlorophyll

and Chemical

Correctives—Fred F. Florence____ 22

,

perhaps too reactionary to make it

our

sovereignty in three great fun¬

our

National
19

Columbia University's Second "American
Assembly on Inflation" Warns Inflation Is Serious Worldwide Problem
i

I '

of'view,

point
entire

Rights

17

—

be said in favor

can

&

.

Investments—Roger W. Babson

Sovereignty" (Letters commenting
by J. Reuben Clark, Jr.)

*

While much

deter¬

to

power

Stock

Bargaining in Labor Disputes

"Our Dwindling

-

our

have

National Alfalfa
16

_—

The Inflation Bias and Its

.

Chairman of .the Board, The Han-'

-

TRADING MARKET$

13

Strangling Risk Capital—Walter Maynard

—Hon. John W. Bricker__

,

V

S. GRAY —

PRIMARY

12

___

18

-

ishing sovereignty. As

mine

1*0

*

WILLIAM

WHitehall 4-6551

16

article

respon¬

STREET, NEW YORK

'

'

The Steel Industry—Where Is It
Headed?—Walter

by Mr. J. Reuben
Jr. "Our Dwindling. Sov-;
ereignty," deserves re-reading.
> '

Eu¬

too late!

Power

__

The United Nations Can Destroy Freedom of the
Press

—

Illinois

obsoletes

be

.

view
,

'

you've
may

9

Can We Upset the Russian Regime?—Admiral
Alan G. Kirk—

Clark,

s

sible for

from

WALL

Telephone:

;

Bad

McKINLEY

•

The

-

,

alliances

caused

Senator

.

if

—

Tomorrow

Obsolete Securities
Dept:

11

.

S.

U.

sell.

99

.

_

Electric

.____—

Trends—Adam Gostomski

—Leo Wolman

r

t

Northwest

—

Equities in Savings Banks' Investments'

'

Actually, said Mr. Clark, the
"departure from our former pol¬
icy of isolationism and absten¬

on.

___^

The Deterioration of Collective

DIRKSEN

us."

-

Objections to Preferred Stock Issues by Banks—E. S. Klise

.

-

from it.

away

1

—Augnst"Ihlefeld

(with.

of

Big

Current Economic

toward

move

of

.—Frank McLaughlin

?

conclusions

point

today

"

the

policies—domestic
and foreign—which now domi¬
nate

inclined

President

us

5

_

years ahead, particularly if there
is A change in Administration, we

be

May,

to

7

I

will

he

See

4

;

Utah

-economically.

TOO LATE"

4

6

Squeeze

ica—politically, industrially and
Conversely,

J

Driving Force of Postwar Business Boom Declining
—Roy L. Reierson.
.— -i

though I believe they are unpop¬
ular at the present time.- It is my
impression that in the months and

our

Cover

_

.

Uncle Sam—Deficit Addict^-Orval W. Adams

{

■

agree

Clark's

__x.

Industry's Stake in Atomic Energy—C. J. Mackenzie________

F. BENNETT

from

"TOMORROW IS

Situation—Today and Tomorrow

Property Insurance Companies' Prospects—Fred H. Merrill__-

Role of

Senator

President

Economic

Incentive and Soviet Progress—A. Wilfred

a-ma-

«

-llCHTtra

Page
Cover

-t—--

Spiraling Helicopters—Ira U. Cobleigh

<

good, though, to have, all

U.

the

of

•

-

is

HON. WALLACE

An European

ter

suspect that

_Articles and News
Articles-and

-

—Edwin G. Nourse__^i_

this talked about.

of

Director

It

•

Mex¬

to

rather

The

•*

jority of the-American people ac¬
cept this as their premise, and so
incline also to disagree with Mr.

of the "Chronicle" of May 8,
captioned, "Our Dwindling

page

State

I

-

.I'm Bullish--Sidney R. Lurie_

.

Ambassador to Mexico
criticized our policy of alliances with European powers, includ¬
ing membership in ihe United Nations, as main cause of <dimin-i
ishing sovereignly of the-Unitad States. Tracing American for¬
eign policy from days of Washington and Jefferson, Mr. Clark
argued that departure from our original policy of isolationism
was responsible
for our involvement in European conflicts.
an

-

...

-

AND COMPANY

by J. Reuben Clark's article in which the

former Undersecretary of State and

In

I NDEX

a'

of :exchange,

reriilttanees for

for-

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

31
Tel.:

Nassau

Street,

Dlgby 9-3430

N. Y. S

Tele.: NY 1-2078

4

The Commercial and Financial Chronicle

(2232)

weight slung between main ro¬
tors, forward and aft. This was
an important departure from the
single dangle, or cargo hook type
of suspension,
and has set the
stage for great increase in cargo
capacity.

Spiraling Helicopters
By IRA U. COBLEIGII
Author of

Presenting

a

"Expanding Your Income"

brief review of the forward motion of the "flying

eggbeaters" together with speculative comment
this wing of the aviation industry.
in

Back
nardo

the

da

16th

Vinci,

sketched

the

multiple

first

helicopter, but it
that

century Leo¬

was

genius,

plans for a
not till 1907

French

a

scientist,
Louis B

r e-

quet, built
flew

and

wing

rotary
aircraft.

t

freak waiting,
it were,

as

wings

the

in warfare,
stepped

have

Forces

their orders manyfold. Before
the
backlog of the heli¬

up

industry,

of
U. Cobleigh

Ira

speedier pro¬
peller driven planes, first fight¬
ers and bombers, then commercial

in

weightlifting humming birds; and land
on, or take off from, a flat roof-;
top, or 50 square* feet of open !
terrain.
Spectacular pictures of
space

like

from

helicopter

rescues

lashed

also fascinated motion

seas

picture

wave-

newsreel audiences, and
a larger field of useful¬

hinted at
ness

the roto-craft of the

for

fu¬

ture. W'"

Although
vators

tions

of

inno¬

with

wing

great

a

and

power

mechanisms, their clumsy appear¬
ance (the helicopters—not the in¬
ventors), low flying speeds, small
load capacity, and high cost of
production, kept the industry in
a rather prolonged infancy.

World

War

II, however, devel¬
oped new uses for helicopters.
Submarine
spotting
was
right
down their alley, and a new di¬
mension

added to sea rescue.

was

In early days of aircraft carriers,

destroyers
up

orders

of

Piasecki

around

is

$60

essentially

unit,

picking

Twin

assem¬

fuselages
Goodyear

up

Coach

million.

an

and

units may

controls

be increased this year

1,400 units at a total sales price

to

of

million. The
baby no longer.

heli¬

$300

over

Aircraft

were assigned to pick
pilots of planes which fell in

and

from

American

Machine

Foundry. Its own headquar¬
is at Merton, Pa,
^

ters plant
Unlike

Bell

secki is not

and

United,

and

Corp.,

a

services.
stock

the

For

United

minded,

Aircraft common, with

a

backlog

(all types of aircraft, including
helicopters) of roughly $1,300 mil¬

is past the
development
Issue consists of 3,186,193
(after 20% stock dividend
in May 1951) with a 1951 yearend book value of $33; and per
lion,

stage.

shares

share

earnings

roughly $2.90.

of

For income purposes,
dend
its

last year is

continuance

the $2 divi¬

of interest, and

seems

reason¬

a

ably certain 1952 projection, based
current results.

on

At around 30,

UR

yielding well over 6% offers
a
not unworthy entry into heli¬
copters, as a subdivision of inte¬
grated aircraft production.

"insurable values." Points

improved ..forms of insurance

Helicopters, tried out on
missions, proved far
: swifter,
were better able to spot
sea.

these

rescue

Bell

Aircraft's

development of

new

but concludes

industry must do tremendous job

to teach and convince
of full merits of insurance.

public

In

industry

about.

on

tical

reports

is geared 100%

copters.

Stock

fairs,
taken

and

be

few

a

figures

goods

af¬

have

I

as you

an

Without it corporations and indi¬
viduals could not borrow money,

property

insurance

the insurance

indemnity is,

essential ingredient in
the pattern of economic progress.

source

on

know,

could

the

not

risks

be

transported

investors

of

would

immeasurably increased.

The next largest element of ex¬

which

penditure

by the property insur¬

su m m a r

ize

ance

industry is the payment of

this point.

My

some

$1,300 million of commissions

to

all

there

fact that their speculation in this
company

all

leading statis¬
which

that is provided by

contract. This

a

reference is to

hopes and dreams and the

range

From

long

dividend payer

a

buyers here have to gaze

we

talking

are

classes

of

property in¬
surance

to heli-. d

e

unt red

rwrit ers,

H.

Merrill

is

outstanding in whether they
amount of 332,438 shares, and for
be capital stock companies, mu~
leverage purposes follows an in¬
tuals, reciprocals, inter-insurance
debtedness of $18,400,000. Orders
exchanges, etc. In other words we
backlog of $150 million assures are
talking about the aggregates
volume production for well over
for all companies engaged in this
two years to come and suggests
very essential industry.
At the end of 1950 the total ad¬

and

agents

whom

of

in

scattered

community throughout the

country. The local insurance agent
is always an important man in his

community. He typifies the Amer¬
ican system of free

enterprise and

initiative.

J

.

than $480

More

million is paid
by this industry in salaries and
wages.
More than $21 million is
paid in pensions to retired em¬
ployees. Insurance people travel a

mitted assets of the property

great deal

surance

counts

in¬
companies exceeded $13
of which about 82% or

brokers,

thousands

are

every

their expense ac¬

and

for

traveling in 1950 re¬
corded
billion,
$58 million of expendi¬
$10,700 million represented the tures, from which transportation
admitted assets of the capital stock companies, hotels and others bene¬
segment of the industry. In terms fit. They spent $47 million for
a
new
technical approach or a
of sales, or annual volume of pre¬
rent^ office equipment purchases
different power application. Kelmiums written, the figure for 1950 totaled
more
than
$22 million,
lett pioneered, in 1944, twin inwas in excess of $6,800 million, of
printing and stationery amounted
termeshing rotors; Hiller in 1944
which about 77% or $5,200 million to $37 million and postage and
offered a coaxial rigid motor; and
were
premiums written by the express charges were more than
today produces a lightweight 3
capital stock companies.
$24 million, and finally they paid
place job. Also has an order back¬
While property insurance is by over $180 million in Federal and
log of $16 million. Stock sells
State taxes.
no means as important to the in¬
around $6.
Kaman, a little larger, has been
working with the Navy on a gas
turbine

version,

production
craft.

Stock

of

tion

ambulance-type
specula¬

level.

would

fraternity

surance

business,

occupies

an

as

the life in¬

include,

Mc¬

Aircraft, Doman Helicop¬

Widening Field of Property

it

nevertheless
important position in

Insurance

Forty

relation to the securities business.

or

fifty

ago

years

the

property insurance field was lim¬
these companies owned some$5,200 ited largely to fire insurance and

For

example,

at the end of

1950

million of U. S. Government obli¬

going in rotary produc¬

circles

Donnell

successful

obvious

an

tion at the 4%
Others

after

vestment

gations,
other

states,

more

than

$2

billion

of

types of bonds, including
municipals and corpora¬

ter (now working with Curtisstions, and their stock holdings had
Wright), Hughes Aircraft, McCul- a
market value in excess of $3,400
helicopter logh Motors, and Cessna Aircraft.
million. These securities produce
personnel from a position aloft, plant at Fort Worth, Texas, con¬ There were some 40 companies for these
companies more than
firms the importance of this avia¬ in this field in 1947 and these are
were more efficient, and were not
$300 million of annual net invest¬
;
handicapped by rolling in heavy tion type. Bell offers the HTL 4, among the survivors.
ment income, something over half
a
three place trainer for Navy
seas.
And they cost a lot less to
You'll note most of the stress of which is
paid out to the share¬
operate. So the Navy moved up and Army; its YH 12 ten place here has been on military output. holders
of the capital stock com¬
rescue
and liaison unit for
the
'its priority on the roto-birds.
That has been merely to coincide
panies and the balance is rein¬
\
Then came Korea, and from ex- Air Force; and its H-61, a sixteen with, the facts. Visions of
impres¬ vested to provide a growing equity
) tensive military use there, the place Navy .requisition for anti- sive civilian uses for the future, for
shareholders.
helicopter has now emerged as a sub work.
however, are not without sub¬
Not only are these companies
;vital adjunct to ground forces, for
Although Bell lost money in stance. There is now helicopter
important to the investment fra-'
j observation,-^communication and 1946, 1947 and 1948, it was able mail air service in Los Angeles ternity but their contribution to
fire control. .Even more important, to pay $1 per year dividends (on and
Chicago; and a contract has
our overall economy
is indicated
however, is the new rotary wing old stock)
out of wartime net been let for 'copter passenger and
by a few figures taken from the
Now
extant
transport function. For swift de¬ revenues.
in
the mail service in New York.
Last
livery of troops or supplies to any i amount of 876,178 shares, Bell week, strike bound scientists at composite expense exhibit. Of the
sector, even rugged, swampy or j.common (split 2-for-l this year Lederle Laboratories, Pearl River,
* An address by Mr. Merrill before the
roadless terrain, these air-trucks and adjusted for same) has
ranged N. Y., were nourished on food Fifth Annual Convention of the National
seem destined to importantly re¬
Federation of Financial Analysts Socie¬
from 4 to 18 since 1942.
At 15,
brought in by helicopter.
Con¬

the

out

coverage,

Pia¬
and

big new
Conn., Si¬
to remain
among the so-called big three in
that this is a live one if the in¬
rotar.y-wing jobs.
The 10 man
S-55, Sikorsky built, was widely dustry lives up to its billing.
acclaimed by Marine officers in Stock today at 14 does not put a
prohibitive price on your rotary
late 1951, for battalion transpor¬
'
;
Vr
tation in Korea; and with slight romance.
Down the line from these three
modification, is being heavily or¬
dered for Navy, Army and Marine are quite a few others, offering
with
plant in Bridgeport,
korsky seems likely

varia¬

new

many

'copters,

a-sortment

and

inventors

evolved
of

1950

(Sperry)
and
Foote
Brothers, blades from Parsons Co.
(Traverse, Mich.), hubs and rotor

.

tionless

amount of

traveled,
production

industry was roughly $50
million; today it's over $500 mil¬
lion. 1951 production of some 350

finally
jets copter is a
streaked
across
the : horizon.
Probably the first completely
Meanwhile, too, the Zeppelins and * controlled
and
practical flying
their nephews, the blimps, moved
helicopter was the Sikorsky, in¬
into, and, in due course, out of troduced in
early 1942. From this
the limelight.
:
model, Sikorsky became probably
'
In
the
1930's, helicopters ap¬
the largest producer of helicop¬
peared here and there, stunting at ters in World War II. Now in¬
country fairs, proving to gaping
cluded
as
a
division of United
crowds that they could hover mo¬

factors
(2) heavy new
capital and other property construction; and (3) growth in

approaching my subject "The $6,800 million of premiums written
zooming
from Outlook for
'Fire'," I think it is in 1950, over $3 billion was paid
of
$6,500,000 desirable to orient ourselves
as to
out for losses or for the
indemnity
of 'copters to 1952 booked the
magnitude of the

really

from

widening

ever

rising prices;

by the military.

bly

Company

field of property
insurance, Mr. Merrill presents among
for continued
expansion: (1)

strument

and

transports,

troops

Tire, transmissions from Ford In¬

copter

other

while

20

haul

can

Fund Insurance

After describing economic
importance and the

biggest yet,

Korea

in

the

Armed

the

vastly widened

the

of

of helicopters

utility

aviation

an

Vice-President, Fireman's

has been ordered in quantity

worth

Because

of

sort

ambulances, thus sav¬

..of lives.

seemed

be

This

YH-21.
and

Thursday, May 29, 1952

.

By FRED H. MERRILL*

is

While production
of this class, as well as in smaller
fire
posts.
Further, they land
units is under way, Piasecki hopes
their forces in a unit, all ready for
action.
Thousands
of
critically for important orders, at least by
1953,
for
its
quite
hush-hush
wounded men in the Korean en¬
H-16
reportedly capable of 40
gagement have been swiftly evac¬
uated from remote sections, and passenger transport.
even
from
mountain peaks
Piasecki, in point of growth; has
by
thus remain undetected by enemy

ing precious hours and hundreds

after

helicop-

e r s

to

place paratroop planes, since they
fly just above tree tops and

.

Property Insurance
Companies' Prospects

roto-job, be¬
the

a new

the

be

to

Piasecki

moment

r

demonstrating
lieved

can

these flying

For

years

that,

a

the

At

shares in

on

.

new

some

marine

classifications.

In¬

dicative of the effect that techno¬

logical progress has

upon

the in¬

dustry is the fact that the largest
single category of property insur¬
ance now written is directly trace¬
able to the automobile.

Premiums

*

5

written

in connection with

vehicles

now

total

more

motor

than $2,600

million

annually, of which about
$1,200 million are for the physical
damage coverages which have al¬
been referred to as the fire

ways

lines

and

which

were

the fire insurance

written

in

companies. The

public liability and property dam¬
age classes or the so-called third-

party coverages now total about
$1,400 million of premiums. These
the so-called indemnity com¬

are

pany

coverages and were written

companion policy in order to
provide full coverage.
as

a

<

and with

total backlog of $370

a

ties, San Francisco, Cal.,

helicopter

dividends

from

sentation

ASSISTANT
Business
and

man

requires

of

assistant

for

tax and general account¬

ing. Ability to interpret corporate bal¬
ance

sheets and operating statements

desirable.

Write

qualifications.
cial

York

Chronicle,
7,

Box

F

515

Commercial
25

Park

stating

&

Finan¬

Place,

N. Y.




future

repre¬

of

heli¬

New

secki

the big three, is Pia-

Helicopter Corp.

investment,

present

Here

or

any

prospec¬

tive, is not splashed about among
a

diversity

of

aircraft

Piasecki is all helicopter.
first its PV-2,

back

in

March

tandem

100

rotor

it

its

unit,

tested).

with

(in

cargo

200

MPH,

and

is

already

airports

urban

of

use

being

away

areas,

from

such

A

Producing, Refining and Distributing Company

Sioux Oil Co.
COMMON STOCK

as

Inquiries Invited

"flying taxis" from
i

fields

to

mid-city

r

roof

JAMES M. TOOLAN & CO.

tops.

Well, hasn't it been nice to talk
about

some

besides

an

page

pas¬

LaGuardia, and Elizabeth, N. J.;

landing

first

of

congested

lOffering

the

on

increased

Think too, about possible

removal

and the

developed
PV-3,

to

power

—

single tail rotor,

a

1943,

1945)

types

were

speed

capacity from 20 to 60 (jet

senger

rotary

Third of

with various business

services

important

the

copters.

personal financial responsibilities

bookkeeping,

and
in

Continued

May 6, 1952.

sider, also, what would happen if

million, Bell offers diversification,

FINANCIAL

The next most important classes

other

kind

of

inflationary one?

spiral

67 WALL STREET

HAnover 2-9335

New York 5, N. Y.

Teletype NY 1-2630

14

Volume 175

Number 5120

.

.

The Commercial and Financial Chronicle

.

5

(2283)

(F
The

through the government-controlled
shops at government-fixed prices.

Incentive and Soviet Progress

Steel Production

Electric Output

But, to fulfill the incentive in¬
stinct, the balance along with the

By A. WILFRED MAY

Cat-loadings"
Retail Trade

State of Trade

This is the seventh in

Food
Auto

and

Industry

Price

Production

.

Index
»

Business Failures

V
industrial

output

the

past

week

recovery from the strike-bound level of

a

continued

distance

show

to

few weeks ago.

a

The industrial progress achieved

J

Total

cover,

ing

by Soviet Russia already and the
which

she

highlighted

has

still

at

here

How¬

last

Conference

dropped 4% to the lowest point this year, but were close to 14%
higher than a year ago.
The oil industry continued to be ham¬
pered by the wage dispute and output suffered as a consequence.
ingot production

rose

to

102.7%

held

Arden

(revised),
closely approximating the level prior to the recent shutdown. The
output is scheduled at 102.3%, or 2,124,000 tons of
ingots and steel for castings.
4

House,

raise

current week

these

days of "shortage" and threat of strike, steel con¬
sumers are acting strangely—almost as if
they weren't worried at
all, states "The Iron Age," national metalworking weekly, the
current week.
By and large, they aren't pressing for quick deliv¬

They aren't frantically trying to
aren't buying premium-priced material.

ery.

conversion

deals.
They aren't even
offers, this trade journal observes.

place

big orders.

of

the

Soviet

struck

by

of attributes of
This is
capitalist economy.

output,

in

the

fundamental

public
vices

it

motive

is

other than

the

interest

-

tion

of

some

other,
for

tion

it

will

take.

All

market

factors

decision, states "The Iron Age."

are

is

contrast

this crucial

awaiting
- ~

Supreme

no

hint

as

to

come.

The

the

Court

case.

its decisions

Mondays, but it
trade journal.

on

concludes this

can

gains, two of the

disputes at the Metuchen, N. J., factory "hit Mercury
straight week."

operations" following a wildcat walkout two weeks ago.
Willys,'
which had lower production in the preceding week as it/worked
new Jeep models into
programs, showed an upturn last week in
-truck assembly. \
u!
-

^--- Labor disturbances, said "Ward's," have caused the industry
to lose more than 4,000 cars and trucks
during May/
: ' ' ''

new

agency also reported that many producers noted that
car sales in the first 10
days of May were higher than.,

creased
on

found

car

build

It added that several volume producers failed to show
gains, but this was due more to their inability to

Output Scheduled to Show Mild Increase
This Week

in

general
sel

insurance

far away.

/Trinity

.

Balance between supply and demand has been

improving for
months, but some products, notably large-size carbon bars
heavy plates, are still hard to get, says "Steel," the weekly
magazine of metalworking. Now there's a clue that the
pressure
and

for bars may ease up.
time the
increasing stringency in hot-rolled carbon
quality bars has been attributed to a great extent to mount¬
ing requirements of the military shell and fuse programs. There
is growing indication that shell makers
are
receiving directed
shipments of bars much in excess of use and that inventories are
expanding to total six months or more.
Some steel distributors
some

and

Exchange

on

page

33

b

y

the- Curb's

but

there

is

Board of Gov-

doubt

no

e r n o r s.

payroll savings plan.

In

any

it is agreed that there is

acted

event,
legal

since

,

collective
have

ti;On

farming,
it

in

Au¬

gust, 1951.
-Prior

found

coming

to the institu-

Michael E. Mooney

Agriculture
In

as¬

the

to

President

no

Some Slight Freedom in

authorities

has

as

sistant

compulsion.

of

Mr.

Mooney

the

to

he had been
sion

expe-

of

\

•

joining

the

Exchange

Director of the Divi¬

Opinion

Writing

the

at

dient to give the individual mem-

Securities and Exchange Commis¬

bers of the Kolhoz the incentive of

sion in

an

extra one-half

its

each

for

for

private

disposition

of the

Washington, D. C.

full hectare of

their

property
ment

or

develop-

gain,

Two With Inv. Service^

the

(Special to The Financial Chronicle)

being

produce

rate

about $320
;

of

ex¬

local

in

The

free-

writer, also rela-

I

found

receives 200 rubles per page.

-

We're in
■;

Non-Socializing Taxation

/

a

position to knew with our new.

(

direct wire to

^ In the sphere of taxation "also !
are

^
■

mg^ their realization of the imporThe individual

tance of incentive.

is

tax

income

imposed

income-level

lower
r

at

than

a

much

in

'

;

more

the

'

Other direct

slowly than here, the

13%

impost on income

of 1,000 rubles or more per

month.

private wires connect

Dallas—Houston—San

In brief

Antonio—Los

we

Try

by the administrative authorities,
made

available

consumption.

public

levied

disguised to the buyer.)

are

the

York

fast,

us.

SCHERCK, RICHTER
Member

the seller and completely

Although

Angeles—New

Likewise

a

on

with

for

transactions tax and a
consumer's
sales
tax
which
is

there is

us

have the facilities to give you

ing flexible and "played by ear'
not

-

efficient service.

imposts on industry
complex for analysis, be¬

are

>

..'/:.//

Chicago and Kansas City.

tax

too

in'Nashville.!

the

Compared
with the U. S., the Russian tax
is re-gressive,
since there is a
complete cut-off on progression

and

-

Clark, Landstreet & Kirkpatrick, Inc.

far

United States, and progresses

are

*

\

the Soviet authorities evidenc-

prises

Continued

the

Place

increase, I
well-paid;
this profession

highly i regarded,

tively

r

(The

several

coun¬

for

occupations.

fictitious

and

economic

lance

with

signs that the day of enough steel for all is not




state

to

purchasing; power).

..

.

For

and

in

top surtax being J3%.

are new

bar, has been
appoint e d

winners;

monthly return of 8,000
($2,000 at the officially-

change,

field stocks under output restrictions than to lessened

There

the

of

and

York

a

established

.

demand.

Steel

New

relatively

women

some

sales

up

desirable

were

getting

.

third

10-day periods of April, "reflecting in¬
buyer interest following the demise of credit restrictions

May 7."

new

and

chusetts

an¬

equivalent of the U. S. Treasury's

to output.
piece-work,

on

within

and

strongly

.

both the first

McCormick, New
Exchange President,
announced today that Michael E.
Mooney, member of the Massa¬

that it is quite strong, particularly
on those workers who are on the

Russian

-

T.

Curb

the

rubles

Overall auto production would have fallen more the
past
week had the independents not shown improvements.! Nash con¬
tinued overtime production and Kaiser-Frazer returned to "normal

tied

industry is

tween

Chrysler's DeSoto engine plant, labor troubles at Briggs
Manufacturing Co. (Plymouth body supplier) and an adjustment
to NPA quotas at Dodge resulted in a 2,600-unit loss.

their

of

Edward

York

Engineers of various kinds, whose
numbers it is evidently deemed

strike at

This

°A-

case

some

others.

so-called unions to done on the extensive free marDENVER, Colo.—Robert L. Falfunction as speed-up mechanisms. ket
lander and John L. Talbott have
The
government
assesses
Thus,
the Soviet
productive rent 0n the collective in the form joined the staff of Investment Serprocess
is effective rather than 0f a ievy 0n its produce, which vice Corporation,
444 Sherman
efficient.
There are great differthereupon gets to the consumer Street.
ences
permitted in earnings be¬

big three auto makers—Chrysler Corp. and Ford Motor Co.'s
Lincoln-Mercury Division—suffered setbacks.
"Ward's" said a

-

banks

cernible;

industry, bonuses

directly

Most of

helping

for the second

the

equal than

The degree of social- compulsion
bond buyers is not easily dis¬

problem
output-incentive par-

worker

being

(and has done so) anytime,

While the independent car producers showed

ours

throughout

In the automotive industry last
week, a "flare-up of labor
troubles," according to "Ward's Automotive Reports," caused auto
output to slip about 2%.

Labor

the

today, in¬

equal; but

are

on

ap-

of production,
which is one

men

more

to the lottery pool

benefit

companies.

ticularly important there.
There are many wage incentives

met on Monday with no mention of the steel
It is scheduled to meet again next Monday (June 2)
and then recess for the summer;
Customarily, the Court announces
seizure

that.

one

Soviet Union

principal remains "inviolate";
and thus the bonds are held by

distribution, makes this

-

to when the decision will

fact

The

problem

of

There is still

accrues

the

Only the

probation.

industry at the crossroads—waiting

Supreme Court decision that is expected to point the direc¬

a

along with the

in

the

Mooney Counsel for
N. Y. Curb Exchange

In lieu of

,

lr?Z

waiting

and third-class

on

The

-

for

3%

Moscow

the

redemp¬
lottery. The

to

,

j

-

•

of

priority of

subject

are

^

•

lar-and-cents

and

seen

duty to

mere

the

far

are

capitalist incentive de¬

all such bonds.

on

issue and

that

distribution

being employed.

used

his State or regard for the need of
Despite the influence of government controls, all this has to
is
others
necessary.
In many
mean steel producers are
gaining on their market. They know it,
work places,
including factories
too, and most are looking for'a definitely competitive market ing ^and
building- projects,; this ob¬
the fourth quarter—perhaps in the third.'
However, they expect a
server
noted
tablets
commemo¬
few products such as larger sizes of bars and
plates to remain in
rating selected workers perform¬
strong demand.
;
;;
""
1 :' :
ing exceptionally well. -In answer
to my inquiry whether that sufThey admit that they are stepping up their selling effort and
ficed, I was invariably informed
watching their competitors' prices.
It all points to an easier
that whereas previously such
market, but a strike could change it quickly, declares this trade
honorable
mention • acclaim' had
authority.
•
,•
•„
/,/
- -/ _;
sufficed, , now it is necessary to
There's no doubt that mills are fearful of another strike and
include "the old do-re-mi" of dol-

suppliers not to make long-term

In

compulsory savings, the lottery is

its

element

evident

the

are

incentive. .For individual worker

In time of real shortage they wouldn't admit this—even if
true, the magazine reports.

with

government's savings bonds to the

Union must be

A. Wilfred May

in

difference

trains, in
living quarters, in restaurants, etc ~
etc., etc

Trade operates

Lottery

visitor

the

•-"to

accommodations

Savings Bonds Distribution via

Also

the

in the first-

rooms,

have

of

extends from

waiting rooms at the
airport, in the railroad

deed—all

free

Any

They aren't making big
listening to gray market

good.

This week finds the steel

law

Soviet Union

distinction and privilege

in

sub¬

such,

as

contract,
full legal protection.

com-

embracing

have cautioned their scrap
commitments. '
;

business,

the

under

'

hand, they are becoming particular over quality.
They are carefully specifying and insisting on particular, sizes
and grades they want.
They are buying closer to home—to save
freight.
And most; will admit that their inventories are fair-to-

some

to

been nonexistent.

market.

They

interest

Government

repayment.

promising

On the other

r

going"

co-exist

constantly struck with instances

of class

Police

State's

with

The visitor to the

every-

There is bank borrow-

"the

at

sidies

the

question
the

In

shops and the free stalls
side by side,

This

of

i t y ' s

e r

as

In the free market-

place, both government-controlled

rate,
which entails the strict obligation

Uni-

s

v

well

as

on

prices

is engaged in.

enter-

is

ing

Co¬

lumbia

of capacity

the Free Market,
change during the
day, and wide bargaining can and

growing.

on

Eco-

at

free

to

sold

where

thing else, accountability for solvency and success is present and

nomic Growth

Soviet

business

over

week-end's

it failed to equal the level of the comparable 1951 period.
Claims for unemployment insurance benefits in the latest week

conformation

be

can

prise's corporate system. Despite
the pervasive police state control

to

ever,

Steel

aforementioned private increment,

series

of articles by Mr. May following his attendance at International Economic Confer¬
ence: in
Moscow, which he covered as a correspondent.

Commodity Price Index

business

Teletype

enter¬

not called "companies"

(yet), there is constantly increas-

SL

456

320

N.

COMPANY

Stock Exchange

Midwest

4TH

ST. LOUIS

(2)

ST.

MO.

GArfield
LD

0225
123

6

The Commercial and Financial Chronicle

(2234)

Energy

research reviews

applications of atomic energy and what Canadians are
doing in this field' in Canada. Says prospects for industrial
uses of atomic
energy are bright, though hampered by greater
stress

laid

energy

Holds

of atomic

use1

I

have

been
of

asked

tell

to

in

experience

have

in

the

atomic

field

enabled

actor has

who

research

of

and

to

which

an important
discovery. I
most wholeheartedly with
who think it was, and I be¬

agree

in

those

possible

not

previously designed piles. At the lieve most knowledgeable people
present time we are engaged in so consider it, but it is only nat¬
constructing
a
third
and
still ural that different people even of
larger reactor which we hope will the same background and experi¬
provide unique facilities for fur¬ ence will differ widely in their
ther large scale research and de¬
opinion as to the scope and range
velopment programs.
I think I of future developments.

overall

pros¬

for

pects

in¬

dustrial appli¬
cations of this
new

source

of

Of

energy.

therefore, in all modesty
experi¬
in atomic energy operations

necessity I of¬

can

say,

fer

that

we

only, my
own
specula¬

ence

have considerable

while

lack

as

the

and

future

still

knowledge that your country must

too

have accumulated in its vast bomb

tions

far

seems

obscure

for

f i r'm

any

we

extensive

that

disadvantage as
industrial thinking 4s con¬

programs,

far

the

as

prophecy
J.

C.

cerned

about

Mackenzie

offset by the circumstances which
since
1945
have * confined
and

final

industrial
lications.

We

feel

the

prospecting
stage.

we

and

ap-

still in

are

exploration

at least

be

may

partially

To prepare ourselves for a

look

experiences and contributions are
not of the same order or
magni¬
tude
we

not unacquainted with the

are

of

aspects

Canada,

as

the few

countries

of

tant deposits
sential

the

subject.

know, is

you

one

of

having impor¬
uranium, the *es-

of

•

primary

atomic

energy

material.

Canadian' association
atomic research,
moreover,

with

Ix2gan 50

at McGill Uni¬
the fundamental in¬

years ago

versity with
vestigations of Rutherford and
fioddy which led to the develop¬
ment of the
theory of radioac¬
tive decay.
Canada shared with
the United

States and the United

."Kingdom in the wartime develop¬
ment

of

atomic energy for military purposes and in 1945 brought
:.nto

operation

reactor

the

first

nuclear

atomic pile to be con¬
structed
outside
of
the
United
Gtates. This was only a

power

the

or

reactor

but

very low
shortly after-

awards

we brought into
second and much

operation

I

atomic

energy,

believe

indeed

them

but

read

can

I

great

technological

I believe

trends

we

but

forms

can

in

experts

your

most

compli-

Mackenzie before the
Meeting of the National in¬
Confereence Board, New York

Annual

dustrial

Ci'cy, May 14,. 1952.

any

a

de¬

already

are

new

and

certain broad'

the

final

major

exact

I

people,
about

first

feel

bomb

1938.

Most

knew

sure,

atomic

shima:

little

before

energy

exploded

over

the

Hiro¬

Many still believe that tliis

achievement

scientific

great

conceived

was

almost

applications,
engineering developments, design,
and

one can yet predict, but there
nothing new about that—Watt
thought his steam engine would
be useful for pumping water out

coal

that
was

mines—the

the ' first
built

raine

French

steam

claim

locomotive

by an engineer of Lor¬

for

dragging

battlefield

to the

cannon

without

horses—when

intricate

took

of

industrial production of

mass

most

time,

25

years,

amazing

vehicle,
which

few

growth

the

•

envisaged the

of

the

engine,
the
motor
aeroplane, and qll

fuhdamental
have

internal

so

applications

profoundly influ¬

enced the social and economic life
of the

world, and brought employ -

is also -true
electrical

de¬
seen

things

as

decades

search

lighting,
radio, there

power,
and

of

continuous

behind

steps

products.

that

generation has

our

communications
were

- ever

short period

a

marvelous

velopment
in such

it

but

the

the

re¬

final

and

lete."

Progress of Atomic
It

was

well

Science

50

over

years

since

ever

that

time

a

suc¬

of great scientists in

most

of the countries in the world have

been

busy

trying to unravel the

secret of the atom.

scientists

which

—

made

the

arch

building for
informed

discovery

1939 by two German

possible—was
scientific

The

bomb

a

keystone

that

half

a

scientists

of

had

a

been

century.

To

the

discovery
of fission was a
tremendously ex¬
citing discovery. For years the¬
orists had talked about the
amount of

mous

locked

in

up

atom—this

the

all

nucleus

seemed

enor¬

that

energy

was

of

quite

the
un¬

to

is

1939

our

economy,

theory

energy program,

heat

New York

Worcester

«




Portland

Albany

any

material

or

most

unreal to laymen

one

to

coal.

This

also

seemed

in 1938

before that date had
turn

matter in

quantities

then—Hahn
what

any

into
and

they

as

been

meas¬

energy—

Strassman
called

fis¬

sion.

Avenue, New York 22, PLaza 9-7887
Boston

pound of

completely converted to
there would be created the

discovered

Street, New York 4, DIgby 4-6700

Madison

V2 and there¬

x

of

and

Principal Exchanges

M

be

urable

Established 1892

25 Broad

one

=

tons

able

& Co.

interchangeable,

energy equivalent to that
obtained
by burning
a
million

no

Hayden, Stone

Einstein's
that mass

energy was created by the
destruction of mass
according to

energy

*

quantities

that

fore if

on

fed with this field, is available
upon request.

575

proposed

and energy were

could

and listing 55 companies identi-

Members

had

unlikely.

Springfield
Paris

They found that a particular
type of uranium atom—Uranium

235—if
break

the

hit
into

two

the

by
two

parts

original
tively large
was

a

neutron

major

in

the

thusiasm

thought

first

there

weighed less

the

outburst

of

whole

and

a

Einstein's

equation, equalled

little

if

any

was

thereafter the
of

In

story

energy

curtain

"of

volume

all

we

1945

our

re¬

not

are

in

engaged

military

w°n}d b® impractical- and miProfitable for us to devote any of

the

over

since

development activities

aPPilcati°ns of atomic energy. We
accepted . the proposition .that it

dropped, the

publication of scientific and popular papers which had occured in
considerable

:

,

have been limited by the fact that

did break out, the

secrecy

Canada

search and

might have been quite dif¬
But

*

r

Research* and

Development Activities

atomic

ferent.

war

be prepared for the

Canada's

broken out almost

development

exploit the present to

we

-

limited

facilities

world stopped, and little more was

our

heard

publicly

energy

until

jng bombs, as, alone, any could not
we
hope to produce in
effective

about

the first

atomic

bomb

was

quantity
this

It is well known

•

first flush

hopes

of

excitement

1939

in

too high and that diffi¬

ran

culties

that in the

now

unforeseen

that

at

field

tion in

time

S05fiei°^ fte- Slitter off

We

-

know

uranium

that

there

is

dustrial

natural

have

atom

one

140 that is naturally fis(the so-called U-235 isotope)

ongmal atom
but the

fact

is

of the

mass

turned into energy

does remain
ways

that

and

can

we

to-

obtaining in quantity fissible

materials from

astonishingly
energy.
I
suggest

which

large

get

can

we

quantities

'

.

to

you

of
—

should

we

lose sight of, the Truth that
fact of fundamental
impor-

never

the

1

#

that

cal

we

produce

can

in

practi-

fissionable

quantities

mate¬

rials every pound of which will
give off the energy or heat equiv¬
alent of over 1,000 tons of coal.

And
the
of

I say

palm of
coal
coal

oi

when

you

is
is

hold in

can

hand 1,000 tons

your

mai
that

somexning
something

mentally new and
great significance.
•

What

lunaafunda-

potentially

of

to

do with the fissionable

we

after

produce

we

it

is

story. For military purthere is one direct objective

make. gS

much

markable material

of

this

fast

as

and

as

re-

on

non-military uses of
With this position
find

we

complaint,

no

ourselves

it has

as

we

many

well aware,. aS I know most

am

0f

you

are>

programs of

they

that from the great
this country, although

primarily focused on deconsiderations, there have
Come
many
valuable
developments
that
are
of n0n-military
use;,
l am alsG equally sure there
are

fense

be

must

Vances

that

even

valuable

more

0f

ad-

in the still classified areas,

presently hidden from all

are

C£ US) but which will some

day'be

great industrial significance,
Th

tance about atomic energy in l952
is

shall I

or

way

obvious attractions,

in every

small fraction of the

targetless

which

in

only

leisurely,

more

atomic energy.

■

,

a

not

search anGi thinking about the in-

flights of rhetoric as immediate "unparalleled riches and opportunities for all.

develop-

as

was

less

say,

^av«?
such

and

to

cooperation, in
possible we
have been forced by the realities
0f
pjcture to focus our atten-

dropped in Japan.

f

,

atomjc
not

and

circumscribed

been

the

threat

might

aspects

that

remain

priority

Also

must

one

that
that

without
without

expenditures

does

and

war

security must take

romAmhPr
remember

vast

certain

developed

living under

are

the ominous threat of
tional

war

the Tact

but

we

had

by

war

have

rapidly,

more

of

Jittle

energy

na¬

high

a

always

war
war

made to

the
the

prove

the primary

energy

practicality of atomic
might not have been made
Atomic energy has

§ecad|s.

f

Continued

re¬

on

26

page

pos¬

sible and put .it into bombs at the
same

-rate.

But, if and when

per¬

5 MINUTES

manent peace comes,, the ultimate
iise
of fissile material will be in

t

FROM WALL ST.

the field of peacetime industry.
>
It is well known
today that

N. Y.'»

there

offers foremost

two

are

materials

principal

obtained

in

fissile

separated

much
in

directly

from

natural

the

uranium

by

—

arated from the non-fissile 99.3%

U-238

by

physical

methods—
gravel.- '

sand is screened from

In

reactors

on

the

other

hand

rela¬

sneaking in general terms, the fis-"

kind

sile

of

industrial

U-235

U-235

furnace.

isotope

ard in the process

of

meetings

diffusion

speaking very unscien¬
tifically the 0.7% of U-235 is sep¬
of

banquets

can

abundant U-238 atoms

more

plants

as

facilities for

different

uraniupi isotope U-235 which
be

largest Hotel

There is the original fissile

ways.

natural uranium is processed in a

the

future

of

future when it arrives.

en¬

that
than

quantity of energy
released, which, according to

possibility

and

mention of bombs, and

or

immediately

would

parts,

that

interesting to note that in

poses

practical

the formula E

discussing its potentially far-reaching ejfects

modification.

another

most

there is always the

course

additional

am

is

It

•

material

like

is the possibility of
fissile
material
from
minerals such as thorium

be as revolutionary as was fission
itself, but the essence of progress

needs

day in several

cession

there

obtaining

that

are

and

preferred

a

not obsolete. However,
perhaps it is only the time scale

of

seemed

Special Study of the atomic

1952

them

fundamental discoveries that may

even

that Becquerel in France first dis¬
covered the radioactive properties

uranium, radium and thorium,

Then

have

is

war

thing

Our

in

give

the fear

of

a

ago

vantages

itself obso-

cheap and I

was

position.

other

not

as

the case with direct and alternatcurrent in the field of. electricity both Processes will find
areas where their particular ad-

and of

afraid- that

itself

course,

My* guess is that

years-

exactly that way. The
is there all right but at the
it is

is

their enthusiastic advocates. I
think it is too early to say what
the picture will look like in 25

power

to

plu-

separated

anc* disadvantages and,^.of

caused

seem

be

can

en-

called

plutonium

and

U-238
an

°.f these- processes for obtaining
fissile material have advantages-

at

power

and. new, source ot energy in any¬

f

"war

This

fissionable

worked out

laymen, and even to ex¬
perts the release of this limitless

i

make

into

from the rest of tne material by
ordinary chemical methods. Both

the

and, that in fission not all but only

real

Atomic Energy Companies

abundant

Things don't

moment

sile

"

Seldon in 1895 patented the
prin¬ of fission in

ciple of using "an explosive engine
in a road vehicle," even
although
the gas engine had been a
reality

equipment

place in such

like

no

is

of

recall

,

appeared

abundant

converted

different atom

tonium.

.

immemorially

of

be, and
where the
applications will take us,

those

*A talk by Dr.

^

'»Gth

anyone

development.

see

what

combustion

of

many

referred

in

is:

bright

will

ix}

which

future

the
uses

answer
very

don't think

the

for

have

my

be

to

tailed way. I think we
in the early stages of

larger reactor
of unique and
outstanding design

a

Bright

have

really happened since

its amazing scientific

question, what are
for the industrial

prospects

general

"

To

those of the United
States,

as

Uses

that

if war had not

overnight and
was the result of only a few hectic
focused our activities and thoughts
years of work in the middle of' a
on research and
non-military ap¬
great war. It is true that nothing
plications.
*
like the technical endeavor with
Industrial

tirely

the economic stresses

into the future I suggest we glance
for a few moments at what has

,

Though Canadian atomic energy

may

that

cheap and
remove

war"

was

fundamental

and

such
will

in

topes

a

you

articles

:

and

is

atoms

ness and
opportunity for all." He
suggested that "the availability of

The only

announced

was

1939,

January,

produce radioiso¬

kind

the future.

speculating in

are

'
of

the

suggest

thusiasm, pictured the world "entering a period of unparalled rich-

yet

as

1952 about the

energy

of

re¬

to carry out

us

Some
many

of

I

fundamental disfirst order of im-

portance.

energy

not.

-

pertinent question is whether or
not discovery of fission in Ger¬

;

Certainly this

mentary terms.

you

Canada

atomic

of

directions

in

for doubting

but acknowledges future
"highly speculative."

us

some

This

a

cpvery'of the

Thursday, May 29, 1952

.

destroyed mon-fissile

square

light.

way

release

be

many,

how

been

the

and still is

was

would
give us

had

by

of

veiocity

predicted." Because we cannot see
the end results clearly is no cause

J

strength of private industry,
trend is

the

of

will

is field pre-eminently suited to the ingenious, competi¬

tive

multiplied

and a host of
It has always

radio
devices.

which

mass

with all funda¬ that time in the public press durmental discoveries, and certainly
ing 1939 and 1940.
I remember
most
scientists
will
agree
with ,that cne scientific
journalist writPresident Arthur Compton 'that
ing in one of your well-known
"the most important consequences national
magazines with great en-

of

progress

they
and

electron

that

been

civilian

applications.

predicted

electronic

President, The Atomic Energy Control Board, Ottawa

miliary

have

one

reveal-the

eventually

By DR. C. J. MACKENZIE*

President, Atomic Energy of Canada, Ltd.

on

of

X-rays were in¬
vented no one thought of their use
in curing cancer, nor could, any¬

Atomic

-

millions

to

When

people.

Industry's Stake in

Canadian head of atomic energy

comfort

and

ment

.

.

breaks

Still

up

for every atom

destroyed

one

of

the

.

office parties
Outstanding values-for
or

7th

small
Ave.

large

groups! Clark St. sta.
1RT subway

in hotel.

Telephone MAin 4-5000.
H0TEl

st. George
Clark St.

i

Brooklyn, N. Y.-

Bing i Bing, Inc., Management

Volume 175

Number 5120

...

The Commercial and Financial Chronicle

(2235)

speeches

Uncle Sam—Deficit Addict

They have
have

Vice-President, Utah First National Bank,

not

Salt Lake City, Utah

controls, no press,
no
publicity. They

spokesman,

no

even

whose

rule

of conduct

America.

is

Washington.

"tax, spend and elect," Mr. Adams asserts these men do not
qualify as trustees to administer, an estate of 85 million of
life

insurance

owners
and 50 million of; bank depositors.
weakening effect of New Deal-Fair Deal philosophy
will bring tragic disaster, unless
prompt action is taken to
liquidate it. Sees dollar depreciation most vital issue and

TKalr Vonrocorif

-

of

of

a

address,
MUncle Sam,- Deficit
Addict, is an
indicting one, but how well justi-

project

fied is known to you all.«

;

'

•

foreign,
our
•

Of all classes
of

citi-

our

zenrythe
Banker
most

stantly

con-

been

confronted
tne

thetic

proposed

pa-

a once

proudly

peo-:

ItQ'pVhntlA

\mrvf

o

are

They

economy.

class

of

thrifty

and

men

rep-

in¬
who,

women

built

policies.

last

and

It

funds

brows,

accounts,

in

insurance

is their money,

large

small, that is invested in in-

numerable

17

savings

up

accumulated

their

of

sweat

,,

.

business
.

..

.

,

concerns

mi

of keeping and expanding

and

ture in return

well

domestic work to

this

be

called

for

these people that represents the
®eed corn
a government of

the

eruelest

colossal fraud that has

practiced
"The

on

and

tree men. Something must
saved for these people. If they

most

been

n°t saved, all of

people.

started

was

fu-

only

ever

credulous

a

hoax

the

by

the

Not

New Deal and is being perpetuated

Mr.

Harry

Truman.

pie being jel-

eludes

lifled

of

victims

long ago I

so

in

was

at

savings bank. It
interest-payday. A woman

S-for-Spendthrift

list

Its

desk

be
are

lost,

us are

body-and-soul

standard

family,

of' living

was

.

l

'preservation

of

the

a

my
was

backbone

re-r

savings

bank

depositors, window.
She
Was
a
woman
policy ; holders, dressed in gingham, with three
everybody who has bonds, service little bashful girls at her side,
men paying premiums on Federal
After having presented her book

Orval W. Adams

?.•

purchasing

in

All of

most

have heard

us

tionship

between

rights

rela-

The spending record, of the past;
20

years

man

can

that

proof

is

two

serve

Uncle

again

Sam,

that

no

masters, and
while in the

clutches of

spendthrift^ self-styled
reformers, whose rule of conduct
for public office is just
tax, spend
and
as

elect,

longer qualify
Trustee administering the great

estate

can

no

of America.

That

consist-

-

ing

in

of

part

million bank

million

and

and

savings

of

of

of

life

insurance

millions

in

interests

of

the

against the interests of the
but it

and
own-

has not yet been de-

stroyed—its amazing vitality, the
product of free enterprise work-

ing
is

abundant natural resources,
a
parallel in history.

on

withstood

taxing

vigorous

such

an

d

spending..

condition

that

it

even

could have

onslaught

an

weakened

cannot

But

is

its

evidence;

endure

for-

Deal-Fair

J?o
Deal

v

Philosophy^ Only a prompt.
to the facts
pre-

awakening
vent

of

Tragic disaster will follow

ever.

can

the

liquidation of the great,
self-reliant, self-denying
Middle Class, in which
the last hope of a once free

thrifty,

American
rests

world.
r

Wg bankers occupy a trust

lation

to

our

less real and

official—and
in

prices

and

costs

by
and control policies.
the

its

indecent
indecent

with

future

spending

No

millions

anH
and

re¬

depositors nonethe¬
binding because un¬
must not default

we

said; "Lady, may I please'

one

this

request

can

$5,000

callous

story:

threatpn<;
threatens

nrnress

she told

and

logical to

the

same?

case

into

the

bank.

,.

„

had

come.

lme of

.

,

This

was

He

as

a

had

SWitchman,

purchased

a

told

his

me

was

life

life

States

epttitur

tUS

savines

Sp?Vnin

ing

this

lated

money

so

Issue

out

now

government

in

the

form

of

"government

of

control

and
to

been cheated

is made
a

*

great deal of the world and provide assistance for rehabilitation

out .of

by

chief

phony

politicians,
is

concern

depositors, with
and then to

to

their

bought.

"a

■

v,*

rightly
riiyMlv

their

to

-

seem,

tendency

bureaucracies have

to

to

and

grow

that

in

Continued

the

-

on

page

May 27,1952

New Issues

issue,

Tennessee Gas Transmission

The

forgotten people, the great
mjddie c}ass citizenry, the people
in

whom

needs

have

x

alerting;

divorced

gold

vital

a

and

interest,
dollars

with

from

and

redeemability
printing press

a

-

in

.(Par Value
4

those

in charge of
devotees of

press
state

,(

y

A

s

farewell
is

Congress
pederai

said^

the

the

welfare

state)

Plus accrued dividends (rom

is,

I

know.

Sometimes

tears

by

Share

-

•

»

:

;

April 1, 1952, to date of delivery

250,000 Shares Common Stock
(Par Value #5 per

these

credulous, for¬
gotten people to whom I refer? I
to

per

of
as

jost.

are

"

$100

the

_

control

spending, which

Who

Share)

per

the way out> unlegs

on

recaptures

now

Price

printing

#100

i

.

cb0red in the U. S. Treasury—and

Company

5.25% Cumulative Preferred Stock

100,000 Shares

an_

the

we

are

Price

moved

lamentations

$29.50

Share)

per

Share

of

duty to do all in our power ' politicians
concerning the sad
bring about an early awaken- {fate
some
unidentified foring to the. facts, for despite all j gotten people. Scarcely have the
that has been done to destroy free i politicians ever pointed out . exsuffrage, to buy office- with the actly who these forgotten people
our

to

loot t>f

our

control

of

their
'

To

rests

such

in. Possess

grave

concern.

constant

a

of what has been

reminder* exist They are among

us

•'

facts
me

in

my

own

happening—and I and bones in

words.

quote from the recent

our banks, owners
insurance policies, in building
and loan associations. They'corn-

pose
the g-eat middle class of
let1 America. They are not generally
remarks t pointed out as being the victims

who heads the National Industrial* real forgotten
Conference Board:
: have

men

daily remained

*An

address

every public

policy,' They

by Mr. Adams before the

Indepen^nt^ Blanker"* Assoc iatiox^'^Tnneapolis, Minn., May

19,

1952.




Stone & Webster Securities

Blyth 8C Co., Inc.

have

pressure

Propaganda.
parades

no

group.

and

and

women

make

Glore, Forgan & Co.

Harriman

Goldman, Sachs & Co.

Kidder, Peabody & Co.

Ripley 8C Co.

Incorporated

Lehman Brothers
W. C.

Smith, Barney 8C Co.

Langley 8C Co.

Union Securities Corporation

Merrill Lynch, Pierce, Fenner & Beane

inarticulate.-

organization,
They issue

They

White, Weld & Co.

Corporation

The First Boston Corporation

Now

by that great American and emi-1 of inflation. They pre not
noisy or
nent
economist,
Virgil
Jordan,; complaining. On the contrary, the

"Practically

States.

in flesh

reminder in words calculated to. of

register with the listener. I have
attempted many times to tell the'

under¬

We

hands, did they, but know it. * bankers know and have identified
bring about sqch an awaken- { them. They are not a myth. They

ihg requires
a

still

Copies of the Prospectus may he obtained from any of the
signed who are qualified to act as dealers in the respective

whose welfare they

depositors, the voting j are> and
America

Conduct
no

no
no

OO

fiery

a

per-

accumu-

a

most vital

and wi

willingly contribute
ih"+*
cost, but strange as it

man

may

us

and

offer to sell nor a solicitation of an offer to buy any of these securities. The offering
only by the Prospectus. This is published, on behalf of only such of the undersigned
as are registered dealers in securities in the respective States.
-

own

them,

The necessary functions of gcrv-

ernment benefit all of

£1

pur¬

unsuspect¬

world-wide scale, the dollar
question surges to the front as the

on

taxes,

and the next

This advertisement is neither an

the

arm

c:t

money

'

committed

cf

them¬

keep

•

prized his self-reliance. Having self-reliance, he had

control

money,

out

with

thriftv

in

perpetuate

chase the vote of these

it

nnrket

A

Se

those
to

have

whose

with

Dassbook

fipf

^

for

substance

well his having difficulty

his

becomes

from them of their hard-earned

kind of paralysis. I remem¬

ber very

has

!tep loglcally /°+1ulowsT~thf tak'nf|

At 65

story.

sav-

subconsciousness

their understanding,

„

'
him.

afflicted

became

arm

some

the

her

his

ulti¬

A large percentage of the de¬
positors in the banks of the United

kome- For a. llXlnf

^made ke^ rtalked'witt
with

wisdom

the

Depreciation- -Most Vital

Therefore, with Federal spending

duty

suffering and loss,

whence

me

a. llttle

that

depositors

68

was

will

purchasing
r

labeling it
He

-the

selves in office by returning some
of the money they take from the

so

human riehts9

are

office,

their hard-earned

government

that when pur-

assume

of

possible

not

Here is another example: A man

He

_

depositors, it will continue to be

are

it

Is

of

destroy

of

part

that

purchasing

and

out

Until

dare

chasing'power "is" destroyed"

Her husband, while in the

killed.
Dollar

without

Nothing less

I stopped

desk

t

sav¬

managers

my

being steadily
repudiated. look at your savings passbook?"
They are being repudiated as the; She knew I was an officer of the
government deliberately rots, adul- ) bank and she acceded to my reterates, and cheapens its money quest. In that book was a deposit
by trading public funds for votes of $5,000. Some little of the prinand
forcing continuous rises in cipal had been withdrawn. By
are

loan

associations, has
brutally mismanaged in the

been

ers,

50

As <he passed

her'and

depositors, of the 85

owners

policies,

ings

the

-

"These contracts have been and

number

great estate,
'

once

.

.,

our

|eficit a<kUctf

the

ings.

and

money

in this particular

one

power

hi^^rnin^^e

ance-company.

of

turned

the spell-

v,lirvvo„ ^cr^tc.
Qnvnna
human rights. WahU anyone
Would
take issue with me or you

the

.

of

teaching that there is no
thing as government money,

mately

.

stitutions.

through, an
carrying

sheeps clothing—who, If
brought under control and

not

Power Means

binders say that there is no

..

have "an

warning them against the depre-

years

.

not

obligation

an

program
the
depositors

to

dations

.

putting

•

bankers,

as

is

banks,
such

Loss of Human Rights

came

we,

time

this abnormal,

initiate and follow

down

old, .a bachelor. He had $10into life insurance, and all present and for the
purpose
of
having six
000 saved. His accumulations were
their; prospective pensioners.
All hold r months? interest credited to her
»•
destroyer
of contracts with the government as:
account, she with her little girls,
owned
valuable inherited in-- a borrower, a banker, or an insurrmade her wav to the front door.f
J.;:f
earnings, lie ownea
>rr'

-

confidence
their

and

—

betrayed

'"r

.

this

educational

the

.

moved

"

at

wolves in

Lost Purchasing

also

.

humanitarian,

additional duty and
to

life; insurance

theiri

—

self-

Whin

.

are

world

world

dollars.

not

n

dollars

This

Education,
hospitalization,
culture,' self-rei
i»
'
+
liance, were interwoven m these

power

thei

over

Human

normal world. In

a

of- this money.

power

body-and-soul

blood brothers.

should

on

this

me

human rights

accumulated

i

and

power. The
of this little

dependent

in

with

argue
no

reliant Americans'?

inflation

money

lose^ its purchasing

human

presented her passbook at the savings

in-

through

were

up

was

Nobody

by these independent

years

her three littTe girls. Imagine her

if

He

had any money.

anyone

money

as

nowcr

lie wouhl not

public charge.
fellow.

there

bound

nlnr
possible.-Her earning ability, plus
$5,000, was all in the world
she had to' provide for herself and

a^e secunty. It is the savings of

can

Would

the

predicament

earning

unassuming

that

conserve

much of her savings deposit

as

his

knew that he

had

woman

when

a

an

principal, as
the-mterest, and was doing

as

some

and saved in the hope of provid-

welfare and

for votes

days

-lid be lost to him
become

in school. The others

was

younger. .The
drawn'some of the
were

themselves with adequate old-

a means

crises

girls.

u

'throughout the»land. They nave
Practiced self-denial, scrimped

inde-i by

pendent

the

have

by

the

F V>

emergencies
nas
been designed to promote a
process of continuous inflation as

of

years

-spec-

lacle of

from

adopted

in

un¬

by rigid economies, by self-denial,

or

or

government

.the

vestors, the

domestic

program,

has' political power.
The
force- protection promised

fully and

with

or

blundering

resent

Favors restoration of gold standard.

my

the

are

the victims and bear the brunt of

spending policy is destroying great middle
class, while loss of dollar's purchasing power is destroying
human rights.
Advocates aggressive action by bankers to

subject

lobby; in

no

citizenship; truly they

our

little

six; she

of

They represent the yery backbone

asserts government

The

They

three

unofficial

known,
defenseless savings depositors. Their number is legion,

Warns

protect depositors' dollar.

They have

M?
of his

mother

This fatherless family lived in a
rented home. One of the girls was

bankers

the

insurance policy in the amount of

defenders

no

their

us,

custodians,

Attacking self-styled reformers,

They

no

issue

They

By ORVAL W. ADAMS*
Executive

denunciations.

or

7

Paine, Webber, Jackson & Curtis

30

8

The Commercial and Financial Chronicle

(2236)

Co.—Memorandum—Pacific Northwest

States Power

Mountain

Dealer-Broker Investment

Co.—Circular—Stanley Heller & Co., 30 Pine
Street, New York 5, N. Y.
New England Lime Company — Analysis—Dayton Haigney &
Co., Inc., 75 Federal Street, Boston 10, Mass.

National

Recommendations & Literature
understood that the firms mentioned

It is

send interested parties the

to

will he

Supply

pleased

Street, Milwaukee, Wis.

Penn-Dixie Cement Corporation

following literature:

Companies—Brochure—Hayden, Stone & Co.,
Street, New York 4, N. Y.

25 Broad
Canada's

330
1

Gold

Bay

Financial
Bank

1

14, Calif.

Gas—Report

210 West Seventh
*

•*

able is

Street, Los Angeles 14, Calif.

memorandum

a

on

Gas—Analysis—F. P.
Street, New York 5, N. Y.

Ristine

&

1

•

■

.

'

„

U.

Averages and the 35 over-the-counter industrial stocks
Quotation Bureau Averages, both as to
yield and market performance over a 13-year periodNational
Quotation Bureau, Inc., - 46 Front /.Street, ; New
York 4, New York. ',?,■-V,"-;

the

Cement

?

Nordeman

&

Co.,

60

Co.

of

California—Memorandum—Schwabacher

Gas

Pipe

Line

■.

Company—Analysis—

S.

.

.

M.

.

DETROIT; Mich.

Name Now Barret,

*

Fitch & North

;

KANSAS

change in firm

Composite opinion of Business Survey/Committee of National

name

from

Bar¬

Fitch &

Co., Inc., to Barret;
North & Co., investment

Fitch,

.Association of

Purchasing Agents reports belated orders andv|^:! hankers and brokers, and the -re-j
production pickup in some lines, has been /overbalanced by su^^.^ovah< Of. .their ofHees-fo new
j
i«
--Ki
iv
J
t;ground floor space.at 1006 Balti: - declines. .Inventory liquidation continuing.
^
more Avenue.
The firm was pre-

.

;

CITY,
Mo. — An¬
being made of the

is

nouncement

ret,

K "'*■/■

i

Aetna Securities

—

>

/

—

S.

Business Orders Continue Lower

v

Chronicle) '

Financial

Donald B.*
Fisher has become associated with

Hegarty- &
Associates, Inc., 52 Broadway, New York 4, N. Y.
' ' '
' (C'
Petroleums Ltd.— Memorandum

The

Stock Exchange. Mr. Fisher was
formerly manager of the trading
department for Carr & Company:

'

,

Corporation—Brochure—D.

to

■Baker,
Simonds
&
Co.,
Buhl
Building, members of the Detroit

Drill—Data—Raymond & Co.; 148 State Street,
9, Mass. ,
'

Vitamin

(Special

1

'

B. Fisher

.Don

,

I

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

Treasury Financing Prospects, 1952—Brochure—J. G. White &

Company, Inc., 37 Wall Street, New York 5, N. Y.\

9,-

Twist

Wilrich

used in the National

Market—Quotations of major stocks—Nomura Securities Co., Ltd., 1-1 Kabuto-cho, Nihonbashi, Chuo-ku, Tokyo,
Japan.
•••-• *
;
;
-

Oil

Boston

•

Jones

(

of

...

.

Tokyo

Inc.—Analysisr-Bruns,

Illinois; Natural

Union

parison between the listed industrial stocks used in the Dow-

v

review

Hill, Richards & Co., 621 South Spring Street, Los Angeles
14, Calif.
;/;/
v',; V.;7 ' " ■
'

of 17 New York

Over-the-Counter Index—Booklet showing an up-to-date com;

and

10 Post Office Square, Boston

Co.,

Co., 600 Montgomery Street, San Francisco 4, Calif.

Texas

i

City Bank Stocks—Laird, Bissell & Meeds, 120 Broadway,
York 5, N. Y.'

:

25

Street, New York 4, N. Y.

Standard

New

f

Co.,

r "

'

Mills,

Beaver

15 Broad

Company,

&

•'

Mass.

Bobbins

-

r

New York City Bank Stocks—Ten-year survey

*

Co.—Analysis

Industry—Lerner &

Also avail-

Tejon Ranch.

Natural

Cement

Riverside

the industry—Dempsey-Tegeler & Co.,

on

&

,

Investment Guide—List of issues appearing interesting—Sutro
Bros. & Co., 120 Broadway, New York 5, N. Y.
Natural

Company—Bulletin—Hirsch

Street, New York 4, N. Y.

Broad

Puget Sound Power & Light Co.—Analysis—Ira Haupt & Co.,
Ill Broadway, New York 6, N. Y.

Survey—Bulletin—Stern, Frank, Meyer & Fox, Union

Building, Los Angeles

,

Company—Bulletin—Scherck, Rich-

Power

Electric

Philadelphia

Co.,

&

Producers—Bulletin—Ross, Knowles
Street, Toronto 1, Ont., Canada.

;

.

,

Eastman, Dillon

—

Company, Landreth Building, St. Louis 2, Mo.

ter

Atomic Energy

,

.

Analysis

—

Co., 15 Broad Street, New York 5, N. Y.

&

Petroleum Heat &

[-

Baker, Simonds & Co.

Company—Analysis—Loewi & Co., 225 East

Paragon Electric
Mason

Thursday, May 29, 1952

.

Donald B. Fisher With

Wash.

Co., Exchange Building, Seattle 4,

.

.

.

-

j*

•

'J

•'

.

~

^

*

*

■

' /;

;,

*.

.

u

-

?

Abbott

-

,

J

—

Memorandum

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

>

:

Laboratories

randum

Parke, Davis & .Co.

-on

—

Smith, Barney & Co.,

Also available is

*
:

.'/According to a composite opin- rial - prices will be down as; - we
^
,.ion of purchasing agents who com- move farther into at buyers' mar- ; oi luu^ cainmore Avenue,
ine
/prise ;;-the' National Association of vket./ Commenting;on the possible;.new*quarters will provide greatly;

a memo-

.^i?. ^

"

American Chain &

Cable—Memorandum—Auchincloss, Parker I
Redpath, 52 Wall Street, New York 5, N. Y. 'Also available v

&

*

are

memoranda

on

'

Purchasirig. Agents Business SurT> increase in steel labor costs, whJch
vey
Commit-/.
" ■
J
'*
•
could set a pattern for other comtee, whose;'
modities, .most purchasing execu-;
.

National Gypsum and Technicolor, Inc.
■

•

"

American
60

Hardware

Corporation—Analysis—H. Hentz & Co.,
Street, New York 4, N.' Y." Also available is an

Beaver

-analysis of Buda Company.
American

Research

&

:

Chairman is

;;

Swanton,

t

14

Erie

Wall

memoranda
St.

on

Louis-San

Chesapeake

Co.,

Union

Christiana

Securities

&

&

Rio

Co. —New

Grande

Cleveland

bulletin

Western

14,

Ohio.

on

—

Laird,

Bissell

135
a

South La

bulletin

General

Given

on

Precision

Products

South

Memorandum

—

&

Co.

Corporation—Analysis—Kidder,
Oils

&

39 South La

453

Peabody

&

some

lines, but

between

gap

Co.,

problem

the

cloth

of

is

many

indicates.
are more

that

manufac■

Inventory
reductions
prevalent, 50% reporting

trend.

The

number

ployees

is off iagain and
working time. is noted/

of

overtime

and

-

>

.

-"r.'v

to
,

the

low

mouth"

to

side

of

a

"hand-to\

»

taking
future, are

men,

of
a

the
com-

through
they believe

quarter;

cent;er

dustrial

brake

on

.

investment banking
writing
.

an

and price pattern that may

The

cates

NAPA

May

that;we

are

justment period.
quotations
rials

on

under,

or

of

with

the

accent

is

mu•

'

brokerage
stocks.
of

,

of

The

the

.

listed
firm

Midwest'

and
is

a

Stock

h

on

Established

usual sPrin^ industrial pickup did
not develop.
The
purchasing
agents;.^who^ iforecast

/a

v*

.

The

cautious view of

^an extremely
future coverage:

Cache Adds

IK.K

;

Staff

to

(Special to the financial chronicle)

;

that

the

York"" 'Stock

New

„

York
York.,

l-

is with Bache

c

A

Chicago
r'

«■

Board

Orleans

RALEIGH, N. C.—S. H. Gregg,
Kirchofer

&

Arnold

J

of

Inc.

And

Cotton

Trade

other

Exchange

Exchanges

-

u

N. Y^. Cotton

(Special to the financial chronicle)

general trend of industrial matef; Insurance Building.

Exchange
.Exchange

Exchange,

"

New

With fwirchoter Arnold
-■

Exchange'

Curb
Cotton

„

GREi/NSBORO. N.. C.—Richard

v

1'

Members
■

Commodity

indi-

mate-

'**■/'
-New"

'

New

price adr:
the

.

.

18S6

H. Hentz & Co.

sluggish

tod quarter take

The predominant! Jr. has been added to the staff of

opinion

the

member

"hand-to-mouth" to 60 days.

;• c. :McElroy,-Jrr

35% report lower

some

they buy.

purchasing

a

of

„nm,

^

unlisted

j, Co., 10ft West Market Street-

Survey
in

distribution

and

,

and

Buying Policy

and
effec-^

Commodity Prices;

.

^

.

and broker-

business including the under-

age

culture and outdoor/work are absorbing some nonskilled labor,

inflationary

any

Kansas

T e comPany does a complete

managements to increase

capacity;
as

in

Clay

de-

■

availability;

.competition will act
tive

short

a

gradual' decline

third

that

Associated Development & Research

New York 6. N. Y.

production

and

Manhattan,

Lawrence,

..

result from the steel situation.

Security Dealers Association

orders,

shorter

90-day range.

the

of

wage

Troster, Singer & Co.

of

representatives

has

company

work

clines, and the reluctance of in-

em-

•

Empire State Oil




reduce

Buying
The conservative perfley of
policy, in ;Iine nvith these condi- range 1 purchasing s commitments.
tions, is very conservative;/much'^ill prevails^ 96% are at 90f^days?

the
on

cur-

- •

tinuing

Trinity

Employment
Only 9% report additions to
payrolls, while 24% report separations or layoffs. The tendency
i

to

The

T]?e ^rm. ,are»
y1.ce"Fresident

anc* Manager, Municipal DepartGeorge Hedrick (Lawrence,
£ a n s a s) Vice-President and
Eastern
Kansas representative,
and Rosemary C. Purse, Secretary,
a n d Assistant Treasurer. The

,

„

many

Treasurer.

and

r,°^lceTrs,
^oseP/[
S

policy of inventory liquidation
followed for the past six months.

in

two.

the

opinion that there will be

Y.

as

for

has been in the securities

President

prices are down in stocks of finished goods are the
May as-h buyers' market spreads reported causes.
Highly skilled
to other commodities, the report workers are still in demand. Agri-

view

N.

schedules,
books> and the indi_
the price trend will
continue down, all influence the

Additional

17

Chi-

and

"

Sprague Electric /

production

that

Lack

demand

turers.

& Associates,
Also available

Pertinent information

a

orders

Again this month,

Purchasing

74

been

City

Following Mr. Barret's death, Mr.
F!tch became President of Barret,
Fitch & Co. Mr. North has been
*he securities business since
and holds the offices of Vice-

of

quarter

Qrder

cation

Kansas

'died..on May 15, 1951. Mr.

to

necessary

third

a

shorter weeks continues in May.

the

rent

Company—Bulletin—Gartley

Members:

in

ness

business in Kansas City since 1924.

Cutting the production pattern to

Ltd.—Memorandum—Leason & Co.,
Street, Chicago 3, 111. Also available are

Inc., 68 William Street, New York 5, N. Y.
are
bulletins on Robertshaw-Fulton Controls
Co.
cago and Southern Air
Lines, Inc.

.

has

There

are.

thi«?

renort?

fit

on Husky Oil &
Refining Ltd., Muntz TV, Inc.,
Peace River Natural Gas
Co., Southern Production Co., Temco Aircraft Corp. and
Toreador Royalty Corp.

Available

50%

the

to

get

lower

production in

sizable

a

memoranda

Harshaw Chemical

to

declining

c
♦
Swantoo

March, production has declined in
an
attempt to meet the lowering
order position, but there is still

Minerals

Salle

back

it has been far outbalanced by the

Street, New York 5, N. Y.

Harman

r
C.

belated seasonal pickup in

Co.—Memorandum—Dunscombe
Broadway, New York 6, N. Y.

Wall

a
k
♦
Robert

declin-

declines.

-

comparable picture.
Availability, shortening lead time,

continuance

and

Fewel

May

months.

Survev

condition, and it is

,

Spring Street, Los Angeles 13, Calif.

Oil

1949

eral

^

Co., Ill Broad¬

Goldfield Consolidated Mines
& Co., Ill
Gulf

go

ing business trend of the past sev-

a

Equipment Corporation—Analysis—Herbert
Street, New York 5, N. Y.
—

stries,

u

of the

&

Chicago—Bulletin—F. S. Moseley & Co.,
Street, Chicago 3, 111. Also available is
Manufacturing Company.

Corp.

d

there has been

E. Stern & Co., 30 Pine

Gladden

;

Mav

n

a

Bingham Herbrand Corp.

Salle

/Inventories

•

Another sharp decline of Indus-'y®ars>
trial inventories is shown in the Fitch

ven,

&

Also available is

Electric Bond & Share—Review—Ira
Haupt &
way, New York 6, N. Y.
First National Bank of

increase.Frank W. North, all of whom

J

Inc., New Ha¬
C o n"n.,

Also

Railroad—Analysis—Cohu

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

!"

during

Building,

Meeds, 120 Broadway, New York 5, N. Y.
Denver

■

will

competition already showing^■/, widely known in the investment
in many markets. :
P , t banking circles. Mr. Barret, who;
- L
I had been in the securities busi-

vision of Olin

Russell

suggested portfolio for liberal dividend income.

a

t

Arms

Company, Di¬

Railway Co.

Inc.—Discussion—Gottron,

Commerce

available is

up

I

Francisco

Industries,

peating

York

the

y ;

chester Re¬

& Co.,
5, N. Y.
Also available are
Diana Stores Corp., Falstaff Brewing Corp.,
New

-

"

®arref» Fitch & Co., Inc. was;

•

the^opinion that ad- ^formed in January; 1946, by Johrtv
capacity and supply, with,
Barret, Howard H. Fitch, and'

|" decreasing demand,

chases, Win¬

Co.—Memorandum—Shearson/.Hammill

Street,

Di-':'

rector of Pur¬

tloninS-

express

V ditional

;

'

-

Development

Corp.—Bulletin—May &
Gannon, Inc., 161 Devonshire Street, Boston 10, Mass.

Bucyrus

r£ tives

;

■; R o b e r t: C.

space and air condi-

'Jllcr.ea^-

Associates,,

Exchange Bldg.

NEW YORK 4, N. Y.
CHICAGO

DETROIT

GENEVA,

PITTSBURGH

SWITZERLAND

'

Number 5120

Volume 175

.

.

.

The Commercial and Financial Chronicle

(2237)

securing

Driving Force of Postwar

which
in

Business Boom

Declining

of

driving force since end of World War II, holds serious
was prevented by such sustaining factors as
government defense spending and production in heavy goods sector.
Says seme strength may be imparted to economy by commer-

driving
~

the

"

of

trend

rl

p

clearly indicates that
has lost much of the
force that characterized

Defense

and

c.es

production

mains

.

e n

.

•

World War II. \

This condition
first

in

crop

crops

International

-

been

under

over

still

.materialize,

some

decline /in 7 agricultural

in

a

be

may

combinanot

likely

materials

raw

downward

year,

appraisal

have

be frozen into

pressure

our economy,
Except for the possible lapse in the
excess profits tax, substantial tax

and this trend is

of

the

More competitive con-

profit margins, especially in
of the high cost7 of doing
business, much of which seems to

progress.

This

relief

business

to

corporations

is

not

John

a

C.

Wright

(Special to The Financial Ch.ionicle)

outlook is based upon the assump-

of

^

—

^

bring

through the

1952

.

.

James

12

months, and the support to the
economy from this source is likely

when

to

,

be

confined to

certain

'

In

^Summary J

-

•rt

ii

.

Company. In the past he

•

.Hague- Joins
K

<

.

T^°t

Special,,^* The Financial Chronicle).

;

LOS

therefore, and albearing in. mind the possi-,

summary,

ways

"aA.

i

.

;

r

r

and

,

stahtially lower than in the past;

'

a

the, military

post-Korean

view

'

year ago,

experienced

and

.

h a t

e w

.than

as we

postwar

upon

anticipated,

remore peaceful world is
"likely to-probably- strengthen,significantly-the Rdwn-:
.through most of, 1953, the rate of ward forces in the
economy,increase is expected to be subv.,
J v.; C;;,
*

majnder

'noticeable

more

the

ditions will make further inroads

good

commodities

spending, which remajor factors in

tinue to increase

•

became

;s o m

predominantly sellers'
In the absence of boom

conditions, such

*

f

o

,

margins, have been maintained and raised by capacity op-

erations in

strong likelihood in view of the
DETROIT, Mich.
John C.
large Treasury outlays, the huge Wright has become associated
nor
a
budget deficits in prospect, and with Kenower, MacArthur & Co.,
spread! of military action.
An- the many political pressures to Ford Building, members of the
tional tension has been reflected in
other wave of, war scares would.'
8}ve foremost tax relief do indi-- Detroit and Midwest Stock Exa
"stretching out" of the defense- in all probability bring a resur-: viduals. To an extent not gener-.
changes. Mr. Wright was formerly
program; in addition, outlays have gence of consumer
spending; busi-: alty -realized, ..our tax structure with Stoetzer, Faulkner & Co. and
lagged
behind
scheduled
rates.; ,ness
buying,^ and '- price^boosts, has operated to socialize American priori thereto was .manager of the
While such expenditures will con-\ while a
turn in the-direction of a " business enterprise.
«
■
bond vdepartment for
&
Keane

>

the 7

d

the

economic outlook, is one of tion that world
affairs will
the most difficult to appraise and
neither
a
"peace drive"
vforecast. (■' The easing of interna-'

period 'since
the

profit

prices will ob-

by

Kenower, MacArtfair

on

to persist.

further
\

the

.'thr oughout
most .of

under

increases

be; affected

John G. Wrighl Joins

years,

squeeze

periods, this favorable
tion of circumstances is

,

of the

one

ten

economic

its, which despite the

some

.

readjust
environ-

prospects; if the present, prospects

Defense Spending

today

economy

to

than

environment
has
been favorable to corporate
prof-

observers

prices,

more

markets.

for

our

for

need

competitive

For

for

tory year in terms of income and production.

tion

the

may

mixed. The current round

wage

viausjy

public works projects which had to be
earlier because of material shortages.
Sees mixed
outlook for prices and predicts 1952 is likely to be a satisfac-

*

outlook

more

a

ment.

while agricultural

•

curtailed

business situa-

to

will probably
further upward impetus :to the industrial price level,

*

cial construction and

review of the

spending
some

as

tions, faces the

increase

conditions and assumptions,

•impart

recession

A

the

new

others,

-

appears

-

its

^

that

local

large

as

The
these
-

New York banker, contending our economy has lost much of

and

of

many

believe.

By ROY L. REIERSON*

.

state

approval

and

suggest

not be

■

Vice-President, Bankers Trust Co., New York City

-

public

borrowings,

.

ANGELES,

.

partner

m

was

a

Wright, Martin & Co.

CALAf,AL - DfjiltfAVUUiva
OCIilfiTGIla'111011168 if 110 \*

Calif.—James-

■■

■

■■■

*.

■■

Hague has become associated,
To Nashville Firm
with Hannaford & Talbot of San
ST. LOUIS, Mo.—Scherck, RichFrancisco. Mr. Hague was for-;
Fourth Qtr^t
for ^ years with Adams-, ^embers of the Midwest sS*
fastnow . Company and prior ^mbers oL the Midwest Stock
thereto conducted his own invest- installation nave .announced ,tne
flange, of
*.

specific

bility of surprise developments im
situation
in;.,
industries, such as electronics, air-' the crucial but unpredictable inKorea became
craft, and the like. Furthermore,: ternational/arena, 1952 is
likely
Roy L. Reierson
stabilized and
the-economy generally feels the-to be a satisfactory year in termsthe threat of a
»S
impact of an increase in defense of aggregate income,
production,general world war appeared to spending several months in ad- and
a
direct wire to
economic activity.
Gross na-; ment business in Los Angeles,
diminish. The improvement in the vance
Clark, Landstreet & Kirkpatrick,
of the actual
outlays, by tional product may be modestly
' .-•»
, ,
international outlook-was rapidly,,
Inc. in Nashville.
^
7
7
Way of higher new orders and in-! higher fthan -in
1951—perhaps by,
;*r Mng Merritt Adds
reflected in some
The firm has other-direct wires
rather^substan-,,creased forward buying. Conse--5%>or so; while industrial produc-L
(Speclal toTHEFlNANCIALCHRONTCLE)
fn nniia«
Antmrin
tiaLdeclines in commodity
prices, quently, the'defense. program is tion for the year as a whole-is not;
LOS ANGELES, Calif.—Ray- 4°
especially, in basic raw materials, ^probably already close to the point
likely ' ;tq average, above recent mond W, Treimer has joined the
™ kS Pitv ' s
a
general slackening oL.business,-of exercising ; its ^ greatest influ- ^levels.:
However, as we move fur- staff of King Merritt & Co., Inc.,
orders and consumer buying, some enee
.^pon demands for materials.:ther: into the future, we may exChamber of Commerce Building
corrections, in
A. M. Kidder Admits
■inventory:positions,l.^anc|.;-<)utpiit.'v-,--t.'.r",'.
"rv..4y ; '-perience; increasing difficulties-' in
n
...
n
.
n
„
fr
•and the spread-of a generally more
,.
+L
At the same
time
niant
and maintaining peak levels of output
maintalning Peak
oi
v Redfield *vaas to Staff
iveurieia Adds la jw
A, M. Kidder * & Co., ' 1 Wall
cautious attitude throughout, the
\
j. and of economic activity.
And this.:.
„ (Special to The Financial Chronicle*
Street, New York City, members
equipment outlays:,;ai>pear to -be;
business community. These:
.
George M.- of the New York Stock Exchange,
prevail at-iheir~
11
encies have continued to p.,, cyclical peaks, and it is
,1Ca~; ^
^
c. ri-Hiffipiiit
to
vidiiaii-r**" a * further
a
further'*ytiehs..{. *-• ' ''
*
Minot has joined the staff of Red- will admit Josephine P. Bay to
difficult
to
visualize
i Business^iunder such condi- field & Co., 87 South Euclid Ave. limited partnership on.June 1.
P
r
y .
growth in the rate of
.

a

-

,.

'

9

pS

-

.

t

e^tehtf-

-

-

■_,

,

anf

,

—

...

,.

,

economic activity. And this

,

PASADENA, S!

...,

-

-

•

-

.

^

spending in

*

they did in^reaction
of the
currently reduced •
outburst, / level of corporate profits and in
developments might, well view, also, ofk the fact that our;
precipitated a troublesome industrial capacity has about dou-

Coming
to

as

.

strong inflationary

a

these

.

have

situation

in

our

had it ^bled- since 1939 and has increased
produc- by -about 50% since 1945. Residenactivity-have tial-building is expected to

economy

not been for the fact that

tidn

business

and

Thlyannouncement is ntilher an offer to sell

•;
*

>

The

nor a

solicitation of

an

offer to buy

any

of these securities.

offering is made only by the Prospectus

r

„

f

j

have;
1952. but ^

;

**•

NEW ISSUE

been supported by a number of another good year in
important sustaining factors, par- ^the?.signs indicate that- the gen- ;
ticularly in ;the heavy .goods sec- eral level of activity will, at best,;
tor of the economy. The most im- not ^differ
very much from 1951. *
portant of these supports,
.. Consumer spending, which was
odds, was
goyernmenty>sp^^g.:ta..^ynamj-c-..ejepient in; the business
for defense, which Tncreased .at
situation after the outbreak of the
am. annual .rate of $20 hillionpna
-Korean War, is not likely to spark 1
more. Furthermore,
untiLrecepw^Yan0ther business, upturn) in the '

100,009 Shares

by^.all.

Preferred Stock, 5%, Series B

.

the-

general expectation was 'for.p months ahead. In view

continual

rise

in

of the cur-

defense

*;

outlaysvr€,nj,
0£ ;Wage increases, it
ifor; growing shortages. ^ThJS;, js ^reasonable
to expect1 some rise

•

-outlook, in turn, exercised, an Jim- ^ consumer
buying; 1 but unless
portant ^influence upon .pusiness .the international situation should

*

and

-

kit

>!'('-f.''-t v..-/;

.

Yided

another

business

to

important support

activity.

As

a

ahead

the

to

reasonably
certain that defense spending, together with private investment
and
public works projects, will
continue to support industrial

ac-

tivity, especially the heavy industries. However, present signs inare

the

supporting factors

of somewhat

portions

than

more

they

modest pro-

were

of materials led to

ages

a

year

ago.

son

at

the

an

32nd

address by Mr. ReierAnnua!

Convention

Controllers' Congress

of

of the National
Association, New York
City, May 26, 1952.
the

Retail

Dry Goods




The iPrmpectus.jnay he.obtained4n< any State from only such of
the

undersigned

as .rtnay

legally distribute

it

in

such

State:

may*

W. C. Langiey & Co.

BIyth & Co., Inc.

The First Boston

some cur-

Corporation

tailments in the latter part of 1950 '

With the easing of
supplies, some increase in cornmercial building activity is not
unlikely. Also, there are obvious
large deficiencies in our public
plant and equipment, such as
roads,

schools, hospitals and the
The making up of these de¬
ficiencies will undoubtedly be an

Glore, Forgan & Co.

;

Hemphill, Noyes, Graham, Parsons & Co.

Kidder, Peabody & Co.

Carl M. Loeb, Rhoades

& Co.
%

Salomon Bros. & Hutzler

Shields & Company

W. E. Hutton & Co,

like.

important factor in

the

economy

Paine, Webber, Jackson & Curtis

provide

port

to

many
+upr«

^

the

a

stimulus and

economy for a great
years
to
COme;
however,

„rp

vpr.,

rpai

Coffin & Burr

sup-

the

1 i™i+Q+jr.r,c

in

®

very real limitations in

form

of

higher tax burdens,

A. C. Allyn

and Company

Incorporated

for some time ahead. The opinion
has been advanced that this area
rnay

♦Summary of

in

-

strength

second and in 1951.

half of 1952. it appears

dicate that

: Public Works

.

be imparted to the economy by
commercial construction and pub- '
nc .works projects, where short-

,

-

•;

-

.

gome .additional

production has been well maintained,-and despite some cutbacks
in individual lines, the aggregate
index has fluctuated.

.

;

result,

for the past 12 months, industrial

Looking

«

(ParValu«$100 Per Share)

"

policies ^aim-helpe^^
more xt^ke ar turn for -the "
prevent the correction of- indrvid.worse, the rise is. likely to be mod- "
rial inventory positions from spi- .es^
if this asumption proves valid, '
raling into a ; general .wave Pf.vbusiness inventories -will prove
liquidation.At ■ the ^same time, .ample in
the.'laggregate, and; ex- J
business spending on plant
-ah^ycept for individual lines,-no large
equipment moved' to new Peak:;,business
buying* is anticipated.^
levels; * such outlays v increased by
•
•r
about $5^ billion in 1951 and pro-* v Commercial Construction and
inventory

,

•

l

Incorporated

May 29, 1952

Tucker, Anthony & Co.

10

The Commercial and Financial Chronicle

(2238)

expected,

As would naturally be

development of hydroelectric

the

Squeeze of Big Government
k

On Northwest Electric Power
By FRANK McLAUGHLIN *

*

projects in this state was initially
pioneered by private capital, but
around the turn of the 20th century, the cities of Seattle and Tacoma ventured into the utilization
of

President, Puget Sound Power & Light Company

water

to produce elec¬

power

So, public • power came
being. Ever since, its expan¬
sion has been nurtured by "Big"
tricity.

utility executive calls attention to creation of a
huge Federal electric power empire in Pacific Northwest. Says
private utilities in region have been stopped in their tracks and,

with every conceiv¬
public agency now

-government
kind

able

without getting an adequate power

supply, the economy of the
largely at the mercy of Big Government. Holds
people of Pacific Northwest will pay a high price for loss of

in the

of

J

act.
*

**

*

control of their

that

In

own resources.

;

...

now

•

of the

residents

many

'

/

region—because of their antece¬
an affinity for co-ops,
and the like—the tirades against

dents—have

performance of the private
Then along came World

ent

is pres¬

and the

Federal
basic

Federal

the

implications
consequences of a virtual
monopoly of this region's

What

(2)

the
1951-52 peakload
periods,
during

hydro

"Big" government for its
existence. This is a sobering

on

very

resource

s

of

power

Northwest

hydro genera¬
tion of all the

possesses

hydroelectric

the

greatest
in

resources

the

United States—the

util¬

private

Frank McLaughlin

the

provides

ized at the outset that the Pacific

"total

in

ities and pub1 i c
agencies

potential being
30,000,000 kilowatts,

of

excess

of which around 25% has been or

comprising the western group of

is

the Northwest Power Pool.

gion has presently no other com¬
parable energy base, such as nat¬

Many

will

find

it

difficult

to

being developed.

now

reconcile that this great frontier,
hewn from a wilderness by resolute

available

nightly," dated May 22, 1952.

economy

ural

oil,

The

re¬

coal, which is
competitive cost
pioneers, should now be depend- basis. An adequate, dependable,
low-cost hydroelectric power base
•Extracts
from
Article
by Mr. Mc¬
is therefore vital to the region's
Laughlin in the "Public Utilities Fort¬
gas,

on

,

"hottest"

the

imaginable,

war

service

This advertisement

is

these securities

not,

and is under

for sale

or a

or

a

and way of life.

circumstances to be construed

no

solicitation of

any

offer to buy

any

Bonneville-Grand

ket for

Coulee

but
also
providing
a
springboard from which the Fed¬
eral planners pushed the govern¬

.

.

as,

an

offer of

noted

be

trie service.

"head

ment

heels"

over

into

the

business.

power

While

the

approach

original

with regard to multipurpose proj¬
ects in this region was one
of

being

power

dental

more

related

or

less inci¬
irrigation,

or

.

der

■.

v'.

$55,000,000

been

to

for

the

for

*

*

*

The Federal Government is to¬

day in the driver's seat

as

result

a

of

assumption of control of the re¬
gion's basic resource—hydroelec¬
tric

This

power.

situation

about because of
bia

came

the Colum¬

(a)

basin's

huge hydroelectric
potential; (b) power devel¬
opment being tied in with and

power

related

national

eral

defense,

power

the dominant feature.

came

be¬
The

in the region.

The
demands for electric power sky¬
rocketed—and this brought forth
located

were

more

and

,

which

Grand

at

neville

was

.-.f

also

tool

region.

control, and navigation, un¬
the impetus of requirements

flood

more

Federal

power

anticipated to provide
4,000,000 additional
Up to the time that the huge- kilowatts by the late '50s. Con¬
Federal projects on the Columbia,
gress has also authorized 12 more
were

in the

■

.

battle¬

has

effective

an

to irrigation, flood con¬
navigation, and other Fed¬
functions, embracing a wide
geographical area and with the

trol,

Federal

Government as the only
entity with the authority and,re¬
adequate to develop huge

sources

multipurpose

projects;

(c)

wars,

and
the
threat
of
war,
which
prompted the location in the re¬

gion of large power-consuming in¬
dustries, thus establishing a sub¬
stantial

industrial

base

and

con¬

sequent

greatly increased power
demands; and (d) the low power

rates of the Federal Government's

Columbia river system.

It is no secret that the Federal
people—who are beneficiaries of suming
industries
substantially
the private
enterprise system — changed the economy of the re¬ Government's ambition is not only
had not forsaken their heritage;
a monopoly of
power production,
gion, giving it an industrial base
for a seat on the public powerbut control of end use as well.
which it did not have prior to the
band wagon. Puget, long confined
That this is not simply a pipe
early '40s. Because of this, and
dream of a beleaguered private
to the "torture chamber," is un¬
other factors, the demand for kilo¬
der death sentence today because,
watts
kept on climbing subse¬ utility official, whose company is
over
the years, it has been sold
quent to World War II. The Ko¬ being victimized, is evident from
down the river by those who gavethe
following
quotations
from
rean war and the present national
their
statements made by C. A. Erdahl,
patronage and support to defense program
further accel¬
public agencies, or refused to vig¬ erated the expansion of the Fed¬ commissioner of public utilities of
orously fight to preserve free en¬ eral Government's generation and the city of Tacoma (municipal
terprise. After all, it's the peo¬ transmission facilities in order to plant) and chairman of the Pacific
ple who make the decisions and supply
the
greatly
increased Northwest Ppwer Conference (in¬
write the ticket as to the kind ofcludes representation from all pri¬
power needs.
The government at
utility which furnishes their elec-» present has under way projects vate and public uitilities com¬

late

Coulee

brought

'30s,

and

eral

the

Government

being

production

power

'
of

entrance

Bon¬

into

at the local level.

With
ISSUE

Puget's

;

main

should

also

power

as

power,

a

of such securities.

This offering is made only by the Prospectus.

'NEW

It

with

the

area

ground.

river
.

ideological

projects

expansion of public power in this

II, creating not only a mar¬

found

power

Federal

War

here that public power would not. projects.
have grown as it has if so many
The influx of heavy power-con¬

sub¬
for the monstrous public
buildup, it should be real¬

stance

indicated)
the

it

Because

b y
80%

1958-59,
i

hydroelectric
*

#

*

supplied
(

—

power?

system

71.4%

the

are

private

Thursday, May 29, 1952

.

used

Federal government forthwith de¬
attentive clared, its. intention to develop the
ently a huge Federal Government
ears
and
responsive audiences. best available power sites on the
electric power empire and seems and ominous state of affairs and
Thus the stage was set for a bit¬ Columbia * and
tributary rivers.
destined to be more so in the fu¬ it poses these pertinent questions:
ter struggle between private and Large
power-consuming indus¬
ture.
This is
(1) Why is it that the Federal
power
and the state of tries, such as aluminum, mag¬
evidenced
b y Government dominates the power public
Washington became the scene of nesium,
and
heavy
chemicals,
the
fact
that field in the Pacific Northwest?
The Pacific Northwest

.

utilities.

into

West Coast

region is

the

.

the

the

into

-

,

Fed¬

are

total of

some

projects, totaling around another
4,000,000 kilowatts, for which ap¬
propriations have not been made.
V In

the face of the tremendously

large,

"low-cost"

Federal

power

prising the western group of the
Northwest Power
Tacoma "News
Dec. 9,

Pool):

Tribuney l

1951.

;

We want to have the BP A (Bon¬
neville Power
a

partner, not

battle

lies

Federal

in

Administration) as
a boss.
The main
the

fact

Government

that
is

the

deter¬

power

developments, and the govern¬ mined to control all the electrical
supply field in a big way, and its ment's propublic power-marketing
power in the Northwest.
building of a vast transmission policies, it became unfeasible for
Tacoma "News Tribune"—
network, the whole power picture the
private utilities to build new :
Feb. 4, 1952.
changed radically.
The Federal generating facilities.
1
feel
that
the
question
of
projects were glamorized in the
As a practical matter, the day
whether I am to be reelected as
best New Deal manner and the
.

National Steel
First

Corporation

Mortgage Bonds, 3%% Series Due 1982

;

people
ganda
that

Due May 1,1982

;

as

would

duction

cheap
was

Dated May 1, 1952

deluged wit^h propa¬
to the amazing benefits

were

result

of

public
Claus

for the

basic

the

abund¬

that

ment

the

evidences

has

Federal

Govern¬

long sought to obtain
possession of Puget's "power pool."
In

March,

1944,

the

purchase

proposed

government

of

the

com¬

pany's entire electric properties—
the plan being that it would re¬
tain Puget's generation and trans¬
mission
Copies of the Prospectus
such

be obtained in

any

State only from

of the several underwriters named in the Prospectus and

others

L:

may

as

may

lawfully

offer these securities in

such

State.

facilities

and

sell the distribution

was

eventually

properties to

various public agencies.

posal

Federal

for the most part, stopped
tracks
ment

Harriman Ripley & Co.

The First Boston Corporation

Incorporated

White, Weld & Co.

Blyth & Co., Inc.

E*stman, Dillon & Co.
K dder, Peabody

M ?rrill

Glore, Forgan & Co.

& Co.

Goldman, Sachs & Co.

Lazard Freres & Co.

Lynch,Pierce,Fenner & Beane

Union Securities

Smith, Barney & Co.

Lehman Brothers

Stone & Webster Securities Corporation

Corporation

Hemphill, Noyes, Graham, Parsons & Co.

Drexel & Co.

.

Dean Witter & Co.

Lee Higginson Corporation

This

unacceptable

to

pro¬

the

1




and ; the
took

over

Federal
the

in their
Govern¬

primary re¬

temporary advantage of accel¬
amortization
permitting
rapid tax write-offs, and other

erated

factors,

some of the private util¬
ities in the region are now build¬

ing several hundred thousand kil¬
owatts

of

commissioner

of

public

utilities

[was

reelected] is definitely re¬
lated to the question of whether
the city of Tacoma is to maintain
an

independent

service

of

position

electric

in

energy

to

the

its

homes and industries, or is to be¬

merely a cat's-paw in a gi¬
Federal system of power
supply under rules, regulations,
and politics dictated from Wash¬
come

gantic

ington, D. C.
At first, neither
.

the

Federal

.

.

the

state

Government

additional

was

nor

in¬

hydro ca¬ terested in electric
power supply.
pacity. Certain local public agen¬ But
since the late 1930s, the United
cies are also increasing their hy¬
States Government has become a
dro generating facilities, but in
dominating factor in the genera¬
toto this is
just a drop in -the tion and
distribution of power.
bucket compared with what the
Experience shows that when the
Federal

Government

is

now

do¬

ing, and what it has projected and
authorized, as to power supply.
-

people of

function,
over

a region turn a major
such as power supply,

to the Federal

Government,
which
strongly
feels
Of course, a primary cause for
they are in for a rough ride on
public interest is best
public
power's
existence
and the Washington merry-go-round.
served
by
keeping
its
"power
growth in the Pacific Northwest Under such circumstances, instead
pool" in local hands. But the Fed<and elsewhere, is its tax subsidies, of
having power expansion geared
eral Government is persistent in
cheap money, and other advan¬ .to the demands of the region, it is
its objectives.
Again in Decem¬
tages, which, under present laws tied to the attitudes of the Presi¬
ber, > 1950,. "Big" * government
and
conditions
in
the
state
of dent and of
Congress and subject
threatened seizure of Puget's Rock
Island hydro project on the Co¬ Washington, iamount to around 30 to the byplay and interplay of all
cents per dollar of gross revenue. «orts
of extraneous factors and
lumbia river for the purpose of
Take in the matter of Federal in-'
political pressures. Among other
expanding it so as to provide
•come taxes alone, public agencies
things involved are party, sec¬
power for an aluminum plant to
exempt from such taxes presently tional, and ideological differences
be located near by. The govern¬
have 100-cent dollars of net in¬
—changing policies as to pump^
ment's plans were thwarted by
come, as compared with only 48- priming,
the
defense spending, and
company, entering -into
an
cent dollars, or less, for the taxbudget-slashing — inflationary or
agreement for the enlargement of
burdened
private utilities,
No deflationary trends — and,
of
generating
facilities
with
the
business can give its competitors
course, logrolling and red
Chelan PUD, which has Rock Is¬
tape,
substantial cost advantages and
land under condemnation,
hope to live. As things stand to¬
Elkins, Morris to Admit
Grand Coulee (present capacity day,
private and public power
2,160,000 kilowatts) was initially cannot competitively co-exist, any
PHILADELPHIA, Pa.—On June
undertaken in the depression '30s more than Capitalism and Com-4 1,
Elkins, Morris & Co., Land
as a "make work" project, and it
munism
can
live
in
the same Title Building, members of the
and

May 28, 1952

entered

sponsibility for the future power
supply of the region. Because of

company,
that the

fc tihn, Loeb & Co.

Government

picture in the Pacific North¬
west, the private utilities were,

the

clearly

intent, it should be under¬

stood

Price 99.75% and accrued interest

more

.

...

_

it

Because

ever

as

of

Sam

Uncle

power.

ant life.

pro¬

quantities

represented,

Santa

the

from

huge

the

the

the Bonneville development
(present capacity 564,000
kilo¬
watts) were also said to be de¬

signed

as

yardsticks for measuring

New
York
and'
Philadelphiapriority (preference clause) Baltimore Stock Exchanges, will
accorded public agencies in the admit Edmund G. S. Flannigan to
availability of electric power from partnership.

house.
The

Volume 175

Number 5120

.

The Commercial and Financial

.

.

Chronicle

(2239)
the required credit to
surplus

and

Role of Equities in

iund

or

tions,

Savings Banks' Investments
By AUGUST IHLEFELD*

the

of equi.y investment for mutual

purpose

sav-

*

lenge today than perhaps at any
time in the long and eventful his¬
tory

of

not

no

tV I'wUsn
ste^

their

ings.
i

s c

sav¬

c

o

n-

o u s n ess

thrifty

is

re¬

flected

in

the

growth
loan

The

rise

interest

in

the

rates

general
the

over

has added

to

returns

level

past

of

of the
,,

savings.

on

*

At the

ratio

of

want

deposits maintained at
they regard an adequate

growth

There has been

a

of

what

level.

deposits.

gratifying

res¬

an

on

real

after

making

allowance

made

the

permit

of

Research
of

rates

has

Bureau

indicate

averaged much
3V4% in the recent past.
A

third

reliance

upon

a

of

return

make

ex¬

provision

for

general

a

and

guarantees provided

4%

of

a

v/ould

net return
leave

less

banks

in

for

possible
common

'

are

type

in¬

only

Dividends

of certain

a

mutual savings bank subject

to the income tax will

fective

after-tax

Where

a

to

Federal

taxes

make
on

portfolio,

equities
cause

ingly high tax rate.

a

of

an

ef¬

4.61%.

provision
income

is from further additions
gage

give

yield

savings bank would be

obliged

which is not subject to this crush-

Hence,

stock bought on a 5% yield basis

by

2%

,FHA and VA which sharply limit

of

tive tax rate of only 7.8%.
a

high

it

pays

equities

received by a
are,' with the excep¬
public utility pre¬
ferred stocks, subject to an effec¬
tion

A mort¬
as

the

tax,

that

corporation

payment

than

bank

income

practically

highly desirable to seek alterna¬

foreclosure,

Eventually,

make

vestment that permits substantial
annual additions
to
surplus ac¬

tive investments the income from

loss from default and

divi¬

half their

<

savings

a

Federal

de¬

by

of

earnings

dividends

To

above

particular,

cash

over

that

addition to surplus where the
income is taxed at 52%.
For

such

in

out

pay

stockholders.

exclusive

for the

net

as

now

retained

on

recent years

giving

gage

aggregate, American corpora¬

larger

portfolios
savings bank must

a

growth factor that

a

vested in the business.

lift the rate

to

realized

applies where

re¬

market

earnings, the balance being rein¬

sharp increase in

mortgage lending

even

to

for

to

many common stocks

dends only a little

counts.

objection

of Federal income taxes.

because of

the

tions

reserves,

not

close

time leads

realized

after

and

expenses

provision

be

to increases in the
dividend income they
provide. In

insurance

loans,

mortgage

before

would

Moreover,

interest

income

that
mutual
savings
currently realize, from

benefit from

o/

Studies of

life

incurred in mortgage lend¬
The savings banks have jus¬
tifiably felt secure in expanding
their mortgage loan holdings in

banks,

ratio

net

ducting

ing.

as¬

ance

their

of

by the National

from

penses

ap¬

around 17%.

asked,

rate

costs

Economic

ex¬

for

the

aver¬

yields.

companies and commercial banks

estate,

investment

tban

can

serves

materially

is

an

equity investment portfolio
kept in hand, the net rate

be

income

equities

not

its standards

portfolio

com¬

price

would

paid by the borrower.

on any type of
hitherto' eligible for

banks'

of

of

The

the New York

of return of around
6%
If the expense of
manag¬

an

can

be¬

may

inflated

estate

meet

ing

mortgage

on

Exchange provide

today.

their

ob¬

can

rate

age

in

mortgage

yield available

savings

-

be

is going to decline for
savings banks because of an

accelerated

For commercial

mortgages

'

sur¬

Could not savings banks, it may

to

This ratio
many

lower

class, have provided the high¬

investment

banks
to

been

and

real

to

mortgage

in
the
the corresponding ratio of capital -improvement
quality of
accounts
to so-called risk
assets mortgage loans available,, insur¬

accounts

to

The savings

a

est

a

losses

has

for

rea¬

period

a

stocks listed

Stock

banks

that
in

banks

grade preferred stocks.

to

Secondly, the net vMd realize 3
by the lending institution from a

w

r^te ^f r*+nrn

on

portfolios

First
as

bonds other than government

averages

surplus

provide

possible

country together have

securities.

for business

the

absorb

plus accounts toaay equal

and

time, operating ex¬
penses,
especially
wages,
have
been rising for
savings banks as

see

however,

pansion of mortgage loans.

com¬

argued
banks need

sets, consisting of mortgage loans

same

generally.
Regulatory authorities

for

proximately 20% of their risk

year

for higher

pressure

to

their

be

may

savings
primarily to

risk assets.

on

funds.

raent

contended

available

savings

average yield of around
from
a
list * of
investment-

mon

deciding
of

either mort¬
bonds,
mat
i3

an

4%

further

quality.

|rPressing the rate ot'

desir¬

tain

high yield¬

before

concerned

overbuilding

return real¬
has ized by mutual savings banks on

than

with

are

irnm

or

i

Mutual

will wish

expansion

loans

earning assets of mu¬
tual
savings banks while safe¬
guarding the quality and liquidity

sub¬

a

considered

mutual

surplus

invest-

level

banks, it

cushion

mu¬

is

As

that

associa¬

tual

;

able.

been

mercial

and

tions and

Ihlefeld

lower

hitherto

of

savings

August

stantially

rapid

very

realized

to

open

account ratios to decline to

the

among

choices

further

a

come

li¬

nldua^ltl^n,

averse

There

mortgage holdings.
First, a savings bank

savings banks faced with of investment portfolios.
rising dividend rates and operat¬
ing expenses, faster deposit growth Higher Return Through Mortgage
Lending
-ma Federal taxation of
earnings.
One choice is to permit surplus ,; Hitherto, toe ictvored method o"

Greater

rate

two

are

ai^liXlUx

the

ur>

so

means

toaa.y

loans

gage

equities.

mortgage

best

ing investments
on

mutual

rate of return
on

practicable,

the

are

continue

is

of

to consider alternative

public.
It

whether

why savings banks

sons;

levels

choice but to face up to this chal¬

There

and

consistent

tainable

to
re¬

investments,

is

achieve this end.

rate

quidity that have won for them
the confidence and goodwill of the

lenge squarely.

higher

a

safety

their

expansions

holdings

safe^

compromise with the
of

savings

pressure

higher over-all

question .arises

major

doing
mutual savings

standards

even

safety a*id liquidity standards, the

In

reserves.

under

that

as

that

now

are

from

far

our financial system, do

want to

high

ings banking.
How Will the Challenge Be Met?
Depositors
seek,

to

dividend

current

for

tutions of

:

of these thrift institutions have

sav¬

turn

mam

needless to say,
banks, as the quality thrift insti¬

tion to honor promptly depositors'
withdrawal orders. Managements

greater chal¬

the

investments

so,

-

a

of

them, is to seek to
higher over-all rate ox

a

provision

savings banks' dividends as pre¬
venting additions to surplus and reserves, required by larger
deposits. Advocates savings banks form "equities pool," thus
diversifying risks and securing better investment management.

savings banks face

choice

objec¬

margin growth by adequate
additions to surplus accounts after

attention to recent advances in

of mutual

basic

and to

secure

Officers and trustees

these

better

from

guard

-

higher average rate of return so as to
reinforce surplus accounts and reserves, Mr. Ihlefeld stresses
greater risks attached to equities than to other securities. Calls
-

banks

secure an

confronts

now

realize
return

Pointing cul sole

of

.agements of mutual savings banks,
in meeting the
challenge which

Presichnti Savings Banks Trust Company, New York City

ings banks is to

However,

reserves.

Because

11

would

for

derived

to its mort¬

preference for
be plausible be¬

a

4% mortgage loan in that

case
would give a return of less
surplus accounts to risk assets, to ,and because they have eminently
rthan 2%
after taxes.
The same
organizations ,to The Choice of Equities for Higher
decline as deposits expand to, say well ' qualified
reasoning would hold
true, of
Income
manage mortgage loan portfolios
15%,
without
adverse
conse¬
course, for additional government
successfully. For these same rea¬ v There is one class of investquences?
;,
bond investments which, bought
There are at least three funda¬ sons, mortgage loans will continue ments, not traditionally associated
at a
yield of say 2.60%, would
in favor as the chief income
with
banking, that
.

,

•

,

.

mental

objections

to

savings

pro-

deliberate

a

*ducer for mutual

toration of faith in the dollar dur¬

policy of allowing the surplus ra-*

ing the past year. The American
people have gotten over their
Korean war spending sprees and

offer

does

Continued

tio to decline in this way.

are

rebuilding

their

expanding
of savings. Mutual

reserves

savings banks
at

faster

a

any

and

are

rate

,

since

year

gaining deposits
in

1952

1946.

than

While

in

the

annual

First, it would

limit the

from

worthy

mum,

savings

a

to

limit

investments

in

real

tions

would

faster

pace.

counts

are

at

Unless

of

ac¬

going to be expanded

equal

an

ratio

surplus

a

greater

or

surplus

ratio

of

posits

surplus

is

being

difficult

more

lending
ceived
its

on

proceeds

de¬

to

savings

banks because they become sub¬
ject to the Federal income tax for

of sale

Secondly,
chose to

plus accounts to

could

be

entirety to valuation
surplus accounts. Be¬

reserves

and

ginning

this

year,
except where
undivided profits and

surplus of
is

reserves

less than

12%

of

de¬

posits, such earnings become tax¬
able

the

at

5%

a

smaller

rate,

so

is neither

an offer to sell nor a solicitation
of an offer to buy
The offer is made only by the Prospectus.

these securities.

$25,000,000

re-.

Burroughs Adding Machine Company

the

or

other

bonds

risk

falling further could
only
But

in

that

part-remains

only
to

be

and

maintain

matter

to

then

sur¬

3%% Sinking Fund Debentures due June i, 1977

from

invest

cover

Price

expenses

101.27% and Accrued Interest

dividend
let alone to add to surplus

rates,

rates

assets

government obligations.
yield from such obliga¬

the

accounts.

depositors

24

page

savings bank which

a

dividends

to

on

loans

prevent the ratio of

tions is too low to

in its

ob¬

payments

loans

of

the first time this year. Hitherto,
balance of earnings after de¬
duction of operating expenses and

the

added

is

than Governments.

infinitely

many

amortization

outstanding

the

accounts

for

announcement

further

mortgages to funds

on
as

de¬

maintaining the
made

its

estate

bond
holdings. It
virtually have to limit its

to

posits is bound to decline.
The problem of

than

corporate

or

rate,

accounts

This

borrowers.

bank would feel

constrained

adding to deposits at

higher yield

Once the ratio of surplus accounts
to risk assets reaches the
mini¬

deposit gain for the whole
mutual savings banking system is
running around 6%, many institu¬
are

a

future

ability of mutual savings banks to
satisfy
legitimate
requests
for
credit

savings banks.

existing

It would then be only a
time

of

before

dividend

paid deoositors would have

be

reduced

because

of

inade¬

quate earnings from

the growing
proportion of non-risk assets held.
In

the

third

place,

the

current

jeopardize
rate

because

Copies of the Prospectus

may

be obtained in

uriters, including the undersigned,

as

State only front such of the several Underlawfully offer the securities in such State.

any

may

it
would
dividend

regulatory

authorri

added to surolus accounts to mar¬

ties

gin deposit growth.

Lehman Brothers

cline in the surplus accounts ratio,

•

.

and would

Thus,

more

demands

being

are

made upon

mutual savings banks
by depositors, employees, regula¬
tory

authorities

States

Treasury.

demands,

the

and

To

United

these

meet

standards

for

invest¬

mutual

savings

policy

of

banks will have to be

ing than

ever

obtaining
sistent

more

before. They call for

maximum

a

with

exact¬

nrotection

yield
of

con¬

princi¬

pal and meeting the fixed obliga*An

32nd

made

address

Annual

Association

by

Mr.

Conference
of

Boston, Mass.,

Mutual

May

15,

Ihlefeld
of

the

Savings
1952.




at

the

National

to

acquiesce

in

a

de¬

insist that additions be-

surplus accounts and

re¬

New

York, the law

now

surplus fund

or reserves,

the surplus fund

of deposits.

is

now

where

less than

This law would

in time put pressure on New York

mutual savings banks (whose sur¬

plus

ratios

dividend

ings

Eastman, Dillon & Co.

The First Boston Corporation

are

rates,

prove

declining)
should

insufficient

net
to

to

cut

the

current

Harrimari

cover

'

Stone & Webster Securities

White, Weld & Co.

Smith, Barney & Co.

Lasard Freres & Co.
'

Corporation

-

Union Securities Corporation
A. G. Becker c/ Co.
Incorporated

May 28, 1952.

dividend,

Ripley & Co.

Incorporated

earn¬

Banks,
expenses,

Goldman, Sachs & Co.

Glore, Forgan & Co.

requires

that 10% of net earnings be added'

10%

Bly th & Co., Inc.

from

earnings to keep oace
with deposit growth.
In fact. in.
serves

to

ment

not

may

;

1

The Commercial and Financial Chronicle

12

.

.

cline it could not decline very far

Economist, Moody's Investors Service

living in

In

thinking about what I might

most

usefully

to

say

today

you

the current economic
trends, I was struck by something

regarding

the

in

read

book

recent

awareness

write off inflation

as

competing

be

strictions,

Capitalism

world

by

Prof. Gal-

actively with us for the supply of
raw
materials, which is not un¬

of

many

if

book;

would be right
assuming that the acute phase
inflation is finished. The threat

But I think you

so,

in

forgive me for

of

repeating his
point. He sets

major war has not materialized,
and we have greatly enlarged our

out

production capacity. Last year,
manufacturing capacity increased
8% over 1950 and this year will

by

marking that
the
aerody¬
namics
and
wing

gain another 10%. The percentage
of capacity utilized at the end of

,Adam Gostomski

loading

-

of the bumblebee

this

be such that, in

said to

are

principal, it cannot fly. But it does
fly. And Prof. Galbraith says that
if the bumblebee is aware that,

the laws
aerodynamics, it

flying, it is violating

in

physics and

of

in

must live

constant fear of a

a

Amer¬

crackup. Similarly, he says,

has been living in a

ican business

as

With

1948.

<

high and quite

still

costs

and prices
levelling off,
there is developing a squeeze on
rigid,

margins

profit

there

are

expansion

future

about

doubts

and

plans of business. This brings me
fear of

to the second of the fears,

recession.

economic

of them

Many

constant anxiety.
So I would like to build my dis¬
cussion of the economic outlook
r round investors' fears. Especially
u.ree
fears
which
have
been
live in a state of

am not going to make
definite predictions about the
next general recession—just when
it may come or how long it may
last. I will merely try to outline
some of the main features of such
a

recession—what would be some

I

(2) Fear of Recession

isn't

Change

too,
lift

acute

as

it

as

now

The government,
have changed its

to

seems

it

about

has

and

to

begun

relax controls. People

or

are

When it

(2)
be

Why is

immediate threat? In order to

an

that, let

see

stand.

I

FRB

make

should

is what

one

is

the

There

bit cautious.

possibility that this turn-about is
being overdone, just as the fear of
inflation

was

overdone

year ago.

a

strikes,
Out

commodity prices started turning
downward.
Maybe commodity
prices are near bottom now, at
while.

their

conclusions

demand

about

qnd supply

largely

of

they

orders

formulate

the basis

on

receive.

After

ray

as

use

the

of

industrial

produc¬

now

this

about 220 points.

total

approxi¬

220,

mately 35 points represents mili¬

the

a

points may be said to repre¬
materials and equipment for

defense

plants

while

which,

privately

financed,
are
more
strictly for military purposes. This
would leave about 175 points for
civilian production proper. On a

Another

Now they are way down. But ac¬

consumers

tual

is,

consumption has been

com¬

paratively steady right along. One
of these days,
new
orders will
turn up again.
Then there is the steel situation.

Wages
things
prices

bound to

are

following

that

entitled to

On the

situation

general
some

and

up

of

many

made of steel too.
have been lagging
behind

what
are

go

prices

Steel
some¬

prices

and

adjustment.

whole, the kind of labor
we

have is long-term in¬

flationary, especially that annual
adjustment for productivity which
is being written into more and
as

we

*A

have

talk

unsettled

by Mr.

as

world

Gostomski

below actual

now

measured

tures

for

goods.

reduced.

They

Corporate ,fiduciaries Association,
ton, Mass., May 13, 1952.




is

only

the

only

That

this is

can

be

being reduced,
buying holds up
at this level, they should be rela¬
tively normal in another couple

and if

of

months.

have

By

now

consumers

paid off most of the install¬
debts

ment

they

after Korea.

that

are

consumer

made

It is

buying

on

more

You

can

individual

contracted
the

soon

repayments

savings look

last year.

Eos-

as

expendi¬

in which inventories

long

the

consumption

consumer

because

proper,
way

by

con¬

before

of

excluding
consumers
goods
bought for the Armed Forces, is

though

labor contracts. And

more

Production

thing:

goods for civilians, that

so

high

Now, with controls off,
credit will

see

rise

again,

can

review

this

from

see

in the rate of

industries

that

some

while-

editors

business

general
had

recession

a

in

—

goods—but under

and

under

far

very

In effect

soon.

have

we

refer

appropriations

should

go

points in

least

at

up

many

for

He

projects which had been
held back by materials controls
will be released and will partly
declines

At

decline

the

most,

total

in

plant and equipment expenditures
the

over

12

next

to

months

18

might be the equivalent of,
five points

say,

of the total production

index. It will be

than offset

more

that

perhaps after some further small
decline into the summer, business

general will

least

be

moderate

a

into

last

sometime in

after

Whether

for at
which

ready
upturn

that

ready to go into

1953.

will

we

be

general reces¬

a

sion, it is too early to

I would

say.

that 1953 could still be a
reasonably good year. After that
guess

some

factors

new

light

which

make

the
looks.

now

it

should

A

conceivably
than

it

Korea,

if

better
in

truce

would

probably

come,

alter

not

situation

the

to

come

may

could

outlook

appre¬

ciably.
My second conclusion is that
will

be

not

longed.

serious

too

Here

are

a

the

Even after the peak of the

defense

present^ A rate of $40-$45 billion
a

year

is considered

a

minimum,

and this is close to the recent rate.

If

production of
main

seriously.

be

total
more

ings

are

(3)
rose

depress them very

wage
incomes
profits would decline,

consumer

stable.

income

would

Accumulated

sav¬

high.

As

4

as

strong

business

pressure

by

and other means.

tax

It is difficult to

than 5 to 6 million in such

recession.

The
more.

country

for

1949, it aver¬
aged 3.4 million and did not exon

a

typical whistle-

the private

utility lobbyists are arming to
swarming all over the Capitol, into
into the committee rooms. They are

are

than 50 years has been developing power there. Mr. Tru¬
the Federal Government to control this power along

more

wants

man

Rapids that would be

built in the St. Lawrence

waterway project. I know of no single
power company or any group of power companies that is doing
anything against the St. Lawrence project except for an occasional
speech which the President of the Rochester Gas and Electric Co.
The ads of which Mr. Truman complains are typical insti¬

makes.

tutional ads.
The only power lobbyists in Washington which those of us
who get around the Capitol know anything about are the President
of the National Association of Electric

Companies, and his assist¬

Neither the St. Lawrence project nor that at Niagara Falls

ant.

is
it has no policy on them. The
directing its efforts against the further encroachment
of the government into the power business, a general proposition
on which the hundreds of power companies see eye to eye and it is
only on such a general proposition that they do see eye to eye.
There are member companies that would not permit the Associa¬
part of the Association's program;

Association is

tion to take any

lobby that, if it
of

part in the Niagara

people.

our

or

St. Lawrence fights.

blithely holds forth

were not

on

the monstrous power

for him, would eat away the substance

This is not educational, it is not by

way

of improv¬

ing the minds of the people, of informing them of national prob¬
It is the harangue that we used

municipal offices. Only in recent
vehicle of candidates for

dency.

Yet

it to

ute

we

politics and

ing not to the people's
was

this

same

Wall
1

cynical that

we

admiration for

laugh it off, attrib¬
President who

a

to take

he tells

us

reason

but to their emotions.

Ye gads! '

type of campaigning with which Mr. Truman
His catch phrase in that campaign was

:

mind, it is nothing to laugh about.
a man

with such

a

in his warning that if the mutual
will be in dire

How seriously are

reckless disregard for the facts when

about Korea, about Europe?

him when he says

is

In his speech to the consumers' group,

Street, iniquitous Wall Street.

To my

we

to get from candidates for

has it become the successful

indignation at the "power lobby" for appeal¬

the election of 1948.

won

so

express

Mr. Truman expressed

years

high office, particularly that of the Presi¬

have become

adept at this sort of stuff.

page

New

What stock should

we

put

security appropriation is reduced

peril of Stalin?

How seriously are we to take

anything?

Reynolds Office

CHICAGO
nolds &

a

wouldn't

In

Continued

co-op

to stim¬

reductions

imagine unemployment averaging
more

800,000

only truth in Mr. Truman's statements is that five New
companies are seeking the authority to develop the
increased power that is to be taken from Niagara Falls just as one

we

unemployment
million or so, there

soon

above

would be
ulate

recently, it will

While

and business

the

as

said

Truman

and

goods re¬

consumers

moderate,

difficult to

be

buying

consumer

some

power

It

(2)

from

The

York

lems.

reasons:

(1)

meter charge

a

pro¬

of

some

collects

Yet Mr. Truman

comes,

or

This

Congressmen's offices and
spending money lavishly in magazine ads and this money is com¬
ing from the consumers of electricity and from the taxpayers,.
because they deduct these expenditures from their taxable income.

,

general recession, when it

now

with that from the plant in the International

by rising military output.
This background suggests

effective

former Arkansas

a

destroy public power, they

industrial

in

most

stop speech and it is this type of speech, this type of campaigning
that has gained considerable admiration from the American people.
Mr.

those

the

It is a sounding

the

Anyway, before this group Mr. Truman made

And

1954.

which

Union.

utilities, won't

until

of

public power throughout the country. Co-spon¬
soring the consumers' conference was the leftist National Farmers*

projects, such

completed

crowd

avowed lobby for

big expansion

be

Power

members in the country and has developed his organization into an

that of electric

as

Public

myriad electric co-ops around the country should be knitted to¬
gether to get copper wire and handle their other kindred prob¬

and equipment, al¬
though they may be near peak,
are not likely to go down sharply
but
rather
gradually. Some of

the

the

Bargeroa

Congressman, Clyde Ellis,
organizing genius who got the idea in World War II that the

an

expendi¬

business

Carlisle

Conference, but first

word about the Electric Consumers Conference.

lems.

Meanwhile

a
better understanding of just
ability is gaining the admiration of
people, consider his speech on Monday

what type of

is the brain-child of

year's time.

a

say.

have

lobby is the National Association of Rural Electric Co-ops.

15

to

10

expected
with healthy re¬

year

another one of these campaigns
They are inclined to chuckle about
"You've got to hand it to the little fellow,"

board

the basis of the orders
placed and the work in process.
In terms of the
FRB index, it
go

none.
whistle-

an

make

To

a

up

anyway, on

should

campaign this

to the Electric Consumers

reduced

are

further,

it.

so

Now, military production, even
somewhat

famous

Many

they will

high defense activity.
if

his

to

of 1948 and view

win.

consumers

umbrella of

an

similar

July,

that it would be difficult to knock

stand for

moderately.

The

of them will tell you privately
that in the final analysis he will be drafted in

payment requirements.
You

He, himself, makes no effort
Intimates say

ity to get votes, he takes off his hat to

spect.

effort is passed, the mil¬
itary establishment will remain
per capita basis, this is about the large and will be providing sup¬
same as for
1949, a year of mild port to the economy with expend¬
itures not a great deal below the
recession.

Korea, new orders were way. up.

•

is also

restrained, because of high down-

tary production. In addition, close
sent

for

is

of

to 10

You see, businessmen

to

measurements

tion. Total production, aside from

strongest, that was the point when

?

going

of

index

When the fear of inflation was the

least

analyze where we

us

am

shortages.

a

general recession not

a

yardstick

This

would

construction

Residential

master politician.

a

as

stop campaign

may

it will not
prolonged.

or

public,

frequently said publicly that there are thou¬

incomes

consumer

relationships

growing

sands of others better fitted for the Presidency
than he. But on the matter of politics, the abil¬

comes,

serious

too

talking about surpluses instead of

feel

to

normal

a

disguise his pride in his ability in this respect.
makes no claim to statesmanship, he has

he

indicate.

in

recession is not

general

immediate threat.

an

Fear

year ago.

mind

(1) A

to fear of inflation. It

nearly
a

was

going to begin with two

am

broad conclusions:

(3) Fear of Long-Term

as

relation

than

Now, I

any

dencies.

(1) Fear of Inflation

First,

in

offset

Fear of Recession

of its tendencies and counter-ten¬

dominant:

Inflation

to

construction.

business is also

investors.

eral

recession in

as

victory there has been

admiration for him, among editors and apparently among the gen¬

re¬

tures for plant

being broken.

were

What is true of

of

been

has

it

that old familiar

aware

true

impending

an

because

breakdown

laws

of

fear

of

state

83

will be something like
compared to 87 last year

year

and 92 in

material

aggregate than in 1949 and lower

of

re¬

well

as

this level

costs.

you

read his

have

more

level of

at this

at least

limited,

Perhaps

vard.

By CARLISLE BARGERON
Ever since Mr. Truman's 1948

demand, production of other dur¬
able consumers goods is also on
the low side. It is lower in the

on

braith of Har¬

15-

a

of 12% and with 8%

of recent

Because

awakening of the
teeming masses of Asia and Airica
to
the
possibility
of a higher
standard of living means that the
will

with

1938 recession.

in the

The

problem.

registra¬

of

compares

year average

long-term

a

a

9%

about

is

This

tions.

cannot

ditions and risk of war, we

Washington
Ahead of the News

rate, they are

year

far from

very

duction

familiar economic
laws are being violated, Mr. Gostomski lists among these fears:
(1) fear of inflation; (2) fear of recession; and (3) fear of
long-term change. Says, despite let-up in inflation, it is still
a long-term problem.
Holds there is no immediate threat of
general recession and, when it comes, it will not be serious
or prolonged.
Forecasts favorable long-term outlook.
breakdown, because of

a

a

normal re¬
placement level. At this rate, pro¬
not

Pointing out both business and investors have been
fear of

cars

From

about four

stance automobiles. At

million

in¬

for

Take

levels.

these

from

ADAM GOSTOMSKI*

By

Thursday, May 29, 1952

de¬

of course,

could,

production

Current Economic Trends

I

.

(2240)

York

Chicago Analysts

HEIGHTS, 111. Rey¬

Co., members of the New

Stock Exchange, on May

16

First

sales office in the
National
Bank
Building

under

the

opened

a

new

direction

of

Robert

F.

32 Shields, registered representative.

to Hear

CHICAGO, 111.—Joseph A. Martino, President of National Lead
Company, will address the Invest¬
ment

Analysts Club of Chicago at

their luncheon
12:15 p.m.

meeting May 22, at
in the Georgian Room,

Carson Pirie Scott & Co.

Volume 175

Number 5120

.

.

The Commercial and Financial Chronicle

.

of the economy
tenance

Objections to Preferred
Stock Issues by Banks

ferred stock issues

of earnings

as

by

has

been

number of persons interested
in bank stocks that banks should
a

be

now

encouraged to issue

pre¬

ferred stock.

along

'M

is

to

the

in

better

a

position

stock

be

can

sold

of

the

outstanding.
dilution

com¬

However,

at

common

equal

basis

than

discount

a

of

the

equity

the

with

book

later

value.

should

merger

the

old

had not

equitable
and

would

increase

to

com¬

This

of

treatment

encouragement

banks

will

new

sold.

if

take

stockholders

been

stockholders

Or

finally

receive less than if the
mon

in¬

present
avoided

be

provided

their

for

capital if

banking authorities would permit
the

banks

to

issue

preferred

Stock.

accomplished

The

so far
the holder
of a stock with a book value of,
say $125.
loses something when
someone else is
permitted to ac¬
quire, for perhaps $100, the same
rights with respect to earnings
and liquidation valu^ But this
does not prove that the issuance

of

it

No

preferred

doubt

stock should be

There

mentioned

is

above

a
pos¬
through
the issue of preferred.
It seems
doubtful that, many banks would

much

to

care

they

greater

loss,

issue

were

preferred even
encouraged to do

if

In the first

a

that the

capital.

can

banks
a

years

as

securities.

But

conservative
of

policy

earnings

been gradually
war

the

from

of
the

banks'

reinvest¬
ratio

has

rising in the post¬

years.

that
a

runs

stockholders

more

tect

answer

to

the

should

effect

provide

adequate cushion to

depositors

(and

the

pro¬

FDIC)

against

a shrinkage in asset value.
There is something to be said for
this point, although taking into

account the

today

and

quality of bank assets
the

Federal Reserve

strength
we

of

the

perhaps need




what

do.

can

the

all

If

only

few banks need to acquire more

the

sale of additional
way—though not the

one

most direct

way—to

But if banks
reserves

to

volume

them.

secure

generally need

of

support
loans

more

increased

an

and

deposits,
they cannot get them simply by
selling stock.
All it amounts to
is

bered

that

the

buy

the

to

security

he

that

that

It

the

is

he does

only

to

the

stockholders

that

the

the matter.

the

his

ings
one

way

the

raiding

the

their

of

reserves

financial
the

world

of

wrecks

followed

away"
ferred
was

the

The

retire

permit, we.may
curities and

once

disputed ownership."

earnings
these

more

have

se¬

What hap¬

increase in

up?

nearly all
serves,

for the banks

reserves

whole.

a

If

decide

we

banks need added
cannot

we

re¬

stock

expect

to

simpler

gain

This

to

they

this

been

support of this proposal for
preferred,
offered

banks

continue

the

Federal

and

do

to

no

the

for

that

present

has

reason

banks

low

that is the
If
or

two,

recover

banks

Yet

of the discussion.

crux

earnings

to

earn¬

ings will soon, or ever, rise.

Reserve.

doing,

can

as

been

by selling se¬

Federal

have

they

long

is

the

the

l'or

way

reserves

bank

believe

sales to provide them.

curities

In

that

which

in

a

now

regarded

is

pre¬

dilemma.

the

as

year

issue

precisely that
then it

earnings

depressed,

understand
ferred
The

why

would

lower

securities

This

announcement

is

It is exactly in
earnings are low

If

unlikely to
increase in

period

a

that

interest

rates,

presumably of low earnings.
cure

for this condition is less

in

more,

pro¬

Total
stocks

assets

it is

decline

do

must

quite apart from what the

capital

in

invested

around

sales of

would

that

find

present

preferred, rather than ad¬

ditional
common,
had been to
their advantage. It seems doubt¬

ful that many stockholders would

find such

ing.
a

gamble to be appeal¬

a

It's too much

like marrying

in the hope he will reform.

man

The basic requirement is to work
toward

ings.

lowering bank taxes and

forward

would

in

step

it

would

the

in

the holders of

absorb

the

value,

common

loss.

not

$50

over

ment

get at the

assets that

more

Vilas &

real

billions
which

of

cause

Admit Boutelle to Firm
Vilas &

In the event of

a

really serious drop in asset values,
the

holders

might
its

par

value.

of

in

added

If

been

would

whatever

over

above

the

the

,

continue

of

the

de-

going

concern.

BOSTON',

&

of

common

stock,

under

—

Chester

at

be

paper

converted

the

to

Federal.

order

to

clearly

With

Schirmer, Atherton

(Special to The Financial Chronicle)

Atkerton

&

Mass.

is

—

with

Co.,

50

Elmer

on

Congress

Street, members of the New York

disastrous.

and Boston Stock Exchanges.

There is always

a

risk

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

of

$10,000,000

by

the

bank

Iowa Power and

as

First

Mortgage Bonds, 3M% Series due 1982

was

enormous

loans

Light Company

stock

larger

a

Dated

during

Due May 15, 1932

May 15, 1952

war.

Question

Price
101.93% and accrued interest

of Adequacy of

Bank Capital
On

this

of

quacy

sometimes
low

question
bank
been

earnings

of

the

capital,

ade¬

it

that

argued

has
the

in

fact, clear
evidence that bank capital is ex¬
cessive, and that the economy
would get along quite well even
some

our

agrees

is likely

tion

of

The

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

HALSEY, STUART A CO. INC.*

banking activities

curtailed.

were
one

of

are,

Whether

or

not

DICK &, MERLE-SMITH

L. F. ROTHSCHILD A CO.

raises

a

ques¬

fundamental

GREGORY & SON

IRAHAUPT&CO.

STERN BROTHERS & CO.

free

THOMAS &, COMPANY

competition

and

there should

free

be

a

decline

in

bank

of

funds

to

other

and

a

HELLER, BRUCE & CO.

ASPDEN, ROBINSON & CO.

FIRST OF IOWA CORPORATION

MULLANEY, WELLS & COMPANY

fields

where they are in greater demand.
On the other

,

COURTS & CO.

gradual

capital,

transfer

enter¬

WM. E. POLLOCK & CO., INC.

INCORPORATED

importance.
For if bank capital is excessive,
then, according to the rules of
prise,

AUCHINCLOSS, PARKER & REDPATH

with this position, he

to feel it

hand, if the needs

May 22. 1952

M.

Schirmer,

other circumstances it might prove

Banks

operations,

shown

expansion
the

carry

of

re¬

H.

Lynch, Pierce, Fenner
Beane, 10 Post Office Square.

BOSTON,

holders

Mass.

Merrill

Greenhalgh

prove

*

Graves has been added to the staff

of

advantageous to the

might

,

.

Merrill Lynch Adds

under certain
circumstances the sale of preferred

while

,

(Special to the financial chronicle)

to

be left

book and market value as a

short,

,

„

.

,

original

positors, whether we are thinking
in terms of liquidation, merger, or

In

,

„

admit Franklyn Boutelle to partPln f
^ 0n
'
Mr. Boutelbv has been a partner
ln Burton, Cluett & Dana,

the

by

might

claims

City, members of the
Stock Exchange, will

York
.,

capital

raised

common,

stockholders
share

zero,

preferred still retained

instead

sale

stock

common

their equity fall to

see

while the

had

of

,

Hickey, 49 Wall Street,

York

mention

to

of

Hickey to

bank

dollars of other

could

serves

not

a

nor

are

New

billion of govern¬

securities,

be

banking

trouble.

The

preferred that has been is¬

By contrast, the commercial banks
hold

earn¬

The erection of risky capi¬
structures

billion.

$10

regu-

lating authorities might say.
To repeat, it is only if earnings
should improve that holders of

New

The

runs

an

welcome to holders of bank stock,

not an

other paper.

more

common

so

discount

to

be considered,

earnings, the

Reserve

to

or

are

difficult

issue of pre-

an

ever

go

is

stands ready to buy their govern¬
ment

pre-

common

tal

low

of

un¬

pened when earnings did not pick

as

the

point

is

market decline.

with

argument

"When

same:

sell

can

5%,

stock benefits from the use of the
added funds. But when the

held, the greater the burden im¬
posed upon the common by any

the

bonds.

feel

we

stock

common

Here is

sued and the

"giving
stockholders'
management issued pre¬

or

and

yield

for

company

in other ways raising bank

more

The

littered

of

can

by the issuance of

who

avoid

To

of

any

equity,

is

holder

If

companies which
the policy under

just

discussion.

position.

then how

then

trouble

financial

to

a

portion to assets.

the company attempts to strength¬

its

protect depositors
decline in market value

a

assets,

The

is, basically,
the depressed earnings, and not
the type of securities with which
en

any

more

to

capital, rather than

what

But

solved

and

of

bound to be hurt,

another.

or

ferred

If

tinuance

When any business is

are

7%

earn

depreciate, then an
capital is unnecessary. Essentially,
asset-stability would mean a con¬

the

satisfactory earn¬
invested
capital,
the

on

have

that added capital

agree

assets are

extent

heart

can

commcn

we

ferred?

proportionate

to

come

we

management

Let's look at this

benefited

whole, affected adversely.

a

Here

and

this

would

required

the

shares of the old stockholders are,
as

providing leverage.

pre-

issue of preferred should be least

against

he

enter

device

stock.

If

to

of

for

a

when

is

and

so

use

as

not

of

right

himself,

do

,

closely.

the

remem¬

dilution

any

new

picture

has

stock

extent

equity.

be

earnings

suppose

problems?

increase in the

an

been

True, banks' assets are
liquid than those of other

how

stockholder

should

new

avoid

can

old

traditional
has

heavily penalized is the

preferred by
disposing of sufficient assets. But

pre¬

competitors, and when all
are
playing the game there is no net

if

Specifically,
the
question
is,
why should capital be increased?
One

and

together

stock is

sharply during the war
a
result of the great

in
deposits caused by
purchases of government

ment

that

pre-

could still retire the

It

values.

and assets, and present conditions
do not provide
any exception.

more

increase
bank

do

reserves,

The capital-deposit ratio

declined

frequently confusion
to what a single

bank

in

great deal

a

the

their deposit

simply do not need to sell

place, it is far from
banking system as

whole needs

is

volume

Is More Capital Needed?
v

that

so

by the banking authorities.

clear

is

respect

en¬

The alternative to the

couraged.
loss

is correct

argument

goes.

sible

It

common.

causes

with

A
as

depositors,

own

liabilities.

stockholders.

old

place,

To the extent that

banks have reduced

corresponding

value

buyers, who purchased their stock
a

by selling stock—to depositors

resulting from

stockholders

a

less

reserves

the

to

been

If, later,
earnings improve, the old stock¬
holders must share the gain on

at

the

ments. And if banks

discouraged

are

discount

a

involves

an

gain

would be most increased

corporations,

depositors

asset

For it is easy to exaggerate

injustice

the book value of their

new

the

One way for
to

com-

would

set¬

in

earnings

on

more

owner-capital

doubtful

appears

Banks

market

to sell

growing vol¬
business, banks need addi¬
bank

stockholders

But

that

unable to show

stock

mon

literal

generally are
selling stock—whether common or

common

only at

of

Klise

increasing their capital, for

new

This is
a

doubt, however,

some

prior claims

recover.

point.

agree

between

decline in

a

first

we

more

preferred—there is, of course, no
net gain in reserves. All that has

recover

to

S.

E.

in

ap-

involved

common

up

The

(There would

ferred.)

offered.

re¬

growing

they merely reduce their deposits,
hence lower their reserve require¬

stock¬

holdings.
from

the

To support a

reserves.

the

for

suppose

buffer

a

Not the Answer

the

ting

ferred

of

really
best be served by retirement of
preferred at such a time.
Cer-

a

to

the

be

common

Stock

ferred stock should be the

also

capital is

least

banks sell to their

en-

are

at

as

still

sometimes

more

in other banks.

by such

means

is

to

equity

that the best interests of the

new

banks do need

and

support

individual

couraged,

holders

that

true,

tional

sales,
liquida¬

since

capitalThe point

preferred.

it

to

of

ume

Mer¬

are

bank

longer stand at

no

much

Now

re¬

by the advo¬

mentioned

of

sense.

are

gers,
tion

cates

hardly

generally sell¬
ing at a dis¬

and

not

or

way

the

by the leverage action of the
Preferred

event, but it

any

then

one

and

been impaired.

stock.

mon

a

in the past.

as

debatable, in

off

capital, if re¬
quired, could easily and equitably tainly it would be in exactly such
be provided through sale of com¬ a period that the earnings on the

nor

volume of bank business.

earnings, bank

count.

is

quired

bank

shares

cushion

upon

substantial

as

claimed

these

low

quire

heavily

so

However,

run

lines. Because
of

rely

was

The
argu¬
ments of these
advocates

not

better

stockholders would have

common

banking

mon

discount, and

decline;

proposed

But

of bank

pear

would

pre¬

on

recently

overhauling
perhaps of

an

an¬

So

It

be

they had issued common.
as
has been
pointed out,

preferred

other, there must be an improve¬
ment
in earnings.
Bank stocks

(2) it would erect a risky capital
for banks; and (3) it would not add to bank reserves.

"'"structure

would

if

For,

earn¬

be permitted to rise.
require tax revision as

policy and
regulations.

grounds that: (1) it would not benefit
present stockholder but might prove disastrous to them in
case

than

management might then retire the

well

After contending there is now no need for additional banking

against resort by banks to

preferred

present

This may

Oxford, Ohio

argues

of

ings should

Associate Professor of Economics, Miami University,

capital, Professor Klise

require the main¬

expansion

or

banking activity, then bank

By E. S. KLISE

13

(2241)

PATTERSON, COPELAND & KENDALL, INC.

14

(2242)

The Commercial and Financial Chronicle'.

Continued

from

4

page

lation

write all kinds of insur¬

pany and

tient

You may all have seen the tabu¬

multiple" line-com¬

so-called

or

the

in

written

the

are

by

property

casualty

other than automobile

lines

liability and

property damage, which now total
nearly $2 billion or about the same
annual

premium

variety

of coverages

"fire

volume

as

call

we

the

the

lines."

The

fourth

terms

of

broad

premium

volume

those coverages

which

fied

We

marine.

as

marine"

in

segment

are

classi¬

are

refer to

"wet

being the indemnities

as

written for hulls and cargoes trans¬

ported by water, and "dry ma¬
rine," being the inland transpor¬
tation, personal property floater
other

and

riot

special classes that do

classify in the other categories.

in

A

Forecast

Fire

of

Insurance

10

this

illustrate

1950

between

years

increase

As quick reference
point. In the

population.

will

the

and

values

surable

1960

and

liability, personal prop¬

personal

floater and

erty

structure

When

coverages

are

the

sure

possibly others.

existing

profit that has by traditional prac¬
been plowed
back and in¬

vested

obligations, but to provide
packaged into one policy it is pos¬
we will have an increase in popu¬
rates that will produce a return
sible to broaden the protection to
background as re¬ lation of children between the
romparable with other industries.
include other and equally insur¬
spects the economic importance of ages of 5 and 14 of between 10
able
hazards
that
are
not now They also have the obligation to
the property
insurance business million and 11 million. In other
preserve investor interest and pro¬
words we are going to have to generally available. The trend to¬
we
can
approach the announced
vide
earnings that will attract
ward multiple peril underwriting,
provide in our elementary school
subject of "The Outlook for 'Fire',"
will not change or eliminate pres¬ capital to this essential business.
with a relative degree of simplic¬ system for this added population.
The fire insurance rating for¬
ent policies.
The buyer of insur¬
ity. In a sense the forecast is a Immediately afterward these
mula
provides that rates on a
ance will still be able to buy any
larger numbers of children are
relatively easy one, since the out¬
given class of risk within a rating
of these separate coverages that
look is based upon economic fun¬ going to be moving into the high
he may want. They, in effect, will territory, a state for example, must
school
damentals.
systems, ultimately into
;
■
over
an
average period of time
college and finally into family supplement rather than replace
While
exact
figures are not
produce an underwriting profit. If
the existing structure.
formations.
available, I have reliable estimates
profits on a given class become
Ycu have all heard reference to
At
the other end of the
life
prepared by a competent author¬
excessive, rates must be reduced,
cycle we are all going to live the so called deductible forms
ity that indicate the amount of
and conversely, if adverse experi¬
which
are
designed to provide
straight fire risks written in this longer. We as investors like John¬
ence in that class produces a neg¬
son
&
Johnson
because
of
the protection for the very large risks.
country. Starting at a point most
ligible profit or a loss for a period
high birth rate and increased sales Some years ago many large cor¬
of us remember,
1929 and the
of time, the rate shall be increased.
of baby powder; we like the drug
porations considered it economic
early '30s, the properties covered
This does not mean that poor
shares because of the magic things to go the route of self-insurance
idr fire had an insured value of
underwriting of unsound risks will
up
insurance reserve
about $65 billion. At the time the they do to make people healthier by setting
be subsidized or that skillful un¬
snd to live longer.
But did you accounts and in effect paying their
war ended
this figure was over
derwriting and careful selection
hlOO billion and as a result of the ever stop to consider the fact that own losses. The inflationary trend
will be penalized, but only that
the more babies that are born, the of
recent
years
has: materially
postwar inflation the figure is
on the basis of aggregates and av¬
more schools that have to be built,
changed this situation to the point
>ow well over $200 billion.'

to provide

a growing sur¬
increased protection for
the
policyholder and a greater
equity for the shareholder.

plus

as

The investment of these capital

-

and

surplus funds

increasing

well

as

has produced

serves

as

re¬

continually

a

investment

income.

Shareholders of insurance compa¬
nies have received ti.eir dividends

this investment income seg¬
The enviable record of the

lrom
ment.

for continuity of pay¬
periodic increases is

industry
ments
too

and

well

known

It

ment.

that

ever,

to.require

might

be

some

com¬

added,

how¬
ago it was

years

traditional practice to pay out to
shareholders about 75% of invest-:
ment
to

their

Developments

With

steady but
underwriting

average

tice

meet

to

industry has

relatively

a

moderate

solvency and the ability
companies

with the
processes

making.

produced

which will not only in¬

.of. insurance

years

cumbersome

Over the years the

Companies' Prospecls
business

during recent

of rate

each could write before. The "Bank Letter" which recorded the
net income of leading corporations
industry is constantly adjusting
itseif internally, fitting ' existing for the years 1950 and 1951, cov¬
types of policies to the multiple ering more than 3,400 corporations
line program, and is continually engaged in all types of industries.
conducting research for tne de¬ The tabulation reports a percent
velopment of new policies which return on net assets of 11.4% in
rence
with which you have had
1951 .compared to 13.4% in 1950.
are
not limited by the compart¬
intimate contact. Fire or casualty
ments of fire and casualty.
The The comparative return of 66 fire
insurance is unlike life insurance
so-called multiple peril package and casualty insurance companies
in this respect.
I have collected
was 5.7% in 1951 and 7.9% in 1950.
policies provide indemnity against
several times on my property pol¬
It is characteristic of the. insur¬
any combination of insurable per¬
icies, but my life insurance will ils for which research supports ance industry, because of the de¬
never do me any good.
the fact that there is a market, gree Of stability inherent in the
regardless of whether these perils business, to earn a lesser rate of
Factors in Growth of Property
ere
now
in
a
group commonly return during periods of prosper¬
Insurancfc__
labeled ."fire," "casualty," or "in¬ ity than the average of industry
Since insurance is so intimately
land marine." Ultimately those of: generally.
However,
this point
connected
with our
individual
must receive the continuing con¬
vou who are householders should
lives and with every venture in
sideration of the regulatory au¬
be able to buy one policy at a
our economic life and progress, it
tingle premium which may pack¬ thorities, meaning the insurance
follows that the property insur¬
commissioners
of
the
various
age several policies you now own.
ance industry must grow in direct
Conceivably this will encompass states, because of the responsibil¬
proportion to the growth of in¬
your
fire, theft, comprehensive ity they have to maintain a rate

Property Insurance
of

Thursday, May 29, 1952

.

sometimes

April National City

ance

companies

.

earnings and add the balance

underwriting gains in order to

finance the steady growth of pre¬
mium volume. However, with the

this

of

advent
tions

inflationary considera¬
the consequent sharp

and

increase in

premiums and reserve,
requirements it has been necessary
desirable for most companies

and

to

retain

is

the

payment

average

currently in the 50-60%
Once

,

larger share with the

a

that

result

bility

enter

we

area

an

range.

of

sta¬

deflation it is to be

or some

.

-

'

rxoected

that dividends

tions

the

in

order

of

distribu¬

75%

will:

again be restored.
It seems to

-

these

of

me

that

the basis-

on

considerations

that

the

outlook for the property insurance

could be summarized

industry
follows:
•

(1)

not

as
•

.

continual

A

dynamic

and

growth

•-

v

steady if

in premium

volume.

In

(2)

the

public

interest

the

.

^

This

increase

in

the

risks underwritten

of

value

of about

tion in
in

were

1929 and

1950,

about

$138

fire

risks

crease

of

Department

the

yigure

the

on

value

product,

The
v

namely

insurance

con-.

by

every project
inderwrite.

■

You have

San

•aay

remember

r

(vestment

bridge

went
Yet

barm.
)

ir

down

in

the

'.ids

constant

is. investment
j

is

and

years

Narrows
violent

a

case,

the

with

as

bondholder
that

assurance

secured

protection.
shareholders

the

dous

annual

loss

yj.ny as

a

of

o.saster.

result

suffered

by in-

Monsanto

the

by

tremen¬

that

com-

result of the Texas City

The

protection

of

the

insurance
;

e

jad

contract again provided
funds to rebuild, and the use

occupancy cover restored the

;:ormal
x

operating profit that otherise would have been lost.
Such examples could be recited

it
length, but my point is probably
established in the mind of each

oi you

steady

result

of

vances

that

improvement

the
are

by some individual




occur¬

as

a

technological ad¬
constantly occur¬

an accelerated' rate in
field of endeavor!
and

Improved

Coverages

Another important fundamental

is

that the

industry itself is
developing new and

In

age.

this

connection

con¬

im¬

cover¬
we

are

the

they need
so-Palled

as

we

meet in

can

a

forum such

this and discuss the outlook for

the

industry

along

the

lines

fire companies! and casualty

panies.

As

segregation

recently

com¬

194-3

as

almost

was

of

the

complete,

catas¬

past two

market

cover.

back

come

for

into

an

One such

ex¬

com¬

class rate should always be set at
a

figure

to

overall

produce

moderate

average

an

underwriting

profit.
.

The

That

(3)

its

shareholders

continue to enjoy, as

philosophy supporting this

rate-making procedure is that it
is in the public interest for the
property insurance industry to se¬
rates

cure

quate
surplus
assure

that will produce

of
at

£

ade¬

capital and
sufficient strength to
and

reserves

all

times

and

under

all

:

waukee

Bond

Club

and

ment,

earnings.

annual premium of about

an

has

capital stock insurance companies.

During the recent spiral of in¬
flation

this

Insurance

Educations

fundamental

If any of you have had occasion
recently to review your own situ¬
ation
the

you

fact

a

tremendous

Phila.

the assureds the merit and advan¬
oresent

total

may

be

Chairman, J. P. Lewis & Co.:
is
in
charge of George

Struck,

The

Milwaukee Co., and
Loewi
&
Co.;;

William

Bosse,

baseball,

Lyle W. Hamann,

Investors

tral

Cen¬

Republic Co. and Thomas H/

Twitchell, Jr., B. C. Ziegler & Co.;cards, F. A. Newton, Loewi & Co.

edu¬

job remains to be done; by
insurance industry
to teach
of

has

regulated industries, whether
public utilities, railroads or insur¬
ance, have had reason to be impa¬

cational

tages

13

Guest fee is $10,-

information

readily appreciate

can

that

fact

in

Needed

further

its

Golf

become obscure at times.
More

eral

-

.

hold

obtained from Parris Lewis, Gen¬

investors in fair and adequate net

the

to

back

come

will

annual outing on Friday, June

able with which to pay losses. To
this must be added the interest of

$800 000

Wis.—The' Mil¬

MILWAUKEE,

had for many years been a
self-insurer, but because of the
enormously increased replacement
cost cf physical plant and equip¬
pany

will

they have in

the past, a steady growth in equity:
value and dividend income.
r

at Oconomowoc.

insuring to value under
inflated conditions.

premiums

written

Pa.—Robert V. Wehrheim, Assistant Vice-;
Philadelphia National Bank, was elected President
the Municipal Bond Club of Philadelphia. Other officers elected

President of The

While

of

in¬

to

have

Municipal Men Elect Officers

PHILADELPHIA,

for

serve

the

ensuing

year:

Ellwood

S.- Robinson

of

Aspden,

creased mofe than three-fold since

1939,. I

am

sure

that

windstorm

in

respects

as

full insurance to value.

Eastern

have mot

we

approaching the end of the time ^scratched the surface
when

more

industry will continue to improve
its only product—protection.
v

erages of large numbers that the

conditions that funds will be avail¬

op¬

ring and at

.

Chemical Company
scarcely noted
i.i

am

still

several very large industrial

of loss

the

trance

The

I

proved forms of insurance

in

that

bridges,

Personally

stantly

some "

that

assume

are

absorb

Within the

insurance

cess

respects the long-term

as

the

or

Our standard of living will

New

great bridges

Tacoma

Bay

can

consternation

investors

many

the

will prevail

a

future.

large

that the fun da-, the

past

we

own

the

They
to

before protection against

ever

However^ corporations have

Bay and you

the

bankers

when

(go

enjoy

every

to
,

Francisco

by

propose

the

future,

show

carried

*

seen our

over

suffered

you

assume

of

I

insurance

trend.

careful examination of

protection

can

we

timistic

add investment bankers you know
..hat your due .diligent research
a

if

the

banking business. As underwriters

insurance

future.

tion and the great increase of in¬
surable values to be expected in

It therefore provides an
•mportant pillar of support to the

(.he

.

industry is certain
steady if not dynamic
_cng-term growth, contributed to
in part by the increase in popula¬

economy.

requires

years

can

than

to

free

a

your

you

able

and

trophe loss.

the

provides

by the ventures of

turn

willing

smaller losses but

determine

trends

in the

the vital protection for the values
created

a

than

mentals

protection.

contract

in

statistical

perhaps better

,The industry basically sells only
ope

a

estimate of the

about $150 billion.

was

economists

of

are

that have occurred.

nomic

public, private, and
maintenance and repairs. During
the six-year period 1946-1950 the
total value

all

are

indemnity for
increased values

own

enormously

mind, therefore using your own
forecasts and projection of ecor

the in¬

new

protection

of

Commerce

of

insurance

before.

and

sense

fcruction,

•

ever

You

underwritten

of

longer

the

bil-

crease.

:Ts

provide their

than

$420 billion
three-fold in¬

Another fact supporting

where few corporations today can

the longer we. live, we need more

over

again-a

family units formed and

more

and

three

times correlates to the Department
of Commerce sales of all indus¬

tries which

the

The great

November,

1950 has now been recorded

as| the

greatest

insurance .loss since tihe
Francisco fire in 1906. Ypt I

San
do

not

fear

contradiction

in

the

but since that time legislation has
been passed in all the states ex¬

statement that the uninsured lojsses

cept Arizona and Ohio permitting
one company to write all
lines of
business on a full multiple line

sured.

basis.

have

It

is

in

another

this

of

the

fact

that

most

we

funda¬

equal to those that

were

were1 in¬

I

Another consideration is the out¬
look for profits.
In this'essential
consideration

from

insurance

all other forms of

differs

industfy.

mentally important considerations In the public interest legislation
bearing upen the outlook for the has been
/provided that in effect
industry.
Extreme changes will dictates that insurance rates
mu,st
not occur overnight, since it will
mot be
excessive, they must not be
take time to effect the
transition, unfairly discriminatory but they
but I

ing

can

on

assure

all

the

you

that it is go¬

time.

Each

fire

company or casualty company can
now
become a fire-and-casualty,

must

be

adequate—adequate

maintain the
pany and the

tract.

Robert

Wehrheim

&

Co.,

EHwood

Vice-President;

S.

Robinson

James W.

James

Heward

W.

of

Heward

Butcher

&

Sherrerd, Treasurer; Edward B. Stokes of Stokes & Co., Secretary.
The

to

solvency of the com¬
integrity of the con¬

V.

Robinson

ernors:

of

following

were

J. Brooks Diver,

Stroud

&

Co.,

Inc.

also elected to

serve

on

the Board

of

*'

Gov¬

Mackey, Dunn & Co., Inc.; Michael J. Rudolph
and William H.

Townsend, Crouter & Bodine.

Hobson, Jr.

of

DeHaven

&

Volume 175

Number 5120

...

The Commercial and Financial Chronicle

15

(2243)

Columbia Warns of Inflation

tial

as

to

the

of

success

inflationary

anti-

any

Conse¬

measures.

quently,

every
effort should be
improve the understand¬
ing of the American people as to

Seiious Worldwide Problem

made to

Assembly's four-day conference, sponsored by
Columbia Uni/ersily, explores inflation's causes and cures in
fcne

lijht of

.this

government

A

is

a

to

all

the

Inflation,

lumbia

diture

Assembly

sponsored

by

Co¬

It

was

gener-

fought to

three
sued

is¬

statement of conclusions of

a

their discussions.

The full text of

of the conclusions
discussions of the three

round

defense and mutual

the

at

second

gram,

the

cost of

committee

tial

and

bly for approval May 22.
three

the

tables

round

tion

in

different

of

oj

taken
and

better

machinery

sional

review

funds.

huge
be

necessarily endorsed and which
in

some

the

cases

others,

(1)

The

holds

bility
and

American

the

of

to

'

Assembly

is

continu¬

a

the

American

economy

and

conflict,
of

Inflation

results

wealth, stimulates class
encourages

wasteful

a

and

resources,

and economic

social

saps

arising from

economy,

the conflict between the totalitar¬

ian world and the freedom-loving
nations of the West.. The threat of
inflation

requires continuous re¬
appraisal of our national policies
and

our

of

means

out.

(3)

The

the

relative

The

take stock.

that

there

tion.
of

The
was

the

to

^answer

is

(5)

goes

period
time

good

a

sions

Assembly agreed
single, simple

problem

of

infla¬

time, it must be dealt with

the

responsibility

of

every

individual citizen to acquaint him¬
self with this
situation, for only

(6)

Government

Spending

(1) Throughout history the
-greatest single cause of inflation
has been huge government
spend¬

ing, accompanied by unbalanced
budgets generally caused by war
'conditions.
:

agreement

There

that

was

common

serious

a

infla¬

tionary threat at the present time
is

the

prospective

deficit

in

the

federal budget.

(2)
,*that

There
the

made to

"into

an

the

.be
•

agreement
should

be to

balance cash income

disbursements in the
effective

coming

This would constitute
and

powerful

meas¬

for

combating inflation. It was
prevailing view that it would

most

desirable

could be balanced

if

the

budget

through

expen¬




on

review

budg¬

federal

One

the

three

round

tables of The American Assembly
the
principle
that , the

Congress should give closer

essential

ings,

Productivity

in

system.

significant contribution to the
fight
against
inflation
can
be

type

of

eco¬

kinds

of

sav¬

any

All

debt,

constitute a powerful
against inflation. The

super¬

Public

de¬

Management

>

The round tables concluded that

is

held

ord-breaking saving achieved
American

people

since

by

techniques.

countries,«
Instability of Consumer Spend ¬
production *
ing, The—Arthur F. Burns—Na¬
tional

early
An

International

System
There

recent

attractive

to

the

individual

•

effective

saver

tool

in

international

Compensations
ments

the

further

monetization

It

commerce.

of

was

felt

that

objective among the nations should
be to get control of internalinfla-

cial banks.

tion

Picture

Once
Price
Direct

and

Wage Controls

controls

of

prices

the

for progress.

step

objective

of

at

American

r—

Institute, 350 Fifth
New York
1, N. Y.—
;

Relative Position of Small

wide expansion in production and

in

ness

the

American

Busi¬

Economy

'

improvement

direct,controls is both feasible and
desirable

brochure

Avenue,

cooperation and revival of foreign
investments could support a world¬

wages are at best a supplement to
appropriate fiscal and credit pol¬
icies, not an alternative.
Direct

rects

the

inflationary ef¬
public debt' can be

if

the

Treasury redi¬
larger part of the debt into

a

hands

of

This

edge of the

this time.

is not an

in

human

Since

well-

causes,

consequences

of inflation is

—

by

Abstract

Press,

of

of

Washington, D.

a

Jones

Rudolph

Catholic " University

rities

C.—paper.

A.

Paton
Appleton-CenturyCrofts, Inc., 35 West 32nd Street,
—

New

essen¬

York

1, N.

Y.—cloth—$4.00.

interest

and

any

oj such Shares.

.

its

accomplish that

200,000 Shares

Husky Oil Company

rates, designed
purpose.

Cooy, Wyoming
Monetary and Credit Policy

(1)

The

Federal

should

Reserve

have primary

Common Stock

Sys¬

respon¬

Par Value $1

sibility for influencing the cost,
supply and availability of credit.
This responsibility should be ex¬
ercised

so

to

as

contribute

to

general economic stability. Prin¬
cipal reliance should at all times
be

placed

on

indirect credit

Price $11.50 Per Share

con¬

trols, such as the rediscount rate
and open-market operations.
Se¬
lective

credit

controls

on

instal¬

Ccpics oj the Prospectus

ment

financing
and
mortgage
lending should be used only when
essential to supplement indirect

may

be obtained from

any

of the several under-

writers- only in states in which such underwriters are qualified to act as
dealers in securities and in which the Prospectus may legally be distributed.

controls.

(2)

Two round

that

a

eral

:

tables resolved

Reserve

Rlyth & Co., Inc.

primary objective of Fed¬

preserve

policy should be to
the purchasing power of

Bear, Stearns & Co.

Kidder, Peabody & Co,

the dollar.

(3)

In

tential

order

conflict

to
the

avoid

any

po¬

American

Smith, Barney & Co.

Stone & Webster Securities Corporation

May 29,1952.

'

As¬

sembly

recommended

oolicies

of

that

the

government lending,
loan insurance and loan guarantee

.

'

.

'

—

America

savers

In

dis¬

Shirtsleeve Economics—William

and

processes

1930

sertation

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

and savings
borrowing op¬
erations
the
Treasury should
strive to attract the savings of in¬
dividuals, pension funds and sav¬
ings institutions, by offering secu¬

institutions.

—

Iron and Steel

internal

'-stability is achieved, international !
paper.
and

International

Story of Steel, The—It-

lustrated

.

first

a

for

to

Dealing

Agreements

Bank

—

ami

BoctU

Relating

Settlements; Basle, Switzerland
paper—6 Swiss francs.

the

the debt through the sale of gov¬
ernment securities to the commer¬

as

Re¬

Payments

1947-1950,

Statistics

and

Various

with
;
•

avoid

Economic

Intra-European

ment

action in raising the inter¬

of

23, N. Y.—paper—no charge.

rather general agree-

was

Bureau

search, 1819 Broadway, New York

Monetary

that the

the

of

no

in food-deficit

large outstanding public debt
a
powerful inflationary force,

and

to

—

,

resources

to the improvement of

-

Debt

—paper

charge for single copies; quantity
prices on request.

by increases in industrial
Getting
Ready
to
Retire
—
agricultural productivity. To
end
public policies
should' Kathryn Close — Public Affairs
Inc.,
22
East
38th
give every encouragement, espe¬ Committee,
cially in the field of taxation and Street, New York 16, N. Y. —
in the development of agricultural: paper—25c.
...

rec¬

and

to,

Irvington-on-

and

including the repayment of

fense

to

Inc.,

Hudson, New York

A

controls should be resorted to only being.
place limits upon,
The Need for Public
at a time of sudden and extreme
actual
expenditures,, as
distin¬
Understanding
The prevailing view
guished from appropriations, in a emergency.
.of The American
It is the consensus of The Amer¬
Assembly was
given fiscal year.
' ::
that suspension of the majority of ican Assembly that public knowl¬

vision

Dean

—

made

Savings

'

of

Security

Assembly held that savings this

be

bring the federal budget
The minimum
goal

•fiscal year.

ure

effort

balance.

should

■and

also

was

utmost

Commission

favored

tem
of

also expressed

was

the

as

to

ernment

through
personal
understanding
the fight against inflation be

".successful.

to

the Executive Branch of the Gov¬

.can

Influence

such

to

policies courageously carried out.
is

—

Assembly for the use, where
appropriate, of citizen commis¬

minimized

",day by day through sound public
"It

Support

fect

no

System.

The

respon¬ •the

Taxation

Revenue

of

Like many crucial problems

our

Committees

in the

the

_

achieve

to

present
is

ease

-

,

inflation

harder

stability.
i

longer
it

■

serve

Federal Re¬

that, as a conscious object of
work closely with the Department est on
savings bonds is a step in policy, an international monetary
of Defense at every stage of the The right direction.
s h o u 1 d', be
re-created
It is desirable system
budgetary process as well as in its That interest rates and other terms whereby currencies will be freely
of such bonds be made
presentation to the Congress.
sufficiently exchangeable and made a more

carrying them

;;•■■■'-;■

on,

the

and

Education,

agencies should conform with the
credit policies of the

are

etary policies.

strength.

Despite the current lull in
consumer spending,
underlying in¬
flationary pressures remain. They
result primarily from the demands
our

that

Equality

Russell—Foundation for Economic

nomic

adequate
Accordingly, we

Bookshelf

University, Harriman, New York, at the second American Assembly
held May 18-22, 1952.

sibility for the defense budget set in 1951 is a demonstration of the
up a permanent joint staff—along fact that individual thrift can help
the
lines
of the
joint staff on' check inflation. > The Treasury's

(2)

upon

successfully

the defeat of civiliza¬

Business Man's

i>oard

roucy

Assembly, and Philip Young, Dean of the Graduate
School of Business of Columbia University and Executive Director of
the Assembly, shown at Arden
House, Harriman Campus of Columbia

present
cannot

(left), Chairman of the National

of the American

defense

of Congress charged With

security of the entire

world.

the

to

without

assistance.

Internal

unjust redistribution of in¬

an

come

use

Inflation

serious threat to the sta¬

Western
in

of

that inflation

and

opposed by

.

Threat

ous

were

mean

the inevitable victory of
.totalitarianism.

for

neces¬

Thorough review

recommend
;

requests

complicated

achieved

staff

by an individual
table, which are not

respect

and

budget.

tions endorsed

for

of,

ex¬

by
Congres¬

This is particularly

with

sary

of disagreement,
specific
recommenda¬

round

substan¬

by eliminat¬

program

of

areas

areas

of

the

regarding causes and,
the following state¬
conclusions, note is

In

cures.

that

savings could be made in the

they

ways,

substantial

agreement

ment

believed

pro¬

(4) Control of government
penditures can be. improved

approached the subject of infla¬
reached

but

security

ing waste and increasing the effi¬
ciency of each dollar spent.

presented to the second Assem¬
While

Failure to deal

problem

tion and

Lewis W. Douglas

(3) The Assembly supported the

American Assembly on
Infla¬
tion, May 18-22, as drafted by
executive

this

could

revenues.

tables

tie

the

should

Statement

of

burdens of the cold
being ruthlessly waged
the
freedom-loving na¬

ficient to balance the budget steps
be taken to increase tax

the statement follows:

-

.with

Assembly for the view that if ex¬
penditure reductions were insuf¬

discussions

in

support

was

re¬

the

against

There

of

human
the

as

now

tions of the world.

impairment of the defense ef¬

fort.

table

sacrifices

preserve

ally believed that such reductions
or

May 22, and at the conclusion of
round

of

war

*

Western

primarily out of
and

could be effected without sacrifice ;

University, met at HarriY.,
from
May
18
to

N.

man,

reductions.

common

the

liberties, and continues
sult

The second American
on

of

It arises

war

Problem

problem

destruction

the

.

defeat of civilization.

dealing with

World

nations

World.

tivity, and international monetary exchangeability. Maintains
inflation threats continue, and failure to deal with them could
mean

—

Inflation

,

of

means

problem..

Inflation

spending, public debt management,
and cred-t policy, price and wage controls, produc¬

monetary

r

and

ways

American

'

'

'

' '

J

16

The Commercial and Financial Chronicle

(2244)

which

subjects

Taxes

Strangling Risk Capital

well
this

only

We

gathered here to¬

are

have

securities

stake

great

a

industry

the
the

in

in

and

making
best

tions. Because
this

has

is

our

kind of
which
the root of many of
against

pressure

lain

it

at

the

tension

or

setting,
al¬ social disorders—wars and revo¬
though
not lutions—of recent history.
perfect per¬
I have just said that rises from
haps, is obvi¬ rags to riches are happily a com¬
ously the most monplace here.
As a matter of
successful
fact, I think I should have ex¬
organization
the world has
ever

to

at

seen,

least if

are

we

judge it by

pressed
and

somewhat

it

said

here,
the

were

the

and

past

differently

commonplace

a

for

reason

of

use

tense in this connection

is, of course, the unconscionably
high present rate of personal in¬

standards of

come
taxes.
These taxes,
in a
justice: sense, are in line with our egalieasy living,
tarian
traditions;
however,
in
it is important their
practical workings they do
understand how it works, not
bear particularly heavily on

social

Walter

that

or

Maynard

we

and endeavor to foster those eco¬
nomic and social forces at work
in

it

which

and oppose

I

ful.
of

favorable

are

those which

propose

to

forces

and

these

discuss
the

it

to

harm¬

are

some

ideas

or

concepts from which they spring.
Some of these concepts are com¬

plex, and controversial, and I only
have the temerity to discuss them
here

because

in

our

capacity as
we
must, if we are to
stay in business, evaluate securi¬
brokers

ties

those

who

already rich and
who may readily avoid them
by
shifting
their
assets
into
tax-

have been endowed

power,

and have received government assistance.

investments.
They do
crushingly, however, on those
are
getting rich, and by rich

I

don't

vast

mean

accumulations

wealth

successful

any

businessman.

Dr.
David
McCord Wright, the
brilliant economist of the Univer¬

as

economic

the

and

subjects, Board when he said that the in¬
humanly come tax "is not a tax on the
absolutely straight rich; it's a tax on the chances of

extent

possible,

political

that

be

it

is

and uncolored

the

kind.

at

It

by prejudice of any
this requirement for

is

straight

thinking

that

perhaps

thus

just

referred

our

labor

of

enlarge

therefore

and

few words about the effect

stockholder

common

of

a

to become

poor

their present

ful

inhibitors

rich."

rates

of

Taxes

are

social

power¬

fluidity,

makes

the

Despite
have

that
kinds

underlying
this

relations may have been, the rec¬
ord is clear that what we have

private.

things

donehas

their

some

failed to work.

have

stances

that

of

too,

with

labor

circum¬

introduction

labor-saving machinery
where

the

might

temporarily

of

use

displace

tain

workers.

In

and

objective

cer-

the

cold

view

earlier

clusion

that

labor

of

wages

erated

of

leads
the

which

the

to

steady

I

con¬

pressure

leadership for higher
stimulated and accel¬

has
the

cation of

fact,

invention

and

appli¬

labor-saving equip¬

new

duty it is to collect taxes.

By

way

we

can

Capitalistic Nation

a

of background, I think
that

assume

our

country,
despite the efforts of many "lib¬
erals"

the

over

past

wholeheartedly
in

many

so

in the

by

of

ism in

capitalistic,
that the

production
to

be

thing.
this

different

is

and
more

ownership

individuals

considered
normal

years,

respects becoming
sense

private

means

20

is

the

of

the

generally
right and

However,

capital¬

country is profoundly
capitalism abroad,

from

and this basic difference is worth

that Uncle Sam would
limit taxes collected

during

quirements
talism.

and

ference

in

government

which,

incidentally,

relatively

of

our

of

this

determines

capi¬

peculiarly

productive

Amer¬

first, that our
virtually classless,

represented

much

so

power

traded

that

are,

capitalism is
and, second, that
is

of

difference,

its

character

and

kind

by

of

our

of

widely

owned

stocks

common

which anyone may have

the

country

access

to

via

great security markets. Suc¬
stories—rises from
rags
to

our

cess

riches—are

place
often

happily

here,

and

than

ownershin

not

of

a

the

hard work and

take

the

American

diminish

of

Is

a

greatest

Europe, yet it is

assurance

that

about

capital goods industries and
for

quirement

re¬

a

ulated

This

their

from

so

new

in

on

a

particular

favorable

higher wages,
pleasing spiral.
and

sequence

its

companies,

Va, May 19,

1952.




incentives

for

capital accumula¬

corrup¬

Widespread Diffusion

in stimu¬

consequences

'

Ownership of Industry

other

only

not

higher

the

elements

in

receiver

but also the

wages,

the

productive

including the stockholder,
not really foreseen even by

process,
was

such

observers

astute

speculative

scene as

of

the

the late Lord

capitalism

accessibility
American
we

of

the

—

ownership

in

industry. I don't think

emphasize too much that
accessibility
of
stocks,
and
its
corollary, widespread diffusion of
can

ownership, give
cernible

society

in

nents

ofv

which

of

are

its

the

Sumner

years

one,

been

our

compo¬

well

bal¬
of

economy a

there

in

a

and

Slichter

and

times

dis¬

rights

various

Harvard has called
"laboristic"

best

achieving

reasonably

Prof.

indeed

the

us

means

privileges

our
are

Rich*

ysis

is

grossly oversimplified, as
any analysis of complex economic
interrelationships must be if it is
be

to

fore

understood

somewhat

a

examination
ments

There¬

have

the

past 20
when the interests of those
in the population that

consumers,

and

contributors

of capital, have come second
to
those of organized labor. A wide¬
spread
ownership
of
common

stocks

straight

with

the

thinking

stimulus
on

to

economic

collective bar¬

Probably

most

requirement

that

well.

as

If this is so,

and I

it is, then our

find out what is responsible

is to

threats

for

clear that

am

most pressing task

essential

off

cut

and

goods

seizure of
industry, and re¬

government

current

of

waves

in

hostility

this

suspicion

and

sensitive

most

field of human relations.
less

stop¬

national and local strikes

pages,
that

nation-wide

of

For,

un¬

that have caused these

conditions,
efforts to devise remedial pol¬

our

icies

bound to be fruitless and

are

indeed, make matters worse.

may,

do

I

the

principal

the

rise to power of
in

is

It

where

capital

and

be

must

available

to

the

improvements
increase

in

which

create

productivity.

Government's Assault

This capital can only come from
sources
the
undistributed
—

profits of industry and the sav¬
ings of the people. This in turn
brings us to a further basic prob¬
lem

which

and

that

sault,

via

towards
and

capitalism

the
an

government's

inimical

profits,

on

the corporate

lation

rising

if

is

to

expanding

continue

standard

inimical

are

of

to

popu¬

enjoy

living.

a

This

attitude appears in vari¬

ways,

such

as

the President's

broadcast in the steel
most

deadly

can,

they wish, shut down

unions

done

Continued

is

in

the

page

32

in short, over
question of the right to
run privately owned and privately
managed business.

National
aided

they

free

unions,

as

in

the

1935,

potent

most

in promoting their
growth and in securing for them
factor

the monopolistic powers they now

The government has done

possess.

relations
it

make

intervened

has

It

more.

in

such

a

depend

resources

in

way

as

for labor

unnecessary

unions to

and to

in

private

organizations
pub¬

behave

their

upon

own

develop a sense
and responsibility

management of their own.

know

we

enormous

power.

consider to be

to

use

constantly

are

devising the

to their power

this

ceived

attempts to curb

for any purpose.

power

they

They

they please.

as

effort

a

are

In

engaged

for adding

means

and authority and,
too,

they have

re¬

invaluable assistance from

should not be surprising that

the acts and

policies of organiza¬

tions of this character should
conflict

public

not

only

come

industry, but with the

is

It

the

with

interest and, in fact,

interests

bers.

their

of

own

failure

our

to

with
mem¬

recog¬

nize the existence of this conflict
in this country
•Summary
at

the

the

experience

of

that is at the root

an

address by Dr. Wol¬

Industrial

60th

General

Iron

City, May

and

22,

Relations

Meeting

Steel

1952.

Session

of

Institute,

the
New

expect

to

of

leaders

most

more

or¬

from

can

Washington than
hope to win through ne¬

gotiation at the bargaining table.
The most disturbing consequence
of this

relationship between gov¬
and organized labor has

ernment

been the

officials

of

use

to

high government

provoke

and laboV trouble.

it is

cumstances
the

citizens

So

of

hard to

labor

in

and

new

statutes,

the

provisions

for

settling

strikes, and the

ing

disputes.

existing

handling
about

can

as

of

have

how

see

country

this public policy
unchanged, minor revi¬

long

remains
sions

unrest

and rational set¬

expect peaceful
tlements

labor

Under the cir¬

this

of

drafting

v

government.

For

the authorities in

they

are

their

York

Federal

been, since this
country embarked on a new labor

moderation

private possession which they

of

The

un¬

place

has

the

to

This power they

the

not

the

at

occupy.

now

government

in

interests

policy with

into

could

arrived

of

which have been endowed by

It

—

unions

have

time

same

and

American

on

decisions

ganized labor have learned from

them,

the

the right to

over

the

National

in

conflict

organized

the whole

national

that way.

in

and

affairs.

do

lic

the

as

the right to make busi¬

from

to

bar¬

and they may be expected

time,
to

have

waged

This

hurt.

shut-downs

dispute, but

form

is

ness

to

scope

and keep it shut for
long enough periods to make the

man

its

ex¬

concerned

are

business

manage,

an en¬

and

interests of
our

labor

labor

as¬

attitude

and

collective

political,

policy

the

which

process

between

when¬

faces,

individual savings which

essential

ous

is

our

elaborated

objectives have become domi-

nantly

character

fact
two

Its

still

Tesent and oppose

Profits

on

this

essential industries. Unions of this

an

finance the mechanical inventions

In

single

basic and

our

rights

to

the national union

practically all of

Moreover,

sector

become

of

source

difficulties.

labor

our

difficult

it

think

not

discover

pose

is

in

gaining has come to mean some¬
thing quite different from what it
was originally
intended to mean.

know what the forces are

we

not

this

negotiate about

country.

tries

increased

and

unions

not

only in steel, but in other indus¬

are

inflation.

time the

same

be¬

does

of

the

At

mainly with enhancing the author¬
ity of unions
over
employees,
members,
business and
the

things in the fu¬
ture, whenever it serves their pur¬

but
productivity
rise, the effect is likely
to be to increase prices—the sub¬

appeal

and

ever

important
rising
wages must be supported by ris¬
ing
productivity.
Where wages
the

is

to

in order to achieve

tended to include countless issues

Leo Wolman

Prof.

tire industry

ele¬

inclined

more

gaining have

detailed

of

conscious

and

steadily deteriorated. The present
experience in steel, therefore, is

the

more

some

the spiral seems appro¬

in

priate.

of

all.

at

more

early stages of their develop¬

ment

ing systems of

the plants of an

ple

With regard to the second
point
difference between American
and
European
of

the

benefiting
of the

financial community is done, am¬

of

which

prevail¬

tory,

Yet,

become

relatively simple and few demands

his¬

longest

is

im¬

most

they show less
less inclination to bargain and

their ends.

their

prac¬

strength,

to their power

have

lations
had

unions

established

become

re¬

services,

stance

to

elements

•An
address
by
Mr.
Maynard at a
dinner meeting in honor of the Governors
of the
Association by various Southern
industrial and
utility

mond,

increasing
change

organized

The

functions.

these

of

their

and

lating economic activity and thus

important part of the work of the

are
we

be

tion.

common

This easy social
fluidity
phenomenon that simolv does

not exist in

by

incentives

more

form

would

tion, both of which, because they
make social fluidity
possible, are
socially
desirable,
and
would

anced.

stocks.

revenues,

To make this

preserve

common¬

riches

rate

a

make up the dif¬

small,

other taxes.

re¬

Two of the most important

aspects
ican

the fundamental

on

income

on

below 50%

thinking about for the light that
it throws

be wise to

man's lifetime to

a

would

I think

.

of

This in its turn has brought
not unique.
It has happened
increased activity
in the"
fore and will happen again,

ment.

and

firmly

in which

areas

per¬

they

bargaining

certainly the

national

as

those

in

and

and

collective

portant,

costly indus¬
conflicts,

*

adapted to

initially formed.
of

one,

a

trial

even

ill

nature,

were

and

great

Institutions of this kind are, by

tice

we

had

current

form the functions for which

succession of

of

machines

new

war

have

•

end

the

of the

we

leadership has

the

opposed

spoke

Since

in

here,

they exist abroad), by
largest part of the best

elements
not

the

as

the

far

remains

(and

contrast

a

about

leadership,

fact

country

inadequacies and confusions
policies, public and

of

said

labor

of

of the

for peaceful and constructive labor

power

hard

many

been

plans and hopes

our

this

practical working of
might be of interest.

the views of our
industry, and I believe are therefore un¬
Keynes; however, even the most
particularly that part of our democratic.
They
diminish
in¬
industry which is connected with centives to work, and they provide reactionary must admit it actually
has
happened and is still hap¬
the analysis of economic trends
strong incentives to corruption,
pening.
and individual
securities, of some both on the part of the taxpayers
value.
■
Naturally, the foregoing anal¬
themselves and on those whose
Are

Whatever

the most important aspects of the

and

We

management and politics.

of

some

enormous

Points out

no longer limit their
bargaining to wages and
conditions, but extend their activities to realms of

labor

the

on

by public policy with

national unions

the

to

financing,
but rather the com¬
which in turn has been paid for,
fortable
cushion
for
retirement
in part at least, via the people's
that is the legitimate aspiration
savings, which have been accum¬
of
of

carefully and objectively sity of Virginia, expressed this
as possible, and in this
respect it Well in a recent talk before ^the
is important that our
Industrial /, Conference
tfiinking on; National
to

of

have

are

sheltered
bear

who

to

worst and most violent

capitalist the world's

form of social

effort

the

unions

base

basic

our

and

resources,

shield

social

capitalist setting in which it func¬

of

use

Contending current systems of collective bargaining have
failed to work, Dr. Wolman lays blame on rise to power of
national unions in basic and essential industries. Holds national

the
"people's capitalism."

I

full

human

Professor of Economics, Columbia University

aggressively as

as

and

ownership

power

who

By LEO WOLMAN*

about

how

know

we

petition with private business.

night

rightly,

broaden the base of common stock

government com¬

scores

think

should continue

come

ownership of industry in U. S., and

Bargaining in Labor Disputes

Many of our mem¬
been grumbling,

have

the unprofitability
of
transactions in
odd lots of stock, but I think that
in
spite
of
this handicap we

full employment economy, along with higher
and generally higher standards of living without infla¬

can

firms

I

from ample application of capital to indus¬
try. Attacks excess profits and capital gains taxes as im¬
mobilizing capital and stinting industrial expansion. Sees wide

tion,

country.

ber

nard points out a
wages

assuring ourselves of a
balanced social structure in
of

ways

capitalism, Mr. May-

on

The Deterioration of Collective

the most effective and democratic

President, Association of Stock Exchange Firms
Partner, Shearson, Ilammill & Co., Members, N. Y. Stock Exch.

Urging restoration of straight thinking

ownership

such

provides would seem to be one of

By WALTER MAYNARD*

Thursday, May 29, 1952

.

.

.

writing of laws

plant seizure
little

emergency

effect

on

are

the

likely to
prevail¬

of events. Public policy
legislation, if they aim ef¬
fectively to protect the public in¬
terest, must go directly to the
course

and

of

source

istence

our

and

troubles—the

spread

of

ex¬

powerful

private labor monopolies, subject
to

little

attitude
or

in

or

of

their

no

restraint

in

government, the
own

view

of

rights and responsibilities.

the

law,
their

Number 5120

Volume 175

.

.

The Commercial and Financial Chronicle

.

Bad Investments
By ROGER W. BABSON

Mr.

Babson, asserting too

many

can detect bad
by studying balance

think they

persons

investments

sheets

and earnings

deeper

company's man¬
agement. Says young people, es¬
pecially need to realize import¬
of character in investing as
well
E.

in

as

securing jobs.

Harriman

H.

or

realize the

greatest railroad
ter
Incidentally, he was the

in

merly Ambasto

character by

home

N. Y. Investment Ass'n
To Hold Annual
New

Hollow
for

is

and

Outing

(Special to The Financial Chronicle)

its

annual

Sleepy

V. Bailey has joined the staff of
Waddell & Reed, Inc., 1012 Balti¬

will

hold

Country Club. Foursomes
be made up at the

more

that

the

cost

will

served

the

of

be

also

$1.50

Hagelstein

E.

on

away

person.

has

Ark.

-

the

on

mpcratic

ticket.

Once,
riding in

"when
the

father's

private

car,

is

I

"What

asked:
the

most

important fac¬
in

tor

Roger W. Babson

i

vestment?"

g

He replied:

ter-of--the

select-

a

good

railroad

•

.

n

"Charac¬

Management.

Management

make

can

Good"

profit¬

a

able railroad from- two

of

streaks

rust; while poor. Management can
turn
a
good railroad- into two
streaks of rust."

life

in--■

-•

mmm

"'i'k

.

Selecting Good Management
I then

thought that by studying
capitalization
and

the " location,

earnings of

railroad it would be

a

possible to tell
from

good investment

a

bad investment.

a

-

Unfortun¬

ately, I have since found Mr".,Har¬
riman to be correct.

who' at

many

think

they

There

the

are

too'

time

present

select good invest¬

can

ments and detect bad investments

by

studying .earnings

statements

other statistics, for the col¬
lecting and analyzing of which I
now
spend a million; dollars
a

and

year.

..

.

Such

figures

Every careful

valuable.

are

person

mWM

should study

v't?

-

balance sheets and earnings state¬
ments before investing hard-earn¬
ed money
From

in any stocks or bonds.
experience, however, I

sad

have learned that such figures,

though
little

recording .the-past,-

indication

future

will

losses,-

one

what

to

as

bring forth.

al¬
are-

the

To avoid

must look deeper. The

future depends upon the Manage-.
ment. Not only does the character
of
Management change as new
men

elected, but Management

are

will

deteriorate

the

under

same

who stay too

men

long, or become
careless.
Unfortunately, the re¬
quired information to judge the
character of Management cannot
be

secured

from

manuals

v

per¬

sonal

contacts

An

confidential'

and

entirely
service

tance

studies.

California from Englewood, N.J.
•

new

is

men

as

in that

city

now

certain distant

assistants, rather than

my

statisticians

economists.

or

but the popular

It's

A few

trained newspaper men are useful
in
detecting bad managements;

banks,

thousand

Ten

I have almost reached the point
where I must employ retired FBI

policy of leading

insurance

companies, and
investment trusts to depend upon

^

This

kind of Long Dis¬
being tried in

Long

now

Englewood, New Jersey.
Importance of Character

•

*

••.

<-<<<<<<<<< < < 4<<<<<<<<< << <<<

and

magazines, but only through

She's dialing

are

to

local

a

of

eleven

of putting through
is another ex¬

calls

way

Bell System people

constantly planning and building

provide

you

First

do and faster. Just by
three more digits than
call, they can reach any one
million telephones in and

around twelve cities from

comes

with better telephone
the

idea.

actual

coast to coast.

manufacturing

Next the in¬

trial in
possible,
the extension of the improved service
to more and more
people.

venting,

use.

Then,

and

as soon

as

so-called "investment analysts"

dangerous practice.
graduated

is
Colleges have

hundreds

of

these

in¬

vestment

analysts and they hold
today.
They are honest
hard working young men, but

such jobs
and

very

few of them

can

forecast the

future of
on

a corporation
by relying
published reports.

To
on

prepare

the

poration,
the

worthwhile

management

it

is

of

reports

any

cor¬

to

visit

necessary

plant and talk with the offi¬

cers,

directors

and

employees.




HELPFUL HINT

—

Keep

beside your telephone.
you

Call By Number.

a

list of Long Distance numbers handy

Out-of-town calls
BELL

go

through faster when

TELEPHONE

SYSTEM

-c

<^

service.

points.

two or

on

way

ample of the

-

telephone customers
dial their own calls to

easy to

dialing

new

Distance

Henry
Henry

Avenue, to engage in

the securities business.

nomina¬

e

—

Hagelstein Co. with offices at 721
West Spring

tion for Presi¬

D

the

Governor

formed

who

dent

a

Hagelstein Co. Formed

Cox, partner in
Winthrop & Co., passed
May 20th.

Robert

luncheon

per

member of

Board last year.

HARRISON,

Joseph E. Cox

Joseph

made

a

past five years and was
first elected Vice-Chairman of the

Avenue.

.

is

been

for the

golf will

Announcement

with

.

June 27 at the

Association

has

Exchange since 1931,

seeking

now

the

He

Waddell & Reed Add

outing.

importance of charac¬

connection

on

DETROIT, Mich.—The Detroit
David Scott Foster, partner in
Exchange beginning June the firm of
Pershing & Co., has
2 will extend its
trading hours been re-elected Vice-Chairman of
to 2:30 p.m. daily.
Previously the Board of Governors of the
the closing was 2:15 p.m.
New York Stock Exchange.
Stock

KANSAS CITY, Mo.—Catherine

York

outing

Foster Re-elected

Extends Trading Hours Vice-Chairman of NYSE

of

Investment

The

Exchange

or

colleges.

even

Detroit

big business
These are but

money

Rus¬

sador

sia

from

fruits of character implanted
by praying parents, devoted school
teachers, ethical employers and
good neighbors.

securing
and holding jobs, as well as in
present W. Averell connection with
the investing of
Harriman, for¬

father of the

savings.
The
America today came

of

the

Young people especially need to

America's
builder.

of their

not

out of existence.

probably

was

strength

life,
children,
churches,
schools,
liquor,
race
tracks, and other general subjects
than by talking about their own
company.
Readers should know
that there are today over 750,000
corporations whose stocks have
been bought or sold and are now
a total loss, the companies passing

and investigate a

ance

more

discussing

statements,

investors must look

warns

learn

hard-earned

their

Furthermore, these men need not
judged by the answers which
they give to your questions so
much as by their language, ethics
and basic principles. When inter¬
viewing men high up in the man¬
agement of a corporation, I may

be

17

(2245)

,

^

fC-.

The Commercial and Financial Chronicle
18

f

.

Thursday* May 29, 1952

.

(2246)

Civil war, terror,

people

CanWeUpset the Russian Regime?
By ADMIRAL ALAN G. KIRK*
Former U. S. Ambassador to the

Soviet Union

Moscow, asserting the Soviet regime is
crumbling on the brink of revolution,
holds we can gradually reach the Russian people themselves
and influence their attitude toward us. Urges we address our-—
selves to the new generation in simple, human terras, show
sympathetic interest in their legitimate aspirations for more
free and prosperous life, and disclose that our quarrel is .
:
confined to their despotic rulers.
y.;>Y j v,,
Our former envoy to

neither

,

impregnable

nor

since

coming

back

this question

Moscow,

from

"Rudeness"
"Rudeness"

.

has often

There is another

in the

lective farmers

"Can

me:

we

reach

story

must do is

we

define

to

our

Stalin.

the

ask

of Old Russia were.

through
viet

thinkable

So¬

The

jamming

Adm. Alan G. Kirk

into the hands
'

Soviet

of

oc...

iU

troops;

cupation

there addi-

are

tional methods for getting under,

through and over the Iron CurOthers, however, are really

tain?

asking whether we can attect the

thinking and attitudes of the Soby what we say.

viet population

In other words, can we influence
them?

Perhaps

the, question then di-

(b)
The

its capacity.

.

we intend to build carefully,
thoroughly, but always with this

reach the peo-

be consid- world of push-button revolutions,
ered more or less a mechanical engineered
by American-sponone, and possibly it is inexpedient sored
radio broadcasts, and we
to say much more than that there don't intend to risk the lives of
are
means
which
hold
enough brave men by irresponsible apfhe Iron

Curtain

may

peals for revolts that would be
quickly crushed. To do a serious
job, we must begin with a mature
understanding of the strength and
weaknesses of our adversary—-the
Soviet dictatorship — and of the
doubts, fears and aspirations of
the Soviet people, our potential
ally.
Having just spent the better
part of two and1 a half years in the

promise to justify the effort. The
spoken and Written word most
likely can reach enough citizens
the

of

Soviet

effect.

Union

have

to

an

Whether its further propa-

gation within that vast area is
possible, remains to be seen. But
it is not unreasonable
that messages

to

assume

of real importance

-

will

travel—sometimes

fast

and

£ljP.

Soviet Union, I know

Jamming Discussed With Stalin
The

how

complex

more

can

we

that we are
impreg-

dealing neither with an

nable colossus, nor with a crumbling regime already on the brink

question is

influence

the minds

and hearts of our Soviet audience,

of revolution.

.Back in

Let us begin by understanding
that when we distinguish between
the 'Soviet
oligarchy and the
people, we merely recognize the
principle
that the
Communist
rulers themselves have steadfastly
proclaimed. It is they—not we—
who have always insisted that the
Party
(whose
membership
is
never more than 2 to 3% of the
population, and often considerably
less) is the sole fount of wisdom,
the sole judge of what is right
and wrong for two hundred mil-

August, 1949, when I was
treceived by Stalin in the Kremlin,
the subject of the jamming of the
Voice of America broadcasts was
raised.

The Soviet dictator turned

To

Vishinsky to ask: "Are they
raying rude things about us?"
*
"Yes," was the reply, "very."
.

"And are we blocking them?"*
wYes," said Mr. Vishinsky.
Then turning to me, Stalin said
that this
died

was

matter to be han-

a

by the Ministry of Foreign

Affairs.

-

Now the

point of this story is

The ready assertion by the Soviet
authorities of their own right to

prevent the peoples of Russia from

hearing any sort of news from the
outside world. "The Masses" must
only hear what the Kremlin dares
let them hear.

thoughts

that

There must be
are

not

those

no

the

Ccmmumst Party wishes the peo-

pic to have. Therefore, everything
fTool the outside world, written or

spoken,
insofar

to the people—
the police state can in-

is denied
as

No

£U?e.

newspapers,

periodicals,

magazines, movies, posters, radio
broadcasts can cross the frontiers
—if

the

and

their

Politburo
control

can

is

May 7,

.

Admiral

prevent—

very,

very

Kirk

before

Club, New York City,

1952.




ultimate capacity to shape

a

.

,

of

very

friend and ally in preventing war.
There is certainly no evidence to
date

that

want

to

the

peoples

Russia

of

fight

a war against the
peoples of America and Western

Europe. We should certainly strive
to .support this attitude and do

better everything in our power to
vince

future for themselves,

them

feelings

that

of

con¬

have

we

only

and

sym¬

friendship

.

pathy for them.

Psychological Obstacles
Let us recognize, however, that
we face formidable psychological
obstacles. While intelligent people

Y^-

the

•

Pacific to

help

them do

it.

Outside Contact
Moreover, the Soviet press and
third vital factor is that radio constantly turn out a stream
since 1941, many millions of of stories about our so-called
Soviet civilians and soldiers have brutalities, our bombing of decome into personal contact with fenseless cities and villages, etc.
the non-Communist world. At one
,jhe real purpose of this propastage of World War II, the Axis ganda is plain: It is not meant
armies held territory containing nearly as much to instill sympathy
about 40% of the entire Soviet for the Korean people as it is to
population. Millions of these_were piant the insidious idea that we
deported, together with Soviet intend to wage a war of extermiwar prisoners, to work in German nati0n against the cities and vilfactories, mines and farms. What- lages of the Soviet Union. How
ever new hardships they suffered much of this the Soviet citizen
here, these millions saw with their believes is not entirely clear, but
own
eyes
that workers 9nc* some pf it does sink in and creates
farmers in other countries, in- fear and suspicion of America,
eluding Nazi Germany, lived bc.tr
Sometimes, some of us here in
ter than they did. They discovered America are unwitting accessories
that the Kremlin had been lying to the Kremlin's anti-American
to them for many years with its propaganda. A public statement
propaganda accounts of unlimited is made or a news story is pubmisery in the "capitalist" world. ]jshed advocating preventive war
After the war, more than five the dropping of an atomic bomb
million of these Soviet citizens pn Moscow, and the like. Quite
were repatriated; including over naturally, Soviet .propagandists
two million who had come into reprint these stories, stressing the
direct contact with American and more iurjd parts; and serve them
British troops.
up as pr0of of America's sinister
The

Similar

eye-opening
experi-.. intentions. And while'you and I
shared by Soviet of- know that statements and stories
ficers and men who fought their of thi$ nature are a comparatively
way
int0
Bucharest,
Prague, rare phenomenon in this country
Vienna, * Budapestand
Berlin, .the Soviet citizen is given the imHere they also saw that the aver- pression that they occur dailv and
age man in "the non-Communist hourly and are representative of
world
enjoyed higher living the attitude of American public
ences

were

standards

seemed

and

less

fear-

the'population of the
TJfnion. Red Army men who

leaders

and

the

American

press,

We should also be

clear, in oqr
minds, that it is not our func¬

own

tion

instruct

to

the various

peo¬

ples of the Soviet Union how they

Soviet

Party members who disagree.

Grist for the Kremlin Mill

met

troops

have

a

something of
the outside world. To judge from

vast moral gulf divides the Soviet

against the dictatorship which has
caused them so much suffering

the unanimous testimony of recent

Whep

we say,

therefore, that

seen

and bloodshed. But when the So¬
escapees, as well as from the ex- viet press and radio reproduce irrecognize Soviet
reality as 34 treme police measures the MVD responsbile attacks by individual
years of Communist dictatorship employs to reduce their outside Americans against "the Russians"
have, fashioned it.
contacts to the minimum, these —attacks which disparage them as
Now let us look, for a moment, new
impressions
have
had
a a people or describe them as "Slav
at the people. What are they like? powerful
psychological effect on barbarians" bent on destroying
Three important elements stand the troops.
Western civilization—it is not surout in my mind as a guide to what
Thus we see that we are not prising that they become uneasy,
rulers from

the masses,

we

only

can—and cannot—do when

we

dealing with

speak *0 them. In the first place, muzhiks the

Soviet

country

of

Union
tough,

today

is

a

country of illiterate suspicious or even hostile.

If

vital,, young

Kremlin

with

tells

them.

Instead

we

requires

the

The
the

American

Liberation

for the sake of sheer self-preser-

united

Russia

intends

united action.

Soviet

Committee

of

for

the

Peoples of
promote that

to

We intend to

and

escapees

help

democratic

exiles of all nationalities to work

together

in
the

effort,
enemy—the
Communist dictatorship. We in¬
tend
to
help them reach their
fellow-countrymen on a program
against

common

a

common

that appeals to basic human values
and

rights.

Our goal must always
aspirations for a

be to reach those

freer

and

better

life

which

the

overwhelming majority of the So¬
viet

population.

Russians no less
others, share with the free
peoples of the world.
than

NYSE Elects Francis
Public Governor
Keith Funston, President of the
New

York

ence

Francis

the

of

Stock
the

announced

Mr.

Exchange,

election

of

has

Clar¬

Public Governor

as a

Exchange.
Francis

is

Chairman

of

General Foods Corporation. He is

also

director
Bank

serve

of
of

the

Federal

Re¬

New

York, The
Mead Corporation, Air Reduction
Company, Northern Pacific Rail¬
road and

a

trustee of Mutual Life

Company of New York.

He succeeds Thomas S. Nichols,
Chairman and President of

Mathieson Chemical Corporation,
on the Board of the Exchange.
Other

Public

Exchange

Wriston,

are

Governors of the
Dr.

Henry
M.
of
Brown

President

University, and Gale Faulconer
Johnston, President of the Mer¬
cantile-Commerce

Bank

&

Trust

Company of St. Louis.
The

office

of the Stock

in

1938

of

Public Governor

Exchange

was

created

to

bring to the Board of
Exchange a closer under¬
standing of the public viewpoint
the

and

interest.

The

Board

is

com¬

posed of 28 other Governors, plus
the

president and Chairman.

E. L. Alexander

our

200,000,000 purpose is to rally them behind
a robotswhobelieveeverything the~their Georgian dictator, Stalin,
nor

undertaking
action of all.

Insurance

ridden than

Anglo-American troops in the
There is still another type of
lion people. When we look closer, spring of 1945 were exposed -to American utterance that unintenwe discover that higher still it is an even more virulent infection, tionally
supplies
grist
for
the
the Central Committee, then the. Only the blind among them could Krqmlin mill. That is the careless
Politburo, and finally, the aging faii to contrast their status with invective against "the Russians"
Mr. Stalin himself who decides that of the average British soldier as such, when the Stalin clique
what is right and wrong for the and American GI.
is really what is meant. The RusParty. The purge is the dictator's
since 1945, many hundreds of sian people
have more reasons
instrument for disposing of those thousands of
Soviet
occupation than we can tally for resentment

we

•An address! by
the Overseas Press

bolster their confidence in their

cannot op-:

complicated
factory
and
t0ols, pilot jet planes or

work in laboratories. But this new

•

simple democratic objective in
view. We don't expect to accomIn order'-to influence them?
Plish miracles overnight. We don't
problem of getting, through intend to operate
in a dream
we

will gradually

not accept as

the utmost limits of

two parts:

(a) How can
pies of Russia?

we

the friendship anti¬
the Russian people, who
well could be our greatest

trust

.-r

;

mdes into

them, we prove beyond doubt that
our quarrel is solely with their
despotic rulers,

Our aim rather should be

to .encourage

final knowledge has also enabled the in Moscow, Leningrad, Kiev and are to
arrange their relationships
any such dictum, and we do not
people to read classics of Russian Odessa take Kremlin propaganda toward each other. That is their
believe "the masses" inside the and world literature, whose moral with more than a grain of salt, the
business, not ours. There is no
Soviet Union are prepared to ac- values are diametrically opposed constant hammering home of cersurer way for Americans to arouse
cept it, either. Since the peoples to those of the dictatorship. The tain themes does leave its mark.
new
resentments against us, ra¬
ruled by the police regime are writings of Russia's humanitarian The Kremlin has not yet taught ther than
sympathy, than to med¬
currentiy inarticulate, we hold it nineteenth century literature, the population to hate Americans, dle in such matters. The
demo¬
.g never «rude» for us to speak the which are far more popular than but many of them do suspect that
cratic principle of self-determina¬
truth
tQ oppose tyrants, and to the tedious tracts of Leninism- we harbor aggressive intentions,
tion by the peoples concerned is
extend friendship, sympathy and Stalinism, are stimulating inde- Since June 25, 1950, Soviet propathe only sane guide we can follow.
^ tQ their victims.
And that is pendent thought and reflection ganda has told them every single
Before that right can be exercised,
precisety what the American Com- among intelligent young people— day that the South Koreans athowever, the common adversary
mjttee for the Liberation of the and there is little the Kremlin tacked the North
Koreans and
of all
the Soviet dictatorship —
p^0p|es 0f Russia intends to do. to can do about it.
that we came 6,000 miles across must be defeated. That formidable

get

we

printed matter

right.

that illiterates

reason

farm

Party is always

for

curiosity

knowledge. The regime has had to
education
for
the simple

regime.

a

insatiable

aimost

erate

such

read—and they have an

now

the press are un-

under

Now we do

broadcasts,

of

can

a sym-

actions in the world and towards

can

The power

and freedom of

break

we

est. If we constantly-show

accepted by whose parents, or at least grand- "reach" them and influence their
the way of parents, were mainly uneducated, attitude towards us. We will also

was

of a dietator must be absolute; otherwise
he falls.
And freedom of speech

Can

,

factor

Such must be

well known.

in.

mechanics

such

further

without

And

should always stress the very
our actions and

we

words.

pathetic, interest in their legitimate aspirations for a freer and
more prosperous life; if by our

big

second

Since that is clearly not our aim,

the peasants fill)—they will listen with inter- opposite, both in

once

dictators, for criticism of a dictator
cannot be permitted — as is

question are
thinking pri¬
marily of the
volved:

he.

question,

Some

terms.

who

said

closer to the

are

rest of society than

terms—steering clear of pedantry,
dogma and counter-dialectics (of
which they've had more than their

existed between the educated middle class and the backward
masses
has been largely
eliminated. Workers and farmers

lesson in this

too: the instant reaction of
the peoples of Russia?" So I think, Vishinsky
to the word "rude."
the first thing
"Yes," our broadcasts were rude,

l*een asked of

to an industrial basis,
countryside, the col-

peasant

is that
about 85%
of the population is
now literate. The difference that

,

,

want them to believe

we

»

a

Even

The

Ever

famines confront a young, hardy people— vation; if

decimated only the hardy survive—among that they must prepare to fight
"the older generation. The former whom are millions who carry America with the same grim de¬
aristocrats,
landowners,
indus- some real image of the outside termination they demonstrated in
the war, against Nazi
trialists and middle class are all world, and have transmitted that
Germany,
then we should, by all means,
gone. Today the average age is
image to relatives and friends,
conduct all-out propaganda against
somewhere between 31 and 35—
These are some of the positive
"the Russians" rather than
against
a new generation that has sprung
elements which give us sturdy
the Soviet dictatorsnip.
We will
largely from the soil and the city foundations on which to build. If
earn
the Kremlin's thanks.
factories. In the process, the coun- we address ourselves to the new
try has been moving rapidly from generation
in
simple,
human
Encourage the People
and World War II have

JORDAN,, Mont.

~

Opens
Edward ,L.

Alexander is engaging in the

se¬

curities business from offices here.

Number 5120

Volume 175

.

.

.

The Commercial and Financial Chronicle

(2247)
draft

The United Nations Can

Covenant

would

destroy

freedom of the press in

Destroy

The

first

standard

Freedom of the Press

which

is

that

above

that

with

national

freedom of

of

is

the

58

year,

America.

any

other
in

me

insatiable lust

an

for power, Senator Bricker attacks draft covenant

rights

destroying freedom of the

as

'

Committee.

18

appear

of

Association

read

amendment

Covenant.

the

you

"In the

seeking to force nev/spapers to further its activities in
political, social and economic fields. Warns against being
deceived by "pretty language in UN documents dealing with

gency

the

is attempt¬

universal thought
That is
the
terrifying

to

impose

control.
conclusion

which

the

American

terfering

in

regards

all

newspaper

formation

media

semination

and

legal pro¬

fessions
from

UN

draw

of

various

The

take

in

of

dangerous
these

for

draft

United

The

John

W.

Bricker

Or¬

tions"

auspicious

midwives in attend¬
at the early age
six, and in spite of some worth¬
But

of

now,

while achievements, the UN seems
destined

for

of those

permit

the

UN

seeking

a cure

UN

-nq.t

demise.
I
who would
die without

early

an

one

am

to

.

by

a

type of propoganda which repeats
nauseam that the. patient was
never
healthier.
At
the
other

which
ness.

seek

by

...

ill¬

its

of

cause

i.

to

in¬

of nostrums

dosage

the

are

been

'•

of
the United
which I assure you has
casual, is that it is suf¬

disease which af¬
bureaucracy. It is an

fering from

a

flicts every

lust

insatiable

When
national bu¬

for power.

this disease infects a

people,

the

reaucracy,

assuming

they are free, use the sovereign
remedy of the ballot.
The power
ambitions'

ways

the

of

own*

our

in

curbed

are

cracy

Paragraph

authorizes

gov¬

impose
undefined
liabilities and restric¬

the press in the follow¬

security, public

the

protec¬

morals,

or

of the rights,
freedoms
reputations of others."

there

If

is

or

of

suppression

any

know

India,

what

during

represented

it

the

might

time

be.

she

was

the Human Rights

on

which endanger "pub¬

newspapers

lic

order"

criticizing

by

governments.

No

lawyer

foreign
would

like to try to prove that the Con¬
fiscation of "La Prensa" was not

necessary for the protection
of
Peron's
reputation.
The
words
"national security," as President

bureau¬

countless

by our Constitution and by
rights
and
the
machinery

shows,

year

iron

an

used

be

can

curtain

to

draw

almost

around

species ef information

every

barrassing to the party in
To say

that

imperil
public

free

a

the

communist

(or)

draft

extend

radio

Covenant

President

the

to

of

the

perfect
sooner

most

was

to

read

a

For

an

magazine
with

would

The

give
which

power

the

.

a pub¬
sent to jail for

dealt

Peron.

was

convicted

was

found

The

final

State

em¬

power/

defense

position

Department

Supreme

Court

would

any provision of any

authorizes

is

what

because

of the press

Leaders

and

American
studied

issues

of

constitutional

than

remedy

and

one

which will be used ultimately
ourselves
to

others

and

in

by

draft

Nations

of

this

loophole

instrument

>

amend

the

Constitution

certain that

mine
ican

the

no

to

the

Feb.

On

of

7

hatred

and

to

make

the

national dig¬

peoples

or

prejudice

States,

promote

or

against

against

or

persons

different
race,
language,
religion,
or
philo¬
sophical conviction."
or

Amer¬

this

of

offend

of

other

make

treaty will under¬

freedoms

people.

to

prejudice and in their

tion of false or distorted reports

which
'

is

following

thereby to—
Counteract the dissemina¬

"(d)

unconstitu¬

course,

draft

and

nity
of

judgment,

of

of

groups

of

Covenant

the

vague

Human

the

Rights

be

can

used

response

Covenant

on

'

and

Right
that

Correction.

of

establishes

repeated usurpations of power.
you believe, as I do,

Therefore, if

that the United

form

Nations

can

vital role in easing world

a

tensions,
within

will do everything
power to keep the

you

your

international bureaucrats in
mand

per¬

from

exceeding

com¬

their

au¬

thority.
The

United

Nations

grab

has appeared in two
closely allied forms.
First, the
generally disregarded the

it. establishes

the

of

freedom.'

The

that

Constitution

States

of

the

intended

was

to

lower standard
to

is

tyranny.

an

open

We

the

of

human

upon

which the

world

and

liberty

may

the

promote respect for human rights
and fundamental freedoms."
The
Convention also recognizes for the
first time that a foreign govern¬
has

ment

a

right

rection

false

again,

it

what

of

The

press.

cause

as

treaties

two

tioned

because

many

export

freedom.

tyranny?

In

we

would

Would
my

"yes."
*An address

the

May

by Senator Bricker before
Blue. Pencil
Club, Columbus, Ohio,
18,

1952.




5,267,881

Total Taxes
Net Earnings

.............

Net Earnings per

Common Share

Total Taxes per Common

Share

The

•

State

defenses

to

j

Department has two
the

charge

...

.

.

.

$3.58*

or

as

previously
its

teeth

sharp.

Share Owners'

22.68

Equity per Common Share...

on

Continued

the

part

of

on

page

35

ELECTRICAL WIRES

$35,142,901
........

ROME

1,922,136
......

that

Plants:

the

TORRANCE, CALIF. ;

.

gggj^a£S55r=—-1

SALES

ROME

OFFICES

AND

.

NEW YORK

WAREHOUSES

IN

$4.56*
6-93

.......

CABLE

ROME, N. Y.

4,497,358
2,575,222

........

481,752 shares outstanding compared to 406,638 shares in

♦At March 31, 1952 there were

PRINCIPAL

not

Neveribe-

there is much opposition to

10.93

......

men¬

are

convention

March 31, 1951

v.

perfect

less,

1,753,651

we

studied the problem, the answer is

membership in the UN.

7,021,532

.

By approving the proposed

import

more

this

of

That

have approved

a

News-gathering Con¬

vention is less objectionable than
the

$42,657,848
.

by

Here

newspapers.

Fiscal Years Ended

.

•

have noble aspirations

we

signed to develop

March 31, 1952

.

be

to

reports

couched in beautiful language de¬

peace

prohibits the UN from in-

not

deems

distorted

or

CONDUITS

Income before Taxes

the

United States in seeking the cor¬

CABLES

cal¬

judg¬
ment, and in the judgment of most
American
lawyers
who
have

would

enlist

to

support of the Government of the

OF

Net Sales

prin¬
have a

correspondents

MANUFACTURER

well depend.

not

article

invita¬

disregard the unalienable
rights of other peoples without
renouncing all claim to that moral

7, of its Charter.
In the absence
(7) the Uftted States
our

Any

lously

provisions of Article 2, paragraph

Senate

mini¬

cannot

Human Rights Covenant

of Article 2

United

set

standards of freedom.

mum

tion

mini¬

this -argument is

in

for leadership

power

UN has

that

the

This

the

to
report
facts
"without
discrimination
and
thereby to

liberty

on

place

A third UN press proposal is the
Convention on Gathering and In¬
ternational Transmission of News

in America, it is sick¬

standards

mum

fallacy

to

a

legalization of

a

of

Department, I am
has denounced

,

however,

provisions

American

"without

tent

tional.

remedy,

the

in

proper" context

history, of the United States

The

the

comments without malicious in¬

treaty

any

of

press

Nations

manner:

might.. subject a
constitutional

held

the

United

5

Of

example

obligates each state to

facts

'

been

best

make

of

Article

reports

an Act of Congress.,
How¬
this remains an undecided
question
of
constitutional
law

ever

to-

Freedom

on

the

UN

take steps to insure that the press

reso¬

as

has

is

The

more

same

of

fields.

desire

of

in political,

Convention

Information

It is true that the

provision

Freedom

on

duty

ever,

no

action

by the

the press under the same type of
governmental control.

activities

economic

and

a

since

of

the proposed
Convention on
Freedom of Information.
In my

social

United

exists

in the

sort

legalized

security,

safety"

The Covenant is defended

ground

action

report,

ciple

the

Covention

test

hew

the

be

State

to

the

further

policy.

Court

fails to

is

Convention

to

members, agree that there

treaty to the

That

would

convention

ciation

Supreme

he

The Press

They, and the
overwhelming majority of Asso¬

lutely plugged.

if

iso¬

S. Proposals Regarding

years.

constitutional

Depart¬

him from the

Running through all the United

Bar

which must be promptly and

Peru.
which

Nations press proposals is the idea
that newspapers should be obliged

these

for

the

save

'.

international
law

State

and

the

in

party line.

an

four

service

in

an

'

a treaty to
prohibitions.

the

Mr

Aim of U.

invalidate

have

of

splendid

lationist, label

stitution would permit

Association

know,

to the UN

the

Constitution

wise

his

ment will

During the past year. I
have explained many times how a
literal interpretation of the Con¬
its

power was

prescribes

available

publisher
his

to

,

an

"Life"

harshly

The

endanger friendly
between Argentina and

relations

The

forbids.

supersede

I

as

out

happy

treaty which

the

treaty-making

So

Senate

of

that

pointed

iso¬

nor

Mr.

was reluctant to
assert at
his worst of all press conferences.

the

he

Disregarding the effect

draft

later to

or

example,

which

Eva

au¬

newspaper

dictatorship is to deny

grounds is

tyranny.

to

reporting leads

lationist, old or new. But neither
his, -demonstrated legal wisdom

news¬

stations.

which

for keeping ening to see representatives of the
United States voting in the UN to
power in the people.
While the
sanction the oppression of people
American people are able to curb
less fortunate than we.
bureaucratic excesses, they have
no
right to withdraw from the
Attitude of State Department
government to which they, are
The State Department admits on
subject.
With an international
organization it is different.
The occasion that the draft Covenant
UN is a voluntary association of is an inferior product in compari¬
sovereign states.
Withdrawal is son with our own Constitution.
it

which

It

therefore,

wrecking

its fundamental purpose.
To per¬
mit the press to be controlled on
such

Nevertheless, the

does not

press

"national

order

might
and

papers

in

that the

-

complex

information which cannot be jus¬
tified under such language, I do
not

thority

per¬

a

article from

form

new

a

speech by Mr. John Foster

Dulles

Truman

Truman's censorship order of last

diagnosis

My

Nations,
not

to

UN

the

creasing

who
health

those

are

the

ex¬

,

C.oue

ad

restore

on

best

Commission*' -amended her Con¬
The stitution to permit seizure of

for its illness.

will not be cured

extreme

the

or

diplomatic
ance.

press

Covenant

is

order, safety, health

for doing good,
quarreling among the

with less

the

for

greater potential

press.

Dulles has not been called

treatment

of

tion of national

started life in more
circumstances, with a

organization

sincere desire to develop

fect

reprinting

as

Constitu¬

have

may

a

was

the

or

which endanger friendly relations
with other nations, they

lisher in Peru

dan¬

a

are

prejudicial

or

despotism.

plug

Nations.

reassuring,

which

reports

powers

The

"(if necessary)

international

No

lt?45.

in

the United

I

eliminate

to

of isolationism aimed at

The Truman Threat of
Newspaper
Seizure

and

regulate

to

"new-isolation¬

as

efforts

described

are

the

in

order

false, distorted,

draft

ing vaguely defned circumstances:

ganization was

tion

-

I

to

Information.

to

on

majority
Association

gerous-loophole, in

this Cove¬

what

newspaper

altering the Constitu¬

article

"penalties,

Nations

or

that

ernments

Rights.

born

of

3

Human

Our

like-minded

about

in

press

far

of the draft Covenant.

Co venant
on

ists."'

of

the

When gov¬

press.

undertake

tion.

draft

Rights

II of

Bar

gen¬

free

a

capable of

American newspapers have con¬
centrated their fire on Article 14

the

is

UN

nant."-

Part

.

The

same

reaction

and

been

described

are

derogating
obligations un¬

its

'The

an

of

ernments

Truman's refusal to
deny that his
so
called
inherent,
emergency

ample of this dangerous trend.

pro¬

posals
UN

the

Human

.

American

Bar

tion

treaty is
the
achieving these

multilateral

the

for

Utopian

accorded to freedom

informa¬

dis¬

.

by

measures

from

has

State

a

having the

expected.

proclaimed
...

Judiciary

American

-

recommended

Roosevelt

persons

emer¬

has

subcom¬

a

Senate

The

purpose;

Mrs.

state of

a

the

words.

laudable objectives.

But
these
objectives
can
be
achieved only through the opera¬

ideals.

its

illegitimate ends.

of

eral

in

away

of

beautiful

are

express

recent

concerned

tion. The most

II

me

Wednesday before

These

They

To my mind, the most
shocking
incident which followed the seiz¬
ure of the steel
industry was Mr.

with

freedom

the

knowledge and in¬

of

mechanism

for

instruments

as

promotion

proposals

essentially

matters

within the domestic jurisdiction of
its members.
Secondly, the UN

of

case

officially

....

der

The United Nations

Part
let

joker tucked

authorities

may

»

freedom of information."

ing

in

Now

14

next

Resolution

mittee

Article 2, paragraph 1:

UN of

-

and

to

human

on

Both

-the

:

in America. Accuses

press

18.

Article

Asserting United Na'iops is suffering from

Joint

Article

an

Hearings
on
my
amendment,
Senate
130, will begin

proposed

Article

U. S. Senator from Ohio

joined
such

amendment.

press

set

by Ar¬
ticle 14 of the, draft Covenant is
recognized
and
preserved
by

By HON. JOHN W. BRICKER*

Senators

introducing

19

-CITIES

21.67

the prior year.

20

The Commercial and Financial Chronicle

(2248)

bursts from labor leaders or other

The Steel

critics of industry.

Industry—

The Profit Margin

Where Is It Headed?
By

WALTER

S. TOWER*

President, American Iron and Steel Institute

After reviewing developments in steel industry in last 18 years,
Mr. Tower finds it has traveled full arc from government ap¬

proval of its independent privately operated status to govern¬
control in interest of special groups. Estimates steel pro¬
ducing capacity at 120 million tons annually, and denounces

ment

"constant

harping about shortage of steel supply." Says
profits are exaggerated and management is now left only
with responsibility for losses.

steel

have

months

in

seen

last

the

industry-wide

12

expansion

iron and steelmaking

of

in

doubt whether

20

well

is

it

of

advised;

-

demand

real

lete

these few

million

defense

purpose

controls

steelmen

them selves
n

o

w

d

e r e

d

where all that

cial

every
who now

shortages,

of

was

steel

when

Why
such

huge production the small part
required for military needs could
have been assured, without offi¬

tonnage

&

from

hurts

What has been the

of so much clamor?
of steel?
Out of

going; alleged

,

civilian

of

or

show

can

economy

lack of steel?

that

even

by more than
What part of

years

tons?

programs

production
lifted to such

heights

the

steel has grown

for

into

thrust
corner of the industry.

fingers

see

of

end

an

being

can

But
sign

sure

any

their

from

lexicon

such

any

before
taxes."
talking
about

"profit

as

in

actual

profits it should not be
to limit the figures to
aggregate millions, figures which
daze the man who rarely has more
necessary

than

few dollars in his

a

until

go

steel

robust,

but

to

less than one-third
cent per pound emphasizes

painful fact that profits of
steelmaking have always been on
the slim side.

than

less

ployers were muzzled as to dis¬
cussion
of
some
subjects with

A Federal Board was

employees.

ity over labor relations in private
industry.
Maintenance of union
membership was prescribed.

the

of

government was rarely idle.
It
operated in many ways.
There was legislation to fix hours
of work and minimum pay.
Em¬

day.
Even six or
profit on a ton of

about

a

wholly in response
hand of

given, and assumed, much author¬

look

may

speak
of

pay

dollars'

seven

not

was

natural factors, for the

to

pocket to

An

over a

exorbitant.

the

on

period of

sales

is far
it might
the figure

years

And

rights were
regarded
coldly, in favor of the emotional
and
nebulous concept
called
Property

"human

profit

average

cents

5

dollar
from

controls?

those

in

events

Steelmen would do well to de¬

What Furthermore,

supply.

steel

days of the National Industrial as inflationary factors.
Steelmen
Recovery Act when this industry, urged a hold-the-line policy of no
by government requests and in¬ increase either of steel wages or

profits.

be what it may.

is there is believe that

reason

capacity,
vigorously pushed in spite of some
all

of

shortage

rights."

Steps were taken to make Fed¬
courts
subservient
to
the

eral

executive

The Wage

elaborate

me

profits

rowed

gerial throat.
Let

and

Farmers were

a

bit

on

some

cf these items.

hours

Danger of Overexpansion

Problem

Take wages.
of

make

any

simple

work

As long

as man-

required

are

steel

product,

arithmetic

penny of pay

capital involved.
If
pansions are not finished

that

to

is

it

every

for those hours will
The plea that

facilities

can

company

is stuck.

not

of

the

not be operated—the

operated at

cause

ex¬

If finished and
fair profit be¬

a

boosts

wage

and

price

orders.

government.
tied to the political

acts

of

their

strikes.

such impact may

expansion programs?

came a

quest and insistence, are expected
to
lift
annual
steelmaking ca¬

added

pacity,

sion.

from

its

figure

present

of 110 million to about 120 million

before

tons

this

time

next

year.

of

tons

more

be avoided, that
be offset by

may

shows

that

hour in

is

product,

Experience

delu¬

a

over

tons

more

per

Management Left

Government

man-

steelmaking have not been

to

private

controls

left

have

management

complete

In many minds there is a question
whether
the
bureaucrats,
who

due to more

fancy for themselves the label of

tons have been the result of huge

in

national

investments

plants. Together with the defiant

their

planners,

right in

were

calculations

regarding steel
There is growing

requirements.

doubt whether all of that capacity
will be needed when completed,
and there is fear that tough
are

used

profitably.
However, even
capacity was covered by so-

more

called
still
ago

ahead

if

"certificates

it

of

outstanding until
in the

names

jected ventures.
needs

nor

be

cannot

a

necessity"
few days

of several pro¬
Neither defense

sound economics would

or

harder work

The added

of

capital for bigger
furnaces, better mills, more har¬
nessed horsepower.
But the re¬
been

largely absorbed by

Take

prices.

products
of

are

about how to
some

that costs

elementary
substantially

seems

be

cannot

profits.

judgment

costs and pro¬
of profit.
To

cover

measure

increased with
and

best

effect

no

the

But

on

prices

only

for

Controls of steel reached
the

present
In

labor

of

a grave

the

the

the

of

the first
tons

in

a

year

ago

ready that figure seems
place in our thinking,
due

to

our

barrage
New

had for

time topped 100 million
12-month period.
Al¬

a

long

of

capacity

common¬

year,

a

If prices of steel products

to

figure that all the rest
month

for

A

steel

such, would have a much
plearer idea of relative levels of
the figures which he hears or
as

reads.

He would

With such facts before us there
is at least a flavor of the ridicu¬
lous in the constant

would

harping about

in

for
see

steel

tions

Institute, New York City, May
,j




.

22,

its

that steel is

of

a

production.

He

that proposed changes

prices
cent

only in frac¬

are

of

Why would any leader
powerful national union seri¬

a

has

government

that

proved

it

will give more than unions dared

ask,

even

to

the

extent

of

con¬

fiscating company profits for that
purpose.

provoke

no

into this
cal

setting the thin edge

have

was

inserted

industry by deft politi¬

That-wedge you

maneuvers.
seen

that

driven

trend

deeper,

violent

out¬

tute has grown

in the

of its

scope

activities and in its service to both
makers

and

that

For

iron

of

users

I

reason

and

want to

something about the Institute

say

this connection.

in

First

let

has

there

a

it clear that

make

me

whatever

been

accomplished
has been the product of industry¬
wide cooperation.
True enough
are

who

have

few

men

given

among

almost

you

without

limit of their time and thought to

promoting the usefulness of the
Institute, but over these years of
which I speak, the passage of time
has

seen

many

through

the

made this

tile

men

which

Institute such

servant

of

and go

come

groups

a

have
versa¬

great indus¬

your

try.
Let

On

there
who
sat

illustrate by a few de¬
the Board of Directors

me

tails.

only

are

five

members

were

with the Board

Yet

that

over

close

70

to

the Board.

great

our

first

I

18 years ago.

period

men

active

now

when

total

a

have

served

of
on

Again, take two from
array

Committee with 2-3 members.
the

latter

only

the

On

who

those

among

Committee

one

made

first

as

former,

no

now

appears

On

remains

man

the

up

constituted.

one

man

has

served throughout the 15 years of
its existence.
And what is true
of

these

is

likewise true

of

most

of the others.

ever

in the

try and for general strengthening

Work of Steel Institute

Therein

Many

is

major

a

source

of

progress.

men of varied backgrounds
brought new thinking to the
problems of this indus¬

these

prices

comments

and

profits.

cent

official

those

vital

life.

The

attitudes
for

But

way

in

wages,

in

new

of

is

re¬

toward

industrial

which

handled

new

there

attitudes

aspects

are

about

may

those

settle

a

long time who is going to
steel
industry of this
country. Will it be private man¬
run

the

agement?
Let

mittee
Problems of Postwar Boom
A

postwar boom of vast1 size
brought new problems
to
the
steelmakers, as millions of people
rushed to make up for the priva¬
tions

the '30s and the

of

tions of the
or

three

war

years

roared

period.

problems
this

the

of

industry

steel

which

industry—

has

always

been the chief reliance of the
tion whenever the

To

epitomize

quence
more

this

of events:

na¬

going gets

your

in the

whole

se¬

What could be

significant than the recent

matter of wage and

was

the

Com¬

to lead to its recent adoption
bodily by the National Bureau of

Standards.

the

to

on

efforts

keep its members
the

in

of

the

Industrial Relations

industry

and

abreast

others

the
everchanging conditions affecting
employment, the mulitple out¬
pourings from Federal and State
of

agencies, and the records which
ship of labor and government, for bear so vitally on some of the
more
Federal
controls, and for most perplexing questions
that
small minds to toy with the big harass modern industry.

contrast

That

of

wide

as

Consider

until the time seemed
ripe for another official cry of
"danger."
And "defense" paved
the way for more open partner¬

work

from

Packaging and Loading
in producing a manual on that
subject of such outstanding merit

Committee

heights,

had

meetings.

the

For two

prosperity in this
to
unbelievable

ideas

and

on

restric¬

rough.

me

Facts

example

of radical forces.

country

I realize that there is little

ting of the 18 years since I first
a
part in the programs of

which

Through all these economic and
political vicissitudes your Insti¬

ployer.

put this brief sketch of
the past year into the larger set¬

common

the

national

of

socialism.

experiences, thrown into the hop¬
per
of cooperative effort, have
contributed
enormously
toward
promoting the interest of iron and
steelmaking.
Take as a simple

price of butter, sugar, meat,
bread or countless other items,

per

manifestations

a

and

symptoms

have

pound, even
fluctuations in

less than
*An address by Mr. Tower at the
60th
General Meeting of American Iron and

see

by far the cheapest of all metals,
in spite of huge capital require¬

of

array

try.

something ominously

of other

a

amazing spectacle of high officials
of
collective bargaining, as brazenly backing labor leaders in
long as the present political re¬ their inflexible attitude.
gime survives.
The term collec¬
The war years opened the way
tive
bargaining may now be for wider use of government in¬
defined as capitulation by the em¬
tervention in the affairs of indus¬

steel,

use

ments

Steel

were

growing
actual

Piece

form

they

and

end

in

output may soon be possible.

.1952.

the

unrelated.

are
not
together

them

common

expressed in cents per pound, like

of the world could not match.

10-million-ton

to

They

unions you have seen the practical

other metals, the average person,
who never buys even 100 lb. of

facilities pushed recent
output to
a rate equal to 112 million
tons in
a

work

disadvantage in pub¬

incursions of government into the

of

labor

many

affairs of business and of persons.

continuing strength and

of

pressure

In

been

govern¬

by

digits.
work plus

bewildering
put

to

or

interests.

have

basic policy, in favor of officially
dictated action.
The culmination

portent.

a

exposure

high efficiency in the

seems

100-lb.

lic appraisal of steel price policies.

perhaps
to

ton

per

steelmakers'

In such

of national unionism

connection

in terms of dollars per

there

they

ously bargain with private man¬
warrant for them at any time any is
commonly ignored or baldly agement, when it has been made
measure
of
government support flouted by industry's critics.
painfully clear that government
or
encouragement, not even the Moreover,
the
practice \ of will
intervene, if given any
implied status of "necessity."
quoting prices for steel products plausible pretext whatever? And
Production

special

of

between

deeper, in efforts to split from the
hands of management control over

leaders

surrender

to

losses.
climax

a

seizure

outlaw

attitude

ment

only the expression

fair mind it

any

wages.

Prices of steel

management's

vide

responsibility

such investments have

wards for

prob¬

lems

skill

by individual workers.

be¬

industry

Harassing

favorite political diversion.

Widely through government real
pygmies
played
the dangerous
game of imitating giants.

Responsible

Only for Losses

the years

ever-ready

the

from

common

of working com¬
spigot. The tyranny of mittees, the Committee on Manlabor union monopolies was in¬ facturing Problems with 21 mem¬
creasingly felt in industry-wide bers and the General Technical

pany responses to government re¬

wages

collecting

government,

the

serve

political

freeze—the company is also stuck.
Who pushed the companies into

of estab¬
reflecting com¬

programs

concerns,

power over

toll

be reflected in cost.

Expansion
lished

exerted
policies and

Pressure groups

increasing

ends

of

arm

effort to

an

good, to government directing in¬
dustry action to serve the selfish

steel.

of be explained that even
kite by subsidies and crop con¬
supply was steelmaking again were treated to of 5 cents is inflated because the
trols. Our currency was debased.
exceeding the familiar statistical sleight-ofpublished profits of various Power projects fed from public
anything hand by labor economists and
Walter S. Tower
prominent companies may cover funds invaded the utility field.
imaginable
a
volunteer agitators.
The facts, of such operations as shipbuilding,
Money from tax revenues became
few
years course, like other facts about this
structural steel fabricating, bridge
capital to create competition in
ago; complete governmental con¬ industry,
are
open
to anyone. building, drum making and so on
basic
industries.
Redistribution
trols of steel, ostensibly to insure They can be stated simply by any
through a long
list of non- of the wealth was an avowed goal
getting
the minor
quantities honest person. They need not be steelmaking activities.
and tax policy was advocated as a
needed
for
military
programs; repeated here.
But the plain fact
Does it never occur to anyone
means
to social reforms. Politi¬
wages, prices and profits in steel- of inseparability of wages, prices,
in government that pursuing pres¬ cal
intuition
was
valued more
making used as the basis for an profits in the life and survival of
ent policy toward wages, prices highly than industrial wisdom and
amazing brand of perverted eco¬ any industry needs constant repe¬
and profits may carry the risk of
wide
experience.
Inflation be¬
It particularly needs re¬
nomics; facts about steel twisted tition.
ruin for some
steel companies? came
a
fixed
part of Federal
and tortured
in high places of sounding emphasis by steelmen to
Commitments for expansion pro¬ financial policy.
government, for obvious political clear away false impressions and
grams run into tens of millions of
So-called
administrative
law
purposes; actual seizure of steel critical attitudes created largely
dollars even for smaller compa¬
grew swiftly as countless bureaus
plants,
and
a
strike
to force by union propaganda.
nies, with large chunks of bor¬ spawned rules,
labor's demands down the mana¬
regulations and
prices

Wages,

Thursday, May 29, 1952

.

sistence, was responding to a call of steel prices.
Official action
Simply defined, to help save the nation from rejected that sound position and
insisted on wage increases larger
profits are what is left from com¬ threatened economic chaos.
It has been a crowded period than ever before as a further
pany income after all bills have
step
been
paid.
Any
reference to since those dour years of the '30s, in government-sponsored
infla¬
profits "before"
some
bill has a period filled with emergencies, tion. Wage stabilization was scut¬
been paid, be it tax bill or any some
real, many of them syn¬ tled.
other cost of doing business,
is thetic. Perhaps there might have A Government-Directed
Industry
less than a half-truth.
Whatever been a cleansing quality for our
Thus in the space of 18 years
the reference, by company exec¬ economy in the searing austerity
you
have traveled the full arc
utive or by the President of this of
those years had
there been
from government approval of in¬
nation, the effect can be only to time for its effects to operate un¬
mislead, let the motive therefor hindered.
But
the
course
of dustry directing its own actions
Take

term
We

..

of

attitudes

toward

the

price increases

Or

the

appraise

Committee

tions in the

tions.

the
on

activities
Public

of

Rela¬

light of recent condi¬

Never

before, in time of
controversy, has steel stood so
well in public opinion.
For that
favorable position the committee
can

In

claim major credit.

like, fashion a score of other
working committees could be

Volume 175

Number 5120

.

.

The Commercial and Financial Chronicle

.

21

(2249)
cited for their imposing array of
accomplishments contributing to

strength of the steel
Last year there were

progress and

industry.
than

more

300

committees

duction to the detriment of the
competitive capacity of British
industries at home and abroad.
Quite possibly such will be the
extent of these increases
that the additional
purchasing power
created thereby will more than
counteract the

British Wage Inflatioii
By PAUL EINZIG

meetings of such

with

an

of

Dr.

aggregate

attendance

of
4,500 men.
The
products of their efforts appear in
a variety of our
publications, but

Einzig asserts gravest danger menacing Britain's

falling

to

recovery

an

deflationary effect

material prices and will
bring the consumers' strike

raw

end.

In that

it will

case

its

resume

The only hope

course.

lies in

LONDON, Eng.—Although the government succeeded in
checking the outflow of gold by the end of March it certainly

the realization of this
danger. Unfortunately, the tempo¬
rary cessation of gold outflow has created a false
feeling of secur¬
ity* While a few months ago the danger of an
exhaustion of the
gold reserve created an atmosphere in which the
government was
able to adopt unpopular
measures, that atmosphere no longer
prevails.
It is no longer expected that in the
absence of drastic
measures the gold reserve
might run out by September. A large
part of the British public lives once more in a fool's
paradise.
There is bound to be a rude

cannot

wages

lies

periences,*

broad,

as

basic

discussed.

are

channels

there

be

cause rise in production costs and make exports
Says higher wage demands can let loose
"a cataract of inflation/' while their refusal may lead to
political strikes disguised as industrial disputes.

such

infinite

promise for the future.
Steel—a

Highly Complex

need

one

afford

achieved

Industry
No

to

rest

the

at

cost

threatened from

emphasize to

of industrial and agricultural

demands

unprofitable.

prob¬

From

can

exaggerated

workers, which

important intangible result lies
in the exchange of ideas and ex¬
an

lems

in

prices

you

of

its

on

Indeed,
efforts

considerable

of

than

more

laurels.

one

direction.

improvement

the

sacrifices

and

is

The

complex industry, with

ramifica¬

tions

realm of

other

into

almost

industrial

every

activity.

As

such,

industry has need for
place

for

things

which

doing

such needs.

in

some

is

80th

of

of

Yet there

of

are,

needs
can

all

of

the
are

or

strength

this

in

is

a

those

of

source

who

would

industry de¬

rives

largely from ability of its
members to work together for the
good.

the

war

been

In

peace

of

proof

that

eloquent.

Your

be

shackled

as

and

It must

New

York

22.Mr. Chand¬

the

Society

previous¬
served

as

Secretary and
Treasurer.

Lurie,

B.

was

for

coming

year.

executive

New

York

Lurie is

Mr.

a

the program

committees of

Society

of

the

Security

Analysts.
Albert
New

P.

Squier,

head

Institute

York

of

of

the

Finance,

elected
Secretary 1 of
the
Society, and Joseph S. Stout, Na¬
tional
Shares
Corporation, was
was

re-elected Treasurer.

Members
utive

elected

to

the

Exec¬

Committee, who will

until June

Brefey, Baker, Weeks & Harden;
F. Childs, Irving Trust Co.;
ance

mon

R.

H.

Co.;

Randell,

Home Insur¬

John

Stevenson, Salo¬
Bros. & Hutzler, and William

to

BOSTON,
Cronin

is

The

a

subtle form, disguised

more

as

to

suspension

number

of

closing

the

of

Financial

In

New

Mass.
now

—

Renyx, Field & Co., Inc.




V.

with

to

to

service,

from

public

160

office

Many

(three

five

-

Law's head

story

build¬

ings which the agency owns and
occupies in lower Manhattan) and
its branches in Boston,

phia,

Philadel¬
Washington and

Chicago,

San Francisco.

-

EQUITABLE

OF THE UNITED STATES
393 Seventh

Notice

of

Avenue, New York 1, N. Y.

Nomination

of

Directors

of The

living without increasing their output.
Some of the wages de¬
mands are so grossly excessive that
nobody could seriously expect
employers to be able to meet them.

For

hereby given that in accordance with the provisions of the

Insurance Law of

instance, the Amalga¬

Engineering Union

the

extent

to

which
or

the

as

a

wages

ARLIE RAY

BARNES, Rochester, Minn.
Chairman, Board of Governors,

demands

will

be

Mayo Clinic
JAMES B. BLACK, San Francisco, Cal.
President, Pacific Gas & Electric Co.
M. HARTLEY DODGE, New York, N.

DOUGLAS S. FREEMAN,

met,

will resume, its course.
This, in spite of the fact
in the price of imported raw materials and in

WILLIAM J. GRAHAM, New

Chancellor of

New

be

politically impossible.

Counsellor-at-Law

W. W. KLINGMAN,
Life insurance and

RICHARD H.

industry give an indication of
happen in case of the development of large-scale
unemployment through credit restrictions.
The utmost political
pressure is brought to bear on the government in favor of inflat¬
ing purchasing power in order to restore full employment in the
textile

industry.

MANSFIELD, New York, N. Y.

Rockefeller
ARTHUR

B.

become redundant
tries

in

a

as

a

result of the development of textile

large number of

countries

since

the

indus¬

Once

war.

this

if this could be done the switch-over would

passed
sion of

a

now

encounter

on the part of the
engineering unions. They have just
resolution restoring the prewar restrictions on the admis¬

new

BUSKIRK, Pittsburgh, Pa.
Vice-President and Governor,
T. Mellon and Sons

A certificate of nomination of

wages

bringing about

a

seems

difficult to avoid

an

increase of

corresponding increase in the cost of

pro¬

the said candidates has been

duly

Department of the State of New 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 3, 1952, 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, 1953. 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

by

proxy or

by mail.

HENRY G.

entrants.

In the circumstances it

Bros., Inc.

VAN

filed with the Insurance

Meanwhile, acute scarcity of labor continues to prevail in the
engineering industry owing to rearmament requirements.
The
ideal solution would be if
unemployed workers in the textile
industry could be made to realize that part-of that industry has

banking

Executive Vice-President and Director,

The violent reactions to the

would

Dallas, Tex.

RUSSELL B. LOWE, Fitchburg, Mass.
Manufacturer

local unemployment in the textile

what

York University

NICHOLAS KELLEY, New York, N. Y.

that manufacturers will not be able to pass on to the
the increase of their cost of production resulting from

<

to

'

WILLIAM A. KELEHER, Albuquerque, N. M.
Counsellor-at-Law

In

seems

York, N. Y.

HENRY TOWNLEY HEALD, New York, N. Y.

so

theory, the remedy is in the hands of the government. By
enforcing drastic credit restrictions it would be in a position to
reduce over-full employment and thereby to weaken the bargain¬
ing position of the workers.
In practice, however, this course

Richmond, Va.

Lecturer and historical writer

the higher wages.
'

Y.

Chairman, Board of Directors,
Remington Arms Co., Inc.

result of strikes, the inflationary

decline

low ebb

the State of New York the Board of Directors

Equitable Life Assurance Society of the United States has
following named persons as candidates for election
Directors of said Society:

nominated the
as

May 28, 1952.

is

people staff Al¬

Frank-Guenther

LIFE ASSURANCE SOCIETY

exag¬

spe¬

rela¬

customers.

More than

21

THE

Notice is

even

Joseph

connected

angle

television department also

bert

depression

or

The
studed

agency now are

all-inclusive

every

available

years

witnessed

periods of recession

is

tions counsel. An aggressive radio
and

a

ensuing

the

clients

research

cialized

Stock

has

agency

an

covering

large

York

no

resistance

Chronicle)

offered

bank¬

a

banking houses and

of the

Exchange.

into

go

ruptcy,

advertising.
of

field of business and indus¬

every

year

railroad
development and
large speculations caused banks to

railroads

list

try. Clients of the

A

sive

fail,

general

with important clients in virtually

a

panic of 1873 struck all the prin¬
cipal cities of the country. Exces¬

legitimate indus¬

realized, unemployed textile workers might become willing to
apply for jobs in the engineering industry.
The trouble is that

With Renyx, Field

is

ago

resource¬

organized, the

Party because they might alienate the
Accordingly, political strikes were
They threatened to reappear, however, in the

is

White, Hornblower & Weeks.

(Special

was

emergency called for sacrifices and harder work millions of organ¬
ized industrial workers were out for improving their standard of

serve

1, 1954, are: Pierre R.

John

Donald

are

firm

place since 1950.
Nor was there any increase in productivity that
would have justified higher wages.
At a time when the national

consumer

former Chairman of
and

former

of a
likely to be at

Marvin Chandler

days

founders.

relations whatever to the rise in the cost of living.
As Mr. Butler pointed out on May 15 when addressing the National
Joint Advisory Council on which employers and employees are

a

the

the

of

flict with those of wages inflation.
In view of the prospects
fall in the prices of consumers' goods the demand is

Vice-

President

and agricul¬

consumers' demand for textiles has resulted in a fall of
prices.
The effects of imported deflation and consumers' strike will con¬

Web¬

elected

industries

During the last few weeks a number of deliberately
were put forward by various trade unions.

that the

ber Jackson &

Curtis,

Einzig

gerated claims

vicious spiral

mar¬

analyst,

Paine,

Dr. Paul

its

sur¬

public.

whether to avoid strikes

indus¬

trial and

early

years

lion dollars annually are about
equally divided between financial

lower

agency

some

its

agency's

the

prosperous

Labor

end.

an

of them bear

To

Sidney

ket

brought to

of

after the

the changes of

the

of

those

claims an increase of £2 per week,
pretense at justification.
Evidently the idea is that since such claims cannot possibly
be satisfied without letting loose a cataract of inflation, their
refusal will provide an excuse for a political strike disguised as
an industrial dispute.
On the face of it, the strikes will not pursue
the end of resisting the measures passed by the Conservative
majority in Parliament.
In substance, however, the strikes in
support of excessive claims pursue precisely that object.

past year and

ly

the

of

sympathies

and

and
that

without any

of

during the
has

position

in

fulness

change of
policies entailed by it through
organizing a number of frankly political strikes.
Their leaders
warned them, however, that such strikes were
contrary to the
spirit of the Constitution and that they are liable to damage the
government and

mated

Vice-

was

:

fact

represented, by the beginning of 1952 wages and salaries more or
less caught up with the rise in the cost of living that has taken

Chandler, partner of
Chandler, Inc., was elected

President

vived

free

majority

in

tribute to the mettle and

Socialists and therefore out of sympathy with the present Admin¬
istration.
They expressed their resentment over the

Institute

Society of Security Analysts May
ler

American

overwhelming

future in

Marvin

the

specific

financial

office

one-room

disputes.

Chandler President
of

uphold

a

The

at stake.

trial

NY Analysts Elect

President

to

year

two-man

a

of

policy of acquiring
only financial and transportation
accounts to a point where current
billings of approximately ten mil¬

Law,
celebrating the

Manhattan.

the British note

Government

of

near

sacrifice to

a

interests

in

political whims.

Reis &

States

has

fact

provides the equipment.
not

gap.

in the exaggerated wages demands of the industrial
tural workers.
The

it

like to be its masters.
The vitality of this

common

importance
From this point of

Considering that the danger lies in the possibility of
Washington Administration yielding to pressure exerted by.
those specific industries, the outlook is far from
promising.
The gravest danger menacing Britain's recovery lies, however,

industry
which

for

in

paramount

American reply to

this

as

altered

Frank-Guenther

transportation advertising agency

the

organization

strength

industry

sleepless^ night to

izing tariff increases would not be used unless

be

for any weakness

muster,

the

a

United

trade, the note observes that the clause author¬

before
the

the

the

the subject brought small comfort to Lon¬
While emphasizing the desire of the

'United

place
which individual or separate ef¬
forts never can fill.
Now more
ever

many

realize

in

don.

would be sought to take the

than

protectionism

reducing the dollar

on

hamper this
successful, both the

kind

some

of

causing

who

view the

to

industry and the public would
losers.
Inevitably, sooner
later,

is

those

point of extinction.
were

revival

a

States

quarters,

desires to curtail Insti¬
activities, to hamstring its
usefulness, perhaps even to the

Institute

ing times, AFGL

anniversary of its founding in

1872

kinds

Albert

number

To meet the demands of chang¬

Celebrating 80 Yrs.

in
Inc.

mentioned.

government

efforts

and

the British balance of payments
brought about
through the British import cuts.
The menace

tute

the

Sterling Area

Europe threaten to offset the improvement of

lurking

If

the

the

And you have through these years
created
an
efficient
agency
to
serve

in

like

a

eras.

meeting

a

the

have

I

raw

countries

and

Albert Frank Agency

materials
exported
by
the
Sterling Area to the Dollar Area continues to
fall.
Import cuts adopted by Australia and

the fact that you operate a
highly

awakening as soon as the inflation of
has produced its effect on the balance of
payments.

WOOD, Secretary.

22

The Commercial and Financial Chronicle

(2250)

and
government
Moreover, a continuing
state of emergency and war, such
as
is threatened by the present
international tenseness, may be

The Inflation Bias

President, Republic National Bank, Dallas, Texas

limit

Perhaps

in

recent

years

.

the

problem

has

been

not

solved ;

the

threat and

Its

founda¬

Despite

that

has

this sub¬

continues

to

basic

be

con¬

of

causes

dollar. We should seek as our ob¬

tained

will

relatively stable dollar
balanced economy that
is

a

a

characterized

by

sustainable

a

equitably

the
increased

among

people in the form of an
real

income, i.e.,
of living.
'
One

of

the

rising standard
f ;
;•

a

.

most

fects of inflation

damaging ef¬

arises out of the

disproportionate increases that
in

cur

oc¬

income.
inflation affects

prices, costs

and

inflation, and the steps that should

The

be taken to eliminate those causes,

different

and thus effectively prevent the
shrinking value "of the dollar.

severity. There are undoubtedly
large groups in this country who,

It is evident that there has been

between

inconsistency

"word-of-mouth"

atttack

impact

of

because of their

ing power,

the

have

stronger bargain¬

for other reasons,

or

been

able

tq increase their

problem.of inflation and the "ac-

real income and

iioh"

living

the

to

problem.

Too

frequently, even in highly
responsible quarters, "lip service"

has

been

given freely to the im¬

while

fighting

of

the

inflation,

which

actions

were

iaken often reflected the effect of

submittihg to
one

is

type

group

flation and to

that

fact

eliminate

its

restrictive

are

popular. Also, it
'ear

the

of

designed to restrain in¬

measures

causes

of

pressures

another. Perhaps this

or

reflection

a

and

un¬

be that the

may

of deflation

basic

by the

masses—

degree of deflation—is greater

;my

than

the

fear of

consequent

inflation, with

reluctance

to

a

accept

tolerate any

or

type of economic
adjustment that is not expansive.
The

of the last great
still vivid in the

memory

depression

minds of

is

many

their standard of

during

period. There

varying

with

groups

the

on

seek several billions of-dollars of

in which this mney is ob¬

tributed

on

portance

inflationary

this

equally large, or

are

will be infla¬
tionary in its effect. If these funds
are
obtained as they should be,

deeply
tion

curred

in

prices

in

losses

has

suffered
income.

real

oc¬

and who, conse¬

have

of all forms of money

serious

The

value

saving's and

accumulations, whether they are
savings accounts, insurance poli¬
cies, pensions or fixed income se¬
curities, has declined sharply.
Looking to the future, however,
and to the possibility of prevent¬
ing further inflation, it is perhaps
more

important

causes

of

to

inflation

nize and

study

and

to

the

recog¬

appraise the inflationary

forces

that exist in the economy*
than it is to consider in detail the

historical

the

f

<

the

interplay

factors
Tie

spending orgy; the
seriously unbalanced

at

moment

any

should

economic

direct

of

time.

attention

our

ud study to the economic policies
id forces which, together, in a

;
:>

;

potentials

government

symptoms

of

prise,

comprise

the

framework

Federal

a

government

probability

which "our

deficit financing dur¬
ing the months ahead; the danger
of a credit policy during
periods

deficit

or

financing

restrictive

enough

:>mic

sys-

unwarranted

eco-

vate

policies

the

i

.

economic

operate. It is these

must

{m
:

.post

long

and

forces

will

run,

significantly

economic

of

■.

P

depression,

ined in

-fate

of

an

a

set

were

nurtured

threats of war,

and

ir

and

in

sus-

apparently continuous

real

or

imagined

emer¬

gency. Inherent in this economic
fame work, in my opinion, is the
i< '.as of inflation.

To

hold
is

.ere
->

nr

to

an

economy

Excerpts
*rence

of

the

inflationary

from

before
tbe

position

does not
an

the

prevent
in

the

an

pri¬

supply;

money

strength

the bargain¬
organized labor

of

excessively sympathetic to labor's

of

present

policies and forces which
pm

increase

not

trend

The

insists in large measure of

<

to

is

supported by

'.ronomic framework of the nation
*

ing

that

influence

the

activity.

which,

budget; the
virtual certainty of

or

substantial

•

ithin

important
lie in the

inflationary
danger of

bias

mean

address
Insurance

that

by

in

that
Mr.

Confer-

wage
ance




demands;
of

growing accept¬
principle of tying

the

rates to changes in the cost
living; acceptance of the prin¬

economic

mandate

government
maintain

of

to

full

production,
sumption

employment
use

incomes;

deflation; and

a

against
adjustments other

the

to

full
con¬

fear

strong public
any

than

economic

tional
cause

of wars,

emergencies

are

government

directed

to

is,

in

its

use

and

powers

resort to, however, almost in¬

evitably will be those that involve
increase

an

and

in the money supply,
available
more
and

make

force, however,
also may be strongly
generated
through
policies
and
develop¬
ments that affect costs. The pres¬
ent
siege of labor unrest and

strikes,

including
developments
steel, oil, transportation, air¬

craft, and others,

ing

has

forebod¬

a

inflationary

possibility. Un¬
less increases resulting from
higher wage rates can be absorbed
through

mere

the

means,

efficient productive

increased

accepted

costs

will

widely throughout the

so

of tying
of

cost

dangerous economic
it

rates

wage

living. This is

a

to

very

practice, for

disassociates

rates

changes in wage
gains in productive

from

in the hands of

are

and

investors

are

seeking investment. A portion of
should

available

be

that

factors
fered

Treasury

at a rate of
competitive, all

with that of¬
in the
Treasury under¬

considered,

by other

market.
takes

the

the

to

them
is

If

to

borrowers

the

obtain

of

and

na¬

always

a

of disruption to government

devices,

be

its

new

obtained

banking

money

through

the

On

system.

hand, if intermediate

of living costs. If
living increases, and

of

dynamic

for higher

pensate

prices and to

maintain

the

come, the

higher costs of produc¬

tion

force

will

further

to be followed

creases

increase, and

wage

the

workers'

adjustments

time to time that

upward

the

other-

long-term

or

Inflation cannot be permanently

halted without tremendous sacri¬
fices. We have become accustomed
to

an

disguised

economy

perity,

and

too

to

face

that

a

non-bank¬

of

be forthcoming.

disaster

to

price

in¬

on

this

Although central banking policy
changed significantly during

the past year and has been

effective

more

l:he

basis

there

is

in

during

of

that

much

restraining the

reserves

and thus

it might bring
unemployment, lower
values, and consider¬

some

and

pt-mes

able

readjustment.

challenge

This

faces

us

and

one

citizens

is not

United

the

of

easy

can

is

of

such

importance

of

us

must

contribute to

tion and

other groups in the economy.

hope that such contribu¬

tions will achieve the desired ob¬

jective

of

if

system

the

as

central

banking system attempts to facil¬

increases

able

on

sound, sustain¬

a

basis.

Vonderhaar Elected

By Cincinnati Exchange
CINCINNATI, Ohio—Harry C.
partner of West-

Vonderhaar,
heimer &

Co., was elected Chair¬

just

logical

and

to

maintain

Stock

mean, if not careiully
guarded against, an easing of con¬
money

market,

reserves

in

a

excess

required to meet seasonal
in the private

an

money

in¬

sup¬

ply.
a

tendency

in

some

quarters'pf government to believe
that

the

economic
a

answer

and

the

to

defense

continually expanding

and that in

order

to

nation's

problem is

May

achieve that

is

economy

such

adjustments

as ours,

from

occur

time

to

tivity.
of

ac¬

Certainly during a period
defense, when both

National

private economy and military
drawing upon the nation's

Co.

the

New
Stock

Exchange.
Vonder haar
Vonderhaar

C.

has

-been

ac¬

tive in Cincin¬
nati financial circles
President

as

Stock

& Bond

having served

the

of

Cincinnati

Club.

NY

Security Dealers
Summer Outing

char¬

The New York Security Dealers

However, at the slightest
easing in the economy,
when inflationary measures be¬

Association will hold their Annual

stimulative

in

acter.
trace

gin

of

to

be

moval

really

a

for

or

effective,

their

there

for their

pressure

re¬

relaxation

on

the ground

that they are adversely
business and economic

affecting

conditions.

Sooner

or

later

must

face

ally.

One certainly should not ad¬

vocate

this situation

realistic¬

depression, but neither

advocate

safety

with

continuous

inflation, for the
evitably lead to

any

can

greater

persistent

and

will

latter

in¬
de¬

more

even

some

should
of

which

the

must

the

emphasis

place
causes

be

on

and

necessity

budget in order; that

ognize that not

are

strong

re¬

support

as

even

America
a

can

Hempstead

Hemostead,
will be

for

an

prizes

scheduled

will

a

a

p.m.,

6

There

at

ball game

soft

and dinner

7:30

p.m.

Committee

Charles

consists

of

H.

Dowd, of Hodson &
Co., Inc., Chairman of the Outing
Committee; John J. O'Kane, Jr.,
John J. O'Kane, Jr. &

L.

Roggenburg,

Co^

King,

George

A.

Libaire,
S.

Co.; Stanley

Roggenburg

&

Searight, Eisele,
Stout & Co. and

Wien, M.

S. Wien &

Co.

such

Now Sullivan Co.

that

we rec¬

nation

as

continually

government

with
for

served

be

The

Island.

Long

all-day golf tournament

inflation

of

eliminated,

compelling

Friday, June 27, 1952
Golf
Club,

on

the

Melville

structive consequences.
We

Outing,
at

we

as

stimulate

West-

&

member

a

of

time.

Government place its fiscal house

and

He
Al¬

Fried-

J.

York

should not overlook

easy money and a surfeit of funds

encourage

15.

succeeds

fred

a

downward economic readjustment.
It seems obvious that in a dynamic

economy,

objective, there must be relatively

at

held

meeting

the

deflation, and in the strong public
resistance
against
any
sort
of

one

is

Ex¬

change,

H.

we

the

of

tees

Cincinn ati

real

removed.

the

of

man

board of trus¬

heimer

Treasury financing. This develops

could

There

under

which the real income of the peonV

concludes that it is equally

one

or

of that

progressive,

really

a

economic

stable

Yet, it should be equally obvious
that adjustments cannot be
only

restrictive

the

each

its solu¬

.lander.

be

in

that

But

upward-and

growth in bank

It

States.

task, nor is it one
be solved quickly. This

an

which

businessmen, bankers,
executives,
and

as

there is

Treasury is engaged in
the
process
of
obtaining
new
funds, central banking policy will

ditions

that

insurance

Moreover,
might well question whether

must

expansion,
danger that,

the last half of this year

itate the

the

is

opportunity

and

with its ulti¬

the

when the

less

the

temporarily

about

all.

credit

still

lack

dangerous
isiue squarely. We must lick in¬
flation in spite of the probability
courage

through

the danger inherent in the fear of

has

growth of bank

pros¬

as

many

maining brakes against an infla¬
tionary debauch will have been

believe

to

amount

ing funds would

moderately

or

downward.

income of all groups, then,
in my opinion, one of the few re¬

reason

from

either mod¬

are

by another

so

series of cycles

mate

in¬

real

there

substantial

must operate

economy

flexibly,, with
erately

Then, as
recognize that

must

we

com¬

government securities attractively
priced are offered to the market,
is

as

con¬

reconsidered.

be

equity solely in maintain¬
through
short-term
government ing the workers' real income and
securities at relatively low rates not in maintaining the real income
of interest, it is probable that a of professional employees, stock¬
substantial amount of the funds holders, pensioners, and all of the
will

such

Conclusion

Inflationary

in

dis¬

growing volume of

inflationary

citizens,

*

cheaper credit.

then wage rates are raised to

them

in"

a

incomes.

government

production and

a

a

the wage rate-cost of living

consumption

These

nonbanking

pense

powers

and

money

cannot

level

cost

savings

tion

cept

the

to

upon

the

relatively stable price
that groups in the popula¬
seek gain at the ex¬
of other groups; that "built

level;

agencies to maintain full employ¬
ment, full production, and highas

the

goods at

effect,

in

supply to that amount required to
facilitate

the

by

insisted

be

growth

tribution of

to

those

expansive nature.

Wars, threats

maintenance

the

re¬

mandate

a

movement

the

powers

high-level

resistance

an

an

employment,

and

and

as

requiring
its

policy

the

crease

full

that

the

.

adjustments, and ultimately

of

policy of full

a

when

a

may

deficits; that effective

must

limit

efficiency, and ties them only to

■

wage

ciple

of

During the past year savings
have substantially increased

of

American

Management
iwoociation, N. V. City, May 21, 1952.

government that is

a

its

quiring

be reluctant

may

virtually becomes

Finally,

situa¬

economic

rurface reflections and

most

this

Threat of Credit Expansion

more

merely to appraise the

"

policy.

developments.

the

critical

be

the

been

has

modification of

slight

some

for

quently,

one

employment,

economy,

although in

there

months

recent

competes

that

of the

part

with other borrowers,

return

Currently,

much

the

on

incomes have increased much less
increase

Although
to

loose in its expenditures and faces

steps

of

Treasury to seek its funds in the
market
on
a
competitive basis

people.

delve

into

than

reluctance

a

Causes of Inflation

must

savings

than

the

tionary.

have an inflationary effect.
nonbanking
Tying Wage Rates to Cost
investors, the inflationary effect
can. be
of Living
avoided, but if the fundsare obtained through the banking
This question of the pressure
system, the money supply will be for higher wage rates is
closely
increased, thus adding to infla¬ related to, and arises out of the
tionary pressures. There has been policy that seems to have been

the

from

provided

whose

however,

groups,

largely

determine

Treasury

larger,

The Bias of Inflation

We

from the market. The

money

whether the process

'

.

from the mar¬

to draw new funds

manner

growth, and in which the gains
of productive efficiency are dis¬

been written

Florence

approach

financing in the months ahead. In
recent weeks the Treasury began

new

in

all

an;

the

namely,

a

still

tion.

the

potential

persistent inflationary trend
that will steadily undermine the
soundness and the value of the
of

jective,

our

to

infla¬
mentioned,
certainty of deficit

budget develops the second
tionary

undermining

as

Federal

unbalanced

an

willingness to face objectively

of in¬

persists.

there

of

/

deadly virus is
steadily

fusion

,

Out

taking the position of an
alarmist.
It
means
merely the

flation

ject,

Thursday, May 29, 1952

.

continuous

Such

pay-as-you-go

a

on

war

basig

is

danger

F.

be

-should

Korean

the

and

the ket by increasing its weekly of¬
ferings of Treasury bills by $200,by
so
many reality that, as long as currently
economic. policies are 000,000 each week, but this is only
groups as the accepted
a
beginning. During the last half
problem of in¬ dominant in our economic think¬
will
flation. Yet, ing, the nation faces the danger of this year the Treasury

'

Fred

itself.

international

required to meet the

adjustments to meet living costs.

economic

other

no

easy

the

situation

policy;
(2) reduced government spending; (3) checking increase in
money supply; (4) elimination of pressure groups; and (5)

problem has been so widely dis¬
cussed and so consistently studied

an

be only infla¬

can

government, it has inherent in it
strong inflationary bias. Under
the Full Employment Act of 1946,

(1) budget balancing and improved fiscal

one

of situation in

type

that an unbalanced Fed¬
government budget should be
avoided ahd the defense program

inflationary forces still strong, and finds tying wage rates
cost of living a dominant factor. Lists among inflation cor-

wage

or

limit, and

policy

money

eral

Sees

ending of

the

to

end

discernible

no

to the

sources

All agree

of restrain¬
ing measures. Calls attention to current "bias of inflation,"
and gives reasons for inflationary trends in last three decades.
given to fighting inflation, lays this to unpopularity

rectives:

is

which the nation now finds

banker, pointing" out only "lip service" is

Texas

World War II, for

out war such as

there

all

dangerous than an

more

even

By FRED F. FLORENCE*

Prominent

policies

budgets.

And Its Collectives

;

.

1

fiscal

to

.

■

that

is

WICHITA,
name

Kans.

—

been

changed

pany,

Inc.

to

Offices

Co.

Sullivan
are

firm

The

of Sullivan-Brooks

has

Com¬

located m

the Union National Bank Building.

Volume 175

Number 5120

.

.

The Commercial and Financial Chronicle

.

23

(2251)
fell off from $1.47 in 1950 to $1.43
iin 1951.

Department Store Net Earnings Down 39% in '51
Malcolm Pi

McNair

finds

diminished

due

returns

profit margins and higher operating costs, since
maintained

were
..us

Uia.>»a>Ucu

by
uj

u«..w..
narrow

margin

report presented

a

.

.u

*T

o

-i

*

Congress of the National Retail
Goods Association. For the

to the Controllers'
Congress Convention
in
New
York
City on

Dry

May

extraordinarily

28

by

Prof.

Malcolm

MciNair,
In

co

P.

Lin-

Filene

Professor

of

Retailing,

a

t h

t

Harvard

e

Graduate
School

of

calendar

which included the
large
January
sales, the Federal Reserve Sys¬
tern reported an increase of 3%.
year,

,

the

For

second

consecutive

much

as

as

did total retail

sales, which for the calendar year
an advance of 4.8%.

registered

Business

startling

xxie

development

in

Administra-

1951

tion,

sales, including department store
sales, to keep pace with tne rise
in
disposable
income.
Personal

tne

1951
an

year

brougnt

unexpected

reversal

of

the

was

failure

of

retail

saving,

consisting

fortune to the

creased

accumulation of cash and

department

securities and of reduction in

store
Prof.

M.

P.

in

McNair

business

the

bnitea

S.tates.

spite
timistic

expectations

............

in

January,

to

buy

February, and

off

nn-

entertained

cue.i.incu

consumer

cooled

De¬

tbp

eagerness

rapidly

after

dollar sales for the

business year ending Jan.
31,1952,
barely managed to register the
slight advance of 1.7% as compared with 6.4%

Such

year.

could

in the preceding
small sales increase
increase

a

largely

indebtedness,

sumer

in-

of

con-

moved

up

briskly from $10.7 billion in 1950
to $17.2 billion in 1951.
The re¬
sult

was

rude upset

a

culations
cuiauons

of
ui

in the cal¬

those merchants who
muse mercnaius
wnu

had expected that consumer buy-

ing
its

would

continue

maintain

to

high postwar ratio to

dispos-

able income,
13

beginning with

;f that

year

be taken

pyreWar
piewax

conv'enient
cuuvenxeui

as

a

benchmark,
uciiuunarxv,

the relative importance of depart"

the

income stood at 317,'totalL re1t ll

-

contain
uuuiaiu

the
me

,

-

..

surge

meantime

heavy markdowns,

,

,

mpni

gtnrpQ

r\

whinh
which

Viae
has

Substantial uniformity appeared
in

the

rates

expense

volume

which

ran

in the $2 to

from

unan
than

low

1951,

smaller

a

The

trative and general

publicity

and

'

direct and general selling

bonds

new

at

prices

to

100%;

for

"

—

P°ses
deemed

"v

w

aIt.er

Elected to Board

Iowa Pow. & Lt. Bonds

Samuel E. Magid and Clermont

Halsey,
,

Cartwright of Hill, Thompson' &
Co., Inc., and Charles D. Runyan,
Trust Co. of North America, have;
been elected,
to

lion

or

1950

For both

more.

1951 the expense advantage

and

on

of this

their

bid

Proceeds

from

the

sale

of

ing

in the

succeed

Buhl

.,

Au

in

£•

u

r„!i

an

identical firm basis dol-

lar
payroll costs
Percentagewise to
crease

The

ioki

*

17 95%

1950

in
in
11

to
tu

in 1951 carried this divinnrmaiiv

nn

rea'che?,
smaii

any

only

a

Moines, electricity in Council

Bluffs, and either or both services

~—--j

winni<-• ir"»a 1 itips

*■

a

j-

accum'ulaUo'n

nnmmuni-

in otheir municipalities, commumties and rural territories
Hes "andTurarterritories in the
in the
central and southwestern sections
of the State of Iowa having an

1938J!i°Utbe about*430 OOOFor the'*12

fraction abovethe

March

1952

31

at

J"?

concurrently the stringent OPS
price controls impaired the initial

h°wev<rr; isstores,relativean index
the with position
of variety

markon, making management
helpless to counteract either the
rising expense ratio or the aug¬

ing Co. by tho
Penn-Ohif>
Samuel

E.

Steel
Magid

1939

l*

combined

*V

effect

was

margin

by

the

the

73%

Stephen Gilboy Opens
OLEAN, N. Y.—Stephen T. Gilboy has opened offices in the Ebchange National Bank Building

=c

4'
smalVsTofefand'the highest,

business, about 26% from its na- ager for Milton C. Powell Co., Inc.

1.3%

lower

net

this

of

quence

gross

As

a

conse-

Combination

margin

and

more

of

higher

expense,, department

gains suffered

store

severely

than those of
practically any other

important

1951,

type

going

of

from

business

6.85%

of

in

sales

down to 4.55%.
ever,

was

This figure, howbefore taxes; and after

being subjected to the
high rates of income and
profits
final

taxes,
i

e a r n

lowest

current
excess

department
n

store

reached

their

gs

point since

1938.

amount-

ing to only 2.3 cents of the

con¬

has

down

stores

after

in

department store Prjce index,
difference presumably re e

ap¬

Although

re¬

dollar

sales increased by 3.4% over
1950,
the gross margin rate diminished
from
37.9%- to
37.2%. and the

rate

expense
more

of

pushed

ahead

even

vigorously than in the

the

from

denartment

35.3%

36.7%
the

in

of

1951.

sales
As

percentage

taxes

fell

stores,
a

in

case

"}e^t store price index,
that

the cost of doirio bU3
closely reflected chang<
level,

Price

permanent

profits
On

to

before

precipitously

4.7% to 2.65%.

dollar

a

from

basis,

allowing for the increase in sales,
the

1951

earnings

before

taxes

were

41.5%

ures.

In only one year in the last

22 have

behind

the

1950

fig¬

soecialty store profit per¬
as high as those of

centages been

the

was

Sales

1.7%

their

in

doUar

business

sales

typically Jan. 31 to Jan. 31, notwithstanding the phenomenal rise in
customer purchases which characterized the
riod.

This

figure
data

year,

beginning of the
1.7%

checks

reported

sales

closely
to

the




lowest

pe-

increase

with

the

Controllers'

Spurred

Ship of State

New

counterparts, Bawl Streets
bond traders barricade

Journal.

themselves in the cages

rate

stage combination

figure prac¬

a

with the gross
for 1949, wnich
spread obtained

v

NEW USE FOR
//

virtually

me
the

ai
at

•

■

is

years

a

hunger strike. Many partners
held

as

hostages. The Bawl

Street Journal tells the

WETBACKS"
Smuggled in from

fact which
'

-

For

all

seems

groups

of

the

they're in

great demand as Mutual

Fund

salesmen. Read the Bawl Street

from
million or
in
typical

stores

million up to $50
more,
the variation

$1

across

border in Brooklyn,

—

worthy of con¬
sideration
by
the
Washington
price controllers.

certainly

Journal to find out how it's done.

•

•

v» • v» •

•

y.'AV

NEWEST WONDER

'A*'.-

DRUG ON
Sensational chemical

margin was almost negligi¬
a high
of 35.6% to a
low of 35.1%, the latter figure
being that for the largest con¬

gross

ble,

and

sitdown-

inside story.

punu
point

mwcsi
lowest

by their

on

Jersey, Michigan and Koje

centage of department stores was

from

exterminates all insects but

,

READ THE

The lower percentage gross

for

stores

$500,000 mark

The reporting department stores

-

runs

in the Bawl Street

by department stores since 1932.
That the 1951 gross margin per¬

margins

gained only

35.3%,

identical
margin of 35.2%

...

Constitution. Read all about it

<

margin

gross

tically

cerns.

department stores.

during

the

to

depth

aground but can't sink the •"

costs.

Gross Margin
1951

his
,

RIOT BEHIND BARS

Skipper gets beyond

Potomac

advantage has been
the existence of so-

"fixed"

receded

s

BAWL STREET TRADERS

ON THE HIGH SEIZE

^

ot

in

TRUMAN IN TROUBLE

,

period of

over a

going reached in 19

1950

consequence

-

this period. The marked c
spondence between the mdex for
the average, ^x panse ..per sales
transaction, 193, and t
d P» t

In

specialty

g

heightened interest of c
sumers m big-ticket items
v

39%.

1951.

,1

the dollar amount of the average
sales check. This latter figure exceeds somewhat the advance m the

taxes

parel stores experienced poor
sults

com.

slightly greater than 100% rise m

called

Departmentized

—~

since

the

from
,

1950,
were

dollar sales

store

resulted

#

#

gained from

As compared with
dollar net earnings of

department

...

.

The approximate tripling of de¬

sumer's dollar.

the

...

_

mdex

an

higher -bination of a 40% increase in the
number of sales transactions and a

reduction of gross
of net sales as

a

wlth

var,Ptv stnrPS

lower initial

compared with 1950.

total

The
Hit

UU1UV.11,

of

markdowns and
markon

burden.

XX

the

under

BAWL STREET

not, of course,

were

peculiar to 1951; this difference,
solidly established by the data for
practically all preceding years in
this series of studies, merely spotlights
stores

the fact that these small
play a simpler role in the

distributive

large
tailer
In
per

process

integrated

than

do

the

wholesaler-re-

types of establishments,
terms

Corp.,

recently
arranged by
Hill, Thompson & Co., Inc., ox
New York, and Watling, Lercheit
& Co., of Detroit.

of 258.

mented

months

about

^

markdown

pur¬

chase of Buhl

^

The Iowa Power & Light Co.
furnishes electricity and gas in

advance 4%.
sales the in- Des

17.070
17.6%

irom
from

®

partment

IX

Chair¬

Manufactur¬

....

^

as

man.

top

J

—

of
Mr.

Lawrence

'

1

Co.

Magid will

the

over

volume the company's program for congroup have been somewhat more struction and acquisition of ad
as
n+i 1 i+v nlnnf
whirh
aiert to the necessity of expense ditions
o
will
control in this period than has m the years
»
been
true
of department store require" expenditures
of
about
managements in general.
$36,000,000.
managements

Buhl.

Detroit.

previous bonds, and from the sale of 226,835
years
in
comparison with the shares of the company's common
stores in the next lower volume stock being offered to its present
classification.
Conceivably
the stockholders, will be applied to
widened

group

board

the

Manufactur-

101.34%.

of

the

of

&

Light Co. first mortgage bonds,
ally the case, one of the lower 3Y4% series due 1982, at 101.93%
ratios, 32.7%, was that shown for and accrued interest. The underthe group with sales of $50 mil- writers were awarded the bonds
usu-

e re~

May
T
1.86%
from 101-86%

offered $10,000,000 of Iowa Power

is

~

the bon s ^ay

pnces ranSing

Halsey, Stuart Offers

a

As

redeemable

from 104.91%
sinking fund pur-

100%*

in the $20 to $50

classification.

are

re-

ranging

JX

Stuart & Co. Inc. and
associate underwriters on May 22

a

thn fielH of retail
54%
sion
of1 expense 'nomally ^54 %
^eft.,stf.res ^
The
£ J the total cost of doing
d^tnbubon has diminished. The
?x.es'
h^Lr potat than
Qti i?Ircnrmi business to
ttla' In
m
disposable personal

a'g^Xr^n^ormaTdegre"'and ^

advance

in
in

~

three

^

.

gas business and the
mainder from heat and ice.

the preceding year.
tne
year,
'l'ne
The
functional
groups
repre*sented in the rise were adminis4.1

the

million,
of 32.5%

$5 million group to

high of 34.0%
million

all

of

in

cents

,

*

g?st tural

only from 71 cents in 1950 to 72.5

above $1

groups

thp lartw

ifLlv

Mtmn

was

forward
xurwara
of dollar expenses, and the
percentage cost of doing business
recorded a substantial rise to
the
extent of 1.05% of net sales. In

not
nut

orlvanno
advance

the

recorded since 1941.

On

th

j

1950

characterized the postwar period.
The common figure of 33.2% was
QVer 5% of saleg greater than the
corresDOnding figure for 1946 and
corresponding
was/~[n fact~ the highest figure
was,

year

department store sales did not increase

-fVi

ftniv.A/4

,

in

the total cApcuac icitc aij. j.</ua avliit:
luicti
expense rate in 1951 resumed

i-

.

After the small decline

sales

1950 results.

over
,

According to

p

lower

to

gross

18.3%, for the next to

?„l„!C^!0n:„I.l,(;enls„Permoved
sale5
transaction payroll costs

cf

dollars

and

presidential bee. Get the

tip-off

on

this wonder stock

from the Bawl Street

JOURNAL

t

Order

now

at

$1

a copy,

Walter H. Weed, Jr.,

c/o Union Securities
65

from

Circulation Manager,

Corporation,

Broadway, New York, N.Y.

cents

sales transaction gross margin

the

Send check with

application.

ONLY $1.

Journal.

24

The Commercial end Financial Chronicle

(2252)

Continued

Mutual

Role of

Equities in
Savings Banks' Investments

Walker, President of the First National Bank of

Philadelphia, at Ninth Annual Conference with correspondent
banks, opens discussion, pointing out high taxation forces bank
mergers. Dr. Lionel D. Edie discounts impending depression.

produce

net return after taxes

a

of only 1.25%.

general

in

business

1953.

Despite this possibility, op¬
timism was the keynote of Dr.
Edie's

talk,

stated

that

and he emphatically
he could foresee no

role

to

banks

and only one

one

play in savings bank

vestment

in¬

policy. Mutual savings
not justified in assum¬

are

ing the risks of equity investment
to seek

capital gains. They do not
during this pe¬ require increases in income and
riod.
A
$60 billion backlog of capital value to offset the decrease
public works, elimination of gov¬ in the purchasing power of the
ernmental controls, easing of the
dollar—a hedge against inflation
money
market, increased supply —since their liabilities are stated
major depression

Lionel

Addressing

sylvania, New
Maryland and
B.

Walker

Banks

declared

materials, and

scarce

modi¬

a

that

Municipal Forum

Conference June 12

May 20

on

taxes, in some instances, are

forcing

road-block

York

Municipal
will

ference

for

Commodore

Attention

also called by Mr.

was

Walker, who

of

President

the

is

delphia, to the serious threat fac¬
ing private enterprise inherent in
seizure

steel

the

of

government.

the

by

that

warned

this

industry

further

He

thinking

be applied to the banks as

could

well.

Philadelphia, C. J.

Cable, Jr. and W. H. Hurtzman
highlighted the impact of taxes on
bank

earning power
continuous
tax

and the need

planning in
order to produce the greatest pos¬

the

at

review

to

the

vast

pal public
ments

improvement require¬
consider

and

the

of

some

82%

on

that

Federal
reached

now

bank

income

point

a

pay as high as
portion of its income by
of 52%
normal

a

can

the

combination

tax

and

profits.
veal

of 30%

surtax

on

excess

Authoritative figures re¬
the banks in the Third

that

Public
that

it

works

would

experts
at

cost

estimate

least

$100

billion over the next ten years to
finance the accumulated, and ac¬

local

and

for

government

high¬

ways,
streets, schools, hospitals,
housing, sewage disposal systems,
water

other

and

public

service

enterprises, urban redevelopment
public improvements.

and other

The

Municipal Forum

proposes

of

financing this huge
backlog; consider practical meth¬
ods

of

long-term

financial

ning; weigh the limitations
types

and

state
be

and

local

purposes,

debt

safely

outlook
where

incurred;

in

of

some

large

plan¬
on

amounts
which

of

may

review
the

the

the

fields

capital

outlays are
ing as much to the government in urgent; and consider certain major
taxes as to their stockholders. It projects now pending.

Federal Reserve District

demonstrated

was

not

that

sufficient

now

maining

counts, and

as

a

pay¬

are

Specialists in public finance and

re¬

there

earnings

bolster

to

are

in various public works and plan¬

ac¬

consequence

ning fields will address the

the

capital

ference and direct

ratios of capital to risk assets and

capital to deposits leave much to
be

desired.

was

the

At

same

emphasized that

tinue

to

maintain

we

time

must

it

con¬

strong,

a

pro¬

gressive banking system. A com¬
parison was made of earnings for
the

period

of

1938

to

equities

1951, indi¬

will

rate

thereby

con¬

discussion.

Among the speakers
gram

Frederick

need for

Carl

H.

Chatters,

H.

Executive

is the contribution

make in meeting the

higher over-all yields

Di¬

on

savings bank portfolios, we must
keep clearly in mind the substan¬
tial added risks

involved.

investments,

their

by

very

nature,

than

the

ment

available to mutual savings

entail

other

risk

greater

types

invest¬

of

banks.

fluctuation

market

in

which common stocks

larly subject.

to

particu¬

Earnings, dividends

market prices of many com¬

and

equities tend to rise sharply
period of prosperity., This

mon

in

prices

are

a

makes them

all

the

vulner¬

more

able whenever less favorable

nomic conditions lead to

eco¬

decline

a

in

earnings and dividends, and
consequently in stock prices. In¬

bank

earnings

dividends

both

the

yield

realized

decline

high,

may

see

value

and

the

are

market

the

on

sharply

in

a

investment

subsequent

recession.

The

gives

investor

in
equities also
the contractual creditor

up

to fixed

cipal

payments

holder

that

the

prin¬
bond¬

the mortgage lender
Stockholders
occupy
a

and

possess.

junior

interest and

position

to

creditors,

and

stockholders to preferred

common

Earl E. Bond Joins

political

barring

and

economic

all-out

reduction

in

the

war,

outlook,
portends a

personal and

corpo¬

rate income taxes.

Based
Edie

upon

this

dividend

reduction

that

Dr.

predicted reasonably steady

business conditions for the balance
Of

1952, gradually evolving into




a

so

apparent to all during the

and

high¬

rate of return from investment

equities

through

either
or a

their

mutual

equity fund.

ing individually, rather than as a

It has been found advan¬
in some cases, however,
savings banks to join
in making mortgage Ibans.
group.

tageous
for

mutual

technique is the tim¬
ing of equity purchases so as to
avoid

heavy purchases of stocks,
particularly more volatile issues,
in
periods
of
relatively
high
HARTFORD,
Conn. —Earl
E. prices,
however
justified
such
Bond has become associated with
high prices may appear in the
Schirmer,
Atherton
&
Co., 49 light of earnings and dividends at
Street.

Mr.

Bond

has

re¬

the time.

cently been associated with
Walston, Hoffman &
Goodwin.

timed

Prior

Equity purchases

can

be

example:

thereto

conducted

h i

for
s

many

own

business in Hartford.

years

he

investment

business

when

recession

the
equities fund would assure
relatively that
specially trained personnel
low. This involves basing invest¬
would
administer
as
their
full
ing decisions on business forecast¬ time
job savings bank investment
ing.
in equities, to take full advantage
A
second
basic technique for
of techniques for increasing dol¬
sound
equity investment is the lar income while
minimizing risk
selection for purchase of issues
through skillful timing and selec¬
that promise attractive yields with
tion.

apt

are

minimum
either

to

risk

be

of

a

decline

in

to

paying
(1)
some

Such

fund

a

can

conduct

an

market

price or dividend equity portfolio much more eco¬
payments. Selection of equity se¬ nomically,
per
dollar
invested,
curities may be governed by the than
savings banks undertaking
following principles:
to hire trained personnel for this
(1) Purchase of preferred stocks purpose
individually.
With
a
and

of regulated
fund, there should be less risk that
public utility and equity purchases would be con¬
telephone companies. The limita¬ centrated in periods of exagger¬
stocks

common

industries

like

or earnings
ated optimism, and sales in pe¬
sharp rise in market riods of deep pessimism, to which
price in good times, and so lessens the stock
market
is
peculiarly

prevents
the

a

risk of decline in recessions.

minimize

excessive

Purchasing
such modest

the

prices

risk

by,

only -10%

proportion

sensitive.

And,

finally,

a

fund

Selection of such issues is particu¬

would

larly desirable in

tees and officers of savings banks

boom

period

growth

stocks

a

like the present.

(2)

Purchase

lessen

pressure

upon

trus¬

to devote

of

their

an unduly large part of
energies and time in order

like chemical issues where future

to do full

increases

complex job

justice to the necessarily
of administering an
profits will lead to higher divi¬ equity portfolio in which, at most,
dends that will lessen the danger only 5% of resources can now be
of

in

sales

lasting

any

volume

and

where

in price, committed.
Unlike
happen to be

decline

bought in
(3)

stocks

a

relatively high mar¬

Favoring

stocks

indus¬

of

open-end

investment

trusts that sell their shares to the

public, an equities fund for mu¬
tual
savings banks involves no
material

initial "loading charge"
profits are
or
annual expense.
Expenses of
the business
cycle, so that market prices and operation should actually be less
than if each savings bank did its
dividend
payments
tend
to
be
own equity investing.
At the same
relatively stable.
(4) Selection of industries and time, through a board of directors
companies whose prospects are comprising investment officers of
a
number of savings
banks, an
much better than average, while
equities fund would benefit from
avoiding those whose prospects
the talents,
knowledge and ex¬
are worse than
tries

whose

least

sales

affected

and

by

average.

(5)

Selecting stocks of

nies that have little

debt,

a

strong

cash

or

no

compa¬

bonded

position

and

good management, on the

that such enterprises are
likely to maintain dividend

more

payments during less
periods than others.
A

favorable

third

basic
technique for
equity investing is the sys¬
setting aside, out of in¬
come and
capital gains that may
be realized, of a reserve for mar¬
sound

tematic

ket depreciation and
Such

a

reserve

capital losses.

set aside

regularly

perience of

men tho¬
savings bank
principles,
practices
and objectives.
A mutual equities fund conduct¬
ed exclusively by and for mutual
savings banks would have another
great advantage over other invest¬
ment funds.
Its objectives would
be
exclusively those of mutual
savings banks, and not of other
types of investors with different
aims and operating under differ¬
ent conditions.
An equities fund
for savings banks would seek only
the higher
yield available from

roughly

a

number of

versed

in

investment

affords protectioin against equity
investment depreciation or losses
that are bound to occur in time

despite skilled

equities, avoiding risks that other
funds incur to secure capital gains
or to
hedge against inflation. At
timing and selec¬ the same time, a mutual equities

This fund would conserve for mutual
savings bank participants all of
the tax advantages
provided by
reduced by a temporary deprecia¬ equity investments, under the fa¬
tion in market prices of common vorable provisions of the Revenue
stocks owned such as would hap¬ Act applicable to registered in¬

tion of stocks for portfolios.

(Special to The Financial Chronicle)

Pearl

premise,

savings bank de¬

a

ground

of

One such

Sshirmer, Atherton

of

prices

risks

rector,

adjustments of reserves, etc.
Edie, New York

averaging for

to outright dollar

siring to purchase equities to step
up income at a more rapid pace

proven

great depression of the 1930's.

D.

sible exception

stockholders, incurring the added

came

Lionel

New

these

secure a

in

ket.

and

relieve

Dr.

dollars

when prices are low than
years of high prices.
A pos¬

present, at prices that seem rea¬
sonable
enough
when earnings

proper

economist, told the conference

stock

in

banks

apply

individual investment

years

in

even

were

the tax burden through
timing of various security
transactions, planning of expenses,

in

can

techniques to

Traditionaly,
mutual
savings
desired, which is
banks have generally done thtir
known as dollar averaging.
This
own investing.
In the purchase of
avoids the risk of concentrating
purchases in a period of high government and corporate bonds
and in most types of mortgage
prices. It also results in the in¬
vestor acquiring more shares for lending, the banks have found the
balance of advantage in proceed¬
the same
number of

vestors who buy stocks in periods
of
business prosperity,
like the

The American Municipal a junior
position entails.
Association; Lennox L. Moak, Di¬
at a low ebb compared to
Techniques for Reducing Risks
industry rector of Finance, City of Phila¬
from 1946 to 1949, the base
period delphia;
Wilfred Owen, The
While
the
risks
attaching to
for excess profits tax
computation, Brookings Institution, Washington, equity investment are thus greater
again imposing a penalty on banks D. C., author of "Toll Roads"; than those incurred
by investing
for tax purposes.
Paul Studenski, Prefessor of Eco¬ in
mortgage
loans
and
bonds,
After pointing out the need for nomics, New York University and techniques have been evolved by
financial consultant to the New
professional investment managers
bringing these facts, so detrimen¬
York State Division of the
Budget; for reducing and coping with these
tal to banks, to the attention of
and A. H. Wieters, Sanitary En¬
the proper authorities in
dangers, just as techniques have
Washing¬
gineer D i r e c t o r, XJ. S. Public been worked out for
lessening the
ton, it was illustrated by actual
Health Service.
risks in mortgage lending that be¬
examples how banks could partly

cating that

er

savings

State

other

tion of their dividends

The greatest risk is that of wide

claim

the pro¬

on

Allen,
Harrison, Ballard & Allen, City
Planning Consultants; Frederick
L. Bird, Director of Municipal Re¬
search, Dun & Bradstreet, Inc.;
are

>

as

can

Equity

pointed out
a

Desirable

financing.

methods

have

dividend

Risks of Equity Investment

con¬

to examine the possible means and

taxes

trend of its surplus account

stable

Hotel

sible net income after taxes. They

where

common

York

from

ratio in the face of deposit growth.
The
prospect of maintaining
a

cumulating, capital needs of state

Vice-Presidents of the First Na¬
tional Bank of

for

12

Bank of Phila-, major problems involved in their

the First National

They

New

all-day

an

June

on

of

accumulation of state and munici¬

ratios."

the

Forum

hold

to the

raising of additional capital
the strengthening of capital

dollars.

be improved.
The

and

banks

mergers
of
a
serious

"constitutes

in

higher yield
equities, so

ward

NY

National

First

the

of

correspond¬

nually of the total

riods

Ninth

the

at

of Philadelphia

Bank

Penn¬

from

Jersey, Delaware,
Virginia, William

Annual Conference of
ent

Edi®

than 300 cor¬

more

bankers

respondent

D.

Mutual

Savings banks in New York are
seek
only
a
now
authorized by law to invest
would
be
the
purchase of pre¬
investment in
in shares of investment companies
ferred stocks for temporary reten¬
gram all contribute to this think¬
as
to increase
the
to be owned by and operated for
ing.
over-all rate of return realized tion, pending gradual shifts into
mutual savings banks of the state
common stocks
to achieve dollar
Finally, Dr. Edie expressed the from earning assets.
exclusively.
averaging
in purchases of the
theory that plunging bond prices
The higher net yield obtainable
A mutual equities fund, run ex¬
latter.
would be replaced with an up¬ from
a
portfolio of high-grade
clusively by and for savings
(2) Buying stocks on a scale
swing resulting in a strengthened equities will mitigate the adverse
down and selling them on a scale banks, offers several advantages.
market condition. "Don't be pes¬
effect on the net income of a sav¬
It would provide adequate diver¬
up, which is known as investing
simistic," said Dr. Edie, "but have ings bank of a
sification even for a savings bank
creeping rise in its
by formula plan.
hope and faith in 1953."
whose equity holdings are rela¬
operating expenses and will pro¬
(3) Buying stocks only in pe¬
vide help in retarding a down¬
tively small. Far more important,
of

fied extension of the defense pro¬

William B. Walker

a

investment

/

Equities have
in

or

Equities Fund

And the Business Outlook

recession

Thursday, May 29, 1952

.

.

Direct Investment

from page 11

Taxation, Bank Earnings
William B.

.

of

for
or
an¬

would cushion surplus ac¬
counts or net earnings from being

reserve

pen
a

in

a

depression period.

mortgage

serve

reserve,

Like

the equity

would lessen the risk of

re¬
en¬

vestment companies,
The

decision

invest

in

as

to

whether

to

directly or
croachment (through possible de¬ through a mutual fund is one that
preciation of assets held by a sav¬ each savings bank will make for
ings bank) upon the surplus fund itself. A savings bank may also
required by statute to be main¬ decide to invest directly in hightained

for

depositors.

the

protection

of

its

grade

equities

preferred

stocks,

for

ex¬

ample, while utilizing the mutual

Volume 175

Number 5120

.

.

.

The Commercial and Financial
Chronicle

(2253)
equity fund for the balance of its
stock investments to assure itself
of

the

full

time

services

of

chases that have been evolved
by

professional investment managers
over a period of
years, as well as

spe¬

cialized personnel and continuous
supervision
of
common
stocks,
which offer a
higher

provide

cushion

a

tion

losses.

or

savings

of

banks

in

New

equities in savings York have the choice of
investing
investment policy, let me in
equities directly or through a
reiterate in
concluding, is solely mutual equities fund set
up and
to secure a
higher rate of return operated
exclusively by and for
than is available from
any other mutual
savings banks.
Such
a
bank

class of investment
open to mutual

fund

savings banks.

This higher rate of

fied

return

particularly desir¬

is

now

stable
and

while

maintaining

dividend

coping

rate

with

for

a

a

deposits

creeping

in¬

in

crease

operating expenses, the
gain in deposits, and
Federal taxation of retained earn¬
accelerated

ings of

savings banks.

many

Greater risk attaches to
equities
than tv other

types of investment

open to mutual

must

savings banks. We

recognize

The

dangers

this

all

times.

be

can

ticipating savings banks that the
timing and selection of equity
purchases will be designed
solely
to secure a
higher rate of return
for them with minimum
risk.

Investments by mutual savings
banks in equities,
directly or indi¬
rectly, will make possible larger
additions to the surplus accounts
and

of stock pur¬

margin future
growth. Such investments should
prove helpful in dealing with the
hard
problem
facing
savings

of

surplus
expansion

up

deposits.

Wilde, President
America, says registration
their

or

policy

of

Life

Insurance

Speaking

holders,

behalf of both the
Life

which

he

Life

Convention,
President, and

is

Insurance

of

the

Association

of

America, F. B.
Wilde, on May
20,

told

House
terstate

losses

Foreign Com¬

secu¬

Frazar

B.

Wiidc

rities with the

Securities and Exchange Commis¬
sion is unnecessary for the
pro¬
of

life

insurance

holders and would be of
fit to them.

policy¬
bene¬

no

He declared that such

registration

"would

represent

an

extension of Federal
regulation into a field where pri¬
unnecessary

officers

of

life

in¬

are

anticipated

and

are

These officers, Mr. Wilde con¬
tinued, are experienced, although
"they do, on occasion, make mis¬
takes; and when the mistake in¬
volves

large or well-known bor¬
rower, then this mistake receives
a

a

great

deal

of

pecially when

the

publicity,

Wilde

then

listed

for

investment

regulated

by

the

pointed out that it
tion
the

of

states,

and

the inten¬

was

Congress, when it passed
Act in 1945, that

McCarran

regulation of insurance should be
left to the states.
Mr.

Wilde

realistic"

tain

that

allow the

distribution

and thus
the

idea

"not

at

insurance

on

of

economic

a

closure.

This

information, accord¬

ing to Mr. Wilde, is
accessible

buyer
that his

timate

is

more

the

because

borrower

plans,

to

so

readily

institutional

the

not

will

be

of

one

Activity in the market has been spotty because there
been

intervals

of

limited action.
down

substantial

and

then

periods

The, thinness of the market occasioned

a

of

very

quoting

prices, largely because of the desire to avoid purchases
due to the pressure of liquidation.
Switches and
swops, mainly in the restricted obligations,
are the results of
adjustments that portfolio managers are making in their holdings.
than

re¬

conditions

have

business

and

to

com¬

executive

cited

difference between the in¬
investor and the
in¬

stitutional




Broadway,
York

City, members
the

of

New

York

Stock

Exchange,

as

manager of
the
trading

department.
Mr.

Mulligan

was

asso¬

with

Joseph
Manus
as

Co.,

manager of

the
d

Mc-

&

e

trading

partment

and

Portfolio
The

conversion

ments, which had
list.

There

Changes Abound

program

marked

has

brought with it

effect

adjust¬

many

the whole Government
moving around among the various
institutions sellers of certain bonds and

a

upon

considerable

was

securities

the

place in order to raise funds for the exchange offer, and
not inclined to dissipate their buying power during the
conversion period.
As these sales for cash come to an end, posi¬
were

tions of dealers and traders will most

likely be rebuilt, if market

conditions warrant it.

N. Y. Stock
Richard

M.

of the Board

New

York

Ineligibles in Spotlight
Many of the institutions that are going along with the ex¬
change offer have also been making changes in their other hold¬
ings of the restricted bonds.
This has resulted in a fairly good
two-way market being established in most of the ineligible obli¬
gations.
As a result of this moving in and out of the varieus
issues, there has been a good demand reported for the 1963/68s
and

1964/69s and the shortest restricted issues.

the

1966/71s

and

the

earlier eligible tap

1965/70s have also

bonds

In

some

instances

been

replaced with the
have the two longest maturities, the

as

Stock

President, will be guests of honor
the

at

ment

53d

Annual

the

of

C.

The

Financial

among the various restricted issues is that certain institu¬
tions, not going along with the exchange offer or just making a
partial exchange, believe that the time is right now to make long
delayed portfolio adjustments.

Warren III

has been

added

to

the staff of Hope &
Co., San Diego
Trust & Savings Building.

With

June

nounced.

The outing will be heM,

as

A.

John

ated

with

Aucoin is

Amott,

now

The lower

Baker

&

Co.,

Incorporated, 150 Broadway, New
York

City.

He

was

formerly with

it

was

an¬

usual, at the Winged Foot Golf!
in Mamaroneck, N. Y.

Club

Some 200 Stock Exchange mem¬
will compete for the Gov¬

bers

ernor's

Cup, according to Edwint
Crandall,
Chairman
of
thes
Exchange Golf Associations
The cup is presented annually by?
the Exchange's Board of Gover¬
low

the

to

nors

net

An

golfer turning in Hi©

score.

additional

members

300

market

that

day,

and

to remand*

for the annual dinner.

,

Lyden, of E. Lowrtx

& Co., won the Governor's Cup>
last year, with a card of 87-18-69;;
while Reinart M.
Torgerson, of
R.

M.

Torgerson & Co., won low-

gross with a score of 75.

Davies to Admit
SAN

FRANCISCO, Calif.—

market, and it is indicated that not

a

few

shrewd operators believe these issues embody appreciation
possi¬
bilities.

To be sure,

prices have not bucked the trend of the

San

change,

Francisco

will

Stock

admit

Ex¬

Ernest

With Geo. Eustis Co.
to

The

Financial

Chronicle)

June

5.

mar¬

ket, but according to reports these two obligations have been go¬

ing into strong bonds.

There has likewise been

takings of the 2V2s due

1963/68

by this

although these purchases have not been

same
as

important

some

group

large

of buyers,
those made

as

U. S. TREASURE

in the 2y4S.

The

2V2s due 1962/67 have been under selling pressure and

non-bank

other

continued

owners

hand,

to

use

this

issue

commercial banks have been

as

a

STATE

means

lending

was

a

favorable time to

MUNICIPAL

acquire this obli¬

SECURITIES

;

This buying has been cagey and well done, since it has

been

in

quite

a

were

considered

not

too

large amounts at

any

one

time.

Nevertheless,

few bonds have been acquired and the average prices paid

satisfactory.

Money is still tight and this is keeping the market
There likewise is
may

a

raised

by the Treasury, through the exchange

as

bit

on

some

develop around the 15th of

The

guesses

a

growing tendency in

June.

be

and

scale

to the amount of

new

money

that will be

offer,

to

appears

tending toward the optimistic side.

Aubrey G. Lanbtoit
Sc Go.

Welch & Co.
LEXINGTON,

Ky.

Formed
—

Frederick

Three With Waddell-Reed
(Special to The Financial Chronicle)

CINCINNATI, Ohio — John D. P. Welch is engaging in the secu¬
LINCOLN, Neb.—Sam Ii. Aden,
Boyce has become connected with rities business from offices at 156 Winona L. Busing, and Glenna D.
Geo. Eustis & Co., Traction Build¬
members of the Cincinnati

ing,
and

Midwest

Stock

Exchanges.

El

Charleston to partnership am

INCORPORATED

(Special

®ff

the Exchange are expected to turri
out after the close of the stock:

and

yielding but coming eligible 2V4S have been well

taken in the defensive

quarters to be watchful for what

associ¬

17,

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

Eligibles Finding Favor

the indefinite side.

Amott, Baker

cm

Tuesday,

Davies

gation.

Chronicle)

Tournat-

Exchange

about

shakeout in the market

Calif. —William

Golf

Stock

J. Kenneth

Although these various switches have not been too easy to
carry out, because of the thinness of the market from time to time,
they have been put over nevertheless in a satisfactory way, even
though it did involve considerable shopping around and a fair
degree of patience.
One of the principal reasons for this moving

support to the newly eligible 2 J/2s and many of them believed the

to

Exchange, aiwE
Exchange's

G. Keith Funston, the

2V2s due 1967/72.

the

DIEGO,

Chairman!"

Crooks,

of Governors of the

Stock

On

(Special

Exchange

Golf Tournament)

H.

being exchanged for the non-marketable 23/4S due 1975/1980.

SAN

,

Blair, Rollins & Co., Inc., for
eight years in a similar capacity-

Treasury issues, with some
others buyers, because new schedules of
holdings were being
worked out by owners of Government securities.
These switches

been

Hope & Co.

E.

was

obtaining the cash that will be turned in with the bonds that

With

Frank

prior

thereto
with

are

apprehensive

revealed

insurance

volume

have

of

rather

115

New

ciated

prospective Penington, Colket & Company.

petitors.
The

as

for

disclosures, including in¬
details

a

Going back further,
including losses arising from
depression, the losses still are

method, the
particularly good po¬

sition to obtain adequate informa¬
tion and full and
complete dis¬

Opinion seems
happen to the market with

and

pro¬

facts,

quotations because

many

securities

ways insisted on all material

a

as

su£r

ob¬

buyer has al¬

on

subside.

favorable.

all

and where the purchase is
by the
direct
placement

buyer is in

have

fered virtually no losses

give added protection to
buyer.
He
a

companies

sult of bond purchases
during the
last 20 years, a period in which

institutional

stressed that such

as

Mr. Wilde pointed out that life

extremely small in comparison
registra¬ with the total assets
invested.

SEC to

information

more

posed

evenly divided

should

to what may
the exchange offer out of the
way.

by direct placement.
You hear
nothing, however, about the other

the

termed

the

tion would

to be

is

99 and 44/100ths percent of direct

the

subcommittee the various ways in
which the insurance business is

pressure

es¬

placements which work out ad¬
vate enterprise is now doing an
vantageously, the borrower paying
outstanding job under state super¬ his interest and
his principal ac¬
vision."
cording to schedule."
Mr,

offering today, the

new

of the need for conversion funds

income

insurance contract."

place¬

tection

surplus

of

for and do not impair
validity of the individual life

the

c o
mpulsory
registration of

ments of

in

provided

that

direct

company
sets
aside
funds
some
portion

large sums of money in fixetf
obligations over a long period
without
sustaining some losses.
However, these small investment

and

merce

an

life insurance

as a

vest

In¬

on

investor, the fact that

institution such

companies and of other
institutions," he explained, "real¬
ize that they cannot
expect to in¬

the

With the books expected to close

to take

surance

Com¬

mittee

dividual

matter of conjecture.

a

the

on

a

in order to get the necessary cash in connection
exchange offer for the non-marketable 2%s. This has
had a tendency to keep the market on the
heavy side because
dealers and traders have pulled out bids that would
ordinarily
lend support to prices.
They were well aware that liquidation had

regulation.

"Financial

Commitof

largely

term

ment losses.

Commission
-

larger number of exchanges and more new
cash for the Treasury than was
expected, or whether those mak¬
ing the conversion have less ready cash than they counted on is
means

against long-time cyclical invest¬

Securities and

Sub

Whether this

they

the

Exchange

tee

prices in the Government bond market
attributed mainly to the selling that had to be done
in order to raise the cash which must
accompany the exchange
of the last four restricted issues for the non-marketable
bond.
be

with

of

unnecessary

on

American

Association

will not benefit insurance
companies
and would represent

extension of Federal

shake-down of

to

Goodbody & Gc.

Mulligan has become
associated with
Goodbody & Co.,

mainly with the various restricted obli¬
gations, although there were some important adjustments made in
the bank eligible securities. In the first
place there has been some
outright selling of the ineligible bonds as well as certain short-

Of Direct Placements With SEC
B.

The

and swops were concerned

Companies Oppose Registration

F.

For
Frank E.

to

reserves

minimized, banks today of building
techniques of to keep pace with the

however, through
timing and selection

Life

at

provide specially quali¬
par¬

savings bank surplus accounts and
reserves

can

management on a very eco¬
nomical basis, and assure to

able to assist continued
growth in

'

seems

Mutual

Mulligan Trading Mgr.

Governments

on

By JOHN T. CHIPPENDALE, JR.

for

absorbing
possible future market deprecia¬

Conclusions
role

Reporter

of

which involve greater risk of
de¬
preciation and loss.

The

Our

through the systematic setting up
reserves out of th*
larger in¬
come
realized
but
from
equities to

yield,

2&

North
firm
pany.

Upper
name
?

of

Street
Welch

under
and

the Irwin

Com¬

are

now

associated

with

Waddell & Reed, Inc., Continental

National Bank Building.

15 BROAD

ST., NEW YORK 5

WHitehaU 3-1200
B1 So. La Salle St.

45 Milk SL

CHICAGO 4

BOSTON 9
HA 6-6463

ST 2-9490

6

The Commercial and Financial Chronicle

(2254)

Continued from page

Public

Utility Securities

research.

Industiy's Stake in

formerly

a

Atomic

Energy

Light, but in the recent reorganization its holdings were

Power &

outstanding (vs. $1.50 pro forma in the previous year)
a
payout of only about 47%. It appears likely

flected

It would

company's

discuss
uenig
being done and what is
aune
dim
wutu
being planned in your great country but I would like to say a few
wnai
what

this re¬
that the

'

.

the necessity of using very large
expensive diesel oil to meet the rapidly expanding

unit prices of oil and
of

^

^

position

hope the

we

when
military
market for fissile material.
This

from

a

natural uranium pile, even

limited

from

a

costly, thermally inefficient

one,

the

that

research

in 1948 added

tend

we

and

think

to

peacetime

of

1950, but higher net revenues.
The company has made a specialty of by-products, earnings
from which (after labor costs but apparently before other ex-

First,

,.......

_

_

4.

and

for

uses

penses) amounted to $2,630,000 in 1951, which
revenues less labor costs of about $5.7 million.

compared with gas

Principal by-products are light oil products, carbon
pitch, petroleum coke, creosote, etc.
Considerable
currently being exported to Japan; they
have the advantage of having no ash residue.
The company hopes to obtain natural gas but timing is some¬
what indefinite. It has not been definitely settled whether it will
obtain gas which may be brought down from Canada by the West
Coast Company (controlled by Pacific Petroleums), or gas which
may be transported from the San Juan area in New Mexico by
Pacific Northwest Company (controlled by the Fish interests in
products.
briquets,

As

it

see

we

immediate

the

in

future the greatest need

and scope
for the well proven strength of
private initiative and competitive
spirit lies more in the second field
of finding profitable uses for fis¬
in

material

sile

yet unthought

for

seems

jf

the

in

here

will

dividends

natural gas to the Northwest is

the

once

Canada

building

of

mental

We

type.

dioisotopes which

are

As I have

for

permissible gas export, apparently because producers in the north¬
ern area have no prospective market for their gas except to the
.

.

We

believe

the

ideas

of

the

Westcoast

and

Company) people on delivered price and other
a working range for contract negotiations with
when their situation is such as to warrant definite negotiations.
of Alberta

must act promptly,

of u-235 and

We

eoloptoH

can

present and

Alberta producers this market for their gas, as competitive
pipeline interests are now busily engaged in gas drilling and de¬
velopment in New Mexico and adjoining fields, and propose to
build a pipeline from these fields to serve the Pacific Northwest.
We have given that company—Pacific Northwest Pipeline Cor¬
poration—a 'letter of intent' expressing our willingness to contract
with it, or with any other responsible company who may be the
first to assure us of an adequate supply delivered on satisfactory
price and other terms."
The use of natural gas is not expected to have any great ef¬
fect on the production of by-products since the company's Gasco
plant, with its high BTU oil-gas operation, with still be used to
supply about 10% of gas needs (particularly in the winter), the
plant being operated long enough to obtain residuals for produc¬

assure

tion of tar and light oil products in about the same quantities now
being marketed. It may, however, be necessary to scrap the $1,000,000 plant facilities now used in making carbon briquets and
other carbon products (not including coke).

research

about 6V2% is understood to be

allowed, with the by-product busi¬
considered largely non-utility.

We

the

on

tn

niir

to

our

con-

are

production

of

particular
as
the
heavy water pile with which We
plutonium by

of

type

a

known

reactor

have had considerable
As l have

tomum
sion

of

said in

broken

so

pound
is

can

be

as

obtained by burning 1,000 tons of
coal. We have, in theory at least.

Baltimore Bond Club
Annual

Outing
_

BALTIMORE,
of

annual

cast
GOia
Gold

Md.—The

Baltimore

outinp

Elkr

nn

will

hold

FriHav

dle^Club

Bond

Tuna

As in

its
fi

vears

be^'the Kickers^
Tournament Tennis Matches
tournament, Tennls Matches
there

Will

and free beer in the afternoon.

Guests tickets
vations

are

$8.00.

schemes
cuities

should be made with Ed-

ward J.

Armstrong, Stein Bros. &
Boyce, Treasurer of the Club.
Members
;

of

the

committee

on

the

enormous

_4x.414x.4~..

flnd

many

should not
of conven-

such, for surely
heat-producing posas

x:— :i~

x-

_

~

uses

as

x

~v,4

...411

l

~

will

material

fissile

of

sibilities

we

terms

heat in cherp-

iCal, metallurgical £nd other proceSses.
I still believe the most im-

applications have

portant

not

me

of
j

is

this vast field

{

jie

^

and

wbere

-g

sureiy

come

quietly into industry.
:
to uses in control

addition

In

and

this field

in

is

substituting iso.

,

.

directly in such operations
product sterilization,' in

topes

food

as

"king lumiiioiis "paints

important apnlica-

of the future will

directions

in

be

Many of us

the most

tions

andfor

certain chemical .re¬
feel, however,

acceieratin?

of

private and national divi-

there

procedures

testing

the possibility of
x-'
..J

that

utiiization that the real challenges

This
and; ef¬
usually

going on:in the plant.

of course, efficiency
ficiency
methods
have

acti0ns

information

present tday

where the use of iso-

is,

as

again repeat that in the

£

think

what is

•

yet been thought of.

progress
are many

probably

as

yet

me

sav

unpre-

d

In

closing

tried

to

let

I have
ideas
industrial

give you mv 1952

about the

prospects for

At

fas

there

present

as

hidden

are

in

diffi-

uranium

piles

our

pile and

as

the

heat

the

and_ from

is

low

economic

standpoint is of little commercial
value, but that situation is capable
of

being reversed by research.

far

as

a

most

nkely

be

found,

£ield where rate of ad-

reactors

are
really proplutonium with two byproducts.
The
first,
"isotopes,"

use

of

atomic

energy

industry may find its

of your
Commission. The
as
many units operating in pergreater
part of their findings,
haps a dozen countries and the however, are classified and -not
search for new uses,for the fissile
available to us and it mav well be
product will become competitive that mv views would even today
jn a world sense in>the same way
be modified materially h I was
as
novel chemical; electrical and aware of all their scientific facts

jn

four

countries

other wofld

I know in all other natural

uranium

-g ajSQ

other few years

I know in all other natural

grade

wdj

dends

and

within

an-

there will be twice

industries have

been

in the past. The utilization of fissile material for peacetime purposes

does not. seem to me to be

astronomical

activities

Atomic Energy

and

industrial exoeriences.

novel, largely secret
develooing area those
of national programs

But in this

and rapidly
in

charge

monopolies will must, just as a military comlast long.
J."^
"
mander in the field does, make
L. Burns, Baumgartner, Downing will always remain a real byi have said little about radiogeneral plans and then be oreSr
J' WilTm®r 5uiler' ,B,a^er' product but an important one that isotopes which <as you know are trred. and pyen pvn^t, to have
ts.
' J°hn R- Crunkleton,
will contribute
increasing reve;- a reai and important by-product to change t*em moidlv and perJr., Mercantile Trust CO. Of Balti"mu
=> --'Si
a leal dnu Hiipuxxaxxt uriituuuu
.«
— - -■-.
, '
,
ducers of

an

area

where'

.

more: Edward R. Freeman, Lock-

wood. Pack & Co.; W. Wallace
Lanahan, Jr., Merrill Lynch,
p;

Fenner

&

Beane.

^es;„Th^. second by-product, 0f reactors. A great"deal has been haps basically as the t apical and
,heat' which is presently value- said and writtep about their great
nns.hon manses.
less- we h°Pe some day will be- vaiJ as tracers-and analytical

Carrolj come a primary product providing tools in research in medicine, in

M- Martin, C. T. Williams & Co.;

immediate

Henry S.

is

Co

.

Miller, Mead, Miller &

Beniamin

D

Palmer

^

Alex

ben;,amm D• Falmer» Alex.
Brown & Sons; W. James' Price.

to

Wl11

our

therefore,
sizable pile that

objectives,

develop
run

One of

revenues.

a

at sufficiently high tern-

,h,.

biological

coiPnres

a

power

to find

a

grid

or

alternatively

profitable outlet for the

of

and

their

chemical

use

in

in-

and process work.

jn

are

fac|;

who
into

and

dusti-Rd'control^

'

arrangements are Jack A. Price & Co., and Joseph W. Sener,
Kolscher, Geo. G. Shriver & Co., Jr., John C. Legg & Co.




enor-

burns

many oi tnem.

significant

Reser-

power,

in

rases

there

and where
greatest opup fuel,
vance
wjp undoubtedly be more portunities. I wish you to accept
gives oil heat, and nnaily hands
imp0rtant than past achievement my remarks as highlv speculative,
back as much fuel as was used up.
and knowledge.;; Today outside of not dogmatic.
I realize full well
This sounds like a wonderful decourd;ry and Russia there are that our research effort is small
vice
but like all
get-rich-quick at least
etght reactors operating in comparison with the almost
which

furnace

a

At the present time our natural

Chairman; Arthur L. Baney, E. R.
Jones & Co.; C. Prevost Boyce,
Jr., Stein Bros. & Boyce; Walter

only

Let

there

up

much heat

as

think

However

permH vital tests to be
carried out that can be made in
no other way and jn innumerable
0ther cases their use enables many
ODerations to be carried out with
^ore certainty and efficiency than
was formerly
possible. This permits
more
rigid
control
and
enabies management to obtain a
mucb
more
accurate picture of

time pro-

same

ducing power.; Bit

reactor plu-

a

of 235 and from every

235

ferial while at the

to make

does tend

cnppiai'

spectacular and

sains bv their uses,

^fdoL

mentioned

^

immediate

si0Wer.

mously the reserves of fissile ma-

success.

produced from the fis-

is

emitted

gas

operations will find thorough descriptions in the annual report and
in the May issue of "Industrial and Engineering Chemistry"
(re¬
prints of the latter article can be obtained from the company).
The company is said to enjoy excellent relations with state
regulatory commissions in the Northwest. In general, a return of

rolafinn

relation

in

resources.

centrating
fissile

have been care-

in

selected

takes

of multiplying

possibilities

^

Thfs

aboVe, and of course there is the
breeder reactor with its intriguing
^

isotopes

Consequently, it is dif-

be.

strate

fuel supply

elements

proce¬

or

of

use

absolutely essential no mat¬
much better the results

iaraP financial

U-^ .isotope all the

fissile

pure

is already avail-

the

that

ap-

ficJit^in rrany^cases'to''"demon-

fr0m naturaLuranium to the

Way

tional

Our programs
lllir

a

fuel

for ra-

yours,

even

every

a

are

This

anyway.

how

may

small spaced Then there can
whole line of plants using
of any intermediate mixture

simply enormous

are

country,

no

fully

however, if it is to

Those interested in this discussion of by-products and of

to be

seems

weighs little and only

future aspect.

provide

The Province

said this

and carrying a year's

possible

of

areas

hope to cover

(Transmission
terms will

the

as

so

which

instrument

some

be power plants using almost pure
fissile material of-very small size,"

have to limit the scope of our hetivities

able

ter

field preeminently suited to

a

out

assist' in

to

most proposed

in

that

plications there

is not

be

of construction.

course

Speaking in
isotopes are used

carried

being
means

Industry

;

I think

in research.

as

that is auite natural.

Suited to Private

up

exploitation

.

;n industry

dure

and

River

the

in

xa
nut
u»c
is not the same

r-Cmau»
mctc
Perhaps there

glamour about the usesof isotopes

of,energy will n.t
importance.

A Field

product of reactors but we have
no
actual power producing units

Northwest.

done.

where the costs

we

it appears an ample supply could now safely be
made available, and from Which area one of the pipe-line com¬
panies ha3 contracted to deliver gas to us and other Pacific
Northwest distributors, subject to its obtaining the necessary gov¬
ernmental authorizations.
Instead, the Board selected the Peace

many coun¬
much yet to be

but there is

tries

of istopes has

industry

real by-

a

use

rapidly in

operations

course

uses

industrial

of

major

in

Gntnnp*

large sources

COntrol

that

of

are

producing and finding

nf

are

units
serving special purposes and point
sources
0f
great; heat
energy

experi-

an

C1mniv

Tcana^a^nd'creat BriteS

but

The

\ think must be for power

produc-

operating

in

reactors

..

.

???_!* th_e there
general as

terms

of

rathey in
nrofitable

d

in

as

moment

Original

largely

be

will

manu-

and
prOIliaDle
uses for them in existing and fu¬
ture industries. There is no short-

for

up

'

nriVinai

general

present com-

the

at

engaged

are

berta, where

Pacific

worked

be

can

if

products, and this

pelling needs of defense cease to
priority.

general interest, we quote as follows from President
Gueffroy's remarks at the recent stockholders' meeting:
"Unfortunately, the Province of Alberta Conservation Board
did not see fit to approve the export of gas from southwest Al¬

field

^at

fissiie material

be the first

broad

its recommended

a

the

Darticuiarlv in

finding

the
primary product. It is ingenious, competitive strength of
we
feel
private enterprise private industry.-There is a whole
ultimately find its greatest range of possibilities. There can

In

as

have

piles

'opportunities

Jg™ Pfbut

for
that

me

future it will depend on the markej.

.

tion of the

Houston).

region in northern Alberta

material

logical to

uranium

natural

longer any

no

fissile

demand

of industrial proc-

than

rather

esses

and

existing

there is.

and

the

to

I think the great-

isotopes

£dustr?al

egt

increased

is restored

peace

bombs it

material

make fissile

to

economically and then to find
profitable industrial uses for this
product.

amounts of briquets are

Since the question of bringing

being accused of

simplification it seems to us
that we have two broad problems,

Thus it would ap¬

that nearly half of operating profits are attributable to by¬
products. However, this was partially due to the fact that arbi¬
trarily low values were assigned to the crude residuals recovered
from gas manufacturing and used in producing the marketable by¬
pear

When

over

#

_

Stthe

obviously

could

power

be sold at low rates,

world

r*.s^

^

...

Club

o

a

a

greatly to the plant's capacity to use heavy fuel oil, and elimin¬
ated the necessity of purchasing high-priced diesel oil. This and
lower fuel oil prices reduced production expenses, and gas rates
were also reduced, resulting in lower operating revenues in 1949

ness

at

in some day

fissile material.

us

o+

sold

be

.

d

.

plant improvements completed

extensive

The

of

onlrl

ho

nom

can

be

will

there

°ou?se fnttiahv must iTe linked
^and assisted bv those pro-

good
price.
Theoretically,
at
least, if a sufficiently high price
for plutonium can be obtained

in
entire

measure

a

nrndnnml

nium produced

be

will

world

quantities
peak de-

ni„m

nrnhlnme

problems

own

in

are

we

means

mands.

our

^^vate^iW^6^^

:

to us in 1952.

First,
the

™

how

on

appear

growth during the

rapid

1941-8, followed by a two-year decline, but in 1951 there
was a gain of about 10%.
The sharp rise in 1947-8 reflected rate
increases occasioned by higher fuel costs, because of increases in

years

for me to

is
is

words

showed

revenues

nomic crux of the problem lies
with its uncertainties. There seems
little hope
that such sizable
power units can become cnmpcuumw
uewinc competilive with
conventional central
station power unless the pluto-

quite improper on

grounds

lany
many

payout will eventually be increased.
The

be

already'be¬

Here again I feel prog-

processes.

of energy in the form of heat. Here
participation in our program is wnere the eco-

simple answer.

that have no

greatly reduced, most of the new common stock being distributed
to the old preferred stock with arrears. The new common stock is
currently selling around 17
and pays 80c to yield about 4.6%.
With earnings last year of $1.67 per share on the 547,627 shares

are

ing used extensively in industrial

the field

questions in
private
industrial
posed

subsidiary of American

addition to their

But isotopes in

value in research

Portland Gas & Coke Co.
was

science

of

fields

technology may yet repay all
the efforts put into atomic energy

and

By OWEN ELY

Portland Gas & Coke

1952

Thursday, May 29,

.

the * various

in

6

.

.

hold

there

some

experts

J;'y°J;<;;cC;-PfC>enSThe
ANGELES, Gain.
ine

LOS

—

Taiyo^ Becurities Co. has been

formed with offices at 2U8 boutn

with-^ great deal of au-

thority that the fruits from the T. Ichioka, J. Narumi; G, Katow,
use

of isotope's^;&sit research tools

and J. Takeda.

Volume

175

Number 5120

The Commercial and Financial Chronicle

...

(2255)

Russell Phila. Mgr.

Typical Postwar Problems

Canadian Securities

"In. Japan where the basic essentials of
life—food,
shelter, clothing and fuel—are in chronic short sup¬
ply; where past mistakes, which no one recognizes
.

better than

do

Canada's

wealth

plus

sources

the

natural

of

wisdom

re¬

her

of

capacity

of

its

sources.

In

response

mands of

Neighbor

which

ucts

government and industrial admin¬
istration
makes
this
Northern

stalled

sequence,

she

she must have

industry
sell

can

in

markets

to raw'

access

into prod¬

can convert

in

which

management company.

she

'The
tax the

:'fi

and

complicated

difficult

the

U.

if

years

ics has been revealed probably for
first time in research on a

tractor

which

is

a

metric copy of a well-known U. S.
manufacturers' machine.
well-built

tractors—

Red

the* Stalinetz 80—have been
detailed
search

Tractor

found

given

examinations by the Re¬

Department at Caterpillar
Co., Peoria, 111., and were
be copies of Caterpil¬

to

lar's D7.

*

J. M. Davies, Research Director,

said
of
these
tractors, "In our
opinion, they are a well engi¬
neered, .well manufactured copy,

reflecting Russian practices, Rus¬
sian

machine

materials

tools

available

and
to

the

raw

the

Rus¬

sians."

Inspection revealed these sober-,

ing- facts:
(1)

The

machine
metric

Reds

to

fit

redesigned

more

the

convenient

dimensions—no

mean

en¬

gineering feat.
(2)

The parts

was

are

unimpor¬

rough

the

on

outside, but careful attention was
given where part finish and close
tolerance is needed.

available

differ

lurgy

the

on

slightly,

Red

copy

metal¬

is

very

good.
The tractors probably were
produced
on
an
assembly line
(4)

basis

similar

Mr.

chines

They
than

to

Davies
were a

are
we

of

Caterpillar's.

said:

"These

had expected."

The two Red tractors

tured

ma¬

great surprise to us.
much better quality

in

a

"The

battered

had

U.

S.

production

announced

been

reduced

to

only

3,446,000
increase of 53% over 1946

an

and

lead

A

S., the long-term

oil

over

and

60%,

consumes

of

28%

only

For

total

it

has

reserves.

In

fact, the U. S. is currently import¬

of¬

Street.

For the past
several

years,
Russell

Mr.

has

been

sociated

Blyth

as¬

with
& Co.,

Inc. in its New

York office.
luncheon

A

held

was

the

at

Racquet

Club to

intro¬

Stanley A.Russell, Jr.

duce Mr. Rus¬
sell to the financial

community of

Philadelphia.

Twin

the

into

iron

an

railway will link
with the

deposits

ore

St.

Lawrence.

all

of

this

estimated at

lion

and

The

Twin

its

production

by

high-grade iron

It is

ore.

ex¬

pected ; that this will gradually
stepped up to 10 million tons.

be

Reserves

are

estimated

at

high—initially

very

million

418

excellent grade and

tons

quality.

of

Most

Bond

annual

Bear

Club

picnic

Yacht

Club

the

at

The

—

will

hold

White

June

on

18.

Headquarters will be the Nicollet
Hotel, Minneapolis, and a cock¬
tail party on the evening on June
17 will be held at the hotel for

all members
Featured

and

at

guests.

the

picnic will be

golf

and
tennis
tournament;
shoes; swimming; boating;
cards; conversation.
Breakfast

a

horse

will be
at 9

been

than $200 mil¬

more

annual

City

available for

over¬

project has

1954 should reach 2.5 million tons

of

Club Annual Picnic

brought

economic reality.

Gulf of
cost

trackless

have

surveys

360-mile

new

extensive

were

in

Gily Bond

MINNEAPOLIS, Minn.

Quebec-Labrador. Later

area

these

was

Early explorations in¬

formations

wastes of

this

zinc

1951

dicated that there

40%

whereas this
country
55% of the world's

example,

years

in

production.

than

more

Even in re¬
substantial oil re¬

the

Broad

expansion

an

program which would increase its

production

each of these basic

Stanley

fice, 123 South

another

the

copper,

produces

is

the

depletion problem is present.

parts

ing

know

hard

to

to

Davies

con¬

fided.

"Hardness and toughness of
their parts are^bout the same as
use."

we

880,000 barrels per

ply and accounts for 80% of U. S.
where

where

and

tq®gh,"

on average

>2SSi

consumption.

The

predominant

position of Canada in the overall
pulp and paper industry may be

basically

attributed

forests which

to its great
by constant

are now

supervision and scientific applica¬
on a 'self-sustaining perpetual

tion

Bache & Co^

Sponsors

basis.' More than one-third of the

Financial News Broadcast
Bache

New

&

Co# members

York

sponsoring
program

Stack
a

of

the

Exchange, are
financial news

n®w

three?jtimes

weekly on
WOR radio at-:&15 p.m., starting
May 26. Henry^Gladstone will be
the

commentatpj

which

will

the program

on

feature

late

financial

and market comment.

total

area

ered by

of the Dominion is

forests

cover

The

Klanif to Join
Milwaukee Company
with*

the

Milwaukee

Exchange**in their Trading

Department.

473,000

square

miles and another 340,000

square

miles, classed as produc¬
not accessible, constitute

tive but
a

a.m.

from

7

12

early risers

Luncheon will be served
to

2

p.m.

dinner

and

at

p.m.

Registration fee for non-golfing
$6; for golfing mem¬
bers $8; for guests, $25.
members is

Committee

Chairmen

are:

E.

Edward Howard,

Hopwood,
Kenneth

Piper, Jaffray &
General Chairman;

C.

Joas, Ames, Emerich

reserve

of the output

necessary

From

for

a

for the
of

a

Shield

indus¬
country.
The

and

the

Rocky

physiography

supply of industrial hydro-electric
in

Canada.

Total

in

1951

was

double

that

of

It is estimated that Canada's

capacity
of about 13.5 million h.p. is only
present
nhnnt:

Canadian

Calvin
econ¬

unique—it is the only
major country in the postwar pe¬
riod that each year has had a sur¬
plus and reduced its debt.
"Perhaps the most indicative in¬
dex of the fundamental strength
omy

Government

is

Provincial
Municipal

Corporation

of Canada's current economic po¬

sition," according to the study, "is
the fact that its

dollar, which

was

discount as re¬
cently as September, 1950, is now
commanding a premium."
selling

at

a

10%

CANADIAN STOCKS

With B. C.

installed

nne-foiirth

hydro
the

Christopher

(Special to The Financial Chronicle)

KANSAS

CITY, Mo.—Glyndohas joined the staff
of B. C. Christopher & Co., Board
lin

B.

of

Trade

Jones

Building, members
the Midwest Stock Exchange.

of

A. E. Ames & Co.
INCORPORATED

Two Wall Street

New York 5. N. Y.

electric

production (almost entirely

hydro) of over 57 billion kilowatt
1939.

fiscal standpoint,

Bullock finds the

modern

massive and well distributed

power

a

for the future.

trialization
Canadian

CANADIAN BONDS

inflow of the Dominion.

"Substantial power resources are

Mountains afford the

David

cov¬

Actual accessible

forests.

production

Stock

largest

"Steel

of

pro-

announc¬

of

Phila¬

delphia

necessary

of

was

is

put of aluminum.

one-half

of the U.

serves

world's postwar out¬

two-thirds

today

to

of

second

the

of

pany

arq

spect

believe

Caterpillar's

of

is

ported from Canada.

hours

D7,

in

is

supplied by imports.
Furthermore, practically all our
requirements of nickel are im¬

Company,
20TTEast
Michigan
Street, member of the Midwest




important

very

ingot capacity 50% by the end of
1952.
Canada's total steel ingot

copper,

and

associated

their

hydro-power,

production (10 KWH
aluminum), Canada

lb.

geological

ed until

only recently.
Caterpillar engineers
the
illegitimate cousin

25%

iron

the'information has been restrict¬

However,

1

tion

.

condition

examination.

so

aluminum

tons,

power

an

expan¬

output

coming

non-ferrous

about

MILWAUKEE, Wis.—Op June
16th, David KRinn will become

make

single

low-cost

is

about one-fourth of world produc¬

cap¬

by
troops in Korea. Because the pair
were obvious copies of a standard
Caterpillar D7, the Army's Corps
of Engineers asked
Caterpillar to

in

In 1914 the U. S.

metals

,

Russians

make .them

news
were

which

U. S. output of

Anti-friction

bearings are very good.
(3)
Although raw materials

of

sources

world's lead, and one-third of the
world's zinc. By the outbreak of
the second World War, however,

all

10

Quebec Province, but
largest

Inc.

will be available for & Co., cocktails; Preston B. Shute,
Concerning the metric dimen¬ day of oil and oil products largely shipment to U. S. midwest steel Jamieson & Co., St. Paul, trans¬
sioning, Davies observed, "Con¬ from South America and the Mid¬ furnaces (to supplement the di¬ portation; Willys P. Jones, regis¬
sidering all the parts which had dle East, much of which, in event minishing Mesabi range reserves), tration; Merrill M. Cohen, J. M.
Dain & Co. and J. M. Wallace, Jr.,
to be changed, and also consider¬
of war, might well be unavailable. but an ample quantity will be re¬
Merrill Lynch, Pierce, Fenner &
ing the tolerances and fits of each
Thus, the present and future de¬ served for possible future require¬
of these parts had to be changed
velopment of Canada's natural re¬ ments of the Canadian steel in¬ Beane, prize solicitation; Leonard
to
metric standards, this
A. Murray, Piper, Jaffray & Hopis an sources will have the advantage dustry."
achievement reflecting no slight
Much has already been said of wood, tennis; Donald D. Grandin,
of a progressively increasing for¬
Merrill Lynch, Pierce, Fenner &
engineering skill."
eign market in addition to its own Canada's recent development in
He said proof that the Russians
oil and natural gas. This, accord¬ Beane, publicity; Carroll H. Babexpanding needs."
understand the principle of part
cock, Piper, Jaffray & Hopwood,
Recounting Canada's resources ing to Calvin Bullock, is undoubt¬
interchangeability was shown by and basic industries, the Invest¬ edly the most important economic prizes; Richard G. Egan, Mannthe fact that the actual Russian
in
Canada
in the heimer-Egan Inc., golf; Fred S.
ment Management Department of development
Diesel tractor engine operated by
Goth, Irving J. Rice & Co., St.
postwar period.
Calvin Bullock states:
Caterpillar for tests was assem¬
Highlighting other factors at¬ Paul, special; Robert Krysa, Har¬
"Canada's leading industry how¬
bled from parts* from two separate
tendant
upon
the
phenomenal old E. Wood & Co., St. Paul, en¬
ever is
pulp and paper—first in
machines.
growth during recent years of the
tertainment.
employment, first in value and
In
the
Canadian economy, the study re¬
opinion of Caterpillar first in
exports. Canada has been
views Canada's land and people;
metallurgists, the final Red prod¬
the principal newsprint produc¬
uct is just about what American
its
gross
national product; the
ing country of the world for more
manufacturers would have done
Canadian fiscal policy; and the
than 25 years. Today it produces
if the same materials were availforeign trade and foreign capital
54% of the world's newsprint sup¬
abie.
w

make

Appearance

tant.

in

the

of

is

example

high

Another

during

years ago.

ago.

centered
one

coun¬

capacity

power

its

of

ingredient for a coun¬
try's industrial progress. Early in
1951 Canada's leading steel com¬

the

over

present

situation

world's

iron

give clear indications

metals.

Contrary to the current popular track-type tractor, was copied
opinion, the Russians' keen knowl¬ from machines obtained by Russia

the'

high-grade

insufficiency

the

the

about

present

in the Mesabi Range

maintained;

skillfully redesigned American

under Lend-Lease

For example, it
knowledge that the

reserves

of

tractors, originals of which had been acquired by Russia via

edge of engineering and mechan¬

the

over

resources.

of Minnesota

-

about 10

development

economy

unlimited

once

"

program

S.

common

ore

Knowledge of Engineering

lend-lease

About one-half of the

has been able to produce roughly

is

1 J. M. Davies, Research Director of Caterpillar Tractor Co.,

.

1955.

try's

Co.,

appointment

Russell, Jr.
Manager

as

1952-

for

of

reports Russian engineers have

traditionally

development.

tremendous

needs

Cites Russians'

for

natural

singular political difficulty for the present, or
other Japanese Government.
Her military
power having been destroyed, her merchant marine,
vital to an island
people, having been drastically
reduced in tonnage, her constitutional limitations
against maintaining ground, sea and air forces now
having rendered her incapable of preserving un¬
aided the independence
recently restored to her,
any Government in Japan, the present included, is
vulnerable to a degree to all manner of attack
by
both well and ill-intentioned
opposition."—General
Matthew B. Ridgway.
"
;V,
more

800,000

over

planned

is

past 50 years," says Calvin Bul¬
lock, "has exacted its toll on our

any

much

capacities of

yearly

principally to produce aluminum.
Due primarily
to the excellent

its

of

core

"The

are ones

postwar problems turn out to be than
naive were once led to suppose they would be!

rapidly growing econ¬
further increase in in¬

hard

sound economic

of

How

de¬

sions will be in the rapidly grow¬
ing province of British Columbia,

in

these

h.p.

a

re¬

the

to

expansion, the company
adds, but equally because of the

*

''Included among these many problems

This is not

dustrial

complexity of each of these problems will
best in intellect and
integrity.
❖

Two

of in¬

alone due to Canada's current in¬

give and receive fair treatment in order to
gain the foreign exchange to buy and import the
food, fuel, and cloth she cannot herself produce.

track-type

area

opportunity, according
to
a
study prepared by Calvin
Bullock, New York investment

must

/

attractive

an

omy,

water-power

a

Blyih & Co., Inc.

&

the

A.

vestment

simple

ing

By WILLIAM J. McKAY

the

materials which her

For
Blyth

Japanese, are both tragic and
lamentable; these people face obstacles in number
and magnitude which
might make the stoutest
hearts quail.
"In

27

Dotentia'

WORTH 4-2400

NY

1-1045

W. A. Ritchie Opens
HENDERSON, Nev.—Walter A.
Ritchie

has

opened offices at 230

Leod

Street

rities

business.

to

conduct

He

was

with Lester La Fortune.

a

secu¬

formerly

Fifty Congress Street
Boston », Mass.

28

The Commercial and Financial Chronicle

(2256)

National office will be located at Continued

from first

....

Thursday, May 29, 1952

page

Cottman and Horrocks Streets on

purchased by the bank.
facilities will be avail¬
adjacent to the new office.
Mr. Semisch said that the addi¬
tional office will enable Second is that it will take a surprise to cluding the high down payments
required by Regulation X. Even
National to participate to an even establish a new price trend.
In this connection, we've spent more important, truce in Korea or
greater degree in a rapidly ex¬
most of the past six months re¬ not, there will be a steady in¬
panding section of Philadelphia—
the northeast area.
"Demand for adjusting our thinking to what I crease in armament spending each
term "normalcy." The speculative month from here out. A Treasury
banking facilities in this area,"
he said, "is being stimulated by public has gradually come to real¬ deficit is in prospect for the sec¬
-lot

a

News About Banks

able

CONSOLIDATIONS
NEW BRANCHES
NEW

Bankers

and

OFFICERS, ETC.

REVISED

CAPITALIZATIONS

C.

Horace

President

Flanigan,

through

July.

This

I'm Bullish

Parking

is

it

year,

by the bank, the accent is

of the ize that defense spending is a ond half in contrast to a surplus
facilities to "leaky umbrella"—that it's a sus¬ in previous months.
If you'll grant the soundness of
if the New York Trust Co., both popular summer resort. Other serve the great new steel and taining, not stimulating, force —
of New York, announced on May reliable areas, include the Jersey other industries that are springing that its impact will be different my premise that a depression is
than our World War II armament not likely at this time, I'm sure
21 that the Board of Directors of coast, New York's mountains and
up between that section and Tren¬
the New York Trust
Co., had New England's varied attractions, ton." The Second National Bank program.
Secondly, we've been you'll go along with the thought
asked
that their
agreement of with the far west for the more now operates offices at 4356 paying penance — actually and that the market is in a position to
May 13, to merge that company ambitious. For those with a taste Frankford Avenue and at 3314 psychologically—for our post-Ko¬ mirror any intervening improve¬
rean buying spree.
with the Manufacturers Trust Co., for foreign atmosphere, Mexico Germantown Avenue.
Both the pub¬ ment:
lic and industry have discovered
he cancelled.
The announcement and French Canada offer contrast¬
*
*
%
(1) The psychological depres¬
that the pinch won't materialize— sant of lower first quarter earn¬
from the Manufacturers Trust also ing appeals and now Europe, too,
First
of
Michigan Corp. and
that the nation has satisfied its ings—and most were off relatively
said that although the merger ne¬ is within easy reach by air, at
Watling, Lerchen & Co., co-man¬
most pressing needs.
gotiations had been initiated by moderate cost. Colorful displays,
Moreover, little—has just about disappeared.
agers of a group that underwrote
the New York Trust Co. and the Kodachromes
and
posters,
to¬ the
everyone
now
realizes
there's Apart from the fact that the com¬
offering of 50,000 shares of
merger terms had been approved gether
with up-to-date folders common stock of the Detroit Bank been an enormous increase in our parisons were with an abnormally
productive
by the directors of that company, give the facts. The Travel Show of
capacity — that the good period, there is a possibility
Detroit, Mich., announced that
"and pronounced fair and feasible is, of course, free to the public.
economy is unlikely to be stimu¬ we may have seen the actual low
11,749 shares (representing those
lated by another major capital ex¬ of the year.
*
*
*
by the First Boston Corp., which
subscribed for by the underwriters
was retained by both banks as ex¬
(2) We've been through a proc¬
Arthur B. Richardson, President and the remaining shares unsub¬ pansion program.
perts, opposition to the merger of the Chesebrough Manufactur¬ scribed
But, and again I say it's a big ess of self-correction within the
by
stockholders)
have
terms had come from certain large
"but," this is background — not framework of "do-nothing" in the
ing Co., Consolidated, has been been sold at $65 per share.
The
news!
It merely highlights the industrial average. Many stocks in
appointed a member of the Ad¬ plans to
increase
the
common
ust Co.
It appeared, therefore,
fact that we've been living in an effect have had a private bear
visory Committee of the Chase capital of the bank
the

of

Trust

Manufacturers

Co.,

and Charles J. Stewart, President

noted

on

air travel and on Florida as a

extensive development

the

Delaware

River port

.

tickholders of the New York
the

to

New

York

Co.

Trust

di¬

rectors that the required approval

by

the

New

York

Trust

stock¬

holders might be difficult to ob¬
tain.
Accordingly, the directors
of

the

ceded

Trust

Manufacturers
the

to

New

directors' request.

cumstances, Mr.

ac¬

Trust

York

Under the cir¬

Flanigan stated,

the Manufacturers Trust directors

naturally did not wish to proceed
a
merger when those who
Initiated
it believed
that
they
might be unable to consummate it
with

with the enthusiastic support that
the proposed merger should com¬

25

Broadway

President

Stewart

of

the

New

York Trust, in indicating on May
22 that the proposed merger "has
been cancelled, due to the unfore¬

opposition of certain large
stockholders of this bank," added:
seen

"Expressions
our

received

friends,

by

customers

us

and

stockholders reflect their convic¬
tion that

an independent bank of
type and size, staffed as it is,
occupies a useful and important
place in the community and pro¬
vides a type of close personal

our

service which

is most desirable."
The plans proposed incident to
the
merger
contemplated,
ap¬

peared in
2049.

our

;|i

Vice-President of Chemical Bank

and athletic events each year and

in several charitable

engages

46th

Street

*

*

I

Upton, President

P.

of

election

of

A.

Edward

and

Madison

of

the

Board

of

Mac¬

Trustees.

Mr.

served

has been associated with Chemical
Bank since November, 1929.
He

Trustee

of

the bank

many

as

a

elected Assistant Vice-Presi¬
dent in 1948 and, since early last

was

year, has been Manager of Chem¬
ical Bank's 46th Street office at
Avenue which has been

completely rebuilt and enlarged to
accommodate expanding business
In midtown New York. Mr. Urmy
will be associated with
Reginald
H. Brayley,
Vice - President in
«4iarge of Chemical Bank's offices
Central

area.

The

enlarged and rebuilt banking of¬
fice
was
opened
on
May 28.
Chemical Bank & Trust Co., with
headquarters at 165 Broadway, is
©ne of the nation's
largest banks
with assets exceeding $1.8 billion.
The bank has 19 offices in Greater
New York.
1
*

*

A director of
civic associations on, Long
Island, Mr. MacDougall is also
President
of
the
Queensboro

Corp., developers of Jackson
Heights, and Vice-President and
Director of the Chamber of Com¬
merce

of the Borough of Queens.
*

*

'fi

The Port Washington-Manhasset
National

Bank

of Port Washing¬

*

*

at

vacation

summer

Annual

Avenue

the

Vacation

Main

and

s,

Jr.,

Edwin

R.

Foley

of

and Joseph
Tyler of R. H. Moulton & Co., as

fail to do

as

industries

some

well

More

several

reasons

adelphia,
26

were

announced

May
by Wm. G. Semisch, President.
on

The announcement followed word
from Washington of the approval

,

last




(b) Our garrison economy and
high taxes are accelerating the
pace of research—and new prod¬
which

ucts
are

on

DETROIT, Mich.

—

Graeme

are

an

im¬

portant bulwark.

M.

Lastly,

Black is with Watling, Lerchen &

ours

Co.,

this is

is

a

the

fact

an

create

markets

new

the horizon.

(c) The redistribution of our na¬
tional

income

the

benefits

the

seg¬

which
proportionately spend the most.
of

ments

population

Also, don't overlook the facts
although perpetual motion

that

hasn't been discovered:

-,

(1) A certain amount of inflation
has been permanently frozen into
the stock price level;
Stocks

(2)
held

than

are

strongly

more

before, and are
"respectable" than at any

more

ever

time in 25 years:

(3) The security owner is dis¬
playing greater emotional ma¬
turity, a sounder approach, than
in the past.
These considerations
the

speculative

with

new

sible

industries

a

normal, which is far above
the prewar normal.

20 years

goods

market,

new

tal

Watling, Lerchen

corner

over-all

an

increase

population

Our

(a)

since 1940 spells a new

fall, etc.
basis, the still
heavy order backlogs in the capi¬

(Special to The Financial Chronicle)

Ford

the

turned
On

Joins

facts

underestimate

Don't

—

new, modern banking structure by
the Second National Bank of Phil¬

the

from within.

come

the average.

as

immediately, there are
for believing that
Historian.
the business trend is turning up¬
Directors of the Club elected to ward
that
the
unappetizing
office for the ensuing term are: headlines have
just about run
D. Russell Hodge, of Shaughnessy their course.
For one thing, by
& Co.; Daniel Stone, of Stone & now the consumer probably has
Yourigberg; Charles Clay, of Dean absorbed his excessive non-dur¬
Witter
&
Co., and Robert L. able goods inventory—and will be
back to replenish his wants. True,
Harter, of Sutro & Co.
his durable
goods inventory is
The term of office for all of¬
ficers of the Club has been changed high—but there's a new normal of
from a six-month to a one-year demand, and the elimination of
period starting with this admin¬ Regulation W will help move cur¬
rent
stocks
in
coming months.
istration.
It was
felt
that
the
longer period of time would give Further, industry's inventory sit¬
uation is probably much better
the officers an opportunity to bet¬
than the aggregate figures indi¬
ter serve the Club.
cate. Secondly, the natural proc¬
esses
of
improvement
are
at

a

can

that:

that

cerned
ent

as

mean

is
rules. Yes, I'm
game

you are

that

played
as con¬

about the pres¬

labor crisis. But, after almost

of favoritism, isn't it pos¬
labor may have over¬

that

reached itself—that the zenith of

remains

that

managed economy and
election year.
The next

Building, members of
Street, of the expansion by Comptroller the New York and Detroit Stock stimulus probably will be the re¬
will run of the Currency. The new Second Exchanges.
moval of all building controls in¬

22d

Manhattan, the exhibit

Office,

inevitable

revival

where

vironment

Irving Lund- In 1949, we witnessed a number
borg & Co., as of individual—or piecemeal—re¬
Secretary- adjustments, without the
apple
T r e a s urer, cart being upset.

changes.

Travel Show. Located in the Bank¬

Room

Murray
e

*

sfe

season, the Bank for Savings in
the City of New York has opened

Seventh

n

(3)
Divergence may be the
price of normalcy. In other words,
as a business cycle gets older, it's

ton, New York, reports a capital,
effective May 16, of $775,000; the
procedure whereby the capital
was enlarged to that figure con¬
sisted in reducing the capital on
With Titus-Miller
work in the depressed industries
May 16 to the extent of $50,000—
which led the recession now so
(Special to The Financial Chronicle)
from $670,000 to $620,000, follow¬
DETROIT, Mich.—Floyd J. Wil¬ apparent to everyone. As cases in
ing which, on the same date the liams
has been added to the staff point—all branches of the textile
sale of new stock to the amount
of Titus-Miller & Company, Pen¬ industry are rounding a bottom—
of $155,000 served to enlarge the
obscot Building, members of the the shoe business has picked up
capital from $620,000 to $775,000. Detroit
and Midwest Stock Ex¬ sharply — the carpet industry
Plans for the establishment of

Incident to the

n

partner

the Queens County Savings Bank,
of Flushing, N. Y., has announced
the

Vice-Presi¬

dent;
*

Urmy, who was graduated
since Aug. 8, 1950.
from Wesleyan University in
1928,

In the Grand

as

tivities.

Mr.

Madison

Corporation,

ac¬

Avenue, N. Baxter Jackson, MacDougall, who succeeds the
late Howard D. Springsteen, has
Chairman, announced on May 23.

Fourth

returned

Foley President of

Trust Co.
of New York,
in Dougall to the office of Vicecharge of its newly enlarged of¬ President, at the May 13 meeting

ing

have

now

—

&

Its

market—and

to their

original "take-off" points.
(3) By and large, most stocks
*
*
*
are selling in reasonable relation
At the regular meeting of the
to this year's prospects and the
page
Board of Directors of The Na¬
tremendous
deferred
demands reaction of past months has served
*
*
*
tional City Bank of New York
were unleashed
to "freshen up" the price level.
were abnormal.
held on May 27 A. Eugene Adams
The capital of the National City
And there certainly was nothing Moreover, there has not been any
and John C. Macy were appointed Bank of Denver, Colo., was in¬
"normal" in the anticipatory buy¬ excessive or ill-advised specula¬
Assistant Comptrollers, and Law¬ creased as of May 19 from $100,ing which took place just after tion in the marginal companies
rence W. Huse was appointed an
000 to $150,000 by a stock divi¬
Korea.
which must be corrected.
Assistant Cashier. Mr. Adams and dend of $50,000.
The Bull Case
Mr. Macy were formerly Assist¬
The Net of It
Wall Street and the speculative
ant Cashiers.
Sure, the bloom is off the rose;
public have been so busy recog¬
*
*
*•
the peaks have been seen in busi¬
nizing and digesting this back¬
The Dime Club, composed of
ness and corporate earnings.
But
ground that three fundamental
700 officers and employees of the
what of it? The market was sus¬
facts are being overlooked:
Dime Savings Bank of Brooklyn,
picious of the boom and cast a
(1) Seller's markets don't rep¬
SAN FRANCISCO, Calif.—Ed¬
N. Y„ has elected the following
jaundiced eye at earnings consid¬
resent normalcy.
After all, 1941
win R. Foley, partner of Kaiser &
new officers for the coming year:
ered
"non-recurrent."
Further¬
was a good year—yet it was pos¬
Neil
A.
Wischerth, President; Co., has been elected to the presi¬
more, there's no rule which says
sible to buy cars and consumer
Daniel J. Spellacy, Vice-President, dency of the San Francisco Bond
we
must have either a bull or
durable goods at discounts from
and Lila A. Numair, Secretary,
Club for the
It
a bear market—either a boom or
list.
also re-elected Frank G. Sharkey,
a depression. There are many past
coming year.
(2) Nor do waiting lists and big periods which defied a pat label
Other officers
Treasurer, and Florence E. Gra¬
backlogs
represent
nor¬ —and we
elected
for order
ham, Financial Secretary.
The
may again be in an era
Dime Club was formed 17 years
the term are malcy. As a case in point, 1925-29 of "neuter gender."
In this con¬
Dennis H. Mc¬ were years of general prosperity nection, one point deserves special
ago by a group of employees to
further social relationships among
—yet
industry
operated
about emphasis:
Carthy, ViceThere's a
new
and
members of the bank's personnel.
President of 21% below its potential capacity higher floor to business and the
The club sponsors numerous social
First
Boston in this period.
stock market.
We're in an en¬
branch, in New York.

Joseph
*

Keith M. Urmy has been elected

at

of

May 15 issue, page

sj:

fice

by the issu¬
abnormal era for the past 10 years
50,000 additional shares
—witness the World War II years,
(from 325,000 to 375,000 shares),
when military demands taxed our
par $20 each, were noted in our
issues of April 24, page 1714, and productive capacity. Likewise, the
immediate postwar years—when
May 8,
1928.
ance

S. F. Bond Club

mand.

from

Bank's

National

its power now is being passed?
like vein
me

a

that

.

thought, it

as

hastens

well as
a

a

In

seems

commodity surpluses

promise

this

of

to

are

threat—for

free economy,

and

Number 5120

Volume 175

industry

operate

can

.

.

.

The Commercial and Financial Chronicle

Automotive—Building

effi¬

more

ciently without controls. Similarly,
while our armament program has
"stretched

been

tures.

it does

And

Johns

out," this doesn't

change
the
prospect
manently high defense

raise the

of

this

evidence
should

is

that

be

Sometime

sold.

the

in

E.

JOHNSON

$117 Million in April

Long Term Growth
Bell

This Week

Howell

Robert

Bank Stocks

operating results of banks for the past two
years may give some perspective about current conditions and
help to formulate ideas about earning prospects for the current

General Amer. Trans.

30

—

A review of the

Radio

than

next

&

Carrier

stocks

rather

By H.

Studebaker

the

of

believe

I

bought,

Banks Show Gain of

Spring

dis¬

will be

weighing

Gypsum

Standard Steel

revised downward next year.
Net

Bank and Insurance Stocks

Manville

National

of
per¬
expendi¬

tinct possibility that taxes

Deposits of Savings

Chrysler

.

Growth

period.

from Within

All is

phasiston the strong seasonal up¬

Butler Bros.

In the May, 1952 issue of the "Federal Reserve Bulletin" a
discussion of member bank earnings for 1951 together with certain

General Electric

comparisons of figures for prior

the

itself felt

which makes

trend

months.

summer

prices

years—particularly after the con¬
ventions. But we have been, and
still are,

in a period of individual
industry distortions and contra¬
dictions.
Furthermore, 'the eco¬
nomic sophistication of the stock

Luyer
Ligh
more

an
extremely
selectivity. It is
dangerous than ever before

talk in

to

spells

also

of

degree

'Thus,

of the

terms

averages.

selective.

A

ago,

year

•could lay
was

claim to

develop¬

investor accept¬

overdone—and many is¬

was

ance

In the

success.

product

new

however,

ment,

a

of recognizing the impor¬

of

tance

stock which
growth label

any

got out of touch with reality.

sues

Most

growth stocks are still doing
for this over-enthusiasm

ipenance

via

recognition that even a
basically fast growing business
—

•can

suffer

temporary indigestion.

This doesn't
stocks

mean

that all growth

still unattractive. A few

are

text of the article enables one to obtain

affecting net profits

Offered by Bankers
Public

offering of $55,000,000
first mortgage bonds, 3%% series
due 1982, of National Steel
Corp.
made

wide

Co.

Stocks?

immediate

an

process

The figures presented and the discussion of operations in the

was

May 27 by

on

of

group

headed

96

nation¬

a

Inc.

The

First

in

1960,

sinking

a

at least $30,000,000

par

by

maturity.

demption

of

General

prices

start

the
re¬

from

is being paid for the

future. But
and

particular favorites

"the

my

are

(1) Those where the "bad news"
is out in the open—where the in¬
dustry has been suffering a pri¬
vate
depression and the stocks
Ihave had a private bear market.
The textile and carpet stocks are
(2) Those which will be helped
&>y lower commodity prices and

1980.
Of

building stocks illustrate the

ipoint.
Those whose current busi¬
is being bulwarked by the

(3)
ness

fact

the

that

is

demand

motive

and

normal of
the

above

addition

.normal. In

the

postwar

far

the

to

building

prewar

auto¬

industries,
is another

brewing business

candidate.

(4)

the

net

from

the

proceeds

the

to

redemption of the
entire
outstanding issue of the
company's
3%
first
collateral

eral

corporate

purposes.

The fifth largest steel company
in the country, National, and its

panies

associated

and

constitute

com¬

integrated

an

unit for the manufacture and sale
of

diversified

a

steel

products.

Weirton,

grow from

that

within because of

can

man¬

agement changes, or potential de¬
velopments which may have farreaching importance.
I'm

ipoint, I list below

a

few candi¬

dates which I think have merit—

.-assuming

basic

my

premise

is

^ound. The list is not all-inclusive
calibre

tially
;a

it

and

—

includes

stocks

as

speculative

reason

which

for

I'll

W.

line

of

iron

and

Major plants at
Va.,
and
Detroit,

The company's

expansion

program,

en¬

each

add

investment

well

as

issues.

essen¬

There's

obvious,

but

an

on

side, the increase in

losses and

& Aikman

amounted

and

net

income

and

to

$45,287,000.
During 1951, 65% of the tonnage
of iron and steel products shipped
was
rolled strip and sheets and
18% was tin mill products. Other
important items were pig iron,
plates, merchant bars and struc¬
shapes.

tural

Domestic

ore

reserves

total

company

of

Mohawk Carpet

tons.

gross

stock and debentures of Iron

Ore Company

developing
in

Food—Grocery

gain. The increase

coal

company,

of Canada which is

ore

deposit.

properties

held

Interests
by

mately 33%, reduced the final net profits.
Among the
reserve

different

classes of

showed

decline in net

there

banks, those in the central

cities of New York and Chicago,

an

was

The

the greatest relative
In fact,

generally the larger insti¬
current

after higher taxes the

even

the

its subsidiary and asso¬

minor and at Chicago

was

gain.

figures for the member banks

these

in

two cities

are

shown in the following tabulation.

(In millions of dollars)
—Chicago—

On U. S. Government securities..

The large

points

continued

inflow

they withdrew 3%
consecutive

from

For 15

more.

months, deposits have

been above those of the year be¬

fore, while withdrawals had been
less for the

preceding 10 months.
during the first

April,

as

quar¬

three-fourths

deposit

of the regular
resulted from the

gain

in contrast

new money

interest-dividends.

savings banxs continue their rise
above the

$10 billion mark, while

holdings

U.

of

S.

Governments-

37

31

12

12

215

69

48

136

121

25

24

$334

$298

$83

$78

196

170

41

37

$9.8

12

10

12

11

ing less restriction of construction

126

On loans

...

118

30

30

than had been

figure.

All

other

billion,

Interest

on

deposits.

Net current

$214

$68

$54

$33
Losses and

$274

$27

$7

$13

17

19

11

7

33

earnings before income taxes

7

10

9

charge-offs

Net addition to valuation

reserves.

Taxes

$256

$214

$55

$50

114

69

17

15

$142

net income

on

$145

$38

close

holdings

of

assets,

of

of

U.

S.

billion,

or

40.5%.

well

and

Governments

Reflect¬

anticipated earlier,
investment

favorable

as

April,

reached $10.2

42.1%

or

holdings

opportunities, during April hold¬
ings of mortgages

$120 mil¬

rose

lion and holdings of corporate and

municipal
million.

Profits before income taxes

the

At

mortgage

securities

ernments declined

$35

another $78

Holdings of U. S. Gov¬
$37,000,000 and

cash $18,000,000-

Net

profits
A number of

COMPARISON & ANALYSIS

figures in the above tabulation are interesting to

17 N.Y.

note.

The

percentage gain in net current earnings before

taxes

was

York

and

approximately the same for both cities—28% for New
26%

for

Chicago.

losses and additions to
New York

After

adjustments

for

Taxes

100,000,000 net tons of steam coal.

Year Survey

Bulletin

on

valuation reserves, pre-tax net profits of

banks showed

on

Ten

recoveries,

a

gain of 20%

as

compared with 10%

for Chicago.

City

Bank Stocks

income

Request

Laird, Bissell & Meeds
Members New York Stock Exchange

net

income

showed

the

greatest

difference.

The

Members New York
120 BROADWAY,

higher earnings. Taxes on the New York banks, on the other hand,




funds

of

During April, people de¬
posited 17% more in their regular
accounts than they did during the
corresponding month of 1951 and

308

On other securities

exceeding 265,000,000 net tons of

<

gain in deposits, Mr.
out, reflects a

Catharine

continue their decline below that

metallurgical coal and more than

f

past

$1,273,000,-

Holdings of mortgage loans by

Central Reserve City Banks
—New York—

National Biscuit

Pabst Brewing

been

6.3%."

or

receipt of

Kroger Grocery
.

000,

ter,

gain for the Chicago banks was minor and enabled them to report

ciated companies

deposits for the
has

In

profits at New York banks
actual

in net

expansion

include reserves

Food Fair

The total

during this period.
in

the

been

the

100,000,000
In addition, at least
over

corporation's investment in com¬

Stevens

some

security

on

already

March and Febru¬

any

months

12

Even after provid¬

profits

profits taxes which amounted to approxi¬

excess

1951

in¬

any

"March and February
had

largest for

as

$618,461,000

CathariM

savers.

in

most, if not all, of the balance of
its authorized expansion program
will
be
provided
by
treasury

mon

Rayonier

lower

transactions, earnings before taxes showed

in part the result

was

48

depreciation accruals.

Robt. M.

since

increase

45

Consolidated net sales for

of

April,
and is the largest for

increases

ary

the primary

expenses was

profits. This, however,

increase in net

gain

arine said.

145

hand, retained earnings

more

3

127

depreciation accruals.
corporation anticipates that

is

compilation of these
figures began in 1947," Mr. Cath¬

$132

and

a

record

7

$151

1951 which had been provided al¬
most entirely from retained earn-'

April,

reach

1951,
April

6

$512

come

during

30

reserves

$608

in

banks

during

Earnings

business

mutual

33

The gain from other sources was relatively small.

an

nation's

529

$ 57,000,000

loans
to valuation

increased volume of loans and business.

ing for

York,
deposits
in

the

the

recent

80,000,000

Lowenstein

!

of

of

"This

From the above figures it can be seen that the most important
factor contributing to higher earnings was the increase in earnings

factor which reduced

of

City

50

earnings on U. S. Government securities._
profits on securities sold

On the other

Bank

the

122

Increases in other net losses

from loans.

ings

than double

___

Increase in net additions

National

Savings
President, Dollar Sav¬

212

Increase in provision for income and excess profits taxes
Increase in net losses on securities
Decrease in

the

Mutual

435,0100,000.

—463

in expenses

approximately $150,000,000
had been expanded by the end of

corporation's
years,

suggestion—to

the

Carpet—Textile

P.

decreasing net profits, total

Increase

of

of

figure of $21,-

69

1950

tons are to be
available starting in 1954 for pur¬
chase from a proven deposit in
Labrador and Quebec under the

J.

loans

on

1951

^rewards go to the risk taker.

!

earnings

President

New

to

gross

,

in

1950

totaled

by

According to Robert M. Cathar¬
ine,

new

1951

on

bonds

$87 million.

+438
369

—1

ITEM—

and

government

to

Increase in other earnings, except on U. S. Govt, securs.
Factors

Under the program, necessitated
by the substantial increase in the

funds

reduced

year ago.

still

increasing
holdings of mortgages, but have

—$25

increasing net profits, total

6,000,000 net tons.

.^sometimes forgotten, fact that the

Collins

Decrease in net profits
Factors

earnings before income taxes.

ings

banks

$117,000,000
Change from 1950

tutions,

the specific

application
•of
these
thoughts
will
come
readily to the reader. As a starting
sure

(In millions of dollars)
FACTOR—

Mich., had a rated annual ingot
capacity of 5,100,000 net tons at
current

a

Reports

savings

ap¬

plied

than double

more

month

same

increased

,

financing, $40,800,000 will be

The

Those companies

are

FACTORS IN LOWER NET PROFITS

Increases in net losses

or

tailing estimated expenditures of
casing or removal of government $300,000,000 from 1947 through
.rules, regulations and restrictions. 1953, will, among other additions,
The food and grocery—automobile increase
the
ingot capacity to
.and

summarized in the follow¬
ing table taken from the article in the "Federal Reserve Bulletin."

the close of 1951.

in point.

•cases

affecting this result

1,

on

all member banks before

1950.

before May 1,1953
and scale down to par after
May

102.75%

subsidiary

iforgotten stocks":

of

The factors

Decrease in

industries, such as air condition¬
ing and electronics, are promising mortgage bonds, due 1965, and the
balance will be available for gen¬
media—for little or no premium
.•styles in speculation change

level

Increase

fund will be in operation to retire
issue

Savings Banks, points out

this increase is

Banks and

a new high in 1951, net profits after provid¬
ing for the higher taxes declined by approximately 3% from the

Boston

May 1, 1952.

at

tual

Association

year.

investment

Corp. The bonds were priced at
99.75% and accrued interest from

Beginning

clear idea of the factors

income taxes reached

jointly

and

the past

over

a

Although net current earnings of

by Kuhn,
Co., Harriman Ripley &

&

Catharine, President

is also discussed and tabulated.

National Steel Bonds

Loeb
Which

,

Whirlpool

bullishness is basically firms

my

years is presented. In addition to
showing the operating results of all the banks on a comparative
basis, earnings for the past two years according to the class of bank

Montgomery Ward

election

in

higher

usually trend

in

The fact

.

.

stock

and

business

that

.

M.

National Association of Mu¬

that of

days, I expect a great deal of em-

Chalmers

of

absorbed all of the gain in earnings

with the result that final net

profits were slightly lower than in 1950.

,

\r

Curb

Exchange

NEW YORK 5, N. Y.

Telephone: BArclay 7-3500
Bell

(L.

A.

Teletype—NY 1-1248-49

Glbbs,

Manager Trading Dept.)

Specialists in Bank Stocks

The Commercial and Financial Chronicle

SO

.

EE

Eighteen Years!

SEC Has Ten Chairmen in

list of the ten men who have served as Chair¬
The Securities and Exchange Commission since it began

Following is
of

men

petuate themselves; functions ini¬
tially exercised for proper reasons
are
continued for improper
reasons
and their cost increases.

By JOHN DUTTON

No. of Months

July, 1934

Joseph P. Kennedy
James M. Landis

-

Eicher

Edmond

C.

-

Cook

-

-

a

Is it any

securities

of

bution

22
9

do

been

have

18

responsibility

18
26

unable to operate their business

.'.>v'v:/"v
How Is Your

Back during the time of Mr.

t

Memory?

Jerome Frank's tenure of office,

request was made by the Commission that the Investment Deal¬
ers and Brokers of this country should collect the facts pertaining
the

to

their business under the Securities Acts of
spent by the invest¬

operation of

A large amount of money was

1933 and 1934.

research was carried on, and the material was
turned over to the proper authorities. If I remember correctly, the
Securities and Exchange Commission then gave a great deal of

ment

industry,

this effort.
The Commission suggested that
Congress look into the operation of these laws, and that a real
study should be made to see if improvements could be effected
encouragement

to

in the Securities Acts themselves.

happened

who have held down Mr. Frank's job since
then. Where is the SEC's purported interest in improving the law
so that the investment firms of this country, and their sales organi¬
six other

along under laws that were hastily passed by an emotional Con¬
gress back in 1933 at the very bottom of the depression?
Why is
we have had no impartial review by competent bodies of

it that

entire

this late date?

procedural activities of the SEC until

Congress, via the so-called Heller Committee, is working on an
investigation of the Securities and Exchange Commission's activi¬
ties at this time—but the "wheels of politics

grind slowly indeed."

years

to learn the investment business.

Most of the

of the SEC have had
experience in the investment business whatsoever.
I believe

no

qualified. Look at this record. Some of these men
were hardly in the job of Chairman long enough to become ac¬
quainted with the barest fundamentals of their work. How could
so

one

they mold and shape a policy that would have any semblance of
direction, or permanence, so that those who have been regulated
could

They

on

relief would soon find

in

the

man

himself

sales organization?

the

the way the government does it, we would have all been bankrupt

ago." One thing you can say about the SEC, no one ever
old in the job of Chairman of that organization. Variety
be the spice of life but with the SEC it is a habit.
;
V

years

grows

■

word is said in defense of

a

depositor

ing to these interests not to kill
goose
that lays the golden
■;

egg.

Pierce,

Chairman

of

Fenner

the

&

Beane,
Stock

Exchange, has announced that, be¬
ginning June 2, the Midwest Stock
Exchange's trading hours will be
extended

one-half

hour

daily,

which provides for the sessions to

close
usual

at

2:30 p.m., instead of the
closing hour of 2:00 o'clock.
Exchange
congratulates

"Our

the New York Curb

I

am

just

of partisanship we,, as
have unwittingly
partisans
in
the
very

appearance

bankers,

partisanship
one

silent;

keep

Exchange for

daily trading hours and
recognizing the fact that there is
zones

the

in

this

in

time

country that affects
life

Hargrave said.

of

"We

its

at




citizens,"
the

government fiat or

excessive

by

government borrowing. Merely to

back

give

the

number

same

of

"counters" would be to fulfill but

legal,

a

When

not

obligation,

moral,

a

observe

we

forces

told

we

them

Government

that

didn't

remind

we

wasn't

the

beyond

population
think

West
tant

and

has

"This

hours,"

as

we

the

Middle

most

impor¬

that

become

financial

marked

country's

wealth,

know

we

this

a

center/' he stated.

extension

Hargrave

of

trading
continued, "is

not

a
new
thing for the Middle
West; in fact, The Chicago Stock
Exchange extended trading hours
on
Sept. 30, 1940, and this extra

service

to

the

the fall

of

1943

public
when

ran

it

until

was

dis¬

during the

Mid¬

war.

this* opportunity
hours of
us

trading,

to furnish

investors

to
as

more

We welcome
extend

.our

it will enable
service to

our

who represent so many
in this country," Har¬

grave concluded.

them

bankers'

that

it

but

money,

the peoples' money?
Why didn't
our control tending to render im¬
we
explain to them our reasons
possible the return of sound dol¬ for
making such loans?
lars to our depositors, it again is

duty to inform them of such

our

that

in .order

facts

they

act

may

in their own protection.

You
vate

need

not

be

with

tax

told

that'pri¬

cannot

enterprise

compete

supported

governmental

agencies; that the existence of
politician such
agencies restricts the field
to pre¬ for
private enterprise; that you
vent the people-from
becoming cannot loan
money in competition
tax conscious, that he will do this with
government.
know

We

will

all

do

the

that

in

his power

by borrowing instead of paying as
we

by
raising
indirect -taxes

go,

revenues

We

know

today that only in a
budget and the restora¬

balanced

wherever tion of the Gold Standard lies the
possible instead of- through direct possibility of a true recovery.

through

We know that the continu¬

taxes.

When

the

Gold

Standard

was

spending and abandoned and thrown om the
borrowing policies of government scrap heap by phony politicians,
can
lead
to
butvone
end, the irreparable disservice was done to
destruction of the savings of our the economy of America, and the
the present

of

ance

depositors.
what

we

to make the people

conscious,

tax

do

is our duty to

It

can

show

to

de¬

our

positors that visible'taxes are but
trifling portion of the real tax

a

extent

their

into

savings,

tions

they

to show
further taxed

also

were

are

policies

of government

competition of government
banks.
:
' /

and by
with

appreciate this?

Wrong thinking leads inevitably
to

harm.

The

Administration

is

given to pointing with pride to the
increase in bank deposits which

bank
of

credit

which

Should

Depositors

Know

inflation,

it

is

guish from

the

difficult

paper

,

What

nation, is beyond
our depositors

But do

though

as

interest

calculation.

now
total nearly S170 billion.
Is
it not our simple duty to explain
such imposi¬
that such increases mean little but
called taxes by the low

them how

truly

invisible

earnings and

but

itor army of this

only

not'

which

to

cut

as

thein

show

to

burden,

loss resulting to the middle
class,
thrifty, self-reliant savings depos¬

currency
;

Does

the

effect
distin¬

to

tion?

v

infla¬
tV

depositor realize

that

,

this country; that in the aggregate
the small holdings make the large

Have

made

we

it

clear

to

in ings deposits has necessarily and total; that for all practical ^pur¬
the directly resulted from the low in¬ poses the wealthy man may be ig¬
depositor, terest policies of• government, to¬ nored when we are considering

partisanship
duty,

to

gether with the fact that govern¬
is today the chief customer
ing silent when it is our duty to for the accumulated funds of our

justified in keep¬

ment

the effects

of the

ernment?

Does

policies of gov¬
the

average' de¬
positor realize that when the gov¬

ernment

reduced

its debts by in¬
depositors? The average depositor
been should know that the government flation it also reduces our debts
to him, and the debts of the in¬
said that the
hottest
places in has become the banker's main
hades are reserved for those who customer as a result of the accu¬ surance company to him, arid to
effects
of
the
in a time of national crisis, re¬ mulated
experi¬ that extent destroys the worth of
/
mental policies of the Administra¬ his savings?
main neutral.

speak by any plea that we must
avoid

partisanship.

has

It

,.

.

is what

do:

must

we

;

"

First: We must manage our own

Our

banks.

depositors

are

management

of

the

institu¬

tions in which they deposit

If

funds.

we

the

their

obliged to

are

management

banks in whole

en¬

is vested

titled to know in whom
the

or

sur¬

of

our

in part to some

other person, persons, or
I

believe it

is

agencies,
duty to inform

our

depositors of that fact.

our

Second:

It is

our

duty to

tion, of continued threats to in¬
dustry,
and
of the consequent
destruction of confidence in the
future,..
Do

.

depositors

our

that

the

seemingly

■/
■../.I' '
understand

plump

and

wholesome condition of the banks
does not reflect

health, but bloat?

With the banks stuffed with the

obligations

of

resources

the

loaded with such obligations,

with
deposits
insured
by ^ the
FDIC, the resources of which^con-

sist

has

brought to the

average

derstand that by insuring

really done is tantamount to
itself against threatened
of funds, to discourage the

banks in the light of

almost

uation

we

are

obliged to abandon

which

tices

proven

in

the

necessary

past

prac¬

have

the security

to

we

of

has

power

come

loss of

a

for spending the moneys of the
our deposi¬
should inform our de¬ people; that history is repeating
positors of that fact. Diversifica¬ -itself and a group securing control
tion
in investments "and
loans, of a onetime democracy in en¬
of

our

tors,

institutions and

we

-

limitation in the amounts of
insistence

justify

knowledge of the

longer,

ourselves

the

us,

preservation

of liqui¬

dity, all these must be continued
or our

we

in

depositors be informed that
to venture their funds

propose

disregard of

some

faculty

every

at-

power

these

to

the

one

Our

to

in

every

bring

knowledge

of

answer.

Nation

Fundamentally,
made. We

even

To my mind there

Fundamentally,
sound.

and

command

our

facts

we

delaying

this

Is

Sound

country is

troubles

self-

are

simply off balance.
Ignoring'the balances set
are

We are
loans, trenching itself in-power by^sub¬
We are
a portion of the elector¬ up by the Constitution.
ignoring the balance that comes
ate?

dating character of loans accepted

by

using

can

for

self-liqui¬ sidizing

the

upon

is not the sit¬
should'
be

which

one

who must foot the bill?'Can

man

the proper sense of responsibility

obligations

entirely of

of the' government,

lack

ex¬

Reserve
likewise

are

their

depositor un¬
deposits
in the FDIC, what the government

Does the

Federal

banks, which in turn

insuring
man¬

of government, Twith
operations fortified by the

their

be but

the

to

in

and

us

got the money and got it upon the
government's
own
terms?
Why

can

given
shift

Federal

the'

direct to

came

tion

be

westward

members
financial

our power to make
the farmers, and all others who
possible for us to return to our
live within their means and save?
depositors
when
demanded
by
them dollars not depreciated by Why don't we and why haven't

everything in

it

depositors?

recognition

ing the

difference

by the wage
the professional men, the
clerks, the widows, the domestics,

keeping silent depositors that the large reduction
desires that you in the returns paid on their sav¬

cannot

your

We cannot be

investment

he represents the creditor class of

and

of

indulge

spending,- be¬

earners,

our

that

age

of

by

party

avoid

Govern¬

our

You

sense:

when

do

to

may

become
worst

duty

our

ize that with increased centraliza¬

Exchange,

having taken the lead in extend¬

factor

bit afraid that in at¬
avoid any feeling or

a

tempting to

,

.

continued due to personnel short¬

a

de¬

depositor is often met
with the cry of partisanship and

of

orgy

excuse

should

Merrill

Midwest

in

uttered

word

a

old

Curb

Exchange

Trading Hours
Lynch,

is

It

their

Today

fense of the

its

sound

Fourth:

taxes

*

What Bankers Should Do

in

tection.

the

.::/

Federal

depositors of America from resort¬
west
Stock
Exchange
agree perience, and to the best of our ing to the old practice of hiding
wholeheartedly with Mr. John J. ability, with a view to safeguard¬ their savings in a wool sock? •
Mann, Chairman of the New York ing the funds entrusted to us. If
Does the average depositor real¬

Midwest Extends

Hargrave,

word which in ef¬

a

fect means no more than a warn¬

age our

P.

community

the

of

classes

these
when

render

Some people have said, "If private business ran their affairs

Homer

wonders

obviously true that one

there should be resentment among

say,

day to day."

Stock

being

of

position

obliged to rely upon his own ef¬
forts for a livelihood. This is so

This

"No one knows just what the SEC is going to do
This is the way investment people view the
situation when they talk about it. Is it any wonder that this is so?
If you, as an investment dealer, or a broker, had ten different
sales managers, each with different ideas and training than their
predecessor, do you think you could build a healthy and vigorous

may

primitive indeed. Without him

the

begin to understand the rules?

from

•■ *

supports the people and the gov¬
ernment. Without him life would

the

of

depositors

our

is the worst

who have held the position of Chairmen

only

self-supporting, who saves, who
the brunt of taxation, who

bears

story. Why
why haven't we told

ment has been enabled to

injury and peril of your
sort of partisanship.

During the Past Eighteen Years?
men

is

disregard

What if You Had Ten Sales Managers

It takes

earn

repaid in dollars of real value?
The depositor is the very back¬
bone of this nation—the man who

Chairmen

zations, can operate under more clearly defined rules and better
and improved laws?
Why is it that we have nothing to show for
all this research that was done in 1940? Why are we still limping

the

they

that

see

the

to this survey? What has happened at the
SEC since Mr. Frank went off to other pastures? There have been
What

to

something substantial, and to see
to it that when repaid they are

be

a

what we

doing

of

make their deposits worth

to

having,

any

duty?
with the

further

a

charged

not

we

can

Mr. Ganson

do next?

owe

Are

degree of assurance of what this government agency,
which has life and death power over their very existence, will
with

not

we

53

Purcell,
four-year term. Ten men have had this job in 18 years.
wonder that those who are engaged in the retail distri¬

This record indicates that only one man,
served

of events
to insure the return to them of
the moneys deposited by them, or
in the ordinary course

as

18

1.947
Nov., 1949
Feb., 1952
to present

-

1948
Nov., 1949
Feb., 1952

24

1941
1942
1946

Apr.,
Jan.,
June,
Dec.,

-

Hanrahan„ May,

M.

Harry A.. McDonald
Donald

-

July, 1946

Caffrey

J.

-

May,

Purcell

Ganson
James

Sept., 1935

all

ligation to our depositors fulfilled
by merely so managing our banks

1*3

Sept., 1935
Sept., 1937
Apr., 1939

-

Sept., 1937
1939
Apr., 1941
Jan., 1942

William O. Douglas
Jerome M. Frank

C.

in Office

-Dates of Service-

-Chairmen-

our

that

should

and

can

whole

such cause the bankers of America
facts, in order that they may in¬ have loaned it the money that was
telligently act for their own pro¬ placed with us for safety and

inform

know, is

as you

depositors. Upon this we
agree. But just what is
the extent of this duty? Is our ob¬
to

will

1934:

securities business of this country in

its reign over the

Edmond

Our first duty,

a

the

and

we

them

Uncle Sail—Deficit Addict

Securities Salesman's Corner

We

give them
don't

■

Thursday. May 29, 1952

.

personally.

7

Continued from page

V

.

(2258)

one

or

Does the average

ize

the

that

is

steadily engaged in making perma¬
nent that which was originated to
meet

war

a

more

gency,,

of these principles.

depositor real¬

Administration

and depression emer¬

and that instead of reduc¬

from
and

the

free

interplay of

independent

ness.

We

are

action

in

ideas
busi¬

substituting ,for all
a small group of

this the ideas of
men

to

powers

whom

are

heretofore

entrusted

the

exercised

by

balancing budg¬ the many.
This is what is called "planned
duty to use our ets or encouraging a revival of
best efforts to insure to our de¬
p'erhaos
the * oldest
industry, further and greater economy,"
positors a fair return on the funds charges are placed upon industry? thing, in government, and the es¬
Third: It is

entrusted to us,
return

is

and

rendered

impossible by

beyond

our

ing

expenses

or

our

reason

when such

a

increasingly
of conditions

immediate control, to

Some things we can do.
go

to

We

our

have

dresses*

We can

depositors with the facts.
their r.names

many

of them

and
we

ad-

know

cape

from

which

has

been

the

boast of English sneaking peoples,
and

particularly of Americans.

Those

in

authority

in

govern-

Number 5120

175

Volume

.

.

.

The Commercial and Financial Chronicle

(2259)
ment assume

today that

few

men

Threat to Private Banking

part is

a

greater than the whole, that

manship and courage to so legis¬ straint—to you, the
voting ma¬ here at home.
Demon Deficit
banking is to become a gov¬ late, even at the expense of their jority of this land, I say, choose America's Number One national
from such men leaders to restore
ernment monopoly, or a holding political future.
menace, has already done tragi¬
company or branch banking mo¬
intelligence, morality, a regard for cally destructive work. The ex¬
Duty of Bankers and Insurance
something other than your vote, igency demands
nopoly, let it be because we have
prompt, decisive
Executives

—

some

If

better direct the af¬

can

fairs of the whole people than can
the, whole people.
They assume
that

the

lessons

meaningless

They

of

history are
misleading.

else

or

determined

are

elected

,an

officer

an

or

erful

size

is

by

but

vicious,

the

that

Federal
otherwise

growth

must

be

prevented.
They

demanding that busi¬

are

exhibit confidence in the fu¬

ness

ture,'assume
employ

further

more

lieve"

the

At -the

obligations,>
and

men,

"re¬

so

same

Federal

Government.

time they are adding
to the numbers on the public pay¬

roll, wrapping more and more red
tape about industry, demanding
and

more

not

by

that it be

more

guided

trained

management,
by public officials.

Experience

but
that

state rights

as

tives who

insurance

and

execu¬

not mindful of their

are

to govern and "Save What's Left"
of
your
hard-earned
substance
and

left

of

the

American

be

It

is

establishment

will

the

spurious promises of

a

waste¬

in

the

dollar,

to put

course,

that

beset

an

end to the evils

still lies with the
depositors of America. They are
us,

finest

and

citizens

the strength

constitute

and backbone of

our

of

state in this land.

Let

remember

that

leadership that has villified

com¬

us

petence

and

petence,

has

line

of

glorified

incom¬

weakened

National

the

defense

land, choice above all

first

in

other

our

lands,

and is in breach of its trust to the

totalitarian

They will fight

it—if they are able to recognize it
it

as

creeps

them.

upon

records, I believe, that

History
solvent

no

Give them the facts, and democratic nation ever went to¬
private life, as in public life,
too great a concentration of power you may trust to the soundness of talitarian. After all, a dictator is
their heads and hearts.
was dangerous to individual free¬
only a receiver for a nation gone
in

priceless freedom.

your

duty to muster all the influence late, but not hopeless. Remember,
they can to preserve the purchas¬ if you neglect your own true ining power and save what will be trests and continue to hearken to

action.

by

our

demonstrated

clearly

us

Bankers

violation
of
their
trust. ful and deficit
building Adminis¬ American people.
Such leader¬
They must bring pressure on their tration when casting your ballots, ship, under the control of
deficit
just so are the foundations of in¬ depositor army—these people who you, like the people of so many addicts, should not be
continued
dependent banking being sapped have the voting control—to wire, other lands, may lose even the at the helm of the
Ship of State,
by the successive encroachments write, or telephone their elected right to vote as you wish—and be sailing as it is in troubled waters.
of government upon the functions representatives to forestall demon reduced to
voting as you are told The ability to save her is in the
of the banker and the
increasing inflation which is already a long to vote.
hands of the great middle class of
control
by the Federal Govern¬ way on the road in its journey to
Surely, by this late date, we all thrifty
savings
depositors,
to
ment over the operations of the destroy the hard-earned accumu¬ should
have learned the lesson, whom, as I have tried to
impress
banks.
Let us not either permit lations of the American people. emblazoned in the record of the
upon you, we, as bankers, have a
branch or holding company opera¬ Only they—our elected represen¬ past by
blood, sweat, and tears, moral obligation. Let us no longer
tions in the banking field to foist tatives—have this power, and only that the
steps to despotism are, trifle with that Trusteeship.
the people have the power and in¬
upon this nation
a
banking and
first, national bankruptcy, then
The ballot box is the last
hope
credit monopply more dangerous fluence to force the
issue with chaos, and then dictatorship.
of our
Commonwealth
and
the
them.
to, and destructive of the Ameri¬
We should know after nearly 20 world. God
grant that our depos¬
can
system of state rights than
The American way of life can years of Federal deficits that our itor
group may be made to see the
any other form of capital concen¬ be
destroyed bloodlessly through most dangerous foe is not to be light, and to use their franchise
tration.
chaos and the dictatorship that sought under
foreign flags, but to Save What's Left.
We know that it is not too late will follow bankruptcy. American
to act.' The,; power to shape our citizens will not willingly accept
and

provided

Government,

for

Government,
what amounts to coercion,
unjustifiable
gratuities,

and by

be too big or too pow¬
it be conceived

can

Let

steps.

best

ments of the Federal

wrong.
They af¬
organization should be

controlled

and

is

being destroyed by encroach¬

are

from the top down and not from
the. bottom up, They believe that

nothing

that

recognize that just

affairs, is
that

we

successive

ap¬

They affirm day by day that the
very
idea of local self-govern¬
ment, whether in public or pri¬
vate

Do not let it happen
shut our eyes to the

because

pointed bureaucrat.

firm

that

the country.

convinced that initiative
is vicious, except when exhibited

by

31

country.

dom

of

there

Let us not make it possible for
action, and consequently
enacted laws imposing history to record that in this su¬

regulations and restric¬

necessary

tions

large

upon

aggregations

of

capital.
So

far

those

back

in

history records,

as

control

credited

of

government

themselves

with

a

su¬

hour the bankers of Amer¬

preme

positors and their country.

sumes

future

welfare

volved,

regulate the affairs of the people.

into

The

no

back

of ;4he

of

tfafe

nation

When

and
are

people

the

in¬

iparty politics sink
insignificance.
The issue is
mere

longer

one^ of mere partisan¬
tory, the greater this control, the ship, but of sunple honesty and
greater the "planned economy." genuine patribusm.
you

go

in his¬

ernment
ops

perior wisdom and endeavored to
further

Inflation does not

ica, out of silence induced by fear
of reprisals, failed botn their de¬
the

til

slowly,
the

as

final

by gov¬

come

proclamation.

It

devel¬
un¬
as¬

the proportions of a prairie

fire, consuming all the substance
of the people.
There remains a
despoiled nation. Then comes the
then chaos,

emergency,
dictator.

Complete

loss

of

then the

purchasing

power in its money, which in the
One observed that we are living final analysis is uncontrolled in¬
history of the English-speak¬
Cere¬ flation, is the greatest tragedy that
ing peoples is the stoj-y of the in a day of paradoxes.
can happen to any civil state.
We
fight to escape from this control monious occasions are created to
Rather
and to render impossible its re¬ bewail the sad lot of the under¬ say, it can't happen here.

privileged and downtrodden.

tion

quate

to

ence

develop himself.

taught

our

Experi¬
ancestors that you

have this

could not

independence

if you had too great a concentra¬
tion of power in government. This

is what brought about the division
of* the
power
of
government

the

executive, legislative,
judicial. That is what brought

among
and

the

about

of

separation

church

state.

and

people and

which

did

not domi¬

nate the people, had to come from
the bottom up and not from the

down.

lished

That

is

what

estab¬

state

our local governments, our
governments and our Fed¬

eral

Government.

Government

did

The

Federal

in

has

tion into reality. This representa¬
tive republican form of govern¬

been

financial
the

over

number of stock

Largely

group.

considerable

circles

in

recent

possibility of a
splits in the rail
the rumors had

the

up

the

contrary, the peo¬
ple
established these units, re¬
stricting and limiting the powers
on

for

their

cause

thin,

will

the

pay

workers

be¬

enevelopes

are

be -largely

responsible

for the vanishing returns upon the
accumulated savings of our work¬

clerks, teachers, mechanics,
miners, farmers, and others—who

this country from the
Deficit
Addicts

the

Truman,

tinuing to produce not only

an

in¬

for therrftbut substantial pur¬

their

and

for evil

power

so

Roosevelt,

ilk

—

greatly exceeds

Only

in

America

has

in

America,

battered

though scarred and
the malicious mis¬
20 years, that class

by

chasing
their

well deserved "comforts and relax¬

still survives and, late as it
I
believe,
reverse
the

ation

toward

in

their

declining

years.

great

a

middle class survived the ravages
of the demon inflation; but here

treatment

power so as to supplement
personal^earnings and secure

whose

that of the worst drug addicts.

ers—

look forward to their savings con¬

clutches of

—

of

national

is,

can,

course

bankruptcy

and

the

based

on

For

road

two

thing,

one

thering

its

performance

100

those

selling around the
Little, if anything, had

level.

Pacific.

Action

week when it

of

the

stock

last

announced that

was

$1.25 to $1.50 quarterly and

that

the

road

would

I.C.C.

seek

permission to split the shares two
for

afforded

one

evidence

ample

that the step had taken the finan¬

cial community by surprise. Trad¬

ing in the stock

the New York

on

other

unions.

been
all

The

railroads

accruing such

along

that

so

wage

have

increases

large adjust¬

no

ments of earnings reports are in¬
volved in the settlement. Follow¬

ing

the

agreement

the

turned back to

were

railroads

private

man¬

tion, with
influence

rail

list

by the
Pacific, the

Southern

took

on

a

much

more

buoyant tone. Many issues, both
speculative
and
conservative,
moved

into

the
has been

pro¬

operating

improving

A

consequent

a

earning

on

couple

of

salutory

power.

years

when

ago

Lehigh Valley undertook a volun¬
tary readjustment of its debt it

provided,

as an

added inducement

to bond holders to accept

the debt

for heavy sinking fund
payments. A general sinking fund
was set
up amounting to 50% of
net income plus an amount equal
terms,

to any

dividends paid

When

the

total

of

on

the stock.

fixed

charges

and contingent interest is reduced
to

$4.5

is

to

million

this

halved.

be

requirement

It

will

then

amount to 25% of net income
amount

an

equal

plus

half of

to

any

dividend. The debt retirement ha;

progressed rapidly—$10.4 millior
than $4 millio:

last year and more
in

first

the

four

months

of

1952

Fixed charges and contingent

in¬
requirements have been re¬
duced to roundly $4.8 million s
terest

there

is

much

not

the

before

further

to

g(

sinking fund require¬

ment will be relaxed

With

Sparked by the wage settlement
directors of

reduction

Secondly,

presumably due to
considerable degree to dieseliza-

a

agement by the government.
and the unexpected action

is

substantially,

the dividend rate had been raised
itrom

affairs

the management
aggressive in fur¬

debt

stocks,

been said with respect to Southern

its

and

major developments.

has been very

gram.

Stock Exchange had
to be sus¬
Sponsorship and advocacy ment, as it now stands, is the last
pended for nearly an hour and
of higher
wages
seem
to bring remaining citadel of human rights.
then the price soared five points.
are
the
those in public life both applause We
most
favored
and
Also last week it was announced
of
all people.
and promotion, and the expecta¬ blessed
Are we
that
an
agreement
had
been
tion
of
being retained perma¬ willing to maintain and perpetu¬
reached in the long standing con¬
nently on the public payroll. Yet ate what we still possess, but what
between the
railroads
here is the striking paradox. The others have lost? America's great troversy
and
some
of the unions.
Final
very same agencies, the very same middle class must prove to be its
settlement was pretty much along
political leaders who are exhaust¬ own Savior,
and "Save What's
the lines that had originally been
ing their strehgth of eloquence, Left" of our way of life.
offered and had been accepted by
and shedding "^tears out of com¬
It, and it alone, can now rescue
miseration

ward

centered around the highest priced

ous.

come

set

not

states, the counties, the cities, the
towns;

high places lament the inade¬
wages of the less prosper¬

resolve to force that resolu¬

us

talk

,

Experience also taught our an¬
cestors that effective organization,
organization which served the

top

in

Men

let

There

months

it always does,
stages, when it

Th'e

currence, to permit the individual
the fullest possible freedom of ac¬

Southern Pacific—Illinois Central—Lehigh Valley

bankrupt.

were

materially.

respect to operations and

earnings, the trend of the trans¬
portation ratio has been about the
favorable

most

in the
east.
By
this all-important ratio

last year

had
to

been

reduced

Class

the

I

to

very

average

close

and

well

them

to

gressed, from the

they

as

pro¬

smallest to

national

triotic

;

50 Million Savers—Salt of the

the

largest, and leaving to the latter,
or believing that they had left to
the latter, only those matters of
true

savings a&ounts, the millions
who have holdings in building and

loan association, and the millions

entrusted

high ground for below the average for roads oper¬
lost if they will, acting in their the year. One of the features in
ating in the same general territory.
own
real selfish interest, forget¬ this rise was Illinois Central, Ob¬ In the
opening quarter of 1952
viously it had been hoped in some there was a further cut of 3.7
ting
parties
and
partisanship,
spurning Santa Claus as a false quarters that with debt problems points and it is expected that this
and
earnings
this
year favorable trend will continue. Re¬
god, choose honest, intelligent, pa¬ solved
restore

concern.

Now, whatever we may think of
ali this, we cannot avoid recog¬

nizing that it worked better than

-

Fifty

Earth

million

men

and

women

with

millions whose hopes depend
the
eventual
purchasing

upon
upon

of

the

the

much

men

road

of

what

to lead

the

visioned and

us

forward

Founding

we

insur¬

long

successfully

economy
ever ance
policies at maturity, should
brought about a be at a loss to Understand
why hu¬
standard of living higher than had
manitarians
advocate
drastic
ever been known
upon this earth means of
reducing unemployment,

such

leaders be found today?

worked.

It

cofnmon

man

known
of but

to
a

are

made

possible

to

the

comforts of life

un¬

the

rulers of

kingdoms

few generations
to

abandon

that

assume

ago.

this

and

is

progress

If
to

to

be

found only by discarding the fruits
of experience, let us at least do
so

knowingly, and

fooled in what
let

proceeds

of

It

before.

we

power

planned

any

us

talk

positors.
hear but

it

Do
one

let

we

are

over

us

not

doing; and

with

our

leave

them

side of the

story.

not

be




de¬

to

and

the sarafe time direct their

at

ingenuity
earning
saved

toward

powerrof

dollars.* that

lowering
the

the

billions
of

many

of
our

course

they

can,

I

need

so

them¬

surely

are

savers

salt of the earth.

are

not

They look

the

only aroused
gravity

as

of this

To

the

anxiously
to
the
day
leadership in government

be
to

great

given,

but
if

affiliations

they

whole

situation but also have the states¬

liberal

with

might well be
dividends.

more

When the

usual $0.75 quarterly was declared
on

Friday
this

selling developed

some

much

dampened

enthusiasm in the rest

of the list.

The market

week

unknown.

pretty

ended the

Among these

issues

of

the

that

has

a

very

as

it

more

been

quiet tone

speculative

leaders

can

be

attracting

you

50

million
85

savings de¬
holders

million

life

considerable

attention

cent

such

positors—you
of

One

—

found.

forward
will

freely

political

are

These millions of

tral directors

of watchful waiting.

been

any,

when

those

name

a

have
whose

men

very

po¬

in the neighborhood
share the Illinois Cen¬

run

had started, with

life¬

selves.

and in both

Of

new

Americans whose services during
the war and since the war years

a

for

Can

likely to
of $16.00

and

not

time

accumulate

advanced.

so

litical parties.

workers have^fcoiled almost
to

on

Fathers

which road

on

have

we

past

Lehigh Valley

mon.

the

come

re¬

category.

States

bonds

—

folks—you who have earned
sions

old

you

pen¬

through self-denial and

re¬

on

the

newly

Nothing has
shares

since

developing

first

four

months

as

if

net

for

the

full

sinking and other
reserve
funds, will top $6.00 a
share. Such earnings, coupled with
prospects that the charges may
soon
be down to, or below, the
$4.5 million annual level has na¬
turally resulted in the hopes of
a reasonably early resumption of
year,

before

dividends.

com¬

analysts that before the
is out the stock will
back in the dividend paying

United

looks

now

Juran & Moody Add
(Special to The Financial Chronicle)

current year

be

the

year was more than double
that of the like 1951 interim. It

among

insurance policies—you 85
million
who
have
purchased

for

this

There is considerable feeling

is

in

flecting this improvement, net in¬

been paid
1931.

optimism

This

to¬

ST.

PAUL,

has

staff of

Juran

sota

Mutual

— John
A.
added to the

Minn.

been

Mayerle

&

Life

Moody, Minne¬
Building.

The Commercial and Financial Chronicle
32

12

Current Economic Trends
in the worst natural trend is strongly upward
month the following winter. There and will reassert itself after a
moderate correc¬
would be demands for cutting the comparatively
standard work week to 35 hours tion.
As
I
said
before, production
and raising hourly wage rates to
compensate. This would counter¬
act deflation.

(4)

of comparatively
points for cor¬
earnings, Treasury rev¬

Because

tiigh break-even

porate

would

enues

small decline in produc¬

to even a

It

sales.

and

tion

highly sensitive

be

be calcu¬
Profits Tax,

can

lated that the Excess

assuming it is still in force, would
in effect be repealed by a decline

pre-tax earnings of about 40%
present level. This could

from the

with a recession in pro¬

Jhappen

9%

(it was
basis).

that

In

1949, on annual

in

case,

12%-15%

about

only

of

duction

the rate of cor¬

porate tax liability could drop by
about $15 billion from the recent

There would also be
pressure for lower personal tax
States, because of shrinking in¬
comes, so that the combined Fed¬
eral revenues could drop by as
much as $20 billion annual rate.
Even if military expenditures are
reduced from the peak, they could
still be larger than now, and the
Treasury deficit could easily look
$27 billion.

$25

year

would

This

be

a

.

Thursday, May 29, 1952

.

factor, because on a cash basis it
would amount to $20 or more bil¬

with

is exactly in
calculated civilian

This

a

roads,

cluding

schools, hospitals,

water and sewer

systems, sewer¬

might have to be put on a

self-

paying basis.
(4) The final point I wish to
make is that there is opening be¬

vast new
frontier of wants and investment
country

this

fore

rest,

a

for

travel,

for

for

self-improvement. You
if you

can

call it,

wish, for lack of a better
economics
of the
whole

term,
man.

Economics of the whole

ent

consumption

is

sure

of

new

call

to

man

may

distant shifts in pres¬

some

mean

but

patterns,

for

vast

a

it

array

capital goods to make

it

possible. Only a country which
finally conquered its physical

has

normal. We base this
wants can afford to think in these
normal on population, opportunities. I mean by this a
terms.
There is only
one
such
trend of productivity and trend whole range of services, as com¬
of
hours
worked per
week in pared to goods alone, which would country in the world, and that is
the United States. We can afford
adequately
meet
man's
manufacturing.
It measures the more
it in physical terms and we are
country's combined capacity to needs and desires which are other
than strictly material. Don't for¬ gradually becoming more capable
produce and to consume.
of grasping the need and signifi¬
Because of the growth of popu¬
get that the work week has been
lation and of productivity in in¬ getting shorter, and will be get¬ cance of this trend, so that we can
also afford it financially without
dustry, and despite the gradual ting shorter still, and people will
tendency
to
shorter hours of have more leisure time and will be waiting for the Federal govern¬
work, production gains normally thinking what to do with them¬ ment to do it for us.
about 3% a year, or 6 to 7 points
on the FRB index.
In three years
this is 20 points.
And in five Continued from page 16
long-term

it is 30 to 35 points. Thus
in five years, the normal growth
of the country could produce an
effect
on
production
nearly

I

ot

think

labor

the

that

this

equivalent to that of all military
expenditures at the present time.
By 1960, the normal position of
the FRB index of industrial pro¬
duction, including a

certain per¬

military

component,

manent

should be 250 or more.

Thus, if you can afford
view

business over

to take

level of
the next few years,

the

of

average

including a possible recession, you
get; a level which is not much
different from the present.

and the

improvements possible on

of

area

Strangling Risk Capital
the

particularly

taxes,

To

appreciate

because

economic

the

believe

we

that

is reduced, more

tax

Excess Profits Tax.

of

these

doctrinaire

take

will

place.

ing

not with conditions as
actually exist here, but as
existed
in
Europe in the
century.
In spite of the fact
our

and

economy

ganization

has

the

if

have

with

been

Tax, it

capital, and for this purpose
in mind that the

that

and

conditions

under

rate

of

transactions

a

do

it must be kept

lower

flow of

take place, they will be transac¬
tions which would not take place

guided
I

mean

over

after

capital is controlled and
by profit, and by profit
real profit—what is left

all

at

more

depletion and obsolescence
provided for and taxes

place

the

owners

of

have been

High

paid.

profits

reflect

large

demand; when retained they per¬
mit formation of capital at the
exact

point where demand says
capital is most needed, and they

at

tax

present

rates.

If

transactions do, in fact, take

business

for

more

result of lowering the
rate, then each one of them will
involve
incurring a tax which
as

they
they
19th
that

social

our

evidently

or¬

to

up

this

point been strong enough to
it, I believe that this Marxtinted advocacy of punitive tax¬
ation
is
not
liberal, but rigid,
stand

doctrinaire,
and
illiberal;
not
progressive, but reactionary; not
modern, but obsolete; not good,
but

harmful; and I think it be¬
of

hooves each

one

spoken

even

and

daily

our

lives

to

us

be out¬

evangelistic

and

in

our

in

con¬

tacts with out law-makers in our

denunciation
ideas and in
ican

anti

of

our

capitalist

-

support of Amer¬

;

capitalism.

Government

,

Competing With

Private Business
And

I

now

one

going

am

this

in

take

to

aspect of economic

more

activity

transactions

We

unreal¬

and

where

country

straight thinking is required and

justifying this reduction by as¬
is necessary ; to
understand the serting that a lower rate would
actual practical working
of the increase revenues from the tax.
mechanism for supplying industry To the extent that we are right
evil of the Excess Profits

explainable

istic so-called "liberals" is Europe,
and that they are in effect deal¬

up

Taxes

movement,

is

years

injected into the econ¬
omy over and
above what the
(2) This is a highly creative
government collected from it.
age in all arts, including indus¬
(5) There has accumulated, and trial technology.
Only a com¬
will continue to accumulate, a tre¬
paratively small section of Amer¬
mendous backlog of needed pub¬ ican industry has yet availed it¬
lic works and improvements, in¬ self of all the fruits of research
lion being

in¬
projects

More such

iriends

psychological side—his desire for by the fact that the spiritual home
beauty in life, for knowledge, for

some

individual

and

man's

health,

may

day be possible to finance hospi¬
tals through joint participation of
insurance companies, local gov¬
ernments

develop¬
of

it

perhaps

vestors-users.

the

means

satisfaction

and

ment

long-term

a

stabilizing

index.

FRB

line

in one

billion or more
of such recession.

like

strictly for civilians is now equiv¬
alent to about 175 points of the

instru¬

This

selves.

need. Just to

the

meet

to

illustrate,

million

4.7

eeed

of investment

forms

new

ments

in¬

devising

in

institutions

vesting

of

imagination

the

to

here

Continued from page

in

.

(2260)

a

where it

This,

now seems

is one of the areas

too,

which

in

manner,

and

socialist

rigidity

a

where
;

of

in

"liberals'"

so-called

the

operating

are

to be lacking.

reactionary
doctrinaire,

thought

is

apparent.: You may recall that in
1935

Public

a

Company Act
decreed

the

trolled

"death

a

vast

Holding

passed which
•

sentence"

enterprises' which

for
con¬

utility empires from cen¬

offices

tral

Utility

was

in

New

York

and

The principal arguments

Chicago.
advanced

by

the backers of this

legislation for the ending of the
holding companies were that local
would not otherwise be incurred,
management for utilities would be
and

increase

therefore

tax

reve¬

responsive to the needs of
communities, and that it was
socially undesirable to have

more

It

nues.

seems

to believe

entirely

logical

that the increased reve¬

local

basis, either in plant or prod¬ attract new investment to meet nues from transactions which un¬ power over large amounts of elec¬
We haven't had, real that
demand;
thus
the
profit der present laws simply do not trical energy concentrated in a
These projects were postponed, competition,
in the automobile mechanism is a sensitive and flex¬ take place at all, will much more few individuals. As we look back
first by the depression of the '30s, field, for instance, since the '30s. ible one which serves to attract than offset a reduction in the rate,
on it, those arguments were pretty
and
therefore in the return
of
then by the war, then by the post¬ In the next real recession we shall savers' capital and to create equity
sensible, and as the breakup of
war inflation of costs,
and, once probably be amazed to see how capital through retained earnings transactions now taking place.
the utility holding companies has
In addition to a lowering of the worked out in
again, by Korea. Billions worth quickly American industry will in areas where the public's free
practice, I think
cannot wait any longer, especially come forward with brand new, choice shows that expansion is in rate, I have once before suggested
it is now generally agreed that
schools and roads.
Expressed in greatly
improved
and lower the public interest. The Excess that it would be entirely logical the
legislation was good rather
terms of physical volume and re¬ priced models. Not to do so would
Profits Tax, because it is gradu¬ for Congress to extend to trans¬
than otherwise.
*
duced to a per capita basis, all be to invite attrition of earnings
ated, discriminatory, and confis¬ actions in stocks the exemption
However, while the public util-~
such projects built in the decade which the large, growing corpora¬ catory,
effectively
defeats
the from payment of the capital gains
ity holding companies were being
of the '40s were 50% less than in tions could not afford.
working of the profit mechanism, tax accorded in the 1951 Revenue broken up, an entirely new pub¬
the decade of the '30s, and 52%
(3) I feel certain in saying that and it is for this reason that, from Act to exchanges in owner-occu¬ lic utility holding company much
less than in the decade of the '20s.
there will be no great expansion an economist's point of view, it is pied dwellings.
That is to say, larger than any of the previous
Compared on the same basis, 1951 of Federal intervention following indefensible and should be allowed where a holder of stocks in which
holding
companies
was
being
construction of these public im¬
the next general recession, as was to expire by limitation next year. he has a profit sells them and created.
This holding company
provements was 21% below 1932, the case in the '30s. In the next
Another
tax
assault
on
our
promptly reinvests the proceeds operates in widely scattered loca¬
the worst year of the great de¬
recession
the Federal
deficit economy as a whole, which af¬ in other stocks, he should be al¬
tions, contributes relatively little
pression! I understand that one would tend to be so large that the fects our
industry more than any lowed to do so without incurring to the support of local govern¬
organization made a survey of Congress would be thinking of
other tax, is the tax on capital a tax liability. Such a change in ment, and if anything, is less re¬
what
towns,
cities
and
states reducing taxes instead of voting
the law would not diminish reve¬
gains.
sponsive to local needs than its
would
spend if they had the new
nues from the tax, it would merely
big expenditures. A possible
Of all the areas of ignorance
predecessors.
The holding com¬
money and were told to build all
allow transactions to take place
change in Administration might or lack of
pany to which I refer is, of course,,
understanding on eco¬
that they needed. It came up with
also have something to do with
that are now impossible because
the Federal Government itself.
nomic subjects, the areas in which
a staggering figure of $150 billion
such a decision.
Of course, a
in transactions of this type the
The claims of lower rates for
general
understanding
is
least
over the next
10 years, or $15 switch from military
expenditures
capital gains tax acts as a transfer electricity by which the public
billion a year, which is roughly
evident, surround the capital gains
to certain public works might be
tax—and a transfer tax at a pro¬
tax. The facts concerning this tax
power advocates justify their de¬
three times the recent rate.
hibitive rate.
possible but this would provide which
mands for growing appropriations
people seem to have the
There are
still other reasons
age

disposal plants and the like.

this
uct

design.

little net stimulation.

why

a

prolonged or serious slump

The

big demand then will be
any time in the next several years
for local—i.e., state and municipal
would be unlikely, but this enu¬
meration may do. On the whole improvements. The Federal Gov¬
ernment
would -no
doubt
help
you may say that our economy is
with limited grants and guaran¬
constituted
now
that
alarm

greatest difficulty in grasping are
twofold. The first is that payment

A final fact to be kept

if

are

we

to

in mind

for

the

construction

of

steam

think straight about

plants for what we may call the
that, because Federal Holding Company are, of
of the tax is voluntary—no one
it immobilizes capital and makes
has to pay it.
course, illusory.
A modern gen¬
A man who owns
the raising of new capital more
erator
in
a
a
stock in Which he has a profit
government-owned
expensive and difficult than it utility plant produces electricity
does not have to sell it.
He can
otherwise would be, it is infla¬
tees which after all is more or
at
hold
it until
the market price
exactly the same cost as a
axrens
will be going off earlier
less accepted procedure now. But
tionary. After all, the only an¬ similar generator in private hands.
and louder than on previous sim¬
declines, or he can hold it until
swer
to inflation is production,
the bulk of the money would have he dies. It is this
The lower rates that governmentvoluntary na¬
ilar occasions.
And the fire en¬
and in a full employment econ¬
to come from non-Federal sources. ture of
owned
utilities
offer are
only
the tax which is so damag¬
gines will come to the job sooner.
But how would it be financed,
omy the
only way to get more made possible by subsidies ex¬
But there is one; unpleasant thing
ing to a dynamic economy be¬
since local governments usually cause
production is to apply more tracted from the taxpayers of the
it
about fire engines even though
provides an effective,
have
difficulty in recession in continuing, dollars-and-cents rea¬ capital.
whole country for the benefit of
they are used as a figure of
getting new bond issues approved son for locking up in the hands
I think that you can see from the consumers in the areas served.
speech. They are painted red, and
by voters?
interrelationships
between I believe that in the interest of
of holders who have been success¬ the
this brings to mind the connota¬
Fortunately, the dilemma is not ful venture capital which other¬ rewards for labor and the various competitive fairness we should
tion of socialism, or at least ano#ier
way

push in that direction by
of increased government in¬

tervention.

And

so

come

we

the third

big fear of investors
the fear of long-term change.

to
—

as

bad

are

as

open

Long-Term

Outlook

I think the long-term outlook is

really

quite favorable,

for

these

trend is

(1) There will be no need for
applying newly invented artificial

physical




fi¬

And

of

necessity

the

growing toward the self-

liquidating type of public projects,
such as the generally successful
turnpike

of recovery, because the

local

could

wise

have

been

for the development of

available

those

new

Maturities may be products and processes which are
lengthened further, though not all part of the life blood of economic
the way to those prevailing in the
progress.

reasons:

measures

increased

nancing.

twenties.

Favorable

it looks. Several ways

to

the

and

projects.
need

is

Finally,

now

so

strong

pressing that still other

will be found. There is

a

the
ways

challenge

The

second

tax

which

one

which

is

fact concerning the
not

understood

flows from

is

its volun¬

tary nature, and that is the influ¬
ence of the rate on the yield to

tax

factors

is

the

fact

affecting

of vigorously
oppose
tax - exempt
productive operations of all kinds
evident paral¬ wherever we find them. Under

the

supply

capital that I have been discuss¬
ing, there is

a very

lelism of interest between capital

Treasury

of

high tax conditions tax-

exemption is such a potent favor¬
they actu¬
ing factor that tax-exempt pro¬
ally exist in this country, and
yet the interesting thing is that ducers, whether publicly or„ pri¬
much of the advocacy for puni¬ vately managed, are in a position
social

tive

organization

income

taxes

as

on

individuals

the tax.
Now, and corporations and higher capi¬
brokers have long been urging a tal gains taxes comes from certain
who
profess
to
be
reduction in the rate of the tax; "liberals"
the

present

and labor under the conditions of

to

eliminate

private

taxpaying

competition—this is the substance
of

socialism

and

therefore

pro-

Volume 175

Number 512§

.

.

The Commercial and Financial Chronicle

.

(2261)
foundly Inimical

to the American

Continued

kind of capitalism.

jrom

page

5

33

price index the

past week. The index closed at 297.84 on May 20,
with 297.08 a week
earlied, and with 319.13 on .the
corresponding date last year.

comparing
American

Common Stocks—Basic

The State oi Trade and

Merchandise
We've
is

now

some

of

it

straight

and

to

now

ciety

about

we

more

draw

with

to

the

which

some

American

basic

our

they are catching up with
"Steel," is their attitude toward scrap. A few months
ago many mills were operating on
hand-to-mouth supplies of
scrap and the government was shunting scrap from here to there
to keep mills going.
Now evidence continues to pile up that the
edge is off scrap demand. Even though they are consuming scrap
at capacity rates, mills have built
up scrap inventories to as much
demand,

I should
so¬

and

useful

conclusions, particularly with
erence

Another sign that steel mills think

as

our

ref¬

merchandise

as

industry deals—

common

stocks.

goal,

but

desirable

in

practice,

of

consider

we

inflation

the

of

two

to

conclude

evils.

wherever
in

the most

an

I

think

problem

a

inflationary

way,

will

we

flation.

to

tion.

and

choose in¬

aggressive

ently

insatiable

istrators; and
money

to the

or

general

auto

logical to conclude that
in

must

selves

ilife.

the

to

long

an

Stocks,

perfect

run

although

inflation

as

adapt

inflationary

against

IV

Car

in

their

and

effects, against

searches
be

houses,

persons,

and

We

rights.

weeks'

total

6.8% below the

of

11,060

loadings

papers,

are,

shall
as

a

prac¬

agreement
on
property
I believe that subject to

qualifications, of which you
aware,
including taxes,
property rights are more gener¬
ally recognized now than at any
all

time

in

the

last

20

This
to be largelv the result of

seems

years.

the
increasing diffusion of the
ownership of stocks and of ho^es

larger proportion of families

—a

now

their

own

own

mortgaged, than
history, and there

ever

homes, albeit
before

ever
are

in

grounds f

Finally, I
population,

the

and

power

mated

highest

point to

our

rising
democ¬

our

working

invention

and

at

and
our
rising sense of
responsibility as grounds
believing that despite diffi¬

social

culties.
in

we

obstacles
this

an

I

am

and

country

Passenger

Output Holds Steady in Past Week

are

setbacks,
still

an

seems

important

production in the United States the past week,
according to "Ward's Automotive Reports," totaled 92,654 units,
compared with the previous week's total of 94,579 (revised) units,
and 117,543 units in the like week a
year ago.
output for the past week was.made up of 92,654 cars
and 25,784 trucks built in the United
States, against 94,579 cars
and 25,360 trucks (revised) last week and
117,543 cars and 33,205
trucks in the comparable period a year ago.
Canadian producers last week turned out 6,590 cars and
3,360
trucks, against 6,910 cars and 3,065 trucks in the preceding week
,

and

5,447

cars

this

advance.

Business Failures Decline Further

Inc., reports.
last

year's total of 191 for the similar

214.

Less

than

one-half

as

many

week and the

concerns

failed

1950 total of
as

in

prewar

1939 when 303 were recorded.

Failures

involving liabilities of $5,000

to 119 from 124
year.

A

a

small

decrease

also

occurred

declined slightly
comparable week of last

or more

week ago and 150 in the

casualties

among

liabilities under

$5,000, which dipped to 26 from 30 and
considerably from the 41 in this size group in 1951.

having

were

off

W. Link, Jr.

In

Twenty-One Months

The trend in foods continued

sharply upward last week. A rise

of 10 cents lifted the Dun & Bradstreet wholesale food
for May 20 to $6.48. This was the

price index,
highest level since mid-March,
sharpest weekly gain since the week of Aug. 29,
1950, when it rose 13 cents.
The current index at $6.48 compares

with

(Francis I. du Pont &

Hickory,

elected

to

N.
the

C.,

The

the

corresponding date

a

year

ago,

or

a

drop

of

Flour prices
was

were

somewhat firmer at the weekend but there

little activity in bakery

very

other types of flour during

or

the week.

Following sharp declines at mid-week, cotton prices turned
upward

to

register

small

net gains for the week.
Strength in
attributed largely to technical considerations;
and reports of increased
activity in cotton textiles over the week¬

closing sessions

was

end.
There was a good demand for cotton from
shippers who
reported difficulty in obtaining higher grade cotton to meet com¬
mitments to domestic mills.
Sales in the ten spot markets last
week increased to 56,400 bales, from
39,100 the week before, and

compared with 52,700 bales in the corresponding 1951 week.
Con¬
sumption of cotton during April was estimated by the New York
Exchange at about 815,000 bales, or 17.0% under April

Cotton

last year.

'

Trade Volume Held

'CJ*

Steady in Past Week

Retail trade in the period ended on
Wednesday of last week held
at about the previous
.week's level as

unpleasant weather damp¬
As during recent weeks
generally unable to match the high sales
year earlier.

ened the interest in
many
retail merchants were

figures of

a

seasonal goods.
,

The lifting of the curbs

ping to

on

consumer

credit did not spur shop¬

appreciable degree; most merchants were wary of ex¬
tending unsound terms. The most notable immediate rises were
any

reported by
recent

automobile dealers whose sales had

been

lagging in

months.

Retail dollar volume in the nation in the
past week was esti¬
mated by Dun & Bradstreet to be from 3% below to
1% above the
level of a year ago.
Regional estimates varied from the corre¬

sponding 1951 levels by the following percentages: New England
and

South

+1 to —3; East and Midwest —1 to —5; Northwest
—6; Southwest -f2 to -f-6 and Pacific Coast -f 1 to
-f-5.
Department store sales on a countrywide basis, as taken from

—2 to

the

Federal Reserve

Board's index for the week ended May 17,
change from the like period of last year.
In the
preceding week an increase of 6% was registered above the like
period a year ago.
For the four weeks ended May 17,

1952, reflects

1952, sales

2%.

rose

no

For the period Jan. 1 to May 17,
1952, department store
a decline of 5% below the like
period of the pre¬

sales registered

ceding

year.

Retail

"

trade

in

■

New

York last week, trade estimates
reveal,
declined 8% below sales volume for the like
period of 1951. Bad
weather coupled with a poor consumer
response to the removal of
credit restrictions accounted for the decline.

According to the Federal Reserve Board's index, department
store sales in New York City for the
weekly period ended May 17,

1952, decreased 8% below the like period of last
ceding week a decline of 3% was recorded
week

In the

year.
from

that

pre¬

the

of

of

1951, while for the four weeks ended May 17,
1952, a decrease of 5% was registered below the level of a year
ago.
For the period Jan. 1 to May 17, 1952, volume declined 10%
under the like period of the

preceding year.

Wholesale

of

represents

the

sum

total

of

the

price

per

pound

Commodity Price Index Gains Following
Earlier Declines

a

Langley Offers Long
Island Lfg. Pfd. Stock

,

,

Strength in livestock and pork products largely accounted for
slight rise in the Dun & Bradstreet daily wholesale commodity

Blyfh Group Offers
Husky Oil Common Stk.

An underwriting
group headed
Blyth & Co., Inc., heads an in¬
by W. C. Langley & Co. is offer¬ vestment
group which is offeripjjL
ing 100,000 shares of Long Island publicly
today
(May 29, 1952)w
Lighting Co. 5% preferred stock, 200,000 shares of
Husky Oil Co.
series B, at $100 per share and
common stock at a price of $11.50
accrued

Net

dividend.

per

from

proceeds

the sale

of

these shares will be used for
par¬
tial payment of bank loans in¬
curred for construction of

utility

plant.
1952

It

is

estimated

construction

that

share.

,

Proceeds from the sale, together
with
net
proceeds
of
approxi¬

mately

$1,000,000

additional

expected to be sold to North¬

will

program

31,

1952.

100,000

shares, which

are

ern

Natural Gas Co., Will

ap¬

for

general

corporate

proximately $45,000,000, of which The
company
$9,300,000
has
been
expended ploration for,
March

from

common

the

require total expenditures of

Con¬

fining

of

be used

purposes.

is engaged in ex¬
production and re¬
oil and in the

crude

struction
requirements
for
the
marketing of petroleum products
period April 1, '1952 to Dec. 31,
in the United States.
The com¬
1954, inclusive, are estimated to
require expenditures of $95,000,- pany owns approximately 57% Of
000

for

electric

000,000

for

gas

$10,000,000 for
The

index

foods in general use and its chief function is to show the
general trend of food prices at the wholesale level.

United States Radiator Corp., the




on

of 31

have

board

company announced.

$7.17

9.6%.

Co., Miami, Fla.), and Andrew M.

flour, as wheat, for the season through April were reported
407,000,000 bushels, as compared with 277,000,000 in the same
period last year.
Rye prices declined on
profit-taking following
last week's sharp rise on the
prospect of a very short crop.
Daily
average sales of grain and soybean futures on the
Chicago Board
of Trade totaled 33,300,000 bushels last
week, as against 37,500,000
the previous week, and
27,400,000 in the same week last year.

through

Wholesale Food Price Index Scores Sharpest Advance

Two additional directors,
Harry

been

industrial failures dipped to 145 in the week
154 in the preceding week, Dun & Bradstreet,
This decline brought casualties considerably below

and marked the

Elected Directors

Scharrer,

and 2,064 trucks in the similar period of a year ago.

Commercial and

vig¬

in

Exports of wheat

and

Total

certain to

part

Wheat prices held within a narrow
the seasonal lows of mid-April.
Prospects

at

similar

car

proud to participate in

industry that

play

light
esti¬

Export

remained dull.

corn

range at slightly above
for the Winter wheat
crop continued excellent.

of 55,102 cars,

but

industry for the week ended. May 24, 1952, was
7,146,204,000 kwh., according to the Edison Electric

U. S. Auto

orously advancing in every sense,
and

decrease

was 35,811,000 kwh.
above that of the pre¬
ceding week when actual output amounted to 7,110,393,000 kwh.
It was 493,505,000 kwh., or 7.4% above the total
output for the
week ended May 2-3, 1951, and
1,252,422,000 kwh. in excess of the
output reported for the corresponding period two years ago.

re¬

search

for

a

a year ago,

ended May 22 from

can

in

represented

The current total

point

our
improving education,
increasing emphasis upon and

confidence

according

also

corn-hog feeding ratio.

trade in

of

Institute.

racy,
our

to

decrease

a

The amount of electric energy distributed by the electric

^r

reached.

at

of

equivalent

or

an increase
1.5% above the comparable period in 1950, when
reduced by railroad labor difficulties.

were

rectly, the number of stockholders
stands

1952,

cars, or

believing that, directly and indi¬
now

26,

castings,

week's actual production of 2,134,000
of rated capacity.

corresponding week

many
are

May
for

Electric Output Makes Further Gains in Latest Week

not

on a high degree
organization and fairly

social

steel

revenue

cars,

or

ysis, predicated
of

general

beginning
and

in grain markets
continued irregular with
and barley
scoring moderate advances while rye and
declined.
Strength in corn reflected a good demand for
smaller market
receipts, coupled with soaring live hog prices
which have greatly improved the

year

Loadings Rise 4.8% Above Previous Week

"The

Since, after all, a com¬
stock is only a piece of
pa¬
its value is, in the last anal¬

mon

(actual)

secure

attention.

per,

ingots

754,373

The

property, and this question is
receiving considerable legal

now

for this is the time of the

movements

corn

oats

the

freight for the week ended May 17, 1952,
to the Association of American
Railroads, representing an increase of 34,580 cars, or 4.8% above
the preceding week.
totaled

tical matter,
reasonably secure in
our

from

unreasonable

seizures,

violated."

week

of

Loadings of

capital

part of the Bill of Rights:
right of the people to be

the

102.7%

or

still

says,
which is

Amendment

demand

A month ago output stood at
52.1%, or 1,083,000 tons, the low
level having been due to the strike threat.

Secondly, the Constitution
the

tons

tons,

of

erosion.

in

the

from

hedges,

inflation-caused

now,

then,

0.4 point above the previous

we

to afford the best
protection

seem

But

102.3%

for

2,124,000

our¬

far

industry should be high

capacity

it

way

of automobiles.

The American Iron and Steel Institute announced this week
that the operating rate of steel companies
having 93% of the steelmaking capacity for the entire industry will be at

business

sequence, and subject to the vari¬
ations of
the
business
seems

many

when autos sell best.

slow-up at home is likely to be of
an
inflationary nature. As a con¬
cycle,

lifting of

government restrictions

challenge of threats

abroad

Since the

production

on

a back¬
which the readiest re¬

in

sponse

from

admin¬

war-created

supply, providing

ground

a

Price

wheat,

record

continues this trade magazine.
On the other hand, it points
out, the earlier easing in demand
for hot-rolled and cold-rolled carbon steel sheets
has disappeared.
This is largely the result of relaxation of

labor

and appar¬

political
vast

a

this year and will push the already
further new record, it adds.

of these restrictions, new building
projects and plant expansions have not developed as
rapidly as
was anticipated, and as a result demand for
structurals is waning,

Moreover, we have in
inflationary bias;

powerful

operation

tural shapes, which
only a few months ago appeared to be in such
strong demand that the government put restriction on construc¬

be solved

this country an

leadership; tax-hungry

much more choosy,

are

Some of the steel products that came into easier supply earlier
this year show further
signs of weakening. One of them is struc¬

deflationary

or

tend

Consequently, mills

reports of price shading on some steelmaking grades.

high capacity to

course,
lesser

it

can

into

come

logical
the long run

that in

are

price scrap as quickly as possible.
Assisting the steel industry in its output effort is its growing
capacity, declares this trade journal.
The bulk of the additional
capacity being realized from the current expansion program will

economy to be considered. In
this respect we all
give lip-service
as

60-day supply.

a

Some scrap dealers have been advised to clear their
yards of high-

First, there is the basic ques¬
tion of inflation and deflation in

stability

says

and there

our

to

Industry

reported to be well stocked with bars, this

are

trade paper notes.

few

broadly

the West Coast

on

some

matters

economy.

can

hope

a

contemplate

little

a

if

our

I

thinking,

economic

they affect

see

what

unorthodox,

social

like

done

new

property;

$15,- the
and

property

common

property.

preferred stock is

re¬

deemable at any time at $104 per
share

$103

through
per

years, $102 per

five

March

31,

1957,

share for the next five

years

share for the next

and

$101

per

Ltd.,

which

pany

case.

a

Canadian

engages

activities in Canada.

in

The

com¬

similar
common

stock of the Canadian company Is
listed on the Toronto and Mont¬
real

Stock Exchanges.

ing

of

common

stock

This offer¬

of

Husky

share Oil Co. represents the first public

thereafter, plus accrued dividends distribution
in each

stock of Husky Oil &

common

Refining,

of the

of

the common stotk

parent company.

34

method

The

©

Mutual Funds

nished

By ROBERT R. RICH

Investment

to the

Open

York,
tax on the
gross
make good
their promise to quit New York if the proposal becomes law.
The city has proposed to increase its annual levy on financial
of

Leaders

the

largest

Details and

% of 1 % to 4/s of 1 % of gross

businesses from

SERIES

Investment companies in

NATIONAL SECURITIES

A

particular, it was pointed out, must

margin and the increased tax
unfair position compared to investment

RESEARCH CORPORATION

will

120 Broadway, New York 5, N. Y,

granted
to investment companies, the city will gain no revenue from them
because they will move out of State and New York State will lose

place them in an
companies in other cities.

Mutual Fund Notes

much as $500,000 in franchise taxes.
The total tax will yield about $7 million if the increase goes
as

increase of a little more than $2 million.
on gross income, at the new rate, will be four times
greater than that now paid by any other business. It will be 800%
greater than the rate paid in June, 1946.
Spokesmen for the city said they expected the bill to go before
an jexecutive
meeting of the Finance Committee next week and
an

The tax

City Council the following week. "Allowing two days
the Board of Estimate, and the necessary five days
before the Mayor," one official said, "and we should have the bill
through easily before the deadline of June 30."
The bill is part of the city's general plan to dig itself out of its
financial "hole," which has grown steadily worse the past lew

MUTUAL

INVESTMENT
FUND

For

free prospectus mail the coupon

a

One Wall Street

New York

State

sible

year

the

to

me a

no

obligation please send

prospectus on

Canadian Fund, Inc.

income taxes at the new rate for receipts during the calendar
1952.
In substance then, "the bill, if it becomes effective on

be retroactive to Jan. 1, 1952," Max Brofman,
Chief Tax Counsel for the city, stated.
The two possible courses of action for investment companies,
other than

Nome.

of the law

moving out of New York, will be to move for repeal
at the city level or for a change at the state level in the

amendment to the General

Address.

in

common

assets of over $200,000,000 owned

Originally started in Philadelphia, investors put $14,000 of

Lord Abbett & Co.

rate of $7

is

million

reducing its sales charges on Affiliated
on June 1, 1952.
The com¬

With

a

sales volume at this level, we can

the distribution of the shares

narrower

average

margin

than

on a

we

profitable basis with d

now

retain

of

out

charge."

'

Changes Are:

.

the

net assets of

share,

per

.

(1)

$100,000, Lord Abbett's portion of the sales charge will be % of
1%; on $100,000 or more, it will be Vz of 1%.
(3) Sales charge on
single sales of $15,000 or more, but less than $25,000, will be re¬
duced from 6%%

In

Prospectus

may

from

investment

The

Parker

dealers

or

Corporation

Berkeley St., Boston, Mass.

200

js:

U

•FOUNDED

to 5%% with

a

dealers' concession of 5%.

398,

$189-,910,615, or $4.69-

ApriF30, 1952, com¬

on

$4.65

or

share,

per

message to

a

1925*

J

the

reductions in

with lower management fees, we will put further reductions into
effect."

periojwere $1,990,770.
important changes in
during the six."

more

holdings

months'

period were increases in
electric light and power,

A

simplified method of creating and administering
profit-sharing plans for deferred employee benefits was announced
Wednesday by Vance Sanders & Co.
•

new

and

The result of fourteen months of technical

will

the

serve

needs of

research, the method
size

thousands of companies of moderate

heretofore discouraged by the many complexities, including
cost, incidental to creating an acceptable employee benefit
which will

high
plan

qualify for tax exemption

and meet the requirements
Stabilization Board.
The method has been made
available to investment dealers throughout the country.

of

the

Wage

The

t

Vance

Sanders

method

can

be

utilized

by

almost

any

company in any locality served by a bank with a trust officer, the
firm states.
It has been streamlined to make the entire operation

easier for the company's executives,

xey stone

participating bank.
standard

plan

can

the company's counsel and the
The basic structural work has been done.
A

be adopted unchanged or with variations.

MlSc U

GUARDIAN

reported

net assets of

The

Business Shares

Company

Please send

ten

me

prospectuses

I'rospcdtts

describing

upon

request

with

compared

UNITED
the

$11.54

SCIENCE

the

United

Name

Loiid, Abbett & Co.
State




Fund,

Funds

.•

the;

portfolio

group,

United SCIENCE Fund
m

United INCOME Fund

re¬

United ACCUMULATIVE

May 16, 1952, the second anniver¬
sary

of its founding.

tific

fields

have

been

The

which

in

made

scien¬

investments

in order of

are,

size, geology, chemistry, mechan¬

Fund
iff

Through Periodic Investment Plans

Vf:

Prospectus from your
Investment Dealer or

-

„

I

ical

engineering, metallurgy, elec¬
tricity and electronics, biochem¬

aerodynamics,
(atomic) physics.,

RETAIL

City
to

PRICL'3

and

goods

nuclear

of

consumer

Bureau

the

of

increase

prices.

New York

-

1012 Baltimore Ave,

Kansas City, Mo.

City

New York

-

—

Chicago

—

Atlanta

—

month

R.

Labor

citie^,

the
in

Behlow
cause

food

they

stand

0.2%, while in
were

higher

New

York

fa

level of 183.5%-

at

by

City

1935-j3'9

average,
only
lowerj than the all-time

in January

"WE

HAVE

Herbert

R.

of this

OjNLY

mass

year.

seen the be¬

Aviation Group Shares;
Bank Group Shares
Insurance Group

funds,"
President

Shares

Stock and Bond Group
Shares
Funds)

Investment

(Mutual

buying of invest¬

through

ments

of

in

Prices

the

prices

continues.
Ih
prices for cost-of-

Pittsburgh
0.3%.

month-to-

the

goo^ds

Philadelphia,
living items rj>se

Of

mutual

Apderson,

Institutional

Shares,

Ltd.

Distributor^ Group, said this
Sunday in a weekly mutual funds
over

any

In

WOR.

other Reason," he added

back

an

Distributed,

4 More peo¬

jncome today than

accounts

for the current

to 1 the so-called

investments."

J.

I

Statistics

higher

was

increase*

consumer

Los Angclex

1

Meantime, in other middle

Atlantic

swing

P

mid-March

Robert

reported this w$ek. Primary
of

INC.

Principal Underwriters
40 Wall St.

0.6% Ifrom

rose

of the

and

WADDELL & REED,

services in New York

mid-April,

"which

.

/-•

ported net assets of $12,750,591 on;

for

Oty

on

year

one

"scientific research"

ple invest for

D-4i

Addrets.

share

ly; _' "■ .'

earlier.

broadcast

Organization and the shares of your

Funds.

1951..

30,

per

of

50 Congress Street, Boston 9, Mass.

your

total

April 30, 1952, amounted to $11.57,

ginning of
The Keystone

FUND

1952,

April

on

value

asset

slightly

American

Z.FA*

$1,240,000, compared

$794,000
net

deolef

or

AL

April 30,

on

peak
COMMON STOCK FUNDS

investment

PHILADELPHIA

of

BOND, PREFERRED AND

your

in oil and chemical stocks.

now

Custodian Fund;

prospectus from

and decreases

istry,

Vance, Sanders Streamlines Profit Sharing Plans

Oct.*

on

31, 1951. Net proiits realized from
the sale of securities during the-

of

dealers, Lord, Abbett said, "We are confident
sales charges will stimulate business for
our dealers just as reductions have in the past
Whenever, in the
future, as a result of an increased sales volume, we can operate
profitably on still lower margins, or, as a result of larger assets in
the funds, we can maintain the quality of our management services

be obtained

:

.

.

pared with net assEts of $158,818,-

with

Sales charge will be reduced from IVz to
63A% on sales of $5,000 instead of $10,000.
Dealers' concession
will remain at 6%.
(2) On each single sale between $5,000 and

Investment Fund

.

FUND—R eports.

In the first four months of 1952,

month.

a

$28,406,573.

were

carry on

A Mutual

forms N-8 B-l

simplify

to

REPORTS

OPEN-END
AFFILIATED

and railroad stocks,

that

.

Exchange Com--

proposals

in announcing the reduction, said, "Our sales of shares of
Affiliated Fund and American Business Shares are now running

still

.

and S-5.

security

pany,

sales

market's

the stock

mission's

bank,

a

few days of

a

.

Fund and American Business shares

at

within

Keystone

into

depression low In May, 1932.
By the end of 1932, assets totaled
$358,000.
S. L.'Sftdlley and T. A. Rehm, co-founders, are still at
the helm as President and Vice-President, respectively. Keystone's
full-time staff now numbers 145.
Monday, June 2., is deadline

The

they

Custodian Funds, which now has
by more than 47,000 inves¬

is the 20th birthday of Keystone
net

six months'

City Law.

Lord, Abbett Cuts Sales Charge; Dealers' Share Steady
CHy

requirements of the recent law permitting banks!
and preferred stocks
...
May 28, 1952

rather rigid

invest

Legislature.

July 1, 1952, will
GENTLEMEN: At

believed

Gas, is

Electric and

of Public Service

exception

eligible for purchase by savings banks in New York State under

If the bill is approved by the City Council, investment com¬
panies and other financial institutions will on June 15, 1953, pay
gross

SubJ

profits were taken during a reduction in oil holdings:
Each security in Common Stock Funds' holdings, with the pos¬

for mutual funds*- comments on the Securities and

Authority for the new tax is an amendment to article 2B of
General City Law which was authorized by the New York

the

Established 1894

;•

.•

.

stantial

capital

below to your local investment dealer or

CALVIN BULLOCK

.

Chesapeake & Ohio, Liggett & Myers and Marshall Field.

tors.

years.

today for seven .weeks irf

listing of Lord, Abbett funds on one or'
more
European .stock exchanges is a possible future develop¬
ment
In this historically high market, Group Securities1
Common Stock Fund has made new investments in General Foods
and United Fruit and increased its holdings of American Tobacco,"
admitted that

Europe,

then to the

chat at

Harry Prankard, who leaves

BRIEFLY:

after

A

i

111U1115! 111111111 III 111111! 1111 III 11111111 HI I

'IIMillllllllllM

.

if special relief is not

One mutual fund leader said that

through,

Treasury Department as to tax exemption.

income.

operate on an extremely low cost

perhaps

be easily conformed

plan.

investment companies in New

by the city's determination to increase the
income of financial institutions, said they would

Prospectus

actual

an

Available also are printed forms in which
be inserted the information required in preparing a request

disturbed

•pon request

start,

the

at

iiimmiiimiiiimiimiiimiiiiiiiiiiiiUKi iu:iiiiuiiiiuw

Protest

Funds May Quit New York in Tax

^SECURITIES,

Account

Thursday, May 29, 1952

.

trust agreement which can

related

a

the adopted

to

can

Program
Investment

.

right

available,

makes

.

profit-sharing-plan designed in accordance with good' business
practice for moderate-size companies.
Company counsel is fur¬

National

An

Chronicle

The Commercial and Financial

(2262)

19

RECTOR

NEW

YORK

by

LTD.
STREET
6,

N.

Y.

risk
Prospectus may be obtained from

}

earlier .broadcast,

HARE'S

Henry

Simonson, Jr.,.of National Se-

the above or local dealer.

;

Volume

175

Number 5120

.

.

The Commercial and Financial

.

Chronicle

35

(2263)
curities
Qn

the

"It

is

and

Research,

speaking
outlook, stated,

business
good

for

our

economy

Continued

from first page

else in the world
would
really be better off for having
factories established in their
midst to give them
"employ¬
ment
and 'civilization." What
we are sure of is that the

to

spread defense spending over sev¬
eral
years,
because
it
sustains
business at a high level and

As

We See

It

task of

avoids

the

disadvantages

of

forced

spending accompanied by- forced
production." Mr. Simonson fore¬
saw

moderate

a

when

ness

defense

completed..

dicted.

decline

busi¬

spending

is

However,
he
pre¬
military expenditures

as

decline, there will
sating increase in
ture

in

be

a

compen¬

our

Simonson
believed
that
business will continue on the rela¬

tively

high

vailed

during the last few

said

level

that

however,
enjoy

that

Fox-Martin,
ment,
and

that

this

pre¬
years.

mean,

business

will

prosperity.- Milton

Manager

mutual

Mr.

-Simonson

PERSONAL
J.

the

radio"

Corp.,

has

President

Frank

D.

announced

Newbury

Consultant

Mr.

Newbury
Westinghouse

Mr.

become

forecasting

the corporation.*

for

that

has

business

on

J
Economist
Electric Corp.;

was

for whom he directed
forecasting
activities for, 10
years.

During
original

this
period,
he
made
studies of industry cycle
behavior.
Under his guidance,.research work
in

this

field

carried

was

work

auspices

done

was

of

Foundation,

the

at

on

Cornell University and field
vey

the'

Controllership
of

arm

of

the

America.

THE APPOINTMENT of
Frank

Betz^ Jr.,
Manager

T.:

as eastern resident Sales

for

the

Knickerbocker

Fund has been announced
by Karl
P. Pettit, President of Knicker¬
bocker Shates, sponsors of the
fund,
;

Betz, who joined Knicker¬
1948, has had broad ex¬
in both wholesale and

perience
retail

sales of mutual

rities.

fund

secu¬

In his canacity he will di¬

rect

sales operations

in

ern

district

14-year

for

the

Knickerbocker

the

Fund.

showed

east¬

He

relative decline in

a

today."

-omy

industrial

and

agricultural

oM

today, but
certainly should surprise nobody. The history of the un¬
der-developed regions of the world certainly furnisheii no
good reason anywhere, so far as we are aware, for suppos¬
ing that they would do anything other than they have
done
during the past year or two with any windfalls
which might come their
way. That, of course, is one of
the reasons—quite
possibly the controlling reason—why
they are the under-developed regions of the world. The
basic

trouble of these

them.

Rightly

interest
the

nor

work

regions is the people who live in
wrongly they have neither the driving
ability to undertake and to carry through

or

the

which

is

essential

to

basic

and

provemenUin their economic status.

they lack either the

one

of them their future
not

as

sustained

At

the

im-

least
or the other, and
lacking either
judged by Western standards is
very

bright.

a

organism

two-sided.. The first postulate is that

we

seems

to be

ourselves cannot

be enduringly prosperous unless and until we do some¬
thing effective to wipe out poverty elsewhere. The second
tenet appears to be that the act of
wiping out poverty

elsewhere will
What will

left to be
is

also to

serve

attacked, the deponents do

which has charmed

one

not

equipped to

as

eliminate

"happen when and if there

is

it

here

no

at

home.

more

not say,

poverty
but the idea

a

good

many,

reason

very

effectively about such

these.

apparently, who

steels, chemicals and metal stocks.
native

of Ohio, Mr. Gerken
Ohio University and re¬

degree' in

from Northwestern
for

was

writer

several

and

later

journalism

University. He
a

staff

and

mar¬

years
news

a

tjme at least

immensely^ Of
if

we

over

are

we

should

seem

to be

looked. Indeed

entering

the

investment

field

as a securities
analyst, spe¬
cializing in heavy industry stocks,
He
has
written
extensively on

steel

and

manv

metal

financial

-

securities
and

for

industrial

publications.

The

PROSPECTUSES

INVESTMENT
America
a

new

1952.

hss

COMPANY

released

Los

INVESTORS

has' released
dated

of

dealers

prospectus dated May 1,
Available from 650 South

Spring Street,
California.
FIRST

for

May

16,

a

new

Angeles

14,

Corporation
prospectus

1952.

of

w%had been guilty of much the sort of nonsense
and shortsightedness as Mr. Hoffman describes in his
account of \#hat has happened in
under-developed regions

eartfrrj We should, in all probability,

have engaged
in something akin to "an
orgy of consumption," and to
complicate matters still further we could also find that
had built Tip

industrial capacity for the production of
goods in amounts far exceeding any really effective de¬
mand—except on a permanent give-away basis. Mean¬
while,

our

natural

resources

would have been by so much

depleted, and much of our energies expended merely to
provide a better living for people who have little or no
appreciation 1;pf what they get and no intention and prob¬
ably no ability to take over the task of keeping themselves
upon this improved plane of living.

treaty.
tion

It is

New

African

We

jungles,

or

along the

upper

UN

a

which,

like

Declaration

of

It is not

a

recommenda¬

the

Universal

Human

Rights, is
intended to have only moral force.
Therefore, the UN code of press

Amazon

or

anywhere

press,
are
confronted by a tre¬
mendous job of public education.!
Thousands of sincere, honest, and

dorsed

the

ambitions.
these

without

examination

en¬

treaty-making
have endorsed

They

treaties

phrases.

people have

UN's

the

of

critical

flowery

Without this support

on

the part of warm-hearted humani¬

tarians,

the

State

would be forced to

Department

quit using the

unalienable

ethics will not be submitted to the

rights of the Amer¬
ican people as items of barter and

Senate for its approval.
Article 4
of this code of ethics declares that

compromise

it

is

the

scribe

of

duty

and

those

comment

who

in

treaty

negotia¬

tions.

de¬

One

the

of

basic

faults

of

events

upon

American foreign policy is thor¬
country to
oughly examined in the book,
acquire the necessary knowledge
"American
Diplomacy," written
of such country which will enable
by our new Ambassador to Mos¬
them to report and comment ac¬
cow,
George
F.
Kennan.
Mr.
curately and fairly thereon. Now Kennan
points out the disastrous
this is an excellent principle and

relating

to

foreign

a

reputable

no

will

:rman

which
flow
from
"the legalistic-moralistic approach
international
problems."
He
consequences

which

to

one

take

news-

exception.

to

to translate
explains the danger of abandoning
principles into treaty the national interest as a
deter¬
obligations enforced by the gov¬ minant
of
foreign
policy.
He
ernment must be resisted if the
explodes the fuzzy idealism which
press is to remain free.
seeks to impose on the peoples of
The acquisition of knowledge is
the world a universal law when
closely related to the dissemina¬
they have no common political,
tion
of
information.
It
is
not
economic or spiritual values.
surprising, therefore, to find the Ambassador Kennan has
paid the
UN forging chains for education
usual penalty for deviating from
which are similar to those de¬ the
UN party line.
His scholarly
signed for the press.
Article 28, thinking has been described
by
paragraph
7, of the UN
draft the Washington "Post" as "the
Covenant on Human Rights pro¬
new isolationism."
fine

vides in part:

The great majority of American

"(Education) shall promote un¬
derstanding, tolerance and
friendship among all nations,
racial,
ethnic
or
religious
groups,
and shall further the
activities of the United Nations
for

the

and

enable

maintenance

ticipate

all

of

to

par¬

a

persons

effectively

peace

free

in

society."
described

as

freedom

with

the

fruits

education.

of

expected

power

manitarian

is vested
these hu¬

attain
goals by compulsion,
to

the slave labor camps and

chamber
draft
a

the gas

not far distant.

are

Covenant

presents

us

The

with

choice between freedom of edu¬

cation and

a

perfect educa¬

more

tion promised by the government.
No one will deny, for example,
that

one

tion

in

a

of the purposes of educa¬

should
to

persons

free

imperiled,
moment

be

this

objective

all

becomes

responsibility of any

government

ternational
or

"enable

to

participate effectively
society."
Freedom is
however, at the very

the exclusive

national

ceived
the

or

organization.

any

in¬

not

been

de¬

by the pretty language in
documents

UN

freedom
have

dealing

verbiage.

They
exposed
the

concealed in pious

are

I

with

information.

of

relentlessly

traps which

better

cannot

sum¬

marize my

remarks today than by
quoting from the report adopted
the

American

Newspaper

Publishers Association at its

But

government

have

newspapers

by

What I have just read might be

con¬

vention last month:
"It might not be

quote

Alice

in

inapropos to

Wonderland

this time because the world

at
we

living in has something of
Wonderland quality.
Most

are

the

of the documents

are

filled with

'the very best words' just as
Mad

with

Hatter's

The

watch

was

best

very

the

oiled

butter.'

Nevertheless the watch stopped!
So with these
and

undoubtedly
sounding

less,

Codes, Covenants

Conventions.

our

filled

They

language.
freedoms

are

high-

with

Neverthe¬
may

be im¬

paired by their use."

Sooner

later, the minister of education

will be

who believes with Dr.

one

Conant that
schools

only

Many Difficulties
have,no intention here of going into the meta¬
physical question as to whether the natives of central




journalistic ethics.

whenever

of the

Ethics

fourth UN press document
takes the form of a universal code

of

NATION-WIDE Securities' newest
prospectus is dated May 10, 1952.
Available from One Wall Street,

York, N. Y.

Destroy

well-intentioned

Code of Journalistic

The

pected by actually delivering them.

we

NEW

,

ficiaries.

could dump the goods into the sea
—with results not
greatly different from those to be ex¬

find that

"Iron

Such

from page 19

those newspapers and correspond¬
ents who are its intended bene¬

we

-

such

upon

Freedom of the Press

the question as to how, when and
paid for all this could for a time be

before

of

count

well-being.

The United Nations Can

course,

0Ver to be

Age" maga¬
zine in Pittsburgh and New
York,

editor

to

alterations in the status of backward millions
and

Continued

prospering

But, of^course, at some time or other the day of reck¬
oning must .arrive. When that time comes, we may well

kets

not

future economic

own

—

It is

that for

Mr. Gerken will handle-

a

suspected by
day and time.

come
through the decades
through the centuries if it comes at all
and that,
probably, is the way it should be.

y

Services.

in¬

been

ceived

magnitude not

and

these

this notion of world-wide abolition of
poverty
tonic for our own economic

analyst for Moody's, has
appointed senior analyst in
the home office
investment de¬
partment cf-Investors Diversified

automotive

dustries

A

a

in their attitude toward life will

quite true, of course, that we could collectively
coin money and with it
buy goods here in this country
for shipment to Africa or
any of the other backward re¬
gions. Were we to do so, it might very well come about

;

of

one

be well advised

our

Hov^ever, the attempt

A Two-Sided Notion

Now

things

attended

is

of this

-<•

it

will

GERKEN, former

■■..\/v

These facts may, as Mr. Hoffman
says, constitute the
most
discouraging feature of the world economy

THEODORE H.

and

the huge
earnings of dollars
representing valid claims on the

resources are precisely what
under-developed
always say they need. The United Nations re¬
ports somberly that under-developed countries as a whole

are

metals

basic

that

currencies,

orgy of consumption. There was
very little 'economic de- *
velopment' on the basis of this unique and
potentially
advantageous period of relative wealth, although foreign

make
his
headquarters in the
fund's main office at 20
Exchange
Place, New York City.

steel,

evidence

pe¬

under-developed countries during 1950 and early 1951
were
simply dissipated in the inflation induced by the

as

Mr.

bocker in

the

for

programs

products of advanced industrial regions, that accrued to

sur¬

under

research

Controllers institute

is

and. other

discouraging thing about that

production during the period. This is
unquestionably the
most
alarming and discouraging feature of the world econ-

PROGRESS

SIMONSON, Jr.,

riod

most

—

countries

Andersen

on

We should

1949.

"Perhaps the

themselves

of the reformers

most

.exchange

of National Securities &
Research

i

of late

Kidder

program, "Your Money at Work."

to

Western

for

most people who talk about such
things
and one which is
fraught with difficulties the nature and
proportions of which have not even been

Europe, saddled with costs and prices that
wiped out much of the progress toward a better-balanced
world economy that had been
achieved by the devaluations

depart¬

of

funds

interviewed

Mr.

has

doesn't

all

great

a

Feabody's

H.

of

position

dreamed of by

expendi¬

Mr.

He

doing any
And it left

benefit.

for

highways, schools and
public buildings—also in foreign
aid
spending and in the extension
of.foregin credits.
-

without

temporarily poor came and went
lasting good to those it seemed to
its victims,
principally the countries

bringing Western scale of living to such peoples
of
helping them develop such an economic

rather

or

and industrial countries

vance

are

With King Merritt

private and parochial

(Special to The Financial Chronicle)

undemocratic, and that

state-controlled schools ad¬
effective participation in a

You, who have

Hughes
with

free society.

est in

BENICIA,

a

special inter¬

maintaining freedom of the

the

has

Calif.

—

become

Edward

t

C;

associated

King Merritt & Co., Inc. In

past he was cashier for C. E.

Abbett & Company.

36

The Commercial and Financial Chronicle

(2264)

Continued from first paqe
mi.

■

FfAflAYIllf1

1110

llv

A

been converted into an engine of
This, I think, is what
tious buying in many other areas, has happened as the Office of Ecotheir power to start a downward nomic Stabilization has undertaken
spiral of progressive unemploy- to supersede the process of collecment is one of the greatest threats tive bargaining. And the prospect
strikes in one industrial
lead to uncertainty and cau-

Since

/

_i

SltliatlAll

lIVvIlVIIIlw

t

MllWUftlvH
m

mam

IAlfl AT TAW

A Tin
(Mil

Today

area

(

,

mm

down

develop

out

of

show-

a

the wage issue or if and

on

when military spending is reduced
and the construction cycle moves

rearmament reduced to a plateau,

fair

bids

Congress
level

at the

lower the

to

these

both

of

to

items

time

game

h

t£at management

k

calculated risks.

t

t

one

several billions lower. I suspect

it

wi|,

Tomorrow

S

cets under way.
gets under wav

Elaborating

sure ma. xoae

national

r

imbedded

get

economy

.

our

_ng ^ ded(Je

with the wishes of all the parties
interest.
When,
nearly
16
months ago, a freeze was imposed,
the next day saw the control
agency shaping policy to thaw it
at

out wherever

important interests

when ..today,s ec0.

business

the

new,

policy

changed

to

sistence

apparently

pro

of

one

almost

ideological upheaval to

an

dictated

change them.
ervation

of

ores-

predominantly

a

vate system

business

of

that the

Drimust

we

faJ^or

deck'ive

DrosDerous

activitv

tr "of avoiding dep^Lstona^
cost, price, and

wage,

distribution of

or

of

a

to"

like

over.; against

set

productivity index
military program
The

each other the

the

and

Sf tZirnfvhVJ Se8™...

.■

,

hj

.

oase

■£'JZLtilrtZ
the
p cture.

*•'

economic

For the

capacity

productive

In

imputed

but

not

have

anyone in

as

bUyertutrf miT, weh.'cnh

out of the prospecexpendi-

growing

ture and of related industry

build-

the needs of civilian

mg vis-a-vis

standards of

As I

0f

present situation, it fura
model on which we

our

nishes

us

could

forward into

go

nomic

to

prepared

get

for

any

emer-

This

military

Although

in

business

pressure had its
the civilian area

acted

as

we never

public
though that condition was
and

either here

consumer

just around the cor-

or

During the two

ner.

years ot

ten-

owrstoulaLr'bf the" prosby tne nrosSS

was

be

the game.

sur6j

shall

we

fiscai

our

probably

maneuvers

in

overstimuiated

ifcf mobUizatkm ^nd
r^p
SoZrtfvP^nower ^

practically

ri

u n

ma

p

tipn!w

ted

magnitude

seriously
be

must

deficit of that

by itself to have a
inflationary effect.
It
however,

remembered,

that military spending will rise
rather rapidly in the second half
of this year-the low period for

receipts—whereas

Treasury

advances—past, present, and
effect

the

rn

•'efnob°th

of

latter

wage
pros-

instant issue for whatever the
strongest party
would
accept,
There has not been courageous

-e of

the. objective methods of

"

wan

hrcaif-

an

threaten

a

government

both

tr0,
and

the

and

jn_

enterprise economy.
Since
the war, we have had a prolonged
period of inflation, nourished by

the

of

of

II,

War

be-

are

market-place
and the institutions of our private
enterprise system.
The unsolved

and

debt.creating

subsidies
deficits superseded the ordi-

nary

the monetization of the

war

debt.

pr0blems, the dodged issues, and
the faulty ad1ustments of today

A substantial part of that inflation
-or rise of the general price level

and

-was

yesterday

the

becloud

hope

0f

continuing our somewhat artifieial prosperity for very long into
the future.
Some economic analysts appraise

"xhey^eem

gard' other
of minor

as

u

j

the

But

administered

over

making and collective

to

re-

controlled bv good fiscal

r

■

*

we

quite

must,

o/monete^managemen? 'If ^tha dently, settle down to the carryto fert ^11weSvTto'worry
of a larger military load than
^1 Shoufd take moderateJy wl have known in the past pat-

dlcta^:10Lr? to buyers' option, in some commodity

xu

A.t the

some time, the containment

S+ia+u

to offset advances

highly fabricated

uParabe^' maiiy
North goods.

•

aaded to the defeat of the
Koreans in

1950, and the Chinese

Volunteers

in

1951

all

on

top

areas tending
the areas of

in

we

leave this contempla-

tion of the present economic scene,

nomic

view

o£

tern of American life and at the
already same time assure the best stand-

tomorrow's

situation

I

have

eco-

ar0Used about the deficit res0Hurces' steadily and efficiently

issue so that it seems unlikely
that the satutory ceiling of $275
billion on the national debt will
be breached.
Even amid the
difficult conditions of a campaign
year> we have seen the president
Reflating the military's budget de-

used.

below

authorization, there would
to

seem

witfi

be

a

that,

prospect

some

Administration

new

and

further clarification of the offenthreat

power, we

budget

of

and

next

year.

defensive

our

might reach

a

balanced

Likewise

on

that ?ne otherf fa^or the, monetary side, the Treasury«ristanrp
(with
aiHi
cpvpthI
^
be ^en lnJ°_ account. This Federal Reserve accord of last
givps
murh pp^ipr
1S
lmPact of strikes, uncertain year and the Patman Subcommit^rn lo thp nrnhl Jm pfnu^bTer' magnitude, and du- tee hearings of this year seem to
taim to the problem of
calculated ration
If I
correct
my in- have restored
nnr

vears

ago

now

+

a

am

in

a

healthy independ-

'

,,

,

But

there

for the

terpretation that 1953 is

.

is

further

a

reason

checking of the military

dram, which has recently become

which

the

inflation

being
contained,
expect it to be a

a year in

potential

then
year

we

of

is

may

many

apparent. In setting the character

and perhaps

of their

ot course, means of handling industrial disputes are devised—in

goal of deterrent military
power and timing it for 1953, experts

m

armed

all three branches of the

services

misjudged—quite

pardonably-—some phases of latest

serious

ence of

that this will happen—in

a

cam-

action under

our

central

bank mechanism without
a

creating
danger of collapse in the gov-

ernment

strikes unless,

or.?1u{; ^ bave little faith

fh,,

in

rangoe °f

nrt.„

p

.

,

J/JZ

and

.....

has

whole matter

been

matic'tatensityfin the^teeTwage
Roger Putnam, administrator
Economic^ Stabilization

ihe

of

»

^were

S

oie

a

one'

fight

Assure yor th^dipute Tn

Lei

Lver

would

wl,at

to

UD

said

aHdress

»

it

beln

built

would

like

have

js »

j

t that tbat statement is

to
nnlv

pnrrppt

th

nnt

anri

in

the

he meant it. If he means that

sense

United

Steel

Workers

would

We can say>
somewhat
ab- not have gone to the limit of a
stractly, that this means a struc- strike to enforce their demand for
ture of
wages,
traditional
or a very large wage and fringe adequitable or functionally correct justment if the steel business had
in relation to each other so that been in a process of curtailing
they will "stay put"; a structure operations, he is probably right,
mands and the Congress further of prices which likewise reflects On the other hand, I suspect that
deflating the President's recom- relative costs, scarcities, or mere it is just because steel manage-

But
even

caj

bond market.
do

j

which

monetary

nomic difficulty.

causes

of

eco-

My fears about

tomorrow's economic situation

are

Paign year of all times.

between

and

structure

will

price

make

income

structure

the

business

process self-liquidating
able consumers to take

and
the

ment

saw

with

prosective market demand
distinct possibility of price

and

a

production catching up

lower profits,
and
capacity in the near

competition,
excess

some

en-

future

that

full-

mined

not

they
to

so

were

commit

deter-

themselves

scaled product promptly from the
market.

in perpetuity to this higher level

Concretely, it is quite impossible
to draw up a full scheme of such
relations. This is amply demonstrated by the tribulations of OPA

King Solomon has been praised
down through the ages for his
astute suggestion of recommending
awarding half the baby to each

and the WLB under conditions of

of two claimant mothers. This pro-

.

a

shooting

antics
the

of

war

OPS

twilight

out
of

situation and
and

days

These things

not

gjve exclusive or
dominant importance to fis-

ancj

relationship

a

aLWZln,fiPPP^ni BreZl ajpl

Hft

.

a

sive

Before

«nLoh»r»
,

were

hopefu!

«

n

evi-

.

only moderately so, with declines

win

wage mak-

personal guess would be that the mendations. With actual spend- conventions well enough so that
Now, the sheer weight of goods trend of prices would be up, but ing bkely to be held materially they will "stay put"; and, finally,
is
the market from sel-

J1™! a^

price

;•

swinging

e credit for the price lull of
ll3e Past >"ear ,as an achievement
?f thelr control activities. In tact,
however, it was much more an
indication that, in some way as
^explicable as the colors of
Z
J"*1® 1
«y F Z
Preccding
.g

ex-

necessary

stage,

non

» has been a habit of controllers

JigM weThis

that

qua

time

external control had to be

ercised

sine

all" partiesIirofmanagT
farmerS) and consumers_

when some internal restraint

came
or

inevitable.

for assuring continued
business relationships prosperity after rearmament goals
importance or as be- are accomplished. When we reach

considerations,

fh**Sf beCOme

and

of

prosperity

combination

World

f

a

permanently benefit.

can

we have
not had to do for a period of some

During

to

w/"c,n. w°ui? contrmute 10 a
checking of the wage-price spiral,

This is something that

years.

"ability

and to the promotion of monetary

profit

of thi! indkated Wcongress have at last ard of civilian living that isof our
belief that 'he councomof this
the
patible with the magnitude

pait

indii,

-Drnjrramc!

These

y0nd.

there

tensions for '53

creas;ng

a

be ^0rklng P°Pula"
by Price increases stimuiriil machinp
Hence
overhlown
lated..^y. rlsi"g labor c!and
hoth 5 hnil'dinff
of
j?erml^ted
stabilizing
buving
resulted
in
overcanacitv
"l"138. Whether this inflation^overstockit From PW f/y fof,ce P;.0y%s/abe less or more
10^1 through iqCi
there
real
J f
disinflationaiy foice of
fancier
inflationary
product.10n a n d consumei
thrnnch
" caidl0n remams
.b^
8
evtp r vhnd v

promised

ig52

fut«e P^Pects almost exclusively
would not expect a

really adopted
policy of full mobilization, the

a

end

face the eco-

facts of life instead ot try-

ing to beat
To

is,

sayyK^cf every

tericaily "ready6 to
request for funds.
counterpart

reason-

a

ably stable and continuing prospenty—if we would all behave

the military took the blackest view

probability of_ot er major
aggressions
They wanted

^

analyze the basic economics

Under
gener-

a

than

neces_

The Barometer Is Falling

shadow

fQ/ ^ ^

—

.

ourselves-that

Soviet

their

nently established by the Korean
episode.

living and population
growth. After the Korean surprise,

of the

™t

ahead. Tomorrow's economic situation is already a-borning.
employment and
8

^

fcon

" J>

llationary sellers ma
Obtained to be somewhatand that
after the war perma-

I>ointing out the dangers of infiative rate of rearmament

J?

ruinously competi-

less

" reformist desires, or a horse
trader's willingness to settle the

^ati^incen^
"V' m
which
coming events cast their shadow KsSrsSUneve'gnim^"
erating incentives.

other words, we are easing into a

real,

seemed

past two years, I

been about as loud

mestic

has had

one

little

pay

is

would

in-

consumer pur-

ratios that wU1 furnjsh thfi
sary

more

another,

truly believe in the

we

little

adamant

this and contra that,
by subjective considera-

rigid in character that it takes tions of whether

so

in maintaining

know when

nomic situation" will end and "to-

...

in

struct
tures and practices and attitudes

eve .... fjud considerab]e difficulty in try- lish

componentto;
M s

governmental

little fu t

a

Fair?

Be

It is easy enough, to

to me dim indeed, for

area seems

these price and income relations

Jecoenize

if±°„itS
movement
movement

Thursday, May 29, 1952

.

j

as
ready as it appears to be to
competition, That total was set at $85.4 billion
with this dangerous weapon
rather than being a warning of instead of $90, $95, or $100 billion
-n the presen(; delicately balanced
near-term collapse of the national that had been so glibly talked of
s^ate 0f the economy.
If we are
market.
Liquid savings accumu- last year. The $85 billion budget to w0rk out a
practical system of
lated during these years might be- included
practically $60
billion sustainecj fun employment under
come
a
very useful prop to the
for military and foreign aid ex£ree enterprise,
organized labor
consumer
market if widespread penditures. But with the hump of
will haye t0 exercjse self-restraint

strikes

.

to our hi£h employment situation, of extricating ourselves from the were inconvenienced. When old
marvel that organized labor is mess we have gotten into in this administrators were superseded by

A V«ftViivVv

healthful

accept

inflation.

.

WSB

since

have to

the

of

costs.

during

posal would not appear to most
people as a very practical solution

Korea,

if taken literally.

be worked

by the cut-and-try methods
free
enterprise
management

and of unions collectively bargaining in good faith. I have regarded it as unfortunate from the

mon

Putnam

practical solution
on

have

made

a

of his problem

these terms if he had held fast
the

to
to

But King Solo-

could

principle of
office

which his

stabilization
was

pledged,

That is to say, he could have made

based primarily on the mishan- start that those in power thought a settlement that gave something
dling of our private market rela- we could, at a time when we were reasonable to both parties. Steel
aggravate still further tionships, our wage
and
price not at war, do this stabilizing wages had lagged somewhat and
something th^t would make the the unwillingness or
inability of structure. Against improving pros- better through government con- the equalization formula "called for
Maginot Line obsolete. Now they consumers to
buy goods.
This pects in the fiscal and monetary trols than through many local and nine cents increase and could be
are
beginning to think it safe to would
normally lead to lower areas, 1952, behind its facade of voluntary adjustments.
stretched to 12, with a further

technological

could

not

development.

be

that

sure

They
they had

^rn from makmg complete
"Stretch-Out"
the
t+

fhi

mm,,,

pnrrent

Tnrnpri

Tide
,

o

Has

,

we

,,

,

do

have

sizable

but more particularly in
as food,
clothing, and
furnishings. At the same

such items

house

fhp

rovicinn

tho

miii+or

Thi

t>rp«ihart'c
i

f

.




.

January,

into

a

much

worse

is

putting

situation in

j

military "hardware."

Others
clence

in

have

had

the

more

abilitv

of

dfrection

conficentral

adjustment of paid holidays, and
shift differentials which would be

of industrial and commertohandlethese matters
in line with the practices of other
market relationships. Even But it has seemed to me that they industries. The steel industry algood intentions as to budget threw away whatever chance of leSes that it had offered 121A cents

terms

normally means stronger price balancing, the government
Under present conditions, its task made more difficult

"oinic significance however, this upward push would
amoi
tTf
? I?
effective in other areas
yflg
.j;0
e economy than consumer
hnlfi It in
g0.?.ds' name^y heavy industry and
get last

nf

superficial prosperity,
us

Jin?e> w°rk stoppages would con- cial
tribute to scarcities, and scarcity with

hard to overestimate trends.

nf
*«=cr

strikes,

will

armor prices,

lor
ooliath
to
making a Buck
Hogers sling-shot for David.

The

If

that

finds

if not

success

designed to keep
everybody happy rather than to
do a real stabilization job. In my

impossible so long as wages and
prices are out of control. Nor can
credit control arrest the wage and simple
price rise when the very mecha- named
nism of economic adjustment has

they had by writing rules

and regulations

philosophy,
a

one

controller has

control—not

a

who

is

a duty to
mission to comply

in the wage rate plus some adjustment in these other items.
On the other side of the picture,

steel prices

had

been

maintained

commendably restrained level
while other metals, rubber, and
at

a

various

other

commodities

had

•

Number 5120

Volume 175

.

.

.

The Commercial and Financial Chronicle

(2265)

skyrocketed

under

comparable

restraint
a

amendment would

pression.

permit $3.00 of
increase in the steel price and the
Stabilization

Agency at

seemed ready to grant

time

one

$4.50. Col¬

lective

bargaining needed to com¬
promise no more than perhaps a
nickel

the wage side or a half
the price side to produce

on

dollar

on

adjustment which would have

an

been

within

the

stability

range

booms rather than

on

Credit

such
string."

at

easing

times

inflation

during

reduce tne

public debt
long boom period. Hence,
or

a

I

come back to my basic proposi¬
tion, that voluntary acceptance of
price and wage relationships that

enable

But

when

neither

happy

about the terms

formula

''public"

injected by the

members

Stabilization

the

of

Wage

and

Board

now

A great volume of gov¬

powers.

communication

ernment

that

once

business

is

business

to

go

is

wholly
of

trade,

ultimate remedy for reces¬

the

to

demands

on

extensive

so

as

give color to the suggestion that

it may have been designed to force
this whole business into govern¬
ment hands.

even

on

party

based

Two

weeks

Court
oral

received

steel

the

ago,

briefs

argument

the

industry.

heard

and

the

on

Supreme
seizure

The

of

Court's

backed
in
every
detail by the sion, just as it would have been decision in that case and the sub¬
the best preventive.
President, the Vice-President, and
I suspect that many of you will sequent action of Congress if the
the Secretary of Labor was perseizure is not upheld will go far
agree
in principle with what I
iectly designed to open a new
to give us the cue as to whether
have been saying and still reply
round of wage increases, with all
tomorrow's economic situation will
that it does not seem realistic to
its inflationary consequences. Or,
be one in which management and
if resisted in steel and matched expect that patterns of human be¬ labor
have
the
opportunity to
havior, of business behavior, and
by comparable demands in other
hammer out their own contracts
of political behavior will change
industries which face a competi¬
fast enough to bring us by these and take responsibility for settling
tive
market
and
falling profits
without arresting
means
out of the difficult situa¬ disagreements
ahead, it is perfectly calculated
the process of production. Even if
tion which seems to be shaping
to creat an industrial impasse—
for 1953 or some year not much seizure is not upheld, we as a free
strikes, spiraling unemployment,
later. In honesty, 1 have to admit people might decide on Nov. 4 and
and
recession.
This
situation, that I
share that view.
And that other election days that we will
carrying into
1953,
or
revived
is why I said earlier that in tomor¬ no longer rely upon this system
after a breathing spell this fall, is
but will try to buy
row's
economic
prosperity at
situation, I saw
a
very real and
somewhat dis¬
trouble ahead both for economic the price of control.
quieting aspect of tommorrow's
The question of tomorrow's eco¬
prosperity and for the preserva¬
economic situation as I see it.
tion of the institutions which we nomic situation is not merely the

How

Will

We

Meet

Prospective

Difficulties?

have regarded
heritage.
The

a

Without wishing to qualify as
"gloomy Gus," I think we should

in

look

1952

have

patience,

economic

ing factors
developing

beaches"

which
for

1953.

be

to

appear

I

have

remedies

outlined

ance,

American

our

which

understanding
and

willingness to "sweat it out
while

the

made

Gas Transmission Stk.
A nation-wide investment bank¬

on
the high, rising, and stable
pattern of peacetime highrigid level of labor costs, a more level business worked out. But the
moderately
rising
and
perhaps prevailing mood of our people is
soon a declining scale of govern¬
not one of patience and tolerance.

expenditure,
propensity to spend
propensity to save
of

weakened

a

enhanced

or

the

on

part

on

cannot be ob¬
tapering off of
activity, and a tained in the market, they can be
of our ex¬ obtained through a friendly man
the
White
House
or
other
modernized produc¬ in

rising

productivity

panded and
tive plant. This
circumstances

combination

promises

competitive market and

of

part

merchants

to

a
a

of

friends

and

bring prices within

willingness of the

buying public.

Capitol Hill.

on

Economic
the

title

"Private Enterprise
Enterprise."
In this

Public

and
ad¬

dress, I pointed out that we had
always used government agencies
for

organizing

parts of

some

our

competitive situation
economic activities but that there
will raise questions of how much
were questions both of degree and
employers' efficiency of operation
of kind that really distinguish a
can
be raised,
how much their
private enterprise
system from
profit margins can be narrowed
one
that could accurately be la¬
after the extraordinarily high rate
Such

a

belled

of "plowing back"

capital during
recent
years.
It will require a
courageous interpretation of busi¬

enterprise, with its boasted
of risk-taking.
It will
call for a great deal of tolerance
of unwelcome
adjustments. The
ness

function

will

strain

be

intense

most

and

the

responsibility for leadership
greatest at the particular points
where
basic
industries
play
a
strategic role in our economy. If
unemployment
gets
started
in
these

areas,

market

of

it

undermines

secondary

the
producers,

distributors, etc.
have

I

sketched

may

be

"If

we

varied

the

under

into

goods can
be sold and under which jobs can

stand a very
.grave prospect that local spots of
•unemployment will snowball and
rspread contagiously into general
maintained,

possibility—which we can¬
not afford to ignore—if we are to
take steps to combat it—raises one
final question. Do we know how
a

recession

once

it really

and then institute
recovery measures?
There are a
good many economists, lay and

gets under

with

way,

imperfect

com¬

noses

soon

of

both

us

those

I

as¬

professional econ¬
inspired bureau¬
Though we have so¬

one

omist—not

an

crat—is No.

cialized

To

on

it is the purely personal

you

answer

going
to push

now

answer—and

my

are

of

some

in

economic

our

considerable

degree

and

though we have gone beyond
the facilitating role of government
into

the

extent

read

the

step

seems

to

and
me

socialism

of

not

as

to

taken

which,

literature

facts,

mark

activities

have

we

fateful

one

the

operative

as

I

observe

the

hall¬

system.

a

That is the nationalization

of

in¬

dustries.
"I

way

professional, who cherish the
thought that we can do so through
vigorous use of fiscal and mone¬
tary policies now understood. Per¬
sonally, I think the effectiveness
of monetary policy is largely as a




&

quite

aware

that

there

as

White, Weld & Co.

on May 27
shares of 5.25%
cumulative preferred stock, $100
par value, and 250,000 shares of

offered

100,000

well

as

in

much

in

as

Transmission
is

stock

the

they

minority.

are

And

very

I do

steps carry

down that road."

Today
the size

i

am

not

of that

so

sure

minority

Tennessee

Co.

The

the

per

Gas

preferred

priced at $100

and

per

share

at

$29.50

share.

stock

common

Owner

about

operator of

the

transportation ^and

pipe

a

Tennessee'Gas

sale of natural gas,

been

ernment

under

seizure

technical
for

more

gov¬

than

two years. The steel industry was
seized without the cloak of war

States

Under

such conditions, people
simply can't ignore their neigh¬
bors' actions.
They have to adopt
community rules and regulations
protecting the safety and welfare

expressed the view that it
should be the policy of the United
States to minister to the wants of

foreign

countries

engaged

in

certainly

are

wants,
able

but

to

without

their

of all of them.

It is much

being

quarrels.

Clark

(We

ministering to their
don't

we

stay

out

seem

their

of

to

likely that Mr-

more

right than

in

on

quar¬

C.

his

Farewell

unavoidable for the Euro¬

was

troversies.

But

he

added,

I

P.

think

Jr.

countries, with their diverse
interests, to avoid frequent con¬

CONRAD

in

Mr.

J.

Reuben

vites

and

enables

Sovereignty" does
nation in

pointing out

to

pursue

that much of

me

a

trip

from

our

Italy

to

not agree

him

an

Milan

to

after

the

o'clock

8

tainly
that

next

not

the

Washington's
advice
mighty good, it was only
five years after he gave

four

it

or

before

found

we

authorized

capacity

an

of

1,310,000
MCF. The company estimates that
the remaining costs of such ex¬
pansion

will

be

approximately
$45,000,000 which will be obtained
from

general

short-term
tional

funds,

operations,

loans and

bank

financing

as

yet

addi¬

undeter¬

mined. Proceeds from the current

financing will be applied to the
payment of a portion of the com¬
pany's
outstanding
short-term
notes

previously incurred for
pansion purposes.

ex¬

ship¬

our

ping alone, and because our coun¬
try simply had to trade with other
to

after

into

the

across

And

grow.

in

a

prohibit

to
of

a

trade

wouldn't

them

got into

fight with one
barring
in 1846 (which

Mr.

Clark

but

which

doesn't

its

secure

discuss,

like to

enable

did

Texas

Mexico

from

freedom

Mass.

Principal

customers

subsidiaries of The

are

Columbia

Gas System, Inc. and of Consoli¬
dated Natural Gas Company. De¬
liveries
of

also made to

are

other

a

number

utilities and to the
company's wholly-owned subsidi¬
ary, Northeastern Gas Transmis¬
gas

sion

Company which is currently
supplying natural gas to several

distributing
companies
in
New
England. For the 12 months ended
March
31, 1952, Tennessee Gas
over

400 million MCF of gas.

of
a

policies,

Spain's
last

announced the
W.
Courts,

Jr., partner in
the investment
banking firm of Courts & Co.,

to the

of the

board of di¬

company.

KANSAS CITY, Mo.—Alfred

Reed,

is

Inc.,

now

1012

with

the

conclusions

Waddell

A.
&

Baltimore Ave¬

nue.
_

.

;

i -i

reached

EDWARD

A. RUMELY

Executive Secretary, Committee
for

Constitutional
New

Several

York

Government,
City

members

of

Com¬

our

II. MURRAY-JACOBY

long

very

about

Then

to

Delray Beach, Florida

wisfct

with the

trade

their

carried

other

objection

J.

able
like

a

point where they sunk our ships

the

congratulate

publishing

the
able address of the Honor¬

very

one

to

to

"Chronicle"

our

of them objected to
thought was our right

we

free

and

of

some

one

row;

what

1914

Reuben

Clark,

Jr.

who,

myself,
the

had

on

high

privilege of
having served

carrying on this trade and, as we
thought, murdered the people on
those ships. And, in spite of our
best efforts, we were soon in that
war. World War II was largely a

under

the

Hoover

Ad¬

repetition of this.

he

It

to

seems

ington's

time

in

like
the

Wash¬

in

such

were

of

did

much

with

success

and

distinc¬

tion.

Particu¬

States

man

whose

a

Ambas¬

sador, and this

and

United

the

fix

ministration
as

that

transportation

communication
countries

that

me

larly pertinent
the

were

following
q u o

of his busi¬
and how this neighbor keeps

neighbor does is

are

any

what his fire precautions

or

But

in
trans¬
portation
and
communication
have had the effect of moving all
of those houses close together like
improvements

city block. Bad house¬

a

result in

a

disease

affects others. Or
out

in

the

others.

one

house

epidemic which
a

fire breaking

will

t

a

Murray-Jacoby

Col.

t ions

George
Washington—the forgotten man—
who
said:
"I
hope the United
by

States of America will be able to

doesn't affect him.

keeping or unsanitary conditions
in one house* in such a block can

(Special to The Financial Chronicle)

Julian

of

most

I

houses of

With Waddell & Reed

Co.

by Mr. Clark.

He doesn't think what his distant

Richard

Ruberoid

The

>

find-myself concurring with

which

her

end of it.

house

Atlanta, Ga.

I

because
Spain wasn't able to hold up her

ness

has

HERBERT ABRAHAM

President,

into

got

we

with

trouble

little

Corporation,
of

as

join (or annex) the United mittee read the
extremely inter¬
States),
we
got
along
pretty
esting statement of J.
Reuben
peaceably with the rest of the
Clark, Jr., and commented upon
world for some 85 years, and then,
it favorably.
largely because again we were
You are rendering a real service
trading with Cuba and the East
by bringing this to public atten¬
Indies and disagreed with some
tion.

the board of the IBM World Trade

election

far

against the United Na¬
tions, .but I go all the way, to
"get out of it."

house is in thinly settled country.

Watson, Chairman of

that

you
as

and

were

Courts Director
Thomas J.

Clark

goes

to

a

field,

he

of them about 1812. Then,

the Mexican affair

pleased to inform

am

years

good customers in Europe got into

Pitts-

near

I

fight and when Mr. Jeffer¬

a

S. Congressman from Idaho

I agree with Mr.

that, England and France got

Massachusetts

border

the

future
States.

order

few

seas

then

company's system, extends
Rio Grande Valley in
Texas, to a point near Charleston,
W. Va., and to the New Yorkthe

from

for

United

the

in

necessary

they wouldn't let

cause

didn't

The

and

HON JOHN T. WOOD
U.

fight a war with the Barbary
pirates in the Mediterranean be¬

we

ap¬

it

to

work,

capacity of
1,200,000 MCF to

present

While
seemed

either

present

opportunities

citizens

attempt

its

best

in

on

course

Conrad

P.

can¬

we

preserve

trip considerably

quicker.

son's

from

C.

cer¬

right

go

our

(possibly carrying atomic bombs)
make

errors

but he is

in New York. I under¬
stand that modern military planes
could

taken

rrect

co

these

a regu¬

he

should

be

now

breakfast

and

all

steps

which

lar scheduled passenger plane, had

in

the

thinks

ac¬

quaintance of mine, using

with

to

as

of

the

Recently,

States.

course

foreign
policy. I can¬

long stay "detached and distant."
When Washington gave his ad¬
vice, it was a six weeks' to two
United

the
our

in

present complications results from
the fact that our situation didn't

months'

some of

dangers in

"our

different course."
seems

service to the

a

present

to

us

Clark,
Dwindling

his article "Our

detached and distant situation in¬

with

proximately

t

Electric Company

Ad¬

pean

Transmission

is increasing daily
capacity of its system

But

am.

President, Iowa-Illinois Gas and.

Later

It

I

be

dress, Mr. Washington stated that
it

is

sometimes wonder.

rels.)

delivery

even

that, under conditions of
incipient depression, it might not
become a majority. The railroads

United

ton

nations

and

for

rectors
or

the fact

have

of

well

in other callings.

belief

my

not think that present
us

stock

common

Detroit who yearn and labor to
that end. There are no doubt peo¬

But

the

becoming entangled in the politics
of any foreign
country. Washing¬

Webster Securities Corporation

and

as

ment

headed jointly by Stone

group

Transmission sold and transported

am

people in Washington

are

ple of that persuasion in govern¬

This

stem

our

questions
sure

we

recession.

to

often

socialism?

some

which

under this mixed,

on

developments

prosperity," just as everyone
gripes about the weather or the
food on the boarding-house table.
But unless both parties "roll with
the punch" and make mutual con¬

be

and

my

terprise, is this socialism? Or

and

under

go

closed

binations of private and public en¬

expected to gripe about "profitless

cessions

I

words:

opportunistic American

functions

Businessmen under the circum¬
stances

"socialism."

remarks with these

ing

line

Three years ago> I addressed the
Club of Detroit under

highly
need on

manufacturers

the ability and

7

of insistence
by each
what it regards as its
"rights" and a considerable belief
one

group

that if these rights

consumers, the
industrial building

the

is

It

Dwindling Sovereignty"

against

morning

the
a

warns

shortly

Bankers Offer Tenn.

a

and

"Our

supper

ad¬

on

necessary

be

can

of

touched

ment

prosperity but also
preservation of freedom.

I

toler¬

presuppose

fundamentals,

justments

continuation of
the

of

sort

frankly at the
conjunction of somewhat disturb¬
very

as

Continued from page 3

handled by the pri¬

was

is
"pushing on a
vate telegraph is now handled by
Likewise, fiscal policy as a cure the communications departments
for recession, has lost much of its
of various government agencies,
potency by not being used to curb while
a
telegraphers' strike is

of both wage and price structures.

the

as

business stimulant in time of de¬

scarcity conditions. The Capehart

37

spread
■

,

;

to
:

keep
rinth

disengaged
of

wars"
set
us

"Europe has a
interests which to

again

of primary

have

none

relation.

gaged

from the laby¬
politics and

European

and

a

very

remote

she

must

be

or

Hence

frequent

in

en¬

controversies,

the causes of which are essentially

foreign

to

our

concerns.

Hence,

therefore, it must be unwise in us

Continued

on

page

38

38

The Commercial and Financial Chronicle

(2266)

Continued,

cannot

jrom page 37

get

theirs

"Oui Dwindling
ties in the ordinary
her

politics

binations

friendships

again,

the ordinary com-

or

collisions

and

important

and

political

between

distinction
commercial

"The

ties:

great

as

into

remote-

an even

that

to

that

is

must

we

that an eventual
violent swing to the left would be
the natural historic consequence.

them

from

to quote
statement

Mac-

Douglas

time

the

at

of

India,

in

"In the evolu-,

General:

civilization, if it is to sur-

tion of

vive, all

nomic

I

point

a

assasination

the

to

me

known

made

Gandhi's
Said

to

up

permit

General

Arthur

in

is,

lead

little

which

regard

possible."

to

a

in

us

never

little political con-

as

as

Now

cannot fail eventu-

men

system

fundamentally not only

is

issues

contains within itself
of self-destruction."

but

wrong

the germs

Mexican one at the Madero level,

Communism

remember

ominous

have been
gigantic world
limited war now, and a
third
world
war
an
possibility.
With
our

enormous

and justly earned

generation

single

in

involved

in a
potential
wars,

we

two

eco-

nomic power we

should have been

able

great

to

w|eld

corrective

without the necessity of
stepping outside the framework of

power

World War II

out

men

tradition.

cherished

most

we

pulled 10 million

their

of

In

offices, work-

shops and farms to beat down the

SSSftJ? S "SS
losing one mil on

reduction

.nough

monstrosity.

fundamental

the

given

If

it must,

rope

of

because
of

laws

eco-

fan fiat on its face. So
giVe it a chance to do so.
gu^. ^ wui never happen if we
permit ourselves to get sucked
jnf0 {-he quicksand of excessive
European or Asiatic involvements,
It»s all very nice to talk about
aomiCS|

collective

security, but
Churchill once put it:

"There

is

mucb collective security in a
fiock of sheep on the way to the

no{.

butcher "

Fortunately, there is
Ex-President

a way out,

Hoover

in

his

the New

to

published
in
August,
1922.
Mr.
Clark, who is a member
Therein I suggested the immediate 0f the church to which I
belong,
stabilization of the German mark, jS also a friend of mine. I was
with the warning that if we failed so
impressed with
the
speech
would

we

fronted with

a

be

vast army

con-

of malwhich

contents in Central Europe
become

would

dealt

with

tariff which

in

economic

please

the

of

excesses

the

creating dangerthe free flow of

was

upsets

ous

gigantic threat,

a

balances,
etc.
Now
from the enclosed

note

when

I first

it

people

in

various

it

is

one

and

the toboggan slide in earnest
during 1923 at the end of which

the
it

all

publications.
the

of

situation

speeches

could

and

the

than

better

Mr.

think

this

on

one

no

I

finest

been made

the

over

it printed

seen

sub-

point

up

reasons

for

Clark,

which

with

menace

on

the

W.

GASSER

President, Gary National Bank,
Gary, Ind.
I

we

have

read

Mr.

am

isolationist

an

Loan

■/,

■Or'^.1 'A

till

my

urgent suggestion to do

so,

It

took

disastrous
into

a

17

for

years

subrosa

and
the

to jell
explosion,

and another additional two years,
at the Atlantic Charter Confer¬
ence, to acknowledge by implica¬
tion just what the subrosa forces

which

caused

been. The

World

Bretton

War

II

For

just

American

as

the

dollar

advent

Of

one

equalling 425,-

000,000 Chinese dollars

was at the
bottom of the Chinese Communist

revolution—some of

our

retroae-

as

con¬

trading
na-

believe

in

enough

the

American

shores

and

by

the same token I think it is only
-

American

dollar

'Communism

of

the

the




cause

we

one

of

right", in

990

square

Worth

coun-'

member

seven

the

Nations

population

is

about

of the

State

of Iowa.

to

their

do

shores.

tell. Europe

and

not

send

Why
Asia

armies

should

the

of

sixty member
Nations have a population ranging
from 140,000 to 8,000,000.
this:

is

principle
tr

of
1 i

ty
by
George Wash¬
a

advocated

ington

in

his

Farewell

Address.

However,
fear that
turn
p r

i

the

to

i

n c

I

re¬

a

1

p

framed

es

by

193

with

million

population'

a

has

three

votes

Theodore Rokahr

Mr.

Clark

calls

"the

good sense and inspiration Of
founding fathers" is not as

our

imminent

not enough look

were

Russia

Iowa

U.

S.

and

as

cause

Mr.

said

as

in the

I

would

hope,

May

17

be¬

Dennis

Lawrence

of the

issue

"Appeal to Reason" (published at
This is the" Becket, Mass.), "With a crazy for¬

vote.

one

San Francisco Follies!

Note:

Gross'

reads

The text

dated

report,

Congress-;
Jan. 2, 1952,
of

follows:

as

"As

start

we

and

new year,

a

session of Congress, we

new

a

win.

prob¬

This is the issue to be faced

squarely and courageously before
late.

too

true

every

American

is

something

there

feel

with

United

the

On

States

On

a

.

how

of

way

we

are

Take

lose,

you

to win in such

,

"The

of

core

our

trouble is the

1944,

what

at

This
in

Dumbarton

was

of

sentatives

the

picture,

there

an

weapons

Mr. Clark's article is the best I

you

States

States,

forgotten

that

"In

and

the lethal
enemies because,

of

our

to

this

monstrosity

that

American

lives,

addition

Charter

effective

became

consists
that

Security

The

Council.

Council

of

the

originally

Oaks,

same

met

on

of Representatives

House

1951. and

which
the

on

on Sept.
referred to the

was

judiciary:

•

interna¬

"Mr. Speaker,

Liberty

I-fully realize the

importance of the preservation of
our civil rights under the Consti¬
tution and the Bill of Rights. I
make

to

want

dissi-.
rights will
natural, I
have,

be nullified, arid
therefore,
introduced

House Joint Resolution 325.

amendment to the

posed

these

that

sure

never

a pro¬

Consti¬
which

tution of the United States
reads
"

follows:

as

'Treaties

made

under the

au¬

thority of the United States and
international agreements entered
States is close to going down the
into by the Department of State
drain, with the spider-web banner or
by the President shall be void
of the U. N. internationalists-forto the extent that they abrogate
a-profit supplanting the Stars and or interfere with
any of the rights

except

added.

Stripes.

at

"Uncle

Sam—The

that
v

to become paramount to all exist¬

ing governments.
"The

/

Sell Out"

population

Chump"

*

are

60 nations in

U.

Nicaragua, supported

us.

Britain

one

vote,

ex¬

rigths and all other

rights
this

guaranteed to citizens of
Nation that would be pro¬

tected

by

,

ratification

amendment

of

in

proposed

the

House

Joint Resolution 325 from nullifi¬
cation

by

tional

any

treaty

or

interna¬

agreement.

"The first line of defense for the

United

States

in

the

struggle

in

which we are now engaged, to
France, two. of the nations to
meet the aggression of Soviet com¬
which American taxpayers have*
been most generous, led in the munism, is hot only the military
might, of our weapons of destruc¬
voting against us.
artch

St. Paul, Minn,
I

"Each Nation regardless of size

guaranteed
to
citizens of the
United States by the Constitution.'
"It is these

"Although there

has representation

of five members.

Or

ad¬

Representatives

"The Constitution of the United

Security

or

the

in

17,

is

in

Oct. 24, 1945, upon ratification of
five permanent members of the

was

McDonough's

the House of

18, 1952, along with the text cf
H. J. Resolution 325 which he introduced

Price of

destroy

pating

60 nations.

France

Congressman

in

Feb.

"Eternal Vigilance Is the

our

are

Internationalists,,
resources and money, we are im¬
Washington, was.
porting to America economic and,
adopted at San Francisco,
political
formulas
from
abroad
April 25 to June 26, 1945, and the
Charter was drawn up. The-orig¬ despite the fact that in the lands:
of
their
origin these formulas
inal parties consisted of 50 nations,
have failed completely.
'
and its membership now includes
"The

dress

allowed

not

Korea

tional

the

to

of

text

Committee

parasitic organization of for¬
eigners will not agree to it?

"This scheme to sell the United

manipulated

;♦ Gordon l. Mcdonough

organi¬

this

Russia and China.

Britain,

behavior

mass

.

is- U. S. Congressman from California

have sold out in this

we

bomb

to

by repre¬

United

we

"Have

known

there concocted

be expected that

and

have read on chronological history
have, the* of U. S. treaties and their effect
reason why
billions of American on our constitutional
rights.
dollars are being poured into for-'
I have long been interested }n
eign countries in an effort to this subject, and am
enclosing a
bribe and buy votes in this thing
copy of my remarks and my H. J.
called the U. N.
How long do
Res. 325 which may interest you.*
you think we can continue to pay
•Editor's Note: We reproduce herewith
the price?
"With this

forces in

as
Oaks Conference.
was

history

fantastic international deal.

international humbug was bred

It

it is to

since

on

out¬
your-

zation.

to whom

United Nations Organization.

gone

human

population patterns will become crazier and
outnumbered 7 to 1/ crazier by the day." <

are

we

has

beginning of

(war),

carrying the burden of furnishing
"Of
far
greater
importance,.
and blood to regulateAmerican boys must do practi¬
the
world.
Qur common sensed
cally alt the fighting and dying on
tells us that the American peopleorders of this bunch of foreigners
have been framed.

7,

what

stop

a.>

voting "basis
numbered 59
to
i.

no

nationalism is the root of this na¬
tion's domestic and foreign

basis,

choice

must

face the fact that Truman's inter¬

it's

win"

can't

"It is obvious the United States- individual

Editor's

man

s.

"U.

cannot
*

to

the

•

weekly Legislative Re¬

population has
we cepting Russia.

that they

na¬

ours

what

"Thirty

against
"In order that you may under¬
"That's how we rate when the
cheap stand clearly and without any
roll is called!"
labor.
misunderstanding, I call to your
I am a
great believer in the attention the following recorded
JULIAN B. BAIRD
old Monroe Doctrine. I would not facts:
permit Europe or Asia to set foot
President, First National Bank/
"Each Nation regardless of size
on

^eset this

Clark's

labor

fair that

one

of
and

Third Iowa Congres¬

our

foreign

V™ r^°^tS,rtW'thS,tandmg—so was the
advent of
equalling

consists
Mitchell

of

tariffs to pro¬

W. W. Gasser

ills which

the

tion of

sional

half

a

Mr.

Clark/s stature and
experience shares my long held
belief that the only
remedy for

n e u

ports*.

Dumbarton

trillion

marks

of my

one

tect American

Reciprocal

zation of these belated convictions.

nation,
ties, in

"As if this

nection, I believe you will be in¬
in the enclosed copy of

crowd

high

had

tariff act represented the formali¬

area,

miles.

terested

cerned; how¬
ever, I believe

do

Woods Agree¬

ments of 1944 and the

land

of

man

;

refreshing to know that

comparison: in a
return
to
Luxemburg, a member the traditional

N., the United States con^
t i o ns. I be¬
"There is a
myriad of other
tributes nearly half or approxi¬
lieve in buy¬ subdivisions such as the Economic
mately $25,000,000 for its support.
ing from them and Social Council, the Trustee¬
Recently, the United States asked
and
paying ship Council, the International
that its
annual cash outlay for
cash and ex¬ Court of ^Justice, etc.
support of the organization be re¬
pecting the
"In
short the United Nations
duced- $l-,5O0v0OOv; But when the
same
thing Organization is virtually a com¬
vote was taken, only one country,
from them.
I
plete World Government tending

forces

military world

the United States.

"Here is another

the

after the child had fallen into the

well.

is

with other

the fall of 1924, or two years after

much

as

It is

article- sell-out perpetrated by Alger Hiss' eign policy, a crazy state of the
other
assorted
characters, law in which a state of war is
carefully.
Meanwhile, in skim¬ and
pronounced
a
state
of
ming over it, I can see that many who, with Truman's blessing, rep-, legally
of our views coincide. In that con¬ resented the United States at the peace, and a crazy global crusade

in

In this regard bear in mind
that we did not stabilize the mark
Dawes

far

so

war

level.

situation via the

Clark's article

a?d I think I quite agree with
his thinking,

economic

world

have four times

power as

then

year a

W.

voting

at

GROSS

R.

the

from

ject

eventually had to come to grips
On
the military level since we
failed to understand the potential

with the con¬
Mr. Clark.

copies

table that the German mark went

malcontents"

I

Washington, D. C., Aug. 21 to Oct.

country who have

together have slightly more
million population yet

two

same

that many of my friends
could read it. I have since received
so

has

trillion marks equalled one
American dollar; another way of
saving that all annuities, savings
and pensions were wiped out and
thus created that "vast army of

that I had

inserted in the Congressional ReCord

that

on

read it

four

the money

as

intervene

by

Mr.

read

will

I

wrong

U. S. Senator from Utah

•

The

war.

taxes.

U. S. Congressman from

must

HON. ARTHUR V. WATKINS

my page long
York "Times"

photostat copy of

letter

population.

the four

Trust

&

compared with 152 million for the

"Today,

has shown us the way.

H.

HON.

lems.
and

reached

clusions

Winston

as

and

debt

of

think I auite agree

teerTavoi<ted

through a few astute
moves in
the early twenties. In
this connection
I
am
enclosing

undeclared

an

theodore rokahr

a

District, have about the
land area.
Yet .this little
fought World War I to make- country of
Luxembourg, no larger
the world safe for democracy yet
than Mitchell and Worth counties,
we
have less
democracy today
has as big a voice in the U. N..
than
we
had
then. We fought
as does
the entire United States!
World War II to end all wars but
"The
average
population
of
we are more deeply entangled in'
from

home

far back

as

(N.

thoughts before us, 1919
that
in
one ec0n0mic

these

us

I said

as

Y. "Times" April,
"Lenin's Education") is an

1919

million

Thursday, May 29, 1952

.

President, First Bank

"Iceland, Luxemburg,-' Panama,

We

wishful thinking amateurs; history just does not work that way.
as

With

that which we cannot afford
give. I would bring our boys

It will never be possible to convert our 800 million Communist
opponents into Jeffersonian democrats in three easy lessons; it
might take three generations to foreign affairs, today than we have'
ever
been.
I
am
for
keeping
do it. It might have been nice to
America strong and am for free
stabilize the Russian revolution
enterprise, constitutional govern-'
at the Kerensky level, or the
ment, obedience of laws, and a

ally to adopt his (Gandhi's) belief or the Cuban one at the Cespedes
that the process of mass applica-' l®v.el, or the Chinese at Dr. Hu
tion of force to resolve contentious Shi's
level. But that s for the

I

would stop giving

tary strength. I

which would so weaken our eco-

wish to make,

to

all over the
keep strong mili¬

I would

strength we also weaken our mili¬

extending

for

nations

nection

a

nation of

a

tarily and economically at home.
If
we
destroy
our
economic

to

with

our

think

.

Company of Utica, N. Y.

Costa Rica each have less than

scattered

people

The United

152,060,000 population

vote.

one

than

commercial relations, to have

let

is fair.

it

has

do

away

foreign
our

I

do.

cannot

they

we

ulation, has,one. vote.
States with:

taken

permit ourselves to get invclved
into
an
extensive
war

conduct

of

thing

people can guarantee
sovereignty of two billion

world.

answer

very

to

go

we

150 million

to permit our-

selves to get

and
rule

the

Neither do I

the |y similar position. The obvious

to

as

yet

the

course, never ever

And

enmities."

or

think

The obvious lesson for us is, of

her

of

them

not

known

sometimes

Germany,
Nazism.

implicate ourselves by artificial
vicissitudes of

to

and

do

and

tell

Sovereignty"

military foothold on

a

continent

our

.

disagree with Mr. Clark's
up

ant

but

one,

"Iceland, with only 140?000 pop¬ day and

age.

is

a

not

con?

sweet and please
realistic

Our first line of defense

the

erty

in

this

is

protection of individual lib¬
which insures the personal

freedom

of

guaranteed

elusions. The kind of America he

conjures

tion.

the basic concept of freedom upon
which our Nation was established,

every

under

American

the

as

Constitu¬

tion.

"Too many of us live under the

false and

erroneous

Constitution
This is the

is

belief that the

self-executing.
dangerous belief that

Volume 175

Number 5120

.

.

The Commercial

.

and Financial

Chronicle

(2267)
Communist

our

like

to

us

alert

and

alive

or

tov

under

or

judges
"I

guaranteed

Constitution,

whether
tempts originate inside

these

at¬
outside

^Let

law

simple

ques¬

foreign

any

the

nation

recognize
treaty
land

the

the

as

of

terms

look

in

Constitution

laws

or

of

a

mit
1

any

contents
2

of

of

the

to

article

"I

further

explain

the laws of Congress

law

supreme

they shall

of

be

made

this

when

made

in pursuance

under

too

plan

But

the

unusual

also

aware

few

that

"Our

.

and

treaty is the supreme law of the

land

peti¬

to

against

us

fine

excessive

or

punishment
of

the

American
the

joy because of it

unless

Constitution.

and

fact

people

United

States

Constitution must be protected or
the liberties and freedoms we en¬

point,

land

bail

am

that

not the

are

the

thereof—of the
a

assembly

or

realize

Constitution.
"To

our

for crimes committed.

VI, paragraph
United States

present

guarantees

freedoms, of the
speech, of religion, of
jury, of the right to

cruel

or

is the

you

they

as

and

excessive

just stated

reverence

grievances, and protect

did not know this, per¬
to inform you that what

me

have

I

tion the government for redress of

you

have

Nation.

great

basic

the original handwrit¬

upon

peaceable

State?
"If

Con¬

States

fundamental

silent

press,
of
trial
by

notwithstanding anything in

the

in

liberties

to

such

the

this

great

United

ten document that

law of the

supreme

of
every

takes

citizen

the

to

ever made

to

release

be lost.
is

the

assure

the

best

freedom

creative

pow¬

thority of the United States—that
is, when negotiated by the Presi¬

freedoms.

dent and approved by the Senate.

sible the American way of life.
They stimulated more new enter¬
prise and invention and gave us

liberty,

The people

having expressed their
national will in a treaty, the will
of ra State respecting the subject

Lone

"

of

Wolf

It

is well

life,

made

pos¬

of

treaty

a

'

/

in history

have enjoyed."

case

Herewith

repeal

approval
law pre¬

a

IN

"The framers of the Constitution

good and sufficient

a

to make the terms of

sequently

States

involved

plex

in

would

the

have

Sept.

Con¬

17,

the

become

ever

and

many

referred

was

to

the

com¬

Proposing

an

Constitution

of

and the freedom and

liberty guar¬

the United States Con¬
Bill of Rights.

our

of

realize

us

portance of this
Constitution.

the

im¬

provision of the

Too

Americans

few

realize that within

this

paragraph there exists

one

short

threat to

a

their civil

rights, to their individ¬
liberty.
time the United

ual

......

'fAt the present

States

under

the foreign
policy
by the present adminis¬

pursued

has

tration

other

the

become

nations

defense

a

and

system

coordinated

allied

with

relative

effort

of

all

agreement! and treaty..

these

that

circumstances
under

contracts,

the

"

to

the

the

United

effect

of

States

treaties

Resolved

House

of

it

is

Under

possible

many

compacts,

conventions,

protocols,

accords,

by
the Senate
and
Representatives of the

of

United States of America in Con¬

assembled:' (two-thirds

gress

House

each

concurring

of

therein),

That the following article is pro¬
as

amendment

an

the

to

which shall be valid to all intents
and purposes as part of the Con¬
stitution when ratified by the leg¬

islatures

of

three-fourths

of

the

"Article—

"Section 1.- Treaties made under
the authority of the United States
and international agreements en¬
tered

into

State
be

or

void

by

by
to

the

the

Department of

President

shall

thgyextent that they

abrogate or interfere with any of
the rights
guaranteed to citizens
-

_

"Section 2. This article shall be

provision within such agree¬
ments
impinges upon the civil inoperative

rights of the people of the United
guaranteed by the Consti¬

tution.

"In

addition

tional

to

the

contracts,

agreements

and

that

treaties,
interna¬
we

already entered, into, there

are

the date of

will be called upon to approve

reject.

fully

me

-

-

repeat so that you will

understand.

Article




it

shall

have

its submission.."

the

expanded

United

into

Nations

fields

=

which

may be

basis for

some

fundamental

rights

to

inconsistent

national

own

The

in

VI

of

courts

that

the

with

the

ers

aliens is,
of

in

that

in

opment

week's

This

potentials

our

market

eliminated

of
the
activities. It is

ob¬

which

from

United

was

a

There

were

the

Nations'

its aliens in

use

prop¬
be of immense

could

Russia

void

this

in

the

event

is

cause

this

dominate

spread

today
the

weeks

some

it

the

to

seems

entire

to

market.

Its presence,

however, isn't so
prominent as to frighten holders

out.

In fact few influences

two

our

are

all

seeking

extract

benefits

without

nf
or

time

to

of

leader

outside

in

of

U. S.

Clark,
the

article

Jr.

by

effectively

difficulties

fronting

us,

Mr.

and

J.

points

dangers

sound

up

course

of

for

*

it is saying that
danger ahead. The
and the why will have

there

now

is

what

J™?
time

ant

coincide

Chronicle.

with

They

those

are

of the
presented at

those of the author only.]
_

BlHTOIISjlS Autlllt£
mm

■

■

«

lu3ClllllG UGuSa UllGrGfi
£jrs^. pukhc debt
on

behalf

financing
Burroughs Adding

of

of

25-year

sinking

from

them¬

In simple language, it works basis of about 3.30%.
something like this: Stock "A"
Burroughs, one of the leading
picks up activity on the tape

affairs

Communist

front

volume.

companying

Some

—m
0f the proceeds for the retiremen

of short-term bank indebtednes

$8,000,000 for

construction ani
equipment of two new building
including

for

one

search facilities.

expanded

The

rc

balance wil

to

tional

actions

our

have

only

terests

to

their

at

a

which

grouo

selfish

own

I believe

in¬

heart.
means

should be completely

we

in

attitude

our

this

country

the

guardian

in

and

of

the

to¬

voice

our

with

behest

organization

is

or

only

earnings,
some

upped

other

cor-

one

of

split is always
point or more.

for

good

a

stock

around

now

59-60 and has attained

mg

to

note,

Americans

do

not

aren't

understand

this fact

a

~

not

share

our

idealistic

dle
us

Eastern
apoear

petuate
tives

the

have b^en

nosition in Mid¬

affairs

as

the

of

a

we

concepts

which

makes

conspirators to

imperialistic

leading

per¬

objec¬

European

countries.

own

that

from

the

threat

sovereignty it
the

United

aooears

Nations

to
to
is

our

me

the

among

sion

It is interesthowever,

that

going to sell out at 60

,

debentures,

,,

,

i

Suddenly the stock
60 in volume and

particularly

insurance companies, pen¬

funds

and

other

investing

debentures

for

subject to
sinking fund

are

a

scheduled to retire

a

minimum of

semi- $835,000 of the issue annually from

do

nor

enterprise

the offering of the Bui
roughs

redemption

is

respectability.

industrial

is resulting in widespread inter-

The
/

The

of the public "buying
If for no other reason, we most
just can't afford it. Furthermore came in around 58-59. Obvi¬
than this, our ideals are not neces¬
ously such recent buyers
sarily shared by the rest of the
Many

established

institutions.

many.

world.

PXording

to the underwrite-,
the scarcity of obligations of well

iustfv not

justly not onlv current nrices
only current Prices
but higher prices as well.
A

itself

providing
the

at

dividends

behavior

globe

of

funds

international

an

where

make

human

responsibility

armies
of

of

part

every

the

should

higher

porate development that may

None of what I have said

Apart
way

action.

Right

*

public buying gets it to 55 or be added to working capital am
60. Usually there's some news be available for general corporal
(plus rumors) of either sensa-

con¬

which should be most

helpful in preparing the
a

Reuben

*

we can
accomplish all of the ob¬
jectives this implies without giv¬
ing up the ultimate decision as

"euchred" into

Congressman from Tennessee

The

market sets for itself,

tions bear interest of 3%%. They
were
priced at 101.27,
a
yield

...

in

international

the

propa-

publicity
campaigns. To recognize thehidden
meanings is a task the

damage is so great fund debentures, through a napointing to it is almost tion-wide banking group headed
completely academic.
by Lehman Brothers. The obliga-

return From a lethargic position of
anything which is of any major between 40
to 50, it calls atsignificance to our own advantage.
tention to itself by pushing
It seems to me,
further, that if
thrnimh thp <50 figure
we are
willing to accept the role tnrougn the du ngure with acwith ac-

giving

and

of

part

$25,000,000

the

1

wherein

to

means

country

become
end
end

is

They Machine Co. in its 66 years of
prominent at the tail business was undertaken yestera
cvcIp and
a
cycle and hv that day by the sale of an lssue of
by that

that the United

"club"

of the other members

selves

then

ganda

into here. Manu¬

news

know, an that
Congress

as you

me

a

and

of

potential.

to

seems

ways

and

oils

no-

that may affect the main
trend of prices are prominent
this country
at the start of a move.

acquire strategic seacoast

to

It

rails

rec¬

to wait another day.
first

was

entirely conceiv¬
example, that Russia

for

to

the

in

involved that

so

tricate to go

=

^

pattern

ago.

an

inter¬

safeguards

scope

able,

of

ticed

laws

national

own

and
be

Nations'

state's

judgment,

my

on

ognizing its meaning is too in¬

locked^ m.

our

California

United

vitiated

be based

fundamental economic devel¬

minor flurries in isolated

some

philosophy.

decision

on

Some of this is

which may

news

Whyte

lishmg a new up trend than
they faded and left new buy-

Congress is
sovereign rights

of

have
spells danger.
explosion, if, as and

other factors.

the week before.

nation to armed ventures without
the approval of our
is

and you

condition that

The

repetition of the market for

coalition

a

believe in certain

human

delegation

on small volume recedes

under

when, frequently depends

purpose of resisting
issues but no sooner did
they
aggression, but to give such a
start showing signs of estabbody the power to commit this

which

accom-

Multiply such performance

By WALTER WHYTE

Last

unite for the

a

to

factured

beyond anything that was
originally
contemplated.
There
way

and second because

HON. CARROLL REECE

agreements,

"Let

believe

are

repeated,

of

concept

my

Says—

I

that

is

1Mf

Richard Wagner

Fur-

thermore,
has

then,

council

same

they because there would be an
been
ratified/^ an amendment understand that we are looked actual loss after taxes and
to the Constitution by the
legis¬
upon
with
growing suspicion, commissions.
latures
of
thrye-fourths of the particularly by the Middle East¬
several States:y%ithin seven years
❖
#
ern nations, first because
they do
from

al¬

many

or

unless

have

additional interna¬
treaties, and
compacts, now under considera¬
tion by the United Nations, which
ready

tional

we

,

world
affairs, but it does
imnly that I do not believe that

1

some

compacts,

T>.

ward

pacts, covenants, agree¬
ments, understandings, and other of
the United %tates by the Con¬
methods of negotiation with for¬
stitution.eign countries in recent years,

States

nation.

isolationistic

several States:

to

Walter

of

determi-

-

,

posed

Constitution of the United States,

is building up
which involves

these nations through internation¬
al

right

self

It

amendment to the

sitting at the

limit

our

or
This

was

spectacle

Markets

defi¬

nitely

Nations

party to in recent and international agreements
upon
years
under the United Nations, the civil
rights of citizens of the
which threatens our civil rights
United States.

"Too few

which

Judiciary.

JOINT RESOLUTION

Nations

ridiculous

Tomorrow's

ions

s

active hostilities between

Committee

United

The

a

McDonough introduced the nations. There is,
following joint resolution; which active effort to
on

pattern

60

underneath.

by the market

with

i

p,r o v

to

become

anteed by

drawn

erties which

1951

our

was

could
OF

nation

very

the

charter

to around

slightly

Americanism.

Mr.

compacts, and in¬
agreements which we

stitution and

think

value

treaties,

ternational

of

a

responsibility to all citizens to
uphold. They did not envision the
United

THE HOUSE

reason

of honor and

matter

a

text

REPRESENTATIVES

treaty the
law of the land and con¬

supreme

the

H. J. RES. 325

viously passed by the Congress.
had

11

should

McDonough's resolution:

gressman

the

is

the

repugnant

the

jectives

*

the

60.
It is almost a
Russia, the nation uncetaintv that a lot of Inn^ arp
doubtedly responsible for over
S/?1 ™gS
100,000 American casualties, is locked in around the 60 price.
is

Na¬

indication

Text oFResoIution

from

tions, but I do.

ference

of

act

an

other people

any

misrepre-

gross

table with

by

-

that

can

in

United

b^bef'coming f .«*
11 ls back

propaganda, lying

and

sw aasasus r?by T vo1u?S ■»
stock Soes UP to around 61 and
of

member¬

our

sentation

when

generally
popular to
disapprove of
ship

form of

formed.

not

with respect to ownership of land

that in

between

means

is

civil, religious, and personal lives

a treaty, each being
equally the supreme law of the
land, ; the one last in date must

"This

it

(187

Congress and

prevail.'

:

realize

that

higher standard

a

position.

the

Mr.

charter

,

settled

conflict

I

by

beyond his

go

of
living, better housing, more
food, and greater freedom in our

Hitchcock

v.

553, 1903):

a

country

general

expressed

would

ruled

superior will.

"The Supreme Court has

U. S.

this

of

guarantees

property

views

but I

most

than

must conform to the

—

in

Its

and

the

in

invectives,

with

agree

of nations who

men/It guarantees all the

of

ers

au¬

may

Constitution

thoroughly

Clark

that

-

I

be

thousands upon thousands of

stand

law of the land and

supreme

shall

come to the Congressional
Library here in Washington and

becomes

that the judges in every State
the United States are bound

State

a'good' pa/of "the

President,
Chicago Corporation

The

the

and

people

treaty between the United States

and

in

of

seen

ask you a

me

land

confident

stitution,

tion. Do you know that the terms of
a

the

every

am

pride

Government.

our

in

American

States

or

of

bound by its provisions.

liberties,

United

law

preme

33

RICHARD WAGNER

con¬

tained in it, shall become the su¬

attempts
interfere

or

privileges,
the

a,treaty, and every provision

This

always/be

any

freedoms

rights,
us

to

abrogate,

the

the Constitution clearly states that

Eternal vigil¬

must

we

abolish,

with

would

price of liberty.

that

means

to

fall into.

is the

ance

enemies

crosses

df/t'/1 prices'begin TlOlM
and

optional

redemption

prices

at 104.25.

Addresses Williston Staff
Sir Louis

Beale,

Q.U.M.G.,

Wed-

eustomWsM%esjs,anddstTffSof j't
Williston & Co., on Canada and itr

extraordinary developments in oil,
gas,
ore.

m0S£

gold, cobalt, nickel and iron
Sir

Louis

Gf

hjs

Beale, who spent

life

in

the

British

buyers Foreign Service, lived in Canada
who've been waiting are elec- for many years.
trified
and
jump in, doing
w;, m i,
& c
most of their new
buying at
Witn toWfafdron Chronicle)
Or uo.
(Special
The Financial
say 61 to 61V2 or■ so. The old
gAN
FRAncisco,
Calif.buyers simply hold on, licking jjarry l. Silverman has bf"ime
their chops.
But instead of associated with Waldron and Corngoing up the stock now eases pany, Russ Building.
r>t

-i

/

new

rm

u

40

The Commercial and Financial Chronicle

(2268)

week

Business Activity
1

that date,

on

(net tons)

June

•

PETROLEUM INSTITUTE:
oil and condensate output—daily

of that date:

Previous

Year

Week

Ago

Ago

Month

Month

Ago

102.7

52.1

•102.7

102.3

1

are as

Latest

2,053,000

1,083,000

•2,134,000

2,124,000

March

of

OF

SYSTEM—

RESERVE

FEDERAL

Month

GOVERNORS

OF

DEBITS—BOARD

BANK

THE

ingots and castings

of quotations,

cases

Year

Equivalent to—
Steel

in

or,

Previous

Latest

June

Thursday, May 29, 1952

Dates shown in first column are either for the

month available.

or

month ended

or

.

Month

Week

INSTITUTE:
steel operations (percent of capacity)

AMERICAN IRON AND STEEL
Indicated

latest week

,

statistical tabulations cover production and other figures for the

The following

Indications of Current

.

$125,269,000

$114,051,000

$129,112,000

$1,202,100

thousands)

(in

$181,400

$1,065^,200

AMERICAN
Crude

(bbls. of

average

Gasoline

stills—daily

to

runs

Kerosene

output

Distillate

fuel

oil

Not available due to oil

May 17

oil

oil (bbls.)

Residual

oil

fuel

Revenue

CONSTRUCTION

ENGINEERING

CIVIL

—

w

State

municipal

and

Federal

Bituminous

Electric

output

$371,079,000

165,538,000

186,185,000

119,145,000

184,894,000

AND

BRADSTREET, INC.

—

80,117,000

130,664,000

69,840,000

39,028,006

54,230.000

26,486,000

59,976,000
37,186,000

I

Finished

8,025,000
721,000

109,900

•88,200

—

-

Month

of

Revenue

••

_

139,300

106,000

Iv

99

97

'

v

\

*7,110,393 /

145

ultimate

of

4.131c

v--.

*

-a

STRUCTURAL

168

.191

*

of

4.131c

$52.77

$52.72
$42.00

(New York)

24.200c

24.200c

27.425c

27.425c

121.500c

.

—

15.000c

19.000c

GAS

14.800c

18.800c

; 19.500c

19.500c

17.500c

May 27

110.15

Vi'ay 27

114.46

-

Domestic

,

May 27

Group

Utilities

107.62

103.97

107.44

105.69

107.44

7,403

8,159

8,274

115,854

155,371

152/200>.

173,600

180,100

'

40,200

35,200

\

22,000-,.

19;700

•

ASSOCI-

I

shipments

[

April:

heater

109.60

109.60

central

113.70

HOUSEHOLD

2.60

2.57

ARD

114.85

*

3.16

3.16
;

..I,

(units)

Gas-conversion

111.07

C 113.70

2.59

——

(units)

4,000

(units)—

209.100
249,600

•

-

t;

V

:

t
:

4;300'

t

*

2.92

2.93
3.01

3.20

3.20

.3.19

3.49

3.49

3.10

-

3.00

SIZE

(VACUUM

217,169

290,092

217,211

t-'. .1;

11,200

248,431
13,913

STAND-

—

CLEANER

ASSN.)—Month

FACTURERS

MANU-

of

April:

J
r

'•

(number of units)

Factory sales

14,200

8.938

CLEANERS

VACUUM

.1

(units)—

burners

''

227,215

v

2.67

.

3.16
•

2.93

3.01-

May 27

_—;

shipments (units)._____
heating equipment ship¬

range

furnaces

3.51

HOUSEHOLD

SIZE

AND

IRONERS

(AMERICAN

—

MANUFACTURERS'

LAUNDRY

2.93

.

WASHERS

\ STANDARD

'2.89

•

—

:

HOME

ASSOCIA-

*

.

.

A

gas

boilers

107.80

109.60

'

Am

V

113.50

...May 27

———-~*—~

'
'

110.15

May 27

MOODY'S BOND YIELD DAILY AVERAGES:
U. S. Government Bonds
—

234,095

(number ;

114.46

109.60

May 27
——-—,

Aaa

of

Gas-fired

115.24

113.12

May 27

Group.

Industrials Group

Average corporate

114.66

109.42

104.31"

,

337,026-

•268,840

108,270

cars)——

of

water

gas

Gas-fired

111.25

114.46

104.31

Baa

;

112.93

109.42

May 27

97.45

110.15
*

-

112.93

■

May 27

98.66

.

110.15
~

May 27

Public

98.92

98.45

.May 27

-

Railroad

(AMER-

♦226,394,

230,874

.

•'

MANUFACTURERS

APPUANCE

ments

—

-

205,022

—

——I—_—

ATION—Month

MOODY'S BOND

Aaa

'

16.800c

19.500c

15.000c-

•.

CONSTRUC¬

••

(number

Gas-fired

Average corporate

STEEL

;

.

cars)

Automatic

17.000c

14.800c

at

rRICES DAILY AVERAGES:
U. S. Government Bonds.
J.

(AMERI-

1

.

139.000c

May 21

.May 21

—-

45,213,857

.

April:

Backlog of orders at end of month

24.425c

121.500c

27.425c

May 21

at
at

Zinc (East St. Louis)

24.200c

24.200c

46,890,115

'

,

156,900

$43.00

121.500c>

26,044,153

$469,373,200

47,027,590

29__

OUTPUT—DOMESTIC

April: -'

Deliveries

'$52.69

$42.00

May 21

Feb.

ICAN RAILWAY CAR INSTITUTE)—Month
;-

1

4.131c

$52.77

May 21

29,217,183

$522,258,300

'•

of

itonnage)—estimated-—

METAL PRICES

Lead-(St. Louis)

131

28,703,163

*

(tonnage)—estimated ___'

FREIGHT CAR

\

" " i*

$42.00

May 21

at

STEEL

OF

of

closed

Shipments

6,652,699

,

••

customers

INSTITUTE

TION)—Month

of

Lead

137,

103

consumers—

omitted)

(000's

ultimate customers—month

J

^

•154

4.131c

V 7,134,844

May 20

;

113

-*93

$514,575,300

FABRICATED

99

May 20

(E. A M. J. QUOTATIONS):
Electrolytic copperDomestic refinery at—
Export refinery at
;—-—Straits tin (New York) at

*102

782,000

' r-

.117;:

§7,146,204

ultimate

to

February

February

9,637,000

683.000

sales

from

„

.May 20

Pig iron (per gross ton).
Scrap steel (per gross ton)

♦05

98

INSTITUTE:

ELECTRIC

Kilowatt-hour

CAN

—May 24
DUN &
May 22

lb.)

(per

9,195,000

-

COMPOSITE PRICES:
steel

EDISON

Number

.•

KRON AGE

adjusted

85

97

adjusted-

unadjusted

seasonally

seasonally

88

95

111

daily),

96

116

(average

Contracts

INDUSTRIAL)

April;

(average

Stocks,

96,326,000

720,000

„

of

80,789,000

97,162,000

8,350,000

May 17

(in

(COMMERCIAL

FAILURES

$284,683,000

140,699,000

INDEX—FEDERAL RESERVE

INSTITUTE:
000 kwh.)

ELECTRIC

EDISON

$177,115,000

$237,861,000

22
22
22
22
22

May 17

AVERAGE '=t 100

SYSTEM—1947-49

Month

—

FED¬

1945-1949

monthly), unadjusted
daily), unadjusted

(average

Stocks,

May 17

DEPARTMENT STORE SALES

.X

682,489

616,484

623,634

628,754

—>.May 17

(tons)

anthracite

of

FEDERAL

Y.—

Sales

809,475

735,097

719,793

754,373

S.

(tons)

coke

Beehive

1(H>

=

N,

Sales

;

BUREAU OF MINE8):
coal and lignite (tons).

Pennsylvania

•

—

—

COAL OUTPUT (U.

DE¬

_

May
May
May
-May
;—May

construction

construction

Private

Public construction

DISTRICT,
OF

BANK

AVERAGE
Sales

ENGINEERING

NEW8-RECORD:

Total U. S.

S.

Month

SALES—SECOND

STORE

RESERVE

.May 17

at

AMERICAN

OF

U.

—

omitted*

RESERVE

ERAL

May 17

at

(bbls.)

REPORTED

—

COMMERCE

OF

(000's

DEPARTMENT

Not available due to oil strike

RAILROADS:
freight loaded (number of cars)
May 17
freight received from connections (no. of cars)_.May 17

Revenue

March

output

Distillate fuel

ASSOCIATION

strike

PUBLICLY

—

CORPORATIONS

S.

May 17

(bbls.)_—

.May 17
(bbls.).
tStocks at refineries, bulk terminals, in transit. In pipe lines—
Finished and unfinished gasoline (bbla.) at
May 17
Kerosene (bbls.) at
May 17
fuel

Residual

U.

PARTMENT

May 17

output

DIVIDENDS

BY

May 17

(bbls.)

average

(bbls.)
(bbls.)

output

CASH

May 17

gallons each)

42

Crude

_

May 27

Baa

TION)—Month

3.16

of

April:

3.41

Factory sales of washers (units)

3.29

Factory

;

292,193

'

Railroad

Group

Utilities

Public

Group

Industrials Group

3.30

—

3.31

3.19

3.19

2.98

May 27
May 27
May 27

—

2.97

432.9

-181,601

2.97

205,276

430.7

206,350-

Factory

ironers

(units)

sales

36,109

$1,481,000
454,000

244,000J-

23,700
32,960

122.6

530,000

;
*

41,161

122.5

•

of-'-dryers; (units>__—

2.91
494.4

163,623
196,697

204,041'

....—

3.11

i

of

246,000

.

436.8

May 27
May 17

INDEX—_—....

COMMODITY

3.19

sales

$1,719,000

•

MOODY'S

3.31

206,161

—

COMMERCE ' COMMISSION

INTERSTATE

'

of

'

NATIONAL PAPEBBOARD ASSOCIATION:

(tons)

received

Orders

Production

—

(tons)

—May 17
May 17
May 17

:

Percentage of activity——_—.—:
Unfilled orders (tons) at end of period;

==

DEALERS

AND

SPECIALISTS

Odd-Sot sales by dealers

ON

EXCHANGE

KXCDANGE—SECURITIES

Number of

140.8

153.2

-

(customers'

24,686'

—May 10

27,989

694,773
$31,039,809

May 10

—

other

May 10

sales..

Customers'

sales

Number

23,247

35,027

959,376
$30,197,111

$48,829,178

-

802,482--

V

$35,834,718;

of

21,370

..May 10

,

-May 10

sales

shares—Total

23,109-

131

-

21,239

other

575,448,
4,545

660,310
^ 7,792

May 10

570,903

652,518

$24,463,941

$27,739,245

May 10

157,210

sale?.

Sound-lot' sales by dealers—
Number of shares—Total sales.
sales

,

541,842

'

198,920

•

7,758
1

537,968
$23,415,126

■

^

Total

158,800

486,000
383,000

■•

;

$2,495,000

i

$2,179,000 t

-

$2,417,000

SERIES—

'

dollars);

of

*

•

^

$23,232
1

^i_——__——C

Nondurable-

"$23,037'

$17,575

19,082

•19,156

$42,313

-

"$42,193

•23,332

"V1- 22,605

$28,465,000

$27,119,009

<

17,981.

-

262,910

•

198,920

158^800

2T2I9I6

310,790

251,560

.

,$33,557

MONEY IN CIRCULATION—TREASURY DEPT.

410,080

ON

THE

NEW

YORK

260,800

282,540

230,590

'397,540

May

6,520,070

6,949,140

7,783,790

OF

6,780,870

7,231,680

8,014,380

11,084,470

initiated

on

UNITED STATES

eu:

COMMERCE)—Month

OF

'

I.

,

,

I

$257.8

income
:

^

690,170

*177.3
♦173.7

*

744,540

778,270

830,560

146,230
632,040

1,097,590

130;490

211,400

744,740

885,600

875,230

■:'

1,097,000

the floor—
May

;

162.2.
73.7

77.4

47.1

*47.0

20.7

29.9

20.9

32.1

♦32.0

27.3

Less

—

219,600

sales

255,440

326,500

May

14,800

16,100

Other

sales

16,700

17,800

May

160,510

195,780

268,700

175,310

211,880

285,400

231,663

289,833

368r777

436,330

May

34,390

36,600

35,650

72,700

for

Total

sales

_

4.0

interest income

and

4.0

3.7

4.0

3.9

3.3

47.4

...

Proprietors and rental income—

_

_______

Other transactions initiated off the floor—
Total purchases
Short

sales

;

Other sales
Total

May

278,441

353,495

IlMay

.]

sales

457,490

424,287

312,831

390,095

493,140

496,987

Total round-lot transactions for account of members—
Total

purchases

Short

♦43.6

47.7

sales

Total

May

~

20.6

dividends

♦19.9

All

—

=

NEW
100):

SERIES

—

U.

S.

1.068,683

1,284,423

1,454,777

1,860,420

All

19.7

Food

1,232,681

1,330,245

1,653,770

1,915,087

Feed

grain and

DEPT.

OF

new-

basis.

111.6

111.3

110.6

108.3

106.7

Oil-bearing

108.7

108.7

107.7

Livestock

113.9

114.2

111.4

Meat

May 19

113.0

112.9

^Preliminary figure.

221
437

435

436
313

359

176

168

202:

265

—

;

Truck

Dairy

245

230

309

1

19

113.1

276

249

217

265
386

.

crops

284

products
and eggs

/Revised figure.

tNot available.

-

:—

317

372

products

296

310

crops

and

animals

Poultry




hay

Tobacco

112.0

31L

239
259

229

grain

Crops

288

251

301,900

1,613,187

May 19

ton

1941=100—As

_i—

182,840

1,470,930

May 19

tNot available,

INDEX

AGRICUL¬

products

198,930

1,181,315

II May
.

—

12 1

225.2.

265

farm

187,780

Fruit

AU commodities other than farm and foods.

♦Revised.

11M)!)-July,

1,044,901

May 19

foods

OF

*12.6

*238.0

15:

Cotton

products

Processed

DEPT.

May

Group—

commodities

Farm

FARMERS

BY

S.

August,

March

of

income

IIMay

PRICES,

LABOR—(1947-49

Commodity

RECEIVED

NUMBER—U.
TURE

12.6

238.0

payments

_Z.H~~May

___—......

sales

WHOLESALE

PRICES

transfer

nonagricultural

Unadjusted—

;—

sales

Other

Total

Total

.

,

social
-

—

.44.9-

321,100

May

—

Income

labor

■

303,300

May

contributions

employee

insurance
Other

Personal

146,850

Short

.

165.9

77.3

industries

industries

Government

774,990

138,590

X,

$245.5-

♦$258.3

177.2
173.6

total—

disbursements...

employer

Commodity producing industries—

May

purchases

$28,473,000 i

billions):

and-salary receipts,

Service

605,950

sales

omitted)—.

(000's

31

Distributing

.May
May

—

(in

personal

Wage
Total

MEM¬

-—.1

sales

March

Total

10,686,930

....May

ACCOUNT

March

(DEPARTMENT

,

.•'of

May

FOR

of

PERSONAL INCOME IN THE

(SHARES):

_____

Other transactions
Total

^ $1,548,000
,

861,834

157~,210

—'.

_

_

Short sales

Other

».

SALES

&

NEW

(millions

$37,121,079

.

293,480

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
stocks in which registered—
Total purchases
—'
May

•

March

Inventories:

Transactions of specialists in
1

INVENTORIES

COMMERCE)

OF
of

'—As

SALES

TRANSACTIONS

MOUND-LOT

.

869,592

'

3,874

-

-May 10

sales

sales

(DEPT.
Month

30,645

Round-lot sales—

Other sales

...

MANUFACTURERS'

dealers—

BOUND-LOT STOCK

Short

________

Total

*-

208

108*.

19,470

—.—.May 10

sales

FOR ACCOUNT OF MEMBERS

Total

Industrial,.-

30,853

KXCMANGE AND ROUND-LOT STOCK TRANSACTIONS

Total

Mar.

of

——.May 10

Roand-lot purchases by
Number of shares.
POTAL

institute

—

Month

—

21,964

D)Qm value-

Other

purchases

INSURANCE

LIFE

(000*s omitted):

*

May 10

....May 10

sales;

Customers'

128.1

1,054,901

.

19,578-

■

198

May 10

short

Short

-

22,911

'

Customers'

"

purchases)—

purchases by dealers (customers' sales)—
Number of orders—Customers' total sales.
short

average=100)__—j.

<1935-39

Insurance

OF

■

May 10

Customers'

middle

at

•

Odd-lot

....

life
,

Y. STOCK
COMMISSION:

shares;—^—_■

Dollar value

<

139;4

Employment

Railway

106

680,105

v

N.

Number of orders

,

81

389,115

139.9

May 23

100

STOCK TRANSACTIONSFOR ODD-LOT ACCOUNT OF ODDLOT

81

412,863

of

April

257,930

83

380,381

v'

REPORTER PRICE INDEX—

OIL, PAINT AND DRUG
SMS-SB AVERAGE

Ittdex

377

428

305

317

239

177

181

217

342

.

Volume 175

Number 5120

.

.

The Commercial and Financial Chronicle

.

(2269)

41

s.

Securities Now in Registration
•

American Gas & Electric Co.

June

bank loans. Underwriters—To be determined
by
competitive bidding. Probable bidders: (1) On bonds—
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; First Boston
Corp.; Union Securities Corp.; Harriman Ripley & Co.,
repay

3,

(Offering to stockholders)

Tampa Electric Co

rate

of

one

share

new

stock

for

each

four

common

shares

of

stock held

June

American Investment Co. of Illinois

(Offering

(Bids

(6/10)

cumulative prior preferred
Price—To be supplied by amendment.

Minneapolis, St. Paul
Sault Ste. Marie

Peabody & Co.,
Sons, Baltimore, Md.

:

'

vances to

26.

1

par.

(Hunter

•

:

-May 26 filed 3,000,000 shares of
to

be offered

pursuant

to

common

v,<:

on

States

to

bonds; 10:30

Power

...

June

-

•

<■

Federated

pay-*

;

a.m.

EDT

11, 1952

(McLaughlin, Reuss & Co.) '

Petroleums, Ltd

(Bids

to

Broadcasting Co
June

Oscar E.

12,

(Bids

noon

(Bids 3

Preferred
Common

(Bids

17, 1952
11

Kentucky Utilities Co

Price—10 cents

(Bids

per share.
Proceeds—For explo¬
Office—1828 Yale Ave., Seattle
1, Wash. Under¬
writer—None.

to

(Blyth

be

&

mortgage bonds, series

June

Proceeds—To repay bank loans and
Underwriters
To be deter¬

June

(jointly); Lehman Brothers; The First Bos¬
Corp.; Harriman Ripley & Co. Inc. Bids—Tentative¬
about June 24.

Bridgeport Brass Co., Bridgeport, Conn.

April
stock

8

filed

125,732

shares

of

cumulative

preferred

& Week» and Stone &
ers'

Underwriters-r-Hornblower

Webster

Offering—Indefinitely

meeting May 26

no

Securities

postponed.

action

was

ceeds—For expansion>
program.
& Co., New York, n /

11

be

Bonds

(Bids

to

a.m.

be

June

Will

entitle

holders

to

stock at par ( $1 per

purchase

452,350)
share). They arei

1, 1955.

C. I. T. Financial

Corp., New York
April 25 filed 150,000 shares of common stock

(no par)

to be offered pursuant to a restricted stock
option plan
for key employees to certain employees of the
company
and its subsidiaries.
Underwriter
None.
Proceeds

EDT)

For general
May 21.

corporate

purposes.

—

Statement

Continued

on

effective

page

25,1952

to

June

Price—At

control

received)

Public Service Co. of Indiana, Inc.
(Bids

shares held.

voting

—

invited)

be

Bonds

invited)

26,

1952

American Telephone & Telegraph Co.—Debentures
(Offering

At stockhold¬

June

to

stockholders)

,

30, 1952

Metals & Chemicals Corp
(Beer

&

Common
Co.)

due June

amendment.

July 8, 1952

Pro¬

Underwriter—Wertheim

May 28 filed 199,937 shares of common
stock
(par
-$2.50) to be offered for
subscription by common stock¬
holders at rate of one share for each
seven shares held,
price—To be supplied by
amendment.
Proceeds—For

Georgia Power Co
^

Bonds

(Bids 11

a.m.

EDT)

New York

-




★

1952
Bonds

to

common

exercisable to May

Bonds

EDT)

Co

common

purchase

Southern New England Telephone Co.—Debentures

taken.

by

a.m.

—

shares of

,

(Bids

Power

Warrants

1952

Boston Edison Co
-

Corp., New

★ Bristol-Myers Co., New York
May 28 filed $5,000,000 of 25-year
debentures
1, 1977.
Price—To be supplied

11

two

Proceeds—To

of Cine(Great Britain), Ltd. and for working capitals
Business—Two-color film process. Underwriter—None.

1952

June 24,

(par $50-convertiblp through
May 1, 1962) to be

offered for subscription
by common stockholders at rate
of one preferred share for
each seven and one-half shares
of common held.
Price—To be supplied by amendment
Proceeds^-TO - redeem
outstanding 3%% serial deben¬
tures and repay 2%
% notes.

York.

(Bids

attached) to be offered for sub¬
stockholders at rate of $1 of de¬

color

stockholders)

23,

common

bentures for each
par.

EDT)

Central Louisiana Electric Co., Inc.

Gulf

scription by

Common

(Bids

Underwriter—None.
•

19,
to

June

(par $1). Price—At par. Proceeds—For
construction and
improvement of race track. Office—Point
Roberts, Wash.

a.m.

Martin (Glenn L.) Co
(Offering

Judson M. Bell, two
F. Claybaugjfc

stock purchase warrants

1952
Common

bidding. Probable bidders: Halsey,
Inc.; White, Weld & Co. and
Goldman,

★ Boundary Bay Turf & Surf
Club, Inc.
May 9 (letter of notification) 2,331 V2 shares of
preferred
stock (par $100) and
2,331 V2 shares of common stock

-

18,

Debentures

EDT)

a.m.

(Bids 11:30

Vermont

to

Cinecolor Corp., Burbank, Calif.
May 9 filed $452,350 of five-year 5% subordinated sink¬
ing fund debentures due May 1, 1957 (with common

Preferred

Inc.)

Southern Co.

—

or

11

share for

invited)

Co.,

Public Service Electric & Gas Co
(Bids

one

selling stockholders. Underwriters—Blair
& Co., Harrisburg, Pa.

Bonds

Public Service Co. of Indiana, Inc.

ration.

May 19 at the rate of

ceeds—To Robert M. Allender and

Debs. & Common
EDT)

a.m.

/

Century Natural Gas & Oil Corp.
Apri'l 30 (letter of notification) 80,000 shares of common
stock (par 10 cents).
Price—40 cents per share.
Pro¬

Inc.)

American Gas & Electric Co

Corp.

common,, has waived its subscription?,
38,611 of the new shares. Price—$12.25
per
share. Proceeds—To repay bank loans and for
new con¬
struction.
Underwriters—Kidder, Peabody & Co. and
Merrill Lynch, Pierce, Fenner & Beane
(jointly) who
were awarded the shares on
May 19.
Statement effec¬
tive May 20.

rights

1952

& Co.,

June

★ Border Lord Mining Corp.,
Seattle, Wash.
May 7 (letter of notification) 2,335,950 shares of common

on

Central

Equip. Tr. Ctfs.

(Bids 11 a.m.)

(Blyth

Service

held; rights will expire on June 3. New
England Public Service Co., parent, owner of 35.5% of:

p.m. EDT)

16,

Vermont Public

holders of record

Common
June

Central

each six shares

EDT)

Pacific Gas & Electric Co

ly expected to be received

★

per

April 23 filed 108,900 shares of common stock
(par $6>
being first offered for subscription by common stock¬

1952

(E.)} Inc

Underwriter—None.

(par

Sachs & Co.

(par 10 cents). Price — At market (estimated at
share). Proceeds—For drilling operations antl.
working capital. Underwriter—Israel & Co., New York.

$2.50

Dooley & Co.)

Chicago & North Western RR
Leitz

9,670 shares of common
$1). Price—At market (about $7.12y2 per
share). Proceeds—To Elizabeth M.
Blatner, the selling
stockholder.
Underwriter—None, but Bache & Co., New
York, will act as broker.

ton

—

stock

Common

(Reynolds & Co. and

stock

Co.

Proceeds—For construction program. UnderTo be determined * by
competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Equitable
Securities Corp.; White, Weld &
Co., Shields & Co. and
Kidder, Peabody & Co. (jointly); Lehman
Brothers; The
First Boston Corp.; Glore, Forgan &
Co.; Salomon Bros& Hutzler. Bids
Tentatively expected to be received,
up to 11 a.m. (EDT) on or about June 23.
;

invited)

Oklahoma Natural Gas Co

&

Security Associates^

★ Central Oklahoma Oil Corp., Oklahoma
City, Okla*
May 20 (letter of notification) 49,940 shares of common,

-

Common

be

T.), Inc.
May 9 (letter of notification)

Stuart

.

CDT)

(Wood, Gundy & Co.. Ltd.; Kidder, Peabody & Co.;
' '
Dominick & Dominick)

/

Storer

(B.

D, due July 1, 1982.

stocks)

Bonds

a.m.

■

<

★ Armrey Co., Winsten-Salem, N. C.
May 23 filed $500,000 of Plans of the Armsfield Plan for
the Systematic Accumulation of
new Class B
Common

for capital expenditures.
mined by competitive

on

Co.

—

due 1982.
writers

Public Service Electric & Gas Co
Common
(Morgan,Stanley & Co.; Drexel & Co.; Glore, Forgan & Co.)
Rochester Gas & Electric Co
Bonds

---i

★ Boston Edison Co. (6/24)
May 27 filed $15,000,000 of first

,1.

l' ' '*

..Preferred

Devon-Leduc Oils, Ltd., Winnipeg, Canada—Bonds
—

Andowan Mines,
Ltd., Port Arthur, Ont., Canada
May 8 filed 500,000 shares of common stock
(par $1).
Price—38 cents per share.
Proceeds—For exploratory
drilling and improvement on present holdings.
Under¬
writer—Frank P. Hunt & Co.,
Inc., Rochester, N. Y.

stock.

Preferred7

Brown & Sons)

Underwriter

★ Central Louisiana Electric Co., Inc. (6/23)
May 22 filed $4,000,000 of first mortgage bonds, series
D,

10, 1952

(Bids 10:30

-

v'

Babbitt

V //'

—

Plan"

—

Stock of R. J. Reynolds Tobacco Co.

'

-

or next
succeeding month (whichever
lower). Proceeds
For property additions and im¬
provements and other corporate
purposes.
Underwriter
/^None.
"
'
.

EDT

noon

*

(par $100)

Stock

"inent is completed

-

V

.(Kidder, Peabody & Co.)
'
V
& Electric Co._
-Bonds & Stock

Kansas Gas
(Bids

capital and surplus.
Winter Park, Fla.

Common

(G. H. Walker & Co.)

'

;

July 15, 1952
Commonwealth Edison Co.; Chicago, III.
(Bids

to

be

invited)

Bonds

v

★ Central Guaranty Insurance Co., Winter Park, FEaJ '
\ May 19 (letter of notification) 7,000 shares of common,
stock
(par $10). Price—$20 per share. Proceeds—For

Corp.)

(Kidder, Peabody & Co. and Alex.

Northern

employees of company and related companies. Price—
'$20 below average market price for month in which

/is

/

'/

.

stock

"Employees'

—

.

Common

^

Securities

Huyck (F. C.) & Sons—

A

★ American Telephone: & Telegraph Co.

—

9, 1952

June

Under-

-

,

(letter of notification) eight shares of class A
stock (par
$100), 392 shares of class B common
(par $100), eight promissory notes of $5,000
each,
and 22 promissory notes of
$3,000 each.
Price—At parProceeds
To repay indebtedness.
Office
Castle Hot
Springs, Ariz. Underwriter—None.
■

,

American Investment Co. of Illinois

Proceeds—For ad¬

subsidiary and associated companies.

writer^-None.

•

Price—At

CDT)

Midwest Pipe & Supply Co., Inc

surrender of

June

22

May 22

&
noon

Calvert

common

RR._———Equip. Trust Ctfs.
(Bids

and

stock

1952

Island Air Ferries, Inc

$100 of;debentures and $36 in
cash), to be
; offered for subscription by stockholders of record June 16
at rate of $100 of debentures
for each seven shares
held;
; rights to
expire July 31, 1952. Rights will be mailed on
about

Common
CDT)

a.m.

—

,

-

or

Common

5,

June

• American Telephone & Telegraph Co. (6/26)
May 22 filed between $490,000,000 and
$510,000,000 of
12-year
convertible debentures, due
July 31, 1964
(convertible through July 31,
1962, into common stock
beginning Sept. 30,1952, at $136 per share,
payable by

:

EDT)

stockholders)

10:30

June

stock (par $100).
-Proceeds—To repay bank loans and for
general corpo¬
rate purposes.- Underwriters —
Kidder,

York, and Alex. Brown &

to

listed

on

Office—407 Ship ¬

Cardiff Fluorite

May

Northern States Power Co

May 16 filed 100,000 shares of

New

noon

Proceeds—For

options

stock

Equip. Trust Ctfs.

Illinois Bell Telephone Co.

of

Mines, Ltd., Toronto, Canada
filed (amendment) 300,000 shares of common,
(par $1). Price—$1.25 per share. ' Proceeds—For
development expenses and general corporate
purposes
Underwriter—Frank P. Hunt & Co., Inc.,
Rochester, N. Y.
★ Castle Hot Springs Hotel, Inc. (Ariz.)

4, 1952

(Bids

Price—At par. Proceeds — For
plant additions
?and construction.:
Underwriter—None. Statement effec¬
tive May 19.
!
.

share).

per

commodities.

on

ley Street, Wilmington 1, Del.- Underwriter
Securities Corp., Wilmington
1, Del.

& Co.)

Baltimore & Ohio RR

($1

par

unlisted securities and

★

of

Price—At

acquisition, holding and sale

Common

May 16 (with oversubscription
privileges); rights expire

•

stock.

EDT)

a.m.

(Peter Morgan

June 4.

■J

11

pre¬
as

Common

Co.)

Tri-Tor Oils, Ltd

(par

subscription by stockholders

two shares of

or

common

Co., Ltd

&

repay

★ Calvert

Preferred & Com.

(Bids

American Hard Rubber Co.
-March 28 filed 96,655 shares of
at

(Allen

June 18.

Underwriter

Co., San Francisco, Calif.
Funds, Inc., Wilmington, Del.
May 19 (letter of notification) 300,000 shares of common

Common

(Glore, Forgan & Co. and The Illinois Co.)

ceived up to 11 a.m. (EDT)

ferred stock

ISSUE

common stock
(par
by amendment.
Proceeds
bank loans and for new construction.
Un¬
derwriter—Dean Witter &

*—To

Common

Mercantile National Bank of
Chicago
New British Dominion Oil

for

REVISED

★ California Water Service Co.
May 27 filed 50,000,000 shares of
$25).
Price—To be supplied

1952

Consolidated Natural Gas Co

Inc.; Salomon Bros. & Hutzler. (2) On stock—Blyth &
Co., Inc. and Goldman, Sachs & Co. (jointly); First
Boston Corp.; Union Securities
Corp.
Bids—To be re¬

being offered

PREVIOUS

expansion and general
corporate purposes.
—Wertheim & Co., New York.

NEW ISSUE CALENDAR

Proceeds—To be invested in common stocks of
Appala¬
chian Electric Power Co. and Ohio Power
Co. and to

$12.50)

SINCE

ITEMS

•

(6/18)

May 21 filed $20,000,000 of sinking fund debentures due
1977, and 170,000 shares of common stock (par $10).

on

* INDICATES -ADDITIONS

Boston

Philadelphia

Pittsburgh

San Francisco

Private Wires

to

all

offices

Chicago

Cleveland

42

42

The Commercial and Financial Chronicle

(2270)

Continued

from

41

page

it Cities Service Co.
May 28 filed $4,090,000 of participations in the Employees
Thrift Plan of Cities Service Co.

and

participating sub¬
sidiary companies and 40,000 shares of common stock
purchasable under the plan. Underwriter—None.
Citizens Credit Corp., Washington, D. C.
April 10 (letter of notification) $125,000 of 6% subordi¬
nated debentures due 1969 (with warrants attached to
purchase 3,750 shares of class A common stock at $15
per share and 750 shares of class B common at 25 cents
per share).
Price—At 99% and accrued interest.
Pro¬
ceeds—To

acquire loan offices and subsidiaries.

Office

—1028 Connecticut

Avenue, Washington 6, D. C. Under¬
writer—Emory S. Warren & Co., Washington, D. C.
Coca-Cola Bottling Co. of Los Angeles
May 12 (letter of notification) 2,000 shares of

common

stock (no par). Price—$23 per

share. Proceeds—To Stan¬
ley N. Barbee, the selling stockholder. UnderwriterLester, Ryons & Co., Los Angeles, Calif.

it Colorado Oil Ventures, Inc.
May 23 (letter of notification) 1,999,000 shares of com¬
mon
stock (par one cent).
Price—15 cents per share.
Proceeds—For drilling test well in Lincoln County, Colo.,
and for other corporate purposes

development.

relating to oil property
& Co., New York.

Underwriter—Tellier

•

Consolidated Natural Gas Co., New York (6/3) '
April 30 filed 409,254 shares of capital stock (par $15)
to be offered for subscription by stockholders of record
June 3 at

(with

share for each

one

eight shares held

oversubscription privilege); rights to expire on

an

'|June 20.

Price—$52

securities
turn

rate of

will

per share. Proceeds—To purchase
company's operating subsidiaries which in

of

the

use

funds for property additions

im¬

and

Underwriter—None.

provements.

Federated Petroleums, Ltd. (6/11)
May 19 filed 1,000,000 shares of common stock (no par),
500,000 shares of which will be offered in Canada and
500,000 shares in the United States. Price—To be sup¬
plied by amendment. Proceeds — For exploration and

Fenimore

Iron Mines,

and

-

one new

;

stock (par $1)

effective

(letter of notification) 5,866 shares of common
Price—$12.75 per share. Proceeds—To SullivanBrooks Co., Inc., the selling stockholder.
Office—112
West

Lehman

in

offered

at

exchange for' United
of

rate

one

shares of United.

Continental Oil Co., Houston, Tex.
May 14 filed $26,000,000 of interests in The Thrift.Plan

share

Stove

of Gar Wood

Co.

for

Probable
bidders:
Union
Securities
Corp.;:
Brothers; Merrill Lynch, Pierce, Fenner
Beang, Kidder, Peabody & Co. and White, Weld & Co*

common

each

Underwriter—None.

-

(jointly); The First Boston Corp.; Blyth & Co., Inc.
Bids-r-Expected to be received up to 10:30 a.m. (EDT)!

three

j

■

employees of this company, together with 400,000
shares of capital stock (par $5) purchasable under terms

N. Y.

Tex.
120,000 shares of

mon

To

stock

(par $1). Price—$2.50 per share. Proceeds—
purchase royalties and mineral deeds, oil and gas..

Office—740 Wilson

Building, Dallas Texas. Underwriter
Southwestern Securities Co. and Hudson
Stayart & Co.,
Inc., of Dallas, Texas.
* De Lys Theater Corp., New York
May 12 (letter of notification) 10,000 shares of class B
common stock and
10,000 shares of preferred stock. Price
—For
per

common

share.

10 cents per share and

Proceeds—For leasehold

for preferred $10

improvements and

general corporate purposes. Office—121
Christopher St.,
York, N. Y.
Underwriter—None.

New

Dear dor f

Oil

Corp., Oklahoma City, Okla.
April 14 (letter of notification) 2,000,000 shares of
mon

stock.

—For

com¬

Price—At par (10 cents
per share). Proceeds

working capital.

homa City, Okla.

Office—219 Fidelity Bldg., Okla¬

Underwriter—None.

Deerpark Packing Co., Port Jervis, N. Y.
March 21 (letter of
notification) 235,000 shares of

May L9 filed $12,000,000 of first mortgage bonds, series D,June
1, 1982.
Proceeds — For new construction.;

stock (par 10 cents).
Price—$1.25 per share. Pro¬
ceeds—To repay RFC loan of
$41,050 and for working

mon

capital.

★ Delwood Corp.,
Washington, D. C.
May 22 (letter of notification) 200 shares of
preferred
stock.
Price—At par ($500 per
share).
Proceeds—To
engage in business by
buying and selling real property,
mortgage notes, and deed of trust notes.
Office—1025
Connecticut

Avenue, N. W., Washington, D. C.

writer—None.

Detroit Steel

Under¬

$25,000,000 of 4%% first mortgage bonds due
1, 1967. Price
To be supplied
by amendment.
Proceeds—To retire $13,950,000 of
presently outstanding
first mortgage bonds and
for expansion
—

program.

Under¬

writers—Halsey, Stuart & Co. Inc. of Chicago and New
York; Van Alstyne, Noel &
Co., New York; and Crowell,
Weedon & Co., Los
Angeles, Calii. Offering—Postponed
temporarily.
Detroit Steel

Corp.

Feb. 5 filed

600,000 shares of $1.50 convertible
preferred
(par $25). Price—To be filed
by amendment. Pro¬
ceeds—For expansion
stock

program.

(formerly Industrial :
St. Louis, Mo.u,
;
»'
May 26 filed 110,000 shares of common stock .'(par $2),
15,500 shares of preferred stock (par $100) and 50,000

Pea^pdy & Co. and White, Weld & Co. (jointly); The First

shares of preferred stock

Bids-h-Tentatively expected to be

Underwriters—Van

Al¬

styne, Noel & Co., New
York, and Crowell, Weedon &
Co., Los Angeles, Calif.
Offering—Postponed tempo¬
rarily.

(par $20) to be offered in ex¬
change for stock of Securities Investment Co. of St. Louis
at

rate

of

1 1/10

April 7
stock

(par

one

cent).

ceeds —Por

of common

Price—50 cents per share.

Pro-

—

Proceeds—For

one-half

stock and

new

each

Underwriters—To

stock, at
merits/

be

Kirk

March

For

Office—2636

Hamilton

North

Hutchinson

DeoVo°?"Mt!!,c °il8' Ltd., Winnipeg, Canada (6/11)
wyf.mHJ$*>000,000 of 10-year 5% convertible sink¬
ing fund mortgage
bonds, due June 1, 1962. Price—100%

repay bank loans and

St.,

Underwriter—None.

D'vicf.f.' ,nc- Brooklyn, N. Y.
Mock fnar inl °1 n°t,fl.£a.tion) 200,000 shares of capital
eeeds/.Tn pmLTrJ Pn®e—10 cents per share. ProSE3S,"°S2 C. Leonhardt, the selling stockholder.
r

writer—None.




'

Br°°klyn 15' N' Y"

Under-

Exploration

—

30 cents per

work.

Office

—

share.

'*•'

„

shares

Interstate

405

of

Proceeds—■,

Underwriter—Gardner

Trust
&

Co.,'
;

Price—At

Majpl9

par

(letter of notification)

sto<$£ Price—At

8th||fjtace,

Underwriter—

($100

share).
Pro¬
Calendar Street,/

per

par

3,000 shares of capital:

($100 per share).

Proceeds—To

es¬

Office—1260

So.;

Las Vegas, Nev. Underwriter—None.

;

it Leidy Prospecting Co., Renovo, Pa.
Maijh 22 (letter of notification) 7,000 shares of capital;
stock-(par 10 cents). Price—$2 per share, Proceeds—
To John W. Gullborg, President, who is the selling stock¬
holder; J Underwriter—None, but Josephthal & Co., New;

;

York,";will act

for

working capital.. Business — Me¬
industry and blankets and apparel
Underwriter—Kidder, Peabody & Co., New York.

as agent.

;.

-

*Lewis Welding & Engineering Corp., Bedford, O.:
May. 19 (letter of notification) 15,000 shares of common;

for each four shares held;
rights to
Price—At par ($100 per share). Proceeds
—To repay advances from American
Telephone & Tele-f

Stock]: of which 10,000 shares will be publicly offered and".
5,VW-shares offered to officers and employees. Price—
TO pUblic, $10 per share; and to employees. $9 per share.
Proceeds—From sale of stock, plus $150,000 from private
s$tle of a convertible note, to increase working capital.,
(liderwriters—W. E. Hutton & Co., New York, and Mer1; Turben & Co., Cleveland, O.
Offering—Now being;

graph Co., the parent (owner of 99.31% of Illinois Bell
stock). Underwriter—None.
'

^Lincoln

Illinois Bell

Telephone Co. (6/4)
May 15 filed 682,454 shares of capital stock to be offered
for subscription by stockholders of record
May 29 at
rate

of

one

share

expire July 1.

...

...

Wire Cloth

.

...

Products

Corp.

■

t

May 16 (letter of notification)

1,700 shares of

common

stock.

Proceeds

Kenneth

Price

—

$7.50

per

share.

—

To

held/ Price—$25

M*-Capital.

mLindemann

(Nev.), Newark, N. J.
(letter of notification) 599,700 shares

NOV/ 28 filed

of class A

common stock (par 25
cents). Price—50 cents per share «
Proceeds—For drilling and equipping well and for work-;
ing capital.
Office—11 Commerce St., Newark, N. J
i

International Technical Aero Services, Inc.
Feb. 15 (letter of notification)
300,000 shares of common
stock (par 10 cents). Price—$1
per share. Proceeds—For

working capital. Office—International Terminal, Wash¬
ington National Airport, Washington, D. C. Underwriter
—James T. DeWitt & Co..
•

Washington, D. C.

Island Air

Ferries, Inc. (6/9)
April 18 (letter of notification) 284,000 shares of
mon

stock

com¬

(par 10 cents). Price—$1 per share. Proceeds
—To purchase two
transport aircraft and for working

per

one

share for each 16 shares

share. Proceeds—To increase work-*

M St., Lincoln, Neb. Under-1

Office—1342

writer—None.

Inland Oil Co.
Feb. 26

Telephone & Telegraph Co.
May? 19 (letter of notification) 10,002 shares of common:
stock (par $16.67) to be offered for subscription by com¬

mon/stockholders at rate of

Foust, the selling stockholder. Office—3927 Fourth St./
Wayne, Mich. Underwriter—Manley, Bennett & Co., De¬
troit, Mich.

'

mSket 1hlffi shares
capital stock. Price-At
Yin Bullock New Yor°k.InveStment' U"«>erwriter-Cal-

of

Price

tablish television broadcasting station.

Underwriter—Weber-Millican Co., New York.

Dividend Shares,
Inc., New York

Wagner,

it Las Vegas Television, Inc., Las Vegas, Nev.

chanical fabrics for
cloth.

(letter

stock.

Denver, Colo.
notification)
1,000.00^

ceeds—For working capital. Office—22
La
.prange, 111. Underwriter—None.

♦
Huyck (F. C.) & Sons (6/9-12)
May 16 filed 60,000 shares of cumulative convertible
prior preferred stock (par $50). Price—To be supplied
by amendment. Proceeds—To redeem $5 class B pre¬

and

24

preferred stock.

Land

stock

For extensions and improve-;
preferred stock—The Bank-;

it La Grange Hardware Co., La Grange, HI.
May 22 (letter of notification) 450 shares of cumulative*

Co., Reno, Nev.
April 14 (letter of notification) 300,000 shares of capital
stock. Price—At par (10 cents per
share). Proceeds—To
acquire ore dumps and for oil leases and royalties. Of¬

ferred

—

Building, Denver, Colo.
WhIFe Plains, N. Y.

Products, Inc.
May 20 (letter of notification) 12,500 shares of common
stock
(par $1). Price—$3.25 per unit.
Proceeds—For
engineering, acquisition of machinery, and other cor¬
purposes.

cumu-.

Uranium Corp.,

common

Hahn Aviation

porate

Proceeds

par.

Underwriters—For

Bbnd Co., Smart, Clowes & Phillips, Inc. and
Reid
Ebinger, Inc., all of Louisville, Ky.
ers

Beane; Salomon Bros. & Hutzler and Drexel & Co.
(jointly). Bids — Expected to be opened on or about
June 24 at 11 a.m. (EDT)
/
\.
'V
;

Philadelphia 33, Pa.

'

lativg, preferred stock (par $25) to be offered to public,
and 5>J)00 shares of common stock (par $5) to be offered'
to
common stockholders in proportion to their holdings/
Price*— Of preferred, $26.50 per share; and of common

Underwriter—None.

construction.

June 17.

on

MayJL9 (letter of notification) 2,000 shares of 6%

determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co.; Coffin & Burr, Inc.; The First Bos¬
ton
Corp., Kidder, Peabody & Co.; Union Securities
Corp.; Equitable Securities Corp.; Blyth & Co., Inc.;
Kuhn, Loeb & Co.; Merrill Lynch, Pierce, Fenner &

twr

•

common

it Gulf Power Co., Pensacola, Fla. (6/24)
May 23 filed $7,000,000 of first mortgage bonds due 1982.

Industrial

rehabiiitation and development
program.
Office
Suite 839, 60 East 42nd
St., New York 17, N Y
Underwriter—Gardner & Co., White
Plains, N. Y.

fo/genG1^/ rnT111; Proceeds—To
Jin,Ssrsal&C°S! Ne^YXr-

of

S.I.C. $100 preferred share.

Peak

Uranium, Ltd. (Nev.)
(letter of notification)
600,000 shares

shares

share of $100 par preferred stock for

one

received

.

it Kentucky Water Service Co., Louisville, Ky. /

share of $20 par preferred stock for each S.I.C. common
share and

.

Devil

Boston Corp. and Lehman Brothers
jointly); Blyth & Co.,;
Inc.; Union Securities Corp. and Merrill Lynch, Pierce J
Fenner & Beane (jointly); Equitable Securities Corp..

;

fice—139 North Virginia St.,
Reno, Nev.
Nevada Securities Corp.

Corp.

F/fk" •?
March

Underwriters—To be determined by competitive
bidding.^
Probable bidders:
Halsey, Stuart & Co. Inc.; Kidder,

.

com¬

'

(6/17)

due

Underwriter—Edward Cool, Renova, Pa.

Bancshares Corp.),

com¬

10.

Kentucky Utilities Co.

-^General Contract Corp.

Underwriter—None.

June

on

Gas & Oil Co. Inc.
May 21 (letter of notification (2,500 shares of common
stock.
Price—At par ($100 per share).
Proceeds—For
drilling expenses.
Office — Sherwood Hotel, Greene,;

of the plan.

Continental Royalty Co., Dallas,
March 18 (letter of notification)

Brothers; Union Securities Corp. and Stone &

bidding.
Lehman

it Genegantslet

for

Sullivan-

tion.^ Underwriter—To be determined by competitive

it Gar Wood Industries, Inc., Wayne, Mich.
May 23 filed 95,460 shares of common stock (par $1) to
stock

—

Kansas Gas & Electric Co. (6/10)
/
ApriH30 filed 200,000 shares of common stock (no par),
Proceeds—To repay bank loans and for new construc¬

Corp., Boston, Mass.

ibe

Underwriter

(jointly); Glore, Forgan & Co.
Goldman, Sachs & Co. (jointly); Merrill Lynch,
Pierce, Fenner & Beane and Kidder, Peabody &Co.
(jointly); The First Boston Corp. Bids—Expected to be
received up to noon (EDT) on June 10.

Research

Investment

Colo.

Webster Securities Corp.

it Formula Fund of Boston, Boston, Mass.
May 26 filed 30,000 shares of capital stock (par $1). Price
share, plus sales load. Proceeds
—

Lamar,

and

—At net asset value per

Underwriter

St.,

Kansas Gas & Electric Co. (6/10)
/
April 30 filed $12,000,000 first mortgage bonds due 1982.;
Proceeds—For construction program and to repay bank
loans.
Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart •& Co. Inc. j

Co., Monroe, Wash.
March 21 filed 600,000 shares of common stock
(par
10 cents). Price — 50 cents per share. Proceeds — For
equipment and drilling purposes. Underwriter—None.

—For investment.

Elm

Brooks Co., Inc., Wichita, Kan.

10.

March

Kansas-Colorado Utilities, Inc., Lamar, Colo.

stock.

Petroleum

Flathead

(par $1).

March 14

which

share for each two shares held.

Statement

derwriter—None.

stock

Underwriter—None.

(Canadian funds) on
Sub¬
scribers will receive, for each share subscribed, a war¬
rant to purchase one additional share at $1.25 (Canadian
funds) per share until June 1, 1953, or an additional 2,003,792 shares.
Unsubscribed shares will be offered by
the company at the same price and carrying the same
warrants.
Proceeds—To finance drilling program.
Un¬
basis of

common

Price—$1 per share (Canadian funds).
Proceeds—For
capital payments, on property account and option agree¬
ments, purchase of machinery and operating expenses.

stockholders at 75 cents per share
a

Y.

Jersey Yukon Mines Ltd., Toronto, Canada

March 20 filed 200,000 shares of

shares are to be offered to present common

2,003,792

Thursday, May 29, 1952

.

Ottice—MacArthur Airport,
Bohemia, N.
Underwriter—Hunter Securities Corp., New York.

Ltd., Toronto, Canada

2,003,792 common stock purchase warrants of

.

capital.

expansion program. Underwriters—Wood, Gundy & Co.,
Ltd. (in Canada), and Kidder, Peabody & Co. and Dominick & Dominick (in United States).
Jan. 25 filed 4,007,584 shares of common

.

(A. J.)

& Hoverson Co.

'

112,500 shares of common stock

(par $I)J
Prior—To be supplied by amendment. Underwriter—
Slilsa Fairman & Harris. Inc., Chicago. TIL Proceeds—
1*0: eight selling stockholders. Withdrawal—Request to;
Iraw statement filed

on

May 22.

I link-Belt Co., Chicago, III.

May:5 filed 21,636 shares of common stock (par $5), tobe|<#fered to a select group of officers and employees of!
th^pompany and its subsidiaries. Price—$35 per share.
Proceeds—For working

capital.

Underwriter—None.

Elizabeth, N. J.
21 (letter of notification) 299,000 shares of common
(par 10 cents).
Price—$1 per share.
Proceeds—
fofcfworking capital and general corporate purposes.
Btliiiness—Manufacture and sale of liquors. Underwriter
^- London & Co.,

-

Rt

Pn

Inc.,

TSJg\a7

Vnrk

Number 5120

175

Volume

The Commercial and Financial Chronicle

.

.

.

43

(2271)
!

ir Magar Home Products, Inc., Geneva, III.
May 22 (letter of notification) 3,000 shares of
stock

Porter

Price—At market (approximately
75 cents per share).
Proceeds—To T. E. Myers, the
selling stockholder.
Office^—15 South First Street, Ge¬
neva, 111.
Underwriter—Reynolds & Co., New York,
and

Chicago, 111.

Baskett. La&- Angeles,Calif„:
May 14 (letter of notification) 19,16L shares of
stock

(par 50 cents).

—For

Price—$11.50
corporate purposes.

general

share.

per

common

Proceeds

^Eastern Ave., Los Angeles 22, Calif.

South

Underwriter—None.

Los

Angeles, Calif., will be "engaged
public.

Northern States

-

Power Co.

Proceeds

For

—

be

construction

Halsey,

and

bonds dated March 1, 1952 and due March

.

•

Inc., Utica, N. Y.

of record June 5 at rate of

Pipe & Supply Co., Inc. (6/9)
May 19 filed 100,938 shares of common stock (no par).
/Price—To be supplied by amendment.
Proceeds—To go
.to
;

selling stockholders.

Underwriter—G.

H.

Walker &

Co., St. Louis and New York.

Corp., Bay town, Tex.
;May 12 (letter of notification) 1,200,000 shares of
stock

mon

(par 1 cent).

Price—25 cents

per

com¬

share.

drilling and exploration expenses and work¬
ing capital. Underwriter—I. J. Schenin & Co., New York.

*if Monty's Stores, Inc., Seattle, Wash.
i
May 16 (letter of notification) $100,000 of 7% 10-year
.convertible bonds (in denominations of $500 and
$1,000
and

10,000

shares of common stock (par $10).
Proceeds—For working capital and exOffice—208 Third Ave., South, Seattle, Wash.

Price—At par.

"pansion.
•

<

j

Underwriter—National Securities Corp., Seattle, Wash.
Morrow (R. D.) Co., Inc.,

Pittsburgh, Pa.
May 5 (letter of notification) 10,000 shares of 5% cumu¬
convertible preferred stock.
Price—At pgr ($10

lative
•

share).

per

:

«

Proceeds—For financing of Master

an-*

tenna systems in apartment houses on a lease
basis and
for additional working capital.
Underwriter—Graham &

if Motion Picture Advertising Service, Inc.
May 22 (letter of notification) 20,487 shares of common
stock

(no par) to be offered first to stockholders. Price—
"To stockholders, $8 per share, and to
public, $8.50 per
share.

Proceeds—For

Office—1032

expansion

of

film

production.

Carondelet

St., New Orleans, La. Under¬
writer—Howard, Weil, Labouisse, Friedrichs & Co., New
'
'Orleans, La.
:
.

★ Motors Metal Manufacturing Co., Detroit, Mich.
May 19 (letter of notification) 16,451 shares of common
stock (par $5), to be issued to
employees from time to
,time upon exercise of stock options. Price—95% of mar;ket value.

Proceeds

For

general corporate purposes.
'Office—5936 Milford Ave., Detroit 10, Mich. Underwriter
—

—None.
,

•

National Alfalfa

Dehydrating & Milling Co.

April 7 filed 69,800 shares of
.be

offered

for

subscription

stockholders in ratio of
10 shares of

share.

per

preferred

one

or

common

by
new

common

common

Proceeds—To acquire

ness—Manufacture

and

sale

Underwriter

of

—

common

share for. each

stock held.

alfalfa

meal.

! Busi¬

National CMorophyllv & Chemical Co.
A]iril 7 filed 349,000 shares of common stock

■

(par $1)

subscription by preferred and

common

stockholders of National Alfalfa

Dehydrating & Milling
share of National Chlorophyll comr

one

'

for

each

two shares of National Alfalfa
preferred
presently held in conjunction with offer by
National Alfalfa company of its own stock.
National
Chlorophyll shares are to be offered for subscription
mon
or

as part of a unit or package
consisting of
tional Alfalfa share at $9 per share and five

(National
1

price per

one

Na¬

sharps of

Ch3orophyll stock at $2 per share, or a total
unit of $19. Proceeds—To purchase from Na-

^tional Alfalfa its existing chlorophyll extraction^ia^p-

*ities and inventory and for construction of

ing plant
Statement

Office—Lamar,
effective

Colo.

new

extract¬

Underwriter— Nohe.

v*

May 22.

"!

Vif.

.

■5# New British Dominion Oil Co., Ltd. (6/3)
•;*>§
April 28 filed 1,000,000 shares of capital stock
(par1#
cents—Canadian) and an additional 150,000 under option
the

underwriter.

Price—To

be supplied by amend¬
exploration and development of
prospective and proved oil and gas lands.. Officer-Cal¬
ment.

Proceeds—For

gary, Alta., Canada.

York,

for

writers.

part

of

...

Underwriter

issue;

balance

—

by

Allen

&

Co.,' Ne|v
Canadian under¬

~

New England Power Co.
■""#§
;May 28 filed $5,000,000 of first mortgage bonds, series
-E, due June 1, 1982.
Proceeds—To repay bank loa$s
and

for

new

construction.

Underwriters—To be detef.mined by competitive bidding. Probable
bidders:^Ha|sey, Stuart & Co. Inc.; Lehman
Brothers; Blyth &

C6.,

Inc.; Equitable Securities Corp. and Blair, Rollins & Go.
Inc. (jointly); Merrill
Lynch, Pierce, Fenner & Beane;
Harriman Ripley & Co.,
Inc.; The First Boston
Cor§.;
Kuhn, Loeb 8c Co.; Union Securities Corp. and
Bros.

&

White.

New

Hutzler

Salomon

(jointly); Kidder, Peabody & Cal/ahd
(jointly).
.? M

Weid & Co.
Mexico

Jockey Club, Albuquerque, N.

March 17 filed 1.255 shares of

Price—At par.
for

common

stock

(par

Mif

$1;0&6).

Proceeds—To construct racing plant and

working capital.

Underwriter—None, but Dr/.Jlttiftk




new

bonds and 26,250 shares of common stock
(no par) to be offered in units of a $500 bond and 75
cents shares of stock.
Price—$525 per unit.
Proceeds
—400 West Madison

Street, Chicago 6, 111.

21

filed

•stock, series
loans

and

160,000
B

(par

for

new

shares

$50).

Underwriter

cumulative

Proceeds—To

construction.

preferred

reduce

bank

Underwriter—To

'•

a.m.

on

June

($5
mining

Pacific Gas &

Electric Co.

May 21 filed 2,271,300 shares of
to

&

June

—To

(6/16)
common

stock

and

stock
per

Underwriter—None.

Corp.
Feb. 5 (letter of
notification) 60,000 shares of common
stock (par $1) and 30,000 warrants to
purchase 30,000
shares of
per

of two

stock (warrants exercisable at $7.50
prior to April 1, 1954).
Each purchaser

common

share

on

or

shares will receive

common

$5 per share.
Oklahoma

one

warrant.

Proceeds—For working capital.

City, Okla.

Price—

Office—

Underwriter—George F. Breen,

New York..

pire

June

on

4.

Dealer-Manager

Graham Parsons &

Co., New York.

Hemphill, Noyes,
Statement effective

—

April 18.
if Pittsburgh-Des Moines Co.
May 20 (letter of notification) 1,220 shares of
stock to be offered to

employees.

common

Priee—$49.25 per share;

Proceeds—For

working capital. Office—Neville Island,
Pittsburgh 25, Pa. Underwriter—None.
if Pittsburgh-Des Moines Steel Co.
May 20 (letter of notification) 1,220 shares of beneficial
interest in the company's employees' trust fund. Price—
$19

per

share.

Proceeds—For

working

Office—Neville Island, Pittsburgh 25, Pa.

capital,

etc.

Underwriter—

Power Condenser &

2

Under¬

April 3.

new

construction. Underwriters

by

Bids—Expected June 11.

Price—At

par

($1

per

share).-Proceeds—To

ex¬

Association, Boston, Mass. (letter of notification) 200 shares of common
(no par). -Price—At market (approximately $19

share).

Proceeds—To Walter S. Bucklin, the selling

Underwriter—Paine,
Curtis, Boston, Mass.

Webber,

Jackson

&

Signal Mines, Ltd., Toronto, Canada
March 17 filed 600,000 shares of common stock of which

500,000 shares

are for account of company.
Price—At
($1 per share). Proceeds—For exploration and de¬
velopment costs and working capital.
Underwriter-

par

^

Securities

Northeastern

Ltd.

~
f

*

(letter of

Electronics

notification)

-

Southern

Co., Wilmington, Del. (6/18)
May 16 filed 1,004,510 shares of common stock (par $5)
to be offered by company for subscription by common
stockholders

of record June

of

increase
their

19 at rate of

held; rights to expire

Price—To be fixed

To

by

company on

investments-in

construction

subsidiaries

programs.

share for

one

about July 10.
June 16. Proceeds—
on or

in

furtherance

Underwriters

—

To

be

determined

by competitive bidding. Probable bidders:
Lehman Brothers; Morgan Stanley & Co.; Kidder, Pea¬
body & Co. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); Blyth & Co., Inc.; Union Securities Corn, and
Equitable Securities Corp. (jointly); The First Boston
Corp.; Harriman Ripley & Co. Inc. Bids—To be received
up to 11:30 a.m. (EDT) on June 18.

if Southern New England Telephone Co. (6/24)
May 27 filed $15,000,000 of 33-year debentures due July
1, 1985. Proceeds—To repay indebtedness to American
Telephone & Telegraph Co.

Underwriters—To be deter-*
Probable bidders: Halsey,

mined by competitive bidding.

Stuart & Co. Inc.; White, Weld & Co. and Kidder, Pea¬
body & Co. (jointly); Blyth & Co., Inc., The First Bos¬
ton Corp.; Lehman Brothers and Salomon Bros. & Hutz¬
ler

(jointly);

be received

Corp.

$285,000

of

10-year

5%

income notes due May 1, 1962, and 11,400 shares of com¬
mon stock (par $1), to be sold in units of one
$1,000 note
and 30 shares of common stock.
Price—$1,000 per unit.
Proceeds—For

Boston, Mass.

working capital. Office
Underwriter—None.

—

60

State

*■

Socony-Vacuum Oil Co., Inc.
May 9 filed $15,000,000 of interests in Employees Sav¬
ings Plan and 300,000 shares of capital stock purchas¬
able under the plan. Underwriter—None.
7

Morgan

Stanley & Co.; Merrill Lynch,.
Bids—Tentatively scheduled to

Pierce, Fenner & Beane.

None.

May

determined

each 16 shares

Pittsburgh Coke & Chemical Co., Pittsburgh, Pa.
^March 28 filed 142,129 shares of common stock (no par)
being offered in exchange for 118,441 shares of Great
Lakes Steamship Co., Inc., common
stock, held by others
than Pittsburgh Coke, which owns an additional
61,109
shares. The offer, which is on a 1.20-for-l
basis, will ex¬

Uranium mining.

stockholder.

(no par). Price—Preferred, $50 per share; and
common,
$20 per share. Proceeds—For business expansion. Office

St., Cleveland, O.

—

Shawmut

if Pests Foods, Inc., Cleveland, O.
May 23 (letter of notification) 2,000 shares of 5% cumu¬
lative preferred stock and 1,650 shares of common
stock

Finance

Business

Statement effective

April 30

Underwriter—None.

Petroleum

Price—At

plore for and develop tungsten, silver and gold properties.
Address—Box 1364, Missoula, Mont. Underwriter—None.

Marjorie L. Bratter, the selling stock¬
National Bank Bldg., Santa Bar¬

—3305 West 65th

be

.stock.

Inc., San

Office—First

bara, Calif.

*

if Rock Creek Tungsten Co., Missoula, Mont.
May 21 (letter of notification) 20,000 shares of common

Corp., Santa Barbara, Calif.
(letter of notification) 17,500 shares of capital
(par $1).
Price—At the market.
Proceeds—To
M.

purposes.

Hutzler.

Palmer Stendel Oil

9

'

(6/17)

competitive bidding. Probable
bidders:
Halsey, Stuart & Co. Inc.; Lehman Brothers;
The First Boston Corp.; Union
Securities Corp. and
Equitable Securities Corp. (jointly);' Salomon Bros. &

rights to expire July 2. Warrants will be mailed about
June 13, with subscription
period to open June 16. Price
—To be supplied by amendment.
Proceeds—For con¬

May

Gas Go.

share). Proceeds—For exploration and other

per

due 1982. Proceeds—For

Co.

struction program.
Underwriter—Blyth & Co.,
Francisco and New York.

held.

• Rochester Gas & Electric Co.
(6/11)
May 15 filed $6,000,000 of first mortgage bonds, series N,

stock (par $25)
offered for subscription to stockholders of record
10 in ratio of one share for each five shares
held;

be

Service Electric &

writer—None.

16.

Underwriter—Carnes

Public

par

Old Dominion

investment.

shares

Proceeds—For

Feb. 15 filed 100,000 shares of common stock.

Investors Trust, Inc.,
Suffolk, Va.
May 19 filed 450 shares of capital stock (par $750). Price
—First at $1,020 per share; than at market. Proceeds—
For

amendment.

Ridley Mines Holding Co., Grafton, N. D.

by competitive bidding. Probable bidders:
Kuhn, Loeb & Co., Harriman Ripley & Co., Inc. and
iLehman Brothers
(jointly); Stone & Webster Securities
Corp.; Shields & Co. Bids—Tentatively scheduled to be

to 11

by

Underwriter—Allen & Co., New York.

be

determined

received up

supplied

May 21 filed $40,000,000 of debenture bonds due June 1,
1972.
Proceeds—For new construction and general cor¬
porate purposes. Underwriters — To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Morgan Stanley & Co., Drexel & Co. and
Glore, Forgan & Co. (jointly); Kuhn, Loem & Co. Bids—
To be received up to 11 a.m. (EDT)
on June
17 at
80 Park Place, Newark, N. J.

Office

(6/16)
of

be

construction.

(par $5)

stockholders

Public Service Electric & Gas Co* (6/11)
May 21 filed 700,000 shares of common stock (no par).
Price—To be supplied by amendment.
Proceeds—For
general corporate purposes.
Underwriters — Morgan
•

—None.

Oklahoma Natural Gas Co.

offered for subscription by common
of one new share for each seven

Stanley & Co.; Drexel & Co.; and Glore, Forgan & Co.

debenture

bank loans and for working capital.

deter¬

be

•

•

repay

rate

Price—To

share. Proceeds—To
Underwriters—M. H. Bishop &
per

it Nursmatic Corp., Chicago, III.
"May 21 (letter of notification) $175,000 of 5V2%
10-year

common

only

common

be

at

selling stockholders.
Co., Minneapolis, Minn., and Irving J. Rice &
Co., Inc.,

—To

Underwriters—To

if Public Service Co. of New Mexico
May 28 filed 173,136 shares of common stock

on

St. Paul, Minn.

Edward

^

Price—$8.75

two

holders.

.•

] Co. in ratio of

(par $2.50).

effective

'

to be offered for

stock

Office—

Statement

(CDT)

a.m.

Northwest Plastics, Inc., St.
Paul, Minn.
"April 18 (letter of notification) 2,100 shares of

Price—$9

at $2 per share.

None.

May 22.

(par $1) to

and

305,000 shares of Na¬

tional Chlorophyll & Chemical Co.
'Lamar. Colo.

stock

preferred

10:30

to

"May

Co., Pittsburgh, Pa.

'

at

Pro¬

ceeds—For

each)

opened

program.

competitive bidding. Probable bidders: Halsey,
Inc.;, Kuhn, Loeb & Co., Salomon Bros. &

petitive bidding.
Probable bidders: The First Boston
Corp.; Kidder, Peabody & Co. and Blyth & Co., Inc.
(jointly); Harriman Ripley & Co., Inc.

Lynch, Pierce, Fenner
Kidder, Peabody & Co. and White, Weld & Co.
Bids—To be

Inc., New York.

May 28 filed 50,000 shares of preferred stock (par $100).
Proceeds—For new construction and to
repay short-term
borrowings.
Underwriter—To be determined by com¬

•

June 4.

& Co.,

■'if Public Service Co. of New Hampshire

ex¬

Proceeds—For construction program. Underwriters—To be determined by competitive
bidding.
Probable bidders: Smith
Barney & Co.; Lehman Brothers
•and Riter & Co.
(jointly); Merrill

(jointly).

preferred

and Union Securities
Corp. (jointly); Blyth 8c
Co., Inc.; The First Boston Corp.; Glore, Forgan &
Co.;
Merrill Lynch, Pierce, Fenner &
Beane, Kidder, Peabody
& Co. and White, Weld & Co.
(jointly); Harriman Rip¬
ley & Co. Inc. Bids—Expected to be received on June 25.

pire June 23.

& Beane,

Montex Oil & Gas

(6/17)

cumulative

Hutzler

share for each 10 shares

one

oversubscription privilege); rights to

an

of

Stuart & Co.

White, Weld & Co. (jointly). Bids—Expected to be
10:30 a.m. (CDT) on June 10.

held (with

Midwest

construction

mined by

Northern States Power Co. (Minn.)
(6/4)
May 1 filed 1,108,966 shares of common stock (par $5)
to be offered for subscription
by common stockholders

par

'

;

for

opened at

1, 1967. Price
and accrued interest. Proceeds—For building
program.
Underwriter—Mohawk Valley Investing Co.,

—At

Indiana, Inc.

• Public Service Co. of Indiana, Inc.
(6/25)
May 28 filed $25,000,000 of first
mortgage bonds, series J,
due July 1, 1982.
Proceeds—To repay bank loans and

by
competitive
bidding.
Stuart & Co. Inc.; Smith,
Barney & Co.; Equitable Securities Corp.; Union Secu¬
rities Corp.; The First Boston Corp.; Glore, Forgan &
Co.; Lehman Brothers and Riter & Co', (jointly); Merrill
Lynch, Pierce, Fenner & Beane, Kidder, Peabody & Co.

Co.,

800,000

construction.

determined

bidders:

filed

Underwriter—Blyth

Under¬

program.

shares

28

(par $25).
Price—To be supplied by amendment.
Proceeds—To repay bank loans and for new

(Minn.)

(6/10)
May 1 filed $21,500,000 first mortgage bonds due June 1,
1982.

of

May
stock

Inc., East Rutherford, N. J.
May 22 (letter of notification) $18,000 of first mortgage

if Matheson

•

4c Public Service Co.

Statement effective

April 5 through lapse of time. Amendment necessary.

Probable

Office—6014

of

securities to the

writers—To

,

Market

„

Miller

to sell the

common

(par one cent).

on

June 24.

•A- Spokane Cleaners, Inc., Spokane, Wash.
May 7 (letter of notification) $300,000 of debenture
bonds. Price—At par (in denominations of $1,000 each).
Proceeds—For construction and equipment.
Office—W.

St.,

Continued

on

page

44

.

44

The Commercial and Financial Chronicle

(2272)

Continued from page
150

First

it Tri-State Petroleum Co., Inc.
May 19 (letter of notification) 300,000 shares of common
stock (par 25 cents). Price—$1 per share• Jroceeds-For
oil well development in New Mexico. Office—407 Ship¬

43

Ave., Spokane 4, Wash.

Underwriter—Arthur

Lauck.

ley St., Wilmington 1, Del.

it Spokane Mining Syndicate, Inc.
May 13 (letter of notification) 27,500,000 shares of com¬
mon stock,
of which 15,000 shares are to be issued to
Henry T. Born, President. Price—At par (one cent per
tfhare). Proceeds—For equipment and development. Of¬
fice—730 Peyton Bldg., Spokane, Wash. Underwriters—
M. A. Cleek and J. Russell Tindell, both of Spokane,

Tri-Tor Oils,

ural gas.

it United Dye & Chemical Corp,
May 22 (letter of notification) 500 shares

Standard Oil Co. of California

of 7% cumu¬
stock (par $100).
Price—At market
(estimated at about $56 per share). Proceeds—To Amer¬
ican Dyewood Co., a wholly-owned subsidiary. Office—
285 Madison Ave., New York, N. Y. Underwriter—None.
lative

writer—None.

(Ohio)

which
chased pursuant to the terms of the plan.
the

of

company

be pur¬

may

•

•

Stanley Works, New Britain, Conn.
April 22 (letter of notification) 6,000 shares of common
stock (par $25) to be offered to employees exclusive of
directors.
Price
Approximately $50 per share. Pro¬
ceeds—For working capital.
Office—Lake Street, New
•Britain, Conn. Underwriter—None.

(with an oversubscription privilege); rights to ex¬
pire on June 9. Price—$21.75 per share. Proceeds—For
construction
Securities
Warren

-

owned.

tures

Sun Oil Co.

April 29 filed 13,000 memberships in the stock purchase
plan for employees of company and its subsidiaries, to¬
gether with 96,000 shares of common stock. In addition,

writer—None.

Statement effective

May 16.

'Tampa Electric Co. (6/3)
May 2 filed 50,000 shares of series A cumulative pre¬
stock (par $100) and 60,000 shares of common

ferred

stock (no par).
new

Proceeds—To repay bank loans and for

construction.

Underwriters—To be determined by
bidding.
Probable bidders: Blyth & Co.,
Inc.; Kidder, Peabody & Co.; Stone & Webster Securities
Corp., Goldman, Sachs & Co.; White, Weld & Co. Bids—

competitive

To

be

received

Federal

St.,

to

up

Boston,

11

(EDT)

a.m.

June 3 at 49

on

Mass.

tions of the company to be invested in two
plans, viz:
Class A, consisting of U. S.
Savings Bonds; and Class B,

consisting of investments in Tennessee Gas Transmission
Co. securities and securities of other
companies and in¬

Underwriter—None.

• Texas Co.

Statement effective

it Thompson Creek Coal & Coke Corp.
May 15 (letter of notification) 30,000 shares
stock.

Price

of

common

($1 per share). Proceeds
For
equipment and mining capital. Address—P. O. Box
7772,
Denver 15, Colo. Underwriter—None.
:
—

Tiger Tractor Corp./Keyser, W. Va.
May 13 (letter of notification) 180,000 shares of
(par

common

10

cents). Price—$1 per share. Proceeds—
For working capital. Office—East and
Mozelle St., Keyser, W. Va.
Underwriter—None.
>

Trans-America Petroleum
Corp.; Shreveport, La.
May 13 (letter of notification) 599,000 shares of common
stock (par 10). Price—50 cents
per share. Proceeds—To
:

drill well.

Underwriter—Weber-Millican Co., New York.

Trans-Canada

Petroleums, Ltd., Montreal, Canada

May 1 filed 1,000,000 shares of

common

stock

(par $1).
J»rice—$1.50 per share. Proceeds—For exploration and
drilling. Underwriter—Mallinson Weir,
Inc., New York.

it Transport Insurance Co., Dallas, Tex.
May 21 (letter of notification) 10,000 shares
stock (par $10).
crease

capital

Price—$20

stock

St., Dallas, Tex.

and

per

share.

ing capital.

(par $10).

stock.

common

Price—$110

surplus.

of

capital

Office—1410

Dragon

8

Underwriter-None.

Price—$20

per

share.

crease

capital and surplus. Office
Dallas, Tex. Underwriter—None.

—

1410

Dragon St.,

*Tri"State Contractors,

Office—1500 S. E. Gideon St., Portland. Ore.

Western Pacific Insurance Co., Seattle, Wash.
April 21 (letter of notification) 13,018 shares of common
stock. Price—$20 per share. Proceeds—To qualify com¬
pany as a multiple line insurance carrier and to increase
surplus. Office—Artie Bldg., 3rd and Cherry Sts., Seat¬
tle, Wash. Underwriter — Daugherty, Buchart & Cole,
Seattle, Wash.
'

WJR, the Goodwill Station, Inc., Detroit, Mich.

May 14 (letter of notification) 9,300 shares of common
stock (par $1.25).
Price—$10.75 per share. Proceeds—
To Frances Richards, the selling stockholder. Underwrit¬
ers
Straus, Blosser & McDowell, Chicago, 111.; and
Smith, Hague & Co., Detroit, Mich.
Workers

Inc., Walla Walla, Wash.
(letter of notification) 299,999 shares of
common
Price
At par ($1 per
share). Proceeds—For pur¬

chase

of

penses.

tractors

Office

and

309

E.

Underwriter—None.




trucks

and

other

Birch

St.,

Walla

operating

Walla,

ex¬

Wash.

time

com¬

coming

be

may

it Bailey Selburn Oil &, Gas Co., Ltd.
May 20 it was reported this company, which will be the
result of a merger of Selburn Oil Co., Ltd., and six other
oil companies operating in western Canada, may issue
and sell

approximately 1,000,000 shares of common stock.
Underwriters—Reynolds & Co., New York (for about
60% of the issue) and McLeod, Young, Weir, Inc., New
York

•

(for about 40% of issue).

Registration—Expected

future.

near

Baltimore & Ohio

RR.

(6/4)

Bids will be received by the company up to noon
on June 4 for the purchase from it of
$3,960,000
ment

(EDT)
equip¬

trust

certificates, series EE, dated June 1, 1952
annually to June 1, 1967, inclusive. Probable
bidders: Halsey, Stuart & Co. Inc.; Bear, Stearns & Co.;
due

Salomon Bros. & Hutzler.
Banff Oil

Co., Ltd.

(Canada)
plans to issue and sell
an issue of about 1,000,000 shares of common stock. Pro¬
ceeds—For drilling and exploration costs.
Registration
—Expected early in June with offering later in month.
Underwriter—Lehman Brothers, New York.
May 6 it

reported

company

Electric

Power

was

California

May 8 it

Co.

reported company plans to issue and sell
between $4,000,000 and $4,500,000 first mortgage bonds
by competitive bidding and about $2,500,000 of preferred
stock

was

and

$2,500,000 common stock probably through
sale.
Probable bidders for bonds: Halsey,
Stuart & Co. Inc. and Merrill Lynch, Pierce, Fenner &
Beane (jointly); Salomon Bros. & Hutzler. Underwriters
for stock: Probably William R. Staats &
Co.; Lester,
Ryons & Co.; and Walston, Hoffman & Goodwin.
negotiated

Canadian Palmer Stendel Oil

April 18 it
stock

Corp.

v,

reported that 1,820,857 shares of

was

to be offered

are

common

for

subscription by stockholders
of Palmer Stendel Oil Corp. on a l-for-2 basis. Price—
At par (25 cents per share). Underwriter—Burnham &
Co., New York.
Central
March

Hudson

it

4

Gas

Electric Corp.

&

reported

was

plans the sale this
about $5,500,000 first mortgage bonds.
Latest
financing was done privately in March, 1951
through Kidder, Peabody & Co.
Fall

company

of

Central Maine Power Co.

May 15 stockholders increased authorized common stock
(par $10) from 2,500,000 shares to 3,250,000 shares and
preferred stock (par $100) from 300,000 shares to 330,000
shares.
sary
•

It is

this

Co., Du Bois, Pa.
May 16 (letter of notification) $200,000 of 10-year 6%
convertible subordinated debentures due May 15, 1962.
Price—At par (in denominations of $500 each) and ac¬
crued interest. Proceeds—For working capital. Office—
19 West Long Ave., Du Bois, Pa. Underwriter—Blair F.
Claybaugh & Co., Harrisburg, Pa.

estimated

that

will be in

year

additional

excess

financing

neces¬

J',

of $8,500,000.

Chicago & North Western RR.

(6/12)
May 16 company sought ICC permission to issue and
sell $6,555,000 of equipment trust certificates to be dated
July 1, 1952, and to mature in 15 annual instalments.
Probable

bidders:

Halsey, Stuart & Co. Inc.; Bear,
Co.; Salomon Bros. & Hutzler. Bids—To be

Stearns &

Loan

received up to noon (EDT) on June 12 at 400 West Madi¬

Street, Chicago 6, 111.

son

Cincinnati

May 16 it
be

made

Enquirer
reported that

was

for

this

a

newspaper

bid of $7,500,000 cash will
a group of its former

by

employees, to be raised through the sale of $6,000,000
of bonds through Halsey, Stuart & Co. Inc., and by sale
of

estimated

an

$2,500,000 of common stock in addition
$910,000 already pledged by certain employees.
that more than $500,000 has been pledged
outside the paper. The Cincinnati "Times-Star" has also
to about

Prospective Offerings

It

stated

was

Aeroquip Corp.
Jan. 4, Don T. McKone, Chairman, announced that con¬
sideration was being given to the possibility of
equity
financing. On Feb. 18, stockholders voted to increase the

made

authorized

shares

common

stock to 1,000,000 from 750,000 shares,

writer—Watling Lerchen & Co., Detroit,
ceeds—For additional working capital.
Allis-Chalmers

May ,12 it
the

Pro¬

reported company
qf. .which, has not

may

yet

Underwriter—Blyth & Co., Inc.;

do

some

been

7

financing,

determined.
'k

'

authorized
000

common

,

proposal to increase the
stock (par $5) from 330,000 to
430,a

shares and approved a

waiver of preemptive rights
subscribe for any of the additional shares.
Proceeds
—To finance purchase of
equipment and terminal and
warehouse facilities. Traditional Underwriter—F. Eberto

stadt &

Co., Inc., New York.

Arkansas
March 14 it
of

May

the

13

increase

$7,500,000.

Utilities

Co.

*

stockholders

the

authorized

approved

common

a

stock

proposal» to
from >400,000

(par $1) to 2,000,000 shares (par 33cents) in
order to provide for a 3-for-l split-up of the present
outstanding 283,729 shares of common. stock and to per¬

the issuance Of

common

advantage of any opportunities
property .acquisitions requiring
shares.

Traditional Underwrite?

—Lee Higginson Corp., New York.,

/.

,

" '

/

Columbus & Southern Ohio Electric Co.

I

was announced company expects to enter the
permanent financing market about the middle of 1952
with r ot les3 than 200,000 shares of new common stock.

Proceeds

—

For

Dillon Read &

construction

program.

Light Co.

determined

by competitive bidding. Probable bid¬
Halsey, Stuart & Co. Inc.; Equitable becuritiea
Corp., and Central Republic Co. (Inc.) (jointly); LehmaD
Brothers and Stone & Webster Securities
Corp. (jointly);
Union Securities Corp.; Merrill
Lynch, Pierce, Fenner

Beane; Blyth & Co., Inc.

/

—

7 '

it Commonwealth Edison Co., Chicago, III. (7/15)'
May 27, Charles Y. Freeman, Chairman, announced that
it may be advisable to make an offering of mortgage
struction.

reported company plans sale in October
$12,000,000 first mortgage bonds.
Underwriters—To

Underwriter

Co., Inc., New York.

bonds about the middle of July.

Power &

was

ders:

&

bid of

April 26 it

•

American Barge Line Co.
May 27 stockholders approved

a

Citizens

mit the company to take
which may develop for

v

Manufacturing Co/ '

was

nature

Under¬

Mich.

May 21
stock.

that

report

bond

be

capital
Proceeds—To in¬

President, said in the
"the

annual

additional

per

U nder writer—N one.
'

Proceeds—To in¬

it Transport Management Co.,
Dallas, Tex.
May 21 (letter of notification) 5,000 shares of
stock

f

and to issue 37,500 shares as a 5% stock dividend.

•

stock

Ore.
shares of preferred
of class B common
of one share of pre¬

,

financing will be required to supple¬
ment retained earnings available for capital, expend¬
itures." The amount and timing of such financing can¬
not be presently announced. Traditional Underwriter—
Smith, Barney & Co., New York.

unit. Proceeds—For machine shop reservation and work¬

May 16.

At par

—

Underwriter—None.

already made.

ferred and 100 shares of

April 18 filed $30,510,000 of participations under the Em¬
ployees Savings Plan together with 540,000 shares of
capital stock (par $25) which may be required by the

Trustee under the Plan.

share and accrued dividends.
expendi¬

To reimburse treasury for capital

—

—

it Tennessee Gas Transmission Co.
May 26 filed $800,000 of employees funds, plus contribu¬

vestment funds.

Telephone Co.

it Western Faucet Co., Portland,
May 14 (letter of notification) 1,000
stock (par $100) and 100,000 shares
stock (no par) to be offered in units

ers—Reynolds & Co., New York, and Oscar E. Dooly &
Co., Miami, Fla.

!

Webster

—

Underwrit¬

169,262 shares of outstanding stock to be offered "for
possible public sale"- by 11 selling stockholders. Under¬

&

it West Virginia Production Co., Charleston, W. Va.
May 28 filed 300,000 shares of cumulative preferred stock
of $1 par value (convertible after Dec. 31, 1955).
Price
To be supplied by amendment.
Proceeds — To drill
wells and acquire acreage.
Underwriters—Allen & Co.,
New York; and Shea & Co., Inc., Boston,
Mass.r; ' ?

shares, to be supplied by amend¬
ment; of 15,000 shares by company, $10.62 y2 per share.

•

(Ohio)

Price—At $100 per

Proceeds

JPrice—Of first 200,000

corporate purposes.

Underwriter—Stone

April 30 (letter of notification) 3,000 shares of $5 divi¬
dend preferred stock (no par) to be offered to stock¬
holders in ratio of 0.21676 shares for each share already

• Storer
Broadcasting Co. (6/11)
May 19 filed 215,000 shares of common stock (par $1),
•of which 200,000 shares are being sold by certain selling
stockholders (170,000 to be offered publicly and 10,000 to
certain employees; and 20,000 shares to the underwriters
under option agreement) and the remaining 15,000 shares
being reserved for sale by company to certain employees.

Proceeds—For general

program.

Corp., New York.

financing for approximately $3,000,000

pany's

and

held

it Sterling Oil of Oklahoma, Inc.
May 20 (letter of notification) 5,000 shares of common
stock (par 10 cents). Price—At market (approximately
$3.50 per share). Proceeds — To Sterling True, Vice-

Virginia Electric & Power Co.

Thursday, May 29, 1952

.

Atlantic Refining Co.
March 21, Robert H. Colley,

in

May 1 filed 494,642 shares of common stock (par $10)
being offered for subscription by common stockholders
of record May 23 at rate of one share for each 10 shares

—

Underwriter—None.

Phoenix, Ariz.

May 14 (letter of notification) 500,000 shares of common
stock (par 25 cents). Price—40 cents per share. Proceeds
—To expand milling facilities,
Underwriter — Hunter
Securities Corp., New York. Offering—Now being made.

April 24 filed $2,025,000 interests in the Sohio Employees
Investment Plan together with 30,000 common and 6,750

President.

preferred

it U. S. Manganese Corp.,

Standard Oil Co.

shares

and
nat¬
Underwriter—Peter Morgan & Co., New York.

At par ($1 per share). Proceeds—For construction
drilling expenses. Business—Production of oil and

May 5 filed $55,000,000 of interest in the Stock Plan
for Employees of company and participating companies,
together with 1,000,000 shares of capital stock of the
company in which Plan funds may be invested. Under¬

preferred

Ltd., Montreal, Canada (6/3)
of common stock. Price—

Debt

.

planned in 1953.

when

May 9 filed 1,000,000 shares

Wash.
<

Underwriter—Calvert Securi¬

Wilmington, Del.

ties Corp.,

New York.

.

Underwriters

—

Proceeds—For

new con¬

May be determined by

com¬

petitive bidding.

Probable bidders: Halsey, Stuart & Co.
Inc.; Glore, Forgan & Co.; The First Boston Corp.
Connecticut Light & Power Co.
March 1 it

was announced that it is presently estimated
approximately $11,000,000 of additional capital will
be required during the latter half of 1952.

that

Consolidated Gas,
Baltimore

Electric Light & Power Co. o1

Atlantic City Electric Co.
April 28 it was announced company, may sell about
$4,000,000 of preferred stock some time this Fall. Pro¬

stated that company plans to issue and sell
both stocks and bonds during 1952 to an amount suffi¬

ceeds—For construction program.

For

Underwriters—Prob¬

ably Union Securities Corp. and Smith, Barney & Co.,

Dec. 24 it

cient

was

to raise

bonds

approximately $22,000,000. Underwriters—'
be determined by competitive bidding.

to

Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld

•

Number 5120

Volume 175

.

,

,

The Commercial and Financial Chronicle

& Co. and The First Boston Corp.

(jointly); Harriman

Ripley & Co., Inc. and Alex. Brown & Sons (jointly).
The First Boston Corp., Alex. Brown & Sons and John C.
Legg & Co (jointly) handled latest common stock fi¬
nancing, while White, Weld & Co. handled last preferred
stock sale.
Proceeds—For new .construction.

Copperweld Steel Co.
April 30 stockholders approved a proposal to increase
the authorized indebtedness from $5,000,000 to $15,000,000 (none presently outstanding) and the author¬
ized preferred stock (par $50) to 137,727 shares from
37,727 shares, which are all outstanding. Traditional
Underwriter—Riter & Co., New York.
Creameries of America, Inc.

April 14, G. S. McKenzie, President, stated that the com¬
pany may do some long-term borrowing in about two
months to finance expansion program. Traditional Un¬
derwriters — Kidder, Peabody &' Co. and Mitchum,
Tully & Co.

!

Drewrys Ltd., U. S. A., Inc.
April 4 it was reported company may later this month
consider possible financing. Underwriters—Probably A,
C. Allyn & Co., Inc., Chicago, and Bear, Stearns & Co.,
New York.

Duquesne Light Co.
May 13 it was announced stockholders will vote July 8
on increasing authorized preferred stock (par $50) from
800,000 shares to 1,000,000 shares. Underwriters—To be
determined by Competitive bidding. Probable bidders:
The First Boston Corp.; Kuhn, Loeb & Co. and Smith,
Barney & Co. (jointly); Lehman Brothers; Kidder, Peabody & Co., Merrill Lynch, Pierce, Fenner & Beane and
White, Weld & Co. (jointly),

j

Empire District Electric Co.

April 8 stockholders increased authorized common stock
from 550,000
shares to 750,000 shares and voted to
change the limitation of the unsecured indebtedness
from 10% to 20%. New financing may be necessary in
connection with the company's plans to spend in the next
three years about $14,000,000 for new facilities.
Under¬
writers
Probably The First Boston Corp.; G: H.
VValker & Co.
;
/.'.-V,
,,.
;;.
—

Florida Power Corp.
Jan. 11 it was announced that additional financing will
be necessary to complete the company's construction

which is expected to cost about $28,000,000
contemplated that new capital needed will be
obtained from the sale of common stock and first mort¬
program

and it is

gage bonds. Company has borrowed $4,000,000 under a
bank credit recently arranged which provides for short-

term bank borrowings of not more than

$10,000,000. Pre¬
Cdmmon stock

vious bond financing was done privately.

be offered to common stockholders, with Kidder,
Peabody & Co. and Merrill Lynch, Pierce, Fenner &
Beane acting as agents.
may

*

Food Fair Stores,

Inc.
May 20 it was announced stockholders will vote Aug. 19
on increasing authorized indebtedness from $12,000,000
to $25,000,000 and to increase the authorized common
stock from 2,500,000 to 5,000,000 shares. No immediate
issuance of either debt securities or of common stock is
contemplated. Traditional Underwriter—Eastman, Dillon
& Co., New

1

York.

General Public Utilities Corp.
6 it was reported the corporation is expected to

sell this summer approximately 530,000
common

stock.

Stockholders

additional shares

April 7 rejected a

on

proposal to authorize issuance of common stock without
requiring preemptive rights. Underwriters—If stock is

in¬
In
July, 1951, Merrill Lynch, Pierce, Fenner & Beane acted
as clearing agent for an offering of common stock to
sold at competitive bidding, probable bidders may
clude:
Lehman Brothers; The First Boston Corp.

,

Co. handled sale of

stockholders.
• Georgia Power Co. (7/8)
May 27 company sought SEC approval to issue and sell
$20,000,000 of first mortgage bonds due 1982. Proceeds—
For new construction. Underwriters—To be determined

by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Morgan tSanley & Co.; The First Boston
Corp.; Lehman Brothers; Kuhn, Loeb & Co.; Blyth &
Co., Inc. and Kidder, Peabody & Co. (jointly); Shields
& Co. and Salomon Bros. & Hutzler (jointly); Union
Securities Corp. and Equitable Securities Corp. (jointly);
Harriman Ripley & Co., Inc. Bids—Expected on July 8
at 11 a.m. (EDT). Registration—Expected filed on June 6.
Glass Fibres, Inc.
April 7 stockholders voted to increase authorized com¬
mon stock from 1,000,000 shares (approximately 938,000
shares outstanding) to 1,250,000 shares to provide addi¬
tional stock for future expansion needs. Traditional Un¬
derwriter—McCormick & Co., Chicago, 111.

Feb. 27 T. E. Roach, President, announced that the com¬
pany's present plans consist of the sale this summer of
about 225,000 additional shares of common stock (par
$20), but no preferred stock. Price—At a minimum of
$35 per share net to company. Underwriters — Latest
common stock financing in April, 1949, was handled by
Blyth & Co., Inc.; Lazard Freres & Co.; and Wegener
& Daly Corp. Proceeds—To repay bank loans and for
•

May 21, stockholders approved proposal to increase the
authorized common stock from
1,390,511 shares (par
$100) to 3,500,000 shares (no par) in order to facilitate
possible future financing by means of convertible deben¬

26

stockholders

increased

authorized

common

shares (par
$7), placing the company in a position to consider from
time to time stock dividends and the giving of stock

rights or warrants to present stockholders. Underwriters
•—May include Westheimer & Co., Cincinnati, O. Previ¬
ous public financing handled by W. E. Hutton & Co. and
>W. D. Gradison & Co., also of Cincinnati.

May 14 directors authorized issuance and sale of approx¬
imately $14,265,550 of 31A% convertible debentures to be
dated July 1, 1952 and to mature June 30,, 1967, for sub¬
scription by common stockholders at rate of $3 principal

loans.

of debentures for each share

Proceeds—For

Registration

new

—

of

common

stock

construction and to retire bank

Expected in

writer—To be selected by company.




'

it plans to Issue
and sell in 1952 about $12,000,000 principal amount first
mortgage bonds (this is in addition to present preferred
and common stock financing. Underwriters—To be de¬
termined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Glore, Forgan & Co.; Blyth
& Co., Inc. and Lazard Freres & Co. (jointly); The First
Boston Corp.; White, Weld & Co. and Shields & Co,
(jointly); Smith, Barney & Co.; Kuhn, Loeb & Co., Sal¬
omon
Bros.
& Hutzler and Union
Securities Corp.
company

near

future.

Under¬

Kidder, Peabody &

stockholders

June 3 will

on

Nevada

Natural
Nevada

Feb.

8

Gas

Pipe Line Co.,

Las Vegas* ^

applied to FPC for authority to con¬
struct a 114-mile pipeline from
near Topock, Ariz., to
Las Vegas, Nev., at an estimated
cost of $2,400,880, to
company

£?J^nced by sale of $1,600,000

first mortgage bond*

announced

that

(jointly); Equitable Securities Corp.; Lehman Brothers
Bear, Stearns & Co. (jointly); Harriman Ripley &
Co., Inc. Proceeds—For new construction.

common stock.
New England Telephone &
Telegraph Co.
Dec. 20, F. A,
Cosgrove,

nent

Vice-President, said a perma¬
financing program will have to be undertaken In
about $43,000,000 short-term bank borrow¬

1952 to repay

ings. Underwriters—For bonds may be determined
by
competitive bidding. Probable bidders: Halsey, Stuart A
Co. Inc.; Morgan Stanley & Co. In case of
common stock
financing there will be no underwriting.
New

Jersey Power & Light Co.

April 8 it

was reported company plans
tentatively to
issue and sell $3,200,000 of bonds, $1,000,000 of
preferred

stock and

$400,000 of common stock (latter to be sold to
General Public Utilities Corp., parent). Underwriters-**

To be determined by
competitive
ders: Halsey, Stuart & Co. Inc.

bidding. Probable bid¬
(bonds only); Kidder.
Peabody & Co.; Smith, Barney & Co.; Union Securities
Corp.; Carl M. Loeb, Rhoades & Co.; Salomon Bros. A
Hutzler.

*

■

.

and

La Pointe Plascomold Corp.
April 21 stockholders authorized directors to offer, via
rights, 230,485 additional shares of common stock (par
$1) for subscription on a share-for-share basis (with up
to
40,000 unsubscribed shares to be offered to em¬
ployees ). Underwriter—May be selected by company.

Leitz (E.), Inc., New York (6/12)'
May 14 it was announced that Office of Alien Property,
346 Broadway, New York 13, N. Y., will up to 3 p.m.
(EDT) on June 12 receive bids for the purchase from the
Attorney General of the United States of the corpora¬
tion's 400 shares of no par common stock (total issue
outstanding). Business — Manufactures and distributes
photographic equipment and supplies. Bidders—May in¬
clude Allen & Co., New York.
Lone Star Gas Co.

April 1 the FPC authorized the company to acquire addi¬
tional properties at a cost of $5,598,129 and to build an
additional 69.5 miles of transmission line at a cost of

It is also planned to spend about $31,000,000
plant. Previous financing was
privately.
:
,'
\ ," -yv ■■
' .* < vv; '■

$4,010,200.
in

1952 for' additions to

done

.

.

(Glenn L.)

Martin

Co. (6/19)
May 16 directors authorized issuance and sale to com¬
mon
stockholders of about 1,020,806 additional shares
stock

at rate of nine shares for
expire
on July 11.
Price—$6 per share.
Proceeds—For work¬
ing capital, etc. Underwriter—None.
of

common

(par $1)

each 10 shares held

on or

(Glenn), Inc., Houston, Tex. .
reported early registration is expected
shares of common stock. Priee—To be sup¬
plied by amendment (probably at $2 per share). Underwriter—B. V. Christie & Co., Houston, Texas. •
•

was

Mercantile National Bank of Chicago

(6/3)

May 22 stockholders approved offer to common stock¬
holders of record May 19 of 25,000 shares on a l-for-21/^

basis; rights to expire June 23.
Proceeds—To increase

—Glore, Forgan
Co., Chicago.

&

Price—$25 per share.

capital and surplus. Underwriters

Co.,

New York,

and

The

Illinois

• Metals & Chemicals Corp., Dallas, Tex.
(6/30)
May 1 it was announced company plans registration of
200,000 shares of common stock (par 10 cents). PriceTo be supplied by amendment
(expected at $3 per
share). Proceeds—For new mill and equipment and
working capital. Underwriter — Beer & Co., Dallar,

Texas.

Offering—Expected around June 30.

Middle East Industries Corp., N.

Y.

expand its
future and to register itf
securities with the SEC preliminary to a large publie
Offering, the funds to be used to build new industrial
projects in Israel'.
Oct. 31

it

was

capitalization

announced company plans to

in

the

near

lyiinabi Exploration Co., Houston, Tex.
was reported early registration is expected
of 125,000 shares of common stock. Proceeds—To go to
certain selling stockholders. Underwriter — Moroney,
Beissner & Co., Houston, Tex.

March 21 it

Minneapolis, St. Paul & Sault Ste. Marie
at Room 1410, First
Minneapolis 2, Minn., up to
noon (CDT) on June 5 for the purchase from it of $2,850,000 equipment trust certificates to be dated July 1,
1952 and due semi-annually to July 1, 1967, inclusive.
Probable bidders: Halsey, Stuart & Co. Inc.,\ Salomon
Bros. & Hutzler; Bear, Stearps & Co,

the

company

National-Soo Line Building,

Mississippi Power & Light Co.
reported company plans to Issue and
sell in November an issue of $8,000,000 first mortgage
bonds. Underwriters—To be determined by competitive
14 it

was

bidding. Probably bidders: Halsey, Stuart & Co. Inc.;
White, Weld & Co, and Kidder, Peabody & Co. (jointly);
Blyth & Co., Inc.; The First Boston Corp. and W. C.
Langley & Co. (jointly); Equitable Securities Corp. and
Shields & Co. (jointly); Merrill Lynch, Pierce, Fennei;
&

May 5, it was reported company may issue and sell $12,000,000 of equipment trust certificates to mature annual¬
ly 1953-1967, inclusive. Probable bidders: Halsey, Stuart
& Co. Inc.; Bear, Stearns &
Co.; Salomon Bros.' & Hutzler.

Niagara Mohawk Power Corp.
May 6 stockholders voted to increase authorized com¬
mon stock by
1,500,000 shares (11,094,663 shares pres¬
ently outstanding). This places company in a flexibl®
position with respect to formulation of future financial
programs. Earle J. Machold, President, said bank loan*
totaling $40,000,000 to be outstanding at Dec. 31, 195%
will be permanently financed
early in 1953. Under¬
writers

Beane; Union Securities Corp.

To

—

be

determined

by competitive bidding.

Probable bidders: Morgan Stanley & Co. and The First
Boston Corp. (jointly); Merrill Lynch,

Pierce, Fenner A

Beane.

Northwest Natural Gas Co.
Jan. 7t company filed amended application with FPC In,
connection with its plan to build a natural gas trans¬
mission system in the Pacific Northwest to transport
gas from Canada to markets in Idaho, Washington audi

Oregon, with a portion to be returned to Canada for use
in British Columbia/ The estimated overall cost of the
project is approximately $92,000,000.
UnderwriterMorgan Stanley & Co., New York. Financing—Not ex¬
pected until after Provincial elections in April.

Pennsylvania Electric Co.
Jan. 5 it

was announced that company plans
about $26,000,000 for expansion in 1952, to be
in part, by the sale of about $9,000,000 first

to spend

financed*
mortgage
$4,500,000 of

bonds, $4,500,000 of preferred stock and
stock (the latter issue to parent, General Publie
Utilities Corp). Underwriters—For bonds and preferred
stock to be determined by competitive bidding. Probable
bidders: (1) for bonds—Halsey, Stuart & Co. Inc.; Kid¬
der, Peabody & Co.; Union Securities Corp. and Whit*
Weld & Co. (jointly); Kuhn/Loeb & Co.; A. C. Allyn
& Co., Inc.; Equitable Securities Corp.; Shields & Cot
and R. W. Pressprich & Co. (jointly). (2) for preferredSmith, Barney & Co. and Kidder, Peabody & Co,
(jointly); W. C. Langley & Co. and Glore, Forgan & Cow
(jointly); Kuhn, Loeb & Co.; Lehman Brothers and
Salomon Bros. & Hutzler (jointly); Harriman Ripley A
Co., Inc. Offering—Expected in mid-year.

common

Permian Basin

Pipeline Co., Chicago, III.

April 1 company applied to FPC for authority to con¬
struct a 384-mile pipeline system from west Texas and
eastern New Mexico to the Panhandle
an

estimated cost of

area

of Texas at

$58,180,000.

Probable underwriter!
for convertible notes and stock; Stone & Webster Securi¬
ties Corp.; and Glore, Forgan & Co., both of New York.
Philco Corp.
March 31 it
June

6

was

announced that stockholders will vote

authorizing an increase in indebtedness to
$25,000,000, the funds to be used for capital expenditure*
on

Traditional Underwriter

—

Smith/ Barney & Co., New

York.
Potomac Electric Power Co.

April 16, R. R. Dunn, President, announced company
plans to raise about $40,000,000 of new money in connec¬
tion

with

its

$62,000,000

construction program in the
1954. Probable bidders: Halsey,
Stuart & Co. Inc.; Lehman Brothers, Stone & Webster
Securities Corp. and Union Securities Corp. (jointly);

years

(6/5)

Bids will be received by

New York Central RR.

about June 19; rights to

McCarthy

March 18 it

March

■jlr Houston Lighting & Power Co.

held.

4

Railroad

stock from 300,000 shares (par $5) to 600,000

amount

"

Kansas City Power & Light Co.

Jan.

announced

increasing authorized common stock to 2,000,60(1
shares from 1,000,000 shares. No
immediate financing
planned. Underwriter—Blyth &
Co., Inc.

$500,000 preferred stock and $402,500

program.

Illinois Central RR.

tures.

was

vote on

Power Co.

construction

45

Morrison-Knudsen Co., Inc.
May 13 it

Idaho

Globe-Wernicke Co.

March

issue of convertible debentures in

an

1949.

of 10,000,000

Feb.
of

(2273)

1952,

1953

and

First Boston Corp.; Kidder, Peabody & Co., Merrill
Lynch, Pierce, Fenner & Beane, White, Weld & Co. and
Salomon Bros. & Hutzler (jointly); Kuhn, Loeb & Co.
and Blyth & Co. Inc. (jointly); Dillon, Read & Co. Inc4
Harriman Ripley & Co., Inc.

Pubco Development Co.

May 15 it

was announced that company plans to issue
and sell to present warrant holders additional warrant
to purchase 605,978 shares of common stock at $1 par
share on a one-for-one basis.
Price — $2 per warrant

exercisable on or before Jan. 1, 1955.
Proceeds — For
purchase and development of natural gas and oil lease*
Underwriter—Allen & Co., New York.
,

Continued

on

page

46

46

The Commercial and Financial Chronicle'..

(2274)

Continued

from

page

Standard

45

May 22 it was announced stockholders will on June 23
vote on authorizing directors to issue and sell publicly

if Sapphire Petroleums, Ltd.

action has been determined upon at

*

Texas

Transmission

Eastern

June

Corp.

increase

Oct.

to 5,000,000

the authorized common stock from 3,000,000

17

struct

$4,000,000

shares, and the authorized indebtedness from

Lynch, Pierce,

$184,989,683.

it

Webster

&

Utah
March

Offering—Expected in

Corp.; Harris, Hall & Co. (Inc.)
Fall.

issue

an

Securities

Power
7

&

SEC

struction.

It

750,000 shares

(par $7.50).

shares

1,000,000
in 1951

stock from

writers—May

(no par) to

Inc.; White,

not underwritten.

was

Stearns

intended

sion

filed with FPC

company

bring

to

program

be

&

natural

Georgia and Mississippi service

$76,000,000

a

into

gas

its

Rather it has made for

Y Of

of

week's

30-year,

bonds

best

3%%

shdwing.

ported
the

offerings,

new

Corp.'s

$55,000,000

first

The

&

not

unexpected

formidable

shape

of

tions

issue

new

well

do

with

in

propitious

more

in

more

a

"backdrop"

the

20

condi¬

The

Treasury

if

with

it

what

it

taking
ing

definite

some

offering

common

in

mind

of the deficit

care

now

stock

the

of

brought out

of

as

be

the offer¬
market

regarded
firm's

the

Slow

as

secu¬

at

inkling

direction

it

The

fact

that

this

of

might

around

without

some

And

the

to

be

of

the

several

bankers

bond issues and equities on which

&

sponsoring

shares

syndicates have been
terminated has not been especially
conducive to growing confidence.

were

ABERDEEN

AND

of

their hands

on

selling

u.

Cent

Three

Bonds

and

One-Quarter
1, 1%0

Per

despite the

issue

IB HEREBY GIVEN
that, pursuant to
provisions of the Deed of Trust dated as
of July 1,
1945 between the undersigned and
the
Security
National
Bank
of
Greensboro
Raleigh, North Carolina, Trustee, there have
been drawn by
lot for redemption and it is

the

the

intention
on

amount

of

Nos,

of the undersigned
to pay and
July
1,
1952,
$5,000.00
principal
above described
bonds, bearing

the

2—50—65—79—90,
The

bonds
become due

so

designated

and

payable

date and will be redeemed

for
on
on

'

-

redemption will
3aid
redemption

or

after that date

wattonat
NATIONAL LwI Trustee, the SECURITY
BANK, Raleigh, North Carolina at
par and
accrued inteerst
to redemption
date.

AII

for

the

such

bonds

are

required

to

be

presented
said office of

payment -and redemption at
Trustee on
July 1,
1952 on which
shall cease to accrue thereon.

interest

date

ABERDEEN AND ROCKFI8H
RAILROAD
COMPANY INCORPORATED

By;
Dated:

April 29,

J.

A.

Bryant,

1952




17%

bid

...

Treasurer

it

be

at

Western

cases,- at any

rate, it
moVe an

the

of

with

a

books

leaves

to
In

seems

inability to
within a day or two of the
ing

issue
open¬

bankers

job of lugging along

a por¬

tion of the issue.

Columbia

April at

3.32%.

a

out

Demand

was

pals

be

the

issue

bonds

to

It

mid-

terminated
week,

turn¬

settled

low par, and early this week

lewted
asked.

quoted at 99\£

&

bonds:

White,

Co.

and

The

from

in the

as

funds

are

needed for

construction. Dealer-

new

(Inc.), Chicago, 111., and

The First Trust Co. of Linclon. Neb.

new

»

meeting

summer

Analysts

the

at

Standard Town and Country
y

■

(Boston, Mass.)

Security

Boston

stock

common

400,000 to 500,000 shares, the additional shares to be

So¬ June 13,1952 (Milwaukee, Wis.)

and field

Milwaukee

Club

Bond

outing at Oconomowoc.

j

(New York City)

12, 1952

June 13, 1952

Municipal Forum of New York
conference

,

summer

at

Hotel

Municipal

Commodore.

Club

Bond

largest

New

of

York annual outing at the West-^

way

June 13,

as

1952 (Atlanta, Ga.)

Chester

and Beach

Country. Club

Club, Rye, N. Y.

Georgia Security Dealers Asso¬

,

for

rev¬

projected

ever

group

formed

reoffering

it

submit

its

terms

a

NSTA

to

is
by

this gargantuan is¬
smattering of munici¬

appears
men

SECURITY TRADERS

that

institutional
will
enjoy
a

bid

be¬
was

ASSOCIATION

OF NEW YORK

:Security Traders Association of New

ing League standing

breather in the period ahead.

of May 22, 1952

as

(STANY) Bowl¬

York

are as

follows:

;

FINAL STANDING
TEAM

June

5, 1952

June 6, 1952
Bond Club

-

(New York City)

-

rr

of Baltimore annual

outing at the Eldridge Club.

:

' 1

■

■.y..r

June 6, 1952

(Chicago, 111.)

,

^

Bond Club of Chicago field day
at the Knollwood Country Club in

*'y/

"*'

R.

Klein

(Los Angeles, Calif.)

Day at the Riviera Club.

Sleepy Hollow

.....,

*/''

Y'i* :"r

/

M. Growney

-

-

Y V. Lytle ——-211-220

C.

W.

-212

Murphy o—208
Krisam

-—204

Willie

annual

:

.

Kumm

(Capt.), Ghegan, H. Montanye, Krassowich, J.
Y
' 'Y
Y." Y:
"
The League's Annual Dinner will be held on June 5, 1952.
--

Manson.

Country Club,

Y

The

will

be

and

.

convention

Georgia
held

at

SECURITY

The Cleveland
mer

Security

Dealers

Friday, June 13,

Country Club.

CLEVELAND

Investment Dealers' Association
Canada

216

.

.

GEORGIA SECURITY DEALERS ASSOCIATION

(New York City)

Scarborough, N. Y.

of

200 CLUB

,

.

June 10-13, 1952 (Canada)

99%

.

.

Bond Club of New York outim
at

,

Y_,—_—__212

THE WINNERS FOR THIS YEAR ARE.

Bond Club of Los Angeles Field

June 6, 1952

r

,.

R. Goodman

Lake Forest.
June 6, 1952

YY'-: YPoints

..

Field

(Baltimore, Md.)

"/

(Capt.), Ghegan, R. Montanye, Krassowicb, Manson ,106
98 y2
Goodman (Capt.), .Weissman, Farrell, Valentine, Smith-!.-'
95
Bean (Capt.), Seigas, H. Frankel, Werkmeister,-Reid—
92
Serlen (Capt.), Gold, Krumholz, Rogers, Gersten,^
—Y
Mewing (Capt.), G. Montanye, M. Meyer, Bapatoy Klein--. ■■ m
88
Hunter (Capt.), Craig, Fredericks, Weseman, Lytie
Leone (Capt.), Tisch, O'Marra, Nieman, Bradley
—
88
Krisam (Capt.), Gavin, Gannon, Jacobs, Murphy—
• 85
Donadio (Capt.), Rappa, O'Connor, Whiting, Demaye__—
82
Burian (Capt.), Seipser, Hunt, Growney, Kaiser—, 75%
H. Meyer (Capt.) Swenson, A. Frankel, Wechsler, Murphy
74
Greenberg (Capt.), Siegel, Cohen, Strauss,-Voccoli
__1
73

EVENTS
Investment

^\Y;;^Y^'

!

Kumm

COMING

I®

.

{

(New York City)

from

portfolio

sluggish and

last

issue free.

Langley

Algonquin Hotel, St. Andrews- ciation

June

perhaps it is just

banking

and

sue

3%s

around

finally

agreement

ing the

System's

price of 100.929 to yield

underwriters
their

Gas

brought

were

C.

or

and

Co.

way

would

the

point

a

becomes

that

W.

stock

&

Light & Telephone Co., Inc.

ciety Regional meeting

New York Bowling League dinner.
cur¬

necessary
"strike while the iron is hot."
many

For

(jointly); (2) for bonds only: Halsey,

trips.

recog¬

market

to

appears

where

NOTICE

redeem

rently

(jointly);

(1)

Barney

April 11 stockholders increased authorized

and

June 11-13, 1952

job

Tapering Off
new

bidders:

Club.

Security Traders Association of
The

Due July

quoted

material ahead next

bond

buy

102.50.

RAILROAD

con*

$330,000,000 bond offering.

a

cumulative

had

preferred stock

price of

COMPANY

Mortgage

weeks

was

at

much

not

And

and

100,000

$4.24

new

Co.

in part, the company's

Smith,

Inc.;

by-the-Sea, New Brunswick.

sponsoring Dallas Power
of

proposed

considering that
the
Ohio
Turnpike Commission
has just about completed details

NOTICE

ROCKFISH

some

the

Turnpikes Ahead

that

,

indicated that

was

Light Co.'s offering

Incorporated
First

week.
well

of

Stuart & Co. Inc.

Bear,

con¬

nized quality of the issue and the

LEGAL

and

-

Meanwhile it

&

Co.,

added flavor

any

institutions

as

&

First Boston Corp.

cerned..,^^','".

bother¬

being troublesome.

behavior

far

so

out

market

corporate

Aside

represented

the first debt

Currently there is just enough

inventory

of

care

Offering—Of about 150,-

Tuesday of next week.

be

provide it with

things in that

an

terminated this

101.27

YY-V;

the future.

get

was

to

appeared

be able to peer a bit farther into

could

Proceeds—Together with
to.dake

Permanent financing expected later

Probable

year.

Weld

stock—Blyth

261,900

on

slated

offering in the his¬
tory of the company., since it was
formed in 1886, did not appear to

world

this

bidding.

Corp.

asked.

There is

enue

price of

a

yield 3.3%,
moving slowly.

pil¬

Side

Adding
Machine's
3%%
debentures,

to

for

common

the stock

free

and 17%

for its

$25,000,000

Perhaps if the investment Y

up.

not

Burroughs

helpful

For

group

re¬

the

This

through

indications

have

may

be

come

competitive

Among the recent stock issues

of investors

capital

with

On

could

would

by

shares of Gustim-Bacom Mfg. Co.'s

Brought

rities.

writers and dealers.

too,

the

could

overloaded

in

(2)

21 Ms

and, accordingly, in¬

years

vestors

secondary trading judg¬
ing from discussion among under¬
■

into

venture

mar¬

funds

shares expected in June.

common

Blyth

(jointly); Union Securities Corp. and

in

ing constituted the company's first
corporate

to

up

the bank loans from

offering spoken for. Y

was

could

borrow

Co.; Lehman Brothers

Ohio

The

to

financing in the fall. Under¬

ago at

90% of

Bos¬

bank borrowings of $40,000,000, the proceeds to be used

the money for new con¬

use

to repay

the

day

found better than

The quick response

ket

company

week.

first mortgage

First

Jan. 9 company applied to the SEC for authority to make

Co., Inc., W. C. Langley & Co. and Glore, Forgan &

biggest and made

was

other

issued

a measure

presently out¬

are

Washington Water Power Co.

preferred stock.

(jointly); The First Boston

the

Steel

and

Managers—Harris, Hall & Co.

*

this

National

stockholders.

to

year

loans

Kidder, Peabody & Co.
&

caution.

(there

Underwriters—The

Smith, Barney & Co. (jointly); Salomon Bros. & Hutzler;

expan¬

Alabama,

areas.

of

stockholders

(1) For bonds—Halsey, Stuart & Co.

Weld
Co.

•

■

that company is considering plans to
$4,500,000 from the sale of additional com¬

struction program.

determined

Blyth & Co., Inc.

Southern Natural Gas Co.
March 3

000

Light Co.

Probable bidders:

stock financing

Common

;

Corp. and Johnston, Lemon & Co. handled the offer¬

ing last

Corp., New York.

the proceeds of permanent

May 9 stockholders were to vote on increasing the au¬
common

ton

Pipe Line Corp.

authorized

is

-Y<

■

reported

standing 734,400 shares).

Underwriter—Kidder, Pea-

$10,000,000 from banks and

thorized

con

The project is esti¬

of convertible

Southern Colorado Power Co.

•

Co., Boston, Mass., is sub¬
($1 per share). Under¬

V

to finance contemporarily,

First Boston

(with
expire on

will

reported company plans issuance and

was

Proceeds—For new con¬

Probably The

Rights

Price—At par

.

stock to its

mon

Underwriters—Probably White, Weld & Co. and Stone

and $28,000,000 of new capital through

—

14

sale this Fall of

18 it was reported company plans to obtain be¬

Underwriters

Trust

$6,000,000 expansion program.

Edison Co.

the sale of additional securities.

12

bank

Transcontinental Gas

Southern California

struction.

.

and

& Beane;

Fenner

cost

privilege).

Street

Washington Gas Light Co.

body & Co., New York.

March

tween $25,000,000

writer—None.

1,350-mile natural gas transmission line extend¬

to

share for each three shares held

new

State

raise about

applied to FPC for authority to

company

a

mated

Underwriters—-Drexel

Smith, Barney & Co.

April

,

11.

scription agent.

Co., Houston, Tex.

ing from Texas into West Virginia.

The company said it will announce later

plans for future financing.

Gas

one

for

oversubscription

Jan.

Texas-Ohio

April 24 stockholders approved a proposal to

Merrill

rate of

April 29 R. H. Hargrove, President, announced company
seeks FPC permission to build 315 miles of new pipe-?
line at a cost of approximately $26,000,000.
Traditional

Paper Co.

Co.;

record April 24 were mailed
rights
400,000 additional shares of common
(represented by voting trust certificates), at the

subscribe

Stock

the present time.

Underwriter—Dillon, Read & Co. Inc., New York.

&

to

an

Frame, McFadyen & Co., Toronto, Canada.

any

May 5 stockholders of

(par $25 each) in order to make it possible to declare si
stock dividend and for other corporate purposes. No^uch

May 20 it was reported company may do about $2,000,000
of new financing (including an issue of convertible de¬
bentures). Proceeds — For acquisition of properties and
for development expenses.
Underwriters — To include

.to $25,000,000.

Waltfiaipi Watch Co.

May 27 stockholders approved an increase in the author¬
ized capital stock from 20,000,000 to 40,000,000 shares

,

Scott

Brothers; The First BostonJ^rp..,Registmtw>n—Of stocky "
probably in August, and of bonds in September.

if Standard Oil Co.

of 200,000 shares of convertible

excess

(jointly); Union Securities Corp. and Smith, Bar¬
& Co. (jointly); Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Lehman
ney

(Indiana)

preferred
stock.
Traditional Underwriter—Merrill Lynch, Pierce,
Fenner & Beane, New York. Offering — Expected late
June.
Y
' ' ' '.
not in

Thursday, May 29, 1952

Co.

Forgings Corp.

April 25 stockholders approved an increase in author¬
ized common stock from 266,000 shares to 350,000 shares.
Traditional Underwriter—Shields & Co., New York.

Inc.

^ Safeway Stores,

.

Association

1952 at the

.summer.

meeting

Standard Town

new
,

Y

-

-

TRADERS ASSOCIATION

Security Traders Association will hold its'
outing at Yhe_. West wood Country Club on June 27.

sum¬

Volume

175

Number 5120

.

.

.

The Commercial and Financial Chronicle

47

(2275)
DIVIDEND

NOTICES

DIVIDEND

NOTICES

DIVIDEND

AMERICAN LOCOMOTIVE COMPANY
30 Church Street

The

has

111 Fifth Avenue

New York 3, N. Y.

191st Preferred

Dividend

($1.75)
A

quarterly dividend of 1J4%

share)

a

has been declared

Preferred

Stock

of

The

($1.50

upon

the

American

Tobacco Company, payable in

cash

of

of

dollar

one

share

per

Stock

of

(25<>

this

Company

declared, payable July 1,
record

the

at

close

of

on

the close of business June 10,

1952. Transfer books will

cents

regular

Crane

quarterly

Co.

of

holders
ness

record

June

en

the

at

6,

cl-c3e

of

The Board of Directors has
declared
dividend of 20c per share on
the

outstanding Common Stock of the
1952,

KARR, Secretary.

Secretary

of Directors

Board

of Allen

B.

c.i.t. financial corporation
V'

Laboratories,

C.

advance aluminum

castings

corp.

I.

T.

Board

regular

a

cents

of

Directors

the

close

transfer

of

books

on

business
will

of 5%

per

Stockholders

share in cash

Common

Stock

of

CORPORATION,

June 4,

on

W.

ROY

has

1952 to Preferred

record

RAILWAY

at

the

of

close

Board

May

of

14,

June

10,

close.

not

1952.

FRED W.

;.v$

May 22, 1952.

18,

share

1952,

13,

of

1952.

of

at

ioko'
1962

?ew. 9r^;
to

N- Y> on Monday, June 23,

stockholders

of

record

at

three

o'clock

M... on Monday, June 2,
1952.
The stock
transfer books will not be
closed for the pay¬
ment of
this
dividend.

payment

(25tf)

138

Per share on the Common
this Company has been
declared pay¬
the Treiwurer's
Office, No. 165 Broad-

J.

New York,

Cents

N. Y.,

A.

SIMPSON, Treasurer,

May

22,

1952.

stock

common

of the close of business June

as

such

the

Twenty-five
shares

of

r*.

Company

dividend

stock

3,

at

the

to

be

close

payable

of

June

business

on

Tennessee
Corporation

1952.

order

Board

of the

of Directors.

JOHN J. O'BRIEN,

PAUL

Com¬

1952, to the holders of record of shares
said

June

By

Arust

HAMILTON, Secretary

QUARTORLY DIVIDEND of One Dollar and

able

this

of

authorized

of
all

on

outstanding
3,

W.

DIVIDEND NO.

COMPANY

Directors

1952,

dividend

a

per

of

13, 1952.

May 21,

corporation'

Secretary

61

Broadway, New York 6, N. Y.

RAIBOURN

1952

Treasurer

May 12, 1952
fifty (50^) cents
per share has been declared, payable
June 27, 1952, to stockholders of
A dividend of

The

| MERCK

Checks will be

oil Mont

HAUTAU, Treasurer

& CO

Inc.

.

i|

raiiway, n. j.

record

the close of business June

at

12, 1952.

.

'

the corporation,
payable June 12,
1952, to stockholders of record at the
business

of

business June

of

close of

day

Cumulative Convertible Preferred

payable July 1,

'piiJ

j

declared

dividend of 12!/2
the common stock

quarterly
share

per

has

the

FINANCIAL

mailed.

The

On

this

mailed by Irving
Disbursing Agent.

SOUTHERN PACIFIC COMPANY

NOTICE

payable July 1, 1952i'jto stockholders of record
at

Chicago, Illinois

Common Stock

Inc.

regular quarterly dividend of

a

$.25 per share on its outstanding shares

Stock

declared

May

stockholders of record at the close of
J une 11, 1952. Checks will be mailed.

dividend

June
13,
3, 1932.

on

DIVIDEND

The

be

Dividend

JOHN

THE MINNEAPOLIS & ST. LOUIS

Du

881

declared

forty cents ($.40) per share of $12.50

will

pany,

30,

QriwA-

on

Mont-

declared

quarterly dividend of $1.00

June

on

CHARLES C. M0SK0WITZ
Vice Pres. & Treasurer

The

been

to

ALLEN B. DU MONT

May 27, 1952

has

Company, payable

t

business

LABORATORIES, INC.

A

884 of

COMPANY

NO.

Directors has

??<fo Y81"® Capital stock, payable
5.1 to stockholders of record June

A

Harry L. Hilyard, Treasurer

on

No.

closed.

May 22, 1952

Dividend

RECORDS

a

busi¬

NOTICES

MINING

DIVIDEND
The Board of

4,

SUNDBERG

A.

DIVIDEND
HOMESTAKE

Mav 28, 1952

been

June

MGM

•

„

1952.

K. L.

THEATRES

-

divi¬

the

on

have
on

be

not

CARL

1952.

Checks will be mailedi

a

cf

PICTURES

1952, to holders of

business

July 1, 1952, to stockholders of record
at

share

per

Directors

declared

the Preferred Stock and

on

five cents

twenty

Common

of

MGM

$.50 per share on the outstand¬
ing Common Shares of the Company,
payable on June 25,
1952,
to Share¬

five

seventy

Board

NOTICES

LOEW'S INCORPORATED

dend of

176

Common Dividend No. 110
Dividends

DIVIDEND

CRANE CO.

New York 8, N. Y«

Preferred Dividend No.

NOTICES

In All Phases

Quarterly dividends

of Television

of

2(H-

1952.

the

WILSON
iTiTTTi

President

mTi'iYiYiYi'flraa

share

a

share

a

on
RtYnOLDJ

REYNOLDS

mCTOLJ

COMPANY

the $3.50 cumulative preferred

International Salt

the

company
Dividend

DIVIDEND NO.

/K

Corporation
DIVIDEND
A

HAflTlAWO

dividend s'0f

(25c)

(R)

of

convertible

Directors

the

on

stock of this

the

of

Arundel

Corporation has this day
(May 27, 1952)
declared thirty
cents
per
share
as
a
quarterly
dividend, on the no par value stock

June

record

twenty-five

cents

outstanding

METALS

on

second

of

share has been declared

on

the

holders of record at the close of

on

stockholders

to

July 1, 1952,

of

record

Richmond 19, Virginia

at

the close of business June

COMMON DIVIDEND

12,
The

1952.

($1,375)
5V2%

Treasurer

May 27, 1952

business

June

on

13,

1952.

1952.

HERVEY

of

record

becks
June

Exec. Vice Pres. &
A. R.

stockholders
corporation's

the

the

at

16,

the

to

en

close

twenty-five cents (25tf )
outstanding common
payable July
1, 1952, to holders of record at the
share

the

on

stock has been declared

BERGEN,

close of business

oliver

May 26, 1952.

1952.

will

be

the Manhattan

mailed by
Company.

Bank

ALLYN DILLARD,

Common Stock Dividend:

NORI^S,
Secretary.

June 20, 1952.

The transfer books will not be closed.
Checks

Irving Trust

MARSHALL G.

pre¬

A dividend of

Sec'y.

Secretary.

business

of

convertible

1952.

DIVIDEND NOTICES

J. OSBORN

cf the corporation,

standing,
July 1, 1952,

cumulative

June 30, 1952, pay¬
able July 1, 1952, to holders of rec¬
ord at the close of business June 20,

Company will not be closed.

on

.

issued and out¬
payable
on
and
after

dividend of one dollar
and one-half cents
share on the outstanding

quarter ending

a

June 5,

a

ferred stock has been declared for the

business

The stock transfer books of the

of

regular

thirty-seven

John H. Gage,
"

DIVIDEND

PREFERRED

on

stockholders

the'Ttose

at

CENTS

common

Corporation, payable

1952, to

30,

of FIFTY

dividend

clared, payable

payable July 1, 1952, to stock¬

share has today been de¬

per

clared
Board

$4.00

share

a

Reynolds Metals Building

152

capital stock of this Company,

No. 70

CORPORATION ^
8A1TIMMC

A
a

■

"

ARUNDEL]

The

$1.00

and

preferred stock have been de¬

Notice

COMMERCIAL SOLVENTS

'

stock,

,

Treasurer'

stock,

common

87V2 <i'

JOHN G. GREENBURGH

.,

on

The

Company

Board

of

Directors

has

Dated, May 27, 1952

declared

quarterly dividend of 60 cents

of

Secretary

a

share

per

the Common Stock, payable July 2,
1952, to shareholders of record June 6,

on

One

Wall Street,

New York

THE

1952.

May 22, 1952
Preferrd Stock Dividend:
The

Til

Board

of Directors

day declared

ALLIED

tal stock of this

18(12

payable

1M52

holders

•
■

Si DYE CORPORATION

☆

■

E.I. DU PONT DE NEMOURS & COMPANY

has been declared
mon

Stock

payable

on

the

of

per

1952

close of business

at

the capi¬

on

1952,

of record

at

STEPHEN G.

par

to

$10.,

stock¬

the close

of

regular quarterly dividend of
$1.12Vi per share on the 4'/2% Cumula¬

tive Convertible Preferred Stock has been

declared payable July 31, 1952, to

holders of record

Electric

share¬

regular quarterly dividends of
share
and

on

(Incorporated)
alva w. phelps

a. king mccord

Chairman of the

President

QUARTERLY DIVIDEND

Board
-—

DECLARED

KENT, Secretary

OLIVER

THE

•

CORPORATION

—$3.50

to

$ 1.12'/2

a

share

Series,

on

both

Payable

the Preferred Stock
payable

July

>

of
a

June 4, 1952.

business
shore

on

July 10,

the

on

1952;

Common

second interim dividend for

W. C. KING, Secretary

also

Stock

as

CHEMICALS

shore

per

June

on

to stockholders

25,

1952 to stockholders of record at the close

the

Common Stock

50<

Chicago, Illinois

°

the Preferred Stock—$4.50 Series

87'/2^

Company

July 15, 1952.

The Board of Directors has declared this day

Company,

13,

June

1,

Wilmington, Delaware, May 19, 1952

share

the Com¬

stockholders of record

share

Company,

The

business June 2, 1952.

Quarterly dividend No. 125
Sixty Cents ($.60)

July

has this

quarterly dividend

of 25 cents per

ANNiyERSAIlY

CHEMICAL

of

a

June II, 1952.

30,

close

the

h. d. Mcdowell,

TEXTILES

1952, payable

of

business

on

May

26,

PLASTICS

1952.

May 27, 1952.
L.

du

P.

Secretary

<f

AMILY

May 27, 1952.

COPELAND, Secretary

lUps Handling Equipment

CELANESE
CORPORATION OF AMERICA
180 Madison

american machine

(J. S. Gauge
Gotham Instruments

June

30.

1952,

Troy Laundry Machinery

be

paid,

for

the

Tolhurst Centrifugals

dividend

a

twenty-five cents

will

per

share

quarter

ending

that

day,

to

share owners of record June 12, 1952. Checks will be

mailed

by

THE

Pine Street, New

CHASE

York,
a

.;

NATIONAL

BANK,

of

18

Dividend Disbursing Agent.

H. T. McMeekin, Treasurer




88 th

4Va% PREFERRED STOCK, SERIES A

regular quarterly dividend for
quarter of J1.12J4 per
share, payable July 1, 1952, to hold¬

Auto Bar Dispensers

at

Quarterly dividends

7% SECOND PREFERRED STOCK
The

the

regular quarterly dividend for
quarter of $1.75 per share,
July 1, 1952, to holders

current

payable
of

record

at

the

close

of

cents

24, 1952,

per
to

since 1899

by

Directors

the

On

Board

per

share

common

the

on

of

Company's

$1

May 22, 1952,

dividend No. 255

follows:

as

fifty cents (50$)

share

par

declared

was

stock.

by

the

Board

out

of past earnings,

cumulative preference stock
per

share

on

the

Company's 4)4%

of

per

Directors

cumulative preference stock, series A; $.62yz

STOCK

share,

of

were

common stock

$.35
value

$.56)4

COMMON

declared

CORPORATION

business

June 6, 1952.

50

255th Dividend

ON COMMON STOCK

the close of business

June 6, 1952.

Riehle Testing Machines

Debothezat Fans

DIVIDEND

current

of record

iALE & T0WNE

QUARTERLY

The

ers

DIVISIONS -

On

INLANCE

Builders'Hardware

CONSECUTIVE

the

of

Locks

Avenue, New York 16, N. Y.

THE Boardthe.Directors has this day
of following dividends:
declared

and metals. inc.

34th Dividend

on

85(

June 14, 1952, to stockholders of record at
the

1952,

of record
>

payable June

holders of record
June 6, 1952.

at

the

close of business

payable

per share on the Company's 5% cumulative
preference stock, series B.

to stockholders of record

The dividends
stockholders of

are

payable July 1,

record

at

close of

on

July I, 1952,

at the close

1952 to

of business

June 10, 1952.

business,

June 10, 1952.
R.

Trout Mining

O.

GILBERT

May 27, 1952.

F.

William b. Paul. Jr.

Secretary

Vice-President and Secretary

May 27, 1952

x

DUNNING

'/ executive Vice-President and Secretary

jm YALE & TOWNE MFG. CO.

The Commercial and Financial Chronicle

.

.

Thursday, May 29, 1952

.

(2276)

48

poration

BUSINESS BUZZ

income

for

the

reason,

said the Minister of Finance, that
taxes

on

consumption do not dis¬

courage production. Some
•

•

•

of

mofe

U.

S.

Federal

80% or

revenues

from income taxes upon in¬
dividuals
and
corporations.
In
come

Beklml-the-Scene Interpretation*
(run the Nation's

And You

Capital

Canada,
In

the

the

ratio

is

about

Dominion

the

50%.

defense

program is carried forward within
thfe

framework

•budget.

WASHINGTON, D. C.—Congress
is

fixing

uncomfortable

an

up

Truman on the
extension of the Defense Produc¬
tion Act. The President will have
choice for Harry

to

gives him

gress

without

himself

find

or

DPA at all.

a

will

This
it

DPA Con¬

the kind of a

take

because

about

come

Con¬
will probably shoot the

would

now

gressmen

that

appear

DPA down to the White House

for

approval just about the time they
are grabbing their coats and head¬
ing for the big political circuses.
The House Committee

has done

nothing this week toward writing
its version of the DPA, after con¬

hearings.
The Banking
Committee doesn't plan to hold

cluding

means that a bill
consideration on the floor will

X, week, which

not

the end of the
week of June, and more likely

ready before

foe

first

middle of June.

not until the

Thus it is clear that before

House

between

differences

evitable

bills

Senate

and

can

in¬
the

be

just about the last .order of busi¬
when Congress quits either
at the end of June or early in
ness

GOP national con¬

July for the
vention.

time to put

This will leave no
the heat

on

the boys to eliminate

Presi¬
Until the House bill is re¬

features undesirable to the
dent.

since

of intentional strategy.

J States

of

nearly

The

U.

S.,

act

lowance

of

view

in

thing

the

upon

end

Board's recommendation
on
steel
and
the
President's
seizure of the industry, until prac¬

have

to

these

Foreign Rela¬

the

fortable spot

Services Committee.

The Senate Committee, however,

the President's

desire

for

against
a

two-

extension. The Senate bill
would repeal the Wage Board's
year

to attempt to force wage
fooosts and the union shop upon

power

Finally, the Senate bill

industry.

afeo wrote

a

repeal of Labor Sec¬

retary Tobin's scheme to order by
fiat

extension

an

the

of

Walsh-

publishers

the Chairman of the Armed

themselves

the

Senator Hunt appeared
while to be the key man. If

a

he

voted

Southerners

would lose.

WANTED
of

serve a

1,000

population

and

but

will

small industries

welcome

employing

men or women.

TV

with

of

course

a

ment

Department

company

the

Develop¬

a

of this

is organized for

walk in

take

wouldn't

of

purpose

supplying

individual surveys to pros¬
it e c

tiv

e

industries.

service is yours

ing and
beheld

your

This

for the ask¬

inquiry will

strictly confidential.

crats.

a

we serve

you?

States

or

Phone

LD-201

OF OKLAHOMA

precedent
thirds rule

2, Oklahoma




to

more

than

the

U.

cost

If

the

attractive

of the Canadian

and

facilities

as

of

will

additional

an

be
Ca¬

New

York

Stock

York

Curb

Stock

Exchange, New

Exchange,

Market,,

Exchange,

and

Toronto-

Montreal

other

Curb-

leading

ex¬

changes and also members of the
Investment
of

Dealers

Association

Canada.

We

scene

is the level

cess

profits

tax.

The top level
provincial cor¬

definite

interest

following

MASSACHUSETTS BANK STOCKS
Berkshire Trust Co.

Brockton National Bank

features

'/■ V/yyyy1 ,y-;. J
Canada refuses to levy an ex¬

have

in the

;

y

Granite Trust Co.

cy
Maiden Trust Co. I
•: j
Middlesex County Nat'l Bank
I V
Bank

Quincy Trust Co.
National

Somerville

Offerings Wanted 1
BLOCKS—ODD

of

in¬
on

Canada

as a

power

maintained

'

;

office

Angus & Co. in Toronto

is

of taxes.

-

Federal

Curiously,
nance

for

fact

y

Minister of Fi¬
budget apologized

the

in his last

the

ration

and

that

income

rates

are

on

that

MAINE—NEW

?,

|

—

LOTS

-.

1

HAMPSHIRE

*

VERMONT—MASSACHUSETTS
BANKS

corpo¬

high.

He

said that too high taxes, long con¬

tinued, reduce incentive.
Canada levies sales taxes for the

restoring
the

The

where it is 52%.

subject to attack

dollar.

of

One

that it takes place

S.

and by Ewart Angus of

opportunities,, however attractive
or promising for the long future.

classical foreign exchange account

beat

an--

partner,

poration income tax in Canada is
50%
except
in two provinces,

country whose dollar is

a

been

kind

dollar is

herently

has

of

in

ab¬

house,

by Charles U. Bay, senior

LERNER & CO.
Investment

Securities

10 Post Office Square, Boston

9,Mass.

Teletype

Telephone

BS 69

HUbbard 2-1990

the

of

South, under this rule, to veto a
radical aspirant for future Demo¬
nominations.

cratic

good

States

time

•-

leaders

many

of

Right movement were
beyond

between

the

day

measure

the

ment of Russell

as

in

Trading Markets in

him

now

vance

the
ir¬
the

self-announce¬

abdicated.

Harry

that he has stated in ad¬

Allied Electric
i

FOBEIGN

SECURITIES

Products

Humphrey

' and

plank,

knows

Common

and

Preferred

Carl_Marks & C2L INC.
FOREIGN SECURITIES SPECIALISTS

even

the

ADA again writes the Democratic

rights

FIRM TRADING MARKETS

their candidate

he wouldn't walk out

Hubert

V

'

However, their private disgust of

civil

itfe and Main, Tulsa

to

with

vention

if

CNDOS^RtAL DEVELOPMENT DEPARTMENT

for

"•

y.

ac¬

20-

a

nounced

Federal

dian

case,

was

*y.y

yy
interest

condition
normally has to import heavily of avowed purpose of avoiding too
the twoin the Democratic con-1 such necessities as coal, iron and high a tax on individual and cor¬

Truman at any

and

PUBLIC SERVICE COMPANY

any

seemingly

Right revolt

ritated

Write

question in

Truman

policy entails this

cost.

y{4

.y

stimulated, Canadians believe, by
a lot more than mere investment

The remarkable thing about the
rise to above parity of the Cana¬

dicated, for the whole idea of the

A

May

the

of

since

uncontrolled

fact that the

investment

This

f

dollar/

other

S.

to

dollar.

price "of

the

the

Co.,

risen above the value of the U. S.

,

much

pretty

was

first

fiscal

'<

walk-out

out

in

In

investment money
Canada is primarily

U.

responsible for the

then it provides
important
notice {to
business of the possi¬

American

national

A

;

the relative¬

value of the Canadian dollar had

correct,

KefauverJ bility that

star

the event the Democratic

he

is

the

movement when

announced in the

debate

this

convention adopted a civil rights

Industrial

*

ciation of the Canadian

the

off

killed

platform repugnant to the Dixie-

The

*

was

American.

was

moving

r

i

rise

latest

the

thing

one

words,

the

One of the reported reasons

cam¬

Russell all

Richard B.

officially

that

for

it

of

Canadian newsprint is the appre¬

remnants of the
he

aspirations

*

paign.

number of cities

Larger that

election

national

1952

the

bury

to

stuck

Russell can't

Presidency.

the
Dixiecrat movement decently for

Senator

We

*

time

about

It's

with

Senator

place after

took

ly heavy movement of foreign in¬
vestment money to Canada. Most

ing, from the leaders, that
is.
Fundamentally he is just another

$400 million.
*

have

&

in which, but for one thing,
nadian
branch
office of
A.
M_
exchange deficit would have
Kidder & Co., who are members
about $500 million.

That

who

it

that

through

Angus & Co.

a

only half-hearted Southern back¬

soliciting his support for restora¬
*

re-

year

the

looking silly. So the endorsement
stands. Russell, however, will get

from VHP's like Harry Tru¬
and Dean Acheson, on down,
of the

of

war.

been

recall their endorsements without

Capitol, Senator Hunt received not
less than 100 telephone calls one

tion

is

really

is

dollar
a

should

it

re¬

of this movement of the Canadian

a

*

their necks out for

According to reports around the

day

if

Eisenhower

out

turn

be

will

conservative.

it

against it,

total

of

old Toronto Stock Exchange

about $1%

of these reserves

some

facilities

member

-Finally, another dramatic facet

or,

publishers

would

it

cut,

the

for

he voted

if

stick;

is

General

exchange

U. S. dollars.

are

conversely, as un¬
comfortable as a lot of "liberal"

sum,

for

the

that

"liberal,"

noted,

is

amount to only

billion, and

editors will find
if, after sticking

in,

out

turns

$400 million cut was tentative and
the final vote was taken restoring

man

SMALL INDUSTRIES

short

which quisition of Angus
year

it

foreign

Canada's
serves

their necks out for Eisenhower, it

the

when

time

the

Between

Russell. The

lot of conservative

a

and

in

things

products,

Furthermore,

States Righters are in the uncom¬

(D.,

Russell

B.

Chicago

out of the window by

made, was tentative, in view
of the absence of campaigning of

was

Richard

at¬

Expansion of A. M. Kidder &

she is deficient.

South might have in
shindig, was tossed

the

power

by which this further cut

the vote

steel

bargaining

small

what

even

tively knocked $400 million more
off the bill, but announced that

actually will be to the President.

year,

devices

ment

tenta¬

it

separately,

matter

to

none

Co.'s Canadian trading and invest¬

Services took up

Armed

When

Ga.)

a

Canada refused

Acquires
Angus Go., Toronto

"I presume you have other reasons for deserving a raise,
Miss Stupely, beside this weight card saying you're
a hard and conscientious worked?"

jointly with Foreign Relations.
the

the

A. M. Kidder

Services originally
aid legislation

Armed

for

views.)

handle the foreign

Senator

to

financing

future.

pretation from the nation's Capital

Senator
Chair¬
Foreign Relations refused

of

let

to

war.

and may or may not coincide with
the "Chronicle's" own

Connally (D., Tex.) as

man

the

of

(This column is intended to

because

happened

war

fleet the "behind the scene" inter¬

this proposi¬
Services Com¬
for further consideration.

ported out, it will not be possible
tell how distasteful the bill

terials controls

end

tion to the Armed

Tom

al¬

immediate

has purposely embarked

Finally,

the Senate referred

This

-

after

announced it would have

authorization of $6.9 billion,

tion

S.

tempt wage and price controls and

Senate this year.
After the Senate

the

deficit

indefinite

Lester C.

in the United States

man

billion.

$40

however,

the

at

istration

Democrat, is re¬
been the most

Hunt, a Wyoming

puted

solicited

for

as

upon

Senator

First-termer

U.

Furthermore, the Truman Admin¬

*

*

Canada's

l/17th

over-borrowing and repay¬
has a debt just about the

same

practicable minute.

*

her

billion

ment,

the Wage

tically the last

$2,343

Since

war.

Congress is late on DPA because
the Committees simply would not

the product

to

2$roposed to limit price and wage
^controls to eight months and ma¬

the.

by

reduced

-output,, that would be equivalent
to a reduction in
the
United

presenting the
extension to Truman is not

This lateness in
DPA

debt

balanced

a

has

production is about

ment suppliers.

mittee

final adoption will be

ironed out,

upon

next tions Committee and the Senate
for passed the foreign aid appropria¬

before

sessions

/iKecutive

national

Contracts Act
subcontractors of govern¬

Ilealy Government

of

Canada

no

bounds.

These States Righters feel that

SO BROAD STREET... NEW YORK 4, N. Y.

TEL. HAN0YER 2-0050...TELETYPE: NY 1-971

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Trading

Department

70 WALL STREET, N.
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Y. 5