The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
<Z
MAY
4
:
8 1954
ESTABLISHED
M t'
Reg. U. 8. P»t. Office
Volume
179
Number 5322
EDITORIAL
New York
7, N. Y., Thursday, May 6, 1954—"
Cents
Price 40
Copy
a
What Do You Think?
\
S
viVc} {i'-.
Whatever the headlines scream, it can
hardly
surprising to the initiated that Geneva does
be
•
S; By COURTNEY C. BROWN*;
j not appear to be contributing a great deal to any -'
I solution of Ithe
impasse: in Korea
in Indo-China. VWe may as
or
i
.
the conflict
-
'.'
.
Graduate School of Business,.
Columbia University; Formerly Asst. to
>
Chairman, Standard Oil Co. (N.
•
-v.
.
any
•
tal.
one
of the characteristics of the Orien¬
in
J Asiatic, and is constantly revealing the
The
increase
great
persever-
?
i
i
;
being
are
criticized
in
Of
this
information-gathering
tivity which in a subtle way
have
\
on
..v
so
In
business data that
are
now
part, similar methods of analysis are used.
of
repetition,
address
of Dr. Brown
interpretations,
before the 2nd
new
our
often
from
in¬
on
General
REGISTRATION
—
Underwriters,
undertakings in
of issues
cover page
our
page
the
of
readers—namely, the
philosophy of government
stemming ■* from the "Employ¬
ment Act of 1946."
Because of
the interest evinced in the sub¬
ject, the "Chronicle" decided to
its columns to any one
open up
By
who
42
in
elected
full
the
to
Dr.
on
particular,
express
Wiegand's
or
on
now
in
cor¬
registered with the
investors
Carl Wiegand
related phases of the
In this regard, we are
Continued on page 6
1
dealers ajid
Dr.
his
paper
any
employment doctrine.
United
SEC
"Securities in Registration" Section, starting
our
the
ment
daily
made
Session
Meeting of the Chamber of Commerce of
Washington, D. C., April 27, 1954.
NOW IN
on
'economic implications and con¬
sequences of the full employ¬
views
Annual
States,
carried
paper
bene¬
opinion.
Continued
•An
a
ac¬
preters recognized as the most authoritative tend to set
process
--
economic system."
our
may
Those inter¬
the tone and direction of the crescendo of
the
short time, but *
a
regimented society, and
a
of the
"Full Employ¬
ment and Its Dangers," Dr. Carl Wiegand, Pro¬
fessor of Economics at the University of Missis¬
diet. By and large the same data are
available to every one. For the most
C. C. Brown
not !,:
employment' at f
"Chronicle" of April 8, captioned
many
porate securities are afforded a complete picture
and potential
seriously weaken
people willing and
anxious to express themselves about
the meaning of the vast volume of
32
SECURITIES
less
ment of new curiosities and
some
page
also turn America into
may
terpreters. .Never before have there
been
the statute "did
seei today—that 'full
price might be good politics for
any
.
sippi, made a vital contribution,
in our view, to a
subject that
had previously been the basis
r
the develop- / of considerable correspondence
somewhat
New facts encourage
42nd
Continued
become
ficial.
quarters as unduly pessimistic about the imme-
!
A
century ago would
a
not
gov-
"Employment Act of 1946,"?
contended that the advocates of
have been less quickly disclosed. But
Already headlines and news commentators have greatly, we had almost said ridiculously, exaggerated - and distorted events in
Southeast Asia, and large sections of the Ameri¬
can
people do not talk or act as if they approached these issues with awareness of the long
liistory out of which they grow. It is difficult to
l>elieve that wise decisions are likely to be
reached without a better
understanding of what
is going on in the world in
general and in these
regions in particular.
French
quarter of
a
inherent in the
eminent
there has been another consequence
spective.
The
f
implementing the full ■! employment philosophy of
see—and do
5
37.
on page
State and
U. S. Government,
State and
Municipal
★
★★★★★★
ON
Securities
telephone:
Established
MARKETS
ALL
*
Members
HAnover 2-3700
U. S. Government
—
Municipal,
Chemical
bank & trust
*
MABON
30 BROAD
ST., N.Y
*&
CO.
Commodity
Chicago
^
New
lis
N. Y. and Amer. Stock
Broadway, N. Y. 6
*
THE NATIONAL CITY BANK
99
WALL
122 Years of Service
5, N. Y.
To
Active
Raw
Refined
—
Members N. Y. Stock Exchange
American Stock
Exchange
50 BROADWAY, N. Y.
i
BRIDGEPORT
PERTH AMBOY
Inc.
Trade
Exchange
Bond Department
Exchange Bldg.
THE
CHASE
•
Detroit
Beach
Hollywood, Fla.
•
•
•
Pittsburgh
Coral
Geneva,
NATIONAL BANK
Gables
Switzerland
OF THI CITY
OF NEW YORK
Maintained
and
Brokers
CANADIAN
BONDS & STOCKS
SECURITIES
Exports—Imports—Futures
DIgby 4-2727
Banks
CANADIAN
to Our Customers
T.L.Watson &Co.
Liquid
Markets
Dealers,
Commission
sugar
of
Cotton
Amsterdam, Holland
★
STREET
NEW YORK
N„ Y. Cotton
Miami
Net
LAMB0RN & CO., Inc.
Exchange,
Board
Orleans
Chicago
Bond Dept. Teletype: NY 1-708
BeU
*
Exchange
NEW YORK 4, N. Y.
OF NEW YORK
Exchs."fc
RE 2-2820
System. Teletype NY 1-2152
★★★★★
Exchange
'
and other Exchanges
Sixty Years of Brokerage Service
♦Members
Cotton
York
Bonds
Exchange
Stock
New
Common Stocks
Preferred and
company
bond department
All Corporate & Foreign Bonds
Municipal
\
,
Stock
American
*
State and Revenue Bonds
^
York
New
Complete Brokerage Service
*
1856
H. Hentz & Co.
CALL *
ONE
Orders
Executed
On
*0
WIRES TO
&
Co.
MEMBERS NEW YORK STOCK EXCHANGE
NEW
YORK
1 NORTH LA SALLE ST.
CHICAGO
Hampshire
COMMON
»
Analysis
MONTREAL AND TORONTO
GoCdbody
115 BROADWAY
of New
DEPARTMENT
Teletype NY 1-2270
DIRtCr
Public Service Co.
All
Canadian Exchanges At Regular Rates
CANADIAN
-
Mississippi, after thoroughly analyzing the dangers in i
'
of
that
this situation in Asia must be studied in full per-
i:
.
cline. It has helped businessmen avoid
the prolongation of policy mistakes
this, of course, confronts the West with the
necessity of making some far-reaching decisions.
If our policies are to stand the test of
history
;
•
nation's business somewhat less vulnerable to serious de-
All
t
;
published information about
business in recent years has had several interesting Con¬
sequences. Among other things.it has probably made the
f ance so characteristic of the East. Both are, of
j course, fully aware of the disadvantages under
which the West must operate
anywhere on the
I vast land mass of Asia.
;
?
used up and business assets; depreciate. Sees no need ^
under present circumstances for: additional government '
activity to induce business expansion..
are
notable'examples of Orien¬
respect. .Russia is at least half
this
contained
April 8 wherein author, Dr. Carl
Wiegand, Professor; of Economics at the University of
slack activity, Dean Bro^ looks for a more solid upturn
in the years ahead, when goods m consumers': hands are
The Chinese
talism
Discussed!
Editor given below relative to paper
to
in the "Chronicle" of
well tell ourselves the
^particular reason why the Chi- :
| nese or the Russians should ieel impelled to make"
large; concessions^ to the iWestv in the Far East.
Patience is
Letters
.;
\ truth" about-the - Orient /and our interests there. V Asserting prospective business upturn in latter months r
!
of this year may be merely, a rally in a longer period ofThe observer from Mars would not find it easy
I to discover,
Its Dangers"
v'.":'''
v
1
v
r.
,
'
DoMmpwi Securities
Grpokatio?!
40 Exchange Place,
New York 3, N.Y,
WHitehall 4-8161
request
IRA HAUPT & CO.
Members New York Stock Exchange
and other Principal
111
Broadway,
WOrth 4-6000
Teletype NY 1-702-3
upon
Boston
Exchanges
N.
Y. 6
Teletype NY 1-2706
Telephone:
Enterprise
1820
The Commercial and Financial <.t.ro,iicle
2
Thursday,
...
(1982)
The
position and trade in
We
Security I Like Best
each week, a different group of experts
field from all sections of the country
A continuous forum in which,
Aztec Oil
participate and give their reasons
Colorado Interstate Gas
Their Selections
for favoring
particular security.
a
intended to be, nor
offer to sell the securities discussed.)
(The articles contained in this forum are not
they to be regarded,
are
as an
Gas
York
New
Kerr-McGee Oil
Natural Gas & Oil
Exchange
and forth
When you travel back
Southern Production
be
can
United
these
across
'
of
sure
Southern Union Gas
be
Western Natural Gas
Pacific
you
Coast
area,
States,
thing. You can
one
no w
Common & Pfd.
absolutely
r
Associate
1920
York
la t io
5
Teletype NY 1-583
BArclay 7-5660
the
by the
in building materi¬
name
Members
••
New
York
American
120
Stock
Exchange
Stock
Exchange
BROADWAY, NEW YORK 5
Tel. REctor 2-7815
Eldon
homes
Grimm
A.
the
Angeles area—as far as the
eye can see, stretched out in all
directions
square mile after
—
know
the
that
of
is
Coast
West
destiny.
market
in
de¬
also rubber tile and felt base rugs.
Pabco's
complete line of paints is
And it is also well
unsurpassed.
known for
of other build¬
dozens
to yourself, "I want
American Furniture
of
lower-priced
a
which has
Bassett Furniture Industries
in value
a
over
good chance to grow
the next few years."
One of my top
Camp Manufacturing
choices for grow¬
ing with the West is the common
Commonwealth Natural Gas
of
stock
New
Life Insurance Co. of Va.
is
Pabco
STRADERJAYLOR&COJnc.
Lynchburg:, Va.
TWX LY 77
LD 30
share
a
Stock
York
Francisco
San
Southern Advance Bag &
Grinnell
Paper
Corp.
Kalamazoo Vegetable
Parchment
Keyes Fibre Co.
top
San Francisco
maker
reputation
Ex¬
Stock
has held
largest
the
as
of
building materials and
linoleum-type floor coverings
west of the
Rocky Mountains. Its
are of
splendid quality
products
and the Pabco trademark
enjoys
most
And
excellent
partnership
bach,
Pabco
another
name.
with
50%
over
a
in
Zeller¬
Crown
owns
Pabco
about
a
giant, Fibreboard Products,
of
a
big
interest.
period of
years.
And here's another amazing
about
Fibreboard.
a
Few
as
high
as
$30
"big
operation"
with
about
split which took place
think it highly
possible that the stock might re¬
gain this $30 level at some future
of sales
lion.
The
more
about Fibreboard
a
would be
would
which
76% above today's
price
projection
some
malrket quotation.
considerably below its peaks of
previous
bull
markets
for
one
main
reason.
company
Back
decided
hard-surface floor
ness
Tele. NY 1-3222
in
the
to expand its
covering busi¬
1948,
into the East and built
a
big
of
annual
sales
$36
volume.
But did you
ucts
as
know that, on a basis
volume, Fibreboard Prod¬
times
is actually almost 2V2
large
Pabco itself? Last
as
Fibreboard
of
Pabco stock at 17 is still selling
Phone: HA 2-9T66
fact
people
big it really is. Here's
comparison. Pabco, itself, is a
million
I
its
had
year,
sales of $88
is that all
stock, and almost
all of its preferred stock, is owned
exclusively by Pabco or by Crown
Zellerbach.
classes
Pabco
three
owns
Fibreboard's
of
stock, in¬
60% of the 7% pre¬
cluding over
ferred, almost 56% of the Class A
Common
bit
and 50%
of the Class B
on.
will
It
than
proved
originally
to
be
an
expensive
proposition to
break
into the Eastern linoleum market.
to
-
Birmingham, Ala.
offices
branch
our
from, dividends actually
come
Call
to
this,
it
than
divi¬
dends.
In fact, Pabco's share of
the undistributed profits of Fibreboard
Established
Home
Brokers
111
Ltd.
1897
Office Tokyo—70 Branche«
Investment
&
Bankers
Broadway,N.Y.6 COrtlandt7-5689
share
"true" earnings for
including its entire
Fibreboard's profits, may
the
Hence,
Pabco
stock,
share of
between
run
Yamaichi
Securities Co.,
amount _to about $1.25
of" Pabco stock.
may
each
for
publication!
Japanese securities
on
in
out
pays
write
or
our current
in
there will
be
substantial "hidden" earnings too,
because
Fibreboard earns much
more
for
re¬
But
Fibreboard.
from
addition
in Japan
the
from
come
building materials business.
$2.40
$2.50
and
Trading Markets
per
share of Pabco.
GENERAL CREDIT,
"Hidden"
Large
(4)
Book
INC.
(Prospectus Available)
Value: Book value of Pabco stock
stated
is
now
$21.50
at
business
materials
plus $4.79
share for the
Pabco
share,
a
PANTEX MANUFACTURING
for the building
including $16.71
per
SANDY HILL IRON & BRASS
original cost
REEVES SOUNDCRAFT
figure of its investment in Fibreboard.
However, the value of the
holding
has grown
the
years.
Today this Fibreboard stock held
by Pabco has a book value equiv¬
alent to about $17 per share of
tremendously
over
stock.
book
to
building
for
30 Broad St.,
Inc.
New York 4
Teletype NY 1-4487
B0 9-3242
has
stock
Pabco
$16.71
John R. Boland & Co.,
"true"
the
Hence,
of
value
risen
Fibreboard is such
pany
that
it
earned
a
a
fine
net
com¬
profit
$5,135,270 in the 1953 fiscal
year and
this was after paying
out
a
"fat"
profits tax.
You
(5)
of
view
$1,400,000
in
excess
So, Fibreboard should
the
Get
Materials
ma¬
NEW ENGLAND
LIME GO.
•
the
"Free":
com¬
ATOMIC
program.
Nelco Metals Inc.,
a
wholly owned
subsidiary, manufactures high
pa¬
rity magnesium and metallic calcium
under
a
contract
the
with
ATOMIC ENERGY COMMISSION.
In
there
figure
to
the
in
"hidden"
substantial
ways
metallurgical
engaged
ENERGY
•
•
three
are
A chemical and
pany
Building
Big
Business
book values revealed above,
that
Company
$11.40
earned
in
past
four years.
i
Pabco stock at $17 is a long-term
"bargain."
First,
about
at
assets
dollar.
50
Second,
buying
are
you
cents
you
•
Memorandum
merely
huge building materials
business free! Or, third, at $17 for
Dayton Haigney & Co.
Incorporated
ting the
Pabco
you
are
request
on
the
on
are
paying for the asset value of the
Fibreboard holdihgs, and are get¬
buying the build¬
75
FEDERAL
BOSTON
10,
i
STREET
MASS.
ing materials business and getting
the
enormously
board
is
Well,
in
elected
liam
U.
Fibre-
Management
what
know
U.
S.
big
has
a
Gypsum
the years (U. S. Gyps.m
over
stock
Top
all
We
Team:
moneymaker
been
valuable
holdings free!
Pabco's
(6)
quoted
1952,
August,
as
its
$138).
Pabco
about
at
President, Mr. Wil¬
||$ Keady, who
was
Over-the-Counter
Quotation Services
for 40 Years
with
S. Gypsum for about 25 years.
Mr.
of
planned
cents
I
Pabco, between 45 cents and
55
hear
you
common
plant at Raritan, New
Jersey.
This
plant
took
much
longer to build and cost quite a
money
N. Y.
6,
NY 1-1557
Opportunities
year.
Of
projected
net
for
mil¬
don't
reason
Common.
linoleum
more
$1.25
-
Fibreboard, with its 12 West
Coast plants, is a well-integrated
operation, from logging operations
in the state of Washington right
down to the paper pail in which
you buy your ice cream.
date,
25 Broad St., New York 4, N. Y.
com¬
York
Investment
90
extremely valuable
an
field.
Pabco stock sold
1948.
fiscal
1953
to
the
gain over
a
the
of
$1.15
Pabco
big rise
New
company.
the 3-for-l
Members New York Stock Exchange
re¬
owned
Fibreboard
share in the 1946, 1937 and 1929
bull markets, after allowing for
@M£nheme/i &
a
or
realize how
in
be
will
Fibreboard
a
Exchange
Exchange
Mobile, Ala.
the neigh¬
year
terials plus $17.00 for Fibreboard,
growth
for a total "real" value of $33.71
Fibreboard makes,
per
shaiV of Pabco. Practically
paperboard and all sorts of con¬
speaking, of course, Fibreboard
tainers
such
as
fibre
shipping
stock is actually worth more than
cases, paper milk bottles, frozen
its
mere
book
value
because
food
packages, and cartons for
stocks in' Fibreboard's group (the
butter, ice cream, margarine, ce¬
paper
stocks) have had such a
reals, eggs and a long list of other
huge rise in price over the past
foods. This type of business is in a
year.
If Fibreboard had a public
steep growth trend, for there is a
market
(which jit doesn't have),
mighty expansion taking place in
it might be worth as much as $22
the
paper
products business, as
per share on Pabco stock.
you know.
is
in the paperboard and con¬
a
Write for Circular
The
is
by Crown Zellerbach, whose
earner
Philadelphia 3, Pa.
HUGO STINNES
half,
over
Fibreboard
of
tainer
BOENNING & CO.
owns
56%
mainder
industrial
Coast
West
which
Exchange.
industrial
con¬
Products,
a
Over the years, Pabco
a
Fibreboard
cerns,
It
Pacific Coast industrial empire of
stock has had such
change Institute School.
Continuing Interest in
rainbow."
Pabco
over
"Paraffine" back in 1929 at the
fine old
A
the
mon
giants of the Pacific Coast. It was
formerly known as "The Paraffine
Companies" and I am proud to
say that the first
report I ever
wrote on a stock in my life was
on
.^% M Gian*
and
the
of
the
on
Exchange
Stock
one
which
Products
Pabco
sells at about $17
Dan River Mills
r>Wns
"high point" of this article.
is the "pot of gold at the end
It
stock
find
Also
the
to invest in the West Coast. I want
to
1954, of somewhere in
report
fiscal
an
(2)
Stock
Stock
net profit
end June,
probably
the
ceived
linoleum
the
Fibreboard Products: Now here is
So you say
r
to
St.,
wires
Direct
The
remaining 70 cents, or over hali
of Pabco s per share profit, will
''going
is
It
places."
Trading Interest In
will
Rector
New Orleans, La.
right now Fibreboard is
a much larger money maker than
Pabco itself. For example, Pabco !
the
mile of them. You also see
ing items such as asphalt roofing,
building boom around San
shingles, building papers, gypsum
Seattle,
San
Diego, w a 11 b o a r d and other
gypsum
Portland, Fresno and dozens of
products, asbestos-cement prod¬
other centers. You see the great
ucts,
insulation
materials,
etc.
new
highways and freeways, the Pabco is
doing a wonderful job
giant new super-markets, shop¬ in the field of
color, because to¬
ping centers, factories,
schools,
day's building materials must fea¬
and also
the vast expansion .of
ture a wide range of appealing
utility systems, airports, etc. You Colors.
area
of income for Pabco.
source
cents
of
type
Francisco,
,
big
York
American
HAnover 2-0700
Indeed,
This
the
ffopONNELL & CO.
a
From FibreFibreboard is
Income
Obviously,
borhood of $1.15 to $1.25 a share.
square
Since
1917.
Big
(3)
board:
New
Members
19
for
sign and color. It turns out other
linoleums both in rolls and tiles,
Los
Rights & Scrip
,
Members
tax.
lead
you are
around
period of time.
i
bad
ings,
factories,
schools,
publip
buildings, etc. Pabco is noted for
its wide ran g e of well-styled
hard-surface floor coverings. Pabco's famous "California Originals"
West
new
Steiner, Rouse a go,
"
of this
death
cent
construction, in¬
cluding homes, commercial build¬
on
Coast,
Specialists in
over a
every
the
amazed
■
benefit considerably from the re¬
als. These materials go into almost
to
Out
come.
reasons
(1) Tops in BuRding Materials:
on the Pacific Coast, Pabco is
over
n
years
City.
Out
gain jn popu-
Exchange
Broadway, New
brief
some
are
think
I
Bought—Sold—Quoted.
Ham-
York
the top
a
further huge
Member
Stock
American
120
in
m
o
Here
price
spring rain,
will enjoy a
Corporation
Established
o
"good times," I believe.
the way to
Pabco stock could
show considerable appreciation in
mush-
fornia
New York Hanseatic
coverings. And, its production rate
has been almost doubled. It's on
Cali¬
a
floor
quality
best
the
out
why
growing faster
than
a
contains
the
that
certain
very fine 4 property and
the best machinery. It
really
turns
Pabco Products, Inc.
Republic Natural Gas
Shearson,
New
longer
City
Members of New York Stock
Laren,
&
Co.,
(Page 16)
doing much better and is no
a liability to Pabco. It is
is
Co.,
General Partner, Wulston &
Gulf Interstate Gas
B.
mill
However, today, this Eastern plant
GRIMM
A.
York City.
(Page 2)
Kuno
Delhi Oil
ELDON
Louisi
siana
Eldon A. Grimm, General Partner,
Walston & Co., New
Colorado Oil & Gas
East Tennessee Natural
Week's
Participants and
the investment and advisory
n
Oil
Canadian Superior
This
Forum
1954
.8,
the
Keady
ranks
became
years;
that
its
worked
at
U.
S.
President
He did
company
a
through
up
Gypsum,
for
and
National Quotation Bureau
Incorporated
several
Established 1913
marvelous job for
in
both
manufac-
46 Front Street
CHICAGO
Continued
on
page
16
New Yorfc4,N.Y.
SAN
FRANCISCO
Number 5322
Volume 179
'
..The Commercial and Financial Chronicle
.
(1983)
Improving the Tax Laws
INDEX
By HON. RICHARD M. SIMPSON*
Articles and News
page
U. S. Congressman from Pennsylvania
What's Ahead for Business
Stressing
in government spending
economy
the most
as
per¬
Ways and Means Committee member points out unless
—Courtney C. Brown__
we
The Port of New York
taxes, risk capital
and will
Cover
Improving the Tax Laws—Rep. Richard M. Simpson.
won't be available. Cites law of dimin¬
ishing returns as means of increasing revenues by reducing
tax rates.
Says Tax Revision Bill of 1954 is a good measure
cut
the Economic Front?
on
HOME RUN
effective way to bring about tax reduction, House
manent and
help American business, despite
proposed tax relief
on
—Howard S.
The
Outlook
investments abroad.
3
for
Run home and get your
4
at
obsoletes
Authority: Its Past, Present and Future
Cullman
—A. Wilfred
defects. Praises
some
German
the
analysis, we must
economy in spending if we
are to effectively and permanently
bring about tax reduction, which
have
all
we
want
which
and
in
work this year
our
I
recognize
isn't
Obsolete Securities Dept.
6
in
the
acceptance
of
which
that
every
work.
welfare.
that have occurred within the
the
Ways and
Means
area
where
I
have
of
It
M.
kiciiard
Simpson
that
Daniel
Reed,
our
distin¬
Chairman, has for years
emphasized, namely, that a way
to improve our economy, to pro¬
guished
that
on
tax
when
into
a
chance
a
tax
,
risk
that
going
materializes
business
new
there,
more
who
of
increasing
—Hon. Charles E. Wilson
12
Foremost Dairies
The Atomic Revolution—John
from the people
have been manu¬
money
presently
level,
though
that is
even
rates, I
say
do
we
factor which
a
Committee
is
willing * to
gamble upon, and whjch we thus
have
not
had
serious
too
A Banker's View
A
Balanced
—H.
17
Sound Money—J. H. Frost
on
Budget
Alone
Will
year
will
the Com¬
Reed
cut
we
won't
as he has
people, that un¬
taxes, that risk capital
be available. And
so,
he
as
has pointed out repeatedly, and as
have
you
learned
by
examining
do
foundation
with
tinguished
and
take
from
thus
bit,
Treasury
far,
these
is
verted,
and
not
properly
contro¬
which, if true then,
C; would today be true under similar
circumstances, and which to
some
extent is true today.
At all events, that factor is a
motivating factor in the Ways and
Means
Committee
as
we
do
con¬
sider tax problems. And I am one
of those who subscribe in general
to the belief
it is one of the
namely,
tion
the
have
the
talk
to
and
have learned
think
I
in
school,
revision
bill
a
of
I
all heard
it, though we have diffi¬
culty in explaining it—that to the
point where the so-called law of
diminishing
reducing
rather
returns
taxes,
than
applies,
increase
you
decrease
by
It
sounds
the
good,
Federal
and
I
am
willing to give it another chance.
♦An address
the
by Congressman Simpson
Finance
Luncheon
of
the
to say
that
merce
C.,
Meeting of the Chamber of Com¬
of the United States, Washington,
April
27,
upon
trict,
should at this point
two
things.
23
is political. I have
one
the
me
Congressional Dis¬
18th, in Pennsylvania,
my
most
distinguished
gentlemen here. They are, as you
know, of the Chamber of Com¬
are
some
ties
in
the
come
that
where, to
from communi¬
part of Pennsylvania
definite knowledge,
my
program
of the Chamber has
been carried out not in words but
Hi
"Full
Employment
Discussed
Dangers"
on
page
PREFERRED STOCKS
Spencer Trask & Co.
Georgia
Initiate
Banks
Monthly
Payment
BROAD
New York
Stock Exchange
ST., NEW YORK
TELEPHONE HAnover 2-4300
Albany
•
Manchester, N. H.
Boston
•
for
.
New York 5
Teletype
Telephone
NY 1-3370
Buying
24
National City Bank Sees Business Decline Tapering Off
24
Anchor
Precision
Ray M. Gidney Reports 1953 Net Earnings of National Banks
Down
Slightly From 1952.
24
Hycon
Benjamin Fairless Hits Double Taxation of Dividends
25
Lithium Corp.
Simpler and Better (Boxed)
31
Magnolia Park, Inc.*
6—69
Regular Features
As We
Bank
See It
and
Business
y
Reeves Soundcraft
(Editorial)
Cover
Stocks
Insurance
Man's
Canadian
27
Securities
American Shares
*
...
*Prospectus
8
Dealer-Broker Investment Recommendations
Indications of Current Business Activity
Singer, Bean
10
News—Carlisle B.argeron.
&
35
Mutual Funds
Request
22
4...
_
on
♦
8
Einzig—"Higher Dividends in Britain"
From Washington Ahead of the
Royal Dutch
44
Bookshelf
Coming Events in Investment Field
J
Notes
Mackie, Inc.;
HA 2-0270
40
Exchange PL, N. Y. S
Teletype NY 1-1825
30
& NY 1-1826
8
News About Banks and Bankers
Reporter
Our
Reporter's
on
28
Governments
16
Report
43
Public Utility Securities
Railroad Securities
31
Securities Now in Registration
Aberdeen Petroleum
31
37
Prospective Security Offerings
Empire State Oil
40
Seneca
26
The Market
Oil
Co.
17
.
.
.
and
You—By Wallace Streete
The Security I Like Best.......
South Texas Oil &
2
The State of Trade and Industry..
Gas
v5
^
...
Washington and You
33
*
Tracerlab Inc.
44
..."
Column not available this week.
West End Chemical
Twice Weekly
1
COMMERCIAL and
Park
DANA
Place,
REctor
New
York
to
Gardens,
Edwards
7,
N.
Chicago
•
.•
Glens Falls
•
Schenectady
•
Worcester
London,
&
second-class
as
DANA
SEIBERT,
Every Thursday
May
6,
(general
Subscription
President
Union,
Dominion
Canada,
Other
1954
news
and
of
Chicago
Offices:
3.
111.
135
South
(Telephone
La
STate
Salle
Countries,
St.,
2-0613);
matter
Febru¬
Rates
Bank
and
Note—On
rate
of
per
year.
made
in
INCORPORATED
39 BROADWAY, NEW YORK 6
WHitehall 3-3960
Teletype NY 1-4040 & 4041
Direct
Record
—
account
of
exchange,
the
New
York
PLEDGER
fluctuations
In
remittances for for¬
funds.
Wire
to
Monthly,
(Foreign postage extra.)
eign subscriptions and advertisements murt
be
W» V. FRANKEL & CO.
Publication
Quotation
$33.00 per year.
the
S.
of
$48.00 per year; in
$51.00
per
year.
$55.00
Other
ad¬
vertising issue) and every Monday (com¬
plete statistical Issue — market quotation
records, corporation news, bank clearings,
state and city news, etc.).
Other
Co.
Eng¬
Subscriptions in United States, U.
Possessions, Territories and Members
Pan-American
Thursday,
C.,
ary 25,
1942, at the post office at New
York, N. Y., under the Act of March 8,1879.
Y.
9576
HERBERT D. SEIBERT, Editor & Publisher
WILLIAM
E.
Smith.
Copyright 1954 by William B. Dana
Company
COMPANY, Publishers
2-9570
c/o
Reentered
Reg. U. S. Patent Office
B.
Drapers'
land,
FINANCIAL CHRONICLE
4, N. Y.
TELETYPE N. Y. 1-5
•
Nashville
Plan
...
☆
15 Broad Street,
22
Both Listed and Unlisted Stocks
l
25
(Letters to
..Cover
Manager
Trading Dept.
Dlgby 4-1680
25
Members
Its
Gene Flack Asks "How Prosperous Can You Get?"
WILLIAM
'
and
Editor relative to article by Dr. Carl Wiegand)
The
specialized in
☆
JOHN F. REILLY,
i>.
Unlisted
Published
have
*
i
Continued
1954.
For many years we
Members New York Stock Exchange
26
Security Salesman's Corner...
They
BURNHAM AND COMPANY
Repeal the Silver Purchase Laws
Our
to the group in front of
from
there
42nd
Annual
of
Sold
—
18
,
Street—Roger W. Babson_.L
Wall
NSTA
probably
one
merce.
take.
based
The first
have
you
about
bill,
tration.
do
Bought
Money!
one
after
the firm
foundation we are laying today, I
think the American economy will
be sparkplugged, will receive
a
shot in the arm, which will in¬
vigorate us again, and upon a
sound basis permit us to advance,
paying our bills as we go, under
the plans of the present Adminis¬
—
things I
18
Sound
20
dis¬
as
we
including
which I'am
about
bill,
did increase in the face of reduced 11954—when we come to that time
rates. That is said to be a fact when we truly have a tax reduc¬
which
Produce
Progress—E. T. Weiler
now
being laid,
American people
reduction
tax
a
had
allegedly the
the
present
1920's, under conditions
existing then, tax cuts were made,
the early
two years, as we, upon a
or
firm
Not
Stuhlmiller
J.
Economic
ob¬
mittee many times and
Mr.
course,
American Marietta
Some Newly Arrived Elements of Risk to Stock Market
reduce
told the American
of
14
—Rear Admiral Donald J. Ramsey
jections to on the part of the
Treasury. We hope it will work.
And I suggest that within the next
And,
13
The Structure of Industry—Edwin J. Schwanhausser
future*
far
tell you, as he has told
Jay Hopkins
—Bradbury K. Thurlow
facturing coats, because they may
be able to make a profit in the
risk
area.
Gas Service
11
Our Military Planning Linked to Stable but Dynamic Economy
intake.
the
D.
10
Sound Economy—H. Chapman Rose
a
by reducing tax rates
pointed out that perhaps
not pick up additional
by reducing the tax rate on
fur coats by reason of selling more
fur coats, but perchance we will
will be hundreds of jobs provided
by those dollars invested in that
at
Randolph Burgess
more
and
:
—W.
Toward
premise,
jobs, to provide better Lower Rates Will Sparkplug the
Economy
jobs, to do a bigger volume of
business, to provide equity capital,
And so, at least that being one
is to reduce taxes, to make it more of the factors in the minds
of a
attractive for the prospective in¬ lot of us as we
optimistically look
vestor to put his dollars in risk toward
the future
and
hope to
areas
of bur economy, so that if maintain
the
necessary
intake
less
9
may
take
there is considerable truth to what
vide
Wormser
E.
past
money
political
parties, a real¬
Mr.
reductions
excise
the
is
we
both
ization
have
we
of
us,
based
are
Federal
to
serve, there is
in the mind of
each
in
so
cumstances
the
honor
certain
so
or
that/at this time and in these cir¬
Com¬
mittee,
And
month
in
t,
a c
—Felix
STREET, NEW YORK
Telephone: WHitehall 4-6551
Tax Revision Bill Benefits Wage Earners
Com¬
Congress has done,
there has been no emphatic dis¬
regard or denial that it would
to the nation's
f
Glowing Prospects of New Mineral Resources
WALL
downtown there
that
100%
'em
mittee and the
necessary
In
The
sell
5
i__
Leading Companies in Lead—Ira U. Cobleigh
carried that into effect. And while
respect
we
believe vital
and
have
We
final
and
Wall Street!
99
Currency Convertibility
May
99
In
3
& COMPANY INS.,
LOS ANGELES
4
The Commercial and Financial
(1984)
Inals;
the New Bus Terminal in
Square area; a Grain
Terminal and piers in Brooklyn;
Port Newark; and the Hoboken
The Port of New Yoik Authority
Its
Past, Present and Folate
Under the direction of the Port
Compact to also promote and de¬
velop the port's commerce, we
of the Port of New
York Authority, established over 27 years ago.
Says the best
methods and procedures of modern private business corpora¬
tions are applied in the Port Authority's administration.
De¬
scribes airport developments undertaken by the Port Author¬
ity, and its operation of Port Newark and the Hoboken piers.
Reveals joint traffic studies being made and reports the inadvisability of the Port Authority's undertaking a New YorkNew Jersey rapid transit system.
Reveals 44 bond issues,
aggregating $830 million, have already been sold by the
Board
I
appointment
my
of
in
the
Port
Commissioners
discovered
soon
the
1927,
Authority
had
1921
been
created
in
by Com¬
pact
that
to
between
the
States
construction
of
of
three
and
Bridges
the
his
Staten
George
New
bonds
Jersey
with
000,000
$18,States.
It
two
the
from
about
had established itself
as
the clear¬
Congress. The
ing house for information
States
Port of New York and had
on
the
begun
in
the
words
to
assert
of
the
Com¬
to
fight transportation rates and
pact,
that
better
"a
nation
of
about
New
watchdog
discriminated
Howard
S.
via
commerce
maintain branch
Chicago, Washington,
and
Rio
de Janeiro,
we
in
Cleveland
Brazil.
Through the years we have ap¬
plied the best methods and pro¬
cedures of modern private busi¬
the
measure
effectiveness
management
our
financial
record.
Will
that
vestors
should be our
This, is the test
determine
lend
will
of
us
to
money
as
except
that which the States ap¬
tion
27
the
through
would
Port
result
with
Port
later.
years
of
the
In
Authority
1954
the
of
Port
future
directed
in¬
whether
1927,
we
propriated
for
with
when
1953
public
pro¬
by the two
had no income
Contrast
us.
our
amounted to
enues
gross
rev¬
$59,000,000.
Authority has 3,800 employees. It
great
has financed and
in
this
"the
And
further
that
quire
the
of
sums
expenditure
of
the
and
money
large
cordial
cooperation of the States of New
York
New
and
Jersey in the
en¬
couragement of the investment of
capital."
It
stated
could
the
that
this
best
through
also
be
accomplished
cooperation of the
through a joint
two States by and
or
common
agency.
New
agency was The Port of
York Authority which con¬
of
six
the
of
ties
non-salaried
Com¬
missioners, three from each State,
two
States.
represent
investment to
facilities
dollars.
the
is
no
right
either
agency,
to levy taxes and
to
pledge the credit of
Statd, the Authority was
directed
to
finance
one
billion
capital budget over
years for necessary
10
next
port improvements and fur¬
ther
development of existing fa¬
cilities
amounts
and
support
a
comprehensive plan of port de¬
velopment out of its own rev¬
to
an
additional
$500,000,000. Our icompleted pro¬
gram has involved the marketing
$262,000,000
self-supporting
power
almost
Our
lished
no
date of
facili¬
Authority
over $480,-
much
of it
at
dollar
values of 10, 15 and 20 years ago.
The replacement value of these
of
with
These
Port
a
000,000,
the number being increased later
to six from each State.
Estab¬
as a
17
some
new
This
sisted
leased
or
future
over
$830,000,000 of Port Au¬
thority securities of which about
Present
three
are
Staten
Island
include
the
Bridges join¬
ing that section of New York with
the
New
George
Jersey mainland;
Washington Bridge;
Commissioners
our
there
is
and
procedure in each
a
state for removal of Commission¬
that all major actions of the
ers;
Board
of
corded
Commissioners
official
in
are
minutes
re¬
which
sent to each Governor, who,
turn, may veto an action taken
by a Commissioner from his state;
are
in
that
in
tically
connection
with
prac¬
major Port Authority
project additional legislation has
been required in both states; and
every
that the Port
subject
to
Authority books
examination
by
the
are
the
of
the
Board, also,
New
Jersey. The
matter of policy,
as a
has made intensive
vices
of the de¬
use
of
private industry to give
independent check of our
which is
over
the
address
Bond
Club
City, April 29,
by
of
Mr.
New
Cullman
York,
before
New
1954.
York
built the Port Au¬
thority Building; the world's two
largest Union Motor Truck Term-
outside
auditors,
and Ernst
expert
ance
Ernst
Price Waterhouse &
or
Company.
We hire
to
audit
as
insurance
an
entire
our
In
program.
gaged
such
1952
McKinsey
&
insur¬
we
en¬
Associates,
management consultants, to make
searching
a
Active
Trading Markets
ments
in
ture.
An
Engineerihg
outstanding
in
in
the
are
BANK STOCKS
brief
time
our
sharp
emphasize
of U largest Philadelphia Banks
1927 and
These
solid
STROUD & COMPANY
Incorporated
•
Allentown
•
9
Lancaster
basic
the
Atlantic City
contrasts
which
between
1954 tend to obscure the
were
our
the
work
in
1927.
days of laying
The
a
who
men
first
authority in the United
They were trail blazers
bi-state
and
action.
revenue
bond
regional planning
They invented the
as
we
know
day.
They
initiated our
plans of port development.
it
to¬
is
too
not
challenge
fundamental, as farreaching and as portentous as the
challenge of flight itself.
If aviation
is
fulfill its mis¬
to
sion of bringing people closer to¬
gether in space and time, it will
have to
which
them from
serve
within
are
distance
of
their
in the country.
and, at
than
Prior to
duced
1947, the cities had
airport
rates
down
re¬
to
a
give-away level and
their shirts
as
were losing
they competed and
battled, with encouragement from
the
airlines,
for
what
they
thought was advantage in the air
Rents at La Guardia Airport
age.
sliced to
were
low
as
12 cents
as
foot for hangar space
square
with
the
their
maintenance!
City
agreeing
also
to
Airport Developments
In 1947 and 1948 the two States
authorized
the
Port
that
dwellers
airports
reasonable
a
businesses
and
out
It will have to do
the
time
same
pro¬
which
must
of
all
city
us
accommodate
and
adjust ourselves to.
Airport operators, airlines, air¬
craft
manufacturers and Federal
aviation agencies are all
trying to
solve this difficult social and
po¬
litical problem by
keeping planes
congested
areas;
by
transferring training
flights to other locations; and by
building new runways to facili¬
from
away
the
more
tate
landings and takeoffs over
the least populated area.
We know that future
transport
planes, be they jet propelled or
otherwise, must be so designed
that they can fly in and out of
Authority to
responsibility for financ¬
development and operation
of the metropolitan airports un¬
ance
der agreements executed with the
to
accept
ing,
congested metropolitan
mbre
no
noise
than
is
with
areas
other
or
disturb¬
reasonably tolerable
the communities
surrounding
City of New York and the City of the airports. We all believe that
Newark.
At that time,
the op¬ such standards and specifications
erating defi&ts of the airports are attainable and must be at¬
were
draining the financial re¬ tained.
/
I:
■
of
sources
dition,
the
two
cities.
In
ad¬
of money which could only
obtained by diverting funds
be
Terminal
development of the
required tremendous
proper
sums
Airports Will
Be
Kept Safe
We pledge that these terminal
airports will be kept safe.
We
from
badly
needed
hospitals, have the same confidence in the
schools, housing, etc. Consulting future of the airports of
this, the
engineers had advised the City greatest of all the world's air traf¬
that it would benefit fic
centers, that we have in the
entrusting its, airport to an future of aviation itself. We are
independent agency which could fascinated
that
the
men
who
of
Newark
by
employ
aggressive
policies
which
management
planned
1921
the
Port
lifted
crystal
Authority
in
their
ball
impossible
for the typical city department to
apply.
The
same
consultants
pointed out that all airports in
faces to the fu¬
ture and directed the new
agency
to prepare for the
handling of air¬
craft.
How
the
the
New
should
were
York
be
metropolitan
integrated
area
under
one
We
the
by the
this
agency.
knew
that
airlines
charges paid by
would
support
the capital and operating costs Of
the airports, but we believed that
from
similar
rent
as
other
than
airline
aeronautical
industrial
developments
areas,
could make
peripheral
substantial
contribution
We
support.
were
to
on
bv
a
the
airports
million
during 1953 and
of
air
more
passengers were carried
aircraft than were carried
by
all of the ten
enter
thousand ships that
leave New York harbor
or
each year.
Another
outlined
nual
of
activity
in
a
of
section
1927
of
was
the
An¬
Report which said:
"An
their
convinced that
that
handled 814
overseas
sources,
terminal stores
for
accurately they read
is demonstrated
fact
area
passengers
never
exhaustive
the
investigation
possibilities
of
marine
a
aggressive
and
imaginative
pro¬
terminal
motion
such
non-airline
rev¬
made at the request of the munic¬
of
enues
could
into
break-even operation.
a
day
these
steadily
ward
convert
facilities
the
are
airport
To¬
moving
along the long road to¬
goal.
In 1953 gross
that
revenues
from
amounted
to
20.4%
airports
$9,500,000
or
in
those of 1952.
interest
1953
compared
with
after
was
$451,000,
1952
deficit
as
spending $100,000,000 on
airports of the metropolitan
the
area,
the
have
we
nearly < completed
development phase at
basic
Newark
and
New
York
Interna¬
tional Airports
of providing
public roads, utilities
like
long before their
marine
terminals
In
1927
terminals.
ly led
channel
or
im¬
us
only studied marine
Such studies ultimate¬
into operation. Now in
we
Port
and
Authority
transit
Newark, the
thority Piers
minal in
of
the
wharves,
sheds
at
Hoboken-Port
and
the
Grain
Port
Au¬
Ter¬
Brooklyn constitute 15%
Port's
first-class
steamship berths.
period, the Port
In
covered
the postwar
Authority
been responsible for 60%
Continued
run¬
ways,
The
repre¬
provement projects."
charges,
however, the overall airport def¬
icit is approximately $2,000,000.
After
was
Jersey City,
Yonkers, Elizabeth and Long Is¬
land City, with
respect to local
1954,
fixed
Amboy
has cooperated with
sentatives of Newark.
piers
a
After
Perth
staff
of
$1,233,000.
at
ipal authorities of that city.
The net
deficit
over
operating
charges
the
about
on
has
of total
page
28
and
the
growth
foundation.
States.
and
•
of
worked the Port Authority during
those pioneer days builded better
than they knew.
They fashioned
in
Pittsburgh
our
operations.
our
significance of
•
profession
this speech,
study and check other
used to
aspects of
These
New York
their
analyzes
are
engineering problems. Other con¬
sultants, too numerous to mention
PHILADELPHIA
PHILADELPHIA
Board
of consultants who
continuously
Serul for comparison
of
improve¬
organization struc¬
our
composed
Maintained in all
study
Report said that "an
ble."
and
of
it
the
airport is primarily a terminal tect the natural right of people
facility for aircraft, and as such near the airports to live in peace
the Port Authority is interested free from unreasonable nuisance
in having the best facilities possi¬ —let us say, nuisance no
greater
of
State
as
And
that
say
as
this
such
the
Paris
to
is
1927 Annual
revenue
Director
and
neighbors.
here
homes, and not 50 to 100 miles
or
the
London
its
much
ceived that the new-fangled
flying
machine was here to stay.
Our
Comptroller of the State of New
and
now
the official representative of Gov¬
ernor Smith who at that date
per¬
Division of Budgets and Accounts
the us an
Holland and Lincoln Tunnels; the
virtue,
our
enues
and by the sale of bonds
efficiency and our
four metropolitan airports, New
secured solely by these revenues.
economy.
For instance, an inde¬
York International, La
Guardia, pendent audit of thb Port Au¬
In 1927 the Port
Authority had Newark and Teterboro; a railroad
thority's books is made every year
243 employees. It had no revenue freight
terminal
in
Manhattan, by a
nationally known firm of
*An
in
dromes
York
outstanding.
facilities
appoint
that
and
ports, marine terminals, vehicular
facilities and rapid transit.
After Lindbergh's dramatic
crossing of the Atlantic, I visited
Croydon and Le Bourget Air¬
airports
There are other rigid tests of
built, purchased
our management
which we must
port, terminal
development of such
also meet regularly and repeat¬
and transportation facilities in ac¬
terminal, transportation and other
Consider
that
the •; Gov¬
cordance with, and as authorized edly.
facilities of commerce would re¬ by directives of the Legislatures ernors, with Senate confirmation,
economies."
then
clearly demonstrated in
following discussion of air¬
the
corporations to Port Author¬
ity administration. The acid test
to
between
be
ness
In
Compare this modest organiza¬
tinuity
can
per
States.
Cullman
in,
and
York
York,
offices
grams
fa-
e s
of
movement
New
encourage
What the Port Authority Is Today
the
other
i 1 i t i
that
a
the
To
Board.
Federal
accomplish
transportation
c
as
Maritime
the
and
Board
against the Port.
terminal,
and
role
its
practices
coordi¬
Commission, the Civil Aer¬
merce
and
borrowed
fj;om the business of
tory bodies as the Interstate Com¬
Washington Bridge, for which it
had
sold
$34,000,000
in
serial
agreed,
port.
We represent the Port
of New York before such regula¬
York
the consent of
income
the
New
and
an¬
nually to do this job of "selling"
the port.
It is a promotional ef¬
which is critically important
to everyone who does business or
holds a job in this area, the gate¬
way
to America, where one of
every 10 employed persons draws
onautics
Island
$500,000
fort
producing facilities, and its only
annual income was the $100,000
appropriated to it by each State.
The organization had undertaken
the
spending about
are
progress
bi-State agency.
After
newest
our
facility.
Chairman, The Port of New York Authority
and
which is
waterfront,
By HOWARD S. CULLMAN*
Mr. Cullman reviews history
Times
the
fihronicle... Thursday, May 6, 1954
»
.«
full
utilization
can
be
expected.
We
invest another $175,000,000 for hangars, terminals and
other
buildings which will not
to
propose
only
turn
for themselves but re¬
earnings to reduce
pay
excess
current
airport losses and ulti¬
mately to help put the oepration
into
A
black.
the
new
and
very
ushered
cidents
and
in
the
basic
Newark
Con¬
the
in
by the tragic
Elizabeth,
temporary
Pocono Hotels Units
Leeds & Lippincott Units
Walnut Apts. V.T.C.
Pratt Read Co. Common
fundamental
problem in the history of aviation
was
John B. Stetson Pfd.
American Dredging Com.
ac¬
Jamaica
closing of
in
Airport. This problem is
relationship of the airport and
Samuel K. Phillips & Co.
Members
Phila.-Balt. Stock Exchange
Pennsylvania Bldg., Philadelphia
Teletype
PH 375
N. Y. Phone
COrtlandt 7-6814
i
Volume 179
Number 5322
...
The Commercial and Financial Chronicle
(1985)
Steel
The
Carloadings
Retail
Commodity Price Index
Food
By A. WILFRED MAY
Index
Price
Industry
.
X :: economic controls.
No
in the pace of overall industrial output for the
nation-at-large was evident in the period ended on Wednesday of
last week. Production, while it remained essentially the same as
the week before, continued about 10% below the level of a year
change
.
ag°.
'
;'/v.
,
Improvement
better
tone
noted in the employment situation and this
attributed to expansion in lumbering and food
was
was
processing. .The bulk of new unemployment resulted from de¬
clines in textiles, the needle trades and the manufacture of auto¬
mobiles.
•>
.
'.;7Y,
^ /
_7 ;7.„
•.;
v.',-.
•:
ing the week.
Continued
claims
week, while initial claims
In the
were
17%
were
with
even
lower.
the
1
preceding
check in 12 key states indicated.
New claims filed in these states
to
still
was
139,000
218,000, down from 257,000 in the preceding week
in the week before that. The 12-state total, however,
well
new
above
claims
the
corresponding 1953 week,
filed, it was reported.
were
pected.
the
costs,
between
15
The Bureau's
1947-49
peak,
but
when
only
and
consumer
of
15
Labor
and
Statistics,
further
relief
eased
is
ex¬
price index dipped to 114.8% of
This was 0.5% below the October, 1953,
higher than a year ago.
Bureau officials said
in
excise
taxes
and in the support price of butter,
April 1, will be reflected in later figures.
which became effective
Although
23%
Bureau
March
average.
1.1%
reductions
the
states
Feb.
steel
production
in
less than first quarter of
the
first
quarter
of
1954
was
1953, the industry's earnings de¬
only 12.9%, according to "The Iron Age," national metalworking weekly.
The steel
profits picture is based on an "Iron Age" compila¬
tion of earnings statements of 23 companies
accounting for more
than 83% of the industry's ingot capacity.
The 23 companies re¬
ported net profits totaling $123.6 million for the first quarter of
1954, compared with $142.0 million for the first quarter of 1953, a
decline of S18.4 million.
On
an
individual basis financial statements of the 23 compa¬
varied
widely.
Five of them actually earned more in first
quarter this year than they did in the similar period last year.
"Three companies suffered net
operating losses, it states.
Elimination of
first
quarter
lower sales
earnings
volume
profits tax
big factor in favorable
was a
world
of some companies.
In spite of
profit margins of most firms held
actually increased, it points out.
reports
some
The
production rate of the industry during the first quarter
averaged 72.8% of rated capacity; the steel produc¬
tion index for the period was 108.1 (1947-49 = 100).
By contrast,
the first quarter of 1953 operations averaged 100.0% of rated
capacity and production index for the period was 140.4, it notes.
-of this
year
The
chances
are
steel earnings
be fully as good as they
for the balance of 1954 will
during the first quarter but much
depends on these factors:
(1) Overall economic activity; (2)
international events, and (3) steel wage negotiations.
Domestic
12%
one
new
were
dealers pushed their
car
daily rate of sales up
April 1-10 to continue
during the period April 11-20 over
industry's liveliest selling sessions since World War II,
"Ward's Automotive Reports."
It
said
April's second
10-days netted 158,000 new car sales
—a nine-month
high for the period—against 159,000 in April 1-10,
but the daily rate climbed to near
20,000 from 18,000 because of
one
less
selling day available.
The current upturn,
sures
-or
than
exceeds
1,000,000 units for March and April combined. This
January-February by 30% and is only 6%
March-April last
New
lowered
the statistical agency said, virtually as¬
nine-month high of 510,000-plus new car sales for
April,
more
total
I:
a
car
below
state
i
•
of
f f i
i
c
There
e
to
inventories, it notes, have been checked but
by the sales upsurge, contrasting with used
which have been pared to a point
under the all-time
car
now
for
es- 7
a year
ago and
on
basis
a
of
? !
division
City of Provo City, Utah
im-
as
Germany now has
through international
Western Germany suffered
through actual experience
the
unwisdom
of
authorities
1936
to
Britain
of
economic
in
the
1948
page
34
Sale date:
May 14, 2:30 P.M. M.S.T.
Office of
City Recorder
many
control
by
from
period
than
Great
did
upon request at
or
nfTom°l948To 195/than
E.
2nd
SOUTH
STREET
SALT LAKE CITY, UTAH
such
.
German who sells to
can
a
soft
he
buy
dollars
at
will
the soft currency (sterling
or the like), because the Central
Banks of the soft currency countries provide dollars only for
cer-
longer directly against French
no
Convertibility
d States is. Those countnes h°wevcr ace worried at the
P1 osPect of losing their hai d
currency reserves and so being
?
*
raise the pace of dollar currency or devalue their own.
They would therefore forbid their
Germany
Western
Thev
rencv
^
brake
on
™ brak®
Germanv
hard
for
would
in
Western
cur-
fact
put
Germany's
't£UsAstern
f.ouid
An
ro Se^ountrieS0
longer
export
a^
much
as
it
would have to export in order to
for
Residents
lieai ^onveruouity tor Residents
A part of point (2) has already
nouncement of a
Dollar Free
List
comprising about 30%
of
all goods passing in trade. Any-
be able> out of the surpluses, to
for'its
excess
dollar
area
An
thig
SQ
j
in
fact
of imports from
however
ag
applies
Western
unable
to
0nly
Germany
sell
to
is
dollar
-z.
b°dy can buy the goods in this countries as much as it would
*lst from *he dollar area m any like to buy there. If, for instance,
Quantity he likes without restric- the United States lowered the
*ion- Of course, this also is for
protective tariffs by which
Present only a partial soluthemselves off against
Jion. because there continue to they wall themselves ott against
on
list.
The
>
A
the goods
quotas for
the
current
buying orders from European
countries, this whole set of prob-
lems would cease to exist,
Timing
stock
answer
to
And there still exist a number
in-
potentially
bearish
factors,
of
of convertibility, is "five minutes
be
of which we enumerated in
previous articles.
In addition,
ESSE? rpfnrm'anlf
bland
Actually, why do they not take
there is the very large budgetary
item entailed in the Eastern
the plunge into full convertibility
refugees arrival in Western Ger-
now?
many;
of the free market economy with
the
that
period afterwards, and sees
only the unregimented play
work1<nossitdeet The3 mibhc^comthe
pares
planned
of
economy
after the British'" But this may
oversimplification.
some
free dealings, 10
Western Germany would probably
Ifl there
were
their
number
exceeding
million, and their expenses
Continued on page 42
Eastern Germany with the market
of
economy
and
sees
Western
that
only
offers
the
Germany,
the market
of
prospect
obtaining a better real wage for
better work, and promptly at that.
Basic
We
Implications
are
pleased to
announce
the forrraiion of
Free
convertibility of curren¬
implies the following things
the Germans:
to
(1) A
foreigner who sells to
Germany must be able to
buy in any other country with the
Western
proceeds
called
of
his
export.
This
NESBITT, THOMSON and COMPANY, INC.
25 Broad Street, New
is
York 4, N. Y.
Telephone: HAnover 2-8875
"foreigner's convertibility."
(2)
A
West
German
who
sells
abroad must be able with his
proceeds
needs
in
Andrew i.
ex¬
Raymond
Vice President &
to
buy
what
he
Manager
other country with¬
out the procedure of applying for
a
permit and without quota re¬
any
striction.
This
is
known
as
"real
convertibility for residents."
when
Affiliated with
Nesbitt, Thomson and Company, Limited
Investment Dealers
they wish, to employ their
money
at short
banks
or
or
Montreal
longer term in
companies;
and
Thomson & Co., Montreal
foreigners must similarly be able
25
some
Quiries for a forecast of the time
•
F. T. BOISE & CO.
use
<
Suppose however that Western
Germany blocked that course for
the foreigners; that is to say that
even within E.P.U. Western Germany supplied German currency
only against dollars or gold, and
period
to
any other country in the world,
Everybody in Western Germany
foreign
City Recorder's Office
able to
buy in
country.
imP°rt
(3) Proof of the wholesome ef¬
fect of a free market economy has
been brought
home to Western
(3) West Germans must be able,
Prospectus available
obtain
7n
France.
or
would
a "hard currency area" for those
countries just as much as the
not
port
SEWER REVENUE BONDS
exporting
will for the
Germany P yment purposes.
j
exchange.
measures
others
currencies freely into dollars.
PortajitWestern of raw materials been realized through the ansources
which
9%
"Ward's" said April 16 (Good Friday) marked the
1,500,000th
$1,100,000
they
instance, tain approved imports, and dollars
It even are not made freely available for
Poland, and used them
with
and
francs, sterling or Italian lire,
Then Western Germany would be
Nor
^Jes so
cies
on
countries
buy anything with it in U. S. A.
May
of 1937, which included the areas
now
controlled by Soviet Russia
(2)
only by West
importers.
Frenchmen,
stocks
high of last Nov. 30.
Continued
a part
Germany depends with
of labor—much more, for
than does the U. S
A
more
demanded
them through me European Paywlcin
lfirouKn the European jrav-
currency
country
receives only
soft currency.
He can thus not
A. Wilfred
Western
procure
be
riot
other soft
West
importantly on an exchange of
goods and services with the West-
and
dollars
1 for
would
endanger the rate
for the DM, because dollars would
sterling. They want dotlars, Swiss francs or gold. But the
ex¬
World
demand
excess
ment in
Western
ern
an
which
;
Germany:
(1)
r
Traders in the U. S. A, for instance, will not sell against pay-
•
•
peciaily strong
in
to
invest
be
called
in
Germany.
This
may
Members Montreal, Toronto and Canadian Stock Exchanges
"full freedom of inter¬
national credit and
actions."
~
'
why
free
currency
Germaiiy,
currency
'<
v.
ncy.
changes is
•
"Foreigners' DM Acthrough people in
as
accounts to
demand
The
paralleling
they now simply allowed a
market in DM against
dol7
lars, there would very soon arise
>■
arise
present only, be
to be three
the
far
so
soft
appear
reasons
If
»
free
(1) above will be realized.
part, however, because
in
counts"
•«
pro¬
for its excesses
the dollar area;
pay
.With the establishment of "For- ments Umon so as to be'able in
elgners' DM Accounts," which is this way to convert their own
in
a
coun¬
that, with the
imports from
Italians
about t0 take Plaee Shortly,
greatest
economy
year.
non-dollar exports
Foreigner's Convertibility,
7
Only
of the
declares
the
to
can
German
of point
be
can
brought
this year
reasonably well and
y
Of
economy
of the Western
to
excess
tiL7
converti¬
bility that the
clined
nies
Western
free
e
Living
0.2%
—
she realizes that it is onlv in
cond i
full
new claims for unemployment
for two weeks, declined, a spot
and 228,000
BERLIN;.; \ Germany
cause
up
amounted
-
Germany
•(2) Be able to convert into dol¬
lars the soft currency proceeds of
its exports to non-dollar countries.
restrictions.
•
7
?oXar«w!LalTl~ir hi1
j
as
sufficient to pay for dollar area import excesses, and ability
*:
7Y to convert into dollars its soft Currency surpluses. Cites autho> ritative
German view holding free
operation of machinery
7.
of international ere At transactions and interest arbitrage would
7, ; fMW® scttlcmeiit
balance of payments without import
.v.7■/:'
period ended April 17,
compensation, after moving
Lists prerequisites,
much
so
ceeds, it
7,v:
dur¬
■■■'.
Total claims for unemployment compensation decreased
•
tries
,
of
7
sell to them.
(1) Export to non-dollar
WrVMay .report8 Western Germany's aim toward full convert-*
ibUity, stimulated by her beneficial experience in abrogating
Business Failures
>
dollar
present
can
Western
must:
Auto Production
and
-
Therefore
Currency Convertibility
Trade
the
in
more
countries, than it
Electric Output
j
State of Trade
buy
The Outlook for German
Production
5
capital trans¬
May 3, 1954
6
(1986)
The Commercial and Financial Chronicle
Adirondacks;
Leading Companies in Lead
has
rutile
in
is
look at this heavy mineral—from the mining and
application and use via the top units, St. Joseph
oldest,
the most useful, of our
and among
metallic
to
of the
one
elements.
very
It
known
was
tribal forebears 3,000 years
our
ago, and
given
the
a
Old
Test-
t.
m e n
think
in
We
it
of
as
soft, highly
a
worth
balance
under
Let's
side.
switch
There's
talization
here
$2.00
listed
paint
net,
an
Bradstreet
giving rise to
capital, of
that
1953
classic
phrase
a
pipe
"lead
War
I,
was
com¬
heavily
of
lead,
which
and spread out when it
posed
flattened
reached
its target.
tary
the
on
this
history
ancient
20th
and
and
use
weighty
where
see
it
fits
of
metal
into
our
Century industrial society,
perceive its usefulness as a
and
field
of
investment
formed
for
the
investor.
St. Joseph Lead Co.
by St.
Joseph Lead Co.
Belt, in S. E. Missouri,
St. Joseph mills about 27,000 tons
of lead ore per day (1953); and a
At
run
Lead
virture of
run
through an additional 2,000
day by the end of this year.
tons
a
Outside of the U.
has
S.^ St. Joseph
Brunswick, Canada
Lead
Ridge
Mining'
New
a
subsidiary,
Co.
Ltd.,
with
an
body
ore
of
and
itself
to
1952, and
zinc
They
translated
into
a
price, and
dividend in 1954.
While we're
other eminent
to
on
the
there's
is
somewhat
of
little
misleading,
for
lead)
and
it
Latin
has
an
Argentine
subsidiary, Compania
Aquillar, S. A., which, due
exchange restrictions, has been
Minera
written down
the balance sheet
on
to $1, a king size understatement
of asset value and earning power.
special
for
reason
discussing
since
It's
pound in 1951 to
cents
last
18
cents
low of
a
llVz
Although
St.
Joseph ranks as perhaps the low¬
est cost producer, and can show
a
profit even on 12 cent lead, it
could
.year.
not
prevent
important
an
share earnings slippage from
$5 in 1951, to $2.32 last year. But
per
there is
First
stock
is
among
heavy
no
due
consumers
months of hand to mouth
and
should
the
much
over¬
zinc
quite
a
scurry
to
buy.
Further, about 40% of lead used
is imported and if the tariff on
foreign metal be raised (this
this
has
been
recommended
St.
gress)
mestic
Joseph
producers
significantly.
the
be
fortunes
an
since
some
St.
tons
St.
in
60%
to
Con¬
other
would
Also
of
increase
abroad.
"000
and
do¬
benefit
important
to
Joseph would
the
zinc
comes
About
is
tariff,
from
Joseph produced 99,-
smelted
of
by
lead
St.
as
great
perhaps, are its
Boy" brand) and
and
pigment
it has done
gross.
Lead is
verse
corporation.
acquired
about
In
di¬
1953
Doehler-Jarvis
for
since we're in
it
20%^
from
turns
out
of
and
oil well
gross
this
formers,
and
drawing
currently
division.
LT
for railway
engines; muds for
drilling-(I've got a couple
oil
shares
that
of
LT
bead
a
these
appeal
some
the
on
per¬
equities
those
to
capital
Titanium
Something
different.
full employment,
tant that
we
from
to,
full
or
On
gains.
of
Morris
ner
the
S.
general partner and
Becker a limited part¬
a
in Greenwald & Co., 61 Broad¬
and
New
York
or
ment is
away
as
in
has
paints.
a
troller
said
for
electrical
and acid resistance.
is
for
quite
a
important
This titanium
materials.
pro¬
Joseph;
derived,
at
Tahawus
in
Wiegand's arti¬
our
trends
will
results
the people
way
inacceptable
country.
our
employment.
as
the
with
restraint
a
approach to
H. FREDERICK IIAGEMANN, JR.
President,
Rockland-Atlas
National Bank
them
want
and
my own
Boston
of
Regarding the article by Dr. Carl
"Full Employment and
Dangers," I wish to emphasize
that, in my opinion, the Employ¬
Wiegand,
that
we
need
swings
ment
down
with
a
have
no
and
our
proce¬
economic system that
our
keep
feel
to
mechanisms
on
dures in
will
of
Any
economy.
I shall not be content with any¬
lead
quickly.
But
our
this objective will be
to
humility that unfortunately
not appreciated by all who
want
Bonder
system which settles for less than
it is today,
approached
are
H.
Gecrge
imperative in
determination to regulate needs to
to
unemploy¬
of
minimum
a
minimum
and
amplitude,
doubt. So far
our
I
troubles
Its
A
ment
of
t
c
1946
ought to
be repealed or
its
language
modified
to
much
the extent that
as
by what
hope we
will benefit from this experience,
all agencies of
I
the
and from the discussions you
ing
have been caused almost
by what
have
we
have done
we
failed
to
do.
as
have
initiated.
govern¬
includ¬
ment,
the
Fed¬
Reserve
eral
P.
Board, do not
CONRAD
feel
&
Electric Co.
With reference to Dr. Carl Wie-
a
reasonable
Stock
Ray,
Sr.,
interpretation on the
"Employment
Act of 1946,"
by taking no
direct governaction
ment
the face of
ment
they
charged
trying to
p
loy-
totaling
maintain
all
at
The
that,
for
32
years,
President
of
was
Senior
Rauscher,
e x
Vice-
Pierce
p e
rience
shows that in¬
&
flation
can
be
Co. Mr. Ray was a member of the
controlled
Dallas
with
Bond
Club,
the
Texas
Group of the Investment Bankers
Association of America, the Dallas
Athletic Club, and the "Bonehead"
Club.
Joins Robert Buell
LT
C.
P.
HARTFORD, Conn.—Richard P.
Eadie is
and
now
with Robert C. Buell
Company, 36 Pearl Street.
unem¬
ployment of
Conrad
between
and
6%.
There
is
4%
therefore
no
necessity for allowing unemploy¬
ment to go any higher.
Business
for
takihg
has
a
prevent
severe
the
responsibility
protective
action
recurrence
depressions
as
of
to
such
that of the
statement
if
ment"
it does
to the
you
on
has
have
one
side
been
"Full
of
a
made
Employ¬
coin, that
the other side of the coin is bound
to have
"Inflation"
on it; the two
hand, for with fullemployment the only way one
employer can get additional labor
hand
go
is
investment business in Dallas
H. F. Hagemann, Jr.
rest of the economy.
who,
that
times
regardless of what
believe
Ray, who had been in
full
employment
mately 6%.' I
Mr.
the
the
that
are
with
gand's article, I believe that the
present Administration is putting
was
all
ilmenite ore, from which titanium
is
Dr.
to
my
thing less in
(Spebip.l to The Financial Chronicle)
of
full
approxi¬
the
for
insulation
reserves
BENDER
judgment, the goal of
employment is an absolute
Rauscher,
away.
metal with the greatest
standard structural
II.
have,
of
in
Rogers
Lead
strength-to-weight ratio of
Relative
cle, in
Pierce & Co., Dallas, Texas, passed
applying these pigments to whiten
paper
and opacify it
(whatever
than means!);
it's also used in
ceramics
GEORGE
S. Congressman from Ohio
U.
and
when
u n e m
division
development
trend
we
we
that
Rogers Ray, Sr.
National
Titanium
This
favor¬
business.
jobs by
from full employ¬
crude
Exchange.
formerly comp¬
Zuckerman, Smith &
Mr. Patterson
titanium, where in LT is
becoming a major factor. Starting
in originally with titanium
pig¬
ments
of
a
it is impor¬
But
developments
New York City, members of
way,
about
now
creating
able climate for the
our economy
measurement
C.
May 7, William J. Patterson
will become
Division
be
employment.
includes
action
the only
as
when
and
Co.
also
act to maintain
desirable
know when
employment.
toward
Patterson & Becker
are
gross.
should
mind
my
an¬
Chairman, Iowa-Illinois Gas
This mud sounds unin¬
10%
some
leading
'also
in
many
Greenwald to Admit
bearings
Canadian
are
doubt
no
also
diesel
all mud!).
we've
speculative
is
that government must consciously
something
There are a
going to regulate
be
mayhap
make
may
and
use;
sensatioal
There
plant
expenditures
is
for
and
investments
most
end
are
like
these
budget
long-range view.
a
reasons for this and
Wiegand and his excel¬
lent discussion points out a num¬
ber
of .them,
perhaps the most
significant of which is that, if we
ago.
market where the
a
good
looks
is
elite
Corp,
automotive
appliance
stems
of
pretty
die-casts all sorts of metal
household
cars
a
Fact
that
to
entirely
years
organizations,
on
tioning socialFull
employ¬
system.
literally adopted
means
62
companies in lead would upgrade
a
great many investor lists; and
of
National
two
briefed.
for
account
the
.
ment
that
out
industrial
down
("Dutch
40%
some
has
of zinc last year.
one-third
today
research,
Na¬
of
of
.
duced
it,
looking
paints
paints
of
stockpiling of lead
be resumed, there might
develop
placing
started
at
forward
a
policy,
equipment
based
income,
to
government
and
look
you
methods,
strengthen
follow a stable
objective in
any well func¬
Philip Sporn
basis
not indicate any particular leaden
skies hanging over the horizons
buying;
talked
$2.85,
chemical; and it has looked
mighty good to its shareholders}
good reason to
there
of
out
year
which
a
os<
think, teresting enough but it serves an
a
turn-about may be in the off¬
important function in drilling by
ing,
and
if
keeping the bit cool, and con¬
you'll
pardon
an
anomaly
in
underground
pressures.
physics, r lead may trolling
start to rise.
National Lead is the largest
sup¬
plier of these muds, which, plus
Demand Stimulants
engineering services, account for
now
it
an
46 V4
quality items.
is
enterprise
on
at
busi¬
Professor
where lead is the basic
ingredient.
Most famous,
products
of
$92
through the years.
Today's footnotes on metals do
tically
high
over
almost
items
manufacturer
which
a
way
Lead
stress
mined, and
it bought; but LT is the
lead is that its price dipped dras¬
from
all
are
Any
•
the
figure;
yielding around 4.1 %>
$1.75 last
tional
is
lead
147
the 'common
These
continuous dividend payer on the
common
since 1906.
Here the
name
ment, full
nual
a
towered
by
employ¬
sound
balance sheet.
a
sought,
full
is
top drawer $7 "A" pre¬
sells around -.176 to
4%,
a
$6
"B"
preferred
around
an¬
Quite
1943
and
that the
end
is
that
yield
comes
the
assets
that
are
should develop new products
HON.
into
$203.5
and
inventory
to
seems
me
economic
at
the
in
every
a
ferred
mind, National Lead Company,
business for 62
years, and a
in
of
You have three ways to become
National
Lead
stockholder;
a
be
subject,
out
through
stood
liabilities
millions.
Co.
in lead
name
nd in his
It
oVer
1953 year end.
double
current
and
Lead
cents
oozed
current
paid
National
7.1
March, 1954, by the-Re¬
Policy Committee are
advisable. The highlights of these
April 8.
Net income
34%
issued in
search
"Chronicle" of
dra¬
a
was
discussed by
Dr. Carl Wie-
dinner
up
up
account
million,
and
bash
fatter
a
which
its
at
for
through research, should improve
application of the provisions of
the
Employment
Act
of
1946,
article
■
their
Policy
in
National
on
sales organizations,
to discuss the Consequences of the
g a
the measures
Committee
Development
marketing-
Corp.
excellent idea
an
column^ Investment in af¬
Plant
exalted
more
and
1952.
over
lion at the
lodge
conceivably,
share
believe it is
I
filiates, which cost the company
$9,275,000, was worth $23.8 mil¬
don't
you want to
could
cobalt
peek
high
dollar
the net
which
record going back to
pretty sturdy; and a pos¬
hop in the prices of lead
and
road
a
turkey
a
$30,800,000,
sales
to¬
at
is
most
a
matic 22%
dividend
1934
sible
A
is
time
all
was
in a sound mining enter¬
prise at this time, there is much
to suggest that St.
Joseph with
largest
A
report
an
Jersey
stock
services.
for
Service
stockholders, present and pro¬
spective. Sales were $436 million,
funds
Plomb
is
powders
financed.
expect zinc to sink!
Altogether, if
a
to
&
holding of
million
a
Electric
Missouri, a nickel mine in
Cuba; and the company is pro¬
cessing castor oil for paint (in¬
stead of pains).
Quite a company, this National
Lead,
growing,
well
managed,
recently been getting
signals from some of the
only
(plumbum
Inc.,
rubber
that
the
by
Statement
ness
Gas &
American
President,
-
National
affiliate,
delivering
syn¬
believe
recommendations
SPORN
PHILIP
mine in
has
investment
—EDITOR.
Inc.
in
'30s.,H
indicated
Economic
earning
construction. There's also
venture,
Oil, and
New
of
price,
great promise. It also has 17M»%
interest
in
Nord
Africaine
du
word
oil
at
$71/2
seem
communications
for
shares
"buy"
today
present
to
of the
already in hand and will be
happy to make provision for
others in subsequent issues.
new
a
well
Continental
worth
should, by
$6 million investment,
a
Dun
be sneezed
to
Indian Creek mill
new
from
an
Zinc,
day's
a
Lead, like most other minerals,
begins in the mine, and the big¬
gest mines in the U. S. are owned
and
thetic
with
are
with
not
in¬
dividend-conscious
and
joint
a
to
values
there's
Rubarite,
working
$24 V2 million at the
end, 60% of it in cash
picture
long
addition
extra
Lead,
Dividend
couple of extra attractions in
195,000
Well, enough of this documen¬
—let's
A
affiliate.
do. offer
term possi¬
Inc.,
Rubarite,
For
governments.
this
privileged
some
'
and
indi¬
an
Oil Investments
bullets, and
ammunition, out¬
World
in
dramatic
for
LT
and
Metals
1953
and
you
production
power.
cinch."
Lead is also slang for
the "dum dum"
nod
what
year
"Full Employment and
Its Dangers'1 Discussed
is
stuff
ton,
a
mass
before you'll be driv¬
titanium bodied sedan. This
bilities
pay, out about
the average, but
on
approving
page
occur
a
some
dividend, $2.75, was
actually more than was earned
($2.32). Balance sheet would get
pipes,
of
titanium- deal,
last .year the
(white lead),
lawed
NYSE
dividend.
75%
of
the
$27,000
lot
a
Titanium
policy has been to
and
Cobleigh
ing
financial
selling today at 37 with
cated
from first
—
shares
common
the
to
Continued
with
Since
around
see
must
complicated capi¬
just 2,716,222
no
malleable
Ira U.
contract
by
Smelting & Refining
Co. For zinc, there's a smelter at
Josephtown, Pa. which can turn
out 108,000 tons a year.
metal, native
to
fishing
lines (sink¬
ers),
Nevada.
son,
Company.
American
honorable
mention
partnership
can
the
it
Australia.
Allegheny
Ludlum Steel, is the nation's. largest producer in a plant at Hender¬
extraction to
Lead
in
placing high
priority
on
the
production
of
titanium metal and National Lead,
Enterprise Economist
Lead Co. and National Lead
Norway,' and
lands
The government is
By IRA U. CORLEIGH
A two-way
in
ore
Thursday, May 6, 1954
...
to
in
out-bid
in
turn,
workers.
another
has
to
employer,
the
replace
This process of compet¬
and out-bidding results in a
spiraling of wages and a spiraling
ing
of costs.
Inflation, in tbe long
unemployment
mass
misery,
and
as
run, means
and
mass
prices get out of hand;
to plan proj¬
it is impossible
ects
that
time
to
take a long period of
complete, due to the im¬
possibility
of forecasting
costs.
Then,
those
the
heavy
and
compete
people
employed
industries
swing
in
over
for jobs with those
Volume 179
the
in
Number 5322
The Commercial and Financial Chronicle
...
industries
consumer
aid
Tlis
only stop rising, to compensate for higher prices, but *
also, in serious inflations, have t
not
wages
been known to fall.;
A
anniuuimint is
tbisi
Bonds, and is published
und.r
NEW
bt cmstruid avail offtrity if tbesi
fer sail er as a siiicitatim if an iffirti buy any ef
behalf of inly such if the undtruriters, including the undersigned, as may legally offer these Bonds
Official Statement.
\
c:rcumst»ncu t»
tit
in any
Stati
en
such State. The offer of these Bonds is made . nly by means of the
in
.
.
ISSUE
r
1
~
'
«
-
May 5,1954
:
.
good employment, act, looking <
good and gen-
j
eral welfare of the workers, would
$239,000,000
i
the
to
(1987)
long-range
the
stress
sound
benefits
abandoning
or
principles
proven
TURNPIKE
the
adopt
economics.
of
the
wnether
slogan,
it
short
or
AUTHORITY;
they
pull—in
certainly
mended
ject.
the
long
should
be
for bringing up
An
MAINE TURNPIKE
Rochester
run
3.30%
com¬
open
be revealed, is bound to
Turnpike Revenue Bonds (SERIES 1954)
Payable solely from Revenues
this sub¬
discussion of it, so
that the true economic facts can
Dated May 1,
100%
Price
be help¬
Portsmouth
Due May 1, 1994
\
And accrued interest
HERMAN
forth in the Official Statement
as set
1954
ful.
HON.
:
net—"Play it for
we'll all be dead."
You
Portland
age-old
Too many "elder statesmen" today
will admit
.
MASSACHUSETTS
law covering em¬
ployment would
not stress full
employment at the expense of in¬
flation, or full emplovment at the
good
expense
;
of
and balanced budg¬
money
A
ets.
long-range
-
-
to
NEW HAMPSHIRE
"
TALMADGE
E.
TURNPIKE
date of delivery
U. S. ROUTE 1
Governor, State of Georgia
I found Dr. Wieaand's paper on
the employment situation most in¬
teresting reading.o
MASSACHUSETTS ROUTE 128
Pittsfield
®Lenox
Worcester
Boston
new york state
ihruway:
.
Franiingham
;
.
Sturbridge
MASSACHUSETTS
ROUTE
f
WILBUR CROS
i
HIGHWAY"
Gov. H. E. Talmadge
My
view
own
nomic
ills
that
is
of this
15
MERRITT
the
country
PARKWAY
eco¬
LEGEND.
be
can
cured by the adoption of a realis¬
tic Feaeral budget and the creat¬
ing
of
substantial
tax
relief
Constructed
Under.Construction
to
both individual citizens and busi¬
*0009? 0 Proposed
NEW JERSEY
nesses.
HUTCHINSON RIVER PARKWAY
TURNPIKE
GEORGE V.
CHRISTIE
Vice-President,
first
proposed
Map showing certain connections with various highways constructed or
National
Bank of Arizona, Phoenix, Ariz.
May I
Hugh C.
for
say
received
that Dr. Carl
entitled
"Full
paper
Employment and
President,
our
Gruwell,
Wiegand's
Its
Dangers"
bonds, and semi-annual interest (May 1 and November 1) on coupon bonds, payable at the principal office of The First National Bank
New York, N. Y., or The First National Bank of Chicago in Chicago, III. Principal of fully registered
and coupon bonds registered as to principal payable at such office of the Trustee. Coupon bonds, registrable as to principal, issuable
$1,000 denominations; fully registered bonds without coupons, issuable in $1,000 denominations or any multiple thereof; and coupon bonds and
fully registered bonds being interchangeable as provided in the Trust Agreement.
Principal of unregistered
with
in
passing
interest.
I
a
The bonds
Mr
i
m
n
payment
clined to agree
with the many
who
have
Interest
K JHL
ex-
to
the
i
g
Bp fj
Wf/M
the
government's
..
f;'JJjy
employment.'
be known as the "Massachusetts
Turnpike" and provides for financing the project by issuance of revenue bonds
of the Authority payable solely from revenues. These bonds are to be issued
to
provide funds to construct the portion of such Turnpike indicated on the
above map. The Enabling Act expressly provides that neither the faith and
credit nor the taxing power of the Commonwealth or of any political sub-
/
/ ;
-
George V. Christie
witnessed
We
titanic
These bonds
the
by
eflort
demand
sumer
the
in
scales
manent
•
of public works
the TVA,
which is
West
so
watersheds
fit of low cost power
the bene¬
to thousands
thousands of communities.
What I
or
am
trying to
issued and received by the Underwriters, subject to prior sale, to the right to reject any
the authorization and issue of these bonds are subject to approval by
the Underwriters, and Ely, Bartlett, Thompson & Brown, Boston, Mass,, counsel to the Authority.
Pershing, New York, N. Y., bond .counsel to
benefits
have
of
mentioned
have
no
any more
these
and
difficulty
readers
your
with Lord
items
I
others,
in
Lehman
Kidder, Peabody & Co.
Hornfclow.er & Weeks
Ripley & Co.
Incorporated
1■
Union Securities
Smith, Barney & Co.
Paine, Webber, Jackson & Curtis
Brothers
Harriman
Halsey, Stuart & Co. Inc.
Goldman, Sachs & Co.
Glore, Forgan & Co.
A. C.
Coffin
Allyn and Company
Lee Higginson
White, Weld & Co.
B. J. Van Ingen & Co. Inc.
Corporation '
&
C. J.
Burr
Devine
,
.
Incorporated
-
•
who
ourselves
'
Day & Co.
Stone & Webster Securities Corporation
Hayden, Stone & Co.
Ira Haupt & Co.
Incorporated
■
_
American Securities Corporation
I
•
Bacon, Stevenson & Co.
.
Reynolds & Co.
Ladenburg, Thalmann & Co.
First of Michigan Corporation
Clark, Dodge & Co.
Braun, Bosworth & Co.
Dean Witter & Co.
Wood, Struthers & Co.
G. H. Walker & Co.
R. L.
Shields & Company
John Nuveen & Co.
Alex. Brown & Sons
Incorporated
Tucker, Anthony & Co.
Hemphill, Noyes & Co.
Co.
Salomon Bros. & Hutzler
R. W. PresspricH & Co.
Phelps, Fenn & Co.
Lynch, Pierce, Fenner & Beane
Blair, Rollins & Co.
r
&
"■
Incorporated
Bear, Stearns & Co.
Estabrook
& Co.
1
Merrill
Corporation
W. E.
•? '
Barr Brothers & Co.
Dominick & Dominick
A. G. Becker & Co.
Incorporated
I
disagree
into
pros¬
W. C. Langley &
Kean, Taylor & Co.
Company
Incorporated
W. H. Morton & Co.
Aubrey G. Lanston & Co., Inc.
Co.
Incorporated
Wm. E. Pollock &
The Ohio Company
>
'Jownsend, Dabney & Tyson
Chas. E. Weigold & Co.
Rand & Co.
Shearson, Hammill & Co.
Courts & Co.
Andrews & Wells, Inc.
Hannahs, Ballin & Lee
J. C. Bradford & Co.
Incorporated
V
Gregory & Son
Incorporated
Bacon, Whipple & Co.
F. Brittain
Hirsch & Co.
Robert Incorporated & Co.,
W. Baird
'
Kennedy & Co.
J
-
Singer, Deane & Scribner
•
William R. Staats & Co.
Stroud £ Company
Incorporated
Incorporated
Carl M. Loeb, Rhoades & Co.
Byrne and Phelps
Incorporated
A. M. Kidder & Co.
King, Quirk & Co.
Laurence M. Marks & Co.
Chace, Whiteside, West & Winslcw
Incorporated
John C. Legg
& Company
Incorporated
_
R. H. Moulton & Company
Incorporated
Stifel, Nicolaus & Company
F. S. Smithers & Co.
Roosevelt & Cross
Co., Inc.
Incorporated
Wertheim & Co
Incorporated
Lyons & Shafto
Eldredge & Co.
I
E. M. Newton & Company
John W. Clarke
Bache & Co.
Francis I. duPont & Co.
Incoiporatcd
(Incorporated)
The Illinois
Hallgarten & Co.
Geo. B. Gibbons & Company
Adams, McEntee & Co., Inc.
R. S. Dickson & Company
Dick & Merle-Smith
Central Republic Company
Blunt Ellis & Simmons
Schoellkopf, Hutton & Pomeroy, Inc.
L. F. Rothschild & Co.
The Robinson-Humphrey Company, Inc.
Hutton & Co.
William Blair & Company
agreeing
Keynes and his theory
spending
perity.
Tripp & Co., Inc.
Blyth & Co., Inc.
The First Boston Corporation
Incorporated
of
These bonds are to be issued under and secured by a trust agreement
dated as of May 1, 1954 between the Authority and The First National Bank
of Boston, as Trustee, which provides for the issuance of additional bonds
under the conditions and limitations referred to in the Official Statement.
of the Official Statement for delivery when, as and if
(
is that
say
everything is all bad
with
the interest
modification of the offer without notice. Legal matters relative to
than it is all good and despite the
obvious
or
controls
which have also brought
not
means
withdrawal
Incorporated
magnificent
in the scope of its conception and
its operation. There would be the
great Hoover Dam and other of
and
of
comes
Among such would be included
Far
to
F. S. Moseley & Co.
Drcxel & Co.
United States.
the
to
Mitchell and
began to change
of the econ¬
much
of per¬
value to the people of the
spending
highway
favor
that out
fact
express
con¬
We cannot, however, ignore
omy.
the
ultimately
that
know
toll
offered by
are
order and
Government to spend us out of
we
under the existing statute and court decisions.
profit made on the sale thereof) are exempt from taxation within
,
Federal
the
depression in the early '30s and
a
any
division thereof is pledged to the payment of the principal
on the bonds.
Enabling Act creating the Authority empowers it to construct, main-
tain and operate a
con-
n
therefrom (including
Commonwealth of Massachusetts.
the
The
terms
that purpose, or in part on any interest
redemption
the opinion of counsel named below,- from all present Federal income taxes
the bonds is exempt, in
on
whole at any time on or after May 1, 1962 from any moneys which may be made available for
after May 1, 1959 from moneys in the Sinking Fund; all upon the terms, and in the case of
prior to May 1, 1984, at the premiums, specified in the Trust Agreement.
on or
Enabling Act provides that the bonds, their transfer and the income
The
negative
c e r n
as a
date
S
pressed themselves
tri redemption
subject
are
W
-
of
bonds without coupons
than
more
coupon
Boston, Trustee, in Boston, Mass., or Bankers Trust Company in
is
Spencer Trask & Co.
Van Alstyne,
Noel & Co.
Wee Jen & Co.
Incorporated
I
8-
(1988)
The Commercial and Financial Chronicle
,
Pittsburgh
•1 Wall
Steel
Company—Analysis—Gartman, Rose & Co..
Street, New York 5, N. Yi
'
-
-
; • ;
*
;
COMING
Public Service Co. of New
Hampshire—Analysis—Ira Haupt &
Co., Ill Broadway, New York 6, N. Y.
Reeves Ely
<
'
.
.
.
{
.
.
Riverside Cement Company—Analysis—Ask for
report T-31—
Lerner & Co., 10 Post Office
'
that the firms mentioned will be pleased
send interested parties the following literaturei
Sinclair Oil—Bulletin—Peter P. McDermott &
New York 5, N.
Y^'V
Texas Pacific
Automation—And
from
a
5, N. Y.
&
common
stocks that should benefit
Also available is
a
report
on
brochure
a
of
data
on
11
Newmont Mining.
selected
Life
Company Stocks and
Stocks
an
analysis of New York
31, 1954.
of March
as
available
Oil
Corp.—Analysis in current issue of "Gleanings"—
Co., 1 Wall Street, New York 5, N. Y. Also
is
a
.
West Coast Telephone Company
discussion
Bank
Financing—Bulletin—Aubrey G. Lanston & Co.
Inc., 15 Broad Street* New York 5, N. Y.
NSTA
Notes
New York City Bank
Stocks—Comparison and analysis for first
quarter of 1954—Laird, Bissell & Meeds, 120
Broadway, New
used in the National
Quotation Bureau Averages, both as to
and market performance over a 13-year period —
National
Quotation Bureau, Inc., 46 Front Street, New
yield
Stroud
Y.
Stocks
Analysis of 11 largest banks —
Company, Incorporated, 123 South Broad Street,
&
—
Philadelphia 2, Pa.
Public
Utility
Saxton &
Common Stocks—Comparative
figures—G.
Co., Inc., 70 Pine Street, New York 5, N. Y.
A.
Pulp Industry in Japan—Analysis in current issue of
Nomura's
Investors Beacon—Nomura Securities
Co., Ltd., 61 Broadway,
New York 6, N. Y. Also in the
same issue are analyses of
the Electric Wire and Cable
Industry and Spinning Industry
and discussions of Investment
Trusts in Japanese Economy
and current foreign trade.
Stocks for Appreciation
115
Review—Ralph E. Samuel
&
Broadway, New York 6, N. Y.
*
*
Co.,
on
Study — New York Hanseatic
Corporation, 120 Broadway, New York 5, N. Y. Also available is an analysis of Central Indiana Gas.
—
Topeka & Santa Fe Railway Co.—Bulletin
(No. 163)
—Smith, Barney & Co., 14 Wall Street, New York 5, N. Y.
Also available is a bulletin (No.
162) discussing the railroad
labor force, and a memorandum on
Puget Sound Power &
Light Co.
Wall
Co.—Memorandum—Kidder, Peabody
& Co., 11
Street, New York 5, N. Y.
Columbia Gas System
—
Memorandum
—
Josephthal & Co., 120
Broadway, New York 5, N. Y.
Foremost Dairies,
Inc.—Analysis—Allen & Company, 30 Broad
Street, New York 4, N. Y.
I niehauf Trailer
Ltreet, New York 4, N. Y.
Inc.,—Analysis in current issue of "Business and
Fin racial Digest"—Loewi &
Co., 225 East Mason Street, Mil¬
waukee 2, Wis. In the same issue is an
anlysis of Lake Supe¬
rior District Power
Company. Also available is an
of Hamilton
Nassau
Hugo
analysis
Manufacturing Company.
Corporation—Analysis—Peter Morgan & Co., 31
Street, New York 5, N. Y.
Stinnes—Circular—Oppenheimer
New York 4, N. Y.
New England Lime
75
Federal
& Co., 25 Broad Street.
Co.—Analysis—Dayton Haigney & Co., Inc.
Street, Boston 10, Mass.
Omnibus Corp.—Review—Ira
York 4, N. Y.
Permian Basin Pipeline
Haupt & Co., Ill Broadway, New
Company—Analysis—Glore, Forgan &
Co.* 135 South La Salle Street, Chicago 3, 111.
Petroleum
pany,
Service
of
Incorporated—Analysis—Garrett
York,
Inc.
will
ers
Bernard
Association.
31 affiliates of The National
1954
Com¬
Rock
outing
May 16-20, 1954
National
cial
(Chicago, IIL)
Federation
Analysts
Club,
Country
of
Societies
Finan¬
Conven¬
tion at the Palmer House.
May 21-23, 1954 (Fresno, Calif.)
Security Traders Association of
Los Angeles-San Francisco Secu¬
Traders
Association
joint
Spring Outing at the Haciendarity
Fresno.
May 21, 1954 (New York, N. Y.)
are
officers
and
Toppers
annual
outing
the
at
members
of
about
Security Traders Association, Inc. and
ADVERTISING
COMMITTEE
June 4, 1954
(Chicago, 111.)
Bond Club of Chicago 41st an¬
nual field day at the Knollwood
Club, Lake Forest, 111.
Harold B.
Smith, Pershing & Co., New York City, Chairman
the National Advertising Committee of the National
Security
Traders Association, Inc., announces the
appointment of the fol¬
lowing local affiliate Chairman to the 1954 Advertising Committee:
Alabama
Security Dealers Association
Alonzo H. Lee, Sterne,
Agee & Leach,, First National Bank Bldg., Birmingham
3, Ala.
Arizona
—
Association
Merrill Lynch,
Phoenix, Ariz.
Alex.
of Security
Dealers—Randolph E. Soranson,
Pierce, Fenner & Beane, Bank of Douglas Bldg.,
June 4, 1954
Bond
annual
Security
Traders
Brown & Sons,
Association—Howard
L.
Kellerman,
Bond Club of Louisville—J.
Starks Bldg., Louisville
Tarrey, McCormick & Co., 231 So.
Wesley Rutledge, Stein Bros. & Boyce,
f
Syracuse—Pearne W.
Country
ough, N. Y.
June 8,1954 (Detroit, Mich.)
-
Cleveland Security Traders
Association—Fred A. Shorsher,
Ball,
Burge & Kraus, Union Commerce Bldg., Cleveland
14, Ohio.
Dallas
Bond Club
Winton A.
Jackson,
Mercantile Bank Bldg., Dallas
1, Texas.
Florida Security Dealers
—
First
Southwest
Co-
Country Club.
Canada
of
Annual
Convention at
Jasper Park Lodge.
June 11,1954 (Los Angeles, Calif.)
Club
of Los Angeles an¬
field
nual
day
Country Club.
Wilshire
the
at
Dealers
Association
Lex
Jolley, RobinsonHumphrey Co., Rhodes-Haverty Bldg., Atlanta
1, Ga.
Dealers
Association
—
June 11, 1954
Municipal
(New York City)
Club
Bond
of
New
York 21st annual outing at West¬
chester
Country Club and Beach
Club, Rye, N. Y.
June 11* 1954
(Philadelphia, Pa.)
Investment Traders Association
Association—Robert J. Pierce,
Chairman,
Pierce, Carrison, Welburn, Barnett National Bank
Bldg., Jack¬
sonville, Fla.; Orin M. Phelps, Gordon Graves &
Co., Pan Ameri¬
can Bank
Bldg., Miami, Fla.; Wilson C. Holt,
Goodbody & Co.,
506 Franklin
Street, Tampa, Fla.
R.
summer
Golf and
Traders
-
Investment
Detroit
of
June 9-12, 1954 (Canada)
Bond
Association—James R. Duffy, Paine
Webber, Jackson & Curtis, 24 Federal
Street, Boston 10, Mass.
Cincinnati Stock & Bond
Club—Edgar F. Guckenbager, 1307 Paxton, Cincinnati, Ohio.
'
•.<
'
Security
Club
Bond
>
Billings, Cohu & Co., State
Tower Bldg., Syracuse
2, N. Y.
Georgia
at
Investment Dealers' Association
2, Ky.
Securities
30th
York
the Sleepy
Club, Scarbor¬
day
135 E. Baltimore Street, Baltimore 2, Md.
Peters, Peters, Writer & Christensen, Inc., Equitable Bldg., Denver 2, Colo.
of
New
of
field
Hollow
Chicago 4, 111.
Club
(New York City)
Club
party at the Grosse lie
Bond Club of Chicago—Geo. B.
La Salle Street,
J.
and
Rolling
Montclair Golf Club.
expected to attend
of
Houston—J. R. Phillips, Jr.
Phillips Investing Co., 809 State National
Bldg., Houston
2, Texas.
Fidelity Union Life Building, Dallas 1, Tex.
New
General, State of New York;
Tompkins, Senator, State of New York; Francis J.
Purcell, Regional Director, Securities & Exchange
Commission;
Edward C. Gray, Executive
Vice-President, New York Stock Ex¬
change; John J. Mann, Chairman of the Board, American Stock
Exchange; Philip J. Clark, President, National Security Traders
Association, Inc.; T. Jerrold Bryce, President, Investment Bank¬
Hon.
Boston
Globe Union
Gulf Sulphur
Association
at
Clarence H. Adams, Hon. Paul R.
Rowen, Commission¬
ers
United States Securities and
Exchange Commission; Hon.
Nathaniel L. Goldstein, Attorney
Bond
Co.—Bulletin—Oppenheimer & Co., 25 Broad
(Pittsburgh, Pa.)
Ligonier, Pa.
Bond Club of Denver—Gerald P.
Federation Bank & Trust
Co.—Memorandum—Terry & Co., 44
Wall Street, New York 5, N. Y.
ing at the Country Club of Mary¬
land.
NEW YORK
Hon.
Baltimore
Collins Radio
Traders
OF
of
Asbestos Corp., Ltd.
American Marietta Company
Atchison,
Security
ASSOCIATION
hold its 18th Annual Reception and Dinner at the Waldorf
Astoria
Hotel, Manhattan, Friday evening, May 7.
George V. Hunt, McLaughlin, Reuss & Co., President, will
preside. An estimated 1,400 members and guests will be present.
Prominent among the guests expected are:
NSTA
America—Memorandum—Hemphill, Noyes &
Co., 15 Broad Street, New York 5, N. Y. Also available is a
4
The
*
Aluminum Co. of
memorandum
SECURITY TRADERS
financial writers of the New York Press and Trade
Publications.
*
(Baltimore, Md.)
Baltimore Security Traders As¬
sociation 19th annual summer out¬
Bond Club of Pittsburgh
Also
—
Board of Governors of Associa^
May 14, 1954
York 5, N. Y.
Over-the-Counter Index—Folder showing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
Philadelphia Bank
May 12-14,1954 (Boston, Mass.)
May 14, 1954
Broadway, New York 7, N. Y.
N.
Texas Group Investment Bank-,
Association 19th Annual Meet¬
ers
of
Stock
Exchange Firms
meeting at the Somerset Hotel.
Investment Opportunities in Japan—Circular—Yamaichi Secu¬
rities Co., Ltd., Ill
4,
May 9-11,1954 (Dallas, Tex.)
tion
Industry—Analysis—H. Hentz & Co., 60 Beaver
Street, New York 4, N. Y.
York
Waldorf-Astoria.
ing.
Analysis — First California
Company, 300 Montgomery Street, San Francisco 20, Calif.
—
Electric Utility
New Treasury
Security Traders Association of
York annual dinner at the
New
Company—Analysis—Bruns, Norde-
a list of Lower
Priced Stocks and
of the outlook for Subscription Television.
Insurance
City
&
May 7, 1954 (New York City)
Co., 44 Wall St.,
Francis I. du Pont
Stocks—Analysis of 33 issues—First Boston
Corporation, 100 Broadway, New York 5, N. Y. Also avail¬
is
<
Co., 60 Beaver Street, New York City.
United Gas
McKinnon, 11 Wall Street, New York
Commercial Bank
able
&
man
list of
it—Thomson
Coal
Field
Investment
In
Square, Boston 9, Mass.
it is understood
to
EVENTS
Laboratories, Inc.—Memorandum—Kneeland & Co.,
Building, Chicago 4, 111.
Board of Trade
Recommendations & Literature
.Thursday,;May 6, 1954
:,
Continued
on
page
36
of
Philadelphia
Club, White
marsh, Pa.
June
16-17,
1954
(Minneapolis,
Minn.)
Twin City Bond Club annual
picnic cocktail party, Hotel Nicol¬
let
June 16; field day and golf
tournament, White Bear Yacht
Club, June 17.
June 18, 1954
Bond
Detroit Stockholders
outing at
summer
Whitemarsh Country
Club
(New Jersey)
of
New
Jersey
an¬
nual field day at the Rock Spring
Club, West Orange, N. J.
End
Bowling Season
DETROIT,
Brokers
their
Bowling
season on
The
54
League
Detroit
closed
Thursday, April 29.
championship for the 1953-
season
man,
Mich.—The
was
McFawn
won
by the Nau-
be
awarded
at
the
sociation
Hingham,
May 11.
to
be
held
on
35th
Mass.)
Traders
annual
Shore
As¬
outing
Country
at
Club,
Mass.
June 24-25,
1954
(Cincinnati, O.)
Cincinnati Municipal Bond Deal-w
ers
Spring party.
June 25, 1954 (New York
Municipal
annual
Tuesday,
(Boston,
Securities
South
the
of
dinner
24, 1954
Boston
& Company team,
composed of Ross Sutherland, Ray
Bernardi, Roland Kersten, and
James McAleer. Cups and prizes
will
June
New
Rock
N
J.
City)
Bondwomen's
York
annual
Club
outing at
Spring Club, West Orangey
ft
Number 5322!.. The Commercial and Financial Chronicle
Volume 179
Glowing Prospects of
mendous
The
examples.
advances1
f
forward.
tre¬
which4 have
I know of
benig; done
on
work
no
'Rube
a
machine into which you
New Mineral Resources
been made in searching for oil, in
drilling, in refining, and in exact¬
ing more power from each drop
are
a
great tribute to the scien¬
By FELIX EDGAR WORMSER*
tists
will
and
greater known
Department of the Interior
than
eum
tory
Mr.
Wormser, commenting on depleting supplies of raw mate¬
rials, reveals work of U. S. Geological Survey in developing
new mining processes and in
exploitation of minerals never
in
certainly
tremendous
sorely
upon
materials.
that
true
witnessed
have
we
is
industrial
our
I
the
progress
has
research
assure
us
proportion
of
these
We
of
fair
a
hidden
ore
is
Northwest
of
one
metals.
new
has,
in
ments of this metal.
Another approach to the prob¬
lem
of
increasing our mineral
tities of aluminum
in
Large
are
ism
to
as
vest
rela¬
in
great
our
if
The
quan¬
all
the
to
our
concen¬
nesium
the greater
One of the answers,
therefore, to the prophets of doom
greater
pe¬
tration
w e
today a
importer
are
net
is
of
find
to
of locating
ways
With
deposits
and
methods
for
oil.
or
material
a
skimming
of
the
quality
the tonnage.
develop
these
practical
beneficiating
such
off of
our
best
iron
ore,
we
both fundamental—will aid in the
importing
exploration for low grade depos¬
are
s
ub
s
material.
t antial
its:
t i ties
q u a n
from
Felix
E.
Wormser
to
meet the
requirements of expand¬
ed steel output.
Not only is our
growing
population
the
but
per
capita consumption of almost all
mineral commodities is multiply¬
ing.
In
many cases
mineral
domestic
not
various
trol
the
which
this
ever
just
are
think
nature
about
Now
tention to
what
have
we
it
absence
to
abundant
at¬
our
have—how
we
it—how
recover
turn
best
to
use
of
to
go
make
to
materials—how
deeper in the earth if necessary.
It is along this line that I want to
talk
briefly.
Good
Research
Prospects
As you know, I happen to
something to do with the
have
opera¬
tions of the United States Geolog¬
ical
have
I
Survey.
confidence
in
their
the
utmost
observations
and conclusions—indeed the bril¬
liant
scientific
ganization
record
speaks
of
for
this
ogists
be
done to
tive concentrations of needed
mining
in the past
do
were
found
at
■depths
feet.
hardly
It
lieve,
the
seems
probably
surface
greater
than
reasonable
they tell
that
me,
or
at
200
to
be¬
on
the
'average,
should expect in gen¬
erally
mineralized
regions
as
many deposits hidden below the
surface
is
a
have been found where
as
the rocks
exposed. Here, then,
potential mineral resource
are
objective well worthy of intensive
search.
To go deeper in our search for
minerals will require better tools
a
Metal
which
entire
an
be mined,
may
number
of
found
in
gion.
cal
But
and
the
the airborne
and scintillometer
techniques of geophysi¬
geochemical prospecting.
deeper
we
sensitive must be
to
measure
differences
•chemical
the
go
our
the
more
instruments
increasingly minute
in the physical and
properties of rocks and
better
must
be
our
under¬
Many
geologists
believe
fore
and
that
the
address by Mr. Wormser be¬
1954 Pacific Northwest Metals
an
Minerals
Conference, Portland. Ore.,
1954.
open
com¬
best
freedom, I have
every
dence that the skill and
of
our
to
in
George W. Smith
all
Wm.
tap the
resources
our
opment in your own backyard. At
Albany,
Oregon, the Bureau of
Mines has developed methods of
producing zirconium and, strangeIjy enough, it is also producing a
metal the name of which, I dare¬
say,
is completely unknown to
Americans.
or
I
am
It
is
the
metal
told that there is
hafnium in the crust of the
than
there
is
lead,
copper,
zinc.
of
posal
a new experimental station
Reno, Nevada, that will help to
devise means of recovering the
rare elements that are only
now
being investigated for the benefit
at
of mankind.
.
Rodman
his
general partner.
Mr.
£
&
Flexner
be¬
se¬
Ren¬
admission
as
with
111.
has
Maurice
—
become
White-Philips
ComInc., 38 South Dearborn
pany,
Street.
Mr. Flexner
was
formerly
manager of the Sales department
for
Voss
&
Company.
Prior
thereto he
a
&
with Sills, Minton
was
Co., Inc. and Lehman Brothers.
Harold
Davenport Opens
E.
Davenport is engag¬
general partner
in the securities firm of Mitchell,
ing in
offices
at
305
Bellevue
Hutchins & Co. since 1929, served
two terms as a governor of the
North.
In
the
past
a
New York Stock
years
cago
as
a
Exchange and 13
governor of the Chi¬
a
Stock
Midwest
The
Survey gives as an
Phosphoria forma¬
Rocky Mountain Re¬
This formation includes
Exchange, now the
Exchange.
He is
Stock
a
securities business from
he
Avenue,
with
was
Hartley Rogers & Co. and Ferris
& Hardgrove.
Now With Frank Knowlton
(Special to The Financial Chronicle)
director of Butler Brothers.
OAKLAND,
F. I. du Pont Adds
Coffin
is
Calif.
now
—
Fred
affiliated
an
offer to sell
nor
a
solicitation of
an
Prospectus.
offer to buy these securities.
,
%-' :V
.
\
:•/■
210,000 Shares
Niagara Mohawk Power Corporation
Preferred Stock, 4.10%
($100
United States, but, and this is
par
Series
value)
the striking
fact, it contains trace
uranium, vanadium,
rare
earths, silver, nickel, zinc,
molybdenum, fluorine, distillable
hydrocarbons and sulphur. It is
estimated by the Survey that this
formation is present in a large
part of a 135,000 square mile re¬
gion, but don't think because I
give this as an illustration there
will be a rush to this area, for
of
amounts
Price
$100
(Plus accrued dividends, if
Copies of the Prospectus
dealers
much has still to be learned about
as
may
are
per
any,
share
from May 13, 1954)
obtainable from only such of the undersigned and such other
lawfully offer these securities in the respective States.
The
it.
ever,
more
a
of
more
or
than
Harriman Ripley & Co.
thickness of 50 feet
rock, may contain
half
a
commodities
with
dozen
a
mineral
gross
value
Incorporated
Blyth & Co., Inc.
The First Boston Corporation
'
Glore, Forgan & Co.
Goldman, Sachs & Co.
Eastman, Dillon & Co.
of $5.00 a ton.
I
l^now
answer
who
of no
to the
see
the
more
effective
Kidder, Peabody & Co.
disciples of despair,
end
of
our
material
civilization brought on by the ex¬
our mineral resources,
Lehman Brothers
than to point out some of the fas¬
of
new
old
ones
developments
minerals
as
well.
and
not
metals
only
Merrill Lynch, Pierce, Fenner & Beane
Petroleum
and
Stone & Webster Securities Corporation
Smith, Barney & Co.
Union Securities Corporation White,Weld & Co.
but
1
1
natural gas are
May 5,1954.
A.
with
Frank Knowlton & Co., Bank of
(Special to The Financial Chronicle)
MINNEAPOLIS, Minn.—Robert America Building. Mr. Coffin was
E: Higgins is with Francis I. du previously with Waldron & Com¬
Pont & Co., Foshay Tower.
pany.
New Issue
as
H;
associated
the
Harold
The offer is made only by the
t
(Special to The Financial Chronicle)
CHICAGO,
•
Renshaw,
First
White-Phillips Co.
shaw, 209 South La Salle Street.
The
firm, formerly Rodman &
Linn, became Rodman & Renshaw
effective with
Incidentally,
the
Bureau
of
Mines will shortly have at its dis¬
the
of
Maurice Flexner Joins
ways
C. Renshaw has
firm
120
of nature and
general partner in the
curities
Co.,
Mr. Smith
Securities Company of Chicago.
CHICAGO, 111.—It is announced
a
Vice-President
was
ingenuity
Now Rodman & Renshaw
come
&
previously with David A.
Noyes & Co. and prior thereto,
growing needs.
Charles
Tegtmeyer
South La Salle Street.
Admit Partner; Firm
that
H.
was
confi¬
people will still find
supply
Discovery
beds most of the highgrade phosphate rock in the west¬
cinating
April 30,
the
haustion of
standing of the geology.
*From
the
and
tion, with
new
instruments.
of
fostered
There is another exciting devel¬
separate
ern
so
standard of
our
to
us
recovered
the
the
are
have
of which is
commercial
none
presently
amounts.
of
and treated,
metals
magnetometer
and
sensitive
which
formation
rock
We have developed
more
benefit
has
Geological Survey, how¬
believes that, on the basis
of present knowledge, this forma¬
and
and
our
we
essentially
derive
from
enterprise economy.
It
the
this
This announcement is neither
Geological
Survey
also
suggests that we may see a new
mining process in the future, in
society
while doing so, to help us all.
If we can continue to maintain
to a gold rush.
One is fearful to
predict what the future holds!
New
research—
our
date, of which
so.
The
simultaneously,
which
or
w,as
interest
,
Accordingly, it is i safe
now
the
methods.
Fifty
years ago, copper ore had to run
Need for Free Enterprise
60 pounds to the ton—today we
I do not wish to give the im¬
are working ores of 12 pounds to
pression that just around the re¬
the ton. Methods of treating lowsearch corner lies the answer to
grade taconites are being devel¬
all of our problems of wringing
oped which should serve us well
from
the
earth
the
materials
in providing iron ore. The world
needed to move our civilization
will have to utilize lower-grade
materials as time goes on. I have
great confidence in its ability to
that the mineral depos¬
are
Now
recovery
to
mined
ma¬
confident other re¬
search will also develop new and
tion
we
fac¬
am
example
its
guess
exploring for low-grade material.
we cut costs in locating rela¬
terials, I
it
ago
years
metal.
W.
raw
improve our own lot in
life,
and
to
eliminate
human
drudgery so far as possible, and,
done with
must
As
the search for hidden deposits of
-were
reduce the
I'm
itself.
begun in
more
tor and thus the expense factor in
minerals.
assume
has been
but much
of
corresponds in some
degree to the excitement attached
earth
fields
a
its eminent and able geol¬
that we have only begun
few
a
is
uranium
more
Exploration Costs
or¬
•told by
in
most
another.
in
work
Some
these
useful
resources—find out
our
is
ele¬
factors
concentra¬
environment and rel¬
one
Only
minor
have
we
George
—
free
that
the Colorado Plateau.
on
for
petitive business and trade system
costs of processing
''y.
Look what
uranium
hafnium.
beginning to
problem of sup¬
markets.
new
the
now
the
Until
finding
the
of
and
relative
con¬
story.
recently our problem
was one ©f putting to use the ap¬
parently limitless resources at our
disposal. We were primarily con¬
cerned
with
building factories,
designing new products, increas¬
ing the efficiency and the output
of our manufacturing plants, and
ply.
principles which
cause
Lower
We
how
as
reduced.
are
distributed
are
distribution
in
tions in
ative
But that isn't the entire
minerals
termine the
have
pace
discover
to
study of the earth's history to de¬
ments
resources
data
in various types of geologic envi¬
ronments;
the
second,
supple¬
menting the data analysis, is a
supplies from
with
mounting demand.
kept
consists of collecting and
one
analyzing
foreign
sources
Two types of research—
are
use
future
keep
can
proud
living,
output of
troleum,
111.
Smith has become associated witty
are
greatly increased
Titanium and mag¬
surely to come into
recovery.
we
fundamental
we
nation
to be found
of
lower the
the
great achievements of
the
n
CHICAGO,
free.
nature seems to have decreed that
i
(Special to The Financial Chronicle)
end
willing to in¬
time, money, and effort
basic
and
increase
nation's
of
materials if
-tremendous
the
water
sea
other
ability to meet the
our
demands
supplies is to make greater use of
lower grade materials.
Somehow
the
of
or
the
come
clays of several areas of
the country — awaiting only the
development of economic means
spite
of
take the place of these.
I do
wish, however, to express optim¬
small de¬
gree, made possible the develop¬
of
n
the
The
out
to
no
bodies.
raw
have
tremendous
our
seashore,
and
George W. Smith With
Wm. H. Tegtmeyer Go.
sands
or
flowing in required
quantities steel, aluminum, mag¬
nesium, gold, or new substances
of petrol¬
before in our his¬
pressed
sources
have
now
the
itself,
still greater reserves.
Aluminum
find
will
who
from
reserves
ever
spite
tively
future
ft
now
Goldberg
can feed
clay and gravel,
common
increase in use, and our advances
in producing synthetic liquid fuels
before worked up in commercial quantities.
It
industrialists
made this possible.
Assistant Secretary for Mineral Resources
"•"?
*')'
(1989)
outstanding
The
r-rs^u!:
,
'
/
10
The Commercial and Financial Chronicle
(1990)
of
dividends
double
Tax Revision Bill
taxation
among
the provisions which
will not only
Benefits Wage Earners
modernize and
better
Deputy to the Secretary of the Treasury
Bill is
pending in Congress.
Administration, and, though it is basically
Says
bill
The revision
objectives of the
The aims and
summarized as
economy, lower taxes, and hon¬
est money.
These are clear and
simple aims.
be
can
People gen¬
erally
may
realize
1
not
how much has
been
15
in
done
in g
three
reach-
these
,
We
quickly
million
American
bill
revision
these
of
earners
whicn tnis tax
wages and salaries
provides.
Some
of
are:
The
bill
provides more liberal
treatment oi employee bene¬
tax
fits.
employee
billion
$12
than
the
sick
benefits
paid
under
The
taAame
by
All
in¬
bill will make it easier for
Second, tax cuts which will be
tax
if
year,
the
Presi¬
is
adopted, will
$7.4 billion, the largest total
cuts
made
in
any
in the
year
two-thirds
the
of
production
and
make
more
cuts
revision
Senate
tax
bill
Finance
whole
the
work
and
revenue
result
of
the
of
our
is the
program
before
now
Committee.
comprehensive
a
only
have reduced govern¬
we
spending.
Part of this
lax
possible
are
revision
code.
This
than
more
Treasury
Committees
of
the
It
of
same
is
the
b:ll
is
income
will
from
benefit
from
the
by
first
up to $1,200 of re¬
income. The pensions to
will
treatment
as
of
this
freedom
thus
spend
live
to
his
when
the
the
drift
and
each
interfere
with
are
of
more
his
individual
'Soecinl
to
The
Financial
Mass.
lowed to deduct medical expenses
excess of 3%
of total income.
Street.
At
F. L. Putnam &
in
the American
with
compete
of
free
trade
industrialist
and
is
lower
am
against
up
de¬
or
protection this
har¬
wailing
a
Carlisle Bargeron
riding high.
any
its shell.
Even before Senator Taft died he
was counselling the protec¬
party to lay low at least for a while because the
Republicans had to sort of ease their way back into public ac¬
ceptance. They just couldn't come into power and start being
tionists of
his
Republicans right off the bat.
too
great.,',
The shock
v
the country would be
'--ht'C
on
>
^Undoubtedly what
annoys the hard-pressed industrialist most
theorizing that goes on in the ivory towers about the better
living and increased happiness which free trade creates for peoples
way
is the
everywhere.
more
He is up against such hard and cold facts
One of the first
We
waterway when t.
e
for Detroit.
Opens
ere
i as said
Chronic: e)
T
as
this:
European vessels to get into the St. Lawrence
ice broke this year had a cargo of Ford trac¬
at the
the
present
deduction
is
for
—
engaging in
a
Ford
were
plant in Dagenham, England, destined
84
of
these tractors.
A
Ford
spokesman
that about 5,COO of these tractors are to be imported this
and there will be an increasing number in 1955 and '56. The
spokesman also explained t at these tractors will sell in the Mid-
Theodore
securities
\f~'rr
business from offices at 33 Stetson
He
was
previously
Co., Inc.
Workers
will
benefit
being
charges
by
allowed to deduct interest
instalment
on
the
charges
in
stated
purchases
not
are
if
executives of International
badly mistaken.
just
are
Now, here
W. F. Quisenberry Opens
cf
some
the
in
24,
as
which
the
America.
flexible
well
will
millions
In
as
of
not
partial
be able to.
The Midwest farmer
MEDFORD, Ore. — Walker F.
Quisenberry is engaging in a se¬
to get his tractor for $400 less, but
around
Detroit
whence
come
business
from
offices
at
Edward Brender Opens
benefit
more
allowances,
relief
from
a
Edward Brender is engaging in
securities business from offices
at 101 East 16th
where
there
unquestionably will be glad
what about the worker in and
is
already unemployment and from
Reuther, not only his wails but
his pressure that the Government in Washington "do
something."
.ii
passing, it si.oula be noted that young Henry Ford is one
cf the leading apostles of free trade, or perhaps, freer world trade.
800 South Oakdale.
workers
addition
depreciation
have one of those propositions
intellectuals in the ivory towers could feast indefinitely, and un¬
doubtedly they could rationalize it. Some of the rest of us may
(Special to The Financial Chronicle)
specific provisions of the tax revi¬
sion
bill
Harvester, John Deere, et al, you are
incidentally, come in duty free.
upon which the
These tractors,
you
curities
even
separately
the contract.
These
<t>d0ri
f
<»nv cOmnarabTe unit made in the United
If you don't think this causes furrows in the brows of the
States.
with
amounts of more than 5%.
the
1954.
pay
then
how in
me
year
HYANNIS,
Chaffin is
year's
tax team
address
asks
expects
But
a group of protectionists
among Republicans in
hope that with the so-called Republican victory
in November, '52 their voice might become
stronger is now known
to have been unjustified.
Faced with insuperable od s, with the
current mood of the country, seemingly, this
group has gone into
moving in the right direction.
Theodore Chaffin
can
and
wages
tors assembled
Social Security
Eight and one-half million tax¬
will benefit by being al¬
a
Con-
of Heaven he
of
Congress but
his
freedom.
buy abroad.
There is still
income
and
must
these days, and his plaints and lamenta¬
and
the
govern¬
man's
more
it
tions bounce right back in his face. The free¬
traders relativply speaking, are in the sadale
for government to take over more
—to
creates
that the
assume
stumped.
However, regardless of the merits
assed
giving
other
and I
goods from abroad, I
merits
money,
We have
the
be counted.
"activity," and
an
wars,
harassed industrialist
a
name
cost
control—
life.
abroad
standard
own
owh
constitutes
sell
wan
pursue
his
arrested
the
get
and
freedom
business,
and
from
and
argument is true, that if this country
to
greater freeuom—
interference
ment
to
up
it
re¬
of
alternating back and forth. Up and down and
Never any middle ground, and I might adi, I have
sides, ve^ementlv. At this late
justifications for
the
value
adds
payers
by Dr. Burgess be¬
fore Group 8 of the
Pennsylvania Bank¬
ers
Association, Pittsburgh, Pa., April
an
half
a
tax
people
directly
•From
the
individual
greater
benefits.
and
"better jobs and improve standards
of living.
Let's not forget that
tax
plans
exempt
bracket
tax
cuts
go
directly to individuals.
The other third goes to stimulate
ment
being
up
million and
a
retirement
pension
these
About
because
receive
pension
employees.
their
for
tirement
history of the country.
ihese
companies to set
More than
the
gi eater
people such as teachers, firemen,
policemen, or their widows, who
the economy.
this
than
,
of
in
what is fondly called the
through free, trade eras and
That there must be world trade, I suppose,
goes without saying, if for no more reason
leased
u.
insured
companies.
surance
as
are
plans
ment in
program
and
been
has
in
career
eras,
both
on
date I would hate to stand
provides that sickness dollar has been strengthened. In
benefits paid employees for loss the
money markets the
laws of
of wages will be tax exempt up
supply and demand have been
to $100 a week. At present these allowed
to operate.
plans
effective
Reserve
long
a
:v*v'
bill
endangering our military strength
or risking
too severe a readjust¬
dent's
discontinued
been
The
small
total
is
Confidence
possible without either
as
has
Federal
The bill provides that
While it
taxed.
cutting spending
are
generally also may not
realize the many benefits for the
People
60
been
basically a tax reform bill, - its
early enactment by the Congress
will be very helpful during the
present transition period to less
defense spending by government.
The third aim of the Treasury
is honest money.
The pegging of
prices of government securities
by the Federal Reserve System
the
budget
sub.mitted
to
the
Congress by the
past
Administration
for
fiscal
1954.
ployment.
of the Administration.
of
course
down and up.
integral
part of the tax and budget policy
ra¬
for fiscal 1955
is
encouraging
fuller
em¬
the
f iiu trade
an
budget
tion's
less
and
In
Nation's Capital this writer has been
to perform its proper role
influencing money conditions,
solely
in
the
public
welfare.
First,
Burgess
business
is
contributions to employee sickness
and accident plans are not to be
Adminis't
R.
in
help
great
a
better
objec¬
tives.
W.
be
months
toward
Its early enactment would
gress.
billion,
the cor¬
lion—almost enough to finance the
whole cost of the bill.
period of lower government defense spending.
Treasury
By CARLISLE BARGERON
bill will result
of $1.4
revenue
News
of th
expand¬
an
poration tax rate should continue
at 52% instead of going down to
47%. This will bring in $1.2 'oil-
its early enactment will be helpful during the transition
ure,
on
Ahead
create more and
it also provides that
but
tax reform meas¬
a
loss of
in
integral part of the tax and budget policy of the
an
so
jobs which only
The tax revision
now
From
businesses
new
ing economy can provide.
description of the make-up and char¬
of the Tax Revision Bill
acter
help
started but will encourage
existing
businesses
to
expand,
get
By W. RANDOLPH BURGESS*
Dr. Burgess gives concise
are
will
business. These benefits
aid small
.Thursday, May 6, 1954
..
the wails of Walter
As to the soundness of his
preachments, I don't know, but he can
example of how it works.
The coal industry, in a thoroughly sick state, has been seeking
certainly give
Street, New York
City.
for
an
months
some relief from the importations of resi "ual oil.
So
independent oil producers but they aren't in anything
Just a few days ago a flock of
Governors from coal-producing States went to see Mr. Eisenhower
with their problem.
:
yIt is doubtful they will get any relief on residual oil. This
have
the
like the state of the coal industry.
This
announcement
is not
offer to sell or a solicitation of an offer to buy these securities.
offering is made only by the Prospectus.
an
The
y
$6,000,000
would involve imposing a higher tariff on it and if he were to do
that, Mr. Eisenhower would cause much anguish among our better
thinkers, our global thinkers. It would be highly unfashionable,
so Jo speak.
The impression might be created that he was acting
like
The Montana Power
First
Company
Mortgage Bonds, VA% Series due 1984
1
Dated
May 1, 1954
Due
a
Republican.
Something is apparently to be done for the shipyard industry,
practically idle because American flagships are being built in
cheaper cost foreign shipyards. The relief to be extended is a form
iff subsidy. Maybe we will get around to that on coal and tractors.
World trade, the way we practice it, may be
it is so terribly interesting,
particularly to a
we
May 1, 1984
in such
a
(Special
to The
Sullivan
curities
The Prospectus may be obtained in any State in which this announcement is
of the undersigned and other dealers
as may
is
Chtonic eI
—
from
a
offices
se-
at
2416 Alder Street.
circulatedfrom only such
lawfully offer these securities in such State.
Now With
ST.
LOS ANGELES, Calif.—John M.
Kubota is
ties
with Taivo Securi-
now
Company,
208
South
San
Pedro Street.
Slayton Co. Inc. W. R. Schoenknecht Opens
(3oec;il to The Financial
HALSEY, STUART & CO. INC.
to be.
(Special to The Financial Chronicle)
James
engaging in
business
come
With Taiyo Securities
Opens
Finane*'l
BAKERSFIELD, Calif.
W.
bored nation which
relatively short time have apparently
J. W. Sullivan
Price 102.66% and accrued interest
highly involved, but
Chronic e)
(Special
LOUIS, Mo.—Claude Gentry
EAST
to
The
Financial Chronicle)
HAVEN,
Conn.—Walter
Jr. has been added to the staff of
NEW
YORK
GREGORY
HANSEATIC CORPORATION
&
SON
/
FREEMAN
&
WM. E. POLLOCK
COMPANY
INCORPORATED
MULLANEY, WELLS & COMPANY
THOMAS &. COMPANY
&.
Slayton
CO., INC.
securities business from offices at
&
Company,
Olive Street.
Inc.,
408
Schoenknecht is engaging in a
6o0 Laurel Street.
,
HELLER, BRUCE & CO.
WALTER STOKES &,
C. W. Jackson Opens
CO.
•
May 6, 1954.
R.
INDIANAPOLIS,
W.
Jackson
curities
is
conducting
business
Forms H. P. Vassar Co.
Ind.—Charles
from
a
offices
5129 North Illinois Street.
se-
at
H.
P. Vassar has formed H.
Vassar
&
Co.
with
offices
P.
at
170
Broadway, New York City, to
gage in a securities business.
en-
Volume 179
Number 5322
(
The Commercial and Financial Chronicle
...
U
must
Toward
Sound
a
Economy
Tax
Citing
in
being accomplished through the $7 billion cut in
spending, making possible largest total tax cut in
nation's history.
States pending bill is primarily concerned
than
reduction.
Hails
and
Administration
has
tioned
tax
jobs.
tives:
ever
First, to provide
ture
military
a
pos¬
adequate
for
and
Who
se¬
tax
curity; and
Second,
to
maintain
on
the
be
cerned
with
H.
Chapman
Rosa
the second of these objectives* and
I
would like tonight to review
briefly
you
the
of
some
things that have been and are be¬
ing done by the government to
strengthen our economy.
the
first
spending
current
place, government
been cut.
'In the
has
it is estimated
year
expenditures
billion
have
dollars
been
below the
totals
such
tremendous
a
bankers
visualize
to
But
means.
day
the
used
even
for
just what it
President
few
a
of
amount
that it is difficult
try to bring it down to earth:
The
got last
all
American
money
the
for all the
year
wheat
country
The
was
farmers
in
grown
and
corn
entire
an
$7 billion.
Americans paid in
household util¬
money
all of last year for
ities. and for- fuel amounted to $7
billion.
The money Americans pay each
for
year
doctors', dentists', med¬
ical and hospital bills is $7 billion.
A reduction of $7 billion in gjvernment expenditures this year is
a
tremendous reduction.
;*
.
the
31
excise
taxes
partial
double
These
(4)
The tax revision bill, which ;
passed by the House and is
before the
Senate, will result
reductions of $1.4 billion.;
ible,
,
.
system
so as
to
nesses
To
repeat, expenditures for the
current year have been reduced
by $7 billion and because of that,
will
Now, all of
further tax
level
::
in America want
us
too
The
whole
high and too
strictive for the long run.
believe that
the
people
tion's
conviction
that
tions must depend
in
re¬
we
of the
the. Administra¬
share
country
But
tax
tax
on
.
government expenditures. The
bills
be
must
paid
day; if
we do not raise the money to pay
them now, we are just postpon¬
ing—and not really reducing—the
taxes needed to pay them later.
some
as
pass
the bills
to
on
is
a
trust
a
will
I
at
the
Role
.
-
outset—the
role
many
Law
con¬
dramatic
to
issues.
expand and all businesses to modernize.
The average cost of pro-
tax",:laws
provide
New
barrier
the
to
thus
and
one..
••
incentive to
..
A.
is
'
our
been
a
debate about the provision
bill
relieving
against
the
in the
long-
admitted unfairness of the double
tax
on
dividends.
Leaders of both
Delta
Phi,
interna¬
an
of
&
municipal
was
investment
bond
a
securities
Previously h,c
adviser
of
the
First
The
"Eisenhower
Mr.
Alexander, 39,
was
—
"all
the
the
.
He is well known throughout the
state in investment security
.
.
Joins First Boston ;
and
the
facts
spectacular
and
(Spec.1".!
the unifying facts
unspectacular,
to The
BOSTON,"
the divisive."
and
.
here
are
Pinancial
mination
budget for the fiscal
year
pend
win.
not
First
begins next July T is now
before Congress.
It is the first
"Eisenhower
Budget."
It
pro¬
vides
deficits.
which
for
further
still
reductions
in government
spending.
In this
budget estimated expenditures are
51/3 billion dollars less than the
current
year's
and
12 Mi
billion
dollars less than recommended for
1954
by the previous administra¬
tion.
That
duction
12V3 billion dollar
that proposed bud¬
means
expenditures
get
almost
20%
re¬
have
since
been
this
cut
Adminis¬
tration took office—a reduction of
about
$75
each
for
woman
man,
and child in the nation.
which
reason
them
them
we
we
The
that
the
is
bankers
W. Rumery and Arden
have
can-
cannot
been
added
to
You
purchasing
all
know, that
of
power
the
the
dollar
declined from 100 cents in 1939 to
52 cents in
January 1953, that al¬
half
most
New Jersey
of
that
come
since 1946.
that
decline
decline
Fitzgerald
Cantor,
&
offer to sell or a solicitation of an offer to buy these securities.
offering is made only by the Prospectus.
Bell Telephone Company
•
You know what
has
meant
'to
the
average
in
savings
bonds,
Due
1,1954
May 1,1989
American who had saved
dollars
Dated May
life
and
the
stand
savings
in
accounts,
pension
insurance.
role
of
You
in
funds
Price 101% and accrued interest
under¬
these
savings
dollars in
providing 'capital for
American
industry and the im¬
In discussing reductions in gov¬
ernment
spending there is one
portance
fact
we
that
is
of
stabilizing the
saving.
must
keep in mind, and
that
today
roughly
70
the
of
dollar
The goal
as
value
incentive
an
for
of this Administration
cents out of every tax dollar goes
for
purposes
related
est
can
security.
Even
The
has been and continues to be hon¬
ings
be, have
can
be made
and
cannot
in
in
this
will
field
not
and
spending, \ve
cut
these
though
been
defense
and
sav¬
will
unwisely
endanger
that
security
in
forces
and
control.
in taxes.
ary
Tax cuts which will
be
outgo
As
have
which
have been made by this Admin¬
istration have made possible cuts
spending
reduce
to
was
cer
ton,
talk
by
County
New
Mr.
Rose
Bankers
Jersey,
before
the
Association,
April 23,
1954.
Mer¬
Tren¬
HALSEY, STUART & CO. INC.
Federal
a
were
nearly
The
cost
of
WERTHEIM
living .has
AUCH
over
COURTS & CO.
The
is
determined
STERN
to
prevent further inflation, and so
it
insists
that further tax cuts
GREGORY & ION
WM. E. POLLOCK & CO., INC.
NEW YORK HANSEATIC
CORPORATION
fncorporated
the past
destructive inflation¬
trend has been arrested. This
year.
'
BAXTER, WILLIAMS & CO.
BACHE&CO.
JNCLOSS, PARKER &, REDPATH
1
varied less than 1%
1
& CO.
in
result, inflationary
brought under
been
Administration
*A
the
deficit to the point where cash in¬
balance.
cuts
such
money
come
Resulting Tax Cuts
The
Prospectus may be obtained in any State in which this announcement, is circulatedfrom only
of the undersigned and other dealers as may lawfully offer these securities in such State.
which retains its buy¬
ing, power.
This gcal has been
pursued in several major ways.
One
of the
most
important of
Ameri¬
to
May 6. 1954.
BROTHERS <Sc CO.
BYRD BROTHERS
staff
Co.,
232 North Canon Drive.
Thirty-Five Year 3% Debentures
has
i
.
.
C. Newsom
the
$25,000,000
,
my
'
BEVERLY HILLS, Calif.—John
.
an
'
doing
mentioning it — and
inflationary effect of
than
more
you
without
understand
-
S.
Boston
Street.
Federal
(Special to The Financial Chiionicle)
fail."
This announcement is not
Grant
Cantor, Fitzgerald Adds
comprehension, deter¬
are
the
qualities
we
With
The
75
—
reduced spending for an¬
on
all
!
Ch::onic:e)
we
discussing:
need. Without
now
Mass.
with
Corporation,
.
"Along with patriotism, under-
standing,
is
Barker
.
dren.
other
gradu¬
ated from the University of Texas
in 1940.
He holds a B.A. degree.
*
Budget"
State
of Education.
Board
not
Company ii»
bonds
and
Further tax reduction must de¬
The
0x
Association,
Association,
a
given
ideas
■
good deal of
member
a
State Bar
Underwood
other
issues, but they are vital
will be understood
applicable to the field which
There has
Phi
is
Bar
"
invest
Investors
Adminis¬
mature, balanced public /houses.
opinion, which, as President Eis¬
enhower
said
in
New
York,
..
New
He
throughout Texas.
to
Encourage
York
sales
They
only by
<
To
Pre¬
Trust
Mr. Alexander, a native of Dal¬
las, until recently represented R.
Amer¬
What the President said to the
create more jobs, V
better living for every
newspaper publishers is
equally
-the:money
York
tional legal fraternity.
'
minimum
the
New
a
American
and
are
was
School.
the
this
These for the most part
the
Association.
A
University of Notre Dame
graduate, Mr. Hargan also holds
an
LL.B. degree from Brooklyn
vital
developing public
understanding in support
of
a
sound fiscal program.
The crea¬
tion of the right economic climate,
in
Mr.
years,
hattan Company and the Hanover
Bank of New York City.
ican bankers in
of The
of
Bankers
viously he
•.
of
several
trator with the Bank of the Man¬
back to what I spoke of
come
last
division
State
climate in which
economy
Bankers'
taxa¬
old businesses
chil¬
our
bill
announce¬
appointments
Hargan has been Secretary of the
the
to encourage new busi¬
start,
We should pay our own way and
not
For the
are
tinue to grow as it has in the past.
reduc¬
reduction
a
•
to create
American
the
are
interest of all Americans that
cuts.
is still
revision
tqx
gram
•
.
nation's history.
there
part of the Administration's pro¬
viding plant and equipment for
only because of that, it has
.one
job ; in America is between
been possible to make the largest
It is in the
total tax cut in any year in the T$b,u0u and $10,(J0J.
and
that
The
two
sultation.
lose
not
fact
the
of
must
country, depends upon
;
barriers to economic
growth as creating the right climate of opin¬
ion.
That means wide public un¬
possible—to revise our tax sys¬
tem, for example by making the derstanding of these issues, of tax
depreciation provision more flex- policy and fiscal policy.
tax
our
was
we
the
Alexander
Manager of the
Mr. Hargan's duties will include
trust development and estate con¬
we
are
than 60 million people work¬
This
addition, as I said before, the
bill-is designed to remove from
new
about the individuals who
there were more peo¬
ple employed in America than in
any first quarter in the whole his¬
tory of this country except in Jan¬
uary and February of last year.
In
wide
bil¬
of this year
About 6,500,000
from
gov¬
as
of
R.
Trust
(Jack)
Garrett,
President,
fol¬
lowing the regular monthly board
meeting.
ing today, that in the first quarter
just
two examples of the type of relief
which this reform bill provides
for individual taxpayers.
same
a
relief
Concerned
Ted
named
F.
Trust
and
made by W. W. Overton,
Jr.,
Chairman of the Board, and P. B.
today
by
sight
of
have
benefit from
ment
named
was
vitality,
spending is cut
unemployed,
money
individuals
tion of dividends.
economy
enormous
been
Edward
—
Texas Bank
bond department.
busi¬
as
are
over many, many years.
expenses.
showing its
more
who
has
be
can
expanded
or
American
lions of dollars.
by unjust and unfair
individuals will
variety of goods and services by
about $1 billion.
in tax
Some
taxpayers
8,500,000
~ medical
Presi¬
on
is
Many
adopted to raise
new
jobs
in this period of transition
instance, it is estimated that
about
signed into law the bill which
reduced
the
examples
March
On
The
com¬
1876.
usefulness.
by
which
ernment
last
were
benefit from larger deductions for
allowed.to expire at the
(3)
that
reduced
estimated by the previous admin¬
istration.
Seven
billion
dollars
to
For
time.
dent
their
were
hardships
the
of
laws
been plagued
beginning Jan. 1.
The
excess
profits
tax,
raised
$2 billion a year,
(2)
was
other
breakdown
tax
with
of
Company and
Americans
encourage
ness.
tax leform bill, not a
bill.
a
individual
directly to indi¬
go
tax
The bill will relieve millions of
-
about
(1)
which
con¬
money
that
shows:
year,
is,
ularly
is
is
in
quickly during periods of heavy
spending for war purposes.
this
of
let's look at
so
fact
The
Our
lived
these
of
Income taxes paid by individuals came down $3 billion a
of
course, partic¬
7
total
nearly $5 billion of
or
taxes cut
cuts
The Treas-
In
The
viduals.
based.
with
benefit
result
the provisions of the present
Internal Revenue Code have out¬
pos¬
must
ur,y
This
discussion
will
It is also
savings to invest their sav¬
in stock and thus provide
made
reduction
them
light recently,
two-thirds
of
.
ture
the
The
the facts.
economy,
which that
military
gets
cuts?
than
the
soundness
our
country.
our
it
men¬
of
in the his¬
question has generated more.heat
and
increase
of
that
pletely rewritten in
will be $7.4 billion.
de¬
our
fense
tory
designed to
with
to the
Senate, and I have
primarily
working toward two great objec¬
;
Reduction
briefly
reductions of $1.4 billion.
I want
to point out, however, that this is
relief
made in any year
Not
referred
Officer
that relief is.
as
capital
effective this year will amount to
the largest total dollar tax cut
been
Reform,
have
DALLAS, Texas
Hargan has been
ings
*
This
With Texas Bk. & Tr.
provision, however, is not de¬
signed solely to relieve individual
taxpayers,
important
and
de¬
tax revision bill which is now be¬
regarding
expansion of business
double taxation of dividends boon to
Hargan, Alexander
in
his tax message in
1936, have recognized the
inequity of this double tax.
This
March
fore the
government
rather
Roosevelt
taxes.
I
11
parties, beginning with President
we
Tax
'
is
reform
without
reduc¬
expenditures.
spending cuts
served
Secretary of the Treasury
Administration's main objectives, provision of ade¬
quate military posture, and maintenance and increase of
underlying soundness of our economy, Mr. Rose maintains
with
further
on
believe, cost the Amer¬
ican'taxpayer more in inflated
prices than they would save him
as
latter
based
cuts
would,
By H. CHAPMAN ROSE*
Assistant
be
tions in government
(1991)
t
■
R. L. DAY & CO.
of
Inc.,
12
The Commercial and Financial Chronicle..
(1992)
.Thursday, May 6, 1S54
in*'! jr.*
By HON. CHARLES E. WILSON*
Secretary of Defense
the "new look" of the National Defense Pro¬
After describing
a
countries.
I
appreciate this opportunity to
to you on the subject of
"Our Nation's Defense Program."
of
Since
not
—
historically, dictators
and more power
been dangerous threats to
and have often precipitated
wars.
■
have
in
in which short
phrases, or
what
might
more
a
imperialism is
real threat to our nation and the
free
It
world.
is
the
reason
our
catch
phrases,
nation must have and continue to
are
used
have
to
overly simpli¬
fy or perhaps
gloss over
complicated
really
is
con¬
each
Of
C. E. Wilson
communist
The
rather than the
real
ployment
stated
peace,
The
to
all th^
his em¬
with the
on
in
shores
has forced
age
struction
talk
national
with
security.
all-out
about
the
war.
Hence
plan
and
for
we
the
threat
of
massive
to
tive retaliation.
Broad
Kroad
A
Our
on
arsenal
Military
Mll,tary
We
base.
the
dom.
have
must
We
stability of the
continue
must
research, increase
to
0f
tion
of
notations
ful
cially require judgment and care¬
appraisal. Some such persons,
perialism,
while
sufficient military forces in
equipped with modern and
supe-
plans,
cold
continental
ready reserves,
massive retaliation, full
employment, economic stability,
war,
nists,
While
used
each
as
a
these
of
subject for
could
talk, they all are involved in our
nation's defense program.
So to¬
day,. instead of trying, to explain
sufficient
in
detail
the
meaning
of any one of these
phrases, I
thought I would fit them together
for you and show you how they
influence
I
ideal
be
a
all
sure
am
the
defense
our
of
rstable
all, fundamentally it is a privi¬
lege and not a right to work for
the government.
The American
people do not believe that secu¬
rity risks should have places in
used
by the world communist con¬
spiracy to undermine our govern¬
nation
would
ment.
of
lasting
peace,
Americans do not Want such peo¬
and
economy,
The
mentally
funda¬
of
the
proper
scientific
in
knowledge,
increased
of
use
mechanical
horsepower
and machines,
sub¬
stituting slaves of iron and steel
for human
backs.
We
the
of
without
threat
to
Communists
on
nations
actual
of
the
shooting.
-
the
economic
believe
tive
and
maintain
stable
know better.
so¬
produc¬
a
We
economy.
We reject such false
dogma.
their
party
Communists promote fear and un¬
rest.
Their strategy is to upset
the economy of free nations, forc¬
of the natural social and economic
country in
have
we
spite
fortune of three
ory
of most of
The
wars
the
fact
the
in the
mis¬
mem¬
us.
serious
most
of
suffered
threat to
the
of the world today is com¬
munist imperialism.
It is a real
peace
threat
because
important nations
Russia, Red China and their
like
satellites
are
tors
who
the
people
but
under
sense
control
controlled by dicta¬
operate in the
of
who
the
the
name
are
in
direction
people
of
of
no
and
their
*An
the
address
Chamber of
by
Secy.
Wilson
Commerce
Washington,
D.
of
C.,
relations
between
communities and
necessary
dividuals,
tions.
Our
political
society
stability
flourish
mum
and
a
run
1954.
26,
in¬
with, its
to
all
the
the
a
to
maxi¬
people.
power¬
suitable
fly wheel in order
smoothly—the fly wheel
stability, full employ¬
Communist
a
order
society is like
of financial
before
to
me
free institutions
In
our
must
avoid using
In
effort
to
maintain
all
effect
country-
our
without
regimentation
and
resort
specific
efficiency
our
free
Our
and
nation's
requires
and
budgets.
the free world
in
the
a
period
i
firtivni nirifinSi
can
tion
pv
say
made
the
intensive
and
that
reserva-
study has
great
and
and
orientation
gram.
of our military proI do not claim that all the
inefficiencies
.
eludes
and
can
be
:
v
,
for
provision
improved
"
outposts,
interceptor
missile squadrons and
of our air, naval and
devoted to this task.
bagic
concepts
are
the
foundation of our nation's defense
program.
This program is built
arouncj
military
new
ommended
by
aPPr°ved
the
by
plans
Joint
the
rec-
Chiefs
President
intended to make and keep Amer-
ica
strong and
of peril.
secure
in
an
age
waste
in
our
defense activities have been elim-
inated, nor that all of our objectives will shortly be achieved,
key to
our
ning is found in
military plan-
our
national pol-
Accordingly, the
strategy
recommended
out
Staff might
Our
our
as
indi¬
was
have
matter
been
who
un¬
our
have been.
program is a natural evo¬
from - the
crash program
new
lution
that
was
adopted following the
beginning of hostilities in Korea.
It
recognizes the need for the
"long pull" that we must continue
to maintain
military and eco¬
our
nomic strength over a long
The
funds for
new
period.
nation's
our
defense
program currently being
requested from Congress are im¬
portantly influenced by the new
military program.
Our estimate
of the expenditures for fiscal year
1955 was influenced by our new
military program and the commit¬
ments
previously
earlier
that
made
under
appropriations.
we
stage in
in
still
are
of
some
The
fact
the build-up
military
our
ac¬
tivities requires expenditures at a
somewhat higher rate than will be
true when the program levels off.
This is
the
that
reason
expenditures
will
exceed
new
ized
for
same
the
estimated
fiscal
for
1954
author¬
year
money
period
by ap-*
proximately $7.8 billion, and the
expenditures we estimate for fis¬
cal year 1955 will exceed the new
funds requested for
tfaat period by
billion also.
The estimate of the expenditure
rate for fiscal year 1955 is approx¬
imately $4 billion less than the
estimated expenditures for fiscal
year 1954, amounting to a reduc¬
approximately
tion
of
$6.6
little
a
than
less
10%.
This
change in our rate of ex¬
penditures should not in itself
sufficient
the
fect
to
importantly af¬
economy of the
over-all
country.
Our military programs
forecasts
of
them out
carry
and the
required
money
to
always subject
are
to
change.
The next few months
obviously
critical
ones
in
world affairs, and what happens
in Europe and Asia during this
period may force a soul-searching
review of our specific policies,
are
objectives
plans,
expendi¬
and
tures.
The
of the Defense De¬
to provide a sound
our country.
We must
duty
is
partment
defense for
achieve
this
obtaining
by
mum/'
every
dollar
the
for
by
Con¬
available
made
their
through
people
maxi¬
effectiveness
combat
gress.
;
t
in
Economy
There
are
Affairs
Military
three
achieving
distinct meth¬
in mil¬
economy
:
First, there is economy in plan¬
ning (what some planners call
"economy in forces").
By this
devising a strategy
permits the selection of
mean
force elements
which
tems
combat
in
the
basis
Joint
of
sys¬
greatest
the
at
low¬
and
manpower
This is
sources.
those
weapons
effectiveness
cost
est
and
provide the
we
which
re¬
primarily the job
Chiefs
who,
national
stated
on the
policies
and
objectives, evaluate the capa¬
bilities of potential aggressors and
devise the most effective strategy
meet
to
omy
such
conditions.
in forces is reflected
Econ¬
in the
carefully considered, long-range
plan of the Joint Chiefs, of which
the
fiscal year
flected in
our
1955 phase is
current
re¬
budget
re¬
economy
in
quest.
Second,
there
is
programming.
By this we
the provision of the proper
mean
sup¬
necessary
national
policy
military
by
the
to
as
materiel and bases re¬
quired to maintain the degree of
manpower,
Policies
icies.
Joint Chiefs
strategy
would
port forces and resources, such
Our National
The
devel¬
were
no
of
These
'
plans
itary affairs:
^Sixtn, the President placed emPhasis on a strengthened plan of
continental defense, which in-
re¬
is also
strictly mili¬
up?.n
and
industrial
an
which
has resulted
re-examination
military
our
ods of,
fpuowing consideration
by the
National Security Council.
It is
without
progress
is
base
these
oped by the new Joint Chiefs ap¬
pointed late August, a review of
high
a
happy course of action is forced
KVer+i^ nfeS and
by the then
review.
now
encouraging
from
i
indicated
that this
been
f-
While
indefinite
converted swiftly from partial to
mobilization if that un-
'
io^I
outhned in the FY 1954
interim goals and
forthcoming
I
?°
tL'
+v.
time,
** the
were
be
of
at
an
the
f
t
maintained
radar
and guided
summer 0tber units
?
land Iorces
a
mig
be
a
the past months.
which
program,
.all-out
arfi rJn jjf Qcori^l
latp
x? lint
\
"
look at the entire
budget
defense
mobilization
of
nations of
imperialism
serious threat to
before
mo¬
career
level of readiness for
program
WnnQAParlH ^
T criftpri
thHncar
k
our armed
is the
create conditions of
must
continuous
appeared
man-
interest.
national
great deal of credit
outstanding work during
for their
professional corps
a
to
•
I
trained
of
use
we must take steps neces-
to
fective
study and specific and detailed
plans and programs promptly, effectively and efficiently carried
When
national; defense
the most economical
of
system.:
defense
careful
to
of
i;
;
.
service the required
numbers of long-term personnel,
' Fifth, the foundation of an e'f-
con-
effectiveness
industrial
•
men
in the
us
the economy
on
acts
r
rale and security which will retain
control
overall
readiness
of
possible
.
our
on
Since
f°rces,
know enough to reasonably
these
factors
and
their
we
strategic redictated by world
teacher and leader of
We do have to recognize the
essential factors involved. I have
confidence that between
require the
of trained officers and
eco-
ods.
every
re-
our
any
mobile
meth-~sary
Communist
or
of
>•'«
and
stability and relatively full
employment we do not have to
Fascist
therefore
state
power.
nomic
use
and
must rest
we
,.
our
ants deserve
be
high
with
a
cope
the methods of
tyrant.
of
use
concepts
new
aggression.
Fourth,
and
security risks
"the
and
conditions and their maintenance
in
efforts to eliminate
subversives and
a
permit
na¬
reciprocating engine that must
have
to
in
provide
benefits
Our free
ful
not
respect for individual human
rights.
in
serve forces as
f
our
economies
reassembly
the importance of main-
f
free
high standard of living, its big
cities, large industrial plants and
specialized
agriculture
requires
understanding, cooperation and
the United
April
taining",
our
airnower
forces
■
does
on
to
ment and balanced
States,
Times
dwell
line,
ing unemployment and disrupt'on
that
up.
emphasize
quire maximum mobility of action
upon the part o{ all of our armed
back
to
reserves
the
Third,, these
manpower
out
Following
that
great progress
along these lines can be made in
our
material
them
operate
free
a
have dem¬
onstrated
and
the
and
weapons
sharing
manpower
trols that interfere with the final
stability.
and
principle that
ciety cannot
,
the
and
achieve
Communists imperialism is also
a
state
requires the
exploitation of natural re¬
sources, the continuing growth
/.or
world
the
of
defined
of ideol¬
be
may
communists to
domination
rights of the individ¬
1 aggrandizement
an.y dictator.
It
the
war
through subversion the increasing
promotion of the :initia+
millions, and not in
the
tive
military services.
cold
controlled
the recognition of the
on
basic human
ual,
based,
else,
an
aggressive clash
ogies in an effort by the Moscow
society
has
demonstrated
that, freed of the burdens of war,
it can promote the spiritual and
economic 1 well-being
of. all its
is
everything
as
free
This
Above
ple in their
opportu¬
nity for an ever-increasing stand¬
ard of living for all. Our modern
citizens.
nor
government where they could be
any
for
condition
a
fairly,
interest must be paramount. After
that
agree
People
must
be
but the national
person.
treated
program.
us
or
able
be
half-hour
a
commu¬
can
ellers
and civil defense.
age,
card-carrying
be listed as fellow trav¬
security risks. A security
risk is not necessarily a proven
disloyal, subversive; or treason¬
defense,
atomic
not
free-
our
propose
permit
being,
strategic
that espe¬
ones
preserve
allies certain knowledge
tactical use of such wea-
our
which
technology for both peaceful and military purposes. We must maintain
the
are
an aggressor if they
to
would
integration of new
systems
into
military
planning
creates
new
relationships between men and materiel
this knowledge and
long pull, the'new look, se¬
curity
risks,
fellow
travellers,
using
Second, the
pro-
mobilization base, communist im¬
of
weapons
scien-
our
and
weapons
means
p0ns
na-
con-1 tific knowledge, and the applica-
loyalty
We
with
industrial potential and
our
economic
needed
are
the
serve
will take full
we
nuclear
them aSainst
Base
Kase
to
large and growing
our
of
determined
are
<£?the most effective
spiritual strength and p o 111 i c a 1
unity. We must continue to de-
velop
of peace,
account of
military strength must rest
broad
a
we
atomic power
use
usages
effec-
and
the
,
First, While
conti-
defense, civil defense and
ability to deter war through
our
This
grow.
We shall not
massive capability to strike back."
He
made
six
essential
points
which underlie the more important considerations in our defense
planning, the substance of which
I would like to reemphasize.
de-
in
to
we
military
our
be aggressors, but we1 and our
allies have and will maintain a
our
serious
or
country
our
year,
continues
power
As
peace secure.
new
to deter aggression.
longer
no
our
hope is
ourselves and the
power is for our own defense and
nental
mote
risks
in
of
event
tion.
Security
enter this
us
near
"Since
owe
to make that
and
oceans
themselves
invasion
prevent
consistent with
prob¬
atomic
recognize that the
that
we
world a candid explanation of the
military measures we are taking
lems.
Federal Government is not clearly
For example,
lems back of them.
if, based
information,
or
retention
available
the
as
imperialism tries to dominate the
world
by means of propaganda,
economic
sabotage
or
outright
military force. Hence, we talk
about "the long pull," and "the
new
look," which are reappraisals
of our strategic plans and force
levels, our mobilization base, our
ready reserves and related prob-
or
consideration
full
Chiefs of
In
his
message
to
Congress
early this year President Eisenhower well stated the basic philosophy underlying our whole
national
security program.
He
communist
exists
with
the -overall
dertaken
Planning
must
we
long
as
Considerations in Defense
.
involving
as
era,
period
curtain
nations of the world.
security risk
that is why we
often get into arguments and dis¬
cussions about the phrases them¬
Perhaps
selves
world.
free
threat to
Hence, we have the phrases "fel¬
low travellers,"
"security risks"
and "cold war."
A person is a
derstanding
them.
three-pronged
a
most of the
troversy and
some
misun¬
about
pro¬
conspiracy operates in the psy¬
chological aind propaganda area in
matters.
There
defense
Communist imperialism is
gram.
the
effective
an
com-
march
their
the control of the waters
Thus communist
called
be
peace
historical
time—a
iron
the peoples
sure
want
Since the
of
veloped
of
f
The Joint Chiefs and their assist¬
cated
prepared to deter war through
over an indefinite period
of
But,
war.
thirsty for
I
Washington,
to
an. envi¬
ronment
am
effective
and
mutual
conceive
whole
be
peace
coming
find
I
world
the
have
strength
establishment.
speak
subversion,
and
world domination
to
a
in military
economy
plans and programs for the long
pull, we must always be ready to
take a new look at them when
less or defenseless people.
In a world conditions change or new
military sense they are always scientific and technical developready to move into what might be ments indicate the desirability of
called a power vacuum.
There- making some modification in our
fore, our nation and our allies military and strategic plans,
munists
of the nation.
Lists as important considerations in defense planning: (1)
use of atomic power to serve usages of peace as well as war;
(2) integration of new weapons systems as means of economy
in man power; (3) maximum mobility of action of armed
forces; (4) most economical use of trained manpower; (5)
creation of industrial mobilization base, and (6) strengthened
Outlines
violence
force,
they are always prepared to rush
in and dominate any weak, rest-
defense programs.
industrial potential and the economic stability
plan of continental defense.
world
must
Secy. Wilson points out our military strength must rest
broad base, which comprises further development of our
gram,
on
teach
Improvement must be a continuing process. While we must have
Since the communists
revolution, through
tary sense.
Our Military Planning Linked to a
Stable but Dynamic Economy
rf
carry
was
de¬
combat
ness
readiness
and
effective¬
to
implement the
strategy we have adopted.
Economy in programming is renecessary
Continued,
on
page
36
Number 5322
Volume 179
The Commercial and Financial Chronicle
...
(1993)
$10,000
By JOHN JAY HOPKINS*
our greatest worry should not be
H-bomb, but rather the human spirit, including the hate,
greed, or fear, behind it. Expresses faith in world's choice
tending toward atomic creation rather than destruction, main¬
in
1939
age
the
with
uranium
splitting of the
It
atom.
conceived
was
in
born
was
1942 at Chicago when Fermi
his
and
group
demonstrated
self-sustain¬
a
ing
nuclear
reaction.
The
atomic revolution
now
—
radioactive
ashes
'
and
.
cepts
con¬
began
—
Alama-
at
gordo in
as
John
Jay
Hopkins
1945
wartime
a
achievement
triggered by
a
desperate wartime emergency. Yet
the terrible first employment of
atomic
energy
as
the
lightbrighter than the sun—which de¬
stroyed
Hiroshima,
should
not
blind
us to the
great and enduring
good for all mankind already rip¬
pling
outward
from
these
epic
events.
We have learned and
ing—as
have
we
had
learn¬
are
do
to
with
fire—that the uncontrolled release
of
atomic
world's
energy
be
can
evil.
greatest
the
Atomic
energy controlled can become the
world's greatest material blessing
major
—a
spirit of
his
achievement
dual
in the conquest
man
world.
material
the
of
This
destiny of the atom.
of
the
is
Yet it
must be borne in mind
during this
current wave of mild hysteria—
and during the future recurring at¬
mospheres of apprehension which
are
bound
the
atomic fission
motive,
to
us—that
encompass
that
the
has
missile
no
thermo-nuclear
device has
no brain, and that the
theoretical bomb of cobalt would
be but
vated
inert genie unless
an
by
man
as
acti¬
instrument
an
of complete self destruction.
The atom bomb does not decide
its enemv,. choose its target, deto¬
nate itself.
what it
It does
is
di¬
rected to do.
The thermo-nuclear
device
in
is
not
"hell"
a
with
itself
bomb.
human
villain—
a
Bombs
hands.
built
are
Human
pas¬
sions, not these infernal machines,
i-
:
putting the atom to work,
source
interesting
speck of radioactive
For
the
Potential
of
destruction,
the curbing of atomic energy to
peacetime use has become the
in
hate
world
a
of
war
and
and
evil, but in a world of
and of goodwill. Not as a
destroyer of cities and nations but
as
a
builder and savior.
Indeed,
peace,
in its
fundamentals the principles
of atomic fission
given
now
the
us
forces
between
us
and
fusion have
knowledge
to
researcher
the
in
bio-physics,
chemistry, or medicine
atomic
fuel;
of
me,
or
the fuel-oil
when
tank.
For
one
with
its
North
While atomic clouds and rains of
Hopkins before the
York, April 28,
New
In
iron.
industry
A
typical
t.-i
may
$750.
trial
1854.
i
:
„
,i:i
<
.
t
fur j;
j
»
:t
>
i
*
N'tH/.',' 1" J
^
l..'V .y
>
from
America
studies
of
great
know, the Atomic
Energy Commission is proceeding
with the development of the first
nuclear
making
importance
on
produce
to
experience in this 60,000-kilowatt
project and industry's direct par¬
ticipation in its construction and
management phases will show the
for future independent enter¬
In fact,
iness
to
basis
smaller
of atomic
build
„c
'
u u>
for
reactors
the realization
was
great
which
fixed-price
a
of
portents
the
led
the
President
to
make his dramatic proposal to the
United Nations last December. The
boldness
constructive
and
imagi¬
nation of that proposal were
in
keeping
tradition
when
ahead
readiness
our
human welfare
life
that
to
move
instincts
and
tell
us
conditions of
be improved.
may
vious
quite
American
the
with
of
It is ob¬
such a
implementing
involves many delicate
problems, particu¬
world fraught with con¬
proposal
and
difficult
larly
in
cerns
a
of international security. We
the
however,
have,
Chairman
Strauss
assurance
of
the
of
Atomic
Commission that no fear
security need dissuade us from
the basic purpose which lay be¬
hind
the
President's
proposal.
Energy
for
Rather, if
of
some
you
consider with care
technological
potent
have
reviewed
share with
may
viction
we
the
I
factors
that
me
for
you,
the
con¬
international
ex¬
ploitation of atomic energy is ab¬
solutely inevitable.
Atomic energy, then, as a revo¬
lutionary
its
first
for
power scores
on
source
chance
the
basis
of
Today experts
hesitant to say that nuclear-
simple Economics.
are
powered plants will soon produce
power below the cost of our most
efficient
conventionally-fuelled
NEW ISSUE
$20,000,000
The Cleveland
Electric Illuminating Company
■■
First
1
Mortgage Bonds, 3% Series due 1989
Due
May 1, 1989
»
atomic*
compa¬
alone
Price 101.086% and Accrued Interest
are
Copies of the Prospectus may be obtained in any State only from such of
registered dealers in securities in such State.
to meas¬
coating on
the
the several Underwriters as are
Its
six-year
a
has
of
of
over
a
to
machine,
an
•if i
yd
r. i
<•!
ti )
i'.SM
Incorporated
3f1
May 6, 1954.
..
indus¬
might
cost
h »! !.P r u.' i
V t
vi
lj >;i
'i
1! J'Tniwl-t'.I-'.rSl
Baxter, Williams & Co.
Blair, Rollins & Co.
a
$20,000,000.
radiography installa¬
cost a factory about.
predecessor,
X-ray
period
from
grown
$2,000,000
"UIJ
t'
;
' 41
-?v;
-:
•
•
con¬
plants.
power
these
atom
on
size
Obviously it
of
private
many
have already indicated read¬
cerns
say
already heating buildings experi¬
mentally with atomic energy.
plant
power
electrical energy on a commercial
scale.
The engineering and cost
also large; military
being re¬
Considerable
is
you
as
own
guages
control
and
ure
tion
"
of
,
Here,
are
was
research
parts of the products they make.
A
further
250
firms
are
using
volume
Mr.
land, pooling atomic research for
peacetime purposes.
1
using atomic energy in radia-,
tion instruments that inspect metal
sales
by
the figures on
atom
now
destruction.
Club
tear
example: Some 300
in
nies
volume
'Speech
then tell
A
Switzer¬
the veil of mystery and of
sales
Ecoromic
hos¬
Geneva,
near
fear.
this
atomic
can
This workman
product
one
Agricultural
or
energy
are
there
made for atomic
than
of
need
world's
years.
energy
to
creation
rather
capsule form
dis¬
of thyroid
the
particularly Canada,
formerly had to take samples from producers.
the
Now what can we
pipeline in order to know
metal¬
serve
will
believe
treatment
without
ex¬
industrial usage, it seems
more than anything else,
indications that the world's choice
I
the
orders
in
2,000
The atom offers great hope for
plant growth
and
soil process
provides
plants. There are few, however,
through the use of radioactive the Continent of Europe which
priceless precision tools to iden¬
that will
fail to estimate even
stimulants and tracers.
clearly faces a power shortage in
now that a nuclear-powered plant
tify and trace chemical reactions
So great
foreseeable
future.
World
is the expansion of the
on and within the consitutents of
can be built to produce
power at
uses of radioactivity in
the field scientists find the need for energy
living matter and inorganic mat¬
a
cost somewhere in the upper
of medicine, it is estimated that far outstripping man's ability to
ter. The atom offers a possibility
Continued on page 32
already the lives of more people produce it from hitherto conven¬
of achieving chemical reactions—
in ways not previously possible—
through the use of radioactivity
as
a
catalyst, or reaction agent.
This advertisement is not and is under no circumstances to be construed as an offering of any
To the industrial or military man,
of these securities for sale or as a solicitation of an offer to buy any of such
atomic energy has provided, as we
securities. The offering is made only by the Prospectus.
lurgy,
ized
be
for
iodine
the
last
such things as paper and galvan¬
good and evil.
Hopefully,
ethical laboratories is offering ra¬
power?
Spurred by the constantly ris¬
deserve the great creative boons1
and delay, where ing cost of coal as mines become
of atomic energy rather than the inter-mixing,
the deeper
and
veins
thinner,
the
horrible consequences of its de¬ the second shipment joined
British
are
moving
swiftly
to
structive power, we have no al¬ first, was'of course inevitable.
place greater and greater emphasis
ternative, I believe, but to work
The Field of Preventive
on power from atomic energy. The
vigorously and unremittingly, and
Maintenance
point at which atomic energy be¬
instantly, toward the constructive
Another important application comes
competitive with conven¬
benefits which it so clearly offers.
of atomic energy is in the field of tional fuels will be reached far
It seems fair to compare the
preventive maintenance. At least earlier in Britain, and elsewhere,
revolutionary impact of atomic
15 large oil and chemical concerns than in the United States. Indeed,
energy
on
our
world
economy
are
already engaged in this ac¬ British scientists and engineers
with the discovery of fire, steam
tivity. Since a radioactive pellet now conclude that within 15 to 20
and
electricity, and the power
can be suspended from a string of
years
nuclear energy should be
sources of coal, oil, wood and fall¬
wire and carried from place
to able to make a substantial con¬
ing water. But the nature of the
place like a weight on the end of tribution to the electricity supply
atomic
revolution
is
infinitely
a
fishing pole, it can be dropped of Britain at a cost comparable
more
varied
in scope
than any
into inaccessible places.
A main¬ with the cost of coal-generated
mere power revolution.
I foresee
tenance man can drop such a pel¬ electricity.
In that time it may
that
the atomic
revolution
will
let down a pipe into a valve, for be possible to
set up a reactor
transform not only power, travel,
example, put a film on the outside system
which
would
generate
transport,
and
communication,
of the valve, and X-ray the crit¬ enough electricity to save 20 mil¬
with new portable power packs,
ical part with a minimum of dif¬ lion tons of coal a year — the
but will revolutionize our econ¬
amount by which estimated pro¬
ficulty.
omies, our social customs, our
Atomic
radiation therefore
is duction will
fall
short of esti¬
medicine, our finances, our poli¬
upsetting the status quo by faster, mated requirements in the next
tics, our agriculture, our biology!
decades.
Not
reliable ways of two
only
would
The atom
is revolt
incarnate cheaper, more
investigating the wear in pistons, there be a considerable saving in
against the status quo!
of
measuring
the
thickness
of cost but the partial introduction
To a physicist, atomic energy is
films of rubber, paper and metals, of nuclear power may also make
a
prime tool for studying the
in the radiography of castings, in possible a shift of manpower from
nature of the physical world, both
the detection of impurities in dyes, marginal coal mines to more pro¬
as
to its structure and the inter¬
paints,
crystals
and
chemicals. ductive activities. The British are
relation of force and matter.
To
which atomic thickness
historic choice
an
from
prise.
placed by the other.
to
The atom has its greatest poten¬
not
*
when
than
should
Peace
tial
sufferers
the
in
for existing
World
in
of
shipment of radio¬
to stop pumping the pipe¬ active isotopes. In 1946 there were
line's flow into the gasoline stor¬ a total of 246 shipments; in 1953
age tank, and switch it over to there were 10,676.
Other nations,
.
spread
Greatest
largest
smasher
peculiar
offering
wot
be—
need
ing
lives
way
an
up 37 times
has been pro¬
as
the
other end of the line
speeded, too, though hardly
even
publicized — and but little
regarded by those without a scien¬
tific background.
Because creation is infinitely
;
problems, but also one
competition
eventually
fuels and reserves of
Passions spin the plot."
energy far surpassing any of those
now being employed.
What
we
need
to
fear,
and
As a matter of fact, more than
should seek to control, is not the
H-bomb
but
rather the human 1,000 firms in the United States
and Canada, to say nothing of the
spirit and thought that breed be¬
rest of the world, are already em¬
hind this bomb—and the hate, or
greed, or fear that trembles on the ploying the atom in every-day,
routine
operations.
The
wide¬
trigger.
God
life,
tragic
No villain
v
of atomic aids for
years
pool is build¬
dioactive
Atomic tracers provide another
100
12-nation European
pitalization or elaborate controls.
The largest single employer of
ample, a
ma¬
terial is dropped into a pipeline isotopic materials is industry. The
when a shipment of gasoline is second
largest application'is inpumped into the line, followed by the field of medicine. Some per¬
a
shipment of fuel oil.
With a spective on our progress in the
Geiger Counter, a workman at the last few years may be gained from
ing
type
"In
host of others
industry.
for
atoms
George Meredith:
are
a
growing
words of that great and wise poet,
today
them
much energy
as
esti¬
expert
next
burn
checks the over-production of red
blood cells in the bone marrow—
.
said, instruments
of un¬
imaginable
power.
To
electric
utility management it offers a new
for
true
use
will
have
supply the villainy and the hell.
How
revolution., Auto¬
manufacturers
world
the
in
duced
cylinders, pistons, connecting leukemia have been prolonged.
one
of
our
Airplane companies, boiler And
most
famous
are
transforming greatest technological challenge of
our
long held our day. Indeed this is not merely
scientific, eco¬ a technological but a moral chal¬
nomic and po- lenge to us all.
For in order to
litical
atomic
"tools"
the
One
sources.
that
of radioactive phosphorus—which
rods.
monopolize the news — the
peaceful atomic revolution is be¬
difficult
industrial
more
adopting these
are
r
and
manufacturers and
war
more
the
more
mobile
.
atomic
that
on
has become
greatest technological challenge of our day.
The
tional
of
Industrial leader maintains
use
have been
mates
firms
the
peacetime
thus
sayed by the atom than
is
President, General Dynamics Co.
energy to
The atom
more.
offers
/
taining curbing of atomic
or
cheap, reliable inspection were lost in the Hiroshima and
of
parts — which
means
faster, Nagasaki explosions!
lower-cost production. The result
For example, through the use
The Atomic Revolution
13
)<■
~•
->"•
••
•
.»
t?
i•
:
■
•
J.
>
nt-.y
it:,
drill
to
-H!
ft. (1
!L;
i
\h t-i
it.
A'
;/>« *..*<•
>i
y;
.•.<
■„ ■
1,, ;;
»*.\
i
,
,t»>t &' ir ;
14
The Commercial and Financial Chronicle
(1994)
not operate profitably, effi¬
ciently, at low cost without good
relations
with
the
people who
can
The Sfiucture of Industry
Vice-President,
Executive
best perform this
function. Stresses
profit motive of industry, but emphasizes "low costs as the
greatest share-the-wealth scheme which man has devised."
Holds industry's chief function is to provide employment.
Points out value of trained personnel in industry and import¬
ance of the risk element.
Discusses "Big Business" in indus¬
try, and gives data on role played by separate industries in
can
100
When I
the
about
and I
of
structure
services which
industry"—the magni-
"American
tude of the
share
sometimes
more
thought
about it, the
I
definition.
intrigued.
the
conclusion
that
I
answer
three
Schwanhausser
of
does
merely
one
any
sounds
man
like
can
in
cover
most
important
company
a
profit, it is
its own fat—on
on
a
is
It
giving
it takgs in.
up
I wouldn't
put any of my money in
away
that
venture
intended
to
give
to
somebody else under
the guise of doing business—and
would
neither
you.
So, it is the function of industry
any
to
reasonable period, don't lose heart
because
I think
so
too.
What I
I
to
it
can
than
more
Corpo¬
that it isn't
that. Let's con¬
at
time.
want
it best perform its function?"
this
living
than
a
"Under what circumstances
to
you
profit. If
operate
borrowed
perform
in¬
bound
are
Worthington
tell
and
at a
more
this function?" and
If
first
produce things at a profit.
But
that
qualification
is
not
enough. Obviously almost any¬
body can manufacture goods if
selling price is no object. So, sell¬
ing price is also an object. To the
hope to do this evening is to stim¬
ulate your minds along a line of inquiry that seems to me worthy of
your time and talents—especially
since all of you are moving to¬
consumer
ward positions of management re¬ very important. You and I do not
live in a Cost-Pius Society.
We
sponsibility and ought to be ex-'
have to take into account the fact
amining these areas of the subject.
I
the
Newark
couraging
to
you
such
certain prices and he doesn't want
them at all at higher prices.
explora¬
And
tion through this Junior Executive
glad to do whatever I
help.
I
think
also
I
have
should
been
admit
that
to
I
ing like the Russian manufacturer
an
who
here
fellow
as
an
no
as
a
teacher
but
as
and like
a
have
answers.
final
I
the
The
ideas but
function
principal
advantage I have over you—if any
—is the evidence I have acquired
from
a
longer experience than
goods
well
take
old, out-of-date and
of
as
to
services at
and
at
produce
price as
a
profit.
a
Abrams, until recent¬
Chairman of the Board
of
ly
Let's
start
of
with
sey)
Industry
first
the
Company (New Jer¬
said: "Low costs are the
once
greatest share-the-wealth
ques¬
which
tion: "What is the function of in¬
But
dustry?"
there
A very
the
by
Junior
Conference
Mr.
Schwanhausser
Executive
Series,
Newark
are
still
other
facets
of this subject to be considered.
Well, it is to produce goods and
address
scheme
has devised."
man
large part of the
Development
College
of
living. Many millions of
ple work in industry. A
our
a
peo¬
company
YEARS
'
TURNOVER
AMONG
THE
100
{
LARGEST
•
1929
O
are
I
so
think
selves
at
should
we
remind
community,
has
its
point that the job
to be done must be accomplished
Executives Club of Chicago, Craw¬
a
'
in
a
dynamic society.
static
This is not
by
problem to be solved
CHART
THE
CHANGING
SHARES
OF
INDUSTRIES
*
2
REPRESENTED
THE
IN
100
LARGEST
CORPORATIONS.
(by assets)
20
15
10
25
inter¬
other
of
a
which
example,
for
ideas of the
own
function
various
Federal
the
and
company,
State
governments,
and
and
local, which think of industry,
often, chiefly
very
and
taxes
as
a
a source of
of collecting
as
way
taxes.
And
will
I
add
more—the
one
American
people. The nation ex¬
pects certain things of American
industry in peace or in war and it
thinks that industry's function is
to live up to these expectations
(which, in
judgment, it has—
In time of war,
my
magnificently).
tile American
people count
in¬
on
dustry to produce better than
enemy
and
any
combination enemies—
industry has
or
American
that
100
Assets
done. In time of peace,
the Ameri¬
people look to American in¬
can
largest
corporations
in
$
:
49
billion
1918
IOOJ
underwrite a strong,
dynamic and growing economy—
and that American industry is do¬
ing also.
;
Vdustry
to
How Industry
Y
Performs Its
<
Functions
Since
to
a
it
is
industry's
function
CHART
#
3.
produce
goods, at a profit, at
price, and to successfully serve
great diversity of interests, how
then
does
industry
PROFITS
this
perform
OF
BUSINESS
-
BY
SIZE.
function?
The first and greatest asset of a
business
enterprise
including
the
form
myriad
the
unskilled
is
people
"doers"
of
who
(before taxes) AND NON-CORPORATIONS.
(Percent of total national
per¬
skilled
operations
CORPORATIONS
—
income)
i.
and
incident
to
the
end
and
just as importantly managers
supervisors capable of deal¬
and
CORPORATIONS.
product
of
the
.business,
ing with the complex problems of
industry.
It has become
increasingly clear
over
the years that industry has
been
developing a /nanagement
profession in this country—a na¬
tional corps of trained and able
capable of performing the
industry on the basis not
only of experience but organized
knowledge. One familiar evidence
is the growing number of grad¬
men,
tasks of
business
uate
courses
istration.
other
schools
in
But
there
grad¬
largest
industrial
Other
large
3.7
corp.
corp.
3.3
2.5
2.0
admin¬
are
many
y1 is
large amounts each
evidences.
spending
and
business
100
very
training
I
its
d
n
u s
t
executive
r
per¬
.
m J, >
is
It
and
broaden their horizons.
It is
Medium
sized
corp.
*
0
1935
A
1948
searching
a
continually
*
for
able
candidates
I
0,0 0 0 0
■
■
•
•
•
•
••••
•
•
•
•
1
00000
■
■
■
■
■
A
A
0 • •
A
A
A
AO
■
■
■
■
■
00000
■
■
■
■
00000
00000
ooooo
ooooo
ooooo
ooooo
ooooo
OOOOO
i
00000
is
A
A
A
A
A
A
nancial
■ A A
A
A
A
A A
A
A
eration to
■
■
■
■
A
A
A
A
A
■
■
■
■
■
A
A A
A
A
■
■
■
■
■
■
■
■
■
A
0 ■ ■ ■ ■
■
■
■
■
■
■
■
■
■
■
Small
corp.
all along the line.
■
ooooo
A A A A
00000
00000
for the high offices—
anticipating its future needs,
contributing even greater fi¬
and
•
■
I
and
support
used
active
educational
coop¬
institutions
to
think, when I was a
operating a drill press,
how wonderful it would be to get
to the top of the company and be
young man
•
•
•
•
•
ooooo
•
•
•
•
•
•
•
«oo
•
•
•
•
•
•
•
•
•
ooooo
ooooo
ooooo
•
•
«
pendent—I wouldn't have to "take
•
•
•
•
•
•
ooooo
ooooo
ooooo
it"
ooooo
"arrived"!
•
•
•
•
•
•
•
•
•
I
•
•
•
•
•
*ooo
ooooo
•
•
•
•
•
•
•
•
•
•
•
0
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
©
•
•
•
•
•
•
•
•
•
•
•
•
•
••••-
•
•
•
•
•
•
•
•
•
•
•
•
•
•
oooo
•
•
•
•
•
dream.
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
e
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
ble
•
•
•
•
•
•
•
•
•
•
•
•
•
•
0
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
this
inde¬
be
I would have
was
a
Non-corporate
business
to
Instead of
foolish
one
•
man,
being responsi¬
become
you
re¬
,
other
a
b
could
anybody.
sponsible
•
I
•
•
•
boss.
own
from
Obviously
••••
•
•
my
our¬
this
people who can carry the
added responsibility successfully.
In a speech last May before the
few
rotating its execu¬
tives to expand their experiences
.
1909
consider
must
sonnel.
-
1919
there
because
hand."
ests, too—the interest of the local
year
CHART H\
FIFTY
top
to the business at
measure
full
his
contributes
individual
is better
words, the structure of
industry is peculiarly complex.
uate
popu¬
lation of this country works for
Engineering, Newark, N. J.
the
pay
his direction to the end that each
your
,
industry
Standard Oil
The Function
before
customer
Frank W.
yours.
'An
the
Inefficient. So, we can enlarge our
definition
to
say
that it is the
explorer, and certainly not
economist.
make
can
at
The
of
,
In other
con¬
wants to pay. We are not operat¬
stimulated
responsibility.
you
good
man
co^olex
the
in a free society also has
definite ideas of what kind
of goods he wants at the prices he
examination of the facts. I do not
come
that
very
to
can
add
can
sumer
Development Conference Series. I
am
we
weight
the
increasing
up
are
move
you
described the attributes of
executive.
He said that
"His most important function is to
reconcile, to coordinate, to com¬
promise and to appraise the vari¬
ous viewpoints and
talents under
a
simple, I
truth, of
ladder,
Greenewelt, President of du
Pont,
theless.
a
College
as
management
holding the trunk has
impression than the
blind man holding the tail, or the
one patting the elephant's leg, or
the one feeling the tusk, or the
one holding his ear. But these are
all parts of the elephant, never¬
that the customer wants things at
believe
of Engineering is very wise in en¬
have
we
story
that
is
course,
very
The
you.
different
the customerit is
—
that
me
old
of the blind
describing the elephant. The
We
of
of the qualifications.
some
things
industry in
industry
of
can
doesn't
function
this country?"
"How
our
is that industry must produce
one
is
we
so easy as
The
v
"W hat
the
sider
ques¬
tions:
I
nearly
should
to
try
as
As
President
ration
to
to
this is too simple a
Executive
Vice-
conclude that
was
I
came
referred
think
I
But
I
the
relatively
Thursday, May 6, 1954
we
living.
Clearly it is a function
dustry to produce things.
me.
more
fact, day
to
seems
blind
a
standard of
appalled
But the
as
the
man
in this country
consumers
—
what is
subject frank¬
ly
matter of
a
assure
It
by day it produces the vast and
expanding
heap
of
goods
and
industry—
talking about
we are
assume
services. As
was
can
here
leading corporations.
asked to talk to you
was
man
point of view, its function is to
produce the right goods at the
right price—but recognizing all of
this, industry's function above all
else, is to provide employment. r
as:
(1) the function of industry; (2) its performance; and (3)
the circumstances that
owner's
the
a
discusses such questions
Prominent industrial executive
From
point of view, it is the function of
corporation to produce goods at
a profit—and from the customer's
Corporation
Worthington
it.
for
work
By EDWIN J. SCHWANHAUSSER*
ford
everybody.
He must cope with
and successfully conciliate many
diverse interests.
Getting along
with a drill press and one fore¬
...
for
people
"boss."
great -numbers
when
And
the president of
as
you
has
of
become
been
said,
large company
today is responsible to just about
a
1929
I 918
301
Number 5322
Volume 179
"an orderly arrangement of known
factors,
it is done in a changing
world—a
is
set
society
its
the
to drop
ness
notice and turn
if it is
and
as¬
willing¬
at a moment's
old
something
to
new
change
sail
thing
one
chart
to
while
course
a
One
tied
to
the
of
studies
big companies are conr
overtaken by com¬
"No company," the re¬
petition.
society—of profit¬
ability lor tne investor—of low
costs for the consumer—of good
our
Some
behind
because
tions
whicn
under
American
in¬
the outset of this talk.
R.
Ernest
said in
which
ment
he
innovation
Competitive
leased
"America's
more fortunate
is different.
than oth¬
.
The
.
first
industrial
tem," he said, "is
sys¬
willingness—
willingness,
it is eagerness—to judge the fu¬
ture, prepare for change, and take
is
than
more
risks.
.
.
knowledge
countries
lack of
has
who
industries
of
many
competition is often
one
laid
curses
any
in other
in
that
knows
heaviest
the
a
mere
Anyone
.
a
of
upon
factual
The
the
most
we
live in
to
is
profit
a
profit and loss
and
that
we
do
we
not
but in
economy
world
secure
of
one
observations
a
We must
economy.
recognize that
a
that
me
important
make
can
Risk
Element of
seem
do not live in
but in
dynamic
a
changing world—and it is this
fact,
than any other, that
economically healthy,
more
rhakes
us
there
I want to emphasize the
of risk because many
believe
when
not
This
people
there
that
element
is
seem
no
very
in business—especially
great risk
business
a
leads
to
Big.
assumption that
an
are
industries,
I
discloses
members
the years
gets
which,
in
-"A Creed for Free
his
in
Randall
book
Enterprise" be¬
lieves
you*should
better
get
be — you had
of the avail¬
of their findings.
column,
will
you
will
you
white
by
47%
in
This
dots.
the
of
tions
-
as
What
Is
There has
talk
many
you
Big Business?
the
over
a
regarding
years
that
you
in the first place,
costs
can
the
are
spread
related costs
over
achieved
fixed
your
the largest
number of items.
This
theory of mass pro¬
possible
is
unit
low
when
and
had
1909
year
been
and overtaken 47% of the leaders.
the
In
third
column,
black
the
represent still other cor¬
squares
porations which have climbed to
the top competitively in the next
10
that the list of the
corporations in the
year
1929 included only 40% of
the corporations that occupied the
years,
so
largest
Meanwhile,
top positions in 1909.
of the newcomers in the 1919
some
list
also
have
replaced and
been
it is
interesting to see that three
corporations from the 1909 lead¬
climbed
have
ers
of
sition
back into
leadership,
po¬
a
evidenced
as
by the black dots at the top of the
fact
basic
demands—expansion.
But
expansion leads to many advan¬
tages to the customer, sometimes
to the shareholder, often to
the
undoubtedly
employee,
to
the
government.
I
think
undercurrent of
questioning on this subject has its
roots in the European cartel ap¬
the
.
American
presses
j
industry—which is not
proach to
fear
a
approach.
that
will be eliminated by
that
tion
the
elimination
means
It
ex-
medium-sized
cor¬
unincorporated
porations
and
businesses
contributed
a
rising
stifles competition,
or
a
find
with
still
more
or
Some
stifle
positions—and in 1948,
year
studied, the 100
corporations
have sub¬
stantially changed again, includ¬
ing only 36'% of the original 100
back to top
last
the
largest
To
a
most interesting
illuminating chart.
feeling
experience with
1840,
itor
of
fore
after
and
historic
their
in
100
largest
the
all
assets
companies.
their total assets
came
of
In
to $8.2
little
assets
the
of
more
the
and
drive
drills
or
built
were
These bare statistics fail to
portance, however. Du Pont, Gen¬
all
were
and
both
on
did
Co.
(New
% of
sented
at
the
on
so
lists
and
is
not the
capi¬
the people,
using
capitalists.
Capital
has
become,
society, but
not the master of this
its
servant."
"Fortune"
in
sors
pump
reward.
.
.
The
.
devices
apparatus of protec¬
by
nothing
least $5,000 of assets
ties, and that nearly
10
has
net
over
one
of
assets
not
1909
now
a
to
seems
that
me
its
have
we
now.,been able to answer the sec¬
ond and third questions we asked
ourselves at the
beginning of these
Y-''
remarks:
How
does industry
function?
best
and
conditions
what
Under
perform its
can
it
perform that function?
We have
concluded
indus¬
that
try performs its function through
the instrumentality of an increas¬
ingly
capable
of managers—a
and trained corps
professional corps
fields
of
Texas
and
States.
other
reserves
of
sections
Y\
'
v
i'
the
:
'
manufactures
of water meters.
In air
thousands
of all
the
cost
families"
for
has
income
included such things as ra¬
electric
items
machines,
sewing
automobiles
over
and
vacuum
and
above
food,
like
life
of
—-
refrigerators,
cleaners,
;
company
levels
into
in an important way.
index—compiled for "mod¬
electric
United
Y
enter
dios,
the
to
index
the
that
other
necessities
clothing
The Russians
The
index
for
was
of Labor Statistics
some
not
time
that
sufficiently
this
sell
or a
The offering is made
NEW
in these words:
Commissar
"The
furnaces,
rolling,
all
coke
open
of
mining,
hearths, blooming,
Continued
on
solicitation of an offer to buy these securities.
only by the Prospectus.
/
Wisconsin Electric Power Company
Mortgage Bonds, 3'/a% Series due 1984
Due May 1, 1984
May 1, 1954
102.461% AND ACCRUED INTEREST
Copies of the Prospectus may be obtained in any Slate
undersigned and others as may
Kuhn, Loeb & Co.
*
only from such of the
lawfully offer these securities in such State.
May 5, 1954.
American Securities Corporation
*
for
blast
merchant mills, and
by-product plants in the
i
OFFERING PRICE
all
and
$20,000,000
Dated
Ferrous
responsible
was
iron-ore
ISSUE
First
dicta¬
is stultifying too.
"For¬
tune," a few years ago, described
the
administrative
structure
of
the Soviet coke-chemical industry
com¬
plete, that it failed to include cer¬
This advertisement is not an offer to
beginning
torship
most
Bureau
felt
are
that Communist
realize
to
andi Metallurgy
shelter.
has
incompetent managers. So¬
is bad for the saipe rea¬
cialism
list, remained
surpassed by the
or
was:
just a capitalistic sys¬
capitalistic people."
It is
It
at
family in
$25,000
"Fortune's" conclusion
tem.
10
liabili¬
more.
is
on
so
years
natural gas from the
Louisiana, Oklahoma,
by revolutionizing
Standard Oil
its industry but
went
show that four out of every
American
families
possesses
in¬
companies as well as by the
companies on the 1948
Transportation
equipment
10 other oil
list.?
it
are
but the people who are using the
Westinchouse
bigness and
of competi¬
sister
colleagues
erate
a
combined total of its own former
were
perfectly evident from the
who
Jersey),
which
had
the oil assets repre¬
the
top
re¬
living
This
million horsepower
of Worthington gas air compres¬
ington. Over
their product lines.
over.
talists
relative importance
their
creased
"It is
above list that
em¬
phasize certain basic facts of im¬
Electric
the list, made this in¬
teresting comment:
son.
of
air
with
of
articles
made by Worth¬
pavers
1909, was
try.
ca¬
analyzing
duces
Equipment,
ranked fourth in
no
magazine after
largest cor¬
approximately
tied
for
second
place with Iron and Steel in 1948.
Notice the gains in the Chemical
industry, the Electrical Equipment
industry, the Distribution indus¬
eral
.
a
is deprived
own
inspired
posed
percentage—almost 30%.
Transportation
"Fortune"
than 30%
porations and ranked first in this
regard.
In 1948, it was the petro¬
leum industry which had the larg¬
est
remarked,' "What,
viar?"
public,
Tribune"
1909,
bil¬
total assets were
As you see, Iron and
a
"Herald
the
in 1948,
lion and
whole
is
made
was
York
using not only its native abilities
gagement.
In
fact,
there
is much as by the desire to prevent but
well-organized knowledge.
scarcely an American built ship the bankruptcy of the inefficient
It seems to me that the condi¬
on
the
high seas that is not —even if thereby the progress of tions
under which it can best per¬
equipped with some Worthington the efficient is itself impeded."
form its function are also clear.
You will note that the London
product.
'
:
Managements must be free to use
considers
that
the
Over
the
years,
Worthington "Economist"
their
energy,
judgment,
enter¬
function of the industrialist is to
Corp. has grown and diversified
prise, imagination to the maxi¬
until today it touches the lives of discover ways of making beltter mum.
Undue constraints by gov¬
We m'ight
l'ar more people than most of you things more cheaply.
ernment, by organized labor, by
search for a long time to find a
probably know.
Water works in¬
local communities, by sharehold¬
stallations
in hundreds of cities better or a simpler definition of ers—and note I
say "undue" con¬
and
large irrigation projects in industry's function.
straints—diminish the capacity of
The U. S. Bureau of Labor Sta¬
California,
Colorado
and
other
industry to deliver for the na¬
states,
use
Worthington
pumps tistics, as you know, maintains a tional good.
Cartelism is bad be¬
Consumer's Price Index.
Since it
and engines.
Giant sewage dis¬
cause
it
limits
the
abilities
of
is designed to show changes in the
posal stations in Los Angeles, New
management and in the end pro¬
current cost of living, it is com¬
York and other communities de¬
idly to a point where we now
anticipate that our air condition¬
of
his
by
social
any
tion
en¬
changing shares of various indus¬
tries, judged by their assets, in
total
and
—the
Conditioning, it is expanding rap¬
the
earth to do)
on
fixing and profit-sharing
afloat be¬
Merrimac
the
.
discovers
growth of trade associations, price
kept both the Mon¬
pumps
and
who
a better product
(which is what he
cheaply
turn
the famous Erie Canal. Worth¬
ington
London
observed,
by the State of all pecuniary
Chart II shows the
assets
good things industry does.'
year
age
con¬
"It
of making
is sent
the
In
years.
on
almost
in
the
ago,
years
way
for
39
millions of dollars
industrialist
more
the
our
.
out
the
of,
I think it may be fair to
The
of my
corporation
and
with which I have been identified
The
study this question
can
another way.
speak of change with some
personal
character
speaking
of England: "There is a conspiraacy of labor, capital and the State
to deny enterprise its reward.
.
can
industrial
,
this is
me
mover
lotions,
to
"Economist"
prime
a
the
changes in the
ployed by companies
every industrial field.
you
scrambling
leaders
few
a
that they are
in change.
Y
proves
at
New
wryly
the
that research today is the most
powerful competitive weapon em¬
that Big Companies
status quo and
of
many
say
Big Business profits are un¬
hold fast to
on
and
research.
Reviewing those three charts, I
little support for the charge
at
radical
We spend
see
I
been
sign, size
products.
share.
that
When the list
history but there
our
They include
electric toasters,,
baby foods,
canned
hospitalization
group
the
same
number and diversity of our prod¬
ucts and in the number and de¬
dropped—from 2.4 to 2.0.
Meanwhile,
pend on Worthington equipment.
Many of the highways on which
competition
the end of many of the
have
Other large corporations
income.
the
manufactured
we
beginning of
national
the
newcomers—
that six years
so
but they
the
things
contin¬
later, in 1953,
The process
1929 column.
ued
duction and it often encourages—
in
of
had
today
added.
tracts!
frequently had
replace the bowl. Actually, we
manufacture
are
materially to
living.
These
permanent-wave
and
stem and he
new
to
in
rect-acting steam pump for boats
competition had stepped in
years,
which
-
It is obvious,
3.3%
was
a
3.7%
that
displaced from their positions of
leadership by 1919.
In only 10
of
great deal of
something often called Big Busi¬
ness.
In my judgment, this whole
question is shot through with mis¬
conception.
figure
rela¬
tor
had
15
which
items
of
sets,
foods,
home
plants
pipe for a great many years ex¬
cept that he continually had to get
Busi¬
income
who
man
been
frozen
Alabama.
foreign countries.
the
the
television
You may remember the story of
corresponding
the
Decatur,
additional
have
solely for the
air, conditioning
oi
in
just
Worthington today has 15 plants
The 100 largest
national
1948
plant
new
in the United States and 12
corpora¬
$49 billion.
possibly can.
been
by
1929;
a
have
in
accounted
total
We
operations.
equipment
and
Co.
can see that Big
have declined
1929.
since
the
also
built
of 23, Henry Rossiter
Worthington invented the first di¬
means
largest
100
the
that
see
Steel had
as
able facts
of
see
4/% of
the black dots have been replaced
umn,
You
thoughtful
be
of top management in
ahead and "articulate"—
Clarance
as
of
avail¬
ing the 100 largest corporations in
the year 1909.
In the next col¬
fact, it cannot guarantee.
to
kind
a
black circular dots represent¬
100
and
things
are
of
profits
corporations
that
number
have
some
In the first
teeing"
you
close
a
notion
certain
a
starters:
If
took
the
at
re¬
was
Here you
reasonable
industry has a security which it
share generously — "guaran¬
Y
j
ness
tively
cost
our
manufacture
is tne story of profits of busi¬
by size.
that Bigness
can
many
It
1953.
look
we
wealthy and strong.
to
you
ness
enough
affect
or
will interest
that
chart
large corporations which, by rea¬
son
of their size and position in
100
them."
It does
in
Society,"
third
A
important
largest single division
Co.
Baldwin Locomotive
ord
and most significant characteristic
it
called
Locomotive
American
tain
become the
Foundry,
and
terprises of smaller stature. Chart
ductive,
.
Y
five year
"Big Business in a
omnipresent."
and
American, Car
Manage¬
on
called
American
comiuu-
is
ing and refrigeration business will
change. rOn the contrary, the rec¬
...
It
-entry
the
of
a
able to companies or business en¬
—is unique.
It is not simply
richer, more successful, more pro¬
the
ana
actually
was
dominance and security not
Weapon"—
"The simple truth is that our
economy—our American economy
ers.
sit
enjoy high mar¬
11.9%
to
differ¬
ent industry in 1948.
The leaders
in that year were General Motors,
Ford
and
Chrysler
instead
of
The report covering a
Secret
of
a
methods.
7.8%
total, but it
Executive
speech
a
had
or
older
from
rose
Motor Co.
Breech,
Vice-President of Ford
once
feet
in
(1995)
their
operates and what makes
it tick, the third question I posed
dustry
at
a
The threat of competition,
gins.
study,
things—but I would like also to
urge you to recognize the condi¬
its
interest
back for long and
ity—and
managers
of
In few markets can a company
ous
trained, professional
to accomplish these
have fallen
management
giants
dragged
vested
it
tnat
Dig
so
tne pressure for inno¬
vation.
jobs for the employees—of indus¬
trial strength for national secur¬
of
"is
say,
ignore
that
of
the
oy
being
searchers
whole
prepared
was
and
stantiy
can
you.
expanding
Institution.
It made
quite citar the fact that Big Busi¬
ness
is rar from secure
against
a
Y. I want to urge on you the vital
importance of production for the
of
Brookings
other
buoy in the harbor. It is an¬
thing to do it in tne open
sea, with wind and fog and nail
and rain and high seas all around
interesting
most
made
ever
enterprise
risKs
better.
is
It
cmei
wnose
flexibility—its
Chronicle
The Commercial and Financial
...
page
36
•36
(1996)
The Commercial and Financial Chronicle...
I
|
Thursday, May 6, 1954
money
market conditions, it
mal" of 1.5%.
2s
2 Vis
ber
most
Our
Reporter
on
Governments
It
-
end
the
as
of the list.
Institutions that
are
Stimulating the Economy
The
ments
needed
was
the
of
from
mand
those
ceries.
The
whose
needs
not
are
best
served
that
ers
economy
sales ($470 per share) and re¬
membering that efficient grocery
Continued from page
The
very favorable reception which was given to the fournine-months' note, was not unexpected since the money
market had been built up to take care of just such an
offering.
Even though the money market is easy and in a position to well
strong
as
far
very
new
financing of the Treasury, the feeling is as
change in reserve requirements is not
money
that
ever
2
chains
profit
The
Security I Like Best
and
sales.
President
New Note Issue Well Received
The announcement
would
money
by the Treasury that $2,000,000,000 of
be raised
finance the deficit
to
in
was
line
new
with
expectations.
However, the offering of a four-year nine-months'
1%% note as the medium through which the new money would
be obtained was not expected
by the financial district as a whole.
Nonetheless, the reception which the new note received attests to
its
attractiveness.
To
be
there
skepticism about
the new obligation when the terms were first made public, but this
faded away rather rapidly because the
easy money policy makes
the new issue fit right into the market pattern very nicely.
,
The
1 % %
order for the
sure,
which
note
commercial
was
the^new obligation these institutions will be creating
which
purchasing
are
There
power.
is
definite
a
deposits,
new
downtrend
in
commercial
and instalment loans and this
extinguishes deposits,
deflationary in character. The new deposits which will
brought into being bv the cash borrowings of the Treasury
will
in
some
about through
come
offset
measure
the
decline
in
deposits
which
has
the) repayment of loans.
eral
authorities.
has
The monetary policy as administered
by Fed¬
directed mainly at helping the economic
been
picture.
This has resulted in easy
money conditions with the view in mind
of stimulating investments in
mortgages and other obligations so
that the trend of business might be reversed.
To be
borrow¬
ings by the Treasury have also been a very important part of the
program which Federal has been carrying out.
sure,
Accordingly, the
<
easy
money
pattern
has not been unfavorable, either as far
'Treasury has been able to borrow new
-and
redeemable
issues.
It
was
'
months obligation and
c
1V&%
i
as
of the
that
powers
the rates at which
money or refund
only about
Treasury had to pay 2% % for one-vear
cient borrowings are being done at
1%%
-
-
a
year
the
the
money, whereas the pres¬
for a four-year and nine-
.;
; are
owners
at
U.
mately
a
it
will
ago..
th-re
will
IV
one-year
as
or
on
June
the
1
1 Vs %
was put out approxi¬
It is believed that the Feb. 15, 1959 note will
be taken by most of the
far
note
be
owners
instances
in
of the June 1
which
certificate, although
liquidity will dictate
that
the
obligation will be taken in the exchange offer.* As
the June 2s and the two issues of
2y4s
is the option of taking the V/s% certificate
are
or
Gypsum
concerned, there
cash. Under present
in
took
option
an
Pabco
when
is not an
offering of these Bonds for sale, or an offer to buy, or a solicitation
of
any of suckBonds. 1 he offering is made
only by the Prospectus.
And
offer to buy,
(7)
each
selling
in
payment
the
of
and
Loblaw, Inc.
Due May 1. 1984
climbing
as
the
$3.25
Copies of the Prospectus may be obtained from
any of the several under¬
only in states in which such underwriters are
writers
securities and in which the Prospectus
may
outlook
for
share level.
The
out
by
stable
building activity in Pabco's area
outstandingly bright. The West¬
the
qualified to act as
legally be distributed.
BIyth & Co., Inc.
Ira
Haupt & Co.
(incorpoiated)
E. F. Hutton & Company
Elworthy & Co.
Crow ell, Weedon & Co.
May 6. 1054.
'
record
and
power
its
tremendous
has
shown
improvement
the
at
assets
end
were
liabilities.
times
over
don
the
excellent
current
alone
was
liabilities,
a
its
of
Its
in
income
shareholders.
is
su¬
management
$4.46 in 1949.
growth
traordinarily
the
Certainly, Pabco
to
rapid.
been
The
ex¬
W.
of
Board
in
Boston
be
as
a
since
resident
&
Frost,
Tucker,
Anthony
Of the 35 members of the
Board
representing the securities
industry from 19 leading cities, 31
are expected to attend.
On
/
the
evening of May 12 the
join with the New
will
Board
England Group of the Investment
Bankers Association at a dinner
at the
in
r
Somerset Hotel being held
with their spring
conjunction
meeting.
'
Renshaw Now Partner
In Rodman & Linn
i
111.
CHICAGO,
Charles
has
will
the
met
partner
May
1
became
a
On
—
Renshaw
C.
in
Linn,
&
Rodman
203
com¬
South La Salle Street, members of
pany's year-by-year sales figures
since 1946
(in millions) are as
Its
with
from $3.37 per share
rose
1948
Loblaw's
the: well-
popular
are
an
2.7
very
This
14.
time
has
ments.
show increased
the
in
Co., is President of the Associa¬
tion and is supervising arrange¬
What
to
Hotel
Somerset
May
on
partner
the
country,
seven
posted
higher net in 1949 (the latest "off
year") than in 1948.
Loblaw's r
in
believes
able
of
con¬
1948.
in
current
ratio.
Pabco
perior.
1953,
10 times
Cash
current
being
of
over
months
the
first
group
of
neighborhood grocer and
go
bargain-hunting in a super¬
market when the pay check gets
skimpier. Of eight leading chains
remarkable
at
clude
earnings and sales reflecting the
tendency of housewives to aban¬
value
past
often
are
re¬
holdings will
handsomely.
Financial
position
and
to have
long-term up¬
Fibreboard
off
pay
seems
the
Pabco's
grow.
decided
and
the
of
and
grow
will
spring meeting. Sessions will con¬
dividends of
and
Association
the
this city on May 12 for its annual
is perhaps
commonly known : is that in
periods of recession, food chains
ern
United States is going to grow
of
Exchange Firms
vene
less
the New York and Midwest Stock
follows:
appears
$78.8,
outstanding "Grow-With-
$31.7,
$46.3, $62.7, $71.9,
$111.7, $134.3
and
(million) last year.
$93.7,
around
stock.
B.
LAREN
war
$165
New
York
Stock
if
the
Exchange
Francis I. duPont & Co.
William R. Staats & Co.
Sills, Fairman & Harris
Incorpoiated
Pacific Northwest Company
100,
year
Exchanges.
formerly a
Renshaw
was
in Mitchell,
Mr.
partner
Hutchins & Co.
Possibilities
fraternity
noticing
it,
Loblaw,
Inc., a grocery chain, has grown
exhausted.
of
sales
in
the
by Loblaw, Inc.
S. retail
are
The
for
by
expan¬
serviced
area
New
Henry R. Bracken II
With J. R. Williston Co.
(Special
no
means
York
State
to Thf.
Financial
MTAMI BEACH,
recognized
in the food chain
company
business.
financial
of the major U.
to
last
330 for Food Fair—the
sion
one
index
equivalent to 358. This com¬
pares to an index level of about
growth
without
equal
as
—
sales
was
Loblaw, Inc.
As
year
Loblaw's
Shearson, Hanmiill & Co.,
New York City
Chronicle)
Fla.—Henry R.
associated
Bracken II has become
with
J.
R.
Williston
Seventy-first Street,
was
and
i.
&
Co., 631
Mr. Bracken
formerly with Barham & Co.
Thomson
in
McKinnon
&
Florida. Prior thereto he
was
with
super-highway system is likely to
give a considerable business
Westheimer
week,
Loblaw,
Inc.
stimulus
Lynch, Pierce, Fenner & Beane in
is expected to
St. Lawrence Seaway.
o
ations.
p e r
publish
v -
—^
to
the
area,
its
Loblaw
tive
showing
modern
of
has
position.
in
are
strong
a
The
the
equipped with parking
million,
more
conveniences.
than
five¬
amount
.
service
meat
to
counters
Sales
about
and
store
per
$1.2
self-
other
million
fold
increase
which
over
the
and
Merrill
,
Joins A. B.
Hogan, Inc.
are
•
(Special to The Financial Chronicle)
and
space,
Co.
&
Columbus, Ohio.
competi¬
stores
appearance
$165
a
as
developments associated with the
re¬
sales
Dean Witter & Co.
Central Republic Company
Courts & Co.
Stock
observation is borne
grocery
around
Moseley & Co.
incorporated
Governors
Over-the-
long-term
earnings
chains.
is
port
Alex. Brown & Sons
be
ease
In good times
bad, people must eat. This
in
common sense
long-term
fiscal 1953
A. G. Becker & Co.
Meet in Boston
Loblaw's business is highly de¬
per
equal
can
here.
common
BOSTON, Mass.—The Board of
pression-resistant.
earnings,
For
defensive
of
that
equity
Horace
Pabco's full share of Fibreboard's
mar¬
Exch. Firms Govs, to
tion:
Sometime
Incorporated
the
above the $2 per share mark and
"consolidated" net, including
above
other
no
Market, is in my opinion
selling at bargain price. The fol¬
lowing facts support this conten¬
next
F. S.
in
current
well as vigorous ap¬
potential, I know of
Loblaw, Inc.
currently
common,
40-41
its
as
preciation
Counter
Earning power could expand
substantially in future years, with
possfbly
the
pave
into
(3%%)
'
Harriman Ripley & Co.
may
better
becomes
double
strength,
last
should
an
150,000 shares floating
combination
a
working capital
way-for a higher
quoted
net
stock
at
even
on
annually.
Members
Mortgage Bonds, Series A, due 1984
J. Barth & Co.
This
would
ket evaluation of $6 million.
dividend pay-out.
Company
Price 101.93% and accrued interest
^
debentures)
pressure
probable as time goes on.
Over the past 15
years, dividends
have averaged 77 cents per share
reported
the
tight
form
the
lieved
KUNO
of California
in
of
growth,
logical to apply
Taking 1946 sales—the first post¬
Southern Counties Gas
dealers
30%
about
allowance
supply of the small common capi¬
talization
may
offer a bargain
chain in Can¬
than
undertaken.
in¬
is be¬
payout
less
sales
known the
Loblaw, Inc. is currently on
$1.25 dividend basis, a pay-out
of
an
is
now,
With
appear
considering the
company's rapid growth and some
long-term financing (possibly in
was
material
a
dividend
As
in
com¬
latter, 199,627 shares
by Loblaw Groceterias,
somewhat
has paid dividends
for at least 31 straight
Last
of
earnings.
A look at the
Feb. 28, 1953, balance sheet in¬
dicates that working capital ($4.5
million), although adequate for
Loblaw's
predominantly cashand-carry type of business, was
Pabco
year
million
Of the
held
ratio
Pabco Will Grow With the
West:
Buf¬
year's
President.
was
of
of
as
further
not
Loblaw's
conditions.
base,
earnings multiple of 15 to a busi¬
ness that shows the ability to ex¬
pand 20% a year as has Loblaw?
capitaliza¬
shares
351,492
a
he
50,000 shares
$17 a share
Pabco
radius
that
future
at
100-mile
a
J.)
ada.
market.
open
$15,000,000
.
N.
the largest grocery
firm
a
about 14.
He bought several
thousand additional shares in the
the-West"
Dated May 1, 1954
Pa.,
greater.
be¬
even
named
was
time,
public.
an
Y„
The
mon.
are
at
to be
First
with
are
on
stock
he
that
At
now
fine team.
a
Pabco's
products
"Ihts
about
companies.
Keady is such
liever
of
It's
make Pabco
Mr.
trend
certificates which mature
exchange for the issue which
year
S.
Pabco too.
earning
given the option of taking either the 1%%
certificate in
;
of the 2%%
(N.
and
sumed
T"Hobson's Choice" for Some
S.
of the
within
part
debt
of
Several of his former team-mates
matured
when
ago
be
for the one-year issue which is also
being used for refunding purposes.
The
for
northeastern
company's
consists
of
$2.8
builder
year's
only 25 cents but
The fact that the Treasury used an intermediate-term
obliga¬
to raise new money appears to be further
evidence of the
close cooperation which has been
going on with the Federal Re¬
U.
Paper,
the
tion
crease
tion
serve
Marathon '
in
was
falo.
years.
Treasury and Reserve Working Together
he
Corp. for two years before join¬
ing Pabco. He's a top-notch ex¬
which is
be
at
Then
ecutive—a
some
matures on Feb. 15, 1959 is made to
banks, and in making commitments in
tax
$7 per share.
it
turing
net 1.5% of sales under
can
normal
some
away.
share
of
year
absorb the
year
per
uary
should help future profits
considerably. At the current level
have stepped up their commitments
Government obligations.
in the higher coupon
last
and the demise of that tax in Jan¬
medium-term issue,
new
alone
payments
in the order of $1
were
offering of the Treasury. It seems as though the pow¬
be are doing something about trying to stimulate the
through monetary measures.
.
earnings have
since 1951, by
and
heavy taxes.
controls
EPT
by
the present
not too greatly interested in
•'
..
.
company's
held down,
OPS
revenue
investors
a num¬
stores,
been
This means that mortgages, corporate,
obligations should find a better de¬
economy.
state, municipal and
market.
In addition
Loblaw's
of
possibly
as
many as 30% of them, are in
small towns where competition is
limited to family-type, small gro¬
Treasury by tailoring the new money issue as well as
the refunding obligations to the needs of the commercial banks is
leaving to non-bank investors the financing of the other seg¬
though the financing operation by the Treasury
to clear the atmosphere around the Gov¬
Prices pulled out of the rut which they had
been in even though the new note issue is getting most of the
attention.
There is, however, a good demand in the market for
•the outstanding obligations, especially those in the more distant
seems
what
was
have
<
«
-
-
*
By JOHN T. CHIPPENDALE, JK.
ernment
seems as though the owners of the
only "Hobson's Choice," since cash is not the
desirable thing to have at this stage of the game.
and
LOS ANGELES, Calif.—Albert
Zugsmith has joined the staff of
Arthur
B.
Hogan,
Inc.,
10575
Drive, members of the
Angeles Stock Exchange.
Wyton
Los
$800,000 average of leading chains.
million
up
and
$1.7
or
1945,
net
per
Loblaw,
.of some
favorably to the
With Hill Richards
Kuno B. Laren
of
significant
million
$4.75
compares
Sales of high-markup non-grocery
items (drugs, cosmetics, etc.) are
rung
in
a
$32
the
share.
Inc.
operates
a
chain
140 supermarkets located
fact
and
that
partly
Loblaw
(Special to Tile Financial Chronicle)
explain
LOS
averaged
J.
ANGELES, Calif.—Ernest
Markham
1.8% net of sales after taxes 1946-
Richards &
50
Street.
as
against
an
industry
"nor¬
-
is
now
with
Hill
Co., 621 South Spring
•
i
■
-
Volume 179
v
Number 5322. V. The Commercial and'Financial Chronicle
•
if
By WALLACE
The
aircrafts
•
a vo r
took
backing and filling
was
23,000
place in the stock market place
this week but it
development
was
a
fear
General
was
than second-
The
Motors.
that if the company
recent could master
after
one
more
regu-
lar payment it would cost the
rather than shorts dearly. - Incidentally,
strength. The fact that
solidating phase,
logical
more
of
Some Newly Arrived Elements
.
to Stock Market
~
fair
STREETE
a con¬
The earnings
progress.
for
statement
A lot of
out
were
somewhat
although
Northrop
a "speeial.situar
tion" was able to niafe-some.-:
THE MARKET... AND YOU
IT
(1997)
the
<
current r
Peri°d
fef|ctfd tou be
ov®rly cheerful. But a sharp
uPtu™ 15 expected subse-
By BRADBURY K. THURLOW
Talmage & Co., Members of the New York Stock
•
,
I
1
Exchange
Market analyst, commenting on the unevenness in market fluetuations of individual
stocks, foresees likelihood of recovery
in issues which have shown the
anticipated-loss of
^
new plane goes
production, so the buying
was rather anticipatory,
?u
but which
now
earnings,
be stabilized.. Says most important;
involvementiiit-Southeast Afia, and war|>*
*
j,
appear to
risk stems, from
that
J"
our
churning^ active markets,- such
as we have had recently,"
action by the inde*
*
*
are often a forerunner of
change.
awakening by the rails was pendent auta m a k er s fur-:
C o ca-C o 1 a International,
At a time when recent
considered a favorable omen; Irishes a leading'example that the highest priced stock that
gyra- in order for, such an economic;
tions in stock prices following a
change as might take place.
V
the neaivreeonfrhiglr standing appears in organized trading,::
.v
*
*
sis
of the industrial average straggled: to one of its few !hpgaf+in?,vfr?
a!^ drawn »-phis seems like a particularly*
The long-depressed rails
nip
doesn't begin to tell the full annual appearances at $965 p e ^ttentjon °f thoughtful peo- attractive supposition when one
t0
e ie"
considers that the transition to a >
needed'- little in the way of
ments of risk
which, since, the issue is con- in the
,! war
stimulated economy, would
correction after finally break¬ story.
overall
*
*
*
merely serve to emphasize trends w
vertible into eight shares of
picture, it
ing through to a new high for
% which > appear
to be already in
this year. Consequently they Blue Chip Prof it-Taking Mild:
operation: namely, to increase the
Pu^. a little seems like a
weight, on the junior : issues good.; idea to n
attractiveness of some of the
outperformed the industrials
analyze some
The quality issues that have- which-was
:j> ".cyclical" issues which received
selling a > dozen, of these elerather steadily which is a tale done all the work in
L'
the bluej such heavy liquidation last f alb
p0ints abovei; the equivalent mentsv i They
that *hasn't been possible in
There is, however, a negative as*
chip bull market
of this vaiue. The International issue are: not quite
well over a year. The carriers
pect to the threat of Southeast
year not only were entitled, -s another instance where its the same as
Asia which is not present if thai
still have a long way to
seemed determined
go but
to
they wer
threat is ignored; namely, a subprjce belies the story the eight months,®
before besting the near-iden¬ rest for a bit.
stantial lessening of the invest-:
Profit-taking in
averages
tell. The issue ago.
'<*
tical tops of 112.21 of 1953 such
r ipent appeal of those "non-cycli¬
as
First of all, *
du_ Pont, General reacbed its all-time high at
cal, growth" issues which have
and
112.53 of
1952
before Electric and
wi d espread
Douglas Air was $1332 in 1948 and las8t
dominated the rise since Septem¬
ap_
their comparison, like that of mild and the
predictions of
B. K. Thurlow
ber.
group did little
peared above the thousand- impend ing
the
industrials, will reach decislve*
Churning, active markets such
dollar line in 1950. From economic disaster have been reback
to
the
wild
reeentlv
o(ten
*
days of
there it dropped a couple of placed by a growing confidence f?
f nave "aa recently are often
1929-30.
that
the
old-fashioned business
Steels, too, were inclined hundred points making its
£ 3
*
*
*
cycle has lost much of its force
^ 1S a 8°°d time to see
to coast although some in the
postwar low in 1951. Earlier and that activity in most busiY6
onfs investments are
What finally spurred the
group, notably Sharon Steel, this year it worked back to nesses has, in any event, reached Pr?te,ct^ against all possibilities,
rails into confirming action is
were handled a bit
something approximating a hot- —including those suggested every
roughly on $976.
still pretty nebulous, so the
torn. In the stock market this feel- day ln the headlines of all our
poor
first quarter earnings
*
*
*
ing has shown itself in the most newspapers.
For some peculiar
general feeling is that the statements. Sharon
gave up a
traditional manner: a sharp im- reason ,no one seems to take them
poor first quarter results are handful of
provement in the price of those seriously*
points in a couple
Notes of Caution
now
stocks which nobody expected to
history and seasonal im¬ of sessions to
u
.
post its poorest
i General
Street sentiment be
hurt when, as and if a decline
R MaCdOliald Named
provement is bound to build
price since the 50% stock continues to lean to the bull- in business took place.
11
■««■■■««
up more favorable compari¬
payment of 1950. Wheeling ish side by roughly twoIt now seems logical to look for
Tft Head BOfld Clllfa
sons from here on out. It is a
Steel also wiped out all of the thirds. There is a bit of dis- a recovery in,some of those issues
somewhat selective show of
Ranald H. Macdonald of Domiprogress
made in the last appointment that the rails which dropped sharply in anticipation of hard times, but whose nick & Dominick has been nomistrength, the Eastern roads four
years.
<
confirmed the "bull" market business has
proved more stable nated for President of The Bond
sharing little in the new up¬
*
*
*
signal without generating far than expected. And there are Club
New York for the coming
surge, although Atlantic Coast
numerous
signs that such a re- year to sucAmerican Telenhone
con- lyider public interest. And.beLine showed good ability to
covery is underway in groups like ceed Wright
tinned to ignore all worry and cause the industrial standing
the steels and coppers which were Duryeaof
be a sprinter at times.
forge ahead in a restrained
so ?. lofty,vthere is a bit* of sold so heavily (and apparently 9loIe> ^°£^an
but convincing manner. It caution in most of the market hastily) last fall.
& C o . The
election and
posted another new high early opinions. A minority view is
Lastly, one would look for a annual meetCoast Line's Performance
in the week and by forging that all the constant reitera- rise in those issues which have
ing will take
Unique
shown a loss in earning power as
Coast Line, as a matter of through 169 was at the best tion that the market is now anticipated, but which now appear S
H
r 111 h
level since the: 174 of 1947. at i theV highest level "since to
be
stabilized
and
pointing FjelH D
fact, is a somewhat unique
Some of the interest could be 1929? is deterring the general toward recovery rather than
4
G. H
rail in that it is selling today
ascribed to a growing popu- public from "another 1930-32 further decline.
Walker, Jr. of
at a higher price than it
The question which naturally
G. H: Walker
larity with institutional in- bust." A more important facposted at the top of the 1946
follows is whether stocks in the
&
Co.
has
vestors largely because it re- tor
might be that not too first category, which are now in been nomibull swing, which rise was
turns better than 5%. against
man
far more general than the
traders are pocketing many instances selling at all-time nated
for
R. H. Macdonald
y
high prices and providing nominal Vice - Presicurrent uphill climb. Its best only a shade above 3% for
such recent favorites as Dixie Salns because the better than income yields, will continue to dent to succeed Mr. Macdonald.
eight years ago was a bit over
improve as investment interest Joseph Ludin of Dillon, Head &
Cup, Ex-Cell-O, Allied Chem- 20% advance in the last eight shifts to issues in the second and Co. Inc. has been nominated for
80, some 20 points under its
ical, Westinghouse and months has been ultra-selec- third groups. This is the question Secretary and Ernest W. Borkgoing level this week. Santa
that brings us back to the analyHumble Oil as well as the tive.
land, Jr., of Tucker, Anthony &
Fe, by comparison, is some
sis of some of the newly-arrived
Co. for Treasurer,
blue
chips that have been
♦
*
*
20 points under its 1946 best.
elements of risk.
Nominated for new members of
the Board of Governors for threeAlmost completely' lost to
Both
are
far
below
their leading the market uphill.
The most important risks, as we
a
reaction, followed the recent the
poor
.
.
w
mi
,
.
"
-
4
■
i
.
.
,
,
,
■
.
.
n n
,
,,
,
.
,,
.
levels
1929-30
now
1952
in
and
are
*
only
position to test their
highs.
*
sight is the fact that a "bear"
High-Yielding Rails
signal
was
supposed to have
of illustrating the been given last September
railroads'recent sluggishness, which, far from
generating
It was something of a reviv¬
yields of 7% or more include voiume sening because of the
al too—for different reasons those of Santa
Fe, Southern
.
..
i
—-with Chrysler, which has
Rail, Southern Pacific, Kan- on™ implications, lasted
been anything but a favorite sas
City Southern and Louis- onty a dafoeidr^the current
since its 36-point tumble of ville &
Nashville; while 8% upturn began. In short, all the
last year, a trim of roughly or more was offered at recent
traditional yardsticks of stock
*
*
%
By
way
.
a
third in value.
A bit of
a
Northern, market behavior will have to
in advance of
Western1P^of
meeting
surgence,
rush to
short
cover
positions
today's dividend
the long-sick
stock some bright moments
of unusual strength. The
gave
some
for
_
Great
prices
.
,
.
terms are Harold H. Cook,
it, stem from the probability
our
military involvement in
see
of
a
.
.
*
Southeast
Asia
few months.
during
the
next
It may be comfort-
to believe that the conserva-
ing
tive policy is to ignore the threat
since we are all in the same boat
and will be able to revise
vestment policy along
breaks.
such
with
an
believe this
be
will
different.
.
.
be -calibrated if institutional
SelStrt
over
too, could be due to
demand is going to be the
market has had for
institutional interest in
prime force from here on as
Economically
and above
it
a
,
.
not but
nasty habit the
may
some
time of
refusing to accommodate the preconceived ideas of the man in the
the group.
The "dean" of the it has been since last Fall,
street, one must acknowledge that
Massachusetts Inves[The views expressed in this Korea came like a bolt out of the
Chrysler for months, and the tors Trust, during the first ari{c\e do not
necessarily at any blue, while a deterioration of af¬
April report showed a total quarter added to its holdings ftm# coincide with those of the fairs in Indo-China would hardly
shorts
have
position
almost
on
been
active
in
funds,
the short side of of Santa Fe and
which ic, for instance.
97,000 shares,
Union Pacif-
come
Chronicle.
They
presented
are
those of the author
,
only.]
a
as
as
a
surprise.
possible that
already
be
It is not ini-
few investors may
putting their houses
a
|
1
Tviiltllir Wllk
IVIISS I llllllCl
B
1
111
Willi
LL
fl*
r3llt6i W6DD6i llOi
news
(it is argued) afforded
opportunity and there is
to
Hayden, Stone & Co.
every-
actual
The outbreak of the Ko-
reason
any
the
War
rean
no
when
else
one
Trask & Co., John W,
Dayton Jr
o{ ciark, Dodge &
c '
a,'ld wickli£fe shreve, of
in-
our
of
|pencel.
ST.
PAUL,
Minn.—Miss
Mar-
cella Truhler has become associated with Paine, Webber, Jackson & Curtis, Pioneer Building, as
a registered representative.
Truhler is the only woman
Miss
regisrepresentative in St. Paul,
ghe joined Paine> Webber, Jackson
& Curtis
in May> 1953 in
California, coming to St. Paul last
tered
i\jOVember
Joins Field Staff
(Special to The Financiai
PORTLAND, Ore.
Chronicle)
—
Harold A.
Chase has joined the staff of Field
& Co. Inc., Cascade Building.
18
The Commercial and Financial Chronicle
(1998)
the
severe
A Banker's View
Sound Money
on
able
economy..
affairs.
the banker as well as
Warns continuation of
system can only
currency
result in
a
der
irredeemable
fects
the
Since
cur- i
currency can
I
frequently
be
using
"sound
money"
and
Treasury
have indicated
against unwise legislation in the
that money is field of money and banking and
sound
when to plead in behalf of those who
so
managed have expressed their confidence in
that we have him by placing their funds in his
stable
price
level, I should
a
like
state
to
"sound
that
money"
as
used herein is
con¬
momey
sisting
easily
of, • or'
~ and
certainly
rejn> a
definite
quantity of a material
thing having a value in the mar¬
^
,
kets
r,
Hi
J.
*
.
F-ro&t
the
of
world
the
standard
tions
the
gold
condi¬
soundness
to
form
belief
my
Bridges
fulfills
bill
any !
is
It
proposed
requisite
that
(jeejnabie
independent ol'
fiat.
government
that
■
and
irredeemable
of
is the antithesis of sound¬
matter how "managed."
paper
ness,
no
It
is difficult, if not impossible
to show that there is much if any
difference in the effects of mone¬
tary policy on the banker as com¬
pared to the rest of the popula¬
tion.
the
The kind of money
operation of
either beneficial
the
entire
cludes
body else, and I
flict of
interest
ulation.
If
chaotic
it
which
can
does
see
no
the
pop¬
create
or
who
had
bor¬
large amounts to put into
real estate and "equities" were
destroyed by the complete col¬
lapse. It is not a contest between
creditors and debtors but
a
ques¬
economic ' welfare
preservation for alh
the
obligations
a
and
all
entities
cities)
in addi¬
large volume of de¬
very
which
of
none
obligations
are
payable or redeemable in gold —
the commodity of most universal
marketability.
should
not
be
to
necessary
produce further evidence or per¬
suasion to convince any intelligent
person
that
a
continuance of
our
irredeemable currency system can
only result in perpetuation of an
and probably ultimately
unsound
Pledge
of. affairs in
the
and
Performance
vs.
is
as
to
money managers,
the
happened when
trend,
the
I should
and
Repub¬
new
Administration
into
came
I
suggest that you
platform of
1952 pledged a return to a cur¬
rency redeemable in gold. Nothing
power,
bear in mind that the
done
to
reduce
the
money
supply
although support of the
government
bond
market at a
fixed level
withdrawn.
was
Busi¬
for
it
,
constitutes
sound
and .therefore
position to evaluate or
in
no
sound
or
un¬
money
praise the effects of sound
are
ap¬
or un¬
sound
monetary policy.
They
bave entrusted their funds to the
bankers
rightly
of
or
the
country
wrongly rely
on
and
their
result
of
there
these
country
were
preciated to
government *
bankers
is
very
It is true
great.
that under present law
.has
discharged
his
a
banker
obligation
to
the
vig¬
get"
the
com¬
uncomfortable de¬
market
price
security
of
their
holdings.
thin
air
tender
Administration.
It's the
same
'his
:
old story Gf every
•A
statement
on
D.
by Mr. Frost
of
the
Senate
Banking and Currency,
C„ March 31, 4954.
before
the
Committee
Washington,
"tapering off." The end, of
will
finally
be
reached,
course,
but
longer the inflation lasts the
not create
the
more
of
the
gold
excessive government spending and the
to
Says
balanced budget alone will
a
sound money situation
a
spending,
government
and
restraint
or
points
wasteful
on
of
monetizalion
to
should be passed. Now is the time.;
to
small
or
unlimited
of
of
amounts
which never
redeemed, bankers are
be
money
make
to
does
wait
you
into
until
J-hvV vb Delayed!
Finally,
takes
the
place, it
.
-'.I
'
I
con¬
am
l-vllk
-
:
*W/,'
„
/'/L
£
%
-
its
their
the Con¬
Courage
,v
from your
come
own
willingness to look down the road
continued
may, in due
is
much longer the ratio
_
become too low to permit
redemption. If we allow the pres¬
ent policy and trend to continue
course
much
longer, I suggest the
sibility of a "flight' from
pos¬
being
is
destined
are
learn
to
If
such
les¬
a
the hard way—and it is a very
old
lesson—it
seems
reasonable
son
to
that then
suppose
we
will
un¬
derstand the necessity of building
on the, basis of a
sound redeem¬
able money.
We should be able to
ourselves that lesson and
spare
that
necessity.
as
strongly
prompt
the
passage
Bridges bill
of
the
as
preserving the
tem of
a
best; hope
American sys¬
free economy.
of Trade- and
The
Brothers
other
the
fiee
in
opening of
an
of^
of
Taras
•
Establishment of the
will
enable
firm
the
rectly its business
Board
of
on
Trade and
-
Hallas.
new
to
the Chicago
at
the
same
time provide facilities for more
.efficient handling of its securi¬
ties business in the
With * this
firm
now
Chicago
addition
the
operates .13 offices,, lor
The
midT
principal office is in
New York
"
; ;
.
SPRINGFIELD. Ohio
D.
Rapkin
has
become
—
the
our
know
you
paper
money
root
cause
Likewise, I
that
am
cannot
we
in
coins
of
gold—the
that is already standard in
dealings with foreign coun¬
tries.
You
book¬
called
thej
know
public
the
Federal
delivers
the checking
Treasury, just
had
Treasury
has
yourselves
neither
ability
to
that
the
the
time
nor
comprehend
this
issue.
Consequently, you cannot ex¬
pect the people to bring pressure
as
account of
though the
Congress to restore the gold
I know there
inent citizens
actual
deposited
the
On
other
hand,
a
dividual
corporation
or
a
the
when
government sells
bond to
an
takes
account
poration,
the
the
of
and
.government's
money. Not so.
in¬
the
-
In
the
posits
it
credits
.
account.
or
to
No
the
prom¬
nurse
-
Balancing the Federal budget is
desirable.
But
without
the
re¬
straining influence of redeemable
the
currency,
it
is
impossible
to
realize that aim except for brief
intervals.
new
first
instance, bank de¬
inflated. The result is
are
many
still
cor¬
is created.
money
.
from
amount
individual
are
who
the
delusion that balancing the budget
provides the people with sound
money.
inflated bank
.
Even
anced,
the
if
the
budget
were
monetization
bal¬
of
our
deposits, rather than
large
issues
of
printing
press
money.. Thus,
the cause of the
deterioration
of
the
purchasing
value of our money is hidden from
Federal debt goes on.
With a balanced budget, Federal
debt held by the public can still
quences,
Stales
to
consent
,
and
local
governments
deficits by
finance
their
of
oeople/
the
whereas
Thomas
affiliated
be transferred to the
with
even
♦Testimony by Mr. Stuhlmiller on the
Redemption Act of 1954 before the
Gold
Subcommittee
on
D.
Banking
of
and
C., March 31,
the
Senate
Currency^
1954.
Committee
Washington,
greater
banks. And,
tragic
conse¬
Federal obligations held
by the banks could be transferred
to the
Federal Reserve.
Passage of this bill
effective
..
Ladd, First Na¬
tional Bajik Building.. "
situation.
upon
have
With Greene & .Ladd
with Greene and
a
is the
coin standard.
"•
(SpecjaJ to The Financial Chronicle)-
1933-34
the people.
Orvis
cated, in the east, south and
west.'
area.
to
metal
Federal Gov¬
simply
Treasury
gentlemen know
you
resort
credit to
bank
di¬
this
sure
•
office
clear
sure
our
cial, banks, and the banks write a
Trade
management
of
government bonds to the commer¬
Chicago in the Board of
Building, 141 JacksOn Bou¬
levard, which will- be under the
am
basis in
'
of
which
again
simple
This is
entries.
"monetization
principal se¬
curity and commodity exchanges,
announces
I
debt."
Bhicago
111;—Or^is
price level—and
have sound and honest money un¬
til our paper currency is
of
means
keeping'
& Co., members of the New York
Stock Exchange,
Chicago Board
the
that
requires above its re¬
ceipts. from taxation is obtained
by
for
effective
no
Administration.
ernment
Orvis Bros. Opens
CHICAGO,
our
with
finally did so with a vengeance—
is being used again by the
present
redeemable
now
Branch in
raise
They do not know that much of
that
watched
continue
previous
"
money
has
process
monetary medicine that the
Administration used to
same
what to do.
the
situa¬
Repeating New Deal Sins
Debt Monetizalion
one
the
see
their
Already it is suspected that the
from
the
coun¬
restraint.
as pos¬
of
not
it
Yet
^"--ades
whether re¬
difference
no
does
between
vicious
taxation cover ex¬
penses.
The government doesn't
run
out of money to spend. The
people express concern but, do
not
understand the implications,
or
I recommend
sible
debt.
this
Today the. people see the gov¬
operate
as
though
it
ceipts
public
eral
ernment
makes
lot—and I can't
a
in¬
more
and tne monetization of Fed¬
tion
how different it is! -.h:?
we
or
The
a
possibly political chaos.
govern¬
coming next—a little
relationship
cur-, ferently at that time. I remember
resulting "high degree of that our Congressmen were criti¬
economic chaos, and the ultimate, cized for wastefulness when they
necessity of rebuilding our econ¬ mailed small packages of garden
omy from a condition of economic
seeds to their constituents. Now,
rency,
upon
sel them with any assurance.
dif¬
much
dependent
flation
period be¬
fore 1933 remember that Federal
handled
now.
ment. And they don't know what
Those who recall the
were
"E"
far
very
have to resort to old age
pensions,
the disappointment and loss
of
self-respect
that
goes
with
are
finances
maturing
go
with
still in the dark as to
what is actually responsible for
this change. They are puzzled.
they
alarmed because
are
bonds, does
Many have
worked
and
saved
and
thought
they had enough accumulated to
retire. Now they find that they
not
SiuhimiUer
J.
a
managers
people have this
though they do not
even
My people
are
money
the
that
the money they have been saving,
as well as their life insurance and
irredeemable
currency
is
return to redeemability, we that
1
fortunately still in a position taking us.
where the ratio of our gold hold¬
I am confident that the Ameri¬
ings to total deposits and currency, can people are a good deal like
is sufficiently high to justify com¬ my people back home. They know
plete confidence in the success of that •; something
has
happened
redemption. : But if * the present which has completely altered the
".easy to get" money policy of the course of our nation's destiny. But
of
gold coin
The
''
rests
must
of the
Congressmen require and deserve.
gold standard, and nothing
else, will give you that support.
W
issues
American
act
neither
—
exercise it, is the silent yet effec¬
tive support that you Senators and
people today.
The responsi¬
to
operation
power,
in
gress.
■"'}■:
The
edge
issue
bility for
people
require approval by
even
the power of restraint. The knowl¬
that
confronting
the
the
of
it
standard would give to the people
late.
.
vinced
vote
Congress.
will be too
solution
to the practicability
as
public flight
a
tangibles
other
group
out
no
If
.
transcends
Convertibility Must Not Be
depositor
when
he
stands inflation based- on irredeemable
ready to deliver paper dollars not
money.
Once the pleasant effects
convertible into gold. I recognize,
of the poisonous drug have been
of course, that Congress has the
felt there seems to be no way of
-Subcommittee
system
currency
upon
The result of these protests was a
prompt return to the "easy to get"
monetary policy of the previous
contending restoration
importance all
when
but
manufacture
or
legal
-
that
new policy had de¬
an
ment to influence national
policy. Therefore, it is m.y
opinion that the responsibility of
bitter in their
plaint that the
gree
tary
phenom¬
arose a
knowledge, experience, and judg¬
mone¬
natural
widespread
orous protest over "hard: to.
money, and I regret to say
many of the large banks of
ena
individual
for
necessary
banker, in
inflation of- bank deposits.
this
meet, the demand
was
them either to dispose of a corre¬
Nevertheless, there is some dif¬ sponding amount oil government
ference
in the responsibility
of securities or to avail themselves,of
bankers as compared to others of the rediscount privilege at the
the general public.
banks.
Whether it reserve
This
condition
should be true or not, the mass of naturally resulted in a rise in in¬
people are usually quite ignorant terest rates and a drop in .the
or
rather
quite
unconscious of price of government bonds. As a
what
judgment;
issue
was
credit
are
to
in
some
can
booming and there was
a
strong demand for bank loans.
There was no shortage of. loaning
power on the part of the banks;
ness
but in order to
„
Bankers' Responsibility
credulous
so
the
reverse
lican
events
natural
<
produce natural re¬
sults, bankers are unable to avoid
and
like to refer to the record of what
was
when
permitted
of
posits in the banks of the country
will
Even
of
part
on
(states, counties,
tion to
creation
the
government
subordinate
It
attempting to guess correctly
their policy
will be from
day to day instead of attempting
to 'gauge
the effects of "natural
phenomena such, as the move¬
ments of trade, production, supply
of
and
demand
for
credit, etc.
s
Government
Federal
believe that
rowed
of
resulted' in
If anyone
(which includes
deposits) no segment of the popu¬
lation will escape disaster. When
the "flight" from money occurred
in Germany in the early '20s, even
tion
has
huge
bank¬
between
speculators
irredeemable currency bas
an
on
con¬
deemable money
those
of
the
on
what
suspension of re¬
and the following 21 bewildered and unable
operating our economy well-grounded plans.
demption
years
irredeemability
of
has
1933
the
that
statis¬
in¬
in, our econ¬
overissue of non-re¬
an
present to this Com¬
convince them of the fact
to
every¬
conditions
by
omy
to
mittee either arguments or
field of money.
destroy,
we
late date
this
at
necessary
dangerous state
economy
and other elements of the
ers
hardly
detrimental to
or
as
is
It
Midwestern
standard transcends in importance all other issues
confronting
the nation, points out the inducements in our irredeemable
the
errors
is
our
economy,
bankers
used in
care.
tics
of
Savings Bank, Fontanelle, Iowa
National Debt as a source of inflation.
policy of the money man-rt
I
agers can bring about sudi violent
I believe that this bill, S. 2332." monetization of Federal debt
by
changes in the supply of credit,
restoring the golld coin standard our. Federal Government requires
we are constantly in the position
in
,,
banking business.
discussion
this
the
on
.
will final responsibility for the nature
the
term of the monetary standard and sys¬
since the' tem which our people shall havb,
Department
and
the but I am convinced that morally,
Federal
R e- although not legally, the banker
serve Board
the
has
obligation
to
protest
in
obligation;
no
banking business, as I said in the
beginning, we are able to settle)
our
legal obligations with
the
same type of paper money used by
everybody else; but since changes
bring; violent changesin supply of credit, it affects adversely
r
with
State
irredeemable
of
system
J
paper
on
managed
a
Money!
By IL J. STUHLMILLER*
part of the government that it re¬
deem its promises?. As to the ef¬
our
a
money system
would
have
been
it
greater and more permanent un¬
other seg-*
irredeem-.
dangerous state of t
Scores belief in the effectiveness of
system, and points cut since
rency
Budget Alone Will
Not Produce Sound
redeemable
that
and
fiat, Mr. Frost stresses the adverse effect of irredeemable;
of the
possible that the economic
sound
Restricting the term "sound money" to currency consisting of,.
or redeemable in a definite quantity of a materia! thing having
a value in the markets
of the world, independent of govern-'
ments
A Balanced
soundness.
to
return
of the United States lias
been made under a handicap of a
Antonio, Tex.
Chairman of the Board, Frost National Bank, San
and inflated currency on
"Is it
and the more
penalty
the
progress
By J. II. FROST*
ment
difficult
Thursday, May 6, 1954
...
brake
on
will
be
deficits
an
and
debt monetization. Yet it will
pre¬
serve intact the
original powers of
the
Federal
allow
it
to
Reserve
expand
system
and
and
contract
Volume 179
the
Number 5322
within
supply
money
mate limits.
The
The Commercial and Financial Chronicle
...
legiti¬
>
decision
to
return
gold coin standard should be made
by the elected representatives of
the people,
the Congress — and
not by the Treasury.
This
responsibility is placed
directly upon Congress by the
Constitution.
You gentlemen are trying to re¬
_
sist
the
demands
of
the
groups; you are trying
inate waste in Federal
want
you
to
nances
to
to
sound
a
protect
restore
the
pressure
to
elim¬
spending;
Federal
basis;
fi¬
wish
you
purchasing
has been
H. Hentz & Go.
Merges
the
to
power
has
announced
H.
&
Hentz
effective
Beverly
H.
Hills,
Hentz
branch
of A.
on
represents
&
H.
Calif.
direct
first
Coast, and
extension of a wire
including Chicago, Pitts¬
burgh and Detroit, as well as Mi¬
„
Beach
and
Florida cities.
with
all
Without
you
currency,
are
compelled to stand by without the
help of the people whose support
would
enable
to
you
quench
the
flames of inflation.
The
give
offices
relationships
in
this
bill
phases
of
its
securities
of
Among its
has
been
Co.,
member
a
Exchange,
field
Baruch
more
the
and
into
the
with
Bros,
in
the
firm
Arthur
J.
Baruch,
Jerome
are
Neumark,
Edmund
Opens in New York
Lewine,
Robert
W.
P.
The Canadian securities firm of
Fitzgerald
Nesbitt,. Thomson
Robert
Inc.
Greene, Walter C. Gibson!
Pollak, Wilbur H. Clayton,
Stanley Hesse, Lewis D. Raabin,
Jerome
Lewine, Jr., Henry A.
Zoeller
recent
and
Alvin
Schonfeld.
New Bache Office
Bache
the office of Sutro Bros. & Co. at
ventures
underwriting field
an
important
partici¬
pant.
Following the consolida¬
tion, Arthur Morris will be the
West
City.
28th
Street, New York
Benjamin
Lewis,
M.
the Sutro
merly of
for¬
has
been
an
Broad Street, New York City,
is
affiliated
with
Nesbitt,
and
Thomson and
Company, Limited,
investment dealers, and Thomson
&
Co.,
latter
both
of
For
the
It
will
give
the
Raymond
and will have associated with him
representative for
12 other former
curities Corporation.
was
the
will
American
sound and honest dollar,
their vigilance and yours
make permanent.
:
•
"MR. MURPHY DIDN'T INTEND
Wisconsin El. Power
ANY HARM"
31/s% Bonds Offered
Kuhn, Loeb & Co. and American
Securities
Corp.
yesterday
(May
5) offered $20,000;000 of Wisconsin
.'
'■
;■
v
.
'
.
'■
;•;
••
'
,
V-'; i; / ■v
.-o ■
—William White, "President of the New
"J' 'If'1 '•
v'y;V
" 'v
s
York Central and Director of First National Bank of New York"
Electric Power Co. first mortgage
bonds,
3i/s%, series due May 1,
1984, at 102.461% and accrued in¬
terest, to yield 3%. The two firms
award
won
the
on
issue
at
Tuesday
of
petitive sale
on
Why did
com¬
the
from
proceeds
bonds,
and
the
from
sale
concurrent
stock, will be used by the
common
in part to meet the cost
of construction of extensive addi¬
tions
and
improvements
pany's
electric
in
sulted
for
service
for
the
which
re¬
program
through
1954
years
com¬
have
system
construction
a
is
the
on
expected
to
cost
1956
$100,-
000,000.
will
bonds
be
redeemable
regular
redemption prices
ranging from 105.47% to 100.19%
and at special redemption prices
receding from 102.47% to 100.13%,
plus accrued interest in each case.
Wisconsin
Electric
Power
Co.,
its principal office in Mil¬
waukee, is engaged in the genera¬
tion,
transmission,
distribution
with
and
U
sale
of electric
of
area
in
energy
approximately
in
1943,* some 46 railroad executives were left bequests
totaling $2,000,000.
F. E. Williamson, then
president of the New York Central ($100,000), Martin
W. Clement, then president and now chairman of the
board of the Pennsylvania ($100,000), Ralph Budd,
president of the Burlington ($50,000), W. M.
then
Jeffers, then president of the Union Pacific ($100,000),
and Fred G. Gurley, then vice president and now
president of the Santa Fe ($50,000). All the bequests
were tax-free.
;Y'://
•
an
4,000
miles in southeastern Wis¬
consin, including the City of Mil¬
square
Murphy
makers of
patented car roofs and ends, which railroad exec¬
utives required car manufacturers to buy, and he
Equipment Manufacturing Company,
did not overlook the many years
by these railroad men when back in the
last Will and Testament.
"You have heard about Mr.
speech
on
forties he
tion
of
the
estimated
pany
also
stock
of
territory
1,367,000.
at
owns
served
The
all of the
is
com¬
Murphy's will", said Mr.
president of the New York Central, in a
March 19 after this strange testament had
the undersigned.
been disclosed by
subsidiary com¬
panies, Wisconsin Michigan Power
Co., Wisconsin Natural Gas Co.,
and The Milwaukee Electric Hail-
& Transport Co.
way
For the year
1953, the
continued: "Fortunately,
was
company
its subsidiaries reported
solidated
operating
con¬
revenues of
consolidated net
not
am sure
Murphy didn't intend any harm to those he
did remember in his will, and I am equally sure
Mr.
that
Mr, Murphy thought that what he was
leaving
gentlemen were small amounts of money.
I would call attention to the fact that at the
to those
But
same
time Mr.
fine
Murphy left $34 million to North¬
University,
western
and
public service. I
Murphy
or
which
am
may
be considered
a
not defending either Mr.
and
income
$10,286,837,
$2.16
of
equal
to
per common share.
Is the slowness of progress
in modernizing rail¬
due to honest differences of opinion
road equipment
railroad men?
among
Is it due to
anti-competitive agreements?
Or is it due to
That such
extraordinary rewards for railroad
as
described above?
rewards
can
take other forms than the
is illustrated in the case of Gustav
Metzman, former president of the New York Central,
who now has a lifetime contract at $25,000 a year. This
Murphy
Will
If banker-directors do not insist upon
tion
in
banking, how
expected to insist
can
upon
competi¬
railroad presidents be
competition among sup¬
whom
they constantly deal.
We agree
with Mr. White that leaving $34 million to
public service, but if
Northwestern University was fine
Murphy's profits were excessive, what kind of
it to the railroad shareholders?
service
was
New W. E. Hutton Branch
BURLINGTON,
Vt.
—
W.
E.
Hutton & Co., members of the New
York
the
Stock
Exchange,
opening
Burlington
of
an
Office
announce
office
Center,
lington, Vt., under the
of
Edwin
firm
will
vestment
and
H.
Blakely,
conduct
business
in
a
Bur¬
direction
where the
general
in
Mr.
White does
not
and mutual funds.
These executives and
seems
to
president, John J. Pelley, was also remembered
in the Murphy Will. The A AR is a monopoly organization
whose present president, William T. Faricy, has come
publicly in support of Mr. White
♦Probate Court of Lake
County, Illinois
and the New York
Alleghany-Young-Kirby
Ownership Board
American Railroads, whose
former
out
The
their companies are the back¬
bone of the Association of
in¬
com¬
defend, he
condone.
corporate
municipal bonds, stocks,
modities
the
I'
.
While
P.
and above his full and
liberal pension of $26,000 a year, to say nothing of the
strange salary of $60,000 a year he is said to receive at
his present age 68 from the American Railway Car
Institute, a trade association of car builders who sell
equipment to the railroads, including the Central.
Morgan & Company, is over
pliers, contractors and concessionaires with
his beneficiaries in any way."
(
$83,680,004
public should ask Mr. White and the
The American
Association of American Railroads these questions:
Central contract of Mr. Metzman, a director of J.
I
remembered in Mr. Murphy's will, but I
Mr. White
common
three
box forever.
executives such
waukee, where the
company also
supplies steam heating service in
a limited downtown area. Popula¬
this late day, use
which drip brine and must
be shunted to sidings to be loaded down with ice and
salt. They still use the ancient waste-packed journal
box on freight cars when modern bearings such as
automobiles enjoy would eliminate the dangerous hot
outmoded refrigerator cars
of loyal patronage
wrote his
William White,
the Alleghany-Young-
Kirby nominees in the present proxy fight.
,
President of the Standard Railway
was
Central banker-directors against
Most of the 130 railroads, even at
The beneficiaries included
•
The
at
the will of the late W. P. Murphy, probated
T TNDER
its
to
utility plant and to reimburse its
treasury for capital expenditures
previously made. Increasing de¬
mands
bequests of $25,000 to $100,000 each?
of
sale of 421,492 additional common
shares to holders of outstanding
company
railroad supplier leave 46 railroad executives
tax-free
of 102.271%.
Net
a
bid
a
five
will manage the new Bache office
a
which
-can
Owners of More Than 1,000,000 Shares
of New York Central
4500
the
The
Mon¬
1
past
at the grass roots of
the nation in your fight for econ¬
omy.
of
Exchanges.
ible support
people
Montreal.
members
are
treal, Toronto and Canadian Stock
organization,
Sutro employees.
Company,
formed,
announcement made
silent, positive, irresist¬
you
and
according
by An¬
drew J. Raymond, Vice-President
and
Manager of the company.
The new firm will be located at
to
25
&
Co., members of the
New York Stock Exchange, an¬
nounce that they have taken over
150
19
Nesbitf, Thomson Go.
by John McCarron, Man¬
Other general partners of
ager.
the
1918.
in which the firm has become
increasingly
&
commodities;
operations
merger
countries.
A. W. Morris
the
one
Exchange, H. Hentz & Co.
general
at
other
several
of the New York Stock
of
passage
H. Hentz & Co. has
European
of
Co.,
inyestment firms in Wall
extended
Geneva, Switzerland and Amster¬
dam, Holland, with correspondent
hose.
empty
an
redeemable
important
&
broadened its activities to include
other
several
for
Beverly Hills,
assisted
E. Milo
Cotton
system
ami
facilities
Resident Partner in
commodity firm, and among the
charter members of the New York
the Pacific
an
of
Street, will in 1956 celebrate its
100th anniversary.
Originally a
gives
This
its
variety
Hentz
oldest
W. Morris & Co.,
Co.
originally
clients.
1,
of your people's savings—yet you
like firemen fighting a fire
are
wide
a
the consolidation of their business
with that
Southern
1913,
Angeles and more recently
in Beverly Hills, doing a
general
brokerage business, and providing
Co.
May
business in
since
in Los
The New York Stock Exchange
of
in
California
With A. W. Morris Go.
member firm
(1999)
Chrysler Building, New York 17, N. Y.
years,
New
Mr.
England
Dominion
Se¬
/
20
The Commercial and Financial Chronicle
(2000)
in
Economic Progress
.v,/-:.
The
By dr. e. t. weiler*
educator
discusses
/'The
part
is
not
in
my
secret weapon
the
hydrogen bomb.
It is,
estimation, the capacity of
still
be
higher than it
good old days of 1929.
fact
is
free enterprise economy to grow.
A hundred years ago, which is a
our
that
since
short time in the life of
a
we
were
nation,
a
shown
a
.
as
1929.
deal
The
workers and
is
have
progress
nation of farmers and; increased by over 50% since 1929.
a
fishermen, working from dawn to
dusk, sending our raw materials
Europe, and getting industrialproducts in return. Now we are
if We Continue to Grow; at the
;
to
the
foremost
industrial
of
nation
V
Same Rate?
Another
to
way
importance
is
agricultural capacity has been
will
the
deciding factor in two world
grow at the same
In the
wars.
cold
war
our
grow¬
ing capacity to produce is likely
again to be a deciding factor.
A
Comparison
Let
of
and
a
few
statistics.
in my
us
1929
1929
cite
me
Most of
of
generation think
the good old days.
as
inclined to
were
being
1953
think
We
1929
of
return to heaven.
as
But
consider
be
next
like
24
be
week
will
in
stay
tial
continues.
would
fifth
In
back
1929 the average
manufacturing
four
down
the
regiment
sun
about
how
Last week
are.
taxes I
they
prices.
well
when
I
of
Most of
so
that you or your children's fami¬
lies
look
can
taxes of
for
to
depth
our
the
income
after
$12,000 to $15,000.
Just
my
the average,
the Fiji Islanders
as
of
have
last
thickness
were
the
measured
depression
of
the
by
"Saturday
Evening
Post,"
trace the
economic growth of the
high taxes I would rather be liv¬
of
we
also
can
nation
ing in 1954.
so
have risen
It is true that prices
about
60%
since
1929.
by the size and capacity
three low-priced
cars./ At the
present
can
If
as
prices had been
they
•of
are
the
have
nation
been
high in 1929
as
the total income
now
after
taxes
$129 billion.
would
But
last
will
as
billion,
much.
or
You may,
however,
have
I
and
the
many
not
taken
of
are
contributing their bit to the total
•output.
is true that
It
the
pop¬
ulation did grow from 122 million
to
160
million
of time.
during this period
Suppose
then divide
we
the income after taxes in 1929 and
1953
by the population in each of
these
a
capita
per
of
This would give
years.
about
income
$1,050
$1,550 in
in
after
1929
us
taxes
of
and
though
a
we
are
of
quarter
pacity to
prepare
using about
productive
for
ca¬
and
war
to
for government services, and
pay
even
though
third
more
income
would
have about
mouths
to
taxes
feed,
in
our
constant
now
50% higher than it
Or consider what
happen if
another
one
we
to have
were
depression
as
severe
cations
for
prices
shrank
to
taxes
25%
taxes,
1929.
1933.
were
our
in
about
If the
as
again
from
income
to
after
shrink
take-home-pay
growth.
Bankers
Association at Purdue
sity, Thursday, March 25, 1954.
Univer¬
And
the
chances
be
this
have
you
has
lost
things.
If
his
do
you
this.
What
for
this?
What
bankers
as
play
in
this phenomenon?
The reason
commonly
this rapid growth is
given for
technology.
And
I
tists
and
must
admit that
engineers
new
have
us
factories
our
have
of power.
They
recently to make
automatic.
in
an
of
age
They
technological
adventure.
But
we
gineers
credit.
easilv
can
Many
inventive
give the
scientists
too
cultures
people.
I
en¬
much
have
am
had
told
that
4,000
years
before
Christ
the
Chinese had invented clocks that
the
are
day.
could
and
have
craftsmen
period,
and
gone
on
other, machin¬
use
but they didn't.
medieval
fine
of clockmakers to¬
envy
They
invent
During the
men
fine
were
produced
is
a
many
artifacts.
the
the
people
the
it
answer
in .this
kinds
have
tip
age-long
the
conflict
It
was
the invention of steam power
not
that started the industrial revolu¬
tion.
It
the
was
is
things
can
not
of
lived
conflict in
to
discovery
ritual
a
that
and
in.
every
America.
in
Com¬
and
this, in turn, has made
economic
growth possible.
But
typically it is not tfye competition
that
new
Give
We
technology that has presented
the others with
a
automobile
and
Specifically, how do
to
the
put
how
and
bankers
The
control
in
fit
into
this
is two-fold.
answer
It is the
body's
permission
idea.
Consider
Ford would
ideas
if
try
to
how
have
he had
any¬
a
far
Henry
been
ask permission of
required to
everybody who
would
have been hurt by the in¬
troduction of the automobile.
cated house
industry and the large
integrated contractor that is forc¬
ing cost reduction in the house¬
building industry. > We can say
science
best
is
it
that
the
is
they
who
the ideas
engineering
schools
antidotes " for
form
of
give
and
that
are
our
monopoly.
It
the innovator
know-how
force
to
exactly equal to the value of all
products being offered
for
the
sale.
This
year
when
novators
serve
as
a
means
of dis¬
ciplining
the
stand-patters.
A
stand-patter who doesn't meet the
competition
of
the
innovators
loses
his position.
fashioned
general
The oldwith
store
cracker-barrel has become
of
the
past.
a
its
thing
The people who
ran
statement
come
is
uct
exactly equal to the
incomes
earned.
example
we
have
super-market
or
they
completely. Simi¬
buggy
manufacturers
lost
out
producers
become
they
or
automobile
have
failed.
of
view.
But
Modern
a
how
1
you
Directors
Economy
who
ers
this
answer
you
resources
they
It
will
who turn
them
to
over
who
men
is you
develop
can
are
pro¬
It is you bank¬
select the
be innovators.
that
so
methods.
new
This task of selection
win
is
an
ex¬
body would not
intelligently
Some
of
turned
we
to
stand-patters than there
are
saved
teams
by
good
a
Two
asides
propriate
the
of
speak
Artists
not
may
be
inap¬
During
this
point.
was
at
1930's
Are
fashionable
it
the
successful
to
innova¬
tors of the past as "robber barons."
.
We
now
realize
Western
on
our
the
industrial
men
to make
depends
might and that
who have done
it strong
their
own
same
kind
signed
that the survival
civilization
to
and
of credit
much
artists in
deserve
way
we
the
have
as¬
artists and
The architects of our
great
our
composers.
were
so
material growth—men like Whit¬
McCormick, Westinghouse,
Rockefeller, Carnegie, Hill, and
ney,
Ford—will
be
recognized
as
builders of the industrial strength
now makes it possible for
innovators.
force
to
These
They
push
men
had
the
present
likely to be
manager
good
as
as
one
chosen by a carefully worked out
method which sorts the effective
men
from the ineffective
gardless of family
The task
a
of
through
opposi¬
in
tion
from
the
as
great composer has the self-
a
confidence
the
and
face
of
stand-patters, just
courage
to
force
we
used
use
re¬
important'
extremely
an
poorly done, control will
the stand-patters.
If well
to
will
control
and
the
to
go
will
we
counts and decide which business¬
people will get this money
men or
build
in¬
continue to
omy
that
There
the
is
the
a
evidence
good
Russian
economy is not
good job of selection. For
most
they
part
of
present
selecting
for
are
managers
-
to
total
the
control
over
resources
to
stand-patters.
Only as the
best people are chosen for man¬
agerial posts regardless of class
family affiliations will
or
the
cover
paratively
people
rare
with
we
the
answer
among
the
un¬
is that you decide who
the prospective innovators
nation's
their ideas.
get
to
try
You also decide which
businessmen
should
resources
and
the
which
kind of
farmers
financial
support to grow and to challenge
the
If
There
are
aspirants for these positions.
stand-patters.
many
good choices, the
economy grows. If you make poor
choices, the economy stagnates.
Perhaps, this is a little too com¬
pact. Let me explain.
you
make
A Picture of the Economy
growing economy people
continually 'want to hold more
a
money.
tent
to
In 1870 people
people
money
hold
to
rectly
hold
one
and
decide
Create
they
want
growing
It is neither spent di¬
in
unspent
economy.
turned
nor
a
to
over
some¬
body else to spend.
The answer is
that if it is not spent or invested,
goods will be left over and people
be
of
out
social
work.
^We
available
for
Last
left (or the people
them)
as
a
which would be
variety of pur¬
a
factories, etc.
this social dividend
neighborhood of $7
new
year
in
the
billions.
The
$9 billions.
the
are
the
of
It could be used for build¬
ing roads,
on
think
produce
dividend,
poses.
was
Resources
can
are
to
available
before
year
it
was
The amount depends
the growth of the economy and
desire of the people to hold
more
money.
Bankers Decide Who Use
the
Social Dividend
Who
decides
in
our
economy
how this social dividend shall be
used?
most
The
part
have
we
of
one
is that for the
answer
do.
you
As
in
entrusted
our
most
nation
a
your
precious
Last
billions
of
private
lions.
the
$6
bil¬
created
Federal1
tem, through
create
of
$7
money,
new
bankers
The
out
year
care
posses¬
sions, namely the right to
money.
Reserve
Sys¬
market opera¬
open
tions and
discount policy, decides
how much money you can create.
But,
you
which
are
the
ones
businessmen
who decide
shall
get the
You decide this by
granting a loan to this person and
refusing to grant it to another.
It is in this way that you serve
con¬
as
tlie
one-half
in
an
were
depres¬
Social Dividend
a
extra money.
In
or
com¬
should get the chance to use some
of
income
Otherwise,
Decisions
Money-Holding
ability to innovate.
But how do you as bankers get
involved in this job of selection?
The
of
amount
production.
will have inflation
sion.
In the lpng run,
this is bound to lead to the trans¬
of
of
after year, the total amount of
products demanded must be equal
goods that
Russia.
new
some
If the econ¬
is to operate successfully year
released.
with
war
and
sold
we
the products abroad.
tual
in the cold
factories
new
Finally,
have progress. It is for this reason
that I am optimistic of our even¬
success
we
busi¬
But, what about this additional
If
one.
go
is
to
it
to
over
to buy new plants and
equipment. Incidentally, we relied
on you bankers to assemble some
of
the
community's money re¬
sources in the form of savings ac¬
affiliation.
economy
Some of
turned
and
re¬
selecting people in
competitive
sources
ones
the
ideas
con¬
to the government
over
earned in
of
the
Innovators
our
nessmen
we
fer
innovators.
for
bil¬
$367
income
this
buy products.
that they should be sons or sons-
managerial posts.
more
produced
buy consumer's goods. Some of
it, in fact about a quarter of it,
in-law
the
always
from
coach.
Or alternatively
a
man¬
agerial staff chosen by some es¬
sentially irrelevant rule such as
sons
are
A college
one.
games
many
chosen
disposal of the innovators despite
there
gross
year
to
is
ask
may
to banking?
The
that, for the most part,
The blunt fact is that competition
has put American industry at the
that
Last
tributions.
Personnel
doing
fact
the
that
see
national prod¬
exactly $367 billions for
point
Are
novators
the
or
and
value of the gross
every
national in¬
a
lem-solving
Bankers
done,
store
get
lions of product and we were paid
them have either converted to the
department
reaffirmed
is
we
the stand-patters to adopt a prob¬
is not
Competition puts the innovators
in control of the industry.
In¬
pay
airplane that rents for the "services they are
railroad in-' also rendering. Now the important
dustry. It is the supermarket that point is that the amount all of
has
disciplined the grocery in¬ us are paid (including the busi¬
dustry.
It is now the prefabri¬ nessmen) for our contribution is
new
gotten with his
this
along
businessmen
of
fqr our contributions.
themselves in the
dividends, interest, and
houses.
ask
located
think
paying
They also
as
also
us
We
tor
these
society and
table.
to
new
Consider
are
football team selected by lot from
to
econ¬
everybody in this
imagine that
contributing services to
Let
room.
the male student
have
'
problem manage¬
our
imagine that the
us
omy consists of
tremely important
not
functioning of
of decisions to hold
money.
To make
able, let
In the first place, we have a
predominantly competive econ¬
omy. This means that the innova¬
does
Consider
have.
the
the
has
gressive economy.
we manage
innovator
do
picture?
more
on
the
disciplined
crisis.
the personnel directors for a
More Control?
otherwise
effect
businessmen
ways
Innovators
a
would
we
year
related
Do
son
uncertain
an
gives a per¬
freedom from worry that he
of firms producing the same prod¬
is
How
money
uct
In
be done in
revolution.
lies
me
societies
hand
that constituted the real industrial
personal
seems
tre¬
that;Tengi-
petition has made it possible too
and
in favor of the innovator.
were
Innovators
in
the
to
In
world, holding
the economy
have
civilization to survive.
versus,
point
the
competition
must
to
which
Stand-Patters
to
contribution
answer
more
satisfaction.
take
to
The
might
money?
is that it gives them
people want
the
to
found
be
ple
neering and science have made to
means
going
progress
of
and
like
opportunity
mendous
then
a
drawing boards
startling developments. We
many
live
scien¬
done
their
on
new
a,:
.
society
economic
They have given
us.
sources
taught
our
have
doing
•
somehow
scales,
for
zest
•
a
the
part
the
enough to become head of the
family, the chances are that he
either
like
reasons
answer
time
the
would-be innovator had lived long
have
the
the
are
By
no.
larly
are
also
despite
slightly lower price level, peo¬
wanted to hold sixty-seven
a
billions of dollars. Why you
Forces
monopoly
should
I
modern
leave
to
of the clan to try
of cultivating the rice.
way
would
eco¬
experi¬
anything
would
Dr. Weiler before
Clinic
of
the
Indiana
new
soon
will
like
family.
He
get
permission
to
from the head
a
billions of dollars. In 1940,
ask do
new
Chinese
have
would
enced
by
by
I
I'd
of
after year that has dis¬
ciplined the stand-patters.
It is
rather the businessmen with the
modern
The
•Speech given
the
Agricultural
Economic
tremendous
are
can " be
done, there are lots of
skeptical people, who would pre¬
fer to do it the old way. Consider
the lot of the innovator, in the
consider with me the reasons for
this tremendous economic
growth.
No other nation has ever
In¬
constant
25%
Have
this
later.
ery,
1929
of
nomic
to
that started in
after
come
We
Now
one-
192j9.
in
was
we
after
prices is
the
now
our
in
it would be
interesting to
stop to consider all of the impli¬
us
startling statistic. Even
a
the
living
are
is
I
Chevrolet
out-perform
We
great deal for
1953.
This is
token
same
1974
to
1929
ar¬
account
workers, who
new
able
the
Growth?
the population had also grown
gue
the
the
Cadillac.
Why Do
almost twice
Chevrolet
age of rapid growth.
total income after taxes
$248
was
By
that
be
1953
1953
our
out-perform
Cadillac.
predict
an
year our
time
easily
sym¬
for the innovators to get the upper
usually in a
poor position.
Even if he has the
engineer at his elbow saying it
$9,000 in 1953
have incomes
you
of
excess
The only
field is with
a
on.
innovator
The
income
an
so
new
Engineering and Science: Anti-
a
and
war
And
work
devote
to
have
over
reported
high. But despite
very
would
in
that
governmental ac¬
the average family
hear
paid
after
to
taxes
we
our
inclined to agree that
was
were
high
an¬
mean
still
energies
after taxes
the
was forty
hours, with
approaching this figure,
except during planting and liar-
vesting times. These days
four
of
our
of
Last year
shrink
would
could
its
and
week
lot
of
5%
farmers
a
nation
tivities,
nineteenth century.
work
the
another
on
work
income
This
work week in
largely
which
the
in 1953 prices, would be
$2,300, if the present growth
about fortyagriculture we
In
still very
up-to-sun
1929.
was
hours.
were
to
1978,
doubt
capita
per
about
go
By
longer and they
will probably retire earlier.
De¬
spite these losses of labor poten¬
taxes,
to
the'
school
we
want
to
rate during
long,
no
nation
continue
we
very
growth
the
other five hours to about 35 hours.
Our
potential labor force will
have grown so much that I seri¬
ously doubt that any of us, when
we
really look into the matter,
a
dramatize the
what
if
years.
won't
.
economic
of
the world; our industrial strength
and
to
;
down.
sun
to plow
way
oxen.
a
traditional
of
has
our resources
to
up
right
productivity
.
good
*
sun
we
of
ad¬
of
acceptance
phonic form. Belatedly, we
recognizing the contribution
these people.
They
it is morally wrong. It
for men to work from
changes
The plain
the
with authority: This is
it has always been done
this is the way it is "meet
right so to do."
He who
and
in the
have
societies.
most
the
way
and
of
was
nation
a
great
•
between
say
the
and
figure swelling to $2,300 by 1978 and shrinkage
work-week by same year to 35 hours.
"
Our most potent
in
can
Innovator"
banker play in economic progress. Avers per capita income
after taxes rose from $1,050 in 1929 to $1,550 in 1953. Sees
this
stand-patters
vantage
Head of Economics Department, Purdue University
Prominent
organization
every
the stand-patters on the one hand
and the innovators on the other.
Thursday, May 6, 1954
...
selector
of
economy.
key personnel
By
lending
to
Number 5322
Volume 179
The Commercial and Financial Chronicle
...
rapidly growing firms headed by
outstanding
businessmen
you
in effect, saying to this busi¬
"you are entitled to some of
are,
ness
the social dividend."
By refusing
by restricting the line
to lend, or
of credit to
another
business,
really saying "you are not
are
titled
to
the
social
you
en¬
dividend."
These
more
As
by
money,
a
group
who
shall
these
get
ford
resources.
make
innovators
to
over
lution.,
The
farmer
these
The
high
When you lend you make person¬
nel decisions.
If you turn these
resources
interest rate should 'be
enough so that you" can af¬
to charge some loans.
It is
feet.
not spending.
bankers decide
you
no
a
sin
in
sin
possible in a competitive
economy for the innovators to get
the upper hand and to force the
modern
omic growth in the United
needs
the
re¬
you
expand and to threaten
and
to
sources
the
to
the stand-patters. In this way, you
make it possible for the innovator
to
get
to
be
toe hold, to grow,
the disciplinarian.
If
make wise
tries
But
this
what
and
novators
in
Their
In
be
to
the
position
a
must
to^ make it
help
does
are
with
be
that
the
bet
on
have
who
been
and
you
cessful
farmer, is not only to be
good judge of character but also
a
L.
joined
Staats
Calif.—James
ANGELES,
Beebe
and
the
&
Julia
staff
Co.,
of
640
and Los Angeles
Mr.
Beebe
have supported
him
helped
The
to
previously
Hill Richards & Co.
Viewed
this
in
required
way,
You
day
day after
to
commercial
and
America.
to
a
When
person,
you
achieve¬
send
advantages
But the
of
bankers,
par¬
the
And
I
mistake.
You
a
best;
and
to
men
young
you
sell
to
small
towns,
think
this
the
get
very
going to
are
profession, and
incidentally offer a starting salary
and working conditions that will
your
get the best.
'
,
;
the
In
second
place, we must
the
dangers
to
the
what I shall call a
recognize
of
economy
"bank examiner's attitude" among
giving
It
is
the
to some of the
bankers.
resources
being released
examiners to criticize bankers for
by decisions of the people to save.
You are, in effect, saying: "I am
making bad loans and to encour¬
age
the making of only "extra
willing to bet that this person or
safe" loans.
this business
are
nation's
the
make better
can
released
other person or
are
choosing
betting
fusing to
bet
It
I
business. You
between
some
on
use
than
resources
some
But
be heresy to
may
Be Turned Over to
a
entitled to
resources
is not
a
democracy
a
A good
successfully turned
be too im¬
be
writes
govern¬
these
All
can't.
can
a
is
do
governmental
a
set
body
rules governing
up
a
loan
always
men
If you
make it
earnings from
from
insist,
political
It
pressures.
that
cident
for
bonds
is
ac¬
take
no
Reconstruction
the
Finance Corporation was
involves
as some
what
one
would
discretionary
care
of
goes
sour.
are
political
losses,
We
back
have
world
witnessed
in
growth
of survival
depends on
of
a
produce.
in
the
of
pends,
then,
It
hostile
continua¬
the
continual
the
innovators
solvers)
and
the outcome of
struggle
between
(or the problem-
the
stand-patters.
Each year the community releases
resources
by
deciding
to
hold
any
It
will
,
3
freighter shipping fleet, assuring
ahead.
acquired The Crescent Company, Inc. of Pawmanufacturers of insulated
cable
and
wire
for
the
automotive, electrical and
electronic fields.
It
purchased majority interest in the Industrial Brown-
hoist
Corporation of Bay City, Michigan. This com¬
pany
manufactures specialized cranes and heavy in¬
dustrial
equipment.
Meanwhile, the corporation has
completed
a
100%
mechanization program on
its bituminous coal mines.
Moreover, 80% of this mechanization is the most
take
loan
that
to
lend
businessmen
thrive.
The
the
bankers
to
promising
and farmers
innovators
will
the stand-patters and
this challenge, the
and the innovators
together will make a better town.
challenge
by
a
tucket, R. I., important
being
In fact, if you
losses, something
which
in
town
young
acquired
substantial income for many years
modern type
As these
losses.
willing
are
a
on
have
A
Our
growth.
Growth is
the result of change. Growth de¬
as
to
premium
in Texas which represent annual gross
per¬
is wrong.
dra¬
this
some
don't
argu¬
the capacity
to
economy
hope
to my main
the primary reasons for the corporation's
of continuous mining machinery.
Just as an insurance
expects to have some
you should
expect to
have
come
matic
so
are
earnings of approximately $1,500,000.
In fact, you can
occasional
the
company
pressure.
ment.
insurance
an
This
decisions
risks.
acreage
gas
earn
on
government
that you can afford to
some
when
expect
left to persons subject to
so
source.
corporation purchased 12,000 acres of oil and
The
examiners
think of the extra return
involved
in the "mink coat scandals."
these
you
focus
single
a
$3,441,596 to $4,895,144. Here
in
what
the
becomes
of expansion into other basic industries.
improvement in earnings and outlook:
who
is not,
ment is
involved, the government
program
corporation has been most successful in its search for new sources of
revenue. Gross income in the
past four years has jumped from $6,006,063 to
$10,373,397, or more than 72%. During the same period net worth has increased
imply, on avoiding all
risks,, a governmental body will
take your place. The interest rate
should be high enough relative to
official
thorough-going
The
to
seem
and sale of bituminous coal. It was accord¬
ups
banker takes
banker
a
—
off
procedures.
These rules
can never replace personal
judg¬
ment.
And when personal judg¬
lending
the mining
of this program was to broaden the corporation's income base and
relatively independent of the year-to-year fluctuations which characterize
judgment
and
personal
judgment can not be perfect. But,
there is no substitute, if bankers
are going to make their contribu¬
tion to Economic progress, to such
an exercise of personal judgment.
lending
of the
mercy
embarked upon a
sonal
How
body.
mental
—
The purpose
being
unit, like the R.
F. C. say to one taxpayer, "We
think you deserve add.tional re¬
sources," and to another, "We do
not think you deserve additional
resources." The answer is that they
tical
the Pennsylvania Coal & Coke Corporation had only
years
of income
and downs of the volatile coal industry.
However, when the present management took over in 1951, the corporation
ingly at the
estimation, doing a good job.,
so cautious, he is fail¬
ing to perform his function of
picking out outstanding men and
betting on their success. Picking
to a poli¬
over
chances
By
func¬
can
this, but
say
can
than forty
my
This function of deciding who is
tion which in
examiners
more
one source
You can't be right all
never
Not
Public Body
bank
of
by the criticism of bank
of the time.
Can
Function
bank
submit that you
some
Banking
duty
necessarily good bankers.
examiners.
and re¬
others.
on
not
pressed
persons,
persons
■f or
/
(2) Bankers Must Take Risks.
access
that person
Penn-Texas
deserve4 the
do
best
to
Corporation
their
are
agree
Penn-Texas
to
men
recruit for them;
these men talk
process
the
very
make
are
their
this.
is
strength
you
with
campuses
of
from
decisions which will affect the in¬
dustrial
ro¬
ticularly
banking is
profession.
exciting
the
to
businesses.
Exciting Profession
an
talk
The engineers
companies
the
have
Banking Is
PENNSYLVANIA COAL & COKE CORPORATION
don't
patters.
lend
big
about
stand¬
the
to
campus
in
You
progress.
banking.
accounts
the
the innovator and
challenge
of
in
the
new
properties have been taken over, coal has become a lesser factor
corporation's total business. As
a
result, the old name was no longer
adequately descriptive. Therefore, at its 1954 Annual Meeting, the corporation s
stockholders voted to change its name to "Penn-Texas Corporation." This new
name
gives
without
some
implying
indication of the territorial
any
scope
of the corporation's activities,
restriction in the scope of its business.
meeting
stand-patters
However,
banker
a town
adopted
where
the
the
bank-
attitude it is likely to
unprogressive and dead on its
examiner
be
in
has
EXECUTIVE
OFFICES:
111
BROADWAY,
NEW
R.
Spring
Stock Exchanges.
was
should
and
have
William
Street, members of the New York
profes¬
banker
a
Coots
South
corporation
I have been
going
(Special to The Financial Chronicle)
LOS
a new name
ments, accounts which encourage
young men to go into engineering'.
scientific
our
you
your
importance
back
fine
industry and
of
techological
able
An old
takes
place,
heard
the
come
have, for the
the kind of busi¬
the fruits
utilize
tion
job, if
avoid
Two With Wm. R. Staats
a
Should
and
enough of
never
mance
over
first
the
about
You
transform American
this
your
going to get back of the suc¬
not
can
university campuses for over
twenty years and in that time I
Key Role in
a
said
this.
nessmen
I
And
an
methods
tion with him.
of new
He is
things.
You
Indiana.
of
ments for yourselves.
you
most part,
is
corn,
schemes, of new
things. The suc¬
today is truly will¬
new
innovator.
are
his
of
seed
new
on
grow
have done a fine job.
Consider how rapidly the Amer¬
ican economy has grown since the
turn of the century.
There is no
doubt that you have had a lot to
years
can
ing to try
their
owe
doing
cessful farmer
counsel.
and
wise
sion and your role in the economy
to seek the best possible replace¬
Economic Growth
The
advice
duced.
the
equipment being intro¬
story for
a
Profession
proud
have
of
of
Right now farming is go¬
ing through a technological revo¬
Recruit Carefully.
problem-solvers
Bankers Have Had
of
ask
There
to
State
rotation
ways
banker.
may
me.
the
in
crop
knowledge about
businessmen
of
town
small
a
kinds
new
through the technological revolu¬
considering the advantages of
new
Bankers have always
the businessman's right
with
Many
Bankers Should Be Proud of
(1)
and flourish.
an
you
morals
of
bankers
nel directors for the economy you
do
hand
a
MORAL
for
mean
number
from the stand-patters. As person¬
It
in
probable.
more
at
success
industry,
farming methods,
requiring
large amounts of equipment, re¬
place old methods. You are the per¬
sons who, for the most part, divide
the wheat from the chaff, or tne in¬
are
is
been
in
banker
and
the
place,
investment
understand
and
and threatens old industries.
grows
New
decisions, the economy
rapidly. New indus¬
the television
implies
it
tragedy
world,
THE
you
more
like
the
Technical
third
the
technical
farming.
the decisions
economic stagnation,
make,
hostile
States.
and
you
and
a
grows
Without
in
average
an
to
chasing substantial amounts of
equipment.
He will be studying
Knowledge About Farming, j
And,
and
have
corn-belt
is a genuine
capitalist.
He
of approximately $85,000. He will
own or be in the process of pur¬
.
Need
days
businessman
to
never
economy
chance.
a
(3) Bankers
stand-patters to change. You are
one of the important keys to econ¬
access
our
successful
will
is
It
mistake.
a
it
decisions,
which you no
doubt recognize as every-day af¬
fairs, are a means of giving the
most active businessmen, usually
innovators,
make
to
have taken
you
-21
(2001)
YORK
CITY
with.
22
(2002)
The Commercial and Financial
their shareholders by
v.;
#* By PAUL EINZIG
j
,
"i
-
t
•*
,
J
V..
Vt
V-.
.
-•
.vy
■■
Eiiixig, ascribing firm; trend of equities on the London
!.y$tock;Exchange to'expectation of widespread and substantial
.
Socialists.
>
restraints in Britain have been abandoned.
felt for
time that the
some
event of
LONDON, Eng.
.
the
on
London
One
—
Stock
of
the
equities
Exchange,
which has been evident in
recent
weeks, is the
expectation of
widespread
and
substan-
tial
dividend
increases
bonus
of
and
this year a
number
creased
their
dividends
have
new
more
their
example.
pectation it
account for
class
But
would
for
be
on
this
ex-
difficult
of
their
elusion
that
the
in
wage
restraint, the
dend
restraint
con-
absence
of
longer exists.
They feel that, whether or not
they continue to abstain from in-
Mr. Butler's repeated appeals to
continue to observe the principle
latest
dividend
limitations
unless
there was a particularly strong
case, in individual instances, for
increase.
an
Another
attitude
by
the
firms,
on
large extent,
the liquidity
a
to become less
bank credit during:
so
as
period of anti-inflationary credit
restrictions.
An
all-round
increase
dends would constitute
tant
of
step towards
of
divi¬
impor¬
an
the liquidation
artificial situation inherited
an
from
the
doubt,
Socialist
another
would create
,
ua^10i1 by
regime.
Socialist
No
regime
fresh artificial sit-
a
.
.
.
w
.
.
,
.
i
to-reast natural
economic tendencies. But in
+
Britain
meantime
ence
few
a
years
could
Murray Ward With
Party in respect
profits.
From
Antietam,
agitation in favor of
pany,
623
South
Spring
the
the
being in 1947 when
Exchequer,
Socialist
Chancellor
Socialist
tain to occupy the
Sir
of
Stafford
the
Cripps, the
appealed to employees to abstain
from wage claims and to
employto
ers
abstain
from
tion
the
raising their
Minister.
he
demanded
as
firm's
a
been
appointed
( -The reason why in the
of legal powers to
to
induce
follow
like-;
words by
<!-.vhr
his
up
-
were
of
.
-.h
absenceqndistrib.uteii prof:1*3 'he:teased the
Qnr>h
,
Lr teLests to practice
of sen-denial is
ot
self-denial
such
sum'a
a
*
1 9 0
i
7,
M
r.
<
In
diyi- J^ouM
■
dends
would
provoke
excessive
demands.
And one of the
wage
!^cton^eaS1«lf«
v®lu^*7:
broad
;
;
and■ industrial
can
our
tor of Adver-i'
"Sales
1S
*Ka*
cm
v
1S
W°?S ^ave nat shown
aii'?m?ness as JeiJ"
fnntf
ffiierC1Se Se
^ ated> however,
liu ln
?' a .!1? I95I~~
Kfr.s rest.rained to some
-txfaa
Tv,eiIf c]alms.
r higher
J
trade unions realized
nfP<i! 1"crease| payment difvate' the balance of would aggraih
thut
■
ficulties
tate
rial
a
and
this
might
curtailment
of
raw
of
accumu-
new
a
situation.
unofficial
the
was
a
less
large
strikes.
expect of human nature to ignore
such prospects,
In any case, it has been felt for
mate¬
The rank and file bf union
members, however,
sighted. There was
ber
were
.reward of the shareholders' pubiic-Spirited self-denial would be
the confiscation of the profits
saved. It would be too much to
necessi¬
imports, leading to unemploy¬
ment.
they
^e- W3S 3 ba^ance ot It now seems that, should the
crisis every other year Labor Party return to power> the
payment;
far-
num¬
In
most
time
some
low
to
level
that
of
the
unions
had
to
dividends
place shareholders
disadvantage in
of
at
of
case
nationalization
is
an
their
liable
a
hand, were still only 45%
above the prewar level at the end
Wage restraint
abandoned
spite
of
the
of
the
in
cost
was
recent
completely
months.
remarkable
of
In
stability
living'index,
one
is
it
widely
labor
by
putting forward
wage
increases
had
claims.
to
be
ex-
felt
that' by Prolonging the artificial
sl^ua^10n, boards of directors
would
play
hands.
They
into
are
the
Board
of
tional
Association
Dealers
Board
Admiral
as
of
Governors
well
as
the
of
of
Securities
serving
Governors
Na-
of
the
on
his
many
the
Los
Among
activities, Mr. Ward is
past President of the Bond Club
a
of
Los
Angeles
and
on
the
board of
directors of
currently is
Du-
Metals and Supply and
Telecomputing Corporation along
commun
with other local companies,
or
interest
of
last
tions
b
> a
future
m e
r
Marache, Dofflemyer
ANGELES, Cal.—William
Marshall has
with
become affiliated
Marache, Dofflemyer & Co.,
Spring Street, members
Los Angeles
Stock Ex—
634 South
of
the
change.
—
four
minion
and
we
'
Merrill Lynch, Pierce, Fenner &
the
CINCINNATI, Ohio—George E.
^
has become connected
Ratterman" &"co.,
Fourth Street.
307
East
.
the
of
record
year
a
«•
Gene Flack
•
by 8%!
unemployed tothat figure ex-
are
million.
it
And
then
prosperity!
was
ArIsuIveJl jus' coippleted by
U.
S. Department of Comshows
that
with
tax
re-
and slug for business!
"Arno Johnson,
business people
we
^
p
a
of
last
year
by
billion!
liquid
of
$200
billion!
That
the figure of
lion
would
stock
the
third
of
assets
this country
purchase
books as
1954
"That
able to
should
prove
to
be
all of
us
if
we
are
clever
a
historians
year
spending power is avail-
„
,
-
'recession*
a
accentuate
more
the
busi-»
great year!
"As Sales Management predicts,
one-
ter-
.
1954 will go into the record
ness,
the
be
positive and push for
share
That's
than
more
..
decline in Fed-
who
those
for
listed
and
spent
for those that insist on one, but
every
one
can
,
ta
—
they
appropriations.
there'll
"Yep,
savings
we
.
,
out of their
where
'
military
company
big boards
times over!
four times
is
And $200 bil-
1940.
of every
exceed
rible fix that we're in today!
ment,
^
persuade
.
and
$1.05
make UP for
the citi-
now
income
"
eral
zens
can
.
qq jag^ year
Personal
year ago.
.
the folks of America
spend
ahead
Thompson
Companyj has pointed out that it
vast
is
director of re-
search of the J. Walter
other factors, the total spending
power of the American people is
on
With Ratterman & Co.
,
.
"Advertising billings in the first
period of 1954 were ahead of 1953^
ductions, increased dividends and
of
Beane.
the, J skids. Several
breaking their 1953
;
; !
•
i
are
figures!
breaking
1949
told
were
"The
J.
Watts
has
joined the staff of
Bache & Co., 126 South Salisbury
Street.
He
was
formerly
with
with
in
five
merce
$5
Albert
sup¬
"There has been a lot of hulla- the 'second best year *n tbe bis~
baloo,">Mr. Flack stated, "about tory of American business' and
the great number of unemployed, ?an be the first—if we quit talkwhereas the fact is that less than mS depression and really get out
(Special to The Financial Chronicle)
C.
hit
to
were
Two hundred of the leading
opportunity in economists meeting in Washing1954 for those who will keep their ton a few weeks ago predicted
eye on the target and shoot the
that even with a decline in miliworks in better salesmanship.
tary expenditures by the govern-
income
RALEIGH, N.
>
sales
ago!
ican
greater than
Joins Bache Staff
output -lead*
power
unprecedented
,
F
i»
favorable factors that offer
many
(Special to The Financial Chronicle)
LOS
industry
"Retail sales in many areas ar«
'
'
u s i ness,
there
are
ceeded
With
posed
sales
C
of
year!
year!
companies
j
11
o u
of last
"Automobile
andf
nega-
industry far
shattering fig¬
record
"Electric
of:,;
the immediate
day
(Special to The Financial Chronicle)
a rise
granted
the
of
Angeles Stock Exchange.
_
safeguard
staff
recently, ;Mr.
Ward
is ^ A
serving as Vice-Chairman of the .b
in the pnce of e(Iulties through McKenney
to
the
.
ma n y
-'More
inclined to adopt
the payment of higher dividends,
in
.
enemy's
Substantial
of
business
a"d their earning capacity. In the
circumstances
dictory
.Commander-in^Chief
the Pacific" Fleet!
"\
eventual
fake"ul 1 'ady3mtagYof^he°scarcity !he ..P°licy. ot a"couraging
of
cessive
companies.
?.iU!ing W°rldWar ir> Mr.jWardi
grave
endorse
other
Coast
unnaturally
Socialist regime
the
claims
eventually,
because ?.f 19«-51 _compensation formotherwise
Communist
influence tionalized industries v.as paid in
on their members would
have ininstances on the basis of
creased.
As a result, wages con- ®t°ck Exchange quotations.
Owtinued
to
rise, throughout the ,ng .t° dlvlde"d limitations these
postwar Deriod, somewhat beyond quotations had
been below the
the extent of the increase in the
?veI warranted by the value of
cost of living.
Dividends, on the the assets of the business firms
cases
cific
.
liquid form or,ploughed
back into the business firms in
form of capital expenditure.
The new Socialist policy has cre-
to'.''despite all
devoted
the food
in
the
; "The construction
way ahead of 1953!
of-marked, that?\
circles.: ,Much
career ,has .been
ures
banking, cults,.Inc. re-,
in
--rr;.T
-
.
,
public that, they really want
goods and services!
exceed
reorganizations; and toy; t h e, contact-#distribution * Of securities of Pa-, ing, contra- -
stwid
a
:
sel and Direc-
acquaintance
stand
lated in
V
a
April 29, Gene Flack, Sales Counr
invest-
ment business
.to. peneiit pyybac- eneb
the itt served to
tne ac-,
on
cumulation of undistributed profNimitz
its, whether
United
talk before a-meeting of enough, aggressive enough;-effithe National Knitted Outerwear cient enough in' our own'saje*
Association in New York. City,,on- programs to persuade the Amerk.
in the
Murray Ward
derived some comfort from the
thought that sooner or later thev
degree
aegree
mainly the fear that higher
*v>
S.iSSvrftlw
adequacy of their dividends, they
..
Andrus,
Everett, Wash., and Warren Ackerman of Draper, Sears & Co. i
Ward has been
bound«
to be influenced by Mr. Gaitskell's
industrial, and
Commodore
as
Commodore of the
ofAs^s#;How&ffiospeioiis Can You Gel? I
,
prevent saw.:his
^dend increases, it has been pos- " ® inconvenienced bv the fn
tsible
per¬
of the assigned
'
'•^^^end^limlta^ for over. 20: years, recently"!with i ii s! i n gipr,:?
waTmftigated by ^the fact That'the »iU Richards; & Co and has a!-Sunshine Bis-v
•"* S!?.
4
He
program.
one
Other guests on the cruise were: Congressman Jack Westland
Chancellors but also
by Mr.BuUer
after the change of Government
in 1951.
:
action.
in
Honorary
an
?.M-'
?
the
Boards of directors
™e ^e. aPPea' was. re-
1
complete
a
ment.
when
ly
'*■>
U;.' i'';
'
cruise, gained
depart¬
resident \ since
to
part of
as
States Navy by Admiral Lee.
University and
a Los Angeles
action.
operation
in
■■■
of
corpo¬
rate
Navy aboard the
deck carriers.
by Read Admiral Fitzhugh
The Antietam (CVS 36—C
.'v.;
having
next Socialist Government is
responded to the apIndeed remarkable. From
Antietam
Mr. Andrus will be known henceforth
the brokerage
sharing out of
prof its among the
employees, this indicated that the
of directors
the
as
Ward
Manager
in
Prime
reason,
undistributed
premature ^restora-
the convertibility of sterThe extent to which boards
noatorf
regarded
observed
destroyers and observed them
screen
appoint¬
ray
cer- J
office
Socialist
this
For,
is
Government,
even
future
and
same
Socialist
Indeed, he is
of
ling.
next
possible
dividends.
This was done in an
effort to cope with the crisis aris-
ing from
Government
the
understanding of the Navy's Hunter Killer
sonally participated in; aj; high-line: transfer to
Street,
ment of Mur¬
was the last Chan-','
tbe. Exchequer in the:
of'
Andrus
Mr. Andrus, a landlubber prior to his
has announced
Gaitskell. He,
of
one of the world's few canted
enemy.
celloi?
into
came
White & Co., Inc., New York City,
Secretary
primary mission aircraft to ferret out and destroy the undersea
-Gordon
ANGELES, Calif.
Crary, Sr., senior resident
Partner of E. F. Hutton & Corn-
The unofficial dividend- limita-
tion
the
for Carrier, V for Aviation and S for anti-submarine)
is com¬
manded by Captain Samuel M. Pickering, USN, and assigns, as a
E. F. Hutfon & Co.
LOS
dis-
a
guest of
a
Lee, Commander Carrier Division 14.
J?overni?/n^ *oans/
1,
recently
USS
Task Force 81.4 which is commanded
demand was voiced by the official
spokesman of the Opposition, Mr.
divi-
was
change of
tribution of suph reserves among
the employees. Quite recently this
dend, is only slightly above that
Malon S. Andrus of J. G.
experi¬
of comparative
normalcy.
line adopted
new
undistributed
some
risk
new "
Mr.
for the
cause
was
the Socialist
of
providing
level
inves¬
deterred
The undistributed profits
dependent
a
no
creasing dividends, their employees will press for higher wages to
of
of the
a
for divi-
case
(?
breath; r.
inadequate
has
have been used, to
for
strengthening
time to time in the past there was
to
the demand for first-
basis
directors have arrived at the
issued
stock
equities, the yield of which,
the
on
or
bonus terms,
likely to follow
are
major strikes. In
the circumstances many boards of
from
capital.
to avoid
they felt justified in disregarding
companies
have
in-
__
order
the
that
dividends
tors
Since
of
Many
realize
of
beginning
large
Einzig
disadvantage in the
grave
In ..thesame
.
scale.
the utmost limits of their bargaining power. In the circumstances
share
issues.
the
Dr. Paul
a
Guest of Navy on Board USS Antietam
.•
capital expenditure on a large;
These politicians
fail:to.
new
y
nationalization of their business firms.
of the firm trend of
causes
Says it has been
low level of dividends policy is
liable to place shareholders at
-
;:*■
increases
however, they denounced private;
enterprise for its apparent unwillr «
ingness or inability to embark on;
and dividend
wage
t
v ;•
ine parb of
to strong; protests- On
;•
-
dividend increases, points out that both
i
dividend
recent
and. bonus ishare.-issues gave. rise *
i
V
<"T.„
Dr.
:
I;
The
v
,
'Tf "
issuing bonus
shareshvk*
Higher Dividends in Britain
Chronicle,Thursday, May 6,105#
or
commenting
on
the
1954 will say^ 'Never before
since
was
so
much spoken and
written about 'What turned out to
be such
a
slight recession.'"
yolume 179
Number 5322...The Commercial and Financial Chronicle
(2003)
.1
Aamial
do1 'the
4-*; J ■
/
■
Meeting in Dallas May 9-11
y/"1
..
By ROGER
W:BABSON'
high stock prices is that Wall Street thinks
send
The
Geneva,
we
London,
to
discussing
are
and
Paris
Indo-China.
It
in
is
in¬
teresting to note what the leading
^colu m nists
are
"direct
to
November
New
These
York
65
papers
the
as
a
ber.
Exchange.
by the news¬
Dow-Jones
stocks.
and the radio-
they are very high. The rapidly
growing Pension Funds are also
causing present high prices for
to
But
say.
let
me
along the
pass
conclusions
W.
Wallace
Payne
W.
Lewis
Hart
Wm, C. Jackson,
Jr.
a
these
short,
New
City
stocks,
of
stocks
sometimes
not
are
Reason
Roger W. Babson
Prices of the
other
for
Year"; or, "Highest
High
Prices
are
supplying the
patriots and French
with airplanes, guns, shells,/etc.,
we
same
the Chinese
as
are
Communists of
China with
war
R.
R.
Gilbert, Jr.
and
their
First Vice-Chairman—W. Wallace
this
Vice-Chairman—Lockett
National
Shelton, Republic
iBank in Dallas.
t
(Secretary-Treasurer—James L. Bayless, Houston.
•
^
^Threeiyear:Joseph ;Jt
Neuhaus & Co., Houston.
i;
;;
*
Committeeman—W.
Two-year
""
IParvin, San Antonio.'
;
loss; while
products
'
farmers
some
selling
cost. Why
are
below
Lewis
Neuhaus,
.'■/:* *'
Funds' shares all
■
(Un<ferwqbd,.
Hart
&
'
.,
buy
over
the country.
received
money
for
stocks
which
Fund
dread the
either
sia
„
ket
1954
"b 1
u e-c
War
war.
III
h i p"
up,
Peace should, .Wall
its pet 30 Dow-v
as
see
Industrials
go
down before^
ends!
LOS
Olive
Calif.—'Willis
ANGELES,
Street.
S. H. Van Gelder
SAN
Opens
soldiers
"Korea"
few
Korea,.,
nations
known
—
and
offices in
the Mills Building: Haformerly with Hannaford &
Talbot.
jj;
:
one
■
involved
fought
with
other
directly
■
.
Bache Adds to Staff
(Special to The Financial Chronicle)
'
Philippines,
the
Calif.—
FRANCISCO,
Spencer H. Van Gelder is engag¬
ing in a securities business from-
troops. Hence, I believe that
nationally
up-
the
scare
that
was
no
will get -the soldiers of For¬
a
buck
so
so
using
.
Hirsch is engaging in a securities
business from offices at 735 South*
or
we;
in
of
Willis Hirsch Opens
' Both
-
our
placed
may
and
:
■
talk
(Special to The Financial Chronicle) :.i>
of Atomic bombs by
or Rus¬
foot
our
mosa,
is
the
bombs
may
Jones
United States
another
Australia,,
money
use
the
this
-:
Indo-
Wall.
you
.
into
V
That
go
sup¬
securities /selected
goes1, into
permission
for
soldiers
French
Indo-
nor.
against the other. But
wants
in
World
a
Indo-China
long
a
these
-
r..
Eisenhower, will,
(Special to The Financial Chronicle)
Eisenhower-,
Neither
by the Trusts' managers.*Most of
ff/ One-year Committeeman—Louis W. Stayart,-Hudson, StayartCo., Dallas.
'
,
The*
Muttial
Austin,
Hart,
before, the high
stock prices are caused primarily
by the thousands of Mutual Trust
salesmen
who
are
selling their
Mr.
they will'all ;quit.
(3)
That, instead
of such a
negotiated Peace making the mar-*
without starting World War III.
or
Street wants
inconsistency?
As I have said
^San Antonio.
Second
investors have
many
manufacturers
Chairman—Edward Rotan, Rotan, Mosle & Cooper, Houston.
Payne, First of Texas Corp.,
For
fore¬
J/'
v
;
foot
Chinese
bombs, without involving Russia,
a
or,
Ad¬
to
;
material without
stocks and bonds which still show
vance."
1929";
Continue
Wall
today.
make three
Congress
send
Atomic
bombs.
plying the
'
ask
selling,
now
China, at least before the NoVem-U
Indo-China
the
conditions*
,
bullish
That
Street
Atomic
use
them
Since
Prices
"Commodities
Joseph R. Neuhaus
not
involving
Russia.
Our
Defense
Department argues that, as a last
resort, we could also supply the
Indo-China
Army with Atomic
Stock
'
.
(1)
to
are
is
therefore,
the
to
such
ber elections.
for
Already
—
often.
We cannot go by prices alone
when the newspapers headline the
financial
news:
"Highest
Bond
Stayart
I,
casts:
threaten
goes
haywire
W.
Street
however,
is
another
high prices. Prices are
high because Wall Street thinks
that we are to direct a "shooting
war"
against
the
Chinese
and
This little
but
Street
There,
reason
Street."
street
Wall
though many
going down.
in
called
—
popular
even
Another
York
"Wall
Louis
stocks '
(2)
nar¬
alley
row
65
Under
,
budget,
but
does - Wall
£treefr
really want it balanced? Hence, •*
notwithstanding the
very
higfi
prices at which the 65 Dow-Jonesr
What is said about these is true—
have
*'*'
Eisenhower could not balance the
election.
television
commentators
.
prices to strengthen J it would in¬
employment, and it should
result in a Republican Congres—
j
sional victory this coming Novem¬
Stock
used
are
-
.
crease
stocks, perhaps in only 65 stocks
selected from about 1,500 listed on
the
,
■; •' ;v- Possible.
•';'; •
'•
Tf so, it would cause-commodity
-
ask permission to
not
troops into Indo-China before the
newspapers
relation
Predicts President will
Street
•'
•, •
' i '
Relieves. This
'
•
Babson, cautioning against headlines proclaiming peak
stock prices, lays price rises
primarily to thousands of Mutual *
Trust salesmen selling their shares.
Says another reason for
shooting war."
Wall
v
:v
Mr.
1954-55 year:
Rotan
1
•>
-.v
DALLAS, Texas--—The -Nominating Committee of the Texas
Group Investment Bankers Association of America, has selected
,•! the following members as nominees on the regular ticket for the
Edward
fighting" "while ' we supply
the arms."
\
I
V i
1
■
23*
\
I
'
i•*<1
Texas IBA Group Gels Slate for GBawT"1.
}
:
Mass:
BOSTON,
Thomas P.
•—■
Kehoe,\Jr. has been added to tha
bordering stalff of Bache & Co., 21 Congress
interested
—
to Street,
t
.
,
T
'
Ex-Officio—W. C. Jackson, First Southeast Company, Dallas.
;
Ex-Officio—R. R. Gilbert, Jr., First National Bank
in Dallas.
Of these nominees, Joseph R. Neuhaus and W. Lewis Hart
•are
carry-overs
from- the present Executive Committee from
"three- and two-year committeemen to two- and one-year commit-,
^teemen, respectively, W. C. Jackson, Jr., representative to the
.National Board of Governors, and R. R. Gilbert, Jr., past Group
>>
•Chairifian, will be Ex-Officio members.
V
;
\
on
For the three months
1954
1953
$ 8,597,089
15,489
$ 8,008,370
13,168
$32,190,535
29,515
$ 8,612,578
$ 8,021,538
$32,220,050
1,341,107
1,949,687
$ 1,282,379
1,592,494
495,549
861,715
557,833
1,401,000
$ 5,385,981
7,193,248
2,183,120
3,403,859
$ 5,133,351
1,301,000
2,371,844
4,910,000
2,183,77»
4,566,000
$ 6,812,584
$r 6,190,970
$25,448,052
$ 1,799,994
'
-
Fuel used in electric
I.
$ 1,830,568
$ 6,771,99(8
production
Other operation
Maintenance
601,118
_
Provisions for depreciation and amortization—
966,715
General taxes
652,957
.
Dr.
Joseph D. Nichols, Chairman of the Board of the Atlanta
National Bank of Atlanta, Texas, will speak on "Occupational
Federal taxes
on
income-!
i
Meetings and Entertainment Arranged
meetings and entertainment has been
An informal cocktail party and buffet has been arranged
Sunday night preceding the Convention. The business meet¬
ing Monday morning will be an open session and an interesting
program is planned, with the ladies invited to attend this meet¬
ing and the cocktail party and luncheon which will follow im¬
mediately.
Special arrangements have been made for a tour through the
Tor
will be
a
Company Monday afternoon.
1
ar¬
ranged.
Aircraft
Rentals and
interest
income
from
6,127,688'
1,973,455
3,104,054
$23,088,321
$ 6,528,389
.
expenses._T
Adjustment
of
provisions
'$
for
deficit
30,922
$
$
31,666
$
129,487
133,752
of
——-
20,300
--
Monday night there
24,412
88,138
121,279
12,591
subsidiary
Other
8,913
136,676
34,773
63,813
$
$
$
64,991
$
354,301
289,804
semi-formal dinner dance with special features of attend¬
Tuesday morning there will be a closed business meeting for
reports and the election of officers. A luncheon and
style show is planned for the ladies in the Zodiac Room of
Neiman-Marcus.
$ 1,895,559
$ 7,126,299
375,255
1,653,071
$ 1,402,380
$ 1,520,304
$ 5,473,228
214,471
214,471
859,824
659,012
$ 4,613,404
$ 4,363,780
2,001,360
2,201,360
$0.65
$2.10
2,001,360
$2.18
Dividends.
$
With J. Barth & Co.
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
BEVERLY
Schrodei*
Daniel
HILLS, Calif.—Otto
is
connected
now
Reeves
&
Co.,
398
LOS
Dowd
ANGELES, Calif.—John J.
has joined the staff of J.
Barth
&
Co.,
South Beverly Drive, members of
the New York and Los Angeles
Street.
He
Holton,
Hull
Stock Exchanges.
Rogers
&
210
was
Co.
&
West Seventh
formerly with
Co.
and
Gross,
$ 6,818,193
$ 1,863,807
461,427
Interest and Other Income Deductionsc.
Preferred
With Daniel Reeves Co.
with
$29,616,71®
subsidiary,
less
committee
H.
21,284..-*
i
Other Income
ance.
{
$29,589,42$-
.
Operating Expenses
Francis, Attorney cf Houston and of the Texas Eastern TransJmission Company, who will address the gathering on "Blue Sky¬
ing Oil and Gas Securities in Texas."
j
i
Bell
ft
r
Total
,
of
i.
■
Heat
A full schedule
$„
1953;,
r
Electric
Masterson, Jr., Chas. B. White & Co., Houston.
William Porter, Dittmar & Company, San Antonio.
Henry Keller, Keller & Ratliff, Ft. Worth.
Chas. Eubank, Charles J. Eubank & Co., Waco.
B. F. Houston, Jr., Dallas Union Securities Co., Dallas.
D. T. Richardson, Milton R. Underwood & Co., Houston.
Speakers scheduled for the annual meeting are Charles
\
1954
v
Neill T.
Diseases of Investment Bankers."
months
ended March 31
Operating Revenues
Members of the Nominating Committee were:
*
.•r,
am
on
-America to be held in the Fall.
;'.
For the twelve
.
May 9-11, 1954.
The officers So elected will take office at the adjournment of the
*iext, annual meeting of the Investment Bankers Association of
V
V' ' •*''
at the Nineteenth Annual Meet¬
ing of therTexas Group to be held in Dallas
i
(
RESULTS OF OPERATIONS
ended March 31
;;Vr_ This slate will be voted
)
COLUMBUS AND SOUTHERN OHIO ELECTRIC COMPANY
:
Earnings
This is
an
statements
per common
interim statement.
are
examined
share.
1,187,909
2,201,360
$0.54
The Company's fiscal
year
$
1,305,833
.
(
1,795,401
$ 5,022,792 .i
ends December 31, at which time its financial
by independent public accountants.
The Commercial and Financial Chronicle
24
Thursday, May 6, 1954
...
(2004)
for people to buy stocks and
as
$15
a
month was introduced in eleven
the United States, the
brokers held in At¬
lanta on April 22, indications were that hundreds of persons who
have expressed interest in the New York Stock Exchange Plan
the plan
Georgia cities on Mon¬
National and affiliate
to
users
Slightly From 1952
of the C&S plan.
Southern
and
National
Bank, which has
other banks in the United
from
Kick-off day for
Comptroller of the Currency,
Ray M. Gidney, reports for 1953,
all national banks had net prof¬
its
before dividends
of $573
over
States, has offered
bank interested in adopting it.
any
(
the C&S plan is to be one of the features of
in Atlanta, one of many United States
"Invest in America Week"
cities observing the
millions,
Dr. James Bunting,
week, April 26-May 2.
President of Oglethorpe University in Atlanta, is local chairman.
Exchange's monthly investment
plan, the C&S plan allows people to buy unlisted as well as listed
The minimum monthly payment is less than the
requirement of the Stock Exchange plan.
NYSE plan.
in
much-predicted major collapse.
100,000 persons now are using C&S credit to buy mer¬
chandise or finance other purchases on the instalment plan," C&S
conditions, finds evidence that the
one
"Over
President Mills B. Lane said.
possible for these same people to use the
same method for buying an income producing asset," he added.
According to Mr. Lane, hundreds of firms iri the United States
now
provide employees with varying forms of stock purchase
plans on the theory that the bond between management, owner¬
ship and employees is thereby strengthened.
The C&S has had
such a plan since 1936 under which more than 25,000 shares of its
stock have been bought by employees.
"We're living in a society based on the right of people to own
things—their own homes, their own businesses and their own
"We want to make it
Bank
review
its
decline
in
of current
business
industrial
activity of
recent months is tapering off, and
number of lines
already
reporting some inprovement. Con¬
cerning the situation, the "Bank
says a
are
Letter" states:
the Federal
by
dex
less
Reserve in¬
adjusted)
(seasonally
•
creased
than
de¬
from
Feb¬
1%
March—about the same
rate of decline as in the
to
ruary
slight
flecting
back
CAN
THE
according to the Bureau
Census, while figures on
unemployment insurance benefit
claims extending through the first
half of April have held practically
unchanged since the early part of
March,
the
February.
C&S
Monthly
the
you spare as
much as SI 5
a
If so, it
possible for you to accumulate a
growing ownership-share in leading U. S. corpora¬
tions. You can pay for it the same
way you buy your
car, your home and major appliances—in convenient
monthly installments.
With
Purchase
dealer's
a
now
bank loan made under the C&S Securities
Plan, you can buy, under your broker's or
expert guidance, any investment-grade bonds,
common
preferred stocks—listed or unlisted—
and take
up to 24 months to repay.The only collateral
required is the securities themselves.
We commend the plan to the consideration of
anyone wishing to combine regular thrift with a plan
for building income-producing
capital based on the
growing industrial wealth of America and the South.
Come in, write or
phone for free booklet.
or
has
steel
of
booked
orders
are
around
last
levels
current
production
the highest
to
August
better.
or
automobile
rate since
producers
as
While
retail
been
running less
hind
a
cars
in
dealers'
tinued
heavy
usual
the
ago,
year
sales
car
have
10%
than
stocks
be¬
of
new
have
hands
in
mar¬
con¬
anticipation
of
increase
in
seasonal
public.
Agricul¬
tural implements, one of the first
of the industries to feel the pinch
in demand last year, have turned
buying
the
for
in
some
est
the
by
better, with employment
plants back to the high¬
level
in
Production
months.
of
synthetic texiles, on the other
was cut sharply last month
because of unprofitable prices.
hand,
"Aggregate sales and orders of
manufacturers
reporting to the
Department of Commerce in¬
creased
in March, and
inventories
decline, all after sea¬
adjustment.
According to
National
Association
of
Pur¬
chasing Agents, these same trends
apparently
continued
in
April.
Forty-three
percent
of
the
As¬
sociation's member firms noted
increase in
17%
new
reported
third
orders, while only
decrease.
One-
a
the
of
an
members
increased
in April, while half
steady at the March level.
production
held
f|:
this
in
adjustment'
characterized
still
appears
line
with
pattern
the
very
'rolling
which
business
at
has
times
lag
hard
Ray
April 28
on
the
of
in
bil¬
last
however,
against $228
first quarter of
the
increase,
The
year.
annual rate
an
billion
$230
lion
at
were
year
went
wholly for services. Expen¬
ditures
on
durable
goods
de¬
7%, while those on non¬
practically
unchanged.
Nevertheless,
it
would
appear
that, in general,
consumer purchases
of goods (as
distinguished from services) have
been
running ahead of factory
output, indicating that the correctiveprocess of adjusting supplies
to consumption is going forward.
goods
were
"The
lag in buying of durable
not explained by lack
of public spending power.
Total
personal income so far this year
is
goods
has
dollars
billion
sonal income taxes
their
that
is
answer
as
on
saving
paying their
and
money
as
per¬
Jan. 1. The
people
are
shown by the rise in
savings deposits, holdings of U. S.
Savings bonds, etc., and the de¬
debts,
as
in
debt outstand¬
consumer
Manifestly, it is up to busi¬
coax tne public to loosen
ing.
to
up on its purse strings by pro¬
ducing the kind of goods that will
by hard selling,
attractive pricing.
appeal,
"The
and
by
brightest spot in tjie busi¬
continues to be
building construction. Month after
month this goes on forging ahead
to
new
high records. Contract
for
awards
cofistruction
new
of
all kinds in March
arjd during the
first quarter were ,f3% above a
year
ago,
and preliminary data
for April look good^
"In
plant
the
equipment
and
penditures,
a
survey
new
ex¬
larger companies by the
spend
this
Mc¬
Publishing Company
|h>entions to
much if nc^ ihore money
business
as
year
these purposes
banner year
ous
a
similar
month
of
&
a
spent
for
tl|an: the results
survey published a
of
erage
capital
funds.
lion,-or 8.17%
of
average
capital
from
opera¬
tions
for
a|e
showed
lion
to
net
Adding
operations
from
securities
on
of $23
sold
recoveries
and
mil¬
of. $135
1952.
year
"Joans
on
and
investments, etc. (including
adjustments in valuation reserves)
of $59 million and deducting losses
and
charge-offs (including current
additions to valuation reserves) of
$26*6 million and taxes on net in¬
come
its
of
of $466 million, the net prof¬
the banks before dividends
for the year
1953,
as
million
$12
were
noted above,
for
than
more
the year 1952.
Gross earnings were S3.068
mil¬
increase of $317 million
lion,
an
over
1952.
erating
million
$1,752
discount
$215
Principal items of
in
earnings
op¬
'were
and
interest
from
loans, an increase of
on
million
million
1953
1952, and $695
over
interest'
from
United
on
States Government obligations, an
increase
of
Other
million.
$61
principal operating earnings were
$176 million
from interest and
dividends
United
on
securities other-than
States
and
Government,
$150 million from service charges
deposit accounts. Operating
ex¬
taxes on net
million as
against$l,662 million in 1952. Prin¬
cipal
operating
expenses
were
$910 million for salaries and wages
excluding
penses,
income,
$1,845
were
of officers and employees and fees
paid
$83
to directors, an increase of
million over 1952. and $299
million
time
expended for interest on
an increase of $38
deposits,
million.
1953
declared
dividends
Cash
preferred
and
common
totaled $275
parison
with
.previous
million
The rate
3.80%
was
in
million in com¬
$259
year.
dividends
on
stock
of
in the
of cash
average
available
for
the
The
year.
re¬
maining
On
Dec.
1953,
31,
there
were
compared to 4,916 at the end of
1952.
'I
evidence phat
ha|e'3 powerful
will
situation
of
the
earnings
million
Gidney
M.
of $1,223 million
increase
an
over
profits
as
the most im¬
sustaining influence,Qh the busi¬
level
Ray
the
calendar year 1953
4,864 national banks in operation,
|he Department
ft?"
scheduled,
in
funds.
Net earnings
could be
had of continuingjbusiness
con¬
fidence in the longfrarige outlook;
and the plans, if Carried out as
down
year
$561 mil¬
Comn|issiQn covering
sampling of business
"Such findings
to
Net
previous
were
Exchange
concerns.
hard
av¬
an^ithdS Securities
earlier by
pressive
to
7.92%
52% of net profits, or
$298 million, was retained by the
banks in their capital funds.'
Commerce
lager
which
during the previ¬ capital funds. The cash dividends
19&3,This is even in 1953 were 48% of net profits
favorable
more
of
thiey,
than
1953
mil¬
$573
amounts
among
Graw-Hill
indicates
for
year
of
lion
had met
possessions
before
dividends
on
picture
ness
and
profits
a
higher
reduction in
of the
result
same
with 'disposable' income
year ago,
a
the
about
been
States
profits for the
'
goods, for the first quarter of
as
generally.
VC
"All
the
other
and
"Aggregate consumption expen¬
as well
ness
much
the
ago,
year
ditures, including services
com¬
peted for the crucial spring
approxi¬
season
a
especially to
due
ness
the
Gidney announced
the
sales
store
said, of all retail
automobiles
opinion in the industry seems to
be
that'
operations
will
hold
sonal
NATIONAL BANK
in
cline
continued to
The CITIZENS & SOUTHERN
sales,
reported
currently
as
showing
some
slight
improvement,
and
ket.
is
decline
maintenance
New
climbed
Can
tapering
a
mill operations at around 68% of
capacity for the past two months,
while
steel
scrap
prices
have
Weekly
month for investment?
industrial
the
in
firmed.
Payment Plan
of
be
several
"Further evidence of
been
those
cannot
same
the
avoid'
yet
department
durable
ing the decline and with numer¬
ous plants recalling workers pre¬
viously
furloughed.
Unemploy¬
ment increased only
sligntly in
off
to
during the Easter
mated
creased
"Employment has shown similar
trends, with a leveling off follow¬
of
it
boom
"While
on
fabricating industries.
Buy Stocks
ON
cutting
some
drop in steel and other metal
a
and which so far
experience pe¬
war,
of
goods production as well
defense
as
the
enabled
riods
'Tndustrigl production, as meas¬
ured
preceding two months. The first
decline was concentrated
in the durable goods sector, re¬
YOU
has
goods.
quarter
NOW
slightly higher.
were
that national banks in the United
The May issue of the
since
at
however, jin
[ Comptroller of the Currency
M.
"Monthly
Letter," publication of the
National City Bank of New York,
rities
Divi¬
or
payments,
1953
May Issue of the "Monthly Bank Letter" of the National City
of steel operations and
holds general consumption now is exceeding production.
with
aver¬
dend
Bank of New York points to steady rate
average
compared
8.17% of
capital funds in 1952.
age
Business Decline Tapering Off
securities.
the C&S plan the buyer purchases all his secu¬
time rather than on a monthly basis under the
funds,
$561 million
it
In addition, under
7.92% of
or
capital
its kind offered by a bank in
C&S Securities Purchase Plan will make
$40 minimum payment
Citizens'
Earnings of
National Banks Down
have not been able to use it to buy local unlisted secu¬
accounts
700
possible for the public to buy securities in the same way they
now
buy television sets, automobiles and home appliances, ac¬
cording to the authors.
Unlike the New York Stock
meeting with Georgia dealers and
a
The
bonds for as little
1953 Nel
behind the C&S plan."
rities would be potential
day; April 26, by The Citizens & Southern
banks, the State's largest banking group.
Believed to be the first plan of
At
but who
National Bank of Atlanta, and its
affiliate banks, in Georgia cities, offer investors a Securities
Purchase Plan that will make it as easy to buy both listed and
unlisted securities as they now i buy television sets.
The Citizens and Southern
A new way
is the purpose
That
"Ownership builds good citizenship.
ideas," Mr. Lane said.
Georgia Banks Initiate Monthly Payment Plan
For Buying Both Listed and Unlisted Securities
envision
the
\ ;'.'V
It
is
•
(Special to The Financial Chronicle)
KANSAS CITY,
P.
O'Neil
so
high
capital investment."
a
has
staff of Barret,
1006
arf£ £erious let¬
face
With Barret, Fitch Co.
of
Mo.
been
—
Timothy
added
to the
Fitch, North & Co.,
Baltimore Avenue, members
the
Midwest
Stock
Exchange.
previously with McDonald
Evans & Co. and Straus & Blosser.
He
was
Number 5322
Volume 179
Pennsylvania Turnpike Financing Completed
Fairiess Hits Double Taxation of Dividends
In statement at Annual Meeting
executive
points out
of stockholders, U. S. Steel
national prosperity depends
our
in¬
upon
into productive chan¬
dustry's ability to
coax
nels, which is
discouraged by heavy taxation of dividends.
now
spending
the
Steel
of
Board
remarks
in
course
It would not correct the situation,
States
the
at
;
annual
United
of
Corporation,
his
power
Senate, a tax revision bill which
recognizes, in principle at least,
the injustice of the existing law.
Benjamin F. Fairiess, Chairman
of
the
meeting
of
would it eliminate the double
nor
stockholders
taxation
in
means.
by
any
provide a
of incentive to in¬
dividends
of
would
it
But
Hoboken,
N. J., on May
3, called at¬
small measure
tention
into
to the
new
on
the flow of venture capital
crease
depressing ef¬
fects
23
(2005)
Chronicle
The Commercial and Financial
...
productive enterprise.
this small grain of com¬
"Even
fort for the stockholder, however,
capital invest-,
is
ment
certain individuals some of whom
arising
from
the
double
tion
taxa¬
divi¬
of
dends.
their
base
opposition
chiefly
.on
the
demogogic grounds that stock¬
holders
are
rich; and that you
must
Referring to
by
attacked
vigorously
being
give the rich an even
never
break."
this topic, Mr.
Fairiess
stated:
Benjaipin F. Fairiess
"We
chasing
than it
last
year.
what-
is
That*
a
of
portion
the
We
that
know, how¬
substantial pro¬
spending is
'discretionary'.
called
it
is
which
money
does
not
have
spend immediately for the
life.
of
is
It
to
neces¬
the
money
he
might spend on a new
television set, or to paint
his house, or in a hundred other
car, or a
He
ways.
postpone these ex¬
for
a
month,
or
a
can
penditures
year,
or
"It
a
depending
longer,
even
his mood.
on
in
rise
industry's ability
to coax this spending power into
the market place more rapidly, by
offering more attractive products
improved models of existing
products, or entirely new things
upon
Stuart &
Halsey,
associates
5
May
on
Co., Inc. .and
offered $6,-
Power Co. first
series due
May 1, 1984, at 102.66% and ac¬
crued
interest,
to yield 2.99%.
Montana
000,000
mortgage bonds, 3V8%
of
Award
the
the
issue
by
won
was
at competitive sale on
Tuesday on a bid of 102.31%.
group
the sale of
the bonds, the concurrent sale of
60,000 shares of preferred stock,
Net
and
clear, therefore, that
our
national prosperity
seems
depends
//./Co. 3y8% Bonds
consumer
means
which
Offer Montana Power
time
same
also
very
consumer
sities
pur¬
little-higher
a
at this
was
Halsey, Stuarl Group
,
consumer
is
power
now
ever,'
that
know
of
fund
in
used
$18,000,000
will
the
with
connection
the
for
of
debentures,
construction
company's
and
sale
later
the
sinking
be
from
proceeds
program,
redemption
the
of
company's 4%% sinking fund de¬
1978.
bentures due
—
that
existed
never
before
in
any
form.
"But
before
products
invest
must
These
savings
diately, of
the
and
tools,
who
the
the
operate
tools, the men
the raw materials
into
go
plants,
machines
who
men
men—
the
the
and
produce
which
to hire
build
build
machines
the
imme¬
spent
course,
who
men
new
savings in the
and
facilities.
are
who
men
the
his
plants
necessary
these
of
any
be created, someone
can
the
and
product,
who market and sell the
men
finished
article.
first
The
mortgage
receiving
dividend
a
check
The
"Thus
the
is
key
to
ture
ting
1936,
a
entire
a
dividend. But ever since
when Congress passed the
so-called
'Soak-the-Rich' tax
stockholder has
the
this
ready supply of ven¬
capital and the hope of get¬
process
under the law
some
kind
as
of
an
been
large part of Montana; the trans¬
mission and distribution of elec¬
small area of northern
and the production, pur¬
tricity in
Idaho,
tion
a
transmission
chase,
of
natural
Montana;
system
in
Missoula: a manufac¬
system in Missoula, and
telephone system in
The company's service
For
1953, the
of
had
have
a
in
mocracy
We
cies.
new
our
still
we
years
concept
de¬
of
in
every race,
every
not
economic condition
for
the
been treated
of
Lee
has
of
as
if he wefre
but
of
the
pay
the
the
is forced
to
two Federal income taxes
on
same
"Today,
pending
one
who
income.
as
in
you
the
know,
United
there is
States
the
new
a
Delaware
Commission's
the
the
represented
April 7 and the issue
quickly oversubscribed.
par on
bridge across the
River, linking the Penn¬
north-south
famed
110
Extension—
Northeastern
The
first
branch
superhighway
miles in length
was
of
will
—
a
total
and is sched¬
uled for completion in the fall of
Fidelity-Philadelphia
Trust 1956.
It
will
Company, trustee for the bond¬
begin near Plymouth
holders, by Walter H. Steel, a Meeting on the Delaware River
partner of Drexel & Co., to Thomas Extension, skirt the AllentownJ. Evans, Chairman of the Turn¬ Bethlehem metropolitan area, run
pike Commission.
through the anthracite coal regions
and
Participating in the ceremonies
were Howard C.
Petersen, Presi¬
dent
Trust
Co.;
Miles
phia
Trust
Turnpike
Co.;
David
E.
and
located
at
will
extension
new
the
have
conveniently
interchanges,
eight
junction
of
prin¬
cipal national and state highway
Secretary
and
Watson,
The
Com¬
missioners James F. Torrance
a
the New York State line.
Vice-President, Fidelity-Philadel¬
this
as
points
interest,
of
important link to the Turn¬
will
River
ware
across
be
a
the Dela¬
six-lane,
high-level
structure, connecting
the
Pennsylvania
Turnpike
at
U. S. Route 13. north of Bristol,
with
extension
an
Jersey
the
of
It will be
jointly financed, con¬
and 'operated
by
pike Authority.
Upon completion of the bridge
the last link will be
forged in a chain of superhigh¬
ways
extending
from northern
in mid-1956,
Maine, through the New England
States, New York, New Jersey,
Pennsylvania, Ohio and Indian^
to near Chicago, Illinois.
Five With
Reynolds Co.
(Special to The Financial Chronicle)
SAN
FRANCISCO,
Calif.—
George E. W. Davis, Fred E. Hol-
lenbeck, Harold H. Loomis, Harlie
A. Peterson and Albert G. Put¬
nam
&
are
Co.,
Mr.
associated with Reynolds
Montgomery
425
Davis
the
in
past
Street.
with
was
Denault & Co.
Dock Company
Estimated Unbilled Balance
Contracts and Number of Employees
March 29, 1954
Billings during the period:
been
added
to
the
McDainel
Lewis
&
Co.,
.
•
Ship conversions and repairs
•
•
•
•
•
$16,141,052
9,776,263
.
1,510,048
Totals
operations
•/
;i" /
/•
2,753,332
$37,722,848
Building.
1,050,475
2,421,978
Hydraulic turbines and accessories
Other work and
I
March 30, 1953
$25,940,575
7,850,247
.
•
$29,721,122
At March 29, 1954
At March 30, 1953
$264,873,234
$291,413,802
15,937
16,951
(Special to The Financial Chronicle)
BOYNTON
R.
Dixon
BEACH, Fla.-^Paul
has
First
with
become
Southern
affiliated
Estimated balance of major contracts
the
period
.
.
Corporation, Southwest First Ave.
Number of
.
employees at the close
(Special to The; Financial Chronicle)
has become
Investment
Company,
income from long-term
subject to
/
By Order of the Board of Directors
connected with
Hess
....
period will therefore vary from the
111.—Gordon H. Wil¬
liams
of the period
shipbuilding contracts on the percentage-of-completion basis; such income
billings on the contracts. Contract billings and estimated unbilled balances are
possible adjustments resulting from statutory and contractual provisions.
The Company reports
for any
With Hess Inv. Co.
QUINCY,
...
unbilled at the close of
Investors
nois
State
Bank
Building.
Illi¬
April 28, 1954
the
Pennsylvania Turnpike Commis¬
sion and the New Jersey Turn¬
Quarterly Statement of Billings,
Major
New
Turi^pikt
structed
Newport News Shipbuilding and Dry
of
for
recreational
industrial centers along
pike system.
The new bridge
termi¬
temporarily
and
well
resort
Mountain
Pocono
point north of Scranton.
Ultimately, it will be extended to
nate at
Altemose,
S.
the
sections
Fidelity-Philadelphia
of
Shipbuilding contracts
kind
people in America, he
only
share of
and
issue
historical
and
as
access
easy
reach
to
Three Fiscal Months Ended
has
a
Extension
'
secondTclass citizen, for among
all
is
—
He
stockholder.
The
proceeds from the bond sale to fi¬
nance
the 110-mile Northeastern
With First Southern Inv.
equal
under law for people of
of every creed, and of
justiee
use
First
largest single piece of financing
by
the
Pennsylvania Turnpike
Commission. The banking syndi¬
cate offered the bonds publicly at
195^.
GREENSBORO, N. C.—Newton
C.
Federal tax poli¬
believe
had total
(Special to The Financial Chronicle)
•
18
will
Commission
Co. Inc., and The
Corporation.
motorists
com¬
McDaniel Lewis Adds
possible.
past
company
$7,639,010 for
least'be
the
The
Ingen & Co., Inc.;
&
Boston
Turnpike Commission.
compared with operating reve¬
nues of $30,781,393 and net income
staff
for
Blyth
proceeds from sale of the bonds to
officials
of
the
Pennsylvania
operating revenues of $31,221,315
and
net
income
of
$7,448,837,
Jefferson
"So
area
prises 90,000 square miles with an
estimated population of 448,000.
exterminated
as
over
& Co.; B. J. Van
affording
routes,
Superior.
a
para¬
entirely, should at
discouraged as thoroughly
also operates water
central steam-heating
a
tured gas
were
economic
gas
and distribu¬
in Montana.
systems in Missouri and Superior,
treated
site—a dangerous pest who, if not
en¬
principally in the genera¬
tion, purchase, transmission and
distribution
of
electricity
in a
bill,
though he
turned
marketed the bonds
a
check representing
the
Power Co. is
Montana
gaged
rep¬
resenting a very small fraction
of his original investment.
that
group
ranging
sylvania and New Jersey Turn¬
par, and at spe¬
pikes.
cial
redemption prices receding
The presentation of the check
from 102.66% to par, plus accrued
was
made in the board room of
interest in each case.
prices
redemption
from 105.66"% to
lar
The company
"And
so, in this
process, the
savings of the investor generate
the new purchasing power which
enables consumers to buy the new
product; and later on—much later
on, in most cases—the investor, if
he is lucky, will also share
in
the regards of the enterprise by
will
bonds
subject to redemption at regu¬
be
PHILADELPHIA, Pa. — The of Highways, Edward L. Schmidt,
phase of the recent public ex-officio member of the Turn¬
offering of $233,000,000 Pennsyl¬ pike Commission.
vania
Turnpike
revenue
bonds
The Turnpike Commission early
was
completed here on April 29 this month awarded the bonds to
when representatives of the large a
syndicate
of 382 investment
nationwide
investment
banking firms headed jointly by Drexel
final
R. I. FLETCHER, Financial Vice President
26
The Commercial and Financial Chronicle
(2006) ■/,
and
count
*■ «■ a,l»" installs Window Quote Board
Repeal Ihe Silver Purchase laws
By REAR ADMIRAL DONALD J. RAMSEY
(Ret.)*
their investments, unless)
program
Commenting
i
raise the
f
the
on
they have come to the conclusions
of the "Silver Bloc" in Congress to
moves
price of the metal, Admiral Ramsey
Treasury buying of silver at
that
fixed price for monetary
a
Says present silver purchase laws give subsidy to
purposes.
silver
T
have
with
the
asked
to
outlook
discuss
for
silver.
picture at this time is
fused
Th
been
you
The
producers, and prevent
and
el
the outlook
is
con¬
ing a r o u n d
again. There
bill
a
be
that
purchased for
those
are
in
solution for the
which,
have
law,
if
into
still
talk
who
y.m
•({*<
•*:
•-
point for
it 'l»
I
by
fall
to
producers.
some
for silver esti¬
subsidy paid at the
mated
be
monetary
$6.50
producers
are
around
ounce
per
should
as
compared with
the
I
J
YORK
I reminded
85y4 cents per
Donald
J.
so-called
Ramsey
the
you
"free
last
in
sent
-W ■'O/A.'A
'*»»»»■
silver
the
despite the fact that
CHICAGO, 111.—The "man-in-the-street" gets
from the investment business!
the
Treasury
billion
law
must
has
now
of
ounces
valued
be
nearly
2
silver which
by
approxi¬
at
mately $2i/2 billion when today at
the open market price it is worth
only $1M» billion.
Nearly all economists, bankers,
and
those
who
know
the
silver
picture recommend that the Treas¬
stop buying silver.
In 1950 the Board of Governors
ury
of
the
Federal
Reserve
System
officially stated that repeal of the
silver purchase laws would be in
the
public interest,
in
1950
a
committee
"free
which
Douglas and Flanders
Senators
were
mem¬
silver"
against
who
the
The
until
scure
laws
other
some
monetary
cluded that
silver
They
purposes.
even
as
subsidy the
a
purchase program
fective
because
it
an
no
aid
to
aid. To¬
producers of silver
are
who receive
de¬
was
granted
producers who needed
day there
con¬
subsidy of 5x/4 cents
ounce, while their earnings in¬
dicate
a
for
need
no
For
instance, one
pi over 3 million
to
the Treasury
Committee.
enacted
in
1953—about
1.0% of the U. S. production.
earnings
of
this
company
The
provide
a
need,
company need a sub¬
The silver produced by this
-company is solely h by-product.
If it received
this
ver
nothing for the sil¬
would
company
in pretty good
remember
shape.
that
silver produced
still
be
It is well to
about
75%
of
all
in
this country is
a by-product in the
production of
copper, lead and zinc.
In
1950 the
Treasury
ment
Depart¬
it
would
not
object to the
enactment of legislation
repealing
the silver purchase law. It is
not
conceivable that the present Treas¬
officials
ury
would
change this
light of the Re¬
publican Party Platform for 1952
position
which
in
called
policies.
icies
the
for
The
are
sound
present
unsound
monetary
silver
from
pol¬
took
one
every
penny
day
miss it—but this is
ous
a
of
your
very
not
danger¬
John
Stock
subsidy
and
regard¬
prevent
free
a
S.
300
Five
guests
dinner
at
of
attended
the
The
Stock
Exchange
have
maintained
bers
who
seats
for
ounces
been
*An
of silver
forced
to
address
nearly 2 billion
the Treasury hJs
accumulate, it is
by
the
Mirror
Admiral Ramsey be¬
Manufacturers' Associa¬
tion, Washington, D. C., April 23,
1954.
people that
be serviced properly, and in
with
investment
an
constant
a
source
of
business, then there are certain
qualifications which you must find
your
going
to
prospects if
build
such
you
are
loyal
a
clientele.
their
Are
the
should
markets
the open air on Board Street
prior
to June 27, 1921.
Leonard
of the
man
C.
Greene
was
exchange Chairman John
guest.
a
Chair¬
affair which included
He
J. Mann
assisted
was
by
George J. Bernhardt, James R.
Dyer, Henry C. Hagen, Charles
Leichner,
Edward
A.
O'Brien,
Milton
E.
Roth,
Reiner, Frederick J.
Steinhardt,
Jack
Milton
you
ideas
SAN
ments.
If
now
Frese,
associated with
1253
San
Carlos
Avenue.
you
(Special
fellows
more
is
Pierce,
Fenner
-
Calif.
with
—
Merrill
&
Beane,
Roy
won't
analytical
for
go
you
any¬
than you will for them. Seek
do
can
are
business
with
responsive to
—don't waste
(If
you
friendly
person
the
on
others.
and
will find that
you
much
people
half
personality
adaptable
an
this won't be
people who
your
time
are
—most
of
problem
a
willing to meet
— it's
a
pretty
are
way
C
up
a
reputation
in
man
your
Seek out the people who are
interested
in
preserving
their
capital,
improving
who
lators
T.
build
investment
an
want
on
to
build
income,
up
solid, long-term basis.
point in trying to
clientele among specu¬
a
are
can't
only
build
speculative
is
looking for
a
clientele
securities
quick-sand
mirage to think that you
way.
their
no
who
It
their
a
is
tips—you
with
growth,
Now
a
any¬
and
can
a
turn
or
they
building
in
it's
all
should
up
a
go;
to third
come
we
ment
of
Good
investment
be
such
a
Grade
your
A
what
I
found
written
we
are
later
out
another firm
time
my
as
I fortunately sent
letter, and the very fact
analysis was indicative of
conscientious
effort
and
up-
The four ingredients of success¬
clientele building are:
Find
ful
the people who:
You
work
can
mentally,
with—temper-
..
That
are
That
Investors,
you
can
see
by appoint¬
customer.
your
It
means
a
knowledge of his objectives and
his thinking. It is necessary that
you have the available time to sit
down
together
and
that will be
plan
a
as
income, more stability of his
capital, more growth, whatever it
may
be, get it down on paper.
See what he owns, understand his
needs for living, get in there and
that
him
he
from your business
can
able
can
first
time
means
see
and
more
benefit
can
him at
a
a
(Special to The Financial Chronicle)
LOUIS, Mo.—John J. Maloney has become associated with
Edward D. Jones & Co., 300 North
Fourth
Street, members of the
New
York
and
Exchanges. He
Midwest
Stock
formerly with
Scherck, Richter Company as an
analyst.
was
F. I. du Pont
Admit
to
Francis I du Pont & Co., 1
Wall
City, members
of the New York Stock Exchange,
will
admit
Harry A. Pujals to
partnership on May 15.
Street, New York
Gruss Co.
five
again I have
principle-.applied to a-
to
Admit
Arthur B. Cohen will become
a
partner in Gruss & Co., 52 Broad¬
New York City, members of
way,
the New York Stock
Exchange, on
May 13. Carmine J. Teti withdrew
from the firm
April 30.
E. F. Hutton Adds
favor¬
and
(Special to The Financial Chronicle)
that
KANSAS
minute
CITY,-
A. Hankins is
interview.
Time and
con¬
relationship.
place,
than
only gain their
ST.
show him that you can
help him overcome the burden of
making important decisions, that
you can improve his tax status,
you can increase his income, you
can
reduce his speculative
risk,
you can add growth to his stag¬
nant or even retrogressing invest¬
ments, but you can't do this unless
you
not
With Edward D. Jones Co,
more
show
can
pro¬
satisfactory
to your client as you can possibly
develop over the years. If he is
a
person that likes you and you
like him, if he has the problem of
gram
you
fidence, but keep it.
require¬
prospect.
results
requires
meeting of minds between you
You
area.
develop
Lynch,
311
a
out people that will like you. You
There
Financial Chronicle)
DIEGO,
Wollan
Street.
to The
friendly and
will find that
are
person, you
taciturn and coldly
and
With Merrill Lynch Firm
SAN
common
warm
the
as
CARLOS, -Calif.—John G.
G.
thoughts
regarding
other things in life besides invest¬
Try and
to The Financial Chronicle)
Chichester is
some
good world.)
Joins Herman Frese
(Special
have
in
others
Streicher and Francis X. Gaudino.
about
no
your
and
market's
him,
my
said, "Sell them and then
Measure up in high standards of
personal accomplishments so that
background to the days when the
predecessor, the
New
York Club Market, functioned in
their
4,700
on
term
and
trace
take
laid
stocks
ment,
the
be
to
He
have bought for income and long-
like
who
mem¬
take
is
a
stability to be
expected. People should have a
portfolio of securities that they
brokerage
bers
many
There
over.
a
comprises
more,
century
a
clientele based
portfolio, in order to qualify for
clientele of investors.
Ingredients
prospect
a
speculative securities. For
interested
Here
Your
mem¬
the
going
am
cursory
review,
there
was
no
question about who was going to
get the business.
while you may go along famously
but when business conditions or
hundred
several
said,
that
for
to-date facts I gave him, and that of
my
competitors was just a
out and establish
upon
came
analysis of his list at the
that my
If
a
profitable
and
pleasant
relationship is to be established
sort
of
person
that is tempermentally geared to go along with
you. That means, he likes you, you
of
I
he
and
you
various
talk
an
him
(Article 2)
club, composed of
quarter
a
of
we'll
Clientele Building
among
in¬
and
desk and
the
that
an
thank
to
suggestion."
shares
By JOHN DUTTON
Park-Shera¬
ton Hotel.
H.
letter,
same
club
the
want
When
put out his hand
your
Securities Salesman's Corner
man
Twenty
announced
members
their
&
he
"I
for
asked me
to my office and
arranged.
was
in
Exchange
come
that he had
retufn^will supply
McDermott, American
American
as
it
with
Exchange
President,
Club
or
York Stock
and this prospect
going to buy."
assets
view of the
industrial, utility, and
each hour, seconds after they are
the board will show the New
hourly volume.
monetary point of
a
every
might
appear
of his position with certain
if he could
Dow-Jones
un¬
philosophy.
In
fore
out
you
will
averages
the
the averages,
can,
of view.
It is sometimes
claimed that the silver
purchase
laws are only a little
unsound—
"that the subsidy is trivial. If
some¬
one
addition,
earliest
are
A. S. E. 5 & 20 Dinner
point
pocket
the
and
Several days later my telephone
glance what the market leaders
be
market for silver.
officially took the position
that
at
and
of
terim
this
In
a
Allyn board, designed and manufactured by The Teleregister Corporation, will show the day's open, high, low and last
for each stock, and also the
preceding day's close. In addition to
man
must
These laws
view,
less
creased from about $86 million in
1952 to over $88 million
in
"Does
doing.
tell at
can
Currency
bill
law
from
about
sidy?
into
sound
in¬
1953.
This
possible time.
of silver
ounces
and
over
rang
passerby
subcommittee of the
a
Banking
for
me
hours
14
recommendations.
a
before
asked
spent
resume
The
ators
Douglas,' Green, Kennedy,
Pastore, Purtell and Saltonstall, is
company turned
street-level win¬
a
made,
ever
He
I
the
high in
vidual
Bush, together tolfli' Sen¬
senator
subsidy.
any
quotation board in
totaled
was
period analyzing that
checking each, indi¬
item, as to risk, growth
factors, income return, latest de¬
velopments on individual com¬
account
it.
bill to repeal the sil¬
purchase laws, sponsored by
now
for
electric
I
two-week
a
released in New York.
do
to
automatic
railroad
then
happening. It is the
S. 2555,
when
account
figures.
comments.
the street who pays for
in
and
be helpful.
of about 35 Se¬
sidewalk
ob¬
even
six
ipight
list
a
Commonwealth Edison, Sears Roebuck, Standard Oil
(Indiana), American Telephone & Telegraph, U. S. Steel, and In¬
ternational Harvester are displayed on the
board, so that the
something for silver—they always
have.
Every
individual in
this
country must be alert to prevent
this from
that
in
Electric,
purchase
which
in
way
him
sent
panies. Finally I sent him a sum¬
marized,
boiled
down,
factual
are
silver
repealed and
are
Senate
silver
the
is
service
new
will go into service
Instantaneously and accurately, the latest New York Stock
Exchange quotations on such stocks as General Motors, General
those
silver
mighft
today.
the silver producers will think of
bers, recommended that the Gov¬
buying
for
C.
An
force up the price of
outlook
A.
dow, the first such installation
This
of
a
will be able to get
now
merely by glancing at one of the La Salle Street windows
Allyn & Co., Chicago—headquartered investment firm.
averages
of
buffer
a
Investors
up-to-the-second quotations on 14 leading stocks and the market
silver.
ernment
cease
has. been
onslaughts
would
ver
sub¬
congressional
of
dollars, quarters and dimes.
he
interested
was
curities
as
Treasury which is available to in¬
interests dustry at 91 cents per ounce. This
exploit every opportunity for ob¬ free silver supply is rapidly being
taining a higher price for silver. depleted as it is used to manufac¬
They never cease to attempt to ture subsidiary coins, viz., half
more
C.i.< r,M
He
i'?iunce!
}/: The silver-producing
persuade the Treasury to purchase
list of any
a
'
of the
year
prospect that \
a
in, thatfc
reports and information would be
or
amounts the
silver"
of
stocks that
the
own,
a
our
basis
same
heard
all
and
If the silver
entitled to aid, it
on
had
thought bought securities. I sent
him a short letter and suggested?
that if he would send
other commodity.
every
present
be
of
expense
up
I
WFEST O80TATI0IS
DIRECT FROM IEW
system.
to
if it is worthwhile to
regular¬
with all that I
that is necessary in my work,
can
wind¬
is
and sometimes whera *
me
wonder
I remember this incident.
The
It
;
.
<?•
read the financial papers
some
metal producers.
competition will fall
ly, and to keep
difficulties which
encountered
base
if you don't:
know your
bring you new-
will
it
two
pur¬
present silver subsidy is a
price
a
been
of the
would
call for
any
job for theiru.
a
power
by the wayside. I have in my files
letters that have proved the
silver
more
■'.ft, ;
There
such
accounts and
pose.
Congress
enacted
business
glibly about doing something for
silver.
The
producing interests
still talk about doing, something
for silver in order to help produce
copper, lead and zinc. This is no
bloc is prowl¬
is
would
obscure.
silver
conceivable
not
talking to someone-
are
do
parade it. But if you
free market for silver.
a
can
Knowledge is
r?'/
I
me.'**
*»>•'.
ggw;
they
who
end of
urges an
has developed satis¬
it
factorily. Sometimes you have to
be a bit ingenious—people are not
going to tell you the things yom
should know in order to plan and.
Legislative Counsel, Silver Users Association
■i*
Thursday, May 6, 1954-
...
seen
this
E.
F.
new
.ac¬
West
Hutton
now
&
10th Street.
Mo.—Charles
affiliated with
Company,
-
,
111
.
;
'.
Number 5322
Volume 179
Bonds Offered
nationwide
A
Proceeds
sale
of
bonds will be used to finance
of the
struction
the
state.
the
mile
A
of
the
Reserve
REPORT
the Enabling
!
v
con-
changes.
to
the
turnpike
fall
of
Authority,
xhe turnpike will
wide
lanes
will
V
wiu
It
0?
o££er
choice
a
with
Route
Wilbur
a
CONDITION
Broadway, New York 15,
the
at
of
c ose
published
the
of
in
Federal
business
Cross
with
Thruway
meets
Highway.
the
New
trict
pursuant
Federal
the
to
Reserve
Act.;-
banks,
including
+'//*•
and
obligations,
,
bentures
eral
Lo
1,186,148.14
Bank)—.,—
Re erve
(includ¬
^nd discounts
ns
.bank
liability
this
to
:
; ;
include:
standing
3,750,030.89
assets—1,342.296.54
Lawrence
$436,697,686.00
LIABILITIES
of
of
bank
a
eral
holding
a
which
Reserve
is
&
Co.;
the
of
$281,659,799.77
corpo-
"rations
,
'
12,518,496.44
—
of
United States
Government (including
Deposits
'postal
with
Deposits
and
po¬
checks,
56,607,643.53
-
$383,852,769.22
Bills
-
borrowed
'and
13,372,200.37
executed
account
for
of
this
by or
bank
4,142,591.80
3,670,892.54
ACCOUNTS
9,000.000.00
16,000,000.00
6,659,232.07
—
1
:
profits
owned
are
31,659,232.07
COUNTS
the
of
value),
bank
bank:
dend
with
COUNTS
*This
$436,697,686.00
-
consists-of common
value of $9,000,000.00.
bark's capital
stock with total par
MEMORANDA
to
for
other
purposes
.
A.
Delanev.
of
the
I,
P.
Comptroller.
hereby
iS
true
E. C.
President and
above-named bank,
Vice
MARINE
do
A.
Sworn
21st
is
to
day
G.
BAYARD
TEXTORJ
58i/2
1%
63%- 58%
351/2
60
the
to
871/4
subscribed
and
&
46%
+
2%
771/2
+
9%
88
543/s
+
3%
591/8- 55
32
28
sions
as
the
of
of
AnrjJ
Federal
York.
ated
American
__
+
4 V
32
+
5
67 %-
62%
361/4
_
Fire
323/4
+
31/2
36%-
32%
38%
152
standing
Howard,
richs &
Public.
of
Kind
bank,
registered
known
to
and
The
of
Tne
of
New
York.
Mid¬
Fiof
Stock
be
owned
bv
bank
di¬
rectly or indirectly (par value), $299,300.00,
I, JAMES M.; KELLY. Secretary i of FI¬
DELITY
SAFE
DEPOSIT
COMPANY OF
do
has
that the
to the beet of my
solemnlv
—
George Mcaffiliated
23rd
day
to
of
1
and
swear
April.
DETROIT, Mich.—Arnold Barill
Emanuel have be¬
come affiliated with B. C. Morton
&
Co., Penobscot Building.
J.
me
this
+
4%
39%- 35%
1%
51
71%
61
+10%
U. S. Fire
421/2
38%
+
26
25%
+
U.
S.
Fidel.
&
Guar.-
-
46%
71%- 58%
44
4%
%•
-
373/4
273/4- 25
.
outstanding gain in the group has been that of Continental
Continental
the
gains
Insurance
are
more
U.
and
Public.
S.
Fidelity
Guaranty.
&
Most of
However, prices of three stocks are
modest.
actually below year end quotations.
general market, some of the electrical equipment stocks
In the
well
as
and Westinghouse
Electric
General
as
has
have
been the most
International Business Machines has also
General
Motors, Allied
Chemical, duPont and
,V'".
such
as
Chrysler, Johns-Manville, American Tobacco,
International Harvester,
International Nickel and Woolworth have
done little.
In several instances current
the
quotations
are
significantly below
prices.
not
only has
different
the
been selective with respect
market
it has also
groups,
within each group.
selective
been
as
to
stocks
Once again it points to the necessity of careful
analysis and selection of investments.
'
COMPARISON
(Special to The Financial Chronicle;
Simmons
has
been
Calif.
added
—
Ray
to the
.
16th Street.
2200
17 N. Y.
of INDIA. LIMITED
to
the
Government
K.enya Colony and
Head
Office:
ANALYSIS
City
Bank Stocks
in
Uganda
First Quarter 1954
26," Bishopsgate,
London, E. C. 2
Branches
India,
in
Pakistan,
'
Ceylon,
Kenya, Tanganyika,
Zanzibar, and Somalia
Copy
on
Request
Aden,
land
Richard Harrison Adds
AND
NATIONAL BANK
Uganda,
staff of Richard A. Harrison,
DALLINGER,
Notary
35%
+
Burma,
1954.
JOSEPH
97
-
35
and Dorene D.
SACRAMENTO,
JAMES M. KELLY.
before
41
401/4
Authorised
Laird, Bisseil & Meeds
Protectorate.
£4,562,500
Capital.
Paid-up
Capital
Fund___
£3,675,000
Members New York Stock
£2",281,250
Reserve
subscribed
41/2
39%
Bankers
Chronicle)
knowledge ana belief.
...
104
51
to
become
(Special to The Financial
affiliated
statement is true,
83
■
45%-•41
1%
1%
+
-
38%
-
94%-
+
361/2
-139
-
Springfield F. & M
Chronicle)
Two With B. C. Morton
out¬
of
YORK,
—
-
42'
Security Insurance
Thus
Draper, Sears
& Co., 79 Milk
Street, members of the New York
and Boston Stock Exchanges.
of
degree
name
above
44
41
156
1%.+
+' 6%
101
St. Paul Fire & Marine
■
with Draper, Sears
in
NEW
Insurance
year-end
BOSTON, Mass.
business
Marine
New
•421/2
IO21/2
New Hampshire Fire-
Stocks
Labouisse, FriedCompany, 222 Carondelet
Connell
rapt*
shares
bank:
with
82%
u.s. steel.
Weil,
Joins
Report
wicn
of
3.000
by
Company
relation?
or
Act.
Company
the
88%
officer of
ORLEANS,, La. — Robert
is now connected with
(Special to The Financial
Deposit. Manner in
organization is affili¬
owned
are
Trust
an
Safe
member
2.9?3
was
P. Howard
a
aliniaced
Y.
Insur. Co. of No. Amer.
+
-
41%- 36%
+ 12%
'
271/a
-
•
%
—
139%
39
Phoenix
76
-
671/4 //;,:• 621/4
__
401/2
(Special to The Financial Chronicle)
OF NEW YORK, New
is
In the past,
Building.
Fairbanks
NEW
this
me
P-*tvs>t.tw
of
N.
above-named
with
of
Trust
York.
affiliate:
control:
land
v.«Kh
Midland
New
this
which
Y..
«.
Marine
Eldon J.
associated
Street.
Reserve
1q54.
15
—
become
BE'RRYMAN,
affiliate
an
51%- 423/4
381/8
(Newark)
spectacular performers.
bsnk which
is a member of the Federal Reserve System,
oublished
in
accordance
with
the
provi¬
of
96%
-
863/4- 72
+ 103/4
58
Fund
such
Treas¬
GRUEN.
before
126
751/2
Home Insurance
done
1Q54.
R.
30
-
371/2- 33%
| + 21/2
+30
;
96
126
49
The
Howard, Weil Adds
belief.
C.
—
33
;
861/4
dena.
the above
best
of my
Notary
Report
DELANEY.
BLAINE )
F.
POPE ^Directors
G. C.
Surety
Insurance
Joseph E. Morris & Co. of Pasa¬
that
swear
true,
of April,
Sworn
JAMES
271/2- 25%
CORPORA¬
MIDLAND
solemnly
statement
.
P.
Correct—Attest:
of
information:
President
Gruen, Vice
of
bank
certify that the above statement
to the best of my knowledge and
Mr.
fully relations with,
affiliate bank (divi¬
with
has
izens Bank
affiliate (par
Other
disclose
On deposit
affiliate
$19,622,731.19
belief*
1V4
Casualty. Other substantial increases are shown by Hartford Fire,
with John M. Barbour & Co., Cit¬
account V none.
nancbl
p'eriged or assigned
secure
liabilities
and
Assets
PASADENA, Calif.
Fairbanks
Group.
Stock
bank:
by the
owned
$8,958,840.00.
to
Midland
Marine
relations
affiliated
of
CAPITAL
AND
+
With J. M. Barbour
(Special to The Financial Chronicle)
Midland
affiliate
York,
LIABILITIES
AC¬
TOTAL
Mid¬
which
in
Marine
by
Security Traders As-,
sociation.
15
which is the holding company
DEPOSIT COMPANY
AC¬
CAPITAL
TOTAL
26
32-
Jersey,
Marine
Manner
$405,038,453.93
,TOTAL LIABILITIES
Undivided
The
with
HOMER
Capital *
Surplus—
New
E.
-
CAPITAL
City,
Company.
knowledge and
outstanding
liabilities
Other
bank
TION,
money
Acceptances
Rolding
urer
for
liabilities
other
El Cinco de Maio by
on
the National
1954,
above-named organization is affiliated with
member bank, and degree of control: 597,256 of the
600,000 shares outstanding of
I,
rediscounts,
pavpble,
and
ate:
necessary
17,222,825.49
etc.)
DEPOSITS
TOTAL
Federal
CORPORATION,
Jersey
affiliated
Financial
2,971,888.47
Deposits of banks
j.
Other deposits (certified and
"officers'
accord¬
the
of
provisions
in
Report as of April 15,
MIDLAND
Place,
is
published
Corporation,
subdivisions
litical
the
MARINE
the
12,872,115.52
savings)
of States
271/4
591/2- 56%
;:r
Westchester Fire
Fed¬
Trust
Comany
of New York,
New
York, N. Y. Kind of business of this affili¬
individuals,
and
of Weeden
Co., Los Angeles, celebrated his
land
and
corporations
partnerships,
Vice-President
and Resident manager
affiliate
company
member
a
System,
{Reserve Act.
which
Time deposits of
Pulliam,
Larry
flying to Honolulu where he spent
the
evening at a party at the
Hulahulani Hotel with a group of
friends.
V
Mr. Pulliam is also Treasurer of
Exchange
deposits of individ¬
partnerships,
American Insurance
Hartford Fire
Pulliam
thers;
of
uals,
S.
birthday
ance
Demand
2
Hanover
——
ASSETS
1
+
Great
Co.; Glore, Forgan & Co.; Gold¬
Sachs & Co.; Halsey, Stuart
Co. Inc.; Harriman Ripley &
Co., Incorporated; Hornblower &
Weeks; Kidder, Peabody & Co.;
Report
Other
TOTAL
+
291/2
Insurance
Glens Falls Insurance
;
acceptances out¬
on
561/4
31i/2
Firemen's
203,302,326.39
ing $172,859.01 overdrafts)
Customers'
571/4
——_
Agricultural
and
&
1954
Price Range
Change
|
■
•
Fireman's
Canada
Stanley
Points
12-31-53
5-5-54
•/:.
'
■
.
'
|
Morgan
obscures the
comparable basis.
Fidelity-Phenix
Kuhn, Loeb & Co.; Lehman Bro¬
Fed¬
of
on a
Employers Group
(including
stock
"Average"
In other words, all stocks
below, prices at the end of 1953 and as of May
together with the price range for the current year and
change so far in the current period are shown for 25 of the
leading fire and casualty stocks. Prices have been adjusted for
stock dividends in the case of Employers Group, Fireman's Fund,
Hartford Fire and U. ,S. Fidelity & Guaranty, so that figures
Continental Insurance-
&
2,179,775.04
——
stocks
Birthday
out¬
Cape Cod
the
on
group.
are
Aetna Fire
Massa¬
and
index
the index would indicate. Indeed, some of
man,
4,907,009.56
subdivisions—___
bonds, notes, and de¬
$750,000.00
to
as
Continental Casualty..
&
and
States
Maine
well
as
American
Celebrates
traffic dis¬
a
new
the
■
Dillon, Read & Co. Inc.; Drexel
'/'i/
and
political
Corporate
+
99,505,583.22
of
128,
miles
new
likely that another
1954
Boston
Island.
group
items
guaranteed
Obligations
Route
southward
Rhode
reserve
direct
Larry Pulliam Again
points
10
is
the table
In
5,
are
the turnpike
the
it
Bid1 Price
At West
Other firms in the underwriting
Government
States
Other
•/,;
of colIection-_^$115,524,516.22
in process
United
\
about
with
Hampshire,
other
cash
and
T
tribution point northward to New
and
ASSETS
balance,
connect
Boston
chusetts
•
with
balances
Cash,
1954,
with a ca!l made
Bank of this dis¬
provisions of the
:
'
will
so
actually lower than at the end of the year. This
which make up the DowJones Industrial Average and "Barron's" insurance stock index.
Pomeroy, Inc.
State
Buffalo
to
side
System,
15,
&
overall
changes within the
the
York
At its eastern end,
New York,
April
acting groups
.
is true both with respect to the stocks
Dominick;
W.
E.
Co;; The RobinsonCompany, Inc.; L. F.
&
Co.;
Schoellkopf,
Rothschild
far this week
so
the
course
shares
the
B^0n'
Humphrey
posed New York Berkshire Thru-
OP
Reserve
on
accordance
the Federal Reserve
by
Hutton
tw0
Of
individual
A. G. Becker & Co., Incorporated;
Dominick
&
Stockbridge, the western termin¬
us, it will connect, via the pro¬
>any of New York
Comp<
120
o£
advances
have not done
Co., Barr Brothers & Co.;
at Sturbridge
which
15
west.
member
enson &
routes to New York City includ-
The Marine Midland Trust
a
++
l
t
<
>
G* H* Walker y & Co.; Wood,
Struthers & Co.; American Secu-
to
j
'
.
r?'-
*
^eynoias &
be four to six
and
north
way,
of
f+0V
' 1m
Framingham,
south
o£
north
o£
Worcester.
Springfield and south of Holyoke.
District No. 2
OP
open
of 1956
travel in the latter part
the
as
better
,
During the same interval the Dow-Jones Industrial Average
has risen by about 13.5%.
At the end of 1953 the Industrial
' Average stood at 280.43. This index also has risen steadily and on
April 29 reached a new high of 318.22. A further advance this
week has carried the Average to a new high close to 320.00.
&
Co.; Braun Bosworth &
Witter
and
1954
be
should
Co.; Hayden, Stone
,
Co.; Tucker, Anthony & Co.; Dean
Construction is expected
in
start
the
cars
at
Haupt &
Au-
■
Construction p!ans of the au_
thority call for a limited access
superhighway with 14 toll inter-
ing the connection
callable
in the
Turnpike
the
creating
thority
_Ttor traffle artery
option
the bonds is exempt
on
provided in
as
Act
New England.
are
the
corporated; R. L. Day & Co.; Ira
the initial turnpike will cioss the state laterally
and connect with practically
bonds
of
one
setts
for its fun length
The
been
far this year.
so
high will be established.
the
passenger
as
have
tered
multipurpose 123
available
to
well
as
stocks
general market
& Sons; John Nuveen & Co., In¬
expressway,
trucks
Insurance
in the
Insurance Stocks
—
& Co., Incorporated; Alex. Brown,
Turnpike,
highway in
toll
This Week
opinion of legal counsel, and from
state income taxes in Massachu-
initial portion of
modern
JOHNSON
E.
H.
& Webster Securities Corporation;
Bear, Stearns &: Co.; Blair, Rollins
Interest
_
from Federal income taxes,
Massachusetts
new
the first
By
In spite of the fact that insurance shares are customarily
thought of as stable investments, the index of insurance stock
prices as compiled by "Barron's" for the current year has advanced
by approximately 16%. At the end of 1953 this index was at 198.03.
It has risen persistently in the current period and at the end of
last week was 229.43. Most of the stocks in the index have regis¬
.
the
from
Bank and Insurance Stocks
& Burr, In-
corporated; C. J. Devine & Co.;
Equitable Securities Corporation;
Estabrook & Co.; Hemphill, Noyes
&
^ee Higginson'Corporation; Merrill Lynch, Pierce FenD,er & Beane; Phelps, Fenn & Co.;.
R.'W. Pressprich & Co.;.
Salomon Bros. & Hutzler; Stone
premium decreases gradually, beginning May 1, 1964 until May 1,
1984 when the bonds will become
callable at par.
;*+■+>-:•
Inp, and Tripp & Co., Inc., made
public offering on May 4 of a new
issue
of
$239,000,000 Massachusetts Turnpike Authority
3.30%
turnpike
revenue
bonds,
series
1954.
The bonds, maturing May
1, 1994, are priced at 100% and
accrued
interest to yield
3.30%
to maturity.
:
The issue comprises the largest
amount of revenue bond financing
for a Public project in New England history.
■
...
Coffin
Incorporated;
whole at any time on or after
May 1, 1962, or in part on any
interest date on or after May 1,
1959 at a call price of 103. The
of 381 in-
group
banking firms headed
by F. S. Moseley & Co., The First
Boston Corporation, Blyth & Co.,
& Cur¬
t
Smith, Barney & Co.; Union
Securities Corporation; B.
Van..;
Ingen & Co. Inc.; White, Weld &
Co.;, A. G. Allyn and Company,
Yield 3.30%
at 100 to
vestment
..
tis;"";
by Nationwide Banking Group
Priced
Webber,..Jackson
Paine,
$239 Million Massachusetts Turnpike Revenue
27
(2007)
The Commercial and Financial Chronicle
...
The Bank conducts every
banking
and
American Stock Exchange
BROADWAY, NEW YORK J, S. Y.
(L.
A.
Telephone;
description of
exchange
Bell
business.
Trusteeships and Executorships
also undertaken
Exchange
Members
120
I-
BArclay 7-3500
Teletype—NY 1-1248-49
Gibbs.
Manager Trading
Dept.)
Specialists in Bank Stack*
The Commercial and Financial
(2008);
^8
capital stock from $500,effective April
common
000
to
$750,000,
21., $50,000
News About Banks
made
by
of the increase
stock dividend
a
$200,000
by sale of
*
CONSOLIDATIONS
NEW BRANCHES
Bankers
and
OFFICERS, ETC.
NEW
REVISED
The
#
burgh,
tive
Pa.,
April
from
terday
lease yes¬
100,000 square feet of
in the Socony Vacuum
being erected' on a 2-
on
dfloor space
building
acre
mid-town
be
for
The space
block.
will
the
ready
in
occupancy
Spring of 1956.
will
branches
largest
established
be
on
ground floor of the building
busy Lexington Avenue
and j 42nd
Street corner.
Addi¬
the
the
at
the concourse will
provide personal credit and safe
deposit facilities, and there will
be a general banking room on
that level also.
Escalators will
connect the banking room on the
tional space on
.
caain bank floor with facilities on
the concourse.
The
bank
will also
,
the
build¬
occupy
ing, comprising more than 75,000
feet which will be used to
house operating departments.:
square
*
Representing National City at
signing, in addition to Mr.
Laeri, were James S. Rockefeller,
President, and Harold M. Mills,
the
Assistant Vice-President.
for the bank
Counsel
Winthrop, Stim-
was
Putnam and Roberts, rep¬
by George Lamb, Alli¬
Choate, Walter Gibson and
ison,
resented
son
Charles
Nourse.
A.
Witnessing the brief ceremony
representatives of the mort¬
After
the
Civil
the
Bank
had
that
extent
in
War,
1867,
to such an
grown
larger quarters were
needed, so the Bank erected the
first building of its own at Canal
and Laight Streets. Growth con¬
tinued at a rapid rate and, in 1876,
the Bank moved uptown to 32nd
under
The ground
way.
Avenue
Avenue
now
—
The
'..
and
Trust
if
:
By 1927, deposits had grown to
$108,000,000, and again the
Bank needed more room. This
was
obtained by taking a considerable
amount of extra
joining building (on 40th Street)
which
the
Bank
owned.
Century Club of
City Bank of New
City
Bank
Farmers
diners present.
James
S. Rocke¬
feller, President of the bank, ad¬
members
Chairman
Hassert
briefly and
H.
membership
City's Quarter Cen¬
tury Club—those who have served
years
or
more
The
in
1937
of 254.
group
with
and
enrollment
Today's membership
re s e n
t
s
742
formed
was
total
a
totals
now
—
•3,2,655; 1,913 in the U. S.
overseas.
approximately
rep-
90,000
The Bank has assets
the
*
Mr.
%
Charles
York,
City
new
G.
President,
Savings Bank,
announced
New
May 3 the
George L. Butler,
on
formerly Treasurer, as Vice-Pres¬
ident
and
Treasurer;
and
Mr.
Frederick
H.
Morris, formerly
Secretary, as Assistant Vice-Pres¬
office and Ruth F.
sjs
The
Otto Strippel, associated with
Central Savings Bank, New York,
for
'
.
'
honored
was
Anniversary
at
Dinner
a
on
Trustee
the
of
bank
for
13
years,Mr. Strippel began his bank¬
ing career there on May 2,1904. He
was
<
years,
May 4.
A
:
50
Golden
appointed Treasurer in Janu-
1927, and Vice-President in
January,
1938. ' He
holds
the
ary,
longest service
record of any em¬
ployee ever to be connected with
the bank.
*
*
Street,
will
open
its
first
branch office at Madison Avenue
and 39th
according
Street,
to
Bank of Mi¬
J.
May 6 and 7,
Wilbur Lewis,
on
was
office
California,
Calif.,
N.
of
retired
The
Bank
of
San Francisco,
A.,
April 30, after
service to the banking
profession, 18 years of which were
spent as Chief Executive Officer
40
the
divided
date
con¬
bank
stock of $3,600,-
225,000
than
shares
$1,450,000.
it
The
it
United
Bank
of
it
Portland,
branch
in
•;/
States
National
Ore.,
Dufur
following
Dufur,
opened
on
April
of
purchase
Brothers,
Johnston
Ore.,
50
pioneer
ago, the
Bank
played
years
Brothers
important role in the develop¬
an
of
the
Dufur
H.
area.
widely
and
E.
Portland
office.
The
re¬
since
1944.
Wasco
U.
S.
when
the
lished
its
,
Mr.
National
Portland
branch
Nystuen
sistant
of
1933
estab¬
The
Dalles*'
at
was
Cashier
since
'
bank
formerly As¬
Johnston.
Brothers, having joined that
ganization in 1946.
or¬
(
/
The Dufur operation marks the
second branch added to the~U: SL'
National system since the middle
of March and the fourth new
unit
since
August, 1953.
A-.v1-
The
United
States
National
Bank, Portland, Ore., has named
Sullivan
Manager of the
Grande, Ore,
bank's branch in La
The
appointment became effec¬
April 19, according to E. (X
Sammons, President.
tive
Carleton,
known
He,
banking
field with
the
old. First> National
in
The
Dalles, Ore., in 1925 and has beera
John J.
Established
ment
Dalles
the
26
banking firm.
Johnston
The
entered
with
of
consolidated
into
in
Mr. Sullivan has been with U. S*
since
1948
and
has
consulting en¬
gineer, was President of the bank
and George McDonald was Cash¬
ier.
Deposits at the time of the
purchase were approximately $2,-
National
000,000.
who died April 3.
Rodney Cooper is
the
new
will
serve
Assistant
as
Manager, E.
C. Sammons, U. S.
President, announced.
Mr. Cooper has been Assistant
National
Continued
Assistant
as
bank's
Aetna
four
past
and
the
succeeds
Manager of
Dufur branch and Oscar
Nystuen
served
the
Manager..at
branch
half
a
late
T.
B.
*
He
Lumsdeii
L
)'■
■
*
for the
years.
*
Sir
Henry Guy Cooper, M.C.*
D.C.M., of the Anglo Iranian Oil
Co. Ltd., has joined the Board
of
Directors of the National Bank of
India
Limited, London, England,
years
the
of
16,
of common stock of the
par value
of $16 each; surplus of
$3,600,000;
and undivided profits of not lesa
on
with the
ment
bank's automatic retire¬
Rogers
program.
W.
Kim-
berling, Vice-President, will
from'page 4
Greenwood's duties
and
Vice-
as
Manager
2
Gramatan
May 3, following
from
its
First
weekend
a
present
Mr.
Greenwood's
began in
career
National
where
Bank,
he
commitments
at the
for
1910
Spokane,
remained
Old
Wash.,
until
1917
position with
the Spokane branch of the Fed¬
eral Reserve Bank.
Following a
brief military service, he joined
the
Portland
eral
branch
of
the
on
Fed¬
ffi
of
on
Jan.
1, 1936, he
Manager and
to
Mr.
.
of
in
served
three
of
Executive
preferred
of
stock
of
(retirable
The
$100,000
$100,000
value
National
City
Bank
$600,000.
effected
was
and
of
title
Bank
of
common
The
merger
the
charter
under
of
of
"The
National
City
Troy."
the
American
and
years
as
active
member
a
Bankers
of
the
Association
of
the
Oregon
during
City
serve
at
and
Bankers
the
present
Mrs. Greenwood
are
Association
time
on a
he
and
business
trip in the East where he attended
the annual meeting of this asso¬
ciation at Boca Raton, Fla.
Rogers W. Kimberling joined
the
Portland
office
The
of
Bank
of California, N. A., as Vice-Presi¬
dent
the
surplus
in
August of last
year.
He
stock
has been with the bank since 1949
$5.00
each;
when he joined the San Francisco
$2,000,000; and
undi¬
shares
of
common
value
par
vided
capital
divided into
of
profits
of
of
not
less
than
head
office
Cashier
$750,000.
*
❖
Assistant
as
In 1950 he
President.
and
was
advanced
Vice-
elected
to
Vice-
President and Cashier in 1952, the
*
position
he
held
The Suffern National Bank and
Trust Company, Suffern, N. Y„
with common stock of $350,000
and
California,
until
his
fer to Portland.
The
National
Bank
edo,, Tuxedo, N. Y., with
stock
of
of
Bank
At
Tux¬
common
$100,000, consolidated
April
charter
of
16
of
and
the
under
The
the
title
Suffern
Trust
as
and
National
date
of
joining The Bank of
N. A., he was Vice-
President and Cashier of the First
National Bank of Eugene, Eugene,
Ore., from 1942 to 1948.
Eugene,
con¬
Oregon
he served
as
County
$500,000,
com¬
the
of
both
Lane
$200,000.
ings
if
if
National
if
Bloomingdale, N. J., increased
of
its
Lane
of
*
Banking.
*
of
and
City,
Bank
of
common
the
Riverside,
stock
Desert
Calif.,
of
Bank,
with
in
New
York
transferred
and
the
Columbia
in
Brooklyn to the
Port Authority under a purchase
The
Grain
preceding
Elevator
of
gram
active
physical
Calif.,
rehabilitation,
business
promotion
and
management had made
efficient
the facility self-supporting, and it
has earned a substantial surplus
after debt service
since.
ever
property had become vir¬
tually inactive due to a series of
destructive
fires and
to
with
develop
We
an
$15,000,000
inability
changing
times.
spendfe
rehabilitation and
committed
are
in
to
construction
within
eight
including the building of
piers of modern design^
new
years,
new
and
possibly
third.
a
struction of the
first
underway
now
at
The con¬
pier i&
estimated
new
an
cost of
$6,300,000.
undertaking the Hoboken
operation, we assumed
that it:
In
would
be very marginal, barely
breaking even over the 50-year
period. And it is true that until
the
piers are completed wecarrying a loss on the old-,
piers of approximately $150,000 a
year.
However, it now appears
new
will be
that the
piers
construction
will
result
of
the
new'
in
wiping out
this
annual deficit and
putting:
the terminal on a self-supporting
basis.
Port Newark
In
1948
leased
the
Port
Authority
City
Newark
condition of the
development
ices
or
This conversion of three down¬
of
the
to
Port,
run-down
facility precluded
steamship serv¬
tonnage
the operation
Newark
of
because the
movement,
and
costing the City
approximately $400,000 per year.
was
After six years of Port Author¬
ity
management
ment
now
of
bor.
invest¬
an
contains the heaviest
tration of
rine
and
$20,000,000 Port Newark
and
new
facilities
in
Tonnage
doubled.
concen¬
improved
the
has
entire
more
Translated
into
ma¬
har¬
than
terms
of community welfare,
2,000 more
jobs and an increase of $7,400,000
in payrolls at the
facility have
trodden,
practically
bankrupt:
into
self
supporting:
projects is not financial legerde¬
facilities
main.
protection
who
of
wanted
the
to
rights
get
on
of
quate
and do their work.
Oct.
1, 1952
and
efficient
opera¬
features,
enable
tenant,
steamship companies to operate
more
economically.
A shipping
has
executive
stated
that, "Port
at least $1 per
stevedoring cost savings/3"
Steamship companies are there¬
fore willing to pay rents at at
self-supporting level in lieu of
possibly lower rents at other old¬
Newark
ton
is
worth
in
and
The
inefficient
piers.
1927 Annual Report
stated!:
that:
"Very substantial progress
in
made
1927
was?
in
building the in¬
bridges included within*
the program with which the Port:
terstate
Authority
has
been
charged
by*
the Legislatures of the two States,^
The
arose
demand for the
bridges?
because, in the words of our*
1926
The Port Authority's latest ven¬
into
the
marine
terminal
ture
on
space
tional
men
their jobs
simply providing
are
places previous¬
ly. These facilities providing ade¬
has been in the black since 1951.
a
matter of further interest,
during
the
recent
waterfront
strike, Port Newark worked its
ships without interruption. This
was
accomplished
through
our
We
not exist in those
er
As
-
modern marine terminals that did
re¬
sulted from the expanded opera¬
tions.
In addition, Port Newark
Annual
growth
for
of
poses
Report,
use
business
of
and
"of
the
the automobile
pleasure
pur¬
which
put a tax upon the
the limited ferry fa¬
when it acquired custodianship of
the Hoboken-Port Authority Piers
caacity
of
cilities
meet."
beyond their power to
Similarly, today, because
$3,360,000
through
Cathedral
ment
with
stock
ment
and
common
1949 the
By
years.
This
two
1944, when the State
business occurred
Citizens National Trust & Sav¬
with
Bank
the
County Chapter of the
American Institute
*
member
Bankers Association and
stock of the par value of
$25
each; surplus of $500,000; and un¬
divided profits of not less than
mon
First
While in
a
Bankers Association and
President
as
will have capital stock of
divided into 20,000 shares of
to
trans¬
of the Executive Committee of the
Company.
effective
Prior
na-
We entered the marine terminal
business
the
member of the Re¬
a
the
.
1934-35 term.
He is also
in
.
agreement.
stock
$600,000,
finest
Port Authority development pro¬
been
Association
the
Brooklyn terminals
the
was
At the effective date of
merger,
the merged bank will have
of
of
converted
Manager
Council
President
as
Bankers
par
$250,000),
Troy, Troy, N. Y., with
stock
and
tion.
has
and
two
be-J!
banking organizations, having
effective, as of the close of busi¬
ness, April 16, 1954, the merger
of
The
Ticonderoga
National
Bank, Ticonderoga, N. Y., with
stock
Newark
into
10
has
in
of service,
years
the Currency approved and made
common
investment
was
1, 1947.
Greenwood
terminals
empty and in disrepair, and
had been losing money during the
Vice-President and
Jan.
con¬
Our
Terminal
On
new
vigorous
program of port development and
Pier
came
Comptroller
marine
Street
During his 40
>)!
.
Office
District.
Grain
move
20
of
Port
The Bank
of
expenditures
and
the
Bank
as
Cashier,
Manager in 1920.
He
held this position until Aug.
1,
1925, when he resigned to join
at
quarters
and
rehabilitation
struction
Reserve
becoming
office.
Authority-
Past, Present and Future
banking
when he accepted a
Street.
❖
The
Avenue
Its
effective
May 1.
advanced
at
The Poit of New Yoik
as¬
fice
The
Portland
California, N. A. as
Assistant Manager of the Portland
President.
Union Dime Savings Bank
Greenwood, Viceand
Manager of the
effective
will have capital
county
*
Frederick
solidation, the consolidated bank
*
Union Dime Savings Bank, New
York, Avenue of the Americas at
40th
\
,
County Trust Company in
White Plains, N. Y., opened its
new principal Mount Vernon of¬
of
sis
Irish, As¬
Manager.
120,000
Secretary.
if
Zilliakus, Assistant
sistant Secretary, will be Assistant
into
s':
Diehl,
election of Mr.
ident and
*
r
The Metropolitan
President
$350,138,000
over
east side.
value
service years.
Empire
effective
sume
National
25
stock
doubled, as deposits passed
$300,000j000 mark in 1953.
Around-the-world
in
$750,000 and further
$1,000,000 by sale of
April 23.
to
increased to
as
April
tirement is effected in accordance
East
William
Toastmaster.
was
$500,000
new
the
000,
increased from
was
of operation for
deposits
to
reach
$150,000,000
which they did in 1943. But in
the next 10 years, this figure was
It took 84 years
Company, New York, held
dressed the
apolis, Minn.,
of
in the ad¬
space
Secretary, will be Manager of the
if
its 18th annual banquet at the Ho¬
tel Astor April 29 with some 1,700
Pinner
stock dividend, the com¬
mon
capital stock of The Mar¬
quette National Bank of Minne¬
a
President
over
Herbert
Quarter
National
York
By
:
the
of
Americas—at 40th Street.
breaking took place March 30.
it
At
solidation
a
if
tf
ami, Miami, Fla., • was admitted,
Street, Broadway and Sixth Ave-: effective April 20 to membership
nue. By 1910, the Bank had again
by the Board of Governors of the
outgrown its quarters and moved Federal Reserve System.
to its present location at Sixth
if
if
if
■ ' ■'
"
institution; Walter M. Har¬ 000,000, and more than
vey, Jr., Second Vice-President, depositors. For almost 44 years,
and John M. Gillen, Loan Super¬ the Bank has been serving
the
visor, attended for Equitable Life west side midtown area, and its
Assurance Society.
Murray Hill Office will bring the
The foundation for the building same Union Dime service to the
The
*
its opening
after
one year
Bank
had
gage
well
stock.
new
May
3,074
depositors
whose deposits totaled $201;175.26.
■were
4s
to
■
second floor of the
entire
that,
business
of
The
consolidation was ef¬
fected under the charter and title
of
"Citizens
National
Trust
&
'
the
bank's
the
of
One
effec¬
18, 1859, when' it
The Citizens National Bank of
opened
in the
basement
of a
modest
little frame
building at. Waukegan, 111., increased its com¬
mon
Canal and Varick Streets.
capital'stock from $300,000
to $400,000 by a stock dividend
Ample proof of its immediate
effective April 20.
popularity is shown by the fact
founded
close
1954.
of
$2,000,000
$2,500,000 by sale of
York signed a 25-year
stock
increased
was
22
$348,837.20, consolidated
the
Savings Bank of Riverside."
capital
The Union National Bank of Pitts¬
CAPITALIZATIONS
The National City Bank of New
and
stock.
new
£
common
was
of
Chronicle..,Thursday, May 6,;.1954
a
50-year
the
the
lease
Federal
City
of
agree¬
Govern¬
Hoboken.
of
the
strain
placed
upon
our
crossings by the postwar increase
r
Volume 179
Number 5322... The Commercial and Financial Chronicle
In vehicular traffic
we
are
York. A
project is riot economically prac-
ticable
Joint'Traffic Studies
included
un-
meets the test of cbptmuous and
•
Jersey
be
can
less that whole1 credit,framework
L We 'have also'
joined: with the
Triborough Bridge : and Tunnel
Authority to make comprehensive
joint studies of all phases of the
^•tenal traffic pattern
York-New
unless it
this credit framework, and
in
.
:
Port Authorityenter - tlieu rapidPdrtAuthority'securities ajftoririfr-inCongress for^ the1 Panama Cania^
transit system remind me of an ing to over $830,000,000. The oc- Bill, which was passed in 1902*
article on the Port Authority in casion of this speech provides a
The House of Seligman also
the May 12, 1949 issue of the Johg-'soughtjafter opportunity for participated in some of the oufe"Daily Bond Buyer"which stated nietosay,thankyou.
standing financing of the present
in part that: ? •
■
0
^
.
century. It helped to underwrite
of New Jersey and New
con-
jBtructing r a
$100,000,000 Third
Hube to the Lincoln Tunnel.
appraisal by *■ investors.
So, too, such a program must be
timed to meet the capacity of the
prudent
m the New
"Plans
.
are
-afoot
to
sell
an
is-
(of Port Authority bonds) to
COV€r the purchase of the City's "
sue
market.
metropolitan
29*
(2009)
Staten Island ferries the Erie the
Central, Jersey Central
I return to the 1927 Annual He-
New York
f^aa, ^a those of you who wonaer port to quote:
?
'Wi u6l I £111311 MdfXS United States Steel Corp. at ltd
®
formation in 1901, and in 191ftilljfh AltltlVPrQftlif
was part of a hanking group thatMliililCloCSI j|
secured control of General Mo-
UiQC
B
m
J. & W. Seligman & Co., which
started business when Lincoln
and Lackawanna Railroad ferries
and the Statue of Liberty boat
1864, Joseph Sdligman and his
brothers founded the financial
firm, and on May 1, 1869, the
company was admitted to membership on the New York Stock
Exchange.
a
prominent role in the reorgani-
was President, is celebrating two
transit facilities to relieve present . . . the deal may include
congestion and provideadequately purchase of the excursion steam"t
a
for the commuter in the future er, the Queens—Mary and Elizai6U " ThV
"S,m have been undertaken."
beth-and the Albany Night Boat,
5nnc?H^r
nrffwf
The subject of rail rapid transit Blueprints call for the purchase of
*>lndinff
Narrows
RriHtxp
hp" between New Jersey and New Macy's, Saks, Gimbels, Barney's
iwiin Rtafpn
Sfd ftrnnk" York hit the press again a few and F- w- Woolworth, all to be
tors. In the 1920's the firm played
zation of a number of railroads—
the anniversaries May 1. On May 1, amon& them the Missouri-Kansas-
"Study and planning of suburban
1
t
Sniv
ha cnirf
oorwi
rI £c!«S!I
txrifh
0„PCc
a
weeks ago when the New Jersey merged into a super-duper de-
lyn and a lower level of the
•George Washington Bridge. Belore launching the studies we discussed them in quite some detail
Meaner
With both Governor
TSe"at® Committee on Federal and partment store delux."
Int?rstate
and
dynamic
rnient
tan
traffic
of
district
and
tan
of
the
intolerable
in
move-
1007
ar,d
metropoli-
relieve
to
including
•communities,
*fon
in
each
iqqq
iJ;,in
case
in
1047
callv
We
1Q4Q
found
in
as
as
more
Ls
nas
n
wouldBe
ooerationallv
and
T?VOo„ti,m
possible
crowded
found
already
Manhattan.
that
traffic
nour
into
the
In
1953
fastest
volumes
at
'
over-
?TlHa«tSw
HKrinv^tment co¬
the
taestaMfefca
sSltratein-
.ion
Je.rs^
facilities
.
i9®1 we advised the New
.
u
7
'*
■
!
V-
placing millions of dollars of
United States government secu-
at cost not only to Tri-Continentai but to
three mutual
funds: Broad Street Investing"Corp., National Investors Corp.
and Whitehall Fund, Inc. Three
ices
the*
cPi;cfmnn
nartnnrn
fxecuTfve
committee of TrbCon-
serve
on
^entai anTThe th?L
mutual,
in EuroDe at.
time when
'mental and tne tnree mutual,,
!i
a t.me wllen funds, which altogether have assion were already underway look- the credit of this country, espe- sets 0f approximately $275,000,000.
mg to the transfer of then(opera- cially m pro-Confederate England
in j938, upon the formation of
'°"S'hv^vi ? that SL!' a,,ld Fra"c.e was poor. His Civil Unjon Seeurities Corp., of whicb
thi„ conclusion
a8ree with this conclusion.
we
growing
our
^ith
jrouseis.
nan^r
ohvsi-
dally ana oPeratlonaiiy P°ssipie>
strppt
lonHmo
th*
lto
^vould " could never be self-supporting, heavy future power requirements
simeelted
In no case did these studies who with that preliminary negotiations
he railroads dis- and the
suggested, poui
participated in
Atomic Energy Commis-
been
been
vehicles
.
amrag
brothers had risen from itinerant
fha
that u InniH hp mftrf
peddlarf.1 to hlgh iarJ.k m the
filT. £mir^hlmercantile world of New York
withnil? nrnvidfnt fnLhe ??'-i
5s,
cilities without providing foi the Civil War Joseph succeeded in
in
that while the rail ranid
ffansU fvstlm^
local
Manhat-
thrnnvh
1951
The proposed projects
not
not,
hired
a tutor for
might easily have
The Port Au- lesque issue of the "Daily Bond man brothers, he left Bavaria for ^ate company Union Service
thority has studied this problem Crier" and had inadvertently crept the United States in 1837 with cor® whkh furnishes investment
m conjunction with other inter- mt0 the dignified pages of the $100 sewn in the lining of his —iS 3«iv7»™I
ested bodies in 1927 through 1931,
regular "Buyer."
•
trousers
Bv
1860
he
and
his
research and administrative serv-
of these
purpose
We received an apology from his children,
a
who
Malcolm Forbes.
.
The
Seligman,
Horatio Alger, Jr. as
^esol"tl°n 9" the subject mtro- the Editor that this article had been one of Horatio Alger's ^stment research organization.
duc,ed, by its Chairman Senator been prepared for the annual bur- heroes. The oldest of eight Seiig- ^hat orraniSn todw tesen-
Governor Dewey. Both Governors
approved and endorsed the joint
studies.
studies is to facilitate the
defeated
Reiations
Joseph
Texas Railroad Co. and the St.
Tuis"l52? ^rai2clw0 §-ai?way
1929, J. & W. Sehgman &
£°- sponsored Tn-Continental
?10nP«nn'nAn °?ay J}fs asse^LS£
$191,000,000 and is the country 9
^,eg,10"al pla»"Ing .Cam"
ab-eari,,
rities
a
loot
,
.
that the cost of an inter- ended by saying that. Incident- War banking activities were the partners of j. & W. Seligman Co.
?tate rail project capable ot carry- a y, it would ;appear tit it the foundation of the present tirm.
^re officers and directors, the
i"g standard railway cars into number of Port Authority. bond
In tllose days America was de- firm withdrew from the under«p 55% of the trans-Hudson trafManhattan, with adequate real esi
i
illirnpi pendent for its growth on foreign writing business. Union Securijfic on weekdays and 70% on Suntate1.a"d te^lna^1 5-ojnstruction quire d special financial journal capital and the firm had inter_ tieg> a wh0lly-owned subsidiary
•days.
We hope to "bend" this would be in the neighborhood of for the daily information of the national interests almost from the of Tri-Continental Corp., now hastraffic around this congested is$300,000,000 to $400,000,000 and StreetirLtba^®jy near future. Is gtart As early as july> 1868> on capital assets of $13,000,000.
land to the north or south by ap- ttl£d the annual deficits ot such a the Bond Buyer for sale.
the day that cyrus Field's first
Partners of J. & W. Seligman
propriate by-pass routes. For ex- system would be approximately
Gentlemen, all of this was in Atlantic cable was completed, & Co., which remains active in.
Sample, the Narrows Bridge study $15»000,000. We advised the Com- jest. We thank Senatrir Forbes j. & w. Seligman in New York the brokerage and investment adis based upon origin and destinamission further that with the use and others for their expressions sent a message to its London visory fields, are Francis F. Rantion
counts
which
demonstrate
of siibway type cars the project 0f confidence in the Port Author- branch about a gold shipment dolph, Henry C. Breck, Cyril J;
that traffic between New Jersev
would involve a capital cost of ity s ability to construct and oper- that had arrived from its office c. Quinn, Stayman L. Reed, the
and the south and west on one
$150,000,000 to $200,000,000 with ate a rail rapid transit system, but in California. By the end of the Estate of Earl Bailie (limited)
Jiand and Brooklyn and New Engan annpal dSnf?r frnnnnZh We ?re nfither empire builders '60s, the Seligmans had estab- and the Estate of Frederick:
Jand on the other can be detoured ^ of $8,000,000 to $10,000,000. nor financial magicians A deficit- lished offices in London, Paris, Strauss (limited),
around Manhattan and kept out
These deficit figures are based en- ridden New Jersey Rail Rapid Frankfort, New Orleans and San
•of the congestion of the Holland
tirely on. new improvements and Transit System, as well as a defi- Francisco. The London and Paris
and Lincoln Tunnel approach svsdo n0* inciude tbe veiY heavy cit-ridden New York City Transit fjrms
Seligman Brothers
and
terns
deficits of the existing suburban System, cannot be financed with- Seligman & Cie, are still active DIJ GUlL tlU***A l%if
rpu„
Tnihnr^utyii
ic
rail iines'
in tbf limitation set upon the as independent houses. The San Ptlli vIOCK UTTCiCU Df
ifcy statute to construct a Narrows
Late in 1951 the Commissioners Port Authority s program by the Francisco firm was the forerunner
■ail-iB B'L.. A-Aim
but it^ woX have dhfi
the Port Authority met with two States m the Treaty of 1921- of the present Anglo California tlfttflfMtn RinleV UfOliP
-Uiw\ going Zrward with thP + ..
shares ^
cuxty in Sinff forward with tbe' Governor Driscoll of New Jersey, that its facilities, as £ group, must Nati0nal Bank.
..
hi h
be self-supportmg. We are equip-,
i.-,#
^
Offering of 210,000 shares, ©i
.financing at this time.
We ton-*^the^rt^Au- rped-to deal with limited objecIhl
nf 'Niagara
'Mohawk Power ; Corp*
ceived
the
idea
that
the
Port
been advanced that the Po t^Au
^n&rX development that can the. T9th centuiy the^ House oi
preferr€d stock, 4.10% series, at
were
those which have origins or
than on Man-
•destinations other
hattan Island.
Such traffic makes
a
.
_
-,
^Authority might finance and
struct the
it
bridge and then "lease"
the -Triborough
lor
back-to
and
maintenance
operation.
believe
we
can
work
rah
anting of a raiJ
?a^t^arisit svs"
Je^ey'
The
some-•
.
.
w
.
Commissioners
,
noted
5
,
out.
However, we have
joint
public
responsibilities
in
meeting the traffic problems of
If
how much it will cost.
then
we
a
We
selfcan
investment of $500,000,000 in
vehicular,
ajr_
better
place to
live and
both
a
better
a
place to make a living.- Saddling
the Port Authority with deficit-
^
.Ridden
amendments to the Port
operations
would
destroy
the self-supporting concept of the
jeopardize the
existence of the Port Authority
and the continuance of its congtructive public work.
pord Authority and
In regard t0
this work
I would
bridge is economically practicable and the two
States decide that it shall be built,
*
afield,
we
will evolve
a
financial
Our
position
has
not changed
Authority
arrangement that will not only be
since
acceptable to the investment
firmly believes the search for a
solution to this difficult problem
ket,
but
may
also be
mar-
another of
those landntarks in revenue
bond
The
1951.
Port
West. The Seligmans, m fact, had..
nJenoie<?
mpntfli
mieht
which
ffarded
Vate
as
a
the
field
be
otherwise
within
enterorise
enter
area
re-
of
nri-
thev should do
so
merchant
"sco
and
member ot I
For many years
which
you
have
come
pursued.
w^h great caution
amPie
agencies.
might observe that when we
speak of the economic practicafcility of a Narrows Bridge or any
other project to be considered in
these studies
nomie
we
mean
practicability
their
within
eco-
the
framework of the Port Authority's
credit and within the framework
of
its
overall
responsibilities and
plans in the field of the aviation
and marine terminal requirements
interstate
transit
enues
I
for
sys-
on
terns.
In addition to such an en-
on
A notable
of this cautionary
...
credit of the two
•
#
The firm also played an important part in the public affairs
of the United States. Joseph Sel^man was offered the post of
Secretary of the Treasury by
Grant. Though Joseph declined,
Grant called on him (frequently
spirit is
financed
in£ deficits.
The Port Authority will, as in the past, cooperate
wd:b .the Metropolitan R a p i d
Transit Commission in its search
for a solution.
suggestions that the
The
Seligmans
had
a
role
in
a
of about 3,Principal cities served
Buffalo, Syracuse, Albany,
total
population
100,000.
are
utica, Schenectady, Niagara Falls
and Troy. It also distributes nat~
Ural gas purchased from New York
state Natural Gas Corporation,
and a small amount of liquefied
petroleum gas, in areas in central,
northern and eastern New York»
having a total population of abopt
In 1953, about 85% of
consolidated operating rcvenues was derived from the safe
of electric energy and about 15 lafrom the sale of gas.
For the 12 monms enaea marca
31, 1954, the company and its suo-sidiaries, showed in an unaudited
report, total c°"sPAqaJL
1,200,000.
its
other well known episodes
in the financial history of the
19th century. They helped handle
the financing of DeLessep's Panama Canal Co.
When that venThis port development program ture failed, Isaac N. Seligman apkas been made possible by the pealed to Mark Hanna, who was ing reve u
$
fact that you gentlemen of the fi- then a
Senator, to obtain the net
®' ? »
nanciai commuunity have helped equipment and franchise of ttie solidated op<5
g
us to get the money to do the job.
French company for the United 1953 agg?ega
You have marketed 44 issues of States. Hanna led the movement while net mcon e
a
>
™
.
the basis of merit, and
ber, 1953,* to meet construction
costSj to reimburse the company's
treasury and to finance in patfe
.
ex-
self-supporting basis, it has
gineering-economic survey, a avoided the evils of governmental
search should be made for an bureaucracy and
governmental
equitable, financially sound and waste and has been of great servconstitutional program for meet- ice to business and industry."
However,
proceeds from the sale of
tbe vigilantes.
the firm was actively interested
Jn what-was then called the At- the eompany's construction pro5:
Fa^diC a. ay arJd
gram.
'
aci, .c. 0
Missouri. The House
The new preferred stock will be
Seligman also participated in gubject to redemption at prices
the financing of other roads, arid rangirlg from $104.50 to $102 per
at °ne time Joseph beligman share, plus accrued dividends,
even bought an engine, christened
Niagara Mohawk Power Corp.
!?
rented it to jg engaged jn the electric and gas
the ^Memphis, Car t h a g e and utiiity business in New York
Northwestern Railroad for $70 a gtate. The company provides
weekelectric service in an area having
for advice- In 1871 tbe House of
Seligman was part of the first
to
associate with the Port Aupolitan Rapid Transit Commission
^e found in the development
banking syndicate in the United
thority. There is, of course, not thq and recommended that a restudy 0f The Port of New York Author- States — a syndicate formed to
slightest intention or possibility be made of the estimated costs of ity
Operated .by business- PJace the country's funded Civil
of pooling or intermingling the
construction and prospective rev- men, with staffs of experts chosen War debt.
financing
be
We supported
the creation of the bi-state Metromust
$100 per share was made yesterday
(May 5)
by a syndicate.
..T..
District
Port
the
that
wlt,b tbe construction, financing
1
Compact under which the Port like to gyhmit a short paragraph
Authority would have recourse to from a rep0rt of the Chamber of
public subsidy from tax levying Commerce^ of the State of New
we are convinced that between us,
sources in support of its projects york
entitled
"A
Statement of
and with the inventive legal tal-. would destroy the entire concept American Economic Principles":
ents of Dave Wood and Lewis Deland character of the Authority.
«where vnvprnment or governfind
S^}lgnJan was ldentl.fied pn"tlar.lly
years;;|^^SeW,idL dumSS j!.eadIed by H?^J"iman Ripley &
f^e.cia"y
^pia\y £jang£g Co., Incorporated.
foresee> during the next 10
:an
grams
any
structure.
at-.self-suppprting
strength of the Port Authority s>apparenf
ability to carry forward the pro- make this
that
within
accomplished
supporting
of terminal and. transportation development entrusted to it
by the two states, and to do so on
New
York
and
northern
New
a revenue
bond basis; that the
Jersey, and we.;know that the Port Authority's credit structure
Narrows Bridge is a keystone of
would be seriously impaired if
future
solutions.
Our first job,
there was any implication that the
therefore, is to find out how such Port Authority was even consida
bridge can be constructed and ering the financing of rail transit;
thing
^
rapid tirans5 t y?
.jem^betwecn New York a
Frankly, neither Organization has
the foggiest"
" "
'
'
•by the
a
convenient way of saying that
Ave
^ SI
con- :
many
,
,
,
'pnl'lps
for
«9nR«44noo.
J
$
,
>
i
J
30
The Commercial and Financial Chronicle
(2010)
National
Green, Erb Adds to Staff
Mutual Funds
CLEVELAND, Ohio—Stanley A.
Jankovich and Louise A. Westcott
with
are
NBC
Green,
Building,
National
Co., Inc.
members of the
THE
(Special to The Financial Chronicle)
CLEVELAND, Ohio
E.
has
Burden
Norman
—
become
With Hayden, Miller &
affiliated
Co., Union
Commerce
Building, members
the Midwest Stock Exchange.
of
With FIF Management
(Special
to
The
Financial
Chronicle)
DENVER, Colo.—Ruth M. Steen
has
become
affiliated
with
FIF
AXE-HOUGHTON
business
index
1929.
The
is
mately
as
of
general
the
early
business
There
reports.
material
raw
proceeding
approxi¬
one might expect as an
indication
a
in
recovery
prices
stages of
Axe
upturn,
is
usually a lag
between upturns in raw material
prices and the time when the im¬
proved demand is reflected in the
an
weekly figures avail¬
industrial production, and
on
longer lag before it is re¬
even
flected in the
monthly production
figures.
Inventories
in
industries
most
high so that it would not be
surprising if the lag between the
first
upturns
in
raw
material
are
prices
important upturns in
figures were
and
the actual production
unusually
WRITE FOR
than in
output and earnings
Total
of
the
long,
Axe
survey
Automobile
comments.
million
American
were
of
FREE INFORMATION
year
times
four
of $143,909,632,
assets
net
reports
fund,
highest
in history, in its 113th quarterly
report issued yesterday. During
the
first
quarter the net asset
value per share increased 10.4%
to $11.18.
William
Chairman
Charles
President
and
Parker
A.
Devens
state, in a message to stockhold¬
ers,
that the fund remains sub¬
stantially
fully
invested.
The
management believes an upturn
in business is probable before the
Preliminary
Established 1930
120 Broadway, New York 5, New York
bile
retail
in
sales
and
■■■■■■—■■■■■■■■■■■■■■■■■■■■■—■■■■■■■■■a
General
lead
March.
Ford
continue
Motors
to
the advance.
STORY
Bought
Consolidated
Louisiana
Engineering
Land
Lawrence
of
ending is told
"It
Couldn't
invest¬
continuous
m
happy
a
folder called
recently
a
Worse"
Be
published by Hugh W. Long and
national
Co.,
Fundamental
underwriters
Investors,
of
$185,-
a
Corp._i.__
10,1)00
Exploring.._____
<fc
20,000
Corp.,
Ltd.__~
15,000
_
Oil
600
aptly timed in these days of new
market
highs, reviews the invest¬
chronically mis¬
ment results of a
investor
fortune
191
Prospectus from
your
or
Mr.
PHILADELPHIA
highest
mental
Company
shares
bad
$1,000
luck
regu¬
Prospectus
Industry.
upon
request.
shares
for
Investors
Funda¬
of
entire
the
39
CO.
INC.
New York City
Broadway
18,000
Natural
Gas
Airlines,
Smelting
S.
Indies
25.900
Inc
37,000
20,000
Sugar
35,000
__
FIDELITY
million
FUND recorded
increase
the
first
the
total
record
in
net
quarter of
Industrial
JONES
DOW
Stock Average, at its present
of
ure
is
300
over
since
at
level not
a
stock
Are
1929.
fig¬
prices high — perhaps too high?"
Group Securities in a cur¬
asks
"Brief
rent
Case."
i
.
'
today
of
en¬
it
could
tion
of
the faith
a
valuable
render
American
the
population,
particularly those with relatively
small
incomes
sands
upon
who
and
those
thousands
have
thou¬
people
in
Corporations," Henry J. Simonson,
Jr., President, 'said in
to
high
of
of
boost
$106,053,756
a
from
$91,793,299 at the year-end, ac¬
cording to its report for the quarter.
increase in assets
million.
Net assets on March 31, last,
were
equal to $18.72 a share on
the
1954,
the
as
5,665,775 shares outstanding,
compared with $17.23 a share
in
assets
stocks, 1% in
1.5% in senior
common
preferred
stocks;
and
the
balance
governments;
in
cash
and
receiv¬
and
ables.
incorporation
of
holdings, the
petroleum—amounted
of
net
assets.
Other
of
check
we
on
are
When
looking elsewhere, let's
the 'gauge'
by which
making
our
measurement.
this
'gauge' says 300 it's
reflecting dollars or dollar price.
THE COMMON
STOCK HIND
And
everyone
have
Group Securities, inc.
auacU'd
'size' over
mat
in
in fact since 1939.
split two for one,
expect to have
200 shares for each 100 previously
had. With the dollar split two for
everyone
of
Knows
halved
about
recent years,
"If a stock
one
was
would
it is unreasonable that stocks
should sell for
dollars?"
more
showing
stock
price
picture
a
of
a
the
prospectus
on
request
from your investment dealer
Street, New York 5, N. Y.
of
Empire
own-r
Acceptance
Armstrong
studied
University of Toronto,
the
he
was
engineering
from
graduated.
which
After
VIEW
of
actual
or
Company of Canada.
20
Mr.
years.
mained
as
Laird
has
director and
a
after
re¬
advisor
Leaving
Copper
to the corporation since his retire¬
in
the
he
since
company
Co.
founding are H. Kenneth Meyer,
a vice-president, and W. L.
Bailey,
secretary.
George Sellers Smith,
a
vice-president
and
director,
joined the company in November
early
and
in
work.
leaving in
Armstrong came to
where for a few years
investment
he
1940
assisted
dent for
in
the
Reports,
one
Canadian
1930.
visory
to
formation
of
Canada
Babson.'s
serving as Vice-Presi¬
Resigning, he organized
year.
Business
Service
since
Delaware
including
staff
versities
Distribu¬
Great
Ltd.
which
in
Distributors
Mr.
vestment
which
was
holds
with
or¬
the
which
and
in
of
the
the
NET
Mr.
assets
of
Investors
increase
months,
of
the
report to its
Co.
Ltd.
$92,950,775
fund's
shares
value
increased
$15.04 per
of
the
from
March
of
$13.46
to
in
common
nreferred
stock
stocks, 25.98%
and
11.73%
until
1950,
1919
best
Fund
its
at
believes
shareholders'
this
time
to
it
w
formed
and
aerial
in
addition
to
Porcupine
in
emphasizing real
at this time is to
mining experience dates
the
in
he
was
1938
exploration.
between
years
particularly
active
Atjthe University of
World
War
R.
in
the
R.
II,
C.
He
A.
is
a
gineers,
in
he
C.
Mr.
F.
mendation
in
I
F.
with the Canadian
served
and R.
F.,
A.
with
service
England, France and Belgium. In World
He
for
received
valuable
member
Ontario;
ing
&
of
with
served
Stewart
the
King's
service
the
in
Professional
Canadian
justed
in
a
chart
the
stands at around
DJ
160.
Average
"Stocks do
so high," the publication
states, "when the adjustment is
made, in fact they look
rather
low."
In
stable,
higher,
Group
points
out
not
distribution
than
in
Min¬
Min¬
Metallurgical
Engineers.
Diversified Investment Fund, Inc.
Manhattan Bond Fund, Inc.
a
the
PROSPECTUSES
AVAILABLE
FROM
YOUR
ON
THESE
LOCAL
MUTUAL
INVESTMENT
April amounted to $425,469 for
increase of 21.7% over the like
month last year, according to W.
an
Linton
Nelson, Chairman of the
board, Delaware Distributors, Inc.
sales
Nelson
were
added
the
that
largest
for
April
any
FUNDS
DEALER,
OR
Clfwlani
Chicago
Los
Angela
HUGH W. LONG AND COMPANY
San Francisco
Incorporated
Westminster
at
En¬
Institute
Fundamental Investors, Inc.
more
necessarily
afr.
American Institute
11
GROSS SALES of Delaware Fund
Mr.
addition,
though
the
com¬
the
income
provide
Lt<|[.,
Ltd. and Windward Mines,
emphasis on income than on se¬
curity profits in managing the
pose
the
Mines
Mines,
from which institution he was
graduated, he majored in mining.
During
bonds.
more
years
Empire
interests
place
whe.n
1946,
after four
Noland
of
and
ing & Metallurgy,
proposed
and
Ross
Ltd. and this year
Central
Stewart's
to
War
in
the
of
Milner
of
Brown
Stewart,
of
director
a
Army,
of
I.
Toronto,
the report
31, 61.46%
partner
a
Corporation
E.
Mr.
back
in
Mr.
Warlund Mines,
share during the first
half of the fiscal year,
showed.
is
1934
of
service
Harvey Milner Co.
remained
Then
Presidency
Ltd-.,
fund's
for
out
Empire Finance Corporation Ltd.:
H.
C.
Ltd.
asset
he
where
formed
170,000 shareholders
vari¬
quarter
a
World War
partner
a
retirement,
Acceptance
six
semi-annual
in
Army
become
to
retired.
in
for
four years
firm of
became
of
reveals.
Net
with
Canadian
he
$472,360,654 to
$565,311,429
between
Sept.
30,
1953, and March 31 of this year,
he served in
States
Brown left Royal Securities Corpora¬
tion,
from
rose
apd
capacities in offices in Canada
investment
later
Mutual
organization
United
century,
a
Delaware Fund.
TOTAL
uni¬
..
Brown's
official
ous
in¬
contract
advisory
of
Canada
:
....
changes on personal income,
including dividend income, Knick¬
serve
ije
early business career was
with the Royal Securities Corporation, Ltd.
ganized late in 1952 by the invest¬
ment advisory firm of Barringer
Nelson
States,
..
shares in November, 1952.
Delaware
graduates
the United
Britain.
tors, Inc. began distribution of the
an
accounts.
returned
has continued to operate successfully. This
service employs a large research and ad¬
month
and
Dodge
Mr.
States,
Canadian
Phelps
Steel
for two years operated
in Sudbury, Ontario, whei;e
1930's,
supervised
Then
joined
with
consulting
United
he
he
and
did
also
the
associated
was
there
the
its
he
assay office
an
1950.
With
which
tax
erbocker
in
in¬
finish¬
for
larger common stock holdings
industries included: utilities,
13.5%; railroads, 10.9%; insurance,
7.1%; paper and pulp, 7.5%; and
rubber, 4.7%.
IN
men
Service
past.
not look
Distributors Group, Incorporated
63 Wall
principal
Business
by
reflected by the DJ
Average — in dollars
without regard for their value—
and
another
which
adjusts for
their shrinking value. On the ad¬
as
Industrial
a
Canadian
Fund's investments. Another pur¬
Group's "Brief Case" contains
chart
of
stitution
the
"Before
beneficial
all residents of Toronto.
Mr.
the
Mr. Simonson, who
was
15.4%
new
These
period of time.
a
the
the manage¬
ment should prove very
cer¬
portfolio of Investors Mutual, Inc.,
to
of
members
bring to
States and Mexico.
of the
in
largest—in
will
President
of
Central
Porcupines Ltd., and a consulting
mining engineer with experience
in
mining
in
Canada,
United
its
Among the more than 20 prin¬
cipal industry groups represented
stock
the
board
ing college, he worked with the Northern
Peru Mining Co., a subsidiary of American
Smelting & Refining Co. for three years
As
common
which
Stewart,
and
For the 12 months ended March
31,
dent, declared that the additional
a recognized authority on the
pulp and paper industry; C. H. E.
,
amounted to $20
investments for the
L. Valenta, Presi¬
Frank
is also chairman of the board, and
Douglas
Laird, a director and
vice-president in charge of sales
in
31, last, to
Fund.
and
investors."
Among the signers
with
supervising
Corporation, Ltd. and President of
Empire Finance Corporation, Ltd.,
ever-increasing
an
Inc., managers, an^
appointment of an
Advisory
Board
to
the
management in
the
President
ance,
of
more
devel¬
the
Ltd.,
an
investment
counseling
organization;
John
S.
Brown,
"During the past 25 years," he
"there have been many
developments of historic import¬
number
Co.,
Investment
er
added,
services
&
ta
and President and
noting the occasion.
firm
with
Comprising
this
board
are:
George S. Armstrong, Engineer
the ownership of successful Amer¬
has expanded
with
Inc.,
contact
nounced
are
ican
corporation
Fund,
opments in the natural resource
fields of Canada, Frank L. Valen-
over
of
participated
never
Canada
intimate
technical and research experience
large por¬
a
move
a
work
estab¬
on
investment service to
$14.3
a
assets
1954 to
March
on
securities
life of the fund..
"THE
reached
EBERSTADT &
F.
Corp.
Northern
U.
30,000
in
Specializing in Securities
of the Chemical
Mission
Bloedel, Class B___
Northwest
Fundamental
of
price
of
record
ance
A Mutual Investment
Railroad
on the 5,326,261 shares outstanding
each of
at the year-end.
last 21 years.
■ .V
V-...
Edward C. Johnson,
2<jl, Presi¬
The folder reveals that despite
dent, said that during the quarter
this incredible series of wrongly
ended March 31, last, net income
time purchases Mr. Jones' invest¬
from
dividends
and
interest on
ments, which cost $21,000, were
portfolio securities (as adjusted,to
worth $38,031 on March 31, 1954
prevent dilution or increase due
and had yielded $10,728 in income
to sales and repurchases of shares
dividends.
Though Mr, Jones is
of the Fund) amounted to $1,253,a
hypothetical person, the facts
243, or about 22 cents per share.
and
figures
on
how
his
21
The report listed upwards of 140
"wrongs" aded up to a big "right" securities
in
the
portfolio on
are based on the actual perform¬
March 31, 1954, with 95.5% of net
the
at
3, PA.
in
unerring
invested
Jones
larly
investment dealer
With
Jones.
Jonah
named
assets
was
May 1, 1930
on
company were
Sold
Erie
MacMillan &
The folder,
000,000 mutual fund.
net
corporation
tificate
West
misfortunes* with
ment
FOUNDED
"The
ment
A
combined
ters its 25th year of operation.
the
new passenger reg¬
figures seem to confirm
previously published estimates of
a
substantial upturn in automo¬
Investment
85,000 shareown-
associates has remained
PURCHASES
Superior
istration
Securities
were:
year.
SALES
CORPORATION
man¬
Principal changes in the port¬
folio
during
the
first quarter
end of this
tion declined.
RESEARCH
over
Board
to
provide the man¬
agement of Natural Resources of
Research
and
National
Mutual
In
including two 'wars, four
periods of prosperity and three cf
depression, but during these years,
the faith of the founders and their
St.
NATIONAL SECURITIES &
&
sponsors
than $160,000,000,
more
that
INVESTORS,
investment
mutual
in March, but steel ingot produc¬
PROSPECTUS
and
ers
lished
INCORPORATED
and trucks last No¬
vember to 627,000 cars and trucks
cars
Series of
Funds with
that
tion, for example, increased from
438,000
last
business
1939.
produc¬
FOLDER AND
more
than
more
serving
than in
people
more
ponents.
few reliable
SERIES
million
29
38
able
SECURITIES
that American industry is
1939;
Sherman Street.
NATIONAL
weekly
advanced
slightly
during
the
last
three
weeks, owing to gains in all com¬
Management Corporation, 444
A MUTUAL INVESTMENT FUND
has
Securities
Corporation,
agers of the
By ROBERT R. RICH
Midwest Stock Exchange.
With Hayden, Miller Co.
Own Advisory
Twenty-Fifth Y ear
&
Erb
Canada Fund Forms
Begins
(Special to The Financial Chronicle)
Thursday. May 6, 1954
...
Parser, Elizabeth 3, Hew Jersey
Volume 179
Number 5322
The Commercial and Financial Chronicle
...
(2011)
New
Public
Utility Securities
Halsey, Stuart & Co. Inc. heads
syndicate offering today (May
6) $25,000,000 of New Jersey Bell
a
Columbus & Southern Ohio Electric Co.
Pennsylvania Railroad
in
the
recent
earnings,
appears
The system of handling loaded
trailers
of
One illus-
Pennsylvania, revealed that tariffs
railroad
be
irregular trend
an
both in gross and net
the principal carriers.
revenues
tration of the effect of the current
for
so-tcalled
"mild
of
report
stages
loss
net
a
period last
showed
operations.
The
a
March
of
of
from
the
March, 1953. The gross
quarter totaled $207,936,17.3% from the $251.6
the
361,
off
million of first quarter 1953.
Explaining
the
situation,
thg
company issued a statement, stating "the downward trend in car-
loadings
to be
seems
the
Public
Private
vs.
Power in South
operating
results
poor
for
cipal
first
the
of
hear
the
quarter, the company stated: "The
level
steel
after
Members and guest of the Muni-
explanation
lower
until
leveling off.
prove."
In
to
than
most
debate
a
New
York
"Public
on
will
Power
the
has
the
Pennsyl-
holding the advantages of public
volume
vania
of
Private Power" at their luncheon meeting at 12:15 Monday at
the Downtown Athletic Club. Up-
industry
freight
Forum
production in
of
affected
of
much
the
vs-
Power will
the steel mills this year have been
be George Dempster,
Mayor of Knoxville, Tenn., which
is situated in the heart of the territory served by the Tennessee
Valley Authority. His opponent
wl11 be c- Hamilton Moses, Chairman of Arkansas Power & Light
drawing
Company, who has established
nearly
a
railroads,
as
gross freight
Pennsylvania is
of
of
normally
the
the
derived
from
traffic of the steel
on
and
•
freight
industry.
Also
stock piles of ore, coal
"
scrap.
"With the
Pennsylvania, and its
panying
and
losses,
the
expenses
overall
is
cannot
on
accom-
reduction
be
jec^s-
of
.«
accomplished
...
addition
which
pany
to
economy
began last
has under
com-
plan
a
carry motor truck trailers
on
to
rail-
LOS
B-
service
The
will
company
with
standard
50-foot
under
order
depressed
cars
90
a
begin
flat
design.
fleet
Tt
for
Calif.—Curtis
...
,
■
_
„
„
^
Lester, Ryons & Co.,
New York and Los Angeles Stock
new
Exchange*
Mr
Wnnifniir
fxchan*es' Mi
center, 75-foot flat
capable of carrying two trailslated
ANGELES,
623 Hope Street, members of the
of
-
ers each.
They're
livery in August.
q
c
Woolfolk was
a Vice-President of the
Central
de-
is
some
Republic
Company
Chicago.
Industrial
not prove to be superior in
practice to so-called 'naive' models which assume
that current sales will continue into the
continue into the
very recent rate of
future,
rationalized
mode
Fortunately
or
that
near
future
change will
simple, un-
some
or
whether
one
of
behavior
will
be
For the Columbus
such
in
some
individual firms
forecasting and for
seeking to forecast their
many
own
sales
proved superior to the most intricate and labored of
the
methods
of
the
metrician."—Prof.
trained
James
Chicago.
Three
who
has
formulae
H.
-
area
is
104%.
almost
in
the
exact
not
and
for
lost
the
his
economist
the group
the
of
state
is
and
was
ing
to
type of industry is dominant.
one
The
territory of the southern operating district is essentially
agricultural in character, consisting principally of the production
of grain, fruits, tobacco, vegetables, dairy and poultry products.
Its principal industries are paper, brick, clay products, cement,
iron and steel, fluorescent tubing, packing containers, feed and
grain milling, coal mining, sand and gravel operations, salt brine
products and more recently, plastic products.
Forty-six munici¬
palities are served in this district, the largest of which is Chillicothe with a population of 20,000.
The total population of the
southern district is 265,000.
The company's 1953 revenues were 40%> residential, 23% com¬
mercial, 49% industrial and 8% miscellaneous.
Average annual
residential usage was 2,049 kilowatt hours.
For the past several
years the percentage increase per year of residential customer
consumption has been greater than the national average.
The
rate
average
3.09 cents.
per
kilowatt-hour
residential
of
1953
for
use
at
Wednesday
on
was
advances
repay
to
use
from
its
parent
organization,
American
Telephone & Telegraph Co., which
are expected to
appropriate $25,800,000 at the time the proceeds
received.
are
The
•
debentures
are
redemption, at the
subject
option
to
the
of
at prices ranging from
104% to par, plus accrued interest.
company,
New
Jersey Bell Telephone Co.
furnishes
within
local
the
telephone
State
service
toll
and
of
New
within
service
Jersey,
the
state
and between points outside of the
state
in conjunction with other
companies.
The companies also
mobile
no
sale
bid of 100.511%?. 1
The
company
intends
a
offers
and
by
won
competitive
on
by five major railroads, two major air lines and the prin¬
cipal intrastate and interstate motor carriers.
Its industries are
other
services,
including
exchange service,
teletypewriter
radio-telephone
services
and
and
service
facilities
for
private line telephone and tele-i 7f
typewriter use, for the transmis¬
sion
radio
of
and
grams
Revenues
the
sale
television
and
for
other
also
are
pro¬
purposes.
received
from
of
telephone
advertising space in
directories.
On Dec.
31, 1953, the company had 1,952,912 telephones in service through¬
out the state of New Jersey.
For the year
had
total
1953, the company
operating ■ revenues of
$188,088,892
and
net
income
of
$16,564,610,
snare,
equal to $6.46 per
cased on the average num¬
ber
-
,.
:
%%/ x' -7
y
The
company's peak load of 355,300 kilowatts occurred on
Dec. 23, 1953, which was 92% of system capacity as of that date.
However, on January 28, 1954, the fourth unit at the Poston Gen¬
erating Station came on the line, with a name-plate rating of
66,000 kilowatts, thus increasing the reserve capacity.
Columbus Transit Company, wholly-owned by the
company,
provides the principal mass transportation requirements of the
City of Columbus and the surrounding area.
The Transit Com¬
pany has no franchise and since Aug. 22, 1953, by virtue of an
cents
of the Columbus Council, has
cash, four tickets for 50 cents.
operated on a fare of
At the last November
the electors approved amendments to the City Charter,
future change in fares should not
require submission to
The recently appointed Director of
vote.
franchise.
The
company
a
popular
Public Utilities for the
City is studying the transit situation and the matter of
service
a
cost-of-
hopes that when developed the
formula for fixing transit fares will provide a more
adequate
return on the investment.
new
of
Earnings in
1953
$2.15
share (on 2,201,360 shares
outstanding at the year-end, including 200,000 shares offered
Nov. 24).
Executive Vice-President Miller estimates that 1954
were
per
earnings may be in a range of $2.15-$2.20.
The present dividend
$1.60, which will probably continue for the present.
or
the
Ohio
State
law
directs
this
Commission
to
studying its earnings picture with the possibility that it may
the City of Columbus for an upward adjustment of electric
rates, although no definite decision has been made as yet.
If such
a request should be made in future and
rejected, the way would
then be open for an
econo-
appeal, first to the Commission and then, if
necessary,
to the state courts.
mon
years
some
ago
Such rate proceedings were
The
stock
era
of
com¬
in the appeals of the Cleveland and Cincin¬
nati utilities.
,
is
currently selling dn' the New York
Stock
Ex¬
change at about 28V\ to yield about 5.7%.
Three With Buffett-Falk
Now With Bache & Co.
(Special to The Financial Chronicle)
OMAHA/ Neb.—R. S. Knicely,
C. McCartney i and Francis J.
Skupa have joined the staff of
Buffett-Falk & Company, Omaha
National Bank Building.
L.
With Schoenbrun Staff
LOS
businessman
in
State
ask
"(Special
S.
ANGELES,
Brittan
with Leo
wood
has
W.
connected
Schoenbrun, 1385 West-
Boulevard.
Gilbert has
Ohio
—
become
Maurice
associated
with Bache & Co., Dixie Terminal
Building.
with W.
He
E.
was
for many years
Hutton & Co.
Vance, Sanders Adds
.
(Special to The Financial Chronicle)
Calif. —John
become
to The Financial Chronicle)
CINCINNATI,
.
hard-headed
commonsense
the
study reproduction cost (net after depreciation) in regulating
rates, and the company in 1953 earned only 5.4%, on net book cost
(including working capital), it is obvious that the earned return
if based on reproduction cost would be quite low.
The company
Lorie, University of
V
highbrow wordiness!
center
yield
issue
diversified
(Special to The Financial Chronicle)
cheers
in¬
1953, or 258%.
(which includes all of Frank¬
served
competence of the eco¬
these naive models have for
kinds of economic
metropolitan
establishments
Columbus
evidence of the wisddm and
—
consumption
County), employment increased from 140,000 in 1940 to 259,000
in 1953, an increase oi 85%.
During the same period the number
of manufacturing establishments increased 59% and employment
manifest.
unfortunately — depend:ng upon
seeks simple
forecasting techniques or
nomics profession
kilowatt-hour
commercial
and
101%?
at
to
Award of the
creased from 202 million to 725 million from 1940 to
is
even
most
forecasting schemes do
a
It
rate is
probably surprising to laymen and
professional economists to realize that
unchanged, that
.
north-central
the east
1989,
the net proceeds from the financ¬
of
has been growing faster than Ohio and
States, and more rapidly than the United
States.
Between the censuses of 1940 and 1950, Columbus added
more persons to its total population than any other city in Ohio.
the United States.
of
1,
interest
of shares outstanding. In the
previous year, total operating rev¬
enues
were
$173,038,890 and net
income was $16,139,899, equal to
$7.34
age
per share, based on the aver¬
number of shares outstanding.
Municipal Bond Club
Gets New Slate
The
nominating committee of
The Municipal Bond Club of New
York has nominated the
BOSTON,
gee
of
has
Vance,
J.
Ma-
to
the
staff
&
Co.,
Mass.—John
been
added
Sanders
Devonshire Street.
Ill
following
slate of officers for the year 1954-
1955; Jonas C. Andersen of Kuhn,
& Co., President; Donald C.
Loeb
Patterson
Chemical
of
Bank
&
Trust Co.,
Vice-President; J. Dalton Couig of Hirsch & Co., Secre¬
and
tary,
Joseph
F.
Vandernoot
of R. W. Pressprich & Co., Treas¬
urer.
\
meeting of the Clufr^
The annual
w
f°rmeHy
Simpler and Better
"It
consists
Columbus, situated in Franklin County, and ^1 other incorporated
municipalities.
Columbus is the Capital oi the State, the third
Since
to
District
eight counties having an
estimated population in 1953 of 585,000 and includes the City of
election
Woolfolk has become associw
has
200
of
,
the
cars
'
'•
Columbus
authorizing the Council to grant a transit franchise and to fix the
rate of fare for such service, but provided that the ordinance
shall not become operative until it shall have been submitted to a
popular vote.
However, an important amendment was that any
(Special to the financial chronicle)
IZtUJl'and th,US shippers, a
lUrnish
piggy back"
to
program
The
15
Lac!aV RuADC Si fin
fcCOIWj fljUII& IX UUi
moves
the
year,
way
District.
May
accrued
about about 2.95%?.
territory is divided into the Columbus District and the South¬
..
WOOlfOlK Willi
bUnlS
quickly."
In
the
ern
due
and
ordinance
difficult.
more
a
reputation as a champion of private PowerI as head of a private
company operating in an area ad-jacent to major public power pro-
relatively large vol-
of passenger train service
ume
the
extent
other
30%
revenue
greater
and
lin
postponed
remaining months
will gradually im¬
year
a population of 850,000.
These are situated in the
southern half of the state. For operational purposes,
Ohio, with
central
largest city in Ohio, and ranks 28th in population among the cities
cities, we would then be able to
further improve the service."
This is encouraging.
We estimate
the volume of business to be han¬
dled during the
of
be
vides a better perspective for estimating the results of an extension.
As this-type of business
develops sufficient volume to allow through trains between major
$88.1
million of
for
will
experience with the initial service pro-
$70,133,815,
was
20.4%
the
from
earnings
gross
used
of
be
op-
year
trailers
electricity (plus a
negligible amount of heating) to an area of about 6,200 square
miles, including all or parts of 22 of the 88 counties in the State
serves
or
leased by the railroad
itself.
"The initial tariffs will be limited to local points on the Pennsylvania Railroad," Mr. Franklin
reports, adding, "consideration of
tariffs for establishing joint arrangements with other lines will
$1,-
an
the
owned
com-
of
profit
a
Pennsylvania
loss
filed
the
company
the
be
na-
erating loss for the first quarter
of the year aggregating $9,975,000.
same
will
earnings of
Railroad, the
largest carrier., This
the
service
new
May 17 at regular motor carrier
rates and that in the experimental
588,000 tor the month and
In
the
the
reported
pany
fast
is
March
Pennsylvania
tion's
recession"
on
trains will begin
though, thus far, there
to
existing
freight
by serving four
major cities —New York, Philadelphia, Pittsburgh and Chicago,
Walter Franklin, President of the
of
reports
Ohio Electric
-
Telephone Co. 35-year 3% deben¬
tures
impact of the busjfqess
slump is beginning to be revealed
Columbus & Southern
Jersey Bell Tel.
3% Debentures at 101
By OWEN ELY
The
31
will
be
held
1954
at
2
of
the
p.m.
main
Friday, June 11,
in the sports room
on
club
building of the
Westchester Country Club in Rye.
Joins Ross, Borton
(Special to The Financial Chronicle)
CLEVELAND, Ohio — John G. "
Lincoln, Jr., is now with Ross,
Borton & Simon, Inc., The 1010
Euclid Building.
32
(2012)
The Commercial and Financial Chronicle...
Continued
from
13
page
"History
which I
And
The Atomic Revolution
one-third
of present
These
costs.
U. S.
estimates,
in
submarines,
are
first,
been built. How
even
bear
being made before the
full-scale power plant has
mind,
American
that
<5oubt
can
threat of
tastic prospects in the
years ahead.
The world's first
atomic-powered
power
"Nautilus"
be
any one
able
speeds
ingenuity
the
and
to
in
revolutionary
"Sea
cruise
of
excess
Wolf"
will
submerged
20
at
knots.
A
few
will
bring nuclear energy into
competition with existing
sources, when it is alreadij start¬
pounds of uranium will give
them ample fuel to travel thou¬
sands of miles under
water, at top
sharp
ing out at only twice the current speed.
They
will
require
no
figures?
The answer seems ob¬ breathing tubes to the surface.
vious.
Thus, neither fuel nor oxygen
Must
Achieve
Revolution
need limit their stay under water.
in
must achieve a
revolution in
our
This is simply be¬
potential
reserves
of
energy sources.
the
cause
fissionable materials
energy from
are
estimated
now
times
ing
that
to
be
available
over
from
20
exist¬
mineral
gas.
fuels—coal, oil and
We must bear in mind, first,
that
the
of
rate
growing
used
energy
rapidly,
more
is
than
even,
our
population
rate.
We
are
therefore forced to anticipate those
demands which cannot be met by
our
capital
fuels.
cf
uses
«®uld
coal,
oil
be
not
fhem.
We
met
creasing
Thus,
I
conserve
of
the
in¬
liquid
fuel
plus coal de¬
petrochemicals.
think,
fissionable
mate¬
arriving just in time to
are
substitute
candles
to
ignore
power,
and
which
brighter lamp for the
a
we
burn at both ends.
now
bat
passenger
trains.
These
hut
to
come
actually
is
quite
problems, but in the light of gains
already made they do not look too
far
off
our
compass.
we
will1 have
but
—
rather
well
I venture to
within
say
that
in
the
them—and
not-far-distant
have
future.
Indeed, I
hesitancy about picturing
no
for you a world of the
in
future
near
which atomic energy heats and'
powers
factories,
our
cities, cooks
ills
and
our
food, cures
our
propels
lights
our
ships, planes
our
and trains.
And
of
I
hopes that the
energy in one of
atomic
Protean
of
forms
will
civilization's
problems—the
lation
and
of
yet solve
most
use
its
two
difficult
economical
for
water
sea
agricultural
in fissionable
fuels.
in
industrial
is
industrial
use,
wastes.
problem in
a
Each
of
these
in trans¬
power, or
We
of
area
also
can
development.
count
on
atomic
energy doing that in the future—
extending
the
present range of
coal, oil and water,
with their limits of economical
transmission. None of these pres¬
power
from
ent
fuels, however, has the ca¬
pacity to vault mountain barriers,
jungles
and
desert
wastelands
with the
unimpaired
energy of the
today
this world of the future is not
clearly
like
marked as we would
but it is intriguing and
it,
challenging—thrilling is the
I
would
prefer.
barrassed
as
dozen
a
designs
of
we
There
or
em¬
well
as
liter¬
are
promising
more
nuclear
word
are
riches
our
problems.
our
ally
by
For
reactors
for
different purposes.
After the tre¬
mendous
our
stimulus
have
given
ahead
is to resolve
the
us,
scientists
next
our
stage
engineer¬
ing
choices.
This will
through the best efforts
be
done
of chem¬
atom.
ists.
Let me describe these
potentials
in another set of
terms. The tre¬
macists,
mechanical
engineers—
plus some imaginative financiers
mendous growth in per
capita use
of energy in this
hope soon—some equally
imaginative and persuasive sales¬
& not
men.
country of
ours
merely due to the genius of
engineers in lowering the cost
of energy. It
goes basically to the
great increase in the effective re¬
covery of energy, in its "portable"
from the days, before the
Industrial Revolution to the
pres¬
ent Atomic Revolution.
The pound
of coal we
about
This
today
vise
may produce
kilowatt-hour Cf energy.
roughly 2,000 times the
one
is
energy
equivalent
muscle-power,
source
back
of
our
in
pound
a
prime
the
days
of
energy
of
our
colonial beginnings. Hence in the
whole lifetime of our nation
the
"portability"
*ur
usable
or
But
comparison
dloes the atom
the
offer?
uranium 235, we
are
A
pound of
material,
told, has the
if
we were to realize
only 1% of
that energy value, the
portability
our
by
a
that
energy would
factor
factor
plications
of
of
be increased
25,000.
25,000
Compare
and
its
im¬
the range of energy
exploitation that lies in the next
on
generation, with the growth that
has taken place from a
2,000-fold
concentration
of
energy
spread
over
a
period of 200
years.
Progress in the field
propuleion, of
course,
with
does
"Open
an
also, with classic irony, given us
the key to the "Pandora's Box"
the
world's
already
ills
have
in
and
being
evils.
a
We
rapidly
of
atomic
offers fan-t
far
talk, however, of
what
revolution, there is
perhaps all too little said of the
demand
enormous
atomic
which
revolution
putting
even
our
of the French.
man¬
agement men and our statesmen.
It should not be difficult to fore¬
that
see
shall
we
kinds
new
of
need
to
executives
grow
to
meet
corporations and
new
social structures changed, or
transmuted, or born, or born again
through the pervasive fertiliza¬
new
tion of this atomic revolution.
In this upset of the status quo,
this atomic demolition not only of
the
"world-that-was"
of
but
The
new
political leadership, for new man¬
agement vision, for a new respon¬
sibility in retaining
the advance of
important
as
recent
larly
over
have
we
deter
and
sober
a
moral
compulsion
against
We
to
have
a
the
answer
crying need of all peoples for the
peace and
fulfillment of atomic
creation.
Yet
have, too,
we
a
evil.
and
physical
and
have
we
things
With ail
with
courage,
spiritual
need
to
which,
our
resources
defend
born
our
all
of
Revolution*
of trial by jury, of "life,
liberty and the pursuit of happi¬
ness," of "government of the peo¬
people
and
for
the
Atomic
ideas of
taunts
energy
new
with
us
world horizons.
The
challenge and the opportunity for
world
leadership are clear—but
do
have
we
initiative
the
and
the
meet them?
to
wisdom
and
the
daring* to
And
if
this
era.
But we lack a vig¬
exposition of the philosophy
new
cf the atomic
a
We lack
age.
what
great and distinguished church¬
man
vance
of
science
stroy the world.
which could
de¬
1
Confronted with the dissolution
traditional physical forms,
pulverization of matter, and
need to understand
as
world
a
events,
but
as
finite and fluid
ger
any
is
that
sure
sense
with reality.
der
we
a
our new
of
the
world
things
universe
the
and
of
in¬
relations, the dan¬
lose entirely
being in touch
may
of
We may. indeed, un¬
panic urgency to "do some¬
thing"—do anything, and so pre¬
a
cipitate
disaster.
I
think
situation
with
his
comment
sardonic
quite
Laurence's
"The
unwisely bellicose at this
perhaps particularly so with regard to Asia.
They may be right or they may be wrong in believing
that with a different, a more
amenable, attitude on our
part it might be possible for the United States and the
Communistic powers headed
by the Kremlin to come to
some
viable modus operandi which would tend to free
the world of what
appears to be the constant and horrible
time,
'
Brothers"
of
April,
conversation
1869, just 85
between
the
of
day,
they predicted that in
would
is
atom
be
know
to
dread of another world
war.
They may well feel confi¬
dent in any event that it would be futile to force a show¬
down,
on
thetically)
in
which
"We
have
Our
when
God,
/
the
this
time
with
His
come
down
bunch
of
"would
life
(syn¬
coriV-
with
feeling,"
states,
to
humanity, the
o'clock
!!at
the
"that
science,
beard,
swinging
and
way
the'
will
they
saloon:
time, gentlemen.'"
feel that it is natural
enough in all the circumstances for
Russia, China and the rest of Asia to question it. The
Kremlin is
have
have
see
for
a
direct
centuries
moreover
successor
been
will
say
say
regimes which
imperialistic.
They
from the first avowed
Kremlin
a
determination to
adopt communism, which
seems
to
domination.
mean
It
is
nothing
human
more
nature
been sedulously
building up military, air and naval bases
throughout the world.' We have ringed the Communist
world with such stations.
for
a
Constant and insistent demand
foothold for the West
on
the Continent of Asia in
these circumstances could
with Asiatic
We
scarcely be regarded by peoples
background as anything but suspect.
should, of
course,
ihto active consideration.
be foolish not to take all this
We should be
at 5
'Closing
Russian
to judge others
by one's self. China speaks from a back¬
ground of centuries of exploitation by the West. We have
a
to
than
to
intensely
the remainder of the world
less
earth
keys,
ness
own
existing circumstances
the
white
to
hardly conceivable that they doubt the truthful¬
of our denial of
any imperialistic ambitions of our
in Asia, or elsewhere.
They may very well, however,
in
and
comes
Intentions
It is
or
competition
Journal"
anything approaching it, with Russia and China
100 years
God."
"Goncourt
or
the continent of Asia..
what
a
create
a
leading
in
of
constituted"
able
in
entry
Goncourt
the
of
William
as
an
The entry describes
ago.
scientists
of
and
rise
closing
no
apt
so
story
Journal
years
of
now
and
do not,
we
James
Joyce has well characterized olir
iiifci.t:
think
can
"man
of
not
I
economy of
to
United
worth
prise,
are
It may well seem to both France and Britain that the
States is unduly and
those
another
are, above all others,
defending: our freedom of
worship, our freedom of speech,
our
rights of assembly, of enter¬
and
in
the accumulated experience of the centuries
politics and imperialism. They are, moreover,
by long habit and perhaps by temperament, compromisers.
They can be counted upon to view any East-West world
struggle in a way rather different from that which pre¬
vails in this
country.
des¬
persistence of
costs
dition
persuasiveness and
craft
They
so.
wars
costly, the last one particu¬
in a position in which they have to
move
circumspectly in undertakings
were
of world
perate need not to underestimate
the power and
Both
might involve them in another such conflict, the
more so since
they are now extremely vulnerable to mod¬
ern
air attack.
They, too, have large numbers among
them who are
professedly anti-Kremlin, but who are def¬
initely inclined to socialism. There is, moreover, no other
country in the world more steeped with the lore, the tra¬
necessity
defend
to
destruction.
British, too, have suffered two world
which
to, our
capabilities.
atomic
wars
As
decades.
count
is
and in direct pro¬
atomic perform¬
as,
portion
to
control
nuclear science
French
see
munistic notions at home.
the
"world-that-is," the need for
content to
have apparently taken the heart out
they see it, they are fighting in south¬
east Asia to hold
something that they took by force and
violence, and something that in light of the trend of
events in the world at
large, they are not likely to be able
to hold
indefinitely in any event. They are fully aware
of what has happened in Korea, and
they find it difficult
to see how
anything much better can come out of a war
in Indo-China.
Any keen awareness of what the outcome
in this area
may mean in a world struggle of Communism
against the so-called free world is dulled by a large Com¬
munist element among them and a leaning toward Com¬
is
social organization,
on our
business structure,
our
was
area
Two World Wars
Two world
this
now
this
provided the English got
they wanted in neighboring lands.
*
of the atomic
may well ponder the question
growing atomic technology. -We
—who might?
are
beginning, though somewhat
orous
this
of the fact that Britain
reason
we
faintly, to foresee the
more
interests advanced in
the technical benefits and rewards
ple, by the
people"!
Sesame" to the treasure houses of
the world's natural wealth. It has
of
current
not
devoutly ethical responsibility for
retaining control over this ad¬
energy value of, say, two and onehalf million pounds of coal. Even
<s»f
only
us
age
this, what
with
fissionable
pure,
provide
atomic
increased
has
of
by this factor of 2,000.
In
the
has recently a called a "Pax
Technica '—a peace governed
by a
concentration
energy
thermodyna-
and—I
our
form,
metallurgists,
Social
on
Revolution
For
The road from the here of
to
age.
Under-Emphasis
See
We
outlook, and it
"took"
be encouraged by the bound¬
opportunities, the limitless
possibilities, the marvellously ex¬
all
v
acutely aware than most of us —that they
territory something less than three-quarters
of a century ago in a war with China which climaxed a.
long series of lesser wars in southeast Asia." They know,
of course, that they were able to have their way at that
time primarily because China was
extremely "backward"
and had no ally such as Russia and no
vigorous central
government such as that now ruling in that much bedev¬
iled land.
They know, too, that they had a free hand by
—
us
In
/
in certain
less
ance
A Thrilling Road
so
world
our
economy, low cost energy will at¬
tract capital and seek out its own
practical
let
page
may well be that in some senses and
particulars they are.
To some the British ap¬
pear weak and inclined perhaps to a certain appeasement
of the Kremlin. History may prove them guilty of pre¬
cisely this blunder. The French are doubtless well aware
a
distil¬
and the in¬
stantaneous disposal of human and
different.
of energy contained
time,
diate
believe
the needs of
have
factor
a
This I call simply the
"portability
factor" or the great concentration
Given
and
does not
one
nightmare by con¬
in its reality
and thus succumbing to it—you
awake from a nightmare and its
influence by knowing it to be un¬
real and by overcoming it.
Let
us
not, therefore, be discouraged
by the complexities of the current
but only apparent transmutation
of our physical world, but rather
to
different
present
"Portability Factor"
we
Yet
men.
awaken from
ships and to
airplanes
and
mutation, or in sterilization—prob¬
lems which, apparently, only the
atom is mighty enough and ver¬
which may seem like the same
satile enough to have hopes of
point I have made on economics,
solving.
Vv
The
Thirdly,
"trigger-happy"
frightened
tinuing
first
As
hydrogen bomb in the
a
of
aton ic
and
nuclear-propelled
fissionable
us
demands
rivatives
existing
varied
gas,
by
cannot
for mobile
the
and
materials, caution
rials
in
resources
Furthermore,
Continued from
step
second score, too, the atom
a
from
Basically, it is not much of a
from atomic-powered sub¬ panding horizons of this new and
still
unfolding revolutionary
marines to atomic-powered com¬
Energy Sources
On
nightmare
a
trying to awake."
it is—under the hideous
so
hands
is
am
Thursday, May 6, 1954
if
we
did not
reappraise
our own
even more
foolish
international policies in
light of the definite possibility that without rather
con-
Number 5322
Volume 179
The Commercial and Financial Chronicle
..
.
siderable modification of them
we
sent
selves
obliged to face the world of communism rather
largely alone. There are many ways in which we could
lose
3
page
from
But
And
all
all, the bill
the
resents
fire
invitation to come into those
and
of
communities
several
Pennsyl¬
vania and to meet with the Com¬
it.
done
have
the
around
had
have
the
under
and
answer
table,
I
sat
I
and
everything shot at me
sun,
from questions
politics to high fi¬
of which I could
some
nance,
And
have
I
And
round
with
dealing
Chamber.
the
of
mittee
which I couldn't
some
sales
creased.
Chamber.
for
As
study
groups,
I
in¬
run
point
is
be permitted
that
,
to ex¬
be
the
in
American
of the
hands
whom I believe most
of that tax saving will be passed,
and that $999 million will help
people,
our
to
do
we
in this day
expand
economy
when
capital.
'
:
which
which will
will
I
include
,
rev¬
of $1,400,000,000 in
enue
ability, and
all prob¬
have—and this is
we
hope
me—real
encourages
susbtantial tax
of
talk,
loss of
a
soon
reduction
as
a
in part of our program, maybe late
communities back home as it this year, certainly next year, a
suggest to you that if you do
your
has been
if
in
done
community,
my
meet with your Congress¬
discuss current affairs in
Washington, let him know your
you
man,
do a very effec¬
tive service to the sitting member
wishes,
you
in
here
try to
can
Washington. Here
do
we
the people back
represent
bill which
a
haven's
to
is
think
tell
you
right
you
wrong.
is
or
We
information.
that
welcome
what
us
And
that is
why the Chamber of Com¬
merce
of
several
in
and
on
Hill,
the
to let
person,
know how you are
us
the
definite
my
welcome
letters
by
to
are
and
from
Chambers
States
knowledge
States
United
the
different
our
thinking
as
So you
gentlemen from the 18th
Congressional District, I hope you
will keep on with this program
of contacting your Congressman,
who, I trust, will be the one you
have
that manner
let your representative carry on
as
you think he should here in
Washington.
today,
tell
spent
Was
be
realistic
as
they
have
will realize the vastobligation the Party
they
hope
of
ness
the
when
assumed
had
spent
in
mained
our
foundation
firm
have
been
Democrats ' re¬
here in Wash¬
away up in some
the
;
power
.
being spent today, and which,
it being spent, would make
not
were
absolutely impossible the tax re¬
ductions
which
you
American
people have already earned as a
result
of
having
elected
Mr.
Eisenhower
your - President < a
Tax Reductions Made Possible by
Reduced
In
was
place
taxes
of
as
10%
cut
scheduled to
Jan. 1 of this
could
which
year,
have
never
into effect had
Republican
Administration cut spending dur¬
been allowed to go
not
ing
the first
the
the
of the
year
Administration
hower
the
that
been
foundation
which
Eisen¬
and
did
laid
justify
permission for that law to ex¬
•cut
been
a
recently
taxes
million,
$999
some
has
there
excise
in
of
one
•dollars less than a billion,
theless
had
That cut
possible
been
we
not
laid
which
seemingly
would
never
have
million
never¬
amount
sizable
a
money.
have
mittee, which at the moment we
call
the
Tax Revision
Bill for
there has gone great effort
There is imbued in
1954,
and sacrifice.
it
determination
a
effort,
effort
over
year
a
of
on
and
write
had
12
been
new code.
since
1939
major pieces
a
that
suggested
legislation,
tax
revise,
revamp,
all
of
which
were
fitted
were,
throughout the then exist¬
together, but none
fitted in accurately, so that there
of
would never
permitted
nor
the
tape which resulted from the
red
foundation
justifies it.
It
been possible
proceeded
to
Bill
1954.
for
I
sure
am
familiar
you
followed by
Committee
were
be
as
done
as
procedure
the Ways and Means
year and more ago.
businesses
Your
You
a
the
with
I
as
gentlemen are
notified.
were
to
asked
make sugges¬
to what could and should
to
the
internal
revenue
should be
done to, in preparing a new bill,
remove
inequities,
and
make
those changes which you believe
would simplify the law and. help
code to change it, what
make
We
its administration better.
have
had
the
operation
from
upon
thousands
finest
the
of
whom
to
were
sent.
of co¬
thousands
American
those
You
ques¬
have
the goods locally, we will make
those people abroad learn from us:
the way that our economy can
talk
far
best
most
bit
them
of
of
involve
to
expense
some
the
they
The
more
tee
accurately than
explain them.
add them all together,
$1,400,000,reduction, and you
why we couldn't expand
the complete limit to which
000 by way of
ca?->
it
see
to
of
it
go.
The matter of
mentioned
bit
a
wherein,
areas
thought
people
our
length
to
depreciation was
ago as one of the
despite the great
which
the
committee
has
already gone to liberalize ex¬
isting practices with respect to
depreciation,
in
spite
of
that,
there
is
tation
great
belief
and
agi¬
and
pressure
that
there
be
other
some
still
more
methods, perhaps for all
industry,
perhaps
for
limited
areas of industry.
But we haven't
gone into that, maybe because we
even
matters which
are
were
counting which, if enacted into
would simplify the burden
the
business
and
would
Senate
that
within
will
have
make
far
more
management
easy
of
view
a
the
business,
personal
your
to
your
Revenue
time
ago
and
argument
what is
called
some
letter
basis of
complete
most
a
out
sent
the
on
double taxation
dividends, arguing that which
all
know, that it
earnings
should
be
we
that
was wrong,
not
of
Bill
in the
is not good in the
bill, of course. I personally don't
like this plan which forces busi¬
ness to speed up and pay currently
your corporate taxes. I don't see
that we gain anything by that, and
I hope that doesn't stay in the bill.
But it is inv there. Many people, in
like it.
business don't
apparently
ury
whether
a
of which
total
like it. But
there, it is
great bill, the sum
is
the American
to
American
the
that
I
is
it
advantageous
so
business
envisage
public,
general
a
to
area,
taxpaying
and
through
once
body which
earns
and
commended the com¬
the little step—it is
have
you
mittee
upon
it
true
little
is
step
not
full
a
that
we
step, but the
have taken to
reestablish the principle which so
prevailed in our country,
that those earnings should not be
long
taxed
a
And
second time.
you
approve,
a
sure,
am
principle that there should
this double taxation of
not .be
these
earnings.
Well,
then,
that
of
didn't
go
is
in
course,
far
go
have heard
the bill.
some
enough.
some
say
we
far
enough
about what
we
aren't
And
say
And
have done. Rather,
second
area
of
and
taxation, namely,
from the hands of him who risks
will
real
tax
a
program,
will
sec¬
term
program
a
be
sound, a program
which will prove to the world that
in
times
of
peace
America, by
wise
tax
laws, by wise spending,
a
strong national de¬
have
can
fense,
strong economy at home,
a
that
and
will
we
do
That
.
what
is
Means
and
of
we,
in
that
all
peacetime.
„
the Watfr,
of the
Republican Party, we in Congress,
are
trying to give the American.
people under the Eisenhower Ad¬
Committee,
we
ministration.
i
•
.
'
!/■*
v
Joins
Hemphill, Noyes
..[■ (Special to The Financial Chronicle)
BEVERLY
bur
HILLS, Calif.—Wil¬
Morris
A.
with
nected
has
become
Hemphill,
con¬
&
Noyes
Co., 9478 Santa Monica Boulevard.
Mr.
A.
Morris
&
with
previously
was
Morris
W.
Co.
•
.
,
Reynolds Adds to Staff
r
(Special to The Financial Chronicle)
SANTA ROSA,
Jones is
nolds
now
&
Building.
Calif.—Alfred S.
connected with Rey¬
Trust
American
Co.,
He
was
formerly with
Wilson, Johnson & Higgins.
Merrill
.j
Lynch Adds
(Special to The Financial Chronicle)
LOS
rice
ANGELES,
to
Lynch,
Pierce,
West
has
staff
the
added
523
Calif. —Mau¬
Heffernan
M.
of
been
Merrill
Fenner &
Beane,
Street.
Sixth
.J*-"""
ages
abroad
abroad—that is the way
this question—encour¬
American
and
help
money
to
go
build
up
the
abroad.
have
changed
economy
We
that
has
what
been
••
_
law
the
the
v
so
Western
Hemisphere tax rate of 38%,
as
* '
contrasted with 52%
applicable to
American producers here at home,
will apply to American businesses
abroad in Europe, as it does today
in the Western Hemisphere, with
a
limitation,
however,
the
upon
...is the
ability levy that 38% tax rate, the
limitation being that if more than
25% of the product of that indus¬
then the
country,
that may
rent
your
shall
is
the
be
a
in
the
of
abroad
and
a
of American
earnings
to
corporations
change in normal
part perhaps of the
point four program. It is designed
to
help us
while it helps the
a
how it is done. And it is
it
will
on
work.
think
cer
justified,
if
we
day save your
life, phone the American Can¬
or
that basis. I think
I
El Any
boiyel habits.
For other facts about cancer
that may some
people abroad build up their eco¬
nomies, a way for us to show them
apparently,
>■
swallowing Iffil (above)
businesses over there.
Well, it is
Society office nearest you,
write to "Cancer"-in care
of your
get
local Post Office.
t
American
can
up
know-how
money
.
and Ameri¬
abroad, and we build
the plants over there and sell
*-!
I
>
(f-.
i-
*
not heal
of that provision,
law as it passed
rate
:
.
signals
H Any sore that does
O A lump or thick¬
ening, in the breast or else¬
where H Unusual bleeding or
discharge jO Any change in a
wart or mole
fgl Persistent
indigestion or difficulty in
way
purpose
is
doctor.
are-
of going after
business abroad, and it appears to
But
(V-
cancer...but*
visit to
mean
The other six danger
at home.
rate here
it
rate
signals
should always mean a
but shall be the cur¬
be 38%
not
sixth of the seven'
commonest danger
try abroad is intended for sale in
38%
then in an¬
other year remove still more of
our corporate earnings from that
that,
answer
tion
say,
prove
I
we
established
us
which
build
Eisen¬
in the
half of this second
reduction
permitting the applica¬
"Let's get the principle
again.
Let's
prove
that that money which would go
into taxes will go back into busi¬
ness and provide more jobs.
Let
they
economy
the House,
didn't
the
provision of which, in the in¬
expanding the American
which
unhappy
which
terest of
we
went too
But those who say we
far.
Now,
foundation
firmer
upon
tax.
this
I
we
bill which will
a
still
hower Administration
favorable acceptance of this
wide
time
tax
Code,
a
taxwise
does
not
or
factor of
one
Treal-
The
conference, and
reasonable
constructively
Everything
taxed
the corpo¬
the money
again to the man who risked
his capital in creating that cor¬
poration, as income to him. And
twice,
rate
provide
ond
Defects
Some
the
a
the
bill of 1954, a
bill which will revise the Internal
proper
and to keeping your ac¬
counts "straight with government.
one
Chamber
The
in
or
law,
another area which will
please business and which is in
accord, I a,m sure, with wise busi¬
ness
practice, is to permit the
think it is far enough to go, as
carrying back of corporate losses
we have already done, or perhaps
for an additional year, all tending
because
of
the
expense
to the
to average out the earnings of a
Treasury involved in still 'further
corporation, instead of forcing a
liberalizing or changing that lav;.
high payment in one year and no
But it is a subject which will
payment in the following year,
receive a continuing study.
depending
upon
the
earnings,
It is a subject which certainly
permitting the carrying back of
won't hold up the passage of this
the losses, and in effect the aver¬
law, nor should it.
aging of the income of the cor¬
But it is a subject which will,
poration
over
a
period of six
we are convinced, help American
years, rather than as the law is
business in the future.
today. It is a sound accounting
There are dozens of items in
principle, I am told. It is desirable
the bill which will benefit you
and advantageous to the business
and
your
industry.
There
are
world.
many which will benefit you and
One could
go
on
indefinitely
will benefit me, as individuals, as
talking of different factors within
we
prepare our personal tax re¬
this bill, pointing out that which
turns, as we take credit for de¬ affects the insurance field, that
ductions, and exemptions denied which affects the
private indi¬
us today and yet permissable un¬
vidual as he undertakes to invest
der that law, for they are recog¬
his money wisely, that which af¬
nized
as
right and sound, and fects the matter of depletion with
they will be permitted under the
respect to minerals. * One could
law on which we are presently
talk about the foreign tax credits,
working.
* ""nil..
Ways and Means Commit¬
is
upon
little
Treasury,
help the world get back-on
its feet.
ac¬
profit
of the
tionnaires
preparation of
the Revision
the
what today is called
businesses
not have confidence
of legislation.
passage
he, after receiving the af¬
firmative vote of that committee,
And
in
did
Committee
Republican victory,
Republican Adminis¬
would
consider,
there
great
which started well
ago, when Mr. Reed,
•believing that by cutting the tax,
we
that help is
a
the
tration
He
the
Revenue, stated that he,
Internal
anticipating
hoped
help
to
is, I repeat,
Joint
the
before
tions
pire as was provided by law.
Secondly,
consid¬
being
now
the Senate Finance Com¬
ered by
piecemeal
Spending
in line with the
personal
take
Measure
bill
this
In
ing law, conflicting!, positions, in¬
consistencies, a vast amount of
couple of years ago.
It
on
Good
Bill—A
There
would
economy
again.
Revision
Tax
The
at the hour
ington.
It is
astronomical figure,
14, 15, or
more billions of dollars, which is
if
took over and
we
to set
undertook
a
and, I hope, trusting,
and see what we
20 months.
And I
look
done in
needed.
or
to
we
as
country
are
good
did.
I
think the American people should
far
as
about how much
spending less than
you
we
money
in
and
20
20 years
doing
are
we
gone
Hughes will undoubt¬
Rowland
edly
it
think
have
problems in front of us.
to
in
undo
to
perpetrate.
I
home. We don't call you lobbyists
because
able
been
months that which took
of your
one
and
can't
I
can.
changes probably some expense.
Recognizing that probably 3,000
changes are already made, that
should
this
to
able
that
reason
liberal
some
like to do
but unfortunately we aren't
do, simply because we
year,
accom¬
any
could
33
of course, eagerly watch¬
ing what happens in the Senate
as
they revise and amend ! the
recommended
to
the
Committee bill. They will be
doing that with¬
by the Comptroller's Institute, by in the next week or two weeks,
various other associations of em¬
following which the bill will go to
ployers,
manufacturing
And
I
surmise that
groups, conference.
tax accounting groups, and so on, there
will
not
be
any
serious
all pointing out theories of ac¬ trouble either on the floor of the
I
with
of the
will do
would
we
been
or
countants
there is involved in each of these
will correct inequities,
which
bill
things
has
plished today—for the
should
revision bill,
have the
now
not
advisable,
additional risk
need
re¬
cooperation.
accomplished.
many
what
these
long
the
But
that that $999 million will
problems; but all
tending to show a comprehension
and an
appreciation and deter¬
mination to carry out the work of
the
in¬
pand;
We
foreign
is
would
areas
the
business will
about
with
in
almost harmonious
their
everything has
Certainly not
everything
you
might
wish,
everything that you, the Treasury,
and the Committee might believe
and I believe the Federal
take
tax
try to answer; some dealing
even
those
in
crease,
an
Certainly
Improving the Tax Laws
I have been repeatedly under
now be¬
Committee rep¬
Finance
of
been
In deeds during the past year. For
in
Treasury.
dividend
a
are many
about which Mr.
areas
interestingly
the
earns
And in this bill there
hundreds of
fore
:
,
_
Colin
Mr.
Andrews
sult
from
of
capital and
thereirom.
sentatives
excessively expensive. The time
has come for a careful reappraisal in light of all the facts
of today and the events of history.
Continued
direction
his
the past year and a half, working
in closest conjunction with repre¬
needless and
be
recommendations.
Stam, who has devoted his com¬
plete efforts to that problem for
In other circumstances the loss of them
least of the evils.
the
der
circum¬
some
catalogued.
They
analyzed by our experts un¬
your
were
were
be unavoidable, and such loss could be the
stances may
could
Loss of them in
allies and friends.
our
in
They
presently find our¬
may
(2013)
i
American Cancer Society
*
'
34
(2014)
The Commercial and Financial Chronicle
I
$5,000, declined to 28 from 39 and were only
slightly above their 1953 total of 26 for the comparable week.
Twenty-live concerns succumbed with liabilities of more than
The State of Trade and
Industry
2,700,000 units.
to show near
Gearing their production close to the selling rate, domestic
factories scheduled 144,677 cars and trucks for completion^ last
with the eight-month high of 147,152 established
previous week. The same week a year ago netted 172,706
completions.
week compared
in the
estimated April output at 529,000 car's and 97,000
'"Ward's"
Stages, plants, compared with
United
for
trucks
Wholesale Food
in the industry's No. 1 spot with a January-April
compared with 497,700 for Ford which built an
128,100 cars this month. It also noted that Packard be¬
of 498,900
estimated
gins a two-week plant shutdown this. week.
The downward adjustment in the steel
Wholesale
whole
a
industry has been
«
.
Steel sales,
as
are
com¬
•
it states, are no longer dropping and steel prices
remaining steady. The national steel ingot produc¬
tion rate is holding
firmly at the slightly increased level it attained
two weeks ago.
1
Principally responsible for the turn-around is the completion
of
inventory
stimulants of
and the
reductions
at
off-chance of
an
metalworking
many
plants,
the
and
steel-workers' strike this summer
a
Either of
flood of buyers into the market
explosive international situation in Indo-China.
them, it adas, could catapult
a
for steel.
inventory reductions is not limitbd to steel
consumers.
Some steel producers have reached their goal on re¬
duction of stocks of semifinished steel, says "Steel."
Completion
of
holds a promise of improvement in steel output. A
by "Steel" showed consumers expect to take 3.7% more
May
survey
steel that
month than
tions of steel inventory
by some of the steel
This reflects continued comple¬
March.
in
reductions and reports
on
May bookings
bear this out, states
companies
this trade
weekly.
One of the
look.
for encouragement is the construction out¬
reasons
A good volume
of construction work continues to come out,
and considerable future work is on the drawing boards. Indicative
of the strength of construction, 8.2% of all finished steel shipped
by mills this year is structural shapes, declares "Steel." In all
of last year they totaled only 6.3%.
The biggest user of cold-rolled carbon sheets, the automobile
industry, is not making as many cars now as it did this time last
year, but it still is a big taker of steel.
U. S. automobile output
thus far this year is only 10% behind that for the comparable
period of 1953, concludes this trade magazine.
The
American
Iron
and
Institute
Steel
of 15.1%.
announced
the
that
Blair
Rollins
duripg the
latest week.
price index, compiled by Dun & Bradstreet, Inc., finished at 275.90
April 27, as compared with 277.82 a week earlier, and with
the corresponding date last year.
on
featured
movements
leading grain markets last
week. Wheat displayed early firmness aided by moderate export
business and strength in cash markets.
Some easiness developed later as the result of scattered rain¬
fall in the hard Winter wheat sections of the
While
it
is
the
drought
situation
has
been
Southwest.
temporarily
generally expected that abandonment will
usual.
relieved,
heavier
be
than
Corn finished
slightly lower for the week, reflecting morp
liberal marketings and the steady distribution of Governmentowned grain from previous years' crops. Soybean prices rose to
the highest levels in six years in the heaviest trading on record.
Trading in all grain and soybean futures on the Chicago Board of
Trade two weeks ago rose to a daily average of 60,600,000 bushels,
from 46,400,000 in the previous week, und 36,600,000 in the same
week last year.
Cocoa
O
lower
moved
most
of
the
week
but
•
' ;/
went
higher in final sessions to score a slight gain over a week ago.
Late buying was largely influenced by firmness in outside mar¬
kets and
a
better tone in London.
Warehouse stocks of
cocoa
Illuminating
to 105,313 bags, from 97,213 a week earlier, and 66,059 a year
ago.
The domestic raw sugar market was dull with prices gen¬
erally holding steady. Trade in lard continued active with prices
working lower in the latter part of the week. Chicago livestock
markets developed considerable weakness the past week with
prices for steers, hcr;s and lambs down sharply as the result of
heavy market receipts.
Spot cotton prices advanced moderately in the week as in¬
quiries from both domestic and foreign sources continued fairly
numerous.
Domestic mill buying and concern over the Indo-China situa¬
tion were factors in the rise.
Sales
with
of
prices for
during
some
the week
smallest
kinds
most
weekly
1953-crop cotton
of
cotton
gray
goods continued limited
constructions easier.
CCC
loan
repayments
ended
April 16 decreased to 52,900 bales, the
volume in two months.
Loans outstanding on
as
of April
16
101.086%
yield
Co.
and
at
2.95%.
The
price
a
accrued
interest
group
won
of the issue at competitive
on
Tuesday
on
bid
a
of
100.517% and accrued interest.
The
company intends to apply
the proceeds of the
offering to re¬
short-term
pay
bank
loans
pres¬
ently amounting to $1,500,000 and
the balance to finance current
and
proposed property additions. The
property additions represented by
the
unexpended portion of the
present capital expenditures
budget aggregate approximately
$54 million and comprise projects
which
will
be
next several
The
paid for
the
over
years.
bonds
redeemable
are
at
prices
ranging from 104.09% to
plus accrued interest.
The Cleveland Electric Illumi¬
par.
nating Co. is engaged in the
the
sale
of electric energy
pro¬
in
and
transmission, distribution and
thereof for light, heat and
.
power
in
purposes
were
up
and
1989, of The Cleveland Elec¬
duction
sharply
Inc.
due
sale
The daily wholesale commodity
Offered
Co.,
tric
award
The general commodity price level trended moderately down¬
ward
&
Baxter, Williams & Co. and as¬
sociates, are offering $20,000,000
first mortgage bonds, -3% series
to
Commodity Price Index Trends Lower
Irregular Activity in Grain Markets
Due to
Irregular
magazine of metalworking, the
pleted, says "Steel," the weekly
current week.
compared
on
Scheduled at Lower Rate This Week
Bonds
Brad-
of
278.97
Steel Output
&
index for
of
and its chief function is to show the general
trend of food prices at the wholesale level.
back
put it
total
Illuminating 3%
Registers Mild Drop
The index represents the sum total of the price per pound
140,000 car completions in April by Chevrolet
that
stated
It
Index
31 foods in general use
100,987, respectively, in March.
and
Price
The wholesale food price index, compiled by Dun
street, Inc., displayed a mild downturn last week. The
April 27 fell to $7.39, from $7.41 the week preceding. It
with $6.42 on the corresponding date a year ago, a rise
526,000
even
an
Cleveland Electric
$100,000, compared with 19 in the previous week.
with the first-half of 1954 expected
of this year,
sale
car
new
Thursday, May 6, 1954
with liabilities under
5
Continued jrom page
...
an
area
ex¬
tending nearly 100 miles along the
south shore of Lake Erie
compris¬
ing
approximately
1,700
square
miles.
The company is also en¬
gaged in the production, distribu¬
tion, and sale of steam for heating
and
other
town
purposes
business
in
the
down¬
of
Cleve¬
section
land.
Total
revenues
in
1953
$91,824,054 and net income
year
pares
wds
$14,765,329.
with total
874,597
and
net
were
for the
This
revenues
income
669,557 for the previous
com¬
of $86,of
$12,-
year.
:
reported at 6,038,000 bales.
were
operating rate of steel companies having 96.1% of the steelmaking
capacity foi4 the entire industry will be at an average of 67.3% of
The Census Bureau reported mill
consumption of cotton per work¬
capacity
since 1940.
for
the
week
beginning
May
1954, equivalent to
as against 1,637,000
3,
1,604,000 tons of ingots and steel for castings,
tons and
68.7%
based
on
For the
a week ago.
ingot production rate for the weeks in 1954 is
annual
capacity of 124,330,410 tons
like week
duction 1,622,000
a
tons.
month
A year
placed at 2,259,000 tons
was
or
comparable because capacity
percentage figures for last
117,547,470 tons
as
the rate
ago
ago
year
pro¬
The operating rate is not
lower than capacity in 1954.
are
based
on
annual
The
capacity of
of Jan. 1, 1953.
Electric Output Turns Upward in Latest Week
The amount of electric energy distributed
and
by the electric light
industry for the week ended Saturday, May 1, 1954,
power
estimated at 8,390,000,000 kwh., according to the Edison Elec¬
tric Institute.
was
The current figure represents an increase of
above the preceding week and an increase of
133,000,000 kwh.
451,000,000 kwh., or
5.7%
the
over
comparable
1953
week
and
1,441,000
kwh.
over
the like week in 1952.
Car
revenue
freight for
the
week
ended
Loadings totaled
19.9%
below
or
U. S. Auto
626,181
cars,
a
decrease of
153,623
24,
week,
cars
or
corresponding 1953 week, and a decrease
19.7% below the corresponding week in 1952.
of
the
Output Last Week Declined Below Level of
Preceding Period
Automotive
production for the latest week ended Aoril 30,
according to "Ward's Automotive Reports," assembled an estimated
122,430 cars, compared with 125,269 (revised) in the previous
week. A year ago the
weekly production was 142,149.
Last week, the
agency reported there were 22,247 trucks made
in this country, as
against 21,883 (revised) in the previous week
and 30,557 in the like 1953 week.
"Ward's" estimated Canadian
plants turned out 8,904 cars and
1,942 trucks last week, against 8,679 cars and
1,879 trucks in the
preceding week and 8,879 cars and 3,215 trucks in the comparable
1953 week.
;
Business Failures Increase Slightly
Commercial and industrial failures
slightly to 234 in the
week ended April 29 from 229 in
the preceding week, according
to Dun &
Bradstreet, Inc. While casualties continued far above
rose
the 169 which occurred a year
ago and the 150 in 1952, they were
28% below the pre-war toll of 326 in the similar week
of 1939.
The
week's mild upturn was concentrated
among failures
with liabilities of $5,000 or
more; these increased to 206 from 190
last week and 143
a
year ago.
On the other hand, small casualties
period ended
volume for the similar period.
a
Year
Ago
on
Post-Easter clearances stimulated
retail activity in some
areas, and actual
equal to
or
buying continued roughly
above current production.
The total dollar volurhe of retail trade in the week
was esti¬
mated by Dun &
Bradstreet, Inc., to be from 2% to 6% below the
level of a year ago. Regional estimates varied
from the compar¬
able 1953 levels by the
following percentages: New England 0 to
-f 4; East —4 to —8; South f 1 to —2; Southwest and Northwest
+ 3 to +7; Midwest —1 to +3; Pacific Coast —1 to —5.
The demand for women's and children's
for
cotton
Men's
apparel, particularly
dresses, blouses and shoes, continued seasonally high.
sales last week were higher than in the
corresponding
wear
period last year; suits of tropical blended fibers took the lead and
cords began to move in some stores.
There was a marked trend
darker
colors
used
and
pinks
in
men's
sportswear, with
polo
selling well.
Automobile
April
the
Wednesday of last week
the previous week and slipped below the
year-ago
decreased from
toward
1954, increased 13,297 cars, or 2.2% above the preceding
according to the Association of American Railroads.
153,308 cars
Retail sales in
and T-shirts
of
Registers Lower Trend, Both for >
Week and Like Period
Loadings 2.2% Higher Than Week Ago
Loadings
/
of Jan. 1, 1954.
68.0% and
the actual weekly production
100.2%.
was
as
was
'
.
Trade Volume
(actual)
The industry's
now
ing day in March at 33.800 bales, the second lowest March average
models,
as
volume
a
result
increased
of
strong
liberal trades.
moderately, particularly, in
promotions, long terms, and
Wholesale volume in the period ended on
Wednesday of the
past week declined moderately from the previous week and re¬
mained substantially below the
year-ago level.
The lack of increase in current volume was
partially attrib¬
uted to continued large
inventories, recently trimmed somewhat,
but still considered top-heavy by
many buyers.
The rate of
inventory reduction in April was estimated to be
about equal to that reported for March.
Department store sales on a country-wide basis as taken from
the Federal Reserve Board's index for
the (week ended April
24,
1954 decreased 2% under the level of
the preceding week. In the
previous week, April 17, -1954, an increase of
12% was reported
from that of the similar week in 1953.
For the four weeks ended
April 24, 1954, an increase of 3% was reported. For the
period
;Jan. 1 to April 24,
1954, department store sales registered a de¬
crease of 3% below the
corresponding period of 1953.
Retail
sales volume last
week
dipped according to trade
estimates about 10% under that of last
year, due to cool and rainy
weather.
According to the Federal Reserve Board's index
department
City for the weekly period ended April
1954, registered a decrease of 5% below the like
store sales in New York
24,
last year.
11%
period of
In the preceding week, April 17,
1954, an increase of
was reported from that of the similar week in
1953,
(revised)
while for the four weeks ended
April 24, 1954, an increase of 5%
reported. For the period -Jan. 1 to April
17, 1954, no change
was registered from that of the
1953 period.
was
*
Jan.
Comparison pericd begins with
5-10
week
in
1953.
the Jan. 4-9
week
in
1954
and
with
th«
HOVlR l»Df
am®
%
£
Volume 179
Number 5322
-
The Commercial and Financial Chronicle
...
(2015)
The
Indications of Current
following statistical tabulations
latest week
Business Activity
week
or
or
month available.
month ended
Latest
AMERICAN
IRON
Indicated
steel
AND
(percent of capacity)
May
Equivalent to—
Steel
Crude
PETROLEUM
oil
and
Week
Ago
Ago
I6T.3
9
*63.7
68.0
(net tons)
May
§1,604,000
9
ALUMINUM
1,622,000
*1,637,000
2,259,000
(bbls.
average
6,452,1^0
6,539,950
Apr. 24
116,812,000
6,915,000
7,000,000
6,827,000
Apr. 24
Apr. 24
23,319,000
23,598,000
24,088.000
22,754,000
2,155,000
2,119.000
2,539,000
9,418,000
9,831,000
10,370,000
9,597,000
8,361,000
8,454,000
8,371,000
8,859,000
(bbls.)
stills—daily average
(bbls.)
;
;
———
—
.
Kerosene
Distillate
fuel
at--—.;—!
(bbls.)
Residual
fuel
ASSOCIATION
.Revenue
.
178,923,000
180,384,000
17,527,000
17,989,000
SERVE
58,932,000
57,034,000
61,435,000
in
millions
Total
122,339
104,460
42,735
10,502
$27,478
$25,940
21, iol
19,3H-
9,800
9,915
8,799
5,200
5,377
5.197
1,574
1,570
4,326
Mar"
end of
110,480
58,494
20,yuo
at
Apr. 24
43,779,000
43,265,000
44,093,000
39.034,000
4,289
Apr. 24
626,181
612,884
601,426
3.951
6,327
6,555
565,866
572,808
588,724
-
—
goods.modernization loans
loans
1,436
K
credit
Single payment
674,001
credit
consumer
feisjnal
779,804
cars)—Apr. 24
term
31:
credit
Noninstalment
of cars)
March
credit
Repair and
RAILROADS:
SERIES—EstK
intermediate
of
consumer
Other
REVISED
and
as
Automobile
60,096,000
(number
Ago
3.
$27,150
(short tons)
SYSTEM
short
mated
18,935,000
Apr. 24
fieight loaded
Year
Month
CONSUMER CREDIT OUTSTANDING—BOARD
OF GOVERNORS OF THE FEDERAL RE¬
156,747,000
18,518,000
at
AMERICAN
of that dates
Previous
MINES):
primary aluminum in the U.
Instalment
178,033,000
Apr. 24
.
(bbls.)
oil
OF
—,
6,278,300
(bbls.)
oil
OF
(in short tons)—Month of March
2,534,000
(bbls.)
__Apr. 24
(Residual fuel oil output (bbls.)
Apr. 24
V '/• Stocks at
refineries, bulk terminals, in transit, In pipe lines—
Finished and unfinished gasoline (bbls.) at
—Apr. 24
to
output
are as
of
6,586,450
Kerosene output (bbls.):
Distillate fuel oil output
(BUREAU
Stocks of aluminum
output—dally
of quotations,
cases
either for the
are
Month
Apr. 24
Gasoline
in
or,
.
100.2
Production of
42 gallons each)
Crude runs
Dates shown in first column
that date,
Latest
INSTITUTE:
condensate
production and other figures for the
cover
Year
l
ingots and castings
AMERICAN
Month
Wees
INSTITUTE:
STEEL
operations
Previous
on
35
6,251
Revenue
CIVIL
Ireight
received
ENGINEERING
connections
from
CONSTRUCTION
of
(no.
loans
'AU1J
2,U£>4
2,211
Charge
accounts
2,433
2,550
2,613
Service
•
credit
1,740
1,723
1,731
114.8
115.0
113.6
112.1
112.6
111.7
111.4
112.0
111.3
121.2
121.3
117.7
109.5
109.7
107.4
ENGINEERING
—
NEWS-RECORD:
Total
construction
-
and
—
$247,952,000
144,295,000
152,653,000
198,852,000
95,299,000
130,689,000
187,988,000
76,596,000
75,933,000
113,699,000
162,392,000
19,366,00Q
16,990,000
25,596,000
Apr. 29
coal
$329,541,000
CONSUMER PRICE INDEX
185,125,000
96,808,000
-
$373,113,000
Month
All
and
lignite
Food
Pennsylvania anthracite
STORE
(tons)
AVERAGE
*6,645,000
6,670,000
hcme__
at
443,000
479,000
474,000
511,000
and
Meats,
9,022,000
poultry
bakery products
102
118
100
fish
104
108.0
luy.o
110.3
vegetables
107.8
108.0
115.5
home
112.3
114.0
103.1
119.0
118.9
116.8
128.0
127.9
107.6
107.5
106.5
125.8
126.2
124.4
107.2
107.2
108.0
117.5
117.3
114.0
104.3
and
Other
—Apr. 24
and
Dairy products
Fruits
RESERVE
100
=
6,740,000
Apr. 24
—
INDEX—FEDERAL
SALES
SYSTEM—11)47-4!)
Apr. 24
I 00
—
Food
Cereals
(tons)
l!)47-4!)
—
of March:
items
S. BUREAU OF MINES):
(U.
DEPARTMENT
$241,103,000
.
.s_.
__
.
municipal
OUTPUT
Bituminous
-—Apr. 29
Apr. 29
_
,
—
construction
State
COAL
construction-—
S.
Public
——Apr. 29
20,212,000
U.
Private
104.7
104.7
129.0
129.4
129.3
124.4
124.1
119.5
foods
—
at
Housing
Rent
EDISON
ELECTRIC
Electric
(in
output
FAILURES
INSTITUTE:
AGE
INDUSTRIAL)
AND
—
1
8,390,000
8,257,000
8,463,000
7,939,000
&
DUN
steel
iron
(per
234
Apr. 27
Apr. 27
Apr. 27
4.634c
Scrap steel
(per
METAL PRICES
ton)
gross
(E.
—
ton)
gross
229
267
169
and
fuel
oil
Household
.
operation
4.634c
4.634c
4.376c
$56.59
$56.59
$56.59
$25.67
$24.33
Medical
$55.26
$26.17
;
Transportation
$39.33
Personal
Other
___
care
.
121.7
112.4
:
114.1
113.9
recreation
108.2
108.0
107.7
and
120.1
120.2
117.5
care
Reading
QUOTATIONS):
J.
M.
&
fuels
Apparel
lb.)
(per
electricity
Housefurnishings
—Apr. 29
INC
and
Solid
COMPOSITE PRICES:
Finished
Pig
kwh.)_.
000
(COMMERCIAL
BRADSTREET,
IRON
Gas
—May
and
goods
services
Electrolytic copper
Domestic refinery
Export
Straits
Lead
Apr. 28
29.700c
29.700c
29.700c
29.675c
Apr. 28
29.600c
29.625c
29.125c
30.175c
Apr. 28
95.750c
95.250c
94.000c
96.500c
__Apr. 28
14.000c
14.000c
13:250c
12.000c
at-
refinery
at
(New
York)
tin
(New
Lead
(St.
Zinc
York)
(East
at
Louis)
St.
at
at
at.*
MOODY'S BOND PRICES
—Apr. 28
13.800c
13.800c
13.050c
10.250c
10.250c
10.250c
4
100.51
100.45
100.22
Stocks
110.70-
Cotton
March
Baa
—
Railroad
Public
Group
Utilities
Industrials
MOODY'S
Group
Group
104.14
115.63
116.02
112.93
113.12
106.04
4
110.34
110.34
110.34
103.64
UCTS—DEPT.
4
104.66
104.66
104.66
100.00
109.42
109.42
109.60
102.63
110.70
110170
4
112.19 V
112.19
28
1,806,301
10,522,907
March
of
99,152
1,941,715
6,345,757
137,317
1,528,541
March
28
—
1,460,629
1,104,396
19,626,000
__
of
as
769,496
684,367
1,824,034
ll,488,5ol
94,559
19,656,000
20,290,000
March:
4
4
845,036
of Mar.
107.44
112.75
4'
110.70
106.56
AND
COTTON
OF
SEED
PROD¬
COMMERCE—Month
of
Seed—
Cotton
103.47
'112.37
"
SEED
COTTON
Received at mills
drushed
AVERAGES:
DAILY
YIELD
BOND
110.88
115.63
4
May
May
May
J
A
110.70
4
May
•
month
23—
May
—I—————--May
.
as
of M?.rch 28
as
spindles active
May
,
-
Aa
March
public storage
May
Average corporate—.
Aaa
of
consuming establishments
Linters—Consumed
COM¬
OF
BALES:
mcntbs
In
92.06
——~———-May
DEPT.
—
In
AVERAGES:
DAILY
U. S. Government Bonds
LINTERS
RUNNING
—
Lint—Consumed
11.000c
--
AND
MERCE
11.800c
Apr. 28
i——
.
Louis)
COTTON
Stocks
(tons)
112,784
38,317
597,568
623,650
479,620
1,332,089
1,879,379
949,436
50,278
-
(tons)
(tonsi
March
31
*
U. S. Government
Average
Bonds
—May
corporate
4
May
4
■
2.46
2.46
2.48
3.13
3.12
3.50
2.87
Aa
Crude
3.08
3.13
f
2.87
2.85
3.31
3.39
*—May
4
3.02
3.01
3.00
May
4
3.15
3.15
3.15
May
4
3.47
3.47
3.47
4
3.20
3.20
3.19
3.59
May
4
3.13
3.13
3.13
3.54
—May
4
3.05
3.05
3.04
3.36
May
4
434.6
440.9
438.6
418.3
-
!
Baa
Railroad
Public
Group
Utilities
Industrials
Group
Group
(pounds) March 31
3.53
Refined
Stocks
INDEX
COMMODITY
NATIONAL
and
Orders received
Apr. 24
199,437
209,612
222,161
Unfilled
activity
225,054
242,332
239,337
245,157
85
91
90
orders
95
350,355
378,774
355,230
454,897
AVERAGE
=
100
109.77
109.50
108.12
'106.60
LOT
DEALERS
—
SPECIALISTS
AND
Number of shares
_
Customers'
short
other
sales
Dollar
value
Round-lot
849,612
sales
$45,365,398
,077,922
$37,530,870
$32,580,065
Apr. 17
843.92L
1,005,027
908,256
6,306
7,855
900,401
226,576
213,459
188,968
196,548
152,408
175,851
199,817
331,459
914'
,018,685
$42,732,365
$38,099,914
Apr. 17
number of shares——:
.
;
Apr, 17
-Apr. 17
\
Fiber
1,075
1,612
1,269
1,188
1,377
1,430
1,175
1,309
8,751
8,468
13,379
-
etc.
(1,000 pounds)—
''
—
_i
L
3,328
3,288
2,916
3,045
3,627
2,382
22,846,000
22,897,000
22,958,000
19,626,000
19,o56,000
20,221,000
10,739,000
8,697,000
9,635,000
432.0
442.1
481.7
633,002
*534,143
700,685
531,529
*446,676
566,320
101,177
*87,141
134,129
296
-
Shipped
283,815
316,220
305,420
208,640
283115
316,220
305" 420
316,910
251,110
SPINNING
(DEPT.
Spinning spindles
In
Spinning spind.es
208,640
217,310
326
236
$1,687,885
$1,513,425
—
active
253,050
Active
hours
spindle
Active
spindle
April
on
April
on
(000's
hours
COMMERCE):
OF
place
spindle
per
3-
—
3_
March
omitted)
in
place
>
TOTAL
ROUND-LOT STOCK SALES
EXCHANGE
FOR
ACCOUNT
PLANTS
<
-----—--Aor. 10
—■————Apr. 10
—---------Apr. 10
•——
:——
—
Total sales
OF
ACCOUNT
FOR
TRANSACTIONS
BOUND-LOT
IN
FACTORY
SALES
FROM
S.—AUTOMOBILE
U.
MANU¬
,
——
sales
VEHICLE
MOTOR
(SHARES):
MEMBERS
OF
Short sales
Other
N. V. STOCK
TRANSACTIONS
THE
ON
AND ROUND-LOT STOCK
Total Round-lot sales—
456,670
393,130
323,220
FACTURER'S
347,920
1,500,110
10,772,160
9,148,260
10,663,640
1,898,240
11,228,330
9,476,480
Jl, 011,560
Total
ASSN.—Month
number of vehicles
Number of
Number
passenger
of
motor
Number of
MEM¬
March:
of
motor
SPECIALISTS:
specialists In stocks in which registered—
-
—
cars—
—+,
trucks.—.-.
———_
coaches
BERS, EXCEPT ODD-LOT DEALERS AND
"transactions
'1
of
Total purchases
Short sales
Other
sales
—
——_——
—
—
purchases
sales
-————
Total sales
Other
.———
transactions
Total
Other
Totrft]
Total
HI I
.
tmmm — ■■■■..■ — —
-Apr. 10
—-.———--Apr. 10
>—
—:——Apr. 10
30,600
9,400
384,990
342,550
254,750
354,150
405,790
373,150
264,150
376,650
APr-1°
383,728
371,830
368,091
349,335
———*-Pr. 10
Apr. 10
— ——
— Apr. X 0
386,016
T —' rr
nr n
'tt
1-
—
—1
.
Total sales
PRICES,
NEW SERIES
100):
All
DEPT.
.
42,240
372,764
554,448
415,004
433,455
1;925,910
1,602,271
customers'
Market
value
of
value
of
314,100
229,000
SELECTED
1,760.088
1,384,324
1,703,925
2,074,183
1,613,324
1,936,855
Net
INCOME
of
railway
Other
110.9
110.0
111.1
111.3
100.4
101.1
99.9
99.8
105.4
105.6
105.0
105.3
95.3
flncludes 562,000 barrels of foreign c_rude runs,
1, 1953 basis of 117.541,470 tons.
tNumber of orders not reported since introduction of Month y Investment
93.8
94.7
114.6
95.0
new
744,360
129,122,311
124,905,523
118,222,952
107,976,396
107,646,029
99,535,255
U. 3. Govt. issues-
146,964
*120,844'
on
other collateral—.
1,078,526
*1,086,328
1,046,648
$32,574,078
$77,917,054
bonds..
114.4
113.3
Other
Net
annual
capacity of 124,330,410 tons as
-
//
U.
OF
S.
39,380
CLASS I
25,120,862
.
deductions
available
lixed
for
from
fixed
deductions
—
Dividend
(way & structure
income taxes
18,953,360
4,229,066
124,182,658
93.934,168
20,422,930
89,659,644
60,411,715
2,829,257
17,551,304
2,822,340:
17,593,673
57,589,375
43,490,236
40,791,575
19,267,909
—
72,108,340
43,142,434
—:—
& equipment)
Cr28,699,075
48,811,230
15,681,701
58,454,911
13,678,368
9,465,284
5,360,831
7,240.892
1.61
3.60
2.80
apropriations:
On
common
preferred
of
98,163,234
3,711,243
—
—
$80,069,353
18,093,881
143,136,018
53,983,697
——
,
income
Federal
income—...
65,218,964
57(694,940
+_
charges—
charges
Depreciation
Ratio
Plan.
ITEMS
operating income
On
on
-,2';
314,423
768,238
on
income
Income after
114.6
shares
listed
27,878
308,951
787,281
balances
34,976
312,023
S.
January:
Miscellaneous
§Eksed
free credit
U.
income v————w.
Total
OF
*
$1,716,250
39,413
in
(Interstate Commerce Commission)—
Cor
Mbnth
232,930
1,780,166
2,074,456
Apr. 27
banks
in
listed
borrowings
Member borrowings
1,837,025
1954, as against the Jan.
and
accounts-
customers
386,065
433,116
294,290
to
margin
debit balances——
net
Member
47,390
520,593
1,970,888
r'*Z
Apr- 27
farm and foods
Revised figure,
of Jan. 1,
33,850
47,100
Al,r- -7
Apr. -7
_
commodities other than
hand
on
Market
i
foods
carrying
extended
Income
products
Meats
*
S.
commodities—
Processed
All
U.
—
-~Apr' J 9
Apr. 10
Apr. 10
firms
Total of
=
Commodity Group—
Farm
Cash
RYS.
Apr. 10
,
—
(000's omitted):
Credit
22,500
—
EXCHANGE—As of March
Total customers'
20,800
sales
LABOR -(1947-49
31
Member
for account of members-
purchases
WHOLESALE
1,126,750
STOCK
YORK
963,710
934,170
328,500
.
Short sales
Other
756,810
1,146,590
226,390
291,210
•———
Mil
177,360
896,940
1,235,550
395,790
—
Transactions
NEW
163,040
249,650
1,009,160
392,600
—
--
sales
round-lot
Total
.
sales
1,159,190
off the floor—
initiated
purchases
Short sales
942,970
1,158,290
Apr. 10
—
—
Short sales
Other
1,139,560
the floor—
transactions initiated on
Total
— Apr• 10
——-—-Apr. 10
.Apr. 10
—;—
Total sales
Other
r—.——Apr. 10
—
_
-
197,301
(1,000-lb. bales)—
Produced
-
——Apr. 17
—
87,998
$27,679,814
—
..
-r-v—„
105,670
V
(running bales)—
688,769
——Apr. 17
.
82,479
88,486
138,347
114,598
Stocks March 31
10,682
998,721
—
,
94,568
-
—
(tons)
(tons)
Motes, Grabbots,
0^9,451''
3,733
845,188
——.
V
233,285
132,752
COTTON
purchases by dealers—
231,782
257,565
Shipped
752,077
dealers—
Short sales -J.—-————Other
999,957
1
Apr. 17
Number of shares—Total sales.
Round-lot
739,682
—.Apr. 17
——
294,428
Produced
.
—:
—
(tons) March 31
Stocks March 31
,
1
—
sales by
208,612
278,124
—
126,650
Hull
sales)t—
sales
Customers'
146,087
Produced
STOCK
-Apr. 17
—*—-———Apr. 17
Odd-lot purchases by dealers (customers'
Number of shares—Total sales
90,754,000
167,313
31
Shipped
——,
———
:
Y.
N.
169,882,000
141,894,000
Stocks March 31_
COMMISSION:
(customers' purchases) t—
Odd-lot sales by dealers
Dollar value
ON
EXCHANGE
811,815,000
188,791,000
167,032,000
(tons)
Shipped
Linters
Apr. 30
—
SECURITIES
1,177,790,000
197,063,000
256,893
March
(tons)
Produced
FOR ODD-LOT ACCOUNT OF ODD-
STOCK TRANSACTIONS
EXCHANGE
Stocks
INDEX—
REPORTER PRICE
OIL, PAINT AND DRUG
191!)
J
of period
at end
(tons)
182,406,000
Hulls-
184,365
Apr. 24
—Apr. 24
Apr. 24
(tons)
of
(tons)
Shipped
(tons)
Production
Percentage
165,269,000
202,671,000
Meal—
Produced
ASSOCIATION:
PAPERBOARD
184,165,000
207,447,000
1,166,643,000
(pounds) March 31
Produced (pounds)
Consumption (pounds)
Cake
149,973(000
184,799,000
200,632,000
211,435,000
Oil-
Stocks
MOODY'S
-
(pounds)
Shipped (pounds)
3.75
May
A
Oil—
Stocks
Produced
stock
income
stock
to
fixed charges-
,
v.'-"
36
(2016)
The Commercial and Financial Chronicle
Continued
from
sonnel between
12
page
March
time
Our Military Planning Linked to a
Stable but Dynamic Economy
without writing too many letters,
making too many reports and
having too much argument.
We
■ceiving the concerted and consci¬
entious effort of the military and
civilian
members
the
of
Defense
team.
pacity to quickly achieve mass
production of gfeat quantities of
military products if required,
all
Men, material, bases, activation of
organizational units, training
xates, activity rates, deployments
—all must be projected two and
three years into the future and
must be kept in balance.
Third, there is economy in op¬
new
This relates to the exe¬
eration.
cution
of
the
that
in
reflected
,
been
have
is
That
ceived
out
laid
the
the
the
are
those
farther down the line
little
over
a
done
this
in
which
Many
thousands
of
has
millions
literally
"been
and
in
waste
of
of
else's
they
waste
seen some
time
time,
or
some
something
realize could be
material,
that
done
services.
the
of his own
someone
waste
women—
them—have
of
of
out
Each of them has
—some
and
or
done better.
No
likes
but he would rather
money he is being
money,
that the
feel
paid is being earned.
n
m
LnpLi
a
thft
Hke to feel
a
He would
hp?LhwaSpHS(whithPr°hP
2TV
ifritJp
is
to waste
He will do it and collect
Lis time.
the
really
man
i
wnnld
Hp
personally his efw
fomethfn/
accomplishing something.
hp
It
is
what makes this country great.
Economy in operation, particu¬
larly,
requires
many
hundreds
and
men
Steps
women
are
and
age
interest
the
thousands
of
in
of
of
service.
the
being taken to encourcultivate this important
1
of
type
when
cooperation.
we
say
that
Therefore,
objective is
our
to achieve more defense for every
Jt
dollar spent, I would like to emphasize that we expect to do this
t>y
making
intelligent
savings,
through economy in forces, economy in programming, and economy in operation.
These
factors
only a
We have
ago.
year
orderly
an
effectiveness
the
hurt
-
ganization
it
sure
manner
down
are
sonnel,
of
the
or¬
bit—in fact I feel
improved.
We
one
has
been
in military per¬
Improved utiliza¬
tion of manpower permitted a re¬
of
duction
'
170,000
military
per-
in forces.
omy
retaries
and
matter
no
The civilian Sec¬
assistants
to
-
gether with the top military peopie have the responsibility for
in
programming.
And
every member of the Defense organization has some responsibility
economy
for economy in operation.
New
t
I
Strategic
\f the
fu
Z
mentioned
/
levels.
very
I
feel
progress
in
He and his colleagues
responsible to Joseph Stalin
were
his
and
many
party and govern¬
mental deputies, but also had spe¬
cific
the
responsibilities to Gosplan,
State Planning Commission,
which
told
them
how
much
of
we
economy
are
in
llSt
civilian)
that only five of them
reduction
the fiscal year
There
is
problems
want
lots
in
(and I have known
for years) that the
you
you
is
Team
I just
But
of
Defense
discouraged.
We
not
many
to have survived the
seem
treatment."
In
due
spite of the
...
in solving
mag-
have
made
real
prpgress
fense program.
day
We have
and
morale
our
is
South
are
Calif. — C.
Phelps Wit¬
ANGELES,
have
of
j
to The Financial Chronicle)
and
Murrell
Jr.
staff
Dean
to the*
Co., 63£
added
been
Witter
&
Spring Street.
.
accrued
Cranmer Co.
(Special
to The
Opens
|
Financial Chronicle)
bid of 101.30.
bonds
call
30, 1983.
Proceeds will be used
frus¬
in
trations
;
DENVER, Colo. — Cjjh a p p e 11
are
redeemable at
Cranmer is engaging in a securi¬
prices ranging from ties business from offices at 200
104.93, if redeemed on or before
Cherry Street.
April 30, 1955 to 100 after April
in pro¬
no
1984,
1,
and
on a
The
regular
sound de¬
a
ter,
.
of our
difficult problems, while facing,
may I add, some less important
and
time-consuming ones.
We
many
viding the nation with
May
101.93%
nitude of the job, we have made
progress
LOS
Curtiss
priced at
interest, to
yield
3.15%.
The
issue was
awarded at competitive sale Tues¬
"snow
had total op¬
of $40,488,006'
Dean Witter Adds
(Special
Blyth & Co., Inc. heads a group
offering today (May 6) $15,000,000
in
first
mortgage bonds,
series A,
of Southern Counties
Gas Co. of California. The bonds,
record with all of
on
Ill
California.
in
company
erating revenues
against $35,100,000 in 1952.
Counties Gas Bonds
done,
counties
the
1953
$15,000,000 Southern
important
day.
every
to go
particu¬
are
Blyth Group Offers
total
be
to
and
new
you
at
other
1955 program and
still
face
we
that
bil¬
budget.
and
think
and expansion, esti$11,530,000 for 1954.
,*
Southern Counties Gas Co., is
an operating public
utility, serv¬
ing a total population estimated at
1,600,000 in Los Angeles and six
larly fortunate.
military personnel is called for by
good.
the
full
ness
Hugh Herndon
to repay
Hugh Herndon, associated with
R. H. Johnson & Co., New York.
company's
indebted¬
to its parent company, Paci¬
City, passed
73.
Corp., expected to
$6,500,000.
Balance
away
April 24 at the
age of
labor
on
ques-
tions, the Commissar of Finance
for
funds, and, most important of
all, to the party and the NKVD
for the performance and political
dependability of their entire orSanations.
"Aside from these reservations,
^ch Commissar was monarch in
his own realm. He could hire and
fire' subject to the approval of the
party,
the
unions,
trade
the
and
NKVD; he could suggest to. the
Gosplan changes in the plan; he
could request changes in the sell¬
ing prices of his products and
wage rates for his workers.
If his
industry as a whole made a profit,
he
could
small
of it,
usually about 5%, for bonuses for
his best workers.
If his industry
ran a deficit, he might be sent to
jaii f0r sabotage unless he could
furnish
tions,
use
some
or
other
a
part
excellent
a
pin the blame on some
(railroads,
commissariat
electric power, etc.).
.'Under
these
this much to
say
was not surprising
•
•Iffwiftm howevei,
sufficient,
ifioke
to
enough able people want to assume the responsibility of senior
administrative jobs, and the party
would frequently be compelled to
specificallv order
individual to
an
his
take a certain job."
0f it.
freely
find
to
one
factors
na-
have
employed: The United
States of America. We
have'mag-
our
month period would present
quite
achievements.
arp£°blem- better^iU have the job
We
of getting
material is nothing until
has devised
Don
a
After
use
all,
for it.
a
fraw
someone
New
who has almost
from
comes
Orleans
Security
.
Union Blnk Bldg., Nashville 3, Tenn,.
Traders
Association—John
Zollinger*.
J.
219 Carondelet Street, New Orleans 12, La„
Singer, Deane & Scribner, Union Trust Bldg., Pittsburgh 19, Pa*.
San Francisco Security Traders Association—Walter
&
i
Security Traders Association—Homer J. Bateman, Pacific:
Northwest Company, Exchange
accomplish¬
,
Vicino, Blytb
Co., Russ Bldg., San Francisco 4, Calif.
Seattle
Building, Seattle 4, Wash.
Security Traders Association of Connecticut—Adolph G.
to me, is the true
—
the- true
seems
Association—Ray C Martin, Temple-
Pittsburgh Securities Traders Association-J-Frank M. Ponticall, Jr.*.
Putnam &
This, it
Traders
Scharff-James Inc.,
ment."
American
»
■
Security
Securities Corp., Commerce
cure; he actually is sheltered or
isolated, but he is not secure in
the sense that he has the strength
which
Street, Kansas City 5, Mo.
1, Tenn.
parture from established routine
is 'taking a chance.' The net result is that he never is really se-
Starkel*. J.
Co., 6 Central Row, Hartford 4, Conn.
Security Traders Association of Detroit & Michigan—Harry A. Mc¬
position
Donald, Jr., McDonald-Moore & Co", Penobscot Bldg,, Detroit.
American
viewpoint.
American
industry does not fear change—it
26, Mich.
^
hurries toward
it
process
it
in
and
creates
the
only
Security
Traders Association of Los Angeles—J. C. Hecht, Jr.*.
Dempsey-Tegeler & Co., 210 W. 7th Street, Los Angeles 4, Calif*.
the
kind
0f
Security Traders Association of Portland—Paul A. Ludlam, MerrilF
Lynch, Pierce, Fenner & Beane, Wilcox Bldg., Portland 4, Oregon;
security that is worth very
much, the security of the vigor0us, the energetic
the productive
Security Traders Club of St. Louis—Herman J. Zinzer, DempseyTegeler & Co., 407 No. 8th Street, St.* Louis 1, Mo.
and
the strong.
I think then I would summarize
observations in
my
such
some
The Securities Dealers of North Carolina—Charles R.
way
Jt
Twin
TllA
ctril„fnro
simple
is
ours
:
industrial
a
snpiptv
dustrv is the heart and
core
curities
nn'r
society
yvy
pf
Team:
inrvp^^in^lv
mana&ement
dutv to
the
£
the risk tak
ho
fectively performed without
groups
of
the
customers,
—
Pf-
con
majo^
other
^
Points:
(Capt.), Nieman, Gannon, Tisch, Greenberg
Bonadio (Capt.), Craig,
Gronick, Bies, Demaye_
Burian (Capt.), Gavin,
Clemence, Montanye, Whiting
Manson (Capt.), Jacobs, Topol,
Weissman, H. Frankel
Klein (Capt.),
Fredericks, Murphy, Weseman, Mewing
t wh
rannot
ownGrq
)
Leone
c n r
whose first responsibility is to the
owners
Serlen
(Capt.), Rogers, Gold, Krumholz, Gersten
(Capt.), Hunt, Werkmeister, Swenson, Ghegan
Krisam (Capt.),
Pollack, Cohen, Smith, Strauss, Define—.
Kaiser
employees,
na-
Bean
tion.
(3) Industry performs its complex function — magnificently in
(Capt.), Bass, Valentine, Eiger, Bradley
Growney (Capt.), Corby, Siegel, Voccolli, Lienhardt
Meyer (Capt.), M. Meyer, Frankel, Wechsler, King
America—because
Hunter
climate
a
a
of
to this
we
beliefs
have
here
which
performance*
a
or
fvhether
for able
beliefs
world
k
I
night at Antlers, 8:30
is
have
where
hope
need
skills
public
to
Mitchell, Chairman of the lenges and that
35y^
31
28^
19
(' *
'
New York-Philadelphia
p.m.
Bowling Dinner To¬
Contact Sidney Jacobs for Your Reser¬
|
{
in
opinion
of
you
BOSTON SECURITIES TRADERS ASSOCIATION
many
of
you
The
con-
is
,v
a 4
fellows
meet'these
(
todav
are articulate in a
many
like
"
39^
.
great
vital force
would
See You All at
managers who hold these
dilation, who
41
George Leone
vations!
is
who
43
41^
22^
5 Point Club
Small.
(4) There
44
are
belief
a belief in change;
belief in risk-taking
and this is
true of an business
44V2
36
(Capt.), Brown, Alexander, Farrell, Barker
competition;
Big
•
Security Traders Association of New York, Inc. (STANY)'; "
Bowling League standing as of April 29, 1954, is as follows:■
diversity of viewpoints
a
rnpor*c
professional
H.;Alldritt, Mid Continent Se¬
Co., 806 Central Bldg., Wichita 2, Kansas.
SECURITY TRADERS ASSOCIATION OF NEW YORK
(2) fndustry performs its comPie* function-adjusting and con-
filiating
Bldg., St. Paul 1, Minn.
Wichita Bond Traders Club—Dan
in
of
City Security Traders Association—Fred S. Goth, Irving J» 1
Rice & Co., First National Bank
L compiex since
lt
Vance, Vance: j
Securities Corp., Jefferson Bldg., Greensboro, N. C.
this
as
great rewards—has Performed in- in
dustnal miracles for the
been freely
man
.
,
:
Nashville
phobia about security, any de-
a
ing calculated risks for the sake of vital
these
To the
enterprising communities, and, in fact, the
research
for the sake of the new, the more
efficient and the better—accept-
where
a
a
confident
sideration
new opportunities—using his native willingness to scrap the old
tion
who takes
Philadelphia?.
Memphis Security Dealers Associations-Frank D. Frederic, Equi¬
table Securities Corp., Union Planters Natl. Bank Bldg., Memphis
chance probchance at all.
mind, the socalled chance is really an opportunity and he will make the most
man
Bldg.,
Traders Association—Russell K. Sparks, E. F».
Hutton & Co., 121 W. 10th
way,
Philadelphia—Lewis P. Jacobyv
Commercial Trust
Co.,
&
Kansas City Security
from
ably isn't taking
m
it
comes
Or to put it another
doing.
Baker
Thayer
2, Pa.
you:
security is not a 'safe' job, nor a
good salary. Security comes from
'
circumstances
4° 11 ^he released energies of our
lo- people that account for
great
acquainted, uneach other quickly
me
8
Investment Traders Association of
.
.
"Let
explana-
position today,
out of the top 35 nPonl7L
outaof?hrrona35 people in
said;
page
NSTA Notes
ucts, Inc., speaking to the grad¬
uating class of Stevens last June,
in
Unions
from
Board of Sylvania Electrical Prod¬
of
Trade
Continued
Industry
the
K^dei5'mSn!!tL30aaS "T that ^ nificent resources but these alone
15 months ago.
In any big cannot explain our
further
a
but
per¬
Some shifting
year.
with, though not responsible to, the Central Council
had
derstanding
a
mated
United
save
taxpayers almost two
lion dollars
and
military
will
'associated'
manager—using
sure
(military and
States
and
itself
achievement, security
.
ered to be the top 35 men in the
and found
in
what they should produce, and at
what cost.
They were likewise
H abundantly clear that the
+
fmah f t
vi*
long ago of what I consid-
Pentagon
civilian
sonnel
construction
population—at the undiscov¬
potentialities of science (in¬
cluding the atom)—I can't help
effective utilization of
more
both
part of
become
ing
by
is anticipated.
fic
Lighting
approximate
country.
*iuaics
competitive,
strategic
Pl5ns made by the
making
This
proceeds will
the company's treasury funds and
will be used in connection with
ered
further
A
personnel
June 30 of this year
The Structure of
Studies
new
Jomt Chiefs and approved by the
President
as
the
basis
for
our
force
70,000
of
play 6, 1954
the expanding and developing
industrial scene—at our expand¬
Continued from page lo
~
their
of
As I look ahead
.Thursday,
at
same
_
that few Soviet
what our nation's defense pro- citizens wanted to be managers,
gram may be.
The Chiefs of Staff Party and government tried to fill
and their principal assistants have the vacuum at the top by giving
apply
units.
combat
our
saving
the
at
the effectiveness
up
some
also.
re¬
hundreds of
men
had
we
by not filling vacancies and by
moving people around a bit and
seeing that they have enough to
do.
I am sure that we have not
public attention
inefficiency has been
directed.
than
less
and at which most of the criticism
«f waste and
we
building
the stuff it takes.
January 1953 and
while
.
budgets.
annual
area
most
are
ana
because
getting along with 160,000 ci¬
are
vilians
plans and the ac¬
of the programs
complishment
committed
to
not
making
big, thick reports on why
we
are
going to do the wrong
thing and no one will be to blame.
We have improved the effec¬
tiveness of the civilian personnel
They are examining and
validating all planning
factors
and procedures used in the com¬
putation of manpower, materiel
and construction.
They are de¬
termining peacetime stock levels
and
war
reserve
requirements.
TThese reserve requirements in¬
clude both trained personnel and
plans for quickly training others,
i>oth stockpiled material and ca¬
of
1954
.
chal-
have
Boston
Securities
Traders
Association
will
hold
their-
35th annual outing at the South Shore Country Club, Hingham
Mass. on June 24. There will be golf, Softball, swimming anj
bowling for those who wish to participate.
Leo F. Newman of American Securities
Corporation is Chair¬
Ticket reservations should be made with
man.
Walter Eagan of
Harris, Upham & Co. of Boston.
i
Volume 179
Number 5322...
Commercial and FinancialThe
Chronicle
i
r
•
.
.
<
★INDICATES
t
ADDITIONS
;
Acme
Industries, Inc., Jackson, Mich. '
April 12 filed 50,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—For
general
monds
corporate purposes.
&
Underwriter
—
Baker, Si-
Co., Detroit, Mich.
★ Air-Pix Corp., Lowell, N. C.
April 26 (letter of notification) 250,000 shares of com¬
mon stock.
Price—At par ($1 per share). Proceeds—To
finance construction,
etc., of radio and television stations.
Underwriter—None.
Alfis-Chatmers Mfg. Co.
April 16 filed 350,000 shares
(5/12)
convertible
preferred stock
(par $100, expected to carry a dividend
between 3%% and 4y4%). Price—To be
supplied
fey amendment. Proceeds—From sale of
stock, together
•with proceeds from sale of
$24,000,000 of 3%% notes
ifo insurance firms, to
repay bank loans. Underwriter—
rate
San
and
supplied by amendments Proceeds—To increase working
capital and for general corporate purposes. Underwriter
—White, Weld & Co., New York.
American Transportation Insurance
Co.,
Kansas City, Mo.
March 17 filed 20,000 shares of capital stock
(par $100).
Price—$150 per share. Proceeds — To increase capital
•
Underwriter—None.
Arcturus
Basin
300,000 shares of com¬
(par 10 cents). Price—$1 per share. Proceeds
—For working capital, etc.
Office—20 Broad St., New
York, N. Y. Underwriter—Mid-West Securities, 164 Con¬
St., Brooklyn, N. Y.
★ American Cyanamid Co., New York
(6/1)
May 5 filed 585,000 shares of cumulative preferred
stock,
series C (par $100—convertible
prior to July 1, 1964)
NEW
to
ISSUE
(Friday)
Otis,
.Class
Inc.)
125,000
Shawano
Uranium
(McGrath
Securities
(Childs,
$249,000
Common
Inc. and Crerie Si Co.)
May 10
Control
Common
Corp.)
Jeffries
&
&
Otis,
★ Automatic Canteen Co. of American
Inc.,
New
(5/20)
April 30 filed 77,706 shares of common stock (par $5)
to be offered for subscription by stockholders of record
May 20 on the basis of one new share for each six shares
held; rights to expire on June 7. Price—To be supplied
by amendment. Proceeds—To extend activities in the
merchandise vending field.
Underwriter—Glore, Forgan
& Co., New York.
★ Benrus Watch Co., Inc., New York
April 27 (letter of notification) 7,600 shares of commoii
stock (par $1). Price—At market
(about $11 per share).
Proceeds—To selling stockholders. Underwriters— L. F.
Rothschild & Co. and Ralph E. Samuel &
York.
,
★ Brandywine Raceway Association, Inc. (5/19)
April 28 filed 20,000 shares of capital stock (par $1>
and $200,000 of 6% subordinated notes due June
1, 1964,
to be offered in units of five shares of stock and
notes to stockholders of record
of
be
supplied by amendment.
liabilities,
and
Electronic Associates,
Inc
Estabrook
&
&
Securities
$7,500,000
;
(Blyth
&
&
shares
Lynch,
Co., Inc.)
Pierce,
Power
Beane)
$20,000,000
Gas
Co
Preferred
as
Common
Lynch, Pierce,
clearing agent)
(Thursday)
of
Peabody
(a.
Common
Co.)
&
&
$4,000,000
Co
Co.)
Allyn
&
$900,000
Co.,
Inc.
and
EDT)
$18,000,000
to
(Bids
stockholders)
Common
The
Commoii
First Southwest
Co.)
shares
Corp.)
Common
700,000
Co.,
Common
Inc.)
noon
EDT)
Power
(Kidder,
Bonds
invited)
be
a.m.
$8,000,000
Debentures
edt)
$25,000,000
Co.
&
Fenner
&
Merrill
and
Beane)
Lynch,
11
a.m.
EDT)
Pierce,
$7,500,000
Public Service Electric & Gas Co
(Bids
I
Bonds & Pfd.
$50,000,000
Bonds
May
$25,000,000
27
(Vickers
Preferred
&
Brothers)
Missouri Public Service Co
June 2
Common
(The First Trust Co. of Lincoln, Neb. and Cruttenden
& Co.)
$1,000,000 pfd. and 85,909 shs. of common
Vanadium
Peabody & Co.)
advertising medium, the Chicago Tribune, you reach
a single low cost both major
investment
effectively at
markets in
Chicago and the midwest—professional buyers plus
the general investing public.
advertising counsel
or
advertising more effec¬
the nearest Chicago Tribune
advertising representative.
June 7
The World's Greatest
1
The Tribune gives to each
the
Power
105,000
bonds, to redeem $8,000,000 3%% bonda
outstanding.
Underwriter — Merrill Lyncl^
Pierce, Fenner & Beane, New York.
California
26
Electric
filed
Power
$8,000,000
Proceeds—To redeem
3%% bonds due 1983.
Co.
first
of
1984.
a
(5/25)
mortgage
bonds
duo
like amount of first mort¬
Underwriter—To be deter¬
by competitive bidding. Probable bidders: HalStuart & Co. Inc.; The First Boston Corp.; Kidder^
Peabody & Co.; Blyth & Co., Inc. Bids—Expected to ba
received on May 25.
Capper Publications,
Inc., Topeka, Kan.
series six 5-year first morfc"
gage 4% bonds and $2,000,000 of series seven 10-year
first mortgage bonds.
Price — At 100% of principal
Proceeds—To advance sums to Topeka Broad¬
casting Association, Inc., a subsidiary, and for redemp¬
amount.
of
certain
April
bonds.
12.
Underwriter—None.
Statement-
,
Carolina Casualty Insurance Co.
April 7 (letter of notification) 20,000 shares of class I£
stock (par $1). Price1—$4 per share.
Proceeds—To in¬
crease capital and surplus.
Office — 262 Morehead St*.
Underwriter
—
Courts & Co., Atlanta^.
• Central Solvents & Chemicals Co., Chicago, III*
April 29 (letter of notification) 5,000 shares of common
(par $1)
Price—$21
per
to be offered to certain employees only.
share. Proceeds—For general corporate
Office—2540 W. Flourney Street, Chicago, Hi.
(Monday)
Continued
Co
11
Bonds
a.m.
June 8
(Bids
EDT)
be
to
June
9
(Offering
&
Co.
Morgan
June
invited)
to
Power
be
Bonds
(Wednesday)
..Common
Stanley
22
be
Si
underwritten
Co.)
900,000
by
Drexel
shares
(Tuesday)
Preferred
invited!
$5,000,000
to
$6,000,000
Co
Bonds
(Bids
11
a.m.
EDT)
New York.
$10,000,000
Boston
Pittsburgh
Chicago
i
June
29
Philadelphia
(Tuesday)
Duquesne Light Co
(Bids
to
be
38
$10,000,000
Duquesne Light Co
(Bids
page
(Tuesday)
stockholders—to
to
and
on
$25,000,000
Philadelphia Electric Co
Newspaper
day's market tables end reports
largest circvlatioe they receive in America,
filed
presently
purposes.
$5,000,000
Southwestern Gas & Electric Co
Gulf
CHICAGO TRIBUNE
Electric Power Co.
(5/12)
shares of cumulative preferred
(par $50). Price—To be supplied by amendment.
Proceeds
To
redeem
two issues of $2.50 preferred
stock
(par $50), totaling 88,800 shares, and, together
with proceeds from proposed issue of $8,000,000 of new
22
Underwriter—None.
For facts that show how to make your
your
Debentures
(Kidder, Peabody & Co.)
$5,000,000
2marksBif)ni1 mediuml
California
stock
(Wednesday)
Preferred
(Bids
tive, call
•
April
Ga.
$760,000
Corp. of America
Consumers
one
Avenue, Jamaica, L. I., N. Y. Underwriter—
Inter-City Securities Corp., Jamaica, L. I., N. Y.
Burlington, N. C.
(Thursday)
United States Sulphur & Chemical Corp.__CommOn
May 18 (Tuesday)
and one share of common stock.
Price—$10
Proceeds—For working capital. Office—167-10
unit.
Hillside
tion
Kansas-Nebraska Natural Gas Co., Inc.
most
preferred
effective
Preferred
Corp
Peabody
$5,000,000
Virginia Electric & Power Co
(Bids
Florida
shares
ILight Metals Refining Corp
L *
Thru
Budget Funding Corp. (Dei.)
April 20 (letter of notification) 149,850 shares of 7%
cumulative preferred stock (par $2) and 29,970 shares,
of common stock (par one cent) in units of five shares of
March 23 filed $2,000,000 of
May 26 (Wednesday)
.i___
&
to
11:30
selling stockholders. Of¬
Avenue, Chicago, 111. Under¬
Wabash
gage
(Tuesday)
$150,000
(Monday)
Securities
Gordon
(Bids
South
mined
Consolidated Natural Gas Co
;
Proceeds—To certain
sey,
California Electric Power Co
(Friday)
Fund, Inc
Webster
May 25
Co., New York.
writer—None.
April
Common
(Monday)
170,000
Debentures
a.m.
May 17
(Kidder,
share).
Preference
Rothchjld & Co.) $600,000
shares
&
first mortgage
.Preferred
(Fritz W.)) & Sons, Inc
C.
Corp.
—
America
Service
May 24
Glitsch
Industries
stock
Transportation Development Corp
H.
and
★ Brunswick-Balkc-Collender Co.
April 28 (letter of notification) 5,000 shares of common
stock
(no par).
Price—At market (about $15.75 per
•
(Offering
(Philip
and
notes
Bonds
Carolina Electric & Gas Co
$5,250,000
Co
May 14
Si
Notes
&
Meeds;
Preferred
&
First Nat'l Bank of Toms River, N. J
(Stone
&
$200,000
(Olfering to stockholders—underwritten by Glore, Forgan & Co.)
South
(L.
Corp.
act
&
Co.
(Bioren
$35,000,000
Penner
mav
(Bids 11
Colonial
and
EDT)
a.m.
Automatic Canteen
(Kidder,
Preferred
606,423
Montana
11
Electric
Southeastern Public
stockholders—Merrill
Beane
Bissell
(Morgan Stanley Si Co., Drexel & Co. and Glore, Forgan & Co.)
$40,000,000
(Wednesday)
Utilities
to
Laird,
shares
77,706 shares
Debentures
California Electric Power Co
&
Service
May 20
Common
330,296
(Blyth Si Co., Inc.)
Penner
(Bids
Public
(Tuesday)
Co.)
May 12
(Offering
Inc.;
$24,994,200
Allis-Chalmers Mfg. Co
Public
Debentures
(Wednesday)
20,000
Investing Corp.) $300,000
Northern Natural Gas Co
(Merrill
//
..Class A
Keystone Portland Cement Co
General
Co.,
Co.)
Price—To
Proceeds—To pay current
expansion
(letter of notification) 3,750 shares of capital.■-.-Jy
market ($2 net to seller).
Proceeds—
To Kay L. Rockey, the selling stockholder. Underwriter
per
Bonds
EDT)
a.m.
May 11
■
&
$50 of
the basia
Price—At
fice—623
New York State Electric & Gas Corp
Twin Arrow Petroleum Corp.,
(Shields
Bonds
$65,000,000
Brandywine Raceway Assn., Inc.__Com.
(Laird
$2,500,000
Co.)
Iowa Public Service Co
General
invited)
Common
Weld
11
be
May 19
.........Common
for
on
held.
improvements, etc.
Offiee—Wilmington, Del. Underwriters—Laird Securi¬
ties Co., Inc., and Laird, Bissell & Meeds, both of Wil¬
mington, Del., and Harrison & Co., Philadelphia, Pa.
—Stubner
Common
(Johiioton, Lemon & Co. and Union Securities Corp.) $8,000,000
Harrison
(Bids
$27,000,000
Pacific Gas & Electric Co._____
Co.)
(Offering to stockholders—no underwriting) $138,750
Inter-Canadian Corp.
(White,
Commission..Debentures
(Offering to stockholders—may be underwritten By Hayden,
Miller & Co. and Lawrence Cook & Co.) 117,500 shares
$300,000
and
of stock
April 23
(Bids to be invited)
to
May 19, 1954,
unit for each 50 shares
one
British
CALENDAR
State Loan & Finance Corp
Debentures
Inc.
Underwriter—Hunter Securities
—Ralph E. Samuel & Co., New York.
—
Underwriter—Gearhart
(Bids
(Monday)
Thorndike,
Corp., Santa Fe, N. Mex.
★ Benrus Watch Co., J*ic., New York
>
April 29 (letter of notification) 10,300 shares of com¬
mon
stock (par $1). Price—At market (about $11
per
share). Proceeds—To selling stockholders. Underwriter
$1,787,500
Engineering Corp
>
(letter of notification) 125,000 shares of class
stock (par one cent). Price—At market. The
underwriter has agreed to purchase these shares at 15
cents per share.
Proceeds
To Delbert E. Replogle,
common
Northern Ohio Telephone Co
Corp
(Gearhart & Otis,
ISSUE/*
Co., both oil
April 22
A
A
shares
Development Corp
Standard
Natural-Gas
Bldg., Santa Fe, N. M.
Corp., New York.
New
Electronic?, Inc." (5/7)
Montreal Transportation
Arcturus Electronics, Inc
Si
REVISED
Dec. 23 (letter of notification) 748,000 shares of common
•tock (par five cents). Price—40 cents
per share. Plrfceeds—To acquire properties and leases. Office — Blatfc
stock.
(Gearhart
ITEMS
York.
mon stock
May 7
PREVIOUS
President.
Francisco.
American Coffee-Matic
Corp., N. Y..
March 22 (letter of notification)
gress
for each 15 shares of
and surplus.
of cumulative
Blyth & Co., Inc., New York
be offered for subscription by common stockholders of
June 1, 1954 at the rate of one preferred share
common stock held.
Price—To be
record
SINCE
•
f
3V
(2017)
Invited)
Bonds
$15,000,000
to
$17,000,000
San Francisco
Private IVires to all
Offices
Cleveland
h
'
^6
(2016)
Continued
from
sonnel between
12
page
March
1954
The Commercial and Financial Chronicle...
'4.
t
the stuff it takes.
January 1953 and
while
the
at
civilian
members
of
the
and
procedures used in the com¬
putation
of
materiel
manpower,
construction.
and
They
de¬
are
termining peacetime stock levels
and
war
reserve
requirements.
These
reserve
requirements in¬
clude both trained personnel and
plans for quickly training others,
troth stockpiled material and ca¬
pacity to quickly achieve mass
production of great quantities of
all military products if required,
Men, material, bases, activation of
view organizational units, training
rates, activity rates, deployments
—all must be projected two and
three years into the future and
must be kept
in balance.
Third, there is economy in op¬
eration.
This relates to the exe¬
cution
of
the
have
is
out
laid
the
the
the
thousands
of
has
millions
has been
of
women—
them—have
of
the services.
waste
seen some
waste of his own time or
else's
someone
waste
and
of
out
Each of them has
—-some
of
time,
some
material, or something
they realize could be
done
that
done
better.
No
the
really
man
waste
likes to
He will do it and collect
■his time.
but he would rather
feel that the money he is being
money,
paid is being earned.
He would
like to feel his personal efforts
_
.
are
is
.
,
,
.
,,
,
not
being wasted whether he
janitor, a top technician, a
a
fikjfnfPAl thffnprqonahv
hhef
^ndhe
Economy in operation, particu¬
larly,
requires
the
many
hundreds
of
and
women
interest
thousands
the
in
of
of
service,
Steps are being taken to encourand cultivate this important
type of cooperation.
Therefore,
when we say that our objective is
age
to achieve
defense for every
more
dollar spent, I would
v.i
in
and
itself
the
military
will
farther down the line because
getting along with 160,000 ci¬
are
vilians
than
less
little
over
done
this
by
we
a
in
had
only a
We have
ago.
orderly manner
vacancies and by
an
filling
not
we
year
and
a
reduction
further
There
still
is
face
we
problems
1955 program and
to
lots
and
new
be
important
you
you
for
Team
like to emphasize that we expect to do this
l>y
making
intelligent
savings
through economy in forces, economy in programming, and econerror m operation.
to have survived the "snow
treatment."
In spite
of the
mag-
moving people around a bit and
seeing that they have enough to
do.
I am sure that we have not
hurt the effectiveness of the or-
- .
in solving many of our
difficult problems, while facing,
may I add, some less important
ganization
and
bit—in fact I feel
sure
it has been improved.
We
are
down some in military per¬
sonnel, also.
Improved utiliza¬
tion of manpower permitted a re¬
duction of 170,000 military perone
have
made real
progress
viding the nation with
fense program.
factors
apply
nation's
our
day
in
no
and
morale
our
is
pro¬
matter
no
defense
good.
The Stinctnie of
He and his colleagues
responsible to Joseph Stalin
country.
were
and
his
party and govern-
many
T
,
mental deputies, but also had spe-
cific
the
responsibilities to Gosplan,
State Planning Commission,
which
told
them
how
of
much
"Let
,
,
the
force
the
as
levels.
I
achievement, security
what
doing.
cost.
They
'associated'
likewise
were
with, though not
re-
sponsible to, the Central Council
of
Trade
Unions
labor
on
ques-
tions, the Commissar of Finance
for
the
comes
sure
-in.
had
15
.
(military and
months
a
we
are
.
.
civilian)
ago.
In any big
turn-over of 30
people
ln. a
month penod would present
quite
a
problem.
5!L?f
fire' sub-iect to the approval of the
unions, and
the
NKVD; he could suggest to the
Gosplan changes in the plan; he
could request changes in the selling prices of his products and
wage rates for his workers.
If his
industry as a whole made a profit,
he
could
small
of it,
usually about 5%, for bonuses for
his best workers.
If his industry
ran a deficit, he might be sent to
jail for sabotage unless he could
furnish
use
a
part
excellent
some
who takes
man
In
We still have the job
each
other
The
j
Opens
Financial
Chronicle)
Colo. —Chapp ell
is engaging in a securi¬
DENVER,
Cranmer
offices
from
used
at 20Qt
Hugh Herndon
to repay
Hugh Herndon, associated witb.
R. H. Johnson & Co., New York
the
City, passed
age of
April 24 at the
away
73.
his
a
confident
or pin the blame on some
other
commissariat
(railroads,
these
circumstances
,t
it
in
and
creates
the
0us
the
energetic
and
the strong.
the
Security
the
le
Securities Corp., Jefferson Bldg.,
curities
and,
tive
willingness
quickly
to
scrap
the old
fact, the
plex function
—
a
climate
of
we
beliefs
Team:
«
tion
miracles for the
where
been freely
these
one
factors
na-
cannot
belief in
explain
our
position today,
is the released energies of our
People that account for
our great
or
Don,
•
Points:
44
43
41^
41
(Capt.), Rogers, Gold, Krumholz, Gersten
(Capt.), Hunt, Werkmeister, Swenson, Ghegan_____
Krisam (Capt.), Pollack,
Cohen, Smith, Strauss, Define
Bean (Capt.), Bass,
Valentine, Eiger, Bradley
Growney (Capt.), Corby, Siegel, Voccolli, Lienhardt
Meyer (Capt.), M. Meyer, Frankel, Wechsler, King
Hunter (Capt.), Brown, Alexander,
Farrell, Barker
na-
,
44V2
Kaiser
39Vz.
35^
31
•
30
2814.
22
19
are
5 Point Club
i
c;
George Leone
See
You All
at
New York-Philadelphia
night at Antlers, 8:30
whether it is
'
Bowling Dinner To¬
Contact Sidney Jacobs for Your Reser¬
p.m.
vations!
Small.
i
_
(4) There
is
great
need
i
todav
TRADERS ASSOCIATION
for able managers who hold these
beliefs
who have skills in con-
BOSTON SECURITIES
dilation, who
35th annual outing at the South Shore Country Club, Hingham^.
Mass. on June 24. There will be golf, Softball, swimming and
world
where
aw
articulate
in
public opinion is
The
a ■#y
a 4
achievements.
material is
)
Serlen
risk-taking—and this is
have true of all business
employed: The United Big
States of America. We have magnificent resources but these alone
It
a
NEW YORK
(Capt.), Nieman, Gannon, Tisch, Greenberg
(Capt.), Craig, Gronick, Bies, Demaye
Burian (Capt.), Gavin, Clemence,
Montanye, Whiting
Manson (Capt.), Jacobs, Topol,
Weissman, H. Frankel
Klein (Capt.), Fredericks, Murphy,
Weseman, Mewing
ing calculated risks for the sake of vital to this
performance; a belief
great rewards—has performed in- in
competition; a belief in change;
dustnal
OF
Donadio
here
which
ASSOCIATION
Leone
corn-
have
Club—Dan H.:Alldritt, Mid Continent Se¬
Co., 806 Central Bldg., Wichita 2, Kansas.
..
'
magnificently in
America—because
'
Minn.
Security Traders Association of New York, Inc. (STANY)'; '
Bowling League standing as of April 29, 1954, is as follows:
employees,
m
Security Traders Association—Fred S. Goth, Irving
SECURITY TRADERS
thl owners^cannot
(3) Industry performs its
Vance, Vance: j
Wichita Bond Traders
tion.
find
Hecht, Jr.,,
Greensboro, N. C.
Rice & Co., First National Bank Bldg., St. Paul 1,
^SfreTSftyShV^hl
to
C.
The Securities Dealers of North Carolina—Charles R.
wav
f industry is
manager—using
Angeles—J.
Los
Lynch, Pierce, Fenner & Beane, Wilcox Bldg., Portland 4, Oregon;
It is oomplex
Since
industrial society in-
gr°UPS ^7■ custo"le!-s'
communities,
of
Security Traders Club of St. Louis—Herman J. Zinzer, DempseyTegeler & Co., 407 No. 8th Street, St: Louis 1, Mo.
Twin City
romnctitivrdfrllivCl^dPtmWdna
competitive, freely enterpnsing
Association
Security Traders Association of Portland—Paul A. Ludlam, Merrill1
Productive
structurle
T1
Traders
Dempsey-Tegeler & Co., 210 W. 7th Street, Los Angeles 4, Calif
Droductive
such
,
Hartford 4, Conn.
Donald, Jr., McDonald-Moore & Co., Penobscot Bldg,, Detroit
only kind
some
Building, Seattle 4, Wash.
26, Mich.
this—
was not
research
Security Traders Association—Homer J. Bateman, Pacific-
Security Traders Association of Detroit & Michigan—Harry A. Mc¬
j think then I would summarize
observations in
,
Association—Walter Vicino, Blytb
Security Traders Association of Connecticut—Adolph G. Starkel^
security that is worth very
much, the security of the vigor-
(1)
Association—John J. Zollinger^
Carondelet Street, New Orleans 12, La,.
Traders
Northwest Company, Exchange
0f
J s\
Security
.
Co., Russ Bldg., San Francisco 4, Calif.
Seattle
in
to me, is the true
position — the • true
it
electric power, etc.).
"Under
&
or
seems
toward
my
Orleans
Martin, Temple
Commerce Union B&nk Bldg., Nashville 3, Tenn,.
C
Singer, Deane & Scribner, Union Trust Bldg., Pittsburgh 19, Pa,.
viewpoint.
American
industry does not fear change
it
as
^
Traders Association—Ray
Sail Francisco Security Traders
American
hurries
,
^
Security
Putnam & Co., 6 Central Row,
process
Frederic, Equi¬
Planters Natl. Bank Bldg., Memphis;
Pittsburgh Securities Traders Association'—Frank M. Ponticall, Jr.,,
ment."
This, it
;
•
,
W. 10th Street, Kansas City 5, Mo.
Scharff-James Inc., 219
comes
American
,
Security Traders Association—Russell K. Sparks, E. F..
Securities Corp.,
New
,
Philadelphia.
Bldg.,
Trust
■;
Nashville
that he has the strength
from
accomplish-
sense
which
Philadelphia—Lewis P. Jacobyv.
Commercial
Co.,
&
Baker
1, Tenn.
chance at all.
mind, the so-
really an opportunity and he will make the most
the
8
page
table Securities Corp., Union
chance prob-
a
from
Memphis Security Dealers Association^Frank D.
called chance is
explana-
tions,
?g be^er ac(luam^ed> un~ has devised
derstanding
at
to
ranging from ties business
Hutton & Co., 121
way,
sheltered
each Commissar was monarch in cure; he actually is aiiwiwcu
tulc> ilc aKlU«ii,
his own realm. He could hire and isolated, but he is not secure
for the sake of the new, the more
efficient and the better—accept-
and found that only five of them
have the same jobs now that they
organization
(Special
2, Pa.
funds, and, most important of
all, to the party and the NKVD 0f it. To the man who has almost
for the performance and political a phobia about
security, any de¬
dependability of their entire or- parture from established routine
is 'taking a chance.'
ganjZations.
The net re¬
"Aside from these reservations, sult is that he never is
really se¬
our
by the
ered to be the top 35 men in the
/
redeemable
are
prices
Kansas City
from
Or to put it another
ably isn't taking
new opportunities—using his na-
making progress in economy in
programming.
I made a list not
very long ago of what I consid¬
Pentagon
full
Thayer
say
what they should produce, and at
Se
for
basis
feel
.
strategic
new
«***?« and approved
pl5ns made
Joint Chiefs
President
Cranmer Co.
was
Investment Traders Association of
this much to you:
security is not a 'safe' job, nor a
good salary. Security comes from
me
pro-
Studies
.,
mentioned
had total op¬
of $40,488,000*
NSTA Notes
Board of Sylvania Electrical Products, Inc., speaking to the graduating class of Stevens last June,
said:
Zty
I
bonds
Continued
Industry
.
Strategic
In.
California.
in
company
Dean Witter Adds
company's indebted¬
ness to its parent company, Paci¬
fic
Lighting Corp., expected to
approximate $6,500,000.
Balance
Continued from page lo
SSlSlLSSPSffSSi
New
issue
The
Proceeds will be
frus¬
mana—tTo'?'ps
I
counties
the
104.93, if redeemed on or before
Cherry Street.
April 30, 1955 to 100 after April
30, 1983.
in
trations
;
ifc
erating revenues
against $35,100,000 in 1952.
bid of 101.30.
on a
regular call
sound de¬
a
We have
1954.
Co.,
mortgage
3.15%.
The
We
ones.
1953
awarded at competitive sale Tues¬
progress
time-consuming
first
yield
nitude of the job, we have made
surprising that few Soviet ours is
citizens wanted to be managers, dustrv is the heart and core of our
fprara may be.
The Chiefs of Staff Party and government tried to fill
society
and their principal assistants have the vacuum at the top by giving
Industry performs its comthe major responsibility for econ- managers relatively large salaries.
pjex function
adiustins and
omy in forces.
The civilian Sec- ... . This material motive was in- «ffj"atfn
dl wr t v°nf i
retaries and their assistants to- sufficient,
however, to make
gether with the top military peo¬ enough able people want to asple have the responsibility for
economy in programming.
And administrative jobs, and the party owner<= the risk takprs hut whnsp
every member of the Defense orwould frequently be compelled to
to
he efganization has some responsibility specifically order an individual to
fectively performed without con
ior economy in operation.
take a certain job."
sideration of the other major
These
what
in
that the Defense
discouraged.
We
not
Gas
LOS
ANGELES, Calif. — C*
Curtiss Murrell and Phelps Wit-*
bonds, 314%
ter, Jr. have been added to th&
series A,
of Southern Counties
staff of Dean Witter & Co., 632
Gas Co. of California. The bonds,
South Spring Street.
due May 1, 1984, are priced at
101.93% and accrued interest, to
every
years)
for
Counties
Blyth & Co., Inc. heads a group
offering today (May 6) $15,000,000
go on
is
$11,530,000
(Special to The Financial Chronicle)
day.
But I just
record with all of
(and I have known many of
to
expansion, esti-
operating public utility, serving a total population estimated at
1,600,000 in Los Angeles and six
Counties Gas Bonds
done,
at
with
connection
and
an
other
total
in
in
used
Southern
particu¬
are
be
mated
help
Blyth Group Offers
$15,000,000 Souihern
Some shifting
year.
fiscal year
seem
you
can't
taxpayers almost two bil¬
a
want
atom)—I
that
larly fortunate.
per¬
military personnel is called for by
and
the
think
United
save
budget.
big, thick reports on why
going to do the wrong
thing and no one will be to blame.
We have improved the effec¬
tiveness of the civilian personnel
are
Party, the trade
what makes this country great, i
men
civilian
sonnel
States
re¬
hundreds
men
and
in
both
will
budgets.
which
Many
literally
but
lion dollars
most
directed.
of
are
ana
annual
area
of waste and inefficiency
~been
cluding
effective utilization of
we
.
by
personnel
This
making too many reports and
having too much argument.
We
are
committed
to
not
making
public attention
at which most of the criticism
ceived
and
been
in
reflected
That
70,000
of
construction
population—at the undiscov¬
ered potentialities of science (in¬
June 30 of this year is anticipated.
more
part of
become
the company's treasury funds and
ing
further
A
proceeds will
the expanding and developing
industrial scene—at our expand¬
plans and the ac¬
of
the programs
complishment
that
saving
those
Defense
They are examining and
validating
all
planning
factors
units.
combat
our
without writing too many letters,
ceiving the concerted and consci¬
entious effort of the military and
team.
of
of
at
same
time building up the effectiveness
Our Military Planning Linked to a
Stable but Dynamic Economy
As I look ahead
Thursday, May 6, 1954
After all, a fraw vital force.
nothing until someone
I hope many
a use for it.
would like to
Mitchell, Chairman of the lenges and that
,i,
of
meet
you
fellows
these
many of you
J?,
have
Traders
Association
will
Ticket reservations should
their-
be made with Walter Eagan of
Harris, Upham & Co. of Boston.
.
hold
bowling for those who wish to participate.
Leo F. Newman of American Securities Corporation is Chair¬
man.
chal-
Securities
Boston
~
.
►
v
,
n ■
9
•
»
II
'
.
"
"
»
\
Volume 179
Number 5322... The Commercial and Financial
Chronicle
(2017)
,
★ INDICATES (AUDITIONS v
s
in
SINQE
Industries, Inc., Jackson; Mich.
April 12 filed 50,000 shares of common
Price—To be supplied
by amendment.
general
monds
corporate purposes.
&
(par $1).
Proceeds—For
Underwriter
Co., Detroit, Mich.
•"
stock
—
Baker, Si-
\
be offered for subscription
by common stockholders of
June V1954 at the rate of one
preferred share''
common stock held.
Price—To be
record
250,000 shares of com¬
stock. Price—At par ($1
per share).
Proceeds—To
finance construction,
etc., of radio and television stations.
Underwriter—None.
Altis-Chalmers Mfg. Co. (5/12)
April 16 filed 350,000 shares of cumulative
convertible
preferred stock (par $100, expected to
carry a dividend
rate
between
3%%
and
4y4%). Price—To be supplied
t>y amendment. Proceeds—From sale of
stock, together
•with proceeds from sale of
$24,000,000 of 3%% notes
to insurance
firms, to repay bank loans. Underwriter—
Blyth & Co., Inc., New York and San Francisco.
American Coffee-Matic
Corp., N. Y.
.
American Transportation Insurance
Co.,
Kansas City, Mo.
March 17 filed 20,000 shares of
capital stock (par $100).
Price—$150 per share. Proceeds
To increase capital
and surplus. Underwriter—None.
—
•
Arcturus
Electronics, Inc.
(letter of notification) 125,000 shares of class
A common stock
(par one cent). Price—At market. The
underwriter has agreed to purchase these shares at 15
cents per share.
Proceeds
To Delbert E.
Replogle,
—
President.
Underwriter—Gearhart
&
Otis,
Inc.,
New
York, N. Y. Underwriter—Mid-West
Securities, 164 Con¬
gress St., Brooklyn, N. Y.
★ American Cyanamid Co., New York
(6/1)
May 5 filed 585,000 shares of cumulative preferred
stock,
(par $100—convertible prior to July
1, 1964) to
NEW
ISSUE
★ Automatic Canteen Co. of American
(5/20)
April 30 filed 77,706 shares of
to
common stock
(par $5)
subscription by stockholders of record
be Offered for
May 20 on the basis of one new share for each six shares
held; rights to expire on June 7. Price—To be supplied
by amendment. Proceeds—To extend activities in the
merchandise vending field.
&
Underwriter—Glore, Forgan
Co., New York.
.
(par five cents).
(Friday)
Arcturus Electronics, Inc._„
(Gearhart
Shawano
&,Otis,
Standard
Securities
Uranium
(Gearhart
&
Electronic
Miller
Common
and
to
Estabrook
&
(Bids
&
Co.)
EDT)
May 11
$7,500,000
,
Class A
share),
&
Co.)
«fc Co.,
May 12
York.
★ Benrus Watch Co., Jnc., New York
29 (letter of notification) 10,300 shares of
April
★ Brandywine Raceway Association, Inc. (5/19)
28 filed 20,000 shares of capital stock (par
$1>
and $200,000 of 6% subordinated notes due June
1, 1964,
April
to be offered in units of five shares of stock and
notes to stockholders of record
of
Fenner
Pierce,
Power
(Bids
shares
11
Inc.)
Service
11
as
EDT)
a.m.
Electric
Automatic Canteen
$200,000
South
notes
Corp...:
Gas
&
Bonds
$20,000,000
Co
Preferred
of America
Common
Peabody
Public
&
Co.)
Service
(Bioren
&
Co.)
H.
Rothchild
&
$900,000
Co.)
':
May 24
Common
Lynch, Pierce,
clearing agent)
Glitsch
(Fritz
C.
(A.
Allyn
W.))
&
Co.,
&
$600,000
and
.Debentures
a.m.
EDT)
$18,000,000
to
stockholders)
The
....Commort
First
Avenue,
Chicago, 111.
of
Under¬
*
Budget Funding Corp. (Del.)
20 (letter of notification) 149,850
preferred stock
(par
$2)
and
shares of 7%
29,970
shares
stock1 (par one cent) in units of five shares o£
and one share of common stock.
Price—$10
common
preferred
unit.
Proceeds—For working capital. Office—167-10
Hillside
Avenue, Jamaica, L. I., N. Y, Underwriter—
Inter-City Securities Corp., Jamaica, L. I., N. Y.
•
California
Electric
April
22
(par $50).
stock
filed
To
—
(par
Power Co.
105,000
shares
of
(5/12)
cumulative
preferred
Price—To be supplied by amendment.
redeem
$50),
two
totaling
issues
88,800
of $2.50
preferred
shares, and, together
of $8,000,000 of new
$8,000,000 3%% bondat
with proceeds from proposed issue
first mortgage bonds, to redeem
presently outstanding.
Underwriter
Pierce, Fenner & Beane, New York.
California
26
1984.
Electric
filed
Power Co.
$8,000,000
37/8%
bonds due
first
of
Proceeds—To redeem
gage
Southwest
Co.)
1983.
a
—
Merrill
Lyncb^.
(5/25)
mortgage
bonds duo
like amount of first mort¬
Underwriter—To be deter-
(Bids
Common
Co.,
700,000
noon
May 18
EDT)
be
Bonds
invited)
$8,000,000
Consolidated Natural Gas Co
(Bids
Florida
Power
(Kidder,
shares
11:30
Debentures
edt)
a.m.
$25,000,000
on
May 25.
Peabody
&
$5,000,000
11
tion
Co.
&
and
Merrill
Beane)
Lynch,
EDT)
a.m.
Pierce,
$7,500,000
Bonds & Pfd.
$50,000,000
May
27
(Vickers
(Thursday)
Brothers)
June 2
Preferred & Common
Vanadium
(Wednesday)
&
Debentures
$5,000,000
June 7
Co.)
Consumers
Power
(Bids
2 marker thru 1 medium!
11
$5,000,000
EDT)
to
be
(par $1). Price—$4
capital and surplus.
per share.
Proceeds—To in¬
Office — 262 Morehead St^.
Underwriter — Courts & Co., Atlanta^
• Central Solvents & Chemicals Co., Chicago, IIL
April 29 (letter of notification) 5,000 shares of common
(par $1)
to be offered to certain employees only-
Price—$21
per share.
Proceeds—For general corporate
Office—2540 W. FJourney Street, Chicago, lli.
Underwriter—None.
Continued
on
page
38
$25,000,000
(Tuesday)
Gas & Electric Co
(Bids
stock
Bonds
June 8
Southwestern
-
(Monday)
Co
a.m.
Statement
purposes.
Preferred
Peabody & Co.)
Underwriter—None.
12.
Carolina Casualty Insurance Co.
April 7 (letter of notification) 20,000 shares of class
stock
Corp. of America
(Kidder, Peabody
Missouri Public Service Co
bonds.
April
Ga.
$760,000
Kansas-Nebraska Natural Gas Co., Inc.
(The First Trust Co. of Lincoln, Neb. and Cruttenden
& Co.)
$1,008,000 pfd. and 85,909 shs. of common
certain
Burlington, N. C.
United States Sulphur & Chemical Corp..-Common
(Tuesday)
of
crease
Bonds
$25,000,000
amount. Proceeds—To advance sums to Topeka Broad¬
casting Association, Inc., a subsidiary, and for redemiv-
Preferred
Public Service Electric & Gas Co
(Bids
Capper Publications, Inc., Topeka, Kan.
March 23 filed $2,000,000 of series six 5-year first mortgage 4% bonds and $2,000,000 of series seven 10-year
first mortgage bonds.
Price — At 100% of principal
effective
Corp
Fenner
Common
Inc.)
to
May 26 (Wednesday)
Common
&
(Tuesday)
$150,000
Virginia Electric & Power Co
invited)
Bonds
$10,000,000
*
Thru
most
advertising medium, the Chicago Tribune, you reach
effectively at a single low cost both major investment
June
one
markets in
Chicago and the midwest—professional buyers plus
the general
9
(Wednesday)
L
Philadelphia Electric Co
(Offering
to
Common
stockholders—to
be
underwritten
by
Drexel
investing public.
For facts that show how to make
your
tive, call
your
advertising counsel
or
advertising
the nearest
more
&
Co.
and
effec¬
Chicago Tribune
(Bids
Gulf
The Tribune gives to each
to
Power
be
&
Co.)
900,000
shares
(Tuesday)
..Preferred
invited)
$5,000,000
to
$6,000,000
Co
—Bonds
(Bids
Newspaper
day's market tables and reports
largest circulation they receive in America.
22
Duquesne Light Co
CHICAGO TRIBUNE
The World's Greatest
Morgan Stanley
June
advertising representative.
the
<
by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Kiddery
Peabody & Co.; Bl.vth & Co., Inc. Bids—Expected to bo
received
shares
California Electric Power Co
(Monday)
&' Webster Securities Corp.)
Gordon
May 25
(Friday)
iLight Metals Refining Corp
;
Wabash
•
Fund, Inc
(Kidder,
South
writer—None.
mined
(Monday)
170,000
Jy
★ Brunswick-Balko-Collender Co.
April 28 (letter of notification) 5,000 shares of common
stock
(no par).
Price—At market (about $15.75 per
share). Proceeds—To certain selling stockholders. Of¬
April
Common
Sons, Inc
Inc.
shares
Corp.
3,750 shares of capital
($2 net to seller). Proceeds—
To Kay L. Rockey, the
selling stopkholder. Underwrites*
—Stubner & Co., New York.
Preference
Transportation Development Corp
Preferred
$5,250,000
Preferred
$4,000,000
Co
Price—To
Price—At market
Proceeds
(Thursday)
Co.
Industries
stock
Carolina Electric & Gas Co
(L.
Beane)
and
(Oifering to stockholders—underwritten by Glore, Forgan & Co.)
(Kidder,
$35,000,000
&
Meeds;
&
(Miorgan Stanley & Co., Drexel & Co. and Glore, Forgan & Co.)
Southeastern
Corp.
act
mav
May 17
(Bids
and
77,706 shares
Co
(Offering
(Philip
Public
.*■
$40,000,000
First Nat'l Bank of Toms
River, N. J
(Stone
-
Debentures
Penner
May 14
Colonial
'
Preferred
606,423
Montana
'•
stockholders—Merrill
Beane
Bissell
stock held.
(letter of notification)
cumulative
Notes
$50 of
the basia
on
supplied by amendment. Proceeds—To pay current
liabilities, and for expansion and improvements, etc.
Office—Wilmington, Del. Underwriters—Laird Secureties Co., Inc., and
Laird, Bissell & Meeds, both of Wil¬
mington, Del., and Harrison & Co., Philadelphia, Pa.
per
(Wednesday)
Utilities
to
&
Inc.; Laird,
20,000 shares
May 19,1954,
unit for each 50 shares of
one
be
$8,000,000
&
com¬
stock (par $1).
Price—At market (about $11 per
share). Proceeds—To selling stockholders. Underwriter
—Ralph E. Samuel & Co., New York.
mon
April
Inc.__Com.
Co.,
Co.)
May 20
California Electric Power Co.__
(Offering
&
(Bids
..Common
330,296
Inc.)
(Blyth & Co.,
Public
Securities
(Tuesday)
Allis-Chalmers Mfg. Co
(Merrill Lynch,
Assn.,
,
Co., both oil
fice—623
Debentures
$24,994,200
Northern Natural Gas Co.
General
Bonds
$65,000,000
New York State Electric & Gas
Keystone Portland Cement Co
r
(Laird
Bonds
a.m.
117,500 shares
(Wednesday)
Investing Corp.) $300,000
(Blyth
Co.)
Raceway
Brandywine
$2,500,000
Twin Arrow Petroleum
Corp
(Shields
Common
&
Common
Weld
11
Cook
May 19
Harrison
Iowa Public Service Co
'
Co.)
Common
Inter-Canadian Corp.
General
Lawrence
(Johnston, Lemon & Co. and Union Securities Corp.)
stockholders—no underwriting) $138,750
(White,
and
State Loan & Finance Corp
Associates, Inc
(Offering
$27,000,000
Co..
(Bids to be invited)
Debentures
Inc.
$300,000
invited)
Pacific Gas & Electric Co
(Monday)
Thorndike,
Co.
&
$1,787,500
Engineering Corp
(Childs, Jeffries &
be
(Offering to stockholders—may be underwritten By Hayden,
$249,000
Corp
to
Commission_i_Debentures
Northern Ohio Telephone
Common
Corp.)
Otis, Inc. and Crerie & Co.)
May 10
(Bids
A
125,000 shares
Development Corp
(McGrath
Control
Class
Inc.)
—
Proeeeds—To selling stockholders. Underwriters— L.
F.
Rothschild & Co. and
Ralph E. Samuel &
April 23
Montreal Transportation
Price—40 cents per share; Pre-
★ Benrus Watch Co., Inc., New York
April 27 (letter of notification) 7,600 shares of common
stock (par $1). Price—At market
(about $11 per
stock.
May 7
>
acquire properties and leases. Office
Blatfi
Bldg., Santa Fe, N. M. Underwriter—Hunter Securities
Corp., New York.
British
CALENDAR
ISSUE, *
ceeds—To
New
(5/7)
April 22
York.
March 22 (letter of
notification) 300,000 shares of com¬
mon stock (par 10
cents). Price—$1 per share. Proceeds
—For working
capital, etc. Office—20 Broad St., New
series C
•tock
supplied by amendment.' Proceeds—To increase
working
mon
REVISED
Basin Natural Gas
Corp., Santa Fe, N. Nlex.1
Dec. 23 (letter of
notification) 748,000 shares of common
1
for each 15 shares of
capital and for general corporate purposes. Underwriter
—White, Weld & Co., New York.
it Air-Pix Corp., Lowell, N. C.
April 26 (letter of notification)
PREVIOUS
ITEMS
•
/ Acme
ZY
*.)
.
11
June
a.m.
29
EDT)
to
be
invited)
Bonds
$15,000,000
to
■
Boston
Philadelphia
(Tuesday)
Duquesne Light Co
(Bids
New York.
$10,000,000
$17,000,000
Pittsburgh
San Francisco
Private Wires to all
offices
Chicago
Cleveland
*
.t
38
The Commercial and Financial Chronicle
(2018)
Continued
from
9, 1954. Price—$18.50 per share. Proceeds—For working
capital. Office—Long Branch Ave., Long Branch, N. J.
37
page
if Childs Food Stores, Inc., Jacksonville, Tex.
(letter of notification) 5,000 shares of class A
stock (no par). Price—$13 per share. Proceeds
—For working capital. Underwriter—Moroney, Beissner
& Co., Houston, Tex., and Eppler, Guerin & Turner,
Dallas, Tex.
Underwriter—None.
if C. I. T. Financial Corp., New York
Bliedung,
April 26
common
April 30 filed 230,221 shares of
be offered to certain
to
its
,,
subsidiaries
for
(no par)
stock
common
employees of the
company
and
Plan
Key Employees."
under
"Restricted
a
Stock
Option
if Clark Oil & Refining Corp.
April 29 filed 50,000 shares of $1.20 cumulative convert¬
ible preferred stock, series A
(par $20) and 150,000
shares
of common stock (par $1).
Of the latter issue,
50,000 shares will be for account of selling stockholders.
Price—To be supplied by amendment.
Proceeds—For
expansion and working capital. Underwriter—Loewi &
"Y,
Co., Milwaukee, Wis.
Claussen Bakeries, Inc., Augusta, Ga.
April 1 filed 162,500 shares of class A common stock
(par $1) and 62,500 shares of class B common stock (par
$1). Price—Of class A shares $10 per share; of class
Family Digest, Inc.
April 9 (letter of notification) 142,875 shares of class A
stock.
Price—At par
($1 per share).
Proceeds—For
operating capital and operating expenses. Office—421
Hudson St., New York 14, N. Y.
Underwriter—Carl J.
Washington. D. C.
Financial Credit Corp., New
York
Jan. 29 filed 250,000 shares of 7% cumulative sinking
fund preferred stock. Price—At par ($2 per share). Pro¬
ceeds—For working capital. Underwriter—E. J. Foun¬
tain & Co., Inc., New York.
Firth-Loach Metals, Inc., Pittsburgh, Pa.
18 filed 33,400 shares of capital stock (par
March
Price—$25
$25).
share. Proceeds — For expansion, equip¬
capital. Underwriter—None.
per
and working
ment
(5/26)
if Florida Power Corp.
.
May 3 filed 75,000 shares of cumulative preferred stock
(par $100). Price—To be supplied by amendment. Pro¬
ceeds—$3,378,400 to redeem 4.90% cumulative preferred
now outstanding, and the remainder used for new
stock
construction.
Underwriters—Kidder, Peabody & Co. and
Lynch, Pierce, Fenner & Beane, both of New
Merrill
shares, $8 per share.
Proceeds—From sale of stock,
together with $500,000 to be received for sale of 5%
Feb. 2
Thursday, May 6,
1954
Inc.
Co.,
l
(letter of notification) 150,000 shares of com¬
mon
stock (par 10 cents).
Price—25 cents per share.
Proceeds—For working capital and general corporate
April 21
f
Office —18 Clinton Street, Brooklyn, N.
Underwriter—20th Century Pioneer Securities Co., New
purposes.
YY'Y:''"Y ;-///■:/
;./, / v
(5/11)
April 21 filed 330,296 shares of common stock (par $3).
Price—To
be supplied
by amendment.
Proceeds—To
selling stockholders. Office—Philadelphia, Pa.
Under¬
York, N. Y.
•
.
.
Keystone Portland Cement Co.
v
;
writer—Shields & Co., New York.
if La Gorge Country Club, Miami Beach, Fla.
April 26 (letter cf notification) $299,000 of 2% 30-year
debentures due July 1, 1984, to be offered to members
or
jj
,j<
family of members, of company. Price—At par. Pro- ..
—
For additions to club house, etc. Office—5685
j;
ceeds
Road, Miami Beach, Fla.
Alton
Underwriter—None.
if Lake Superior Refining Co., Superior, Wis.
April 23 (letter of notification) 77 shares of common
stock and $7,700 of 5% promissory notes. Price—At par
j
j;
for stock and face amount for notes,
Proceeds—For acquisition of a marketing organization,
Address—Box 42, East End Station, Superior, Wis. Un($100 per share)
js
derwriter—None.
York.
debentures,
Electronics
Kendon
...
B
will
Claussen's
be used to acquire stock of
Inc.
Underwriter — Johnson,
Sons,
H.
H.
Lane,
Space & Co., Inc., Savannah, Ga.
Colonial
per
share.
(par $1).
Proceeds—For invest¬
ment.
Underwriter—Stone & Webster Securities Corp.,
New York.
;
Columbia Gas
System, Inc.
of subordinated convertible
debentures due 1984 being offered for subscription by
common
stockholders of record April 21 on the basis
of $100 of debentures for each 36 shares held; rights to
expire on May 10. Price—100% of principal amount
Proceeds
For construction program.
Underwriter —
Halsey, Stuart & Co. Inc. won award of the issue on
March
filed
22
$50,000,000
—
April 21.
7
filed
$50,000,000 of first and refunding mort¬
gage bonds, series K, due May 1, 1984. Proceeds—To be
applied towards cost of redeeming $27,982,000 New York
Steam Corp.
first mortgage bonds and $25,000,000 West¬
chester Lighting Co. general mortgage bonds. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley
&
Co.; The First Boston Corp.; Offering"—Originally set
May 11, but has been postponed because of market
for
conditions.
No
date
new
set/
V
Consolidated Natural Gas Co.
y
(5/25)
April 15 filed $25,000,000 of debentures due 1979. Pro¬
ceeds—To repay $15,000,000
long-term notes due March
1, 1955, and to purchase stock from or make loans to its
subsidiaries who will
struction.
tive
the funds to pay for new con¬
be determined by competi¬
use
Underwriter—To
bidding.
Probable
bidders:
Halsey, Stuart & Co.
Inc., White, Weld & Co. and Paine, Webber, Jackson &
Curtis (jointly); Morgan Stanley & Co. and The First
Boston Corp. (jointly). Bids—Expected to be recei'ved up
to 11:30 a.m. (EDT) on May 25.
\.
•
Engineering Corp. (5/10)
(letter of notification) $300,000
23
of
6%
sub¬
ordinated convertible debentures due April 1, 1964. Price
—At 100%.
Proceeds—For working capital.
Office-
Norwood,
Underwriters
Mass.
Thorndike, Inc.,
Boston, Mass.
—
Childs,
New
York, and
/ ^ //Yv /Y
Jeffries
Estabrook
&
&
General Gas
March 19 filed
(par $5).
Price
stock
common
At
—
and
par.
—
Co., New York, Offering—Postponed indefinitely.
Utilities Corp. (5/12)
606,423 shares of common stock (par $5)
to be offered for subscription by stockholders at rate
of one new share for each 15 shares held on May 12;
General
5%
cumulative
with rights to
Lynch,
preferred
Statement
effective
April
Cornbelt Insurance
stock
of
per
share.
of
securities.
stock (par $1).
Proceeds—For investment,
April 7i (letter of notification)
1,666 shares of
common
Price—At market
(approximately $30 per share).
Proceeds
To Octave Blake, the
selling stockholder.
Underwriter—Pyne, Kendall & Hollister, New York.
—
Douglas Oil Co. of California.
April 23 (letter of notification) a
shares
of
maximum
of
17,000
stock
common
(par $1).
Price—At market
(around $6.37V2 per share). Proceeds—To certain sell¬
ing stockholders.
Underwriter—Shearson, Hammill &
Co., New York.
■/.
if Dravo Corp.
April 23 (letter
shares of
ployees.
share).
of
common
Price
•
Housatonic
Service
Public
clearing
as
—
notification)
stock
At
(par $1)
market
not
exceeding
to be offered
(approximately
to
6,000
em¬
per
Proceeds—For general corporate purposes.
Of¬
Island,
Pittsburgh
25, Pa.
Underwriter—
None.
of
one
new
share for
each
eight
shares then held (with unsubscribed shares being offered
to
officers and
Price—$21
loans
None.
>:
employees); rights to expire
share.
per
and
Proceeds—To
construction
for
repay
expenses.
May 13.
on
$130,000 bank
Underwriter—
Associates, Inc. '(5/10)
April 19 (letter of notification) 7,500 shares of
Corp.,
Chicago,
share.
per
III.
common
(par $1) to be offered for subscription by stock¬
holders of record May 10, 1954 on the basis of one new
share for each 15 shares
held; rights to expire
on
June
j
Proceeds—For
venture
(par $1).
semi-
or
Canada. Underwriter—
f
of
exceed
be
shares
of
if Loeb (Carl M.), Rhoades & Co.
May 5 filed $4,999,400 of American depositary receipts
for Japanese sterling
bonds, underlying securities as
follows:
Imperial Japanese Government 4%
sterling
loan of
common
stock
(par
$1)
but
num¬
not
Proceeds—For general
corporate
purposes.
Michigan Avenue, Chicago, 111.
Under¬
Co.
Service
interest.
Underwriter—To
be
determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Union Securities Corp. and Salomon Bros.
& Hutzler (jointly); Equitable Securities Corp.; White,
Weld & Co.; Kidder, Peabody & Co. and Blyth & Co.,
Inc.
(jointly).
Bifls—To be received up to 11 a.m.
on
Broadway, New York 6, N. Y.
May 10 at 61
if Kansas-Nebraska Natural Gas Co., Inc. (5/18)
April 28 filed 10,000 shares of $5 cumulative preferred
stock (no par).
Price—$101 per share. Proceeds—For
Co., Chicago,
\
Tokvo Electric Light Co., Ltd. 6%
bonds (Sterling series). Holders of bonds
the aforementioned issues whether or not they have
];
5%
Yokohama
5%
1912
of
loan
1926 (Sterling bonds);
first mortgage
of
assented
of
to
Underwriters — Cruttenden &
III, and The First Trust Co. of Lincoln,
etc.
if Kansas-Nebraska Natural Gas Co., Inc. (5/18)
April 28 filed 85,090 shares of common stock (par $5)
to be offered for subscription by common stockholders
basis
of
one
about May 18
share
new
(with
for
each
10
shares
held
oversubscription privilege).
Employees to be given right to purchase unsubscribed
shares.
Price—$23 per share. Proceeds—For property,
additions.
made
by the
an
Underwriters
Cruttenden & Co., Chicago,
111,, and The First Trust Co. of Lincoln, Neb.
—
agreement of
Sept.
I
England, are being offered the opportunity of deposit¬
ing an aggregate of not more than 1,785.500 Sterling
pounds principal amount of such bonds with the deposit¬
ary, Schroder Trust Co., New York, or with the subdepositary, J. Henry Schroder & Co.; London, England,
under the deposit agreement and receiving in respect
thereof
Amer.can depositary
receipts issued in New
York
f
therein.
being offered here¬
by for sale for cash. Bonds deposited in London can only
upon
of
payment
No American
charges described
the
depositary receipts
are
|
j
.
if Lynch Carrier Systems, Inc.,
f
San Francisco, Calif.
filed $250,000 of 6%
;
sinking fund
4
May
debentures,
series A, due June 1, 1969 (with capital stock purchase
warrants attached—each warrant to entitle purchaser of
each $1,000 of debentures to
acquire 150 shares of capithrough May 1, 1962). Price
and accrued interest for debentures.
Proceeds
j
talk stock at $3.75 per share
establish
Y:
i
!'
sales
application engineering offices in
selected cities to aid effort of company's national distributors;
machinery
for
and
equipment;
for
general
-j.
funds to continue research and development; and to pro-
J
i
York.
if Lynch Carrier Systems, Inc.
May 4 filed 140,000 shares of capital
Price
—
To be
Underwriter—P.
(par $1).
Proceeds — To
stock
supplied by amendment.
selling stockholder.
W.
Brooks &
Y':" •/•¥'//
•
I
Co.,
J
|
;
:
certificates
for
Inc.,
Republic of Panama
March
30
filed
American
voting
1,000,000 shares of
common
—To
by
be
supplied
stock
amendment.
trust
f
(par one cent). Price
Proceeds—For
ex¬
ploratory drilling and development, in State of Israel,
and for operations and expenses. Underwriter—To be
named
I
!
by amendment.
1
Mission Indemnity Co., Pasadena, Calif.
March 29 filed 600,000 shares of common stock
(par 65
cents) to be offered first to stockholders and to general public. Price—$2 per share. Proceeds—To increase
capital and surplus.
[
\
Underwriter—None.
Mississippi Chemical Corp., Yazoo City, Miss.
Jan. 5 filed 26.666 shares of special common stock (par
575—limited
Neb.
the
offer
the
1952 by the Government of Japan and the Council
the Corporation. of
Foreign Bondholders. London,
Mediterranean Petroleum Corp.,
(5/10)
14 filed $7,500,000 of first mortgage bonds due
May 1, 1984. Proceeds—To redeem a like amount of out¬
standing first mortgage 4% bonds due 1983 at 102.42%
(EDT)
5% Sterling bonds of 1923; City of
Sterling bonds of 1934; City of Tokyo
(Sterling bonds) and 5¥2% loan of
churian Ry. Co. Ltd.
Inc., New York.
Public
accrued
1899; 5% of 1907; 4% of 1910; 6% of 1924; 5Vz%
loan of 1930 (Sterling bonds); South Man-
conversion
to
writer—None.
Iowa
j
/
—
6,000 shares, to be offered to employees. Price—
of market price (market estimated at $45
N.
!j
•
_
working capital. Business — Designing
manufacturing of electronic communications sys¬
tems.
Underwriter
P. W. Brooks & Co., Inc., New
85%
share).
/
and
if International Cellucotton Products Co.
April 30 (letter of notification) an undeterminate
or
Price—$39 per share.
vide additional
White, Weld & Co., New York.
plus
j;
—To
(5/10)
stock
common
venture investment situations in
on
stock
^
if Link-Belt Co., Chicago, III.
*
April 30 filed 21,677 shares of common stock (par $5)
to be offered for subscription by a selected group of officers and employees of the company and its subsidiaries.
—100%
yYY?Y/Y;:.:/,•> /Y /:•./
;/
Inter-Canadian
on
Electronic
j-
y
be released in London.
Co.
April 7 fifed 41,159 shares of common stock (par $151
being offered for subscription by stockholders of record
property additions,
$42
fice—Neville
act
April
Cornell-Dubilier Electric Corp.
stock.
may
Southwest Co.. Dallas, Texas.
Under¬
writer—None.
equipment of control plant, and main plant, working
capital, advance royalties and reserves.
Business — To.
refine beryllium ore and market the products.
Underwriter—Philip Gordon & Co., Inc., New York.
v
26,
Office—919
Co., Freeport, III.
common
Beane
(Fritz W.) & Sons, Inc. (5/24)
May 3 filed 170,000 shares of common stock (par $2).
Price—To be
supplied by amendment.
Proceeds—To
selling stockholders. Office—Dallas, Texas. Underwrit¬
ers—A. C. Allyn & Co., Inc., Chicago, 111., and The First
per
19.
March 17 filed 300,000 shares of
Price—$3
.classes
&
*Glitsch
To
same
Fenner
General Stores Corp., New York t
March 8 filed 300,000 shares of common stock (par $1).
Price—$1.37 V2 per share. Proceeds—To pay part of cost
of acquisition of Ford Hopkins Co., Chicago, 111. Under¬
writer—A. C. Allyn & Co., Inc., Chicago, 111.
earlier
of
Pierce,
;
Holding Corp., a subsidiary, and for working
Underwriter—None. This offering is a continua¬
offerings
Proceeds—To
agent.
tion
F.
expire June 2. Price—To be supplied by
be invested in corporation's
subsidiaries. Underwriter—None, but Merrill
domestic
capital.
of
Public
amendement.
ber
L.
stock (par $5).
common
Price
To be supplied by amendment. Proceeds — To
selling stockholders.
Underwriter—Kidder, Peabody &
Price—$25
Proceeds—To retire class B
t;
|
—
Corp., Baton Rouge, La.
100,000 shares of
April 19 filed 100,000 shares of
March 26 filed 7,500 shares of 4% cumulative preferred
stock (par $100) and 500,000 shares of common stock
G.
Un¬
Corp., Miami, Fla.
March 25 (letter of notification) 74,990 shares of capital
stock (par $1). Price—$4 per share. Proceeds—For work-'
ing capital. Office—799 N. W. 62nd Street, Miami, Fla.
Underwriter—Murphy & Co.. Miami, Fla.
Co.,
Cooperative Grange League Federation
Exchange, Inc.
j
Feb. 15 filed
General Credit
April 23 at the rate
Control
April
capital expenditures and working capi¬
April 15 filed
,• Consol. Edison Co. of New York, Inc.
April
inventory,
Office—100 West 10th Street, Wilmington, Del.
derwriter—Sheehan & Co., Boston, Mass.
tal.
(5/17)
April 23 filed 700,000 shares of common stock
Price—Initially at $16
Corp., Wilmington, Del.
(letter of notification) 140,000 shares of common
stock (par 10 cents). Price—$1.50 per share. Proceeds—
For
Fund, inc.
Light Metals Refining Corp., New York (5/17):
1,250,000 shares of common stock (par $1;.Price
$4 per share.
Proceeds — For construction and
•
Gamma
dividend)
and
$1,500,000
of certificates of
participation (to be sold in multiples of $75—5% interest). Proceeds—From sale of these securities, together
with bank borrowings, are to be used for expansion of
facilities. Underwriter—None. Sales will be handled by
company employees.
*
Missouri
Public
Service Co.
•
...
,
.
(5/18)
filed 50,000 shares of cumulative preferred
stock (par $100). Price—To be supplied by amendment.
Proceeds—To redeem outstanding first preferred stock
April
;
23
,
j
Volume 179
Number 5322
($3,475,000), to
repay
Peabody
The Commercial and Financial Chronicle
Underwriter—Kidder,
program.
Montana
Power
Co.
(5/12)
filed $18,000,000 of debentures due 1979.
ceeds—To
refund
Pro¬
like amount of 4%% debentures due
1978.*^ UmlerWriter^To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
May 12.
on
The
a
White, Weld & Co.f Kidder, Peabody & Co., Smith, Bar¬
ney & Co., Blyth & Co.y Inc. and Union Securities Corp.
(jointly).
Bids—Expected to be received up to 11 a.m.
:
2
filed
Price—At
York
c
of their immediate families
(150,458); and The Lehman
Underwriter—None. No general offer
Transportation
Canada
April
filed
29
Commission,
Montreal,
(5/18)
$27,000,000
sinking fund
of
Salomon
Bros. & Hutzler (jointly); Lehman
Brothers;
White, Weld & Co., Union Securities Corp., and Blyth
8c Co., Inc. (jointly); Dominion Securities
Corp. Offer¬
ing:—Tentatively expected on May 18.
if Mutual Investors Corp. of New York
(letter, of notification)
stock
mon
(par
ceeds—For
New
298,000 shares of
Price—$1
Office—550
Underwriter—Greenfield
com¬
share.
per
Pro¬
Fifth Avenue,
Co., Inc., New
&
.
Natick
March
Industries, Inc., Natick, Mass.
10
stock
mon
cents).
working capital.
York.
York.
10
(letter of notification) 58,800 shares of com¬
(par $1). Price—$5 per share. Proceeds—For
working, capital, etc.
Underwriter—J.
P.
Marto
&
Co.,
Boston, Mass.
"/New Bristol Oils, Ltd., Toronto, Ont., Canada
18 filed 1,000,000 shares of common stock (par $1).
Price—To be related to the bid price of the shares on
Dec.
the Toronto
commission.
Stock
Exchange, with
a
20%
underwriting
Proceeds—For
general corporate purposes
Underwriter—To be named by amendment.'- :
New Mexico Copper Corp.
April 4 (letter of notification) 600,000 shares of common
stock (par 25 cents).
Price—50 cents per share. Pro¬
ceeds—For
and
1211
,
New
mining
Office—Carrizozo, N. M.,
expenses.
E. Capital St.,
—Mitchell
Washington, D. C.
Securities, Inc., Baltimore, Md.
York
State
Electric
&
Gas
Underwriter
Corp.
(5/19)
April 21 filed $20,000,000 first mortgage 'bonds due 1984.
Proceeds—To repay bank loans and for new construc¬
tion. Underwriters—May be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kidder, Peabody & Co. and Salomon Bros. & Hutzler
(jointly); Union Securities Corp.; The First Boston Corp.
and Glore, Forgan & Co.
(jointly);, Lehman Brothers,
Harriman Ripley & Co. Inc.; Hemphill, Noyes & Co. and
Drexel & Co. (jointly).
Bids—Expected to be received
up to 11 a.m. (EDT) on May 19.
North
to
be
offered
($25
each
common
for
subscription by common stock¬
May 1, 1954, on the basis of one new
holders of record
share for
five
shares held.
common
Price—At par
share).
Proceeds—For general corporate pur¬
Office—Gibsonia, Pa. Underwriter—None.
per
poses.
North Shore Music Theater, Inc.,
Boston, Mass.
Feb. 3 (letter of notification) $80,000 of 5% notes due
Feb. 1, 1974, and 2,000 shares of common stock
(par
$10)
to
be
sold
in
units
of
$400
principal amount of
notes and 10 shares of stock. Price—$500 per unit. Pro¬
ceeds—For actors' equity bond, royalties,
land, construc¬
tion
of
theater
and
St., Boston, Mass.
Go., Bos/on, Mass.
related
expenses.
Underwriter—H.
Office—60
C.
State
Wainwright
&
Northern Natural Gas Co. (5/11)
April 16 filed $40,000,000 of sinking fund debentures due
Nov. 1, 1973. Price—To be supplied by amendment. Pro¬
ceeds—To be applied toward redemption in June, 1954,
of
a
like
amount
of
debentures
due Nov.
1,
1973.
Underwriter—Blyth & Co., Inc., New York.
• Northern Ohio
Telephone (5/18)
April 23 filed 117,150 additional shares of common stock
(par $10) to be offered for subscription by stockholders
of record May 14 on the basis of one new share for each
two held: with
by amendment.
a
14-day standby. Price—To be supplied
Proceeds—To repay bank loans and for
additions and improvements.
Underwr ters—*
Hayden, Miller & Co.; McDonald & Co.; Merrill, Turben
& Co.: and Lawrence Cook & Co.; all of Cleveland, Ohio.
property
if Oklahoma Oil Co., Denver, Colo.
April 30 (letter of notification) 800,000 shares of com¬
mon stock
(par five cents) to be offered first to stock¬
holders.
Price—25
market to public.
21
4,
offset
Colo.
locations.
cents
share to stockholders;
Proceeds—To drill for oil and gas
per
Office—401
Underwriter—None.
and
May 18. i
on
Halsey, Stuart &
Co.
Inc.
Zook
at
on
Building, Denver
Corp. (5/7)
1,430,000 shares of common stock (par
one cent).
Price—$1.25 per share. Proceeds—To exercise
options on claims, and for general corporate purposes.
Office
Moab, Utah. Underwriters
Gearhart & Otis,
Inc., New York, and Crerie & Co., Houston, Tex.
/
<■
•
'
•
★ Peck (T. N.) & Associates, Inc., N. Y.
April 26 (letter of notification) 56,200 shares of capital
stock (par 10 cents). Price—$1 per share. Proceeds—For
production of charcoal and its byproducts. Office—Room
1100, 250 Park Ave., New York.
Underwriter—None.
People's Finance Corp., Denver, Colo.
$300,000 of 6% 15-year convertible sub¬
Price—100% of principal amount.
Proceeds—For general
corporate purposes, probably to
bank loans or repurchase of out¬
reduce outstanding
standing securities. Underwriter
—
Paul C. Kimball
&
People's Finance Corp., Denver, Colo.
March 23 filed 2,904 shares of 6% cumulative preferred
Price—At par ($50 per share). Proceeds — For
general corporate purposes.
Underwriter—None. Com¬
is also seeking registration of $164,000 of deben¬
tures, notes and preferred and common stock heretofore
pany
are
to
be
offered the
right to
rescind their purchases.
Porta Co., Inc., Chestnut Hill, Mass.
April 8 (letter of notification) 640 shares of $6 cumula¬
tive preferred stock (no par) and 640 shares of common
stock (no par) to be offered in units of one share of
each
class
of
stock.
filed
$8,000,000
Corp.
of
(5/18)
12-year sinking
fund de¬
be supplied by
outstanding bank
loans;
Underwriters-—Johnston, Lemon & Co., Wash¬
ington, D. C., and Union Securities Corp., New York.
due
amendment.
May
1,
1966.
Proceeds
—
To
Price—To
reduce
if Strategic Metals, Inc.
April 29 (letter of notification) 1,200,000 shares of com¬
mon
stock.
Price—At par (10 cents per share).
Pro¬
ceeds—For exploration and development expenses. Of¬
fices—Tungstonia, Nev., and 609 First Security Bank
Building, Salt Lake City, Utah. Underwriters—William
H.
Weston (Jr. and Sr.), Wheatland, Wyo., and Dr. A.
Eugene Currier, Sunrise, Wyo.1
■
Strevell-Paterson Finance Corp.
19 filed 640,000 shares of common
Feb.
cents
stock (par 50
in exchange for the $300,000 par
authorized, issued and outstanding capital
being
value
of
offered
stock of Strevell-Paterson Finance Co.
on the basis
(a)
Corporation stock for each of the 5,000
5% cumulative preferred stock (par $10) of "
the Company and (b) 23 shares of Corporation stock
for each of the 25,000 shares of $10 par common stock
13
shares of
shares
stock.
thereof
26
bentures
of
Co., Chicago, 111.
holders
—
State Loan & Finance
March 23 filed
sold and
filed
,
supplied by amendment. Proceeds—For explora¬
tory drilling and development in State of Israel, and for
operations and expenses. Underwriter—To be named by
amendment.
15
—
Bids—Tentatively expected
Co., Inc. of Republic of Panama
March 30 filed American voting trust certificates for 1,000,000 shares of common stock (pat one cent). Prices—
39
Standard Uranium
March
April
of the
of
Offer expires
company.
None.
Oct.
Office—Salt Lake City, Utah.
31.
Underwriter—
Statement effective
March 30.
if Suburban Recreation, Inc., Silver Spring, Md.
April 30 (letter of notification) 6,000 shares of common
stock.
Price—At par
($25 per share).
Proceeds—Yea*
build public swimming pools and associated recreational
facilities.
Spring,
Office
Md.
—
1223
Woodside
Parkway,
Silver
Underwriter—None.
Price—$100 per unit.
Proceeds—
sporting goods.
Office — 48 Moody
St., Chestnut Hill, Mass.
Underwriter — Minot Kendall
& Co., Inc., Boston, Mass.
Sun Oil Co., Philadelphia, Pa.
April 15 filed a maximum of 139,662 shares of common
stock
(no par) to be offered for possible public sale
during the period July 1, 1954 to June 30, 1955. Price—
if Public Service Electric & Gas Co. (5/19)
April 28 filed 249,942 shares of cumulative preferred
stock (par $100).
Price—To be supplied by amendment.
At
For manufacture
of
Proceeds—To redeem
on
June 30
a
like amount of 4.70%
preferred stock.
Underwriters—Morgan Stanley & Co.,
New York; Drexel & Co.,
Philadelphia, Pa.; and Glore,
Forgan & Co., New York.
if Public Service Electric & Gas Co.
(5/26) :
April 28 filed $50,000,000 of first and refunding mort¬
gage bonds due May 1, 1984.
Proceeds—For new con¬
struction.
Underwriter—To be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Co.,
Inc.; Morgan Stanley & Co. and Drexel & Co. (jointly);
Kuhn, Loeb & Co. and Lehman Brothers (jointly); The
First Boston Corp. Bids—Expected to be received
up to
11 a.m. (EDT) on May 26.
tive
Pumice, Inc., Idaho Falls, Idaho
29
(letter of notification)
1,170,000 shares of
common stock (par 10
cents). Price—25 cents per share.
Proceeds—To complete plant, repay obligations and for
March
working capital.
Office —1820 N. Yellowstone, Idaho
Falls, Idaho.
Underwriter — Coombs & Co., Salt Lake
City, Utah.
Rio Grande Investment
Co., Longmont, Colo.
April 19 (letter of notification) 1,150 shares of common
stock
(no par) and 1,150 shares of 6% cumulative parti¬
preferred stock (par $100) to be offered in
cipating
units of
unit.
Jr..
one
share of each class of stock.
Proceeds
loans.
194,
Pittsburgh Telephone Co.
AprjU23 (letter of notification) 2,000 shares of
stock
Corp.
ordinated debentures.
debentures,
1954 issue, due May 1, 1974, guaranteed unconditionally
as to
principal, interest and sinking fund retirements
by The City of Montreal (Canada). Price—To be sup¬
plied by amendment. Proceeds—To redeem outstanding
$24,944,300 of Montreal Tramways Co. general mortgage
sinking fund bonds due April 1, 1955; and balance for
modernization program. Underwriter — To be deter¬
mined by competitive bidding. Probable bidders: Shields
& Co., Halsey, Stuart & Co. Inc. and Savard & Hart
(jointly); Kuhn, Loeb & Co., Glore, Forgan & Co. and
April 29
Boston
To be
secondary distributions. Proceeds—To Lehman Borthers
(400 shares); partners of Lehman Brothers and members'
if Montreal
•
Pan-Israel Oil
257,338 shares of common stock (par $1).?
then prevailing on the New Exchange, or through special offerings or
Corp. (106,480).
planned.
First
to be received
the market price
Stock
(5/18)
•
Monterey Oil Co., Los Angeles, Calif.
Feb.
Gas & Electric Co.
(jointly); Blyth & Co., Inc.
v
•
(2019)
April 20 filed $65,000,000 of first and refunding mort¬
gage bonds, series X, due June 1, 1984.
Proceeds — To
refund $63,040,000 4% bonds, series V. Underwriter—To
be determined by competitive bidding. Probable bidders:
& Co., New York.
March 31
(EDT)
Pacific
$750,000 bank loans and the bal¬
construction
tor
ance
...
—
For
operating
Price—$100
expenses
and
Address—P. O. Box
Underwriter—William E. Conly,
Shawano
Development Corp. (Fla.)
(5/7)
(letter of notification) 83,000 shares of com¬
(par $1). Price—$3 per share. Proceeds—For
development of land and planting Ramie and for work¬
April
ing
23
stock
mon
capital.
Underwriter
—
McGrath
Securities
if Stoony Vacuum Oil Co., Inc.
May 3 filed $15,000,000 of Interests in The Employees
Savings Plan of this company, together with 300,000
shares of capital stock (par $15) do be issued in con¬
ceeds—To repay
$2,800,000 of bank loans, for new con¬
struction and for advances to its subsidiary. Underwriter
—Kidder, Peabody & Co., New York.
if Southeastern Public Service Co.
(5/20)
April 29 filed 36,000 shares of 6% cumulative convertible
preference stock, seris B (par $25). Price—To be sup¬
plied by amendment. Proceeds—For general corporate
purposes.
Underwriter—Bioren & Co., Philadelphia, Pa.
Spokane Seed Co., Spokane, Wash.
March 8 filed $600,000 of
5% convertible debentures due
June
15, 1964, to be sold to pea growers located in East¬
Washington and Northern Idaho.
Price—100% of
principal amount.
for
working
Proceeds—To improve facilities and
Underwriter—None.
capital.
if Standard Oil Co. (Ohio)
April 28 filed $2,827,000 of interests in Sohio Employees
Investment
Plan, together with 47,950 shares of common
$10) and 9,000 shares of 3%% cumulative
preferred stock, series A (par $100), purchasable under
plan (the amount of interests to be registered being the
estimated interests which the employee allotments and
Sohio's contributions will provide).
stock
(par
stockholders.
Under¬
through brokerage1
aries and
latter
146,100 shares of common stock (no par), the
representing, .the ^maximum number of shares
which it is anticipated may be purchased by the trustees
under the plan. Underwriter—None.
if Superior Refinery Owners, Inc.
April 23 (letter of notification) 72 shares of common
stock and $7,200 of 5% promissory notes. Price—At par
($100 per share) for stock or face amount for notes.
Proceeds—For purpose of enabling affiliate to set up a
marketing organization. Address—Box 42, East End Sta¬
tion, Superior, Wis; Underwriter—None.
if Taylorcraft, Inc., Conway, Pa.
April 30 (letter of notification) 150,000 shares of 6%
cumulative convertible preferred stock, of which 100,000 shares will be offered to
creditors.
Price—At par
($2
public and 50,000 shares to
share). Proceeds—For
per
Underwriter—Graham
working capital.
burgh, Pa.
&
Co.,
Pitts¬
if Tennessee Production Co., Houston, Tex.
April 29 filed $315,000 of contributions to be made by
employees to the Thrift Plan of this company.
Telephone Bond & Share Co.
filed 324,089 shares of common stock (par $TA
being offered for subscription by stockholders on the
March 31
basis of one new share for each two shares held April 27;
rights to expire on May 11. Price—$15 per share. Pro¬
ceeds—For financing of company's subsidiaries. Under¬
writers— Lazard
Freres &
W. C. Pitfield &
Co., Inc.
Transportation
Co.; White, Weld & Co.; and
Development
Corp.
(5/2G)
April 26 filed 100,000 shares of common stock (par $1).
Price—$6 per share. Proceeds—To finance the costs of
obtaining
contracts
for
the
construction
of
the
com¬
system, for working capital and
general corporate purposes.
Underwriters—
L. H. Rothchild & Co., New York.
pany's
for
transportation
other
.
therewith.
if South Carolina Electric & Gas Co. (5/20)
April 30 filed 80,000 shares of cumulative preferred stock
(par $50). Price—To be supplied by amendment. Pro¬
ern
selling
Sun Oil Co., Philadelphia, Pa.
April 15 filed 14,000 memberships in the stock purchase
plan for the employees of this company and its subsidi¬
Corp.,
New York.
nection
Proceeds—To
houses.
per
to make
Business—Finance company.
Longmont, Colo.
Longmont, Colo.
market.
writer—None. The shares will be sold
if Tri-State Metals, Inc., Mesquite, Nev.
April 28 filed 3,000,000 shares of common stock (partly
under a rescission offer). Price—At par ($1 per share).
Proceeds—To repay loans, retire mortgages, and for ex¬
ploratory and development work, tungsten mill and
facilities, and a reserve for development of other pres¬
ently owned mining properties. Underwriter—None.
if Trican Petro-Chemical Corp., Montreal, Canada.
April 30 filed 500,000 shares of common stock (par $1).
Price
To be related to the market price at time of
—
offering. Proceeds—For development costs and general
corporate purposes.
Underwriter — To be named by
amendment.
•
Twin
Arrow
Petroleum Corp.
(5/10)
April 13 (letter of notification) 600,000 shares of class A
common stock (par 10 cents).
Price—50 cents per share.
Proceeds—For general corporate purposes.
Underwriter
—General
Investing Corp., New York.
if United States Sulphur & Chemical Corp.,
Carson City, Nev.
(5/27)
April 30 filed 380,000 shares of common stock (par $1).
Price—$2 per share. Proceeds — For acquisitions, ex¬
ploration and development expenses, and for working
capital. Underwriter—Vickers Brothers, New York.
Continued
on
page
40
*0
The Commercial and Financial Chronicle
(2020)
Continued
from
Carrier Corp.
23 stockholders
39
page
Co., Salt Lake City, Utah
April 29 (letter of notification) 2,900,000 shares of com¬
mon stock (par five cents).
Price — 10 cents per share.
Proceeds—For exploration and development of uranium
and petroleum properties.
Office—53 East 4th South
St., Salt Lake City, Utah. Underwriter — Hunter Secu¬
rities Corp., New York..
Uranium-Petroleum
Virginia Electric & Power Co. (5/17)
April 19 filed $25,000,000 of first and refunding mortgage
bonds, series K, due May 1, 1984. Proceeds—To repay
.
;
bank
loans
and
for
construction.
new
Underwriter—To
be determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc., Kuhn, Loeb & Co. and Wertheim & Co. (jointly); Stone & Webster Securities Corp.;
"White, Weld & Co.; Union Securities Corp.; Salomon
Bros. & Hutzler.
Bids—Expected to be received up to
(EDT)
xioon
May 17 at Room 735, 11 Broad St., New
on
York, N. Y.
•
Tenn.
April 26 (letter of notification) 85,000 shares of com¬
mon stock (par $1).
Price—$3.50 per share. Proceeds—
For expansion.
Underwriter—Eastman, Dillon & Co.,
New York.
Offering—Expected today (May 6).
'
Webb & Knapp, Inc., New York
April 14 filed $8,607,600 of 5% sinking fund debentures
June
1,
1974, to
be offered together with
certain
cash by the company in exchange for outstanding com¬
stock
mon
of Equitable Office Building Corp.
on
basis
of $5 in cash and $7 principal amount of debentures for
each share of Equitable stock.
Exchange offer is con¬
ditioned solely upon acceptance
Underwriter—None.
by 80%
of outstanding
scares.
West Coast Pipe Line Co.,
Dallas, Tex.
$29,000,000 12-year 6% debentures
due Dec. 15, 1964, and 580,000 shares of common stock
20,
approved a proposal to increase
the authorized common stock (par $10) from 1,600,000
shares to 5,000,000 shares and the authorized preferred
(par $50) from 181,855 shares to 800,000 sharei
provide for further possible financing. Proceeds—
expansion, etc. Underwriters—Harriman Ripley A
Co. Inc. and Hemphill, Noyes & Co.
stock
to
& Electric Corp.
1952
filed
(par 50 cents) to be offered in units of
$50 deben¬
ture and one share of stock.
Price—To be supplied by
.amendment. Proceeds—From sale of units and 1,125,000
additional shares of common stock and private sales of
one
and
announced issues of mortgage bonds
was
under consideration, but def¬
largely upon developments in
the securities markets. Construction cash requirement# are estimated at $17,300,000 for 1954-1955.
Company is
reported to be considering the issuance of about $9,000,000 bonds this fall and $3,500,000 of preferred stock in
1955.' Underwriter—Kidder, Peabody & Co., New York.
preferred stock
inite
now
are
plans will depend
'
Illinois Electric & Gas Co.
Central
Dec. 9 it
intends to offer end?
announced company
was
an
issue of $4,000,000 first
Proceeds—To repay bank loans and for
construction. Underwriters—To be determined by
mortgage bonds.
new
bidding. Probable bidders: Halsey, Stuart
Inc.; Stone & Webster Securities Corp.; Kidder,
Peabody & Co. and White, Weld & Co. (jointly).
competitive
&
Co.
Central Maine
April
1
William
Power 6o.
F.
that
reported
President,
Wyrhan,
the company expects to seil $5,000,000 of convertible pre¬
ferred stock late in the second quarter of 1954, but that
details of the
offering
not available at this time. Pro¬
are
ceeds—For construction program.
Underwriter—May be
determined by competitive bidding. Probable bidders:
Blyth & Co., Inc. and Kidder, Peabody & Co. (jointly);
Harriman Ripley & Co. Inc.; Coffin & Burr, Inc. Meet¬
ing—Stockholders
will
vote
May
12
on
increasing
authorized preferred stock from 330,000
shares.
shares to 410,000
West Coast
Pipe Line Co., Dallas, Tex.
Nov. 20, 1952 filed 1,125,000 shares of common stock (par
58 cents). Price—^To be supplied by amendment.
Pro¬
ceeds—Together with other funds, to be used to build
pipeline. Underwriters—White, Weld & Co. and Union
Securities Corp., both of New York.
Offering—Postjponed indefinitely.
•
Wisconsin
Electric
Co.
Power
April 7 filed 421,4.92 shares of common stock (par $10)
being offered for subscription by stockholders of record
.April 27 on the basis of one new share for each 10 shares
lield (with an oversubscription privilege); rights to ex¬
pire on May 20. Employees to receive rights to purchase
unsubscribed shares.
—-For
property
Price—$26.25
additions
per
share.
Proceeds
Under¬
improvements.
and
writer—None.
iir Wyoming Oii & Exploration Co., Las Vegas, Nev.
April 29 filed 500,000 shares of common stock. Price—
($1 per share). Proceeds—For exploration and
development of oil and gas properties. Underwriter—
At par
Chicago Great Western Ry.
26, the ICC dismissed the company's application
for exemption of an issue of $6,000,000 collateral trust
bonds due Nov. 1, 1978 from competitive bidding.
Pro¬
ceeds
To repay bank loans and for capital improve¬
ments.
Underwriters—May be determined by competi¬
tive bidding. Probable bidders: Halsey, Stuart & Co. Inc.
and Union Securities Corp. (jointly); Kidder, Peabody
& Co. and White, Weld & Co. (jointly); The First Boston
Corp.; Merrill Lynch, Pierce, Fenner & Beane. On April
23, last year, the road rejected the only bid made of
98.05% for a 5%% coupon by Halsey, Stuart & Co. Inc.
and Union Securities Corp. (jointly).
Feb.
Colorado-Western Pipeline Co.
March 5 it
applied to Colo¬
authority to build a $21,500,000 natural gas pipe line, in Colorado, to be financed
through sale of about 70% of bonds and 30% of equity
capital. John R. Fell, a partner of Lehman Brothers, is
a
Vice-President.
June
issue
to
and
pay
a
porate
purposes.
\ Underwriter — National Securities
Corp., Seattle, Wash., on a "best efforts basis."
*-V#-
,
bank
.
April
28 stockholders
the authorized
shares to
when
Underwriter—To
be
Connecticut Light & Power Co.
&
enable
the
a
proposal
to
increase
to 5,000,000
to sell additional shares
necessary.
construction
programs.
Arkansas
Louisiana
Underwriter—None.' :
Gas
Co.
Feb.22 it was reported Cities Service Co.
may sell its
3u)ldings of 1,900,000 shares of this company's stock. If
«old at competitive
bidding, bidders may include Smith,
Harney & Co. and Blyth & Co., Inc. (jointly).
reported company plans to sell, probably
an issue of about $7,500,000 first mortgage
was
August,
bonds
due
1984.
Underwriters
—
To
be
determined
by
•competitive
bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; The First Boston
Corp.; Lehman Brothers,
^tone & Webster Securities Corp. and
White, Weld &
(jointly); Blyth- &
Corp. and
Central
Co.,
Inc.,
Equitable Securities
Republic Co. Inc. (jointly); Merrill
Lynch, Pierce, Fenner & Beane
Corp. (jointly).
and
Union
Securities
Consolidated
8
it
increasing
on
was announced
company plans to issue and
«eU about $15,000,000 of first
mortgage bonds due 1984.
Proceeds—For construction program.
Brothers;
(jointly);
Co. Inc.
Underwriters—To
by competitive bidding. Probable bidders:
& Co. Inc.; The
First] Boston Corp.; LehKuhn, Loeb & Co. and A. C. Allyn & Co.
White, Weld & Co.; Harriman Ripley &
Offering—Tentatively expected in
Co.
of
New
The
stock
common
has
company
no
(no
will
par)
vote
definite
by
plans
May
2,000,000
to
issue
105.25%
(6/7)
issue
June.
June 16. Price—$50 per share. Proceeds—To
capital and surplus. Underwriter—None, r 1 f
on
increase
Florida Power Corp.
/
like amount of outstanding 3 3A% bonds due
be determined by competitive
a
for
Duquesne Light Co.
May 7.
(6/22)
on
June 23 to increase the authorized
preferred stock from
1,000,000 to 1,250,000 shares (par $50). It is planned, to
sell about $5,000,000 to $6,000,000 of this issue. Proceeds
—For
construction
termined
by
Underwriters—To be de¬
bidding.
Probable bidders:
program.
competitive
The First Boston Corp.; Lehman Brothers; Blyth & Co.
Inc.; Kidder, Peabody & Co.; Merrill Lynch, Pierce, Fen&
Beane
and
White, Weld & Co. (jointly); Kuhn,
Smith, Barney & Cp. (jointly). Bids—
Tentatively expected to be received on June 22.
Loeb & Co. and
Duquesne Light Co.
April 28 it
reported
(6/29)
Co. and Merrill Lynch, Pierce, Fenner &
(jointly). For bonds, to be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co,
Inc.; The First Boston Corp.; Lehman Brothers; Kidder,
Peabody & Co. and Merrill Lynch, Pierce, Fenner &
Beane (jointly). Common stock was increased by stock¬
holders on March 25 from 2,500,000 shares to 5,000,000
Peabody &
Beane
shares, and the preferred stock from 250,000
shares to
500,000 shares.
Power &
Florida
Light Co.
company may later this year
$15,000,000 of first mortgage bonds.
Underwriters—To be determined by competitive bidding.
Jan.
it
25
was
reported
issue and sell about
Probable bidders: Halsey,
Stuart & Co. Inc.; White, Weld
Co.; Lehman Brothers; Merrill Lynch, Pierce, Fenner
& Beane; Glore, Forgan & Co. and Harriman Ripley &
Co. Inc. (jointly).
&
Precision
General
April
Equipment Corp.
voted to approve a
stockholders
27
increase
the
proposal to
preference
convertible
authorized
stock
15,000 to 25,000 shares; the authorized preferred
stock from 150,000 to 250,000 shares and the authorized
common
stock from 1,500,000 to 2,000,000 shares. Pur¬
from
pose—The
the
increases
in
had been sought
stock
so
that
will have available additional authorized
and unissued stock to be used when considered advis¬
company
able by the board of directors for corporate purposes in¬
cluding, but not limited to, the acquisition of new busi¬
ness, financing of new construction, payment or prepay¬
ment of outstanding indebtedness, restoration of working
capital, granting of additional employee stock options
under the plan approved by stockholders in 1949, and
for additions to working capital.
Underwriters — The *
First Boston Corp. and Tucker, Anthony & Co.
Glass Fibers, Inc.
April 9 it was reported company plans to raise about
through
issuance
of
Underwriter—McCormick
1954.
new
&
securities
later in
111.
Co., Chicago,
Gulf Power Co. (6/22)
April 20 it
was
reported company plans to issue and sell
$10,000,000 of new first mortgage bonds due 1984.
Pro¬
ceeds—Refund
$6,593,000 of outstanding first mortgage
4y8%'bpnds due 1983 and for repayment of bank loans
and
Underwriter—To be determined
construction.
new
competitive bidding.
Probable
bidders:
Halsey,
Stuart & Co. Inc.; Kidder, Peabody & Co. and White,
by
Weld &
Co.
(jointly); Merrill Lynch, Pierce, Fenner &
Bros. & Hutzler and Drexel & Co.
(jointly); Equitable Securities Corp.; Union Securities
Corp. Bids—Expected to be received up to 11 a.m.
(EST) on June 22.
Beane,
Salomon
Jersey Central Power & Light Co.
16 it was reported company tentatively plans to
and sell in 1954 about $6,000,000 first mortgage
Dec.
Issue
—
For construction program.
determined by competitive bid¬
bonds due 1984.
Proceeds
To be
—
Weld
& Co.; Glore, Forgan & Co.; Kidder, Peabody &
Co.; Union Securities Corp., Salomon Bros. & Hutzler
and Merrill Lynch, Pierce, Fenner & Beane (jointly)}
The First Boston Corp.; Lehman Brothers.
Offering-
Expected in June.
Kansas City Power & Light Co.
March 8 it
was announced that company may sell in the
of 1954 $16,000,000 first mortgage bonds. Pro¬
ceeds
To repay bank loans and for new construction.
Underwriters—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Lehman
Brothers and Bear, Stearns & Co. (jointly); Kuhn. Loeb
& Co., Salomon Bros. & Hutzler and Union Securities
Corp. (jointly); Glore. Forgan & Co.; Blyth & Co., Inc.
latter part
—
and The First Boston
and Shields & Co.
Equitable
was
about
June
29.
Corp. (jointly); White, Weld & Co.
(jointly); Harriman Ripley & Co., Inc.,
Securities
April 27 aprpoved
Corp.
new
Meeting—Stockholders
on
financing.
it Libby,
McNeill & Libby
April 23 it was announced stockholders will vote May
20 on authorizing an issue of 100,000 shares of cumula¬
tive preferred stock (par $100), and to provide that this
stock may be issued, without first being offered to com¬
&
is tentatively plan¬
ning to issue and sell from $15,000,000 to $17,000,000 of
bonds
/
it was announced that the company plans new
financing late this summer which would require issu>- »
ance of common stock and probably $10,000,000 of bonds.
Proceeds — For new construction. Underwriters
For
common stock
(first to common stockholders), Kidder,
March 27,
Underwriter—To
Registration—Planned
stockholders.
Underwriters—May be Glore, Forgan
Co., New York.
company
Underwriter—To
be
determined
by competitive bidding. Probable bidders: Halsey, Stuart
Co. Inc.; The First Boston Corp.;
Glore, Forgan &
Co.; Kuhn, Loeb & Co., Union Securities Corp. and A.
&
C.
for sub¬
announced bank plans to offer
ding, Probable bidders: Halsey, Stuart & Co. Inc.; White,
company
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.; Kuhn, Loeb &°Co., and Union
Securities Corp. (jointly); Harriman Ripley & Co. and
The First Boston Corp. (jointly). Bids—Expected to be
received up to
11 a.m. (EDT) on or about June 7.
ned
was
Underwriters
sought authority from Michigan P. S.
and sell $25,000,000 of first mort¬
gage 30-year bonds. Price—To be not less favorable to
company than a 3.%'% basis.
Proceeds—To redeem at
•
expire
York, Inc.
stockholders
shares.
1983.
it
12
;
River, N. J. (5/14)]
scription by its Stockholders of record May 1, 1954, an
additional 3,000 shares of capital stock (par $10) on the
basis of one new share for each 26 shares held; rights to
mon
15 it
Halsey, Stuart
Edison
announced
was
Commission to
•
Boston Edison Co.
"be determined
Putnam
April 22 directors announced stockholders will vote
Arkansas Power & Light Co.
yeb. 8 it
stock:
Co.; Chas. W. Scranton & Co., and Estabrook & Co.
privately.
Consumers Power Co.
stock from 4,000,000
company
common
Bonds may be placed
April 23
approved
common
Underwriters—For
stock.
these
Offering will probably be; made to
present stockholders. Proceeds—To subsidiaries for their
Inc.
$25,000,000.
••
American Natural Gas Co.
xnan
of
by competitive bidding. Probable bidders:
Halsey, Stuart &' Co. Inc.; Morgan Stanley & Co.
April
•'
••
Prospective Offerings
Teh.
loan
determined
shares.
■Co.
$40,000,000 of senior debentures
additional $40,000,000 of senior debentures later
in 1954. Proceeds—For construction expenses and to re¬
17
in
sell
and
an
and
April 20 filed 1,000,000 shares of common stock (par $1).
Price—$1.12 Va per share. Proceeds—For general cor¬
.
First National Bank of Toms
$2,500,000
Columbia Gas System, Inc.
March 5 it was announced that company plans early in
7 it was reported company plans to raise between
$10,000,000 and $20,000,000 in 1954 from sale of bonds
Wyton Oil & Gas Corp., Newcastle, Wyo.
®
announced company has
was
rado P. U. Commission for
Dec.
None.
of additional com.stockholders on a basis
not greater than one new share for each 12 shares held.
Proceeds—To pay off $2,000,000 of bank loans. Offering
—Expected not later than Oct. 1, 1954.
/
(par $10) to present
stock
mon
/
—
$55,000,000 first mortgage bonds to be used to build a
i.030 mile crude oil pipeline.
Underwriters — White,
Weld & Co. and Union Securities Corp., both of New
York.
Offering—Postponed indefinitely.
1954
Utilities Associates
Eastern
Jan
Central Hudson Gas
March 8 it
Thursday, May 6,
April 30 trustees authorized issuance
For
sell around the middle of 1954
Volunteer Natural Gas Co., Johnson City,
-due
•
Feb.
...
Allyn & Co., Inc. (jointly); White, Weld & Co.; Drexel
& Co. and Equitable Securities Corp.
(jointly); Harri¬
man, Ripley & Co., Inc.
Long Island Lighting Co.
April 20 it was announced company
to
issue
$20,000,000
mortgage
finance construction program.
termined
plans this year
bonds.
Proceeds — To
Underwriter—To be de¬
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; W. C. Langley & Co.; Blyth
& Co., Inc. and The First Boston Corp. (jointly); Smith,
Barney & Co.
,
yolume 179
Number 5322
...
The Commercial and Financial Chronicle
(2021)
Long Island Lighting Co.
April 20, Errol W. Doebler, President, announced com¬
pany
contemplates later this year to offer probably
about 700,000 shares of common stock to
holders, probably
For
on
common
one-for-eight basis.
a
stock¬
Proceeds—
construction.
new
Underwriters—May be Blyth &
Co. Inc., The First Boston Corp. and W. C.
Langley &
Co.
authorized
1,000,000
the
shares.
additional
stock
common
No
from
740,000 shares
plans to issue any
immediate
stock
have
been
announced.
to
of
Under¬
Merritt-Chapman & Scott Corp.
April 23 it was announced company plans to offer ad¬
common stock
(about 281,432 shares) to stock¬
ditional
holders of record June 25,
1954
on
one-for-five basis
a
<with an oversubscription privilege); rights, to expire
on July 19.
Proceeds—For expansion and working cap¬
construction program.
Underwriters—To be determined
fcy competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; White, Weld & Co.; Kidder,
Peabody & Co.
and Drexel & Co. (jointly); Kuhn, Loeb & Co. and Salo¬
mon Bros. & Hutzler (jointly).
Montana-Dakota Utilities Co.
and
(6/9)
April 30, company announced it will file with the SEC
and the Pennsylvania P. U.
Commission, within the next
weeks, registration statements covering a proposed
offering of approximately 900,000 shares of common
few
stock to
common
the basis of
one
stockholders of record June 7,
1954, on
new share for each 12 shares held
(but
dividend preference
common
Underwriters
—
Drexel
&
stock).
and
384,860 shares of Westpan Hydrocarbon Co.
Underwriter—Union Securities Corp., New
York,
underwrote recent sale of Sinclair's
holdings of Colorado
Interstate Gas Co. stock.
reported that company plans to issue
was
sell
late this year some additional first
mortgage
Proceeds—To repay bank loans and for new con¬
struction. Underwriter—To be determined
by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc., White, Weld & Co. and Merrill
ILynch, Pierce, Fenner & Beane (jointly); Blair, Rollins
«& Co. Inc.
National Fuel Gas Co.
April 1 it was reported company plans to offer about
400,000 shares of capital stock (no par) for subscription
fby stockholders later this year or early next year, sub¬
ject to approval on April 29 of a proposal to increase the
shares.
capital
stock from
4,000,000 to 6,000,000
Proceeds—For new construction. Underwriter—
Dillon, Read & Co., New York, handled secondary offer¬
ing in 1943.
April 29 it
on
announced
was
stockholders
common
stock
Fall
to
additional
Proceeds
of subsidiaries.
program
plans
company
next
1-for-10 basis.
a
For
—
Underwriters
—
offer
to
common
construction
To be
deter-
rmined
by competitive bidding. Probable bidder/s: Blyth
Co., Inc., Lehman Brothers and Bear, Stearns & Co.
ijointly); Carl M. Loeb, Rhoades & Co., Ladenburg,
Thalmann &
Co. and Wertheim & Co.
(jointly); Merrill
/Lynch, Pierce, Fenner & Beane, Kidder, Peabody & Co.
and White, Weld & Co.
(jointly).
New
Dec.
16
Jersey Power & Light Co.
it
reported this company tentatively plans
Sssue and sale in 1954 of about
$3,000,000 first mortgage
honds due 1984. Proceeds—To
repay bank loans and for
snew
was
construction.
Underwriters—To
be
determined
•competitive
by
bidding. Probable bidders: Halsey, Stuart
Co. Inc.; Kuhn, Loeb & Co. and
Lehman Brothers
<jointly); Equitable Securities Corp.; Union Securities
-Corp. and White, Weld &' Co. (jointly); Merrill
Lynch,
SPierce, Fenner & Beane.
New
2?eb.
Orleans
it
8
Public
Service
Inc.
was
reported company plans to offer for sale
:$6,000,000 of first mortgage bonds due 1984 late this
:year.
Underwriters—To be determined
by competitive
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;
"Equitable Securities Corp.; Union Securities Corp. and
/Harriman Ripley & Co. Inc.
(jointly); Lehman Brothers:
Kidder, Peabody & Co. and Stone & Webster Securities
'Corp. (jointly); The First Boston Corp.; White, Weld &
•Co.
1954
temporary bank
loans, with permanent financing delayed until later in
the year. Previously, the
company had planned to float
an
issue of $15,000,000 first
mortgage bonds, due 1984,
early in 1954. Underwriters—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc., Kuhn, Loeb & Co.; The First Boston Corp.; Harris,
Hall & Co. Inc.; Harriman
Ripley Si Co., Inc. and Union
Securities Corp.
(jointly); Lehman Brothers; Kidder,
Peabody & Co.; Blyth & Co., Inc. and Smith, Barney &
Co. (jointly).
Public
Service Co.
13
Northern Natural Gas Co.
"Nebraska
announced company
was
Railway
Z365,400 shares of
holders
shares
the
on
Commission
common
basis
held with sale
of
stock
one
be
offered to stock¬
share
new
scheduled
has applied to the
authority to issue
for
to
for
each
nine
for
May or June.
It
thereafter expects to market
$24,000,000 of sinking fund
-debentures
due
1974.
Proceeds—For
construction
pro¬
Underwriter—Probably Blyth & Co., Inc., New
"York and San Francisco.
was
of New
announced
Hampshire
that
stockholders
Eeb. 8 it
was
sand sale of
(Minn.)
and
excess of 75,000 shares.
Proceeds—To re¬
outstanding 50,000 shares of 5.40% preferred stock
for
construction.
Underwriter—If through
competitive bidding, bidders may include Kidder, Pea¬
body & Co. and Blyth & Co., Inc. (who made the only
bid in June, 1952, for the 5.40%
issue, which was re¬
jected); R. W. Pressprich & Co. and Spencer Trask &
Co. (who were awarded that issue in July,
1952, on a
new
$8,000,000 bonds were also sold last year at competitive
bidding, with the following making bids: Halsey, Stuart
& Co. Inc.; Equitable Securities
Corp.; Kuhn, Loeb &
Co.; Stone & Webster Securities Corp.; The First Boston
Corp. and Salomon Bros. & Hutzler (jointly); Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Beane.
St. Joseph
Light & Power Co.
A. Semrad, President, announced that the
raise new money this year through the
sale of $1,000,000 first mortgage bonds or from
tempo¬
rary bank loans for its 1954 construction program/which,
March 30, C.
may
it is
estimated, will cost $1,661,000. Underwriters—May
by competitive bidding.
Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; Smith, Barney & Co.,
and Glore, Forgan & Co.
(jointly); Union Securities
Corp.; White, Weld & Co.; Equitable Securities Corp.
determined
it San Diego Gas & Electric Co.
in
1954
it
was
reported company is planning the issuance
Underwriters
—
To
reported
company
plans to offer late
(probably first to stockholders) 800,000 shares of
common stock.
Underwriter
Blyth & Co.,
bidding. Probable bid¬
Halsey, Stuart & Co. Inc.; Lehman Brothers and
Riter & Co.
(jointly); Smith, Barney & Co.; Glore,
IForgan & Co.; Merrill Lynch, Pierce, Fenner &
Beane,
Kidder, Peabody & Co. and White, Weld & Co.
(jointly);
Equitable Securities Corp. and Union Securities
Corp.
<jointly); Kuhn, Loeb & Co., A. C. Allyn & Co. Inc. and
ders:
"Wertheim
&
Co.
(jointly).
\
Ogden Corp., New York
-April 1 stockholders approved
•debentures
^$50)
and
and
of
300,000 shares of preferred
increased
the
authorized
stock
(par
stock
from
com¬
common
plete certain acquisitions and to repay short-term bor:
rowings. Underwriter—May be Allen & Co., New York.
.April
14 it
Pipe Line Co.
was
announced
'the
(Canada)
has been granted
build a 72-mile pipe
company
right to obtain a permit to
Iline to transport crude oil from the Pembina Oil Field
iin Alberta to Edmonton.
Financing will be handled
.
jointly by Mannix Ltd. of Calgary, Dome Exploration
•^Western) Ltd* of Toronto, and Carl M. Loeb, Rhoades
•
& Co. of New York.
27
creased
stockholders
the
10,000,000
authorized
shares
and
approved
common
the
proposals
stock
authorized
from
which
in¬
5,000,000 to
indebtedness
of
the
Ripley
Bids—Expected to
&
be
8.
(O.
A.)
r
Corp., Wichita, Kan.
some
financing
Business—Air
!
vj
new
construction. Underwriters—To be
determined by
competitive bidding. Probable bidders:
Halsey, Stuart &
Co. Inc.; Stone & Webster
Securities Corp. and White.
Texas
(jointly).
April
the
Eastern Transmission
27
stockholders
authorized
&
Co.
approved
common
10,000,000 shares
stock
(par $7).
Corp.
a
from
proposal
increasing
7,500,000 shares to
Underwriter—Dillon, Read
Inc., New York.
it Texas International Sulphur Co.,
Houston, Texas
April 28 it was reported company plans to do some
ad&P,
tional financing in the near future.
Underwriter—May¬
be Vickers
Brothers, New York.
Toledo
Co.
:.v
April 20 stockholders voted to increase the authorizedcumulative preferred stock from 300,000 shares to
500,000
shares. The company does not
plan to do any financing at
present. Underwriters—The First
Boston
Corp., New
York, and Collin, Norton & Co., Toledo, Ohio.
"
Edison
■
Trans-Canada Pipe Lines, Ltd.
,
/
March 26 it
was annouced that the cost of
the building
of the proposed cross-Canada
gas pipeline would be ap¬
proximately $292,000,000, which
would
be
financed:
through the issuance of about $36,500,000 each of com¬
mon stock and
debentures and $219,000,000 of first mort¬
gage bonds. Underwriters—Lehman Brothers and
Wood*
Gundy & Co., Inc., both of New York.
..
.
to
do
reported company plans later this year
was
some
permanent
financing to repay temporary
loans necessary to pay for newT
construction esti¬
mated to cost about
$11,000,000 for 1954. Underwriters—
bank
White, Weld & Co. and
Corp., both of New York.
Stone
&
Webster
Securities
Tri-Continentai Corp.
March 30 stockholders voted to
of
reclassify 500,000 shares
presently authorized but unissued $6 cumulative
pre¬
ferred stock, without par
value, into 1 j)00,000 shares of a
new
class of preferred
stock,
possible
a
$50
par
value,
making
refunding of the outstanding
$6 preferred
appropriate time, when conditions warrant.
Underwriter—Union Securities Corp., New York.
stock at
•
an
Vanadium Corp. of America
(6/2)
April 20 it
was reported
company plans to issue and sell
$5,000,000 of convertible debentures. Proceeds—To re¬
pay bank loans and for working capital and
expansion.
Underwriter
—Kidder, Peabody^ &
Co.,. New
Registration—Expected in near future.
York.
West Coast Telephone Co.
April 13 stockholders voted to create an issue of
100,000
shares of $1.28 cumulative
preferred stock (par $25)
Proceeds—To repay bank loans and for
construction
program.
Underwriter—Blyth &
cisco, Calif.
Co.,
Inc.,
San- Fran¬
.
West Coast Transmission Co.
Oct. 14 it was announced that
company now plans to
issue $29,000,000 in
l-to-S^-year serial notes; $71,000,006
in
20-year, first mortgage bonds; and $24,440,000 in sub¬
ordinated
long-term debentures and 4.100,000 shares 01
to be sold to the
public.
Proceeds—To
finance construction of a natural
gas pipe line from tbe
common
stock
field to western
Washington and
Oregon. Underwriter—Eastman, Dillon &
Co., New York.
West Texas
March 8 it
$5,500,000
debentures,
ders:
in September, 1953, was underwritten by
Drexel & Co., Smith,
Barney & Co. and Merrill Lynch,
Pierce, Fenner & Beane.
Canada, Ltd.
29 it was announced
company intends to make an
initial public offering of its common shares in the United
States to realize at least $5,000,000.
,•
Southern New England Telephone Co.
March 26 it was reported company, in addition
issuance and sale of first
mortgage bonds. Underwriter—
Pierce, Fenner & Beane; Equitable Securities
Corp.;
Glore, Forgan & Co.; Kuhn, Loeb & Co. and Lehman
Brothers
Boston
Western Pacific RR. Co.
March
10
company
applied
to
the
ICC
for
exemption
competitive
debenture
would
standing,
Southern New England Telephone Co.
26 it was reported company plans issuance
(jointly); Kidder, Peabody & Co.; The First
Corp.
(par $25).
Underwriter—None.
by competitive bidding. Probable bid¬
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc. and
Bros.
&
Hutzler
(jointly); Merrill Lynch,
Salomon
from
to de¬
Utilities Co.
announced company plans to refund its
bank loan in the Spring of 1955
through the
was
To be determined
benture financing, plans to issue and sell to its stock¬
holders about $10,000,000 of additional common stock
March
Sand
Harriman
Tennessee Gas Transmission
Cov
Jan. 27 it was reported
company plans issuance and sale*
of $20,000,000 of debentures
in June and
$25,000,000 ot
first mortgage pipe line bonds in
July. Proceeds—For
company
from
$25,000,000 to $50,000,000.
The
company has
no
specific financing program.
Under¬
writers—Previous offering of $24,952,800 3% convertible
•
re¬
Canadian Peace River
Paper Co.
Jan.
$20,000,000
'•3,404,135 shares to 5,500,000 shares. Proceeds—To
Pembina
—
Scudder Fund of
\
issuance
Scott
April
(jointly);
circulating equipment, etc.
Light & Power Co.
April 1, Rockwell C. Tenney, Chairman of the Board, an¬
nounced that the 1954 construction
program, estimated
at $14,000,000, will require further
financing. Common
stock financing to stockholders in 1953 was underwritten
by Merrill Lynch, Pierce, Fenner & Beane. An issue of
28
Corp.
June
on
March 16 it
designed to
refund the company's long-term debt. Bidders may in¬
clude Halsey, Stuart & Co. Inc.; Lehman
Brothers; Stone
& Webster Securities Corp.
April
and
issue
Proceeds—To
construction. Underwriters
Transcontinental Gas Pipe Line
Corp.
Puget Sound Power & Light Co.
April 5 the directors approved a program
Rockland
(6/8)
Feb. 15 it was reported
company may do
later this year, either
public or private.
negotiated basis.
be
Securities
Sutton
to issue not in
Inc., San Francisco and New York.
approximately $20,000,000 of first mortgage
loonds due 1984 in October of 1954.
fee determined by competitive
vote
on
additional
Northern States Power Co.
will
increasing authorized preferred stock from
160,000 shares to 300,000 shares, of which it is planned
fund
new
Inc.; The First Boston Corp.
received
was
April 21 it
Co.
company plans to
Beane
Union
Co.
of Colorado
reported company plans to finance its
construction
program
through
company
"March 29 it
gram.
Service Co.
Electric
$10,000,000 first mortgage bonds.
Weld & Co.
Public
April 12 it
May
it New England Electric System
dts
&
announced
Price—
construction, etc.
Co., Philadelphia, Pa., and
Pioneer Natural Gas Co.
March 26, P. C. Spencer, President of Sinclair Oil
Corp.,
announced that Sinclair has under formulation
plans for
the disposal of its
holdings of 769,721 shares of Pioneer
stock
was
by competitive bidding.
Probable
bidders:
Halsey, Stuart & Co. Inc.; Equitable Securities
Corp.; Lehman Brothers; Blyth &
Co., Inc.; Kuhn, Loeb
& Co.; Merrill
Lynch, Pierce, Fenner &
new
Morgan Stanley & Co., New York.
foonds.
authorized
Gas
fund bank loans and for
—To be determined
stock.
it
Southwestern
sell
To be named later. Proceeds—For
Dec. 16 it was reported company may sell in 1954 about
$3,500,000 first mortgage bonds due 1984. Proceeds—For
17
•
March 8 it
writers—Harriman Ripley & Co. Inc., and
Smith, Barney
& Co., New York.
not the $1
Underwriter—None.
Metropolitan Edison Co.
March
Pierce, Fenner & Beane; White, Weld & Co.
and Kidded
Peabody & Co. (jointly); Morgan Stanley & Co.
Offering
—Expected in ivlay OV June.
it Philadelphia Electric Co.
(jointly).
ital.
Pennsylvania Glass Sand Corp.
^,,Vi
April 27 stockholders approved a proposal to increase
the
41
,
be
preferred
bidding on its proposed $22,500,000
30-year 5% income securities,
offered in exchange for 225,000 of
$100 par
issue.
The
stock, of the more than 300,000 shares out¬
The company plans to offer $100 of deben¬
tures, one-fifth of
and
sale of about $15,000,000 debentures. If competitive bid¬
ders may include Halsey, Stuart & Co.
Inc.; Lehman
Brothers and Salomon Bros. & Hutzler
(jointly); Kuhn,
Loeb & Co.; The First Boston
Corp.; Merrill Lynch,
mined
a share of
common, and an undeter¬
cash payment for each share of
preferred stock
and then redeem the then
shares of preferred stock.
remaining outstanding 83,211.
Westpan Hydrocarbon Co.
See Pioneer Natural Gas Co. above.
^
i
.
.
.
.»
t
42
The Commercial and Financial Chronicle...
(2022)
Continued from page
credit transactions between coun¬
5
The Outlook for German
the
on
re-
Republic
Federal
the
of
sources
drain
than is entailed
much larger even
supporting the distressed area
in
Berlin.
of West
capital transactions just as
as,
during the many
decades of peace before the First
smoothly
gap"
"The
"dollar
fact
the
from
arises
of
is
trouble
that
which
dollars
payments
of
ances
settled
the
before
deficit
trade
so
that
covered.
nearly all
how bal-
countries have forgotten
publicized
amounts
the
automatically
was
Dollar Gap
much
War, every
World
j
The
an
World
First
War, in spite of the fact that no-
body ever even calculated the
immense deficits on some balances
of trade."
"Many people think that one
must restore a freely fluctuating
exchange rate, so that there shall
countries on buying dollar goods,
be
'automatic'
s e 111 e m e n t,"
It
is felt
here that purchasing Sturzel continued. "But under the
power theory can be applied to
gold standard system there were
the international situation. It apnot as a rule freely fluctuating
pears; that Western
Germany exchange
rates. The real mawould be delighted if the Americhinery which ensured that balcans were to say: "Let us simplify
ances of payments were settled
and ease our customs regulations, was
that of international credit
Then we shall be spending more transactions and interest arbitrage,
dollars
on
buying
from
other If that system is again allowed to
countries;
those countries
will operate—and we have just shown
then be able to buy more from us, how it works—there will be no
*rfhd we shall sell more."
need for either import restrictions
It is contended in some quarters
here that if American tariffs were
lowered,
free
the
between
here would have to be somewhat
be
Bank for Reconstruction and De-
velopment
give
would
certain
Americans
which
sums
full
in
freedom wished to invest in non¬
dollar countries, the
free and unstable exchange
--ey after bad," Sturzel
rates. If however short-term concluded.
the
ing
Western
not
Germany, could at
proceed to make their cur-
once
rencies freely
exchangeable.
Freedom
Capital Transactions
The Germans
are
pursuing with
objective 'of
freeing short-term and long-term
special
interest
the
credit transactions.
ters
have
stage
never
Hitherto mat-
beyond the
gone
of
recommending to Govthat they refrain from
inflationary policy. In many
ernments
an
however,
cases
"moral
of
this
instrument
recommendations"
has
turned out to be blunt.
interpstinfr
Onp
is
that
it
n
e
r
i t
m
would
re
Banks
orortit
short-
without
this
hprp
to
Central
both
at
5longer-term
that
better
intprnntinnai
transactions
and
be
individual
quire
to
would
vipwnnint
restrictions,
work
better
before all the returns are in, tend it also had an even larger supto persist even though they may port from the civilian side of the
be only partly valid.
economy.
That is true of the
It may be that something of period after Korea as well as
this kind has characterized the before. From 1949 through, 1952
the
ment of recent months. The theme
penditures
investment,
somewhat
run
'
depression.
It
unlikely
is
•
,
the
in
an
of
<
,
words
economist
the
interview
of
-
H.
Sturzel,
Berliner
with
the
Bank,
writer
consumer
ex-
private domestic
taken together, in-
and
do
in the
started
8
of *5th
a"d S
other
mvf'ment f" glant, and
equipment during the 8 post-war
S3,8,™ a.
average c2""
i
should
amount, perhaps
In
war.
of house building
"eS®
^
^31
years
^upsi"e!sea has been about twice as fast Busi-
,
^
post-war
started in the 17 years
were
^ereexcesses,conspicuous specuia- preceding rate
are n0 and the high level words, the the
"ve
giadually stant dollar rate
back
Tbe theme has gone
that after a decline of
View
German
to
because, among other things, than
s0
bring inventories
A
these
along
annual rate of
lines.
The 1950-53 boom, based creased nearly twice as much as
primarily on expanding defense government outlays increased. In
outlays, began to turn around in other words, it was a period durthe middle of last year with a de- ing which all sectors of the econcline in the defense program. The omy were expanding, and in this
overall business contraction, it is expansion most war-induced civilsaid, has taken the form primarily ian and business shortages were
of an inventory adjustment. So eliminated. Motor car registrafar, it has not fed on itself in the tions increased some 70 per cent
sense of developing the cumula- from the end of the war through
tive characteristics of a serious 1953. More new houses have been
maintained,
tions"
in
of
up
into
line,
times
larger
than
to state ore-war period.
some minor this investment
or
8 per
cent in the gross national product,
the stage should be set for the re-
the
under
much
of
available
True,
part of
was
undertaken
defense program,1 but
on
to 7
more than
in the similar
it
is
for
a
nevertheless
civilian
now
production.
i£rne- 'The imposition on Central sumption of better times. The
nation
ls aHnnaSl ™" turn-around it has been generally
.1
ml riL thlm
to
ifranl
orpri'it
m
forJ*n£
th? 1™ lit™
a"yti°ZeJ8Zr ?H1e they grant
those
which
anV
™
as
on
credit
to
their
own
their
own
nationals and
Government.
Then
AU of this activity in the civil_
ian sector of the economy during
eX-5!£ted' should occur m the the post-war boom is reflected in
mld.dle °r
part °f ,he 5,"1" what happened to private debt.
Z?^' J1e
anticipated
of
as
the
forward
up;,tur",
is generally thought
beginning of a new move
to
new
heights of
Corporate debt has increased
more
J}, £ 100S'Mortgagedebt"on
ban
dwGlline<5
hHincreased
from
this
Sniionandconsume?debUs
country; and this would depress the exchange value of the
currency in which credit was too
easy.
Central Banks that wished
of thinking of recent months.
It
Expanding defense outlays after
is an opinion still widely held. 1950 may have been
a prime
Certainly, there is some support mover that kept the boom in full
for this position in the data of bloom, but the results of the boom
current business. Yet the theme —and this is the important thing
is based on a number of presump- in terms of appraising the future
tions
that
perhaps
should
be —has been
substantial progress
looked at more closely before the toward both replenishment and
thesis can be accepted without expansion of resources now held
to
qualification.
Bank
with
rency
cheap
Central
credit; they would appear
large amounts of the curof the country in question
and demand the currency of their
own
avoid
such
exchange
worsening of their
would
high
rates
with
an
of
have
interest
to
charge
of trade
would in fact have to make their
rate
of
interest
so
high
that
it
would pay
foreigners to put their
money there. The result would be
that
the
covered
trade
by
the
deficit
A
would
surplus
on
be
net
by both consumers ahd business,
The Productive and personal re-
.
A Civilian Boom
Countries
adverse balance
with
have.
we
decline
in
The
first
I
presumption that
•
sources
re,
A
ha™
of
our
customers
abroad
likewia?bfn expanded,
now their un-
Wlth the result that
quires a second Iook 1S a historical satisfied demand may not be
one' The high P°st-war prosperity large as formerly,
*bat
continued
into. the
early
These
are
conclusions that
as
given
induced motivation behind it.
contrary to popular belief, it was
But
credence by
the
fact that,
bilizing,
Yet,
the
markets
It
slowdown
a
The
in the rate
direction
of
in¬
ventory change has been reversed.
Yet, there is danger of misin¬
terpreting the present situation if
the other components of the gross
national product are not closely
analyzed. Total construction has
stayed high, but it has not in¬
creased
that
crease
boom
'same
the
at
of
the
rate
of*in-
characterized
earlier
1950's.
equipment
the
have
likewise re¬
high levels, but
again the stimulation of expan¬
sion has been missing.
The same
stable
at
holds true for personal
loans
consump¬
expenditures during the past
year.
In other words, the data
to indicate that the nation's
have
may
economy
tem¬
passed
porarily from a postwar period
of replenishment and expansion,
to a period that could last another
two,
during which re¬
placement may provide the prin¬
cipal source of new demand.
year
or
This
mean
would
weaker,
but
chasing
question
a
has
in
plicity
to
who
sent
ment to
This
business.
that when
does
been
repre¬
move¬
has
that
Opinion
is
beginning to veer to earlier dates.
Perhaps the turn-around has al¬
ready begun.
nine
We have had more
of
decline,
light of past expe¬
months
which
in
the
rience
is
about
of
leads
evidence
vival
that
less
rallies.
is
some
be
sure,
encouraging,
around may
or
so
ago.
are
more
provement
of
merely
a
present
period
think
to
would
be
realistic
;
at
nice
worries
that
are
they
will
but that, is
shortly be behind us,
perhaps premature.
It
more
to be
out
stability
our
or
re¬
im¬
an
months'
turn
of
It
that
us,
than
several
levels.
behind
incipient
It could
duration.
be
may
to regard
the
pres¬
ent prospect of improvement as a
period of rally in a longer period
of slack activity. If we are wrong,
much
so
the
better.
'
and
out
business
as
assets
depreciated, and as the curve
family
formation,
which : is
are
of
begins to increase a
hence, new and dy¬
of strength will re¬
low,
now
few
years
namic
sources
in the economy. It looks
may get a clustering of
appear
like
we
products in the years ahead
also.
In
the
meanwhile, unless
new
there is
major change in inter¬
a
affairs
national
domestic
in
or
government policy, we may hqve
than
less
thing
boom.
with
ourselves
content
to
some¬
full-blown
a
1
This raises
a
final question re¬
the presumption in the
present business discussion,
namely, that government action,
garding
if
wishes
Administration
the
take it,
'
/
y
been built
in the public mind, too great
there
Perhaps
up
a
to
might be effective in mak¬
ing the situation better.
has
in
the
confidence
efficacy
of
government
action.
There
are
only a few things that can be
done: the adoption
of easier
credit policies, the
subsidy for various
kinds of activities, and the stimu¬
lation of an inflationary position
and
provision of
money
government
deliberate
Such
deficits
curred either by
be in¬
can
increased expen¬
including public works,
reductions, including
designed to stimulate con¬
and business expenditures.
ditures,
by
or
those
sumer
tax
An
each
in
already
has
Something
done
of
been
categories.
these
policy was
with the
money
easy
coincident
adopted
of business
have been
made
income
and
taxes
the
evidence,
but
that
scat¬
neverthe¬
the
have started
a
turn¬
month
The automobile people
expecting
a
strengthen
better second
than their first. Appli¬
cations for jobless-.pay have de¬
clined in many localities during
both in personal
excise
and
profits
excess
taxes,
tax
has
There has not been .an
overall expansion of public works
expenditures, but states and mu¬
nicipalities have, with the encour¬
lapsed.
agement of the Federal Govern¬
ment, offset federal
reductions.
ness,
have felt their market
quarter
the
be
will
thorities.
as
business
either persistently up
sinking spells, or down
to
Only
coming of spring there
seems to be a better feeling.
Yet,
unfortunately,
when
we
look
closely for elements of sustaining
strength, there is no convincing
without
There
eco¬
find¬
are
With the
pansion
tered
series
mys-f
in
Temporary Improvement
markets go
without
lags
ing more signs of revival begining to appear.
Plans
of
and
indicator
long as a di¬
change lasts
without interruption.
Seldom do
rection
those
down-turn
presumption
examination.
than
expe¬
usually
activity in
of
last
mid-summer, or the middle
year.
The
fall of this year. iterms of mortgage lending have
that this timing is been further relaxed. Reductions
another
needs
better
the
be
may
a
was
first.
in
placed
still
is
heights of prosperity.
new
is
Even
than
the
working with the
are
nomic
turn¬
it will
turn-around
perhaps in
It
the
sustained
come,
and
new
a
in
deficits.
implicitly or exfamiliar j theme of
the
the effect
around
does
about
comment
It
unseasonably
expects
quarter
rienced
through
third presumption that
appeared
Agents
second
growing
bring into
economy
it
for
Scrap
firmer.
expand
may
necessarily
not
weak
a
sta¬
in the second quarter of the year.
The National Association of Pur¬
tion
seem
bit.
a
been
steel,
of
held
are
anticipated that commercial bank
Ex¬
penditures for producer's durable
mained
have
of
signs
hopes
improving
even
wear
change.,
exhibits
and
the
showed
rate
As the present stocks of usable
activity'
these three articles in the hands of consumers
during
matter of
and
are
1950's certainly had a lot of war-
operations
its
though
even
The
total
played an important
always does—perhaps the
dominant role.
It is not just a
It
pros-
m
take
data
ur-
they could no longer follow a perity engendered by the needs
Trad
inTintinnnrv
rvrviipv
Tf
+Vioxr
ovmn^inrr
ndnuinimn
pillion, anct consumer debt is more
more
bad, inflationary policy
If they of an expanding population.
th
, ..
,
,,
,
did grant credit too cheaply, it
These appear to be the essential ;Pa" „J "2.if®_eat
is said, then foreigners would at features of the dominant
pattern
once
ended
course
of
and
than all the "moral recommenda-
that
The behavior of inventories has
On the Economic Front?
has
International
of
months
February, 1954, which is the most
role.
dominant theme of business comFull
three
continued
to
for
ing tends to bear out this assign¬
ment
of aJ primary role
to in¬
ventory adjustment.
Yet, it is
gradual
What's Ahead for Business
The
need
whatever
Decline
months.
"dollar
United States would
provide any money
aid schemes; and
non-dollar countries, includ-
gap."
Inventory
an
recent
Continued from first page
result would
of all
termination
the
be
kinds
long-term investments. That, and not the direct interesting to note that business
subsidizing of balance of pay- inventories, which did not reach
ments deficits, is in our view the their peak until October of 1953
proper task for institutions such —more than a quarter of a year
as
the
International
Monetary after the down-turn in total busi¬
Fund or International Bank. Only ness began—are now but $2 bil¬
too often the provision of direct lion less than that record level.
subsidies for unsound balances of Moreover, there was no decline in
payments simply means throwing business inventories during the
guarantees for
the total
greater than
all
months,
latest figures again
increase.
teries
Not
an
now
the U. S. A. would on the average
never
of
American
The second presumption in the
who invests in German bonds can
earn more than 7% interest. The familiar theme of business analy¬
sis that warrants a closer look is
30% German capital yield tax,
which in Germany is deducted at the notion that, so far as the ci¬
vilian sector of the economy is
source, is at once repaid to a foreign holder on application. Too concerned, the decline since midgreat a difference between the 1953 has been an inventory de¬
The
interest levels could be avoided if cline and very little else.
in such cases the International gross national product account¬
Even
that in the long run
so
export surpluses achieved by
instrumentalities
peoples. Western Germany might actually increased in each succes¬
sive quarter of 1953, reaching a
have to offer a risk premium to
peak in the last quarter.
Total
foreign investors,
because forgovernment
outlays
will
show
eigners may think that our nearvery little change in the current
ness to Russia
makes the risks
year from the peace-time record
here higher than anywhere else
of last year—perhaps a reduction
in
the world.
That would
of
of less than $1 billion.
course mean that the interest rate
fact higher.
in
were
everybody in America applies (a)
to buying in other countries, or
(b) to voluntary employment in
other countries, are less than the
amounts
which people in other
countries want to spend in dollar
the
recent
very
conditions
Currency Convertibility
a
decline in total government
a
controls, no alterations
Spending for national
of
exchange
rates,
no
'moral activity.
recommendations'
and
no
aid security has declined slightly, but
overall spending by government
funds will restore sound monetary
no
constituting
not
continue to be blocked, then loutlays that initiated the recent
contraction
in
overall
business
official
tries
.Thursday, May 6, 1954
afoot
are
by
for
state
The
further
ex¬
local
au¬
and
.
behavior
of
busi¬
however, has not shown any
precise chronological relationship
these
to
various
moves.
It may be
tion
to
involve
that government ac¬
be really effective would
measures
so
drastic
that
they would be incompatible with
the
philosophy
political
of
the
present Administration. In the cir¬
cumstances,
able
that
it
the
seems
course
more
of
prob¬
business
Number 5322
Volume 179
more
i
several
next
the
for
The Commercial and Financial Chronicle
...
funds accumulate,
will
years
Government
Should
measures.
things in the basic money
market as indicated by the opera¬
tions of the Treasury and the Fed¬
^
eral
been
has
debate
whether
to
as
action
the
Fed¬
to
induce
a
full
utilization
of
-resources
larly
the
of
ment
Others
formula
for
need
of
action
other.
all
of
the
production, particu¬
is prima facie evi¬
labor,
dence.
of
condemns
or
that
the
an¬
such
nation
a
to
inflation in
perpetuity, and in the
long run cannot fail to have a
debilitating effect upon our po¬
Things
in
Proponents
•
'have
govern-
more
point out that we
only a domestic obliga¬
not
tion
to
but
as
-
of
action
ment
maintain
the
the
week
least
issues
new
lagging recently.
Pension
fund
buyers,
those
for
several
from
pack
and
couple
n.s
debt
broke
buyers of
as
interest
these
parties in Com¬
Edison's
monwealth
first
gage bonds, a triple A
this week
Electric
3
cent
"When
years,
catches
cold,
in
Sam
Uncle
England
re¬
West-
and
a
on
Power
Electric
often
issue,
they snapped
Cleveland*
with
familiar
so
Co.'s
fering
double
more
yield
to
Co.'s
Again
Illuminating
priced
2.95%,
buying from these
wealth
ment
for
action
point out that we
have been in a contracting phase
of activity for some nine months
and contrary to
popular expec¬
tations,
England
and
Western
Europe have been getting more
gold and dollar exchange —not
pneumonia.
The western world
is
closer
now
nomic
to
balanced
a
viability
the
to
To
for
reof-
In
ing
Edison's
was
formed
off,
was
it
calculated
was
other
and
that
legal fees
soaked
expenses
underwriter
of
And,
of
around
With the brisk flow of
market| conditions and
been
total
$5,000
At
came
smallest
corporate
to
the
arouse
est
when
wound
=
bond
in
two
and
large
national subsidy than at any time
the war.
Th^ question is
and Trust Company have de¬
a dividend of 30 cents
clared
whether"
of
raised
sCHib*
slack in the economies of nations
be
not
may
necessary
NO.
58
Smelting Co., Limited
one
dollar ($1.00)
DIVIDEND NOTICE
per share has been de¬
the Capital Stock of this
on
shareholders
of business
offering
of
record
at
The
declored
a
dividend
of thirty (30) cents
May 14, 1954.'
on
the-flexibility
mobility that
and
underlies
justments
By and
economic
essential
among
large
share
per
to
seems
me
the
bidders
Secretary
action
TULSA, OKLAHOMA
NOTICES
:,'
Pittsburgh
LIMITED
:
>
April
,
1954
26,
of the Board of Directors of
Dome Mines Limited, held this day, a dividend
of Seventeen and One-Half Cents <1?V2C)
per
meeting
a
share
able
(in
30,
close
the
at
Canadian
July
on
of
Funds)
declared
was
pay¬
to shareholders of record
business on June 30, 1954.
1954,
ending
share
June
Also
1,
30,
and
1954
declared
has
DIVIDEND
PER CENT
PREFERRED
STOCK,
to shareholders of record
1954
(iy2%)
declared
a
DIVIDEND
of
for
of
quarter
ONii
FIFTY
€sso
CENTS
share on COMMON STOCK, payable
1954 to shareholders of record May 10,
G.
auu
$1.50 pel
payable July
July 6, 1954.
or
on
20, 1954
per
29,
Directors
MICHEL,
W.
President
,
of
ONE-HALF
147
NO.
DIVIDEND
Board
Pennsylvania
•
April
.
MINES
DOME
June
1954.
STANDARD
CRONMILLER, JR.
President and Secretary
Vice
The
Treasurer.
Stock
has
share
been
de¬
1954 to stock¬
holders of record at the close of business
May 25, 1954.
the price of a growdynamic business world
is occasional adjustment to bring
that
A dividend of 25
of
record
the
at
cents per
close
of
business
on
June 1, 1954.
Fine
shire
of
share
a
at
25
of
CHACE,
G.
meeting
JR.
the
assignment of productivje re¬
into alignment with the
pattern of wants, and to spur the
achievement of greater efficiency
E.
on
declared
1954.
a
28th,
April
is
if: the
price to be
achieve,
a
.
THE FLINTK0TE COMPANY
NEW YORK 20,
30 ROCKEFELLER
LIMITED
ALUMINIUM
N. Y.
PLAZA
DIVIDEND
A quarterly dividend
NOTICE
been
has
share
throughout
perity
r„
the |
western
world—then the price in this case
would have been
A
BRIDGEPORT,
Conn.
—
114
S. currency
par
holders
per
declared
was
of business
share in
on
June
of
5,
at
the
close
Common
10,
on
per
the Common Stock, par
Stock
1954
PEPPERELL
MANUFACTURING
COMPANY
fPABklCSl
Boston, April SO, 1951*
of
close
close
payable June
business
to
stockholders
of
record
May 28, 1954.
A quarterly dividend of $1.06J4
§er share on thedeclared payable
tock has been
4Vx % Preferred
July 1, 1954 to stockholders of
record May 28, 1954.
Johns Hopkins, Treasurer
DIVIDEND NOTICE
A
regular quarterly dividend of Seventy-five
Cents (75^) per share has been declared pay¬
able May 15, 1954, to stockholders of record at
the close of business May 8,1954.
Checks will be mailed by the
May
Philadelphia, May 3, 1954
Old Colony
Trust
Company of Boston, Dividend Disburs¬
ing Agents.
Paul E. Crocker, Secretary
27,
5ERB0RRD
FINANCE
COMPANY
1954.
CLIFTON W. GREGG,
Harold
Associates,
OPPMLD
1954, to stockholders of record
the
at
of
10, 1954.
N
JAMES A. DULLEA
Montreal
of record at the
June 1, 1954.
quarterly dividend of $.50 per
share
has
been declared
on
the
1954, to share¬
record
Preferred
A
th6
value shares of this Company
business May
Adams has been added to the staff
of Norman F. Dacey &
of fifty cents
U.
payable
(Special, to The Financial Chronicle)
quarterly dividend of 45c
the
on
payable June 15, 1954 to
stockholders
April 29, 1954, a quarterly
On
no
a,modest one.
With Norman F, Dacey
•
'
dividend
of $1.00 per
declared
$4 Cumulative
Stock
higher levels of pros¬
sion to still
NOTICE
DIVIDEND
Vice President & Treasurer
I 4.1
resumed expan¬
a
Company
value $13.50 per share, has been
declared payable June 30,
two, hence
year or
basis for
new
York 20, N. Y.
Paul E. Shkoads
'
a
on
1954.
Improvement
per
share
should get no
worse, or only slightly worse than
it has so far—and if indeed
it
can
record
holders of record May 26, 1954.
But
sure.
10,
of
of business
The United Gas
share on
the capital stock, which will be
payable June 11, 1954, to stock¬
KING
Vice President and Treasurer
adjustment
a
close
a
1954,
on
There
the
quarterly dividend of
seventy-five cents
SANITARY CORPORATION
JOHN
April
Dividend
The Board of Directors at
President.
JLJUUULOJLOJULJlJLfiJULILkJOc_>o<_.
April 29,
on
June 11, 1954,
on
stockholders
30 Rockefeller Plaza, New
payable June 1, 1954 to stockholders
of record May 7, 1954.
MALCOLM
share
per
98th Consecutive
cents
Stock,
Common
a
capital stock of
1954. This dividend is
May
Inc.
Associates,
dividend
the
on
inc
of the Berk¬
Directors
Spinning
declared
has
associates
AMERICAN RADIATOR & STANDARD
and
the part of individual business
operations.
It may be that we
are
experiencing just that kind
of
an
adjustment
at
present.
Board
The
sources
-
spinning
jersey)
of Directors
the
on
payable
per
payable June 24, 1954 to stockholders
long been recognized among economists
Preferred
new
in
Board
29,
fine
It has
case.
•
ing
the
on
clared, payable June 1,
COMPANY
OIL
(incorporated
F.
to
share on
the Common Stock has been declared,
have much the better
CORPORATION
OIL
SUNRAY
HARBISON-WALKER
j,as deciared
DIVIDEND
per
FORSTER
D.
W.
on
DIVIDEND
quarterly dividend of $1.75
Common
shareholders of record May 6
NOTICES
of additional
at this time
opponents
government
-
A
the
on
Stock, payable on June 19 to
J. F. McCARTHY, Treasurer.
/\MERiCiVN-c$taRdai'd
on
that
.
countries.
free
it
ad¬
on
April 16,
regular quarterly
directors,
to
close
the
$1.15
COMMON
President
NOTICES
Cash Dividend
permit
to
•
REFRACTORIES COMPANY
DIVIDEND
,
PREFERRED
second regu-
share designated
{>er quarter-annual dividend for 1954
as
ar
payable May 27, 1954 to stock¬
holders of record on, May 13, 1954.
since
even
NOTICE
Trustees of Title Guarantee
banking
Company, payable June 14, 1954,
Co.'s $6,000,000
Power
Company
DIVIDEND
date has
no
GUARANTEE
and Trust
brought identical bids of
CLIFFORD
DIVIDEND
TITLE
WILLIAM H. DEATLY
three
A Dividend of
week's
top
NOTICES
had been expected to
DIVIDEND
clared
"dead-heat"
a
subsidiary.
a
is¬
inter¬
without
ing Co.,
Hudson Bay Mining
respec¬
the
mort¬
oi
major share of inter¬
the
up
Montana
in
institutional
new
their initial try.
At
that
for
of general
bonds of Westchester Light¬
(Canadian)
remained
sufficient, according to in¬
sources,
to i exhaust the
appeared
least
syndicates
tively.
It
the
$25,000,000
gage
set.
$13,100 for legal fees, taxei
it was showi
and
and
calendar, Consolidated Edi¬
son
Co.'s
projected offering of
$50,000,000 of new bonds loomed
as
the major piece
of business
ahead for next week.
However,
it has been postponed because of
DIVIDEND
$7,150
to provide the issuer
ward
that the first mentioned two items
took
had
reaching market this week
cutting a deep swath in the for¬
other expenses,
and
were
one
was
91
around
estimated
an
bids
sues
bond.
a
substitute
on May 11.
with
redemption of $27,982,000 of first mortgage bonds of
the New York Steam Corp., re¬
cently absorbed into the system,
It
Consol. Ed's Offer Postponed
up
about $1.31 a bond, leaving net to
the
time
and
compete for this issue
funds for
DIVIDEND
Common¬
3s
new
buyers, who have been sitting on
their hands for weeks and letting
eco¬
it
noted that the spread between the
price paid to the issuer and that
fixed for reoffering figured out
about $2.21 a bond.
Against this
of bonds
supply in the "pot."
It
taxes,
instance
recent
the
again
43
had been lifted 1.5 cents to 102.276.
instances
some
counsel plus
than matched those fil¬
one
revival of attention and buy¬
a
in
hands
been raised five cents per $100 of
bonds to 102.31 while the other
the
of
must distribute the issue.
reflected
sources.
things
top
Fact
tering down to the bankers who
up
bond,
3% basis.
a
on
A
issue
new
Europe get pneumonia."
In
reply, opponents of more govern¬
-
net
about.
that
have
"
ern
extended several hours.
Breaking the Tie
a
all
actual
legal
basis.
%s,
brought out
are
mort¬
is
to
cents
change
about, it might be noted
week ago it was difficult
a
home
matter
the
came
new
heard
a
brought to
of
indication
Wisconsin
We
away
institutional
issues
in this country on our free neigh¬
cliche
notably
Tuesday.
on
an
that
to
in
came
of
market
that
states,
over-all
the
world,
the
the
fees
com¬
handling civil service funds
But
it is imperative to avoid
impact of business contraction
inclined
more
bors.
.
at
been
free
the
look at
a
found
ing to hand and those which had
2.98%
of
investors
the
,
market1 this
segments among insti¬
some
to take
brighter
look
to
underwriters
as
high prosperity,
leader
began
investment
tutional
litical
institutions,
as' well
as
-upon the mobility, flexibility and
-independence of business.
on some
that
write
govern¬
kind
one
insist
their
underwriter has not been much to
The
answers
to
this
question
will
-probably never be entirely satis¬
factory to proponents of either
side of the question. ;Some hold
the view that anything less than
•
thin
ex¬
pansion of business activity.
try
opened it developed that
operations go¬
ing through recently have been so
Spreads
eral Government should now take
(additional
Gravy
3Vs% coupon. There
a
was
When
Much
Not
considerable
$102,261 for
remained nothing for the company
to do but suggest that the bankers
Reserve.
Government Intervene?
There
have finally be¬
cognizance of the
take
trend of
independently—yet not
much influenced by Federal
entirely
too
to
gun
less go its own way, not
or
(2023)
Secretary
April 29,1954
IOWA SOUTHERN
Vice-President and Treasurer
COMMON STOCK DIVIDEND
May 5, 1954
UTILITIES COMPANY
State Street.
77th Consecutive
Quarterly Payment
The Board of Directors of Seaboard
Finance Co. declared
With Paine, Webber Co.|
(Special
HARTFORD, Conn.
Brewer
with
III
has
Paine,
Curtis,
terly dividend of 45
to The Financial Chronicle)
111
—
Common Stock
James F.
&
DIVIDEND NOTICE
CITIES SERVICE COMPANY
WANTED
The Board of Directors has declared the
PREFERRED
mer
19SS
employment.
Box
mercial
Park
&
declared
Columbia Graduate Busi¬
June
School
Financial
seeking
sum¬
R-429,
share
on
a
quarterly dividend of
one
its $10 par value Common
dollar ($1.00)
per
25
1954, to stockholders of record
May 13, 1954.
at
30
stock, payable June 7,
Com¬
Chronicle,
Place, New York 7.
44
Company has
cents per
share
on
the close of business
cents per
share
all
dividends payable June
1, 1954, to
stockholders of record May 14, 1954.
EDWARD L.
Secretary
($30 par)
its
Common Stock ($15 par)
•
F.RLE G. CHRISTIAN,
on
its
May 3. 1954
STOCK DIVIDENDS
The directors also declared regular
cents per
$1.76 C'onv. Preferred Stock
Marketing Student
ness
share on its
4%% Preferred«Stock ($30 par)
35%
Dividend Notice
The Board of Directors of Cities Service
Graduating
on
payable July 10,1954
stockholders of record June 17,
1954.
following regular quarterly dividends:
SITUATION
quar¬
share
to
become associated
Webber, Jackson
Pearl Street.
regular
a
cents a
quarterly dividends of 53
cents a share
$2.12 Convertible Preferred Stock,
$1,433/4 on the $5.75 Sinking
Fund Preferred Stock. All preferred
on
and
dividends
are
payable July 10,1954
to
stockholders of record June 17, 1954.
A. E.
SHUTTS,
WEIDMAN
Treasurer
President.
April 22, 1954
M
The Commercial and Financial Chronicle...
(2024)
BUSINESS BUZZ
U'-. "
Business
It
•
Capital
supports by
Un¬
they
are optional, and can be utilized
when, as, and if officials judge
too
not
ing
the new met-
frain from
vestment of Treasury funds
ie
This
new
program
-
all origi¬
Policy Committee, which
around for ways
and
of alleviating the alleg¬
the
"anti-cyclical
extension
,
take
to
necessary
of the
care
the
of
;
:
"new long-term mineral
stock¬
pile objectives." In other words,
with respect to 35 or 40 metals
and
in
support
is
that
program
the
Services
certain
is
broad
revealed
before
additional and
mate¬
rials from time to time.
the strategic stock¬
hitherto was confined to
Whereas
the specific objective of provid,
ing
minimum
a
and
scarce
needed in
f
quantity
of
strategic materials
case war
cut off these
supplies, the new objective will
be made primarily for the pur¬
activating
domestic
productive
capacity "and
in
other ways
to alleviate dis¬
of
pose
with
,
and
be
domestic
that
mineral
some
will
be
able
ascertain how much
ever
funds
on
indus¬
It is believed that the
to
a
The
House Committee
bill.
The
is
if
ex¬
flexible
transmitted
which
a
horse
he
to
on
had
sewn
he
rides
enthusiasm.
and
with zeal
This
is
the
ideological horse of a balanced
budget and sound money. This
particular horse seems to be
stumbling, but likewise in this
case,
Mr. Humphrey has not
props,
majority is highsupport minded.
cance
the proposed mandatory farm
price support amendment to the
the House
ficial announcement, which was
wool bill has been
sion of the
largely overlooked at the time,
[This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capitol
sized.
except in the trade.
The
Whereas under the traditional
stockpile
was
to
the
program,
acquire
a
object
minimum store
of such materials regardless of
where they could be obtained^
the new program is pitched at
acquiring these primarily from
"distressed" domestic industry.
Contracts With Farm Supports
There
are
some
notable
dif¬
ferences, however, between the
present
statutory
system
of
farm price supports and the
pro¬
jected metals support program
of
the
Eisenhower Adminis¬
tration.
of
the
Senate
defeat
of
over-empha¬
At present it appears as though
will
write
one
ver¬
and may or may not coincide with
the "Chronicle's"
legislation and the
own
views.}
proposed that
wool growers a
the
fered
amendment
in
was
This
the
Two With Walston Co.
(Special to The Financial Chronicle)
SAN
DIEGO, Calif.—Ralph
Thomas havebeen added to the staff of Walstora
Olson and George O.
&
Co*, 625 Broadway. Mr. Thomaspreviously with Davies & Co^
was
Joins Reynolds
defeat
as
a
has
been
victory
SAN MATEO,
Reynolds
&
Calif.—Francis R>.
Co.,
100
Benjamin.
Franklin Court.
WE WILL BUY
Adams
—
Building Trust
Barrington Court Apts, Inc.
Burlington Realty Company
1
Roosevelt Company
250 Beacon Street
Company
Warwick Company
Carl Marks
&
P.o. Inc.
the
FOREIGN
SECURITIES
SO BROAD STREET
♦
Worcester Building Trust
SPECIALISTS
NEW YORK 4, N. Y.
LERNER & CO.
a
supports.
Actually the entire Senate, it
TEL: HANOVER 2-0050
TELETYPE NY 1-971
.
Investment Securities
10 Post Office Square,
\
\
;
Little has become connected witha
inter¬
for
wavering, in the
opposition,
advocates of the high
or
Staff
(Special to The Financial Chronicle)
the
face of White House
of
& Beane.
Pelham Hall
White House drive for flexible
supports
Stock- Exchange. He was formerly
with" Merrill Lynch, Pierce, Fen—
Regent Company
of¬
Senate, and de¬
feated, proposing to continue
the mandatory price supports.
preted
Company, 300 Montgomery Street*,
of the San Francisco.
members
Oliver Building Trust
Congress pay
cash subsidy representing the
differences between prices re¬
ceived and the computed par¬
ity price.
It was to this bill
that
FRANCISCO, Calif-
Maryland Apartments, Inc.
bill
wool
?
-
fallen off.
the true
important elements of the nation's mobiliza¬
tion base," according to the ofare
Pa„
James W. Murphy has been addec®
to the staff of the First California*
ner
falls, its rider cannot
fairs which
with almost any¬
thing, for the Chairman, Senator
George Aiken (R., Vt.) cannot
command
a
majority of his
for
sent
George M. Humphrey,
the
Secretary of the Treasury, has a
favorite "horse" in public af¬
may come up
committee
even
perforce escape falling with it.
Committee
Senate
He
Contrary to some intelligence,
Mr. Humphrey did not fall off
his horse. Like all good horse¬
men, the Secretary of the Treas¬
ury does not fall off horses, But
complete
a
—
Publish¬
With First California
SAN
onto his waistcoat.
the 83rd Con¬
pected to work out
horse
buttons
gress.
;
Finance
Easton,
Company,
(cloth).
or
England to have pictures of
this
If the
chance to be
or
on
favorite horse.
to
separately and to be
ring down
and
signifi¬
mere¬
tled before the curtain is about
.
Misjudge Parity Vote
Significance
a
Consumer
Neifled—Mack
R.
ing
Holds His Horse
Actually the future of farm
price supports will not be set¬
are
hand.
veto
a
George
M. Humphrey, the
Secretary of the Treasury, has
t
what quantities of materials
are
M.
(Special to The Financial Chronicle)
tory price
tied up in metals price supports
or
by
in
Trends
as now con¬
otherwise.
veto, then a manda¬
support amendment
would have had some point,
proval
the
to
bill.
be continued for
qaq
development,
sent to the White House for ap¬
probably bought such and such
quantities of me^al at such and
such a range of prices.
public
no
was
defeat to the President.
a
support
nor
a
another year or so, or whether
the White House can stop this
a
wool bill stood
strategic stockpile,
Congress
M.
Supplement—Bank for Interna¬
tional
Settlements,
Basle*
Switzerland (paper) Sw. fcs. 65
(complete work in two volumes*
including regulations no longer
in force, Sw. fcs. 85).
the issue will re¬
agree, then
stituted
chimera, ^and there
point in administering
considered
Neither
and
a
tory price supports
its
re¬
farm commodi¬
Senate
Hence the
ly chasing
reveal..
metals
—
for
solve down to whether manda¬
the
or
gress, except as the Adminis¬
tration might decide in its o\Vn
judgment from time to time to
the
sight
in
If the two committees cannot
of the Brannan plan, will
incorporated in this bill.
was
which
James
Regulations Issued by Switzer¬
land
Regarding Its Payments
With
Various
Countries — 7th>
copy
a metals buying
program,
either to the public or to Con¬
Under the
write
to
proposals
the White House with
many
wool
after
tressed conditions in connection
tries
Committee
of
ever
different one. If
reconcile their
this is
couple of
months—then they will present
separate wool bill
price sup¬
been voted by the
intention
can
a
not
would
generally high supports,
other features.
The
cash
subsidy, an exaet
ties,
try will be able to learn is that,
after the fact, certain brokers
acting for the government, have
pile
it
complete farm support
system for
policies, nothing
l>uy
such
they
vision bill, carrying a two-price
Administration
either
Allen,
pany, Inc., 330 West
New York 36, N.
your
various
a
the
is
own
program is tied, all that indus¬
quantity of
the;
Agricul->
on
mandatory
had
House
oper¬
to
secret
that
word
determined
had
It
(whose function is solely exec¬
utive and not policy-making)
naming the commodities and
minerals, the stockpile goal
an
the
Committee
I
J
Totally Secret
will be "blown up" to make it
and store
Senate quite
had by the time of the
got
ports
areas.
possible for the government to
^
vote
House
use.
Except for
general directive to the Gen¬
eral
established
are
is said,
ates in total secrecy.
civilian economy,
there
an
will
Lee
bergr—McGraw-Hill Book Com42nd Street*
Y. (cloth),
$5.00.
liquid
asked me to make up—do you want me to
put the two bottles of rye in your desk drawer on it?"
of elections,
good
metals-producing
a
Under the new program in
place of the present minimum
requirements of the strategic
reserve
eve
create
Another contrast
and
Tied to Stockpiling
Broadbottom—regarding that list of
if
metals
mini¬
war
"Mr.
assets you
pass
Is
in case of all-out
needs
sol"
Senate.
commodities the govern¬
ment endeavors to lay in a sup-
war
—Clark
even
the
on
to
as
,
Buchanan and Marshall R. Col-
NOT
so
these
mum
even
R1
thee
,
ture
present; stockpile is a secret
-goal of some 76 key raw mate¬
rials.
With respect to each of
necessary
could
before
Prices; Income and Public Policy
buying
of
existing strategic stockpile
of critical raw materials.
The
ply
:
program."
they
so,
Interna S
,
1954 /(H.
of
Meyer ML. Goldstein—Pensioni!
Planhihjg^ Company, 260 Madison
Avenue, New
York 16„
N. Y. (paper).
: !
>
r
/
this program as a political tool,
the
*
do
to
as an
elaboration
and
j
j
pro-j
part of
as
Proposed
Code
8300): .Testimony
metals
>.
of
Revenue
i Senate Finance Committee, by
■
Like- :
wise, if any subordinate officials
were
to escape detection from
the White House for attempting
persuaded
scheme
new
visions
^
■
'■•'V'
were
order
could
prices supported
edly distressed condition of the
domestic mining industry.
to adopt
President if he
The
minded
means
The President was
/ '"v/'■ j
■
*'
-
Pension and Profit Sharing. Pro*
White House.
from the
;,
looked
•
•
is founded upon statute.
The metals price support pro¬
gram is founded upon an order!
nated with th£ President's Min¬
erals
',V':
The farm price support
-
United States^
(paper>
prices on re'A' v"-;
t-r!
(quantity
quest).
$2.00
j
gram
used to store these materials ;
for long periods of time.
i
'
re-
may
buying when it feels
it.
like
the in¬
in
liuying materials at depressed
prices. Government money will
require
will
desirable, and
siders
;
5
y Washington 6, D. C.
?
made their calculations, !
government must buy met-j
als, as in the case of farm prod¬
ucts.
The government may buy
at what
price level it judges j;
best, in what quantities it con- ;
ails and minerals price support
W>
Com-
Helen
Jobless Pay—Chamber of
or
Commerce of the
the
,
—
Incorporated, 22 East
York 16; N. Y.
(paper) 25c. VvVt/> ;
Jobs
have
closely analogous to ;
price .support pro- |
\ gram. Its scarcely concealed obI jective is to buoy up the market
i for .some 35, to 40 metals and
minerals.
Like the farm price /;
in> Court
38th Street, New
ex¬
price support
There is /no rigid
statutory formula determining
at iwhat point, after statisticians
farm
program
ideal,
an
■
Inc.,
Co.,
mittee,
.
-
program.
.program is
j! support program,
to
&
Bender
Puner—Public:. Affairs
,
have in the metals
j
-'r-
its
the
-
;;
>
Albany 1, N. Y. (paper).
Children
flexible schedule of
more
a
Flexibility
mission, the new met- <
als and minerals price support ;
:
j
treme is what the President will
days.
In
Matthew
necessary.
are
such farm price supports.
time in the next sey*
some
program,
supports are
largely
inflexible. The President is urg¬
them —may be an¬
shortly. They may
!«even be discussed in a general
i way with a Senate subcommit-
jtee
Acquisition of Corporate Funds at
Capital Gain Rates—Wilbur H.
Friedman and Gerald Silvert—•
mandatory.
are
metals
Farm
nounced
*«ral
the
they
of
xnany
large
der
(•.-
details— but
These
>:
You
(
and
metals and minerals price
anew
Man's
In the farm field,
WASHINGTON, D. C. — At
"present officials of the Eisenj hower Administration are work¬
ing diligently to ready the dejlails of the Administration's
^support program.
•
•
BeVind-the-Scene Interpretations
from the Nation'a
Thursday, May 6, 1954
Telephone
..
HUbbard 2-1996
Boston 9, Mass.
Teletype
BS 69
@FedFRASER