Full text of Commercial and Financial Chronicle : May 8, 1952, Vol. 175, No. 5114

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£

UNIVERSITY
OF MICHIGAN

ESTABLISHED IS39

1952

MAY 12

The Commercial

BKIHESS MIUMTUIIM

LIBUII

Reg. U. S. Pat. Office

Volume 175

Number 5114

New

Price 40 Cents

York, N. Y., Thursday, May 8, 1952

Copy

a

EDITORIAL

As

Our Dwindling

See It

We

j

Former Undersecretary .of

In at least two startling instances the Admin¬
week

'

two shown

or

State and

three of

long

instances, but these two;
outstanding at the moment. . ": ;

out,-under United Nations j Charter,

,

,

the

cases

existence

reached into

of

to officeholders

of

ters

of the sort in recent
years, is
labor monopoly which has

I

who

constant threat

up a

offend it.

For

three-quar¬

a

century the politicians in this country
inveighing against "monopoly" — mo¬
nopoly, that is, real or imaginary, among business
or

interests.

Many

a

the

public office, and managed to remain
public office year after year, in large part by

the

vehemence

with

which

he

condemned

the

of

i

of

with

this

earth.

I

stand

for

Here and there

reason.

even

Communist

In

yet there may

little

dence,

where in

Continued

so

no

PICTURES

:

of

address

IN

THIS

ISSUE

Security

trade

—

Association

On the contrary, I have

taken

at

the

April 30

on

the

to

opportunities

with

resist

of

inter¬

survival

with

our

inflation

of

a

economies, to
and

on

page

Annual

appear

make

a

S.

Sloan

cause of a strong free world and
victory for the Communist way of life.

the

end

of

World

32

War

address

Detroit, Mich.,

pages

Party

of

by Mr. Colt before
May 5, 1952.

The

a

signal

II, the democratic

Continued
*An

Colt

power¬

ful blow to the

a

Spring

on

to

progress toward the reestablishment
of multilateral trade
and
currency

convertibility, it would be

Continued

Candid shots

trade

As

expansion
for

efforts to stabilize

delivered

Traders

resolution

genuine

a

cope

diffi¬

,

of

free community of nations. If we in
the democracies should fail in our

by
Mr.
Clark at the Fourth Annual
Pi Sigma Alpha Meeting at the University of Utah, Salt Lake
City.

Cleveland

DEALERS

shame.

picture

aggression.

Ever since

35

page

no

no

'
j

1

*

an

national

pos¬

great pride in the fact that I stand where the Revolu-

♦An

on

apology,

have

*

munists demonstrated that they were
aware
of the vital importance

J. Reuben Clark, Jr.

I

*

Economic

on

Club

page
of

24

Detroit,

the

26 and 27

State and

in

I). S. Government,

State and

Municipal

Securities

R. H. Johnson & Co.
Established

Oil

BONDS

HAnover 2-3700

telephone:

INVESTMENT

New York 5

Direct Private

BOND DEPARTMENT

OF NEW YORK

Washington,

50 Broadway

Bond

Allentown

D. C.

NATIONAL BANK
Bankers

to

the

Government

in

Kenya Colon? and Uganda
London, E. C. 2
Burma,

In

India,

Aden,

Pakistan,

Kenya,

Hawaiian Securities
Direct Private

Sherritt Gordon

land

Protectorate.

£4,562,500

Paid-up

Bought

Reserve

Fund

£3,600,000

The Bank

conducts every description of
banking and exchange business.

Trusteeships and Executorships
aUo

undertaken




—-

CANADIAN

Dean Witter

&

NATIONAL
OF THE CITY

BANK

OF NEW

YORK

Spokane

14 Wall

BONDS & STOCKS

Sold

Street, New York, N. Y.

—

Analysis

Goodbody

&

DottPiiox Securities

Co.

(ORPORATIOTf

Principal Commodity
MEMBERS NEW YORK STOCK EXCH.

and Security Exchanges

San Francisco

•

Bostou

Los Angeles •
•

Honolulu

40 Exchange Place,
Chicago

115 BROADWAY
NEW

YORK

England

Public Service Co.

Quoted

ESTABLISHED 1891

Members of

New

upon

request

DEPARTMENT

Co.

£2,281,250

Capital

Denver

Mines, Ltd.

Wires

Ceylon,

Uganda, Zanzibar, and Somali-

Angeles

New York

CANADIAN

Natural Gas Co., Ltd.

Tanganyika,

Authorised Capital

Los

Exchanges

Peace River
Pacific Coast &

Head Office: 26, Bishopsgate,
Branches

Salt Lake City

Dept. Teletype: NY 1-708

CHASE

THE

1915

Members of all Principal

Scranton

Williamsport

Wilkes-Barre

ol INDIA. LIMITED

Wires

J. A. HOGLE & CO.
ESTABLISHED

Albany

Harrisburg

ST., N. Y.

THE NATIONAL CITY BANK

PHILADELPHIA

Troy

30 BROAD

Bonds

Mining

Band Department

64 Wall Street,
BOSTON

COMPANY

and

Securities

SECURITIES

Chemical
BANK & TRUST

Municipal

UTAH

STATE AND MUNICIPAL

1927

j

well

membership in the Society
declaring

I
r

such, it
extremely clever attempt: in
dangling before the West the false
prospect of greater trade, the Com¬
was

of Nations.

real competition.
But never any¬
industry or at any time in our history
has there been monopoly so complete and so dom¬
inating as exists in the form of labor unions at
too

our

j;

area.

their

weaken

a full,
complete, and unimpaired
sovereignty that will be consistent

with

•!

-

of

Now, underlying much of this, at least in the
earlier days, there was a substratum of truth

.

Obviously the Con¬
ference was designed to undermine
the unity of the free nations and to

com¬

the

unrealistic

the Soviet

pros¬

resulting

:

appealing although

wholly

session of and exercise by our nation

rest.

be

provided most of
all
its
citizens,

measure

currency

In Moscow, about a month ago, an International Eco¬
nomic Conference was staged.
For the benefit of the
free world, the Russians painted an

blessing by example to other na¬
tions, even from the very beginning
of our national
existence, of any
nation, past or present, on the face

"trusts," the "business barons," the "malefactors
of great wealth," the
"monopolists," and all the

and

to

full

along with

.....

sure,

that

< ;

fiscal and trade policies and contribute toward worldwide stable currency through foreign loans only.
'

fort, most of popular education, most
of freedom, most of peace, most of

elected to
in

.

confirmed

a

am

perity

has been

man

am

nation

have been

enterprises

as

first, I

i

essential in order

as

budgets; (5) abandonment of low-interest philosophy;
and (6) removal of price controls, import quotas and
other trade restrictions.! Urges U. S. also
adopt sounder

we

isolationist, a political isolationist,
by political instinct, next, from experi¬
ence, observation, and patriotism, and lastly,
because,
while
isolated, we built the most
powerful nation in the world,
a

a

politics to build

v

have lost, right to<Hi

we

j

stability r (1) freedom
convertiblity; (2) more
restricted U. S. foreign aid; (3) avoidance of inflation;
(4) curtailment of welfare programs that lead to unsound

of trade

framed with view to exercising definite control over our
national mind, to point of its humiliation or extinction.

; When all is said and done, the root of the diffi¬
culty in the steel industry, as it has been in most

of the other

as

•1'

■■

achieve international jeconomic

to

may wish, or to declare war.
basic defects of UN Charter: (1) it does not give
careful consideration to our own welfare; and (2) it was

Lists

clearly

are

our

make treaties such

hard to

or very

find: other

: ;

Mr: Colt sets forth following factors

foreign wars to entanglement in European
affairs. Quotes Washington's and Jefferson's advocacy
of an isolationist policy.: Decries entangling alliances
as
a factor, in
our diminishing sovereignty, and points

by the Treas¬
issues of bonds to the public.

One would not have to look

M

Member, Executive Committee, United States
;

Mr. Clark traces American foreign policy and ascribes

.The other is the action taken
new

SLOAN COLT*

S.

Council of the International Chamber of Commerce

erring way even in this, an election year—or per¬
haps we should say because this is an election
year. One of these instances is, of course, the steel
in offering

By

President, Bankers Trust Company, New York

Director, Equitable Life Assurance Society
-

,

ury

-

,'

Director, Western Pacific Railroad Company

conclusively that it is as unregenerate as it has
always been, and as determined to pursue its

case.

Program to Achieve
International Stability

By J. REUBEN CLARK, JR.*

Ambassador to Mexico

istration has within the
past

A

Sovereignty

New York b.N.Y ,

Teletype NY 1-702-3

t

York Stock Exchange
Principal Exchanges

Members New
and

other

111

Broadway, N. Y. 6

WOrth 4-6000

105 W. ADAMS ST.
CHICAGO

IRA HAUPT & CO.

WHitehall 4-S161

Boston

Teletype NY 1-2708

Telephone:

Enterprise

1820

1
'

'

I

'

.

•

2

Y T! >

;

■

■

The Commercial and'Financial

j

y?

./

*

u*»

■

i

Thursday May 8; <1952

Chronicle

(1910)

The Security I

IN

MARKETS

TRADING

Like Best

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

A continuous forum in which, each
Southern Production

in the investment

Polaroid

participate and give their reasons

Corporation

for favoring

they to be regarded, as an offer to

are

Eastern Utilities

Assoc., Conv.

f
j

4% % Conv. Pfd.
Continental

El Paso Natural Gas
li

This

currently

is

have

New York Hanseatic

[
f

itself

management and to be in an

Un.

Teletype NY 1-583

City

Valley in and about

through which it manutactures

Poughke^psi

Its

mand.

includes

output

plastic-coated

wire

copper

22

net

ffiCpONMELL & A).
Exchange

$3,254,000

compared to

Exchange

BROADWAY,

NEW

YORK 5

REctor 2-7815

Tel.

Trading Interest In

io miles south of Albany and

mortgage

3s

2%s

Conv.

deb.

capitalization,

4% %

142,178

preferred

Commonwealth Natural Gas

2s

(a)

sales

farm

;

ac-

N. Y. Telephone WOrth 4-5000 ^
Wisconsin Electric Power '
Common

commercial and street

25

.,

..

..

.

Foote Mineral

,

residential and 19%

American Can Co.
Common

Members N.

$7,030,000
/2,000,000
4,000,000

13,030,000

18,105,000

29%
100%

the

for

year

Sales for

1951.

ended June
recent quar¬

(a)

terly periods are indicative of the

convertible into common
Represented by 1,827,476 shares.

$830,000

(b)

CD

TWX LY 77

39

growth: for the September
quarter of 1951, $9.9 million; December quarter,'$10:7 million, and
the

for

Lynchburg, Va.

March,

at

10,

balance

the

at

1952,

Southern Advance Bag
Grinnell

paid semi-annually, amount-

stick.

established
basis of

Book
Net

Value-

„—

$106.00 per share

37.50 per share

Quick Assets,-.,

Earned

per

Dividends

9.88 per share

share—

3.00 per share

paid

on

v e

now

in

been

Price

Share

$36 per

I

75 Federal Street,

Boston 10, Mass.

Liberty

N. Y. Phone

2-6190

WOrth 4-2463

For

the fiscal

are

ended June

year

$2.86

and for
March

months

nine

the

earnings

per

31,

share

were

$1.68,

adjusted to the 5% stock dividend

I under¬
paid in December, 1951.
current net earnings are at

stand

the

1919,

company

itself create 75%

quirements,
13%

in

tion

of

TRADING MARKETS

IN

UTILITY STOCKS
Direct Private

Telephone

1951.

!. B. Maguire & Co., Inc.
Members Nat'l Assn.

of Securities Dealers Ine.

The stock
York
year

31 Milk St., Boston 9, Mass.
Portland, Me.
Hartford, Conn.

was

Stock

on

is

not

to have

the New

about

a

sufficiently

established

End Phone to New York Canal 6-1613




generating

steam

following.

I

think

it

may have been subjected to some
recent selling pressure for reasons

entirely

going

extraneous

significant

to

the

factors.

foreFrom

improved financial position, larger earnings per
sales,

n/v^,fJldthi=i?en/^ymf/tS'.-/S
have by no means kept pace with
the betterments.
The
manage-

Philadelphia 3, Pa.

LAMB0RN & CO., Inc.
WALL

99

STREET
5, N. Y.

NEW YORK

SUGAR
Raw

—

Refined

—

Liquid

Exports—Imports—Futures

DIgby 4-2727

Net

$16,579,000

$14,644,000

* 1,673,000

*1,562,000

$0.72

income
per

Number
*After
order

$0.71

*1,367,000
$0.65

share

0.60
of

0.58

0.52

1,737,476

shares..-

reservation

from

1949

1950

$18,342,000

revenues

1,613,349

1,500,105

the

of

New

of

income

net

York

Public

$120,000

Service

in

accordance

with

For

profits

the

first

rose

to

quarter

$0.30

of

per

1952

share

will

of

shares

number
outstanding,

from $0.24 per share in the like may approach $0.90 per share. The
1951 period, despite the issuance company's
dividend policy has
of an additional 40,000 shares of been generous, with 91% of repreferred and 185,227 shares of ported earnings being paid out as
common stock. It is currently esticommon dividends over the past

10 years. On this basis it would
despite the prospect that addi- not be surprising to see the prestional conversion of debentures
Continued on page 31
mated that full years 1952 profits,

OVER-THE-COUNTER
'

further enlarge the
common

N. Q. B.

an

Commission.

a

Tele. BS 142

Enterprise 2904
Enterprise 6800

compared
with
And after comple-

Dividend

listed

Exchange

and

ago

around $2.28

BOENNING & CO.

since it believes that maintenance
of rates low enough to permit development of a larger volume of
business will be of greater ultimate advantage to the company,
Indicative of recent growth are
the following figures:

lf)51

Earned

increased

TeL HUbbard 2-5500

1952,

project planned for 1955, it is esti-

earnings should
per share.

substantial

CAnal 61613

in

unit planned for 1954 and a hydro

Gross

well known

to New York

will,

of its power re-

as

another

and, therefore, for the
fiscal year ending June 30, 1952,
be

Corp.

Penn Fruit

generating such installation since not seek an the managementrates
unit on Dec 31, 1951, 1950. Thus, increase in gas did
the
first

the rate of 20 cents per share net

monthly

ACTIVE

satisfactory

quite

led to believe that

am

1952,
despite
increased taxes and higher costs,

INCORPORATED

been

with Sross revenues up more than
that is, 60 cents 100% since 1940. Of particular in-

directors of the company

ended

Dayton Haigney & Co.

theless

regular quarterlv

a

30, 1951, earnings per share were
App.

Secular growth has never-

eral.

terest at this time is a complete
change in the character of the
considering another stock divi- company with regard to the gendend this year,
and there is a eration of electricity. In the past,
possibility of increasing quarterly the company purchased almost all
payments to 20 cents, which seems
its power requirements. With
well within its capacity to pay
the installation of a new steam

the

Capitalization 17,000 shares

h a

15 cents,

annually.

Ilolyoke, Mass.

Sole

They

generate 93% of its power requirements. This should improve
the company's position in the future and should also in time result
in a higher investment regard for
the securities,
In view of higher costs, the
company recently was granted a
substantial electric rate increase,
designed to produce in 1952 a 6%
return on the company's electric
investment. Although the cornpany did not earn a full return on
its gas business in 1951, a material
improvement was made over

& Paper

Corp.

Read Standard

mated that the company will then

industry in the service area, and
in view of the large domestic load,
revenues have been more stable
those of the industry in gen-

quarter,

ine to 50 cents in cash and 5%

12-31-51

Tel. NY 1-1932

TRADING MARKETS

lO'/z.

Reflecting the absence of heavy

Dividends for 1951

$11.7 million.
were

PARSONS PAPER CO.

Assn.

New York 7

DIgby 9-1550

rate of

STRADER,TAYLOR & CO., Ine!

Security Dealers

Y.

150 Broadway

21%

$18,105,000

(b)

rights

&

Gersten & Frenkel
50%

$30,295,000

$61,430,000

stock

Common

;

rights

Capitalization is as follows:

the

5% preferred

$21,000,000 for the year ended
30, 1949, mounted to $39.5

&

Commonwealth Gas Corp.

lighting 24%, industrial 21% and
other 9%. Gas load likewise was
attractively balanced with reve-

$15,465,000
,12,000,000
2,830,000

■

Teletype BS 259

:

June

30,

Life Insurance Co. of Va.

and

Sales, which were around

million
•

^

Tel.

shares and common stock 1,079,084

shares.

Camp Manufacturing

stock

148 State St., Boston 9, Mass.
Tel. CA 7-0425

load emphasizes stability

revenues,

preferred

the

.

counted for 40% of total electric

preferred

4%%

cur¬

request

on

institu-

private

•

miles east and west of the nues 71%

mortgage

with

Industries

.

.

First

balance

Information

river. The northern end is about commercial.

$7,795,541.

liabilities,

better

American Furniture

Dan River Mills

,

and

...

residential

River

about

and

The
long-term debt consists of $2,500,000 5s of 1965, and brings into

against

UNION TWIST DRILL

sum¬

and lonS range growth. For 1951

the

o n

Hudson

?

,

1

puk]jc*:

pany's

an

about

extends

;
First

rent

Furniture

of

square-

a

Important balance sheet
items as of March 31, 1952, ineluded current assets, $15,709,056,
with cash, $2,891,018,

Bassett

villages.

territory/

area

of June

as

and

farms

During 1951 electric revenues 1
accounted for about 83% of sales,
with §as providing most of the
balance. Distribution of the corn-

about 85 miles

30, 1950.

offices

branch

♦

v

458

embracing

Sidney R. Winters

tably. As of March 31, 1952, net
working capital w a s $7,913,515

Curb

York

New

120

''

"

dairy

.

...

2,500

capital position of
has improved no¬

company

York Stock

New

m

and

rated

The

<

working

our

uc^ textiles, paper, clothing and
buying products and fo.od indus-

,

unincorpo-

and

During the past few years, the
this

and

resort business. Principal in-

(justrial customers are manufacturers of machine and metal prod-

miles

ment.

Since 1917

Members

mer

incorpo-

rated

cable, corrosion and heat-resist¬
ing alloys, and in special divisions,
tanks, pipe, large smoke- stacks,
lifeboats
and life-saving equip-,

Rights & Scrip

fruit

and

electricity,

steel, dies, forgings, non-ferrous
alloys, wires for wire cloth and
mesh as well as insulated and/

Specialists in

to

V

rela¬
tively small diversified industries,

.

w* fip

tool

wires

Beacon,.Newburgh and
K'
(fcVna "it tries> other larSe customers
Iii?
include local;government agencies
also furnishes

a

is excellent de¬

there

which

Direct

tory dependent largely upon

Pn,n

n<kMri(,

„

diversified line of metal products
for

Mobile, Ala.

Central Hudson Gas & Electric Corp.
Common Stock
This company supplies elecex- tricity and natural gas in -an exhas tensive area in the Hudson R1V

1920

Y. Curb Exchange

-

ftH

NY 1-1557

Birmingham, Ala.

Population of the area
is about 294,000. About half reside
in small villages and rural terri¬

Members, New York Stock Exchange

position for growth. It
retained seven
(7) divisions,

120 Broadway, New York 5
BArclay 7-5660

steadied

cellent

Corporation
N.

New York

Exchange

St., New York 4, N. Y.

York City.

seems to
under able

Steel

&

York Curb

New

25 Broad

of New

miles north

40

southern

Partner, Abraham & Co.,

years

Copper

York Stock Exchange

Members

HAnover 2-0700

WINTERS

R.

SIDNEY

favorite
the

my

and with sev-

engenders

ental

Associate Member

Members New

New Orleans, La. -

of readjustments and
eliminations
behind
it, Contineral

Established,

Steiner, Rouse & Co.

considerably undervalued.

vicissitudes that complicated promotion

5%/52

Central Public Utility

Bought—Sold—Quoted

impresses mo as

After experiencing all

stock.

Southern Production 3%/67

Si

is

Steel

Copper &
Inc.

&

(Page 2)

York City.

New

Industries,

Series

Conv. Pfd. 1952

4.40%

analyst, Peter P. McDermot

competent
and aggressive.
Selling in the Central Hudson Gas & Electric
81/2-9% range, or about four times
Corp. (common stock)—-Sidney
earnings and on a
6.5% yield
R. Winters, partner, Abraham &
basis, with good prospects of
Co., New York City. (Page 2)
larger dividends, I think the stock

Analyst, Peter P. McDermott & Co.,
New York City
Members:
New York Stock and
New York Curb Exchanges

General Telephone

Beal,

F.

Inc.—Merritt

dustries,

intended to be, nor
sell the securities discussed.)

ment

MERRITT F. BEAL

-1

Louisiana Securities

Co.,

Puget Sound Power & Light

Alabama &

Selections

Continental Copper and Steel In¬

(The articles contained in this forum are not

Colorado Interstate Gas

\

Participants and

Their

particular security.

a

Week's

This

Forum

INDUSTRIAL STOCK INDEX
12-Year Performance of
35 Industrial Stocks
BOOKLET

ON

REQUEST

National Quotation Bureau
Incorporated

46 Front Street

Rew York 4, N.Y.

.[Volume 175

Number 5114

.

.

The Commercial and Financial Chronicle

.

The Price Indexes

(1911)

Guide in

as a

INDEX

Determining Stock Market Trend

Our

By HARRY D. COMER*

Partner, Paine, Webber, Jackson & Curtis

A

—S.

The

market appears to be
convincing basis for expecting

top, and, in general, since the

ground, there is no
decline. Avers, however, there is

upswing, though certain depressed
J There
three

is

old

an

blind

fable
India.

in

men

about
They

asked to feel of

were

"and then

to

elephant

an

describe it.

The first

blind

man

touched

and said

"Why

elephant is

an

like

just

a

wall.".
blind

got
leg,

man

hold of his

"An

said

and

elephant is like
tree."

a

The

third

blind

man

happened
to
grasp the ani¬

Harry D. Comer

mal's tail,

he described
like
-

and
"Just

as

stock market analysts
in trying to peer into the future
are
something like these blind
Hindus.
At
times, some of lis
we

it

that

like

is
it

mean

the

market and report

of,the

sky?)

*

-

;

-

the im¬
pression that the market is im¬
penetrable, like a stone wall, so
to speak.
(Are these folks the
skeptics who can't make up their
minds—those who hedge or strad¬
'

of

Others

get

may

us

latest

tick

find,

as

others

-Still

the

that

feel

may

market is hanging by a thin-rope,

(Are

bust any moment.
these the real bears?)

likely to

not

do

to

care

this

press

an¬

alogy further now. Suffice to say
anyone's views concerning
.either an elephant or the stock
market must be conditioned by his
that

his

animal,

the

of

feel

contacts

it, and the sense (or senses)
uses in making those con¬

with

that he

and

tacts
.*

it

All of

interpreting them.

ly

use

indexes,
stock

see

to the future of the mar¬

comes

ket.

So,

any

prices

Here

relation

to where

is

before

are

we

where

we

in

fundamental

begin

can

all

to

That

going.

are

we

fields, not

just in the stock market.
The

morously

talk

*A
-

described

used

ment

to

by

Comer

Mr.

Convention

eration

of

of

Financial

the

hu¬

been
an

lowing

length

the

at

Fifth

National

Analysts

Francisco, Califs May 6,

Fed¬

Obsolete Securities

Wilfred

Propaganda?

WALL

Telephone:

or

a

Little?—Ira U. Cobleigh

6

8
9

Rise

Established

Petrochemistry—J. D. Fennebresque^^-

Stock Market Flare Up——Joseph G. Bettag

a

'ft-

-

-

-v

Defense

A

■

the Wage

of

H. Hentz & Co,

'

'

'

..

*

'

;—Nathan P. Feinsinger

\

'

11

:—J.
■

I

New

York

Stock

Exchange

New

'

1

Stabilization Board

York

Curb

Exchange

Cotton

Exchange

Chicago

Is

It

Wage Stabilization,

a

Theodore

or

a

Wage Stimulation Board?

Iserman

R.

___

New

15

___

■
•

•

What's Ahead in Federal

many

*

Should Companies Pay Dealers for Handling Customers' Stock

for

figure

one

of

one

industrial

Rights?

Subscription
t

Irving S. Olds Retires

12

—

Red

GENEVA,

18

(Boxed)-

Leidy Prospecting

20

—

National Alfalfa

let's

-

him

Ask

•

what

yesterday,

;

Regular Features

;

the

did

market

/Pan American

tell

you

one

the

ever

Bank

industrials went up
what¬
the

in

advance

and

'*

#(

I 16

—

*Prospectus available

Private Wire to
LOS




request.

Investment Field

Coming Events in

______

13

Dow-Jones point is one

share.
Dow

is

over *

50

limited

lot;

the

of

,/

Einzig—"Britain's Improved Gold Position"

Singer,. Bean
& MACKIE, Inc.

23

as

few

a

Ahead of the News—Carlisle Bargeron

From Washington

10

HA 2-0270

is.

if the

where

relation

36

chang¬

the

market

its

to

he will tell

Exchange PL, N.Y. 5

1-1825 & NY 1-1826

30

you

1929

Funds

Mutual

Notes

NSTA

him

Business Activity

Current

Indications of

unit of

keeps

itself

,

market

40

Teletype NY

•;

in

8

expect contin¬

average

an

Ask

and

share

a

anyone

measurement

ing?)

now

worth

was

cents

his feel

can

in

Dealer-Broker

He doesn't know how

ago.

years

uity

the

as

RecohimendationsI

Investment

r

one

only, 22-cents

-now

Nor that it has varied

share.

much

that

doesn't know

He

point

is

News About Banks and

hOVJR INoe

43

—

-

20

Bankers

high,

that it is far

Observations—A.

Wilfred

*

May

below that high, which w"as 381 in

the

Dow.

real

(Now it is only about

these

Despite
very

the 30

stocks

'

Public

see

who look backward

us

prices
level

Moreover,
try

so
are

when

to

look

terpretation

of

better than

trouble

turn

we

forward,
the

—

our

10

used

Salesman's

Securities

Now

—

The

in¬

in

[

Corner

GULF

27

37

Registration

I Like

Security

SULPHUR

2

Best

,

The State of Trade and Industry.

Tomorrow's Markets

the

in

arises

31

around
our

future can be
knowledge and

struction of the average
method

Securities

Utility

Securities

far above the blind indeed/,

understanding of the past.
The

40

...

Railroad Securities

Those of
and

Offerings

in this

now

average.

present

Security

Prospective

24

Governments

Our Reporter on

stock

close to their 1929
In fact, the 1952 high just
duplicated
that of
1929,

are

43

Report

Reporter's

the

figures,

that industrial

truth is

prices

Our

5

(Walter Whyte Says)

CORPORATION

35

con¬

in the

and

Washington

44

You

to

adjust for stocksplits. Dow-Jones adjusts by low-

Continued

on

page

28

*

Mr. May's fourth article on

Economic

PREFERRED STOCKS

in

Conference

his Analysis of the International
appears this week.

Moscow

1

COMMERCIAL

Drapers'

London,

Gardens,

E.

C.,

BOUGHT
•

Eng-

Company
Reg. U. S. Patent Office

ST., NEW

Reentered

•

Schenectady •

CROW ELL, WEEDON

ANGELES, CALIFORNIA

York

2-9570

N.

7,

DANA

York,

Y.

Y.,

N,

-

Worcester

& CO.

Thursday,

May

8,

President

1952

United States, U.
Possessions,
Territories and
Members
Pan-American
Union, $45.00 per year;
Subscriptions

Other

(general news and ad¬
and every Monday (com¬
plete statistical issue — market quotation
records, corporation news, bank clearings,
state and city news, etc.).
vertising

Other

111.

135

South

La

Salle

St.,

(Telephone: STate 2-0613);

Canada,

$48.00

per

Bank

and

rate

of
in

year.

Quotation

Record

PETER MORGAN & CO.

Monthly,
(Foreign postage extra.)
of

of exchange,

the

—

fluctuations

made in New

remittances for for¬

York funds.

31

Nassau Street, N. Y.

6

In

eign subscriptions and advertisements must
be

request

$52.00 per year.

$30.00 per year-.
Note—On account

the

on

S.

Qther Publications

issue)

Offices:

of

in

Countries,

Thursday

Chicago 3,

Prospectus

Subscription Rates

[

Dominion
.

at the post office at New
under the Act of March 8,

1879.

to 9576

SEIBERT,

QUOTED

,

second-class matter Febru¬

as

1942,

25,

ary

COMPANY, Publishers

New

SEIBERT, Editor & Publisher

D.

WILLIAM

TELETYPE N. Y. 1-5

•

DANA

Place,

REctor

HERBERT

YORK 4, N. Y.

Glens Falls

B.

Park

•

Copyright 1952 by William B. Dana

]

CHRONICLE

FINANCIAL

SOLD

and

.1

•

upon

22

Z

Dow

The

Chicago

Sulphur

__Cover

—

Stocks.—-./.--:

Insurance

Securities

Canadian

He thinks that each
dollar per

average was.

"

(Editorial)

>,

dollar and 52-cents," or

"the

See It

We

Tennessee Production'

probably "

will

he

and

As

-

..

Members New York Stock Exchange

Boston

SWITZERLAND

Chairman of Board of U. S. Steel Corp 13

as

Herrings Again?

Every

•

N. Y.
PITTSBURGH

DETROIT

CHICAGO

Issues New Edition of Bank Directory

Raild McNally

,

Albany

Exchange BlJg.

average.

Now,

average.)

ket.

Societies,

TELEPHONE HAnover 2-4300

Cotton

blind

our

Spencer Trask & Co.
BROAD

Exchanges

NEW YORK 4,

25

25

Exchange

Cotton

other

Financing?—Hon. John W. Snyder18
N. Y.

WILLIAM

,

Orleans

Trade

of

Board

And

•*

Inc.

Exchange,

Commodity

.

land, c/o Edwards & Smith.

specialized in

York

New

14

_

Published Twice Weekly

have

1856

Members

Expect

grabs the market by its

this

1952.

For many years we

WHitehall 4-6551

■

-

Dept.

STREET, NEW YORK

5

May

what he knows about the mar- c

see

instru¬

the

as

measure

Annual

San

has

our

market

no

ticker

stock

:

is typical of those thousands

and

Market—Looking Backward

The

you,

just

tea!

analysts who get their
"feel" of* the stock market by fol¬

it has been? We must know where

know

combine

into

Dow-Jones

we try to make highs.
let's first take a about
good backward look. Where is the even for

in

Economic

Moscow's

Against SEC Taxes—Richard M. Crooks

First let's consider the

comes

He

men.

before

now

Is

of

ticker

the

Dow-Jones Industrial Average.

forecasts

market

4

—

The

the forest instead >'

which

each date.

260.)

blind enough when

us are

of

McKnight

analysts habitual¬
stock market averages, or

(How

,

^

I

to

They're

us.

6

basis for projecting

a

In order to

all

'

3

of the trees, we

per

*

of

"poison"

are

to

future.

.

dle the fence?)

'em

Bank Investment

A Protest

is"

Very quickly the ticks of the
ticker become part of the past—
for us to feel of and report what

that

(Does

tree.

a

going to grow toward

is

ticker

ent.

of

obsoletes

dish

defini¬

different

a

the stock

me,

I

represents the ever-fleeting pres¬

the

Stock Market

Determining

Outlook for Non-Ferrous Metals—Donald B. Macurda

Seriously,

device used to separate the market's past from its future.
The

in

Comer

for Savings

Outstanding Shares—A Lot

a

(He

piece of rope."

a

Now,

"feel"

?

elephant

an

To

W.

Effective

—-A.

major

a

fleeces.

accept

tion.

we

The second

How

ready for rise.

are

lambs'

would

the

elephant's side

groups

of

Guide

a

99

solid

on

Stocks

-—David

basis for expecting major

no

as

Trend—Harry D.
Industrial

basis, contends high for stocks in 1951 exceeded 1929

as

Indexes

Price

defective and inade¬

quate in revealing market movements and trends. Says Stand¬
ard & Poor's indexes are soundest and most useful, and, using
them

If

sell

Basing his conclusions regarding stock market situatidh on
knowledge and understanding of the past, Mr. Comer finds
Dow Jones and other industrial averages

f ANOTHER MAN'S POISON
Cover

Colt

Sloan

and company

i

__Cot;er

Stability

Program to Achieve International

Members, New York Stock Exchange

page

Sovereignty—J. Reuben Clark, Jr.

Dwindling

LicHTtnsTfin

"

Articles and News

3

Tel.: DIgby 9-3430

Tele.: NY 1-207S

4

The Commercial and Financial Chronicle

(1912)

Two electrical equipment
the number of stocks class.
"legal," but which will stocks that I like are General
not meet these general investment Electric and Westinghouse Elec¬
standards.
There are a great tric, and also in the manufactur¬

prised

Industrial Stocks for

Savings Bank Investment
By david w. Mcknight*
Director

of

Research

and

Partner, g. ii. Walker &

Co.

Members, New York Stock Exchange

Mr.

ings banks to invest in common stocks and lays down

basic

banks

savings

of

act

recent

is a forwardlooking meas¬
which will

ure

flexi¬

impart
bility

to

your

portfolio

man-

cgement
well

as

aid

as

earnings
positions. The
law's provi¬
your

sions,

how¬
by

are

ever,

means

no

a

guide to, much
less

a

tee

guaran¬

of, invest¬

ment
David

W.

its

brella

far

too

broad

um¬

wholly un¬
stocks qualify.

many

industrial

suitable

success

because under

McKnight

I cannot conceive of an investment

it were inaugu¬

unless

program,

rated in the depths of a bear mar¬

used
the law

ket, being successful if one

according

eligibility
as

a

to

criterion of suitability.

As

stocks

mon

industrial com¬
be bought if they

know,

you

can

registered on a national se¬
curities
exchange provided the
corporation shall have paid cash
dividends in each year for a pe¬
are

riod of

ten fiscal years

the date

of

preceding

investment, and fur-

t'ler, providing that aggregate net
earnings available for such divi¬
dends
for
this ten-year period
shall

have

been

period of five years preceding in¬
vestment shall have averaged not
less than lVz times.
Further, that

during
years

either
net

of

the

past

earnings should
a 1%-times

have been below

tion, but tonight I can only briefly
refer to them.
First, one must

There
the

are many

industrial

stock

field

then seek out our com¬

must

we

a

the

less
such

industry

as

retail trade

It must have

agement and

than in the

more

case

inherent risk

of stocks of regu¬

lated companies.

Thus, it follows
that the buyer of industrials must
not only exercise greater care in

making his selection, but constant
review is equally important if he
is to be successful in the
*An
The

long

run.

address

by Mr. McKnight before
Bank Association
of the
York, Westchester Division,
Hollow Country Club, April 30,

Savings

State of New

Sleepy

an

is

large,

very

or

petroleum.

able, alert man¬

depth of manage¬

a

Don't

ment.

into

buy

one-man

The manage¬
demonstrated an

management shows.
ment must have

1952.

stocks

common

for

consider

I

to

be

your

chemical and

drug industries very
is a fact that the

it

but

of

stocks

common

Chemical

Monsanto

and

Merck & Co., two
well-managed compa¬
nies in every way, yield le§s than

3%,

and

so

there may be a better time
buy them. But in these

for you to
two

industries

attractive

the

law

is

much

should

consider

Union

you

Carbide,

as

for

demand

five-times

a

to the results of

In

addition,

must

research-minded

be

in

this

research age.

depression year.
would want net

Security An¬

To Head Bond Clnb

tangible assets of $200 per share,
more, and I would like

sinking fund for market

protection,

though

preferreds

good

are

not

Joseph A. W. Iglehart of W. E.
Hutton & Co. has been nominated
for

President

of

the

of New York for the

too plentiful.

to

Representative good quality pre¬
ferreds yield between 3.7% and
4.2%, and with rare exceptions I

James

J.

W.

do

election

Bond

Club

coming year

Hutton

not

believe

should try to
do better.
If you want a bigger
return than this I would forget
about preferred stocks and buy

succeed

E.

Lee,

Co.

&

you

The
and

annual

meet¬

been

less to say, an
a

Need¬

measurements.

adequate yield on

well-covered

dividend

Excessive

alone.

stand

is

one

yardsticks, but it does
debt

is to be frowned upon
a

current

weak

along with
position and in¬

able

as

noted, should be reason¬
earnings, that

in relation to

is, not too high a pay-out. Above
all, I would be extremely inter¬
in

ested

what
with

the

company

respect

to

both

dividends during
recession years as well as its aver¬
age earning power and earnings
trend.
In looking at any com¬
pany, it is always worthwhile to
go
back and study its relative
performance in years like 1938, or
and

1949.

even

general principles are
applied you will be surprised how
If

these

Bristol-Myers 3%%.
Continental Can

nomi-

$3.75

*

dent

quite some time and the glamor¬

troleum

out

are

of

of

oil
Pe¬

reach.

your

large so-called
international oil companies there
However,

the

several whose common

are

afford

stocks

such

satisfactory return,

a

Socony-Vacuum and Texas Co.

as

If

you

will

accept

somewhat

a

smaller yield, Gulf Oil,
has considerable merit.
The

field

should

retail

of

attract

likewise,

distribution

savings

bank

$4
May Dept. Stores $3.75

this

group are not in particular
favor, which gives you a yield
advantage.
Of the several seg¬
ments
of
this
large
industry,

includes

which

managed
common

many

companies,
stocks

of

excellently
I favor the

J.

Penney,
Sears, Roebuck, G. C. Murphy,
W. T. Grant, First National Stores
and

May Department Stores.

The

Murphy 4%%

nate

managements have

COMMON STOCK

broad

Inquiries Invited

which

consumer

stocks:

have

met

New York 5, N. Y.

acceptance.

Sat¬

Borden

$4

Teletype NY 1-2630

of

which

consider to be attractive in

industries

are

I

tion.

high

in terms

historically
of prewar dollars

and for the shorter

the

opinion

will

be

ferred

I venture

savings

interested

more

than

despite

run

that
in

Philadelphia Bourse
Annual Meeting

banks

in

pre¬

stocks

common

PHILADELPHIA, Pa.—The an¬
yields on the
former. However, this is a grow¬ nual meeting of the Stockholders
ing country and I do not believe of the
Philadelphia Bourse will
that our well-managed corpora¬
be
held
in
Room
111, Bourse
tions will fail to grow with it, and
by grow, I mean that their earn¬ Building, on May 13 at 3 p.m. An
ing power will keep pace. Yields election for seven directors to
on

the

lower

representative industrial
stocks

5.6%,

and the

stock

a

reason.

balance

com¬

market

I

a

common

and

J.

common

stocks will work

by

age

lar amounts the return will

aver¬

for

much

so

&

passed

out better for you. If you buy com¬
mon and preferreds in equal dol¬

4.7%, which is

of

three

the

on

We

are

Inc.,

in

investment

than

30

former President

of

Investment Traders

tion of

Philadelphia.

the container group,
here. are
only in

.

announce

associated with

-

.i'

INVESTMENT

though yields
the 4%-plus

was

a

the National

Security Traders Association and
the

MEMBERS NEW YORK

44 Wall Street

business

years,

that

us

NEERGAARD, MILLER & CO.

mis¬

the

Mr. Daggy, who had

the

more

Philadelphia,

at his home at

away

of 56.

been

pleased to

now

day.

Daggy, H. M. Bylles-

Co.,

MR. JOSEPH JANARELI
is

years

same

Gentry Daggy

J. Gentry

pre¬

ably turn out that in the longer
the

term

a

held

Polls will be open at 2 p.m.

believe you should

ferred purchases and it will prob¬
run

for
be

has

major decline
high-yield level. For

your

serve

about will

average

inaugurated

from such

this

now

1924

STOCK EXCHANGE

ADVISERS

Amer¬

ican Can and Continental Can in,

&

The stock market is

&

stocks

are

Blyth

ley of The First Boston Corpora¬

Union Oil of California $3.75

ESTABLISHED

common

cellaneous

Glassmeyer

Weld & Co., and Duncan R.

shine Biscuits.

JAMES M. TOOL AN & CO.

members

Governors

with

Co., Na¬
tional
Dairy Products, General
Foods, General Mills and Sun¬
Other

new

of

to

isfactory yields in this group are
available on the following com¬
mon

for

Board

shown

merchandise com¬
petitively and to bring out new
ability

the

Co., Inc., Francis Kernan of White,
Lins-

Safeway Stores 4%

from

an

Bogert, Jr. of
&,
Co.,
for

Dillon

Edward

industry should also
industries you will elimi¬ be of interest to you, but here I
would stay with the well-managed considerable analytical effort in¬
your
consideration.
And you will be even more sur¬ companies whose inventory prob¬ volved.
lems
are
relatively
small
and
many

Merrill

Fenner

Nominations
of

better than you will get on bonds
that it is fully worth the not in¬

food

Iglehart.

of

Treasurer.

age about

C.

Mr.

Lawrence

Eastman,

Rohm & Haas 4%

never

stocks in

Pierce,

H.

and

International Paper

At

common

Iglehart

& Beane
has been nominated for Secretary

Hercules Powder 5%

mon

present, the

W.

A.

Woods

A

Lynch,

W. T. Grant 3%%

because of its basic im¬
portance and
relative
stability.

money

succeed

to

Richard

Motors $3.75

Scott Paper

J.

Vice-Presi¬

Dow Chemical $4 "A"
General Mills 5%
General

for

nated

G. C.

ous,
inflation-hedge
crude
step is to apply certain producers such as Amerada

The next
statistical

Sioux Oil Co.




Society of

Iglehart Nominated

Vk times

a

I

Parke, Davis & Co.

products

HAnover 2-9335

Third

alysts, Inc.

preferably
a

May 9,

the

coverage,

would apply my

I

and

on

in

five-year average
but rather would

a

criterion,

a

Minnesota Mining $4
Merck $3.50

new

Producing, Refining and Distributing Company

67 WALL STREET

York

guide with respect to statistical
requirements.
I would not ac¬
cept the legal 1^-times overall
a

coverage

Angeles

available

Journal/' published by the New

liberal

too

Societies,

Quarter Issue of "The Analysts

to investment in
preferred stocks, again let me say

duPont, American Cyanamid and

whose

A

fa¬

of

products,
The oil industry affords a good
not from a press agent's stand¬
field for investment, but it is also
point, but from a standpoint of
very popular.
In fact, oil shares
profits.
And the management have been market favorites for
develop

ability to

earnings

step involves

tive

going to

am

discussion

be

Preferred Stocks

that

of

Federation

Analysts

and in Los

sinking fund

industries, and representa¬
companies in them, whose

great

achieved

in

vored

time, I

a

National

held in San Francisco, May 5-6,

regard

to have

To conserve

the

Financial

will

price

third position in the industry un¬

the

consideration

an

Suitable Common Stocks

much,

purchase of industrials is that the

paramount

not

tainly has its place in investment

The company we select
must be of adequate size, that is,
it should have a first, second or
panies.

dends,

and

but

course,

by any means for
knowing what to avoid most cer¬

suitable

not

ramifications to

of

nancial Corp.

With

PROCEEDINGS

purpose.
Un¬
rather than
ing will take
fortunately, some of these indus¬
the
company.
It must be
an
place in con¬
tries are so greatly favored that
essential industry, an industry of
nection with
stocks identified with them do not commons because a good common
some size, and a growing industry,
the Bond Club
afford you enough yield to make is better than a poor preferred
and by growing, I do not mean
Field Day on
the risk of ownership worthwhile. any day and you will probably be
that its physical volume produc¬
June 6.
While we should all be "growth well ahead of the game in the
tion has merely kept pace with
Wright
run.
stock" minded, I don't think that longer
Typical industrial
population gains.
Duryea
of
you should overdo it to a point preferred stocks that I believe are
If the industry meets these two of
Glore, Forgan
accepting far below average both legal and attractive are as
&
Co.
has
elementary but basic requirements yields.
For example, I like the follows:

examine the industry

two

erage.

are

one

consolidate

adequate cash, as well as belowaverage inventory turnover. Divi¬

cov¬

They

ciples govern
whether one is
thinking in terms of preferred or
stocks.
Of course, they
can
stand considerable elabora¬

not

for a

should not favor
aircraft, air
transport, auto parts, most indus¬
trial machinery lines, meat-pack¬
ing, non-ferrous metals and metal
fabricators, steel, television, mo¬
tion pictures, railway equipment,
vegetable oils, shipping and coal.
all.

common

called

coverage")

lot somewhat easier
a
few industries

analysis work.

of our first

to

inventory

This is the negative side of the

be

to

COMPLETE

ex¬

which I feel you

at

quate, rather than legal statistical
yardsticks, I should first like to
mention certain basic principles
which I feel should cover indus¬
trial stock selection.
These prin¬

the
amount
of
the
dividends
paid.
Preferred stocks of a corporation
may be bought provided the net
earnings available for fixed
charges and preferred dividend
requirements
(that is,
the
so"overall

equal

consider

I

listed

ideas as picture, of
ade¬ impractical

turning to my

what

to

for

to

vulnerable

have

I

Stocks

Industrial
Before

industries,

of

To make your

Selecting

Basic Principles in

amending the
New York State banking law in
relation to the investment of funds
The

Thursday, May 8, 1952

of the Fifth Annual Convention

ing industries I would consider
ample, which I would drop from Ingersoll-Rahd; in the business
consideration
altogether,
either machine field, National Cash Reg¬
because they have matured, are ister and Addressograph; in con¬
too
young, are not essential in struction, Johns-Manville, and of
the credit companies, C.I.T. Fi¬
peace and war, are too cyclical or
number

change or to competitive pricing.

principles to be followed in selecting industrial issues. Lists
among industries whose stocks are suitable for savings banks:
(1) oil; (2) retail distribution; (3) food, and (4) electrical
equipment. Names also suitable preferred stocks, and estimates
a
good portfolio of industrial common and preferred stocks
should yield 4.7%.

.

are

too

McKnight explains recent New York Act permitting sav¬

.

at

which

.

New York

Associa¬

Volume 175

Number 5114

The Commerciul and Financial Chronicle

...

The

Electric

Economic Propaganda?

„

Trade

Commodity Price Index
Auto Production

Industry

Business

This is the
visit to

J
steadily" rising
tendency.
Total
industrial
output was
very
•slightly under the high level of a year ago and about 10% below
-the all-time high reached during World War II.
While

production
goods,

tool and chemical

Claims

,

continued

near-capacity

to
lag
schedules

in

textiles

prevailed

plants.

and

;

.

for

•

•.

■

most

reduced

output

to

thin

a

trickle.

It

was

100.6%

weeks.

International

the

Broadly

estimated

„

.

t

Economic

statements

issued

on

this

to

country last week by a
delegation of seven working trade
unionists

who

visited

France,

land,

Po-

Austria,

Italy,- and the

.

Soviet

Union;

steel

strike

the request made

.Chief

Murray

/their jobs.'

that

Pine's decision that

the April 8 seizure

of the industry

was

un¬

The
men

steel

companies generally started recalling maintenance

days after it

The strike

precipitated by Judge Pine's ruling.
; But it reduced steel
output by at least 800,000 tons and much addi¬
tional tonnage will be lost before the mills are back in full
pro¬
was

willing

minority of

industry, is

now

trying to force pistol-point bargaining on the
feeling the pressure too.
Government seizure of

steel companies has so far turned out to be

Setting forth its

•

zine

states

that

it

not

kept

the

cost bill

onto

Now

the

that

facts

of

life

decision

on

troubling
The

touring

whose

names

weekly asserts, the outlook for
early agreement is brighter than it has been for several weeks.
For one thing, Mr. Truman may decide it is extremely
important

York

Administration,

to achieve

Pine's

a

this

trade

settlement before the Supreme Court

Local

reviews Judge

as

important

as wages

WSB

recommendations

On prices, the government

This

later withdrawn.

case

was

then.

which

for

were

figures.

30

cents

offered

once

Another dollar

Edward

and

risen

since

the

Administration

an

agreement

is

not

reached

before

be

ton.

bitter

week's

trade

lion tons from the
II

more

the

than 30

previous shutdown April 8.

million

net

tons

strikes, this trade

of

steel

paper

Since World War

production have

been

Continued

pleased to

the installation of

on

page

Direct Private Wire to

Conrad, Bruce
LOS

&

Co.

ANGELES

Angeles Stock Exchange

(CIO),

jj-

Paterson,

1

T

one

a

•+

tt

Geddis, Local 306, United
RrnthcrhooH
of
Carpenters
Brotherhood
of
Carpenters
Joiners

and

Newark,

(AFL),

due

no
nf

r

sicKness
sickness

to

cents,

many's Parliament this past Tuesday?

Primarily,
bered
as

of

oia
oW

Soviet's

such

course,

slave

labor

the

Actually

Russian

sp®ed_up

Lab?- ""'T c?nSt.,

machinery for harder and

longer
Bereft of the strike privi-

power; and

the formal protecinto

written

the

charters

greater application than
guarantees of civil libeities

saw

no

war

conference.

class discrimination.

conveniently
slave

Hence, they

there

conclude

labor

reactin&

passports of Messrs. May¬

bray

and

U.

nor

camps

entirely

Russian

of

textiles remain

the

in

talking stage, if
Actually, the record

shows

the

that

Soviefs

foreign

trade has always been negligibleoccupying

in

osT of

1938

prewar

but

toFaT production!

its

against 10% in the United States,
25%

in

England

ancj 50%

Germany,

and

jn Belgium

Thg

Un,s

.

de of

socialjst

h

is

state

entire]y

different fr0m that of the capital^ countries.
The Soviet Union
w]p

only,

able

to

State

are

pay
can

on

plans,

barter basis, imindispens-

a

is

the

actually

furtherance

and

the

of

exports

only to
for its planned imports. One
only barter with the Tartar!

The

Conference-technique, our unionQnuiot
ists
typically played the Soviet

to this writing the

millions

anywhere.

class

Kremlin's

up

38

orders for British

.

the

wares are
As a matter

known

scarcities

soviet Union also
_prit„

tK_

nf

belie

Kremlin's

in

the

the

sin-

tpmnti™*

centy of the Kremlins tempting
Continued

in extolling the meticulous

on

page

rL1-Lm"LXn.nj-Ln_n.rL-LTj-L;T7L-LTJ~L"L"L-l

State Department represen¬

S.

tatives

Bosak

were

their

on

lifted

arrival

by

home

at

29

Findings
are

(?)

some

ANNOUNCEMENT

findings

in Europe

of their

remark¬

ren:

(?)

and

we

they

Invariably,
to

pressed

us

the

fact

always admired
tradition

of

all

living

our

lives.

Reilly & Co,

.

.

important
to

.

Their

influence

the domestic and

They

that

could be
happier

unions

with

opening of

new

acting

of

as

UNDERWRITERS, ORIGINATORS OF OWN

Amer¬

freedom.

standards

ex¬

that they

the

offices for the purpose

went, people
us
that they desired peace
friendship with the United

States.

ican

announce

[including the

"Everywhere

Soviet satellites!

raised and they could live

ISSUES, AND TO ENGAGE IN A GENERAL
INVESTMENT BUSINESS

have

regard

foreign poli¬

44

WALL ST.,
I

NEW YORK 5
"
.

Incorporated

YORK, N. Y.

'

cies of their
unions

NEW

Lancashire

of £act- even wlth the Conference

manufactur- port what

ing, no slave labor camps, nor any

remem¬

most

there *or the asking.

no

They

it must be

for

transactions,
for fulfilling the vaunted role
Britain textile industry savior,

boasted

there, of

camps or in America's Sing Sing

work.

that

S„ov)et buyel'Ts need no elaborate

unern-

incfnf
or

the demands for trade

are

„t;+u the East voiced in West Ger¬
with

machinery>

is

the

in

game>

above-cited

N. J.

The

their




Neither

*n

the

of

are

serious, in terms of dollars and

Union

of

(AFL),

most

statements

.

have

stressed the need for peace so

J. F.

nn1

Fncomelue

the

Joiners

and

Robert

have
Members Los

because there is

income

tions

•

How Much Actual Trade?

While

eyes

Soviet

The

discrimination.

told

OF

rsicl

fear

countries.

derived from
their European traveling, as re¬
ported to their labor union breth¬

announce
a

seen

own

our

only peace, not war. . . .
The workers are relaxed, cheer¬
ful, and no speed-up was in
evidence. These are free people

America

able

are

ears.

no

Here

We

and

have

we

wants

ing

member

other

Idlewild Airport.

declares.

.

with

(AFL),

Joiners

Silverman,

■n

steel

industry 1.5 million tons of
The industry suffered the loss of another 1 mil¬

lost production.

lost because of

cost

what

United Furniture Workers of

the

defeat for the Administration.

shutdown

is

heard

Car-

Philadelphia.
Theodore
Bosak,, member
of
executive committee, Local 92,

would

last

and

penters

Mr. Murray
probably call another strike.
The final
give-and-take
might be long and bitter, and might rock the industry, it adds.
When the final figures are reported it will be found that
a

"This

which our visiting apologists so
executive board, Local 1073, joyously noted in the Soviet ConUnited Brotherhood of Car- stitution.

Supreme Court
ruling, all parties might lose. Should the Supreme Court uphold
Judge Pine's decision and return steel companies to their owners,
it would

oh^~

tlW

vations about the most stringent
P°lice State in history:

1050,

of

Philadelphia, Pa.
Morris

journal observes.
If

Local

jority from the United States and

for

iege> the worker has no bargain-

Brotherhood

penters

the bitterness

intervened, this

(AFL), Roch-

Gibbs,

United

might have settled the

Major deterrent to quick settlement is

has

per

Common

ester, N. Y.

by industry

$4.50

rnmmnn

i

Laborers Union

'''
In actual dollars and cents the negotiators are not so far apart
as to make
settlement hopeless.
The best industry offer so far
has been a 20-cent per hour package, including 12V2 cents wage
increase.

RnUrtlnv ai
Building and

r,w«

ners,

dustry considers this issue to be fully
prices.
■
V'Vr'V

t r»r>ai

Or«cirior.f

political

^

Jersey

Conference,
been over-

have

recognizable as
propaganda by t he objectiveinitiated of the public, one of the
class h:ey questions posed by the Conparference-technique is the amount

working

and

the

attended

would

had

dele-

of additional trade that was created.
For
example,
just
how

pnson'

ruling against seizure.

the

unions

that

responsible

se-

'

81,

Deutsch, member, New
Typographical
Union
y
(AFL).

nhocW TDarrirti

For one thing, "The Iron Age"' points
out, the steel com¬
panies will not accept the union shop.
So far, Mr. Murray has
not budged—on any point—from WSB
recommendations.
In¬

.

(CIO),

and

tieg „

kept off the
delegate's

evident

be

whelmed by strategically-planted
flctl0ns embraced by the vast ma-

years.

trade

official

America

of

thou-

I

existed

unemployment

pgrsecuting

members,

Local

War

starvation

of

and

union
were

World

The peasants were
poverty stricken, anti-semitism
was
widespread and semi-fascist
government
ruled
the
country,

City, N. J.
also

died

United Packinghouse Workers

Arthur

is

unemployed people today,

organizations

Charley' Maybray,

industry operating; it has
law"; it settled nothing,
thrown
another huge

for settlement

pressure

or

many

list, consisted of the following:

being felt by

the

this

trade

our

correct
is still

they reported: "There

starved, ill-clothed, home-

sancjs

industri-

(the

should

they

no

whereas after

and business leaders).

industry.

the

a

alists, despite their understanding
the relevant political and eco-

been ruled illegal since it "lacks basis in
and
on-again-off-again operations have
•

attendance at the

responsible

Conference's

dud.

to support this contention, the maga¬

reasons

has

a

also> how

of

Pressure for settlement of the steel wage price case is grow¬
ing, according to "The Iron Age," national metalworking weekly,
in its current summary of the steel trade.
The Administration,
been

it ialls

but

past and future conferences by

policy

has

be

eoffen-

when

is

ears,

futile would

nomic

which

efectjve

propaganda

duction.

■

May

P e a c
S1V6

on

to prepare for the return of production workers.

ended

A. Wilfred

y P°W

■

Poland!

Happy in

Of Poland
are

vere

n0i #°

It

representative
gates

All

tions illustrate

the 650,000 steelworkers to return to
time, both the government and the steel
Supreme Court to review Federal Judge

constitutional.

con-

duct and reac-

same

the

it has resulted in unemployment, stration of this peace offensive's
ruinous inflation, and was bring- strategy!

less

•

on

instructed

asked

in

Moscow.

with the "People's Republic

ness

ing the workers to the depths of

Conference

the

production and

a

desperation."

Economic

arms

lower taxes; in agitating for busi-

said that the French workers see of China" to prevent unemploythe difference between the Amer- ment here, and for doing away
ican working people and the gov- with the Battle Act which forbids
ernment leaders who pursue a war shipment of strategic materials to
policy. "He told us France wants the
Soviet bloc by our aidno war of American aid because receiving allies. All a good demon-

International

Friday, last. Assenting to
by President Truman on Thursday night, CIO

At the

companies

called off

was

would reduce

partici pation in the

of

150,000 jobs
industry; in

representing that East-West trade

including

•

million

Soviet purchases and
for our shaky textile

the United States a union leader
their return- in the construction industry who

Their

The

in flaunting the alleged
dollar figure
of

course);

series following Mr. May's
a correspondent covering
Conference in Moscow.

significant' are' the

Tuesday

on

steel-consuming industries had sufficient supplies for

next few

as

year
:

Steel
ingot production had been scheduled at
.capacity in the past week just prior to the shut-down

which

Soviet'Union

the

the

.„••••.

•

a

some

•

unemployment insurance benefits rose for
first time in three months and were about 23% higher than a

..-earlier.

fourth article in

in' machine-

.

practice effectively preclude a
silken curtain for economic inter¬
400-500

^

Failures

Sudden strikes in steel and oil In the latter
part of the period
ended on Wednesday of last
week, slowed perceptibly, nation¬
wide industrial production which earlier in the week showed
a

consumer

in

By A. WILFRED MAY

Food Price Index

and

criticism
(ignoring the completely unrealis¬
barring of the actual Kremlincreated political elements which
tic

Output

Carloadings
Retail

State of Trade

abstention from political

How Effective is Moscow's

Steel Production

5

(1913)

governments, for the
represent the voice and

wishes of most of the workers." *

In

France, they cited as repre¬

sentative of

prevailing reaction to

HANOVER 2-2244
u

44

The Commercial and Financial Chronicle

.

.

Thursday, May 8, 1952

.

(1914)

6

outstanding)
the

Outstanding Shares
; f
—A Lot

Littte?

shares

"Expanding Your Income"

For

dividends

tors have discussed
stock

passed

b

middle 50's.

per

ferrous metal companies, on

of ZE suggests that 1952 net
share may be around $10; and
the Zenith television, with espe¬

lion's share of these
shares is locked up for good, with

—

lead
funda\' mentally sufficient to take care of U. S. domestic requirements
and even present abnormal requirements should b^met by the

;

designed turret tuner, ap¬
Jersev owning 72.4% of Humble,
accrued, and
pears most adaptable for receiv¬
93.8% of Creole, 69.6% of Im¬
e
v
e
n
o cing the new high frequency sta¬
casionally, re¬ perial and 83.6% of International. tions that may emerge. Zenith has'
scinded.
But Only the minorities are actually
coupled consistently good man¬
in all this div¬ traded publicly, which gives them
agement with progressive re¬

or

idend talk you

heard

shall

very

little

in

notice

of

characteristic

divisor! To get

we

•;

_

Telephone and Tele¬

American

split.

stock*

a

get an idea about ho\y
little this factor is generally ap¬

past

the

in

have,

I

preciated,

couple of weeks, asked 30 people,
including three customer's brok*
to give me (without

.ers,

looking it

up) the share capitalization of any
two of the companies they might
Ibe

Well,

in,

interested

teould

not

one

within five million,

state,

the correct amount of outstanding

shares of Steel,

common

Standard

60

years

assets

of

date

through

of

most

can

have

we

been

of

domestic

the

postwar,

The

had

States

of

cess

and in

supplies in

withheld

an¬

improvement in
In the

ticipating steady
domestic

bodies
tween

seven

now

be

26%, to domestic

The Revenue Act of
provisions of-,

production.
made

1951

has

ore

new

developed be¬
and 1955 adding some
to

are

240,000 tons, or

of

supply.

copper

States,

United

recent

employment

peak

of

from for¬
lessened refined
Domestic
scrap

ticipation of higher prices, thereby
adding to the tight supply picture.
There are sound reasons for an¬

ex¬

tons

100,000

imported

on

copper

imports.

dealers

insuf¬

annual

average

production

copper

years

an

nearly

cents

and

ores

metal

our

United

the

that

indicates

27V2

The natural attraction of

of refinery

eign

out in the table below,
on the basis of the figures

spelled
which,

a

and

tion

state
de¬
status
is

changed

against

foreign copper to the higher mar¬
kets decreased
domestic produc¬

of either war,

care

garrison

or

mands.

used,

being

production

ficient to take

metal,

red

pound as

per

cent ceiling for domestic cop¬

copper.

consistent

a

cents

per

the

held.

still

was

importer

in

turned

and

non-

24 Vz

-

hunk

a

leading

many

<

-

certain

of fering relief and incentive to the
nearly
500,000 tons,' the
latter mining industry, including a pro¬
the last
three years built up its position
equivalent to -some 28% of our vision which permits deduction
from
income
of expenditures
needs.
among the top three oil companies
made in
the
development of a
and has importantly developed its
"Some variation from these re¬
man of Barber.
If you do not op¬
mine. Suspension of import duties
crude production. Its common has
erate on the principle that com¬ sults might be obtained based on
until Feb. 15,
1953, or unless
moved definitely into an invest¬
parisons are odious, then place the components selected from the
prices reach a "peril point," will
ment status.
different series of available cop¬
Barber at 79 alongside two of the
provide incentive to foreign pro¬
General Electric is famous not big oils in Table I. Make the same' per statistics. However, the gen¬
ducers to ship to the United States
conclusion
of
continued
only for its market stability but comparison a year from now and eral
market, particularly if the world
for the fact that it has paid divi¬ then send me a postcard!
I'd like' dependency on imported ore and metal
prices continue the soften¬
dends without interruption sirice to know, too.
*
' metal is inescapable. Conversely,
ing trend in evidence since the
1899.
this
provides a partial cushion latter
yMy final capsule picture of a
part of 1951. Relaxation of
talism

to

Just

example of enterprise cap-

a

as

20

the United States

though re¬
The next
decade, however, showed a bare
self-sufficiency, and from 1940 to

dividend graph is important in our analy¬
I Barber Oil Co. has only 377,000
you
merely sis since it has the largest list of
shares which stand to benefit'
divide the to- stockholders in America—o v 6 r
from (1)
ownership of 482,100
ta 1 sum of 1,100,000.
In fact, no other cor¬ shares'of Ame'rican
Republics, (2) :
money the di¬ poration in the world has so many
an oil terminal in Trinidad, (3) a
rectors
deem holders, holding so few shares of
company owning 8 T2 tankers, (4)
available, - b y stock and holding th e m for so
a 48% interest iri five 28,000 tonf
I-a U. Cobleiga
the number-of long a period, The $9 a year divi¬
tankers, and (5) a joint interest
outstandin g dend here, sustained for 32 years
(with Standard of California) in
shares—the divisor.
And this di¬ without interruption, makes T,
a
company producing gilsonite —
visor can have a very important with its $12 billion in assets, the
solidified oil to you. This is quite
classic

position

of

basis of earnings outlook,

'twenties this position,

any

bearing on; y o u r
stockholder.

Even

duced,

good news and dangles in front of

investors the possibility of

>

shares

common

exporter of copper on bal¬

was an
ance.

first

the

For

Copper:

permits rapid market response to

compact

more

Advises

of this Century,

Small capitalization here

search.

copper,

again be selectively accumulated for long-term holdings.

cially

moment, to be

a

capitalizations.

the

about

which

volatility,

the

often

have

supply and demand situation of

Concludes v/orld supply of these metals is

and zinc.

ing

figures,

the

loading

e e n

the

since

cash, big and little, de¬

and

clared,

have

commenta¬

security

years,

Macurda analyzes

dollar invested basis,
large a horizon for

per

a

Limiting his remarks to the heavier non-ferrous metals, Mr.

present as
profit as Zenith Radio with only
492,000 shares. First quarter earn¬

companies

passing comment on the relative merits of
with many or few shares on the market.

Some

r

on

the

on

By DONALD B. MA CURD A*
Asst. Vice-President, The First Boston Corporation

13,881,000 common
market might not,

its

with

RC

By IRA U. COBLEIGII,
Author of

Outlook for Non-Ferrous Metals

field,
most analysts go down the line
for RCA, and with good reason.
I'd like to suggest, however, that
and television

In the radio

or a

at .half

Empire

or

price.

anywhere.

of net in 1951
(up from $1,367,150 in 1950). Mr.
T. Reiber, former Chairman of
Texas Company, is Board Chair¬
about

Socony Vacuum has in

$2,600,000

shown

deficiency

average

an

,

of New; Jersey or

General Electric.

Thus, not one could appraise, with

what the effect, per
share, would be if net income of
any of these enterprises increased,
or decreased say, by $20 million.'
any accuracy,

•

little junior model

This

low

to me the

astronomically

numerous

ex¬

tant shares of some of our corpo¬
rate titans.

Table I
'

is Nashville,
million shared corporations reads Chattanooga
and St. Louis RR.
like a Who's Who in corporate Co. with only 256,000 shares on
America; and in this echelon are the horizon, 75% owned by Louis¬
found not only the building blocks ville and Nashville. This well run
of the Dow, Jones Averages but carrier showed about $16 net in
favorite equities lodged in t h e 1951, paid $4,. which was defin¬

•

-

v..

Com. Slis.

Big Ones

87,453,000

N.

of

Standard

filling the qual¬ with Southern Pacific and Illinois
equities, Central in the same price zone.
with
classic
marketability
in
Bear in mind today's argument
breadth and depth.
is highly superficial and incom¬
rities handsomely

J

60,571,092

of

ifications

While

Oustanding

'

•General Motors

investment

of

most

like

45,141,000

those in Table I, for persons

Amer. Tel. & Tel

32,832,000

ing to forego maximum market¬

Socony Vacuum

31,801,880

ability, consideration is suggested

General Electric

78,846,000
28.806,000

of Calif.___.

Standard

Co.

Texas

S. Steel

Gulf

____

Roebuck

Sears

23,647,000

_____

Kodak

Co.

Columbia

Gas

Westinghouse

______

Table II
Com. Shs.

Small Ones

Zenith

Outstanding

Radio

492,000

____

Superior of Calif
Woodley Petroleum

____

417,000

377,000

Wilcox

283,000

Co

Nash. Chat. & St. Louis._

Empire Trust Co.__

256,000

90,000

this list

half
and

a

is,

of

course,

roughly

one-

share for each man, woman
in
the United States.

child

Both by virtue of its

size, its emi¬
its profitability and its
army of stockholders, GM is not
only the bellwether of the Dow,

nence,

Jones Average but is probably the
most marketable stock
in
the
world.

with

over

60

million

{shares and its subsidiaries

a

split-up

First,
tion to

well
the

in

Table

I

as

and

up,

bounce

are

that

not afraid

small

capital¬

generate, then per¬
get ideas from the

can

listed
are

no

New

York.

$8.98

It

earned

shares in

80,000

this year.

in

1950)

1951
and

$10.36

(against

Jan.

on

a

.

On

members

1

will

offices

40

cussed, for the first time, Natural
Resources Management Corp., an

York

affiliate reported to
in natural .gas
and

When

have interests
oil develop¬

railroad

a

like

Northern Pacific, or a paper com¬
pany

like St. Regis, is thought to

have

land

with

some

potentiality

it has been favorably in¬
terpreted by the market.
Thus,

be

John Munroe, the Exchange
member, and Marcel H. Stieglitz.
are

Feldman
with

individual

Resources Corp.

market

iaries

Trust

at

it

equity.
as

I

and

to

a

less

leave

may

valuable

to

you

the deci¬

analysis of the question

which,
290

today, could create
gains, Guaranty
(one million shares

state

campaigns

age

on

of

compel

to

aluminum,

bly

based

as

is

as¬

2,177,000

induce

or

tionships
that

for

copper

are

appraisals of
supply-demand rela¬

and

current

the supposition

on

strict

controls,

about

three

pounds above

the

consumption level for the
five
years
1946-1950, which is
generally recognized as a major
boom period in our history, and
six pounds above 1940.
It could
be concluded, therefore, that un¬
der anything
like ordinary con¬
ditions the United States will not

average

erroneous

on

long-range

de¬

pinched for copper but rather
actively com¬

be

the industry will be

priving the country of the benefit peting for markets. Even should
of the operations of free markets, abnormal conditions continue, the
steps taken should bring balance
will be forever continued.
into the world copper picture by
demand

world

1951

for

copper

patently abnormal.
were
strongly af¬

was

markets

fected

by

the

armament

and

United States re¬
stockpile program

the middle '50s.

As to the outlook for the
for

many

material

uses

copper

found

to

date.

the substitutions now

metal,

is the best
Some of

being made

and the domestic market was fur¬

Mr.
&

Kaufman

member

of

*A

,

Fifth

disorganized

ties,

as

-the

by

read by Mr. Macurda at the
Convention of the National
Financial Analysts Socie¬

paper

Annual

Federation

PRODUCTION AND

an

Ex¬

on

repre-i

page

34

CONSUMPTION OF COPPER

Smelter Prcd.

Recovery

Total Smelter

from Old

and Old Scrap

Consumption

Ores

Scrap

Recovery

Excess

98,000

825,000

358,000

726.000

336,000
444,000

1,223,000
1,062,000
1,431,000

455,000

l,io0,000

494,000

the Pacific Coast at the
Mr. Harden was a

1946-50

1,736,000

978,000
795,000

1951

1,797,000

931,000

83.

?

"Based

account

after

on

U.

S.

Appa rent

Deficiency

1,425,000

1941-45

den, New York City.

Continued

from Domestic

1936-40

Har¬

would

"Apparent

Annual

Averages

partner in Baker, Weeks &

diversions

sobering inroad into tradi-?

a

(In Short Tons)

passed

Harden

sent

1952.

1,125,000
1,032,000
1,978,000

Walker

rumored

of

San Francisco, Cal., May 6,

Mr.

Co.

active

been

ther

Edward Harden
away

affairs,

of

substitution of other metals, nota¬

1926-30

Edward

recovery) might well
tons by 1955 as

scrap

reach

year's

several Washington au¬
thorities, is debatable. The indus¬
try feels strongly that current

of Wilson & Marx Inc.

not

bank

Last

manent

perhaps Empire Trust's interest in
Natural

of

sumed by

Mr. Stieglitz is an offi¬

change.
cer

and

Hettleman
has

Munroe

to

of foreseeable domestic

care

domestic compared with 1,806,000 tons last
copper shortage, in terms of mili¬ year, or at the rate of 26 pounds
tary
requirements superimposed per capita versus 24 pounds in
1951.
It might be pointed out in
on a high level of civilian activity,
this connection that
the former
was real. That this will be a per¬

with

formed

City.
Arnold Feldman, Ernst B. Kauf¬

Mr.

sufficient

be

will

sources

take

Co.,

man,

ments.

;
the 1950 level.
Tot a 1 supplies
question of where the sup¬ available for domestic consump¬
tion
(exclusive of changes in
ply is coming from is less impor¬
tant than whether copper from stocks on hand or in the volume

will prove temporary. Others, re¬
superim¬ flecting the overcoming of initial
posed price and material controls. inertia to use of a new material;
Wall
Street, New
World prices reached a high of
will be continued.
A few of the
Partners
will
be

Exchange,
at

(namely, Chile, North¬

areas

The

the New York Stock

of

ing

year.

All

&

the

from

foreign

ern
Rhodesia,
Canada, and the
indicate,
as
the
limited
Belgian Congo) could add another
availability of copper from all
131,000 tons to domestic supply,
sources
(foreign, domestic and;
simp],y by a return of domestic re¬
secondary
recovery
from
old finery production from foreign
scrap) retarded consumption last ores and of net refined imports to

The

Steiglitz

increased

and

alone

Stieglitz Co.

June

metal
production
other principal produc¬

world scramble for the

the

ably deeper than the 1951 figures

in

and in
its annual report for 1951, it dis¬
well managed bank,

very

more




big ones?

or

do¬

falling

abnormal levels
of demand. This cushion is prob¬

New NYSE Member Firm

14,

It's

What'll you have, little

To Form

on

voted distribution of another 10,-

sion

really

ones

I direct your atten¬
Empire Trust Company of

Imperial Oil with 29,847,000, and
International Petroleum with 14,i 24,000.
Counting these subsid¬
would

which, on a whippet model capi¬
talization, zoomed from 26 % to 78

two.

or

make

however,

as

of

may

slouches either—Humble with
35,051,360; Creole with 25,865,310;

in,

babies

But if you're
willing to risk wider swings, down

formance, worth while extra div¬
idends and perhaps, in due course,

for oil,

Standard of New Jersey is second

share

just about tops.

For those in search of volatility

000 shares to stockholders.

Leading

General Motors with

million
are

to

present

demand.

izations

pressive market response.

423.000

Barber Oil Co
Oil

—

small

22,691,000

Eastman

at the other extreme

of shares

off from

yield. For elegan.ee,
standard and dependable values,
for sustained marketability and
high collateral value, the multi-

haps you'll
And
16,537,000 rather than stability Table II is samples in today's article.
Here
16,306,000 offered.
snug,
cozy
and for historic background, there are
the big gyrations in Superior Oil
16,300,000 compact
capitalizations
suggest
to
review, and the record of
15,438,000 the possibility (if earnings justify
Petroleum
common
same) of splashy market per¬ Woodley

Oil

Southern

will¬

capitalizations where g o o d
28,673,192 news, or improved earning power
27,521,000 may more rapidly and acutely be
translated into perhaps more im¬
26,110,000

Carbide

Union

mestic producers from any

all

safety and

protection

tariff

through

plete, and definitely beamed more
toward capital g a ins than for

the vol¬

of shares

direction

and

ume

adher¬

the Dow

ents base their moves on

du Pont

U.

equity

of

ness

*

small-issue

useful¬ leading private and investment itely on the Scotch side! Net cur¬
presenting the tables be¬ trust portfolios in America.
Here rent assets alone are some $40 a
showing, in the first instance, in this group are contained secu¬ share.
Try comparison of this

poll suggested

the

Gallup

of multi-

In fact this whole list

Bureau of

J
547,000

_____

refined copper for
plus secondary recovery of old scrap.

Mines withdrawals of new

certain adjustments

30,000

486,000:
496,000
domestic

Volume 175

Number 5114

.

.

.

The Commercial and Financial

New Issue

Chronicle

(1915)

.

$02,720,000

4%, 1.40%, l'/2%, 1%%, 1.90% and VAX Housing Bonds
To be dated

May 15, 1952; to mature

as

'

York City.

shown below. Principal and semi-annual interest (November 15 and May 15) payable in New

Coupon Bonds in denomination of $1,000, exchangeable for Bonds registered

as to

principal and interest

in denominations of $1,000, $5,000, $10,000 and $50,000.

-

:

Interest

Exempt from Federal and New York State Income Taxes under Existing Statutes and Decisions

In our opinion, these Bonds meet the requirements as Legal
Funds in New York and certain other States and for Savings

Investments for Savings Banks and Trust
Banks in Massachusetts and Connecticut

These Bonds

are
acceptable to the State of New York as security for State deposits, to the
Superintendent of Insurance to secure policyholders and to the Superintendent

of Banks in trust for Banks and Trust

In the

Companies,

opinion of the Attorney General of the State of New York, these Bonds will constitute valid and binding general obligations of the

State of New

York, and the full faith and credit of the State will be pledged for the payment of the principal of and interest on the bonds.

AMOUNTS, MATURITIES, COUPONS AND YIELDS OR PRICES
Due
The State

15,1992,
•

or

reserves

or on any

$1,280,000 each May 15, 1954-2002, inclusive
the

privilege of redeeming, at

par

all of the bonds of

a

Coupons

1954

4%

4

.95

1956

4

1.00

1957-58

4

Due

.90%

1955

1.05

4

•

Prices

Prices

or

Yields

1%%

100 (price)

1982-83

l%

1.80%

1984-86

13/4

1.85

13/4

1.90

1989

1966

1978-81

1.90

100

or

1.40%
1

Coupons

1987-88

1965

Due

1.35%

Coupons

1.40

1967

1.40

1.40

A

1.45

1968

1959

May

Yields

Yield

Due

to

on

single maturity beginning in the inverse order of their maturity.

Prices
*

value and accrued interest,

interest payment date thereafter, all of the bonds maturing 1993-2002,

1.50

1.10
1969

100

V/2

1960

4

1.125

1961

4

1.15

1962

4

1.20

1963

4

1.25

1974-75

1964

4

1.30

1976-77

>

100 (price)

1990

1.90

1991

1.90

1992-96

1.90

1997-99

1.90

2.05

1.70

2000-02

IV4

•

;•

2.00

1.65

'

99

1.60

t

1970-71

V/2

1.55

1972-73

m

991/2
'

1V2

~"jT| m.iTTn?

733/4

(Accrued interest to be added)

The above Bonds

are

offered

subject to prior sale before

and if issued and received by us and

or

after

appearance

of this advertisement, for delivery when,

as

subject to the approval of legality by the Attorney General of the State of New York.

Interim certificates will be issued pending the delivery of definitive bonds.

The National City

First National Bank

Bank of New York

Bankers Trust Company

Lehman Brothers

J. P. Morgan & Co.
Incorporated

Halsey, Stuart & Co. Inc.

Harriman Ripley & Co.

Smith, Barney & Co.

Glore, Forgan & Co.

Phelps, Fenn & Co.

Incorporated

Lazard Freres & Co.

Union Securities Corporation

Goldman, Sachs & Co.'r

Continental Illinois National Bank and Trust Company
of

The First National Bank

Paine, Webber, Jackson & Curtis

of Portland, Oregon

Chicago

Merrill Lynch, Pierce, Fenner

Eastman, Dillon & Co.

Drexel & Co.

Wood, Struthers & Co.

Roosevelt & Cross

Hirsch & Co.

Wm. E. Pollock & Co., Inc.

^

of St. Louis

Robert Winthrop & Co.

Harris, Hall & Company

~

Alex. Brown & Sons

Stroud & Company

(Incorporated)

The Boatmen's National Bank

& Beane

Incorporated

Ira Haupt & Co.

Braun, Bosworth & Co.

'

Incorporated

Hayden, Stone & Co.

Aubrey G. Lanston & Co.

American Securities Corporation

Bacon, Stevenson & Co.

Central Republic Company

National State Bank

Trust Company of Georgia

G. H. Walker & Co.

Eldredge & Co,

Andrews & Wells, Inc.

City National Bank & Trust Co.
Kansas City, Mo.

Newark, N. J.

Company

Mackey, Dunn & Co.

Tripp & Co.

Newburger, Loeb & Co.

Incorporated




Incorporated

Incorporated

(Incorporated)

May 7,1952.

t

Dick & Merle-Smith

Incorporated

Incorporated

Shearson, Hammill & Co.

E. F. Hutton &

Coffin & Burr

•,

^

■

•.

Inc.

7

8'

The Commercial and Financial Chronicle

(1916)

■

Against SEC Taxes

Though justifying charges made by SEC and other government
agencies for services rendered, Mr, Crooks protests against
imposi ion of registration fees on brokers and dealers and cer¬

fundamental

electorate is

and

Points out, under Securities

To

The

Committee

Appropria¬

on

be

in

its

pendent
Bill

oh

report

Inde¬

the

Offices Appropriation
1952,

of

business.

Securities

the

of

section

The

out

and

gov¬

with which we are particu¬
larly concerned is the proposal to
impose on every broker a n d
dealer an annual "registration

receiving

for

of

many

the

fee"

"services
which

it

ders to

pro¬

gram

full

return

Commission

Exchange

$10

special

ren¬

of
on

$50, plus a "head tax" of
certain classes of their em¬

The Securities Exchange
compels brokers and

ployees.
of

Act

beneficiaries."

1934

register "in the national

dealers to

Title V of the

public interest," not in the inter¬

Independent

est. of the brokers or dealers.

Offices

Bill

Richard M. Crooks

presumabl

y

the

that

it

believe

curities

entirely

than

more

broker-dealer.

the

not

remedy that situation.
We

may

with such

connection

in

render

proper

100

govern¬

Acts

Se¬

The

give broker-dealers
franchise

exclusive

no

special

or

use

agencies

than

rather

pub¬

by

tax¬

generally. It is certainly
appropriate for the Securities and
Exchange Commission to charge

payers

for its

publications. In view of
costs, the Commission's

rising

to increase the fees

proposal

for

photo duplication undoubtedly is
justified.
However,
which

charges

the

of

Securities

the

type

and

Ex¬

and

issuers of registered secu¬

on

rities

Section

under

1933

Act.

of the

.

I

-

An

6(b)

That
ture

inequitable tax struc¬

an

result

would

ation of

than

more

taxing

from

within

units

the

cre¬

hundred

a

the

new

Federal

the fact

the Securities and

not

Exchange Com¬
mission is the only Federal agency
or corporation which has
publicly

by Mr. Crooks before
the Securities and Exchange Commission

announced, since the adoption of
the 1952 Appropriation Bill, any

change Commission would levy
brokers
*A

dealers

and

are

on

statement

the

Committee

on

In¬

intention to

Foreign

Commerce

of

the

of

Subcommittee
and

terstate

House of

of

Representatives, April 30, 1952.

this

franchise taxes

assess

Were

nature.

all

other

to

to

power

delegate

agency

yet, to
agencies

different

Committee

that

Title

V

of

Independent Offices Appro¬
priation Bill of 1952 be amended

promptly to make it clear that the
field within
ent

the independ¬

which

the

may

services

which

purchase

subscriber

a

not

or

purchase

If taxes

are

Halsey, Stuart &

(May 7) of¬
fered $20,000,000 New Jersey Bell
Telephone Co. 32-year 3%% de¬
due

102.824%

and

bonds

1,

May

accrued

1984

at competitive sale

6

at

interest.

awarded

were

group

the

to

bid of 102.174%.

the

toward

of advances from

apply
repayment

American

Tele¬

phone & Telegraph Co., which

are

expected to approximate $25,700,000

the

at

received.

the

time

proceeds

are

from

the

Advances

American Company are obtained
in

conformity with

an

established

companv

which it

expects to continue, of borrowing
such
company,
fts
need

from

arises,

for

general

cor¬

ments to its

by other agencies.

majority shares

this

on

Myron Kunin

&

PRIVATE

INVESTORS

is

of

point out that, to the
charges fixed by an inde¬
we

extent

to

seem

follow

inefficient

more

and

that

extravagant

Representatives

as

resentatives

was

ence

Shore

based upon the bitter experi¬
of our colonial days when
were

not

obtained from **•»
c,

be

Circunr can

broker

cum

under

the

levied

by

responsible

those who
to

the peo-

-'J-V"'.is

people

right

a

of

voice

to

the

to

co*

representatives

their

disapproval

taxes

Established 1931
Rroadway. New
3by

York

4-4500




a

tax

has

bill

61

Reilly & Co., Incorporated,
New York
City,

Broadway,

have announced the installation of
direct

bers

private

wire to

of

the

Los

Conrad,
Angeles, mem¬
Angeles Stock

of

approval

where

we

merits

or

York

5, N. Y.

as

as

been
you

can

to
are

come

Speculative Oil Stocks—Bulletin—West and Company, 26 Jour¬
nal Square,

resentatives';

doing today,

our

of

the

particular

elected rep¬

Jersey City 6, N. J.

Selections

Walnut

•

»

•

LOS

ANGELES,

Annual

Field

Club of Los

Day

Calif. —The
of the Bond

Superpower Preferred—Review—Ira Haupt & Co.*

American
Ill

Broadway, New York 6, N. Y.

:

.

Mitchell

Inc.—Bulletin—Remer,

Anheuser-Busch

Reitzel,

&

Inc., 208 South La Salle Street, Chicago 4, 111.
Ashland

Oil

&

Company—Analysis and supplemen¬

Refining

tary bulletin—A. G. Becker & Co., Inc.,

120 South La Salle

Street, Chicago 3, 111.
Bank

Ryons

America—Memorandum—Lester,

of

Co.,

&

623

Hope Street, Los Angeles 17, Calif. Also available are
memoranda on Boston Edison Co., Bullock's Inc., Canadian

South

Superior Oil of California, Ltd., Central
vice

Illinois Public Ser¬

Co., 'Great Plains Development Co. of Canada, Husky

—

Bulletin

Eastman,

—

Dillon

Herbert Lax

Transit Authority

Chicago

Broad

Witter & Co., 14 Wall

—

Bulletin

—

Schwamm

&

Co.,

Christiana

Securities

Co.

James

Dole

—

New

bulletin

—

Laird,

Co.—Analysis—Leason

Engineering

Bissell

Service

&

Co.,

Inc.,

Company—Analysis—Loewi

& Co., 225

East

Street, Milwaukee 2, Wis.
Continued

Kerr Mc Gee

*

Primary

on

page

The Market

Tennessee Production

Republic Natural Gas

Markets

securities business from
at 45 Nassau Street.

43

Acting better than

Hugoton Production

on

Request

Singer & Co.

Troster,
74

Nathan Blumengarten is engag¬

&

Street, Chicago 3, 111.

Members: N.

Blumengarten Opens

50

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

Vice-President of

Stanley Pelz & Co., Inc., New
York City, passed away suddenly.

a

15

Broadway, New York 4, N. Y.

*Prospectus

Herbert Lax,

Co.,

&

Street, New York 5, N. Y. Also available are data on KelseyHayes Wheel and National Supply.

Angeles will be held

June 6 at the Riviera Club.

offices

610

22, Pa.—Graham, Ross & Co.,
Inc., 82 Beaver Street, New York 5, N. Y.
Smithfield Street, Pittsburgh

Angeles Bond Club
Annual Field Day

ing in

Company,

&

Co.—Report—Graham

Cladmetal

Los

N.

Co., 1342

for May—Bulletin—Newburger &

Street, Philadelphia 7, Pa.

American

Mason

public

and argue

demerits

proposals before

hold

Also available are memoranda on Commercial

Solvents Corp. and Glidden Co.

Johnson

or

well

as

margins of safety; bulletin No. 90

on

second grade bonds;, bulletin No. 92 on the Baltimore &
Ohio Railroad—Smith, Barney & Co., 14 Wall Street, New

on

39 South La Salle

Exchange.

elected

When Congress has
before it, the practice

always

hearings,
/

Railroads—Bulletin No. 91
7

figures—G. A.

Stocks—Comparative

Common

Co., Inc., 70 Pine Street, New York 5, N. Y.

Saxton &

Street, New York 5, N\ Y.

American

their

other matters.

teluer &

New York.

Utility

Canadian Pacific Railway—Review—Dean

the direct rep¬

ple.
It

Offering

of

people. This
fundamental principal of our rep¬
resentative form of government

were

Cents per

Reilly Wire to
3

J. F.

a

the

taxes

Price 15

J. F.

Bruce & Co. of Los

originate taxes has al¬

performance over a 13-year periodBureau, Inc., 46 Front Street, New

Oil Co. and Kaiser Steel Corp.

been vested in the House of

ways

Ventures

redeemable

to par.

the

The power of the Federal Gov¬
ernment to

Oh

are

prices ranging from 105.824%

pendent agency take into consid¬
eration the costs of the
agency, it

subject to its jurisdiction.

Cheyenne

at

Quotation

Bucyrus-Erie

the agency, the higher the
charges
which would be levied on those

Offer:

and
improve¬
telephone plant.

The debentures

The

monumental

additions

proportions.

would

403 W. 8th St. LOS ANGELES

basis

sions,

Public

Value

intends to

company

proceeds

May

on

market

and

York 4,

Co., Inc. and

up-to-date.com¬

parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to

yield

associates yesterday

Company—Estabrook &

Over-the-Counter Index—Booklet showing an

National

Offers N. J. Bell Debs.

Standard Oil

Oil Company, Standard Oil

Co., 15 State Street, Boston 9, Mass.

to be levied for the

Halsey, Stuarl Group

The

of New Jersey, Ohio

Company

levied by the Congress itself.

a

particular reference to Atlantic Re¬

Company of Indiana and The Texas

privilege of doing business, such
taxes, in our opinion, should be

on

special reference to the
H. Lewis & Co., 63

fining Company, Phillips Petroleum Company,

chooses.

The

with

New York 5, N. Y.

Wall Street,

Oil Stocks—Bulletin with

he

as

Industry—Review

Helicopter Corporation—John

Piasecki

may

porate purposes, including exten¬

May

Harry

Optical Industry Co.

Helicopter

agencies of the government
levy charges is that of re¬

therefor

tax structure that could be created

in sound So.Calif. firms

An

govern¬

Law—Discussion

posed amendments—Nomura

the

practice of the

assessed

or

of latest draft of pro¬
Securities Co., Ltd., 1, 1-chome,
Kabuxocho, Nihonbashi Chuo-ku, Tokyo, Japan. Also in the
same pamphlet is an analysis of the Machinery Manufactur¬
ing Industry with particular reference to Mitsubishi Electric
Manufacturing Co., West Japan Heavy Industries, Ltd., Furukawa Electric Co., Tsugami Manufacturing Co., and Japan
Investment

Foreign

corporations.
We would like to recommend to

your

Companies—Analysis—E. F. Hutton & Co., 61 Broad¬

New York 6, N. Y.

way,

than 100

and

chise taxes levied by one agency
were
fairly related to those

s

In

of Preferred Stocks With Arrears.

ment

sion has

all

more

the question of whether the fran¬

We purchase

purchasing power.

issue of "Gleanings"

current

Finance

taxing

governmental

a

its

agencies and government corpora¬
tions to interpret Title V as the
Securities and Exchange Commis¬
done, there would still be

and a list of stocks likely

increased consumer

is a resume of Thompson
Products and of the Retail Trade Industry, and also a list

the

proposes

—or, worse

Government

itself, is shown by
that, as far as we know,

analysis of the building industry and

an

time. It is

bentures

Inequitable Tax Structure

benefit from

to

a n

of the releases and other

lications,

issue is

same

of American Machine & Foundry,

which

to levy at this
unthinkable, to us, that
Congress, in enacting Title V, in-

Wall Street, New York 5, N. Y.

Francis I. du Pont & Co., 1

privileges.

d corporations
The charges which the Secu¬
make adequate charges for their
rities and Exchange Commission
releases, documents, reports, an¬ proposes would be in addition to
alyses and publications. Thes e the registration fees imposed by
charges would be paid by the Congress on securities exchanges
"special beneficiaries" who make under Section 31 of the 1934 Act

ment

taxes

ports analyses, releases and other

"serv¬

any

Commission

the

Corporate Liquidity—Analysis of financial strength of Amer¬
ican business in the current issue of "Market Pointers"—

the Securities and Exchange Com¬
mission

registration is the general public,

enacted

was

which

ice"

1952

of

beneficiary of

The

Appropriation

the

parties the following literature:

powers.

principles in¬
believe, far more

we

send interested

to

In the

than

tended

pointed

ernment is not

are,

important

that

the

law-making

give

volved

in effect, taxes which must
paid by brokers and dealers to

remain in

its

of

pleased

understood that the firms mentioned will he

It is

The fundamental

are,

tives,

Recommendations & Literature

Congress itself.

rendered, but

charges for services

tions of the House of Representa¬

us, is
validity.

them, in addition, the
power to tax would make those
agencies almost as powerful as

SEC fees and charges.

new

government

which, it seems to

one

much

the
public interest" and not for a service rendered by
those taxed, or giving a special privilege. Says an inequitable
tax structure -would result if Federal Government permitted
more than hundred new taxing agencies to be "self-sustaining."
for

form of

Congress has already turned over
to
the
administrative agencies

national

Attacks constitutional basis

departure from our

a

Dealer-Broker Investment

the

to

of doubtful constitutional

Exchange Act, registration of brokers and dealers is "in

to

responsible

not

agency

employees.

to delegate the

to tax to an administrative

power

Chairman, Board of Governors, New York Stock Exchange

tain classes of their

ft, 1952

of Power

For the Congress

By RICHARD M. CROOKS*

Thursday, May

.

.

Unconstitutional Delegation

An

A Protest

.

Y.

Security Dealers Association

Trinity Place, New York 6, N. Y.

Telephone: HA 2-2400.

Teletype NY 1-376; 377; 378

Private wires to

Cleveland-Denver-Detroit-Los

Angeles-Philadelphia-Pittsburgh-St. Louis

Volume 175

Number 5114




.

.

.

The Commercial and Financial Chronicle

(1917)

This

is neither an offer to sell nor a solicitation of an offer
of these Securities. The offer is made only by the Prospectus.

announcement

any

to

buy

NEW ISSUE

New

Jersey Natural Gas Company
106,000 Shares

Cumulative Preferred Stock, 6% Series
(Par Value $20 per Share)
to

which

are

attached

106,000
Common Stock Purchase Warrants

expiring April 30, 1956
(Each entitling the Holder Thereof to Purchase 1 Share of Common Stock)

212,000 Shares
Common Stock
(Par Value $10 per Share)

OFFERED IN 106,000 UNITS
Each Unit
Series

consisting of: 1 Share of Cumulative Preferred Stock, 6%
(with 1 Warrant attached) and 2 Shares of Common Stock.

9

10

The Commercial and Financial Chronicle

(1918)

communities only to disappear overnight to settle„

in semi-urban

in the industrial areas.

From

of

the

many

have

we

of the Neivs

further.

of the

the

Immigration Bureau for

bill for

The committee

information.

The

a

which

to

it

report; it calls

bureau

has to

is

on

call

referred

calls

the

of them.

In spite of the inspired publicity about the DP's coming
shores, much of it heart warming, our experience has not
been too satisfactory. Nearly every Senator and member of the
House has a story to tell of a group that settled on farm lands or
our

''

•t

•

V

This advertisement is neither

.

offer to sell

an

-

•'

■

'

•

■

••

nqr a

"

■

•

'*/'>

,

-

■

•

■

•

•

.

.

,

of these securities

solicitation of offers to buy any

The offering is made only by the Prospectus.

May 7, 1952

ISSUE

the

rate

record

of

on

one

share for each fifteen shares of Common Stock held of

more

for

coal

1951

than

did

Western

margin
having been around

also high,
last

compared .with

year

Even with the unfavorable trend

that

been

has

evidence

in

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

the company's operating
showing has been good when com¬
pared to industry standards.
As
mentioned above, one of the main
in costs in

;

the opening
in transporta¬
For the period this
was

While

most

in

of

the

major rail¬

the

country and the
class I carriers as a whole, have
been reporting gratifying year-toyear
earnings
gains so far in

1952,

there have been

im¬

some

first

the

of

months of the year,

three

the exception

earlier.

Both

business

to these

three

the levels of

below

were

rev¬

freight

second

largest
the

In

gregate, /operating expenses
panded nearly $1,000,000, *or

in
ag¬
ex¬

by

the

cut

of

come,

to

the

lower

income

The overall result

more

than 55%

from $1,932,948

$843,430

in

the

in
a

tax

was

a

net

in¬

year

ago

opening

1952

:

)

Virtually all
expenses

had

been

«

categories of
were
a

/'

higher

year

largest increase having

ago,

been

in

the face of

least

in

Inherently, Western Pacific is a
highly efficient railroad property.

part

conditions,
the

declining earnings.

adverse

to

as

was

connecting

the

in

This announcement

is

not

an

be obtained from

may

only in States in which such underwriters
in

securities

The First Boston

and

in

which

the

any

are

steel

Prospectus

may

legally

be

distributed.

industry have

also taken their toll so
that early future reports may not
disclose any substantail turn for

largely confined to through
ice.
a

serv¬

It has

historically had quite
long average haul on its freight

business.

To

these

fundamental

the $7.95 a share reported in 1951,

but,

nevertheless,

dividend
covered

by

a

the present $3

should

rate

agAin

good margin.

Kidder, Peabody A Co.

Merrill Lynch, Pierce, Fenner A Beane

Piper. Jaffray & Hopwood

ojfer ojsecuritiesJor sate

or a

solicitation oj an ojjer to buy securities.

New Issue

May 7, 1952

$35,000,000

Union Oil

Company of California

Blyth A Co., Inc.

Corporation

3V8% Convertible Debentures, due 1972 (Subordinate)

Kalman A Company, Inc.

J. M. Dain & Company

Dominick A Dominick

A. C. Becker & Co.

Price 100%

incorporated

Allison-Williams Ccirpany

The Milwaukee Company

Robert W. Baird & Co.

plus accrued interest from May 1, 1952

Incorporated

M. A.

Schapiro & Co., Inc.

John Doughs A

Woodard-Eiwood & Company

Harold E. Wood A Company

Greenman A Cook, Inc.

Company, Inc.

,

Jamieson A Co.

Copies

of

the prospectus

map he obtained from fhe undersigned (one oj the under¬
therein) onlg by persons to whom the undersigned mag legally
offer these securities under applicable securities laws.

writers named

Quail & Co.

(Cirkpatrick-Pettis Company
Ames, Emerich & Co., Inc.

Caldwell, Phillips Co.
T. C. Henderson & Co.

.

F. S. Smithers A Co.

?

C. S. Ashmun Company

.

Decker, Barrows & Co.

Mannheimer-Egan, Inc.

fr*

.

M. H.

Bishop A Co.

First of low* Corporation

Irving J. Rice A Company
incorporated

Shaughnessy A Company, Inc.




be

Disturb¬

probably

dealers

as

Rio

is; very largely main line, with
relatively little in the way of the better in this trend.
Never¬
branch y and
feeder
mileage
to. theless, a change for the better,
support.
It has a heavy density and more favorable year-to-year
of freight
movement, and pas¬ comparisons, are looked for over
the
intermediate term. Earnings
senger business, which is not very
important in the first place, is for the full year can hardly match

of the several underwriters

qualified to act

with

&

trend* may

temporary.

the

weather

case

j To that extent,

unfavorable

considered

the

Denver

Grande Western,

ances

expenses Tt

J^pr the full first quarter of the
year operating revenues were off

they

accruals.

receipts.

periods.

than

by

declines in

operating

below average.. It. is prob¬
ably this factor that has militated
against any weakness in the stock

11%.

quarter.

months

operating

offset

contrib¬

have topped those of the like 1951

to

sub¬

The simultane¬ V Presumably the showing for the
decline in business and rise in first quarter was attributable at

than

more,

have

time, in each of the

is ' still

well

the

and

transportation "costs.

a

and

amounted

tures

exceptions.
Ahiong the' ous
exceptions has been Western Pa¬ operating costs was only partially
two

interim.; 1952

in maintenance of way and struc¬

portant

In

;

which

stantially lower than the industry
average. The total operating ratio,
up 6.44 points at 71,44%, was also

Western Pacific
roads

the

ratio

31.66%

only

to

Copies of the Prospectus

far

so

this year,

May 5, 1952. Subscription Warrants will expire at 3:00 P.M.,
Time, on May 20, 1952.

The several Underwriters have

car¬

The road's profit

'

Central Standard
-!

the

higher transportation

Nevertheless,"

year.

offered the

than

Pocahontas
a

transportation

by nearly 6%, from $13,120,887 in
1951 to $12,352,065 in the current

Corporation's outstanding Common Stock are being
right to subscribe at $50 per share for the above shares at

the

of

was

tion'expenses. <*
important ratio was up 4.2 points
from the, opening- 1951
quarter.

uted

Holders of the

cents

This

lower

quarter of 1952

At the same

(Par Value $50 Per Share)

30%.

below

as a

in

increases

passenger

4.20% Convertible Preferred Stock

2/.7

cents

had

the racket

,

year

Bancorporation

with

14.5% for the industry as a whole.

in 18 months or two years. If they are then deported
they can go
back to their native land and gorinto business.
-

enues

Northwest

only
dollar.

10

that

m

carriers

.-

in

West¬

its transportation costs

year,

23%

thoroughly the legal fee exacted from the alien is around $1,500.
Aliens pay this fee, go out and wor& as. laborers at $70 a week and
by living on as little as possible, can get a nest egg of $1,500 or so

having been February, gross'

103,185 Shares

been

of

transportation.; ratios
Last

is

cific.
NEW

has

group

constituency. But when one member from an inland state par¬
ticularly, introduces three or four hundred such bills at a session
his colleagues lift their eyebrows and begin to talk.
%

by competent authorities that there are at least 2,000,illegally in the country at the present time. This is in
addition, of course, to the millions that have entered legally under
our generous immigration laws following World War II.
And in
the legal category they come in under so many classifications that
it is next to impossible for the responsible agencies to keep track

:

-

ratio

an occa¬

000 aliens

'

Pacific

select

rier,

is estimated

.

ern

important

The truth of the
matter/ fairly admitted by immigration
authorities, is that immigration has almost gotten out of hand. It

to

of the past two years

Pacific.

As explained to me by an expert who has studied

that

each

sional private bill at the behest of the alien's relatives
among his

is likely to turn

is notable

Even Norfolk & Western, another

introducing the bill is not to get action by Congress but simply
to permit the alien to remain for many months in the
country.

: «

the basie strength

it

road

ing was bettered only by the
Pocahontas coal carrier Virginian.

of

Congressmen introduce

in¬

operating

whole.
Among the
majcr class I carriers this show¬

information; it tries to get information from the Central In¬
telligence Agency. In the meantime the bill lies dormant in the

many

the

industry

committee and the alien remains in this country. In some instances
the bill is reintroduced at the next session. The manifest purpose

days and times

favorable

road's

Indicative of
of

than

the sponsor of the
foreign agencies

on

for

In these

the

on

revenue

on

program

large fleet

status.

absorbed

the Congressman doesn't pursue

cases

bill

important

an

fluence

a

locomotives which have

coun¬

According to the evidence developed by the Judiciary com¬
by immigration author¬
ities, the alien will come into the country on a temporary visa,
or a transit visa or in the case of a seaman, he will
jump ship.
Then he will contact a lawyer specializing in the trade who will
persuade a member of Congress to introduce a bill staying his'
deportation. Under an arrangement with Congress the Department
of Justice takes no further action during the pendancy of the bill.
In at least 90%

consideration in the Senate
Carlisle Bargeron
mostly around an effort of the
"Liberals," headed in this instance by Senators
Lehman and Humphrey, to substitute their more "liberal" bill,
rather than a full discussion of the immigration problems facing
the country. In the House the Walter bill passed after three days
of consideration under the rigid rules of that body. It is probably
as good a bill as could have been drawn but my criticism is that in
the discussion attending it, there was no light thrown on the
immigration situation generally.
I
:
•
Instead,

had

the practice of members introduc¬

upon

the

three months to the benefit

of the country.

based

bill to stay the deportation of an alien illegally in the

a

try.

Pennsylvania, after months of study with the
assistance of a staff of experts.
A bill pretty
much along the same lines by Senator Pat McCarran of Nevada, is pending in the Senate.
It is surprising there hasn't been more
publicity on this matter, although it has caused
plenty of excitement among various religious
and racial organizations.
And it is too bad
that the measure is to come up in the Senate
this late in the session. The subject could be
or

comprehensive

a

improvement

of Diesel

mittees of the two Houses, and as related

ity into them and here and there to tighten
up loopholes. The House has already passed a
bill
authored
by Representative Walter of

debated for two

racket is

This

.

the subject, bring some uniform¬

on

years

and the installation of

ing

most

laws

recent

property

racket in human beings has
developed which bids fair to engulf members of Congress.

important pieces of legislation to be con¬
sidered by Congress in a long time is scheduled to be taken up in
the Senate shortly—a bill dealing with immigration.
It seeks to
codify the

advantages there has been added
in

immi¬

our

On the illegal side a tremendous

By CARLISLE BARGERON
One

effort to put

no

Thursday, May 8, 1952

.

.

grants on such a selective basis as Canada and Australia.

Washington

Ahead

We have made

.

Dillon, Read & Co. Inc.

be

Volume 175

Number 5114

The Commercial and Financial

Chronicle

IT

(1919)

..' Throughout

Expect

February

*

earnings in third quarter.
of cash

reserves
_

its

or

Urges investor

to build up

buying

economic

environment calls for

a

it.

may

excit i
will

n

highly

it

g,-

be¬

fore, will need
to

guard him¬
self
against
developing

±'alse„

a

of

sense

security.

H e
dis¬

the

runs

risk

being

trapped

of

the

stock

:

G.

Joseph

within

mobile

v,

of mind" and financial security.

*

0.

.

aPProac*J-

to the handling of investment
funds that applies to all investors

with'alllto

the investor cope

the probabilities?

are

ms situation:

'

will

hpein

discussion by

our

the

tb.t

obiective of

basic

investment program

ewry

.

...

.

First, the Conservative Method,

What action should be taken?
wp

between

then

It

21S

219

and

the

recorded

durable

222.

The

219,

level of 220, with Feb¬

a

March

and

ruary

1951

both

average

reporting
about

was

the highest annual average

or

since 1943 and 1944.
arrived

the

at

We have

now

point where just

a

"little nudge" would place the In¬

rowing to build schools, roads and

municipal

other

on

financing

is con-

of

where the objective is current in-;
come , with
safety of principal,

covering

homes

in

most

two weeks Secretary Snyder
nounced

borrow

that the
up

to

been

an-

billion

of

new

"fically to trusts widows, retired.
^ afe we
v,
^usmess and professional men.and-is concerned

and applies spe-;

Second,

the

dends

Earnings

that

have

been

in

divi¬

and

Method, ception

with

the

Korean

overall

sense

in

decline

a

'

of

ness,

in

high

of the
a

the

War.

consumer

proportion

able income

post

-

of

the

past

unwilling¬

to spend
his

as

dispos¬

previously. During
Korean
buying surge,
as

This is the*''rent money"-where the objective is reasonable This has been a period of confu- which- culminated in the first
paid for the use of his cap- income with some growth possi- sjon anci deception when costs quarter of 1951, the consumer was
bilities. This method mqyinvolve .s were rijsing faster than prices. The reported to be saving at the rate

ital.

or

suggests

buying

that

the

post-

surge may now

be

digested.
The gross national
product dur¬

ing the first quarter of
to

a

new

billion,

a

the final 1951 quarter.
sumer

1951

rose

peak annual rate of $339
gain of $4.4 billion over
While

con¬

spending for durable goods

remained

about

the

same

the

as

final quarter of 1951, expenditures
for soft goods and services showed

increase of roughly $1.4 billion
$900 million respectively in

an

and

the annual rates.
hit

come

lion

in

marks

a

The national in¬

new

the

peak of $284 bil¬

first

quarter.

increase

an

of

Ihis

$2.8 billion

from the last three months of 1951.

Disposable income during the first
quarter of this

year was at an an¬

nual rate of $226.5 billion

as

pared

with

rate

$227.2

billion

quarter.

in

First

reports

annual

an

the

quarter

lower

are

com¬

final

and

of

2951

earnings

reflect

in¬

ventory losses and higher taxes.
Companies are now beginning to
report
"real

for

what

might be

profits."

various

ported

Profits

companies

be

to

called

from

the

after taxes
were

15%

to

lower than the comparable
last year.
'

re¬

25%

period
"

Probable

What
Since

Business

the

are

the

been in

a

Trend

probabilities?

civilian

economy has
recession for more than

improvement

getting
underway
during August. According to prece¬
dent, the low point of a reces¬

sion

usually occurs late during the
quarter or early in the
period, with production ex¬
panding during
the
third
and
second

third

fourth
tor

quarters.

in

A favorable fac¬

short-tefm

a

sense

is

the

.

decline

in

business

loans

during

always, is toe balanced Tund idea or a per- f^st i; stage - was
initiated
with of about 3.6% of his income. Be¬
the past three months. - While a
speculating on tomorrow.; There rentage of ^aggressive and defen- World War II when huge deficit ginning' with the second quarter corrective
rally
in - commodity
never
has been, and never will sive type of stocks. It applies spe- spending got underway. It created of 1951, he was spending less, with
prices should get:underway tihirbe, a period in- which there was clllcall^to the ay^age lnYestcH a,large.pent-up demand for con- the savings rate increasing to an
Tr
annual rate of $20.5 billion or 9%
Continued on page 22
no risk ^investments.. Actually,
SUmerS" S°°dS resulting in high
there is a risk in every endeavor
today,

Investing

as

^he'VrofSsbna

We are always.

life itself.

in

and

dealing in probabilities. Each in-;
vestor 'is faced with one major

"What

question-

I afford to assume?"

can

?u<5eaveraeelysines!
tne average.. .business

ana

ma"\

.

Third,

the Aggressive Method,

dependent
Formula

•

for Investor

if 'we

are

must be taken
successful in the

be

to

investment of funds:

'

First, the investor must qualify
,7

.

thr-n.iffh

h'!?Se,L d±r he. h/s
hi has
self-analysis whethei
qualities

primary
make
He

necessary

the

ly

with

bold courage and

finally, ®
study lntons

^vesting

determined^Pa ience.
-

and

two

he

can

.

of

toe

.

with

New

rather

than the sophisticated investor.

''Second,

the ■ next
create, and
design

step is to
a; carefully

thought-out plan and mobile policy, ihat is "tailor-made" for the

exclusively

investor

in

A

levYralmonthswith'-

Managed
is

the

Dated

are

lost

nature

of

must bear

heavily

on.our

Forum

Women's

Finance

Chicago,

111., May 1,

1952.




before the
America,

r

.

>

^

.

.,r

Due May 1, 1984

,

Price

and 102.824%
accrued interest

decisions

.* PoWh

including

People,

some

economists, are devoting problems «•'
so much
to
our
domestic

time

The

demonstrated

filets and

that all major

Prospectus

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

con-,

repercussions,..both domestic
and
foreign,
will be
checked by political decisions and.
actions in Washington. Since the
u. S. went off the gold standard

have had a paper curthe supply of which-has 1
we

HALSEY, STUART & CO. INC.
DICK

MERLE-SMITH

&.

ing would work

on

huge

if pursued
with
with sounding1
spending
through business-channels;

done
done ;,

scale

a

SALOMON BROS. &, HUTZLER

.

GREGORY

-

&.

SON

INCORPORATED

IRA HAUPT &. CO.-.

BACHE

&.

CO.

WM. E. POLLOCK &.

NEW

YORK

GREEN, ELLIS L ANDERSON
COURTS &,

de s t r o ye d;.and Treasury. -World War II .taught
impatience and the "planners" that deficit spend-;

address by Mr. Bettag

buy these securities.

to

today is the iu.l realization that

keeping in ,1933,

•

v*An

offer

today's

by

,

an

Economy

preferences
and
temperament., been expanded or contracted ac-,
Once this has been done, he must cording
to the decisions of the
consistently adhere to it.
Many Federal Reserve Board and the*

health

solicitation oj

May 1, 1952

economy?. Whether we like it or,
not, the outstanding factor that

with his circumstances, objectives;; rency,

programs

or a

Thirty-Two Year 3H% Debentures

six months or longei' Preferable,

^

investor

sell

Jersey Bell Telephone Company

^cap^Usts ^those-

opinion,

emotional

an

to

those

greediness, ancj orthodox economics that
they
selfishness,
fear,
laziness,
and, do noj- yet fujiy appreciate this
wishful thinking are the attributes fact
Each week it is being clearly.
of

offer

$20,000,000

;

a

in high income

caDitalists and

ate?wtagsof

oX ^

learn what not to do.r

.

Pride

leas? two

men

brackets

bear mar-

whatslaonel Thisls
way
d:y

his

]v

throughout at

markets

buli

,

y

stocks

<>? »«f. economy. It applies spedfically to business executives and:

What

with

common

to

a

bined

an

The offering is made only by the Prospectus.

investment income.

on

professional

complete objectivity. He must also
have

is not

backlog of municipals or cash, the
extent depending upon the level

the I

Z5 havfaTeat deai

of"horse-sense,"

announcement

This approach is weighted strong-1

-

Four broad steps

-

This

risk where the objective is primarily
capital gain and the investor is not

of

degree

man

.

"

winter retail sales, with sustained

1

surprise

come.f

he is

billion

during

13 months has been the

f

arae

we

an

then.

the second stage, which had its in¬

Standard

1951.

ruary,

.;" The great

In Second Stage of Inflation
.

•

have

and

since

This

Korean

$17.5

retained by the consum¬

was

14 months, a stronger foundation
the past
has
been
established
for
some
12 months. Volume of daily stock
kind of business expansion. Fur¬
ment buys. All indications suggest transactions attained its
high level
that
the
government • is
intent on Jan.
thermore, manufacturers' sales
17, 1951, when 3,877,470
upon.,creating more jobs and put- Shares were recorded.
Demand usually begin to -pick, up in Jane
ting more money in the cohsum- for stocks has been receding since in preparation for the fall and

objective
itself requh'es some
capital appreciation. .Of course,
the true investor is ,also entitled
to some assurance of a fair in--

•

1951

their respective highs during Feb¬

between the Fourth of July
ancj Christmas. This money will
sift through the economy in salarjes ano 0n things the govern-"

money

common stocks

„

of

downtrend

a

The Dow Jones Commodity
Index and 40 Bond Average made

do^natingv^spockets before the election.
—

months

in

time.

Treasury would

$10

indices

important

peak during the first three

a

four

or

the

of.

made

During the past

tfo^of "purchasingv powerS6T^ds

irt

the

defense

Stock market margins may

also be reduced.

'Jv0ll.1j? *?e well, it the inkaleidoscopic changes in our vestor
classified his operations,
economy? What is the nature of according do one of the following
today's economy? Where are we three, methods most applicable to;

.ct^iL

August.

ing January of this year the Index

local governments. This
involves veteran bonuses and bor-

areas.
,

lherys no

ilCe

>'

.

the

What

consumers

thereafter

the balance of the year. Dur¬

for

with

in

217

to

and

when

year

er.

a

April,
during July

rose

state and

relax

1

v

\

Investment Procedure

*'crowd" will be assured of "peace

now?

supply industry
materials"
for

purchase

able /'slump."

vw

can

to

in

212

scarce during January
being decontrolled in an

"strategic

Bettag

Only the investor who has the in¬
against the

testinal fortitude to act

How

postwar high of
1951. It dropped to

fluctuated

effort

major

market

quate diversification.

inevit¬

an

duction reached

-

of

tinct

in

recession than

be

to

now

measured

as

by the Federal Reserve
Board
Adjusted Index of Industrial Pro¬

over

this

7.7%

activity

dex above the peak of last year.
enterprises, This would suggest some further
Curbs on instalment buying were
acceleration
in
overall
business
relaxed slightly a few weeks ago
activity/which may possibly ex¬
extremes for adjustment
purposes, when
all
items selling for less
pand the Index to around 230.
that is, buying, selling or switch- than
$100 were freed of curb. The
During the last nine months of
mg.
The successful investor,a is previous limit was $50.
Recently this past year and again during
able to overlook the ripples and 16
items were removed from price
late January of this year, we were
waves in our
economy. He is in- controls.5 The next step could be
criticized severely in .some quar¬
terested only in the tides—in the the
lifting of .regulations fixing ters when we ^called attention to
basic trends.
He always has the the size of the down
payment and the deterioration of the various
big picture before him.
length of instalment on consumers
fundamental factors in our busi¬
Fourth, enforce strategic timing durables.; Another move that the ness structure. Now that we look
and intelligent selection with ade- government may take will be to
back on this period we find that

more

ever

appar¬

223

are

plan
policy. The investor,
should, however, utilize important
and
over-exploited
intermediate

The

investor,
than

ations with the primary or

and

dan¬

gerous.

Business

said

the limits of the established

be

also

a

social revolution.

neglect to adhere to the previous- goods. "The
voluntary credit rely adopted plan and mobile policy; straint
program
covering
nonThird, gear all investment oper- defense loans has been relaxed for
trend

seem

of the

chang¬

concerned with the

manufacture of

"'flare-up ' during the next 60 to
100 trading days.
While at times

to be

inflation.
Every action re¬
cently has been anti-deflationary.
Many of the materials which were

equivalent and "put his house in order."

present

our

tactics

credit

.

Psychologically,

the

Administration

more

prospect of

Dow Jones Industrial Average crosses 300. Looks for accelera):
tion of defense activity during summer and better
corporate

*

The

ently is

analyst, contending current economic environment calls for a "flare-up" in coming
quarter, holds we are in
second stage of inflation, and bull market will continue until

,

and

on

seem

Administration

ing.

;

year,

insisted

Now

measures.

Inc.,

Stock market

'

year

this

and

Bettag & Associates,

Investment Counsellors, Chicago, 111.

,

past

of

Administration

By JOSEPH G. BETTAG*

President, Joseph G.

the

activity and easy profits in thew in the final
quarter of 1951.
A
the immediate postwar period.
The slight change in the
savings rate
price third stage is the explosive phase occurred
during the first quarter
control and various anti-inflation which ends in
economic chaos

Stock Market Flare-Up

a

until

CO.

THE
May 7, 1952.

CO., INC.

HANSEATIC

v

'

AUCHINCLOSS,PARKER & REDPATH

CORPORATION

KEAN, TAYLOR & CO.

R. L. DAY

& CO.

ROBINSON-HUMPHREY

BAXTER, WILLIAMS &. CO.

F. S. SMITHfRS & CO.
HELLER, BRUCE & CO.

COMPANY, INC.

''

\

12

The Commercial and Financial Chronicle

(1920)

lions

Should

Companies Pay Dealers
For Handling Customers'
Stock Subscription Rights?

margin of profit.

the

last month,
in

Colo,

have called attention to the lack of
o r

in

for

expense

firm has been very

our

compensation
labor

and

reimbursement

undergone

the

sale

of

of

"Very truly yours,
EARL

con¬

Telephone

States

and Telegraph

Earl M. Scanlan of Earl M.

lan &

to

him,

April

dated

that "the minimum

stated
our

Scan¬

Co., Denver, Colo., who in

letter

a

by

Co.

10,

it

transaction," and in view of this
"immediate consideration

expense

in
to

breaking down public resistance
rate increases urgently needed

at

this

was

discussed

also

by Frederick D. Walter of Walter
&

Co., Denver, in a circular cap¬
tioned "Subscription Rights to
Stockholders" and dated April 28.
Walter

Mr.
we

for

that

asserted

"when

exercise the subscription right

clients,

dure

it requires
detailed

of

amount

and

of

"It

This is

occurred

twice

office

the

proce¬

than is
original sale

recording

to

well
to

par¬

is,

mendous

assume

conservative figure, when a right
or there is any trans¬
action in connection with rights,
about

our

firm

the

course,

duty

as

successfully finance

as

cheaply

not

officials

the

nor

of

obtaining cheap financ¬
company

in

most

instances, at the

expense

out

is

compensation

to

the

average

security dealer.
some

instances—more prev¬

.

for

the

and

been

is

of

aware

the

for the time and effort consumed

help

and

situation and must realize that this

Telegraph Company

Denver, Colo.

added load makes

"

our

"Dear Mr. Jones:

"Your

communication

March 31, 1952 has

dated

been received

by this office, and we do appreci¬
ate the good will of the Telephone
Company.

Over

period of

a

association has

been

have done and

to

are

facilitate

extremely difficult. The old
argument that this program is.
conducive

most

doing

our

your

present

to

'Security Dealer,'

Banker,'
'Broker,' and

or

up

whom

the

stock

it

is

"Perhaps

origi¬

was

advice.

When

that client to

for

of

our

to

come

or

the

If

it

as

sell

for

putting
on

to whether to

"When

and

is

required for

the

be

recorded

and

items

separate

ordinary
is

It

and

handled

New

same

as

of

success

this

type

of

financing is guaranteed by a
standby underwriting group which
benefit the members of that

particular

group,

but

Chronicle, 25 Park Place,
York 7, N. Y.]

Eugene
the

injus¬

an

get cheap financing.

the

to

all

dealers

Speak

At Bond Club Lunch

to expect a dealer to do this
without compensation or to force
this duty upon him so that the

"Often

comments

relating

E. R. Black to

as

tice

company can

receive

Editor, Commercial & Finan¬

transactions.

imposition and

an

Commercial

original

the

profitable

to

suggestions

cial

sale of stock,
because both the
subscription right certificate and
the resulting shares of stock have
to

secondary

a

the

Letters should be addressed to

right for clients,

it re¬
quires twice the amount of detailed
office
procedure
and
recording
than

with

industry and
and ability

the views expressed above by
Messrs. Scanlan and Walter.

do exercise the sub¬

we

integrity

and not in

par

pleased

cannot

we

his

[The "Chronicle" would be

expected to han¬

but

to

Bank."

expect to be compensated by the
client.

scription

a

position

right certifi¬
subscription right is

them,

of

view towards creating con¬
in the security dealer in

a

every segment of the

the

we are

taken

fidence

tion
right certificate (very few
really understand them) and our

exercise

be

officials

companies issuing rights

with

us

explanation of the subscrip¬

an

the

by each organization
representing the security industry

security is
clients, we can

one

expect

should

with

stockholders

a

sold to

this

direct

those

that

to

stockholder looks

for

R.

Black,

International

President

Bank

for

Eugene

R.

of

Re¬

construction
and

Develop¬

ment, will ad.

The

dress

Club

of

York

at

Bond
New

luncheon

a

meeting to be
held at the

Club

Bankers

Thursday,

on

ut¬

added

business

due

"It is
in

the

first

the

security dealer who,
instance, furnished a

is well known and might be partly

whom subscription rights could be

true if we, in

offered.

ness,

the brokerage busi¬

the

to

The

company

original

nished the dealer with

had any time left after proc¬

sale
a

to

fur¬

nominal

compensation for that
particular transaction, but which
daily deluge our sales and office
was
not
sufficiently large
forces. Additionally, no considera¬ to
compensate him for the con¬
this orgy of rights

essing

which profit

given to the fact that mil¬

as

tinuous

service

to

that

company

"Whether

subscription rights

fering

is

willing
as

underwritten,

that

seem

to

the
pay

dealer

who

be

reasonable

a

fee

the

to

pany

be

actual

the

offered

contact

stockholder

compensate

discussing

and

and

of

should be paid

to

com¬

stockholder to whom

a

rights could
is

the

that

the

for

handling

rights

The

cents

share

per

be

of

Black's

too

large

for

rights
in

and

would be too small, but

give

the

compensation for
should

benefit

dealer

his

some

efforts

and

the

issuing com¬
pany by the improved companydealer relationship which should

New

At Lee
Lee

feel

that

a

concerted

effort

Wall

Funds

or

seeking to use this method of
financing and to all underwriters,
some

view

a

towards

obtaining

fair compensation and some

relief
dealer

for
for

the
the

security

average
services

rendered

by him in such instances.

who recently joined the

some
companies issuing sub¬
scription rights to advise the stock¬
holder by letter to consult a. 'bank'

of

'broker.'

seem

to

be

Such
out

of

firm.

$62,720,000 Bonds of
Stale of New York

Offered to Investors
A

syndicate

headed by The
of

New

combining groups
National City Bank
Lehman

and

York

Brothers

purchased
$62,720,000 New York State Hous¬
ing Bonds due 1954 to 2022 at
100.0467

for.

a

6

combination

a

ranging

coupons

4%,

May

on

from

of

114%

to

net interest cost of 1.8278%.

The bonds

are

to
for

turities.

the

The
are

from

1954

.90%
1999

to

to
ma¬

three

longest ma¬
being offered at 73%

bearing a.1%%

Associated

in

underwriting
National

being reoffered at

yield

prices

the

group

Bank,

coupon.

112-member

'

are:

First

New

York;
Bankers Trust Co.; J. P. Morgan
& Co. Inc.; Smith, Barney & Co.;

Harriman

Ripley
&
Co., Inc.;
Halsey, Stuart & Co. Inc.; Phelps,
Fenn &

Lazard

Co.; Glore, Forgan & Co.;
& Co.; The First

Freres

National Bank

"It is and has been the practice

or

The

Department.

department will be under the
direction of William G. Gallagher

for bonds

with

Higginson

the opening of a new

announced
Mutual

turities

all

unfair and unjust practice to the
attention of all companies using




r

Corporation, 40
Street, New York City, has

organizations representing
the security industry to bring this

May 6,1952.

Op¬

Bank.

Higginson

should be made by the NASD and

Blyth & Co., Inc.

will be

Department

2.05%

result.

by

placed privately by the undersigned.

address

eration of the World

thus

stock

subscription
none

would

"I

These securities have been

Black

subject of

Mr.

the

in

and

it

Par Value $25 Per Share

The
Club.

Bond

involved

the company and the
stockholder of that company. For
this service,
a
minimum fee of
exercis'ng

5% Redeemable First Preferred Stock

Presi-

of

den

serving

would

Company

Hutton

E.

Co.,

com¬

reasonable

a

him

expense

and

who

advisor

some cases

Pacific Gas and Electric

&

by

Lee,

new

with

pany

50

306,680 Shares

should

furnished

subscription

oj,record.

W.

it would

issuer

ing, and that the average security

in

as a matter

was

James J.

the! of¬

of the necessary financ¬

cost

a

whether

or

time, effort and

only

are

offered by the company direct to

fee

This advertisement appears

May 22, it
announced

that group.

stockholders

stockholder

tion is

financing.

to

the rights involved.

to the contact with our customers

years,

pleasant, and rest assured that we

most

company

stockholder

from

involved in record¬

expense

ing and handling, for subscription,

labor prob¬

lem

our

the

the

'Investment

.

Mountain States Telephone and

*

his

consult

fiscal

of

Secretary and Treasurer

i.

needed,

advise

leave the bank out of it.

may

"In

overhead charges in routine book¬

re¬

is

should

the

know

keeping and additional help, oc¬ alent in certain industries than in cannot be included in such a group
casioned by strict governmental others, and by edict of the SEC— without the group
becoming
stock
." and termed it an "im¬
regulation, are becoming very bur¬ the stockholder is given the pre¬ too large and unwieldy! If
position and injustice" to expect a
densome.
Also to be considered emptive right to purchase addi¬ the
subscription privilege is
dealer to handle such transactions
is the fact that our clients, your tional stock in any future financ¬
sufficiently attractive to the stock¬
without compensation.
stockholders, like to do business ing, which makes the offering via holders, the success of the financ¬
with the known or old personnel, subscription
rights mandatory. ing is automatically assured and
; Herewith is the text of Mr. Scanlan's letter, following which we which means that we cannot hire But this does not alter the injus¬ all the
underwriting group has to
tice to the average security dealer do is to stand
reproduce the text of Mr. Walter's new or inexperienced help for this
by and collect the
when he is called upon to discuss
task.
message:v'""'
underwriting fee for the work
and handle subscription rights for done
"I am sure the Telephone Com¬
by the average security
"Mr. H. E. Jones
clients without some compensation dealer who was
not a member of
pany's personnel department has

quired

advice

average

agent nor the transfer agent, but
does
know
the security
dealer

of both time and effort and with¬

The

$1.35 per transaction.

of

sometimes, but not always, to
the benefit of the stockholder and,

is exercised

to

letter.

and

a

cost

foregoing

ing to the benefit of the

for their tre¬

expansion programs. As

the minimum

the

possible. To this end, subscrip¬
tion rights for additional stock is
fast becoming an all too prevalent

companies the penalties the

broker must

se¬

the desire of management

as

means

these

in

does

Thursday, May 8, 1952

.

day procedures, for such
activity or advice to the public
generally has ceased to be a part
of commercial banking.
If such

experience

The

.

present

as

directors of

the

also'

a

"It

the past few years for
companies to do their fi¬

most

stockholder

dle

Company,

stock¬

the

our

dealers.

security

curities dealers of Denver, is very
similar to that expressed by Mr.

to have become preva¬

nancing with rights.

*

circular, captioned "Sub¬
scription Rights to Stockholders,"
dated April 28, Mr. Walter stated:

time.

seems

*

&

to

the vast majority of

to

exercised,

viewpoint of F. D. Walter

Walter

In

lent during

ever

subject

The

Scanlan

should be given to the idea of ticularly true of utility companies.
reimbursing investment dealers." The writer is wondering if it has

^The

*

has

to

cost

firm is about $1.35 per 'rights'

imagine that

cate.

Denver, Colo.,

will for your company, and
undoubtedly been of help

good

"I

is similar

recommendation

SCANLAN

M.

April 10, 1952."

the Secretary-

the Mountain

these trans¬

in handling

involved

expense

actions.

by securities dealers and brokers stantly added to the holdings of
in aiding corporations to do their our present stockholders, but have
continued to place additional stock
financing by stock rights.
in many of our new accounts. We
The matter was recently called
believe this has served to build
to the attention
Treasurer of

additional labor and

the

States

only

not

have

We

stock.

given to the idea of reimburs¬
ing the investment dealers for

aggressive

Mountain

should

consideration'

be

be well at
mention the fact that

this point to

have

above

and

saturation
nally bought, and
firmly believe that dealer that the

level, and we
immediate

future

company.

just about reached the

it would

"Perhaps

two se¬

Denver,

outlined

conditions-

the

company

feel that the

"In conclusion, we

dealers of Denver,
Colo., hold consideration should be given to idea of corpora¬
tions reimbursing investment dealers for labor and expense
in handling "rights" transactions for them.
dealers

these

dollars which would un¬
doubtedly be used to purchase
other securities that would allow
our
firm
to show a reasonable

in

holder which he furnished to that

rights,

Walter of" Walter & Company, securities

Within

through conversion of

counts

Earl C. Scanlan of Earl M. Scanlan & Co. and Frederick D.

curities

being

dollars yearly are

of

siphoned out of our customer ac¬

.

man,

ties

of Chicago; Gold¬
Sachs & Co.; Union Securi¬
Corporation; Drexel & Co.;

Continental-Illinois National Bank
and

Trust>
The

Company

of

advice

would

and

order

under

Portland, Portland, Ore.

First

National

Chicago;
Bank

of

Volume 175

Number 5114

.

.

The Commercial and Financial Chronicle

.

1910 and

Harvard Law School in

COMING
Investment

cial

Federation

of

Convention

Finan¬

the

at

Oliver

Wendell

Holmes

in

fair

1911.

ized

in

In

U.

Irving

S.

the

of

S.

special counsel
Corporation

Steel

for

the

in

During his association with White

F.

& Case since

Fairless

as

as

m

Co., having to do with war
purchases in the United States by

M.

h

u

g

-

Chair-

as

a

the

out¬

He

and

ol

Maryland.

to

President

a s

serve

Mr.

Association

of

Stock

as

Meeting.

Irving S. Olds

law

(Chicago, 111.)

Bond Club of Chicago field day
at the Knollwood

Country Club in

Lake Forest.

practice

65

with

the

R.

British War

Mis¬

for the

and

department
served

in

for part

firm

Stettinius, Jr,
Board

Steel

Guest

of

as Chairman of
the United States

has

been

director

a

and

White & Case, 14 Wall Street, this member of the Finance Commit¬
city, of which he has been a mem¬ tee of the corporation and will
ber since 1917.

On
a.m.

continue to

serve

in both of these

Mrs. Diehl will be celebrating the

Sunday, May 11th, at 10:15
WOR, George Putman,
the

of

Trustees

George Putman Fund
will

be

featured

a

Peabody

der,

&

hour program on

of

20th

of

guest

Co.'s

of

one

Prudent

O

Kid¬

on

broad¬

came

and

The

Prudent

proud
of

enviable legal

and

ISpm

Wmk

opened

a

resident manager of

the

in

and Cathy, 3.
ident

him

presented

boys

beautiful solid gold

initials

and

a

suitable

Bond Club of Los Angeles Field

Day at the Riviera Club.
This advertisement is neither
(New York City)

The

Bond Club of New York outinf
at

Sleepy

Hollow

Country

an

offer to sell

nor a

■'

Club,

NEW

solicitation of offers to buy

any

of these securities.

offering is made only by the Offering Circular.

ISSUE

May 8, 1952

Scarborough, N. Y.
June 10-13, 1952

(Canada)

$64,239,000

Investment Dealers' Association
of

Canada

annual

convention

at

the Algonquin Hotel, St. Andrews-

by-the-Sea, New Brunswick.
June

13, 1952

Chicago and Western Indiana Railroad Company

(New York City)

Municipal

Bond

Club

of

-j

New

Country
Club, Rye, N. Y.

Club

of

Philadelphia

June 16-17,
Bond

Traders

of

:

Detroit

•;.

y<\ '

,

/

'•

.

'

.• ••».

* '•

i#r,

•

,

v

\V%% Sinking Fund Bonds
Due

May 1, 1952

May 1, 1982

The Bonds will be

unconditionally guaranteed, jointly and severally, by endorsement, as to principal,
sinking fund payments, by the Chicago & Eastern Illinois Railroad Company, Chicago,
Indianapolis and Louisville Railway Company, Erie Railroad Company, Grand Trunk Western
Railroad Company and Wabash Railroad Company, the owners of all the capital stock of Chicago

Detroit-Security
of

•

interest and

(Detroit, Mich.;

Association

Michigan; joint

Association

outing ai
Country Club.

1952

Club

.

Series A, Due May 1, 1982
Dated

summer

the Whitemarsh

j

•,

and Beach

June 13, 1952 (Philadelphia, Pa.)

Investment Traders

*

First Collateral Trust Mortgage

York annual outing at the West¬
chester

.

and Western Indiana Railroad

&

Company.

outing-

summer

'

June 16 at

the Detroit Boat Club;

June 17 at

the Lochmoor Country

V

THE ISSUANCE, SALE AND GUARANTY OF THE BONDS

ARK SUBJECT TO

AUTHORIZATION BY THE INTERSTATE COMMERCE COMMISSION.

Club.

'

''
.

'

•

.

•

' "

*

1

•

•

•

• -

*

•

.

•'
,

In the

'

.

r

.

.

opinion of counsel the Bonds will be legal investments for savings banks in Maine, Minnesota, New Hampshire,
New

Ghas. & John Wurfs

Jersey, New Yorkt Pennsylvania {savings banks organized under general laws) and Rhode Island.

Join White, Weld
PHILADELPHIA,

Pa. —White,

•

Weld & Co., members of the New
York Stock Exchange, announce

that

Charles
John

and

Stewart

Wurts,

Wister Wurts

istered

representatives

Philadelphia office,

as

in

Price 102.10%

Plus accrued interest from May 1, 1952

Jr.

have

associated with them

come

be¬
reg¬

The

the

Fidelity-

Offering Circular

may

be obtained in

any state

only such of the undersigned and other dealers

in which this announcement is circulated from

as may

lawfully offer these securities in such state.

Philadelphia Trust Building. Both
were formerly with
Wurts, Dulles
& Cq. and C. S. Wurts & Co.

.The First Boston Corporation

Hawkins Officers Join

Townsend, Dabney Go.
(Special to The Financial Chronicle)

BOSTON.

Hawkins.

Mass.'

W.

Charles

and

—

Robert

Frederick

Hyde

have

the

New

York

and

Goldman, Sachs & Co.

:Eastman, Dillon & Co.
.

Harriman Ripley & Co.
Incorporated

Spence

Kidder, Peabody & Co.

Ladenburg, Thalmann & Co.

.

Merrill Lynch, Pierce, Fenner & Beane

become

R. W.

Salomon Bros. & Hutzler

L. F. Rothschild & Co.

Pressprich & Co.

Boston

Stock

Exchanges.
All were for¬
merly officers of Robert Hawkins
&

Equitable Securities Corporation

Dick & Merle-Smith

F.

associated with Townsend, Dabney
& Tyson, 30 State Street, members
of

Halsey, Stuart & Co. Inc.

Blyth & Co., Inc.

Bear, Stearns & Co.

Schoellkopf, Hutton & Pomeroy, Inc.

Union Securities Corporation

Wertheim & Co.

Co., Incorporated.

White, Weld 8c Co.
Albert
Albert

securities
109

West

City.

Chopik Opens

Chopik is engaging in

Drexel & Co.

W. C. Langley & Co.

Hallgarten & Co.

Hayden, Stone & Co.

Hornblower & Weeks

Paine, Webber, Jackson & Curtis

Carl M. Loeb, Rhoades & Co.

a

business from offices at
42nd

Street, New York

Mr. Chopik

formerly
with Graham, Ross & Co., George
J. Martin Co., and Ira Haupt & Co.
was




Phelps, Fenn & Co.

'

the

.Wood, Struthers & Co.

with

a

engraving

(Los Angeles, Calif.)

June 6, 1952

of

Angeles

ring with his

inside.

of¬

new

chil-

Security Traders Association and
the

Avenue

the

parents

three

Los

branch office

new

ago.

Bob is Pres-

Co., members of
Stock Exchange,

Mamaroneck

are

14; Debbie, 7

ffp:Wk

Robert d. Diehl

G. H. Walker &

76

Cali¬

dren, Barbara,

New G. H. Walker Branch

at

to

years

They

Wjf

York

Cleve¬

Diehl

fornia about 7

personalities, is "The

discussed.

have

ginally

Mrs.

Man

New

i

series highlighting

a

their

land, Bob and

"Your Money at

Institution," and the story behind
the funds,
their operations and
what they offer investors will be

the

r

from

quarter-

•

his

of

marriage.

Boston,

Work." The subject of the
Mutual Fund

anniver¬

sary

the

White Plains. Ernest Kirk will be

capacities.
During

LOS ANGELES, Calif. — On
May 11 Robert D. Diehl of Paine,
Webber, Jackson & Curtis, and

Air

on

over

Chairman

Corporation. Since 1936, Mr.

Olds

of

Mr. Olds, born in Erie, Pa.,
graduated from Yale in 1907 and

June 6, 1952

1917

purchasing

country

the

on

active

resume

counsel from

as a special assistant to the
Secretary of War.
On June 4,
1940, Mr. Olds succeeded Edward

the

of

a?e

govern¬

of 1918

retire ment

Jan. 22 last and will

June 6, 1952

Geo. Putman to Be

cast,

1919

this

Olds

reached

Exchange
Spring

Firms Board of Governors

French

and

also

was

sion's

Chairman.

(Richmond, Va.)

British

ments.

Mr.

n.

continue

Security Traders As¬
Club

Ex¬

&

o

Fairless will

Country

the

port Department of J. P. Morgan

B 1

(Baltimore, Md.)

the

for

Roger

OJ

Investment

summer

1915-1917

Chairman and

May 16, 1952
Baltimore

counsel

1911, Mr. Olds acted

Oppenheimer,

Bob Diehl Celebrating
Twentieth Anniversary

con¬

Benjamin

formerly White

Vandenbroeck & Co.

business statesman.

National Economic Committee.

Board

was

Plains manager for

was ap¬

and

its

fice. Mr. Kirk

conciliatory settlements.
has long been regarded as a

inquiry then be¬
ing conducted by the Temporary

Vice

sociation 17th annual

career,

a

and

special¬ He

f

o

Bankers Association.

May 19-21

has

June, 1938, Mr. Olds

pointed

Olds,

Chairman

Ambas¬

Spring Meeting of the Board

at

Olds

Mr.

the election of

Governors

ing

1910

earned

nection with the

of

May 14-17, 1952 (White Sulphur
Springs, W. Va.)

4

to United

corporate law relating to
organization and administration.

Corp.

retirement

sador Hotel.

'

Justice,

Following its annual meeting
last
Monday, the United States
Steel Corporation announced the

Analysts Societies Fifth An¬

nual

Court

Secretary

as

and

U. S. Steel

Field

May 9-1(1,1952 (Los Angeles, Cat)
National

Supreme

Mr. Olds has
reputation for friendly
approachments and a genius for

served

As Board Chairman of

EVENTS
In

business

States

Irving S. Olds Retires

13

(1921)

14

A Defense of the

only

Proposals to divest the Board
of its disputes jurisdiction, or to
limit it to economic issues, or to

whole or in part the
tripartite
organization
of
the
Board, are cause for grave con¬
cern.
In the first place, employ¬
ers
and
unions will hesitate to
have
the
Board
consider their
cases if they
are uncertain as to*
whether or not the Board may be.,
destroy in

By NATHAN P. FEINSINGER*

Chairman, Wage Stabilization Board

Chief of

Wage Stabilization Board cites as its effectiveness in
controlling wages: (1) lower ratio of increase in wages than
in pre-freeze period; (2) a more moderate rise in wages than
in period of World War II, and (3) a less rapid rise in wages

the

Wage

Stabilization

with
tion

the

World

rving

period.

the
II

its

major
objective of
s

t

b i

a

wages;
record

of

Board
in

recommendations

han¬

defense

fort;
the

cision.

Board's

recommenda¬

tions

in

a

:

of

the

Case.

Sta¬

the

Nathan P. Fetnsinger

In

Board.

such

those

as

cases

appeal of

involving the American Smelting

'

otherwise.

or

absence

all-out

an

of

I

am

Effectiveness
Controls

;

or

powers

Refining Co. and the Wright other coercive measures.
I trust
Co.,
the Board's that this record will not be over¬
recommendations Were "accepted

to

of

Wage

looked

by

Date

Since the establishment of wage

cent

January, 1951, the

increase

less

than

in

in

has

wages

the

pre-

marked

a

slowing down in

movements

wage

monthly
cents

rate,

an

average

tyoth

in

terms) of

and

in

terms' of

hour

per

on

percentage increases.
The

percentage

the

as

wage
or

increase

in

annual basis, as well

wages on an

monthly

average

rate of
(in terms of cents

increases

percentages) during the period

of

stabilization

wage

favorably
for

ures

with

II

War

fig¬
the

and

postwar years.

Despite

the

comparison

of

movements,
the

unreliability

of a
price

movements * in

wage

present

and

wage

period

of

stabiliza¬

parties

it

fore

of

Mr.

Meeting

Commerce

of

the

of

for

important

brass

of

segment

work -and

cases

will

Board

in

be no

can

Board's

question of the
or
authority'

jurisdiction

this

It

matter,

chal¬

not

was

the companies.
The
difference of opinion is over the
by

wisdom) not the

legalityr of the

Board's recommendations.

1

<

,

A

disputes-settling agency must
have
jurisdiction
to settle any
issue

in

ity
be

as

dispute,

over

broad

parties to

the

as

of the

powers

Thus, no

agree.

tions were

Title

and the author¬

the issues in dispute must
excep¬

made in section 501

V; no exceptions

were

of

con¬

tained in the recommendations in
the

April

tions

of

Board

1951,

17,

recommenda¬

the/ National

*

Mobilization

on

Advisory

Policy; and

12 V2

of

crease

ing the Board's disputes jurisdic¬

effective
1, and an additional increase
of 2V2 cents, effective July 1, or
cents,

increase of 13% cents

average

the

cent

entire

figure

This 13%approxi¬

year.

of

represents

yourself whether you
.voluntarily
increased

ask

you

establish¬

10233

tion.

in¬

an

Jan.

for

in

made

were

Order

1952,

year

recommended

exceptions

no

Executive

since

pay

For the

1, 1950.

the

of

rates

is true

In

Steel

the

demanded

the

authorized

closed

the

shop

the

kind

which

a

job

a

of

man

a

one

is

he

union,

shop under

lose is job if he

membership for

whatsoever.

reason

no

the

of

union

may

loses his union

for

not

unless

member

a

as

Taft-Hartley
was

shop, under which

already
or

Union

union

demand

obtain

can

the

case,

full

by

The

Act.

any

Both of these

types of union security

in

the

cases

whose

production

of

some

the

the

President

cases

or

41/4

the

cause

All

offer

the

in

of

have

receive

industry

because the

after

en¬

or a substantial part

recommended

included in the

by the companies

Under those

and

holidays
of

formerly;

at

time

the

United

ington, D. C., April 29,

at

40th

Chamber

States,

of

Wash¬

mium

for

excess

1952.

periods
80

of

sometimes

of

in

4

for

the

cents

a

6

6

time,;

worked
as,

for

9-cent pre- -

third' shift

and

One

days, the maximum

.

premium

the second shift and

maintaining work and produc¬

vacation
years;

one-half

and

in

tion

recom¬

straight
when

6-cent

a

25

of

time

double

instead

met, the record
voluntary proce¬

weeks'

instead

dures of the Board have succeeded

Feinsinger

until

negotiations
Board's
recoim-

three

15

paid

was

the

were

mendations, the steelworkers will

Even where that juris¬

that

be¬

York

New

mendations.

tire

1952

effective

were

made

by the parties, a TaftHartley injunction would not

thereof."

year

the

following V the

voluntarily

submitted

been obtainable

not

out¬

were

straight-

your

hourly earnings are
higher than, steel,

or

in that period you

paid

did

or

expect

not

equal
terms, and prohibits discharge for

loss

Recommendations

B.

failure

and

dues.

instead

cents,

respec-

additional

recom¬

the

For

the

1.953,

first

Board

months

six

a

2y2-cent increase, effective Jan. 1,

time

and

1953,

and

Senator

one-quarter

Taft,

of

one

the co-authors of the Taft-Hartley

Act,

in

speaking of the type of
shop permitted by that Act
"I think the justice of such

union

said,

arrangement should be clear."

an

The

Bureau

1951

Labor

60%

renewed

or

included

shop

of

over

Statistics

of the col¬

bargaining agreements

gotiated
of

recommended

membership except
pay initiation fees

to

reports that

1953.

for

union

of

for

cents-per-hour figure as
or more than, the 13%

as,

fringe' ad¬

recommendations

adjustments
first

the

become

to

April.

im¬

for

cents

not

certified

disputes did not involve "an

steel

cents recommended for steel.

justments totaling 5.1 cents on an
annual
basis, but /actually only

portant to the defense effort.
In

certain

recommended

vol¬

is

as,

pay a

high

Fringe Benefits: The Board

(1)

In all

production

all the

to

Recommendations for the ;
year 1952/

the

lective

untarily submitted to the Board,
involving plants or groups of
plants

high

If

ask whether

have

/v/

of

case,.did not expect to reach that
figure by the normal application
of
the Board's policies
by the

I

m

A.

regardless

or,

of 1952.
excitement; end
time average

The Steel Case

has been maintained pending rec¬
ommendation by the Board.
The
same

dispute.

pending be¬
important

fabricating industry.

.these

by

current

of

industry, the oil industry, and

an

,

the

in

the Steel

over

.

ore

shows

'Remarks

basis

cases, including those involving
the aluminum industry, the iron

dictional test

favorably

compare
(

Annual

in

crease

as

number

a

tion, in relation to the Consumers'
Index,

the

settlement.

Price
-

as

The Board still has

compare

comparable

World

the

final

per

been

immediate

freeze period over comparable or
shorten time spans.
There has
been

There

Thursday, May 8, 1952

.

•

and the,, tion,

war,

subpoena

and

controls in

steelworkers

the

settlement of disputes affect¬

and

Aeronautical
The

which

an

Wage

.

In every case but one referred
have > not
especially proud of the fact that
lawed by the - Taft-Hartley Act.
by the President, the parties con-, this record has been established wages' in • your plant at least by That Act
requires an "open
tinued work and production while;
that per cent since January, 1951,
despite the lack of a no-strike,
union," that is, with membership
the case was pending before the
the beginning of wage stabiliza¬
no-lockout pledge or the patriotic,
open
to all applicants on

(3)

Steel

or

bilization Board in the prevention

peacetime

ef¬

and

for

cases

the

benefits you

mately a 7 lh% increase over the
ing the national interest is more January, 1951,-straight-time aver¬
submitted
nine
other
successful than the record of any age hourly earnings level in steel.
recommendations or de¬
I respectfully suggest that each
other
governmental
agency
in.

untarily

disputes

affecting

record

available

now

v'

The

to a fair and

as

in

practices

plant, I respectiully suggest that
each of you ask yourself whether

neces-' Dec.

injunction

possible

a

strike.

for

basis of settlement.
Employers and unions have vol¬

dling of labor

would

alternatives

are

Board

the

to

cases

equitable

date

the

12

that it

period

only

thus far cer¬

The President has
tified

the

to

of the Board's

Disputes Function to Date

lizing
(2) the

benefit

fringe

(2) Rates of Pay: The steel¬
parties- workers have
received
no
in¬

the

sarily take for some other organi¬
zation to start functioning.
The

Effectiveness

The

whether

doubtful

Board

out

comprised

is

your plants.
Wnether you run an
organized or an unorganized

such provision, it is*

if there were

would maintain the status quo for-

to date in car-

the

fits

II stabiliza¬

War

audience

This

mainly of employers.
Most of
you have
some familiarity with

the

.

lenged

proposals provide no method for
receive if the Board's recommen¬
the disposition of even the cases1
dations are placed into effect. \
pending before the Board.
Even-

proposals
the Steel
of union shop to workers.

acceptance of Wage Board's awards, and decries
to divest Board of its dispute jurisdiction. Discusses

intend to talk briefly about
three subjects: (1) the record

major compa¬

of the

few

a

nies.

provide for your
able to carry the case to a con¬ employees are not as favorable as,
or more favorable than, the bene¬
clusion.
In the second place, the-

than in the Consumers Price Index/Points out almost universal

Wage Case and defends grant

narrowing
of
the
differential, affects

mendation,
North-South

injunction.

Wage Stabilization Board

I

Taft-Hartley

under, a

obtainable

of

Commercial and Financial Chronicle

The

(1922)

in

ne¬

and

1950

form of union

some

authorized

by the TaftAct.
Some
form
of
shop prevails in such out¬

as

Hartley
union

for work

performed on Sunday as
such, effective Jan. 1, 1953. Many

standing

American

terprises

as

of

Allis-Chalmers.

who

you

do

not

and

In elections conducted under the

Taft-Hartley Act before the elec¬

a

one-quarter.

has
of

Sunday, in

been

made

premium

Sunday

is

that

argument

the

principle

for Saturday

not

applicable

Yet, such

to

employees
tion

opera¬

including alumi¬
glass, telephone, chemical
the
food-processing indus¬

and

tries.- Where
it is

a

usually in

voting
shop elections voted for

union

the
is

union

by

the

eliminated,

was

steelworkers

no

shop.
means

steel

The union shop
innovation in

an

industry.

In

of

total

a

workers Union is a party, covering
production and maintenance units

some

industries,

num,

in

the

of

premium is

a

continuous

in

a

requirement

83.3%

2,200 contracts to which the Steel¬

paid by management to

now

or

tion

operation

continuous

like steel.

of time

excess

The

pay

necessarily

and

premium for
or Saturday as

undoubtedly pay
Sunday as such,
as

con¬

en¬

Motors

in your plants

tinuous operations

well

have

business

General

in the

basic steel .and steel-fabri¬

cating plants,
sions

have

employers

to

994

of

by
the

page

35

provi¬

in

(45%)

>

premium is paid,
excess of

union shop
agreed

been

Continued

time and

on

one-quarter.
All

of these shares having been publicly sold, this advertisement
appears as a matter

C.

of record only.

The

18

There

Months'

NEW DEVELOPMENTS IN

Proposal.

frequent careless

are

AMERICAN

statements made to the effect that
the

199,900 Shares

Board

cents"

Kraus Automatic Machines

Corp,

(A Delaware Corporation)

reference

CLADMETAL CO.

the

to

firm 18 months' contract,

than
has

been

customary

industry

steel

Both sides
stability for as

in

period

a

as
will

steelworkers

possible.

The

foreclosed

be

Warrant

Share

The

ultimate

Board's
all

7 he

financing of this issue has> been arranged

the recommended

become

basis

through the undersigned.

cost

effective

(beginning

will be 26.1 cents.

the

six

of

quarters,

on

when

adjustments
annual

an

Jan. 1, 1953),
Averaged over

& Co

Large backlog

Roslyn Metal — conserves use of
nickel, chrome, tungsten, cobalt,

MEMBERS

111




NATIONAL ASSOCIATION

Broadway

,

SECURITIES

DEALERS

New York 6, N. Y.

DIgby 9-3484-5-6-7

hand

Electroshield

\

Saves

Metal
•

f

up

Duroclad

/

80%

Metal

j

Important

of

to

copper

-1

to these industries:

Automotive

Electronic

confusion

the Hoard's

or

Aviation

phone for free report.

GRAHAM &

The Union Shop Issue

concerning

on

•Columbian
•

Call, write

Considerable

this

now!

the cost is 20.4

cents.

Israel

of

•

the

all

recommendations

purchase

speculation

•

living

adjustments, productivity
increases, or on any other basis.

the

low-priced

from reopening wages for cost-of-

Price: $1.50
per

Stock

as

heretofore.

interested

are

the

in

Common

rather

contract

one-year wage

a

long

Common Stock

without

26.1

that the Board recommended

fact
a

"recommended

exists

jurisdic¬

610 Smitfifield
Teletype

COMPANY

St., Pittsburgh 22, Pa.

PG 541

ATlantic

1-7380

tion or authority to make recom¬

mendations
issue and

for
on

the

on

the

the

nature

union
and

shop

reasons

majority recommendation

this issue in the Steel

case.

GRAHAM, ROSS & CO., INC.
82

Beaver

St., New York 5, N. Y.

Teletype NY 1-1605

DIgby 4-2946

Volume 175

The Commercial and Financial

Number 5114

Chronicle

(1923)
back

Is It

Wage Stabilization,
Wage Stimulation Board?

a

Or

a

their

to

defense

In

June,

stituted

clause

try's

1951,

Board

of

the

wage

own

a

wage

Fascist methods and

asserts

socializing the country by

are

government agencies

capitu-

are

top

The steel

izing

our

ods.

It

is not

case

in

the

isolated

an

social¬

of

process

country by Fascist meth¬

is

climax.

a

But

we

expect
than

can

more

-

since the

in

the

the

case,

Stabili¬

zation
has

Board

recom¬

mended

union

the

shop in
before it.

cases

The

power¬

oil

ful

work¬

ers'

unions

have

cases

T. R. Iserman

The iron

be-

fore the Board.

•

and aluminum indus¬

ore

tries, with the United Steel work¬
ers again involved,
await rulings
of the Board.

John

:,

L.; Lewis

Mine Workers

his

and

in the

are

United

offing.

It is safe to say that the govern-

i merit

agencies

i

will

concerned

capitulate

as completely to these
they have in every im¬
portant matter that has come be¬

unions

fore

as

them.

Let's look at the record of capit¬

ulating.
On

•■■•X

Jan.

26, 1951, the Economic

Stabilization Administration froze

at levels

wages

fect

Jan.

on

that

in

were

25, 1951.

ef¬

On the 25th,

the United Mine Workers and the

bituminous

operators

*

very

large

cents

an

to

hour.

begin

were

The increases

Feb.

on

to

agreed
increases of

wage

1, 1951,

so

20

were

they

tion

6.

effect,

past and future
to

raise

Jan.

15,

Confronted

on

Jan. 25.

the

with

it

and

cause,

other

Mine

prices

1950, levels.

Members of

the

regardless of the. use
would make of the

groups

Workers' .raises

in

order

to

get raises for themselves. Industry
Members of the Board protested,

fruitlessly,
tion

No.

against

this

1.

of

from

30

approved
35

to

the price of

in

ton

a

not, by its terms, allow

an

for

to

effect.

Mr.

brows.

The

unions

would return
so

On

the

■

raises

ever

plague it still

since,

to

increase

the opposition of unsubsidized ship owners, approved an in¬
crease

all
any

wages

toward

the

at

30%
of

awarded

trucking

re¬

such

in

cases,

benefits

the

an

who

stand

do not,

watch

other

industries

others like

of

raises

in

wholly different
Regulation 8, dealing
intra-plant inequities, per¬
mits
in
single companies about
what Regulation 17 permits on a

tions

it, the Board approved

exceeding those its regula¬
allow

lated
did

because

the

"pro¬
unre¬

automobile
not

there

of

increases in the

ductivity"

business.

to

Labor

the

and

Wage
Public

employees, but not for
A few days later, it ap¬
similar arrangements for

others.

employees if
had existed

25, 1951.
Board

received

Board

and

but

the

cajoled

their

nationwide scale.

fairness
labor

and

equity demand

receive

at

least

15%

that

virtue of a loophole in its
"catch-up" Regulation, No. 6, and
by comparing the paper industry

than the

highest wages in history,
often a great deal more.

and

The

Board's

next

with

important

Regulation, No. 17, deals with sointer-plant inequities. The
Regulation, on its face, seems to
fair.

first

Supposedly,

determines

an

group" of plants in

the

In

the

Board

preceding

Korea.

six

months

Curtiss-Wright

recommended
an

Regulations,

hour

when

the

case,

increases

more

of

than its

stretched

to

the utmost, would allow, and more

than the union

This advertisement is not, and is under
securities for

the
on

sale

or a

The

NEW

claim little credit for that.

to

no

his

was

willing to

in

fact

wages,
more

established

and

caused

the

no

an

offer to buy

hard for

without controls.

an

employer not to

Continued

ac¬

any

to

on

oj such securities.

offering is made only by the Prospectus.

ISSUE

ar¬

coddled

return

defense

avail.

The

Texas Electric Service

to

Company

agencies,

unions

First Mortgage Bonds, 3%% Series due 1982

de¬

as their price for cooper¬
in the defense effort more

Dated

issued other regula¬
It dealt

Wage

we

have

ever

had in

May 1,1952

Due

May 1, 1982

They demanded a
Stabilization
Board
that

could relieve them

sibilities

of

of the respon¬

collective

bargaining,
things as .merit and
length-of-service increases. Em¬ which is a great burden to most
union politicians, and could dic¬
ployees
who
receive
such
in¬
tate political settlements of labor
creases are for the most
part not
organized. So there was nothing disputes as the War Labor Board
did in World War II. The Defense
unstabilizing about this Regula¬
tion. On the contrary. Later, un¬ Production Act permits the Presi¬
with

such

der pressure from both unions and

employers, the Board relaxed the
stiff controls

of Regulation

5.

Next in the process of "stabiliz¬
*An

address

Luncheon

Meeting

by

Session

of

the

Mr.
of

the*

Chamber

Iserman
40th

of

at

a

Annual

Commerce

of the United States,
Washington, D. C.,
April 29, 1952.




OFFERING PRICE

101.931% AND ACCRUED INTEREST

Copies oj the Prospectus may be obtained in any State only from such oj the
undersigned and others as may lawfully offer these securities in such State.

dent to

name such a Board
only if
industry and labor agree.
Industry,
naturally,
refused
to

both

L

agree.

Nevertheless, the President, by
executive order resting on no law,
appointed such a Board as the
unions demanded; and on April
30, 1951, the labor people trooped

BIyth & Co., Inc.
May 8, 1952

to

rise

universally than they would

have risen

circumstances to be construed as, an offer oj these

solicitation oj

minimum

wages

Jan.

manded

ating

unions

can

On the

contrary, I believe that, by fixing
it called ceilings, the Board

Union Demand

government

after-

But I think the Board

what

three cents

Board

"appropriate
industry or

an

dissimilar and unrelated in¬

dustries.

called

be

the

by

more

$8,000,000
by

in

posts

into

them No. 5.

it

another

.

Created

fascism than

among

But

require the
employers
sign the warranties the

to

time of peace.

The

those

equal

an

of

unioninzed

"interpreting" Regulation No. 2.
tions,

and

it approved

increase in the wages of the latter.
In the General Electric case and

industries.

more.

It

pay for eight of the 56
Then, having thus created
"inequality" as between sea¬

who

with

will

15, 1950 levels.

through the simple device
calling part of the increase

men

and

basis

Jan.

over

hours.

the

steel

the

on

seamen

overtime

the

benefits

watch-standing

did this

industry anywhere.
13,
dealing with

fringe

for

that raised their wages more than

group

a

indus¬

over

-

Look
Board

In

seem;

1,
1951,
at
the
hour, the ESA abjectly
cost-of-living plans for

eleventh

approved

go

approved

raise

in¬

and

wages

to

given

a

automobile

have weighed heavily

The regular workweek at
s$a is
56 hours and has to be. The
Board,

Regulation
fringe benefits, works like the in¬
ter
p 1 a n t
inequity regulation.

This ruling has plagued

Board

in

area,

highest in

they

to

to resist price

or

with

the

seem to

with it.

stuff.

anthracite increase in the guise of

'

ductions.
the

the

use

try

March

beetled

Lewis

Board

not

prices

satisfied

in

creases

sta¬

.

Thus

The Board's coal regulation did
miners

is

increases

cents

coal.

hard-coal

would
crease

that

wages,

of supposed

find,
industry or a
of plants it
can
call
"appropriate" and that
pay higher wages than a particu¬
lar plant. The inevitable tendency
given

through
excited

getting

been

either

by

so

raise

to

by bargaining and strik¬
Although the Board dis¬
sembled the fact, productivity in¬

ing.

(

proved
Capitula¬ non-union

The Office of Price Stabilization

went

of

employers warrant

round

rangements

immediately

UAW-CIO

motions

the

their

Board

Mine

they would

does

is

not won

auto firms had to sign.
Regulations 19 and 21, govern¬
And then in the steel case, the
cost-of-living increases. ing health and welfare plans and Board recommended increases in
to have agreed to the 10% figure
Under free collective
to keep the Public Members from
bargain¬ profit-sharing and pension plans, wages that were more than double
agreeing with the Labor Members ing, wage relationships are not' allow great latitude.
what its regulations alone could
static. Coal-mining, for
The stabilizers seem
on
a
more
example,
to
think reasonably allow and were more
unstabilizing regula¬
which now pays among the
tion.
high¬ that if money does not go directly than the union ever won by bar¬
Regulation 6 contained a
est wages, once paid
number
of
among ; the into workers' wages, it is not un¬
loopholes
that
the
gaining or striking. It piled cost¬
Auto workers, once near
Board has been dodging in and out lowest.
stabilizing.
ly fringe benefits and the union
the top in
wages, went well down
of, depending on the pressure in¬
Providing new or greater bene¬ shop on top of all this.*
on the list.
under
Nevertheless, the Wage fits
health
and
welfare*
In
volved, ever since.
the
Borg-Warner
case,
a
Board
seems
to
feel
that
em¬
plans or pension plans, for which panel appointed by the Board has
When the head of the Economic
ployees everywhere should share the
employer pays, reduces or recommended requiring the firm
Stabilization Administration
the advantages resulting from col¬ eliminates the
worker's need to to
bargain on a multiple-plant
signed the new regulation, the La¬
lective bargaining in
any indus¬ save f®r a rainy day or for old age, basis,
bor Members of the Wage Board
notwithstanding that always
try, and that the folly of employ¬ and leaves him more of his wages heretofore the
individual plants
resigned in anger, and union lead¬
ers
in
any
industry should be to spend and to bid prices up. Cer¬ have
ers in an outburst of patriotic fer¬
bargained
separately
and
visited upon all, however unsta¬
tainly, things
that the National Labor Relations
that make
more
vor withdrew from
their posts in
bilizing the results may be.
money
available
for
current Board has refused to require the
other defense agencies.
%
Having approved cost-of-living spending cannot be overlooked if plants to bargain together.
Nevertheless,
the
government
we are to stabilize our
economy.
Th,e Board's rulings in the pack¬
continued to make concessions, raise? in the auto industry, the
In
Board now revised Regulation 8
particular cases that have ing-house cases, the northern cot¬
and the greatest concessions of all
so
come before
that* employees
ton
textile
it, and particularly in
everywhere
case,
the Cleveland
were yet to come.
*
could receive
cost-of-living raises. dispute cases, the Board often has trucking case, in the construction
Before the freeze, a few em¬ So now
they could receive as a exceeded its own regulations.
industry, where it allows raises of
ployers, chiefly in the automobile minimum, about 15% more than
Thus, in the Southern paper in¬ 15% plus 15 cents, the "Big Four""
industry, had adopted so-called they were receiving in
dustry, it approved for people rubber
cases
and
others,
are
January,
cost-of-living escalator plans, apt¬ 1950.
who already are among the high¬ equally hard to
understand, not¬
ly described as built-in inflaters.
est
paid > paper workers in the withstanding the Board's labored
Inequity of Board's Ruling
Increases under these were com¬
world and the highest-paid indus¬ efforts to rationalize them.
Here's an interesting thing. We trial workers in the
ing due on March 1, 1951. The
South wage
great and powerful UAW-CIO was find the Administration saying, on increases 5 cents an hour more Board Has No Credit for Keeping
Down Wages
breathing defiance and making the one hand, that industry is well than its regulations allowed, and
surly noises.
enough off if its profits are 85% fringe benefits that violated its
Wages have gone up less rapid¬
of
pre-Korean profits,
The
but that regulations still more. It did this ly since February, 1951, than in
government
hoped
the

try

defense

coal

up,

It did happen; the raises took
effect, but only on condition that

allowed

over

"no

in

crease

goes

June, 1951, employees in the
Automobile industry and a few in
The Indus-1

10%

Members could approve the builtcontract, no work" in inflators. But the
unions know
threat, the Public and Labor
their
government.
And
sure
Members of the Board, on Jan.
enough, it was the government,
30, 1951, rushed out a regulation, not the
unions, that capitulated,
No. 2, tailor-made to allow the
and this notwithstanding that the
Mine Workers' raises to go into ef¬
government
was
about
to
cut
fect on Feb. 1, regardless of how
down automobile output, and
the^
unstabilizing they might be, re¬
industry as yet was making little
gardless of how much of an in¬

Workers'

it

this

period

a

less than the average.
The
Board
is
astute

pen.

general increases

wages

hour, on
increases,

approving these
increases, although past practice
showed clearly what would hap¬

on

In

have

about the Board's

Board

Board

not in effect

The

the

and

No.

in¬

of technological
changes,
improved methods or otherwise.

Feb. 15, 1951, the
Industry
Members
to General Wage Regula¬

agreed

twice

Wage

Finally,

now.

annual
an

of

cept in collective bargaining, plus
fringe benefits that the union had

bilization, in plants where, in the
past, employers, unions and em¬
ployees, for reasons of their own,

reason

struggled
regulation that would

a

or

oblige
produce

.

employers who had not an¬
ticipated the freeze to raise wages

In¬

deed,

steel

draft

four cents

not

cost-of-living

tivity,, if

allow

Public

climax.

more

to

the

wages,

anti¬

one

ruling

ing"

does

provides for

of

effect

during

whether output goes up or down,
and regardless of whether produc¬

Iating to the unions. Pictures Wage Stabilization Board as
"resting on no law," since under Defense Production Act such
board can be created only if both industry and labor
agree,
and industry has never agreed.
incident

It

of

,

another

"improvement

to work harder

anyone
more.

regulations, New York attorney says it has come
stimulation board. Points out steel case is only

of isolated incidents that

one

It

clause.

pres¬

into

ran

or

creases

its

sure

area, and compares the par¬
ticular plant's rates with those in
the group. It authorizes raises in
the particular plant up to the level
of those in the group. The obvious

newly-con¬

automobile, indus¬
contracts. This was the

"productivity"

Member, New York Bar

to be

an

the

factor"

By THEODORE R. ISERMAN*

Accusing Wage Stabilization Board of exceeding under

posts, well

rewarded for their walkout.

15

Kuhn, Loeb & Co.
Lehman Brothers

It

is

pay,

page

25

The Commercial and

Financial Chronicle

.

.

Thursday, May 8, 1952

.

(1924)

16

■

Bank and Insurance Stocks

For Greater N. Y. Fund
Harold W. Scott, partner in Dean

Y

As

195 2

Fund^

of

Fund's

the

Finance,

I

n

-

and.
Section.

surance

Law

lines, which constitute the largest
were quite prof¬
of companies on
the fire lines increased by two percentage points but the ratio was
still generally favorable. In fact, a gain in volume helped to ab¬
sorb the increase in losses so that many companies were able to
report underwriting profits from this source close to that of the

voluntary

welfare

agepcies bene¬
fited

by

Harold

The

Greater

previous year.

W. Scott

tp: business on behalf of this vast
network of member agencies,
serving all races, boroughs, and

by

unity in
of community need."

the face
One

experience of last yeac.

of

out

ranging

child

from

Pacific G. S E. Pfd.

Sleek Privately Placed
accqrding

to

^

an

'announcement

It

(par value $25 per share).
was
arranged

Blyth & Co., Inc.

The proceeds are

refund

$7,667,000

which

used to redeem

were

a

Insurance, and Fidelity & Deposit.

pretty much a matter of record
'and one must look to the future. There have been indications that
the automobile liability and physical damage lines have reached
a
turning point. Premium rates have been increased and steps
taken to put operations on a profitable basis.
This action could
Last

amount of unifying and refunding

bonds issued
by the
Joaquin Light &

mortgage

San

former
Power

Corp., which had matured

March

on

1,

nature
results.

North River

include U. S. Fire, Westchester Fire,

.Some of these

like

1952.

year's results

in

invest

companies which

as

result it might be advisable to

a

have

a

Pa.

While

—

representative premium volume in all of the major lines.

Herbert H. Blizzard is again serv¬

ing in the United States Air Force,
it is announced that George
N.
Fleming,
dean
of
Philadelphia
traders, and A1 Yeatts will
business.

Offices

run

the
at

To illustrate what

centage basis for 1951.

du

A.

Francis

I.

Ext.

and

9.4

13.2

1.8

10.2

13.3

5.1

8.4

23.7

2.0

15.4

Fire

of

'

13.5

7.4

3~4

12.4

0.8

1.7

12.0

15.3

0.2

43.0

10.9

0.2

17.2

2.4

35.7

4.5

6.5

14.1

4.4

26.7

7.4

0.1

50.0

11.1

0~5

5.8

19.6

14.8

6.8

78.4
10.8

1.0

*

0.8

8.4

Fireman's

Fund

Ins.

8.9

11.9

4.4

6.8

1.7

32.4

10.7

5.3

17.9

Firemen's

(Newark)

15.0

11.7

7.7

7.9

0.8

30.2

3.4

1.2

22.1

Kendall

Glens

13.7

14.0

6.7

5.9

1.7

26.6

5.9

7.1

18.4

12.8

11.2

6.0

7.9

1.6

37.8

4.5

5.7

12.5

14.8

Hollister April 30.

Falls Ins._,

Great American

Hanover

Fire

Ins.

Ins...

——

Hartford Fire Insur., 15.2
Home

Christiana

Ins.
New

of

River

Fire

Phoenix

have

Bulletin

glad

to

prepared

which

we

supply

on

a

will

St.

new

Paul

Spring.'ield
U.

S.

6.2

25.5

5.0

10~8

10.3

0.6

46.4

9.3

1.5

12.4

6.9

3.6

5.7

2.2

27.9

7.4

4.6

34.5

Fire

2.3

10.6

0.5

48.5

6.8

1.6

10.5

&

53.3
42.9

5.0

14.8

0.1

11.3

51.7

15.7

0~.l

6.0

10.7

14.9

5.8

6.0

25.5

10.6

5.0

17.8

11.2

12.3

5.4

2.2

11.2

1.0

7.4
:
—.

M.
...

Fire

16.6

10.2

12.5.
12.5

0.3

M

Fire..

Westchester

55.0

3.4

10.4

Co..

F.

0.1

5.7

14.4

Ins

Security Ins.

be

request.

11.2

7.8

4.8

_■

Ins.___
&

0.1

7.2

6.1

Insur._-_
F.

12.7

14.7

11.8

Am.

No.

Hampshire

Pacific

•'

3.0

Insurance

Co.

North

Securities Co.
We

■

3.7

10.1

0.3

12.3

0.8

43.8

4.7

58.5

5.3

1.6

2.4

9.8

1.0

7.7

7.7

13.4

58.1

7.2

13.6

7.2

——

'

——

38.0

12.1

52.0

10.8

17.9

Laird, Bissell & Meeds
Members New

York

Stock

Exchange

Members

York

Curb

Exchange

120

BROADWAY, NEW YORK 5, N.
Telephone: BArclay 7-3500
Bell

(L.

New

A.

Teletype—NY

Gibbs,

Manager

Robert

HARTFORD,

Calvert

B.

Conn.—Schirmer,

changes,

&

1-1248-49

Trading Dept.)

Specialists in Bank Stocks




(Special to The Financial Chronicle)

LOS

C. R.

ANGELES, Calif.—Marvin the

Abrahams

D.S.O., O.B.E., of

has

been

added

to

staff of Floyd A. Allen & Co.,
650 South Grand Avenue.

the

Inc.,

and

New
a

Dann
age

member of
Stock Exchange,

Coster Steers,

York

partner in Vietor, Common,
&

Co.,

passed away at the

of 56 after a long illness.

of

Canadian Decalta
foimed from

Decalta Oils

Deane, associated
Securities Corp. of

Mr.

the

of

new

Finance

company's

Committee.

with
New

Chairman

York, was also elected
'

Stockholders were given details

the

announced

have

opening of an office at 49 Pearl
Street, under the management of
Robert B. Calvert.
Mr. Calvert

of

new

a

underwriting agreement

King Ltd. of To¬
which approximately
formerly associated with $1,000,000 will be made available
to the company through the sale
Brothers.

was

Tifft

with

Allen & Go. Offers

by

units.
It

N. J. Nat. Gas Shares

Saunders,

ronto,

of

was

also

that

announced

Meyer Achtschin of Dallas, Texas,
has been engaged as Consultant
for the

Company.

Allen & Co. dnd associates yes¬

(May 7) offered securities
Jersey Natural Gas Co.

terday
of

New

Sntro & Co.

106,000 shares of 6%
cumulative
$20 par value pre¬
follows:

which are at¬
tached 106,000 common stock pur¬
chase warrants, and 212,000 shares
ferred

stock,

to

stock.

common

The securities

being offered in 106,000 units,

stock

stock (with one com¬
purchase warrant at¬

and

stock.

share

two

shares of com¬
priced at

Each unit is

$50.
New

Paul Duggan to

public utility operating company
engaged in the gas utility busi¬

Firm

Calif.—Paul
N.
Duggan will shortly be ad¬
mitted to partnership in Sutro &
SAN FRANCISCO,

Co.,

Montgomery

407

members

of

the

San

Francisco

Mr.

Duggan

New

Stock

has

Street,

York and
Exchanges.

been

with

the

firm for some years.

Nebraska Inv. Bankers

Jersey Natural Gas Co., a

Elect Officers

Neb.—The Nebraska
Bankers
Association
has elected the following officers
present
name
was
adopted on to serve for the 1952-1953 year:
April 4, 1952. The company here¬
President:
Cecil
W.
Slocum,
tofore served a territory compris¬
Cruttenden & Co., Omaha.
ing about 90 square miles in east¬
First
Vice-President:
Warren
ern
New Jersey, almost entirely
Chiles, Chiles, Huey, Schultz Co.,
in Monmouth County. On Dec. 5,
ness, was organized in 1922 under
the name of County Gas Co. The

OMAHA,

Investment

Omaha.

the company contracted to
Second Vice-President:
Jack
purchase the gas properties of
Jersey Central Power & Light Co. Redelfs, Eisele, Axtell t: Redelfs,
As a result of this acquisition, the
Inc., Omaha.
territory served will be increased
Third Vice - President:
Burt
to an area of approximately 950
Reed, Kirkpatrick, Petts & Co.,
square miles in the Counties of
1951,

Cape May, Middlesex, Monmouth, Lincoln.
Morris and Ocean, all within the
Fourth Vice-President: Marshall
State of New Jersey.
J.
Barlow, Robert E. Schweser

C. R. Coster Steers

Floyd Allen Adds
Y.

company,

Union

Co., members of the
New York and Boston Stock Ex¬

Atherton

10.7

7.8

41.0

-

Phila.

4.8

52.4

•

'

Deposit

&

Assn.

Comp.

0T

9.4
.

3.9
'

retired

8.9

Other

new

Ltd.

mon

men's

8.2

11.6V

Insurance..

Fidelity

Plummer

City

the former company,

tached)

Work¬

21.5

4.2

10.3

3.3

Ins.

rine

10.2

14.4

Insurance

Ma¬

Ins.
40.2

1.4

12.5

7.7

26.8

Surety

Continental

8.6

4.2

16.6

Ins

Ins

Surety

age

age

age

Fire

an

Gas and Oils Limited

mon

from limited partnership in Pyne,
&

a

of preferred

Inland

Fidel.

Cover¬

9.0

American

Federal

April 30.

Prop.
Dam¬

ity

Boston

in

Phys.
Dam¬

_

American

withdrew

Bacon

Pont & Co.

on a per¬

Auto

Auto

Agricultural

Howard

a

of Premium Income—1951

Liabil-

Exchange

changes:

partnership

major>lines

present

Percentage of Each Class to Total Written

Weekly Firm Changes

from

Colin Campbell,

of

Fire

plant and
plant.

Disque Deane
and Brig.

Ltd.,

York

New

of

are

Aetna

sulfate

Oils

Decalta

as

It is interesting to compare this with the

Auto

has announced the following firm

distillation plant,

recovery

TORONTO, Canada—At a spe¬
shareholders'
meeting
of

each unit consisting of one

The New York Stock

sulfur

cial

underwriting experience of last year as it helps to explain some

Distribution

William R.

have been writing about, we

we

table of distribution of premium volume by

New York Stock Exchange

ping and vacuum

& Oils Limited Formed

of the differences in results.

located

are

1421 Chestnut Street.

40,000 barrel per day crude top¬

a

Canadian Decalta Gas.

going to

companies writing primarily fire risks. Of course there
investing in those companies that have a

those

catalytic cracking unit,

day fluid

ammonium

in those

large concentration

"is another alternative of

PHILADELPHIA,

construction
program,
a 28,500 barrel per

which includes

a

profitable, the wise course might be to concentrate

continue to be
on

and

If this is not the case and fire insurance lines are

lines.

.

now

are

turn out to be favorable

Fleming, Yealls to

,

facilities

Schirmer, Atherton
Branch in Harlford

casualty business there is considerable variation in
premium writings among the different lines.
a large extent make up the ^dif¬
in underwriting results of a particular year.

industry generally, a number of companies, because of the
of their underwriting were able to show rather favorable

loans

penditures made , in connection
its expansion program in¬

with

New York volving accelerated drilling for
City, members of the New York additional production, increased
Stock
Exchange.
Mr.
Janareli exploration activities and con¬
formerly conducted his own in¬ struction of new refinery facili¬
vestment business in New York ties. The principal portion of the
will be applied ■ to the
and prior thereto was for many balance
refinery
years with Freeman & Company. completion of the new

of

companies which are engaged in all phases

Thus, last year, even though insurance underwriting profits
substantially below those of the previous period for the

V

bank

.

Co., 44 Wall Street,

Toronto, were elected directors

were

to be used to

of

Joseph Janareli has become as¬
with Neergaard, Miller

sociated

differences which to

these

is

ference

financing

through

reimburse

the distribution of the

redeemable first preferred-

stock
The

about

Joseph Janareli

and

the fire

on

of 5%

-

words, the underwriting experience of different com¬

Even within the

Ma^ ,6, has placed p&r
vately an issufe of *306,680 shares?

made

•

,

proceeds from the sale
$13,500,000 will be used to
the company for ex¬

the

Of
•

$54

1, 1967, and at

share thereafter.

per

unprofitable.

Gas & Electric Co.,

The Pacific

May

share to

of business it handles.
almost entirely in writ¬
ing fire insurance. Thus their experience last year should have
been generally favorable. There are others in the fire and casualty
group which derive a sizable portion of their premium income
from automobile liability and physical damage.
Such companies
were adversely affected by the conditions which made these lines

the aged.

shares at $45

common

share to May 1, 1957; $48 per
share to
May 1, 1962; $51 per

As all insurance

In other

v*-

per

panies varies with the type and amount
For example, some companies are engaged

to

care

underwriting lines also showed considerable
profitability last year.
r
.

interest.

debentures are conver¬

new

into

tible

same

people annually, are assisted by
agencies of The Greater New
York Fund each year, with prob¬
lems

.

companies do not write the same lines or the
proportion of different lines, these facts should be kept in
mind in analyzing the operations of a particular company or the
results for a particular year.
?

;

Yorkers, more than three million

help for

in their

'variation

New

three

every

V-. ;i;

,

Some of the other

heartening demonstra¬

a

tion of New York City's

points

approximately one-third. This increase in losses on auto¬
motive physical damage resulted in substantial underwriting losses
for the companies engaged in that business, and was undoubtedly
the main contributor to the general unsatisfactory underwriting

appeal

combined

higher, increasing by 12.6 percentage

loss ratio was sharply
or

Fund's

-physical damage, the second
somewhat different. Here the

important industry line was

most

Yqrk," he said, "is indispensable
to the well being of New York

creeds, is

The

&

experience on automotive

The

New

'The

plus accrued

for example, fire

Last year,

local hospitals,
and health
and

■

portion of premium writings of most companies,
itable.
The loss ratio of a representative group

"Each of the

423

*

;

Cali¬

convertible deben¬
tures due 1972 (subordinate). The
debentures were priced at 100%

changes such as inflation
and rising costs may have an adverse effect upon operating con¬
ditions, there is usually a considerable variation in the profitability
or
unprovability of the different lines of insurance handled by
'• the major companies.
-■ ,• 1
'

Chairman

Jr.,

by different factors.
'
Thus, even though broad economic

:t

issue of

new

a

3Vs%

fornia

influenced

casualty companies are

written by fire and

'r. insurance

campaign, ac¬
cording to Al¬
bert Francke,

7)

$35,0110,000 Union Oil Co., of

the different lines of

clearly demonstrated last year,

was

(May

terday

Stocks

This Week—Insurance

k

o r

Dillion, Read & Co. Inc. headed
investment banking group
public sale yes¬

an

which offered for

pointed Chairman of the Ex¬
changes
Group of The Greater
e w

Neergaard, Miller

H. E. JOHNSON

By

Witter & Company, has been ap¬

N

Dillon, Read Group
Offers Union Oil Debs.

Jos. Janareli with

Scott Heads Group

Joins Davies Co. Staff
(Special to The Financial

Co., Omaha.
Secretary:
old

Calif. —James D.
Dopson is now with Davies & Co.,
FRESNO,

T. W.

Harold Helme, Har¬

Chronicle)

Patterson Building.

Helme Co.,

Treasurer:

Omaha.

iArthur

Flodeen,

Smith, Polian & Co., Omaha.

Volume 175

Number 5114 V,

The Commercial and Financial Chronicle

.

IT

(1925)

Seattle

Spokane

Portland
OttOOM

Binghaml

WYOMMC

Lancaster

New York

CHy

'yndmoor

Cincinnati

Goodlan

lumboldt
Elawtido

ichmood
Norfolk

Santiago

Fruitiond

Topock

Polomijjp
Escondid

Apache

KW MIWCO

AsnoMA

Big Lake

Austin

San Antonio

RAPIDLY-GROWING
OINCE 1941,

the

Philco Corporation has pioneered in

research, development

and production

They

are more

continuous land

of

for

microwave radio relay equipment—and today is one

INDUSTRY

flexible because they do not require a

right-of-way, and have

simultaneous

multi-channel

a

capacity

communications

of the largest manufacturers of microwave communi-

which

cations

Philco equipment is
communications

,

more

cables,

are one

of the most promising

for

super¬

economically

than

with

comparable wire

Boon to

point-to-point communications, including

Philco opened the first regularly operated TV relay
link

wire

are

CONDITIONING




pany,

TELEVISION
•

RANGES

•

•

RADIO

1941, to transmit

•

programs

between New

Philadelphia. Later, Philco provided TV

links for American

especially vital.

•

in

York and

conditions, when dependable communica¬

REFRIGERATORS
AIR

reliable than

facilities, during storms, tornadoes and other

emergency

tions

more

and

Telephone and Telegraph Com¬

Western

Union Telegraph

Company.

FREEZERS

INDUSTRIAL PRODUCTS

the world.

Philco
Because

of

Engineering Leadership
the

advantages offered

by

their growth possibilities

are

many

very

telephone and telegraph service, and television and
are

pipe lines, railroads,

PHILCO

substantial. Every large organization with

a

need

Industry

sound

broadcasting. They

over

Microwave systems,

line facilities.

industrial applications of electronics today. They are
used

tele-printer and

and greater flexibility can be provided, in general,

Microwave radio relay stations, which replace land

wire lines and

be used for voice,

can

being used by commercial

utilities and the United States Armed Forces all

visory control functions. This additional reliability

equipment in the world.

now

companies,

for

a

potential

high-speed communications facilities is
user.

The growing network of pipe lines,

utilities, railwork, waterways, turnpikes and decen¬
tralized industrial
for

plants offer special opportunities

growth. And, Philco is continuing its pioneering

leadership in this rapidly-growing field.

Commercial and Financial Chronicle

The

.

.

.

Thursday, May 8, 1952

?

18:>(1926)

the offering for a limited
period of additional amounts of
2%% Treasury bonds, originallyissued in April of last year. These
offerings are part of the Treasury's program to raise as much of
tinue to increase our productive the
required- funds as possible
power.
On the financial side, it from nonbank sources.
means that we must do all we can
Here are some of the highlights
to prevent either inflationary or of the
modernized savings bond
deflationary forces from develop- program. All E bonds sola on and
ing, and to continue to build our after May 1 of this year will earn
productive capital.
3% interest, compounded semi-

keep our own economy

What's Ahead in Federal Financing
By JOHN W. SNYDER*
Secretary of the Treasury

defending the National Defense Program,
advocates building up of productive capital and avoidance of
inflationary forces to prevent either inflation or deflation.
Stresses need of further deficit financing, and explains recent
increases of interest on U. S. Savings Bonds. Maintains prime
Secretary Snyder; in

keeping up investor

Treasury Department is

of

objective

debt

the

in

Decisions

man-

on

j>eed

for sound decisions

is obvi-

ou's,

I

and

tremely fortuhav-

in

destroyed.

generations, and to the past generations who fought and died for
our freedom, to oppose this threat

have been ex-

nate

with all our strength.
There have b e en other
when our Nation has been
leaders
in by threats to-its peace ana
every field, rity.
We have engagea m
ing the willing assistance
and advice of

time
iac
secu-

cost y

~

.

the ad-

While

threats once and

a

■»

,

foi^

beforeTn our hhitory, and

SYffp

defend ourselves

«mU

l

W. Snyder

John

u

framework withm

1 y

PYnpn(,p

ni

the°nSeedsofto? Nation
ft

whole

n

nf

nnr

enal

real

of

the

neace

would be extremely
the proper debt

only the help
hand in arriv¬

not

is

it

ing
to

invaluable contribution

an

you

here,

and

every

these

out

to carry

helped

of

country banker
city banker, who in
communities hay$

every

own

your

All

policies.

financial

our

that has

decisions

policy

at

made

policy

decisions, have also played an important role. Your contrioutions
-

hnnri

couino-c

+ho

banks- reached an all-time ' high ?
of $188>188i962,000 onDec.; 31, -?
1951 an increase for the year of!
$10,776,639,000,. According to ,a re-?

capitulation of in the newly re-!
year-end state-:
ments appearing

domYdTus'tice* there'cam be"no slowly with the'defense program -.appliedIE to the new E bond:; Like rTcombineT'ra^itairsurplus and
than was originally planned. This series
bonds, the new series H undivided profits - and reserves
The Communist "waiting" will make it easier to maintain bonds will be issued only to in,-had grown during the year, from j
:

ce

,

9 $14,538,093,000 to $15,434,950,000—;
an increase of $896,857,000.. Other;
liabilities increased $lt)0,339,to to ;

tactics, with which we have to a strong and healthy economy and dividuals; will have , the same
cope rely, first, on the use of in- -to assure the maximum of military year, 8 month term;.and will have
ternal subversion to weaken the strength over the long run. . . ..
the same annual purchase limit, of
y
followed by the threat or
V
.
? $20,000 maturity value. Unlike E
open use of military force to com'Need of..Deficit Financing. ^ bends, however, they must be held
plete the grab whenever the ComI said the job will be an easier-six .months, rather than''two, be-^
munists-.believe that the democ- one, but I must hasten to add that fore they can be redeemed, and
racies have lost the will or lack it will nbt be an easy ofte. Fed- a 'month's notice- of.>• intention*?to
the means to take a stand.
] eral budget estimates are subject redeem will be required,-•;«These
Fighting such tactics is still td revision as this year progresses, bonds will be issued and redeemed
something new to us, and-the job but whatever the final figures turn- only by -i Federal Reserve Banks
2
..
^ead promises to be long and out to be, the Treasury will have and branches ahd at the Treasury.
arcjuous
yet
we
have already to raise substantial funds to meet The smallest denomination issued
made notable progress in building the deficit arising from the na- will be $500.
a worj^
based upon the rules of tion's military preparedness ex" WU11U UQJfcU
x^
—
Substantial changes have also
.

! But

,

\nicinn

•

»!onaoimpnt leri.imw
management decisions..,.
which has been at

j.

,,

,

.

.

"stretch-out" embodied in the de- ateH seale by: rates similar to that AT^iirr edition of the Rand-'Mcannually, of check,-on a gradu- vised
fn nroeeeH somewhat morp
'»

through-

wimuui

m

difficult to make

that we continue firmly to

resist being compromised, at

.

in1 toThwUh0,therTeeXnof their
touch with tne neeos 01 ineir
ahd with

qutres

solid

a

me

sinister tactics ever employed by
the enemies of freedom. This re-

ex-

e

m

It

the government will be operating the extended period.
wl*h a caJ?h deficit instead of;a .v. As a companion tpthe1. discount
surplus. The deficit, and the pos- E .bond an-entirely new current
sibility of a recurrence of lntla-. income bond,, designated series H,
tionary pressure, however,- will be wi be issued on June 1 1952. It
smaller than previously antici-,.. will be issued and^redeemed. at:
pated because* of the military par and interest will be paid semi-

must

we

.

..........

against the most

whmyo ma
uus

decisions..,

necessary

e

r

ffivine
giv

in
in

worthwhile
worthwhile

allof

Keen

?

~at

Deposits at New High

»

•

r-i Yas
groups
red

months we have had

some

McNally Reports

-

effort we COUAd e d

P5emf

received from
V

.1

1

1

the hope that, by onei

wars in

have

I

vice

For

period of general price stability
following the sharp increases in

cherish would
Our democratic
way of life would be crushed beneath the yoke of tyranny. We
owe it to ourselves, to our future

The

the whole economy.

fects

plying your joint experience and Js
understanding to the solution of »
those problems* * The power of}
America is the power of its peo- «
ple, throughout the length and
breadth of this land, thinking to- *

a

freedom which we

ef- be

agement field have important

that is by getting together and ap-4

annually, if held to their new ma- gether and working together for.'
turity of 9 years and 8 months, the common good. Wfc-have forged y
Interest on these bonds begins at a great nation! We haye risen to ?
prjces hhat occurred after the in- the end of 6 months and accrues our position of world power be->
vasjon 0f Korea and the Chinese at a higher rate in the earlier cause we were willing to give [
intervention there.
Wholesale years of holding than previously more than we expected in return.!
prjceS) as shown by the Depart- was the case. Tne yearly limit on By doing so, we have found ma- \
ment 0£ Labor a 11-commodity new purchases of these bonds has terial enrichment and the greater
wholesale price index, leveled off been raised from $10,000 to $20,000 satisfaction of accomplishment in ",
-n February, 1951, and have since maturity value.
building for the future. So long as
decjjned 0n ne( balance. The inLikewise, all series E bonds we hold fast to our ideals, our nadex of consumer prices, which reaching their original maturity tion and the freedom and justice'
con^nue(j ^o rise after that time, on or after May 1, 1952, if not under law ,which it symbolizes;
although more slowly than, before,,-cashed, will continue to earn in- need have no fear of the future,
began to ievej 0ff last December, terest for a period not to exceed
Nevertheless, we must a vnnu-iii jl v/ more j vua u uo mam bv vx **trxrJL
remain 10 iuvA v years at a rate of approxiv v Ci uivivOwj
vv c
xxx u u v
Rand
against further inflationary mately
3%, compounded semipressures, which may develop, par- annually, regardless
ticularly in view of the fact that holder redeems his
Deposits in the nation's 14,731

■

bonds.

confidence in United States

handle our debt management operations through our sharing of /
views and experiences. You, too,
are going to come out with better
answers to your banking problems in just , the same way, and c

strong and nounced

growing, as a key barrier to Communist aggression.
On the production side, this means that we
must both produce the arms that
are needed immediately and con-

&

.

.

.

.

_

.

.

$1,797,604,000, making the. total*
increase for all categories, $11.-;

773,835,000,

.

law and justice in which men can ^penditures. The Treasury has been been made in the series F and G
liye in freedom and tranquility, making extensive analyses of the savings bond picture. Effective
with
the aa^your Credit
Voluntary coop
were
supernnikhie ex"
and investment markets May T, these bonds
straint Program trl IlOldUie CX- Just over three years aS°' 011 money
K bonds
V

program

u

n

enoneration

r

die

smnfos of

A

ervice
service in placin
placing

w>ur

nationaMnteresrabove wha?

Ite

k

f

f;

be, at times, your own

may

mediate

,

,

the financial and

leaders in

As

business life of your

communities,

the pivot around which

are

you

lm-

personal interests.

SUth«°rpiion

Throush

revoWes

familiarity with the needs
the needs
and prospects of your local communities, you have it in your

your

power, as
tribute
our

Nation.

in your

try

few others have, to conthe
root-strengtn of
ot

to

in

I have full confidence

ability to assist this coun
meeting the challenge

which lies ahead for America and

ail

these
tnese

_„*1

defending

'Today,

keenly
for

need

attempt to

by the brutal use of

power

of America

future

Communist
to go

menace

arms

is

If we

unchecked.

with folded

protection, we
the

resulted from

will

defenses

tary

common

our

>e
be

enough to defend us

strong

against any

panies

and

pension

Despite

"this

strong

had the

effective

differences
privilege of be- in the recommendations as to how

ation.

Since

last

have

attended

been widespread

some of the t0 Some of
S° about
toward more
^

international

co-oper¬

September,

meetings

in

I

Ot¬

and q bonds.
The

new

and allowed Red

our

address

Rome,

have made in the

common

inter-

est seem to me to augur well for
the future of democracy.

free

by

meeting

of

Secretary Snyder at
banking correspond¬
ents
of First
National Exchange Bank,
Roanoke, Va., May 3, 1952.
/




$4,435,650,000,

by

increased

ever,

giving the combined total of gov¬
ernment

securities

exchange
$2,961,710,000.
sight

Investments

in

and

cash

and

net increase of

a

other

securities

been

securing the funds
proposals ho
nmnAcais have

VVe

Must

Keep

Our

cussed in the press
For

tual
we

success

example,

program,

number

"

of

banks

national

decreased by
21 and 10, respectively, while that
of state banks and other banking
private

banks

4

each, making

increase of

an

net over-all

a

re¬

duction of 23 from the 1950

a

new

investment by individuals in

United States

savings bonds.

were

4,940 national banks. Private

banks
tions

Announcements will be made in

® Jji
tn
meet
^eauhements But^
of

StaS S

and

other banking

numbered

spectively.

110

how

the

its
re-

eomolete fi-

and

institu¬

83,

re¬

s

The number of branches of state
banks

and

trust

companies

in-

bSnrbei in!Lnatlo^ial hank
142 a^d
new'totalV^lf^The
number of private^ baSks^'remai?
a

that of
part
SS3
of its new money needs by further Xat£nS
of- other
in'stftutiom in¬
creased from 85 to oo
92.
increases in its weekly bill offerings 0r by offering additional cer;n^5r nnfTdinpp in «ovDetroit Exch. Member
tificktes or short notes. On the ernment securities. It is mir re¬
our reother hand, it has also been rec- prnmpnT sp™riTlps
sponsibility not only to promote
DETROIT, Mich. — MacKenzie
ommended that the Treasury the purchase of new government C. Baird of the firm

bankiL
I: J

^ba10ur?W^tivewilTbetomaSi-

ought to put more reliance on bor-

rowing in the lone-term area and
the issue of both marketable' and
nonmarketable long-term securi-

Straus, Blos-

securities
,

.

,

by

nonbank

investors,
^

„

?
+s<^
fncou^ge tbese groups
we^han also'b/alert to Dosrible
ties has been orooosed.
shall also be alert to possible
,
'nnc;jpr:n(t changes in the economic situation,
rfeciKnu?^
onnn.mpp?
he prepared to try to make
a
pos b the , z
" balanced-use of all the tools avail!^eriS
J
^
tc) lls' in addlt.10n ^°. b
the Treasury s policy decisions are management and credit policies, to
,

w

»

•

r

have been made during

Two 1 of

these

ser

&

McDowell

has

become

a

„

—

member of the Detroit Stock Exchan.ge accordinS to an announcement just made by the Exchange's
Committee on Admissions,
a veteran of Griswold Street,

Mr. Baird has spent his entire
business life in the He
bankingmade
and
brokerage business.
was

hold in check the development of a partner in the George A. Mcannouncements inflationary or deflationary forces. Dowell Co. in 1948 prior to the

of the

however,

The

and

the past

week. The first concerned savparticularly must continue to ings bonds, and the other andefense

14^000and

!!!+ ll!It nf ductl0n of 28 from the 1950 yearyear"
? ^eia a
i Ln end total of 14'754' State banks
coraPanief numbered
fident will encourage substantial 9593 tr.ust
at the year-end, and there

recent months
individuals

in

groups

I1}? nAeir year_end total $2'811}-

0

and dis¬ Treasury Objective Is Maintaining
and elsewhere.
Confidence in U. S. Bonds

made.

mu-

Z'ZlCrh'"we

reported

Economy

Strong
To assure the

which I have

these

widely

$^8,755,819,000, while other resources gained $246,^1,000 mak-

institutions showed

program

the

ever

have

trust funds.
agreement as

desirability of borrowing
the. necessary amounts from nonbank Investors, there have, how-

to

;

attack.
I

millmili-

mutual defense burden.
The sinstood by cere efforts and sacrifices they

enterprise
system would be wiped out. Every
•An

can

time when

mutual selfforesee clearly

permitted

imperialism to have free rein, all
of the material gains which have

dinner

provide

of their abilities their part of the

Red

The

aware

the

is the

and will
intermediate
the F and G bonds
hifiher

-

to

begun

if the

our

for
bui Id ing impregnable defenses
against the threat of Communist

military

Dav

vv

has made us all
of the consequences

dominate

must

crush Korea

as

savings bonds or the issuance of
entirely new types of savings
bonds. It has also been suggested

actions,

aggression.

myuch
viJids than

much

as

tion's Council. The Council is
composed of the foreign ministers,
defense ministers, a n d finance
ministers ol The" N ort h Atlantic
countries. Each of these countries
has its own individual problems of
participation in defense, but these
problems have not stood in the
way of progress. It has been inspiring to see among the ministers
at these Council meetings the high
spirit of cooperation and of determination to shoulder to the limit

faced
grave threat to our
libThe important
task
before us, and the task which
are

a

necessarily

fuu io Vears to maturitv

possible of our
borrowing requirements should be

that

various

Program

and the other free

we

agreement among all these groups

the short

and Lisbon' of the
North Atlantic Treaty Organiza-

Defense

of government securities which,
showed <t-7ireductionnn0 $1,473,940,- :
a C7QQ oqc of Cash and;'
+«
000 to $71,788,236,000.
amounts due from banks,
how-;

^,,v.

„

in s*re"?,th and u,nityh„as ex- met from nonbank sources, that is, The combined annual ■ purchase
'1? SC°P,r t0 lnClUf?
fr0m individuals- nonfinancial cor- limit on the series J and K bonds
and Turkey. If we continue the porations, and institutional inves- uas been raised to $200 000
as
vigorous sustained effort wc v— tors such as life -•
we have <
insurance com- nas Dee
'
compared raisea 10 9^uu>u the F
to $100,000 for

we

peoples of the world

national

In

freedom.

since then, the North Atlantic community has grown steadily

reasons,

the

U

^

space

tawa,

with

10

-in/in

year-end;

the

and

April 4, 1949, 12 nations of Europe and has been discussing our prob- seded by series j and series dif- than governments- were up $1,and North America, intluding our lem witlr representatives of the.:^spectivaIy. The new
own Nation, met1'together to sign Federal Reserve jSy stem and of.„ fer^f rom "the old" series "primarily ' 099, i 68,000 for the year to $15,-;
%
a.,
,
a-:
F- U1Q.
09Q isn nnn
the North Atlantic Treaty for the leading
investor and-financial ih* their interest "rate" schedules. 929,150,000. T.nono- and discounts
Loans
purpose of preserving peace and groups. There has been general Tbev wjn Dav 2%% if held their increased $7,466,166,000, to a total

reSon?\1Cwelcome tnis ing associated taken
with
l welcome Sis
g^pg
have

opportunity to talk over with you
some of the grave problems that
confront us all at the present time.
Why

A

,

grand total $205,421,516,000. ; V ;
All categories of resources in-1
creased with the. single exception;

In meeting the situations that firm's merger with Straus, Blosser
face us in the year ahead, we are and is also a partner in the new
going to be better prepared to firm.
...
.

Volume 175

Numbcr-5114

»

Commercial and Financial Chronicle
The

,.

IMPORTANT FACTS

in

FROM

THE

1951

(1927)

ANNUAL

REPORT

OF

STANDARD

the

free world,
people use tremendous amounts of
Meeting their needs, rising year after year, has been
one of the notable industrial
accomplishments of our time.
For
example, the peak war effort in 1945 pushed use of
oil 23%
higher than in 1940. This looked like a mark that

At Baton

oil.

r

^

58%

was

At
v

,

been provided
•<

largely by the industry's

earnings.

own

How this works out is shown in the

In the United

-

Ordered twelve

-

Began to bring Western Canadian oil to consumers in the
Eastern
provinces by means of two large, new Great Lakes

'

;

;;

Company (New Jersey), an American corporation having
investments in companies
carrying on the varied functions of

tankers, with

.

.

.

In

a

third

Jersey and affiliates for 1951
was
$528,461,000. Of this, $278,862,000, or 53%, was used
to
help provide new equipment.
In the six
years since 1945, Jersey and affiliates have spent'
$2,350,000,000. for" replacement and expansion of "facilities^
Depreciation and depletion reserves provided only 44%: of that
amount. The;
largest share of the expenditure was met by the
reinvestment of earnings. / T V' ' V
' ?
During 1951 alone, to do their part in supplying more oil

going in service this spring..

-

■

v.-'

Iraq, Iraq Petroleum Company brought near completion
a new 556-mile
pipe line from the oil fields to the Medi- i
terranean. It will

Consolidated net income of

;

total of

war

■

~'

...

new

ocean-going tankships, bringing the post¬
those purchased or contracted for to 72...

the oil business in the United States and abroad.;

:

States, boosted pipe line capacity substantially,

particularly in the South

•

*

permit oil production in Iraq to be

than doubled in 1952

•

more

-

...

\Advanced (Research
)

?blL FOR

HOMES

*

;

■ffA ■
•.;

Put into the search for

new and improved processes and
prod-'
ucts a l°ta' °f $23,100,000, one of the largest expenditures
for such a purpose by any company... \ /; ? v":

;V,

:,A

,

,;

.

"

.

\-for the free

pany

Continued

world, companies in which Standard Oil Com¬

(New Jersey) has investments:

-

-

States, made

company and its employees in maintain¬
ing good mutual relationships resulted in another year
without strikes or work
stoppages in the domestic affil¬
iates. This was an
important factor in meeting the in¬

OIL FOR RAILROADS

new

In the
two
r*' the

up a new area

Middle

in Colombia

Venezuela, and

/AS

...

\f

East, Arabian American Oil

important discoveries,
Persian Gulf

one

Company made
in the offshore waters, of

OIL FOR SHIPS

more

who

own
Jersey, but to people on freedom's side all through
world, the two outstanding facts about our Annual
Report
for 1951 are: (1) Jersey affiliates
again did their part in meet¬

since

oil from existing fields

...

Venezuela, completed 190 producing wells...

Canada, increased total producing wells from 844

to

FINANCIAL

SUMMARY

1,140...
In

it Calls for

STRENGTH,

oil. So, not just to the 254,000 shareholders

ing the growing needs for oil; and (2) the competitive busi¬
system that did this job produced the earnings to help
meet even
greater needs in the future.

1937, and greatly expanded secondary recovery opera¬

In

more

ness

In the United States, drilled more wells than in
any year

In

THE FREE WORLD GROWS IN

\ and

the

...

Developed Production
tions to get more

...

...

In Latin America, extended known fields in

opened

creased demand for oil

oil discoveries in the Williston

basin, the Uinta basin, and Texas

§ooXPLmyhyee(Rdat\0\\$

The interest of the

>

'Discovered. Oil
In the United

the

Middle

East,

Arabian American Oil

Standard Oil Company (New Jersey) and Consolidated Affiliates

Company and

)

Iraq Petroleum Company increased production 57%

Total income from sales,

...

Taxes

services, dividends and
interest

Izxyanded. (Refining Capacity
At

Winnipeg, in Canada, opened

a

new

Net income
or

Dividends

...

$4.121/2 per

■'if.




1

OIL

1 AND

COMPANY; (NEW JERSEY)

AFFILIATED COMPANIES

-

—

"• /

We will

;

gladly send

a copy

Write Room 1626, 30

Spent for

new

plants and

facilities

$381,824,000

Number of shareholder-,

share

Wages and other em'
ployment costs....$600,500,000

STANDARD

governments ........$329,900,000

$8.72 per share

$249,599,000
or

,.....$400,700,000

Other taxes, collected for

$528,461,000

OIL TO MAKE CHEMICALS

charged to

income

......$3,863,317,000

refinery and, at

Edmonton, Sarnia, and Vancouver added facilities

.

HExyandedPransyortation

of Standard Oil

case

on a refinery, and at
Bombay, India, completed arrangements to build a new
,

higher

'

Durban, South Africa, started work

/

large

on a

one,...

To

r

Antwerp, Belgium, proceeded with field work

-

-

supply this oil has called for great expansion by the
petroleum industry. It has meant new wells, pipe lines, storage
tanks, refineries, tankships . .* in times of high costs.
The job has required a Vast outlay of money; which has

Rouge, La., and Everett, Mass.,enlarged refineries...

Fawley, England, put the largest refinery in the United
Kingdom on stream
...

topped for years.
.
vigorous post-war reconstruction, and expansion of
industry, transportation and agriculture, made oil use in 1946
-

JERSEY)

At

But

than in 1946.

COMPANY (NEW

At

would not be

greater even than in 1945. And in 1951 it

OIL

owners

.......,.....i...;.254,000

'

Number of

employees...... 120,000

of the full report if

you

wish

one.

Rockefeller Plaza, New York 20, N. Y..

•;

19

The
20

Commercial and Financial Chronicle

.

Thursday, May 8, 195£

.

.

(1928)
'

i

Board

Vice-"Presi¬
President. Both
promotions are to become effec¬
tive July 1. Mr. Mitchell had been

dent, was elected

with

by a brief talk by
Vice-President Roger Steffan. The
Division is the first of its kind to

nongovernment bank
years ago, announced
May 1 the formation of Inter-

D.

C.,

a

founded 32
on

four years

June,

In

of

Officers

the

new

p.m.

the

bank

two

Edward

that

meed

Guy Martin have been elected
directors of the Bank, increasing
the board to 14 members.
Mr.
a ad

Detroit, Mich, at

Bank Trust

spe¬

a

appointment

v.

*

*

*

.

Hutton is Assistant Vice-President

basis

six

Secretaries.

Assistant

as

VAvAA'A

on

will

stock

new

shareholders

to

■;

of

held

by

record at the close of business on

If

Roth, President

T.

Arthur

Rockefeller Center Office in New
York

Chemical

of

Company,

it

May 6 by

30 years,

over

Chemical

with

bank.

Cyanamid

for

Mr, Perkinson is

a

"If

we

ban

portunities

ping

Treasurer

rector and

of Jefferson

Chemical Co., Inc., jointly owned

by

Cyanamid

Company,

The

and

and

d i

a,

Minerals

.Southern

Texas

r e c

t

o r

Corp.

of

and

*

#

Announcement
James

A.

is

McBain

made

has

*

from Treasurer to

vanced

President

the

of

Chase

Active

in

cles, he served
of the

New

safe

of

Safe

De¬

deposit cir¬

State

of charge

account

privileges in their local

not

commun¬

While the plan is new in the

banking function, it is

a

with

new

For the past

us.

have

we

been

Safe

posit Association until 1951
lias written extensively on

De¬
and

safe

deposit subjects for various finan¬
cial
journals.
His
position as

chased

more

than $1,000,000 worth

of

goods and services
charge account basis."
Jj:

the

on

$

tional' Bank

increased

of

its

Jamestown, N. Y.
from

capital

000 to $1,000,000

by

$200,-

stock divi¬

a

*

Edward

L.

Howe,

President

of

the

from Assistant Treasurer.

Bankers Association and also

*

At the regular

meeting of Board

of Directors of The

National City

]ftank of New York held

Elwood

J.

Mahon

Assistant

former

a

New

was

on

May 6

appointed

Vice-President

and

Bank
N.

J., died

special

Grady

Co.

of

April 28.

on

advices

the

to

also quote the

we

"He

was

American
and

also

From

Newark

a

reporting this,
following:
member

Bankers

served

on

the

of

nati

dent

and

ten, and Joseph D. Stefan

a new

Ex¬

department

firm, George Eustis, Presi¬

announced.

Mr.

20

Stock

Midwest

and

changes. This is
for the

Grady has had

than

more

years' experience in the securi¬

ties

business, recently being

asso¬

ciated with John E. Joseph &

Co.

Since

1947 he was specialized in
municipal bonds. He is a member

Club,

and Bond

Cincinnati

Municipal Bond
Group and the National Securities

finance

pointed
tie

Assistant

regular

rectors

of

Cashiers.

meeting

of

City Bank

'Jfrust Company held

Gregory Miller

was

on

"He

At

the

Di¬

Farmers

May 6 H.

appointed As¬

sistant Trust Officer and Assistant

On
Bt

tional

in the

City

Bank

of

associated

was

of The

New




Na¬

York

New

with

in

1910

organization
He was named

and

served

in

capacity for two years."
Mr. Howe was 82 years of age.
*

formed Mallinson
offices

York

at

165

City,

to

Weir, Inc., with

Broadway,
engage

New

in the

se¬

curities business.

adelphia
K.

veloped.

Among

held

on

Mitchell,

May

1

William

formerly

Presi¬

ones de¬

new

these

are

isomerization,

merization,

poly¬
oxida¬

tion, and high pressure synthesis.
Reactions
that
were
previously
considered

commercially

impos¬

oxidation with air
petroleum
hydrocarbons
to

of

the

ago

produce simultaneously and con¬
tinuously many industrial chemi¬
(the Celanese process), would

not have been considered feasible.

old

SAN

FRANCISCO, Calif.—Ben
Goldberg is now proprietor of
Waldron & Co., Russ Building.

L.

A. M. Kidder Adds
to

The

Financial

Chronicle)

DE

LAND, Fla. — J. Cleaver
Bradley has joined the staff of
A.

M.

Kidder

&

Co.,

112

de¬

mand

by giving more production
lower
cost.
Ammonia,
the

at

chemical

has

that

given

such

an

agricultural
yields, came entirely from coal 20
years ago. Today, nearly all of it

Now Proprietor

(Special

have increased

processes

impetus

North

better

to

natural

Its cost

comes

from

means

it is possible for the farmer

gas.

to make fertilizer pay

big returns.

and

processes

new

products have been developed. We
have

mentioned

which is cheaper

product

and

characteristics.
are

Woodland Boulevard.

the

synthetic rubber
than the natural

superior
in some
Synthetic
fibers

latest

development

George C. Thayer
George

Lynch,

C.

Thayer,

Pierce,

passed away on

Fenner

of
&

April 21.

Merrill

nylon,
orlon,
dynel,
dacron, to mention some. Propy¬

Beane,

lene,

a

wasted,

petroleum
now

product

to

way

third

The

use

it for

gasoline.
affecting

factor

the

of the petrochemical in¬
is the widely diversified

Chemical

market.

consumer

products literally find their way
into every phase of our economy;
into such varied uses as counter
tops, ethyl alcohol,
bed

spreads—from

cosmetics, and
the bar top

the boudoir.

to

The
for

consuming markets
may be clas¬
including plastics, rub¬

major

petrochemicals

sified

as

plasticizers, synthetic fibers,
paint
and
protective
coatings,
fertilizers, automobile chemicals,
insecticides, pharmaceuticals and
ber,

detergents. This large number and
wide
diversity of end uses has
added

stability

chemical

these

to
It

industry.

reduction

that

in

the
is

demand

markets occurs

petro¬
seldom
of all

at the same

time! This fact has meant that

the

has weathered
economic storms better than some

chemical

other

industry

industries.

This

does

not

that the petrochemicar industry is immune to
mean

to

business

imply

cycles,

but

it is

that chemical sales volume

a

fact

stead¬

ily increased during the recession
years
A

of the thirties.
Self-Generating:
Industry

Chemical
j

—

acetate,

*

meeting of the directors of

Provident Trust Company of Phil¬
R.

improved and

Petrochemical improvements in
H. M. Weir and C. Schaefer have

the

that

a

been

a

valuable high octane

dustry

Known chemical reactions have

cals

Mallinson Weir Formed

Bankers' Association

early 1900s.

President

At

growth

can

years

time of its

*

establishment of the Per¬

of

products that petrochemistry
make are almost unlimited.

Entirely

#

Credit Division

Representative

New Jersey

May 2 the 24th anniversary

the

sonal

#

a

from the

Secretary.
*

as

have

World

France, Africa and Italy. I

found

production flexibility and entirely
new processes. It means the num¬
ber
and
types
of
chemical

sible have been developed. Twenty

Association. During
War II he
was
a
major

J ersey;

were ap¬

Petrochemistry

Traders'

Association
ABA

9

The Rise of

Eustis & Co., Traction
Building, members of the Cincin¬

the

committee, the Executive Council

Herman J. Grip, Bernard J. Mar¬

municipal bond department

Geo;

for¬

Princeton,

Continued from page

May 1 became manager

on

Jersey

"News" of April 29,

Carter S. Ransom, Ernest W. Red-

eke, and Cecil Wilson, formerly
Assistant Cashiers, were also ap¬
pointed Assistant Vice-Presidents.

Trust

&

herrings" of 1948 due to return in

Are the "red
1952?

CINCINNATI, Ohio—George T.

merly President of the Princeton

*

business

the
Army ground forces,
serving three and a half years in

»:-

higher than those prevailing in the American
community."—President Harry S. Truman.

are

a

with

dend of $800,000.

in

firmly believe that its ethical standards are as high
those of any Government in the history of the
world.
I firmly believe that its ethical standards

$200,000.

of the Cincinnati Stock

Effective April 18 The First Na¬

Treasurer will be filled by Henry
P. Steitz who has been advanced

*

12

quietly

Government service,

as

23)

by

the

Geo. Eustis & Go.
of the

of

April

that

is

*

light of its tremendous size and scope, has a
remarkable record of honesty
and integrity.
I

George T. Grady with

must

proving the method and today are
servicing more than 23,000 Nassau
Vice- County families who have pur¬

Vice-President

as

York

op-'

ad¬

posit Company of New York. Mr.
McBain has been with Chase since
1919.

the

retail busi¬

small

for

of

$300,000

truth

"The

❖

the

small towns,

our

preserve

that

been

(as
to

stock dividend of

4arger share of local shop¬

months

sis

$100,000

advantages
ities.

Co. and Pittsburgh Plate Glass Co.

increased

Some part of

sense

Cyanamid

our

be kept at
this objective
can
be accomplished through
making available to families the
home.

owned

American

to

dollars

Southern Pipe Line Corp., jointly

by

and in

further

ness, a

di¬

a

maintain

to

are

areas

and

its

companies,

been

from

stated:

expect the same
will turn

can

any more we

need to be

communities."

our

they
are

kick them out and prosecute them if they
prosecuted.

them up,

"

present economic levels in subur¬

di rector and Treasurer of most of

subsidiary

and

nessmen

In part he also

on

Baxter Jackson,

of the

Associated

Trust

&

announced

was

N.

Chairman

Bank

turn up any more,

we

treatment—and if there

.

.

for

service

Government

in

room

no

who have violated the criminal statutes.

all those

of April 29. These rights will expire
on May 14.
The offering is under¬
national industrial and trading The Franklin National Bank of
written by a group of underwrit¬
Franklin Square, Long Island, an¬
concern,' New York City.
From
ers
headed by Watling, Lerchen
1945 until 1947 he was Deputy Di¬ nounced on April 30 a retail store
& Co. and First of Michigan Cor¬
rector of a joint United States and charge account service available
poration. The Detroit Trust Com¬
U n i t e d Kingdom export-import to the families of Nassau County
and the smaller retailers who do pany will act as subscription agent.
agency in Germany. Mr. Martin is
An earlier item on the plans for
not have charge account facilities
aa attorney in Washington, D. C.
the issuance of the new shares ap¬
*
*
Si«
'.'.'is. to offer. In announcing this serv¬
peared in these columns April 24,
ice, Mr. Roth said, "this is another
Lewis C. Perkinson, director
step in our continuing search for page. 1714. * #'•
'*
if
and Treasurer of American Cyan¬
amid Company, has been elected banking and credit functions that
The capital of the First National
will benefit our people, our busi¬
to the Advisory Board of the
Bank
of Independence, Mo.
has
of W. R. Grace & Company, inter¬

is

who is not true to his public trust. We have
had a few bad people turn up in Government, just
as they do in business and industry.
They are not
in the Government now, and we are prosecuting
anyone

each

for

shares

;

of

"There

through is¬

share

one

one-half

and

women

corrupt and even disloyal.

of¬

be

and

the Government.
And so they have
launched a campaign to make people think that the
Government service as a whole is lazy, inefficient,

suing them rights to purchase new
stock at a price of $60 a share on

of Edward • H.
the
Mackin, Jr., and Oliver C. Seholle

the

The

fered

Company of New York announces

Hutton

L.

at

meeting

each.

if

,

The Corn Exchange

of International Bank, further an¬
no

if

jfe

Mr. Vreeland, President

Panama.

job of carrying out the pro-

grams

April 29, voted to
increase the common capital stock
been
of the bank by issuing 50,000 ad¬
penditures, home repairs, medical
ditional shares (from 325,000 to
or educational costs or other con¬
375,000 shares) of $20 ,par value
structive needs.

in

one

cial

totaling $2,127,227,444 have
made to meet family ex¬

loans

Paris,
France, the other in Panama City,
affiliates,

other

Bank

1928, 5,705,228

Division in

men

The shareholders of The Detroit

of the Personal

President Truman

who have

the

the

if

if

if

the

accounting is

persuade the people to give up
the gains of the last 20 years,
but they think they can under¬
mine those gains by attacking

Manufacturers

the

another

for

approaching, and the opposition
is becoming rather frantic.
"They know that they cannot

a

the formation
Credit

of

director

a

Today,

verdict.

time

recently Casualty Insurance Co. and the
testimonial at the Manufacturers Fire Insurance Co.,
Instalment Credit Con¬ both of
Philadelphia.

National

Bank states

forming

is

program

as

been

have

office

in

popular

'

Mr. Mitchell is a di¬

Mr. Steffan was

ference, sponsored by the Ameri¬
can
Bankers Association. Since

movement
abroad and
cooperating with American busi¬
ness in expanding overseas opera¬
tic is.
T. Reed Vreeland, Presi¬
of International

a

honored with

of American products

that

•

starting at 4:25

with

dustry by financing the

ded

silver

its

mark

will

and its con¬
it should be.

programs

That is

years, the programs
policies of the Admin¬

the

istration

Credit unit
sity of Pennsylvania Board of
anniversary Business Education. Mr. Sawin is

Personal

the

1953

In

'corporation are Herman Henniriger, President and Eric L.
Meyer, Secretary-Treasurer.
The
ba: k, formed by private investors
in 1920, specializes in the further¬
ance of international trade and in¬

for its policies, its

upheld, time after time, by the

organized by a major American rector of The Provident Mutual
bank, it is stated. Each year, sim¬ Life Insurance Co., Com m o nilar events have been started at a wealth Title Co. of Philadelphia;
precise moment after four o'clock Fire Association of Philadelphia;
to indicate the anniversary year. etc. and a trustee of the Univer¬

wholly owned subsidiary with of¬
fices at 608 Fifth Avenue, New
City.

to

April, 1951.

democratic sys¬

our

recent

and

April, 1944, and was promoted
Executive Vice-President
in

in

operation of

duct of the Government.

service

be

national of Washington, Inc., a

York

marked

was

A

I

A

tem, every Administration is held to account every

1913, and was elected Vice-Presi¬
dent in December, 1932. Mr. Sawin was elected a Vice-President
International Bank, Washington,

■

Herrings Again?

"In the normal

since

company

1947. He began his
Provident Trust in

July,

CAPITALIZATIONS

the

of

President

Bankers

and

REVISED

ft

1

Red

n,

Executive

formerly

News About Banks
CONSOLIDATIONS
NEW BRANCHES
NEW OFFICERS, ETC,

Vl

of the

was elected Chairman
and Benjamin F. Saw

dent,

once

is used to make glycol

anti-freeze, glycerin and synthetic
detergents, and the oil companies

phenomenon peculiar to the
chemical industry is that it is selfA

generating. Chemical companies
buy from and sell to and compete
with
other
chemical companies.
The

growth of one segment of the

Volume 175

'

Number 5114

.

.

The Commercial and Financial Chronicle

.

industry generates growth in
segments.
"
Petrochemicals

have

all

raw

material

Even

costs.

'

to

though

locate

near

large chemical markets are
in the East and the Midwest, the

many

extended

(1929)

in

21

petrochemical

these

plants proving new reserves has actually They are aware of the eventual
This results increased. Today we have 27 bil¬ possibility of the decreasing raw
chemical plant lion barrels of oil reserves, equal material availability. They there¬

pipelines.

locating

the

the

consuming market. to 12 years supply at our present fore
recognize that future supply
companies have located consumption. In 1940, we had 19 must be protected.
transportation costs
and
other
chemical
industries
than the raw materials.
This is plants of this nature in the Ken¬ billion barrels. It was also pointed
Oil companies started petro¬
have
entered
the
petrochemical
out that the petrochemical con¬
particularly true where water tucky-Tennessee area.
field
for
new
and
more
eco¬
chemistry with waste products
The
inevitable
question that sumption is comparatively small. Growth of petrochemistry made
shipments are practical.
Many
nomical products: oil companies
companies have found .they can arises when discussing natural re¬ Even if it is doubled, it would use these by-products valuable raw
entered
while
improving
fuel
offset high transportations costs by sources, particularly petroleum, is less than 2% of the total crude oil materials.
Oil companies entered,
quality,
rubber
companies
for
barges and seagoing tankers to what about depletion? How many production of 6.4 million barrels into the chemical business. Fuel
synthetic
rubber.
Textile
comEast Coast and Mississippi River times have you heard in the last per day.
value of these raw materials is in¬
panies turned to this field to pro15 years that oil resources will be
These favorable factors do not creasing.
Now chemical com¬
duce new synthetic fibers. Wit¬ ports.
However, there is also another used up shortly. And yet today, mean that petrochemical com¬ panies are going into the oil and
ness
the
new
joint
ventures
tendency in the petrochemical in¬ after large increases in consump¬ panies are complacent. They are gas business to protect their raw
formed:
Jefferson
Chemical,
dustry which has become signifi¬ tion of domestic crudes, following aware of the increasing demand material supply. Thus, a cycle pe¬
owned
jointly by American
cant. Now that there are natural the loss of the Iranian oil supplies,
Cyanamid and the Texas Com¬
for petroleum as a fuel and the culiar to the petrochemical indus¬
gas pipelines in almost every part United States oil reserves are the
pany
(Chemical
Industry
plus
of the United States, it is possible highest in history.
The rate of resulting trend in price increases. try is being completed.
Oil Industry);
American Petro¬
chemical, owned jointly by Fire¬
into

industries.

many

finished product

Inorganic

able

is usually better

nearer

Several

to carry

.

,

«•,
h

£

stone

Cities

and

Industry

Chemstrand,
by

Service

plus

American

Industry);
owned jointly

Inc.,
Viscose

Chemical

santo

(Rubber

O.il

plus Chemical

Mon¬

and

(Textile

Industry

Industry).

Practically

industry

every

been

aided

ULATED

of

country has participated in

our

or

WIRES

AND

CABLES

by

petrochemistry.
Chemical products at lower costs
have
the

brought

price

products into

many

the

of

range

average

citizen. Plastics reduce the cost of
radio and

television

) siderably.
utilize

■1
4

cabinets

Chemical
sawdust

waste

useful

to

We

new

have

main
1

three

the

contributing to the
of the petrochemical in-What are the considera-

growth

tions for the future growth?
not the
costs
of petroleum
materials

is

j

'

discussed

factors

dustry.
'

produce

building

.board.
Detergents make easier the housea

) wife's washing tasks.'.

;

con-

adhesives

increasing?

longer

no

Are
raw

Natural

gas

unwanted

an

product. Petroleum

ETING

by-

VITAL

ELECTRICAL

CIRCUIT

NEEDS

products are

deliberately converted to chemical
materials

raw

today.

and natural gas
-•

as

chemical

a

their

value

advent

'

cost

material

raw

of

is

as

1951

fuel.

Consolidated Net Profit after Federal and

by

With

State Taxes

the

natural gas;

1,509,886

853,154

3,225,000

540,000

281,698

270,136

$13,999,536

$10,695,082

Provision for Federal and State Taxes...

*

pipe lines,
to

the

becomes accessible

gas

demand

of

the

very

Both

from

the

tions,
call

the

for

the

ural

home

is

material

than

both

Working Capital

Ratio of Current Assets

to

Current

Liabilities

as

2.74

2.95 to 1

.

than

as

Funded Debt*

1

to

$ 3,750,000

a

8,728,234

256,918

Capital and Surplus

$ 2,375,500

10,108,702

.

a

123,504

Dividends Paid—Cash

reserves are

must

adequate to

Common Stock

take

into

consideration

increase in demand

materials.

raw

companies

in

a

Some

the

of

raw

the

of

petrochemical

industry have protected their
ply by developing their
source

the

fuel, and
petrochem¬

as

the increase in cost of

ical

supply

It
simply means
petrochemical
companies

that

sup¬
own

materials

through
oil field leases and long-term contracts.
These petrochemical com¬
panies are entering into the oil
business and developing their own
reserves.
As an example, Celanese

314,325

(at market).......

Corporation has formed

Net

Earnings per share
Federal and State Taxes per
Net Book Assets per Share
tFor

purposes

federal

$

ing for petroleum and natural

of comparison, prepaid
taxes,
represented by
U. S. Treasury Notes

of

shown

the

on

balance

sheet

under

A

the

classified
rent

on

the

liabilities

balance sheet

in

1951

and

in

re¬

of

the

now situated

Coast

area.

This

in

industries,
and

the

markets.

increased

creation

and State Taxes

Most

l

a n

large

t

one

source

of




YEARS

j

949:1:

1947

1948

$1,393,154 $629,547 $1,382,857 $•1,983,530
■

1951
: ,

540,000

3,225,000

$1,509,886 j!
—

Appropriation

to

100,000

Annual

Report

853,154 $529,547 $

832,000

611357 $1,151,530

Re—

serves, etc.

—

—

Balance of Income for Year..

.

$1,509,886 tt

197,843

—

853,154 $529,547 $
1

611,357 ?i

$ 25 par Common

149,235

........

137,250

—

27,450

27,450

—

—

21,368

Earnings Per Share**

$

10.12

jf

6.22 a5

4.82

$

5.57

$

Cash Dividends**

able

953,687

Shares, Outstanding
$100 par Common

(The complete report is avail¬
upon written request)

c1 '■

771,500

$

1.50

j5

l.oo I5

1.00

$

1.00

$

11.15

Stock

Dividends

*Ir1come for the year

**Based

on

a

par

5%

—

121/2%

1.00

1949 includes $179,579 representing proceeds from insurance

value of $25.00

per

on

25%

life of officer.

share.

today

area

SINCE

for

1878

locations.

supply,

pendability of supply,

;$4,734,886

.

...

local

This location makes possible more

than

FIVE

"

companies

p

.

and State Taxes

supporting

still favor the Gulf Coast

petrochemical

PAST

'

population,

of

1950

in¬

brought'

THE

Provision for Federal Income

about substantial industrialization'
of this area, numerous

FOR

,

the Gulf.

has

OPERATIONS

1951

spectively.

petrochemical indus-

try is

COMBINED

Income Before Federal Income

Less

dustry is its location.1 Eighty per!
cent

OF

cur¬

1950

gas.

petrochemical

SUMMARY

Assets,
have been applied
against the 1951 tax reserve.
*Exclusive of $270,500 and. $350,333

Industry

of

COMPARATIVE

Current

Another consideration in the

growth

63.59

-

income

$1,928,130

Location of Petrochemical
'

6.22
3.93

67.74

sub¬

a

$

10.12
21.61

Share

sidiary, Petrocel, which is explor¬

,

6,786,875

markets.

*"

f

3,908,207

9,250,413

*

.

source.

more

Also, petroleum

more

and nat-

4,749,123

most economical

worth

raw

Net

a

material

raw

still

chemical

fuel.

the

first

This, howlimitation

gas.

of petroleum

as

chemical

has

owner

place

not

use

gas

Gas

power standpoint
political considera¬

natural

does

; ever,
on

fTotal Current Assets
fTotal Current Liabilities.

purchasing

and social and

'

Depreciation

large

domestic fuel market.

-

1950

chemical

a

new

many

FOR:

as

determined

a

as

Petroleum
dual value,

a

material and

raw

Their

fuel.

a

••

have

and

THE

OKONITE

COMPANY

de¬

lower

FACTORIES

AT

PASSAIC

•••

•

PASSAIC,

PATERSON*«*WILKES-BARRE

N.J.

The Commercial and Financial Chronicle

(1930)

22

economic

taining

clearly

were

"These

"tighter" money policy,
and
steps
taken to
discourage
"non-essential" capital expendi¬

week'

in

revealed

address

an

by

however

developments,

by no means the
whole story. Our expansion has
touched
almost
every
industry
important,

last

Hon.

are

and

the

of

a

Abbott

Mr.

icy,

has

Abbott,
D

minion's

o

Minister

able

diversification

dustrial

of Finance.

and

is

It

geography.

of

terms

of

region

every

v

follows:
"In

aimed

par¬

under

the

of

Com¬

of

the

of

merce

United

^.Washing¬

the
Abbott

D. C.

Hon.

in
commenting
on
recent
economic

in

trends

experi¬

and

prosperity
in

have been a period in which
situation has required

world

the

impose heavy military ex¬

to

us

penditures upon
on

a

what

"The

I

for

has

the

thing
billion

have
for

of

industries

last

subsequent four year period. We

from this new regula¬
tion all essential capital expendi¬

principal classes of in¬
the pub¬

tures. The

dustries exempted were

utilities, defense, and the pro¬
and distribution of basic

lic

duction

primary
to

was

products.

Our

purpose

economic

Canada's

Continued

jrom

page

t

Seriously

though

sions:

(1) Business activity will accel-

We

position.

{

.
*
fewdefinite conch£
5™.are a tevv detimte conclu-

eraJe during the summer into
requirements for defense,, and to.aarty, fall under the influence of
maintain and expand the producdefense production and
tion of our basic resources and deficit financing,
believed that in order to meet our

supporting indusessential that our
be kept as free and as

other

it

(2)

defense

tries,

was

economy

Capital

expenditures

for

P^nt and equipment are now at a
cyclical peak and_ will recede late
this
into 1953.

year

possible."

postpone- flexible as

the

encourage

{jTifnot°expected to* lie i^hisTed
after he makes H
but to hi his

measures

(3)

Earnings comparisons will
make better reading during the
third quarter.

11

(4) The key to the underlying
strength of this market recently

Expect

been

has

a

the

liquidation.

absence

of

overall

Irrespective of

year ~was

near-

E&SFJStZ?

the output be-

than double

particular country.

will have added another

we

year
•»

jmuawv-A

duction

£ NatiS

Jrry

of

91

~

'

■

"

.

"

Industrials,
93 for the Rails and 51-52
to

282
to

283

for the

r

■

ket will be sustained into August.
As

long

both of the 1952

as one or

lows of the Dow

for the Utilities."
...

"while

the

Rail

and

Jones Industrial

Averagescontinue

to

of a concentratedeverything falls stock market, during election hold we win have a-right to ex_
and precipitous
Finally, we said, wm e tne
decline in which
.

new

say

aside

set

years

some¬

some

production.

of

viic

Batheiv it is a staggered ana

|U2Q

oi me yedi ingiiei

umu mat cmsi-

power,

substantial share

a

capital expenditures to de-

our

velop

A

sources

new

electric

hydro-

of

One

energy.

adis abunof fundagreat

vantage which we have

develop¬

spectacular

more

«

hydro-electric

devoted

have

$20

investment—one-

total

our

six

to

of

piecemeal kind of an adjustment, ing on the first trading day of the
Canada has always been favored while business activity will prob- year, it is our belief that the highs
with plentiful supplies'of cheap
ably increase under the stimulus for 1952 will be made before
electricity and since the war we Qf defense spending during the tion and probably before early

great deal has been written about
the

of

system

considered this

_

Since 1946 our

about this.

fifth

charge

production oft primary iron .
-.
nnrHnninr mnntrv
Qur production of steel
g
y
iast
year was just
about three ■ The business picture as we see
times the prewar level. By next-it. at this particular time is not one.

the

been

last

like

would

people

and

plant

of industry?

development

resources

economy

to

exempted

and steei

dominant feature of the Canadian
and

general

1

potential.-,
and

a

market losses as bum steers. And
sometimes when an investment

real into-

inflationary

and

resources

our

impose

n9* as responsible for stock

have not con- are

ing May or June, the broad trend kind of a correction or shake-out
fore the war. In the more complex still
points to lower, levels ul- nearby, we anticipate a flare-up
P
m?d
field of durable goods
the in- timately
i-^nt to level creasing activity and greater par-, ana carry forward to the National
newand
to
ize that the commodity price
lorward
crease is even greater.
is aeiermmea largely by the world ticipation
determined largely oy
by secondary issues, Conventions at least Should the
"An important yardstick of a
the Dow Jones Averages at- volume accelerate with the Rails
supply
and
demand
conditions
country's industrial strength is rather than the situation prevail- taining levels within the vicinity seeking new highs, then the mar-

.......

,

to

we

it appropriate for Canada

sidered

would not be effective
preciation for purposes of taxa- in our circumstances, nor would
tion on certain forms of non-es- they provide the kind of economic
sential capital investments in the climate suitable to a country in
allowed

been

not

nearly one billion dol¬
The output of our manufac¬

more

upon

appreciate

in

materials,

scarce

,

it is expected that total
investment in manufacturing

turing

this

terms of pressure

will

means

lars.

think

proportions. I

precedented
you

al¬

economy

an

engaged in carrying
development boom of un-,
fully

ready

.was
in¬
equipment.

have
de-

long-term de-

velopment of our country.

capital

new

in

to the defense effort

and to the essential

depreciation, direct controls. We

deferred

Under this device businesses

will reach

it has

cial, indeed unique, economic and
fiscal
problems.
The ' last two
years

new

growing

a

future,

our

brought with it certain spe¬

also

the last
billion and a quarter

down

business'

namely,

more

available no assurance that such will be the
con- case this time,

which

industries

those

tribute

made

were

manpower

for

This year

unparalleled - in our
history. While this has brought us
great

of

dollars

vested

velopment

confidence

in¬

for example. In

dustry,

period of growth and de¬

a

manufacturing

our

two years, a

"Since the war we have

not

are-

today.

"Take

Canada, stated:

certainly

they

past

true

Abbott,

enced

everything

truth in those statements in

some

on

30, ".Mr.

April

It

country.

that

ing we were hewers of wood and
drawers of water. If there were

States

ton, D. C.,

northern

the

on

our

said

be

to

Cham¬

the

of

frontier

Meeting

ber

are

way

used
that
mattered
in
Canada lay within
100 miles of the American border
and also that industrially speak¬

An¬

40th

nual

in

of

wrinkle
less es¬
investment
new

one

slowing

at

sential

ticularly noteworthy that a num¬
ber of the largest projects now

gathering

budget of

my

introduced

in

aluncheon

Speaking at

somewhat of the pattern

us

Conclusions
What, then, are the probabil"Apart from some measures to ities? Right here we should like
remarked as
assure
that
essential industries to remind you what Olin Miller
obtained
adequate
supplies
of onc& said: "The bears and bulls
a year ago. I

Speaking of the latter pol¬

tures.

Canada. It
given new depth to the coun¬
try—new depth in terms of in¬

Douglas C.

budget, the adop¬

nation's

of the

tion

Canada's growth and its result¬

such minds

on

*

By WILLIAM J. McKAY

lems

expenditures

of

Thursday, May 8, 1952

.

stability."
things as store-fronts, theatres covering the first five months of
In
explaining to his audience and the like during this period 1929. This was followed by an exthe measures adopted by him to of heavy defense expenditures. In plosive phase during June, July
control inflation in Canada, Mr. this
way
increased amounts of and August of the same year. Of
Abbott referred to the balancing scarce construction materials and course, the similarity in design is

Canadian Securities
ing economic and financial prob¬

financial ment

and

.

.

dant

is

This

power.

—

"

-

r,

„

at this stage of the stock market.
m.arkf.ts. usually do not end

elec--with skepticism. As you know,
™nges
^J11311 seP"
to say:
The reaiHy ibig surprise
„

also went on
the "The range during the year should 3™;33 +1"
V;fr^e 3 £ Pr£f
United States will probably hit be around 50 or more points with across tne Z9U level-on the Dow
our economy
late this year and the low falling within an area of
00 leve*
next year when expenditures for 10 points either side of the 230
Kails,
plant and equipment will be in a level of the Dow Jones IndusWhat action should be taken?
decline, At the present time our trials."
T
< A sharp lift or flare-up during the
the May." ' We

quarter into early fall,
worldwide. slump outside of
third

....

.

ments, the oil and gas discoveries

mental

in

Western

up

of vast

production of civilian
economy
is about six
These were our views during aext 60 to 100 trading days should
present we have times our defense economy. With late January. Now let's go on from
welcomed by every investor as
iment
spending - being the there. While no two bull markets , genuine opportunity to 'put his
a
harnessed barely one-fifth of our government
^
0
0
—
,
,
The objective
hydro-electric
power
potential, main prop, it will not be sufficient will necessarily end exactly the house in order.

Canada, the opening
new

iron

grade

of high-

reserves

ore

on

the

Quebec-

Labrador border and in Northern

Ontario,
a

project
ish

and

large

very

on

the

construction

power

of

and aluminum

the west coast of Brit¬

Columbia.

In

the

next

three

capital investment in these
projects
alone
is
expected
to

years

reach

one

billion dollars.

r
CANADIAN BONDS
Government
Provincial

Municipal

'

Corporation

tries

importance in such industhe

as

aluminum.

At

i

A-

n

tJ

:

—i

"A

significant

aspect
of our
diversification of
industry in regions which formerly were almost entirely dependent
upon one or
two products. Possibly the best example is the impact of oil and gas discoveries on
the prairies, where previously the
production was restricted mainly
to wheat and cattle. Now, there
is
not
only
the
new
wealth
created directly by oil, but there
are
new
industries springing up,

is

growth

the

INCORPORATED

New York 5, N. Y.
NY

1-1045

the

war

we

have

encour¬

near¬

of

country. The

the

demands

and

of

made

upon

our

by capital development

the

problems

which

this

Minister of Finance

a

with

concerned




times earnings, and with yields vestment portfolio and the cirranging between 3.50% to 4.50%. cumstances and requirements oi

of the pent-up demands having
been satisfied. A revival of infla-

Currently the stock market at the
260 level is selling about 10 times
1952 estimated

tionary prices this year will set
the stage for a more serious business

recession later.
Impact

on

Stock Market

Now

what

bearing

jnvestor<

earnings and yields

an

return of slightly over
Should
precedent
prevail,
Dow Jones
Industrials

New

average

6%.
then

the

should

cross

the 300 level before a

will

late

January.

At

that

stated: "All bull markets
and

time
are

we

and

Canada's

monetary policies.

break

of

war

substantial

gravated

in

>

Korea

problems

fiscal

The

out-

imposed

new pressures

the

grounded in

built

an

natural rate of

.

Boston 0, Mass.

Up

Our productive capacity has been
increased substantially with most

much as 15%. Even
during bear markets, the months
of June and July have frequently
shown
a
rising tendency.
We
might also add that when there
has been no spring rise, which was
the case this year, the move has
had a tendency to get underway
during late April or during May,
with momentum gaining during
June and July. In looking ahead,
eve

has

run as

atmosphere of
gloom and conservatism, but alincrease has been high. This has
ways end in a 'blaze of glory' with
meant
a
rapid growth in our violent speculation. Therefore,
cities and towns which has en¬ until the
secondary and lowtailed substantially increased in¬
priced situations participate more
vestment in housing, community
actively, our current bull market,
services of all kinds, and in trans¬ based on precedent, has further to
portation and communications.
go.
Sentiment, as well as eco"From / what
I
have
said, * I nomics, is the main driving force it should be remembered that the
think you will have a fair idea behind each bull market."
month of September is normally
our

presents to
Fifty Congress Street

TO WcUTCl

Correspondent

Bonner & Gregory,

the

New

York
that

announce

acting

as

Johnson

&

members of

Stock

the

Exchange,

firm

correspondent
Co.

of

is

now

for

L.

Syracuse.

'

resources

WORTH 4-2400

U0

snouia

if civilian demand should that the 1929, 1937 and 1946 bull
recede appreciably. '
markets ended in a "blaze of

all of "bear market" sets in.
this have on the stock market and
Another important point to keep
such as petrochemicals,
to take
its future? Before giving you our in mind is that it rarely pays to
advantage of the low-cost fuel and
current views and projections, we be pessimistic during the summer
raw
materials.
v
would like to review a few of the period
from
around the third
"As would be expected
in a'
high spots covered in our discus- week of June to about Labor Day.
period of rapid growth, our popu¬
sion
presented to
the Chicago During
election years the rise
lation is also increasing rapidly.
Stock Brokers Associates during from the end of June to election

ly 200,000 'new Canadians', entered

Two Wall Street

SflOlllu

Basically our problems are more
deflationary than
inflationary,

—-

—-

sense

.

aged immigration. Last year

A. E. Ames & Co.

54

be toward
buying reserves of defensive posi^ons or cas" a"d its equivalent to
glory," with the Dow Jones Indus®
^
*0% to 6o%,dependtrials reaching levels of 15 to 19
£ P
e character of the in¬

av\

to sustain business in an overall same way, it is interesting to note

close to one-half of yours.

Since

CANADIAN STOCKS

4*-*

UitntMAnn

4-

•_

yet our installed capacity is very

-

and ag-

of

main-

Furthermore, we also said: "Ac- the most bearish month of the
tually, the divergent character of year.
The 1929, 1937 and 1946
market during
the past 12 slides were all initiated with force

the

months (now 15 months), with its
twisting, churning and deceptive
swings, foretells a broad and decisive move."

during

September

in

each

in-

stance.
The broad, confusing and deceptice range during the past
15

expressed the opinion "months, and especially during the
at., that time:
"Subject to some first four months of this year, re-

Next,

With

Harris, Upham Co.

(Special

to The

WEST

Edgar

Financial

PALM

A.

connected

Swindle
with

Chronicle)

BEACH, Fla.
has

—

become

Harris, Upham &

Co.
•
.

i

.

*

-

Joins A. M. Kidder Co.
(Special to The Financial Chronicle)

CORAL
F. Larkin,
the

GABLES,

Fla. —John

Jr. has been added to

staff of A.

M.

Kidder

&

Co.,

380 Miracle Mile.

La

Montagne Opens

(Special to The Financial Chronicle)

MENLO

PARK, Calif.—Edward

C. La Montagne is

engaging in the

securities business from offices at

we

1077 El Camino Real.

yolume 175

Number 5114

.

.

The Commercial arid Financial Chronicle

.

(1931)

Britain's Improved

From this point of view alone it is to the interest of
the United
States to abstain from raising customs tariff
against British goods.
After all an increase of Britain's armed
strength saves the Ameri¬
can
taxpayer a corresponding increase of American armed

Gold Position

By PAUL EINZIG

strength.
reduce

Commenting on reversal of outflow of gold from Britain, Dr.
Einzig ascribes improvement in British gold reserve situation
to import cuts and renewal of confidence in
sterling. Expresses
doubts whether improved exchange situation will continue, par¬
ticularly in view of some likelihood of higher U. S. tariffs on
British

the

of

figures

reserve

understood

the

on

end

(Special to The Financial Chronicle)

CLAYTON, Mo.

which

The

improvement

import

the

to

cuts

North

Waddell

&

Brentwood

Reed,

Boule¬

of

M.

November

&

Francisco

Stock

Mr.

is

with

Nev.

—

Alfred

S.

Wilson, Johnson

J.

Ex¬

as

Building;
municipal bonds.
formerly head of

was

Wylie Harris & Co. Mr. Heatht
Vice-President of the City

National Bank of Houston.

Tully

(Special to The Financial Chronicle)

SAN

FRANCISCO, Calif.—Rick-

ard D. Good has become
connected

Jones

&

known

Standard

in

Harris

with

Hig-

Mitchum,

Tully

Montgomery Street,

gins 250 West First Street.

the Los Angeles

&

Co., 405

members

of

Stock Exchanges

only

were

be

was

(Special to The Financial Chronicle)

Pierce, Fenner

to

Joins Mitchum

RENO,

Beane, 301 Montgomery Street.

Southern

specializing

With Wilson, Johnson

Drew has joined the staff

Lynch,

now with Shu¬

Agnew & Co., 155 Sansome
Street, members of the New York

FRANCISCO, Calif.—San-

Merrill

*

changes.

With Merrill Lynch
SAN

the

man,

San

partnership

Harris-Heath Co. with offices C?

FRANCISCO, Calif.—

Henry S. Kinsell is

(Special to The Financial Chronicle)

non

Shuman, Agnew

(Special to The Financial Chronicle)

SAN

Robert J.

and

due in

was

in

made

7

—

vard.

authority that
continued during

the

March.

of

part

Joins

for

tendency
time of writing Britain's gold
and dollar reserve is higher than it was at the
At

HOUSTON, Tex.—J. Wylie Har¬
a

best

favorable

the

April.

Formed in Houston

short-sighted policy to force Britain to
to safeguard her
gold reserve.

ris and Guy H. Heath have
formed

the end of March he stated that during the last few days of March
the outflow of gold was not only checked but even reversed. It is
now

a

With Waddell & Reed

Inc.,

Exchequer announced the gold

be

Harris-Heath Co. is

her rearmament in order

Walters is with

goods.

LONDON, Eng.—When at the beginning of April the Chan¬
cellor

It would

23

beginning to produce their
effect. It was largely the result of an increased
confidence in sterling as a result of which the
sterling-dollar rate has for some time been
above par. This meant that there was
for the authorities to intervene

lars in order to support

premium
official

was

need

no

by selling dol¬

sterling. It is true the

not sufficiently large to call for
in order to prevent an

intervention

unwanted

Einzif

to 2.82, and
approached that figure.

has not

Under
to

keep

to sell

level.

the

It

far the dollar rate in London

so

,

.

exchange regulations the banks

new

their

on

to

own

account

entitled

are

certain amount of dollars but have

a

the Bank of England

probable

seems

sold them

more

orders
•

appreciation of sterling by means
buying dollars. Such intervention would
only be undertaken if and when sterling rose
of

Dr. Paul

other

of

any surplus above the permitted
during recent weeks their clients

that

dollars than the total required to meet the buying

clients,

so

that their surpluses

reached

the per-

mitted level and they were in a position to sell some dollars to
«the authorities. The amount involved is not believed to be
very

large but it is nonetheless gratifying to note
being at any rate the gold drain has ceased.

;

that for

the time

The question is, can the improvement be
regarded as one of
lasting character? Official circles view the situation with guarded

"optimism.
that

-

the

They

tide

anxious

are

has

now

avoid conveying the impression
Although the adverse balance of

to

turned.

-payments has become reduced
:

it remains abnormally wide. The
additional gap created through the loss'Of Abadan and the Persian
oil has not yet been filled. Nor are
export prospects very promising

especially as far as textiles are concerned. There is a possibility
that, at the expense of the slowing down of rearmament, Britain
-will be able

to

increase

the exports of her engineering

industry.

World-wide demand for capital equipment seems to continue on
a very large scale.
On the other hand it is necessary to reckon
with

falling off of

a

overseas demand

for British

consumer

•

of British

goods. This matter

was

in

raised

a

recent

British

TEST

noise which

FOR

might

SOUNDER

escape

the human

Even

a

each

could be

a

driven

CARS.
ear

signal that something is not quite right in
construction.

goods.

One of the main sources of
anxiety is the growing pressure
in the United States in favor of
raising tariff rates against imports
to the

SOUND

neers

use

a

car's

That's why

sensitive

Chrysler Corporation engi¬
recording instruments to inspect

You

was discussed in public
by members of the United States Administration. It is felt in Lon¬
don that any tendency on the
part of the United States to raise
their tariff against British
goods would compel the British Gov¬
ernment to impose drastic restrictions on
imports from the United

The present

government has

that

has

Should,
pressure

in

made

are

measure

the value of

performs better when

the road.. These

on

a

car

you

very simply: a car
drive it, then brings a.

return when you trade it in, is worth more to you.

in

things,

testing, developing

a

as

Chrysler-built
well

as

big

new processes

—

car

ones.

is the result

Engineerings

all add

up to cars

and trucks that
operate

value is

better and longer. This kind of
important now, when so much of American life

depends

been

largely due to the desire to avoid taking any
tend to discourage Anglo-American trade.
however, the United States Government yield to the
brought to bear on it by American business interests

which

tests

help engineers eliminate potential trouble spots
advance, giving you more valuable cars and trucks.

The value
you get
of a lot of little

so

purchases
of American tobacco, petrol and films. The recent
import cuts
imposed by the present government on the other hand left those
imports from the United States untouched, except in so far as the
higher petrol duty might reduce the demand for petrol. This
attitude

here, and other
tests

higher

far been very anxious to
avoid any such restrictions. Under the Socialist
government every
time there was a crisis there were immediate cuts in the

action

at

note

Washington State Department and it

States.

model as it is developed. Cars are testvarying speeds in the laboratory, as you see

new

would

you

on motor

vehicles.

Chrysler Corporation

defense assignments to

1

The
cars

skills that give

same

and trucks

help protect the

are

filling:

way we

livew

and raise

the tariff against British goods the British Government
would have no choice but to
impose drastic cuts on

imports from

the United States. Non-discrimination would have to be
discarded
and

the

against an early return
sterling would weaken materially.
case

Political

repercussions to

an

to

the

increase of

convertibility

the

American

of

engineers and builds PLYMOUTH, DODGE, DE SOTO, CHRYSLER CARS & DODGE TRUCKS
Chrysler Marine & Industrial Engines

•

Oilite Powdered Metal Products*

Airtemp Heating, Air Conditioning, Refrigeration

•

Mopar Parts & Accessories

Cycleweld Cement Products

-

tariff

against British goods would also have to be reckoned with. There
already indications that the Soviet Government, in an attempt

are

to drive

a

wedge between Britain and the United States, intends

to

encourage the import of British goods by Soviet Russia and
other Communist-controlled countries. At a
moment when the
decline in overseas demand is

threatening to

cause

large-scale

unemployment in the textile industry and to a less extent in
other industries such a gesture could not fail to create a favorable
impression. Should it coincide with the initiation of a deliberate
policy on the part of the United States to discourage the purchase
of British goods it
might be highly detrimental to Anglo-American
relations.
From

the point

of view of the

gold position any substantial

reduction of American
imports of British goods would check and
reverse

it

is

of

the

modest

the

utmost

improvement registered in recent weeks. Yet
importance

both

from

political point of view that Britain should
of payments

an

economic

overcome

and

the

her balance

crises. It is to the interest of the United States
that

Britain should be in

a

position to proceed with rearmament with¬

out

running the risk of a complete exhaustion of her
gold reserve.
Any cuts in American import of British
goods would force the
British Government to make cuts in
the rearmament program in
order to be able to increase
the exports of capital
equipments and

thereby to fill the

gap to be created




by the American tariff policy.

PROOF OF VALUE.

Newark, N. J., cab driver

Albert Cornell operates his Plymouth taxi day
and

night in rain, shine,

snow,

sleet and heavy

HIDDEN SECRETS OF LONGER LIFE. That metal

city traffic. The engineering skill that built

to-reach spots

faithful

"mirror" of tough metal, Super
finished
which keeps wear of

puts

performance into Albert Cornell's cab

hard-working value into all Plymouth,

Dodge, DeSoto and Chrysler

cars.-

bear¬

ing (left) actually contains tiny pores, each holding a sup¬
ply of oil. This metal, Oilite, is used for bearings in hardand other places in

your car.

by

a

At right is

special

a

process,

moving parts to a minimum. Oilite and
Superfinish add greatly to the long life of Chrysler-built cars*

%

'

«

The Commercial

24

and Financial Chronicle

.

.

.

.Thursday, May 8, 1952

(1932)

ing

freer

to

Reporter

on

Governments

By JOIIN T. CHIPPENDALE, JR.

of the nonmarketable 23A% due
and to be used as an exchange
obligation for the last four maturities of the tap bonds, had a
favorable influence upon the market for government securities.
The uptrend lost some of its momentum after an initial rise of
more than a point in certain of the ineligible securities.
However,
when the Vic's backed away from their highs and retained about
one-half of the point and an eighth gain, the now eligible 2 Mj%.
due 1963/67, came to the forefront to lead the upswing along with
the coming eligible 2V4S of 1959/62, and the 2V2S of 1963/68. The
market is still thin in most of the longer-term obligations and it
does not take much of a step up in demand, with the currently
small supply, to have a marked impression on quotations.
Treasury's

The

new

money

free
comprehensive
international
exchange
inherited
Great
Depression of

has
from

the

restraints
and

trade

the

from

upon

and

'Thirties

the

striving to

been

world
itself

the

How-

war.

politiin the
difficult

the economic and
problems encountered

ever,

cal

postwar years were more
than had at first been anticipated,

and to restrain domestic credit and
fiscal policies.
The net result of this complex
of forces was a continuation of intensive inflationary pressures in
the postwar period. The common
practice, at least in several of the
major nations, was to cope with
these pressures not by changing

in much of the world's commerce,
much increased amount of switching and swopping is
imnnrt nuntac
traHp rpctraints and
import quotas, trade restraints and
going on in the market because institutions, both commercial and
foreign exchange controls are still
nonbanking, are adjusting their positions to the new developments.
the order of the day.
Although much of the activity is in the longer end of the list, the
shorts still continue to remain firm because of the sizable demand
Postwar Problems of the
for these issues.
■/. -.i/yy i;'yy/;y7
;'7'7 7r7.Y\;
.yo-

International Economy

The

Rival

"H" Bond Seen Savings Deposits

new

savings bonds, which are being

One

offered by the Treas¬

higher rates of interest, and are further "sweetened" by
the accelerated redemption schedule. To be sure, the increase in
the rate of the "E" bond is only 1/10 of 1%, compared with the
J/4 of 1% rise for the "J" and "K" 's, which does not seem to be
entirely equitable as far as the small savers are concerned. How¬
ever, it appears as though nothing will be done to change this dis¬
crepancy at this session of the Congress. A top rate of 3% was set
by the Congress and until the Treasury goes before the lawmakers
and asks for a higher rate, the 3% level will be the ceiling.
The
reaction to the higher interest rated savings bonds, and especially
the new series H issue, is that considerable funds will be raised
through these offerings. The J and K's carrying 2%%. appear
to have a great deal more attraction than the old issues, while the
series H bond is believed to be a definite rival for commercial
and savings banks deposits, upon which rates up to 2%% are
currently being paid. Whether enough savings deposits from com¬
mercial and savings banks will find their way into the H's, to make
it felt by these institutions is an open question. It is, however,
the belief of many money market followers that the H bond is a
definite threat to these banks in the holding onto of their savings
ury, carry

r

■

,,r

Y

deposits, especially the commercial banks, because of the generally
smaller interest payments on savings deposits. /
/ ;

•

,

nonmarketable 2%% due 1975/1980, was
surprise to the money markets. It had been

The reopening of the
not

-

much of

too

a

expected in some quarters that such an obligation would be offered
for

new

new

who

still others
but

others thought it would be made available for
for exchange purposes for other bonds. There were

money;

money and

were

did not believe

looking for

a

7Yy7

at 3%.

a

issue would be offered,

2%%

longer term one that would bear interest

/yy ;77777YV7yy/

.

of

controls

quently, the

ropean

War

World

from

II.

Finally,

1949

due

1966/71, and the 2V2S due 1965/70, but all the other tap issues
came into favor.
The near-eligible obligations, being very strong,
were paced by the recently eligible 2%s due 1962/67.
There has

•

been considerable

selling in the latter obligation as well as .others
of the near-eligible tap bonds. Nonetheless, commercial bank buy¬
ing, especially that of the out-of-town ones, has been sufficiently
large enough to keep the newly eligible 2%% of 1962/67 on the

tvitlf

and

to

be enlarged

liquidation of the 2%% of

1962/67 by nonbank owners is a debatable point.

Some hold to the
opinion this bond will be sold by these institutions and the pro¬
ceeds

put into the last four maturities of the

and these in

taps

of

channels

norrnal

recourse

imDrovement

improvement

steps that should be taken to fos¬
international economic stabil-

ter

...

was

had

iSlated

an7 ere/tlv

hud7ts

monetary and credit structures.

will

not

sold

be

these

Under

present levels.

•"

on

scale higher

a

They believe most of the nonbank institutions have

enough of the last four maturities to take

change they will make without going
acquire them.

comes

from

commercial

purchase the last four issues that

open

are

banks

inflationary effect.

raised in the 2%%

offering is

and

are

used

How much

has

problems

a

upon

foreign aid program which surely

new

will be

money

Favorable

of the

the world. At the end

undertook to

devaluation,
became

otume

evident

eviaeni

Offer

for

July 1 Certificates Indicated

July 1 certificates

It is rumored that

an

new

certificate being

of

issue.

the 2Vzs

war

provide food and

eign economic aid in the postwar

has totaled about $40 billion.

Our

foreign aid activities were

effective

bring

in

that

the

about

helped

they

to

of

recovery

production in

Western European

a

than
have been expected in the

significantly
could

time

shorter

light of the cataclysmic destruction left by six years of
total
the

But

war.

relations.

foreign

stability,

international

and

In

comparable

by

in solving the problems

currency

trade

in output

recovery

matched

not

was

exchange

7
realm

the

economic

of

Great

Denression

In

great

a

fear

noli-

an

an

intermediate term obliga¬

that all owners of

so

were

done

15,

sized sell orders.




into the market

as

fairly heavy buy¬

1962/67, after it became
were

at about the

and

an

eligible

not made at sharply higher

lows for

the

first few

days.

apparently caught some good-

of

real

at

even

problem

machine.

mestic
the

'Thirties

the
eco-

stagnation remained almost
time when

a

recruit

was

to

man

sufficient labor to

trial

the

many

obsession

the

much of
of the

so

memory

countries,
unemployment and

of

nomic

the indus-

This

do-

fostered

policies which complicated
of removing trade re--

task

straints and stabilizing currencies

The

low-interest-rate-ph7losophy;

conceived
flation

in

depression and

when

at

carried
an

the

and

monetary

to Present

in

in

few of the funda-

a

mpr,t3l nrprpmbcitpc. that are basic

entries be finnly ^nvinml tot

the
underlying must be recognized as temporary
far from solved, stop-gaps and not taken for perin mid-1950, before manent solutions.
The constant

outbreak

there
that

of the

was some

substantial

objective should be to remove
these restrictions as rapidly as
fairly rapid possible.

Korean war,

ground for hoping
and

progress

an(j

with

other

countries

outside

were

checked.
were

for

ebb,

of

The Korean war posed a whole
series of problems. The immediate result was a resurgence
of inflation, a phenomenon with
which we are all too familiar. The
sharp increases in prices of international raw materials temporarily eased the exchange problems of the sterling area, but
worsened those of the European
countries that were large buyers
of such raw materials.
Consequently, late in 1950 and early in
1951, some of the latter found it

invest-

Social welfare programs
the

vigorously

long

war-impoverished

economies could afford them, thus
resources

reconstruction

and

the problems of

fiscal

Furthermore,

the gold standard had
and

no

effective

mechanism
to

had

provide for'

needed for

compounding

credit control and

management.

of

many

representatives

government who have re-

garded

new

our

the liberal extension of
financial aid as the remedy for all
economic ills. Indeed, the practice
of continuously making large foreign aid grants and loans may. already have contributed to ;the
growth of maladjustments in various European econoniies; ;the
longer such aid is continued, -the
more difficult it may become for
a country to get on its own feet,
(3) The stabilization of currencies and the expansion of multilateral trade are

intimately asso-

to tighten their trade ciated with the fight against- inrestrictions or to embark upon ilation. In substance.- what; is
necessary

P°llcles-

strictive general ec°n°mic needed is to bring about increased
production and higher productiv-

The subsequent world-wide cor- ity, but this involves meeting a
rection in commodity prices gave host of related objectives essential
some relief to countries that were to this end, such as improving
hard pressed a year ago, but at capital equipment, encouiaging
same time it brought renewed savings, achieving a bettei utili—
distress to the exchange position zation of labor and other resources,
raw materials producers, and reducing restricti\e business
Thus, the sterling area, and with practices. We frequently tend to
the United Kingdom, has re- overlook the importance of such
cently again been forced to cope factors because the lelationship
with an alarming decline in its- between domestic policies and the
monetary reserves.
balance of payments is not very
More significant than these °dvious in the United states,
short-term
menace

of

West-

capital

overwhelming,
and
should
have
been

promoted

before

low

hyperactivity, when

demands

tivities

Europe.

problems is that the where the volume of foreign.trade
world Communism, is relatively small in relation to
uncritically brought home by/the Korean war, pther economic activities, hut it
of inflation has complicated /the fundamental 1S
ve£y close and direct in

forward

environment

probably

de-

investment

capital

historically

an

and economic

ment

considered,

however,

They did much spot buying
*

favor¬

as was

by the

own,

draining off
came

of June

These purchases,

prices, but
*

a

of these obliga¬

maturing certificates will be satisfied.
Commercial banks

ers

to indicate

owners

optional offering may be made to the

holders of the July certificates, with

the

seems

economic

stabilization, it may be of interest

some

other basic necessities of life. This

was

V

markets themselves.

exchange offer is expected by the

a

likely in the

detail the program required to

might be made in the
(2) The colossal scale of Ameridirection of reducing trade restric- can economic aid cannot continue
was
followed
by the Marshall tions and relaxing ^ foreign ex- findefinitely without impairing the
Plan, and additional funds have change controls. The initiation of strength both of the foreign econbeen
provided
by
the
Inter- the European Payments Union omies and of our own. Some Eunational Bank for Reconstruction was
an
important step in the ropeans are of the opinion that
and Development and by the Ex- direction of facilitating payments the
determination of Europe to
port-Import
Bank.
All
told, among the participating nations solve its own problems in its own
through grants and loans, our for- themselves, with the sterling area, way has been reduced by the ac-

we

was

The action of the

or

circles,

.

.

were

nevertheless

the

parallel in the history of

no

into

unofficial money

tion

non-

matter of conjecture, but $2 bil¬

a

with $l1/2 billion and less being looked upon as more

tions.

to

bank deposits and

lion is reported as being expected from more or less official

able

ex¬

market to

exchangeable for the

marketable 2%% obligation, this will increase
an

of whatever

care

into the

To the extent that the proceeds of the sale of the

2V2S of 1962/67

will have

than

inte-

policies.- While

the

circumstances,
embarked

States

United

our

by nonbank investors at this time, but

an

he close interrelationship be- more f r e ed o m of Uade and
tween domestic policies and inter- greater convertib
y ot curren
national monetary stabilization, ? t
and to appreciate that currencies It is acknowledged that lestnctive
could not be stabilized in the face practices may be needed to cope
of highly inflationary domestic with, special emergencies, huttoey

•

was'governed,

1962/67's

=

undertaking to set forth

in

expedient of *n

gradually beginning to recognize

cief Westerr^Eurooean^hinktoa

the

believe

rfn nf-rncf th^

„

government

excessive

included

II

marketable

Others

from

achieve

dition, the heritage of World War

turn, with the cash subscription, will be exchanged for the non2%s.

fmm

7ananv

J*® nTS"J Qfat "

exchange.
Consegold and dollar re-

the familiar

Following
following

trade, both within and among nations, seriously disrupted. In ad-

of

there will

Whether

in

inflation

the monetary affairs of Western mental prerequisites that aie basic
n
f fh
. pnro
to a solution of these problems:
short of food, raw materials and Europe, une ot tne most encour^
fuels, with both farm and induss>Sns ^as that some of the - (1) Essential do the success of
trial pnuinmpnt f^rpatlv imnaired
nations on the Continent were any program is that the democratic

progress

favorable side.

Pari*

n+-

thJnLnLn

on

The results of the

offer, namely the 2M»s of June and December 1967/72, the 2V2S

of

in

^ £ 5 !nm^tih?rnt ntYnrr^n

devaluation.

countries
countries

these
mese

found
iouna

hostilities
Hostilities

years

offering of the 2%%, 1975/1980, have been
favorable price-wise because the whole ineligible list has been in
demand. Not only the obligations directly affected by the exchange;/

nrnhipm?

Commission
Chamber

consistency1 in ' toTyetrs grated Pr°gram for achieving these
end ol World^ar lmP°rtant ^ectives.
Without

cltoed

of

end

The

II.

thp

SwingTe

resulted
resurrect

which
wnicn

a

International

the

fr^roicrn

foreign

and

stability in the postwar years was
serious disruption of the Eueconomies
economies

Progress

^llC L nited StateS, Will dlsCUSS the
investment, credit, foreign trade

the

rnnean

Road to

this week,

^

prices, consumption,

imroctmont

for the currency in¬

reason

over

existing fric¬

the

p^^prl"ie!'nr3t

which contrib-

policies

basic

the

reduce

The

Later

been

has

progress

we

goods and services. Thus, it
remains vital that the work continue in the direction of stabilizing
world currencies and broadening
dieir convertibility,

dis- uted to their growth but rather
appointingly slow. Consequently, by
maintaining
comprehensive
and

pro¬

of

.

.

A very

New

that

armament

makes it all the more urgent

tions in the international exchange

International Stability

reopening

raise

1975/1980, to

gram

ex¬

Certainly

nations.

international

the

Program to Achieve

A

and

commerce

change among

Our

practices lead¬

adopt policies and

Continued from first page

disappeared,

or

acceptable

taken

currency

its

place

stability

and long-range problems of international trade and exchange sta-

bility. Military defenses must be
strengthened, yet public opinion
is obviously averse to the sacrifices this will entail in the form
of higher taxes, less government
spending on social welfare, and
some reduction in the standard of
living. On the other hand, we may
hope that the defense effort, which
carries the prospect of some support to economic activity throughout the free world, will give governments the courage and confidence

that will

enable

them

to

ern Europe.
(4) The history of the postwar
years in the United States and
elsewhere, however, demonstrates
that higher production, by itself,
is no guarantee of economic stability. A sound budget policy is
another prerequisite. The problems involved are familiar to all
of us: the curtailment of expensive social welfare programs, the
postponement of public works,; the
reduction of subsidies, and cutbacks in less essential outlays in
general. A further requirement
for some countries is an adequate
^

Volume 175

Number 5114

.

.

.

tax col¬

lection.

Real
toward

bility

and

be

cannpt

progress

made

converti¬
exchange stabilization
currency

United States is the economic and

directed

stabilization.

the
free
The dollar has supplanted

world.

capital

sterling

as

unit

the

for

philosophy of perma¬
nent low interest rates is discarded
in favor of

stabilize

the

flexible credit policy,
properly adjusted to the changing
needs of the economy.
I would
a

not argue

that inflationary or de¬
flationary forces can be contained
by the use of credit policy alone.
But 1 do believe that credit
make

can

policy
useful and important

a

contribution toward economic sta¬
bilization and that it is a serious
mistake
to

to

not

the

this instrument

use

fullest

extent

(6) The ultimate goals of multi¬
lateral trade and
currencies
in

convertibility of

have

economic

philosophy,

namely,

that every effort should
to

increase

market

forces

operate.
to

the

which

chance

a

production,

productivity,
credit

and

to

increased
budget

sound

policy, positive
be

must

ures

in

areas

have

be made

Consequently, in addition

greater

and

basis

common

a

taken to

meas¬

loosen

and

gradual removal of price controls,
and

quotas

other

trade

restrictions, which interfere with
the

normal

movements

in world

merce

tedly, controls

of

be needed

may

if

as

tribute

international

to

economic

stabilization, it is only
of

some

proper to
responsibili¬

our

ties

in

aim.

Every member of

helping

national

inter¬

our

including

from

friends

United

the

quired

in

is

loan

prerequisities

of

inter¬

sound

a

is

aid

tant and

has played

into

useful role

of

years

nations,

United
some

States

contributing in

are

the

to

measure

the

are

psychological

Ad¬

program.

improvised

without

ade¬

of

obvious

to

for decision

applying
some

for

a

Finally,

(5)

to

might consider

we

our

situation

own

friends.
progress

in

have

We

be solved. Nor have

foster

cies,

made

real

although

production,

advan¬

the

resistance

limitations

absent in the
of outright gifts.
are

to

bedding

on

are

field

of

been able

public

the

un¬

inflationary
of

many

our

poli¬

to break the pernicious

These

problems

multilateral

but

if

machinery,

new

greater

trade

of

currencies

of

they

restoring

and

converti¬

difficult

are

not insolvable. In

are

output and feather-

not unknown. In the

we

are

build

to

in

the

which political

liberty depends.

economic

instances, instead

of taking the lead, we have lagged

behind foreign countries in apply¬

ing here
vice

home

at

which

the

sound

have

we

ad¬

given

to

others.

(1) Perhaps the greatest single
need

of

of

the

United

of

some

barriers

in

moment

States

exporters

prevent

from

selling in our mar¬
If foreign countries are to

currencies, they must have

be

re¬

trade and tariff

our

that

Stiratit# of 1951 kmm\

field

the

policy is to

successful

in

stabilizing their

kets; and under conditions of world

access

to

scarcity,

relax their import

trol

international

some

through

allocations

con¬

may

be

dollars; they cannot materially
restrictions and
exchange controls if our tariff

policy prevents them from earn¬
ing the dollars so sorely needed
for the establishment of a healthy

OUR COMPANY advanced

should be the free exchangeability
of currencies, at least on current

international economy. It is signif¬

1951. Substantial

account.

the Marshall

desirable

in

the

interests

final

objective

of

or¬

However,

derly distribution.

of

the

endeavors

our

■

*

.

(7) In the democratic world, it
is necessary that policies of gov¬
ernments receive the support of
the

voters.

This

the

that

means

icant that

Plan, several foreign
forced to tighten
their import controls, especially
against the dollar area, in order
to

in

the

political

countries,

vinced

of

the

groups

be

must

desirability of

ap¬

The consequences of the in¬

flationary policies
lowed

in the

widely fol¬

so

postwar years must

be made evident to the

street.

I think the public

desires

in the

man

sincerely

monetary unit of stable

a

value, and is probably willing to
accept the policies necessary to
achieve this end provided the right
kind

information

of

and

leader¬

ship is dedicated to that objective.

However, practical politics being
what they are the world over, it
is

probably

for

stabilization

some

that the case

necessary

be

such

agency,

by

pressed
as

central

a

bank, that does not have too many
obvious

impediments in

political

its path.

This is not

an

easy

The hurdles

shall

refrain

and

I

any

prediction

prescription

are

very

from

real,

making

to how fast the

as

be in achieving the
ultimate goals. Fortunately, there

progress may
are

some

ery

in

favorable factors

situation.

the

The productive machin¬

of the free nations is in much

better

shape than it has been for

Also, it is encourag¬
ing to note that, at long last, prac¬
tically all the major countries of

many years.

the Western World have taken at
least

the

first

steps toward

realistic budget and credit

The return to
tices

on

more

the

Kingdom is

part

more

policies.

orthodox prac¬

of

the

United

significant achieve¬

a

ment.
;

The
It

is

of

the

axiomatic

will

the

as

creditor

incumbent

thinking

nation

that

world's
makes

reorient

we

tariff

on

remain

policy.

unwilling

debtors

to

dollars

earn

their goods and

If

let

by

services to

continue

indefinitely

large loans
can

grants abroad. Nor

or

the

ignore

we

reluctance

fact that

our

United

that the

continue

States
United

to

play a
program involv¬

this

posals for trade with the

be¬

area

hind the Iron Curtain.

will

obviously entail fur¬

ther United States foreign aid for

defense purposes.
our

aid

the

countries

its

and

pend largely

The amount

allocation

involved

tion

and

defense

common

ever,

will

arms;

lays,

needs

and

the

and

How¬

procurement

repercussions

therefore,

a

became

company

and
a

general steam

use.

This contract

The

the for¬

contribute

vania Coal & Coke

Acquired with the shipping
"Saxon." It is

However,

in

world

of

which

is

the

strong
aim.

free

foreign aid is to achieve these

vertibility

of

currencies.




The

be

our

charged with
.

wholly owned subsidiary of Pennsyl¬

company

was

advised

the 10,800-ton Liberty Ship

time.

MECHANIZED

has increased

The

MINING

our

Board

output

sume

Average for

year

of

Directors,

and

at

their December meeting,
deemed it sound policy to re¬
which

1950.

dividend payments,
had been suspended

since 1948.

declared

share,

a

They accordingly
dividend of 50<£ per

payable

February

1952 to holders of record

Average for first half 1951...

1,
on

January 15.
Total current

assets

were

$1,638,824. as against current
liabilitiesof$813,858.,awork-

Average for second half 1951

ing capital ratio of better
than 2 to 1.

We

will be

Write L. D.

pleased to send

you a

copy

of

our

1951 Annual Report.

Silberstein, President & Chairman of the Board, Pennsylvania

Coal & Coke Corp.,

carry¬

policies abroad must

specifically

secure

expected that additional ships will be purchased from time to

new

ing out

goals, those

our

Company to

our

that

credit and foreign
exchange conditions are equally
important prerequisites for the
money,.:

attainment

for

must

we

mind

multilateral

con¬

as a

policy has been to work to¬
ward a
higher level of foreign
bear

way

Corporation.

ma¬

major role in any
ing the ultimate establishment of
the

the

Company also purchased all of the outstanding stock of the Saxon Steam¬

ship Company. It will be operated

our

and

opens

proportionate share of the coal export market.

our

constantly

consummated.

exclusive export agent to leading world

program

If

trade

our

of

terially to economic stability and
progress abroad.
Heretofore, the broad goal of

production.*

ex¬

signed with the Isbrandtsen Company, Inc., under which

was

material

upon

Such

prime customers. The steady

growing market.

in¬

program

possibly

eign economies.
can,

as our

a

our

abroad, all of which have impor¬
tant

of

ap¬

it means large dollar out¬
the letting of defense con¬

supplies

us

than the provision of

more

tracts,

continued

de¬

of

program.

assistance

our

volves

the

upon

opposed

among

mutual

upon our

of

as

year.

ports for the distribution of bituminous coal for metallurgical, locomotive, gas

(2) The rearmament of the free
world

per

91.5 % of coal produced by mechanical mining methods—up

% the previous

shipping

all fronts in

12% in productivity

Within recent months two important transactions were

to

buy from abroad
may make Western Europe more
susceptible
to
Communist
pro¬

increase of

on

allocated to mechan¬

%. Continuous Miners accounted for 43.2 % of production

A contract

we

making

an

aggressively

sums were

quality of coal.

Electric power companies

our

us,

in the

as

pansion of that industry assures,

selling

either
gradually lose our
foreign markets, or we shall have
to

to 25.5

it
we

mines. This resulted in

our

well

The year saw

our

shall

sound

Role

States

leading

reserves.

praisal of the international situa¬

'

to fill.

position

ization ot
man as

from 74

con¬

propriate restrictive domestic pol¬
icies.

were

protect their dollar
Our

public, and especially the impor¬
tant economic and

the expiration of

upon

countries

capital

x^x':xXx:::::xxX::vX:::::Xv::::::

::&:*x:::x;x

Ji&yivivS:

free

world the economic strength upon

problems of the Western democra¬
In several

a

larger sense, we must solve them

here

even

we

widespread

nor

bility
notable

of

of

been

wage-price spiral.

prescribe

we

field

has

start

direction

derstanding of
implications of

up

the

In
a

flexibility, but the problem of
reconciling credit and debt man¬
agement policies still remains to
to

short time ahead.

of the remedies

our

coming

problems

policy,
in the

made

cannot always plan

we

tages to the debtor-creditor rela¬
case

credit

quately considering their relations

early

very

appropriations.

far ahead in this uncertain

been

relief and re¬
a community

of

there

tionship which

in the

we

and

in

''emer¬

an

without integration

world, but all too often steps have

but in

fail

that

consistent

a

very

impor¬

an

on

basis

mittedly,

tends to be more
circumscribed and
limited to specific objectives. Uni¬
lateral

out

gency"

proceeds

national economy. We will be re¬
miss in our responsibilities if we

recognize

use

economic

carried

and

re¬

carefully

moral

to

the

that

exaggeration to say that our own

of in¬ Treasury budget is well-nigh out
policy. For of control; certainly we have not
years, too many government deci¬ achieved much success in prun¬
sions appear to have been made ing our government expenses or
ternational

replenish

consideration

of fiscal and credit policy,
however, our record has been leiss
distinguished. It is probably no

ceived long-range program

foreign

help

fields

.

to

States

to

order

governments

habilitation,

the

are

petitive

mar¬

(4) The complexity of these
problems indicates that the United
States can no longer defer the
development of a carefully con¬

solve
their own problems should not be
obstructed by a temporizing at¬
titude on the part of American
personal in the foreign service.
(3) If it develops that, in addi¬
tion, some
financial
assistance

postwar

disciplines that

kets.

commodity

The

European

our

economic

supply of strategic materials
through huge purchases in com¬
world

this

achieve

to

community,

abroad

the

for monetary
willingness of

press

the United States, must accept the

United

monopolize

the

is

to

their
is in our own best interests.
monetary reserves and facilitate
Having discussed some of the the stabilization of currencies, we
policies which, if put into effect should give preference to loans
abroad,
would
materially
con¬ rather than grants. An important

move

cannot

cannot

currencies

economy

temporary expedients to meet
emergencies.
For
example,
the
States

probably

affected by
major inflation or deflation in
the United States. Conversely, a
strong and stable economy abroad

com¬

Admit¬

markets.

West¬

eco¬

nomic controls wherever possible.
This
requires,
specifically,
the

import

world

cies.

the harness of direct

remove

world

their

consider

feasible.

of

countries of

settlement

Europe

ern

monetary

basic

the

The

accounts.

unless

of

25

(1933)

financial

of taxation and

program

(5)

Chronicle

The Commercial and Financial

30 Pine Street, New York City.

2(5

(Z934^jfJ

" r-'

;

-

*•

'The Commercial and Financial Chronicle

,;

Cleveland Security

John P. Witt, John P. Witt A Co., guest

of honor; Morton A. Cayne,

Cayne A Co.; Howard J. Eble, Wm. J. Mericka A Co., Inc.,
President of Cleveland Security Traders Association

Francis Patrick, Paine,

Webber, Jackson A Curtis;
Stanley Huberty, Prescott <6 Co.
"

A1 Lafferty,

Hornblower &
C.

J.

Weeks;

Devine

&

Co.

Edmund Rung,

Officers

of the

Erb A Co. Inc.;

Martin
Don

Jack Doerge, Saunders, Stiver A Co.; Mike Hardony, Ball, Burge
Kraus; Ted Plumridge, J. Arthur Warner A Co., Inc., New York
City; Fred Shorsher, Ball, Burge A Kraus

Cleveland Association: Fred Shorsher, Ball, Burge A Kraus; Robert L. Erb, Green,
Howard J. Eble, Wm. J. Mericka A Co. Inc.; Warren Foster, Gottron, Russell A Co.

James

Drnek, Prescott & Co.; Jack Doerge,
Saunders, Stiver & Co.

Dan Hawkins, Hawkins A Co.;

McC,eary» Florida Securities Company* St, Petersburg, Fla.




A

Corb Listen,

Prescott & Co.

Bill

Beadling, Beadling & Company, Youngstown,
Guy Rockwell, Financial Editor of

Ohio;

the Cleveland Plain Dealer

....

fVmtam Gray ®nd Jack Cook of Wm. J. Mericka A Co. Inc.; George

Thursday, May 8, 1952

Traders Association

Milton Lewis, Jaffe, Siegler and Company; Donald Plasterer,
Hornblower A Weeks; Claude Bell, McDonald A Company;
A. Waldo DeGarmo, Merrill Lynch, Pierce, Fenner A Beane

Long, First Cleveland Corporation;
McLeod, Geyer & Co., Incorporated

...

Rufus

Ullman, II11 man A Co., Inc.; H. C. Hopkins, H. C. Hopkins
Co.; Pierre R. Smith, P. R. Smith A Co., Elyria; Ohio

A

John

Montville,
John

National

City

Bank

of

Gieason; Curtiss, 'House A

Cleveland;
Co.

'

$

+

Volume

Number 5114

175

.

...

The Commercial and Financial Chronicle

(1935)

Annual

Russ

27

Spring Party April 30th at Allerton Hotel

Keier, Collin, Norton & Co., Toledo; C. J. Odenweller and
Judson, Securities and Exchange Commission

Russell

Frank

Wardley, Fulton, Reid & Co.; Warren Foster, Gottron,
& Co.; George Placky, L. J. Schultz &
Co.;
E. Allan King, Fulton, Reid &
Co.

Ed

White,

Russell

John

P. Witt, John P.
Witt & Co.; Mort
Cayne <£ Co., at presentation of gift to Mr.

Orin

Koeser,

Ted

Blyth

Mesisak

Co.,

&

and

Inc.;

Michael

Dan

The Cleveland Trust Co.; Warren Foster and
Probst, Gottron, Russell <fc Co.

Dick

Hawkins, Hawkins & Co.;
Ball, Burge & Kraus

Hardony,

You have to live with direct mail

Frank

Marshall,-

The First Boston Corporation;
Weaver, Hornblower & Weeks

Bob

Continued

from

if you want results.

page

15

'

"

»

I

Securities Salesman\s Corner

am

of

the

things

know

the

plan

Mail
'

:

Last week
in New

•

at

the Hotel

Statler

York, Ferd Nauheim, who

is editor and

publisher of "Modern

Security Sales," Washington, D. C.,
gave

talk

a

Securities

to

entitled,
"Selling
More People- with

Leather, Lungs and Letters."
For

years,

investment

seeking

source of

a

be applied to

field

of

been

the

people in the

many

have

business

their

been

ideas that
own

advertising.

can

There

has

problems and the opportuni¬

ties afforded to

securities

men

in

the

merchandising of their prod¬
ucts.
What applies in other fields
does not always hit the bull's-eye
in
the
promotion of securities.
Advertising
to sell

men can

tell

how

you

bottle of catsup, an auto¬

a

suit of clothes or a life
policy.
They can give
you tested plans, sure-fire cam¬
paigns and copy that will do the
mobile,

the

a

insurance

"follow-through" that
"follow-up" activi¬

ties of your sales force, or any of
other
vital parts of such a

the

in

campaign,
won't

the

know

he

instances

most

The

answers.

won't

know

he

them,

is

services of

advertising the

investment firm.

an

<

Nauheim
not

says, "Direct mail is
means of finding prospects,

and set up a plan that
to

wish to
to

accomplish—they

find.
If

has what it

help you do the job you

you

hard

are

,

a

is

do find

an

experienced

stand
may

security merchandising.

He

know how to set up a series

of letters that wjll

business,

but

stimulate

when

some

it comes




get results

overpaying

in

reac¬

postage

and

How to get action.

Some of the readers of this col¬

familiar

umn

are

Mr.

Nauheim

with

is

doing

Fund field.
to

the

work

in

the

His monthly

dealers

known

'

eral.

to

.

.

.

.

if

have

you

that

se¬

come

you'll

do

with certain types of people
people in certain occu¬

pations
levels
in

want to be

you
.

.

conclusion

the

best

if

But

lective

.

.

.

.

certain

.

as

"Modern Security Sales" includes
ideas
for
sales
meetings,
sales

have

you

He tells you

,

.

.

He says, "Eliminate the

Then

time

and

he

to

make

it

you

a

Why

job.

to the

after

Why
track

how

your

ones."

the
use

Why it takes

should

not

and

to

do

the

SAN

FRANCISCO,
F.

Rottman

Schwabacher

keep

on

Wage Stimulation Board?

what

government

a

has said is fair and equit¬

agency

&

600

San

Francisco

Market

changes. He

Stock

to

rushed

beat

raise

to

controls.

"

wages

and

without

Even

(Special to The Financial Chronicle)

SAN

lated

demands
for
extravagant
increases by invariably ex¬
ceeding its own regulations when

ston,

DeParsia

Hoffman

&

is

itself to

tion

Street,

members

of

Exchanges.

,

'

railway

industry

have emergency boards
and the National Mediation Board
we

a

but

a

Board

In such

steel,

•

This

can

cases

the

as

Wage

and

to

Stimula¬

has

more,

both

and in compulsory union¬

gain by bar¬

can

being

so

Board.

in

so,

every

the

the

case,

to

any

pedients

collective bargaining
enterprise as to out¬
benefits that could re¬

its

stabilizing wages
it has in the past.

as

compulsory

as

in-

arbitra¬

should break the

we

powers

and

company

monop¬

of labor unions and

require them to bargain

the by

in

not

Instead of resorting to such ex¬

tion,

shown

coming to

were

free

the future

Curtiss-Wright olistic

Board

by

gain

can

threaten

will do

j,-,,. )'V.- 'the

threat

a

Stabiliza¬

wage

*

unions,

wages

Even if this

I believe the Board's having pow¬
er to handle dispute cases is such

weigh

tion Board.

265

the New York and San Francisco
Stock

be not

ism, than they

with Wal¬

Goodwin,

That is what has hap¬

the

sult from

all, the Board has proved

FRANCISCO, Calif,— gaining and striking.

Manuel J.

in

employers'
raising wages

Board,

Walston, Hoffman Adds

pened

•

'" that

'

bor Board.

j

Ex¬

.

in

plants

enthusiasm That is what will happen again
had waned unless Congress forbids the Wage
greatly by the second quarter of Board or any other board ''to
1951.
And since then the Board handle disputes.
*
has added to wage inflation by
I think Congress should do that,
successive regulations raising still at the very least.
I think it might well go further
higher its so-called ceilings, and
by opening the door to raises and abolish the Board altogether.
above the ceilings by reason of al¬ I
believe
employers themselves
leged inter-plant inequities, tan¬ will do a better job of stabilizing
dem
relations, base-pay
period wages than the Board has done.
controls,

for

previously with
"

defense

That is what happened in World
we had the War La¬

where

and
was

in

War II when

All in

with

now

Co.,

exist

develop the short¬
age of help
that employers ex¬
pected in the fall of 1950, when

There did not

the pressure was great.

Calif.—Ed¬

is

will

theory only.

able.

Street, members of the New York
and

Montgomery

jump around.:

least,

a

wage

things

should

mailing

you

and

some

you

series of letters.

mailing

good

advertising that

work—the

who

Schwabacher Adds

E. F. Hutton & Co.

tells

why of it.

devote

the

at

(Special to The Financial Chronicle)

ward
up your

a

Or

.

shoes—

.

how to tie

prospects

poor

distributed
to
clients
have offices in those cities.

are

people who live
neighborhoods
three tools that can be
.

.

Prospects secured by
advertising, who live in
other abnormalities, and the like.
The Board has greatly stimu¬
cities, are sent to MSS. and they

or

.

put to work for you

selling

his clients.

economic

certain

it

.

they

with¬

of

mean

a

about direct mail

expert in the advertising field the
chances are that he doesn't under¬

out

other costs.

make

their

get

Is It

to

put in-

you

'k

.•

•.

and

training, direct mail letters, mats
elminating them. for newspaper advertisements, and
Newspaper and radio advertising even a clearing house for pros¬
help you reach the public in gen¬ pects that he is developing among
it

package.

takes

to

Mutual

to

comes

down with you

office

and

How

service

it

telephones—direct mail."

your own

read

tions.

do

<

re+

want

prepare

What to

How

people

that he just is a babe in the woods

job. But go out and try and find
an
advertising man who can sit
in

letters.

when

particular

dearth of understanding of

a

a

includes

to

campaign.

your

planning

reason

the

your

Advertising

•/,

■■

■

will

you

V

'

But Some

right lists.
The right
timing your mailings.
telephone enters into

for

How

A Man Who Knows—Talks About Direct

here.

How

are:

secure

•

going to try and

view this speech

By JOHN DUTTON

'

not

company

forbid

local

unions representing employees of

particular

a
or

company

to combine

conspire with the locals

repre-

senting employees of other

com¬

union that panies. Thus, they would not, by.
effort shutting down whole industries at

defense

order

to

Collective

get before

a

time, bring catastrophies

bargaining country.

.

.

...

•

..

..

on

the

,

The Commercial and Financial Chronicle
28

Continued J
from r r 3
page

leaving the Therefore, these mtotal market value
unchanged.

•

.<

«

money

brings this rise down

The Pnce Indexes

m

in

previous bull markets.

(3) Obviously, the market has
given very little response to other
economic factors in this 12-year

the composite index

Determining Stock Market Trend
but

all

all

of

the

in measuring percentage changes in the market. He
thinks the rise in this bull market since 1949 has been only 31%.
Even the Dow-Jones addict knows
better than that. The Dow Aver-

Suffice

to

say

age

been

have

ate.

let's

not

arithmetic

into

go

here.

Hiat for each share of these eight
stocks in the Dow average in
tbere

over

were

1939,

2 Y4 shares m the

1952.

April

weragem

holders combined are now better
off ^on paper) than they were
previously.
Standard & Poor's provide a

a

split,
The net result of all these splits,
and the accompanying reductions
In the divisor, has been unfortunstocks

dustrial

These

age

is useless

of

The difficulty

<jaiiy

that

90

sub-

stocks,

utilities. There is also a

the total

Atihpntlwpnrfnf

7

Korean

a

truce, which

dangling over the mar¬

ket last July.

future,

!

(6) In general, the market ap¬
pears to be on solid ground. At
basis

are

the other hand, there
divergent industrial

On

(7)
so

many

within the market, as

trends

on

the

New

York

APPENDIX II
;

(Practical Verification of Weights Cited in Appendix I)
Market Vaio*

Mkt. Value

Market
Value of I

Weighted by

of one 1939

Sh. of Each

Stock Exchange.

adjustments are made for

Sh. of Each
Dec.

Dec. 30/39

No. of Shs,

31/51

Dec.

Whit

r

each

If

market

AC, T, ATB, CFG, GE, GF, N, Z—
Value of 2.3124 shares of eadh (2.3124

$591.75

$1,368.36

591.75)

times

■

37.95

99.75

46.75

Split 1.2-for-l (20% Stock Div.):
United Aircraft—Value of 1.9270 shs.

1.5-for-l:
Procter & Gamble—Value of 1.5416

stock in this average went ket. These group indexes enable
icots the divisor at the time of a to zero the average would still
the analyst ;to . compare chanf*
CDlit is to retain one shafe of the stand at something over 60. Ob- already recorded, by .the market
Sew stock, sell the others result- viously this is not an average at with the economic changes or
tng from the split
and reinvest all. It is rather a balanced fund, trends he detects or estimates
the proceeds in all of the 30 stocks with a large uninvested portion,
within a specific industry. In this
*»a a pro rata basis.
Instead of in- amounting to about 60 "Herald way it is possible to make more
-creasing the holdings of a split Tribune" points.
intelligent projections of future
stock, Dow cuts them down and
market trends,
then turns around and expands its
The Market—Forward
(Last year the Securities &
investment in the unsplit stocks.
Is there no hope at all? No way Exchange Commission began pubThai, of course, is adjustment in to get a good look at the whole lishing its own series of weekly
reverse,
and with a bang!
No elephant? Can't we even find out stock market indexes. The Cornwonder that many of us market where the market is today in relamission showed good judgment in
analysts have sand ill our eyes! tion to where it used to be?
adopting the basic method of
when

does

reallv

Dow

it

(See Appendix II.)

^tombling
Teel
of

comes

man

Groping for he
a
market,

stock

the

grabs it by the New York
Average (25 Industrials).

"Tunes"

ket

kidex

job

(or
the

of

stock-

of

mass

^

shares

498.25

"A

jusi aiscussea. une wnicn is iree

p

under

"Times

date:

recent

arithmetical method has
been
followed in computing the
averages in order to avoid the use
of dangerous weightings."

simple

what

Well

the facts todav9

are

One which

discussed

is free

»

de*<=sThe

,

4

,

stock

.

market

.

on

for 27%

account

index

shows

the

total

market

—

-

^

is

Here

On

tributpd

Chrysler

date,
than

rnnrp

contimp<? as

fivp

live limes as

iu

*

result,

worse

even

an

recent

a

much to the average as

the mam-

math General Motors.
That's

not

all;
^«sazy weightings
N.

"Times"

Y.

(2) Since prewar (Sept. 1939)
the advance in Industrials has
amounted to 105%.4
Of course, that is measured in

as

Itself

S.

U.

is

weighted
Motors.

these

S.

impor-

S.

Steel

than

important

Tire

times

to

alone

five

Motors,
U.

And

stock

-one

cap

is

General

the

climax,

counter-balances

big

stocks, General
American Telephone,

Steel,

une

1952 high

149.44;

1949

low, 114.07,

31%.

Sears

Roebuck

and

4 Standard & Poor's Weekly index of
industrials: 1952 high, 207.5; 1951 high,
Sept.

206.7;

MmY

1939,

Base, 1935-39

101.3;

equals

the blind.

(See

Still another blind

man

comes

(100 stocks) Average 2

in his hand. He has two

perfectly

good eyes,

but doesn't choose to
them. Rather he accepts what

this average reveals to him about
the
market's
performance
and

•—7—

269.23

.

1
^

iional Stiver.
2 Includes 30 rails.




1939.D

is the

divisor used by Doiv-Jones In computing the

Y. "Times" 25

N.

average

at end of 193$.

III

Industrial

Stocks
Perceul

Times

of

Price

Total

Mar.

STOCK

Multiplier

Multiplier

Price

25, '52

25.875

Allied Chemical

6

American Can

_

_

232.875

71.75

9
4

287

4.01

125.25

1

American Tobacco

3

Bethlehem Steel

5

751.50

154

American Tel. & Tel

154

Caterpillar Tractor

3.25%
10.49
2.15

58.-325

2

du Pont

_

Eastman Kodak
Firestone

10

General

General

Mills

General Motors

2

16.56

216.25

3.02

58

580

2.41

57.5

__

International Harvester

172.50

53.5

107
167

2.33

191

2.67

191

33.125

—

397.50

5.55

International Silver

58

232

3.24

3

Johns-Manville

68.5

205.50

2.87

3

66.75

200.25

2.80

4

Penney, J. C
Sears Roebuck

53

212

2.96

2

Standard Oil, N. J.

75.75

151.5

2.11

in Dow-Jones Avg.

3

U. S. Steel

39

117

1.63

Dec 1951
1-9270
Hfio

4

Westinghouse Electric

37

148

2.07

$No

of 1939-

Equivalent

Symbol (and split)

.

J^R (split 6-for-5)
£
r Lv V""T-I o~7—77
GM, GT, SD, J, TX (split 2-for-l)
—
(sp1i t 2.4 - for-1) _ _ _ _ _ _ _ _ _ _ _ _ _ _______—_ _
/-,

r

BS, HR, JM, LW, DR, NS, UK, X (split 3-for-l)
ACD, DD, S, WX (split 4-for-l)

(split 5-for-l)

_—

;

1.49

83.5

__

'

3.23

______

_

,

8.io

231.50

International Business Machines

1

1.60

1,186.50

57.875

Ingersoll-Rand

12

8.23

114.25

—

-

-

Electric

2

593

__

—

-

4

3.48

43.25

-

249.375

84.75

__

_

_

_

2.06

57.125

Douglas Aircraft

147.75

74.125

_______

1.64

49.25

_

117.25

49.875

_

4

Shares

f .4625

What Dow~reaHy does-when it cuts.the divisor at the time of a
split is to retain one share of the new stock, sell the others resulting
from the split, and reinvest the proceeds in all of the 30 stocks on a
Pr° rata basis. Instead of increasing the holdings of a split stock,
Dow actually cuts them down and then turns around and expands its

^3*26,!

7162.60

(Published

•These

are

the

_—

divided

average

;

100.00%

by 25 equals 286.5

March 25,

multipliers (or weights)

1952—286.51)

used by

the New York "Times" In com¬

piling this average.

Note
ler

right-hand column "Percent of Total."

contributed

General Motors;

more

than 5 times

American Can, with over

no

much to

Observe that Chrys¬
the

average as

did

10%, counter-balanced all five of these big,

stocks combined: General Motors,

have

as

International Silver, twice as much as U. S. SteeL

Sears Roebuck and
*Computed by taking- ®a of 2.3124. (Derivation and meaning of figure 2.3124 is
explained above.)
fComputed by taking % of 2.S124. Similarly for other data, using
appropriate split ratios. $Also, in April, 1952.
NOTE—See Appendix II for proof of validity of "weights" shown above.

_

7,162.50
Total

-963^

.7708
.5781

-

Total

1.1562

ota^'marke^vaiua 4nves^ment in the non-split stocks. That is "adjustment" in reverse.
$17,000,000. 'u. S. Steel
106,756 shares, worth over a billion dollars, or 60 times as much as Internambmtt

30,

above for Dec. 31„

exactly with the Dow Average

APPENDIX

(15.1 divided by 6.53 equals 2.3124.)
Similar computations for the other 22 stocks show:

J

for Dec.

by

3

Dropping the divisor used by Dow in computing the
(from 15.1 in 1939 to 6.53 now) is tantamount to
increasing holdings of each 1939 share to 2.3124 shares in 1951.

along, with the New York "Herald

use

*15.1

5

average

J
J

published average

1951,
—

15.1*

AC, T, AT, CFG, GE, GF, N, Z. (These are the stocks
having had no splits in period 1939-1951 and to April, 1952.)

^

Appendix III.)

Dow-Jones

is

by using weights shown in Appendix I and dividing;
15.1, same divisor as used by Dow in 1939L. It check*
as published, which used on<a
1951 share of each stock and a divisor of 6.53.)

4065.460

X

December, 1951):

Dec ;1939

(This

(This is Dow-Jones average as computed

7-

-For each share of the following eight stocks in the average in
1939, there were 2.3124 shares in the average in April, 1952, (also in

indust. Avg.

ings." This looks pretty much like
the blind leading

Tribune's"

150.24
15.1*

14

in Dow-Jones

about "dangerous weight-

$$4,065.460

2268.625

Dow-Jones Industrial Average—1951-52 Versus 1939

you

American Can. Whv9

609.03

106.375

Total 30 Dow-Jones Industrials

8

100.

_

no. of shares

Oil, N. J. What stock do
think it is? The answer is

high,

1929

'

Standard

Talk

230.00

2

low for the shrinkage in value of

197.7.
0

Inter-

as

U.

Firestone
five

3 Dow-Jones 1952 high 275.40; 1949
Iow> 161 60 advance 70%. Herald-Tribadvance

average.

Steel.4

less

Bethlehem;

shares,

■■

find such
these in the

national Silver is twice
tanf

the number of outstanding
—-——

we
as

.5781

of

Closing

halves the price of a stock doubles paper dollars. Adjustment to al-

a

WX—Value

S,

it.

try?

on

DD,

Split 5-for-l:
Eastman Kodak—Value of .4625 shs.

t$2,268.625

1929 top.
This fact is important. It is not
just an academic matter. It means
that the psychology of the typical

recent date). Think of
it
more than a quarter of the
average reflects only one indus-

prices at

(based

average

838.24

(.4625 times 230.00)

indexes of in 1951, which also exceeded the

value for any date in relation to
the value in the base period.
A stock split is "duck soup" to
Standard & Poor's. A split which

entire

-of the

ACD,

1,053.50

holder of the typical portfolio is
Eastman Kodak by 5 the number of shares outstanding favorable, because he has a paper
for others). These four in the hands of investors. Each profit no matter when he bought

stocks

3-for-l:

BS, HR, JM, LW, DR, NS, XJK, X—
Value of .7708 shares of each (.7708
times 1087.50)-.

1,087.50

166.875

.JheiL?revL°U? a.U-time Wife re*

,

Standard & Poor's Corp. are undoubtedly the soundest and most
useful available. They are scien14, the price of Air Reduction is tifically constructed, by weightmultiplied by 9, Allied Chemical ing each stock price according to
chemical

110.11

(.9633 times 114.30)

^

"Times" aver!
.age of 25
industrials now, the
price of duPont is multiplied by

by 4, and

of .9633

4 Stocks Split 4-for-l:

of .unrealistic assumptions and
•
unjustifiable weightings - Stan(1) As a group Industrial
dard & Po0r s CorP. Market In- Stocks * in 1952 slightly exceeded

la constructing the

(and so

in '45):

'47 and 2-for-l

Smelting—Value

American

806.45

(Combination of

8 Stocks Split

Now to get back to our ele-

™tin,

(1.1562 times

1

6-for-5 in

114.30

50.75

of

TX-Value

697.50)
Split 2.4-for-l

,

phant. Here is the way the market
looks to me backward and lorward, using Standard & Poor's m-

Uk an

J,

SD,

shares of each (.5781 times 1053.50)

splitv thus

stQck

Qf

care

GT,

GM,

1.1562 shares of each

560.375

avoiding the errors in other market averages such as those I have

takes

C,

697.50

280.25

Split 2-for-l:

Fionhant

The Who'e Elephant

'

holders. 0ne which aut0matically

Whnio

153.77

shares (1.5416 times 99.75)
6 Stocks

her of shares outstanding.)

really<^hows the changes in the
fortunes

66.00

Standard & Poor's, that is, weighting each stock price by the num-

we need a maraverage) which

wSd wTl inVai q il Olwtouslv
model
Sa« the
Mis t antique model.
Says the

-

Split

every

To do that

blind

Another

73.13

(1.9270 times 37.95)

currents within the general mar-

and

31/51

Stocks Not Split in 1939-51

8

$599,375

STOCKS

30 DOW-JONES

nnp

^

re-

Dow-Jones Industrial Average

stock sPlits- The "Tribune" does

^

de¬

major

a

cline.

Earnings could fall 20%, and
prices at current levels would be
only 12 Vz times such earnings—

convincing

no

expecting

for

dividend yields average 6%.

is

there

present,

(4) Industrials are now selling
only 10 times earnings, and

value of all listed com-

shares

mon

A separate group index is pub^ K find Kan Kodak this by the additive method. As a lished weekly for some 70 difwitl^each 1939 share shrunk to result» through the years, a large ferent industries. These industry
than onp-half share in Aoril
amount of deadwood has accumu- indexes are invaluable to the
1952. Other stocks lie in between lated in the average. This is the market analyst, especially under
these extremes with 13 of them average to buy if you want
a conditions like the present when
es fh~n one share
than
snare, (See Aonen- defense against a complete wash- there are so many different cross¬
(bee Appen

JnA

at

for

ance

has been

has fallen in value.

complete set of weekly in¬
dexes, containing a total of nearly
500 stocks. In total market value
these are equal to about 81% of

Tribune." 3

the way

of

the

about

during recent
probably includes allow¬

very

here is, again, in

twice

20

an(j

70%

a

index

dmded in*o 50 industrials, 20 rails

rise, or over
the
"Herald

sh0ws

speculation

no

past dozen years,

the

In

merely recognition that the dollar

view.

of

point

oscillating pattern of

The

(5)

months

period of war-boom and post-war
boom. On balance, there has been

namely, that all the stock-

it says,

split position, without
knowing its
limitations. No doubt he will be
eight of the Dow 30 in- surprised to learn that this averwhen

divisor,

the

erlitg

occurs.

,

A

technician's

j

ma

-

dexes are not distorted by stock

■

1

Guide

as a
mm

m

■

a

^

■

ft

mm

a

comparison with

in

ratio

low

a

to

only 9%.
■»

_

.

Thursday, May 8, 1958

...

(1936)

American Telephone, U. S. Steel,

Standard Oil, N. J.

rhyme or reason.

tance, size, or value of the

Obviously, these weightings

They have no relationship to the impor¬

different companies.

.

j

Number 5114.

(Volume 175

vealed

by

Standard

indexes,

group

&

.

.

Poor's

that the

basis

lacking for expecting a sub¬
stantial unswing in general prices.
would

seem

important

to

require

outside

Steelmaking operations this week
•

"

capacity,

Steel

promising stock

Trade/Farm Ma¬

steel

chinery, Fire Insurance, Automo¬
tive, Oil

Producers,/ and

had

forecasts

as

investors

continue

as

to

supply

Market

of

$75,400,000

Loan

Banks

consolidated

2%

notes,

non-callable, dated May 15, 1952,
and due Feb. 16,
1953, was made
on May 6
through Everett Smith,
fiscal agent, New York

priced at

are

City.

The

par.

Proceeds from the offering will
be

used

the

to

refund

$92,500,000

Loan

Banks

$75,400,000

Federal

2.20%

consolidated

of

Home

series

D-1952

notes

maturing May
15, 1952. The remaining $17,100,000 of the maturing issue will be
retired from the cash

resources

of

the Banks.

Upon completion of the present
financing,
outstanding
consoli¬
dated

obligations of the Federal
Home Loan Banks will have been
reduced to

$258,900,000, represent¬
ing a reduction of $270,600,000, or
51.1% from the total of $529,500,000

notes

outstanding

on

Dec. 31,

1951.

Delivery of
made

either

Reserve

both

at

Bank

the

notes

the

Bank of New

serve

eral

the

at

be

may

Federal

Re¬

York, the Fed¬
of

option

Chicago,

of

the

or

sub¬

LOS

ANGELES,
Calif. — The
Los Angeles Society of Security
Analysts will be host to the Na¬
tional Federation of Security Ana¬

lysts at the closing dinner to be
8 p.m. May 9 at the Hotel

held

Ambassador.

V

aggressive

ticket

system

include

Walter

Podolak, Stern, Frank, Meyer &
Fox, President of the Los Angeles
Society; W. G. Paul, President of
the Los Angeles Stock Exchange;
Harry
W.
Strangman,
Douglas
Aircraft

Corporation, and Y. Frank

Freeman,

Paramount Pictures

Producers

The

Los

change,
host at

Angeles

it is
a

Association.
Stock

announced,

will

at

Exchange

production, this trade paper adds,
The growth of consumers' inventories steel
contributed to the
industry's interest in devising a plan to remove controls.

j

steel

This

inventory situation provides

with

the

strike

last

week:

How

a

clue to

long

question that

a

metalworking

can

arose

plants

continue to operate, this magazine asks?
In the last 14 months, 9%
of the steel

around

four-week supply.

a

other

manufacturers,
parts suppliers.
The

are

But the auto companies, like many
dependent to a considerable extent on

supplier with the smallest steel inventory
long the plant he supplies can run.
A few days before the steelworkers' strike
started, the Na¬

holds the key as to how
tional

Production

Authority

announced

its

preparing

was

to

remove
second quality carbon steel from the list of controlled
materials for the fourth quarter of this year.
Further indication that the pinch on steel was easing before
the strike is the report by the American Institute of Steel Con¬
struction that tonnage of fabricated structural steel ordered in

declined 3.5%

that

American

below that of February.

Iron

and

Steel

Institute

this

announced

week

estimate of the steel industry's operating rate for the cur¬
rent week could be provided on Monday (May 5) due to the diffi¬
culties of rescheduling production.
The Institute added that an
no

effort

will

be

made

later

this

to

week

provide

the

production

statistics.
Last week

the

operating rate of steel companies having 93%

of the steelmaking capacity for the entire industry was scheduled
at 109.6% of capacity, equivalent to 2,090,000 tons of ingots and
steel for castings, or an increase of 0.2 of a point above the pre¬
vious week's actual production of 2,087,000 tons, or
of rated capacity.
month ago

output stood at 102.1%,
parative figures for the like week a year
smaller capacity then existing for

Car

an

or

104.0% of the
output of 2,079,000 tons.
ago

were

Loadings Advance Further in Latest Week

Loadings of revenue freight for the week ended April 26, 1952,
totaled 779,402 cars, according to the Association of American
Railroads, representing an increase of 44,305 cars, or 6% above
the preceding week.
The week's

5.5%

also

below

the

34,107

represented

a

decrease of 45,260

cars,

cars, or

of

crease

total

corresponding week a year ago, but an in¬
4.6% above the comparable period in 1950^

The amount of electric energy distributed
by
and

the electric light
3, 1952, was esti¬

industry for the week ended May
6,985,000 kwh. (preliminary figure)

power

The current total was 149,844,000 kwh. below that of the
pre¬
ceding week when actual output amounted to 7,134,844,000 kwh.
It was 425,300,000 kwh., or 6.5% above the total
output for the

engaging

week

FT.

Nippold Opens

WORTH, Tex.—E. A. Nip¬

pold is engaging in the securities
business from offices at 3017 Lub¬

bock Avenue.'

F. A.
Frank

their
away

Output Declined 2.6% the Past Week

compared

with

the

previous

week's

total

units, and 115,339 units in the like week

Passenger
week

2.6%

car

under

production
the

in

the

a

of

Alexander

McDougald,

syndicate department, passed

suddenly at the

age of 50.




Grain

markets

Easiness in

continued

weak

with

'

seven

new

wheat reflected less active

received

cereals

showing

domestic demand

well

as

as

prospects despite flood damage in

crop

Wheat

most

~

general weakness in other commodities
able

and!

continued favor¬

some areas.

some

support also through continued heavy*
export shipments and the government report
showing stocks of
wheat in all positions as of April .1 at
521,000,000 bushels, or

17% below the level for the like week

United

a

97,828

and

less than

moved

in

corn-hog feed ratio

a

narrow

Cash

year ago.

a

corn

prices were relativelyimprovement in the

Some

range.

noted

recently and consumption of feed
heavy for some time. Export business in
was slow.
Activity in grain futures broadened considerablyweek.
Daily average purchases on the Chicago Board of

corn

last

was

Trade totaled
a

week

about 43,000,000 bushels, compared with
40,000,00©
earlier, and 26,000,000 in the same week last year.
flour

business

jobbers ordering only

continued

to

lag

with

bakers

and

replacements despite further price
reductions and discounts by mills.
A

ther

continued

necessary

lag in shipping directions has necessitated fur¬

curtailment of operations at some mills.
firm and higher, aided by reports that

was

chased

substantial quantities of Accra
prices above United States ceilings.

at

Trends in
a

week ago.

cocoa

The

cocoa

market

Germany had
from

dealers

pur¬

here

sugar were mixed with spot raws unchanged from
Demand for refined sugar was moderate at steady

prices.

Lard developed a better undertone toward the close of
week, reflecting recent strength in hog markets and a slightly
firmer trend in fats and vegetable oils.
the

Cotton

prices continued to work irregularly downward in
trading during the past week.
There was considerable
liquidation in the early part of the week influenced by easiness
in spot markets, the failure of the
goods market to show improve¬
ment, and indications that the supply position of the staple toward
the close of the current season will not be as
tight as had been
predicted.
Activity in the ten spot markets declined sharply last

light

week

with

sales totaling 59,400 bales, compared with
73,400 a
earlier, and with 47,600 in the corresponding week last
year.
Inquiries from domestic mills were less numerous with
buying restricted to small lots for nearby delivery.
Foreign
week

demand and sales for export continued slow.
Although a tapering
off in exports of cotton is looked for
during the next few months,
the total for the 1951-1952 season is
expected to reach the largest

volume in twelve years.

Adversely Affected by Bad Weather
and Labor Unrest

Shopping slipped slightly in the period ended on Wednesday
of last week as prolonged rains and labor unrest dampened the
consumers' interest in many parts of the nation.
As during recent
months, most merchants were unable to equal the high retail sales
figures of a year earlier, although the national sales pattern
was quite mixed with some sections
reporting sizable gains.
Total

retail sales volume in the nation in the week

slipped last
close to

esti¬

by Dun & Bradstreet, Inc., to be from 3% below to 1%
above the comparable 1951 level.
Regional estimates varied from
the corresponding levels of a year ago by the following per¬
New
0

England

to

—3

to

—7;

Midwest —1

+4;

East

to —5;

0

to

—4;

Southwest

South

+1

to

and

+5

and Pacific Coast —2 to —6.

Despite

aggressive promotions, the

many

interest in

apparel

faltered perceptibly last week and was somewhat less active than
in the similar week

a

year

Department store sales

before.
on a

countrywide basis,

as

taken from

the Federal Reserve Board's index for the week ended April

1952,

4%

advanced

preceding week
period

the

a

For

sales

from

the

the

was

period Jan.

registered

1

to

in

<

New

York

the

past week

of the like period in

in good measure
new

April 26, 1952, department
below the like period of

decline of 6%

a

dropped about 7%
This decline was due.
to heavy buying in the latter period to avoid the

trade
level

of last year.
In the
registered below the like

For the four weeks ended April 26, 1952, sales

preceding year.
Retail

26,.

like period

decrease of 1%

a year ago.

5%.

store

(revised)

was

was

mated

year ago.

1951.

3% city sales tax which was to take effect on May 1.
According to the Federal Reserve Board's index, department

made up

of 95,253

cars

store sales in New York

States, against 97,828

cars

1952, decreased 3% below the like period of last year. In the pre¬
ceding week a decline of 5% (revised) was recorded from that

was

25,120 trucks built in

27,004 trucks (revised) last week and 115,339

United

and

below the

States

and

the

firm

rose

year ago.

previous week's figure

Total output for the current week

associated with Reynolds & Co. in

the

Passenger car production in the United States the past week,
according to "Ward's Automotive Reports," dropped to 95,253 units,

and

McDougald

to

ended

U. S. Auto

the securities business from offices

E. A.

according

Institute.

May 5, 1951, and 1,113,316,000 kwh. in excess of the
output reported for the corresponding period two years ago.

in

at 99 Northfield Road.

in

modity price index to the lowest level since early
November, 1950.
The April 30 index at
294:96, compared with 297.69 a week,
earlier, and marked a drop of 8.3% from 321.77 a year ago.

Northwest

bassador Hotel.

is

movement

The decline in the general price level continued
through the
past week, bringing the Dun & Bradstreet daily wholesale com¬

centages:

Electric Output Declines in Latest Week

Electric

ORANGE, N. J.—Willard

upward

Wholesale Commodity Price
Average Drops to
18-Month Low

Com¬

at

Voorhees

Bradstreet wholesale foed price

first

-

Trade Volume

2,120,000 tons.

Edison

Van

&

the

100.5% (actual)

mated

WEST

total of 199 and the pre¬

of

Domestic

shipped went into
inventories, and just prior to the production interruption a month
ago the steel tonnage in inventory and in process had reached the
highest point in history, says an industry spokesman. *
Most metalworking plants had
enough steel to run at least
three weeks.
Others, including the automobile producers, had

provide transportation to the Am¬

D.

They

is expected to continue

cutback in steel

a

After the cocktail party buses will

W. D. Van Voorhees Opens

low

sitate

be

Building.

week.

April 29 advanced to $6.33, from the 22$6.31 touched the week before.
It compared with
$7.14 on the corresponding date a year ago, or a
drop of 11.3%.
The index represents the sum
total of the price
per pound
of 31 foods in general use and its
chief function is to show the
general trend of food prices at the wholesale level.
month

about 25%

cocktail party preceding

the

than

numerous

comparable

for

..

The

the dinner, from 4.30 p.m. to 6:30
p.m.

marked

index

be abandoned.
; ^ V"-. ■....
industry feared that continuation of controls would
hamper civilian durable goods production sufficiently to neces¬

out would

or

Ex¬

be

abandoned progressively,
freeing consumers to
use
the available supply of
steel, as they wish.
Then, control
over
the quantities of each steel
product which can be turned

Corporation, and President of the
Motion

week

The

moderate losses for the week.

action

by the industry was being taken to
counteract opinion of some Congressmen that modified controls
should remain on steel, continues "Steel."
^
The industry's proposal
probably would be that first the

A

will

touched off

loosening of controls.

The

.

Speakers

just about in line with demand, the outbreak of
a buying spree.
The steel industry
out from under this load when a strike

was
war

was

The

Los Angeles Analysts
Hosts to Nat'l Group

the

V

slight rise in the Dun
last

month

a

March

scriber,

in

^

Authority's

offering

occurred

Wholesale Food Price Index Makes First Gain
in 7 Weeks

the

mere

on

163

sharply from the 1950

more

level of 281 in 1939.

war

just about worked

plates,

indexes.v/

FHLB Notes

when

ago

down

weeks.

supply of some products, notably bars and heavy
still extremely short, the overall balance of
supply
and demand was near
enough that the steel industry was work¬
ing on a plan for complete decontrol of steel distribution.
This
plan differs sharply from the National Production

hopes and fears, their
buying and selling preferences,
through Standard & Poor's stock

Home

year

were

A

While

reveal their

A-1953

slightly less

a

index

ago cut steel production sharply.
Last week, just
industry got operations back up to capacity levels, it was
hit by a steelworkers'
strike, this trade journal notes.

tenta¬

are

tive, and subject to change in the

notes

of

Output Operating Rate for Current Week to Be
Delayed Due to Rescheduling Difficulties

the Korean

Elec¬

threat

These

Federal

81%

day of plenty of steel for all was shoved further
into the future by the steelworkers' strike.
This means you'll
have to live longer with
government controls, says "Steel," the
weekly magazine of metalworking.
In 1950, when it appeared

groups appear to

be these: Retail

series

at

32

This week the

Apparel
and
certain
Textiles.
Right now
some
of
the
most

Public

of

.

Several depressed groups
be about ready to swing up¬
ward, including Motion Pictures,

market

increase

an

jpoints from last week's rerate, "The Iron Age" reports. Output is expected to reach
capacity by Wednesday, and after that it will climb
slowly.
;,
:

(8)

future,

or

vised

may

(9)

Industry

scheduled

are

and
industrial failures dipped to 150 in the
May 1 from 168 in the
preceding week, Dun. & Bradstreet, Inc., states.
Casualties were

week ended

about 95% of

from here.

tronics.

Business Failures Extend Downward
Trend

some

rated

2M

(1937)

[

Commercial

The State of Trade and

development,

perhaps in the realm of inflation
or
the election, to generate any
important broad swing in prices

P" -r

Continued from page 5

is

also

It

V

The Commercial and Financial Chronicle

trucks in the comparable period a
year ago.
Canadian output last week turned out

cars

and 29,491

of

6,340

cars

and

3,395

trucks, against 6,332 cars and 2,966 trucks in the preceding week
and 7,026 cars and 2,667 trucks in the similar
period of a year ago.

the

similar

April 26,
of

a

year

1952,
ago.

week

City for the weekly period ended April 26,.

of

1951, while for

the four weeks ended

decrease of 1% was registered below the level
For the period Jan. 1 to April 26, 1952, volume

a

declined 11% under the like

period of the preceding year.

i

-

The Commercial and Financial Chronicle

(1938)

29

Net
For Qtr.

Reporting Company—

Blue

Street

Broad

$0.94

Mar 31

22,151,359

9.84

Mar 31

Mutual Fund

Ridge

$3,285,890

814,346

Mar 31

Aberdeen Fund

Bowling Green

Date

Compared with

Date

Fund

Investing

-

Mar 31

$24,213,785

Dec 31

24,250,467

'

Dec 31

797,410

.

Dec 31

26,653,111

1,578,238

1,309,456

Oct 31

12.63

3,210,623

Dec 31

15.54

15.34

107,627,151

93,368,960

Year Ago

83,867,889

77,727,899

Dec 31

Waldo

Shares

Dividend

Mar 31

Eaton & Howard Bal. Fund_.

Mar 31

1.91

and

prospectus
Write

to

and

S.

Mar 31

13,671,608

12,570,377

Dec 31

23.34

Mar 31

70,905,958

48,749,633

Year

17.92

Mar 31

127,755,314

115,474,863

Dec 31

20.27

3,376,328

3,075,581

Dec 31

23.92

Mar 31

123,123,475

111,939,404

Dec 31

11.43

10.72

Investment

Mar 31

17,824,279

13,222,979

Dec 31

12.07

11.93

Mar 31

1,544,642

1,331,568

Dec 31

31.29

revised

William

12,

May

on

Street,

New

1950,

1, 1952.
York 5,

York.

INVESTING

STREET

latest

Corporation's

prospectus is dated May 1, 1952, and
from 1 Wall Street," New York

is

available

5,

New York.

' '

SEC REGISTRATIONS

offi¬

The

posi¬

FUND

on

statement

tration

April

30

the

with

filed a regis¬
Securities and

Commission 1 covering
1,000,000
shares
of
capital
stock
to
be
offered
through Vance, Sanders & Co., Boston.
Exchange

Invest¬

23.43

Incorporated Investors

April

INVESTORS'

19.55

Mar 31

Avenue,

"

Field

directors hold like

tions with Commonwealth

22.86

Eaton & Howard Stock Fund-

is

and

1952,

Riverside

601

was

15

BOSTON

Fidelity

9.

April

Wash.

REPUBLIC

Cloud,

Alan

Kendrick.

Charles

cers

30.99

W.

Roy

Crothers,

E.

George

•

1.80

32.03

Coleman,

are

Stock Fund's newest

&

dated

is

-from

New

company's Directors

PROSPECTUSES
Bond

Spokane,

Vice-Presi¬

Coleman,

Thursday, May 8, 1952

available

WALL

The

12.46

3,260,569

prospectus

urer.

21.57 '

Apr 22

V.

Lewis

.

COMPOSITE

dents; and Robert L. Cody, Viceand
Secretary - Treas¬

$9.06

22.53

Composite Bond & Stock—.. Mar 24

Composite Fund

ers,

.

NEW

Cole¬

President

•

9.15

;

Waldo

S.

are

President; George E. CrothDouglas
R.
Johnston
and

man,

Beg. of
Per. Cov'd

On Reporting

On Reporting

Ending

Fund

Stock

-Assets per Sharc-

Assets

Commonwealth

organized

newly

INVESTMENT COMPANY REPORTS SUMMARIZED

.

30.81

Fund

...

Fundamental Investors
Hudson Fund

*

Co.

of

America-.

Johnston

Mutual

Keystone

Custodian

B-4

Keystone

Custodian

S-l

Fund

National

ment

Mar 31

of Boston..

36,497,988

34,792,285

Sep 30

11.11

4,454,128

4,164,562

Sep 30

34.57

•13,420,873

Year

28.50

14.84

12.55

12.36

Ago

Mar 31

2,069,647

Mar 31

Invt^stors

28,657,681

27,150,752

Dec 31

Year

Mar 31

19,077,042

16,649,570

15.50

1,250,046

1,099,290

Dec 31

33.62

Mar 31

4,906,762

3,375,685

Year

14.67

The institutional demand for
and

Securities

_

Street

Ago

Ago

....

Investment

T. Rowe Price Growth Stk Fd.

54,800,000

51,700,000

111,809,103

106,912,539

Mar 31

1,427,473

1,203,417

Dec 31

18.80
>;
.

common

stocks

is still growing

become

_

-

.

The demand for common

18.41
59.21

32.59

Dec 31

61.92

32.62

Dec 31

Mar 31

George Putnam FundState

___

could

quite pronounced in the event of recessions in
business and in new money financing at a time when public savings
are at a high rate, A. Moyer Kulp said Friday at the Fifth Annual
Convention of the
National Federation of Financial Analysts
Societies.
' v
/
'
T

13.69

Mar 31

Institutions' Thirst for Common Stocks Analyzed

32.89

Pine Street Fund

By ROBERT R. RICH

14.99

Pell, de Vegh Mutual Fund- Mar 31

Nation-Wide

.

Mutual Funds

27.26

15.02

•;

33.18

14,875,444

Company.

11.02

Mar 31
Mar 31

___

Massachusetts Life Fund
Mutual Fund

Ago

and

stocks, he said, comes from mutual
It also springs from the recent authorization

pension funds.

permitting life insurance companies and savings banks to invest
common stocks.
*
;-'K'

in

•

-

"We

appear," he said, "to have entered a new phase in our
financial history whereby a portion of the mass savings is be¬
coming institutionalized in equities as well as dollars."

Schedule of .Broadcasts

Mutual Fund Notes

On Mutual Funds

Mr. Kulp pointed out that if

savings

The following programs will

originate
the

on

Station

10:15 -10:30

from

dent

The

and

Man

Put¬
Pru¬

Prudent

In¬

stitution."

May 18: Henry J. Simonson, Jr.,
National

Securities

Corp., "The
May

.

25:

President

&

Research

Business Outlook."
Herbert R. Anderson,
Distributors

of

Group,
Inc., "Your Investment Target."
June 1. Merrill Griswold, Chair¬
man
of Board of Trustees, Massa¬
chusetts Investors Trust, "Invest¬
ing Your Money."
June 8: Fred E. Brown, Jr., Un¬
ion Service
Corporation Group of
Investment
Companies, "Choosing
Investments."

Your

Other Guests:
Axe

&

E. W. Axe, E. W.

Edward

Co.;

Fidelity

Johnson,
&

Management

funds

Mutual

May 11: George Putnam,
nam
Management Co., "The

II,

Research

James H. Orr, Colonial Man¬
Association; S. L. SholThe Keystone Co. of Boston;
S. Waldo Coleman, Commonwealth
Investment Company.

printing

be

may

shorter prospectuses
if revisions presently being con¬

simpler and

sidered by the

Securities and Ex¬
change Commission are adopted.
The

posted notice for

has

SEC

revisions of its forms N08B-1 and
S-5

and

amendment

an

Regulations.

General Rules and

Form

relating

N-8B-1,

Investment Company

is used

the

to

the

to

Act of 1940,

only once when open-end
companies make their

investment
first

For

ley,

registrations,
mutual funds file form S-5, under
subsequent

the Securities Act of 1933.
In

ical

N-8B-1, the SEC pro¬
to omit much of the histor¬
information
regarding
the

operations
nies.

investment

of

Since

registration

ous

form

the

forms

statement

reports. ^

and

is

the first open-end

be

to

investment
company
which can
supply venture capital to Amer¬
ica's expanding economy.
Share¬

compa¬

is

now

chiefly applicable to newlyopen - end
investment
companies,
lieves

Commission

the

the

involved

work

materially

lessened.

be¬
be

can

Originally,

the historical information

was

primary importance because it
lated

the

to

ment

your

investment dealer,

or

from
from

of this form

re¬

time

the

Company

This is the

passed.

of

operation of invest¬

companies at

Investment
upon request

voted to permit the investment of

10%

fund's gross assets in

the

of

business

step

the

crease

enterprises.
in

taken

was

order

to

The
in¬

appreciation possibili¬

ties of, the fund.

capital
vice

The fund is also

through the

leverage

borrowed

of

de¬

Pres¬

money.

acceleration
the fund's hold¬
ing of cash and high-grade securi¬
ently,

this

however,

factor is offset by

ties.

'••i'.v-v-.:

Act

the
was

first revision

since its adoption in

IRA

research

securities

&

corporation

120 BROADWAY, NEW YORK 5, N. Y.

tailer,

S-5

with

N-8B-1.

is

the

revised in
proposed revisions
being

This form is used for the

&

,

COMPANY,

a

this week that
opening a midtown

announced

the firm

was

office 'at

724

in

Fifth

Avenue.

The

office, which will specialize

new

the

sale

mutual

of

funds, will

be under the management of Mau¬

rice Glaubach, Ira Haupt's
mutual funds salesman.
While

Form

line

HAUPT

large New York mutual fund re¬

1941.

National

*

the stock market may become quite

on

in

the

the

office

sale

y

-

;

.•

'

'

-

•

.

,

.

s

he remarked, are:

Possible effects of this institutional demand,

(1) A-powerful influence in increasing price-earnings ratios and

;

reducing the high yield over fixed-income bearing securities.
(2) Dividend yield will be more important in determining stock
price because the largest institutions are income shoppers.
f3)
cushion

A

Kulp

of

will

leading

is

mutual

funds, it
will also handle normal brokerage

stability.

Mr.

Begun by Group Securities

Group Securities, manager of 22 mutual funds with net assets
exceeding $60,000,000, announced this week the start of its new
Periodic Investment Plan." The plan is designed for investors who "
wish to establish, and increase with regularly scheduled payments,
:

investment

an

Securities'

account

five

Features

funds

of

the

with

and

New

any

or

one

seventeen

Periodic

plan with first payment of

a

combination of Group

industry classes.

Plan:

little

The

investor

can

begin

$100, and with subsequent
The investor is free to choose the

as

payments of not less than $25. ■■

as

investment intervals for later payments.

Range is from one month
Although the investor is reminded regularly, at no extra
cost, that he has "promised himself" to set aside a certain amount,
he is under no obligation to maintain payments and suffers no
penalty charge if he fails to honor his investment schedule. The
investor is free to change his selection from one fund to the other.

to

a

year.

Dividends

and

capital

gains

payments

are

reinvested

auto¬

matically at net asset value.
In addition to its seventeen

Group Securities

industry classes, the five funds of

Bond Fund, comprising
only "legal" type Jjpnds; General Bond Fund, invested in discount
bonds offering a relatively higher rate of return; Common Stock
Fund, with a portfolio of widely-diversified, dividend-paying
common

specialize

market declines, and (4) Greater
executive, of Wellington Fund.

for

an

Periodic Investment Plan

holders at the last annual meeting

organized

Prospectus

modest percentage of the

a

in

REPUBLIC INVESTORS Fund
believed

grade issues.

able to operate under income and

form

poses

other
requirements which were
previously contained in the vari¬

new

registration.

Co.;

agement

stocks, their effect

mon

only

frozen in these large institutions is invested in com¬

pronounced because of the concentrated demand for a few high

on

indicated:

date

llllllllllllllllllllllllllllllllllllllllllllllll

WOR

a.m.

now

stocks; Low-Priced Stock Fund, holding aggressive in¬

vestments
anced"

The Institutional

are:

in

fund,

volatile

stocks;

investing

Fully Administered Fund,

in all

types

of

a

"bal¬

presently

securities and

business.

registration of securities under the
PERSONAL

SEC Act of 1933 by
vestment
tered

ft*"

also

thinking of
amending various rules relating to
the preparation and filing of regis¬
SEC

tration

is

statements

and

reports.

Primarily, these will concern the
incorporation
into
the
uenerai
Rules

'

r

of

certain

PROGRESS

definitions

and

"FROM

SALESMAN

manager

N-8B-1.

on

The

open-end in¬
companies already regis¬

in two years is just

other indication

to

branch

,s

an¬

Fundamental Investors, Inc.

-

H

of the wonderful

-

.

opportunities in the mutual funds

field," Anthony Reinach stated, as
his firm announced the appoint¬
of

ment

manager

Maurice

of

OFFICERS

a

new

and

Glaubach

Manhattan Bond Fund, Inc.

as

branch office.

Directors

of

the

V

W*'

!':•

1

■

Diversified Investment Fund

•

y.

■

.

'

:'

.

v.

I"'

/
V
'''J-'-''

} i\' '
-

EATON & HOWARD

A Mutual Investment Fund

For

a

free prospectus write

BALANCED

investment dealer

FUND

OBTAINED

-

'

-

'

.

'

"

Diversified Preferred Stock Fund

STOCK FUND
Diversified Common Stock Fund

PROSPECTUSES OF THESE TWO INVESTMENT FUNDS MAT
BE

your

EATON & HOWARD

FROM

YOUR

INVESTMENT

DEALER

OR

or

EATON

& HOWARD

PROSPECTUSES

AVAILABLE

ON

THESE

MUTUAL

FUNDS

INCORPORATED

CALVIN BULLOCK

BOSTON

Established 1894

48 Wall Street

24 Federal Street

One Wall Street

New York




BOSTON

533

Montgomery Street

Hugh

New York 5

w,Long and Company.
Incorporated

SAN FRANCISCO
New York

Chicago

Los Angeles

*

Volume 175

Number 5114

..

The Commercial and Financial Chronicle

.

31

(1939)
about

60%

stocks.

invested

in

price-stable bonds and

40%

in

common

■

Continued

from

"

For dealers and

others, Group Securities has prepared

prehensive sales portfolio, which can be had at
63 Wall Street, New York
5, New York.
New Fund Organized

no

com^

a

obligation from

The Security I
Like Best

*

by Commonwealth Investment Group

North American Securities

Company, managers of the $48 mil¬
lion Commonwealth Investment
Company, announced Tuesday the

V-

2

page

ent

$0.60 annual dividend rate in¬

to expect more than an 80%

begin.'

V

'.-V'V':';

^Commonwealth
term

out

Stock

Fund's

investment

at

this

further

objective

is

long-

capital appreciation, with emphasis upon common stocks-of
companies whose growth possibilities appear to

debentures
common

value

stock.

common

fund is

new

million shares of $1 par

one

to

Be

this next week

as

rebroadcasts

made

are

Rebroadcast is also scheduled

in

Boston
for

soon

Beginning Sunday, May 11, the radio series
Boston's
an

radio

evening

station

WHDH

broadcast.

news

from

The

6:40

to

In

Wichita,

the

over

p.m., following
be sponsored by
'

■

Company

■,

will

•

also

-V>v;

■

begin

rebroadcasting the series this Sunday.
funds

for
the New York office, reports that
inquiries totaling several hun¬
dreds a week, are being obtained at a
consistently lower cost than
that for any other media the
department has tried. Quality of the
sales leads is
generally excelle^t.^';^
manager

Putnam Fund Telegraphs Congratulations to
Steel Leaders#
Trustees

of

George Putnam Fund

of

telegraphed the
cour¬

trustees

responsible for millions of dollars
in the securities of American

-

savings

invested

of

people's

industries,"

the

fund's trustees telegraphed, "we
commend you for the courageous
stand you are taking in the
present steel controversy.
• "
:
"Investors everywhere should support
your efforts to halt this
drift to state socialization of
industry and dictation

by politically-

minded bureaucracy."

:

in¬

earnings

and

senior securities.
dilution appears

the

of

earned

surplus

as

well

listings

are

quarterly payments from
unless

net

otherwise noted-.
Div. Per

Fund—

Bullock

..

,

Axe-IIoughton Fund A

Consolidated
%

arrt

.....

-'A

•.-.was

dividends

year.

Therefore,

paid

during
40.19%
of

,.

Bid Price

Payable

of Record

5-26

lar

last

year

circumstances,

tions
12

of

have

the

over

been

Nqii-j..

40.19

a

9.9045

1948___

0.52

37.4071

0.52

11.902

0.51

York

2~46i

Hamilton Trust Shares
Beneficial

5-15

with

would

75c*

6-30

5-30

32Vs

6-

32V4

7-1

4-30

3.31

1

'

'

5-12

•

Low

9.42

5-31

7c

priced stock
Securities Industry

8.56

7.86

for

this
than

8.31

"

6.91

"

8c

"

He

r-----

Building

10c
_

Chemical

.'

"

8.20

"

-

'

'

"

Petroleum

"

"

"

"

"

Railroad bond

3c

2.7<2
4.51-

"

7.40

"

"

v-.

tax

about
years.

scheduled

Utilities

8c

6.42

18c

American

4c

—z/J;
4.15

5-21
5-31

4-30
5-

6

51/2%

to

(quar.)

preferred

37%c

York Corp. common

41/2% preferred (quar.)

•

6-20

5-29

34%c

(quar.)______

—'

---££•

6-20

5-29

25c

56y4C

187-

441#%

1

6-13

7- 1

6-13

.'-Payable in Canadian funds; tax deduct ions jat source.
15%; resident tax 7%.

resident tax




at

for

Non¬

dends

larger
in

the

capital.

years

1955

and

the

unchanged,

1955

be considered

of

a

divi¬

through
a

about

plan) some $34
from retained earnings plus North Ameri¬

on

these assumptions, the capital structure of Union
might look as follows:
Percentage

$217

Stock

.59

14

146

1

.

51%
35

return

.V :

■

year

•#;/

■

\;V^$422

Union Electric earned

100%

about $1.12

per

share after

North

American, which benefit will disappear

the first distribution of Union stock is made
by North

as

to

accelerated

in 1952 and somewhat larger
1953-'54, reaching at least $1.50 in 1955, which might
warrant an increase in the $1.20 dividend rate in that
year.
Assuming a yield basis for the new stock of about 5#2%
with a $1.20 dividend rate, this would mean a market
price of 22,
on

in

which basis the

in

can

corresponding break-up value of North Ameri¬
Against this, however, must
during the two-

1954 would work out at 26 Vz.

be considered the loss of $2.04 in cash dividends

is
in

if the option

proportion

into

converted

American

agement expects to earn about $1.31

of

line

years

utilized

remain

1959 could

of

North

money

return with

amounts

five

advantages

the

1959. Thus,

laws

still

tax

for

is

the

Utilities

(though the loss might be offset by income tax savings
plant amortization). The 1951 earnings were
adversely affected by the heavy construction program. The man¬

charge
rate

'7;;■

soon

due

$11

facility

new

Securities

American

has

some

the

on

the

accelerate

tax

Based

■

>■

dated
as

to accelerate

40%

go

accrue

through

Investment

American

adjusting to the 10.3 million shares to be outstanding under the
plan. This included about 10c tax savings due to filing a consoli¬

facilities. Thus the

the

to

1954,

would

equity

Last

<

Corp.—
6% preferred

7#:-#

per¬

company

depreciation

Since

6.90
3.8-7

North

of

new

purposes

6c

Wisconsin Investment Company,

the

$800,000 annually

late

other

are

Common Stock Equity

.

has the privilege of in¬

for

North

of

give North American Company undisputed ownership of
The investment trust has a well diversified

Preferred
'

capital

its

11c

Investors Stock Fund

million

al¬

creasing

Tobacco

-

ownership

Millions

"

10c

;

that, the

amount

estimated

an

some

Long-Term Debt

dividends
of

from

permission

the

or

American

at the end of 1954

considered in 1952.

amortization

7.12

14.05

8c

—-

_______—

of

return

a

earnings,

North

marketable

period.

ac¬

is

company

10c

-

portion

so

million of

"

from

those

purposes

increase

Beyond

"

'

14c

—

in

12.91

8.27

that

tax

centage

received

9.06

retained

can's assets will have become available to Union Electric. It
may
also be necessary to issue some $20 million of debt
during this*

be

depreciation

should

"

11c

for

considered

4.95

15c

likely

-

"

13.70

1

charged

"

"

14c
*

.

Railroad equipment
Railroad stock

"

8.83

6c

Industrial machinery
Investing company
Merchandising
Mining

8.60

of

the

of

increase

likely

24c

Company, an interest in Muzak, etc. Assuming
that these might work out at around $4
million,., this would mean
that by the end of 1954 (as envisaged under the

-

4951.-i. Looking

should

unless

and

Hevi Duty Electric

to

interest

is

tered*, the

"7.

""

17c

Electiical equipment
7

Steel

7.51

12c

_

...

charged

accelerated,
it

1953

assets which may be more
difficult to liquidate, such as the large building at 60
Broadway,

1952

construction

and

in

assets of NAUS.

1954, when the
expansion will again

"

7c

J;

Food
...

.;

Its

of

There

return

a

to

"
r

in

disbursed

holdings which can be
$10 million cash without much difficulty.

it
of

be

years,

Aviation

portion

will

year

be

1953 and

company's

"

counting
Automobile

accuracy,
a

interest

smaller

stock will

$20' million

list

project

smaller, how¬
ever, and earnings will be higher,
the percentage of dividends non¬

5-16

"

12c

___

Common stock

to

be considered

also

credits

'.

** 10c

—

of

that

appear

ahead to

7c—:

difficult

construction will be

*

1951.

order to

of capital on the same basis. Since

6-6

8c

bond

bond

Fully administered

Group

is

degree

any

may

'

total

time been involved in litigation with minority
common
stock, but a compromise has now been
proposed to the SEC for paying this minority stock $9 a share in

14.09231

4-22

Group Securities Funds—
General

0.80

2

'

about

holders

94.8317

1940_

6-

'

be

Corp. has for

15.7475

0.74

4-30

$1.00

____

of

1941_u

taxable

interest

Institutional

10.9103'

12.56

(Denver) —
-

0.68

23.24

50c

i

its

on

Assuming that earnings cover the $1.20 dividend rate with
moderate margin during the two
years, this will mean that there

the

Corp., $2 preferred—

Semi-annual

share

a

needed to pay off the notes.
Union v/ill also receive

15.54

"0.68

,

$10-15 million—probably closer to the latter figure—representing
assets as they are gradually converted into
cash.,.
North American had about $4 million net cash assets at the end

0.48

it

-t

miscellaneous

0.53
____^

Company

stock

will

19.5393

0.52

100%

American

in 1954.

Taxable

1949___

North

earnings, Union proposes to pay dividends of
(the cash rate now being paid by North American) only
in the hands of the public.
In other words only about

$1.20
on

0.56

to

this out of retained

past

$0.60

1951

letter

During the two-year period Union expects to issue $20 million
Notes, of which $5 million will mature each six months after
their sale, being paid off principally out of current
earnings. This
will really be delayed equity
financing. In order to take care of

non-taxable.

Dividend

1 '

recent

a

Serial

The record follows:
Ycar-»-

to

time when the two-year plan is expected to become effective,

por¬

dividends to be disbursed in
,

30

years 1952-'55 Union Electric will
$120 million construction money, of which at least $30
million should be equity money. The
present $30 million bond sale
(of which $8 million will apply against bank loans incurred prior
to Jan. 1) will probably take care of the
company until about the

con¬

varying

dividends

years

While

Stand-

110

stockholders, during the four

sidered to be a return of
capital.
Furthermore, due largely to simi¬

7c

Diversified

16

•

need about

the

is

5-15

Securities, Ltd.

54%

59

$366

common

1942
Holders

Percentage

$197

Stock

According

the

dividend disbursed to the

r

When

;

.

Common Stock Equity

for tax purposes
insufficient : to
completely

25c

*

$2.50 non-cum., preferred"
Equity Corp., $2 preferred______
First

income

Approx.

t

10c

Composite Fund

Preferred

surplus

1943_

$9.68

Share

r.

N

Fund

investment

.

Millions

income,

earned

1944

DIVIDEND ANNOUNCEMENTS

v.

Long-Term Debt

corporate purposes, and credits
taken for interest
charged to con¬
struction are not taxable

1947

to your

as

J

purposes.exceeds that charged for

1945

All

follows:

as

end, due largely to the fact
that depreciation charged for tax

1946

business,

the

,

INVESTMENT COMPANY

plan is also designed to furnish equity funds for Union
financing and provide the large neces¬
for the big construction program. Union recently
sold $30 million
bonds, making its capital set-up approximately
new

amounts

sary

at the

1950__
best for

v:

.

The

Electric to balance senior

%

"We hope you will continue to
fight for what is

of North American
(for this
Union Electric's outstanding stock would be reduced to

10.3 million shares).

Returning to the matter of divi¬
dends, there is a point of special
for long-term investors.
Although the company reports a
substantial

Union distributed for each share

purpose,

Thus, no further
likely for at least

.

continued, "As former Defense Mobilized Wilson
said recently, 'There are some
things that are worse than a strike.'
of your

of

re¬

sale

interest

The telegram

country and fair to the owners
employees."
['t

Another distribution of 1/ 10th share of Union would be made
a
year later and at the end of the two-year period a full share
would be distributed, making a total of one and one-fifth shares

12c

.r

:

perhaps,

by Oct. 1, 1952).

can

shareholders

controversy.

"As

an

prospect of

cover

Boston

chiefs of leading steel companies
commending them for the
ageous stand they are taking in the present steel

7

the

higher

year

'

Meanwhile, Milton Fox-Martin, mutual

the

'the next two years.

6:55

>

Small-Milburn

<

Wichita,

will be heard

the firm's Boston office.

and

tained

Chicago.

will

program

and

of

into

likely
earnings

dividend, financing
accomplished by means of

be

The impact and coverage of '-'Your
Money At Work,'? Kidder,
Peabody's Sunday morning radio program, will increase
greatly

by the SEC (and presumably by a Federal Court). The
company
presented the plan informally to the commission several months
ago and filed it on April 18; it is hoped that approval
by both the
staff and the commission, as well as
by a court, can be forthcom¬
ing in time to place the plan in effect by Jan. 1, 1953 (or

seems

creased

Rebroadcast

distribution of l/10th share of Union Electric to
stockholders of North American as soon as the
plan is approved

approxi¬

converted

are

stock, which

view

trend

Kidder, Peabody's Radio Series

Kansas.

in

<

of

Company

plan to dis¬

a

Electric

contemplates

during 1952
Assuming that all of the

and 1953.

be greater than average.

pay¬

announced

in Union

Company
Missouri, its major remaining asset, and eventually to dissolve
compliance with the Utility Holding Company Act. The
plan

of

in

company's
calls for a

program

Company recently

tribute its holdings of common stock

The

expenditure
$18 million

mately

well-established

Capitalization of the

time.

expansion

Company and Union Electric

North American

long, al¬
though with further plans for ex¬
pansion, we would' not be inclined

Detailed information about the fund will be
given to dealers
late in June, and in August a
public offering of 250,000 shares will

Utility Securities
By OWEN ELY

North American

creased somewhat before

organization of Commonwealth Stock Fund. The
fund, to be man¬
aged and distributed by North American, is now in
registration
with the Securities &
Exchange Commission.

'

Public

year

period by

position.
American
level

a

stockholder of North American who retains his

This would reduce
to

around

24V2,

the

as

1954

estimated

measured

value

of

North

against the recent

price

(since the announcement of the plan) of around 21-2.

'

This

estimate

theoretical.
of

100

of

future

potential

value is

of

It does not make allowance for the fact that if

shares of North American should wish to

share lots of Union

Electric stock to

purely

course

sell

the

a

holder

two

be received under the

10-

plan

dividend distributions', he could consider the proceeds as capital
gains—an important factor for those in the higher tax brackets,
particularly during the present period of high Federal income
tax rates. Just how much this "plus factor" is worth marketwise
is, of course, difficult to determine.
as

Chronicle

The Commercial and Financial
32

.

.

Thursday,.May 8, 1952

.

(1940)

of the maritime powers, es¬

none

pecially none of those who hold
possessions in the New World or
the West Indies, shall presume to
treat them with insult
or con-

Sovereignty

Out Dwindling

stand

to

own

our

woild, so that

the eyes of the

in

Continued from first page

foreign

upon

peace

our

fought revolutionary g e n e r al s gained tempt. It should be the policy of
"It is our true policy to steer
for, and gained, our independence great victories, and then one day the United States to minister to clear of
permanent alliances with
•^Washington, Jefferson, Adams, Napoleon came. Thereafter, with their wants without being engaged
some little interim while he grew
jn their quarrels.
And it is not any portion of the foreign world,
Madison, Monroe — who, with
so far, I mean, as we are now at
in the power of the proudest and
their associates, set up our gov¬ a bit, he took over France.
liberty to do it; for let me .not be
ernment under the Constitution;
As soon as the war broke, it be- most polite people on earth to preunderstood as capable of patron¬
I stand with Lincoln and Seward, came necessary for
Washington vent us from becoming a great, a
izing infidelity to existing en¬
who stood for the principle dur¬ and
his
Cabinet
to
determine respectable, and a commercial nagagements. I hold the maxim no
ing the Civil War; with Cleveland whether or not these two treaties tion if we shall continue united less
applicable to public than to
and Olney, who voiced the prinwhich they had made with France and faithful to ourselves."/
.
private affairs that honesty is al¬
ciple during some -international made us an ally of France so that
What a vision and what a
tionary Fathers stood, who

complete in¬

These were

with

and

Venezuela;

in

troubles

in the begin-

ning of this century.
It was during this first century
and

quarter of our history, that

a

America,

great America, was

our

built
politically,
industrially,
economically—the America which
—

ment

kept
is

possible the riot — domestic and foreign—which is now
has

made

raging; the America which would
never have been
built under the

policies—domestic

foreign—

and

tbat

and commerce with all, yet who
can avoid seeing the source of
going war, in the tyranny of those na-

woui(j be neutrals.

we

Now> remember, we were
to be neutral in a war between

tions who deprive us

ral

great powers of Europe, and
which now dominate us.
with a treaty running against us,
I am pro-Constitution, pro-govwhich
the
other party to
the
ernment, as it was established treaty, France, was going to conunder the Constitution, pro-free
gider binding Upon us and giving
the

neighbors?

to

I

much, I do not think that the

Monroe Doctrine.

Doctrine
in the availing ourselves of the
^'^institutions, as they have been
them certain exceptional rights, wars of others to open the other
Approaches were made to us in
Developed under and through the
^ ^ to ug # representative, ports of America to our commerce, 1819-1820 that we join the League
Constitution, pro-liberty, pro-free¬
as the price of our neutrality."
Genet. All of you students of his¬
of Peace that was proposed dur¬
Thus
Jefferson,
the
political
dom, pro-full and complete inde¬
tory remember about him.
John
ing the Conference at Aix la Chapendence and sovereignty, pro-

local

self-government, and proeverything else that has made us
the free country we had grown to
be in the first 130 .years

Bassett Moore made a very

that Genet set out on his

mission

of our na¬

that I am
internationalist, anti - interventionist, anti-meddlesome-busyIt necessarily follows

In the domestic

lairs.
an

international

our

m

!-J°,CflallStet fnV
I

anti-Welfare State
kindlier

am

what the

am

all

of

ones

af-

field, I

the

our

would

call

a

As

.

.

our

national

is

now

history,

it

as

at the dawn of

was

to what neutral

In

in the world today.
the mad thrusting of our¬
on

With
mation

selves, with a batch of curative
political nostrums, into the tur¬
moil and

to

tragedy of today's world,
a physician called in

like

are

treat

virulent

a

policy,

have

we

noted,

and

France,

over

our

Napoleon
he and

only
veil

smallpox.

his

oath

of

know, took
took

know

von
you

as
as

office

first

as

dent of the United States

Presi-

April

on

gan

?n

British andone the Orders
Napoleon be-

to issue, the
Council, and
from

Decrees

the

other

the

Milan

of the

whom they

England began exchanging blows,
pox, and whose treatment consists
not oniy on the field of battle,
in getting into
bed with his, pa- but a}so jn the matter of issuing
tient. That is not the way to cure
or(jers destructive of commerce,
Washington
wasnington,

becomes the instru¬
very influence to be

it

else

avoided,
instead of
a
defense
against
it.
Excessive
partiality
for one foreign nation and exces¬
sive dislike of another cause those

century and a quarter.
As

lution

We
in

Then trouble began

was on.

to loom for

us.

.

.

.

starting from scratch

were

agriculture, in

industry,

in

government,

in

commerce,

in
na¬

second

influence

the

on

the arts of

Real

other.

tional defense,

in

this

likewise.

I would like here to recommend

with

contest

France

compel other nations to do

view

government

was

not

as

set

up

to

as

set

an

why

this

It

up.

was

eleemosynary

government to feed and clothe and
all the rest of the world

nurture

It

set up for the purpose

was

establishing

of

which

government

a

should bring peace and

prosperity
to the people of this nation. And
when

you

have read those

para¬

graphs, read the Preamble to the

made

as

great progress.

Washington

went

all

through

this; he endured the harsh criticism

that

^ ^To

surrender

their

in

surrender their in

wavered

never
course.

course as

He

st0D

Washington

President,

written

to

a

Constitution itself.
The French Revolution brought
war

in

bering
alliance

Europe.
that

we

with

France,

had

a

The

treaty

her, began

steps to realize upon it.
French

tinned, it

remem-

.

to take
.

Revolution

grew worse.

of

.

con-

The French




""I

hope

the

a

remote

very

,

.

,

us

have

none

relation.
,

.

or

Hence
.

controversies, the causes of which
are essentially fareig" to °.^r con"
cerns- Hence>ustherefore, it must
be unwise in
to implicate our¬

became

had

terests which to

set of primary in¬

his

Pole.
he

a

his

true

the compass to the North

Before

"Europe has

to

as

United

States

of

European

system has been a cardinal point
their

every ad¬
government
from the Peace of 1783 to this day.

of

policy

If at the

under

their

of

ministration

the

doubt of its
there

justice

be

can

or

its wisdom,

at

none

time.

this

Every year's experience rivets it
more

deeply in the principles and

opinions of the nation."
After

our

during all
escaped
all
in Europe, we did not
aloofness
we

years,

wars

should

follow, unhampered by the
of anybody else.
.
America, up to World War I,
had nothing essential in her his¬
.

analysis,

in her march of progress.

this

of

entangled with those of any other

country.

>-''])]

Our Diminishing
I

want

tions
If

under the
have

I

all

made

of the preju¬
excited

been

against this instrument in the pub¬
lic

opinion, which time and expe¬
of
its
good effects will

rience

America, the
European and American political

Europe as well as of

come—my

few observa¬
of the talk.

myself

at

clear

point,

traveling

were

we

title

,

time

it is to
that during the time that
this

to

up

ances,

have

Sovereignty

has nearly gone—to a

cluding observations:
which

to

now

unhampered

"But independent

And all

possible because our
interests and our destiny were not
was

Secretary Adams makes these con¬

dices

.

tory that was not a step forward

the point

further

some

by

participate in any of them; we
had no alliances; we moved along
the course that we thought we

system there could have been any

could

acquire

influence

its

in

with other

bers

a

of

member

right to ask the
most
powerful
controversies

their

States; the other mem¬

must

be

entitled

in

return

to ask the influence of the United

States, for themselves or against

by

own,

our

on

alli¬

entangling

the
greatest
growth that has ever been made
by any nation at any time, in the
whole history of the world.
I shall now say a few things
about
our
dwindling
sov¬
This

.

'f'. .v;:'. -v.,

.

will

show you

con¬

some

of

of our abandonment

sequences
our

made

we

ereignty.

traditional policy and

.

of our
entan¬

nary

the

co"isions of her friendshiPs or en"

sp

peculiar

a

situation?

Why quit

ereignty.
Every treaty
partite

the

absolute

and

determination,

al¬

President's

irrevocable

or

Nations

impairs

class)

surrender

in

terest, is the

F i

st:

r

during

them

as

equals,

and we

war

and

relating

the

ances

war.

These

in European

often

parlance,

six of them to

Napoleon.

may

not

It took

are

These

alli¬

rheet disaster, but they

usually permanently crip¬

pling.
Second:

repeatedly declared policy!

to

a

with

are

ing

; '

conduct; these normally end

fusal."

were

;

pur¬

our

may

to its

coalitions.

we

of the alli¬

for

be classed as:
Alliance arrangements

eliminate

that

since mutual

purpose

treaties,

tonight,

pose

present itself rendering it
to make that determi¬
nation known by an explicit re¬

is

sovereignty,

our

alliance requires a

.

Alliance

necessary

again to make
a
young, weak

latter

ance.

will

The point I want

the

of

is

strictly non-sovereign' in¬

called,

is the wisdom of this

bi¬

alliance,

of

of rights,

though he trusts that no occasion

How great

sov¬

our

multipartite (the United

Charter

because every

made

is

impairs

plementation,

participation in that league, which

selves by

artificial ties in the ordi¬
vicissitudes of her politics or
ordinary combinations
and

gling alliances with Europe.

aid

their

into

entering

more

once

right must occa¬
appeal to principles
which might not harmonize with
those of a European member of
the Bond. This consideration alone
would be decisive for declining a
ercising

sionally

America will be able to keep dis- mitiesnation, relatively, and yet we were
engaged from the labyrinth of '/ "Our detached and distant situ- speaking to the great European
European politics and wars; and ation invites and enables us to powers on terms of equality, tell¬
that before long they will, by the pursue a different course. . . .
ing what we would do and what
adoption of a good national gov"Why forego the advantages of we would not do; we were speak¬

ernment, have become respectable

By
these

original adoption of their

their opponents. In the delibera¬
to foreign nations is, in tions of the League they would
extending our commercial rela- be entitled to a voice, and in ex¬

varied

or

was

the

in regard

she must be engaged m frequent

But

in

entanglement

settle

to

means.

Every engagement with a for¬

he

him.

to

came

of all

independence

we

eign nation which, if met, deprives
us of .the power to determine our
own course at the moment of im¬

and

were,

we

cautious

and

able

been

we

nation,

any

If the United States,

They fairly succeeded
tions, to have with them as little

weak

To stand in firm

Extra-European.

with

have
have
peaceful

dispute

other

Every
had

members of the Holy Alliance,

1j

sitions,

is

States

without

one.

possible.

"

~

a

United

that

dictation

system of the
also essentially

political

of the Maine, I think we

up

might have gotten away

as

us

"

"The

Havana

Harbor, the explosion or the blow¬

wbile jts tools and pnnfir|pnpp nf
dupes usurp

pe^ainS
C°mX,Ce affecting political connection as possible.
to all of you that you read the
firct two naraurnnhc and th* loci
US'i
W3S
&0 *ar aS we have already formed
n^Lranhnf the$ S 7
/ yCa? °id; Zu a? aU engagements let them be fulfilled
Tndenendence for the ™?nn£
Z maintained our po- with perfect good faith. Here let
Y
we
contend wi
Independence
purpose of
went forward,Jfn
getting

and

in

incident

that

as

3S

*

Persia

of

accident, for if we had

an

systems should be kept as sep¬
arate and distinct from each other

are reported
j am sure he had in mind there
agreed, when they began the viulfication that came to him
seriously to undertake to over- as the result of his stand in favor
throw Napoleon, "to ignore all the
of neutrality as against France.
rules and usages of international
"The great rule of conduct for us
and to

situation

Turkey, Secretary Adams said:

very

any

patriots who may resist the in¬
trigues of the favorite are liable
to become suspected and odious,

to have

law

detached

actuate to see danger gradually wear away, it may be
side, and serve to observed that for the repose of

even

5®' ,1.?.89-. jyithl.n. ,tw2. "i01?11!8 the Russia and England
Bastille fell and the French Revo¬

instructed
Mr. Middleton, our Minister to
Russia, that we could not partici¬
pate. After commenting upon the

one

on

and

Berlin.:

and

But that jeal¬

government.

tial,

international relations for the next

took

repub¬

the

to be useful, must be impar¬

ment

neutrality procla¬

forward in

of

foes

lican

basis of principle and

went

we

experience prove that
influence is one of the

baneful

ousy,

obligations were.

that
a

oueht

and

tory

small-

of

case

as

Deonle

frpp

constantly awake, since his¬

most

the

representing

as

a'

of

4Painn<,v

}ea.lousy °.f a tree Pe°P_ie ougnt
to be
foreign

most advanced existing opinion as

our

as

and

trality

greater inhumanities than are

going

we

a

—

present tragic
plight shows. Even savages inflict
110

lawyer,

great interBritisher, as

a

this

X;.:;;./...

■

.

"Against the insidious wiles of
foreign influence (I conjure you
to believe me, fellow citizen) the

human nature does constituting an epoch in the dechange; in its basic elements velopment of the usages of neu-

iiot

it

by Hall,

acterized

Country

his

countrymen the fol-

£ u

subject:

neutrality proclamation that was
i«„PH at that time has been rharissued ut that, time has heen char-

new

w

0f

lowing advice and counsel on

we

were,

Father

£h

£

went
neutrality. The

we

as

forward with our

world, new conworld, new conditions, new problems," and so on.
To this I will content myself with

answering

therefore,

is,

u became a final message

£

Washington almost beyond
But still we steered
course. Weak as we were, de-

fenseless

.

proceed, some will say,
'Oh, he is talking about the past;
a

along

thinking
It

surprising that in

th t

endurance.

I

but this is
3Ut

Com unist, oldiers, here, to make war against

neighbors. He maligned Wash-

tated

or

not, in fact, that).

am

of

were

lines.

same

not

jngton in a way that finally im-

sympathy,
rabid reactionary (I

association

they

his Farepopularity Genet began openly to ^11° Ad'dres's (Sept* 17," 1796),
criticize Washington. He underWashington should have incorpotook to recruit a force of men, rated A
that benign
document

people with whom I am denying
any

his

»somewhat

Miscalculating

latter

these

show

lowed. Secretary Adams

expressions of
the time that

other

are

statesmen

our

revolu¬

of the

wine

new

There

tion."

-

bodmess

the

of

earthy.

cal and

fermentation

the

with

"gurgling

pelle and the conferences that fol¬

cause

He says

tional existence.

anti

idealist, could see and espouse a
that was intensely practi¬

clever

observation about Genet.

shed

thought of that as more or

had

not

ing
Monroe i

Mexico

great credit upon us; and the last,
the war with Spain, and I have
less of

Leading to

discuss that

to

with

early realized however,

Situation

Mexico,

with

war

like

war

often

impossibility
_

three wars
of 1812,

very

be shuffling the transfers of prop¬

front which I

hope it will, I see no
„
,

the

never

that it would not do for Europe to

of the natu¬

part of the

our

have already alluded;

I

next,

...

ernment wears the

which

the

trading with our erty among themselves, where the
territories bordered us, hence the
If the new gov¬

of

right

We very

rela¬

the first, the War

were:

announced.

and

on

World War I, and those

wise

and

United

the

until the time that we entered

up

and

great

as

of

peaceful adjustment of our inter¬
national disputes.
We
had only had three wars
in all of our history, foreign wars,

policy.

the

briefly
the great¬

international

its

plementation

policy of isolation formally framed

in her war and

to join France

Ug

in

there

as

trace

tions, and that is, the actual im¬

I repeat,
engagements
in their genuine sense.

was

to

what I regard

States

tend them."
Thus

time,

were

me

achievement

est

opinion it is unneces¬
and would be unwise to ex¬

sary

for

not,

even,

in my

But

so.

I wish there

those

let

be observed

quarrels, but cultivate peace

not require pean

did

treaties

tbe

that

The same thought was

or

best

therefore,

in the
whether
the
treaty
obligations minds of others. Jefferson, writwere
0f a character that would ing to Washington at about the
permit us to be neutral. After a same time, said:
very careful consideration, Wash"I am decidedly of the opinion
jngt0n and his Cabinet decided we should take no part in EuroEurope,

of

rest

^e

w^j1

the

ways

prophecy!

j0jn France in the war

must

we

We

wholly free from entangle¬
in European problems. We

were

_

Theodore Roosevelt,

maintaining

great days in our diplomacy.

and
prosperity in the toils of European
ambition,
rivalship, interest,
humor, or caprice?
entangle

Europe,

our

dependence of them.

were

ground? Why by interweaving our
destiny with that of any part of

liances
in

Permanent military

al¬

providing for mutual aid

case

.

conflicts.

of

future

The

international

North

Atlantic

Treaty of 1949 (April 4) is of this

type.
little

Normally, these

may

peacetime significance,

have
but

they bind the independent action
of a nation when the contemplated

Volume 175

Number 5114

.

.

The Commercial and Financial Chronicle

.

(1941)

belligerency

begins.
They
impair sovereignty.

nitely
alliance

with

France of

defi¬

We

should,

Our
was

1778

interior

in

the

what

observe that

I

lines

of

among

precipitated

un¬

sions

ceedingly

intricate,

alliances, al¬

lines

so

der the
"

with France

treaty.

Third:

Permanent

ways with a strong, and sometimes

with

predominant, military fla¬
These usually have some
benign provisions — wise or un¬

ceal,

make

them more palat¬
peoples involved, the
of whom almost never

majority
and

their

full

rarely

are

fully

in

of

informed

type)

ple, and they rejected it.
became

shall

we

for

The

not

reject

chronology of its
interesting.

tion

San

framing

Senate

July 13; the Senate gave

advice

cation

and

consent

July 28, 1945.

on

A deliber¬

ate

plan, carefully worked out, to
adopt the Charter before the peo¬
ple could study and understand it,
could

have

not

worked

fectively to this end.
launched

into

world

a

ef¬

more

We

were

so

organiza¬

tion about which neither the peo¬

ples of the world,
had

they and
ing:
' •-

I

ourselves,

nor

adequate

any

knowledge;

had less understand¬

we

' ■ \

•

1

of

sover¬

eignty involved in the first class,
military coalitions and alliances
for

the

we

shall

selves.
the

:j

Charter

here

not

our¬

cease

with

the

class—we

may

that if

agree

signatory
farmed

,

any

attack"

Treaty

or

of the parties

victims

the

are

that by

note

the North Atlantic Pact
we

we

of

an

join them

as

ally against the attacker. We
no
right, under the treaty,
to enquire as to the cause of the
attack, nor as to who, in fact, was
an

have

the

aggressor. The one who strikes

the

first

the

aggressor,

law.

if

So

must

we

blow

our

far

not

necessarily
in fact or

either
the

as

come

ally

is

treaty

goes,

to the rescue, even

the aggressor in

was

the

conflict.
We may make no
treaty in conflict with this treaty.
The

treaty remains in force for

definite period.

a

The treaty is ob¬

viously, in its effect, a defensive
alliance against Russia. No matter
what the cause, or how important

significant, if Russia strikes one
of the allies, under the treaty we
must go to war, if we meet our
treaty obligations.
or

One

must

well

may

find

that

tional

trade

and

surrender

we

role

and

seek

to

get

a

...

-

to

the

third

class:

.

we

note three important impair¬
ments of sovereignty that come to

may

us

through

the

naive
j-

to

as

curity

do

not

for

divine

.

of

sense

natilfd
0

possibility
that

culties—a
abled

to

nation

build

of

up

in

which

power

to live

us

loving

international

has

en¬

the

world,

small

the

the

disputes

nations

un¬

we

are

un¬

culties.

No

fact

disposition

is

in

always

United

set-up.




done.

vis-a-vis

sitting
The

of

great
so

small

to

us

settle

peacefully.

call

would,
the Charter machinery,

under all
amount

Such

Nations

troubles

our

to

a

virtual

a

command^

with penalties for failure to heed
call.

the

If

progress towards a pacific
settlement did not satify the Se¬
our

curity Council they might "at any
stage of a dispute" intervene and
what

recommend

should

we

do,

taking

into consideration that, if
the issues are legal, the matter
should
go
to
the
International
Court

Justice.

of

The

Security

Council's recommendations do not
fall

far

short

of commands,

with

attaching sanctions.
If

failed

we

settle

to

the

dis¬

pute peacefully, and if the Secu¬

rity

Council had not

just

as

refer

then

described,

it

to

Security Council,
either recommend the

reference of

legal dispute to the

a

International

Court of

recommend other
or

it

Justice,

Security Council

the

we

did

we

appropriate pro¬
"recommend

may

are

them in

settle

form,

it may

That is, the
us

what

to make.

not choose

Council,

as

tell

recommendations

curity

or

may

such terms of settlement

If

must

we

the

which may

cedures,

intervened,

to

of

follow

the

Se¬

if, following
did not in fact

or

we

the

difficulty, then, if the
resulting situation was, in the
opinion of the Security Council,
a

threat

might

to

move

sanctions

to

peace,

to the

compel

the

Council

imposition of
us

to

do

its

,

j

Again

ones.
naive

court

a

to

as

by

of

outside

are

be

un-

be

do

not

I

might and

is very

essen-

*

q"

.

records of courts

the

and

articles

in

anything to

of

either
in

sit

with

by

and

their

choice

•

i.

to

as

aointy

Council

a

its

for

or

member

of

bring

the

opinion.

either

for

Furthermore any
United
Nations
or

Assembly,

will

under

been

CoAiinrv

which

some

would seem)

the General
then

obligation
to

assume

be

(as

it

jur-

some

lsdiction of the matter.
One

more

impairment

of

sov-

ereignty under the charter — we
have surrrendered,
by the Charter
terms
at least,
those great at°f

which

sovereignty

the

sovereignty depends: the
declare
to

war

take

measures

Security
decide

upon

existence

very

'n

of

power to

(subject to the right

.

sia>

whom

shall

we

to

or

j

.

•

i

„

have not

provide

lost

support

and

the

armies

maintain

a

by The First Boston Corp.
'

^

preferred stock is

con-

permanent member of the
Council
and
seeminelv
aeainst

vertible at

^
S^mpVhy" and"
a^sPhere o?7hPe UnUePd Nations

rateh °1sfharesf of c°™ for
eaah share °£ Preferred,

a

11?

vT

seemingly

time* inTn
verllDleat any time ujto common
against st0ck of the corporation at the

con

organization should'>han$?e and he

against

us, we

Hesnerate

1S

when

We

we

ran

vpet

to be

cease

anv

subject

|c^*i2cSer
1954 and

might be placed in

situation

Lsu?efthat

to

redemption

at

t)ef(Jre ^ay
thereafter at prices
0n

decreasing to $50

per share,

big-brother-Santa

Claus, we
The corporation does not now
much of our presently have
under
consideration
any
expressed
popularity, and the bank acquisitions. No plans have
hatred which many nations now been formulated with
respect to
shall

i0se

have

for

will

us

be

openly

ex-

pressed and acted upon.
We might

practically
principle

in

essential idea or
the United Nations
not found in the

was

ferior to the Covenant
Defects

of

UN

Charter

The Charter has these two basic
It has been too

defects:
framed

what portion of the proceeds of
the sale of the preferred stock

observ'e that there is
n0

charter that

^determine its terms.

apparently

power to laise and

The subscription warrants
expire at 3 p.m. (CST) on

,the United Nations headed

-

May

5, 1952.
will

May 20, 1952. The offering is behaving in ing
underwritten
by
a
firoun

League of Nations Covenant, and
temporary self defense
that as a document embodying a
pending action by the
constitution, the Charter is inCouncil) the power to

against

on

1S
apparently doing and Blyth & Co, Inc
assenting vote of RusThe

.

the

com?

for each 15 shares of

stock held of record

new

make war, and the power to make
peace and to

We

secure share

an(j

n.

j

But,

™

nf

protective of
ourselves these provisions
may be,
one is
hardly safe in venturing a

Security without

dispute to the atten-

a

to
subSe
shg
f„° mq i as share,
420| convertiWe nreferrert cESfc

rights

which

effectively

definite

the

tion of the Council

Northwest Bancornoration is of

fp:w

mon

How

the

The Coundl may act on
motion.

to

as

settlement.

•,

wait

and

iettwentr prerogatives t0
settlement.

get

other dispuinvite the Council's inter-

own

may

not

Bancorporation's Offer

dispute to which

parties

Boston-Blyfh

Underwrite Northwest

Council

members, "including the

are

party

need

the

determined by the vote

ability^ a°party° disputant, it ftas what
dfeouta^it JTt
as
as

in

the Security Council has assumed

or

a.

noted

questions in

we

winner.
•

be

seven

on

,

watch,

First

permanent
members," of whom we are one,
though it seems we may not vote

won't

,

God grant that it
may be so.

favored position as a
member of the Secu-

concurring votes of the

opera-

us.

helpful.

are

United

a

exceptions

to

are

expe-

If

we

the

Charter, decisions of the

of

Reports

or

thine*

that

rity Council, nor are we overlooking the provisions that, with

demonstration thereto,
not quiet our fears with

thought—they can't

these

overi0oking

permanent

a

addition^

capital for affiliated banks
.

.

which
n s may be piovided witn addi-

tonal capital or in what amounts,
eseimatters will be determined
havmg regard to the ratio of capi.
"sk ,ass,ets'

the ratio

of capital funds to deposits,
limits,
gross
other factors,

potentialities

a

careful

and

Proceeds of the sale, with other

largely

without

loan

fun(?s of the corporation,

consid-

available

to

provide

will be

additional

eration of how it

might affect us capital funds to affiliated banks
welfare, if our position an<* for other purposes.
suffers any essential international
Northwest
Bancorporation, orchange; and, next, it has the fault ganized in 1929, holds in the
agwhich has been the curse of all gregate more than 97%, in net
similar plans heretofore framed, tangible asset value, of the outThe Charter provides that the
beginning with the Grand Design standing stock in a group of 70
members must, under an
agree- of Henry IV" of France,
namely, affiliated banks, which with 21
ment, or agreements, apparently that it is
aimed and framed with branches are located in 79
cities
entered
into
with
the
Security 0ne power in mind and with a and towns in
Minnesota, Iowa,
Council, make available to the view to
exercising a definite con- Nebraska, South Dakota, North
Security Council armed forces— trol
thereover, to the point of its Dakota, Montana and Wisconsin,
sea, land, and air, as well as other
humiliation, if not extermination.
During the past nine years total
military facilities. The air

h™eY?r' to, th®
SUS ypCounJ!1 and
Committeeto
Hif53rm^?n^ame
3
possible
mament.
naJS'
55

and

our

o

^

force

to

be

must

furnished
be

readiness for

When
cides

by each member

maintained

the

upon

in

constant

use.

Our

bers

are

an(j,

Founding

nation for armed

cil

is

has

think,

upon

use

of

force,

it

course,

the

mem-

bound to provide. -

until

I

such

special

agree-

made, the Security Counno
right to call upon a

cor-

tribute leading almost poration, from $41,593,000 1o
$72,of disaster, and so 551,000, equal to
$46.88 per share
as
ordinary human foresight of common stock,
determine,
we
are
by no
'
The largest bank in thg
us

the

can

assets of the affiliated banks have
increased from
$802,407,000 to

$1,by the good sense 475,101,000; deposits from
$752,inspiration of our 094,000 to
$1,367,901,000 and capfFathers, has levied tal stock and surplus of the

framed

were

Security Council de-

In

But

adventure into world poli-

tics contrary to the principles that

the

ment

of non-compliance to this

should do, and this

commands

states has

influence.

present

We may
the
do

assume

justice,

Proves this also
Council's

the

we

will

Security Council will
earth, earthy. Human

the

Council taking account
of any failure by us to
comply
with these provisional measures.
case

,

for how

g0;

savinc

not

far

the

we

Council

quotas, which of

ures,

cure?

thing

see

self-defense,

cil

to comply

the

One

and

of amendment of the Charter, and

to

us

edge
drop.

There is another course,' and
that is, the nations have the power

calls upon the members for their

would call upon

know.

may

is

them, how
long, in what

bidding: First, the Security Coun¬
with prescribed provisional meas¬

we

What

cause,
and
against- whom.
So,
subject to temporary measures of

powers

Security Council

as

Charter the

upon

wj10

g0>

itself)

international

ourselves

have

land

gea

many

—

relations is better evidenced than

may be observed thor thn
that the

we

where

sover-

dare not

Council, with the Mili- magazines and papers, it would
tary g^aff Committee, determines see.m that Benedict Arnold is not
when an(j where the forces shall £°ln£
be lonely hereafter,

the

in

Council

der obligation to attempt a peace¬
solution
of
our
difficulties.

ful

to be
Staff

not—I

.

I am quite sure that further studypending Security further deliberation in a calm
action,
our
boys
shall atmosphere, devoid of the urge to
might be against us, in sympathy
fight and die, and the Security mete
out military
at least, and would exert
punishment,
their inCouncil, not ourselves, will send could result in our so
fluence against us in our diffiamending
them into that fight.
this Charter, that it might be

Security

m

Charter

forces

our

Russia—the rest of the world will

world.

Under

If

grips—say the United States and

equalled by any other great nation
in

be

and

peaceful adjustment

dwindling

the

over

.

°f ^r~ Securi'ty
dis-

of achieve¬

record

international

,

(which would include those

the

on

the most peace-

as

in

a

the

diffi¬

Se¬

and

a

make it absolutely sure that
termined, mediately or immedi- none
but
patriotic
men
and
ately, by the Security Council.
are ln Places of responsiThus we raise and equip our
y<
we miSht believe the

near,

have

look

—

and the terms thereof will be de-

so

almost probability

most

world

tions

own

do

ei§nty. One dare

'

Corn-

Council.

were
with a small
power,
shall not properly estimate our
position if we do not visualize the

Another impairment:
We have
lost the sovereign power to ad¬
our

the

justice

^^untyS2U2

Obviously, the end of hostilities

be

a

of Jhe

J? permanent members of the

our

we

of

just

great fundamental
matters:
the
right to make treaties; to manage

application

t°?ks to the Military Staff
mittee. This Committee is
raade up of the Chiefs of

pute

must not be

treaty-making

our

P°sal

own

,.

m
differences.

"ence

in

that

asswme

x

that the

com¬

to

us

Council will have

•

ereignty

settlement

Western

the

and Russia that
political explosion
leading to war, and remembering
Sarajevo, one knows how small
a cap can set off a giant stick of
dynamite. This treaty impairs our
sovereignty in the matter of all
North Atlantic problems, because
they cease to be adjustable ac¬
cording to our interests and de¬
sires, if the other parties do not
as

will

powers.

powers

Now

It

touchable

some

agree.

some

our

of the highest

analysis, the agency to direct
foreign relations.

pensating advantage for ourselves.
We
have not yet plumbed the
depth of this impairment of sov¬

European

of

manage
one

Council,
not
the
State
Department, becomes, in the last

when

Santa

"plans for the

treaty—it

curity

Claus

commerce

the

consider appropriate."

can

cause

shall

we

greatly hampered in the de¬
velopment of our own interna¬

between

could

provisions

harmony with the
apparently
fall.

easily perceive many,
many trivial, more or less, matters
that;-hiight produce a situation
.

we

the

attributes of sovereignty. The Se-

By
tant to
Security Council,
if it "deems necessary," could call vention.

impairment of
sovereignty involved in the sec¬
ond

in

of the right to
foreign affairs,

be

the

North Atlantic Pact

,

treaties

The

use

This

Normally, they

Concerning

'

concern

All

in mind the complicated
provisions of the Charter touching
international trusteeship systems,

belligerency,

a

end of hostilities.

•

•

period of

Nation's

treaty

out of

are

ment

With the impairment

wish.

ratifi¬

to

Limits

stipulated in the agree-

as

ment.

we

be¬

reasonably accurate.

Existing

we

its

be

too

Having

on

The

on

be

may

that

Conference

Foreign Relations
Committee began
its considera¬
tion on July 9; it began formal
hearings on July 11, and closed
them

.nor

make must conform to the
provi¬
sions of the United Nations Char¬

it.

it

2.

to

Charter

ter.

submitted to the

was

July

cannot

one

ground,

But the

we

(April
25-June
26,
Signed on June 26, 1945,

1945).

his

put

many

lost the right to make the treaties

almost exactly two months in

was

to

We may observe that, under the
United Nations Charter, we have

considera¬

Francisco

dared

sane-

Sovereignty

is

The

it

did

drafters

are

us,

(of
type) had practically no
explanation made of it to the peo¬

they

that

of

our¬

same

and

these

sure

UN

The United Nations Charter

ple,

all

lieved

selves about its terms.

this

places

many

the

have

to

not

so

conclusions reached here

was

trouble

now

are

where

is, economic

only

short

.

the

Since it

operative

not.

be

certain of his conclusions.

League of

this

lines

measures

our
foreign affairs; and to declare
of armed force shall be made
by war (subject to our temporary
against us, including the Security Council with the asright of self-defense), to choose
severance of diplomatic relations, sistance
of
the
Military Staff our enemy, to direct and corei*
If these measures
failed, then it Committee." Thus the direction of mand our
armies, and to make
might use force against us—air, the military operations are under such
terms of peace as we
may
land, or sea forces, or all.
the Security Council, which for desire, or be forced to
accept.
Thus
our
sovereignty is seri- "the strategic direction of any
i think I have
shown you that
ously impaired by depriving us armed forces placed at the dis-

con¬

clarify,

down their true course—so
of

rather fully explained to the peo¬
never

the

too

(one

than

Council would

what

provided

would

the

to

Security
on

force—that

tions

ex¬

of

as

language that

rather

seem

about them.

Nations

so

some

indistinct

thought, there

significance

The Covenant of the

are

and

numerous

often traced in

the

understand

so

only with difficulty, the
descriptions of the lines are so

voring.

able to

of

the various Charter provi¬

are

the

decide

traceable

a

wise—to

call

place,

communication

this kind of treaty, and it almost
war

first

will call the

33

means

a

brink

yet to the end of the road.

As pointed out, we face the balof
our
journey with our

ance

forces, and then sovereignty

impaired

in

Northwestern
..

National

oC

Min_

,

neapolis, has deposits of around

thr£e $393,737,000,

>-

34

The Commercial and Financial Chronicle

(1942)

Continued from page

tities of

production,

per

ests.

three

in

largely

(a) by increased world cop¬

ways:

has been men¬

as

tioned; (b) by a narrowing of the

particularly

differentials,

price

between

aluminum;

and

copper

and (c) b,y a falling off of ex¬
traordinary demands.
Stabilizing
influences in the domestic market

of the mil¬

the stretching out

are:

itary program; the stockpile defi¬
ciency; and the accumulating
backlog arising from the current

diversion from normal ci¬

heavy

channels.

vilian

to

panies (Kennecott, Anaconda, and
Phelps Dodge) control the greater
part of the country's known do¬
mestic reserves, of refined out¬
put, and a sizable percentage of
known foreign reserves.
A sub¬
stantial part of their output goes

^sjto fabricating affiliates, and the
three

same

companies

esti¬

are

mated to control 65% of the coun¬

try's brass and wire mill facilities.
At this

point, the analyst might
look any further in
in this

and expects
start potash operations by the

to

end of 1952.

Marketwise,

just mentioned, consid¬

eration must also be
/

trends,

duction
'location

and

given to prodiscoveries,

new

of

development

re¬

type of mining, quality of
ore, relative activity as a smelter,
other production, investments, and
serves,

mid-1949

the

relative market worth of

equity in question.

To

illustrate,

so

far

alone

production

copper

as

is

concerned

there have been major changes in
the domestic and foreign produc¬
tion figures

nies.

dollar

sales

during
or

of individual

compa¬

These tend to be lost in the

in

period

a

the

particularly

of rising

prices

of companies with
activities.
In comparison

varied

with

figures,

case

1937

the 1950 domestic

cop¬

production figures of Phelps
Dodge showed a gain of nearly
56%; Kennecott, 40%; and Ana¬

per

conda,

decrease of 64%. On a
domestic
and
foreign
'production basis, - Kennecott
a
combined

showed

gain of 26%

a

and Anaconda

a

1937

over

decrease of 27%,

and

out-performing the general
in the fourth quarter of

even

market

Individual gains over
two-and-a-half-year period

last

year.

ranged from 75% to nearly
the

for

issues,

speculative

more

500%

while the shares of the three'lead¬

issues
up
to
50%,
general market is still
its highs.
This setback

speculative
the
to

reflects

of

number

a

influences

offen¬
negotia¬
tions, the stretching out of our
defense program, and the possi¬
bility of some reduction of earn¬
ings from higher costs. The fact
that revenues and profits of cop¬

such

per
rous

the Moscow

as

the

sive,

Korean

contributed

^as, undoubtedly
profit-

investor

to

Like many market move¬

ments, they have a tendency to go

and in this instance the
extent of the decline does not ap¬
to excess,

of

reported

be

possibly

excepting
the companies

1952,

for

of

some

production
markets out¬
side the United States. Any fur¬
with
and

heavy

foreign'

dependent

on

ther setbeck in the market

prices

of domestic copper shares,

in our

opinion, would provide an oppor¬
tunity to acquire representation
in
strongly ♦ situated companies
with good
earning power, high
yields,

and

large

stances

67%;

Nickel

addition

to

ranking second
supplier is the

as

a

or

no

debt-

United

States

relies

three

lead:

On the other hand, Anaconda in

The

Lead:
on

29%.

down

was

International

and

little

principal sources for its
production from domestic

copper

ter "known

producer

of

world's fifth
pany.
per

largest

copper

producer,

also

extracts

stantial quantities of
zinc
a

and,

sub¬

molybdenite,

inj terms of dollar sales,
siziable

fairly

and

com¬

Kennecott, the leading cop¬

It

silver.

of

amount

owns

gold

two-thirds of

Quebec Iron & Titanium Corpora¬

tion, which last

began

year

pro¬

duction of iron and titanium slag,
the latter to be used initially in the

on

ery

in terms of volume has

dioxide)

become the most

in

the

-production of titanium metal. The
largest

smelter

non-ferrous

American

refiner

and

and

metals

Smelting

&

of

scrap,

Refining

An average of 28% of net
supply as shown for
1946-1950 is probably a better
measurement of relative foreign

year.

dpa's

dependency.
On the other hand,

except for brief periods,
has been fully adequate to meet
domestic needs. This is shown in
sources,

the

which

table

following

per,

subjected to severe dis-

was

locations

the

from

government

^

buying program and imposition of
controls established by the
of

«£®fen*Se*' fr°'du1c]lon Act

1950. While total world supply

believed

was

balance with ac-

in

the effect

tual world consumption,

governmental
policies
and
speculative
foreign
buying resuited in world lead prices reachof

of 35c

high

a

pound

per

of

Secondary recov¬

imports.

lead

in

the

important

United

now

source

States,

ex¬

ceeding domestic mine production
by a substantial figure. Whereas
in

the

earlier

period the

selling price. The result
artificial

markhts,

foreign

as

Production
willing

markets

those

to

flowed

Averages

1926-30

Consumption

to-pay the higher premiums.
Lead was the earliest of
metals to

non-ferrous
weakness
kets.

t

e

mar-

reached the U,
reached the U

is

have

and

weakness

pound. As
lead

in

and ; in late
prices
began
to

foreign

show

stocks

markets

European
Fall

lead

excess

S
b

turn *eign concentrates to United States
out- «smelters, it has been estimated
maj0r conflict, no real "that domestic slab zinc production
stringencies seem likely to de- in 1952 will surpass 1,000,000 tons
veiop for this metal in the near .as -against: an
all-time peak
future.
'
-.reached in 1943 of 990,000 tons;
-There
are
considerably fewer -The most important outlet for
lead
companies .with
securities .slab zinc is its use in galvanizing,
outstanding than in the case of the -It is "by far the best protective
COpper industry. Even some of'the
metallic coating for the rust'so-called lead companies can not ..proofing of iron and steel.", Zinc
soiely classified as lead pro- alloy
die casting, ,the
second
out

price ot iyc per
price of 19c per

3(H)00

tons

from

RritiS

stoSfwiSid^
pureLts fnHm^fed In
im-

stimulus for increased

Ports of foreign metal is the current
elimination
ot
the
tariff
18c

pound. Further inthe easing in the lead

per

the

ea

the

ot

use

lead

tetraethyl

ot

production

m^'
also has

for

two years
gross
earnings

the

past

St
year

The

Zinc;

supply-demand story

cf zinc is similar in many respects

^ 0ther-heavier

tjiat

tQ

metals.

jperrous
the

American

For

many ; years

zinc

traordinary
and

industry

conditions,

exports were

at

a

Up

was

its

which

satisfactory

United

tion

in

1951.

:

,

The

lowing
conclusions
might
be
reached
regarding, the heavier
non-ferrous metals:i
,

imports!, ' (a)

the

minimum,-feal, 'but

shortages

1951

also

were

were-

exaggerated

that

po-

.demand

occasional

since

Periods

,

were

upset

purchase

by

govern-

and

programs

the present distortions are

(b)

when a favorable zinc balance has rapidly being corrected -as a re*
^ restored.. Subsequent de-suit ot over, accumulation of
pendence on imports has been less .st0cks by foreign countries and

Pr°blems °f «<*»■?*«

atDftrS

panding level of consumption for
the

with

As

metal

the

other

a

jn

nY

liJ ioXs forAmerfcan

table has been inserted

metals,

text

enmn

kets is also freeing domestic scrap
showing changes in which had been withheld in hopes
domestic sources of supply averof high prices;
• * 4
.*
aged by five-year periods and in
(d) the world supply picturO
^.hjs insfance based on the produc,

Hon

of

zinc"

as

metal

between

tionships

.

for copper,

only.

The restoration of former reladomestic

and

lead and zinc is funda¬
sufficient to take care

of United States domestic
m„mc
ments

anrt,
and

even

ll

foreign markets should largely, if
not

entirely,

require¬

ar.nnrmai
abnormal

rp
re-

h^p

hv

should be met b?

cure

long range outlook for zinc is

.

dis--

couraging,

i^Gcumuteted Tor! iong^term hoidr"

or

.

r

handling prob-t

PRODUCTION

OF

ZINC AS

lems

METAL

connected

elements which
From

Net

*Net

Available

Mines

Production

Imports

Supply

286,000

967,000

1926-30

Annual

Domestic

.Foreign

253,000

63,000

.732,000

1936-40

1941-45

1,075,000

444,000

351,000

356,000

1,151,000

1941-45

1946-50

1,092,000
1,182,000

390,000

460,000

331,000

1,181,000

1946-50

390,000

498,000

248,000

1,136,000

1951

Ore

Total

-^Ore

Primary

587,000

"512,000"

11;000
23,000

584,000

274,000

858,000

576,000
*

—

Total

From

Averages

636,000

45,000

,

that ore reserves in* Y
:r..
'
this country or in the world will "
,
;
production of ore, scrap recovery; be dangerously diminished or exw f.f
^
ij
and imports—is to provide an an- hausted in the foreseeable future. )hYp„
possibuiUes an the^field
nual
supply
of
1,342,000
short At a meeting of the Institute of fn
a^t least seem Lkely to
tons by 1955, and thus far Federal Metals held in London on Oct. 17, '®e
by a number of Lactors;
These include the
government's

expansion
goal for lead—including-domestic

Secondary

"

Slab Zine

!

52,000
58,000
46,000

-630,000
580,000
910,000""
853f0QO>
932,000

.

extra cap-*

of

Exports

tenance of elose controls. The ac-

29,000
18,000
«58,000 * • 70,000

tively licensed companies, in the
field.are becoming-special equipmerit designers and manufacturers

111,000
88,000

serving a highly technical market.^
These companies also have a com?,

■*

^

21,000

-

58,000
.27,000

mon

"-Estimated.

radioactive

means

skilled technicians, and-the main-,

•

imports.

Distilled -Production

-43,000

535,000 ~ 45,000

258,000. -795,000m
*605,000 *28:fc000 4 886,000
537,000

Secondary

with

ital costs, the employment

Total

-




-

Summary: In summary, the fol-r

,was not; until World in that normal laws of supply and
our
net-export

?£ fa#
War jj

particular

own

no

.

.

.

mentally

substitute has been found to date,

From Domestic

^Imports less exports.

considerable ground during

the firgt fpur months and should
"begin to attract investor atten^onY-'Y'
;
Y

non-

sejf_gufttcjent and- except for ex-

gaS°

Lead
uses

over

removal

recent

the

was

controls

in

largest market for ; zinc, is find-

ing increasing acceptance and application. The largest mine pro^ag shown more
ducer of zinc is Consolidated Minfrom zinc than from lead, and it jng and Smelting Company, witb
inciucjes
195,000 shares of New New Jersey Zinc second, followed
jersey
2inc
among
its invest- ;by Anaconda Copper Mining and
ments
Consolidated
Mining
& St. Joseph Lead.. Other companies
Smelting Company, reputedly the such as American Metal, Amerilargest and lowest cost lead-zinc'.can Smelting and Refining, Eagle
producer }n the world, is also the "Picher and American Zinc are acleading silyer miner> and in addi_ ;tive in the field with operations
tion
pr0(juces
gold
and
other concentrated largely on smelting,
metais
and
ranks
as
amajor .New Jersey Zinc is also a partner
producer
in
Canada, pivitb Kennecott in'the production
Marketwise
lead company com- of iron and-titanium slag through
^h docks'have also been sub-. 'the Quebec Iron & Titanium Cor.
,jected
to
heavy
profit talcing
poration previously. mentioned,
which
in
individual ^instances ^Marketwise,1 the common stocks
overdone despite the orobof zinc companies also have given
in

2

of

-

company, the second largest

procjucer

now

™ States
United

of

gt. Joseph

ducerg^ For exampie>
Lead

aftermath, foreign sition could be said to have been lmental
beginning to appear
really terminated and there have

now

picture

Again

surplus.

ail

nm-chase

added

a

0f

been

ttel'

be

to

sjde

well

deficiency- may

pated

.

,

show price

international

in

in

416,000

1951

,

Heavy accumulation naa re-

suited

878,000
661,000

1936-40

an

was

domestic

in

shortage

generation in the past two years -United States for the ten-year peapparently has been greater than ^riod 1941-1950 averaged 820,000
the 1955 estimate, so the antici- tons. With increased flow of for-

(In Short Tons)

Production
1

as

against a 19c per pound domestic

(In Short Tons)
Estimated

com-

pares

PRODUCTION AND CONSUMPTION OF LEAD

Annual

net

the

supply of lead from all

available

maining to be explored by mod-

100,000 tons greater than -ern methods.
1955 projection and scrap-Consumption of slab zinc in the

nearly

.

and

potentially

additional
makes a total
1,267,000 tons, which

the present ^aiEements
discoveries within the country as
The
principal outlet is storage shortage of slab zinc. The total Pb0' .•
an
offset to long-term depletion.
•batteries which in 1951 accounted
worf(j zinc supply is believed ,ap- >'■
the common shares of many
On a tonnage basis domestic mine
for
approximately 32% of, total proximately in balance with total of the leading non-ferrous com-,
production of lead postwar aver¬
domestic consumption of 1,182,000 world
consumption and the in- Panies in losing from 30 to 60%
aged but 61% of that reported
tons.
Other
major markets for <fustry feels that there is no need ,of tbeir maximum gain from 1949
over the 1926-1930 period.
In the
lead .are pigments,
cable cover- to fear any shortage of zinc in a lows would appear to have, in a
face of nearly a 35% interim gain
ings,, and tetraethyl lead. These fj-gg market responsive to the laws number of instances,jexcessivelj
in estimated consumption, the in¬
four uses combined accounted for
0f SUpPiy and demand.
Neither discounted the 1952 earnings out--:
dustry has had to place increased
about 65% of total lead consumpdoes fbe industry believe that the
l°°k and can again be selectively
reliance
on
secondary recovery

manufacture of pigment (titanium

and

new

ports to account for an

available

dication ot

only important mands of World War II and the
nickel than as the lack of any important new lead

accelerated rate of production,
Improved • operating
techniques
and practices in mining, milling
-and smelting are providing greater
yields of contained metals in the
ores and the industry points out

including

States last However, net imports in 1950 were

eign lead to the United

and

the

as

reserves between this period have
increased substantially despite an

417,000

total

of

above

sec¬

tons of lead a
mine output,

scrap production is expected to
be around 430,000 tons, and im-

to

year

according to the Defense Production Administration is 75,000 tons there are still substantial minerals
short
of
the
anticipated
need, ized areas on this continent re-

mines; secondary production (new

old scrap); and net imports
(imports less exports). Over the
ond largest producer of silver in
years major shifts have occurred
the world, and is now venturing
in
the
relative
contribution
of
into the production of aluminum these
three sources, a process
ingot. International Nickel is bet¬ which was accelerated by the de¬

world

million metric tons in 1940 to 70
U. S. mine production is expected "million tons in 1948. Measured

supply

excess

even

working capital, and in many in¬

assistance has been given for *1951, world reserves were estiabout 47,000 tons of additional mated to have increased from 43
lead production annually. By 1955,

have gained from
4 to 22%. The latter figure is low
due to the decreased flow of forand net imports

.

consistent with the volume
business and profits likely to

pear

Thursday, May 8, 1952

tons. This

producers and other non-fer¬
ing
companies
ordinarily
are

taking".

.

420,000

peace

truce

.

(new and old scrap) has increased from roughly 30 to 44%
ery

quarter of the preceding two-and- vails in the domestic Lead picture.
a-half-year gain and the more
This industry in 19.51, like C°P~

Mufulira

ores),

34%, secondary recov-

from 66 to

estimated consumption with
net available supply on the basis
age increase of 126%.
Thus far of five-year averages. Part of the
in 1952, the reverse has been true.
excess
of supply over consumpCopper stocks, along with other tion undoubtedly can be traced in
non-ferrous metal commons have
part to duplication in the figures
been subject to substantial real¬
for secondary
recovery
izing. The leading equities have main it illustrates thebut m the
over-all
lost from slightly more than onebalance which fundamentally pre-

Of the

leading foreign producers,
was
up 81%; Katanga,
17%; Noranda (including custom

'20s has decreased

late

the

since

production

mine

domestic

ing companies recorded an aver¬

highly ^cyclical

^

of

end

the

through

1951, moving steadily upward

the usual statistical factors to de¬
termine

equities

satisfactorily as

as

could be desired from the lows of

close

the factors

copper

behaved

have

while

Besides

ore,

vestment

well ask why

It is not that easy.

Ltd.,

Co.,

African copper mines,

selecting representation
field.

To sum up the relative
contributions to net available sup-

custom smelter and re¬
has substantial in¬
holdings, particularly in

a

Of

finer

the

the components of
the industry, we find three com¬
Turning

Metal

American

process

checking

The

accomplished

be

can

unless

markets

copper

checked.

mere

a

sharply.

inter¬ ply,

has world-wide

Company,

to

imports have „r i s e n

and

trickle

Outlook for Non-ferrous Metals

dwindled

has

this

"tional

exported susbtantial quanlead, over the past decade

States

6

.

characteristic in that they are'

richly

endowed

with

scientific

Number 5114

Volume 175

.

.

.

The Commercial and Financial

Chronicle

35

(1943)
talent, but

short of managerial
skill. For th£se reasons, until one
or two companies
begin to emerge
clearly as- profitable enterprises,

struction of the

investment

dollars

field

are

participation

in

this

probably need not be hurried

at/Che

same

The

aluminum,

as some

champions. While in
other

of you

am one of its most ardent
common

with

industries it is not immune

to

depression,, its aggressive de¬
velopment of new -markets, the
overall appeal of the
metal, and
the firm " backlog of government
purchase contracts for five years'
production of the new facilities
provide

strong
cushionary, and
recuperative power. Through rapid
,

amortization

permitted

purposes

80

on

to

cost of construction

States
cost

and

through

in

tax

the

on

in the United

through

allowances

for

85%

extra

capital

Canada,, and

-earnings,"

retained

the

Inexcusably Bad Debt Management
And

thatr over

fact

worth

of

one

billion

facilities

-

will/

likened

It

case.

example,

moronic

next

several

1951

Aluminium

reported
share

mon

prior
$6.74

of

thereto
per

Limited

earnings

per

in

to

com¬

$7.03,
the

deducting
equivalent of

common

share

in

de¬

on

merely printing all the money
Treasury deficits were placed in staggering
in the
portfolios of the commercial banks and

needed.
amounts

the Reserve banks.

even

with

savings bonds was
holder, .which was about

common

stocks of the aluminum companies

the

to

J

from first page* f J;

;

money

with

war

potential
/

an

inflationary potential

this

converted

was

Much, but

country.
into

real

before

never

not

inflation

all, of that

in

the

years

jtbat haye followed. Today an almost unbelievable
proporjtion of the staggering national debt is in short-term form

repeatedly suf->
industry where one man, or at.. AV
Treasury
most a "little
apparently intend to do anything at all. If indeed a $10
group of wilful men," have the industry by /.
the throat.; The; public has
again been sharply and sadly/- ./billion cash deficit is in the offing, we may expect to pay
reminded within the
through the nose unless the Treasury
past few weeks that .in this respect,)
very quickly comes
to its senses.
the. steel industry is but little better off. •
'
''
1
'
■;
-K;V..'>"'■ fV'
Jr&vT Not- Interested
.Continued from
page 14
anything to say
evince any inclination

question
great deal about
.i this basic evil from
any other influential political quarter./
The most important question raised in the steel
industry,
or
presented by the steel industry,- is, in our judgment,
,

the dictatorial powers

President,,'Thatv is
existence

as

a

free

a

fundamental

people.

-

•

.

.

of

our

very
•

But this labor

/

■

monopoly, which has entered politics
even as the older trust leaders were
alleged to do, is a
matter which we
canjbontinue to neglect at our own very
grave risk^T^
was
brought into existence
not only without*
governmental objection or opposition,
but with the
sponsorship of the Government of the United
States which again and again and
again expressed the
wish that it develop to a
point even further than has now
to

come

NRA somewhat the

days was part and parcel of
prevailing. Through the ill-fated

same

sort of

concept

was

to be applied

to

industry. The farmers, of course, already had their
organizations, and were exempt from the antitrust laws.
A small group of politicians were to run the
country, and
it

was

taken for

granted that they could do a much better
job than private enterprise had done. Of course, the whole
matter had its political overtones from the
very first. It
involved combining the labor vote with the farm vote to
keep the Roosevelt regime in power indefinitely.
This latter

political aspect of the matter is probably
dominant today. Of course, the
support of both the unions
.

and the farmers has to be

bought and paid for. And it is.
As to the remainder of the
community — well it is of
secondary importance, so it is thought, in view of the
fact that the organized sections
representing the unions
and the farmers seem to hold the balance of
power. Here
is a situation which the
people themselves, and only the
people themselves, can do much about—or will do much
about.
The professional politicians in
Washington and
elsewhere

are

too

much

engrossed, particularly in this
election year, in garnering in,or
keeping the votes to give
it any serious thought. The President himself has evi¬
dently knuckled under, and we have heard of no one
around him

giving evidence of a recognition of this basic
of any willingness to face it. While here and
there in both major parties, there may be individuals of
problem

some

or

influence

who

ready to do battle in this area,
they do not seem to have many followers. We can in the
nature of the case escape with a whole hide from the
steel or any of the other
broadly similiar situations aris¬
ing from time to |ime only if we go to work seriously
and

effectively

upon

are

this basic evil.




market moved

fractionally in
directions; the- public

both

didn't

move

in any.

*

*

if

The lack of enthusiasm for

participation in the shenannigans of a market that is sub¬
ject to so many influences, is
understandable.

Basically

your average trader or inves¬
tor doesn't like a

change;, at
changes.
Such things confuse and be¬
least

not

sudden

what is almost

bad—a

as

uncertainties.

as

It

doesn't

buy
them, particularly when you
can
get a lot of supporting
statements

to

*

A Defense oi the

justify

longer

no

contracts.

Of 6-3

companies oper¬ adopting
ating basic steel plants, including however,
companies involved

in

the

Steel

27 have agreed to some form
of
union
shop.
Several of the
largest steel companies involved
case,

in

the

dispute

agreements
their

have

union

shop

covering employees in

subsidiaries

which

railroads, coal mines, shipyards
shipping.
Several of the rail¬

or

road

contracts

are

of

recent

very

origin.

your

Board

did not

recommend

particular type of union shop

any

but

left

the

form

or

type and conditions to be worked
out

the

by

various

parties.

forms

There
union

of

union"

his job by

is

of loss of union

recital

evident

the

of

the Steel

far

however
the

opinions

Board's

or

brief

union

in

shop

believe

presents

agreements, including those under
which

differ

on

that

the

this

issues

statement

involved

in

spective.

non-union

are

exempt,

who

are

and

employees

given
an
opportunity to "withdraw" or
"escape" from the union if they
are

are

satisfied with their union

not

membership.
It

be

noted

that- the

steel

"maintenance of

ployees

who

join

the

union

required to maintain their
bership for the duration

the

shares

of

directive

Board during World
They constituted a much

than

orders

of

innovation

the

Board

has

made

a

I

have

referred

to

the

opinion.

the

union

at

shop

that

recom¬

recent

of

offering of

Kraus

199,900

Automatic

Ma¬

Corp. Common stock has
been completed, it was announced
on

share.

bership
and

job

to

required
maintain

under

permitted
if

he

lost

all
a

union

a

his

mem¬

circumstances

forfeiture of his

his

membership in

the union for any reason whatso¬
ever.

The

even

circumstances, the

Board

union

a

shop.
did

some

Labor

not

recommended

shop

One of the

a

closed

reasons

to

under

recommend

tain

govern

which

admission

that

the

at

$1.50

the

can

union.

ob¬
In

the

shoulder.

steel

companies

boost

and

their

Inc.,
subsidiary, who

Will

use the funds for
equipment
working capital.
Giving effect to this financing,

firm

will

have

out¬

standing 559,900 shares out of
authorized

issue

of

shares,

par

'

an

15 cents each.

Cortlandt

S.

*

Eliot,

asso¬

*

That's
week.

for

this

gems.

article

views
do

not

coincide

expressed in this
necessarily at any
with those of the

Chronicle.

They are presented as
of the author only.]

those

Chicago Analysts to Hear
CHICAGO,

111.—Duncan

Mer-

riwether, Executive Vice-President,
and F. Otto Hass, VicePresident of Rohm & Hass Co.,
will

ing

address

of

the

the

at

Pirie Scott & Co.

Club

the

luncheon

Investment

the age of 55 after

brief illness.

*

all

Look to next week for

[The
time

*

about

ciated with Hayden, Stone & Co.,
York City, passed away, at

New

a

*

buy them when things look
pink. Neither does it
take any guts to get out when
everybody else is doing so and
things look lousy anyway.

2,000,000

Van Cortlandt Eliot
Van

will get a
profits will

rosy

more

Kraus

But

to

per

and

new

conditions

applicants
to

priced

why it

or

members be compelled to join was
that at that time there were no

rules

of

south

whatever is done I think the

net

wholly-owned

the

Under
War

was

proceeds will be used
for advances to Kraus
Design,
a

For all I

Supreme Court
may come out and pat the
President on the shoulder, or
it may use a boot and aim it
at a portion of the anatomy

been

arranged through
Israel & Co., New York
City. The

case.

*

trouble.

more

May 6. The financing of this

issue has

stock

They

*

opinion that the
steels are a much better buy
than the screaming headlines
indicate.
Of
course
they'll
my

It doesn't take any courage

chines

mended by the Board in the Steel
member

is

continue.

Machines Stock Sold

mem¬

Labor

time

It

Kraus Automatic
The

drastic

have the faintest idea of what
to do about it.

*

are

War

more

per¬

opinion, the Wage Sta¬

record to support this

em¬

through
War II.

proper

contribution to the sta¬
bilization of wages and labor rela¬
tions
in
this
critical
defense

These clauses originated

contract.

problem maybe your psy¬
can
help with. I don't

a

notable

mem¬

bership clause" under which

in.

chiatrist

contracts

expired
a

my

in

case

bilization

period.

should

recently
contained

Steel

In

employees

new

required to join

comes

know the U. S.

the

old

the time that fear

What you can do to lick it is

clearly within
jurisdiction and au¬ have
was

thority.
I

the

rec¬

unreasonable,

may

with

square

you've read, heard
and been told; when the stock
market starts to slide; that's

*

the

majority

the

on

this

that

the

from

merits, and

the

from

of

case

was

reason other

of his dues

facts

ommendation

protection

against loss of

any

than non-payment
initiation fees.
It

Act,
required

has

and

reason

membership for

are

shop

*

statements

Taft-Hartley

Congress

"open

an

issue

The

the

of a union member

operate

*

But when the facts
you see

Wage Stabilization Boaid

agreement,

pass.

The idea in the earlier
the totalitarianism then

Up to the time this went
print it was a stand-off; the

to

purchase.

a

claimed by the

matter
.

it,

take any great
courage to

have

about this state of affairs?. Does it
whatever to do
anything about it? To ask such
is to answer .it.. Neither do we hear a

concerns

in

vaca¬

tion.

or

r

"that which

theoretically interested
seemingly having a

pathological fear of losses—

»

•

=

;. tions of it

many points and places today.; We have
fered from it in the coal

Administration

By WALTER WHYTE

The stock market and those

redeemable at the will of the
holder—and vast propor- !
wilder him. There's
nothing
are still in the hands of the banks.
that's so conducive to losses,
-Yet about neither of these evils does the

or

the

Says—
=

That part of the deficits financed
made redeemable at will of the

the same
thing as adding these
supply. Other bond issues were
7."Pegged" at artificially high prices. All in all we ended
issues

Whyte

are

As could be devised short of

income, and

earnings,

Walter

change

.

general program worked out for
obtaining the
funds required to
prosecute a total war was about as bad

dreamed of in

does

Markets

came

The

understanding the current flat¬
tening effect»of these capital cost
allowances

or a

in ideas about how to deal
with deficits.

preciation charges, which in turn
was stepped
up by $3.25 per share
from the year previous. For the
long term investor willing to fore¬
go current additional

slave to the powers that be. When war
in total form at the end of
1941, there was no

us

the

But

Tomorrow's

be

to

is

the value of aluminum shares. For

the

over

should not be ..lost sight of
by investors, but should be given
full
consideration in
appraising

years

,

Continued

which in seriousness is

—r

steel

Since the

North
American producers provide
outstanding attraction: as
will be able to extinquish the adf long term commitments at cur¬
ditional bebt incurred in the con¬ rent levels/".
1
!

•

the

unto

scarcely necessary to
expatiate at length in this place upon the sins of the
past.
early days of the New Deal it has been the set¬
tled policy to finance all the
deficits—and they have been
legion — through monetary and credit intrigue and
by
dealing with the investment public as if it were either

effect, have been provided
through depreciation and retained

four

-

to the second situation—the matter
of Treas-

now

debt management

ury

in

earnings
As to

know, I

facilities and

new

timejladd substantially

to working capital.

of

meet¬

Analvsts 1

Chicago today (May 8)
Georgian Room of Carson

36

The Commercial and Financial Chronicle

(1944)

statistical tabulations cover production and other figures for the

The following

Indications of Current
week

Business Activity

Distillate fuel oil (bbls.) at
Residual fuel oil (bbls.) at.—:

—

.

—

„

S. construction

^ay

construction

?™y

Private

municipal

and

Federal

6,590,000

6,236,000

21,837,000
2,750,000

19,876,000
2,698,000

2,517,000
9,236,000

2,720,000
9,123.000

9,712,000

8,061,000

9,034,000

8,958,000

8,846,000

8,747,000

155,367,000
18,546,000

157,392,000

158,695,000

17.321.000

145,987,000
17,021,000

51,274,000
38,526,000

49.358,000

16,179,000
48,445,000

36,828,000

37,049,000

779.402

735,097

725,423

824,662

652,363

anthracite

coke

616,434

672,762

702,581

(in

$270,573,000
166,513,000

135,925,000

191,279,000
154,375,000

,

1
1

&

Ago

BRADSTREET,

March—

of

Year

Month

(NEW) IN THE

7,902

*7,133

7,643

$1,180,340

$1,042,851

$1,053,434

585,909

—

130,664,000

101,826,000

70,210,000

65,716,000

54,230,000

52,549.000

steel

INDUSTRIAL)

AND

—

DUN

9,865,000

549,395

(E.

983,000

683,000

697,000

♦106,000

132,400

105

97

101

§6,985,000

♦7,134,844

7,218,831

(St.

York) at
Louis) at—

Zinc (East St. Louis)

at—

168

185

1

4.131c

4.131c

4.131c

$52.72

$52.72

$52.72

$42.00

$42.00

$42.00

$43.00

30
30
30
30

24.200c

24.200c

24.200c

24.200c

27.425c

27.425c

24.425c

121.500c

121.500c

121.500c

13,245

7,047

*7,158

7,200

Automobile

3,891

3,927

3,935

Other

3,156

♦3,231

3,265

18.000c

19.000c

19.000c

17.000c

17.800c

18.800c

18.800c

GOVERNORS

OF THE

credit

millions

in

FEDERAL

Estimated

—

RE¬

short-term

Total

of* March 31:

as

credit

consumer

Instalment

credit

credit

—'

——

credit

6,102

6,026

6,046

6,408

♦6,532

6,465

3,855

credit

19.500c

19.500c

98.98

98.70

97.17

*3,967

3,927

1,449

credit

1,104

110.15

109.97

CONSUMER

INDEX

PRICE

FAMILIES

IN

1935-39=100—Adjusted
AH

Industrials Group

1,437

1,101

CITIES—

March

of

as

15:
188.0

6

114.08

6

113.12

113.12

6

109.60

109.60

184.5

227.5

226.2
187.5

271.9

215.7

217.0

204.6

161.3

166.5

195.2

232.1

223.5

217.1

347.1

products

190.9

347.1

342.6

145.6

bakery

270.8

150.9

1773

184.3

185.1

186.0.

203.5

and

191.2

268.8

Cereals

115.63

187.9

227.6

foods

All

112.75
109.06

products

Dairy

110.70

:

Fruits

and

vegetables

—

204.3

203.1

"

104.14

,

104.14

104.14

106.04

107.62

S

107.44

106.92

108.16

109.60

109.60

109.42

111.44

113.89

113.50

:

113.70

Beverages

2.59

2.57

——

—

oils

and

Fats

<

115.24

and

Sugar
—May

n

Eggs

114.27

DAILY AVERAGES:

Bonds

*1,117

MODERATE

FOR

LARGE

items

111.62

114.46

May

r.,—

♦1,443

97.62

110.34
114.66

May 6
—-May. 6
May 6

;
—

accounts

Single payment loans

17.500c

6

-

Group—

Charge

16.800c

19.500c

May

YIELD

494,936

264,860
'

142.000c

27.425c.

6

A

(J. s. Government

$19,711

*13,184

—

$52.6$

—May

Aa

BOND

*$19,716

13,149

OF

Service

May

Group

$19,557

—

4.131c

May

Aaa

«3aa

230,075

——

CONSUMER CREDIT OUTSTANDING—BOARD

163

May

corporate

Public .Utilities

128,233

—

Meats

O. S. Government Bonds

Railroad

187,140

—

Noninstalment

DAILY AVERAGES:

PRICES

BOND

365,223

—

municipal

Federal

6,559,700

150

Apr.
Apr.
Apr.
Apr.

at

(New

Lead

558,493

493,456

407,291

Loan

Apr. 30
-Apr. 30

York)

(New

i

594,431

and

INCOME

refinery at
refinery at

tin

construction

State

101

Apr. 29
Apr. 29
Apr. 29

Domestic

Lead

.

construction

Public

139,700

Electrolytic copperExport

construction—

S.

725,000

112.800

M. J. QUOTATIONS):

&

EN¬

omitted):

(000's

U.

Private

10,444,000

May

Pig iron (per gross ton)
Scrap steel (per gross ton)
KfETAL PRICES

Total

Sale

♦9,195,000

9,730,000

&

lb.)_

(per

April

—

Month of

—

33,850,000

COMPOSITE PRICES:

Finished

CONSTRUCTION

GINEERING NEWS-RECORD

'

BRADSTREET, INC.
AGE

CIVIL ENGINEERING

104,060,000

70,209,000

May 3

kwh.)

000

(COMMERCIAL

FAILURES

$345,654,000

186,185,000
184,894,000

INSTITUTE:

ELECTRIC

output

$371,079,000

$288,192,000
152,267,000

RESERVE

SALES INDEX—FEDERAL
AVERAGE = 100

SYSTEM—1947-4!)

DIKOODY'S

INC.—Month

47,852,000

Apr. 26

(tons)—

(tons)

DEPARTMENT STORE

Average

STATES—DUN

SERVE SYSTEM

Apr. 26
Apr. 26
—Apr. 26

lignite (tons)

and

coal

Pennsylvania

MOODY'S

of that date:

Previous

36,991,000

S. BUREAU OF MINES):

'COAL OUTPUT (U.

Bituminous

J

„ay
M.ay
May

construction

State

*

6,154.000

6,401,650

6,501,000

21,303.000

Apr. 26
cars)—Apr. 26
ENGINEERING

NEWS-RECORD:

Total U.

Straits

BUSINESS INCORPORATIONS

2,073,000

1,294,000

are as

Month

103.7

62.3

116,600,000

26
26
-—Apr. 26
Apr. 26

CONSTRUCTION

ENGINEERING

XRON

in cases of quotations,

or,

Latest

20,903,000

AMERICAN

OF

6,365,500

6,370,800

26
26
26
26
26
26

RAILROADS:
Revepue freight loaded (number of cars)—
Revenue freight received from connections (no. of

ASSOCIATION

Electric

2,090.000

Not avail.

May 11

(net tons)

INSTITUTE:
and condensate output—daily average (bbls. of
42 gallons each)-—L—
.~——Apr.
Crude runs to stills—daily average (bbls.)
Apr.
Gasoline
output (bbls.)
—
Apr.
Kerosene output (bbls.)
—
——Apr.
Distillate fuel oil output (bbls.)—
——
——.—Apr.
Residual fuel oil output (bbls.)——.
—•—
-Apr.
% .Stocks at refineries, bulk terminals, in transit, in pipe linesFinished and unfinished gasoline (bbls.) at———Apr.
Kerosene
(bbls.) at
—.—
——Apr.

XDISON

that date,

Aao

Ago

100.6

on

Year

Month

either for the

are

PETROLEUM

.AMERICAN
Crude oil

Beehive

month ended

Week

Week
Not avail.

Dates shown in first column

month available.

or

UNITED

Equivalent to—
Steel ingots and castings

Public

or

Previous

Latest

AMERICAN IRON AND STEEL INSTITUTE:
Indicated steel operations (percent of capacity)—.—-—May 11

CSTUL

week

Thursday, May 8, 1952

.

.

sweets

:—

.,

2.66

2.70

May

3.15

3.16

3.17

3.08

Aaa

—May

2.92

2.93

2.95

2.87

.Aa

—May

3.00

3.00

3.02

2.94

—May

3.19

3.19

3.22

3.13

—May

3.50

3.50

3.50

3.39

May

3.30

3.31

3.34

3.27

—IVTay

3.19

3.19

3.20

3.09

Clothing

Average

corporate

A
Baa

—

Railroad
Public

Group

Utilities

Industrials

Group

2.97

—May

—

INDEX

2.96

2.98

2.89

433.2

Group

COMMODITY

MOODY'S

427.8

437.5

and

Gas

Orders

received

Unfilled

orders

Apr. 26

1S26-36

AVERAGE

end

at

of

PRICE

189,705

202.342

196,697

198,922

81

84

LOT

DEALERS

363,178

389,115

380,443

646,878

140.6

140.8

141.0

153.9

May

SPECIALISTS

AND

EXCHANGE—SECURITIES
sales

2

by dealers

ON

EXCHANGE

Y.

N.

STOCK

orders

Apr. 19

26,180

23,247

29,249

29,067

shares

Apr. 19

750,793

830,857

$45,718,392

$37,899,500

$38,528,573

Apr. 19

25,988

19,578

24,650
131

202

-—

dealers

Customers'

short

(customers'

Customers'

other

sales)—

sales

Apr. 19

short

Customers'

other

by

Other

sales

27,037
7,066

679,959

742,321

$29,231,928

$31,433,463

750,793

$32,480,652

Apr. 19

sales

TOTAL

537,968
$23,415,126
158,800

193,180

Short

Apr. 19

19~3~i80

-Apr. 19

STOCK

SALES

ON

THE

NEW

443,100

158,800

251,560

22~3~650

176,350

311,620

YORK

All

Indexes

106.6

131.1

•130.7

123.5

15,836,000

•15,777,000

15,978,000

♦8,950,000

8,877,000

6,846,000

(1947-1949

•6,827,000

7,101,000

Average=100)—

manufacturing

Estimated number of employees

in manufac¬

turing industries—

manufacturing
goods

Nondurable

goods

ESTIMATE —U.

AVERAGE

Apr. 12
-Apr. 12

5,137,460

Apr. 12

——

174,870
5,312,330

sales

TRANSACTIONS

Transactions of

specialists
purchases

Short

103.3

Avge.=100—

FACTORY EARNINGS AND HOURS—WEEKLY

FOR

ACCOUNT

OF

230,590
•

265,040

<

S.

DEPT.

OF

346,830

7,783,790

7,525,650

9,028,970

8,014,380

7,790,690

9,375,800

in

Earnings—

'

-

manufacturing

All

$67.20

•$67.03

$64.57

Durable goods

72.38

*72.27

69.39

Nondurable

60.20

♦60.12

58.40

40.7

40.8

41.1

41.6

41.8

41.9

39.4

39.5

40.0

$1,651

♦$1,643

$1,571

1.740

*1.729

1654

1.528

•1,522

1.460

5.87

5.54

6.35

6.05

5.85

6.12

MEM¬

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Total

103.5

(1947-49

LABOR—Month of March:

sales

ROUND-LOT

5,815,000-

328,800

sales—

Other sales

Total

7,371,000

•5,504,000

8,990,000

Indexes

dealers—

by

shares—

Round-lot

Payroll

Durable

EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT OF MEMBERS (SHARES):
Total

13,186,000

•7,267,000

223,650

176.350

Apr. 19

ROUND-LOT

*12,771,000

5,515,000

goods

manufacturing

All

sales

Hound-lot purchases

Employment

749,387

4,181

dealers—

shares—Total

Short

Number of

24,519
684.140

3,874

Apr. 19

sales
of

19,470
541.842

9,007

Apr. 19

value

Number

26,180
741,786

Apr. 19

sales

108

Apr. 19

sales

sales

192

Apr. 19

shares—Total

Customers'
Dollar

12,807,000

workers)

goods

Nondurable

All

sales

sales

Hound-lot

164.3;

SERIES—Month of

(production

manufacturing

27,239

value

Number of orders—Customers' total

of

170.2

7,292,000

LABOR—REVISED

OF

856,153

Apr. 19

659,376
$30,197,111

Number

154. A.

210.T

EMPLOYMENT AND PAYROLLS—U. S; DEPT.

Durable

of

by

156.3
208.6

170.7

.

furnishings

Miscellaneous

All

of

purchases

156.5
207.6

Ice

COMMISSION:

purchases)—

(customers'

Number
Dollar

97.2
205.0

February:

Number

Odd-lot

206.7

105

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-

Odd-lot

144.2

97.9

248,326

83

INDEX—

100

=

163,623

206.373

Apr. 26

period

REPORTER

DRUG

183,440

Apr. 26

(tons)

PAINT AND

electricity

134.T

145.3

515.4

Apr. 26

(tons)

(tons)

Percentage of activity

OIL,

—

140.2

97.9

refrigerators

ASSOCIATION:

PAPERBOARD

Production

and

fuels

Other

House
-NATIONAL

140.5

•

electricity

145.3

206.8

Rent

Fuel,

stocks in which registered—

Apr. 12

sales

528,160

830,560

785,620

goods

913.600

Apr. 12

95,540

130,490

143,260

157,840

—Apr. 12

453,520
549,060

744,740

618,120

743,650

875,230

761,380

901,490

Hours—

•

Other sales
Total

sales

—

—Apr. 12

—

Other transactions
Total

.

initiated

on

the floor—

sales

Apr. 12

109,700

255,440

202,100

Apr. 12

16,700

19,400

25,600

Apr. 12

6,700
117,900

268,700

234,760

275,070

—Apr. 12

124,600

285,400

254,160

300,670

Apr. 12

263,396

368,777

369,380

Apr. 12

31,060

35,650

280,534
40,470

__Apr. 12

242,417
273,477

457,490

371,759

412,110

12

493,140

412,229

458,420

Apr. 12

901,256

1,454,777

—

sales

..

——

Other transactions initiated off the floorTotal purchases
Short

sales

sales

Nondurable

—

„

Total round-lot transactions for account-of
members—
Total purchases

T~"Apr!

46,310

goods

;

Hourly earnings—
All

-

Other sales
Total

_.

270,220

—

Other sales
Total

manufacturing

Durable goods

purchases

Short

All

manufacturing

Durable

goods

Nondurable

—_

—

goods

———

■

Short

sales

WHOLESALE

1,553,200

133,300

182,840

203,130

Apr. 12

813,837

1,470,930

1,224,639

229,750
1,430,830

Apr, 12

947,137

1,653,770

1,427,769

1,660,580

;

-

sales

1,268.254

.Apr. 12

—

Other sales
Total

;

PRICES,

LABOR—(1947-49

NEW

=

SERIES'— U.

S.

DEPT.

200

AVERAGE

WEIGHTED

Industrial

YIELD

STOCKS—Month

COMMON

(125)

Railroad

100);

{Utilities

Apr. 29

111.2

111.3

—

106.7

106.7

107.6

.

Apr. 29

107.4

107.7

t

Apr. 29

Banks

'

108.3

110.7

Ail commodities other
.than farm and foods.:

(25)
(24).

I

111.4

113.1

112.9

Insurance

111.5

113.0

(15)

5.62

———

--

—.—.—

(10)

:—

—

Average (200)

a

fNot

available.




{On

new

basis.

-

OF

April:

5.50

5.85

4.58

4.41

4.71

111.4

——Apr. 29
.

Meats

vised,

of

OF

Commodity Group—
Ail commodities
Farm products
Processed foods

MOODY'S

{Preliminary fig

ure.

{Includes 546,000 barrels of foreign crude runs.

{Not including Amer. Tel. & TeL

3.41

337

3.41

5.77

5.49

fcl®

junjJj

Volume 175

Number 5114

The Commercial and Financial Chronicle

...

'

'

'

?

,

.

i1

37

(1945)

Securities

Now in

* INDICATES

Registration

ADDITIONS

SINCE

ITEMS

•

PREVIOUS
REVISED

ISSUE

•

Alabama Gas Corp.
(5/13)
April 17 filed $4,000,000 first mortgage bonds, series
C,
due

Proceeds—For construction program. Under¬
To be determined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co.
—

Inc.; White, Weld
Kidder, Peabody & Co. and Stone & Webster Se¬
curities Corp.
(jointly); The First Boston Corp.; Salo¬
mon
Bros. & Hutzler, Equitable Securities
Corp. and
Carl M. Loeb, Rhoades & Co.
(jointly). To be opened at
& Co.,

11:30

a.m.

(EDT)

Aluminum

May 13.

on

Co.

of

May 10,
Southern Union Gas

Canada, Ltd.

Underwriter—The First Boston
Corp., New York.
American Can Co. (5/8)

such share for each 10 shares held

May 8; rights to expire May 26. Price—To be sup¬
plied by amendment. Proceeds
For expansion and
working capital. Underwriters—Morgan
Stanley & Co.
—

Clark, Dodge & Co., New York.

Offering—Expected

(Harriman,

28

Hard

filed

$12.50)

to

be

at

of

one

rate

ferred stock

Rubber

96,655

offered

or

for

for

struction.

stock

common

each

(par

by stockholders

four shares

two shares of common

oversubscription privileges).
amendment.

of

subscription

share

new

of

stock held

Chicago, 111

Food

& Co. Inc., New
postponed.

American Machine &
Foundry Co.
March 27 filed a maximum of
255,467 shares of common
stock (no par)
being offered in exchange for all of the
191,600 shares of International Cigar Machinery Co. stock
(not already owned by American) on a
1%-for-l basis.
Offer to expire on
May 23, unless extended. DealerManager—Reynolds & Co., New York. Statement effec¬

Proceeds—To repay
Office—3717 Park Place,

Glendale, Calif. Underwriter—Lester, Ryons & Co., Los
Angeles, Calif,:

and

(Morgan

Stanley & Co.

Iowa Power

6c

prior to June 15, 1962.
common

They

are

(Smith,

stockholders of

record

May 6

basis, with rights to expire on May 22.
Proceeds—For capital additions

provements

and working capital.
Co., Inc., Chicago, 111.

(Blyth

(Coffin,

on

May
Service

Corp

Aluminum Co. of

Canada, Ltd

(The First

(A.

Island Air

G.

(Hunter

k

National

Fuel* Gas

Iowa Power &

(Bids

debentures

due

(Paul

H.

Davis

&

Common

Co.)

and

Common

Lester, Ryons & Co.)

Equip. Trust Ctfs.

(Bids

noon

EDT)

May 26, 1952

(Stone

Co

—Preferred
EDT)

noon

Webster

&

Common

Securities

Corp.)

Corp

—.Bonds

Loeb & Co.,

Harriman
First

Ripley

Boston

&

Co.,

Inc.

and

Corp.)

Tennessee Gas Transmission Co—Preferred & Com.
(Stone & Webster Securities Corp.

May 28,

and

White,

Weld & Co.)

Proceeds—For

investment.

Co.,

Price—

shares

of

cumulative

outstanding

(Offering

preferred

3%%

serial

par

($100

per

share).

Underwriter

Fidelity-Philadelphia

—

Trust Bldg.,

on

Pacific

Title

Broad and San-

Baltimore

&

Ohio

14,800

shares

of

Land

Escrow

Deposit Company stock valued at $592,000.
Office—148

and

(Bids

Kansas




Price—At par

common, will waive its subscription rights to
shares. Proceeds—To repay bank loans and for

($106

the

new

new con¬

struction.

Underwriters—To be determined by competi¬
tive bidding. Probable bidders:
(1) For bonds, Halsey,
Stuart & Co. Inc.; Lehman

Brothers; Kidder, Peabody &
Co.; Coffin & Burr, Inc. and First Boston Corp. (jointly);
W. Pressprich & Co. and
Equitable Securities Corp.
(jointly); W. C. Langley & Co. and Hemphill, Noyes*
Graham, Parsons & Co. (jointly); Union Securities Corp.
R.

For

stock,

Coffin

&

Burr,

Inc.

and

First

Boston

(jointly); Blyth & Co., Inc.; Harriman Ripley & Co.,
Inc.; Kidder, Peabody & Co. and Merrill
Lynch, Pierce,
Fenner & Beane (jointly); A. C.
Allyn & Co., Inc. Bids
—Expected
May 19.

to

be

received

up

to

11

(EDT)

a.m.

Kansas

City,

or

Mo,

April 14 (letter of notification) $250,000 of 15-year 6%
junior registered sinking fund debenture notes due
April 1, 1967, and 24,500 shares of class A common stock
(par $1). Price—Of notes, at par (in denominations p£
$100 each), and of stock, $2 per share. Proceeds
For
Office—1334 Oak St., Kansas City. Mo,
Underwriter—Wahler, White & Co., Kansas City, Mo.

* Century

EDT)

(Bids

Gas
noon

&

4,

Equip. Trust Ctfs.

to

be

10,

Electric

EDT

on

1952
invited)

(Bids

to

a.m.

be

Power

Robert M.

Price—40

cents

Allender and

per

common

share.

Judson M.

Pro¬

Bell, two

Underwriters—Blair F. Claybaugh
Co., Harrisburg, Pa., and Goodbody & Co., New York.

EDT

on

Continued

stocks)

on

38

page

17, 1952
Co.____Debs. & Common

be

invited)

to

be

invited)

Bonds
&

to

be

Gas

Co

Debentures

invited)

June 24, 1952

I

Gulf

Corp.

invited)

to

Public Service Electric
(Eiids

Oil

Bonds & Common

Kentucky Utilities Co
(Bids

&

Bonds & Stock

10:30

American Gas & Electric
(Bids

(par 10 cents).

ceeds—To

&

Co

bonds;

Natural Gas

April 30 (letter of notification) 80,000 shares of

selling stockholders.

1952

Northern States Power Co

Co

Bonds
be

to

invited)

July 1, 1952
Illinois Bell Telephone Co
(Offering

Common

stockholders)

to

New York

July 8, 1952

Underwriter
4,

$110,000 of convertible

Central Vermont Public Service Corp. (5/19)
April 23 filed $1,500,000 of first mortgage bonds, series H,
due May 1, 1982, and 108,900 shares of common stock
(par $6).
The latter issue is to be first offered for sub¬
scription by common stockholders at the rate of one

Boston

Safe

Montgomery St., San Francisco

Calif.

a.m.

RR

June

Co.

May 2 (letter of notification) 3,700 shares of common
stock (valued at $80
per share) to be exchanged for a

Madison, Wis.
(letter of notification)

each). Proceeds —For working capital. Office — 2034
Pennsylvania Ave., Madison, Wis. Underwriter—None.

stock

(Bids

Insurance

11

June

Office—

Streets, Philadelphia 9, Pa.

Common

Preferred & Com.

(Bids

Proceeds—

None.

Co.,

—

1952

stockholders)

to

June

'
common

oversubscription privilege); rights to expire
expenses.

Co.)

Tampa Electric Co..

deben¬

on May 8 for
subscription by stock¬
holders of record Jan.
14, 1952, on a share-for-share basis

Price—At

3,

Consolidated Natural Gas Co

Conn.

'

working capital.

June

Price—To be supplied by amendment.

redeem

2, 1952
Corp., Dallas, Tex..__Common
&

Co., Inc., Rochester, N. Y.

Century Acceptance Corp.,
Preferred

(W. C. Langley & Co.)

Underwriter—

Bridgeport,

April 17

1952

Long Island Lighting Co

(Beer

share. Proceeds—For development ex¬
corporate purposes. Underwriter—

per

general

April 24 at rate of one new share for each five
held; rights to expire on May 12. Price—$24.56
per share. Proceeds—To repay bank loans. Underwriters
—Morgan Stanley & Co. and Clark, Dodge & Co., New
York. Statement effective April 24.

(2)

May 27, 1952
Steel

and

for each six shares held.
New England Public
Service Co., parent, owner of 35.5% of Central Vermont
;

Co.

Chauncey

share

1952

June

^ Bug Drilling Co., Inc.,
Philadelphia, Pa.
May 1 (letter of notification) 1,500 shares of

—None.

&

Seaboard Air Line RR

stock to be offered

of

EDT)

Co., Ltd

Kwikset Locks, Inc.—

Metals & Chemicals
\,;'v

Offering—Indefinitely postponed. Meeting—Stock¬

maximum

a.m.

May 22,

The

(par $50-convertible through May
1, 1962) to be
subscription by common stockholders at rate
preferred share for each seven and one-half shares

California

Bonds

11

to

event

compen¬

•

Light Co

holders to vote May 26.

2717

Invited)

New British Dominion Oil

(Kuhn,

tures and repay 2Vz% notes.
Underwriters—Hornblower
& Weeks and Stone &
Webster Securities Corp... New

some

Corp.) vi-

-—-—Debentures
be

to

issued

the

as

Mines, Ltd., Toronto, Canada
shares of common stock (par $1>.

subordinated debentures due 1965.

Common

Co

filed 675,000

Celon

Inc.)

May 21, 1952

offered for

15.

Co.

Securities

(Bids

National

Bridgeport Brass
April 8 filed 125,732

drilling

&

Ferries, Inc.-

(Bids

Vance, Sanders & Co., Boston, Mass.

For

Debentures
.Common

Becker

in

been sold

Carpenter (L. E.) & Co., Wharton, N. i.
March 20 (letter of notification) 5,000 shares of comrnoxt
stock (par $1).
Price—At the market.
Proceeds—T0<
Jerome L. Long, the selling stockholder.
Underwrite*—>
Eisele & King, Libaire, Stout & Co., New York.

Corp.)

Proceeds—

Fund, Inc., Boston, Mass.
April 30 filed 1,000,000 shares of capital stock.

of common held.

Boston

Hammermill Paper Co

placement.

May

Sons)

Virginia Electric & Power Co.—

Boston

an

&

underwriter

shares

Preferred

Brown

the

covers 10,006
(par $1), of which 3,006

of record

EDT)

a.m.

Corp

(Alex.

pre¬

Underwriters—Straus, Blosser & Mc¬
Dowell, Chicago, 111. Statement to be withdrawn. Ar¬
rangement being made with insurance
company for pri¬

(with

11

to

stock

Case (J. I.)
Co., Racine, Wis.
April 4 filed 377,058 shares of common stock (par $12.58>
being offered for subscription by common stockholders

Bonds & Common

Chemical

porate programs.

York.

•

Co.)

19, 1952

(Bids

Davison

G.

April 1, 1964.
Price—To be supplied
by amendment.
Proceeds—To repay short-term
loans, and for other cor¬

Proceeds—To

Corp.—-Common

Central Vermont Public

Office—173-23rd St., Astoria, Ore.

Bingham-Herbrand Corp.
19 filed $2,000,000 convertible

one

Betz &

Hotel

I

Inc.)

Skiatron Electronics & Television
Corp.—Common

Dallas Power & Light

March

of

Co.,

issued

Frank P. Hunt &

'The First Boston Corp.)

im¬

Underwriter—A.

Price—At par ($25 per
share).

For working capital.
Underwriter—None.

stock

&

New York State Electric & Gas

21

penses

Co.)

&

common

and

Price—$1.25

Corp.)

Common

Price—
and

• Astoria Plywood Corp., Astoria, Ore.
April 11 (letter of notification) 12,000 shares of

market..

Boston

rCommon

Barney

be

Cardiff Fluorite
Feb.

Bonds

Lion Oil Co

cumu¬

1952, convertible
initially offered for sub¬

$30 per share.

At

The First

and

(Allen

value $1.50

par

lative second preferred
stock, series of

vate

CDT)

a.m.

Light Co

•

Ashland Oil &
Refining Co.
April 16 filed 599,560 shares of no

ferred stock.

11

Development ("World Bank")

Arkansas

Oil Ventures,
Inc., Oklahoma City, Okla.
April 22 (letter of notification) 1,999,000 shares of com¬
mon
stock (par one cent). Price—15
cents per share.
Proceeds—For drilling expenses and
working capital.
Underwriter—Tellier & Co., New York.

Becker &

Common

■

stock (par $1). Price—$9
per share.
loan and for working capital.

l-for-9

Inc.)

May 20, 1952

Applied Research Laboratories,
Glendale, Calif.
April 23 (letter of notification) 33,000 shares of capital

a

Co.,

Machinery & Chemical Corp

tive April 21.

scription by

&

Price—$1,000

Continental

jc Capella Copper Co., Phoenix, Ariz.
May 2 (letter of notification) 250,000 shares of common
stock (par 25 cents). Price—20 cents per share. Proceeds?
—For drilling expenses.
Office — 909 North First St,
Phoenix, Ariz. Underwriter—None.

Clark, Dodge & Co.)

Preferred

Eberstadt

(Kidder, Peabody & Co. and Mitchum, Tully & Co.)
Fort Worth & Denver Ry
Bonds

Underwriter—Blair, Rollins

Offering—Temporarily

and

Co., Jeanette, Pa
(F.

will

7,000 shares will be
Depew Steele, Jr., for services.

Debentures

(Morgan Stanley & Co.

Elliott

sation

EDT)

noon

purchase

that not less than 220 units have

Equip. Trust Ctfs.

(Bids

Crane Co.,

To

—

The letter of notification also

shares of class B
shares

pre¬

(with

Price—To be supplied by
plant additions and con¬

Proceeds—For

ton, Mass.

Bonds

International Bank for Reconstruction and

Co.

shares

—-Debentures

EDT)

noon

conversion of the debentures.

Proceeds

Building and two apartment buildings and for operating
expenses.
Underwriter—Clayton Securities Corp., Bos¬

Ripley & Co., Inc.)

(Bids

upon

unit.

per

EDT)

a.m.

Worcester Couniy Electric Co

(Bids

March

York.

Bonds
11:30

Firestone Tire & Rubber Co

today.
American

one $1,000 debentures and 12
shares of com¬
stock, and 22,500 shares are being reserved for is¬

suance

Alabama Gas Corp

May 14, 1952

of

and

in units of
mon

May 13, 1952

Central RR. of Georgia

17 filed 989,599 shares of common stock
(par
$12.50) to be offered for subscription by common stock¬
one

Common

(Offering to stockholders)

April

holders at rate of

1952

Co., Dallas, Tex

(Bids

(5/20-21)
April 29 filed $90,000,000 of sinking fund debentures due
1970 (to be guaranteed by
Aluminium, Ltd., parent, and
payable in U. S. dollars).
Proceeds—For
expansion.

as

Cambridge Hotels, Inc., Cambridge, Mass.
April 25 (letter of notification) $250,000 of 10-year
convertible debentures due
May 1, 1962, and 25,000 shares
of class A common stock
(par $1), of which stock 2,500
shares are being issued with the debentures
to be sold

NEW ISSUE CALENDAR

,

1971.

writers

Georgia Power

Pittsburgh

San Francisco

Bonds
to

be

■O

invited)

Private IVires

Chicago

Cleveland
v

.

Co
'Bids

Philadelphia

to

all

offices

c

_

38

The Commercial and Financial Chronicle

(1946)

Dean

Continued, from page 37
C.

Financial Corp., New York

I. T.

for key employees to

4,000 shares of common
stock (par $10).
Price—$16.50 per share.
Proceeds—
To T. A. Dean, trustee under the will of J. R. Dean.
Office—666 Lake Shore Drive, Chicago 11, 111. ; Under¬
April 10 (letter of notification)

April 25 filed 150,000 shares of common stock (no par)
to be offered pursuant to a restricted stock option plan

certain employees of the company

writer—Boettcher & Co., Denver,

and its subsidiaries. Underwriter—None.

Citizens

Credit

Corp., Washington, D. C.
vApril 10 (letter of notification) $125,000 of 6% subordi¬
nated debentures due 1969 (with warrants attached to
purchase 3,750 shares of class A common stock at $15
per share and 750 shares of class B common at 25 cents
per share).
Price—At 99% and accrued interest. Pro¬
ceeds—To acquire loan offices and subsidiaries.
Office

_

•

—1028 Connecticut

Avenue, Washington 6, D. C. Under¬
writer—Emory S. Warren & Co., Washington, D. C.

ic Commonwealth Stock Fund, San Francisco,

Calif.

(par $1).
Proceeds—For investment. General

May 6 filed 250,000 shares of common stock
Price—At

market.

American Securities

Distributor—North

Co., San Fran¬

Consolidated

Inc.
March 17 (letter of notification) 200,000 shares of com¬
mon
stock.
Price—$1 per share.
Proceeds—For con¬
of

struction

Utah.

sulphuric

oversubscription privilege); rights to expire on
June 20.
Price—To be supplied by amendment.
ProX
v

an

To purchase securities of company's operating
subsidiaries, which in turn will use the funds for prop¬
erty additions and improvements. Underwriter—None.

^ceeds

—

Consolidated
March

26

Underwriters

Investment

•

working capital.

homa

City, Okla.

Deerpark Packing Co., Port Jervis, N. Y.
March 21 (letter of notification) 235,000 shares of com¬
mon stock (par 10 cents).
Price—$1.25 per share. Pro¬
ceeds—To repay RFC loan of $41,050 and for working

I,
-A
A■ '
'
r
DeKalb-Ogle Telephone Co., Sycamore, III.
April 11 (letter of notification) 20,556 shares of common
stock.
Price —$10 per share.
Proceeds—For general
purposes.
Office—112 West Elm Street, Sycamore, 111.

capital.

stock.

Continental

Price—At par

Radiant Glass Heating

Corp.
April 16 (letter of notification) 100,000 shares of cumu¬
lative convertible preferred stock (par $1) being first
offered for subscription by stockholders of record April 8
on a
pro rata basis; rights to expire May 14.
Price—
To stockholders $2.70 per share and to public $3 per
share.
Proceeds—For expansion of sales and working
capital. Office—1 East 35th St., New York, N. Y. Under¬
writer—Aetna Securities Corp., New York.

Royalty Co., Dallas, Tex.
March 18 (letter of notification) 120,000 shares of com¬
mon stock
(par $1). Price—$2.50 per share. Proceeds—
purchase royalties

Office—740 Wilson

and mineral deeds, oil and gas.
Building, Dallas Texas. Underwriter

Southwestern Securities Co. and Hudson Stayart & Co.,

Inc., of Dallas, Texas.
Crane Co., Chicago, III.
(5/14)
April 23 filed $20,000,000 of 25-year sinking fund deben¬
tures due May 1, 1977. Price—To be supplied
by amend¬
ment. Proceeds — To repay short-term notes and for
working capital. Business—Manufacture and distribution

of plumbing fixtures, and accessory equipment for
craft. Underwriters—Morgan Stanley & Co. and

March 1,

Clark,

—

Corp., Nashville, Tenn.
★ Crown Finance Co., Inc.
April 30 (letter of notification)

$50,000 of 5%

subordi¬

nated

debentures due March 1, 1982.
Price—At par (in
denominations of $1,000 and $500 each).
Proceeds—For
&

and

working capital.
Co., Inc., New York.

Daitch

Underwriter—Hodson

Crystal Dairies, Inc.

Jan. 31 filed 147,000 shares of common stock
(par $1), of
which 125,000 shares will be offered
by company and
-22,000 shares by present stockholders. Price—To be sup¬

plied

S. Prescott

Price

1967.

To be supplied by amendment.

—

presently outstanding
Under¬

Steel

Detroit

Corp.

Feb. 5 filed 600,000 shares
stock

of $1.50 convertible preferred

(par.$25). Price—To be filed by amendment. Pro¬
expansion program. Underwriters—Van Al¬

ceeds—For

styne, Noel & Co., New York, and Crowell, Weedon &

Co.,

Calif.

Angeles,

Los

Offering—Postponed

tempo¬

1
Peak

Devil

.

Ltd.

Uranium,

(Nev.)

]

April 7 (letter of notification) 600,000 shares of common
stock

(par

one

Price—50 cents

cent).

rehabilitation

ceeds— For

Office —Suite 839,

and

share.

development

Pro¬

program.

60 East 42nd St., New York 17, N. Y.

Underwriter—Gardner & Co.,
Dixonville Coal

'

per

Co.

White Plains, N. Y.

:

mineral

(letter of notification) $100,000 of 10-year 7%
first mortgage convertible sinking fund bonds due June
April 17

Price—At 98% of principal amount. Proceeds—
Underwriter—Arthur L. Wright &

1, 1962.
For

improvements.

Stainless

Eastern

stock

Steel

Corp., Baltimore, Md. !

(letter of notification)

4,000 shares of

common

$5); Price—At market (approximately $15
Proceeds—To J. M. Curley, the selling stock¬

(par

share).

per

Underwriter—Hornblower & Weeks, New York.

holder.

Co., Boston, Mass.

on

Golconda

lands

basis of

on

one

share for each

Underwriter—None.

Mines

Montreal, Canada

Ltd.,

750,000 shares of common stock. Price—
At par ($1 per share).
Underwriter—George F. Breen
New York. Proceeds—For drilling expenses, repayment
April 9 filed

of advances and working

capital.

Gyrodyne Co. of America,

Offering—Date not set

Inc.

(letter of notification) 3,000 shares of class A
(par $1). Price—$5 per share. Proceeds
working capital. Office—Flowerfield, St. James,
Underwriters—Company and Jackson & Co., Bos¬

April 22

stock

common

—For

N. Y.

Mass.
Land

Nev.

Co., Reno,

April 14 (letter of notification) 300,000 shares of capital
stock. Price—At par (10 cents per share). Proceeds—To

acquire ore dumps and for oil leases and royalties. Of¬
fice—139, North Virginia St., Reno, Nev. UnderwriterNevada Securities Corp.
Hammermill

(5/20)

Paper Co.

April 30 filed 200,000 shares of common stock. PriceTo be supplied by amendment. Proceeds—For plant im¬
provements and working capital.
Becker & Co. Inc., Chicago, 111.
Hecla

Underwriter

—

A. G.

Mining Co., Wallace, Ida.
of notification) 3,000

shares of capital
Price—At market (approximately
$18 per share). Proceeds—To Mrs. M. K. Pollard, the
selling stockholder. Underwriter—Thomson & McKinnon, New York.
/>: v.
17

Jan.

(letter

(par 25 cents).

stock

Husky Oil Co., Cody, Wyo.
V
of common stock (par $1).

•

March 28 filed 300,000 shares

be supplied

Price—To

Proceeds—From

by amendment.

stock, plus $1,050,000 from sale of 100,000
shares to Northern Natural Gas Co., to, be

this

of

sale

additional

exploration and acquisition of properties and
Husky Oil & Refining Ltd., a
Canadian subsidiary. Underwriter — Blyth & Co., Inc..
San Francisco and New York. Offering—Expected about
for

to increase investment in

the middle of May.

,':"...

-

Imperial Brands, Inc., Inglewood, Calif.

Co., Inc., Philadelphia, Pa.
April 7

rights
leased.

so

acre

used

(Pa.)

&

* Glendive Leaseholds, Inc., Glendive, Mont.
April 21 (letter of notification) 200,000 shares of common
stock (no par) to be offered to owners of mineral rights
in certain lands near Glendive in exchange for leases of

Hamilton

temporarily.

April 24 (letter of notification) 112,600 shares of capital
stock. Price—At par ($1 per share). Proceeds—To pay
outstanding obligations. Underwriter — None, but sales
will be made through V. L. Oberman, J. A. Hunter and
R.

J.

•■"'V'V

Prower.

(Nev.), Newark, N. J.
Feb. 26 (letter of notification) 599,700 shares of class A
common stock (par 25 cents).
Price—50 cents per share.
Proceeds—For drilling and equipping well and for work¬
Inland Oil Co.

Elliott Co., Jeanette, Pa. (5/14)
April 24 filed 120,000 shares of 5% cumulative second

preferred stock (par $50-convertible through April 1,
1961). Price—To be supplied by amendment. Proceeds—
For

expansion program and working capital. Business—

Manufacture

of

steam

turbines

Underwriter—F. Eberstadt &

Federal

Electric

electric

and

International Technical Aero

Co., Inc., New York.

Products

N. J.

Services, Inc.

(letter of notification) 300,000 shares of common

Feb. 15

Co.

cents). Price—$1 per share. Proceeds—For
capital. Office—International Terminal. Wash¬

stock (par 10

stock (par

$1) to be offered to employees. Price
—$8 per share.
Proceeds—For working capital.
Office
—50 Paris Street, Newark 5, N. J.
Underwriter—None.
Fenimore

ing capital.Office—11 Commerce St., Newark,
Underwriter—Weber-Millican Co., New York.

motors.

April 10 (letter of notification) 35,000 shares of class A

Iron

working

ington National Airport,

Washington, D. C. Underwriter

—James T. DeWitt & Co..

Power &

Iowa

Washington, D. C.

(5/14)

Light Co.

Mines, Ltd., Toronto, Canada
Jan. 25 filed 4,007,584 shares of common stock (par $1)
and 2,003,792 common stock purchase warrants of which
2,003,792
shares are to be offered to present common

April 25 filed a maximum of 226,929 shares of common
stock (par $10), to be offered for subscription by com¬
mon
stockholders of record about May 14 at rate of

stockholders at 75 cents per

May 28. Price—To be supplied by amendment. Proceeds
—For new construction. Underwriter—Smith. Barney &

a

basis of

new

one

share (Canadian funds)

share for each two shares held.

on

Sub¬

scribers will

receive, for each share subscribed, a war¬
purchase one additional share at $1.25 (Canadian
funds) per share until June 1, 1953, or an additional 2,003,792 shares.
Unsubscribed shares will be offered by
the company at the same price and carrying the same
warrants.
Proceeds^—To finance drilling program.
Un¬

one

Statement

derwriter—None.

effective

Firestone Tire & Rubber Co.

10.

March

share for

each

seven

shares held; rights to expire

Co., New York.

rant to

by

amendment.
Proceeds — To open additional
supermarkets.
Underwriter—Hirsch & Co., New York.
Offering—Now expected about the middle of May.

William

■

York; Van Alstyne, Noel & Co., New York; and Crowell,
Weedon & Co., Los Angeles, Calif. Offering—Postponed

common

Crossett (Ark.)
Lumber Co.
April 22 (letter of notification) 9,350 shares of common
stock (par $5). Price — $32 per share. Proceeds
For
working capital. Underwriter — Equitable Securities

expansion

■

first mortgage bonds and for expansion program.

air¬

Dodge & Co., of New York.

share).

9,975 shares by certain key employees at the
(latter part to be underwritten at $2.78 per
Proceeds—For working capital. Underwriter—

ton,

Proceeds—To retire $13,950,000 of

Continental

To

-.

$25,000,000 of 4%% first mortgage bonds due

Feb. 5 filed

1952

price

same

Detroit Steel Corp.

(letter of notification)

common

A .A;

rarily.

Corp.

30,000 shares of class
($10 per share). Pro¬
ceeds—For working capital.
Office—507 Spring Street,
Shreveport, La. Underwriter—None.
A

Office—219 Fidelity Bldg., Okla¬
Underwriter—None.

—For

writers—Halsey, Stuart & Co. Inc. of Chicago and New

Underwriter—None.

it Consolidated Natural Gas Co., New York (6/3)
April 30 filed 409,254 shares of capital stock (par $15)
to be offered for subscription by stockholders of record
June 3 at rate of one share for each eight shares held
(with

Okla.

April 14 (letter of notification) 2,000,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds

Industries,

acid, fertilizer and wood sugar
Office—174 North Main Street, Salt Lake City,

plants.

Colo.

Oklahoma City,

Corp.,

Underwriter—None.

Offering—Expected in August.

cisco, Calif.

Oil

Deardorf

Thursday, May 8,

share and

III.

Co.,i Chicago,

.

Power &

Iowa

(5/21)

Light Co.

filed $10,000,000 of first mortgage bonds due
Proceeds—For new construction. Underwriters—

April 25
1982.

To be determined by
ders:

competitive bidding. Probable bid¬

Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; W.

C.

Langley & Co., Union Securities Corp. and Glore. Forgan

(5/13)

&

(jointly); Smith, Barney & Co.; White,

Co/

Weld &

April 23 filed $75,000,000 25-year debentures due May 1,
1977.
Price—To be supplied by amendment.
Proceeds—

Co.;. The First Boston Corp.; Kidder, Peabo-'v & Co.
BidsX-.Tentatively expected to be opened on May 21 at

* Dakota Williston Oil Corp., Oklahoma City, Okla.

For

11

April 28 (letter of notification) 1,999,000 shares of
mon stock (par 1
cent).
Price—15 cents per share.

—Harriman

ceeds—To

ity Bank
Tellier &

Dallas

April

21

com¬

Pro¬

drill well.
Address—c/o H. L. James, Fidel¬
Bldg., Oklahoma City, Okla.
Underwriter—
Co., New York.
Offering—Now being made.

Power &

Light Co.

(5/26)

filed

100,000 shares of cumulative preferred
stock (no par). Proceeds—To
repay advances from Texas
Utilities
writers

Co., parent, and for
—

To

be

new

determined

construction.

Under¬

by

competitive bidding.
& Co. and Kidder
Peabodv & Co. (jointly); The First Boston
Corp.; Leh¬
man
Brothers; Union Securities Corp.; White, Weld &
Probable

bidders:

Harriman Ripley

Co. and

Equitable Securities Corp. (jointly). Bids—Ex¬
pected to be received at noon (EDT) on May 26.

plant expansion and working capital.
Underwriter
Ripley & Co., Inc., New York.
Petroleum

Flathead

March

21

filed

Co., Monroe, Wash.

600,000

shares of common stock (par
cents). Price — 50 cents per share. Proceeds — For
equipment and drilling purposes. Underwriter—None.
10

★ Flek Corp., Los Angeles, Calif,
April 28 (letter of notification) 13,500 shares of capital
stock (par $10), of which 9,000 shares will be sold at par
to

a

group

shares
one

are

of 20

individuals, and the balance of 4,500

to be issued to three directors in the

share for each two shares sold to

consideration

promotion

Proceeds —For

pany.

South

of

Grand

Ave.,

services

working

Los Angeles,

ratio of

said individuals in

rendered

capital.

Calif.

to

com¬

Underwriter—

Corp.

April z9 filed

128,533 shares of cumulative convertible
preferred stock, series A (par $50) to be offered for sub¬
scription by common stockholders at rate of one pre¬
ferred share for each five

common

shares held. Price

To be supplied by amendment.

Proceeds—From sale of
stock, plus funds to be received from insurance company
on a $15,000,000
long-term loan to mature May 1, 1967
for

refunding of $4,300,000 outstanding 3V2% notes and

for expansion

program.

Sons, Baltimore, Md.




Underwriter

—

Alex. Brown &

•

Food

Machinery & Chemical Corp.

April 22 filed 300,000 shares of
Price—To

be

supplied

by

common

amendment.

(5/14)
stock

(par $10.

General

Alloys Co., Boston, Mass.
(letter of notification) 25,000 shares of common
stock (no par), of which 15,025 shares are to be offered
subscription

by officers of the

company

at $3

per

x

Inc.

'

VX //,'■■

'

X /

(5/20)

Office—MacArthur

Airport,

for working

Bohemia,

N.

Y.

Underwriter—Hunter Securities Corp., New York.
Jersey Yukon Mines Ltd., Toronto,

Martfi

Canada
(par $1).
Proceeds—For

20 filed 200,000 shares of common stock

Price—$1

per

share

(Canadian funds).

capital payments on property account and option agree¬
ments,- purchase of machinery and operating expenses.
Underwriter—None.
'Johnston Adding Machine Co., Carson City, Nev.
Marcll 5

150,000 shares of capital
par ($1 per share). Proceeds—To pur¬
materials and office equipment. Under¬

Getter of notification)

Price—At

writer—None.

Proceeds—For

March 5

'

,

purchase two transport aircraft and

capital.

chase tools and

general corporate purposes. Underwriters—Kidder, Peabody & Co., New York, and Mitchum, Tully & Co., San
Francisco, Calif.

for

—To.

stock.

(5/19)

(EDT).

a.m.

Island Air Ferries,

April/18 (letter of notification) 284.000 shares of com¬
mon/stock (par 10 cents). Price—$1 per share. Proceeds

Office —609

None.

Davison Chemical

•

.

(Kansas) Telephone Co.
(letter of notification) $294,000 of first mortgage

Junction City
Feb. 29

4^>%

bonds, series A, due Feb. 1, 1977 (in denominations
each). Proceeds—To retire bank loans. Under¬
writer—Wachob-Bender Corp., Omaha, Neb.

of $1,000

Kansas-Colorado Utilities, Inc., Lamar, Colo.
(letter of notification) 5,86o shares of common
stock.
Price—$12.75 per share.
Proceeds—To Sullivan;

March 14

Volume 175

Number 5114

,

.

The Commercial and Financial Chronicle

.

39

(1947)
Brooks
West

Co., Inc., the selling stockholder.
Office—112
St./,-Lamar; Colo.
Underwriter —
Co., Inc., Wichita, Kan.

Elm*

Brooks

★ Kansas Gas & Electric Co. (6/10)
April 30 filed $12,000,000 first mortgage bonds due 1982.
Proceeds—For construction program and to
loans.
Underwriter—To be determined by

bank

repay

competitive

★ Mercantile Acceptance Corp. of California

Porter

notification) $37,000 of 10-year 5%
junior subordinated debentures to be offered to public

Miller of

April

a°

S6 securities to the

in

Probable bidders: Halsey, Stuart & Co. Inc.;
Brothers; Union Securities Corp. and .Stone &
(jointly); Glore, Forgan & Co.
"and Goldman; Sachs
& Co. (jointly); Merrill Lynch;
Pierce, Fenner & Beane and Kidder, Peabody & Co.
Webster Securities Corp.

(jointly); The First Boston Corp.
received up to noon

(EDT)

Calif.

.

.

★ Kansas Gas & Electric Co..,(6/10) v
April 30 filed 200,000 shares of common stock (no par).
,

Proceeds—To repay bank loans and for new construc¬
Underwriter—To be determined by competitive

tion.

bidding.
Probable
bidders:
Union
Securities
Corp.;
Brothers; Merrill Lynch, Pierce, Fenner &
Beane, Kidder, Peabody & Co. and White, Weld & Co.,
(jointly); The First Boston Corp.; Blyth & Co., Inc.
Bids—Expected to be received up to 10:30 a.m. (EDT)
June

10.
,

lative

preferred

Proceeds

stock.

To

—

Price—At

retire

notes.

($25

par

Underwriter

cumu¬

share).-

per

Bailey &

—

Davidson, San Francisco, Calif.

Underwriter—Guardian

San

St.,

Securities

working

Francisco,
Corp., San

Michigan Spring Co.
(letter of notification) 9,744 shares of

April 18

ferred stock

Price—$13.50 per share. Proceeds—For working
capital. " Office—2700 Wickham Drive, Muskegon, Mich.

Underwriter—None.

Michigan Steel Casting Co., Detroit, Mich.
March 27 (letter of notification) 40,250 shares of
stock

(par $1)

to

be

offered

stockholders of record March 31.

Proceeds—For working capital.

$8.50

com-

by
share.

per

Underwriter—None.

stockholder.

Price—At market (not less than
Proceeds—To W. T. Moran, the selling

Underwriter—Harris, Upham & Co., New

York.

Kirk Uranium Corp., Denver, Colo.
24
(letter of notification)
1,000,000

\

.

For

stock.

Price

exploration

—

30 cents per

>Office

work.

—

share.

405

shares

/

-

,

of

Proceeds

Interstate

Building, Denver, Colo; Underwriter—Gardner
White Plains, N. Y.

,

Nev.

Underwriter—None.

lative

convertible

share).

per

tenna

&

Co.,

working capital.

Feb.

filed

27

-■

Mich.

—

For

working capital

Office—1800 Glenrose Ave., Lansing
2,

Underwriter—None.

r

of

common

stock

(par $2,500),

to be offered to stockholders at

are

National

Alfalfa

Dehydrating & Milling Co.

April 7 filed 69,800 shares of
be

offered

for

subscription

of

preferred

one

or

stock

common

by

preferred

new

common

common

and

common

share for each

stock held.

Price—$9

share.

Proceeds—To acquire 305,000 shares of Na¬
tional Chlorophyll & Chemical Co. at
$2 per share. Busi¬
ness—Manufacture and sale of alfalfa meal.
Office—

per

Lamar, Colo.
National

common

Lindemann
Nov.

28

filed

(A. J.)

& Hoverson Co.

stock

(par $1)

for

mon
or

each

share of National
shares

two

of

Chlorophyll

National Alfalfa preferred

presently held in conjunction with offer by
company of its own stock.
National
Chlorophyll shares are to be offered for : subscription
common

National

only

Alfalfa

a unit or package consisting of one Na¬
share It $9 per share and five shares of
Chlorophyll stock at $2 per share, or a total
price per unit of $19. Proceeds—To purchase from Na¬
tional Alfalfa its existing chlorophyll extraction facil¬
ities and inventory and for construction of new extract¬
ing plant. Office—Lamar, Colo. Underwriter—None.

part of

as

112,500 shares of

be

supplied

★ Link-Belt Co., Chicago, III.
May 5 filed 21,636 shares of common
be offered to

National Fuel Gas Co.
stock

(par $5), to

select group of officers and
employees of
subsidiaries. Price—$35 per share.

a

the company and its

Proceeds—For working capital.
Lion Oil

Co.

Underwriter—None.

(5/14)

April 23 filed 400,000 shares of

stock

common

(no par).
be supplied by amendment.
Proceeds—From
stock, together with funds from placement of
$15,000,000 of debentures with an insurance company, to

Price—To
sale

be

April

18 filed

1977.

(5/20)

$18,000,000 sinking fund debentures

due

Proceeds—To repay

$11,000,000 bank loans and to
loan $7,000,000 to subsidiaries. Underwriters—To be de¬
termined by competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; Blyth & Co., Inc.; The First Bos¬
ton Corp.; White, Weld & Co.; Harriman
Ripley & Co.,
Inc. Bids—To be opened on May 20.

used

to

pay

for

construction

of

new

plant.

Under¬

stock

(par

$1).

Price—$100

per

share.

Star

Place; Jersey

April 3 filed 154,209 shares of common stock (par
$10).
Price—To be supplied by amendment. Proceeds—To re¬

$40,000,000

outstanding

3%

first collateral mort¬

bank loans and for expansion program. Underwrit¬
ers—Havden, Stone & Co. and Adamcx Securities Corp.,
New York.

Price—To be supplied by amendment.
construction

program.

Underwriter

—

Pro¬

W.

Martin
March

shares
year

21
of

(Glenn
filed

L.)

common

—

.

stock.

mon

For

Price—At

working capital.

Neb.

par ($10 per share).
Proceeds—
Office—521 No. 16th St., Omaha,

Underwriter—None.

it Nevco Petroleum Co., Las Vegas, Nev.
May 1 (letter of notification) 3,000,000 shares of class A

be

4% convertible subordinated notes.
common

There
stock

exchanged for the voting trust certificates.

(convertible into

common

stock

at rate

now

eligible to
The notes

of $6 per

Acceptance Corp. of California

March 20 (letter of
notification) 2,030 shares of common
stock (par $5) and
$40,600 of 10-year 5% junior

sub¬

ordinated

debentures to be offered to common stock¬
holders of record March 10 at rate of one share of com¬
mon

per

and $20 face amount of debentures.

unit.

Proceeds—For

Price—$.23.50

working capital.
Office—333
Montgomery Street, San Francisco, Calif. Underwriter
—Guardian Securities
Corp., San Francisco, Calif J




Proceeds

writers—To

(Minn.)
common

subscription by
at rate of

For

—

be

common

(par $5)

stockholders

share for each 10 shares

one

construction

determined

(6/10)
stock

Under¬

program.

by
competitive
Barney
&
Co.;

bidding.
Smith,
Lehman
Brothers & Riter & Co.
(jointly); Merrill Lynch, Pierce,
Fenner & Beane, Kidder,
Peabody & Co. and White,
Weld & Co. (jointly).
Bids—Expected to be opened on
Probable

bidders:

about June 10.

Northwest

Bancorporation, Minneapolis

f
103,185 shares of convertible preferred
(par $50) being offered to common stockholders at
rate of one preferred share for each 15 common shares
held as of May 5; rights expire May 20.
Price—$50 per
share. Pi oceeds—For
general corporate purposes. Under¬
writers—The First Boston Corp. and Blyth &
Co., Inc.,
April

10

filed

stock

Northwest Plastics, Inc., St. Paul, Minn.
April 18 (letter of notification) 2,100 shares of common
stock (par $2.50). Price—$8.75
per share. Proceeds—To
two

selling stockholders. Underwriters—M. H. Bishop &

Co., Minneapolis, Minn., and Irving J. Rice
St. Paul,

& Co., Inc.,

Minn.

stock (par $1).

Price—$3

per

share.

Underwriter—Carl¬

& Co.,

son

Birmingham, Ala. Proceeds—To expand busi¬
Office—5 South Court "St., Montgomery, Ala.

ness.

Petroleum
Feb.

5

stock

(par

shares
per

Finance

of

of two

$1)

stock

shares will receive

common

Oklahoma

(warrants

exercisable

prior to April 1, 1954).

on or

$5 per share.

60,000 shares of common
30.000 warrants to purchase 30.000

and

common

share

Corp.

of notification)

(letter

one

at

warrant.

Price—

Proceeds—For working capital.

City,

•

New

British

gas

(10 cents per share). Pro¬

wells.

Office—223 Freemont

Office-

Underwriter—George F. Breen,

Okla.

New York.

Pittsburgh Coke & Chemical Co., Pittsburgh, Pa.
March 28 filed 142,129

shares of common stock (no par)
being offered in exchange for 118,441 shares of Great
Lakes Steamship Co., Inc., common stock, held by others
than Pittsburgh Coke, which owns an additional 61,109
shares. The offer, which is on a 1.20-for-l basis, will ex¬
pire on June 4.
Dealer-Manager — Hemphill, Noyes,
Graham Parsons

&

Co., New York.

Statement effective

April 18.

★ Plastic Heel Manufacturing Co. of America
ferred
stock
be

stock

$10)

(par

(no par).

transferred

Oil

Co., Ltd.

the

ment.

underwriter.

Price—To

Proceeds—For

be

supplied

exploration

and

by amend¬
development of

prospective and proved oil and gas lands.

Office-^Cal-

100.200

shares

of

Of the latter issue, 22,600 shares
Plastic

to

Patents, Inc., for

a

pre¬

common
are

to

license of

to be offered first to stockholders of Plastic Patents, Inc.

$10

per

share and for

common,

$1

share; purchasers of preferred may buy one share of
common with each share of preferred.
Proceeds;—To in¬

per

inventory and for working capital.

Corbitt

Ave., University City, Mo.

Office—6821

Underwriter—None.

it Power Condenser & Electronics Corn.
May 2

notification)

(letter of

$285,000

of

10-year

5%

income notes due May 1, 1962, and 11,400 shares of com¬
stock (par $1), to be sold in units of one $1,000 note
and 30 shares of common stock.
Price—$1,000 per unit.

mon

Proceeds—For

Boston, Mass.
Ridlev

(5/21)

and

patent and lease of certain equinment and 64.000 shares

Underwriter—None.

Dominion

$7.50

Each purchaser

Mines

Feb. 15 filed

($5
mining
par

working capital. Office
Underwriter—None.

—

60 State St.,

Holding Co., Grafton, N. D.

100.000 shares of

common

stock.

Price—At

share). Proceeds—For exploration and other
purposes.
Business — Uranium mining. Under¬
per

Statement effective April 3.

writer—None.
Robinson

(J. W.)

Co., Los Angeles. Calif.

April 9 filed 920,573 shares of common stock (par $1)
to be offered for subscription by common stockholders

stock to be offered
Nov. 23,
(approximately 33 in number) for a 30-day period,
with an oversubscription privilege. Unsubscribed shares
to be sold privately to individuals selected by company.
Price—At par ($10*per share). Underwriter—None. Proseeds
For working capital. Business — Department

of

are

share)
will be placed
privately. Financial Adviser—Smith. Bar¬
ney & Co.; New York. Statement effective April
§.
Mercantile

Price—At par

drill oil and

St., Las Vegas, Nev.

to

certificates for 2,434,230
(par $1) and $6,000,000 of 10-

outstanding 1,134.229 shares of

stock.

1,000,000 shares of capital stock (par 40
cents—Canadian) and an additional 150,000 under option

trust

stock

for

crease

Underwriters

program.

April 28 filed

Co.

voting

offered

are

C.

Langley & Co., New York.

*

be

Price—For preferred

common

(par $100).

May 1 filed 1,108,966 shares of

Kuhn,
Ripley & Co., Inc. and The First
Boston Corp., New York.

expansion

Loeb & Co., Harriman

ceeds—To

stock, series B

Under¬

program.

by competitive bidding.
Stuart & Co. Inc.; Smith,

June 10.

on

including

pay

ceeds—For

opened

it Nebraska. Consolidated Mills Co., Omaha, Neb.
April 30 (letter of notification) 21,430 shares of com¬

common

Cement Corp.

★
Long Isfand Lighting Co. (5/28)
April 30 filed 100,000 shares of preferred

bidders:- Halsey,

gage bonds due 1965, and for general corporate purposes,

Proceeds—For

Working capital.
Office—15
Exchange
City 2, N. J. Underwriter—None.
Lone

it National Steel Corp. (5/27)
May 7 filed $55,000,000 of first mortgage bonds due 1982.
Price—To be supplied by amendment. Proceeds—To re¬
deem

Loch-Lynn Gas Corp. (N. J.)
March 5 Getter of
notification) 1,000 shares of

construction

determined

April 30 (letter of notification) 13,600 shares of 5%

of

writer—Blyth & Co., Inc., New York.

For

—

be

★ Northern States Power Co.

com¬

National

common stock
(par $1).
by amendment. UnderwriterSills, Fairman & Harris, Inc., Chicago, 111. Proceeds—
To eight selling stockholders.
Offering—Date indefinite.

Price—To

Proceeds

Peoples Finance Corp., Montgomery, Ala.
(letter of notification) 15,000 shares of common

subscription by preferred and common
National Alfalfa Dehydrating & Milling

one

(no par).

Dec. 19

to be offered for

Co. in ratio of

(5/14)

stock

common

be

Barney & Co.; Equitable Securities Corp.; Union Secu¬
rities Corp.; The First Boston
Corp.; Glore, Forgan &
Co.; Lehman Brothers and Riter & Co.
(jointly); Merrill
Lynch, Pierce, Fenner & Beane, Kidder,
Peabody & Co.
and White, Weld & Co.
(jointly). Bids—Expected to be

Underwriter—None.

Chlorophyll & Chemical Co.
349,000 shares of

necessary.

Corp.

New York.

(par $1) to

tional Alfalfa

'

1982,

★

acquire timber, timberlands and peeler
plant and for working capital. Underwriter—None.

stockholders of

*

Lapaco Chemicals,'Inc., Lansing, Mich.
March
18
(letter of nomication)
200,787 convertible
notes (each note convertible into
$1 par class B stock).
Proceeds

Underwriter—Graham &

and. nine shares are to be offered to three indi¬
viduals in units of three shares each at
$12,500 per unit.

les, Calif.

investment.

an¬

par

April 7 filed

an(#Lester, Ryons &xCo.r>Los Ange¬

and

($10

lease basis and

a

Gas

it Northern States Power Co. (Minn.)
(6/10)
May 1 filed $21,500,000 first mortgage bonds due June
1,

or

200 shares

sale of residential locksets. Underwriters—Paul H.
Davis
& Co., Chicago, 111.,

Price—90 cents each.

Price—At par
on

&

supplied by amendment.
Proceeds—Fot**
construction. Underwriter—The First Boston
Corp.,

held.
cumu¬

Proceeds—For financing of Master TV

of which 191 shares

10 shares

(5/22)
125,000 shares of common stock (par $5),
of which
25,000 shares are being offered by the company
and 100.000 shares
by a selling stockholder.
Price—To
be supplied
by amendment.
Proceeds — For working
capital.
Business—Design, manufacture, assembly and

May 2 filed

.

stock.

systems in apartment houses

stockholders in ratio of

it Kwikset Locks, Inc., Anaheim, Calif.

Price—To

of record June 5

Multnomah Plywood Corp., Portland, Ore.

—

Trust

r;

•

preferred

Electric

April 23 filed 300,000 shares of

to

Proceeds—To

March

common

it Minerals Milling & Mining Corp., Reno, Nev.
April 24 (letter of notification) 300,000 shares of common
stock.
Price—$1 per share.
Proceeds—For construction
and exploration.
Office—139 North Virginia St., Reno,

pre¬

(par $10).

share).

per

York State

Probable

for subscription

Price—$5.25

Angeles, Calif., will be "engaged
public. Statement effective

through lapse of time. Amendment

writers—To

•merr

Los

New York.
common

stock.

Co.vPittsburgh, Pa.
of

r

o

New

new

for additional

Kirby Petroleum Co., Houston, Texas
April 17 (letter of notification) 11,400 shares

,,

Proceeds—For

Montgomery

it Morrow (R. D.) Co., Inc., Pittsburgh, Pa.
May 5 (letter of notification) 10,000 shares of 5%

,,

it Kern Mutual Telephone Co., Taft, Calif.
May 1 (letter of notification) 5,000 shares of 6%

j

333

-

Lehman

on

—

Bids—Expected to be

June 10.

on

denominations."

Office

Francisco, Calif.

bidding.

Lehman

"various

capital.

m

store.

Alta., Canada. Underwriter
York, for part of issue; balance
gary,

Allen & Co., New
by Canadian under¬

—

writers.
•

New

England Electric System

records May

share for each eight
shares held; rights to expire May 26. Price—$12.62Vz per
share.

8

at

rate

Proceeds —For

of

one

construction

program.

Under¬

writers—Blyth & Co., Inc., Lehman Brothers and Bear,
Stearns & Co. (jointly) were highest bidders on May 7.
New

Mexico Jockey

Club, Albuquerque, N. M.
$1,000).

March 17 filed 1,255 shares of common stock (par
Price—At par.
for

Proceeds—To construct racing plant and

working capital.

Underwriter—None, but Dr. Frank

Jan. 4 filed

on

a

pro

100,000 shares of capital

rata basis to stockholders of record

1951

—

Statement

effective Jan.

28.

it Rural Gas Service, Inc., Westfield, Mass.
April 27 (letter of notification) $150,000 of 6% subordin¬
ated convertible debentures due 1962 (37,500 shares of
$1

oar

—For

reserved for conversion). Price—At par. Proceeds

working

capital.

Underwriter

—

Tifft Brothers,

Springfield, Mass.

Continued

on

page

40

40

The Commercial and Financial Chronicle

(1948)

Continued from page 39

it Teller Mining Co., Inc., Renton, Wash.
March 17 (letter of notification) 121,301 shares of com- '
mon stock.
Price—50 cents per share. Proceeds—For de¬

:

Corp., Omaha, Neb.

it Securities Acceptance

May 2 (letter of notification) 10,000 shares of 5% cumu¬
lative preferred stock (par $25).
Price—$26 per share.
Proceeds—For working capital to finance loan business.
Underwriters
&

Cruttenden

First Trust Co. of Lincoln, Neb.;

The

—

Chicago,

Co.,

111.;

Wachob-Bender

and

Corp., Omaha, Neb.

^ Shawmut Association, Boston, Mass.
April 30 (letter of notification) 200 shares of common
stock (no par).
Price—At market (approximately $19
per share). Proceeds—To Walter S. Bucklin, the selling
stockholder.
Underwriter—Paine, Webber, Jackson &
Curtis, Boston, Mass.

Signal Mines, Ltd., Toronto, Canada
of common stock of

March 17 filed 600,000 shares

which

500,000 shares are for account of company.
Price—At'
par ($1 per share).
Proceeds—For exploration and de¬
velopment costs and working capital.
Underwriter—
Securities Ltd.

Northeastern

Under¬
who is
account at $2.37%

share).
Proceeds —For working capital.
writer—Coffin, Betz & Co., Philadelphia, Pa.,

per

this

stock

its

for

own

share.

per

Products Co.,

Sonoco

Columbia, S. C.
•

—

Southern

Union Gas Co.,

Dallas, Tex.

(5/10)

share for each 10 shares
oversubscription privilege); rights to

Price—$17.50 per share.

expire May 28.

Underwriter—

Gas Service Corp.
April 18 (letter of notification) $30,000 of 5%% deben¬
tures, series C, due Feb. 1, 1976. Price—95% of principal
amount.
Proceeds—For working capital.
Office—Mar¬
tinsville, Va. Underwriters—Bioren & Co., Philadelphia,
Pa., and C. T. Williams & Co., Inc., Baltimore, Md.
Southwestern Virginia

Standard

Coil

Products Co.,

Inc.

(par $1),
being offered in exchange for common stock of General
Instrument Corp. on basis of four Standard shares for
each five General shares.

Offer will be consummated if

holders of 85% of General shares tender their stock in

before May 14.
Dealer-Managers—F.
Eberstadt & Co., Inc., and Hirsch & Co., both of New York.
Statement effective April 15.
on

or

it Standard Oil Co. of California
filed

$55,000,000 of interest in the Stock Plan
Employees of company and participating companies,
with

1,000,000 shares of capital stock of the
in which Plan funds may be invested. Under¬

writer—None.

(Ohio)

April 24 filed $2,025,000 interests in the Sohio Employees
Investment Plan together with 30,000 common and 6,750

preferred shares

of

the

company

which

may

be

pur¬

chased pursuant to the terms of the plan.

Stanley Works, New Britain, Conn.
April 22 (letter of notification) 6,000 shares of common
stock (par $25). Price — Approximately $50 per share.
—

per

share).

shares of capital
Price—At market (approximately $25

Proceeds

—

To Union & New Haven Trust

Co., trustee for benefit of Buell Alvord.

working capital. Office—Lake Street,
Conn. Underwriter—None.

„Sun Oil Co.

April 29 filed 13,000 memberships in the stock purchase
plan for employees of company and its subsidiaries, to¬
gether with 96,000 shares of common stock. In addition,
169,262 shares of outstanding stock to be offered "for
possible public, sale" by 11 selling stockholders. Under¬

Underwriter—

Superior Plywood Corp., Crescent City, Calif.
17 filed 1,775 shares of class A
voting common
(par $10), 295 shares of class B non-voting com¬

March
stock

stock

(par $5,000) and 8,980 shares of 6% cumu¬
preferred stock (par $100), of which 1,475 class

A

shares

units

of

and

five

295

class

shares

of

B

shares

class

A

to

be

offered

in

one

of

class

at

are

and

B

$5,050 per unit

(subscribers must surrender $2,500 par
value of Standard Veneer & Timber Co.
preferred stock
in partial payment); 300 class A shares to be
offered
in exchange for Standard common stock on a
share-forshare

basis; and all of 8,980 shares of preferred
for cash at par or in exchange for Standard stock.

stock
Pro¬

ceeds—To purchase site for plywood
and for working capital.
veneer

plant.

plant, to repay loan
Business—Operator of green
Underwriter—Nonet

• Tampa Electric Co.
May 2

filed

ferred

(6/3)

stock

50,000 shares of series A cumulative pre¬
(par $100) and 60,000 shares of common
stock (no par).
Proceeds—To repay bank loans and for
new

construction.

competitive

Underwriters—To be determined by
Probable bidders:
Blyth & Co

bidding.

Inc.; Kidder, Peabody & Co.; Stone & Webster Securities
Corp., Goldman, Sachs & Co.
Bids——To be received upto 11 a.m. (EDT) on June 3 at 49
Federal St., Boston,
•

Mass.




on

May 27 will

stock

common

(par $5)

finance purchase of equip¬

Proceeds—To

•

American

SEC

with

sinking

Gas

on

or

fund

(6/17)

announced company plans to register
about May 21 an issue of $20,000,000

debentures

Torrington Water Co., Torrington, Conn.
(letter of notification) 3,174 shares of capital
Price—At approximately $27 per share.
Proceeds—To Muriel Alvord, et al. Underwriter—Wood,

Traditional

Inc., New York.

Electric Co.

&

company

in

company

1977

addi¬

170,000

and

the operating subsidiaries of the

on

March 18

due

-

stock. Proceeds—To be invested

common

equity securities

stock (par $25).

construction program

Struthers & Co., New York.*

Tri-State Telecasting Corp.,

Chattanooga, Tenn.

filed

21

20,000 shares of common stock (no par)
and 2,000 shares of 5% cumulative preferred stock (par
$100) to be sold in units of one preferred share and
10

shares.

common

equipment

Price—$200

and

unit.
capital.

per

working

Statement effective March

Utah Home

Proceeds—For
Underwriter—

25.

Fire Insurance Co.

April 15 (letter of notification) 10,000 shares of common
stock (par $10) to be offered first to common stockhold¬
ers for subscription.
Price—$20 per share to stockhold¬
ers; approximately $25.75 per share to public.
Proceeds
—To enlarge company's operations as an insurance car¬
rier.
Office—47 West South Temple, Salt Lake City 1,
Utah.

Victoreen

Instrument

used

in

them

by

connection

with

their

which v/ill amount to about $319,000,000 in the three-year period ending Dec. 31, 1954.
Underwriters
To be determined by competitive bid¬
ding.

Probable bidders:

&

Inc.; Blyth & Co., Inc.; First Boston Corp.; Union

Co.

Securities
Bros.

&

Co., Cleveland, Ohio
common stock (par $1),

90,000 shares of

On bonds

—

Halsey, Stuart

Corp.; Harriman Ripley & Co., Inc.; Salomon
(2) On stock—Blyth & Co., Inc. and

Hutzler.

Goldman,
Union

(1)

& Co. (jointly); First Boston Corp.;
Corp. Bids—Tentatively scheduled to

Sachs

Securities

be received

June 17.

on

it American Investment Co. of Illinois
May 5 it was announced directors soon intend to file a
registration with the SEC covering 100,000 shares of
cumulative preferred stock (par $50).
Proceeds—To re¬
pay
bank loans and for general corporate purposes.^
Underwriters—Kidder, Peabody & Co., New York, and
Alex. Brown & Sons, Baltimore, Md.
American Telephone & Telegraph Co.
April 16 stockholders approved a proposal to authorize
a new issue of not to exceed $550,000,000 of convertible
debentures.

Last

issue

debentures

of

stockholders at par without

/,

March 28 filed

and

—-

it Trans-Canada Petroleums, Ltd., Montreal, Canada
May 1 filed 1,000,000 shares of common stock (par $1).
Price—$1.50 per share. Proceeds—For exploration and
drilling. Underwriter—Mallinson Weir, Inc., New York.

Arkansas
March 14 it

of which 60,000 shares will be publicly offered and 30,000 shares to three non-selling stockholders.
Price—To

of

be supplied by amendment.

Power &

was

offered

to

underwriting.

Light Co.

reported company plans sale in October

was

ders:

stockholders.

Proceeds—To certain selling

Underwriters—Barrett Herrick & Co.. Inc.,

New

York, and A. H. Vogel & Co., Detroit, Mich. Offer¬
ing—Expected any day.

it Virginia Electric & Power Co. (5/26)
May 1 filed 494,642 shares of common stock (par $10)
to be offered for subscription by common stockholders
of record May 23 at rate of one share for each 10 shares
held (with an oversubscription privilege); rights to ex¬
pire on June 9. Price—To be supplied by amendment.
Proceeds
For
construction
program.
Underwriter —
Stone & Webster Securities Corp., New York.

^Warren

(Ohio)

April 30 (letter of notification) 3,000 shares of $5 divi¬
dend preferred stock (no par) to be offered to stock¬
holders in ratio of 0.21676 shares for each share already
owned.

Price—At $100 per share and accrued dividends.
To reimburse treasury for capital expendi¬

Proceeds
tures

—

already made.

be

$12,000,000 first mortgage bonds.
Underwriters—To
determined by competitive bidding.
Probable bid¬

Halsey, Stuart & Co. Inc.; Equitable Securities
Corp., and Central Republic Co. GWc.) (jointly); Lehman
Brothers and Stone & Webster Securities Corp. (jointly);
Union

Securities

& Beane;

Corp.; Merrill Lynch, Pierce,

Fenner

Blyth & Co., Inc.

it Atlantic City Electric Co.
April 29 it was reported
company
may
sell about
$4,000,000 of preferred stock some time this Fall.
Pro¬
ceeds—For construction program.
Underwriters—Prob¬
ably Union Securities Corp. and Smith, Barney & Co.,
New York.

Atlantic Refining

Co.

March

Telephone Co.

21, Robert H. Colley, President, said in the com¬
annual report that "the time may be coming
when additional financing will be required to supple¬
ment retained earnings available for capital expend¬
itures." The amount and timing of such financing can¬

pany's

not

be presently

announced.

Smith, Barney & Co., New

Underwriter—None.

Baltimore

RR.

Ohio

&

Traditional UnderwriterYork.
(6/4)

Weisfield's, Inc., Seattle, Wash.
April 17 (letter of notification) 5,184 shares of common
stock. Price—$54.25 per share. Proceeds—For working
capital. Office — 1511 Fifth Avenue, Seattle 1, Wash.

April 23 it was reported company plans issue and sale
of $3,870,000 equipment trust certificates on or about
June 4.
Probable bidders: Halsey, Stuart & Co. Inc.;

Underwriter—None.

Bear, Stearns & Co.;

.

Western

Pacific

"

Insurance

Co.^ Seattle, Wash.

April 21 (letter of notification) 13,018 shares of

common

stock.

writer—None.

lative

tional shares.

tional shares of

For

New Britain,

mon

announced stockholders

from 330,000 to 430,000 shares and on approving a waiver
of preemptive rights.to subscribe for any of the addi¬

April 30

(par $25).

—

Standard Oil Co.

•

Barge Line Co.

was

increasing authorized

on

stock

•

March 17 filed 486,858 shares of common stock

Proceeds

vote

Underwriter—F. Eberstadt & Co.,

Proceeds—For

Underwriter—None.

construction.

company

agreement.

Co., Detroit, Mich.
working capital.

it Torrington (Conn.) Water Co. *
April 30 (letter of notification) 800

None.

together

it American

Pro-1

Lerchen'&

ment and terminal and warehouse facilities.

then held (with an

May 5

writer—Watling

shares,

5% stock dividend. Under--

as a

George R. Cooley & Co., Inc., Albany, N. Y.

new

for

trust

stock to 1,000,000 from 750,000

37,500 shares

ceeds—For additional

April 28 it

under

Office—21 E. Van Bureo

Underwriter—None. Statement effec¬

common

and to issue

it Tobin Packing Co., Inc., Rochester, N. Y.
May 2 (letter of notification) 11,400 shares of common
stock.
Price—$8.75 per share.
Proceeds—To John J.
trustee

Thursday, May 8, 1952

Prospective Offerings
authorized

Trustee under the Plan.

of record April 24 at rate of one

exchange

/

/

'-I-V-

April 18 filed $30,510,000 of participations under the Em¬
ployees Savings Plan together with 526,034 shares of
capital stock (par $25) which may be required by the

Jan.

April 8 filed 166,706 shares of common stock (par $1)
to be offered for subscription by common stockholders

new

New York.

Texas Co.

.

Aeroquip Corp.
Jan. 4, Don T. McKone, Chairman, announced that con¬
sideration was being given to the possibility of equity
financing. On Feb. 18, stockholders voted to increase the

Wood, Struthers & Co., New York.

Hartsville, S. C.
April 15 filed 150,000 shares of common stock (par $5)
being offered for subscription by stockholders of record
March 21 at rate of "slightly in excess of one share for
cich two shares held"; rights to expire on May 17. Price
—To stockholders $16.50 per share and to public^ $17.50
per share.
Proceeds—For working capital. Business—
Manufacture and sale of paper carriers, winding cores,
and other textile specialties. Underwriters—R. S. Dick¬
son & Co., Charlotte, N. C., and G. H. Crawford Co., Inc.,
•

^Tennessee Gas Transmission Co. (5/27)
May 6 filed 100,000 shares of cumulative preferred stock
(par $100) and 250,000 shares of common stock (par $5).
Price—To be supplied by amendment. Proceeds—To re¬
pay short-term notes and for expansion program. Under¬
writers
Stone & Webster Securities Corp. and White,
Weld & Co.,

and lessor of coal properties.

St., Chicago 5, 111.
tive April 16.

.

Office—910 Third Ave.
Underwriter—None.

exploration.

and

(P. O. Box 90), Renton, Wash.

Krez,

it Skiatron Electronics & Television Corp. (5/14)
May 5 (letter of notification) 10,000 shares of common
stock (par 10 cents).
Price—At market ($2.75 to $2.87y2

purchasing

velopment

er

,

Price—$20 per share. Proceeds—To qualify com¬
pany as a multiple line insurance carrier and to increase
surplus. Office—Artie Bldg., 3rd and Cherry Sts., Seat¬
tle, Wash.

Underwriter

Daugherty, Buchart & Cole,

—

Seattle, Wash.
Wisconsin

Electric

Power Co.

April 9 filed 702,486 shares of common stock (par $10)
to be offered for subscription by common stockholders at
rate of

one

share for each five

be supplied by amendment.
program.

shares held.

Price—To

Proceeds—For construction

Underwriter—None.

Worcester County

April 15 filed $4,000,000 first mortgage bonds, series C,
due 1982. Proceeds—To repay bank loans and for new
construction.
Underwriter—To be determined by com¬
petitive bidding. Probable underwriters: Halsey, Stuart
& Co.

Inc.; Kuhn, Loeb & Co. and Union Securities Corp
(jointly); The First Boston Corp.; Merrill Lynch, Pierce
Bids—Expected to be received up to

Fenner & Beane.
noon

(EDT)

16, Mass.

on

May

13

at

petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co. and Lazard Freres & Co. (joint¬
ly); Morgan Stanley & Co.; White, Weld & Co. and
Union Securities Corp. (jointly); The First Boston Corp.
Boston

441

Stuart

Edison Co.

March 28 it

announced company plans to spend $56,-

was

construction program,
would have to be raised from sale
also expected to fund bank loans

000,000 in 1952, 1953 and 1954 for
of

which $32,000,000
securities.

It

is

which will total $8,500,000

(5/13)

Street, Boston

Statement effective May 5.

construction

for next three years calls for the expenditure
of $247,000,000 of which about $81,700,000 will be spent
in 1952. Underwriters—For bonds to be decided by com¬
program

of

Electric Co.

Salomon Bros. & Hutzler.

Bell Telephone Co. of Pennsylvania
Jan. 2 it was announced that company's

for bonds:

by June 30.

Probable bidders

Halsey, Stuart & Co. Inc.; White, Weld & Co.
Co. (jointly); Lehman Brothers;

and Goldman, Sachs &

The First Boston Corp.;

California-Pacific
Feb. 29 it

was

Harriman Ripley & Co., Inc.

Utilities

•

Co.

reported company expects to offer about

debentures within the next two months.
Proceeds will be used to pay for additions and improve¬

$2,000,000 of
ments

to

property.

Traditional Underwriters
Francisco. Calif.

—

First

California Co., Inc., San

•

Canadian

Palmer Stendel Oil

Corp.

Zeigler Coal & Coke Co., Chicago, III.
27 filed 66,125 shares of common stock, to be
offered for subscription by common stockholders at rate
of one new share for each five shares held on April 17;

reported that 1,820,857 shares of common
stock are to be offered for subscription by stockholders
of Palmer Stendel Oil Corp. on a l-for-2 basis. Price—

rights

At par

March

to

expire

on

share). Proceeds—To

May

16.

repay

Price—At

par

($10

per

bank loans. Business—Own¬

April 18 it

was

(25 cents per share).

Co., New York.

Underwriter—Burnham &

[Volume 175

Number 5114

.

.

The Commercial and Financial Chronicle

.

(1949)
•

Central

Bids

of

will be

Georgia Ry.
received up

the office of J.

(5/14)

to

and it is

(EDT)

noon

P. Morgan & Co.

May 14 at

on

Incorporated, 23 Wall

Probable

bidders: Halsey, Stuart & Co.
Inc.; Salomon
Hutzler; Bear, Stearns & Co.

Central

Hudson

Gas

&

Electric

(130,300

shares outstanding) to 225,000 shares to enable
company
to meet future capital
requirements. There are no im¬
mediate plans for sale of any additional

preferred stock.

,March 4 it
Fall

of

reported

was

about

company plans the sale this
first mortgage bonds.
Latest
done privately in March,
1951

$5,500,000

bond

financing was
through Kidder, Peabody & Co.
'Citizens Utilities

April 14 it

was

Co.

announced stockholders will vote

May 13

increasing authorized common stock from 400,000
(par $1) to 2,000,000 shares (par 33M* cents) in
to provide for a 3-for-l
split-up of the present
outstanding 283,729 shares of common stock and to per¬
mit the company to take
advantage of any opportunities
which may develop for
property acquisitions requiring
shares
order

shares.

common

Traditional Underwriter

—Lee Higginson Corp., New York.

Cleveland

Electric

necessary

for the company to sell additional

securities either later this year or
early in 1953.
are to sell either preferred or common
upon

relative

market

the time.

conditions

at

•

was

vv'V'>>/,

Connecticut Light & Power Co.
was

announced that it is

that

Baltimore
Dec. 24 it was stated that
company plans to issue and sell
both stocks and bonds
during 1952 to an amount suffi¬
cient to raise
approximately $22,000,000. Underwriters—
For bonds to be determined
by competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; White, Weld
& Co. and The First Boston

Corp. (jointly); Harriman
Ripley & Co., Inc. and Alex. Brown & Sons
(jointly).
The First Boston Corp., Alex. Brown & Sons
and John C.
Eegg & Co (jointly) handled latest common stock fi¬
nancing, while White, Weld & Co. handled last preferred

Expected in March

or

construction.

new

•

&

was

Offering-

April.

Kansas City Power &
Light Co.

Jan.

announced

Ry.

(CDT) on May 14 for
of $17,000,000 first mort¬
dated May 1, 1952, and

,

•

stock

with

were

several

underwriters.

recently offered to

Feb.

it

6

sell this

was

summer

Stockholders

on

common

a

Underwriters—If stock is
competitive bidding, probable bidders
may in¬
Lehman Brothers; The First Boston
Corp. In
July, 1951, Merrill Lynch, Pierce, Fenner & Beane acted
at

clearing agent for

as

offering of

an

common

stock

to

Georgia Power Co.
Feb.

8

sale

(7/8)

of

it

was

announced

company plans issuance and
$20,000,000 of first mortgage bonds. Proceeds—
For new construction.
Underwriters—To be determined
by competitive bidding. Probable bidders:
Halsey, Stuart
& Co. Inc.; Morgan
Stanley & Co.; The First Boston
Corp.; Lehman Brothers; Kuhn, Loeb & Co.; Blyth &
Co%, Inc. and Kidder, Peabody & Co. (jointly); Shields
&

Co.

and-

Salomon

Bros.

&

Glass

—

Kidder,

Peabody

&

Co.

and

Mitchum,

Tully & Co.

3

April 29 stockholders voted to increase the common stock
by issuing 50,000 additional shares (par $20) at
$60 per

share to stockholders of record that date on
basis of one
share for each 6V2 shares held'
rights to expire May 14.
Underwriters — Watling, Lerchen & Co. and
First of

Michigan Corp., Detroit, Mich.

consider possible
financing.
C. Allyn & Co., Inc.,

Oct. 31

Paso

April
up

24

to

mature

Electric

the

FPC

$2,500,000
not

Underwriters—Probably A.

Chicago, and Bear, Stearns & Co.,

New York.
El

later this month

later

Co.

authorized

in

the

short-term

than

Dec.

31,

company

to

issue

1953.

used to reimburse the
company's treasury in part for
construction expenditures heretofore
made, and to pro¬
vide a portion of the funds
required in the interim to
finance its construction
program for 1952, pending per¬
manent

financing prior to the maturity date of the

Empire District Electric Co.
April 8 stockholders increased authorized

notes.

stock

10%

to 20%. New
connection with the

financing

may

be necessary in

company's plans to spend in the next

three years about
$14,000,000 for
writers
Probably The First
.Walker & Co.
—

new

facilities.

Boston

...

First National Bank of Portland
March 10 stockholders
approved sale
tional shares of common stock

Under¬

Corp.;
',■/ ■

G.

H.

of

200,000 addi¬
(par $12.50) to common

stockholders of record April 30 at rate of
for each five

one

new

share

shares held; rights to
expire on May 29.
Unsubscribed shares would be
purchased by Transamerica Corp., which owns a
controlling stock interest
the bank.

in

Price—$30

capital and surplus.

per

share.

Proceeds—To increase

Underwriter—None.

Florida Power
Corp.
Jan. 11 it was announced that
additional financing will
be necessary to
complete the company's construction
program which is expected to cost
about




$28,000,000

was

Industries

announced

Dallas^

June 2.

Corp., N.

company

Y.
plans to expand its
to register its

authorized

time

stock

dividends

and

the

giving

ous

Gulf Power Co.
it

8

Minabi
of

ble Securities
Corp.; Blyth & Co., Inc.; Kuhn, Loeb &
Co.; Merrill Lynch, Pierce, Fenner & Beane; Salomon
Bros. & Hutzler and Drexel & Co.
(jointly). Bids—Ex¬

about June 24.

Power Co.

construction

Illinois

April 9 it

selling

in

it

Shields &

&

Houston, Tex.

—

was

reported company plans to issue and
an issue of
$8,000,000 first

com¬

board

directors."

Traditional Underwriters

25

stockholders voted

the authorized

plans

on

a

been

made

stock.

common

W. E. Hutton & Co.,

for

National

2 stockholders voted to increase the
indebtedness from $20,000,000 to $50,000,000.

increasing

the

vote

May 21

authorized common stock from 1,(par $100) to 3,500,000 shares (no par)
in order to facilitate
possible future financing by means
of convertible debentures.

390,511

shares

—

authorized

There

are

immediate plans for. sale of any
securities, but com¬
pany may v start using long-term bank loans to secure

Feb.

on

any

Supply Co.

April
no

Nevada

replace depleted
f

of

Inc., New York.

working capital.
privately.

<

issuance

Cincinnati, Ohio, and Blyth & Co.,

working capital instead of relying

-

the

Traditional Underwriters

Illinois Central RR.
April 9 ICC authorized company to issue and sell $25,000,000 4*4% consolidated mortgage bonds, series D,
due 1982, without
competitive bidding.
Proceeds—To
meet 1952-1955 bond maturities and to

announced stockholders will

proposal to increase

stock from

common

have

additional

per

was

—

2,500,000 to 5,0Q0,0G6
shares in order "to prepare
company for the opportuni¬
ties and requirements of the
coming years." No immedi¬
ate

It is expected the bonds will be placed

Painer
Moseley & Co.

and F. S.

National Gypsum Co.
March

(7/1)

on or before July 1, 1952. Price—At
par ($100
share). Proceeds—To repay advances from American
Telephone & Telegraph Co. (owner of 99.31% of Illinois
Bell stock). Underwriter—None.

stock, but it is desirable to have them for
expansion, if and when deemed wise by the

of

Webber, Jackson & Curtis

announced company intends to offer
682,454 shares of its common stock to
shareholders for sub¬

scription

(jointly); Merrill Lynch, Pierce, Fenner
Corp.

Union Securities

common

further

program.

Telephone Co.

Co.

Beane;

•

was

April 10 it

Moroney,

National Cylinder Gas
Co., Chicago, III.
April 24 stockholders authorized an increase in the com¬
mon
stock (par $1) from
1,500,000 to 2,000,000 shares.
Charles J. Haines,
President, said "the company has no
present plans for the issuance of any additional shares

Proceeds—To repay bank loans and for

Bell

Co.,

reported early registration is expected
common stock.
Proceeds—To go to
stockholders.
Underwriter

mortgage
Underwriters—To be determined by
competitive
bidding. Probably bidders: Halsey, Stuart & Co.
Inc^
White, Weld & Co. and Kidder, Peabody & Co.
(jointly);;
Blyth & Co., Inc.; The First Boston
Corp. and W. CL
Langley & Co. (jointly); Equitable Securities Corp. and

stock

Daly Corp.

to

was

November

—

&

Exploration
it

14

of

Roach, President, announced that the

pany's present plans consist of the sale this summer of
about 225,000 additional shares of
common stock
(par
$20), but no preferred stock. Price—At a minimum of
$35 per share net to company. Underwriters
Latest

:

was expected
stock, of which about twopublic and the balance to

bonds.

company plans to issue and
of first mortgage bonds.
Proceeds—For
Underwriters—To be determined by
bidding. Probable bidders: Halsey, Stuart

Feb. 27 T. E.

offered

sell

(6/24)

on or

be

common

Mississippi Power & Light Co.

& Co. Inc.; Coffin &
Burr, Inc.; The First Boston Corp.;
Kidder, Peabody & Co.; Union Securities Corp.; Equita¬

Idaho

reported early registration

March

construction.

pected to be opened

;

.

Beissner & Co., Houston, Tex.

$7,000,000

competitive

industrial

125,000 shares of

certain

stock

Underwriters

announced

was

would

March 21

Cincinnati, O. Previ¬
public financing handled by W. E. Hutton & Co. and

Feb.

was

155,000 shares of

thirds

common

of

large public

a

new

company's employees. Proceeds—To
selling stockholders.
Underwriters—G. H. Walker & Co., New York.

financing in April, 1949, was handled by
Blyth & Co., Inc.; Lazard Freres & Co.; and
Wegener

from $550,000 shares to
750,000 shares and voted to
change the limitation of the unsecured indebtedness
from

increased

or warrants to

common

common

it

April 30 it
of

W. D. Gradison &
Co., also of Cincinnati.

promissory

notes to
Proceeds will be

East

around

it Midwest Pipe & Supply Co.

Traditional Un¬

present stockholders.
—May include Westheimer & Co.,

sell

may

to

rights

new

Drewrys Ltd., U. S. A., Inc.
April 4 it was reported company

stockholders

17.

was

Offering—Expected

Middle

300,000 shares (par $5) to 600,000 shares (par
$7), placing the company in a position to consider from
time

it Detroit Bank, Detroit, Mich.

26

June

on

—

Texas.

stock from

derwriters

be received

(Glenn H.), Inc., Houston, Tex.
reported early registration is expected
of 10,000,000 shares of common
stock. Price—To be sup¬
plied by amendment (probably at $2
per share). Undeiwriter—B. V. Christie &
Co., Houston, Texas.
• Metals &
Chemicals Corp.,
Dallas, Tex. (6/2)
May 1 it was announced company plans registration of
200,000 shares of common stock (par 10
cents). Price—
To be supplied
by amendment (expected at $3 per
share).- Proceeds—For new mill and
equipment and
working capital.
Underwriter
Beer
& Co.,

derwriter—McCormick & Co., Chicago, 111.
Globe-Wernicke Co.
March

Traditional Un¬

to

McCarthy

April 7 stockholders voted to increase authorized com¬
mon stock from
1,000,000 shares (approximately 938,000
shares outstanding) to
1,250,000 shares to provide addi¬

months to

Un¬

determined

-Hutzler

tional stock for future expansion needs.

finance expansion program.

reported company plans to issue and sell

bidders:

March 18 it

Fibres, Inc.

Creameries of America, Inc.
April 14, G. S. McKenzie, President, stated that the com¬
pany may do some long-term borrowing in about two

<

construction.

(6/17)

capitalization in the near future and(jointly);
Union Securities Corp. and
Equitable Securities Corp. / securities with the SEC
preliminary to
(jointly); Harriman Ripley & Co. Inc. Bids—Expected
offering, the funds to be used to build
on July
8.
projects in Israel.
i.\,r'
.

Corp.

April 1 the FPC authorized the company to
acquire addi¬
tional properties at a cost of
$5,598,129 and to build an
additional 69.5 miles of transmission
line at a cost est'
$4,010,200.
It is also planned to spend about
$31,000,00®
in 1952 for additions to
plant.
Previous financing was
done privately.
■*
\

stock without

clude:

Securities

Lone Star Gas Co.

to

requiring preemptive rights.

sold

new

Co.

Bids—Tentatively expected

A

rejected

Union

by competitive bidding.
Halsey, Stuart & Co. Inc.; Kidder,
Peabody & Co. and White, Weld & Co.
(jointly); The First
Boston Corp. and Lehman Brothers
(jointly); Blyth & Co.,
Inc.; Union Securities Corp. and Merrill
Lynch, Pierce,
Fenner & Beane
(jointly); Equitable Securities Corp.

common

expected

April 7

was

derwriters—To be

approximately 530,000 additional shares

stock.

common

is

Proceeds—For

Probable

Public

Utilities Corp.
reported the corporation

and

$12,000,000 30-year first mortgage bonds, series D.

stockholders at par ($5 per share).

General

Hutzler

Kentucky Utilities

April 30 it

O.

50,000 shares

&

(jointly); Equitable Securities Corp.; Lehman Brothers'
and Bear, Stearns & Co. (jointly); Harriman
Ripley Sk
Co., Inc.

Fuse

preferred

of

Bros.

omon

(5/14)
a.m.

Co., South River, N. J.
Burt, President, announced company
discussing the marketing of unsubscribed 5Vz% con¬

total

stock

financing. Underwriters—To be
by competitive bidding.
Probable biddersr
Halsey, Stuart & Co. Inc.; Glore,
Forgan & Co.; Blyth
& Co., Inc. and Lazard
Freres & Co.
(jointly); The First
Boston Corp.;
White, Weld & Co. and Shields & Cd.
(jointly); Smith, Barney & Co.; Kuhn, Loeb &
Co., Sal¬
termined

by competitive bidding. Probable bidders:
Halsey, Stuart
& Co. Inc.;
Morgan Stanley & Co.; The First Boston
Corp.; Salomon Bros. & Hutzler.
28 Nelson

company

and common

May 1, 1982. Proceeds—To be used to refund
certain bonds and notes of
company and bonds of Colo¬
rado & Southern Ry.
Underwriters—To be determined

General

4

announced
that
it
plans to
1952 about
$12,000,000 principal amount first:
mortgage bonds (this is in addition to
present preferrecl

Light Co.

to mature

Jan.

& Co. and The First Boston

Corp.

and sell in

Fort Worth & Denver

presently estimated

Consolidated Gas, Electric Light & Power
Co. of

Proceeds—For

Lynch, Pierce,

(5/14)

announced

derwriters—Morgan Stanley

Kidder,
Fenner &

stockholders.

approximately $11,000,000 of additional capital will
be required
during the latter half of 1952.

Stock sale.

Merrill

proposal to authorize issuance of

announced company expects to enter the

permanent financing market about the middle of 1952
with 150,000 to 200,000 shares of new
common stock. Pro¬
ceeds—For construction
program.
Underwriter—Dillon
Read & Co., Inc., New York.

March 1 it

and

was

bank will issue and sell
$56,000,000 of 23-year bonds about
the middle of May. Un¬

agents.

as

Bids will be received until 11

of

Columbus & Southern Ohio Electric Co.
March 7 it

April 29 it

stockholders will vote May 12
approving the creation of an issue of up to 350,000
shares of preferred stock (par
$100), to be sold from time
to time to finance the
company's construction program.
Traditional Underwriter—Merrill
Lynch, Pierce, Fenner
& Beane, New York.

Present

stock, the

depending

Co.

Power

April 16 it

vertible

Illuminating Co.

plans

choice

&

acting

International Bank for Reconstruction and

Development ("World Bank")

a

on

is

April 22, Elmer L. Lindseth, President, announced that
it will be

Beane

the purchase from the
company
gage sinking fund bonds to be

on

the issuance of

Company has borrowed $4,000,000 under

$10,000,000. Pre¬
financing was done privately. Common stock
be offered to common stockholders, with

Peabody

Corp.

March 25 stockholders voted to increase authorized
pre¬
stock
(par $100) from 150,000 shares

•

stock and first mort¬

vious bond
may

Florida

ferred

capital needed will be

new

common

bank credit recently arranged which
provides for shortterm bank borrowings of not more than

company

Bros. &

bonds.

gage

St., New York, N. Y., for the purchase from the railroad
of $2,325,000 equipment trust certificates to be
dated May 1, 1952, and to mature in 15
equal annual
instalments of $155,000 each from 1953 to
1967, inclusive.

contemplated that

obtained from the sale of

41

Natural

Gas

Nevada
8

Pipe

on

Line

short-term loans.

Co.,

Las Vegas*

applied to FPC for authority to con¬
pipeline from near Topock, Ariz., to
Vegas, Nev., at an estimated cost of $2,400,880, to
be financed by sale of $1,600,000 first
mortgage bond's,
$500,000 preferred stock and $402,500 common stock.

struct

company

a

114-mile

Las

'

:

r

;

n

Continued on,page42

The Commercial and Financial Chronicle

(1950)

42

Jan. 11 company

bank

authorized

received from SEC authority to increaw
borrowings from $12,000,000 to $10,*

A major portion of this indebtedness may be
financed through issuance and sale of $7,500,000 first
000,000.

bonds this year and the sale of additional
stock to parent (New England Electric System).

Mortgage
common

Underwriters—For

bonds,

rill

der, Peabody & Co.; Union

England Power Co.

New

be

to

by com¬

determined

Lynch, Pierce, Fenner & Beane

sion

Oct.

17

for

Philco

June

6

;

Potomac

Indiana P. S. Commission authorized the com¬

17

diate

Gas Co.

the

$92,000,000.
UnderwriterFinancing—Not ex¬

•

Scott

to

No imme¬

program.

commoii stock

part, by the

common

of

preferred

stock

Bankers Offer

Statement

An

underwriting group headed
jointly by The First Boston Corp.
and

May 5
sell

(EDT)

12

Halsey, Stuart &

Offering $64,239,000

Co. Inc.

Chicago

is

and

Western Indiana RR. Co. first col¬
lateral trust mortgage 4%% sink¬

ing fund bonds, series A, due
May 1, 1982. The bonds are priced

made

during

at rate of

betterments

and

Indiana's
those
Co.

of

issue

to

the

Chicago.

of

series

was

and

to

be

additions

the

including

Belt Railway

authorized

bonds

will

be

at 102.10% and accrued interest.

funding mortgage bonds, series D,

Proceeds from the sale of the
series A bonds will be used to
pay

now

at

maturity $50,000,000

amount

of

consolidated

principal
mortgage

4% bonds due July 1, 1952; to

re¬

deem $11,739,000 principal amount
of

first

and

refunding mortgage




term

pledged
bank
for

to

loan

secure

of

additions

a

short-

$622,820,
and

in¬

better¬

ments, which will be paid off from
the proceeds of the series A bonds.
The

SEC authority to issue and

one

stock

common

by

share for each

new

by

(par

$5)

on

stock,

June 11.

State

Street Trust

Price—At

Co.,

par

v

($1

>

]

that company is considering plans to
$4,500,000 from the sale of additional com¬

and

other

funds

to

take

care

of

proposed

program.

authority to make
borrowings of $40,000,000, the proceeds to be used
to finance, contemporarily, in part, the comoany's con¬
struction program. Permanent financing expected later
this year.
Probable bidders: (1) For stock or bonds:
bank

$76^,000 series A bonds so

&
&

Co.,
Co.

Inc.; Smith, Barney & Co.. and White,
(jointly); W. C. Langley & Co. and.The
(jointly); (2) for bonds only: Halsey,

held.

Price

Proceeds—To increase

company.

subsidiaries in furtherance

Regular
bonds

redemption
be made

may

at

prices from 106V8% to

their

of

of

the

par.

104%% to

Exch.

CHICAGO,

par.

Committee

of

the

Executive

Midwest

Stock

Exchange has elected to member¬
ship the following:
H. Gerald

Nordberg, Blair, Rol¬
lins & Co., Inc., Chicago, Illinois;
John
F.
Egan, First
California

FT.

-

issued
-

as

funds

are

Managers—Harris,

needed for

Illinois;

issued will be held in the treasury

William P. Sullivan,

of Western Indiana.

Brooks

and

Sullivan-

Co., Inc., Wichita, Kahsas.

construction. Dealer-

new

Hall & Co.

(Inc.), Chicago, 111., and

The First Trust Co. of Linclon. Neb.

New

York

Stock

Exchange firm

of

WORTH, Tex.—Miss Mil¬
Guinn, leading woman * in¬

Chase, Meyer, Barnett & Com¬
pany.
He was a director of the
Atlantic

Danville

&

Railway

in

Southwest, has become an as¬
o f
Eppler, Guerin &
Turner, and will head the organ¬
ization's Fort Worth office, 1417

A. G. Edwards & Sons, members

and

securities dealer

the

sociate

In New

Quarters

of the New York Stock Exchange

Sinclair^ Building.

Miss

and

other

principal

exchanges,

Guinn, is Mrs. Pierre Mire
in private life. Mr. Mire also is in

haVe moved their New York off ice-

the

to

investment business.

quarters at 501 Lexington

new

Avenue. This office will be under
the

Elected Director
■.

ed

a

ways

director

of

Pittsburgh Rail¬
a

partner of the

of

Gordon

D.

Louis.

Branch

Clayton,

Texas;

Sto$t,

partner.

The firm's main office

in

Company.

Mr. BarnetUis

direction

resident

Harold Barnett has been elect¬

Chicago,

7

Company which he helped to re¬
organize.
*
* ;;
"

dred

Company, San Francisco, Califor¬
nia; Paul E. Allison, Faroll &
Company

.

Western Light & Telephone Co., Inc.
April 11 stockholders increased authorized common stock
from 400,000 to 500,000 shares, the additional shares to be

Eppler, Guerin Firm
.

;

•

-

Mildred Guinn Joins

Sink¬
range

Members

ill.—The

'

con¬

vestment

Midwest

Stuart & Co. Inc.

receding

ing fund redemption prices
downward from

?

and to

common stockholders
16 shares

Western

$65,000,000, of which $761,000
principal amount of first and re¬

curred

on

$6,000,000 expansion

not underwritten.

Underwriters—To be determined by
competitive bidding. Probable bidders: Lehman Brothers;

The
A

rights

common

Jan. 9 company applied to the SEC for

struction programs.

properties,

leased

requested

shares of

investments in

for

to

of

First Boston Corp.

—To be later fixed

made

1952

1

v

announced stockholders of record. April

reported

loans

bank

Probable

Weld

offer such stock for subscription

$4,500,000 of

heretofore

Watch Co.

on

Power Oo.

financing in 1951

company

1,004,510

bonds, series D, on Sept. 1,
1952, at 102% %; and the balance
will be used for capital expendi¬
tures

by competitive bidding.
(1) For bonds—Halsey, Stuart & Co.

(5/22)

Southern Co.

4%%

& Weslern Ind. RR. Bds.

con¬

Washington Gas Light Co.
Jan.

April 4 it was announced stockholders will on May 9
vote on increasing the authorized common stock from
750,000 shares (no par) to 1,000,000 shares (par $7.50).

by competitive bidding. Probable

Chicago

to

up

the money for new

Washington Water Power Co.

Underwriters—For bonds and preferred

stock to be determined

;
•

determined

Rights Will expire

r

Southern Colorado

stock (the latter issue to parent, General Public

Utilities Corp).

5-

'

plans to spend

and

borrow

to

company
use

Boston, Mass., is subscription agent.
per share).
Underwriter—None.

Halsey, Stuart & Co. Inc., Salomon Bros. & Hutz¬
ler; Bear, Sfearns & Co.

sale of about $9,000,000 first mortgage

$4,500,000

•

May 5 to subscribe for addj-^
(represented by voting
certificates), at the rate of one new .share for each
three shares held (with an oversubscription privilege).

a

biddes:

$26,000,000 for expansion in 1952, to be financed,,

bonds,

be

was

shares

Blyth

in

i
'

h

Light Co.

authorized

24 will be mailed

from

to mature in 30 equal semi-annual instalments.

•

company

'

•

mon stock to its stockholders
(there are presently out¬
standing 734,400 shares). Underwriters—The First BosMay 22 for
ton Corp. and Johnston, Lemon & Co. handled the offer¬
the purchase from the company of $15,000,000 equipment
trust certificates, series L, to be dated June 1, 1952 and ing last year to stockholders.
Proceeds—Together with

Pennsylvania Electric Co.
that

'

•

trust

stockholders approved

Common stock

announced

Pipe Line Corp.

bank loans from
of permanent financing in the fall. Under¬

Waltham

April 25 it

$25,000,000.

"

was

Co.

ney & Co. (jointly); Kidder, Peabody & Co. and Merrill
Lynch, Pierce,Fenner & Beane
(jointly); Lehman
Brothers; The First Boston Corp. Registration—Of stock,
probably in August, and of bonds in September.
"

(6/17)

tional

Bids will be received up to noon

effective March 12.

it

&

is intended to repay the

It

raise about

5% sinking fund debentures due
Jan. 1,
1968 (in denominations of $100 each); 5,000
shares of 6% cumulative preferred stock (par $100) and
60,000 shares of common stock (par $1) to be offered in
units of $100 of debentures and two common shares or
one share of preferred and two common shares.
Price—
$102 per unit; debentures and preferred stock may also
be purchased at face value separately.
Proceeds—For
new construction
and equipment.
Business—Softboard

about

W. C. Langley

Barney

White, Weld & Co.; Lehman Brothers and Bear,
Stearns & Co.* (jointly); The First Boston Corp. and
Blyth & Co., Inc. (jointly); Union Securities Corp. and
Smith, Barney & Co. (jointly); Salomon Bros. & Hutzler;
Kidder, Peabody & Co. (2) For common stock—Blyth
& Co., Inc., W. C. Langley & Co. and Glore, Forgan &
Co. (jointly); Union Securities Corp. and Smith, Bar¬

The coftipany said it will announce later
any plans for future financing.
Underwriters—Drexel
& Co.;
Merrill Lynch, Pierce, Fenner & Beane; and
Smith, Barney & Co.
;

filed $2,500,000

Jan. 5

when about 400,000
Probable bidders:

Inc.;

shares to

1,280,000

Paper Co.

• Seaboard Air Line RR.

Underwriter—None.

SEC

the proceeds

proposal to increase
3,000,000 to 5,000,000
shares, and the authorized indebtedness from $4,000,000

Oregon Fibre Products, Inc., Pilot Rock, Ore.

plant.

1952,

Corp., New York.
'»

Power &
7

struction,

was

the authorized

Securities

writers—May

from

Gas

$10,000,000 from banks and

$40,000,000 of

was

hardboard

late

reported company plans issuance

was

'

Utah

planned.

is

it

.

March

be determined

reported company plans sale of pre¬
ferred stock (par $50). Proceeds—For construction pro¬
gram.. Underwriters—To be determined by competitive
bidding. Probable bidders: Kuhn, Loeb & Co., Harriman
Ripley & Co. Inc. and Lehman Brothers (jointly); Stone
& Webster Securities Corp.; Shields & Co.

and

to

1952

*

reported company plans to issue and sell
debentures due 1972.
Underwriters—To
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley?,- & Co.,.
Drexel & Co. and Glore, Forgan & Co. (jointly); Kuhn,
Loeb & Co.
Bids—Expected about June 17.

April 28 it

April 24

1

expects

company

stock is anticipated.

Probable bidders:

diversification

with

14

Webster

&
"

r

proposal to increase

Public Service Electric & Gas Co.

•

Oklahoma Natural Gas Co.

Feb.

the

and
sale this Fall of an issue of convertible preferred stock.
Underwriters—Probably White, Weld & Co. and Stohe

<

Inc.

stock

common

financing

pected until after Provincial elections in April.

it

before

common

Transcontinental
March

Traditional Underwriter—
Kuhn, Loeb & Co., New York.

Morgan Stanley & Co., New York.

14

contemplated

announced company

President,

Dunn,

stockholders approved a

connection

in

filed amended application with FPC in
connection with its plan to build a natural gas trans¬
mission system in the Pacific Northwest to transport
gas from Canada to markets in Idaho, Washington and
Oregon, with a portion to be returned to Canada for use

April

Co.

reported that

was

Merrill Lynch, Pierce, Fenner & Beane;
& Co.; Lehman
Brothers and Smith,

•

3,280,000 shares (1,045,500 shares presently outstanding).
The new shares would be issued when directors decide,

Jan. 7 company

approximately

R.

authorized

the

$21,000,000 in 1953. Underwriters—Central Republic Co.
(Inc.), who arranged private placement.

is

Co., New

&

" \

"

1952,

April

bonds, series G. Proceeds—For construction proestimated to cost about $20,000,000 in 1952 and

project

Underwriter—Kidder, Pea¬

Electric Power Co.

R.

Pressed Steel Car Co.,

The estimated overall cost of

\

-

Blyth & Co. Inc. (jointly); Dillon, Read & Co. Inc.;
Harriman Ripley & Co.. Inc. ;
/
V-'/.-j;..'.y

Public Service Co.

Columbia.

it

20

shares of

and

to issue and sell this year $10,000,000 of first mort¬

in British

\

./

•.

is

expenditures.

Lynch, Pierce, Fenner & Beane, White, Weld & Co. and
Salomon Bros. & Hutzler (jointly); Kuhn, Loeb & Co.

Hutzler.

gage

$184,989,683.

to 1955, and it has been stated that no further financing

indebtedness to

in

increase

1953 and 1954. Probable bidders: Halsey,
Stuart & Co. Inc.; Lehman Brothers, Stone & Webster
Securities Corp. and Union Securities Corp. (jointly);
First Boston
Corp.; Kidder, Peabody & Co., Merrill

be determined by competitive bidding. Probable bid¬
Halsey, Stuart & Co. Inc. (bonds only); Kidder,
Peabody & Co.; Smith, Barney & Co.; Union Securities
Corp.; Carl M. Loeb, Rhoades & Co.; Salomon Bros. &

Northwest Natural

16,

years

ders:

,

an

plans to raise about $40,000,000 of new money in connec¬
tion with its $62,000,000 construction program in the

was

pany

cost

(jointly).

<7fro

:gram

announced that stockholders will vote

was

authorizing

York.

Power & Light Co.

Northern Indiana

it

on

to

spend approximately $46,500,000 for expansion in

$25,000,000, the funds to be used for capital
Traditional Underwriter — Smith, Barney

reported company plans tentatively to
issue and sell $3,200,000 of bonds, $1,000,000 of preferred
stock and $400,000 of common stock (latter to be sold to
General Public Utilities Corp., parent). Underwriters—

March 14,

Corp.

March 31

Vice-President, said a perma¬

April

it

Co., Houston, Tex.

company

Toledo Edison

Corp.; and Glore, Forgan & Co., both of New York.

ties

will have to be undertaken ir
1952 to repay about $43,000,000 short-term bank borrow¬
ings. Underwriters—For bonds may be determined bj
competitive bidding. Probable bidders: Halsey, Stuart A
Co. Inc.; Morgan Stanley & Co. In case of common stock
financing there will be no underwriting. -

April 8

Alabama,

body & Co., New York.

Probable underwriters
convertible notes and stock; Stone & Webster Securi¬

estimated cost of $58,180,000.

an

program

New Jersey

its

areas.

mated

April 1 company applied to FPC for authority to con¬
a 384-mile pipeline system from west Texas and
Panhandle area of Texas at

England Telephone & Telegraph Co.

20, F. A. Cosgrove,

Gas

into

gas

expan¬

applied to FPC for authority to con¬
struct a 1,350-mile natural gas transmission line extend¬
ing from Texas into West Virginia. The project is esti¬

Nov.

nent financing

natural

Georgia and Mississippi service

»

$76,000,000

a

struct

(jointly).

Dec.

bring

to

program,

7 7

filed with FPC

company

eastern New Mexico to the

Fenner & Beane; Harriman Rip¬
ley & Co., Inc.; The First Boston Corp.; Kuhn, Loeb &
Co.; Union Securities Corp. and Salomon Bros. & Hutzlei
(jointly); Kidder, Peabody & Co. and White, Weld & Co
Merrill Lynch, Pierce,

New

(jointly); Blyth &

Natural Gas Co.

Southern
March 3

Pipeline Co., Chicago, III.

Permian Basin

Thursday, May 8, 1952

.

Co., Inc.; Union Securities Corp. and Equitable Securities
Corp. (jointly); Harriman Ripley & Co. Inc. v

Texas-Ohio

petitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; Lehman Brothers; Blyth & Co., Inc.; Equitable
Securities Corp. and Blair, Rollins & Co. Inc. (jointly);

.

Morgan Stanley & Co.; Kidder, Peabody & Co. and Mer¬

Kid¬
Securities Corp. and White
Weld & Co. (jointly); Kuhn, Loeb & Co.; A. C. Allyc
& Co., Inc.; Equitable Securities Corp.; Shields & Co
and R. W. Pressprich & Co. (jointly). (2) for preferredSmith, Barney & Co. and Kidder, Peabody & Co
(jointly); W. C. Langley & Co. and Glore, Forgan & Co
(jointly); Kuhn, Loeb & Co.; Lehman Brothers and
Salomon Bros. & Hutzler (jointly); Harriman Ripley &
Co., Inc. Offering—Expected in mid-year.
(1) for bonds—Halsey, Stuart & Co. Inc.;

bidders:

41

Continued from page

.

and

offices

are

is

in

$t.

located

Missouri;
Houston,
Springfield, Illinois.
.

"

Number 5114

Volume 175

.

.

The

.

Commercial and Financial Chronicle

issue, aided by the high rating of
credit

Bell
taken

generally, being well

appeal

largely to institutional

buyers.

investors.

by

(1951)

Crane

Co.'s

$20,000,000

The successful syndicate put a
reoffering price tag of 102.824 on

25-year debentures is

the

the

debentures

yield of 3.11%
in

for

to the buyer,

of resistance

spite

indicated

an

and

which

de¬

well.

Good

Ahead

continues

there
the

reveal

to

powers of

tremendous

absorption

are

secondary
toppy.

is

market

of

that

just

a

to

Both

of

naturally

the

in

the

parlance

the

Street, but by and large new
undertakings have been moving

out

of

Underwriters

terday to

performances which
scale

operation

with

rush

a

scheduled

to

reach

underwriters

and

sees

the

better
wares

than

is

volved

briskly

sizable

sought

after at

major

undertaking

on

tap

for next week is Firestone Tire

a :

year

&

Co.'s

Rubber

premium.

$75,000,000 of 25debentures slated to reach

market

Union

Oil

Other

California's

of

Co.

Issues

Provided

3V6% convertible debentures, with

there

present

plans

in

Ahead

is

are

the

offering

deal, the price of 100
the

as

saying

and

goes,

will bring out another
Interna¬
"right,"; tional
Bank
for
Reconstruction
demand and Development (World Bank)

intense to put it mildly,

was

Subscription

-

was

open

r-eports. of

ding
the

much

as

books

flotation of

$50,000,000 which will

bid-:

12-month

then

$25,111,659.

being separately operated in
Texas

west

and

and in the Fort Worth

Worth,
cities

in

center

the

of

one

the

financial,

marketing

distribution

•.

_

.

and

of

Wichita River Oil

trade
by the

electricity.

Area

Corporation
A

dividend of Ten Cents
(10^)
will be paid on July 7, 1952 on the

per

share

new

$1.00

value Common Capital Stock of the Cor¬
poration, to stockholders of record at the close
of business June 6, 1952.
par

Joseph F. Martin,

has

company

an

May 1, 1952.

President

estimated population of 783,000.

DIVIDEND

£sso

NOTICES

series

and

group's bid
award

of

Atlas Corporation

petitive sale
Proceeds

bonds

33 Pine

at

at

won

be

Tuesday.

on

from

the

sale

of

applied

by

the

the

A regular quarterly dividend of 40d
share has been declared, payable
June 20. 1952, to holders of record

A.€. MINTON, Secretary

per

company

to its construction program

it is

has this day declared a cash dividend on the
capital stock of $1.00 per share, of which $.75
per share was designated as regular and $.25 per
share as extra, payable on June 12, 1952, to
stockholders of record at the close -of businesl,
three o'clock, P. M., on May 12, 1952.

Common Stock

on

bonds, together with other funds,
will

(Incorporated in New Jersey)

Street, New York 5, N.Y.

Dividend No. 42

com¬

the close of business

at

which,

1952

COMPANY

OIL

STANDARD

interest.

101.49%

of

the

1982

due

accrued

the

The Board of Directors of

Texas

of

May 1, 1952.

May 23,

on

the Common Stock of Atlas

on

•Corporation.

estimated, will cost $19,560,-

Walter A.

Continued

from

page

Peterson, Treasurer

i3>

8

*

'

■

Western

&

cago

TECHNICAL OIL

Indiana

Rail¬

linking fund, 30-year

a

would give

good

while

that

this

command

issue

such

an

Missouri

suggested

might not
impressive

in the

tures, it had all. the
"hot"

New

N.~

J.

Bell

was

Telephone

per

with

a

top

bid

not

was

ingly,

that

Ohio

accord¬

this

Match—Highlights—Troster,

Electric

Oxford

Singer

Also in the

&

same

Co., 74 Trinity
bulletin is data

Corporation—Analysis—Republic

Investment

Petroleum—Analysis—Walston Hoffman &
265 Montgomery Street, San Francisco 4, Calif.

Riverside

Cement

Industry—Lerner

unlisted experience, main¬
taining markets and servicing sales¬
men. Salary and percentage desired.
yaars

Commercial and Financial

Chronicle, 25 Park Place, New York 7.

Mass.

NOTICE

Goodwin,

MEETING

-

Standard Oil Company
ard

Oil

Company,

(New Jersey)—Annual Report—Stand¬

Room

Rockefeller Plaza,

1626, 30

New

'

York 20, N. Y.
Transcon

Lines

Twist

—

Drill—Data—Raymond

&

1952,
per

the meeting of the Board of Directors
May 6th, 1952 the Directors authorized a

stockholders of record at the
close of business on June 2nd, 1952 of one

distribution
of

to

previously unissued capital stock of

the par value of
share of capital

'J en Dollars ($10) for each
stock then issued and out¬
standing. It is expected that this stock dis¬
20th,

be effected

will

or

on

about

1952.

Albany, N. Y., March 25,

the Stockholders of
Central Railroad Company, for
:he election of Directors and of three Inspectors
)f Election and the transaction of such other
jusiness as may be lawfully brought before the
meeting, will be held in the Ball Room of the
Hotel Ten Eyck, 87 State Street, in the City of
Mbany, N. Y., on Wednesday, May 28, 1952,
it 12:00 o'clock Noon, Eastern Daylight Saving
...

of

ddering,
oint

the

purposes

of said

&

WILLIAM T. SMITH,

meeting is

and conditions set forth in said agreement,
may

be

appro¬

priate incident to such merger.
Stockholders

April 25.

of

record at

3:00 o'clock

P.M.

1952, will be entitled to vote at

meeting..

By" order of the Board of Directors.

JOSEPH M. O'MAHOXEY, Secretary.




sixty-five cents (65tf)
the Capital Stock of

on

Company has been declared this

day, payable

on

June 10, 1952, to

stockholders of record
of business

stock

transfer

at

the close

May 9, 1952. The

on

books

will

remain

open.

Robert Fisher
Treasurer

Treasurer

SERBOHRB

Company, Inc.—Analysis—Van Alstyne, Noel

Hentz & Co,, 60 Beaver

Street, New York 4, N. Y.

FINANCE

COMPANY

THE FLINTK0TE COMPANY
COMMON STOCK DIVIDEND
69th Consecutive

Finance Co. declared

N.Y.

PLAZA

Quarterly Payment

The Board of Directors of Seaboard

NEW YORK 20,

30 ROCKEFELLER

a

regular

quar¬

terly dividend of 45 cents a share on
payable July 10,1952 to
stockholders of record June 19, 1952.

Common Stock

NSTA

Notes

dividend of $1.00 per

quarterly

A

has

share

con-

of West Shore Railroad Company, New
fersey Junction Railroad Company, New York
ind Fort Lee Railroad Company, The Wallkill
galley-Railroad Company, The Toledo and Ohio
Central Railway Company. The Lake Erie, Allimce
& Wheeling Railroad Company and The
Federal Valley Railroad Company, upon the
as

share

N. Y., May 6th, 1952.

been

declared

the

on

Preferred Stock
16, 1952 to stock¬

PREFERRED

$4 Cumulative

payable

pany

taking such other action

per

April 22, 1952

Co., 52 Wall Street, New York 5, N. Y.

agreement

terms

A dividend of

Co., 148 State Street,

acting upon the adoption of, a
for the merger into said Com¬

and

199thConsecutive Dividend

June

1952.

Meeting of

■

One

1952

THE TEXAS COMPANY

At
on

Hie New York

rime.

TutOoidtyyowv)
190aII

the

tribution

Memorandum

Morgan & Co., 634 South
Spring Street, Los Angeles 14, Calif.
—

Westmoreland Coal Co.—Analysis—H.

OF STOCKHOLDERS

Annual

Chicago 3, Illinois

No. 93

a dividend of ONE DOL¬
share was declared on the
1,329,115 shares of the Capital Stock of
Newmont Mining Corporation now outstand¬
ing, payable June 13th, 1952 to stockholders of
record at the close of business May 29th, 1952.
On
May 5th, 1952, the stockholders of
Newmont Mining Corporation voted in favor
of increasing the authorized capital of the cor¬
poration from $13,500,000 to $27,000,000,
represented by 2,700,000 shares of capital
stock of the par value of Ten Dollars ($10)

On May 6th,
LAR ($1.00)

each.

Co.—Analysis and review of the Cement
& Co., 10 Post Office Square, Boston. 9

■

Walter Kidde &

The

Tripp
President

Boston 9, Mass.

Central Railroad Company

NOTICE OF ANNUAL

1952.

Corporation

New York,

The New York

195 2
record

Newmoiit Mining

share

Union
MEETING

of

Chester D.

135 S. LaSalle Street,

Dividend

Phillips

Trader Available

B 51,

income,

31,

May 5, 1952

Street, New York 5, N. Y.

Company, Inc., 231 South La Salle Street, Chicago 4, 111.

Box

May

May 15,

MILLER

A.

Secretary-Treasurer

Corp.

Time, Inc.

on

SITUATION WANTED

10

payable

to shareholders

Drexel & Co.,

Company—Analysis—Stanley Heller & Co.,
Pine Street, New York 5, N. Y.

30

was

found

dealers

payable June 14,

WILLIAM

Corporation-r-Bulletin—L. H. Rothchild & Co.,

Place, New York 6, N. Y.

surprising,

Mississippi River Fuel

Norwich Pharmacal

102.174 for 3V4s.
It

Wall

52

bid from the
difference of only

The

and

—

dividend of 1 5c per

share from investment

the

stockholders of record

Arkansas Natural Gas Corp.,

on

a

quar¬

May 21, 1952.

Service Co.—Analysis—Ira Haupt & Co.,
Broadway, New York 6, N. Y.

Newport Steel

$100 sepa¬

about four cents in the bid of the
runners-up.

Company,
Company

stock

clared
a

cents on

England Lime Company—Analysis—Dayton Haigney &

Ill

winning

rating the
lowest

cents

data

to

Television-

New England Public

Bell Telephone Co.'s $20,000,000 of 32-year debentures, with
15

1952,

of

Co., Inc., 75 Federal Street, Boston 10, Mass.

close for New Jer¬

sey

less than

are

Special Report
Walnut Street, Philadelphia 1, Pa.

1500

one.

Bidding

bulletin

Edison

National Supply

earmarks of

common

Co.—Data—Oppenheimer, Vanden
Co., 40 Exchange Place, New York 5, N. Y. Also

same

Boston

premium as the Union Oil deben¬

&

N. Y.""•

Railroad

Pacific

Broeck

terly dividend of 30

Directors

Electronics Fund, inc. have de¬

Dividend No. 60

Company—Analysis—Kidder, Peabody & Co.,

Wall Street, New York 5,

17

14th Consecutive Dividend
The

The Directors have declared

McGraw Electric

ac¬

/

inquiry

SERVICES

COMPANY

Recommendations & Literature

count of themselves.

Preliminary

FIELD

LANE-WEILS

bonds, due

out* today,

luch

NOTICES

May 2, 1952.

over*

road's $64,239,000 of first collateral

>n

DIVIDEND

largest

served

area

the

by

$31,686,266, against*

State, is the normal

the

of

were

Fort

area.

four

$5,444,444 in the preceding
period; total operating

Texas

company.
With its general offices
located in Fort Worth, the public
utility is engaged in the genera¬
tion, purchase, transmission and

Although not, perhaps, as specr
tacular, it was indicated that Chi¬

ind

a

for

offering price for the deben¬

tures.

a

Co.

company's net income

with

were

points

two

as

,

Service

organized in 1929 to bring
together in one unit properties

not

were

long and: there
potential buyers

very

v

$8,000,000

3V4%

bonds,

week

new

20-year maturity. A negotiated

at

Electric

The

the 12 months ended Dec.
31, 1951,
amounted to $6,528,068
compared

was

Electric Service Co. first mortgage

the

revision

no

$25,175,000 for

subsidiary of Texas Utilities Co.,

Electric Service Bds.

101.931%

Tuesday.

on

and

Kuhn, Loeb & Co., Blyth & Co.
Inc., and Lehman Brothers, jointly

The
Bankers brought out $35,000,000
of

&

Bankers Offer Texas

the

under competitive bidding.

Texas

served

opportunity

their

know

The

security in¬

Power

financing since it provides the

case

through

comprised of

are

new
common; the Elliott Co.,
120,000 shares of preferred; Iowa

partial to this type

are

with

large-

a

carried

and

offerings

dealers

of those spectacular

one

offerings

utility

list for bids, but other

that

sponsors

treated yes¬

were

small

of

next

least eight

1952

northwest

equities,
with
Food
Machinery
Corp. due to market 300,000 shares

to

quickly for most part.

'

$17,000,000

on

Light, 226,928 shares of
period will be of
common; and Lion Oil Co. 400,000
negotiated variety.
shares of common.
in

market

prove

True, occasional issues
"workers"

the- deals

at

Rail¬

Denver

for

calendar

discloses that

&

corporate

the

of

offering

new

trifle

be

run-down

week

though

even

indications

some

A

schedule

date that

bids

open

the

on

sizable

"

The corporate new issue market

will

Several
are

Week

Worth

on

of bonds.

veloped to such returns this issue
moved out

Fort

of

same

Wednesday, the

way

for

1953.

And

for

000

4^

June

holders of record

May 29,

ness

CLEVELAND SECURITY TRADERS ASSOCIATION
The

Annual

Association

was

Spring party of the Cleveland Security Traders
held April 30 at the Allerton Hotel.

A high-light of the
meeting occurred when "oldtimer" John P.
Witt, John P. Witt & Co., was presented with a golden hour clock.
A citation accompanying the
clock, signed by 90 members, read,
"... to record 1,000,000 golden hours in your future."
Photographs taken at the party, which appear elsewhere in

today's issue of the "Chronicle,"
Prescott & Co.

were

taken by Corwin Liston of

at the close

share

has

of busi¬

1952.

quarterly dividend

A

been

of $.50 per

declared

the

on

Common Stock payable June 10,
1952,
the

to

close

stockholders

of

of business May

record
27,

at

1952.

CLIFTON W. GREGG,

Vice-President and Treasurer

STOCK

DIVIDENDS

The directors also declared

regular

quarterly dividends of 65 cents a share
on $2.60 Convertible Preferred Stock,
33 Va cents a share on $1.35 Convert¬
ible Preferred Stock, 33% cents
on

a

share

$1.35 Convertible Preferred Stock,

Series

$1.72

B, and 43 cents a share on
Convertible Preferred Stock.

All

preferred dividends are payable
July 10,1952 to stockholders of record
June 19, 1952.
A. E. WEIDMAN

May 7, 1952

-

'

April 24,1932

Treasurer

The Commercial and Financial Chronicle

«

.

.

Thursday, May 8, 1952

.

(1952)

Continued

BUSINESS BUZZ

A

from (he Nation's

Capital

-

•

•

Moscow's Economic
j

\fill

y* jr

XM. I

5

page

How Effective Is

on
Behind-the-Scene Interpretations

jrom

Propaganda?-May

A. "IM/

HI'

offers, particularly in its blandish¬
ing of capital equipment on a
scale

grand
the

more

cut

subtle effects of the Pres¬

lyze the leadership of government.
Harry Truman, of course, has
been
for

a

losing prestige with Congress
long time. By the steel in¬

seizure, however, he ap¬
peared to lose even the last ves¬
tiges of prestige — that given to

dustry

for

him

he holds—ex¬

the office

cept for an insignificant following
<of the extreme left wing.

has developed no
man or group of men to replace
even
that tarnished leadership,
and the situation is said to be
illustrated best by what is going
But Congress

on

in the way of a

reaction to the

/yi)popular seizure.

of

'

Defense

the

When

this

about

talked

Soviet

Department
spending

itself

flat spending
administratively im-

turn

at the President and

the positive

disposition to try to set the situa¬
tion to rights has so far produced
nothing but a simultaneous flying
in three or four directions at the

trying

the

and

out-

to

depend¬

trade

West

timber

Soviet

the

on

States and

the

But

show,

be

now

can

supplied

quately

ade¬

the United
f

by

t^na'dai:

hi th'e East-West

crux

situation is that in the underlying

political

sphere,

indication
let

not

conservative
Virginia Democrat whom the leftwing crowd have been trying to
retire from Congress for some 16
the

Smith,

Howard

the

of

even

strategy is Rep.

of this

is

it

this week's ECE reports

As

of cuts we
give way on

Author

many

fortunately is becoming negligible.

ceiling will be a wonderful
bargaining weapon for- the House
conferees. Go back to the $4won't

for

materials

in the underdeveloped

us

Meanwhile,

out to be as
before, then the spend¬

should

which

ence

made or we:
the spending
President and determined to do ceiling, the House conferees will
something about it, yet the anger say. ;
with the

raw

countries.

ing

biljion

Congress is angry

satellites

of

promise

ceiling. Nevertheless, it will be an
issue
in • conference
and if the
as

its

with

probably true that the
will wipe out this spending

Senate

and

equipment;
and
has
been
actually trying to import
from European suppliers precisely
those items of capital equipment

And it is

liberal

The

Union

industrial

curement program, a

Senate

hungry

areas.

categories

flat

continuing three- to four-year pro¬
is
practical.

the

actually has been
experiencing serious difficulties
in meeting the requirements of

ceiling, it let out an awful yelp.
It is probably true that with a

ceiling

before

underdeveloped Asiatic

billion.

lion and $4.3

ident's seizure of the steel indus¬

try has been its tendency to para¬

would be a
something between $2 bil¬

the compromise

then

WASHINGTON, D. C.—One of

that

down

operate

in

absence

of a

mate,

there

the

any

is

every

Kremlin

the

bars

will

and

co¬

way—and in

the

proper

political cli¬

these trade representations

must necessarily remain a com¬
) years.
plete sham.
£
£
£
"Morning, Boss—Did you read about some silly old goat
the De¬
putting his coat down in a mud puddle so a
So far it is only speculation but
fense Production Act to eliminate
dizzy blonde could cross?"
expressly any power for the Wage some of the wise boys think that
Stabilization Board to handle if the Senate is controlled by
Democrats—as is most likely to
For the piece de resistance of
wage disputes or recommend the
That other practice is the do¬
union shop. Others want to im¬ be in 1953 barring a GOP land¬ all these junkets was a visit to mestic junket. Both the Pentagon
peach the President, a procedure slide at the November election— SHAPE headquarters and a stop and the State Department have
Doremus
&
which history suggests is not Senator
Walter F.
George will at the feet of Mohammed.
Company, 120
well-organized staffs to keep the
likely to lead to success. A third move over to the chairmanship
customers rolling around, in Broadway, New York City, has
As various members of Congress
approach has been the Smith bill of the Senate Foreign Relations
Washington or in the country, get¬ retained Norman
see it, Mohammed can lay hands
Byron as Art
fo put seized industries under a Committee.
ting the plush treatment, getting
on the visiting pilgrims, and since
Consultant
to
the
Mr.
agency.
•court receiver at the initiative, in
With Senator Tom Connally of
the supposed "low-down off the
he positively cannot discuss any¬
some cases, of Congress. A fourth
Texas retiring, the chairmanship
record"
background from "high Byron was formerly Vice-Presi¬
thing for the record, all his views
approach will be to outlaw indus¬ of Foreign Relations would go to
officials," and going back home dent and senior art director of
must be personal, intimate,
and
Senator Theodore F. Green, Rhode
try-wide bargaining.
wined, dined, and filled full of Benton & Bowles.
off the record, and the pilgrims
It now looks at though Congress Island Democrat, who is more
delicately (?) dished out official
are enjoined, on pain of ex-com¬
will have a great deal of difficulty than friendly
to the causes of
propaganda.
munication,
not
to
quote what
trying to get a majority behind foreign relief and aid. If Green
With Cruttenden & Co.
Mohammed says.
The State Department has the
any single solution of the problem. declined it, on the other hand, it
(Special to The Financial Chronicle)
Several members of Congress, toughest time because it doesn't
£
£
£
would go to another strong friend
own an air force or
navy, and has
CHICAGO, 111.—William E. Mil¬
of the foreign recipients of U. S. speculating about the remarkable
Just put down that little $46
fact that editors of almost com¬ to get the customers to come to ler has become
associated
with
money,
Senator Brien McMahon
billion defense spending limit
same

time.

to amend

want

Some

Doremus & Co. Adds

Norman Byron to Staff

by the

voted

House as a

clever

of legislative "collective
bargaining," whose usefulness is

piece

pletely pink

of Connecticut.

senior to Green,
elect to assume the chair¬

Since George is
he

can

the manship of Foreign Relations and
the chairmanship of
nature of the strategy becomes relinquish
Finance, which then could go to
understood.
Senator Harry F. Byrd of Virginia,
It is recalled that the House

not diminished simply because

voted some

$4.3 billion in specific

who ranks next to Mr. George on

and then Finance.
on the floor
adopted an amend-Under such a shift George
ment
which would, if enacted, would still remain a member of
Finance. However, the South¬
have/ seemingly
prohibited the
cuts for

Defense

defense items,

Department from spend¬

erners

would thereby retain con¬

ing more than $46 billion on all
accounts, a cut of nearly $7 bil¬

trol

lion.

conservatives

these powerful com¬

of both

incidentally,

and,

mittees

as

is that the control of both.
House for years has been faced
with the fact that the Senate
You may be
raises appropriations above those
The

story

approved

the

by

well would be in

that

on

House.

In the

the

endorsed

and

other

have

journals

Eisen¬

exciting views of military instal¬

hower, have begun to put the fin¬
ger on these junkets as respon¬

Furthermore, note these observ¬
ers,

most

of

the

of pink

tors, all

seem

line: This
a

to

the

wonderful,

wonderful

man

is

to

hearing
cost

soon

of

of

"junkets

the

on

Eisenhower

definite
Senate

in

WANTED

TRADER—SALESMAN
Well-established over-the-counter
house

requires

trader-salesman
clientele.

an

experienced

with established

A reasonable trading

position will he permitted.
Drawing account against a com¬
mission of 60

per

cent.

Replies

will he held in strict confidence.
K 58 Commercial & Financial

Chronicle, 25 Park PI^ New York




own

views.)

LOS

dation

ANGELES,

Powell

of

the

de¬

fense and foreign policy premises
of
these
two
key departments,

the,,not

so

reluctant

Eisenhower

is in accord.

Parrill

F.

Ex¬

with

Republic Investment Co. and

For

Large Appreciation Potential

RIVERSIDE CEMENT CO.
CLASS B
leading

have

Conrad,
Sixth

joined

Bruce

Street..

&

Hermon

the

Co.,

Mr,

K.

staff

530

Powell

of

West
was

previously with William R. Staats
&

Co.

(common) STOCK
producer

fast-growing

of

cement

Southern

California.

Analysis
a

Calif.—Lang-

and

of

this Company

and

review of the Cement Indus¬

try

available

request.

on

Available

around

11/^

LERNER & CO.
Investment

10 Post Office

Securities

Square, Boston 9, Mass.

Telephone

Teletype

HUbbard 2-1990

BS 69

organizations and industries, on

junkets to Europe. The prime pur¬
pose of these expeditions in for¬
eign travel and release from duties
at home, of course, has been to
sell
of

Stock

formerly

was

Julien Collins & Co.

A

(Special to The Financial Chronicle)

don

acceptance

He

WE SUGGEST

With Conrad, Bruce & Co.

can¬

Department practice of wide¬
spread use has laid a solid foun¬
for

Co., 209 South La

Midwest

and

changes.

in

While having only an incidental
effect

York

the

&

Street, members of the New

to Europe.

or

the "Chronicle's"

premises with which it is assumed

the

Washington,

the aid to Europe.

to

Salle

don't

,

appropriations and taking "leaders of public opinion,"
restored $2 billion, meaning well-placed newspaper
and magazine editors, and others

from

con¬

by
or¬

(This column is intended to re'
equipped he is to "clean out this
mess
in
Washington." They all fleet the "behind the scene" inter¬
seem
to be alike in mentioning pretation from the nation's Capital
nothing of the General's stand on and may or may not coincide with

didacy, another State and Defense

in

give and take

can

allow them to take time off to go

General Eisenhower and how well

Mecca," by which is meant nice
ference committee there is a com¬ plush trips to Europe Sponsored
promise between the House and by the Pentagon, the State De¬
and ECA, ending at
Senate figures. If in the instant partment,
SHAPE headquarters.
tease, for example, the House hav¬
These three agencies have been
ing specifically cut $4.3 billion
normal

over

customers whose duties

same

endorsement of what

an

and it

parties

Cruttenden

ganize regional junkets for those

priggish edi¬

carry

presided

the prettiest brass,

endorsements,

or

cocktail

at officers' clubs

sible.

whether

relaxing

lations,

specific issues other than, perhaps,

and

volume

home

Washington. The Pentagon, on the
hand, can give the children
lovely plane and ship rides with

completely

and

conservative
come

the

more

customers

and

for defense,

more

on

the

worth

Trading Markets in

FIRM TRADING MARKETS

the State Department,

FOREIGN

SECURITIES

and ECA.

While
such

they

a

these

junkets

have had

parochial motive, however,

have

had

other

effects.

a

wonderful

Repub¬
fertilize his polit¬
ical pastures without having to go
to those pastures; instead the pas¬
chance, as

one anonymous

lican put it, "to

tures have come to him."

,

PARI MARKS & HO. INC.

Products
Common

and

Preferred

In

particular they have given Gen¬
eral Eisenhower

Allied Electric

appropriations

FOREIGN SECURITIES SPECIALISTS

50 BROAD STREET...NEW YORK 4, N. Y.

TEL HANOVER 2-0050...TELETYPE: NY 1-971

Hill, Thompson & Co., inc.
Trading

70 WALL

Department

STREET, N. Y. 5

Tel. WHitehall 4-4540