Full text of Commercial and Financial Chronicle : November 1, 1951, Vol. 174, No. 5060

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UNIVERSITY
OF

MICHIGAN

ESTABLISHED 1S39

NOV 2

1951

BUSINESS ABKINiSTEATIDH

Reg. U. S. Pat. Office

Volume 174

Number 5060

New York, N.

Y., Thursday, November 1, 1951

Price 40 Cents

Copy

EDITORIAL

Factors in Our Future

We See It

The Joint Committee

has

the Economic

general credit control and debt

ment.

A subcommittee headed

Patman of Texas has
considerable

number

to form

are

manage¬

Mr.

by Representative

dynamic

of the lists of

one

One of those receiving

queries

Company. Mr. Rowe

exceptionally prompt and,

think,

headed in replying.; He was kind

very

our

Warns

For

their

was

many

In the

clear-'

the outlook for

come

past year and

dangerous

volatile

and

introduces massive

enough to send*

economy

international

situation

of his

copy

feel

were

answers to

in this way

afforded

to bq of. real service to the country

observation^; of Mr. Rdwe

these

October 25th issue.
The

opportunity ,

or
total peace.
In Berlin, in
Greece, in Turkey, in large areas of
Asia, in the Communist maneuvers
for greater political power in West¬
ern Europe, and
finally in Korea, the
continuing programs of certain dic¬

war

by publishing

•

speaking, on a level
particularity than is the
sent to public officials, but these
certain implications which Mr.

(4)
our

-jA

■

•

tators for world-wide domination be¬
came

free peo¬
ples of the world were no longer
passive spectators, divided and fear¬
ful.
Programs for aid to weak or

sued.

aggression
galvanized

;

(5) The technological revolution
in medicine, agriculture and indus¬
try which opens up an opportunity for a long period of
vigorous expansion, great progress and unexampled

Continued
*An

joined in

June

was

were

rapidly

energetically pur¬
open and shameless

1950, when
attempted in Korea, the free world

into

new

action.

Countries

the

world

was

over

unprecedented

move

to block this

new

step in

military alliances

were strengthened. Most
important of
all; the tremendous production potential of the American
'

page

Continued

address

by Mr. Shields before the Associated Industries of
Massachusetts, Boston, Mass., Oct. 25, 1951.

and

the Communist program. Preparations for defense
against
further aggression went swiftly forward. Economic and

prosperity as the rapid rise in population increases our
markets, as the increase in farm efficiency releases more

so as
pointedly and as
soundly, and, of course, all thoughtful observers
with the good of their
country at heart may well

And

countries

i formulated

yrN

date the subcommittee do

> V

much

threatened

John W, Snyder

which leaves

economy

clear.

This time, however, the

;-v.yv -iriCAff
to produce a de¬

vulnerable to

economy

be necessary,
•

number of "broader .questions which
We can only hope
the other practical bankers who accommo¬

page

deeper setback than would otherwise
Murray Shields

Our failure

pression-proof

underlie all of these matters.

Continued

is;

presehttvUs;/with some difficult
;
problems of readjustment. A .
v
(3) The inflation which has now
carried 'prices:;i;so
high that some
deflation may be either inevitable in
Vtime:'-br avoidable only by the use
of-even more
violent inflationary
devices.

questions carry
Rowe did not miss, and which afforded him an
opportunity to express himself vigorously con¬

that

which

Program

on0 page Sam bur"

cerning

Defense

questions directed'at Mr. Rowe and the

with those

(2) The

will be highly stimulative if not
/ inflationary
for a time and then

other bankers are,
generally
of somewhat greater
case

;

>•

the "Chronicle," and we

climate of international

longer be viewed solely in terms of
the sharp black and white of total

elements of uncertainty
economic calculations. <

half, the fundamental defense

relations had changed. We saw that
the defense of our nation could no

new

into all

ent that the

our

likely to be shaped by six powerful factors:

which

economic health in addition

solving financial problems.

planning of our own country and of the entire free world
has undergone profound changes. As we moved further
away from World War II, it became increasingly appar¬

potentialities.

own

years

must preserve our

depression, but says our future can bring glorious
if U. S. and other Western Powers can develop

/£

so we

outlook for

economy:

cinnati banker, John J. Rowe, President of the
Fifth Third Union Trust

progress,

prominent Cin¬

was a

chief factors

defense program;

private individuals and

year.-

lists

(1) the international situation; (2)
(3) inflation progress; (4) lack of a
depression-proof economy; (5) technological revolution;
and (6) rapid industrialization
throughout this hem¬
isphere. Concludes we shall be fortunate if we avoid

a very

sort of basis for extended

Shields

severe

hearings early next

Secretary Snyder, asserting the government started pres¬
ent fiscal year in a
relatively strong condition, warns,
however, from here out, defense program will absorb
much larger share of nation's output. Promises increased
tax load will be fairly
distributed, and derelictions and
incompetence in Revenue Bureau will be weeded out.

Vice-President and Economist,
Bank of the Manhattan Company

public officials lengthy lists of questions, replies
to which

Secretary of the Treasury

By MURRAY SHIELDS*

Report

recently delivered to

By HON. JOHN W. SNYDER*

Economic Prospects

again gone into action with another inquiry

about

Our Fiscal Program

*An

Post

address

No.

page

Secretary Snyder before the Col. Francis Vifo
1093, American Legion, New York City, Oct. 27, 1951.

SECURITIES NOW IN REGISTRATION—Underwriters, dealers and investors in cor¬
are afforded a complete picture of issues now
registered with the SEC
and potential undertakings in our "Securities in Registration"
Section, starting on page 37.
porate securities

State and

U. S. Government,
Stale and
<

Municipal

Securities

Municipal
600 Branches

R. H. Johnson & Co.
Established 1927

telephone:

Chemical
BANK & TRUST

COMPANY

INVESTMENT

DEPARTMENT

Monthly Commercial Letter

SECURITIES

Street, New York 5

BOSTON

THE NATIONAL CITY BANK

PHILADELPHIA

Albany

Buffalo

Harrisburg

Providence

30 BROAD ST., N. Y.

Scranton

Wilkes-Barre

Williamsport

Washington, D. C.

Allentown

The Canadian Bank
of Commerce

OF NEW YORK

Head Office: Toronto

Bond Dept.

Teletype: NY 1-708

IS etc York
Seattle

OTTe

& co.

Ill Devonshire Street

BOSTON
Angeles

Private

B0USM

}

NATIONAL BANK
OF

14-Wall

Ca.

Street, New York, N. Y.i

Members of Principal Commodity

Security Exchanges

San Francisco

•

Boston

Los
•

THE CITY OF

NEW YORK

BONDS & STOCKS

Central Vermont
Public Service Co.
COMMON

sou

Wires

Dean Witter

and

Chicago
Los

J D

and Bonds

CHASE

Portland, Ore. San Francisco Los Angeles

CANADIAN

Stocks

Agency: 20 Exchange PL

THE

Quoted

Prospectus front authorized dealers

Vance, sanders

Hawaiian Securities
Direct

BOSTON

New York

Canadian

Pacific Coast &

Bond Fund

Bonds

Canada

upon request
64 Wall

Troy
BOND

across

HAnover 2-3700

Angeles
Honolulu

•

CANADIAN

Analysis

DEPARTMENT

Goodbody

Co.

ESTABLISHED 1891

MEMBERS NEW YORK STOCK EXCH.

Chicago

Dominion Securities
Grporation
40 Exchange

115 BROADWAY

NEW YORK

CHICAGO

Place, New York 5, N.Y.

105 W. ADAMS ST.

WHttehaJl 4-eiet

request

IRA HAUPT & CO.
Members flew York
and other

Stock Exchange

Principal Exchanges

111 Broadway,
•WOrth 4-6000

Teletype NY 1-702-3

upon

Boston

N. Y. 6

Teletype NY 1-2708

Telephone:

Enterprise 1820

The Commercial and Financial Chronicle
2

...

(1646)

The

TRADING MARKETS IN

United Utilities

Their

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

A continuous forum in which, each
Interstate Power

in the investment

Puget Sound Power & Light

Corporation
York

New

Teletype NY 1 -583

BArclay 7-5660

Rights & Scrip

road. The road

McpONNELL&fO.
Members

York

Tel.

„•

-'*-

-J

■:
.

through

ward

2-7815

northern

Oetjen

Henry

ex¬

tension

Trading Markets

Dan River Mills

con-

integral

Pacific an

Western

ing

rising

Scott, Horner &
Mason, Inc.

■

nitely

also

MEMBERS

increase this car¬
Impetus has

helped to

this

hostilities

would

Stix & Co

flow

which,

327,

trading markel3 in

reorganization

the

was

pe-

rehabilitated to

great extent through the ex¬
penditure of approximately $27,000.000 over and above normal
maintenance.

The

Burnham and Company

the

dieselization

Exchange

part

New York 5

President of the road commented

and at

ice

present all passenger serv¬
and it is antici¬

dieselized

tain this

ACTIVE TRADING MARKETS IN

UTILITY STOCKS
Telephone

goal

some

time iri 1952.

try, was elected to that office July

fice, he delivered

CAnal 6-1613

Dealers

Portland, Me.
Hartford, Conn.

Tele. BS 142

Enterprise 2904
Enterprise 6800

49|km End Phone to New York Canal

ratio of 28.1%. This

8-1613

operation

listed

changes already made and further

259
U

earnings have amounted to about
three boom years and

Cone Mills Common

the

$21.50 per share. This includes

modernization

these earn¬

program

Power Common

Consumers

Continental Can
4

en¬

\trt

Pfd. &

Rgts.

which

refunding 1 pro¬
resulted in conver¬

all

these

bonds

in -

and

includes

ipated

making

The overall

this

recapitulation

say

can

both

Foote Mineral

and cotton and moderniza¬
tion, which figuies out to $109.00

18.000 shares of capi¬
only indebtedness.

per

tal

stock, the

The

plant consists of three mills.
Is used exclusively in the

One

fabrics,
rented

the

facilities

mill

new

have

Tel.

excellent

physical

con¬

management:

„

(3)

Serves

expanding terri¬

tory;".;;;..

The

value

the

Mountain Fuel

element

y one

which

adequate cash posi¬

tion with low funded

Supply
Equity Oil

over

the next

large

very

means,

holders

opinion,

feel

the

that

the

expansion

share,

(plus the possibility of
increase in the dividend rate)

paying $3

the

purchaser fair yield plus

chance of

than average

amounted

ap¬

decision

erating railroad.

proximately $4,00(1,000

per annum,

there will be

favor

Bell

Salt Lake City 1

Teletype SU 484

Oldest Investment House in Utah

%
V

BUY tyy
.

S A VINGS

earnings should

near

BONDS

future after

has

program

been

few

been

handicapped during the in¬

possible. During the
production has

years

stallation of

dividends

new

machinery

and

the

"op¬

In the writer's opinion,
further appeal.

will

greater

the

when the expansion
is completed. According

future

to the annual

statement, the

syn¬

Over-the-Counter

Quotation Services
for 38 Years

thetic program will be completed
the early part of 1952, and I be¬
lieve

that

program

cotton

*On Tuesday, Oct. 30, 1951, the Ninth
Circuit Court of Appeals, San Francisco,
a

Established 1699
160 S. Main St.

then

the

rendered

8c COMPANY

past

near

offers

request

EDWARD L. BURTON

the

will

months;

per

upon

stock

that

capable hands.

program

$50

Analysis

exceptional and will remain in the

plus the tax advantages inherent
at

Utah Southern Oil

that the officers and their families

in all rail securities, Western Pa¬
common

completed because full production

debt;

(5) Has adequate earning power
over
ihe
years,
without taking
into consideration fully the sav¬

market

distinguishes

company
from the
ordinary run-of-the-mill company
is management. In this case the
record speaks for itself. The fact

improve in the

;;'V;

(4) Has

Tel. NY 1-1932

Specializing in

they

successful

same

...

Assn.

New York 7

con¬

because

\:i} management will continue

(2) Has capable and aggressive

Dlgby 9-1550

is not only good but ex¬

characteristic
a

Dealers

Security

Broadway

which they are not

one

Incidentally

using.

150

company

additional

Now

need

struct

Members

fabrics, one

rayon

it would not be necessary to

now

Gerstex & Fkekkel

production cf cottcn
the
third
mill
is

and
out.

should

are

(1)
dition:

property.

savings anticipated in

program

Dewey & Almy

rayon

is used in the

efficiency improvements he antic-* capital appreciation.

this

4-5000

5.00

paid

Class production of

„

their

Inc.

31 Milk St., Boston 9, Mass.
Td. HUbbard 2-5500

was

that Western Pacific is:

Analysts.
of Securities

Railroads

the common.)

address be¬ cific

fore the N. Y. Society of Security

J. B. Maguire & Co., Inc.

Teletype

Telephone WOrth

through 1951 average

President,

1, 1949. Shortly before taking of¬

York

on request

St., Boston 9, Mass.

7-0425

Frederic
B. ings only recently put into effect. modernization of the
plant. While
Whitman, who, in the writer's
Based on everything we have: results have been satisfactory and
opinion, can be classified among said above, and, in anticipation: dividends are being paid regularly
the top rail operators in the coun¬ of a sharply higher rail equity* *I» believe that both earnings and
The

Nat'l Assn.

creased the amount of shares out¬

recent statement the

pated that freight service will at¬

Cable Address: Coburnham

Members

transit. For the
transportation ratio

This

gram.

sion

that 100% dieselization is the goal

Teletype NY 1-2262

New

program

property has been advancing

rapidly. In

Members

Private

actually

gross

of the lowest for any

one

Dividends
From 1946

CA.

Tel.

152.78

Value

State

148

$8.80
42.71

Capital-^-.

Working
Book

Pacific's operat¬ country which can come up to this vestment
amounted in 1950 to record. The above earnings inci¬ ceptional.

riod this road

SECURITIES

Direct

compared to 295 for the dentally are figured on a partici¬
Western region, and 246 pating basis. (The preferred par¬
Class I roads.
ticipates equally after S3 is'paid

During

CANADIAN

15 Broad Street

§ THERMO KING RY.

would

events,

as
Central
for the

Exchange

U. S. THERMO CONTROL

could take up a

ing revenues

Dlgby 4-1400

Per

Item

Earnings

100, Western

Curb

Information

continue,
these three buildings and the land
standing to 523,899 shares. Pre¬
considerable dicated on this
are.mot carried on the books but
capitalization, the
amount of this slack.
average earnings on the common they lCpresent a valuable asset.
In these troubled times I feel
Operating revenues have been for the 10 years ended 1951 (with
consistently ahead of those of the 1951 estimated at $11 per share) that an investor should make sure
Central Western region and all" amounted
to
$9.46
per
share. that the management of the com¬
Class I railroads. Taking 1935-39 There are few railroads in this pany in which he makes an in¬

St. tons LMo,

York

this debt is defi¬

Income Bonds whicli were, called

regardless

increased

The

armaments

soon

York Stock

com¬

Last year the road had out¬
standing approximately $6,000,000

area

only temporarily in my

but

Korean

New

I road in the country.

traffic to some ex¬

reduce

opinion.

STREET

branch offices

First of all the annual statement

against this, Western

Pacific had

has

naturally been given to this trend
the Korean War. A cessa¬

tent

our

in order.

and

goods

rise and 36.9%.

population

rier's earning power.

tion

New

fine index of operational

year 1950, the
of
all
Class

due to

We maintain

Security

ings have made it possible for the
company to finance its expansion

dollar

carry

industrial¬
California's

West.

the

improv¬

been

has

ing with, the continued

increased economic affluence

privilege

the

'"The

NY 1-1557

Birmingham, Ala.
Mobile, Ala.

Direct wires to

afforded

been

presenting

York 4, N. Y.

that I

time

second

the small side.

A very

each

Traffic flow

MIDWEST STOCK EXCHANGE

SOS OLIVE

originally.

dollar reserve,

without ever
than 5,000 feet.

phenomenal
r-

Curb

gives the road a

ization

•

have

the

New Orleans, La.

Co.

Mfg.

City

This

spent

LD 33

V.,.

Border

from

pared With their net current posi¬
tion, including the ten million

higher grades.

iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuiiiiini

Exchange

York

HAnover 2-0700

Ryan & Co., N. Y. C.

decided ad¬ ability is the transportation racio tirely out of earnings. During this
vantage over competing carriers of any railroad. This ratio shows time a total of Sl,956,036.3o has
who
must combat substantially the amount of money spent out of been
This

Lynchburg, Va.

since emergence

$31,200,000

traverses the Sierras

•,

LEO V. RYAN

Partner, Leo \

bankruptcy has made substantial
reductions in its debt. Today the

part of one of the two north-south
routes from Seattle to lower Cali¬
fornia. On its east-west run, it

Hardware Co.

Exchange

New

25 Broad St., New

nects at its northern end with the total debt, all fixed in nature (ex¬
Great Northern and at its south¬ clusive of equipments), amounts
to $22,000,000. This compares with
ern point with the Santa Fe, mak¬

American Furniture Co.

Tele. LY 83

New York Stock

Members

The of

suit.

We believe that the op¬

The road

This

Bieber.

IIISIIllllIllllllllllllllilllllllllllllllHI

Steiner, Rouse & Co
^liTcmbers

erating railroad will again be suc¬
of the Border City Mfg. Co. for
cessful. If they are—the present
the;: year ending Sept.
29, 1951
net current assets position will be:
shows the following facts':
increased by this amount/8 ~

1 ifornia,

success¬

was

this

winning

shortly.

Oakland,

California

Moore Handley

then north-

NEW YORK 5

REctor

(Western Like Best' and I must confess that
Pacific R.R. Corp.)
has sued to my second choice is the same as
obtain this money. They were un¬ the first one. While the opinions
successful and are now appealing and remarks may seem lepetitious,
to the U. S. Circuit Court of Ap¬ I feel that this security is *so good
and the reasons for buying it are
peals. It is the general opinion
so
great that a second article is
that a decision will be rendered

Sacramento
C

Exchange

Curb

City

westward

and

Stock Exchange

from

Salt Lake

BROADWAY,

former parent company

approximately
1,200 miles of
extends

ful

operates

Since 1917

was

reserve

railroad

The

taxes.

road Company

New

V.
City.

Leo

partner,

Co.," New York

(Page 2)

originally established because of
Federal litigation regarding back

Western

Pacific Rail¬

120

1951,

This

assets.

current

railroads.

York

Ryan,

Railroad Co. (common)

Pacific

Western

Specialists in

New

Leo

Ryan

31,

July

B o ught—S old—Q uoted

Co.—

City Manufacturing

Border

current asset position of

Established 1920

Louisiana Securities

City. (Page 2)

the net
this road
amounted to $18,805,000. Besides
The security I like best at the this the road carries a reserve of
moment is the common stock of $10,000,000 in Government bonds,
one of America's
better managed which is not included as part of
of

Co.

Railroad

McGinnis & Co., New York

ner,

early 1952.

felt by

Alabama &
+1

(Common)—Lenry Oetjen, part¬
.

which should be

the full effect of

IIENRY OETJEN

Partner, McGinnis & Co,, N. Y. City
Members New York Stock Exchange

and

Selections

Pacific

Western

intended to he, nor
sell the securities discussed.)

they to be regarded, as an offer to

are

New York Hanseatic

Broadway,

particular security.

(The articles contained in this forum are not

Northern Indiana Public Service

120

for favoring

participate and give their reasons

Participants

Forum

Kentucky Utilities

Week's

This

Security I Like Best

Thursday, November 1, 1951

will

year

the

entire

including both
be

expansion
rayon and

completed

during

Incorporated
Established 1913

According to the annual state¬

ment,

National Quotation Bureau

1952.

alL the

old

and

Continued

obsolete
page

46 Front Street
CHICAGO

K*'

New York 4, N.
'

BAN FRANCISCO

Volume 174

Number 5060

The Commercial and-Financial
Chronicle

(1647)

Prudent Man, the Technician
And the Stock Market Outlook
v;'

By EDMUND W. TABELL*

•''

slowly building

distributional pattern, with highly diver¬
an average decline of
20% is possible.

up a

gent movements, and

Declares, however,

advance

Since last July, when administrators of trust funds in New York
State, in accordance with the pru-

dent

man

invest

such

rule, werd empowertv

35%

stock s,

the

independently.

approach.

nas

maf

I
Edmund

anything

that

would

man

Tabell

as—

"practically
the

If I find

check

the

logical for

wise;

careful

consequences of measures

the

economist

From

this

definition,
that

it would

trie

prudent

all the possible aids
find to assist him in
prop-

can

erly evaluating

the

trend

se-

curity prices. This is, of course,
true 'at all
times, but it is particularly applicable in
the
present
confused state of our economy.

Today, to formulate

sound invest-

ment policies, the trust administrator must not
only have a knowl-

edge

tions

present

and

trend

must

economic

opinion

the

his

condi-

the

but he also
individual se-

various

funds

and

decide whether it should continue
to be held

must

inherent

be sold.

review

other

addition,
securities

that

ance

to you if you

would

great

assist-

further checked
r,c

technica

action

Set

and of

fcuritv before

the

Darticular«e-

definite invest-

anv

SfAit decision is concludGd. .Tliis
Jlricin* fc r-nfAnri mhL

ment

trinle check is

added safeguard

seriouf

against the potentially
of poor investment
timing.
think of quite

can

the

requirements

tional investor

would

far

risk

few stocks

that

moment

the
as a

meet

institudividend

.—:—

address

Mr.

Tabell

sAZz?
cuse,;.N.
this

Y.,

paper

securi-

Oct.

26,

appears

before

1951.

[Comment
"Observations,"

Business

From

security

analyst

securities
/->«

•

grOUDS

interested in offerings

are

HA-2-0270

Wilfred

May

Report
Governments

*___

Now

Registration________.

of. Trade

and

Tomorrow's Markets

Industry___

p&CJC oU

High Grade Public Utility and Industrial

Reg.

•,

and

;

CHRONICLE

Patent

Drapers'

land,

c/o

Gardens,
Edwards

WILLIAM

DANA

Park

PREFERRED STOCKS

Place,

York
to

25,

ary

York,

Y.,

WILLIAM

Spencer Trask & Co.
Members New

York

Stock

25 Broad Street,
HAnover

Exchange

New York

Members

New

50 Congress

2-4300

York

Chicago

Glens Falls

2-8200

Every

Worcester

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issue

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and

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(general

and

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under

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per

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market

quotation

bank

city news, etc.).
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clearings,

news,

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the

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'
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Thursday, November^, 195l?fT
,

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state
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Street, Boston 8

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SEIBERT.

Curb

Teletype—NY 1-5

Albany

WILLIAM

SEIBERT, Editor & Publisher
DANA

Hoving Corp.

Eng¬

1879.

9576

HERBERT D.

C.,

second-class matter Febru¬

1942,

Smith.

by William
Company

COMPANY, Publishers
New

REclor 2-9570

London,

1951

Office
Reentered

Di-Noc

34
44

________x_

Weekly

Dictograph

(Walter Whyle Says)__

COMMERCIAL

Collins Radio

se¬

FINANCIAL

Baker-Raulang

Securities

Twice

Air Products

40
24

The Security I Like Best__

Exchange PL, N. Y. 5

1-1825 & NY 1-1826

Security Offerings

and

Teletype NY

Washington and You_
071

•

Salesman's Corner__

State

-I

Singer, Bean
& MACKIE, Inc.

6
36

Railroad Securities

The

Published

•
V-

Reporter's

The

Chemical

Business Activity

Securities

CO7111711160,

West End
:_

Public Utility Securities

con-

Sterling Oil of Oklahoma

n/.,L

with .the outlook for mi-

Vldual

Funds

Our Reporter

Greater N. Y. Industries

Securities

Prospective

the market analyst are more

NSTA Notes

Our

Baltimore Porcelain
Steel Corp.

Cover
___'

Man's Bookshelf...

Observations—A.

concerned with such

Artkraft

Manufacturing Co.

News About Banks and Bankers
<

;

and Los Angeles

.rXX'X-C ■CCXXX-'-'h'^

Washington Ahead of the News—Carlisle
Bargeron

Mutual

^come and the like.
the

1-3370

tt,uu

York 6

Teletype NY

(Editorial)

Indications of

our entire econ-

nrMOAvnn

Broadway, New

Philadelphia

Einzig—"Mr. Churchill's Problems"

££• °lJ*neeQu*S
l *£ Jles untXd orderf ' bank
^aringf' industrial wSuction
peisS
theUke
pers0"al

"Chronicle."]

Dealer-Broker Investment
Recommendations.

economist and tha' °f both the
security anaIyst and the market
ana'yst- The economist covers the
broad outlook for

Reilly & Co.

BO 9-5133

Coming Events in the Investment Field

sug-

Request

Incorporated
19

Regular Feature*

Canadian

HKWpnti
if
dnferentiate between th
the work of

J. F.

„

Bank and Insurance Stocks..

gain

™

Direct Wires

(Boxed)

As We See It

TnttysfXTn^ technl-al m'aTk/t
Ttn.°

Standard Now, Says Philip M. McKenna

XXC'. ''X

slsv

on?y'

6Prospectus

Price-Support Program.

West End Chemical

5
on

Sees Budget Deficit Despite Tax
Rise

Possible loss of three
P~nAf; t "
™°"\d
appear to be a prudent invest-

Building

Chief Clerk of Senate Committee
on Agriculture Takes
Issue
With Professor Slichter on Farm

on A

hand, the technical pattern
Sests a possible fifteen point

s!z

this issue of the

all

viously consider how much risk is
involved in the possible achievement of this gain. If the technical
Pattern suggests the probability of
either
an
advance
of v twenty
P°}nts or a decline of twenty
Points, depending on the future
action of the general market the
P°sslhle gain does not offset the

Am**r

Home

;

security but he also must ob-

Both

i_ *An

general the

the

for

Haile Mines

Michener

Expects Easing of Short-Term Money Rates.

v-x

s sss. «*£.-.«
consfderTne moTe^t^^fbeiieve

Picture—Dwight W.

Good Year Ahead

may result from the purchase

lrIi!01V+

Flying Tiger
18

that
a

Arthur C. Flatto Protests Low
Utility Rates and Stock Equity
Dilution

se-

ties. The prudent man must con-,
sider not only the potential gain

future,

analyze each

curity

page

and

Risk Always Picscnt

Risk

'"Dome Exploration

Policy

Leland Rex Robinson Predicts
Drop in Corporate Earnings

And, So It Is!

....

of Public Relations

Harry Sears Takes Issue With G. F. Bauer
"The $35 Gold Cult"
_•

background.
^

Cedar Point

Deposits of Savings Banks Up
Sharply

curity analyst to check the tech-,
nical

Canadian Superior Oil

v—Arthur M. Weimer

needs

man

just

Dept.

Philosophy of the Chemical Industry

Return to Gold

Securities

MacDonald__

1952—Another

both

ground.

J-

se-

tain

Carlisle

The Overall Credit

value

Babson

—Walter K. Gutman

;

pattern,'

security

cash!

of the Recent Market
Reaction—What Now?

The Practical

security that

lift

them

____

Hughes

■

more cer-

actions; judicious; cautious;
circumspectv'
^

appear

the

favorable technical

>—J.

from that of the

approaches agree, I feel

buy. Mr. Webster de-

fines prudent

Business Depression Ahead

Neighborliness—Basis

than

"lift"

WALL

sup¬

rec¬
market tech¬

background of the issue.

prudent

differ

The Meaning

over¬

We'll

STREET, NEW YORK
Telephone: WHitehall 4-6551

v.;;/—George F. Shaskan, Jr

jurity analyst only in the initial

rule pro¬

buy

—James

Actually, my

ommendations
nician

"The prudent

Investments—Roger W.

Bear Market and

higher percentage of accu¬
racy than if each approach is used

management

trustee

Gravity

much

Obsolete

Convertibles for the Fall—Ira U.
Cobleigh_

in-

for

Inflationary Economy?
_

The combining of the work
of the security
analyst and the
market technician should result in

—Oliver S. Powell

down¬

strong

gladly—but

straight

High?—Michael Kourday

What Credit Standards in

sold.

activities.

that

rather

obsoietes.

your

—Marcus Nadler

institutionally eligible
now

____________________

Are Oil Securities Too

potentially vulnerable
Conversely, there are a

are

Cover

Commodity Price Trend—Supreme Factor in
Business Outlook

appear in a

trend, but

THE LAVENDER HILL MOB

; V' —Edmund W. Tabell

viewpoint,

Economic Prospects

Prudent Man, the Technician
and the Stock Market
Outlook

concerned, but

port levels and appear to be

portant part of

vides

are

technical

AND COMPANY

Program—Hon. John W.
Snyder>V—--Cover

and

•

creasingly im¬

man

history

equities has
become an in¬

m e n

dustry outlook

which, horn

number of

common

invest

earnings

issues that have been in

price outlook

■

position.

funds

common

for

record,

Page

would

>'•

beginning in 1952-54 period and surmounting allpeak of 1929.

Fiscal

—Murray Shields

many

time

Article* and Newt

Factors in Our Future

«'

better quality secondary issues with
excellent yields are excellent
buys and in position to move
ahead.
For very long-term
future, predicts renewed major

,'VXv

,■■

liCHTtnsTfin

•>

Our

Inyestment authority maintains today's trustee must
engage in
economic research,
security appraisal and technical market
analysis. From "technical" viewpoint asserts market has been

I N O EX

Partner, Walston, Hoffman and Goodwin

York

funds.

THEODORE YOUNG & CC.
40

Exchange Place, New York 5, N.Y.

WHiteliall 4-2250

Teletype NY 1-3236

Financial Chronicle

The Commercial and

Thursday, November 1, 1951

...

(1648)

WalskMun.Hgr.for
Harriman Ripley
John

Walsh

been

has

tomers v and .friends.- Upon fhis
advice may depend- whether ;,.a T
They
are
the channels corporation will undertake a given >
through which new deposits, pur-f project, whether a community will
chasing power, are created, either embark on certain publfc wpfks,
by loans or investments. They are: or whether- a builder will under- '
the
providers of marginal and take the construction of a given
seasonal working capital for in- number* of houses. The success of .
dustry and trade, They are one the Treasury's Defense Drive will
of the principal sources of con- also, at least in part, depend on
sumer
credit
for
individuals of the decisions and cooperation of
They act as trustees of the people,
both as regards savings and trust
funds.

Outlook;

Factoi in Business

ap¬

MARCUS NADLER*

pointed manager of the municipal
division of Harriman Ripley &

Professor of Finance,

Inc., 63 Wall Street, New
York City, it was announced by
Milton C. Cross, Executive VicePresident.
Mr. Walsh has been a
member of the
staff since the

New York University

;

Co.

the

formation

lasts,

;

moderate

of commodity prices. Safs commodities supply,
in general, is adequate, and unless unforeseen events should
again induce people to anticipate their demands, prices should
level off in next few months. Looks for increase in bank loans,
and lists bankers' responsibility in inflation fight.

1934, and prior thereto he
had been with The National City
Co. of New York.
June,

will be at high level, holds uppermost uncer¬

tainty is trend

company

Nadler, predicting as long as rearmament program

Dr.

business activity

position

Chronicle)

(Special to The Financial

bound
gross

with

in-

all

Not

I Collins Radio

Nadler

Marcus

seasonal

other

will

The

uni-

will

the

banks.

borrow

dust Tie s

Early- next

from

year

the

which

are en-

uniform. Banks located in the defense

areas

will

witness

in-

gaged in the manufacture of heavy
equipment and use metals will be
confronted with shortages, and an

44 Wall SL, New

York 5, H. Y.

Teletype

BOwling Green
9-0040

t-1862

in their loans.' On the other
hand, there should be a decline

CLASS "A"
"v

£ dividend paying growth
opportunity in Crude Oil

Information on request

loans

Davies Co. Adds
(Special to The Financial Chronicle)

which does not play

SECURITIES CO.
Powers

Telephone LO 3190

Teletype BO 87

•v

Placer Development,

Limited
LEAD-ZINC

without

saying that the banks
upon to make loans to
well

called

essential

sidered

(Special to The Financial Chronicle)

however, of the
importance that all other
It

economy.

is,

Steckbauer has become asso*1. Shea! son, Hammill &
jp0*> Steckbauer Grandpreviously
South was
Avenue.
Mr.

capacity of the country or are not
essential

tailed

far

purposes,

cur¬

possible.

There is

general is

adequate,

shortage of food, with

the

possible exception of meat,
There
is definitely
no
shortage
of textile fibres, cotton as well
as synthetic, and the rearmament
program will not interfere with
most civilian services. Moreover,
the
productive capacity of the
country has increased considerably and is steadily expanding,
The amount of capital
invested
industry for enlarging plant
equipment is still growing
exceed $25 billion during
the present year.
/
The

John R. Lewis, Inc.
S

SEATTLE

Teletype SE

ELiot 3040

105

prepared

an
on

ALUMINUM INDUSTRIES
INCORPORATED
foundries in the United States

parts of the country,
therefore, an unforeseen

should

event

request

that

Relations Department

moderate

and Cohu & Co.

Members

York

New
New

Stock

anri

the

year

WHitehall

N. Y.

1927-——

be
,

financed

through

commercial

lead

renew

wages.

banks, this will
higher prices and could
spiral of prices* and

the

Since efficiency of labor
rising, however, and

steadily

*Summary of addresses by Dr. Nadler
the
Kentucky Bankers Associa-

before

before
Des

tlT'low,

Moines,

Iowa.

Chronicle)

Cal.

—

Edwin

Stengel has become associated
with William R. Staats & Co., 640

members of

South Spring Street,
the

New

stock

York

and Los Angeles
He

Exchanges.

was

for-

merly with Walston, Hoffman &
Goodwin and First California Co.

Pr°blem confronting the nation
as a whole is to keep the economy
sound and to maintain the intcgrity of the dollar. This can be
achieved by the practice of re¬
stramt by everybody including
government, business, organized
labor and the ultimate consumer,

PPe
*h.e greatest problems
arising out of the present emergency is that of protecting the
integrity of the dollar. This involves the protection of the savings of many millions of persons,

years. Events of
'ast few years have proven

tw'

current

ANGELES,

flexible,; which in turn trators of the trust funds upon
Joins Hannaford Talbot
that fluctuations of longer- which the welfare of many widows
(Special to The Financial Chronicle)
term government obligations are and orphans depends, must point
bound to continue,
SAN
FRANCISCO,
Cal. —H.
out that economy, restraint and
The ending of the seasonal de- thrift will go a long way toward Allison Smith is now associated
mand for bank credit is bound protecting the integrity of the dol- with Hannaford & Talbot, 519
to affect the short-term money lar. It is essential to point out California Street,
market. The increased costs of that there cannot be individual
doing business plus the increase security unless there is collective
in taxes will further accentuate security and that the search for
the earning problems of the banks.
LAMBORN & CO., Inc.
hedges against inflation may ul¬
On the whole, however, it may
timately lead to losses and to grief.
99 YVALL STREET
be concluded that, in the absence
Financing the needs of the gov¬
of some unforeseen development,
NEW YORK 5, N. Y.
ernment is an important functiojn
business activity will be at a high
of the banking community. To be
level, commodity prices will level
sure, all of us have the right, nay
and ^he banks can look for- the
duty, to insist on economy by
SUGAR
ward to an active year. The main the

nffin^l those of advanced

rfefinit

(Special to The Financial

LOS

means

Jon" economic security of most of the
accom" people of the country. especially

4-9200

——Established

would

dmfag the

with William R. Staats

main

if the

is not

government

devefap

fiscal

that

wages

York Curb Exchange

30 Pine Street, New York 5,

which

place should
in character.

however

stant rise

Exchange

Co.

Pont

government. But once the ap¬
propriations have been made by
the duly elected Congress and the
tax proposals become law, if there
is still a deficit in the budget, it
is the function of everyone, and
notably the banker, to insist that

Congress and .the government
haYe j>hown an inflation bias and

y
pressure
8 ° p '
In the struggle/to protect the
integrity oflth^rdbllar the banker
can play a most (important role.
This becomes evident if one

an-

alyzes the principal functions of
the banks. They are the

individual

custodians

aSSet? of the nati°n>

?f
as

well as

corporate.

Raw

—

■

Refined

•

Liquid

—

Exports—Imports—Futures

DIgby

4-2727

this deficit be financed in a man¬
ner

which will not accentuate the

dangers of inflation. No deficitno
matter how large—will stop
the

rearmament

timate

If
buy

program.

investors

not

Established

ul¬
the

securities offered by the Treasury

oiand to a considerable extent the they will be bought by the

fcM

looked

the

Stanley Heller & Co.

take

may

may
Stockholder

occur

again induce people to anticipate
their demands, commodity prices
during the next few months
should
level
off. Any increase)

naniprf

available

Booklet

are

many

only

of the largest aluminum

banks

many

tho

One

by the Federal

rapidly approaching the limit of their lending ability, should put a damper
on
the expansion of bank credit

Analysis and Study

policy adopted

year

authorities, plus the fact

Reserve

Unless,

We have

credit

new

early in the
that

1006 SECOND AVENUE

Francis

with

the

and

Analysis available on requert

Cal.—Willard

ANGELES,

LOS

which, directly or indirectly,
not
increase the 1 productive

for

Hammill

Joins Shearson,

civilian

the

period when about 20%
As regards money rates no major'
of the gross national product will
civilian changes are likely to take place,
be devoted to the output of de¬
population. Competition in these
evident that because of the fense materials and
capital ex¬
fields will be keen and the price- position of the Treasury and the
penditures
by corporations are
consciousness of consumers will need to finance the defense probound to be great, it is of vital
continue >
'~f.
■
gram, as well as to increase the
importance
that
restraint
and
The question uppermost in the production capacity of the couneconomy be practiced by everyminds of many people is what try, no drastic credit restrictive one. This
applies to the governthe trend
of commodity prices measures can be adopted by the
ment, industry, trade, labor
will be. Aside from certain com- Reserve
authorities. The open leaders, as well as to the banks.
modities in short supply, par tic- market
policy of the Reserve The banks, as the trustees of the
ularly metals, the supply of com- Banks is, therefore, likely to re- people's savings and the adminis¬
demand

normal

and may
I

„

Knowlton & Co.

commodities con¬

the output of

outlet for their funds in government and tax-exempt obligations,

TUNGSTEN-OIL. COLD

ties will be adequate to meet the

modities

Bldg., Rochester 14, N. T.

of Davies & Co., Russ Building,
members of the New York and
San Francisco Stock Exchanges,
will He was formerly with Frank

GENESEE VALLEY

.•

loans

small. In. these

Cal. —Mr.

FRANCISCO,

SAN

Wayne Jewell has joined the staff

finance rearmament needs as

utmost

industries the supply of commodi-

firm

deposits, are increased primarily
through loans and investments of
the
commercial banks.
It goes

of many

seek

by the engineering
Ford, Bacon & Davis.

ployed
0f

important role in the economy,
the means of payment, basically

On the the volume of consumer credit,
the percentage of the The supply of home mortgages is
total output of nondurable goods also likely to decrease,
and services taken by the Federal
Banks whose loans will tend to
decline will endeavor to

Prior to joining

other hand,

will be relatively

SENECA OIL COMPANY

of currency,

the supply of goods
With the exception

than

tion of defense materials.

Government for military purposes

of pay-

for
^avy dur|ng the
a
gracjuate of the
Engineering of Princewho; served

Madden,

university.

tQn

services.

and

banks, caused by the reduction
of inventories and the decline in

volume

the

only

place

velocity increases

their

faster

crease

take

can

if the volume of the means

high cost of doing business
also
force
many
business

concerns

increasing portion of their facilities will be devoted to the produc-

Inflation

transactions,

and

undertaken

will

ect

Those movement of loans will not be

pent.

BUTLER, CANDEE&MOSER

Assistant

ment

formly from
this
develop-

request

Madden

0f james
Treasurer.

increase, primarily to
finance the movement
of crops

ever,
benefit

■

should

the

f,;

Banking activity will:: reflect
the general economic conditions
jn the country. In the immediate

dustries, how-

Memo

Broadway, New York
£ity> announced the appointment
q0^ jnc

Schroder Rockefeller he was em-

the

hands

MacLaughlin Co.

Texas Engin. & Mfg.

Rockefeller

Schroder

the Board of
Bogie, Pres-

of
M.

Mord

country.

come

Co.

In the past he was ah

officer of Leo G.

determine whether a pro]-

meeting

Madden

future, i. e., between now and the
end of The year, the volume of
loans made by commercial banks

ful,
and
the
disposable in-

Merrill Lynch, Pierce, Fenner

and

'& Beane.

Directors

• •.'

substantial.

First

Hammill

people in their communities,
their advice and de-

often

and

cisions

^WQ years
last
war^

renewed.:.

will be

He was formerly

Shearson

are
advisers

Appoints

;

rule,

the financial leaders and
of the

'•

.>«

1.- Finally,

general

■

not.,
Taken collectively, therefore, the
decisions and actions of the banks
have a
very
important bearing/
on economic developments in the

employment
plenti-

with Wal¬

& Goodwin,

Hoffman

Trust Building.

level. The

be at a high

c a p

''■i:

.-Schroder, Rockefeller Co.

influence strongly

to
of

flow

^ ' '/ '

people will be

PASADENA. Cal.—Paul Young
has become associated
ston,

is effort to finance its deficit out¬
side the. commercial banks, one
national product will con- is warranted in assuming that the
tinue to grow,
inflationary spiral will not ,be
activity

business

lasts

gram

the Treasury is making a serious

the rearmament pro-

So long as

long^

capital, and through their
investments and term loans are in
term

the

banks, *

the

larger,v:

The

mortages.

banks aisa act as a source of

bankers,

Has Joined
Walston, Hoffman Firm

Paul Young

important

and

means

buyers

com¬

increasing'
the supply of deposits—which is
purchasing power. This will add

H. Hentz & Coi

mercial banks,; thereby

New

lar, the protection of which is one

principal functions of the

the

banker.

tions
d

i;s e and

serve on

usually
many

■

well

x„

boards of corpora¬

They are

Exchange

Chicago

„

Board

Trade

Cotton Exchange

Orleans
And

Inc.

Exchange,

other

Exchanges

banks

the most
prominent
civil leaders and a
great deal depends upon the ad¬
vice which they give their custions.

Curb
Cotton

York

corpora¬

for
guidance. Bankers

turn

Exchange

Commodity

New

Individuals

Stock

York

New

dol¬

Members

York

New

to the flames of inflation and un¬

dermine the integrity of the

1856

N. Y. Cotton

Exchange Bldg.

NEW YORK 4, N. Y.

among

CHICAGO

DETROIT

GENEVA,

PITTSBURGH

SWITZERLAND

Volume 174

Number 5060

The Commercial and Financial Chronicle

(1649)

Steel

The

Deposits of Savings
Banks Up Sharply

Production

Electric Output

i >

Carloadings
Retail

State of Trade

Trade

Industry

Price

Auto

and

Carl G.

Commodity Price Index
Food

Total

■

By A. WILFRED MAY

Production

ings Banks, reports gain of $206

Business Failures

Weren't the Bulls

million in third quarter of 1951,

bringing

total

$20,606

industrial

production moved slightly higher last week
with output at many of the nation's factories sustained at near-:;
peak levels. This was particularly true of defense plants. Em,

•

Freese, President of Na¬

tional Association of Mutual Sav¬

Index *

J
'

deposits

•

million.

Banks

ball

a very high level with the result that initial
for unemployment insurance continued to decline. Steel.; j; Deposits in the nation's 529 mu¬
tual savings banks increased
$206,ingot production, at 102.9% of capacity last week, slightly ex-;
000,000 during the third quarter of
ceeded the operating rate of 102.1% in the
preceding week.
1951, bringing
This week attention in the steel market is focussed on sighs
them
to
a
which point to an easing of supply, according to "The Iron
Age,"
new
all
time

Claims

national

metalworking weekly.
But these signs should be
caution and all market factors should be

read

the greatest

high

con-

•

$20,-

606,000,000

the

sidered—lest the signs be misinterpreted, adds this trade journal.

and

serious

Materials

Plan

stroyed confidence in government figures
terrific

larger

rate

steel

supply'next

inflated, has

de¬

Mutual

demand, and (6) The.
a much

ings

present in

they would

be most

convincing, but asks the "Iron Age," how do you measure
when consumers aren't permitted to use as much steel
they would like? What would happen to demand for cold-

rolled

sheets,

These
much

are

the

would suddenly

conversion

lift all restrictions?

market,

the imponderables that

but

concern,

information

are

hand

does

eliminate

some

In the face of present industry commitments, no overall
easing of steel demand seems possible before the middle of next
It does

year.

Steel

seem

sales

will be like

possible toward the end

of the year.

than six months ahead.

They would like to see
controls lifted.
This, they feel, would result in a more realistic
appraisal of demand in a hurry.
Steel

haven't

users

been

still

find

honored

amount of metal

time to complain

and

they

chaffing

are

if their CMP tickets
^restrictions

over

the

allowed to use, states "The Iron Age."

are

Despite the sustained high production rate, steel quality is
holding up remarkably well. There are some exceptions, because
quality is bound to suffer during a long period of peak output.
But steel people are surprised at how well it is
holding up.
As
do

cold

weather

nears

the fears of steel

smaller than

normal.

the

importance of

producers.

scrap

Their stocks

At the present rate

And

grows.

hand

are

consumption,

authority.

the automotive

field,

output in the United
States last week totaled about 90,293 vehicles or slightly above the/
previous week's total, but was close to 41% below the like period,
a

year ago,

car

according to "Ward's Automotive Reports."

This agency added
strike

passenger

at Ford's

that last week's gain

Kansas

City assembly plant, suspension of Nash

lightweight Rambler series output due to a supplier strike and a
scheduled brief interruption in General Motors' Kansas
City B-O-P
plant output.
10

be seriously crippled within a week to
because of continuing strikes at 10 Borg-Warner plants

days
five

and

Electric

Auto-Lite

out,

factories

VIt expects

will

achieve

409,000

cars

Toledo, "Ward's" points
;'.V

October

production

program

approximately

and 110,000 trucks in its United States plants.

Production

Authority

authorized

output

1,100,000 units for the fourth quarter.

Estiof the

maximum

•

Continued

money"

contrast

dividend

credits.

page

trasts with

000 in

increase of $29,000,-

consecutive

Mr.

name

commenting

the

"The

said:

report,

trend

to¬

Members National Association of Security

STREET

this

also

trend

becomes

the

government,

holding
of

off

inflation

sound

the

It slumped badly.
caught the market off guard.

■

BOwling Green 9-0040

■ t

j
■

■

WILLIAM J. CANDEE
•

„

tf,

NEAR

[Note:

•/

•

reflect

kets.

October 23

STOCKS ARE ROUTED

Declines Up to 8 Points Are Chalked Up

[!]

[Note: The market average declined by only 2V4%.]
That day's market was interpreted by another columnist as
signifying that "Some of the cream has spilled out of the bottle
the milk

but

hasn't turned sour."

October 24

STOCKS FACE ABOUT

Labored Rise

[Note: The lead spoke of "the price collapse" of the previous
days.
Actually, however, the said "collapse" had. merely con¬
sisted of a 21/4% average decline.]

Continued

page

of
a

pleased

are

changed
mar¬

announce

admission

our

Funds received from

deposi¬
tors were supplemented by reduc¬
ing holdings of U. S. governments
by $48,000,000 and this total was
placed in (1). mortgage loans and

membership
in the

rose

September,

San Francisco Stock Exchange
November J, 1951

the

for
■

With Merrill Lynch Co.

Merrill

BRUSH, SLOCUMB 6 CO. INC.

to The Financial Chronicle)

has

Mass.—Sydney

become

connected

Par-

BELL

Lynch, Pierce, Fenner &

WIRE

<-■•!)

•>

/•

Goldman, Sachs & Co.
•

Joins

no. 9V

<
t

-*■" '

SYSTEM

"(Spe-Jteji

Baker, Simonds
tfliii Financial

TELETYPE

with

rvir,',;

below that
■

Chronicle)

SYSTEMS
•

Dempsey-Tegeler & Co.

Montgomery Street

•

San Francisco

DETROIT,' ilich." — RobertrS.
Nadeau is with Baker, Simonds & *

■

t
,

Co./ Buhl

Building,

mbmbets

the Detroit Stock Exchange

of
,,

r 'f

;

Other observers contradictorily ascribed the unsettleending of the Korean tenseness.]

consider¬

the

MARKET

forces

conditions in the investment

(SpeMal

*■>'*.
-

UNSETTLES

evident

preserving

will

first time this year, was
of a year ago.

GEORGE A. BUTLER ' I

November 1, 1951

TENSENESS

ment to the rumored

policy of the mutual
banks during September

continues

°a:

EDNA MOSER

EAST

Portfolio

increase

;

•,

as compared with the corre¬
sponding month last year, and the

5, N. Y.

■■■

SLUMP

[! I

May

Tele; NY 1-1862

•

INTO

October 21

Beane, 10 Post Office Sauare.

;■

f 1

metropolitan

had predicted I
A late burst of selling [Sic?] * i
1
!

are

prospects

disruptive

and

economy

savings

Dealers, Inc.

YORK

NEW

•

STOCKS

adding to their 'nest eggs' of per¬
savings and cutting down on
excessive, wasteful spending.
If

low

WALL

august

sonal

BOSTON,
44

highly

The stock market did what all the
experts

increased

savings evidenced
in
substantial
gains
in savings
bank
deposits in recent months
sounds an optimistic note in our
national
economy.
During this
period of economic uncertainty
and
the
prospect
of
increased

BUTLER, CANDEE & MOSER
1

PUTS

yesterday.

which

Freese

ward

•*

Market Caught Off Balance

this

month

deposit increases
have surpassed those of the cor¬
responding month last year.
>;
in

year

SELLING

September, 1950, and marks

fifth

the

otherwise

and

October 20
LATE

$113,000,000 and
$15,000,000, respectively. Cash also
rose $15,000,000. The gain in mort¬
gage holdings has been progres¬
sively smaller each month since

BUTLER, MOSER & CO.
change of the firm

leading

newspaper:

(2) corporate and municipal secu¬

the

following examples.
*

From

During the month of September
alone, savings bank deposits in¬
creased $84,000,000. This gain con¬

rities, which

announce

making a game of market movements, of
"liquidity," of mistaking prices for values,-*

ably brighter."

V mated car production for the month is equivalent to 37%
National

deposits during this period
the inflow of "new

represented

that, despite the two supplier strikes, the industry
its

market

illustrated in the

corresponding month of 1950.
Three-quarters of the gain in reg¬

Auto production may

concentrating on anticipating changes in quotations of "the
chips" in lieu of appraising the worth of the businesses of which
they represent shares.
This coloration of the price movement is

the

taxes, thousands of Americans

made despite

was

Conn.

Haven,

during each month of the quarter,
deposited were greater
withdrawals less than during

ular

It increases

and of

and

far

scrap

storage yards should be bulging.
The scrap drive in industry is
bringing out a lot of metal", but not nearly enough, concludes the
trade

Freese

amounts
;

people don't like to talk about what the market

last year and reflects the fact that

causing the steel market

guessing.

Carl

The gain
contrasts with a decline of $55,000,000 during the same period

if controls officials
-l

the fallacies

over-reliance

Bank

New

Wilfred May

connotations, in measurably undermin¬

manic-depressive successions of optimism
"jitteriness," thus unbalancing the price structure. It accen¬

tuates

Connecticut

to surround quo¬
figuration, dramatization,
harbors
important
and

speech

glamorization,

and

Treasurer,

Savings

demand

prevalent tendency

with

the individual investor's

President

and

free market

registered

down for the season,

ing soun^ investment principles.

Sav¬

Banks

and

year—and more the next year, if it is needed.

these signs were all

tations

changes
the stock tables.

fortnight's market doings.

Tbe

National

Association

production promises

and

expansion

are

public

numerical

mixing of metaphors, used to describe

the

Controlled

prizefights

commentary
in the stock

on the market's doings have
admirably fulfilling their proclivity to
dramatize, glamorize, and pictorialize.
Here
are some samples of the figurative turbulence
of the language with a
sweetening of jargon

President of

the

been

supply,

under

read

the

the commentators

the past

steel

price

and

season

With baseball closed

September, ac¬
cording.to
Carl G. Freese,

becoming easier.
(4) Structural inquiries have been
decreasing steadily for months.
(5) Conviction that requests for

fail

interest

the ticker

They indicate that (1) Consumers don't want high-priced steel.
(2) The high-pressure conversion market is losing steam. '(3) '
Products, such as sheet and strip, which used tO' be in tightest
are

for/the

market's
on

don't

devised

the proceed¬

closed

sparse,

who, to spice

radio into the stands to listen to the game's broadcast
being played? If so, and with base'

while it is

in¬

mortgage loans.

crease

ings, brings

reduce

holdings of Governments and

"Goose-Egged"?

Are you one of the baseball fans

ployment held at

with

itm

■—

The Commercial and Financial Chronicle

(1650). 19

,>•:*

of its business.

Are Oil Securities Too I igh?
Investment

Shaskan & Company

Dept.,

Research

Are

oil

too

Some

high?

take the
position that oils will go higher.
It is fairly

certain

qualified

"yes";

answer

others

automobiles

about

oil

and

43%

the

have

use

Back

doubled.

than

the total demand for oil products

currently

intrigues

barrels

country
and

1,595 million

was

the

investors than

other

any

for

not

what

for

Michael

possible
growth

and

store

enough

signs

continued in¬

of oils

use

exactly

measure

point to

coming

over

years.

Expansion

the New York Stock Exchange

the

For

Present

thing

one

fairly

certain

expand. In this country the long-

the

fortunes

part

fabulous

this

term

mobiles
tives

ville.

demand

The

Standard

Poor's

and

price index of 14 petroleum com¬
panies was above 300 at the end of
September 1951. Not even in the
banner years of *1929, 1946 or

1948
did oil shares top the 200 mark in

commodity, investors have bid the
current prices of oil securities to
their highest ranges since Titus-

for

the

increase

use

next
an

oil.

not too high at current prices

industry basis. This opinion

is founded

on an

intensive survey

ot facts and

figures in the oil in¬
This article, which pre¬
sents the highlights of this survey,
discusses the industry's overall
demand, supply, and price factors.
dustry.

few

determining the strength of
industry the factor of demand

is of prime
overall

importance. From

and

long

run

point

rate

future

the

same

consistent

mand.

rise

in
:.

the

they have in the past.

enjoys

de¬

that

Consumers of oil products have

tho

dynamic

field

will

Petroleum,"
that world

and

increase

1951

about
.

mean

total

crease

in demand

1950's

12.6%

can

demand

has

been

came

the

hardly

less

1949,
in

than

has accelerated the

years.

this phase of the

worth

industry will be

billion
its

annual

increased

million pounds

from

production

from

the

well

to
that

...

extremely healthy

itself,

this
the

added

when

oil

one

industry

provided with the capital

STOCK

Dept. has prepared
of this leading oil

uncertainties

•

t-,

out

some

times

for

continued

oil

and

total

for

domestic

the

demand

1951

Mines)

amounted

special

company.

1950.

country

running
it

York

Stock

Co.

Exports

higher

now

for

this

year

Mines estimates

the

over

activity and normal weather
ditions.

•

;

men
4-6000

who

Railroad
a

comprise

Commission

significant decision.

their function of

the * Texas
have

nav

ii
i
made

Exercising

determining hpw

Continued

page

our

they

protecting her property
with armed force. Now, it

our

State

conjure

Department to hold

III.

State
now

away

If
a

one

treaty, would enter Iran
would be World
of Iran he would realize

the north, and presto, there

would study the map

ridiculous argument this was.

have a problem with Egypt."

\ His reemergence into international
into

propaganda of Russia's

described above would have
had he been in office, not in just the way it did.
I doubt the spectacle

order, some sense to the
fact

But the British under
result is

Department's persuasion backed off and the

physical might.

happened

its hands in

the danger

Gulf, Russian troops under an old
miles

of provoking Russia.
Abadan in the south and on the Per¬

Churchill hasn't been deluded by the

'••••>••

In addition, the astute group of

NEW YORK 6, N. Y.
WOrth

for

War

con¬

This time, Attlee forgets all,

Russia into war and in the old, tried

and

just what

latter. half

This estimate is based

the Iranians act up and tell Britain

horror

700

the

occasion

sian

told, that this would bring

in which Britain had of

way

Should British troops enter

the

of provoking

the current high rate of industrial
Exchange

Exchange and all principal exchanges

to speak.

get out of Abadan.

got to

proven

were

nationals* made ready to resist

holy

was

ac¬

average

B/D

the war and Britain was right under

few months later,

informed, to implore Truman
"extend"

and

Demand

undoubtedly
million

and

9.7% greater

6.8% increase in the second half

of 1950.

has

about the risk

aver¬

even

will

over

she

same

this period

into

within.

counted for 409,000 B/D.

The" Bureau

the

Demand

than the year before.
is

gain. of.

;

this spectacle: Several months ago, Attlee came

fearful,

was

officially

Then

7,063,000

entire year.

upon request

Ira Haupt

day)
compared with
a

atomic bomb in Korea or to do anything to

Russian guns, so

(according to the Bureau

(barrels

war.

Russia

products in the second quarter

now

not to use the

products

future.

near

period

Consider

running over here, as the public was

strong

oil

off.

willing now to let Churchill conduct our
foreign policy and we pay the bill. We would save money. In
this new global leadership which we haVer£lequired, there can't
be any question that we need a guardian.
»:. -

number of elements

indicate

friends, all right, but Roose¬

For my money,

qualification. Still, there

to be

being

inspired, had been taken, we would have been better

the

the current demand picture with¬

wily Churchillian trick

•

most brilliant man, could see through the charming
Ha, ha. What fun it was to outwit Winnie. Manifestly
if Churchill's advice in this instance, regardless of how selfishly

complexities of the indus¬
try make it difficult to evaluate

well

Telephone:

Ah, ha,
_

Roosevelt and Winnie were good

and the

that

BROADWAY

Great,

old rascal.

one.

aged 6,654,000 B/D

111

But the

Roosevelt himself, Roosevelt the

that

apparent

„

velt

annually to 64

There

the

Sew

bill we've got to pay toward her support.

through the Balkans.

invaded

Domestic Demand

10.8%

GROWTH

Curb

II.

........

today's

B/D

Members

War

industry to return to its normal

growth pattern

The

pounds.

significance

decade

SOCONY-VACUUM OIL

York

the proposition that Britain is an indis¬

industry will lion of
power. Well, the war wasn't being fought for:
its petro-chemical pro¬ should not have any serious •ef-"^' Britain's advantage or to preserve the British empire or her anti¬
by 400% in the next 10 feet. Actually, the removal of this
quated foreign policy. It was being fought for something higher,
God only knows what.
It was further stated that abnormal demand would allow

oil

Ntw

certainly would

int^^o^^S^yhe^^^inating

the

The

Copy

relaxa-rs^.-i.tp-ikeep/Russia out? ot Eastern Europe and let Biitain remain as

eudden>

foreign policy.

complex toward Britain and Churchill throughout World
He brushed aside Churchill's proposal that Germany be

had this

de¬

nied that the present world arma¬
oil

phe¬

prevailing attitude in this country seems to be to strip Britain of as
much of her empire standing, as much of her sources of raw ma¬
terials as possible and make up for it with our own money.
' >

few years

past

American

to accept

are

the!more of

top of

over

While it cannot

for

pensable dependent of ours, and we have accepted it, then the
more we kick her in the pants in her dealings with subject peoples,

that the growth

seen

If I

complexes that it benefited Britain.

requirement

increase

over

nomenal.

in the

survey

consumption of

products

foreign policy.

our own

There is an influ¬
ential element of our people who, while insisting that our desliny
is inextricably woven with the British nevertheless take a fiendish
delight in kicking them in the pants. In World War I, the attitude
of these people, and it was reflected in our government, was that
in return for "our saving Britain" she had to give up her colonial
possessions, she had to give them "democracy." This attitude in
World War II, again reflected in our government, was to make sure
that in the process of our again saving the world for democracy,
Britain did not profit from it.
Such an attitude has contributed
immeasurably to the break-up of the British Empire.

•

published by
it is esti-,

influenced

have

11% from the previous year. This

demand

Our Research

nated

Picture

tags

for

their commons, would like to get

just

little

ner

share into

syndicate, at
_

1Jt

With Montgomery,
PHILADELPHIA,
gomery,
Broad

Baltimore
nounce

& Co., 123 South
members
of
the

Scott
Street,

York

New

and

Stock

the

Scott

Pa. —Mont¬

Products are used for domestic
gas» where Public utilities are
lacklnS> and "bottled gas" is economical and increasingly popular

for

to hit the market with too

inS

big

jag of new stock, lest

same

prove indigestible.
,So they accomplish both objectives by selling
a
security convertible into

common

above

current

levels,

running trucks, buses and
factors. Warren is also a growfactor in synthetic rubber,
chemical, plastics and aviation

fuelsThis
used

est

convertible is quite easily

making

salable, companies benefit further
because

28.7

The

sidiary;

Since

their
an

they

don t

investment

underwriting fee

stock deal

now

have

bankers
as

pay

big

common

would have called for.
is

ideal time for

vertibles- -usually

first jo

con-

be of-

minority interCo., thus

Devonian

wholly owned subin this way adding

and
million barrels

serves,

and

of natural
assets.

had

bond money is being

new

to buy out a
in

been

months

gas

billion

crude

cubic

re-

included

ended

earnings

for

June

the

30,

1951,

able

Coke &

5, N. Y.

Stocks—Third quarter comparison and

—

Descriptive brochure

—

Chemical.

105

Stanley
Co., 30 Pine Street, New York 5, N. Y.
Also avail¬
bulletin on Ohio Oil, Studebaker and Pittsburgh

American Barge Line

Company—Analysis—Dayton & Gernon,
111.

South La Salle Street, Chicago 3,

Carborundum
New

Company—Analysis—Terry & Co., 44 Wall St.,

York 5, N. Y.

Company—Analysis—Eisele & King, Libaire,
Co., 50 Broadway, New York 4, N. Y.

L. E. Carpenter &

Stout &

COMING

City of Philadelphia

Investment

Bonds—Semi-annual appraisal—Stroud &

123 South Broad Street, Philadelphia 9, Pa. Also
available is a semi-annual appraisal of Equipment Trust Cer¬

EVENTS

Co., Inc.,

Field

tificates.

Consolidated
Nov. 9, 1951

New York
Association

Co. Inc.,

(New York City)

Industries,

Security Dealers

the Waldorf-Astoria Hotel.

14, 1951 (New York City)

Association
Firms

Annual

Stock4

Exchange

Meeting

the

Board and Election.

Nov. 25-30, 1951

(Hollywood

Beach, Fla.)
Investment Bankers Associatioi

Annual Convention at the Holly
wood Beach Hotel.

Sept. 28-Oct. 1, 1952 (Atlantic

City, N. J.)
American

Bankers

Association

Annual Convention.

Oct. 19, 1952
National

ciation
Plaza

(Miami, Fla.)

" /

Security Traders Asso¬

Convention

Hotel.

the

Chicago 4, 111.

Cuba—Bulletin—Dreyfus & Co., 50
Broadway, New York 4, N. Y.

Drewry's Ltd.—Report—S. H, Junger &
New York 5,

Nov.

Inc.—Analysis—Republic Investment

231 South La Salle Street,

Consolidated Railroads of

26th annual dinner at

feet

to its underground

Devonian's

figures
120 Broadway,

Meeds, 120 Broadway, New York 5,

Heller &

association with them

Philadelphia office.

30—New York Hanseatic Corp.,

Aluminum Industries, Inc.

an¬

Henry A. Berwind, Jr., as a
registered representative in the

Bulletin— Dean

N. Y.

Stocks—Review—Sutro Bros. & Co., 120 Broad¬

City Bank

York

Philadelphia-

Exchanges,

par.

" Warren

treasury
for new capital
raised; and some managements are

the

scared

—

Stocks—Laird, Bissell
N. Y.
Over-the-Counter Index—Booklet showing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
yield and market performance over a 12 y2-year, period. Of
the 35 companies represented in the National Quotation Bu¬
reau's Over-the-Counter Industrial Stock Index, 12 trace
/
their ancestry to years before the Civil War and another
nine had their beginnings in 1900 or earlier.
Twenty-three
of the companies have been paying dividends continuously
from seven to seventy-nine years.
Of the other twelve, one
started paying dividends 119 years ago, and its stockholders
have received annual dividends regularly with the exception
of the years 1833, 1840 and 1858—National Quotation Bureau,
Inc., 46 Front Street, New York 4, New York.
\7•
;'
' 7 "7v r
&

Wall

Earnings

analysis of 17 New York City Bank

Butler, Candee, Moser

debentures

Petroleum is reported
*° be the largest independent producer; of natural gasoline and
ll(*uefied petroleum gases.
Its

expansion.

New York

New Firm Name Is

Butler,

Quarterly

York 5, N. Y.

of Sept.

New

the fall.

recently offered, by an

The second open season for convertibles is (like now) when busiof all

1963.

and

„

Banks and Trust Companies—Comparative

York

New

all nice convertibles for

are

New

way,

covered

Appraisal

Witter & Co., 14 Wall Street, New York 5,

Motion Picture

suit
you,
look
up
Wheeling Steel 3V2S of 1965, De¬

eminent

Market

pay¬

ground

plushy as Phillips, but moving
impressively forward.
Let me
present the $15 million of Warren

Rio

porate personality departed from
the financial flophouse.
/

ness

La Salle

men¬

you're

Outlook—Discussion—Paul H. Davis & Co., 10 South
Street, Chicago 3, III.
'
y
; ■ J

Machinery

slight premium for the

conversion feature.
If

ones

where

Haupt & Co., Ill Broad¬

New York 6, N. Y.

way,

ibles, probably you'd better stick
to

■.

Over—Bulletin—Francis I. du Pont & Co.,
Street, New York 5, N. Y.

Machine Tool Industry—Review—Ira

for buying convert¬

reasons

Another

news.

Denver

preferred

for

1 Wall

lot of

Is the Bull Market

So if protection against

velocity.
your

whale of

Company,

Broad Street,

look
best in a soaring uptrend.
sell-off they can shed 10%

their

Trust

Department, Manufacturers
New York 15, N. Y.

Foreign

editions

recent

convertible second preferreds

petroleum "convert" has just come

Railroad bonds like Frisco's

4%s

Foreign Exchange Quotations—New issue listing 144 quotations
of the currencies of various countries throughout the world—

wrong ones.

grade

Bill—Bulletin—Eastman, Dillon & Co.,

Street, New York 5, N.Y.

15 Broad

ity was made convertible into the void was created "when Phillips
common

defense.

Effects of the New Tax

for

"converts"

April 1, 1959, a speculative gim-

which

issue

gage

are

switch

troit Edison 3s of 1958 and Amer¬

original mort-;"if money" should the market in
went
sour, general
and
CP in particular
Then,
a
sop, or a solace, to break into high ground,
investors for the senior lien posiSwitching to the industrial contion they had lost, the new secur- vertible department, an obvious
bond, in place of

vestors

their

1951—single
revised books), $50.00.

(spiral bound), $10.00; yearly (6

copy

monthly
arid volume
York Stock

showing

charts

highs, lows,yearnings, dividends, capitalization,
on
virtually every active stock listed on New
and Curb Exchanges from 1940 to November 1,

however, lots of in¬
kidding themselves in

Frankly,

issue—1001

November

Charts—New

weak market, or surg¬

ing ahead in

it \

thviaa/4aH

/ nn

And both emS1*ver>,ea,
phasize the conversion point.
any standard,

preceded an appraisal of securities, Pnow delve more specifically
into my topic.
Convertible securities originate

times.

about

earned

spirals that is!).

So, having concluded as bizarre
and whimsical a prelude as ever

whatof

payment

regular

Interest

the

relieves

bondholder of any anxiety

ket.

The

pacific

£anadian

posure

elements—the

Philadelphia 7, Pa.

The

•

Ira U. Cobleifh

Walnut Street,

1342

stocks,

common

Roney

N. Y.

' ^

;7-' 7-v>7-.

Co., 40 Exchange Place

Continued

on page

Volume 174

Number 5060

The CommeTcial and Financial Chronicle

(1653)

STRAN-STEEL

Unit of

DIVISION.

Great

Lakes

Steel Corporation. Plants at Ecorse, Michigan,
and Terre Haute, Indiana. Exclusive manufac¬
of

turer

"America's most useful

world-famed

Quonset buildings

and

Stran-Steel nailable framing.

National's Stran-Steel Division produces the Quonset-^-

building"

GREAT

LAKES STEEL CORPORATION, Detroit,
Michigan. The only integrated steel mill in the
area. Produces a wide range of carbon
steel products
is a major supplier of all

Detroit

The world-famous Quonset was conceived and
in

answer

met

the

requirements for

durable yet

shipment

the needs of America

simple
all

Stran-Steel for

our

Since the war, this
been

applied

triumph of Stran-Steel engineering and

successfully

makes available

as a

Mills at Weirton,
Steubenville, Ohio. World's
largest independent manufacturer of tin plate.

WEIRTON STEEL

produced by

COMPANY.

West Virginia, and

Producer of

were

agriculture, industry and

America

one

mass

production has

America's building needs! A complete line
at

steel

wide

range

of other important

products.

commerce across

the

reasons

ing in the development of
iron

ore

new

participat¬

Labrador-Quebec

fields.

HANNA

one

FURNACE

CORPORATION.

Blast

of the principal

why America today knows

CORPORATION

NATIONAL MINES CORPORATION.
and

PITTSBURGH, PA.

Coal mines

Pennsylvania, West Virginia and Kentucky. Supplies high grade metal¬
lurgical coal for National's tremendous needs.
in

properties

NATIONAL STEEL PRODUCTS COMPANY, Houston,
Texas.

GRANT BUILDING

Cleveland, Ohio.

from extensive holdings in Great

furnace division located in Buffalo, New York.

leading producer of steel.

NATIONAL STEEL

ore

Lakes region. National Steel is also

THE

Corporation is

of tffe

HANNA IRON ORE COMPANY,

Produces

large the basic Quonset benefits of

economy.

Division of Great Lakes Steel

subsidiaries of National Steel
National Steel

rigid and

building suitable for all climates and for efficient

strength, durability, quick erection and
Stran-Steel

of steel for the automotive industry.

armed services.

even more

now

strong,

was

of the world. More than 150,000 Quonsets

of versatile Quonsets now serves
nation

...

types

all-purpose building that

to erect... a

parts

produced by Stran-Steel Division

at war.

Recently

the Stran-Steel

erected

Division,

warehouse, built by
coven

208,425

square

feet. Provides facilities for distribution of ateel

products throughout Southwest

SERVING

AMERICA

SERVING

AMERICAN

INDUSTRY

The Commercial and Financial Chronicle

(1654)

Now

Pennsylvania Brevities
PTC" Pot

Tempest in the
PHILADELPHIA

—

what

gives preliminary indications of
developing into an all-out Pier
Six Brawl, a stockholders' com¬
mittee has forced management of

Transportation Co.
special meeting on Dec.

call

10 to vote

amendments to the

company's

the

which

by-laws

committee advocates.

committee

stockholders'

The

which time
in

formed in 1949 at

was

control of PTC was still vested

set

trust

Trust, thus returning to the stock¬
holders the right to
vote their
shares

they

fit.

see

whose interests

meeting, stock¬

special

will be asked to vote on

specific proposals embody¬
ing changes in the existing by¬
laws.
All
four
proposals,
if
four

would limit and curtail
and broad powers in¬

adopted,

the present

the

vested

Execu¬

seven-man

committee's

the

One

pro¬

posals includes the complete elim¬
ination
of a present
three-man
Industrial
Relations
Committee,
which it believes

the existence of

unnecessary.

stockholders,

letter

Presi¬

Charles E. Ebert, company

holders, Four such directors have

dent, terms the stockholders' com¬
mittee

Listing of the
ferred shares
(Baltimore

and pre¬

common

the Philadelphia-

Stock

Exchange,

thus

improving marketability.
Establishing
for

the

common

par

and

"self-seeking

inex¬

perienced group, spurning normal
procedures for cooperative effort
with the Board." The committee,
he

claims,

set out

"has

grasp

control of this great public utility.

value of $10
lowering

shares,

transfer taxes.

Reducing tenure of office of di¬

Objectives in process are:

structive,
concern

the

and

motives

The

their present

effect

activities, which we

be disruptive and de¬

consider to

rectors from four years to two.

acquaint

matters

are

serious

PTC

inter¬

stockholder

To 'activate

est in

trying to improve the cor¬
porate structure of the company
whenever possible.
continue

for

work

either in the throes of a fight with
IVIike

Quill

over wage

in the process of

negotiations

appealing for

higher rate schedules. This time,
however, we plan a real battle."

shares of the 1,469,389

We solicit

American Pulley
A. B.
I

outstanding
and

common

pre¬

ferred

General Manifold & Printing
Leland Electric

of PTC

inquiries in

shares, in establishing its
for
a
special meeting.
Such request by a minimum -of
20%
of
the- outstanding
stock
makes such action mandatory.
demand

Members of the committee are:

Farquhar

Grace De

Coursey, Joseph N. Janney, Edward F: Kelley, Robert W.
Smith and Eric E. Tinney, Samuel

Bearings Co. of America
Riverside Metal

Gordon, Esq., is committee coun¬
sel.

HERBERT H. BLIZZARD & CO.

for

tab

ers.

Pennsylvania Water

Last

& Power Co.

-Company's

makes

1950

the

January

report

interesting reading for

investors interested

company

12-year period of

existing court order, the
such deficiency, if

(?/.?■

and

award

revised

working

wages

conditions

granted just prior to January re¬
sulted in substantially increased
costs of

operation.

for income and appreciation.

BOENNING & CO.
Philadelphia 3, Pa.

tained

which

filed for and ob¬
higher fare
schedule

became

effective

Feb.

Leeds &

Lippincott Units

Talon Inc. Preferred

American Dredging Common

Lehigh Valley RR.
Annuity 4%'s & 6's

The

Company
of

come

Phila.-Balt.

Pennsylvania
Teletype
PH 375

Stock

Exchange

Bldg., Philadelphia
N. Y. Phone
COrtlandt 7-6814

Stabilization
reported

.Board.
net in¬

$229,207 for the first half

1951, which may be adversely
readjusted to approximately $169,-

Stockholders
that

being carried
sible

advised

also

are

in respect to pos¬

sale

the

company

the

of Pittsburgh.

City

lished

ence

recently pub¬

Allegheny Confer¬
Community Development;
a

and (in

recommended,

strongly

fares

comipany

file£ for higher

Aug. 10, the increases be¬

coming effective on Sept. 18.
city is again protesting the
schedules.

hanging order of the SEC to Phil-;
adelphia Company to divest itself
of its railways, stock/the creation;
of a transit authority still appears;

Vice-President
that

charge of

denies

creases

in passenger commutation

fares

$45,-

were

in¬

proposed

set up in order to com¬

pensate for reductions in

certain

freight rates.
if

registered their 19th consecutive
semi-monthly
decline since the

Oliver

latter

company's

first

the

year.

Henry Perenon Joins

four

for

Henry Swift & Go,

Seven of the
stock¬

larger

of the out¬

holders, owning 71%

have approved
Both companies

standing shares,
the agreement.

farm

industrial

and

machinery.

Farquhar will be operated
division

as a

Oliver, retaining its
manufacturing and dealer organ¬
izations.

:•/

•

-'. %

-.•

;

■

Brooke

•

'■

Co.l Sold

Iron

READING—^The; Colorado Fuel

and Iron

Corp has-disclosed plans

the E. & G. Brooke
presenting;
its
logical and likely ulti¬ subsidiary, the Richard Ore Co.,
mate solution.
Wharton, N. J. The consideration
A report of nine months' opera¬ is reported to (be preferred and

to financial analysts as

the

acquire

Iron Co. of Birdsboro, Pa., and

most

tions of Pittsburgh Railways

Co. is

expected to be made public within

weeks.

the next 10 days to two

Saved
It

came

Bell!

by the

gavel, but it does appear that the
llth-hour proposal by Price Fire¬
place Heater and Tank Corp. of
itself" to the all-

Buffalo to "sell

Mander

Roberts

but-defunct

Corp. of Philadelphia may re-es¬
tablish the Tatter's status as a go¬

SAN

FRANCISCO,

Calif.—

approximately Henry Perenon has become asso¬
$6,400,000. Both boards have ap¬ ciated with Henry Swift & Co.,
490 California Street, members of
proved the plan.
.vV(
the San Francisco Stock Exchange.
Mr. Perenon was formerly trader
worth

company

Scott

the in¬
of a poised

Henry Perenon
(Special to The Financial Chronicle)

Colorado

the

stock

common

late to stop

too

itial downward sweep

Paper

Absorbs

of Scott Paper Co.

6 to

vote

merger

the

Under

and

Scott

■

day.

With

Sound-

would

receive

each

LOS

Sound'

common.

Hopkins, Harbach

(Special to The Financial Chronicle)

one-quarter

for

view

same

proposed plan

stockholders

one

the

„

V. NlYAIt

■■|'2|H£|C

Soundview stockholders will meet

view

Staats Co.

of Soundview Pulp Co. into Scott.

in San Francisco

Francisco office

San

William R.

will meet Nov.

the proposed

the

with

PHILADELPHIA—Stockholders

ANGELES, Calif.—Francis

Nixon

with

become

has

associated

Hopkins, Harbach & Co., 609

South Grand Avenue, members of

investment.
In

stock dividend of the Los Angeles Stock Exchange.
5% in addition to the regular 30 Mr. Nixon has recently been as¬
ordered held on Oct, 3 and~cer-/
cents
in
cash, management of sociated with Pacific Coast Secur¬
tain personal property of the cor-,
American Pulley Co. stated that ities Co.
and Edgerton -Wyoff &
poration was sold on that and the unaudited
figures for the fiscal Co. In the past he conducted his
following day. The court has re¬ year ended
Sept. 30, indicated a own investment business in New
The

sale

foreclosure

had

been

fused to confirm sales of the com¬

pany's real estate, tools, dies, jigs,
industrial fixtures and good will,
or to consider bids made thereon,

determination of stock¬
holders' wishes in respect to the

Briefly, the

Price

erts

for

unissued shares

authorized but

of;

M. stock. The merging com¬

R. &

manufac-1

is engaged in the

pany

fireplace

manufactures
for

Rob¬

exchange

Mander

of¬

company

fers to transfer its assets

have

time

essential

both

peace

applications,
months

ported

net

before

1951.

about

60%

previous year, with net
ings up about 10%.

over

York and Los

Hill Richards Adds

:
•

v-■

Baldwin-Lima-Hamilton
announced

log

(Special

Corp.

increase in its back¬

Angeles.

earn¬

LOS

The Financial Chronicle)

ANGELES, Calif.—Lyman

amounting to approximately Beardsley, James C. Flanagan, A.
for the year ended G. Foreman, Frederick T. Foster,

$200,000,000

William

Sept. 30.
;. v//;.

.Red

■.

Arrow

■;; ; ■;

Lines, vvhich

•

oper¬

ates about 50 miles of trolley serv¬
ice suburban to Philadelphia, has
offered
to

the

Gleason,

Daniel

Spring Street, members of the Los
Angeles and San Francisco Stock

its entire trackage
substitute buses

sell

State

Haugh, Paul Jensen, and Richard
H. Rue have joined the staff of
Hill Richards' & Co., 621
South

and

Exchanges.

products;

war¬

the
Price

;

Semi-annual

first

Appraisals

re¬

$344,158

believed

the

tanks
also

and

For

earnings

taxes.

containers

materials and its

war

thus

shelves.

declaring

sales increase

pending

Equipment Trust Certificates

that

earnings could increase markedly
with the enlarged joint asset base.

City of Philadelphia Bonds
Sun

Oil

Anniversaries
as

The

current

double

golden

year
marks
a
anniversary
for!!

two

last

of June 30, 1951

Now available
-

Write

for distribution i

for

your copy

;

v
V' i\

celebrated at
banquets, held this week and
at Philadelphia's Convention

joint

occasion

was

Hall, at each of which attendance
exceeded 6,000 persons.

individuals

ords

ous

service

The

were

They

fares will

•

further consideration of the over¬

new

Management, however,

is confident that present
be sustained.
" •

traffic

is es¬

Acquired

shares of Farquhar.

the

high¬

Pennsylvania's public relief rolls

manufacture

In view of studies

arterial

Carpi, Pennsylvania Rail¬

••

in 1950.

lis

one

negotiations are presently

Three

road

Company's

approximately

made awards some
of Sun Oil Co.—50 years as an - in¬
which, if confirmed,7 will become corporated enterprise and the 50th:l
retroactive to May 1. Effectuation birthday of the company's 1,900-;
of the changes awaits approval by acre Marcus Hook refinery. \ The

The

Members

bitration

000.

Samuel K. Phillips & Co.

bene¬

On July 29 the Board of Ar¬

Wage

$2,-

the current year

Farquhar Co.

be recommended at this time.; "

March, the unions demanded

the

stated

were

$330,000 000.

profit for
timated

■.

Fred

1903 have expanded to

missed.

fits.

Pocono Hotels Units

18.

City of Pittsburgh's
complaints
against the raise were later dis¬

further wage increases and

A. M. Greenfield 5s 1954

which

charge

seven

The company

"SPECIAL SITUATIONS"

assets

500,000 in
over

somewhat

are

pointed out that

was

—

and

increased

but it

use

approaching the city,

'■

against the new
YORK
Announcement
has
company.
Hearings are in prog¬
been made that Oliver Corp. will
ress.
'•
'!:' '
"■
acquire the 95-year-old A. B. Far¬
Mr. Palmer's letter states that
quhar Co. of tnis city through an
in view of this contingency a com¬
exchange of stock in the ratio of
mon stock dividend policy cannot
comes

ture of oil, water and other

operation under trusteeship.

Property Tax
annual

emerged from

Common Stock

This

Early records

vague,

better

ways

any

meeting is scheduled for Nov. 28.

Pittsburgh Railways Co. is en¬
countering difficulty in keeping
up steam in its reorganized boil¬

LOcust 7-6619

cials.

the

offi¬

in addresses

Thursday, November 1,1951

for streetcars in order to facilitate

and
were

years

and to the extent established, be¬

proposed acquisition of the Price
business,
A special stockholders'

Leap-Frog in Pittsburgh

1421 CHESTNUT STREET

Free of Penna. Personal

' «:

s;:

highlighted

the

of $36,291,498

The
stockholders'
committee
ing concern. Ultimately, Roberts
majority of the 21-man presented the signatures of stock¬ & Mander stockholders may re¬
holders representing over 330,000
cover a substantial portion of their

through

Under

larger representation on the board
until

development

Company's

000,000 compared with net income

■

many

Indenture

Trustees,

to all stockholders."

In previous skirmishes with the
committee, the company made no
shareholders as possible with the particular effort'to solicit proxies.
value of the property in which A company official is quoted as
their money is invested.
saying: "In the past we were

the

complete unification of
all transit facilities in the area is

Company's Rejoinder

members

elected.

allowances

in which

incidental with those of the stock¬
feeen

and

for

ti.

growth

amount set aside for this purpose.

management policies.

the

holders

primarily co¬

are

President,

fees

filed

of direc¬

one

company

claims

Trustees and various

ities and

Election to the board
tors

attorneys for
prosecute a more equitable
services
in connection with
the
dividend policy.
«
To obtain a broader knowledge company's reorganization proceed¬
ings "substantially" exceed; the
of the company's problems, activ¬
To

tives, five of which have been ac¬
complished.
Those attained are:
Termination
of
the
Voting

com¬

letter
stockholders by C. D,
to

Palmer,

choice

when the tive Committee, which, as pres¬
company was reorganized in 1940. ently constituted, assumes the full
In furtherance of the best inter¬ powers of the board in conduct¬
ests of stockholders; the commit¬
ing the company's affairs between
tee has listed
10 specific objec¬ board meetings.
voting

tangential

According

addressed to

panel is of the committee's
or has its approval.

Philadelphia
to

comes

plication.

with

awarded
are

having
the

special

B. Marshall

now

Incorporated

PHILADELPHIA 9

emblems.;

director, John

and William G. Rhy-

der, refinery foremen

company

Ji Howard Pew, former

President and

STROUD & COMPANY

rec¬

half-century's, continu-;

ALLENTOWN

•

PITTSBURGH

NEW

YORK)' 8CBANTON

•

/ LANCASTER

yolume 174

Number 5060

The Commercial and

Financial Chronicle

(1655)

Allegheny Ludlum Steel
Preferred Stosk Offered
J Allegheny Ludlum

offering its

ers

rights to

Steel

common

tBy ROGER W. BABSON

for

Mr. Babson lists

.for

each

81,347

preferred share

one

common

Readers

stock held of record

Oct. 31, 1951.
subscription
war¬
will expire at 3
p.m. (EST)

Transferable
rants

Nov. 14. 1951.

The

know .that

free

power

from

Proceeds will be added to
gen¬

gether

plant

with ofher
improvement

tation program
The

new

vertible

now

two

share of

callable

common

prices

$100 after Nov. 1,

operating

declining

nine

stainless

steel

der

trade

the

represent

products,
name

un¬

chiefly to manufacturers
automobiles, industrial equip¬

ment, aircraft and household
pliances.

thousands

are-

being

now

Most of these

plus,

Power

traffic

are

mented

falls

ar>d steam
plants, supplies electric power to
most

Buffalo

New

York

down

State,

New

Exchange. The 3.90% preferred
pays $3.90 and sells at
96, thus
yielding 4%. The common pays

the

from

the

water

into the clouds.

oceans

clouds

eventually turn into
rain and supply the water which

flows

over

nection,

these falls. In this

it must

realized

this

gravity

any

part of the United

reader

has

Niagara

surely

time

pull

should

States

in
as

any

Niagara,
At

so.

realize

that

same

Falls.
visited

never

sould

the

con¬

listed

which

All

the

Virginian

Railway

listed

pull

which

.the New York Stock

ing to

Exchange; The Virginian Railway

certainly

water¬

cannot

not

handicapped

most railroad

for

now

them

steam

severe

first

bullish

They

This advertisement is neither

causing
to

F, P. Ristine & Co.

Magazine,"

display

the

New

atv-the

capital

Avenue, New

competi¬

reservoir.

Systems

have

reservoir, higher than

Burden

Hutton

Co..

M. Kidder &
Co. has opened a branch
office at
Fifth Avenue, South.
It
is

temporarily in charge of Ernest S.
Stevens, manager of the firm's

house

Fort Myers office. '.V '

of these securities.
>

October 31,1951

Exchange,

has

1,716,500 Shares

joined

F. P.

its

Ristine & Co. as director of
investment research and
port¬

folio

Commonwealth

planning departments.

With King Merritt

Edison.Company

$1.32 Convertible Preferred Stock

(Special to The Financial Chronicle)

BENICIA, Calif.—Lloyd Goodin
has been
added, to the staff of

(Cumulative—Par Value $25 Per Share)

King Merritt & Co., Inc.

Halbert Hargrove Adds
(Special

LONG

Mason

staff of

The

Financial

BEACH,
has

been

Holders of the Company's
outstanding Common Stock are being offered the right to subscribe
$31 per share for the .above shares at the rate of one share
of Convertible
"preferred Stock
for each eight shares of Common Stock held of
record on October 30, 1931.
Subscription Warrants
will expire at 2 P.M.,
Chicago Time, (3 P.M., New York Time), on November 14, 1931.

Chronicle)

Calif.

—

added

Floyd
to

the

Halbert, Targrove & Co.,

115 Pine Avenue.

Join
(Special

to The

BEVERLY

Financial

HILLS,

Douglass
Douglass
Copies of Ihz Prospectus

clad, rg h
pel

Joins
(Special

fha

may

he obtained from

undersign d, only in Sides
qrs

any of the several underwriters, in~
wbichsuch underwriters are qualified to

in securities and in which thz

Prospectus

may

legally be distributed.

King Merritt
The

any

offer shares

may

Calif.—Don

Co., 133 North Robertson Boule¬

vard.

purchase

Prospectus.

Chronicle)

H. Bailey and Bruce G.
have joined the staff of
&

The several Underwriters have
agreed, subject to certain conditions,
unsubscribed shares and, both
during and following the subscription period,
of Convertible Preferred Stock as
setjprth in the

Douglass Staff

Financial

Chronicle)

LOS

ANGELES, Calif.-.Earl

Van Keuren has rejoined the
staff
of King Merritt &
Co., Inc., Cham¬
ber of Commerce
Building. He was

recently

with

Cantor,

(Jlore, Morgan & Co.
Harriman

Fitzgerald

*jWith Pacific
(Special

LOS

The

ANGELES,

Kenison

Securities

with

Calif.—Harry
Pacific

(Special

634

South

;

■

*
;

,Lehman Brothers

Union Securities Corporation

(White, Wejd'&Qo.

William Blair &,Company

•

■

Allyn and CpiPR.any

Chronicle))..

Hemphill, Noyes, Graham, Parsons & Co.
%

Calif.—Lee

with J. Henry
Helser. & Co. .He -was
previously
.With E. F. Hutton & Co.
"1.,

A!ex.;Brown &Sons

Hornblower & Weeks

■

Lee.Higginson Corporation

f.S. Mosdey & Co.

ncorjporated

Clark, Dodge,& Co.
.

■

A, C.

.
i

now

\ " •? "

■
_

Financial

Merrill Lynch, Pierce, Fenner .A Beane

■

FRANCISCO,

Barrett

Goldman, Sachs & Co.

Bacon, Whipple & Co.
i

The

Central Republic Company
(Incorporated)

.Kidder,'Peabody & Co.

Smith, Barney & Co.

Corporation

Coast

^With J. Henry Helser
SAN

Plyth & Co., Inc.

Incorporated

Company,
"

■

(Incorporated)

Chronicle)

Spring Street.
I

A. G. Becker & Co.

Harris,.HsII &.Cpnipany

Coast Sees.

Financial

Ripley & Co.

Incorporated

& Co.

The; First Boston

•

Paine, Webber, Jackson & Curtis

Fifth

York.

announced

Co.,

820

But,

any

NAPLES, Fla.—A.

natural

any

New Kidder Branch

most

standpipe

,630

water

water
systems
electric power is needed
pump the water up into

.Gravity

a.re

M. Burden Moves

investments, has announced

P. Ristine &
Co., 15 Broad
Street, New York City, members

■:E.

were

Downtown
'
•
'

*.V

Issue

today that Kenneth F.
Dietz,- former Manager of the in¬
vestment research department of

the removal of their
offices from
75
West
Street
to

William

of the New York Stock

announcement .issued

Pandick, President. The
which were selected
by
"Financial World

run

offer to sell nor a solicitation of offers to buy
offering is made only by the Prospectus.

The

Press, Inc., opened on
exhibit of the "100 Best
Reports of ,1950," accord¬

ap¬

Kenneth Dielz With

In¬

reports,

economically operated
are
Gravity Water¬

inexpensively

power.

stocks.

War

Digest"

Miss A. C.

supply householders
with water.
Why? The answer is
that gravity does most
of the work

Companies

"Readers

The

Annual

downhill
deposit box, they should
through the pipes and up to
your
gradually become more valuable
-bathrooms without aid of
and give, you good
costly
dividends each

Railroad

for

Pandick
Oct. 26

works which

but if you put them
away in your

who

Best Annual
Reports
Of 1950 on Exhibit

preferred pays $1.50 and sells
for
28, while the cpmmon now

The most

safety

o r s

article entitled
"Should You Buy Shares in
Amer¬
ica?" is good for
everyone to read.

public utilities

get rich
these stocks,

year; all from Gravity.

"Wanted:

October.

from the coal fields of
West
Virginia to Norfolk. The stocks
are

n v e n

machines,

read

ventions"

have

.cars

se¬

Waterworks Securities

cannot

buying

empty

should

heavy

and

upon

investment.

Athletic Club.

25, thus yielding

One

downhill

Enthusiastic i

runs

company are
New York Stock

that

that only

being used

6%.

quickly

this

the

$1.40 and sells

nearly

small portion of the
power is now
fall

Ohio.

the

they can use gravity
"perpetual motion"

$2.50 and sells for 33, thus
yielding
nearly 8%.
;

City.

which takes

Roger W. Babson

stocks

coast

think

West¬

their

most

and

available,
being

findings, consider these

curities

pays

from

York

let

are

gravity. Based

your

time;

company,

stocks

ascertain to what,extent it
is
operated by

I believe that the
stocks pf all
three roads are safe
investments;
but I will quote
only the stocks

Company the prime
Gravity Develop¬

by other

private

bonds

the Vir¬

Chesapeake

mostly only
uphill again!

power

ment. This is .the .company which
taps Niagara Falls and, supple¬

ern, ,and
of these

water

used every day.

The

"Allegheny being used. The part of the

Metal"
of

sold

There
powers

southwestern roads;
favorites are the three

Gravity Reads. These are
ginian Railway, Norfolk

beauty.

course, the
heat of the sun

The

subsidi¬

through

sales

due

gravity,
of

to
ac¬

case,

carbide .alloys,
valve
steel
and
-high temperature and other spe¬
cial alloys.. Currently about
40%

consolidated

produces

power

It is

plants, manufacture and sell stain¬
less
steel, ! electrical
steel
and
alloys,
tool
steel
and
tungsten

fall

stock

1959, plus

crued dividends in each
The company and its

aries,

Every water¬

company's option
$103 per share and

at
thereafter at

into

the

initially

are

con¬

preferred.

scenic

hawk

there

stock, initially at the rate

for each

for

electric

Yes,

three.

1961

Let¬

while .the .water going
the falls is
"wasted," except

seen;

gravity.

underway.

Nov.

over

benefit from

rehabili¬

preferred stock

before

common

available, to¬
funds, for the
and

roads may do
,well for some
also certain

operating mills
ters
come
to of various
kinds; but they are
me
asking if. gradually being converted to
there are now
generate electricity which power
any ways for
can
easily be transported. I, how¬
investors to ever, consider the
Niagara Mo¬

remaining at the close .of
the subscription period.
and

greatly

benefit.

funds

al¬

everyone

could

Barney & Co. has agreed
purchase
all
unsubscribed

eral

coal,. oil,

are

but

have

which

Smith,
to

been interested in the Force
Gravity and its possibility for

ways

A group headed
Boston
Corp. and

First

the cost ,of

in the city,
aqd gravity
flei^orms
work. If the water
system
in your
community is operated
all the

equipment; while their rates
determined by political com¬
missions, leaving little profit for
stockhoiders. Transcontinental

three ways for investors to

benefit from
gtpyity: (1) electric power developments;
(2) rsuhjpads .hav¬
ing fayprahle gravity inclines, and (3)
gravity waterv^ks
whiqh supply householders with water.

new -$4.37 V2
cumulative
preferred stock at $100 per share

the,rate of

and

shares of
at

mands

Corp.

stockhold¬

tion
fropi t'liQks, automqhUes qnd
MsRlanes; their expenses are con^tpqfly increasing from ^wgge de¬

.Dqan Witter & Co.

The Commercial and Financial Chronicle

(1656)

during

LETTER TO THE EDITOR:

Takes Issue With Mi. 6. F. Bauer

•

issue

your

which
th

been the usual

{

Mining", writ-

Bauer,

tained

of¬

Board

Trade, but the
letter

com¬

years

The0 tasS ofSupreme

gold

pletely fails to
make good
the
promise

and because

had

lar

inherent

its

Harry Sears

and

came

assumed to comarticle in your Sept. the flood Qf
issue regarding the gold m
through
the

Canada where the
E. Dye, General
Manager of Dome Mines, Ltd., is
a
responsible operator. This article presents in forceful detail
ing industry in
author, Mr. R.

the

situation

critical

very

The

»/cSSstantfy

the f inanciai ability of the citizens

has

which

$37.29,

conse-

and vital part in establishing safe

quently caused a loss to Canada .-and stable future fiscal policies.
of 41% of its gold mines, 32% of R 1S ln fact the heart of the prothe
total
labor
employed, and gram and on it rests our hope
62% of dividends to

stockholders,

period.
commendably -states,
claim to being econ-

in this 10-year
Mr.

Dye

"We lay no

matters than

other

omists

;

products em-

use

gold

"reeling from blows," that day's

EXCHANGE

ha§

geven

been

The

Mint.

the

Thus,

SAVAGE

mercial processors o£ gold, thus
making Qf them a favored class
"The j°int action o£ the Fundthe Treasury and other government agencies is in effect a con"
spiracy to deny gold producers
access to world markets and to
deprive them of their property at
steadily decreasing prices under
threat of criminal prosecution and

not

they

mining

producers

closed

down and the bulk of production
from those still operating comes
from
dredging,
but .dredging
largely

are

exhausted

by the purchasing power or value

of the dollar at that time,

mining
get

$35

per

insure

future

supply

that

industry

formulas

0id

prominent market letter writer's image of the stock market

This advertisement is neither

mere

gold

constantly

monetary base

ting $37.29 per ounce, it is rather
difficult to locate his logic.

losses

acac¬

to world free markers,

such

gold

PrMrS'

can

Bauer

differences

where
be sold at higher

explains

between

from

nv_,

for in-

reserves

gold

markets"

where value is recog¬
nized and the natural law of sup-

ply and demand controls
he

"free

terms

markets,

and

(which

runaway" gold
the
kind
which

174,1.57 Shares

Sharon Steel
'

'
,

(which
These

have
only
$14.70
purchasing
power),

now

worth

of
are

favors.
accent

the

We
on

"free

should

markets"

place

special

"free".

Mr. Bauer states

that, "In 1934,

the gold content of the U. S. dollar

was

reduced from about 1/20th

an ounce

The

buying

tive

money

to l/35th of

an ounce.

power of representa-

decreased

about

50%—thus obviously endeavor-

tag to blame the subsequent loss
of purchasing power of the dollar
on
the change in the gold con¬
tent.

This

,•«,

nrtirlp

A\rpr\PA

not

supported

the

Corporation
1

Common Stock

Price 2542 per

and meet their costs with 42c dol-

Roosevelt pledge, would call for

price

gold

present

comment

this

Instead,

so.

$84

his

but

fails

letter

de-

united

States

mines

the

Canada

fate.

same

has been the

have

The

same

suffered

prime

have

of the gold

each

case—

greatly inflated costs of operation
lars..

Even

dealing with this "Cult"

^ Vs consider 8°ld as a com™odd:y °f commerce in the United
States- so

that

the

makes
can

"35

:
one

Gold

Cult",

that

Mr.

before us.

wages,

We will quote from a letter sent
by the California Gold Committee
to

letter is there any suggestion for

Directors

the

Inter-

national Monetary Fund just previous to their recent meeting in

relief except that the proposed

Washington:

gold might freeze costs where they
are» which is very cold comfort
for the 90% here and the 41%

"Previous

the

Gold

the

Reserve

adoption
Act

President Roosevelt made

1934,

radio

address to the citizens of the
United States, on Oct. 22, 1933,
saying:
'When

price level
tablish

and

will

have restored the
shall seek to

maintain

not

change

its

chasing and debt paying

es-

dollar

pur-

power

change

paper

dollars

for

The "$35 Gold Cult,'? comprises
two groups, The Economists? Na-

£io"al

Col?mdtee °{h ;Ii°nc}ar?
aa'dThe Gold Standard
League, .both- following^ he economIC theories--of Dr. Walter E.
Continued

on page

Glore, Forgan & Co.
Kidder, Peabody & Co.

Co.

Incorporated

Shields &

Lynch, Pierce, Fenner & Beane

Stone & Webster Securities

Company

Hemphill, Noyes, Graham, Parsons & Co.

Corporation

Hornblower & Weeks
A. C.

Allyn and Company
Incorporated

Shearson, Hammiil & Co.
A. G. Becker & Co.
Incorporated

'• J

Laurence M. Marks & Co.

Chaplin and Company

Francis I. duPont & Co.

A. E. Masten &

McDonald &

Reynolds & Co.

Paine, Webber, Jackson & Curtis

Company

Hallgarten & Co.

Lester, Ryons & Co.

The Milwaukee Company

Company

ex-

of our northern neighbor, who are
already out of business,

Harriman Ripley &

Goldman, Sachs & Co.

costs

be rolled back, that materials
cos{jess^
j-ba^ men
win

that freight rates will be reduced,
that taxes and insurance rates will
be cut. At no point in Mr. Bauer's

the

Corporation

BJyth & Co., Inc.

Bauer

these

Lehman Brothers

Merrill

of the devotees

claim

The First Boston

cause

because of the devaluation of dol¬

what may be termed the "$35 Gold
Cult
Before

Copies of the Prospectus may be obtained from any of the several underwriters
only in States in which such underwriters are qualified to act as dealers
in securities and in which the Prospectus may legally be distributed.

per

We find that 90% of the S°ld

mines °f the

ivr
ing paragraph Mr. Bauer proposes

that

;

(without par value)

the comparative
gold Position of both nations may be cheerfully work for lower

would exchange an ounce of
for 35 of our so called dollars,

oj these

any

October 31, 1951

NEW ISSUE

ounce."

so-called

"free

solicitation oj offers to buy

nor a

"The official gold price of $35

closed-down and 41%

cess

offer to sell

offering is made only by the Prospectus.

larsproduction
"To provide an equivalent purexpanding chasing power, as set forth in the

and to reolace the

gold
dustrial uses.
'

as-

to oroducers in denvine them
producers in denying them

securities. The

it must reflect the costs necessary

has been slowly dying while get-

Speaking of the commercial

be based
slogans,

cannot

the

fact

the

nores

price

recommend and
convertible into gold
ounce. Since this lg-

they

money

Such

upheavals

market, still reeling from Tuesday's assault, was
yesterday by two distinct and savage waves of selling.
The morning and afternoon attacks were separated by a mid¬
day effort to stage a recovery.
i;

is universally recognized as being
utterly unrealistic. The primary
producers were unable to operate

by any such inhibitions,
suggests that everything will
right with Canadian gold

all

minor

rocked

bound
be

primary

ground

series

has

industry

[!] SELLING WAVES SEND LIST TO NEW LOWS

"Through this combination, our
„„

gojd

through

The stock

^sed this to subsidize the ^com-

confiscation if
turn their gold in.

went

nitely limited.

not seem to be

The proclivity to engage in sadism is instanced by this similar
metaphorizing of a day's decline last year:

Treasury

outright

market

gold from these sources is defi-

Mr. Bauer does

;

during the session as prices shuttled back and forth.

The objective is ultimate return
to a workable gold standard and
the right of redemption of paper

October 31:

STOCKS ARE HELD NEAR AN EVEN KEEL

for survival.

demand,

;

And

no%

the t0tal United St9teS g°id

dollar relationship, for gold,
which must be largely determined

business."

own

CONTINUES DOWNWARD TILT

.
.
.
More and more holders seemed
conclude, as the brief session progressed, that a seat on the
[not in the grandstand at this game] is preferable

But this calls for a realistic price,

reasonably good managers of our

was

The great bulk of issues showed only fractional declines,
about 7% of the traded issues managed to struggle [/]

been
of the

.on

market

same

[/] the bulls with renewed zest yesterday.

Bears trompled

the

More than 90%

into ? gold

and

REEL FROM NEW BLOWS

until the situation clears.

industry

Wrecked.

currency,

today

upward against the trend.

resale

by another newspaper's caption writer as merely tilting:

and

of goldoutofth m™etarSt ks
t rs Presumed to protect and has

currencv

find * rpsi^;
themselves because of a general
f rrise in costs of 151% since 1941,
The proper and intelligent use
during which-the average price of present and future gold rethev have received for gold has serves will play a commanding
been

through

financing

£
J*
governing the
P°'l£lcal tog nero^ufte themllves

considerably
sign of selling precipitation.
October 28

STOCK

limitations what¬
prices industry

OPENING DECLINE

brightened

has taken more than $266>775>000

little

was

In lieu of
seen

Production for the same period, as
shown by the Annual Reports of

gold producers there

which

skies

market

industry

in the United States during

b°"gd d bt ather than gold
b^ed °n «ebt rather than gold^
'

receive

steady.

sidelines

^SgS

deficit
issue

there

10 years.

loss

serious

Mr. Bauer has

ment

the

manufactured

their

had

mmmtS

prThedsubsequent

be challenged.

past

private

upon

could

the

plaintiffs

the

nine,}

inacc uracy
deserves to

ever

do!^

virtually

remained

with

price,

clauses in bonds and

nSJ^nf fhi

Stock

by the United States Mints, on the
basis of the fictitious $35
gold

end

of gold

tion

into

channeled

sustaining the cancella-

4.-

was

STOCK MARKET STIFFENS AFTER

Court

decisions

its title

dollar" main¬

before, during which
currency dollars had a higher gold
content and were redeemable in
10

States.

United btates gold

serves , from

after the change of

years

though slow,

the same day's market was seen by another columnist
following metaphors from the fields of geometry, the mili¬
tary, and meteorology:
^

A11 of this production has been

content than it had for the

gold

York

STOCK PRICES

producti0n in the

;

And

g0ld used in

higher purchasing power

lor

the'

New

Stocks

recovery,

industry and the arts
As a result, not an ounce of

thp

that

so-called "devalued

George
ficial

It is a matter o

Mr.

ten

loss

greater

far

vaae:

' *

in the

the

with

United

the

five years,

recovered in 1939, and

and

quent

Gold

producers

Return to Sound Money, motion base "for calculations of loss of
subseto Cost Probauent
and
far
greater
lem

drastic

interfere

[!] TO RALLY ARE FUTILE

Monday's market action w'as pictured by another journal
V.;,/ .''v./;.:
....
•„ V
; ;>i.
climbed yesterday without special vigor."'Spillover
selling from the weak short session brought about an
average decline of around a point in the first hour, from which
follows:

:■

for

•

Last

They likewise have assumed au-

ATTEMPTS

mining and processing of gold by

PAnonmprs'

was

has now
dollar 'value,

October 27

monetary pur- f■
Regula¬
;
Treasury has assumed

gold

Through
the

tions

The composite Consumers

^/^he following

October 4th
bearing the promising title,

letter

control

poses.'

authority

rpi_,_

;

ounce

per

actual

•

■only $14.70.;:
1
"The Treasury and Federal Re¬
serve Banks claim that they must

Pr}ce Index

attention has. been drawn

My
to

Financial facts.

$35

become,

gold should now be $84 an ounce.

page

was

now

tions

article ignores in¬
dollar's purchasing
power was caused by reduction of p^old content. Says becauie
purchasing power of dollar has declined to 42c, realistic/ price

Chronicle:

jrom

power

only 42c. The gold price
fixed under the Treasury Regula¬
is

Camp, Calif., says -author ^of "Chronicle"
crease in £old mining eosts. 'Denies loss in

Editor, Commercial and

Continued

not kept. The purchas¬
of the dollar dropped
and it has continued to drop and
ing

Harry Sean, Director, California Gold Committee and President
Calaveras Centra! Gold Mining Co., Ltd., of Angels

the President's

know,

you

pledge

Cult"

On "The $35 Gold

genera-

"As

succeeding

the

tion.'

Thursday, November 1,-1951

Moore, Leonard & Lynch

Singer, Deane & Scribner
Brush, Slocumb & Co., Inc.
H. Hentz & Co.

Manley, Bennett & Co.
Reed, Lear and Company

The Ohio Company

Wm. C. Roney & Co.

Arthurs, Lestrange & Co.

Ball, Burge & Kraus

DeHaven & Townsend, Crouter & Bodine
Jenks, Kirkland & Grubbs

McJunkin, Patton & Co.
Sills, Fairman & Harris

Schwabacher & Co.

Fauset, Steele & Co.

Kay, Richards & Company
-

McKelvy and Company
Westheimer & Company

Incorporated

J. R. Williston & Co.

Yarnall & Co.

Volume 174

Number 5060

The Commercial and Financial Chronicle

(1657)
as

military battle field instead of the prizefight ring

is carried out

by metaphorizations

above

follows:

simplification,*
logical

•

strategic retreat in economics

carried out
•

skillfully,

lay the groundwork for
V.

can

victory later.

-'The

Linguistic Fantasies

the

actual

the mind

one

technician,
/": "■

professor:
!

from Congress, which

news

[sic] fell

And

becomes

beholder.

from

the

same

pundit,

this

fantastic

our

published in this issue

market's

Our

often

market

expressed

Whereas

ours.

market

the

fantasy of another technician,

conclusion

gold

exter¬

Which

the

has

effect

sented

prece¬

that

jargon:

;/.:fA-/// A'-/"v'->.':/\:

THE

PRIMARY

from

the

can

prices

upward

still

This

present.

;

; Another

"technical"

evidence of

Association

Oct.

on
•

President
V

Philip

23,

Kennametal

y;.

geometric

terms

applied

our

Vancouver,

times

"evi¬

587

named

after

the

Prior

the

either way eventuates.

return

Philip M. McKenna

side of

current

Or, perhaps

the

clear-cut July

you

October "double

and

Regarding these
McKenna. stated:

the

supply

money

fectively

restrained

be ef-

can

when

district,

bank's

New

attendant

tops."

long-

Lawrence

This
one

service, based

of its beautiful
In the

bounce

lowed

the

first illustration labeled A

reaction and the

and

last advance is

settling down

the action.

our

measurement.

can

occurring between the real

low

point, fol-i

This advertisement is neither

securities. The

and

moves

is ignored.

"rest"

his retirement in 1928.

offer to sell

nor a solicitation of offers to buy
offering is made only by the Prospectus.

the

most

popular

component

and

of the

geometric

"formations"

«TRIPLE

"SPREAD TRIPLE TOP NO.
"BULLISH

tech¬

are

described

The effects
are not

uniform market movement, in
tempt¬

ing the public into impossible forecasting b,y substituting
foresight
for

hindsight

evidence, and

offering

fictitious

escape

into

October 31, 19.51.

November 14, 1951.

The several Underwriters have

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
to

forth in the

Prospectus.

Washington
up

understand

Copies of the Prospectus may be obtainedfrom any of the several underwriters
only in States in which such underwriters are qualified to act as dealers

may

in their 'big'

what

securities

and

which

the

Prospectus

are

much

more aware

may

legally be distributed.

The First Eoston Corporation

Smith, Barney & Co.

Drexel & Co.

and

For in creating illusions about market
a

Time,

do in view

have sufficient

convincing evidence.
Congressman Howard

"(1)

P.M., Eastern Standard Time,

Subscription Warrants will expire at 3:00 P.M., Eastern Standard

Here's

naire

hyper-pictorialization andfantasy'unfor-

trend, and the existence of

3:00

to subscribe at $100 per share
share for each twenty shares of

White, Weld & Co.

addressed
the

question¬

banking

wage

you

fixing will

inflation?

•..*•

i»;if,

t"(2) Have

•

Stroud &

effectively

the

634

resist

out fthe

currency

Moore, Leonard & Lynch
,.f

/ /

Bosworth, Sullivan & Company, Inc.

Kay, Richards & Co.

Singer, Deane & Scribner
'<

A. E. Masten & Company

Chaplin and Company

Fauset, Steele & Co.

Glover & MacGregor,

Inc.

no.

-n

Geo. G. Applegate & Co.

Arthurs, Lestrange & Co.

S. K. Cunningham &

Co., Inc.

been ,able to .find

satisfactory evidence that Congress
can

Hornblower & Weeks

Hemphill, Noyes, Graham, Parsons & Co.

Company

Incorporated

that price

'v.i

you

Goldman, Sachs & Co.

fraternity.

believe

answering, 590 said
"

harmless.

one

rate

record

The questions asked were:

of such

the

Corporation's outstanding Common Stock are being
for the above shares at
Common Stock held of

right

July,
Buffett, from the 2nd District of

•

value)

par

The people in small
the back country and

-prevent

tunately

men

Last

the

REVERSED"

Holders of the
offered the

experiment

wrapped

the farms

of it.

CATAPULT"

SIGNAL

1951

happening.

"BULLISH SIGNAL"
"BEARISH

(without

Nebraska,

envisaged

\ J

TOP"

too

towns,

leading services interpreting it:

November 1,

irredeemable

thing to

government

/.//'

Following

one

period

niques, engaged in by the market detectives.

of theSt

$4,375 Cumulative Preferred Stock

We went off the

try

sensible

"The

This

one

any

they will be repaid.

is, therefore, ignored

.,/,/" /'

Point-and-Figure trading is

Stock

NEW ISSUE

to the kind of standard in which

the

One is measured

move

viewed

York

was a partner m
Jacquelin & de Coppet prior to

Mr.

gold to do it. Moreover, it might
improve the salability of bonds
by allaying the doubts of people

decline, then

In this pattern the first decline is

against the other and the small middle
bounce

show

New

Exchange, he

have

matters,

war.

peace,

the

to explain

the.y said. > Would it be too sur¬
prising to you, if in time of war or
threat of war, we returned to the
gold standard? Especially 'is that

diagrams thus:

advance.

upon

of the fact that

[/] and settling down to the first
an

the laws of Newton, goes

passed

Allegheny Ludlum Steel

the

gold coin standard in .1933 in time

happy solution of the investor's complex problems. The
principle employed, based upon Newton's third law, is accept¬
able in logic and, as the specimen charts
show, operates in
effectiveness.

with

was

agency.//

system if we are in war

threat of

simple

and

the stock market with remarkable

York

the age of 80. Formerly a

member
„

"America can't afford the waste

currency
a

spe¬

sufficient gold

didn't know that:

Action-Reaction Signals point the way toward

it.

down¬

[.'] out of the two triangles suggest distribution

seen

Corroboration that the

hostilities.

81,347 Shares

good time to

triangle, investors supposedly have been purchasing stocks;
if prices fall below the lower side, then investors are said to
unloading.

appointment

the present as

been

the

Townsend Lawrence

believe expansion

you

since

have

B. ' C.,

manager

cessation

his

Townsend

answering,y548

He urged

gold standard,

ward thrusts

rep¬

Mon¬

war

threat

upper

currency

blow-off.

war.

If prices rise above the

the Bank

warned of the

TRIANGLES AS GUIDES—Triangles
presumably denote
periods of accumulation or distribution.
They are disting¬
uished from "lines" in that prices in the
former fluctuate in
progressively narrower swings until a decisive break-out [/J

couver, served with the R. C. A. F.
in the last war, and with UNRRA

no.

League,

market

Appoints

The

Gold Standard

leading financial weekly:

over

Chair-

man

•

Inc.,

evils of

Bastardization

Nation¬

and
-

upside volume notice¬

upside

million

Gait, Ontario, office.
Burgess, a native of Van¬

Mr,

Surely not both!

"(3) Do

Latrobe, Pa.,

indication

repre¬

Burgess, special

irredeemable

dence," appearing in

said

McKenna,

around 8

ably increases, such action often denotes

the/24,

deposits

bank's

cently

valid, which

are

the

bank's

imminent 20% drop in the

demand?

Iowa Bankers
Moines, Iowa,

Des

If upside volume is slow to increase on a rally and no
important increase occurs before the market has rallied
10 points or more and then

with

has
Manager
Chicago office. He
succeeds Goeffrey
Goodbody, re¬

Philip M. McKenna tells Iowa Bankers, now is time to return
gold standard, and contends we have sufficient gold to do it.

popular service's explanation of its doings:

been appointed Assistant

and parcel of his technical

Assuming that both assertions

average.

answers

Bank of Montreal

away at

by our
diagram, while of the utmost validity, is also reinforced by the
continued upward bias |/j of our Aggressor Line. The
Primary
trend is still set upward.

an¬

$30 million dollars;"

bearing

pressure

all

banks

less than

treal,

our joint data
prove,
of the market as a whole and
future "market trend"; Mr. Tabell uses the

conceiving

Return to Gold Standard Now!

ob¬

These

William E.

tain clear evidence from our
diagrammed profile of value for
trends of less importance than the
Major.
Once more we
have prima facie evidence that the relentless

standard.

resentative

convinced that

are

indicated selectivity as part

Addressing' the

TREND—Only occasionally

coin

21 said yes.

Columbia

the following

comes

another

affirmative

cial representative for the British

From

and

yes

qualified

swer.

pump-priming efforts.

the

at $35 pern ounce?
answering, 481 gave an

unqualified

is in direct conflict

war,

signal.

shall control the investor's action?

one

Our aim is
merely to study the [sic] underlying struc¬
tural relations which are the materials out
of which the trends
are built.
.

support

.you

concurrent

This indicates that the
recovery was not of an [sic]
It did not
spring from the inner depths ofthe market, hut seemed to
reflect [sic]
.

an¬

no.

currency

gave

organic nature.

■

rigged

599

Bil]H. R. 324 to promptly

653

•/../' "f •
Again relevant to our discussions, Mr. Tabell's paper quite
typically cites the existence of advantageous value in many "bet¬
ter quality secondary issues" yielding 6 to 9%, while
alleging the

#
.

Would

are

reestablish redemption in gold for

forecasting.

economics

scientific and economic terms:
.

technical

impossibility of
hence of forecasting

com¬

bastardization

wholly unexpected

sacrosanct

market's

after the

came

the

■■■

technically softened and eroded ground.

jrust division of the

Coincidentally, Mr. Tabell, as did we last week, demonstrates
the existence of divergence between different groups within the
market; but follows with a conclusion that is completely opposite

former Harvard

Man, The Technician

must settle on a single
policy to follow exclusively,
instead of hopelessly confusing himself by falling between :r
two (or three) stools, seems to be left uncontroverted.

■

The

performance
the

"Prudent
before the

Outlook"

investor

part

criticism,

level?

and,

"equipment" for the pictorialization of market
action and that elusive
trend, the language gadget is most fully
employed.
And the more elusive the "trend" and the more
complex their thoughts, the weirder the language becomes. Like
music

the

dence?

vaunted

pletely centered in the fantasies

Market

event, such

with

Besides the

much

"(4;
Reed

answered the question as to the course to be; taken when

exuberance in coloring the
language engaged in
by the market literari, lingo is employed by the
community of
the "technical" systems which can
only be classified as a combinatioivon n-th degree jargon and language prostitution.
As

their

by Edmund Tabell

Stock

State Bankers Friday last, and
"Chronicle" (page 3) will be

the

nal

<:l/2%

The Technician's

Incidentally/the characterization of the issues with the highest
per-share volume, irrespective of their
price, as the day's "Stock
Market Leaders" constitutes a
gross misnomer,
#

hedged expression, it typifies the principles and confusions em"Let's come right here to Iowa.
braced by many.,employers of the "technical" market approach,
.^Thefe were 24 answers from your
/ both when it is used exclusively or only partially.
'
<
v
home state to that last question
In advocating joint reliance on economic
research, individual
regarding immediate return to a
security analysis, and technical market "evidence," he leaves un¬

imply achievement
by the firm which merely bid the highest price.
•
;.w//
.

interesting for readers of
this column in clearly high-lighting some of the issues discussed
here. In the advantageous context of Mr. Tabell's clear and un¬

concept of victory and winning likewise is distorted in
competitive bidding results. "The winning bid was
"The issue was won by
seem to

On Prudence and the Systems

the

and

accounts' of
.

•

New York

•

f,v- A talk

actually better for

are

ijl

■

swering, 544. said

■

lower, rather than higher, prices
investor looking for values.

decisive

victory, the term-better is universally used to connote
higher prices, while declines imply
suffering—irrespective of the

fact that

term government bonds

fruitful
Sjt

^'As with

the

and

in the market if it is

is generated which is contrary to the
policies of genuine investment.

an approach

principles
•

spending pressures with¬
historical

restraint

redeemable

gold

Jenks, Kirkland & Grubbs

McJunkin, Patton & Co.
Thomas &

Company

McKelvy and Company

(1658)

The Commercial and Financial Chronicle

V-

autumn

Beai Market and Business

decline

ecohbmic

stock

forecasts

were

prices

Preceding the <1929-1932 col¬
lapse, bank investment's started to

the

for

most part pessimistic on the busi¬
ness oiitlook for 1947 and in gen¬

decline from

are

Thursday, November 1, 195^

greater than at any time since
"

1929.

top in June, 1928.
Commodity prices started a mod¬
a

Major Decline

in Bank

Investments
J
from September, 1928.
This
is
true
because..for
the
high in the investment
generally
account, the highest level in de¬ first time since 1929 a major de¬
would certainly continue at high' posits prior to the stock market cline in bank investments is tak-'
levels through most of 1949. .} It crash was in
January, 1929. In¬ ihg place after there has been a'
was only
dustrial activity stayed at its ab¬ record-breaking increase in pri¬
an inventory readjust¬
-

eral" continued

Depression Ahead

the

By JAMES F. HUGHES*
Market

Auchincloss, Parker & Redpath,
Stock Exchange

Analyst,

Members, New York

Market

relationships

technical

asserts

commentator

the

about

Outlook

ened

market
sented

outiook

does

now.

ities

based

technical

and
re¬

lation sh i p s
make it neces¬
sary

to consid-

tlie threat of

major

tnreat

expected to pile
least

1953 and

years

not

1954 until

from

1951
did

debt of

$15

Truman

come

the

cash

government

not

$30

•

bank

quickly

the

stock

1929

economic

and eco¬
it elim¬

have

and

in- economic
real

reduced

the

interest;' bearing
bull

No year since

1929 has

shown

dan¬

forecasting

1919

these

the

prosperity.
1937

the

saw

talk

by Mr. Hughes
before
the
Society of Security Analysts,
October. 22, 1951.

ion

1946

was

ket
,

the

were

because

and

N/-'C

buy

reduced

holdings
The

down

from

their

by about $22

stofck

market

May

invest¬

and, despite
prosperity
in

peak

record

circumstances

be construed

decline'

from

was

bil¬

NEW ISSUE

advance

banks

ment

while

reached

Before

the

able

was

January and
peak of deposits
until

January,

established

were

May,

1946,

1948.

months

ity prices; jn May.

months

the

reached

out

situation

the

credit

previous important tops in

stock

that

sequence

market

plainly

ible.

The

bank

investment account

tablished

high

pre¬

vis¬

high in the commercial
in

was

billion for
far

monthly high
commodity prices

wholesale

figure

for

177.7.

was

The FRB index

July it dropped to 213. Pre¬
liminary estimate for September
is 220.

■

•

'■
t

high

running

wasv

past

may

have

rowers

Gv H. Walker 8C Co.

not

mary

...

F. S.
'

Paine, Webber, Jackson & Curtis

;

BEACH, Calif.—Thomas

Golden

has

become

affiliated

with

Walston, Hoffman & Good¬

win,

110

Pine

Avenue.

formerly

with

Daniel

Co.

and

the

was

Reeves

Bankamerica

Com¬

pany.

With Edgerton, Wykoff
(Special

LOS
J.

The Financial

Chronicle)

ANGELES, Calif.—Francis

Mitchell has become associated,

with

Moseley & Co.

Whitings Weeks &

Franklin

the
any

reason

postwar

contributed

Co.

Dean

and

Witter

With First California

'.71

(Special

LOS
H.

to The

Financial

Chronicle)

ANGELES, Calif.—Richard

Harper is with First California

Company, 647 South Spring St. "" '*

Private bor¬

all

Samuel Franklin Adds
(Special

the

mone¬

'oil

The

LOS

The

Financial

Chronicle)*

ANGELES, Calif.

— W.
D.
Evans has been added to the staff

Samuel

Franklin

Com¬

balance' pany, 215-West. Seventh Street.

banking system

Joins

debt during the

Fairman Staff

(Special to The Financial Chronicle)*

there

was

depression
was

that the

pri¬
after
U.

LOS

Fairman & Co., 210

Barbour, Smith Adds

(Sptcial to The Financial Ohronicle)

LOS

1932.

years

An¬

Pink

withiri1 the next three to five

West Seventh

Street, members' of the Los
geles Stock Exchange.
•

enormously to the de¬

of:: 1920-1921 and 1929Deflationary potentialities

ANGELES, Califs-Ray G.

Hirsch has become connected with

pressions
..J1

& Co.

invest¬

Outstanding at Pearl Harbor.. Liquidatioh1 of private bank loans

South

increased

Treasury v had
socialized
bank
"credit
expansion,
with
private
loans in the spring of 1945 virtu¬
ally; unchanged from the amount

Mornblower 8C Weeks

Incorporated

Jdhristbh, Lemon & Co.
...

done

used

World War
1

(Special to The Financial Chronicle)

LONG

15 months.

The

and

Government

monetize

past

Goldman, Sachs & Co;
Blair, RoHifts & Gov

Company, 623
Spring Street. He was for¬

With Walston, Hoffman

commercial
their

tizing of debt since Korea.
has

•

billion

their loans $8 billion.

Federal

Chronicle)

$33,618,000,000. Since

leading

record

Oct. 3, with

reduced

ments

be obtained in any State in which this announce¬
circulated from only such
of the undersigned and other
dealers or brokers as
may lawfully offer these securities in such State.

Riter 8C Go.

Financial

Flaherty has become affiliated

South

.....q,.'.. V

true

all-time

new

reached

banks have

was

The latest weekly

$50 Per Share

Edgerton, Wykoff & Co., 618
Spring Street, members of
the Los Angeles Stock Exchange.
of production reached 223 in
April
He was previously with Samuel B.
and May.
In June it was 222 and
184.0 in March.

including November 1,' 1961)

8C Beane

see

ANGELES,- Calif.—Philip

14.

the

Korea ! the

Lynch, Pierce, Fenner

fact

with E. F. Hutton &

January, 1950. / The
deposits was $51.8

the week of March

total loans at

Merrill

The
group,

is
probably
more
for alarm than comfort.

LOS

bank

shows that

Prospectus

es¬

precedent, the loan account of the
weekly reporting member banks

ment

top in Decem¬

present

V'-Thus far,

The

With E, F. Hutton Co.

the

'V-:V

the

October 31, 1951

(Dividends cumulative front date of i&sue)

Price

and
over

possibility of such

(Special to The

Commodity

decline

•"v.•

% Cumulative Preference Stock, Series B
'

market

activity

Philip B. Flaherty With

not reached

was

stock

business

completed. After the
the investment account

market

the

thus

major

development

quence was

the

economists,

cause

major advance from June,
a
norihal bank credit se¬

highs of

foreshadowing

virtually

Family Finance Corporation
and

is'

1951

sequences

the next several years.

commercial

market

general

that

reducing their invest¬
holdings.

Thus

80,000 Shares

peacetime

the

economic

decline

1946

were

in Match and wholesale commod¬

(Par Value #50 Per Share—Convertible

unite

November, quence was kept intact when an
industrial activity in Janu-* advancing trend' in
bank
loans
ary-Febiuarv, 1920, bank deposits that had continued with only two

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

historic

started

1919,

mar¬

had

1949,

ket

after

This decline

start a'

started

deflation

account
vvas
not
merly with Kerr & Bell and prior
reached
until prices made a high in
August and
October, 1920. Between these two industrial activity in October-No¬ thereto was an officer of Fairman
& Co.
dates the high of the stock mar-'
vember.
The
old-fashioned
se¬

high in May. The peak of the loan

business,, but

appearance

credit

March, 1949, by deposits increased only $5 billiorf.
leading 'commercial
Technical
relationships
and

lion.

ments

election

record

ceded

any

serious following
six
years
.during
which
bank
loans increased $33 billion while

1947
and
1948,
is! proved unable to stage a sustained

emphasize the possible
significance of the current bank
Credit sequence is to give"til# de¬

business

the stock

relation¬
fact

from

bank

banks

tive way to

general economic opin¬

bullish

this

bank

thus much

offer

increase

1936, when

until

time

ment

reason

forecasts

the

which

tailed record of the past 30
and
years.
In 1919 commercial bank invest-; in

beginning

view

plainly

worked
account

decline

continued

•

in-/

period

decline in bank investments fore¬

sequence

ber, 1948.;

was

major

loans

Between 1929

At the end of

investment

the

top in January, 1946.

bear markets and business depres¬
since 1919. The most effec¬

1936 guaranteed inflation.

York

is under

1929

spring

prevailing

there

deflation

by about

announcement

there

showing

than

sion

even

economic sequence that has
foreshadowed' all
of
the
major

in¬

supply.

market.

technical1

the gener¬

tremendous

money

economists

question

deficit

the

and

1930

billion.

This

1921

1945

loans.

billiorC

they increased from1
to $64 billion.* •'*
\

billion

and

1951" total

$34

loans

creased $13 billion.

invest¬

market

that

From

in July.
Deposits reached
peak in February, 1937, followed

started
•

relationships, that do

forecast, show a
series of divergences making a
pattern of a major top in an in-

that

very

Indicate

Major Top'
Technical

creasingiy; selective
are

War I.

crease

In
New

dangers

there

because

Administration
net

Relationship

disquieting to note the

show

Technical'

the

ally accepted economic viewpoint
was that; commodity prices were
on
a
permanently higher plateau

30,

the

relationships

sequences

World

And in the five fiscal years
June 30,
1946 to June

not

doubled

the

ments
a

years

ships.

cash basis spent $60
billioh but collected $65 billion in
taxes.

generally have failed to
forecast any of the bear markets
and
business
depressions
sihce

During the 15 months
follbwing Korea, the Federal Gov¬
on

past

declines

omists

two

them.

ernment

the

illustrated by the fact that econ¬

fiscal

cross

high

meant

increased

after

gers

However, in view of vvhat has
happened in recent fiscal years I
inclined

market crash.

loans

This

billion

after

the middle

bank

The carefully planned
recovery
1936 began to disintegrate fol¬

lowing

tendency to project into the

One

came

1945

in No¬
gain of

bank credit

fiscal years.

am'

increase

covering all the banks iri the.i
country show that from tLe end of

the

That

total of at

this

stock

business de¬

currently prevailing trends;
In view of the past
record, how¬
ever, I do
nbt think that stock

forecasting.

deficit of $6

$35 billion in the

high

the result of

than $2 billion.

of economists to fore¬

The statis¬

tics

high

of
September.

reached'their

vember

future

easy

inates: the

Such

that

program
up a

billioh this year and

man

market

stock

the

out

that

technical

absurd in the face

seems

armament

the

vate debt to the banks.

months im¬

preceding

Loans

not, presented
to /be ' critical.

desire

any

mediately

March,
wholesale
prices
in shadowed
economic
troubles
iri
April and industrial production 1937, bank loans were
actually $li
in, May. "After seven successive billion lower than they were ait
monthly '; advances
bank
loans June 30, 1933. In 1946 when bank
reached a top in September.
f
investments started a major de->
Despite the fact that there ap¬ cline, bank loans had increased
peared to be no reason for a de¬ only $4 billion in four
years, as
cline in stock prices from 1946 to
compared with an increase of $84
1949, it is interesting to note how billion in deposits. The threat of

nomic

over

the next three to five years.
of

general busi¬
activity. The advantage' in
depending upon plainly visible

e x-

tending

years

future.

unknown

solute peak for three

pressions proves that they - are
only huhtan with the normal hu¬

ness

de-

pression

Hughes

with

review

stock market and in

and

business
James F.

the

has foreshadowed

bear

market

fiscal

months of

trends

Pro babil-

economic

seven

the

situation to ac¬
cept by anybody who knows that market technicians have too much!
during 1951 the stock market has to worry about when they read
persisted
in
displaying
several that in 1951 it has been the tech¬
bearish
technical
relationships nicians in general who have been
that have not been so prominently
worried
and
bearish
while
the;
on
view at any time since 1929.
economists as a group have con¬
In
addition
to'
these
bearish tinued calmly confident and bull¬
technical indications, 1951 is also ish on the long-range outlook for
showing a sequence'of economic the stock market.

This is not

in¬

deficits

forecast

pre¬

teresting

1953 and 1954 must be based

the

has

ever,

After

the

The failure

market optimism in 1951
because of inflation that is threat¬

Never before, how¬

Scock Market.

This

Stock

the

for

but

cast bear market and

have

this Society

before

appeared
talk

occasions

est decline

1948, however, it was
conceded that business

economists, as a
group, missed it just as easily as
they had missed 1919, 1929, 1937
and' 1946.;
"''v-1./'
1949',

strongly than any time sinfce 1929 indicate a major top in
selective bull market. Envisages economic se¬
quence that has foreshadowed* all major bear markets and
business depressions since 1919.
Emphasizes importance of
major decline occurring in bank investments.
numerous

1948. / By

for

ment in the first

increasingly

end

ANGELES; Calif.—Sidney

has been added

Barbour,

Smith

621 South Flower Street.

the staff

Company,

Volume 174

Number 5060

The Commercial and Financial Chronicle

(1659)

The

NSTA

Meaning of the Recent

Market Reaction—What Now?

SECURITY TRADERS ASSOCIATION OF
NEW YORK
The Security Traders
Bowling League standing
TEAM

Kumm
Leone

Association

of Oct.

;;

26,

New

York

1951 is

(STANY)

follows:

Points

(Capt.), Ghegan, R. Montanye, Krassowich, Manson__
(Capt.), Tisch, O'Mara, Nieman, Bradley

29
22

Mewing (Capt.), G. Montanye, M. Meyer,
LaPato, Klein___I^
Goodman (Capt ),
Weissman, Farrell, Valentine, Smith
Krisam (Capt.),
Gavin, Gannon, Jacobs, Murphy
Burian (Capt.),
Siepser, Gronick, Growney, Kais*er_
Serlan (Capt.), Gold,
Krumholz, Young, Gersten
Donadio (Capt.), Rappa,
O'Connor, Whiting, Demsye_
Hunter (Capt.), Craig,
Fredericks, Weseman, Lytle_____
Greenberg (Capt.) •Siegel, Cohen, Sullivan, VoccolL_
H. Meyer
(Capt.), Swenson, A. Frankel, Wechsler, King
Bean (Capt.),
Lax, H. Frankel, Werkmeister, Reid

20
20

200 Club

Klein

211

Klein

210

15
15

Point Club

Tom

Greenberg

Willie Kumm

NASD Receives Slate for 1952 Officers

Harper

Joy

Fenton

Johnston

Clarence A. Bickel

This

announcement

The

Charles P. Cooley, Jr.

been

nominated

National

Chairman

Association

Vice-President

and

.Wallace

WASHINGTON, X). C.—Clarence
the

Fulton

Bickel,

Board

Securities

Treasurer

Dealers,

Robert

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

not an

$7,000,000

Milwaukee, has

Governors

Inc.

Mr.

Baird

Bickel

The Ohio Power

Co., Incor¬
Chicago, partner

porated. He-will succeed Howard E. Buhse of
of Hornblower & Weeks.
Election of NASD officers for 1952 will
take place at a Governors'

meeting Jan. 15;

Fenton Johnston,
York, partner of Smith. Barney & Co.; Harper Joy,
Spokane,
Executive Vice-President, Pacific Northwest
Company; Treasurer,
P.

Cooley,

Jr., Hartford/ senior partner, Cooley &
Executive Director, Wallace H.
Fulton, Washington, D. C.
Mr.

Bickel

born

was

Fort

School of Commerce and School of

versity.
his

He received
firm

present

President

of America of

Mr.

Johnston

College

born

was

Wayne, Ind., attended Walton
Commerce, Noithwestern Uni¬

Control

the

Controllers

1966, inclusive.

MATURITIES AND YIELDS
(Accrued interest

be added)

1961

3.15%

1959

3.00 %
3.05

1962

3.20

1960

Massillon, Ohio.

which

Sedalia, Mo.

'3.10

1963

3.25

He is

trustee.

has

been

associated

The

13th

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

1934.
year as

administrative

"HALSEY, STUART &. CO. INC.

Association.

HALLGARTEN &. CO.

EQUITABLE SECURITIES CORPORATION;

;

ENGLEWOOD,
Investors

formed

with

N. J.—GuaranGroup has been

offices

West

Palisades Avenue, to engage in a
securities business.
Officers are
J. R. Toomey,

President; G. Roth-

Vice-President; D. Irving,
Secretary, and" M.. Docherty,

man,

Treasurer.

graduate of Whit¬

Hartford, attended local schools there
graduating from Yale University Class of

School,

Guaranteed Inv. Group;
teed

predecessor firms since 1922.

Mr. Fulton is nominated for his
head^of the

$750,000 from 1961

Institute

Mr. Cooley is a native of

Pomfret

October 1, in the. principal amounts cf

director.

1926. "He has been head of his firm since
.

and

graduated
University in 1919, entered the investment busi¬

with his present and

and

1250,000 in 1955 and 1956; $500,000 from 1957 to 1960, inclusive,

in 1922 with Harris Forbes & Co.

man

annually

mature

•

1951

1958

Mr. Joy was born in

The Serial Notes

Co.;

degree in 1929 in Illinois, joined
During the past year he served as

1933.
he

Dated October 1,

CPA

Milwaukee

which

from Ohio State
ness

the

his

Company

3Y%% Serial Notes, due 1955-1966

Other nominations are:;Vice-Chairmen—W.

New

Charles

;

the

Co-Mgr.,; for Kidder Branch
FORT

Claude

LAUDERDALE,
M.* Ewing

has

Fla.

been

ap-

pointed co-manager of A. M.' Kidder & Co., Fort Lauderdale office
with

Garland

firm's office is

P.
now

Wright.

Allan N. Ferguson is also
elated with this office.,

STROUD &

COMPANY V

INCORPORATED

THE

ILLINOIS

SCHOELLKOPF, BUTTON A POMEROY, INC.

WEEDEN &
'

CO.

INCORPORATED

COMPANY"

GREGORY &, SON
INCORPORATEO

HIRSCH & CO.

THE MILWAUKEE COMPANY

The

located at 207

East. Las Olas Boulevard.

HAYDEN, STONE & CO.

—

WM. E. POLLOCK

CO., INC.

STERN BROTHERS &. CO.

November 1,1951
assou,

3.5

The Commercial and Financial Chronicle

(1660)

industrial, agricultural and

Continued from first page

industry increase
duction,

lower

markets

and

processes

capita

per

the
of

pro-

costs,

widen

new

real

indus-

create

tries.
•>

(6) The rapid industrialization
of the other nations of this hemisphereJ Australia, South Africa
and the less well developed countries
elsewhere, which can be
highly stimulative to world trade,
expand
our
markets and offer
attractive opportunities for for-

activity is der way, which can increase pro-

of economic

expenditures. If we ever use the there is in process
devices, such as devaluation and hemisphere a rapid

some

given

that,

time,

really violent fluctuations in
now appear inevi¬
who accept the all
:

our

economy
Those

table.

ing, which is now running at the
rate of $40 billion per annum, is

prevalent notion that we now
a depression-proof economy
are
probably in for some un¬
pleasant surprises.

too

tide

receding, tend
effect

tionary

have a defla- duction and expand markets for a
private capital long while ahead: Furthermore,

running the printing
which

the

some

presses,
planners say

they will adopt in order to prevent depression, we could be cat-

apulted into one of the most se¬
vere depressions in our history.
scheduled to reach it/dO billion by
the late months of 1952 or early
We are, I suspect, getting set
months of 1953.
The nature of
for another hard lesson in basic
Why We Do NOT Have a
defense spending, which, up "to
economics. Recall that we had to
Depression-Proof Economy
now,
has been chiefly for the
learn the hard way that the poliBroad reversals in the economic
building of troop strength and for
cies of the '20s could not yield
•climate, are
cmnare.
oy
by
nature -unprethe increase of defense production
lasting prosperity. Then it was
capacity, is about to be shifted to dictable, but the danger of de- :dem0nstrated beyond doubt that
the procurement of a rapidly ex - pression is now serious enough to <
Dolicies of tue >30s could not
panding stockpile of materiel and suggest that it will be prudent for ,
fall employment
Now
have

the government,

business.manage"those who set -the

tPre9a"e

moc^ot

equipment.
"
4
in the
demon.W>
in.the prpcels of demon
Only part of the increase in ments and
defense production can be at- policies.!, for the nation s Sr«at Postwar '40s arid The eaflv '50s
-What do these powerful factors} tained by a rise in total output, associations to allow in their plah- ;p
notDrovide Dermanent orosimply as to the outlook for an for our resources position in labor ning for the probability that we
w Will on the other hand
economy
which has had more and in many materials was al- shall have to faceup to a fern*.
booms than - busts and more in- ready .tight at the beginning of sion in the not-tobrdistant future. ■"
everv
the
Let me emphasize that no one is
stability, but more growth and our Defense Program.
Conse^
Je have St the stage
more solid
accomplishment, than quently, for a time at least—until more optimistic than I am as to Kf '
the Soothsayers"
The * f
any other the
world has ever our capacity is raised or the the longer range outlook.
dav have nroduced a lot
defense schedule is decelerated—* next quarter century is sure to be
seen?
°\ new statistics and new theories
■
e day. *?.aya produced a lot
.^Aa
Of
the production of civilian goods a period of sharply rising trends
The Uncertainties of the
will have to be curtailed. ~ The in this country and, for that mathut
as
International Situation
President's Council of Economic ter
in many other areas in the condition was permanent, but, as
With respect to the short-term
Advisers has estimated that we world—especially in the countries experience has^ shown^ they have
outlook, the international situa- have the ability to raise total out- of this hemisphere and in South
S?u'COnfi.
u
wr°n§*
.
When the phase of depression
tion
is
a
pervasive and deep put by 5% from mid-year 1951 to Africa and Australia.
But that
wdl come, no one can be sure,
source of uncertainty, for we do
the
middle
of
next year.
If growth will not be continuous for
eign investment.

? v

we"itv
i^ity put

on the^the| hand,
^ccaSori ^

^res^on
thf

nlrmanpnt

not, and

cannot, know from day
to day, whether or not .some unpredictable? but
world - shaking
event will happen tomorrow that

this
would
supply
roughly half of the projected increase in defense production and
t h e
balance
necessarily would

attained,

vitiates any assumption on -yvhich

predictions

our

may

have

predi-

civilian to

ernment use.

We cannot know with certainty
whether we will continue in the

diversion

from the

come

of resources from

cated.

gov-

the consumer is
Jikely to be a good deal less than
current status of half war and half
-.he official Washington line durpeace — whether
all-out global ing recent weeks has indicated,
conflict

will

wbether

some

break

loose

The

—

development
will produce a lessening of tensions.
Although every hope and
prayer of the-Western Nations is
for peace, the record is such that
new

Communist
overtures
for
must be viewed with deep

any

peace

skepticism

until

acts

faith have demonstrated

basic

policies

and

good

that the

objectives

have been redirected,

communism

But there is little room for doubt

that

dramatic

some

direction

would

chological effect

our

markets

our

national

•,

...

situation

our

art

could

rise

are

seems

masters in

cunning and surprise

They may be planning further.
military ventures on the periphery
their

empire.
But they may
just as well be tempted to try the
strategy of peaceful overtures for
they are ruled by a passion to
undermine

one

pile

top of

been

And

led

armament boom

series of

system

another

have

defense

economic

means

that

now

our

other

postwar

booms, including a great automobile boom, a residential
housing
boom, a plant and equipment expansion boom, an inventory boom,
and repeated

splurges of

consumer

buying, what could better (serve
their purpose of fostering the interrial disruption of ov.* enterprise
system than to adopt a more conciliatory attitude? We are living
in dangerous and turbulent times

when

must, in

planning

some

essential

with

our

personal, business and government
affairs, allow for a wide range of
possible developments.

curtailment

construction

defense

and

non•

non-

and

investment

private

some

into the

inroads

con-

and

goods

demands

meet

rise

price

without

during

the

violent

few

months.

Certainly, there should be no
in the wide range of
goods comprising by
far the biggest part of total conshortages

Program, most
that
nod

are

ahead,

likely, for
to

current status of

expenditures—e.g., in food,

number

*oods

lines, where

consumer

hard

defense needs

vvin force increasingly severe cut-

backs- the inventory supluses of
recent m°nths will, in time, be
absorbed and supplies perhaps become inadequate. But the process
need not be a PreciPitate °ne, unless there is a new wave of scare"
buyinS- The official Washington
lme is that a Sreat new inflation
threatens, but this view is not
~bared by many perceptive students<

should be

one

generally full

employment and full production.

civilian

neanng the
acceleration.

cently,
that

but short

defense economy is

PJ^t defense rapid
of more
Total

seemed

the

that event, it

spend-

have been simultaney

making

the backlogs, building

new industries and expanding
new inausiries ana expauuu 5

old ones,

improving

and

raising the luxury-content

international
iessen
.,

and

spasm

materially,

tensions
or

were

much

deterioration

later

the

credit

substantial extension of the Defense Program.

Long-Range Development

the

every reason

progress

and

ment and

still

ally

Labor

(4)

inflexibility is

cost

markets
forces

are

still

are

w;th

sion

unlimited

in terms of
ment.
of

trial

land,

vigorous than will
our own country,

the

case

opportunities here for
expansion in trade and

are

sort of

investment which will spell progand

ress

prosperity for

everyone

concerned

Economics of

Needed—A NEW

Progress
While

a'severe and costlv de-

of ana cosxiy ae
other side of the

•

pression,^ the
that

COjn

turbulent time

shall be fortunate if

aVoid

face

in which

future

our

can

desoite

setbacks, he one of the most
be one of the most

set hanks

the
the

periods of

has

world

careful

ever

muster

strength

progress
if we

seen

our

own

eco-

to help

and

the
are

the

ogists.
nomic

veritable revolution in indus-

technology, affecting

wide

of fields—to mention

only

few, power development, electronics, metallurgy, chemistry, agricultural production and medicine
a

with

its

than would for the future,

far-flung

implications

Potentialities for Prosperity in the
American Hemisphere
There

fering the collapse so confidently
expected by the Communist ideol-

technological developin the midst

but

case.

Federal Government
of the anti-depres¬
devices, such as easy credit,

There

shocks inevitable in an unstable
natural but growing economy without suf-

We are, in fact,

sharply

The

And U is a fact of massive siS"
njficance that the rate of industriahzation in the other nations of
this hemisphere seems destined to

rather

their

has used many

nex^ two or three decades,, rise-to
a figure not far from 500 Millions.

virile, inge-

great

The American frontier

reduce

otherwise be the

(5)

labor

tential is ^dch that it can, in time,
^ a powerful factor making for
pea<fa lh this war-torn world. The
Population of the nations of North
and South America—now approximately 300 millions—may, in the

our 0ur military potential will be such
as to deter Communist aggression,
develop- And, if we are economically strong,
exceedingly we shall be able to absorb the

exists, not in terms of virtu-

range

likely to force employers who can¬
not cut wage costs in competitive

;

lt is not too jrirnch to say that'
this hemisphere's economic po-

long-term

growth

(3) The rise of nearly $300 bil¬
public and private debt in
past decade to a total close
to $500 billion has exposed many
individuals, businesses and gov¬
ernments to the possibility of se¬
turns.

not-discovered,

sources are

nomic

lion in

tide

Our potentials for real

economy.

resources.

economic

which has yet been tapped,

going on apace and rarely a week
passes in which new mineral ;re-

misgivings as to other Western Nations to develop
ai
outlook, there is their own potentialities.
If we
for an optimistic ap- and "they are strong economically,

nation

the

re-

hennsphere
a^unds, and only the surface of

praisal of the broad trends in

nious

case

mineral

for

sources, in which this

such

liquidation.

needed for one of the most statesmanlike efforts ever made qu.ckly
to industrialize a large aiea of the
w<i!;*d* sur*ape'
The

near-term

embarrassment

productive activities. This is help¬

ing to provide the labor resources

glorious

Technological Opportunities for

great.

rious

agricultural

production, lowering its real cost
and releasing workers for other

in-

? turt.ner aetenorauon in to force
tne international situation were

Despite
espite

breakeven points, the first
of economic trouble could
the postponement of capital

increasing

which

1952

...

With consumers saying so
small a portion of their income
and
with business operating at

cause

roughly scheduled for late
or
the early months of
1953, but could develop earlier if
now

for vulnerability.

outlays

plant and equipment

modern

expenditures begin to decline. This

(2)

sign

until defense, foreign aid

occur

living—which

standard

makes

shapes

and domestic

reconstruct-

the war-torn areas, building
inventory of military goods

ing

how the international situup.
It is not likely

ation

(1) The percentage of optional
or
postponable items in our pro¬
duction is at a new all-time high,
for

depend large-

all over this
application of
agricultural techniques,

are,

moreover,

this

That

must develop our eco-

strength

is the categorical

time. And if,
justified in
road to economic strength is not to be found
in
either
the
policies
of
the
of

imperative
as

believe,

our

are

that

assuming

twenties

the

thirties

the forties, then we are under, the

obligation
to
do
some
serious
thinking about the problem of

under

how,
we

can

modern

make

our

conditions,

society

fully

productive and vitally strong.
I
sense
that we are reaching for a

The magnitude of projected de- price pegs and guarantees, to ac- hemisphere, to say nothing of
fense outlays and the fact that centuate and perpetuate the boom other underdeveloped areas of the new set of economic values today
the Administration can be counted instead of holding them in reserve world,
countries with
rapidly —under the pressure of events
on to use every power at its dis- for use in depression.
growing populations, vast untap- which demonstrate all too clearly
posal to prevent either an em(6) With taxes as high as they ped natural resources and large that the ideals of Communism are
barrassingly big inflation or an are, government bonds at a new potential labor supplies. Our capi- but a cloak for aggression, that
embarrassingly big "bust" in the low in popularity- and the bank- tal and technical "know-how" can Socialism is but a method of dispre-election period < suggests that ing system so iuliy invested, our and, in my opinion, will find chal- tributing austerity, that big govthe broad indices of business, government cannot be depended lenging opportunities in these di- ernment invites political abuse*
national income and prices will on to increase its expenditures by rections which will prevent any that government planning hastnot
probably remain on a high plateau the vast amounts necessary to depression from becoming a na- saved us from inflation, that the
unth defense production turns maintain prosperity for everybody tional 7 disaster, and bring us — world cannot be prosperous if each
down. There will, of course, be at all times. ^
».
I
once the phase of readjustment is individual nation erects around its°ff spots, but the over-all picture
(7) The psychological basis of completed—into another period of self an iron curtain to prevent .the

pe-

is clear that the transition from

; •

but it will probably

the

clothes and services,

plJase

highly disturbed

lnternational conditions

of all-out war.

long

continue

proof economy:

depression-

consumer

defense stimulation, it is clear
that we are setting the stage for a
1° 0Ur ^ef®nse much bigger slump than formerly
observers
believe

do not have a

high

„

why

our

services left for
every d ay . consumption,
in the
aggregate, should be adequate to
0f

economy

indeed. Here are some reasons

ous

during the past year, the quantity

Program
^

stable

and

The Impact of the Defense
,Wi4.

contrived;,a highly un¬
in which the
danger of depression is very seri¬
have

goods inventories built up

sumer

oumer

„

view, remember

opponents
of

credulous

the

thf' h?pes for
the interna¬

turn

tional

that

psy¬

favorable

great

time—upon

and—in
nlnnc

in that

move

have

pinch

with

population is un-

by the government when yast upsurge in.

if used

succession of booms have been so

Economic Prospects
techniques and

Thursday, November,!, 1951

the

far-reaching

new

technology and the increase in
population and markets.
But the
economic dislocations caused by a
cal

Factors in Our Future
workers for industry,

medi¬

most

likely.

Until

observers

re-

Many of those great progress and prosperity.
predict permanent inNo appraisal
of our outlook
flation and boom were no less could be complete without a more
convinced in the '30s that we faced detailed discussion than time will

free movement of people, capital,
or goods, and that personal savings
rather than governmental expenditure represent the only noninfla-

permanently stagnant and ma- permit of the extremely favorable
economy.
The fact is that prospects .and potentialities for
people are volatile in their our neighbors to the North and to

tionary source of funds for expansion. I am optimistic enough to
believe that this is likely to be a
time when people will profit from
the mistakes of the past and chart
out for themselves a set pf economic policies, plans and programs
which will make the long range
outlook, for the most dynamic
economy the world has ever seen,
one of progress and prosperity and

the boom is weak.
who

now

ture
our

actions

and appraisals; they still the South. Suffice it to say that
in wild buying sprees and this, hemisphere is underpopulated,
thing more than a serious reces- are subject to violent fits of fear, rather than overpopulated, and
sion or a mild and brief
depression
(8) The argument that we are that With modern medical techwhich would, as has been cus- going Ho inflate ourselves pleas-;
niques being applied so vigorously
tomary in the past, be but the antly and profitably out'of any in a-frontal attack on the basic
prologue to another great period recession before it degenerates in- causes pf high infant mortality and
of expansion and prosperity,, based to depression runs counter to the of the major diseases which lower
on
the sensational advances in fact that
inflationary techniques,- production and shorten lives, a. peace.
we

need not

agreed
allow for any-

engage

Volume 174

Number 5060

The Commercial and Financial Chronicle

(1661)

incident

separate

Neighboiliness—Basis of

indelible

tends

cumulative effect
such

incidents
r

Public Relations Policy

attitude
hatred

By J. CARLISLE MacDONALD*
Assistant

to Chairman,

For

with

stockholders, employees and public, U. S. Steel Corporation executive gives suggestions for obtaining friendly attitude
of all segments of the economy. Advocates plant visitations
and "open houses" in the community as well as sponsorship of
"Business-Industry-Education Day." Warns publicity and ad¬
vertising is not lone function of public relations, but also
involved is public interest considerations.
Lists corporation

seems

tions

that

all

relaindustry are.

American

for

and

their jobs

•

Charles

Dickens. "

"Martin

was

hundred

of your

driving to and from

create

serious traffic
suppose

over,

since

science

the

Chuzzlewit"

practices,

will

your

com-

know

what

went

behind

the

high fences or brick walls
industrial establishments.

ticular segments of your public.

from this lack of knowledge

of local

And
many

misconceptions grew up and much
misinformation gained circulation,
ing them a chance to see things Figuratively, we should tear down
with their own eyes?
That, of the fences and open up the plants
course, suggests plant visitations to remove the air of mystery and
Consideration

leads to

with

houses.

open

that

employees,
they do see

and

their

own

how

Are

groups

giv-

you

connection

prevent such misconceptions from

might

In
you

Saining wide acceptance,

their

say

Present security regulations

jobs
departments.
I

wonder, though, if
yourself

these

question.

own

they

asked

gency have curtailed

know

you ever

much

suiting from the national
open,house

about other departments and other ; States

plants of the company?

For

for

the

Steel

sharply the
United

recent

months,

However, it is gratifying to note

that the highly successful

employee's family, and

entire

yfei'tTare

activities

re¬

emer-

community,

excellent

houses staged

plant

means

open
years

by our steel-making and fabricat-,

ai?gerously giving them an opportunity to "see ing subsidiaries have become modcauf111 for themselves.". You might, do els for many other business or^ ^h^n,Yes ^00 this by a general open house to ganizations. -

Y s,

•

SL t

•

? which families, neighbors,

Jack-Jhiif

of American industry, I
myself thinking of a quota-

tion from

the

ther that ontonei afternoon George

progress
find

the

company's plant
of

one

safety

pany have an opportunity to stand
well in the opinion of these par-

and

that

suppose

ihTngr!hmsftThl0n0nsuDDoese fur
fur"
snitts.
men

that

toretftought,

change

and more to the was born — is, "public relations
company's standing begins at home." If George
with its public nationally is to a son is an employee,-it certainly
large extent determined by the does.place that it holds in the opinions
He will have definite opinions,
of its neighbors in the plant com- based on his own experience, of
munity.- Whenever
I
speculate working conditions and manageabout the future public relations ment attitude toward employees.
coming

belief

little

several

employees

Such

principal
arteries of the community,

that

and

remark that has been repeated

—-a

.over

create an
positive

upon

and forbearance.

onto

traific

the truisms about public relations

engaged in public

are

example,

opens

who

can

company.

main gate at your

that should be published.

news

the

.foresight,

Stressing need of closer neighborly relations of corporations
»

succession

ft iilJI flS

United States Steel Corporation

exercise

bordering
of

leave

impression; and the

teachers and others

are

clergy,

r„H.x.

p...,,

e Customer Relations

invited,

J.Jchest' an'dls .or you might have specialized plant
George Jackson/however, may
certain that Geo^e shouldn t have visitations. One industrial com- belong to some other segment of
^e./° ,ln,e ^ fre
sor? c
d pany has on different occasions y°ur public which judges the com-

reach it, out tnat will rnake not entertained the ministers- of its
tne siigntest cniterence. r oriCOnamUnity with a plant tour, and
re. 01 ni® natural llle> George is f0n0wed up wdh other plant tours
g°ln£ ?, b
your company lor..for teachers, businessmen, social
tne aeath ot nis cpild, and nptning groups chUrch women, and even
on ear*b tbat you can ever do wlU a special day for barbers.
erase Ills bitterness.
*
It has occurred to many com-

Pany

by personal experience with

He might, for example, be a
customer, in which case he would
If he is favorably impressed with
judSe your company by the servthese
things, : he probably will
ice and; quality of its products,
think well of the company and
The word "service" takes in a lot
take pride in its achievements.
' of territory. It includes, of course,
Presumably also, he will become
Less serious, but still vexatious panies, too, that employees lik$ to ability to deliver goods as promsufficiently interested and articu-., indeed, would be another situa- show the identity of their visitors.'*s.ed- ^ a^s0 covers technical adlate to speak enthusiastically of tion. Suppose your several hun- Some of our plants, for example,- vice on the use of the product,
the company to friends and ac- dred employees all crowd into the have signs throughout the route of. Then, too there are personal con_

Dickens

that

penned

which could well become
for

ment. "What we've
"is

wrote

keen

motto

relations

public

any

lines

some

depart-

got to do," he
«oirits

our

neighbourly.

quaintances and, in his

own way,

local bank every Friday to cash

trio

These

have

tacts which the customer has with

blackboard

help sell its products and.its their paychecks;- and- it takes in the center upon which?hename the company-the letters he recome all
right in the end, never Policy.
.'
everybody a half hour or more to 0f' the touring group is written. ; ceives—;and conversations with the
fear »
In the same way, Mrs George- reach the tellers' windows. The Above it is the line, "Our Visitors salesman. There have been books,
Npvpv
in
thp
Twpntipfh
Gen
Jackson> if she is the wife of an cashier at the lunch counter next Today Are," and below it the line articles, motion pictures, radio and
inrv has the need for neigh borliemPloyee> probably b a s e s her door runs out of change and needs "Guard Their Safety."
television programs, as well as
hppn prpatpr
morp imooropinion of the company oft per- some in a hurry. Another cusin many communities through- countless speeches,-devoted to the
tant than
it is tod a v
Because of
sonal exPerience> although her tomer wants to cash a check be- out our country, local chambers of subject. The tenor of all of them
the stress of modern life and the
viewP°lnt may be somewhat dif- fore he catches a train. But every- commerce and manufacturers' as-, has been the same—"a chain is no
Droblems which confront all of us lirent from that of her husbandone has to wait—except the train,' sociations have sponsored ex- stronger than its weakest link.?'
in
these
difficult times
great
She' to°' however> rehes 0n ex- of course. The whole community is tremely successful Business-In- An inefficient or careless waiter
.perience—what she knows about inconvenienced and whom do they dustry-Education days. On these can drive business away from a
nhsWT•iW-:ft0iHndC^nrde
rmthe comPany> what she thinks of blame? Your company: again
days, teachers meet with business-. ^ne restaurant, although its decor
pushed by a kind word, a courteous gesture or a moment or two
her husband's job, his pay and his
Yet with a nttle thought and men) usually af a general open may be perfect and its meals exand

npss

shall to

u_i.

ui~

of consideration of the other fel-

this

the

true

relationshin
relationship,

relationship

with the

individual

nur

it is pouallv true of
it is equally true of
a

°PP°rtumties for advancement. Iv
reading one
studj^jnade
f®c?n.tly on this subject. It showed,.
m ear,J;ywhich gives-her hus™.ai-ried life'a wife
favors
job

recall

has .fcand

company

community in which

chance

ner'
are

carried

small
man-

largely determines

whether the

The

community is

pleas-

ant, agreeable place in which
everybody tries to get along with
everybody else.
-

Today
I

for

would

overtime

eltra

fl,e

o!CYUl in buildlnS

Tn^/te^Tife^hn^eve^

chndren

whln^ 5ahi?itv^

InH

short time

discuss

with

.T.

too much overtime with dis-

upon

favor. I

thought this

interesting
that each

proving^aga"n

sidelight,
0f

forms opinions based on our

'come all

George

Jackson

not

'What

Dees

Think

For

Our

munity
think

individual in

one

com-

ask "what does
organization?"

and
our

We will

ask ourselves how

he
this

individual. Gecrge Jackson, Amer-

forms his opinions of

ican,

your

Tr.

■^•1S

obviously will come
from his personal experiences-if
with

ployees

its

em-

your company,

the

products.

absence of personal contacts, how-

his

ever,

opinion

necessarily

upon

heard

from

both

others, and
press

First

with

all,

the

and

has
from

Pan^l on

screen.

about

Let's

George

your

com-

seen

you

activities: " by

upon

..,gm nave.

Deen

eiimi

swer

session

anoTeTuism

inattentive receptionist or phone
operator often can hring down

public

the busi-

swer session aevoiea w xne uus>

eaSe

co^

devoted

visitations

are

no?

customer

r0mnanv

whose

your

readiness

co-operate
grams for

community

This is not

perfect

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

any

of such Shares.

102,424 Shares

Kimberly- C lark C orporation
4% Convertible Preferred Stock

pro-

own
an

experience

employee, he

opinion of the

on—day—any nejgft.

Par Value $100 per

;

or-

employer. One of

But

the

favorable

impres-

fn the world can be swept
forever by the relatively inconsequential, but repeated, anaway

that also

noyances

occur-dky

day—among neighbors.
•

Neighbors seem to have a. way
of gettmg on each other s nerves
at times; but as long as they are
individuals> who ha°e a definite
personality, and whose troubles,

joys, faults and virtues

are

in states in which the

much like your own- most of these
smile,

of irritation

sources

overcome

readily enough

handclasp,

sympathetic

can

with
word

understanding

and

Blyth & Co., Inc.

regfeL
-The Corporation

Problem

When the offending neighbor is

a corporation, however, and has

October

Copies of the Prospectus may be obtainedfrom the undersigned only
undersigned is qualified to act as a dealer in
securities and in which the Prospectus may legally be distributed.

very

Relations at

1951.

the exchange offer, subject to the conditions of an underwriting agree¬
including the condition that holders of at least 65,000 shares of the 4ffff/o
Cumulative Preferred Stock accept the exchange offer.

pursuant to
ment

i_u

*rB:;„Br;Sire8eMar„lTde",ce,I',R'.,u;:
25,

Kimberly-Clark Corporation is offering the 4% Convertible Preferred Stock to the
outstanding 102,424 shares of 4>£% Cumulative Preferred Stock
pursuant to an exchange offer described in the Prospectus. The Underwriter named
below has agreed to purchase at a price of $107 per share, plus accrued dividends
from November 1, 1951, shares of the 4% Convertible Preferred Stock not issued
holders of its

all

sions

Mr. MacDonald before

Community

host of other activities that

b0rt)00d

individual

personality,

each

management.
the community in general, but. tended as an aid to members of
^"ly
toP p0*^y ^akeJ intO- they are an extremely important our management team in promotthg
consideration the attitude of good one. All too pften in the past, the *ng greater Public knowledge and
the' .
neighborlmess fair employmen community at large and even the
Continued on page 31
conditions, good housekeeping and families of working men did not

the advancement of
commercial, social and cultural

otherwise

So we
to
of
the only tool that should be
A year ago, we published and
Publi<i relations. To succeed, it used in a public relations program distributed 30,000 copies of "The
must start with the actions of top for employees, their families and. Public and You," a booklet in-

community

by your desire to promote better
living condition; by the way you

wrath

service

personal

assist in charitable undertakings;

minor

as an
by

motion

by one.

his

If he is

address

the

what does

definite

based

•

one

know

ganization
*An

•

it?

you

seen
i

pany

what

television

take these

Jackson

will

what he has read

picture

degree

m.osf immediate and lasting

impressions

any

elimi-

been

progress, or by your participation

company

has

sar?ces

have

mjght

experience. On the favorable side,
he may be impressed by what he
has

of this discussion,

purposes

let's take

large

very

Organization?"

sqnrp<?

you -

right in the end."

cellent. Incidents of this sort can
be multiplied ad infinitum. The

attention to these problems on the meeting in the morning. Afterpart 0f the company management,", wards, they tour an industrial
and with the cooperation and help plant, lunch with executives and
of tke cpmmUnity itself, these nui- participate in a question-and-an-

particular frame of reference.

own
If

employee, but a resident of the
thoughts on neighbor- plant community—in other words,
liness
which, in the words of a neighbor of your company—his
Dickens, I believe will help us to opinion will still be based to a

the

of my

some

money

tho°se feiaMps theThifdtna're'rafs^"^"took

whtoh

or'women

men

through

earn'

large

group

work,

notoi^IrS^ WHCh
than'a

...

October 30,

1951.

The Commercial and Financial Chronicle

(1662)

Columbus

boars

probably agreed

are

thing — that is, progress
philosophic theme of the
chemical industry. But we must
is

the

whole

try as a
segments,

case

faith.

only in gener¬
terms

extent

the

we can.

How

much

tice

here, and how
fast.

worth

;

not

routine,

with

In the Oc~

us.

Walter K. Gutman

per's M a g azine" there is

■

professor of his¬

at the University of Texas.
the lead article of this dis¬

tory

tinguished magazine and it is en¬
titled: "Ended: Four Hundred Year
Boom."*

since

populations.
part is that which has re¬

famous

Another

this century
tremendous

early
had

which

Depression.

the

during

vogue

essay

since

curred
and

Webb in

is one which has recurred
1798, when Malthus wrote

part

believes that the

.Professor Webb

•prospects of mankind are
frontiers

the

because

are

now

limited
gone.

are

many

antibiotic,

the

head

large chemical com¬
said to a group of us, "Two
I would have predicted

years ago,

that

the

that

hydrogen

bomb

would

Now I don't say

be made.

never

anything is impossible."

Last

week,

Hoboken

menting

went

see

Foods who

eral

The thesis of Professor

his

ago

research of a
pany

article by Walter

Prescott Webb, a
It is

and

certain

"Har¬

tober

two

unheard of
then are showing up.
Speaking
of ' the
possible 'synthesis of as¬

everyone

agrees

decade

that

noting

have been out of prac¬

are

long that we really know
very little of what is going on.
Many chemical reactions consid¬
ered impossible or very difficult

from

progress

who

the

Gen¬

has been

with

the

sterilization of food.
ments

over

man

experi¬
radioactive
The experi¬

people ped¬

He calls these

tiers.

dlers of substitute frontiers which

will prove as ersatz as
■

don't

I
are

suppose

early rayon.

that any of us

likely to give the least bit of

•attention

such

article,

;though we must admit that if an¬
other depression hits the country,
this

gloomy view will again be
•very widely and seriously main¬
tained.
There is, however, one
useful thought in such an atti¬
tude.

fairly intense radiation unit for

'Phone

experiments.
Tuesday,

said,

we'll

have

fairly complete evaluation." When
I called he said, "The results were
little

marily

is pri¬
physical problem. Either

can

produce the goods neces¬

underwrite

sary

standard

science

that

the

these

fast

living

richness

the

has

growing
we cannot.
a

predisposed

are

illustrations

moving

results

be¬

lieve, then it will produce a boom
and greater than that
since Columbus, but if that phys¬
ical possibility is not there, our

far longer

being

achieved and of indications of

un¬

expected triumphs and undesired
setbacks. Even if each of

great deal

than

have

that

practical

knew

the

beings

while

faith

achievement of Columbus

which

con¬

One of these is by

for

in¬

stance,
industry
accomplishes in the next 40 years

worlds

have

But if

you know enough there isapparently wealth wherever you
are.
Switzerland, which
has

scarcely, any acres or raw mate¬
rials, has developed a new source
discoveries

of; cortical

made by Reichstein, a
tist.
The long-term

has

cortisone

market

for

estimated

been

Little

the

hormones

Swiss scien¬

and

others

means

country like Switzerland.
to

seems

of science in the last two centuries

give

solid

for

reasons

Optimistic and

solid

being

suggest that there is

What

strive

for

understand

the

sions, but we
portant

technical

learn

can

thing,

basic

industry

did

one

problems

always

articles

there

can

whole

can

do between 1950 and 2050 what it

did between 1750 and 1850
new

can

geographic

frontiers.

Mr.

Society

Schwartz's

Oct.

Gutman

the

Security
Analysts,
Restaurant, New York City,

II, 1951.-

ALL

read.

were

in order of the rate of return.

MEMBER

BANKS

BY DISTRICTS

(1946-1950 Average)

the

Net

Profits
V;
to

District—

v,
-

Capital

District—

??•>•:

Accounts

■Profits
' *
to

::-v"-"1. Total
'?'VAssets

constant

the American

18.000

6.4

Chicago

____

——,

0.52

Minneapolis

0.53

8.3

____________

Boston

7.4

___

New York

0.55

Atlanta

?—8.5

Chicago

0.59

Louis

8.9

St.

9.0

Richmond

9.5

Dallas

9.9

____

■

0.49

6.6

York

Richmond

As T thumbed

through the papers I got the im¬
pression of non-controversial con¬

Minneapolis

stant

Atlanta

the

They

progress.

feeling

forward

that chemistry has
movement.

differ

seem

from

practical

the

Chronicle,"

current

which

copy

San

____—_—--

0.59

all

Cleveland

0.-34

City
—

Philadelphia

The banks located in the more

rapidly growing

0.61
0.63

0.64

0.65
areas

and the

agricultural sections probably have a higher percentage of their
assets in high-yielding loans.
Also, credit restrictions such as

requirements, adversely affect banks in the urban centers.

reserve

recog¬

nize as perhaps the leading single

Kansas

! 11.3

San Francisco

Francisco

10.8

?____

0.60
—______

10.5

—-

City

Financial

and
we

—

Kansas

economists,

controversies.

Louis

Dallas

Chemists

lawyers, politicians
and
even
psychoanalysts—they don't fritter
efforts

St.

implement

areas

subsequent columns, some of the individual-banks in the

away

from the money centers will be reviewed.

repository of thoughts of experts
on

banking,

issue,

but

commerce

still

and

eco¬

find

Three With Inv. Service

Withdraws From Firm

unusually calm

(Special to The Financial Chronicle)

headlines

Preserve Our Economy."

The

world

of. the

is-

It is

sore

thumb.

remarkable fact that Eu¬

rope mas not a crowded land when

That's not for

sure.

the

Kenya Colony and Uganda
Head Office:

26, Bishopsgate,
London, E. C.

themselves

believe

covered
year

a''huge area of
wealth

they

are

which

Paid-up

•;

Reserve
.

.by

uncovering.-

•

Capital

Members New York Stock

"___£2,000,000

Fund

£2,500,000

'The Bank conducts every description of

undis¬

year

Laird, Bissell & Meeds

and Zanzibar

Subscribed Capital—:—£4,000,000

there

Third Quarter 1951

Ceylon, Kenya
Colony, Kericho, Kenya; and Aden < •

Branches.Jn India, Burma,

our

chemists

City

Bank Stocks

Bankers to the Government in

philosophy of the chem¬
ical industry can be justified
by
the one single, observation tha'

ANALYSIS

17 Ni Y.

of INDIA, LIMITED

investor?
think

COMPARISON &

NATIONAL BANE

Corporation, 650 Seventeenth St.

Exchanges.

investor

science—the science of territorial

stick out like

CHICAGO, 111.—Forrest Laidley
like these:
"We Are Departing has retired from limited partner¬
DENVER, Colo..— Richard H.
from the Founding Fathers' Con¬
ship in Hicks & Price, 231 South Flint, Raymond V. Junker, and
cepts," "Are We Going Totali¬ La Salle Street, member of the Robert J. Stirling are now affil¬
with
Investment
Service
tarian?", "Bankers Must Fight to New York and Midwest Stock iated

under¬

before

In order to make comparisons between districts

have arranged the names

Cleveland

nomics.

gives i

talk

Reserve districts.
we

75th

here

ignore the lack of

; ?

following figures, taken from the Federal Reserve Bul¬
letin of May of this year, illustrate this point by showing the rate
of return averaged for the past five years for banks by Federal

Philadelphia

Commercial

If science

total assets.

The

digest of the articles read to the

"The

the

capital

practical solutions to busi¬
problems.
I have here the
convention

considering bank investments in
of the country.

of banks varies widely according to the

power

im¬

positive.
is

for

areas

Once again, those banks in the faster grow¬
ing areas and agricultural regi'ons have a higher rate of earnings
than those in the older industrial centers, both in terms of return

approach of the chemists to their

have

1920

industry long enough to tion fear is their lack of interest
rich profit.
But if the in certain historical statistics
facts do not point sufficiently to¬ which I am sure they know in
ward richness, either of the indus¬ many cases far better than, I do.
Certain aspects are so simple they
in

make

The earning

reasons

growing

discus¬

that

namely,

Other

are

of the faster

locality of the bank.

one

investors must

There
some

our

obviously not calm, safe or cer¬
navigation. Science has been ris¬ tain. We are constantly in a state
ing steadily for centuries and in of worry. The chemist lives in a
standing of the physical possibili¬ history we can see the tremendous much different world. He appears
which
are
ties of production of the industry. results
probably in to feel certain of some degree of
If the facts are really rich we store for us.
positive achievement. The world
What I can never understand of
must develop enough knowledge
chemistry is going to be richer
of them to have that depth of about those who have this frontier ten years
from now, that's; for
faith which will keep us invested philosophy and this over-popula¬ sure.
The world of the average?
less.

in the various stocks, and while
usually small because of large
individual holdings, it is possible to buy the shares.

keep

finger on the pulse of the
industry—this is simply to read
what is going on. Usually we can't

there is generally a local interest
the available supply of stock is

being otherwise.
Let

participation in a fast growing area by investing in a bank
direct purchase of one of the institutions located in the

participating in these developments.
buying bank stocks in other sections
of the country, is that the market is quite limited and generally re¬
stricted to the immediate area.
With the exception of banks in
New York and certain large institutions in Boston, Chicago and
San Francisco, there are few banks which have any nationwide
market for their shares.
In any particular locality, however,

reasons for

other way for us amateurs to

or oil companies
the development of these areas by

One of the difficulties in

that the achievements

industrial, natural gas

many

is practically the only course. •
There are a few bank holding companies such as Transamerica

means

hundred million dollars

Think what this

little

wealth

tremendous

able to participate in

operating in the Pacific Coast section and First Bank Stock Corp.,
located in the Northwest, and which also might be considered as

had

man

found ways of using what there is.

History

area

unless

poor

continuously and faithfully opti¬
mistic.

stock,

still the world would?

and

been

their

and

be¬

1880

have

very great, but he could
have discovered whole sets of new
course

papers

are,

steel

contrast

are

the invest¬

This is particularly

areas.

bank stocks.

however, techniques
deriving a certain degree of
knowledge without being techni¬

tween

The

was

westward

moving

the changes
still present, with
and the industrial

are

establishing subsidiaries or constructing plants, banking institu¬
tions in their operations are restricted to a specific area.
Thus, to

poor',

Chemical Society. Literally

the

that

New

revelation of

could

for

what

been

wealth.

population

opportunities in these growing

cultivates

have

walking

-economic factors

same

true for those investors interested in

agricultural

Such considerations make it advisable to review
ment

For countless centuries

acres.

human

production

the

rate.

acres mean

science

Also, the

center

ness

complete

Optimism Realistic
There

the

unless

Another important factor in this

the

been

Boston

not

We
the

fellowship of enthusiasm is point¬

little

wealth

that

.■
'.v
population and the movement of indus¬
has been one of the primary reasons for the

growth of the Southwest and Western areas continuing at a rapid

flow of

still

reasons for thinking that our
phi¬
losophy of the chemical industry
is not only pleasantly optimistic,
should sober ourselves with
it is realistically optimistic.
The
thought that the philosophy of the
chemical industry is like those of discovery of the new continents
all industry, practical.
The mere was itself one of the products of

.enthusiasm will do no good.

The plain fact is

the

even

in the Southwest and Western areas of

Much of the gain must be considered permanent as

would

structed.

1,000 tons.

areas

has

basic.

are

pro¬

was

field

general prosperity of
sections which has prevailed during the period.

these

possibilities

unshakable

connection

fig¬

Steel

which

'•

developments during the past
of commercial banking has

significsnt
economic

gains experienced in deposits.

16th

census

States

1810

tries into these

about chemistry

analogy.
If,
the
chemical

Any economic problem

cite

historical

Physical

Problem

cally expert.

j Economic Problem

then only

year.

industrial

look at the

United

duction

very

the

most

broad

The rapid growth of

have been only 200

may

ures

steel

the

the country.

absurd-sounding estimate

where the government has set up

is opening up new frontiers which
will be greater than the old fron¬

tons,

several

predict that science

Century

Brookhaven National Laboratories

disappointing. It will re¬
.And we are filling these limited
quire a lot more work.
In the
areas?. with
babies.
The ^great back of our minds we
thought it
boom which started 450 years ago
probably would, but we hoped we
.on
Columbus
Day is
therefore were
going to find something
over, he says.
fairly simple. It isn't."
The Professor thinks very little
of those who

the

been the growth of deposits

Ger¬

France,

production
•

Arthur

England,

The annual European

being conducted at the

are

decade

producing center, the rich coal
of

JOHNSON

This Week—Bank Stocks
of

Cne

England was still a great

unless you

trying to get a deeper under¬
standing of the industry we are
handicapped by the fact that few
of us are chemists, and those of

but

only justified by

ally optimistic
detail

quantities.

Faith

None

Poland were'scarcely used
and mostly unknown.
Iron and
steel were produced in very small

of certain

facts.

west.

and

By H.

great forests

many,

must not confuse
enthusiasm for a justification of

this

think

which

forests

our

south

fields

certain

in the

companies,

philosophy not

tin

hence; in contrast to the uncertain world of the investor.'
us

the

pected...

optimistic outlook for chemical industry is realistic and prac¬
tical. Asserts it is certain world of chemistry will be richer 10

one

thick

Europe's minerals had been more
than scratched, some hardly sus¬

signifies

Stock market economist maintains historical approach

the

roamed

were as

Stock Exchange

Goodbody and Co., Members, New York

Bank and Insurance Stocks

people, Italy, Germany about the
orcier.
Wolves, wildcats,

same

GUTMAN*

By WALTER K.

All

New

Typical counties such as
England had around 5 million

Of the Chemical Industiy

the

Thursday, November 1, 1951

World.

The Practical

years

opened

.banking and exchange

business

Trusteeships and Executorships
also undertaken

•

Exchange

Members New York Curb Exchange'
120 BROADWAY, NEW YORK 5, N. Y.

Telephone: BArclay 7-3500
Sell

Teletype-~NY

1-1248-49

(L. A. Glbbs, Manager Trading Dept.)

Specialists in Bank Stocks

Volume 174

Number 5060

The Commercial and Financial Chronicle

(1663)

sumption through taxation or any other means could be attempted,
with any hope of success. Much labor is wasted at
present through

Mr. Churchill's Problems

employed than are really needed. Possibly a Conservative is poli¬
tically and morally better placed for undertaking the ungrateful
but necessary task of
ending this state of affairs.
The prospects
of the solution of the fundamental economic
problems depend on

Dr. Einzig recounts
problems and difficulties facing Mr.
Churchill and his Party in administration of British
Govern¬
ment. Foresees unlikelihood of British
workers cooperating by

LONDON,
Mr.

Churchill

verdict
in

Although the situation is

the

charge
not

now

of these efforts.

success

British

the

electorate

British

Predicts

put

Government.

that

repeat

there

was

kirk,

table

memorable
can

passage

only promise

during the

great deal
Britain

sweat

recover

and

toil

from

tional

from current fiscal and monetary

Speaking
Young

meeting

Men's

Board

the

Trade

New York City on Oct. 24, Dr.
Leland Rex Robinson, Vice-Presi-

dentof the

is inevi¬
the

achieve

comparative

quite

desperately urgent today

yy;v",v;\'V

through high

would

tend

would

make

generate

the

task

taxation

discontent

the

real

wages

workers,

increasing the output

and

difficult

impossible.

The ideal solution
would, of course,
problem sdlely with the aid of
increasing the

not

be to solve the

output sufficiently
provide for rearmament requirements and to offset
the infla¬
tionary trend due to excessive purchasing power in the

hands of

consumers, without

having to resort to
Unfortunately, this solution

power.

any cuts in that

must

ruled

purchasing
out

im¬

possible.
.

Even

Mr.

Churchill

succeeded in persuading the workers
to work harder than
they did under the Socialist
Government, it
would not solve the problem.
The world-wide
shortage of ihany
essential raw materials sets a
limit to the extent to which' the
output in general could be raised.
In certain lines a
great deal
could be done with a little
goodwill on the part of the workers.
In
particular, the output of coal could be increased
considerably,
and this would
greatly help in the task of
of many

industries, at the

filling of the

time

same

increasing the output
contributing towards the

in Britain's balance of payments.
But the main¬
present'volume of civilian "cbrrgumption of
many
categories of goods, and the increase of arms
production, would
deplete the inadequate reserves of
sulphur, base metals, etc., to
such an extent that a curtailment
of production would become
tenance

gap

the

inevitable.
In

f-cyy" :

1940,

Mr.

Churchill

able to inspire the workers to
effort in face of the extreme
urgency of rearma¬

make

ment

requirements.

the'

supreme

Today such urgency does
majority of the workers

overwhelming

Churchill

was

not
now

political opponent rather than as
There is bound to be
much resentment

leader.

prevail,
regard

and
Mr.

and

mounting

load of income
and

excess

profits
tion

earnings
gins that

-s

mar¬

greater

Leland Rex Robinson

threat¬

corporate

taxa¬

vol¬

turnover

and

even

to maintain present levels.

Referring
sure

the

required

upward

break-even

points,

Dr.

compared the plight of
businesses under current in¬
flationary pressures to a cyclist

whose wheels

are
expanding as he
pedals, and who must keep going

and

faster

"The

maintain

his

'/,

problem

further

com¬

plicated," said Dr. Robinson, "by
the build-up of debt under condi¬
tions

which

artificially cheap

adds

nerability of
companies,
should

vul¬

when

they

paring down their ob¬

ligations.,.;
"Of

financial

time

money,

individuals and

many

the

new

going into

money

corporate inventory, working cap¬
ital
1950

and

plant

over

of debt and
common

retained

tions

ings

less

stock. So

fifth

dependent

earnings

become
are

than

have

that

face

the

even

at the

have

committed

risk of

expenditure

earn¬

f resist

reduce

'good

old-fash¬
again take

This advertisement is not

means

their taxes.

themselves

present

the

maintenance

unwarranted

high

the

share in cash.

per

Offer will expire
on Nov. 9, 1951.

at 3 p.m.

cost

living.

people

the

accept
share

exchange offer. Each
new preferred stock

the

stock of the

common

live

be¬

and

thereafter at lower prices.

So greatly has

purchasing

liquid assets after allow¬

paper and of cellulose

the United States.

ding

needed

are

balanced

restraint,

consumer

sav¬

wadding in

Cellulose wad¬

into

converted

various

products including products
ufactured for
national

Products

Company under the trade
Kleenex and Kotex.
tion

are

reported

net

sales

$142,605,942 for the year ended April
30, 1951, and $52,463,130 for the
in of
four months ended Aug. 31, 1951.
to confront American business and
Net income after preferred stock
workers after the 'preparedness
dividends for these periods was
hump' is reached in 1953 or 1954.
$11,515,226 and $3,468,298, respec¬
ings,

reduced

debts

and

sound

that, without this pulling
our belts, a
crisis is likely

situation

The

stark

wheq

that

postwar

the

released pent-up

demand

extensive

deferred

needs."

CARLOS,
is

Opens

Calif.—Herman

securities business from offices

Cherry Street. Mr. Frese has
as

BEACH,

Fku — John L.

Roper, V. A. Ely and N.'S.

Sharp

engaging in the

now

active

PALM

Ahbe, Ralph T. Ryan, Richard H.
Landrum, R. A. Dahn, R. C. Cohan,

Herman Frese

Frese

Join Harris, Upham

industry un¬
retooling, and
satisfy long

(Special to The Financial Chronicle)

John L. Ahbe, Others

con¬

and

construction

SAN

tively.

years,

vast accumulated purchas¬

power

sumer

would

with

immediate

recent

ing

then

contrast

investment

counselor.

have

with

Harris,

Ahbe

was

John

become

Upham

associated

Co.

offer to sell

or a

Ahbe

Co.,

268

Ryan, Landrum, and Dahn were

solicitation of an offer to buy these securities.

This

credit

before November 1, 1961)

Copies of the Prospectus may be obtained from such of the several underwriters,
including the undersigned, as may legally offer these securities in
compliance with the securities laws of the respective States.
•

•

means

deflation

Price $51.50 per Share

that drastic

taxation

measures

would

measures

than

W. C. Langley & Co.

rem-

Blyth & Co., Inc.

Eastman, Dillon & Co.

aimed against

through direct intervention to divert
industries where they are not needed for rearmament
on essential civilian
requirements.
The problem of the scarcity
of labor must be solved before the curtailment of civilian con¬

Merrill Lynch, Pierce,Fenner

labor from

Corporation

This could be done either through ortho¬
or

Union Securities

October 30,

1951

& Beane

South

County Road, with which Messrs.

offering is made only by the Prospectus.

on or

Mr.

formerly proprietor of

also associated.

(Convertible into Common Stock

names

The corpora¬

service

sufficiently strong bargaining position to
increase of their wages following on an increase of

man¬

marketing by Inter¬

Cellucotton,

money

Par Value $50 per

It seems, therefore, that
checking consumption

The

(CST)

vertible preferred stock not issued

6% Preference Stock

level.

the present state of over-full employment prevails

over-full employment.

and

means.

much

budgets,

shortages

social

pre-'

1951, of

Goodall-Sanford, Inc.

consumers'

edjV this state of affairs by resorting to
dox

"So

in order

existing circumstances tend to produce inflationary rather
deflationary effects.
The government may feel impelled to
;

80,000 Shares

of direct and indirect taxation.

long

workers

enforce
.

Nov.

New Issue

the

the 4M>%

will be convertible into two shares

vidual debt.

The

unpopularity of policies aiming at such cuts,
antagonising the workers.
The Conservatives

its

increase

small

for consumer and other indi¬

ance

been

the main effort will have to be directed to

<by

power of

incurred

They will
purchasing power by means of addi¬
tional* taxation, or by
allowing prices to rise further without any
corresponding increase of nominal wages.
But they promised to
to

money

1933, that from 1945 there has been
shrinkage of nearly one-third in

1161

government will

have

new

relatively

upon

depleted, proportionately

ioned risk capital' can

stock

Kimberly-Clark Corp. is an in¬
the
pyramiding and monetizing of tegrated manufacturer of white
Federal debt raised general levels papers and cellulose wadding and
of costs and
prices, since aban¬ is the largest producer of publi¬
cation type machine coated book
donment of gold
convertibility in

was

productivity should increase in industries where it
handicapped by raw material shortages it would be neces¬

been

government

heavier financial charges must be
unless

source

yond their

corpora¬

these

preferred

pre¬

equipment in

and

payment

cents

of the

quarter took the form

4J/2%

"These disturbing trends in
corpo¬
ration and will be redeemable at
earnings and capitalization seem
$108 per share until Jan. 1; 1959,
likely to continue as long as our

new

the

have

dertook

-v-'.-;'

and

since the mid-thirties.

many

equilibrium..

Stock is¬

common

the average per capita

pres¬

Robinson

faster

the

ever

ume

are

sary for the new government to cut
purchasing power
to restrict civilian consumption in industries
where such
exist or threaten to develop.
So Mr. Churchill's

have

costs

the

danger
that they may prove to be
very bad losers now, and that the
output might suffer in consequence.
On the other hand, it is
possible that the political change might induce the workers to
give an honest da.y's work for an honest day's pay,
precisely be¬
cause
they could no longer rely upon being supported, right or
wrong, by a government of their own choice.
is not

out¬

pursuant to the exchange offer
ferred, were only 27 % of new subject to the condition that hold¬
public issues of corporations last ers of at least 65,000 shares of the,
year and about a sixth in 1949; 41/2% cumulative preferred stock

they

Even

its

great national

among the rank
supporters of Socialist Government, and it
may
truculent attitude towards the new
government and
towards employers.
The workers were not
very good winners
after their election victories of 1945 and
1950; there is a
file

and

result

including

while

business,

decline

among

remarked

the

when the
enemy was at the other side of

Mr. Churchill's administration
will have to approach the
prob¬
lem or the rearmament and of
the recovery of economic
equilib¬
rium in two ways. > It will
have to make a supreme effort to
increase the
output, as it did so very successfully in 1940. At the
same
time it will also have to
enforce a drastic curtailment of
civilian consumption.
To some extent the two
approaches are
conflicting with each other. Any attempt to force down
civilian

increases

English Channel, but it is equally impor¬
Paul Einzig
tant.
And. it is
gratifying that a government
/g
;4
has now assumed office that is whole-heart¬
edly in favor of building up Britain's defenses and is
supported
by a party that places national
security above any other con¬

consumption

preferred

Blyth & Co., Inc.
"But the trend of equity financ¬
has agreed to purchase at a price
ing," Dr. Robinson pointed out, of $107 per share
plus accrued
"is decidedly down hill over most
dividends shares of the 4% con¬

that continued

the

sideration.

in the stimulation

enterprise."

sues,

icy,

security by completing
good time and to an ade¬
Rearmament may not seem to

quate degree.

its proper place
of American

of the last two decades.

Monetary Pol¬

accepting the responsi¬
government, and if she is to

her rearmament

idend

policies.

Econoinists'

bility

her

holders

The exchange is offered on
share for share basis plus a div¬

ferred

National

diffi¬

Committee

convertible

the

stock.

37.5

years that followed Dun¬

4%
to

holdings

Robinson, Vice-President of Economists' Na¬
Committee on Monetary Policy, says this will result

his

blood

you

value

ferred stock in exchange for their

Drop in Corporate Earnings

cult economic situation in which
Mr. Churchill
has found her when

was

are

Dr. Leland Rex

and tears and sweat and toil."
Even though
there is reasonable
hope that there will be less
blood and tears in the immediate
future than

Dr.

hands

standing 102,424 shares of 4% %
$100 par value cumulative pre¬

speech of 1940: -"I

which

stock

acutely dangerous as it was
when he assumed office in
May, 1940, if we take a long view
it appears to be
equally critical.
Indeed, Mr. Churchill could
well

Kimberly-Clark Corp. is offer¬
ing 102,424 shares of new $100 par

the

under

arrangements

dispensing with "feather-bedding."

Eng.—The
once

Kimberly-Clark Makes
Pfd. Exchange Offer

"feather-bedding"

By PAUL EINZIG

increasing production

Stone & Webster Securities Corporation

(1664)

The Commercial and Financial Chronicle

the the previous year, government tax
under receipts lag behind as prices rise.)

Board of Governors tightened

The Overall Credit Picture

Regulation "X" last fall; however,
Act of Congress in September

;

required, loan

Director of Research, The Chase National Bank, New York

(3)

credit,
deposits and money, and lists adverse effects of Treasury's
"cheap money" policy. Holds limits upon expansion of money
supply rather than price controls is best method of curbing
Predicts credit restraint "is going to be difficult to
/
exercise in future."

the

has

pan si on

first

come

experienced

the

ex-

Borrowing
during
the

reached

country.

The

chief

large enough to

cause

concern

banking

borrowing

ing

com¬

bank¬

of the Second World War and the

The increase during the past two,

outbreak

these

Michener

loans

above

ex-

are

throughout
In the second

entire, economy.

our

•

the

much in evidence

now

Take the trend of loans by com-

Korea,
only about 20%
war

gradual upward trend since

(the ^level

were

si on

which

replete with exam¬
demonstrate that ef¬
prices by govern-

March (3

this

year,

government
serve

efforts

set

constant

prices

reminder

the need to return to free market

war

has been

decades

of 1929.
Since fold.
they-have expanded
in

June, 1950,
rapidly as a result of

point

highest

several

years.

This is

widely recognized as a step
toward financial stability.
How¬
future

ever,

credit

and

money

public

Market

soon

public

acts

overdo

fast.

promptly
Our

it.

them.

aware

travels

news

The

and

may

two

periods of
policies remain uncertain at the
impulse"
buying
demonstrate
present time, and the long-run clearly how quickly the consumer
A chart here displays the trend
importance of. the "accord" is de¬ reacts to threats of shortages or
of the Federal debt since 1914,
pendent upon later developments. to rationing. These "stampedes for
including the enormous increase
In this connection, it is impor¬
goods" on the part of the con¬

mercial banks to non-government
borrowers.
In early 1950, before

system.

this credit

Deposits

The effects of

pan

ai]d the Jate~t Mane,

biidget, M of the^fec
y
ending last June, was unplann d.
Instead, it came as? a resultqf u *

system

Recent Expansion in Bank

borrowing
mercial

today remains about $80 billion.
;expected Federal income.

was

government
from the

the

from

reached a peak
well above $100 billion. The total

this

cause

expansion

the government
First
World
War

a'peak iubou^bilUon,

amount

great

than

the

History
ples

forts to control

py.

into existence.-

other in
history of

any

im¬

y«ars

deposits

new

this

much

larger

very

The feature of the whole
widely-publicized
"accord"
was prices at the earliest possible mo¬
period has been, of courser the reached between the Board and ment.
TrnWnfcil
Hnwornmpnt
rise in Federal Government exthe Treasury authorities relative
Those who put great confidence
penditures. Apart from military to
monetary policies. The support in price control should not overactivities, veterans'assistance and for
government bonds on a fixed look the fact that the American
fnrpiVn aid Fpdpral exnenditures
"peg" was modified, and interest public is better informed today
more than doubled between
rates were allowed to move some¬
regarding markets, supplies, etc.,
an(* 194^. During t
p
what higher.
Yields on govern¬ than ever before. When shortages
yea**s, the governme t
ment bonds have increased to the oi
consumer
goods develop, the
within its income in
n y

government,

rea-

place,

during
past ten

Years

was

portant consideration. For exam¬ ment order can never be adequate
ple, during the past three months, substitutes for free competitive
the Treasury has bought defense market prices. Market prices have

(4)

to the

bank increases its "loans"

credit

the

billions

many

dollars, prices become

hardship, the whole program
abandoned.

pur¬

"Fringe benefits" increased labor in cost to the Treasury on these
goods was more than $500 million.

COStS Still fUl'ther.

country

totaling

annual

government

of vital im-

porta nee and interest for two
In

relax

impetus has been

chases

volume

among those dealing
with monetary
and
credit
problems at the time
In 1946,

..The subject is one
sons.

So much

With

given to drives for wage rate in¬
creases
that, despite efforts to goods and services totaling more always served the American econ^
control wages, they have advanced than $9 billion. The rise in prices omy in determining what is to
since the middle of last year has be produced and who the
even more rapidly than was jus¬
buyer
tified by increases in living costs. been about 6%. Thus, the increase is to be. The problems caused by

inflation.

,y.

agencies to

rules.

their credit

Bank economist reviews last decade's developments in

borrowing

By DWIGHT W. MICIIENER*

-;.7.a:;,.::-,-:

such

terms

Thursday, November 1, 1951

1947.

than ten-

tant

contrast to the rise in Federal

devel-

debt, the average rate of interest
country now faces a opments.
paid on. United States Government
recurrence
of
military preparaThe major cause of the 20-year
borrowings shows a sharply downtions which are estimated to cost rise in bank
deposits, the greater ward trend from the mid 1920's.
the

holdings of

since- the "accord"
' effective.
Apparently,

billion

$1.3

became

place, this

that

observe

government securities by the Fed¬
eral. Reserve banks have increased

those who

the

determining policy
are moving on

are

the "accord"

since

theory that it is better to take

the

risk that

debt will

the

move

increase

into the

the

commer¬

government $150 billion dur- part of the money supply, is the
-j^is decline
was
primarily the cial banking system, where it adds
ing the next three years.
The expansion of bank "loans" to the ,resuit of the
"easy money" policy to the money supply, rather than
question is, will the financing of ; government in the form of govadopted by the Board of Gov- to encounter the risk involved in a
these expenditures lead to
still ernment securities purchased.
Al-.ernors of the Federal Reserve Sys- firmer
money
policy.
With the
greater expansion of credit, with though total government securities
tem.
armament program bolstering
ail of the dangers which are en- held by the
banking system have
x
th
business activity, and with no alldepression of the early
tailed?
declined from the wartime peak,
artificiallv
low
interest out war immediately at hand, the
; It
may be well to start our conare.
rates were encouraged as a means time seems to be especially ap¬
slderation of the problem with a !argeI as m the late 1920 s. JudgQf aidjng recovery.
In the early propriate for fiscal and credit
review of the expansion of credit
lng from the record of the past tg4Q»s the same policy was used authorities to move forward in
which has
already taken; place. *w0 decades, expansion of bank
id .
th
war
endeavor
undertaken
last
emergency. their
Then we will notice some of the deposits in the future will be far
h
194Q,
h
u
was
March.
results and consider some of the more dependent upon loans (in
continued as an a\d in
major factors in the present out- many cases unproductive) to the
Adverse Effects of "Cheap Money"
busjness
decline,
even
though
look.
•
•
government than upon loans to „boom„ condition's Were much ,n
Entirely apart from the position
It. is
important, to have clearly
evidence. Thus, the policy of arti- of the Treasury, the adverse ef¬
.

st^

Renting

result in

sumer

merchants
stock up.
the

similar rush by

and .manufacturers, to

witH

All along the line,

supply already large
expanding,- goods are
quickly bought when the occasion
money

still

and

seems

demand

it.

Thus, limits

the expansion of the

upon

money

supply rather than price controls
the solution of the problem. (
Fortunately, it does not seem
likely, that consumer goods gen¬
are

erally will be in short supply in
near
future.
Over all, next

the

supplies should

year's

still com¬
the average

favorably with

pare

for the postwar years.
These

the

are some

whole,

of the highlights

credit picture.

excessive

Viewed as
the effect of

shows

credit

use

the

It suggests that credit re¬
straint is going to be difficult to
past,

exercise in the future.

mind the method

current

expansion

supply

has

the

since

different

been

by which the

the

money

taking place,
today is a far.

process

from that of early
At the time of the Roman
one

No^Iet" urtakeTh'rexpantion
suDD1v since %4 It ficially Iow interest rates has come
L n%iced tlwt the Dresentt0 be aPPlied as a cure-all for
tot V .s annroximatelv $177 billionmany maladies of depression and
ihe hichest total fri
historv' booni> and war and Peacetlme'

o£, ,u.

monev

should

h^ing
b?

oi,r

fects

ofV'cheap money"
at other points

are

ap¬

The

-economy.

current

Dresser Industries;

our

parent

Stock Offered

"national

emergency" demands careful and

An underwriting group headed
conservative spending habits on
of a broad increase in Federal the part of the American public. by Reynolds & Co. and Harriman
money was
expenditures following the out- However, the "cheap money" pol¬ Ripley & Co., Inc., on Oct. 26 of¬
expanded
by
issuing increased
contrast to the expansion of break of the war in Korea brought icy and the broad expansion of fered 187,500 shares of 50c par
amounts, o£ coins using metal of wie
money supply since 1939, greater consideration of the dif- the money supply which has oc¬ value common stock of Dresser
less value.
Centuries later, the. S00°s and services produced have Acuities involved in a
continuous curred in recent years have re¬ Industries, Inc. at $25 per share.
common method
was the
Net proceeds from the sale of
printing increased by only about 50%. application of the "easy money" sulted in spending habits of the
of additional amounts of.
paper • Largely as a result of the great policies used during the
these shares will be added to the
past two opposite type.
currency.
This was the
method, exPansion oL-money relative to decades. This brought the lines of
With money
readily available general funds of the company
you will recall, used
during the ?vai*a,k*e SPpds and services, we the conflicting objectives of the and with much emphasis on the and applied to such purposes as
John Law period in France and
.av
ac* a llse ln Pr*ces- The rise Federal Reserve Board and the
buying of goods in the face of, or the board of directors in the fu¬
the "Greenback"
period of Ameri-'s*nce ^0 has been the greatest United States
Treasury into sharp for-fear of, short supplies, govern¬ ture may determine to be necescan
history.
Today, the
chief !n °ur history and, recently, the focus>
ment controls have been applied, sary
or desirable in
connection
method of
expanding the supply level of pnces has exceeded that
" " with all of the
dislocation, confu¬ with the business of the company.
of money is the creation
of deposit
of an.y other period since the
Function of Federal Reserve
Dresser Industries, Inc., directly
sion and injustice which has al¬
accounts in commercial banks.
establishment of the Constitution.
Under the Federal Reserve Act, ways
or through its nine wholly-owned

tyres.

risen

jmS

Empire, for example,

since the late 1920's' The Prospect

I'd many,

this has always been

confusing, but. actually, the

is not difficult to
understand.

ess

When

one

mov

borrows from

his

DorroAs irom nis com-

events^he*does

proc-

currency. Rather, the expansion
takes the form of a new dpnnsit
up

rower

liability of the
country
mon

fn°tuni

bank. As you

practice

Civil

developed

abdut

the

time

Similarly,
Government

when

the

borrows

Federal

from

the

banks,

new

deposit for the

account

of the government—a
"Tax and
Loan Account"—is built
up on the
liability side* of the bank state--

tbe"

Thus,
abstract

as
„(

the
a„

City,

Oct.

30,

commercial

address

Commercitd6 Fhtance

York

b?lty
0f credit

kfnP ?e,

fitted to the taskV° UmG
of ac-

rommodatine

rommprcp

and

husi-

the™ hand,b the

fluenLd eionSmic blhfvlo
lluenct;a economic oenavior.

^easury

Department is responsiine ble for the overall financial posi-

The

Mr.

n ?Xei

Hefor j*. ^otal con".

sur™fr credlt outstanding has rece. /
^ej4--?,^ a41-time high

point of $20 billion. Early this
year'.
Boara of Governors
exercis<;d its power to tighten the
terms of consumer credit, and sub-

?u
;

JST
^ecBn.ed to
J0*1.
A relaxing of.,
Regulations by Congress was_
-

^10n
(-2)

y
Home

an increase to $19.3
en

August.

mortgage

debt

1945. there has been

S°me ^3° billi°n. t0 3

point

nearly $50

increase

"eW

billion.

paid on the Federal debt,
The

high
The

interest

cost

Treasury

accompanied such action.
underlying cause of the pres¬ subsidiaries, is engaged principally
price level in this in the manufacture, sale and dis¬
country is obvious to anyone who tribution of machinery, equipment
reviews
the
situation.
But
to and miscellaneous products used

The

ent rise in the

eliminate

this

petrochemical

difficult

by the oil,

gas and

alluring, par¬
ticularly to the politically minded.

industries.

Many products of the

cause

task. Price control is

Dresser group are

also sold for a
general industrial
problem is almost as old as money applications. The company directs
the general policies and integrates
itself.
In
1793,
for
example,
This

kind of

France

was

"solution" for the

suffering from

a rapid
supply,

wide variety of

the

activities

its

subsidiaries,

which, in turn, are' directly re¬
and a special group was appointed sponsible for their own operations.
company
maintains an ad¬
to study the whole problem of ris¬ The
ing prices. The committee advised visory staff which furnishes its
that prices should be stabilized "at subsidiaries with financial, engi-?

expansion

the

money

purchasing^

marketing,

neering,

borrowing is, of course, of great
importance, particularly when the

of 'the

debt is at the present high level,

basis

;.working, classes," On the legal,: tax, accounting
of this recommendation, a services and counsel,

price

control

But
to

there

are

consider.

rates

also, other

factors

The

artificially low
which the Treasury has

been able to borrow

were

provided

by an expanded money supply
which,
in--* turn, -brought
high
prices- Being the largest buyer of
goods and services in the Amerjcan

has

increased without precedent. Since

.^d^.'^Ne^ °f

i9oi.

Consumers have resorted to
of cred^
a Sreater ex-.

the

banking system
United States
Government securities become the asset
of the

•An

SUPP'y Sr

this

commercial

*nent.

increase

War, and today it is the comprocedure. Nearly 90% of all

sionhLs been'no' ex^eptlonTo^he t|0tn^f ^ f vernment. Through-plolev^^etpSurel ^ncreasel
^dSTZ^
tisoped'-re pr.oving t0 be nf borrowing and public debt refund'f16"'5 Wnh-ich a
Shgmg lmPOrtanCe are the
Treasury;1 gave major
know, 101;™'ngattention to the rate of interest

payments made take the form
drafts on deposit accounts.

and

which

Board carries the responsibilfor credit control, a.responsi-

for his account. The borleaves his note, his
promise

c£ the bank and

this

provides^numerous inmsi°ry proyiaes- numeious in

History
stances,;

not borrow coins

set

Developments in Increased Money ft16
Supply
^ity

market,
the
Treasury
is
those who suffer most from

among

advancing prices.

(It is true that

rate

proportionate to the wages

regulation

tablished.

Prices

the

times

existing

prices

to be
as

added; 5% was to be added

10%

was

of -'the

to be added for the profit

retailer.

Problems

forcement followed.

this

However, enforcement

taxpayer income of

en¬

aid

■

Stuart

Wyeth Go.

■i

'n;rl

Formed in
PHILADELPHIA,
MacR.

Wyeth

has

Pa.

—

formed

Stuart
Stuart

Wyeth & Co. with offices at
Walnut

Street

engage

1401
ihe

objective, fines, imprisonment securities business. Mr. Wyeth was

ury

upon

profit for the wholesaler and

and

largely

1790; transportation charges were

wheenUpricesnrisT\ut"?ncetTreras-

[n'oneyeTrtbased

es¬

was

fixed

were

other

and

the

guillotine

were

used.

formerly with Stein Bros. & Boyce,

found

Dixon

impossible, and after untold

& Co.

was

Co.

and

White,

Weld
)

to be

Volume 174

Number 5060

The Commercial and Financial Chronicle

(1665)

with-

1952—Another Good Year

News About Banks

of Business, Indiana University

Dean, School

great

;

and

Six

promotions and new ap¬
pointments in the official staff of
the

Chase

National Bank

York were announced

Joseph

Coleman

Broadus,

and

Leonor

advanced

Were

the sale of

si:

Florence,
death

appointed Assistant Cashiers.

Coleman is

member

regional

commercial

staffs

banking
*

•>:.

The

New

increased

its

Twelfth

Five

Oct. 25, in the Grand Ballroom of
Hotel Astor.
The Club now

numbers

583

members

total

who

stock

dividend

cisco

rep-v

approximately

the
of

welcomed

for

the

1952

year

club

into

the

rent

Board.

John

were

Gorman, President,
William
O.
Walter, Vice-President, and Mat¬
thew McKenney, Jr., SecretaryTreasurer. > •
*:/;/ *V•

.'/•.••
v

Company

the

last

half

affected

Factors that

year.

high level

Public;, offering
Home

and

maturing Aug: 15,
on
Oct. 30 by the"''FederalHome Loan Banks through Ever¬
made,

business

located in Pennsylvania.
Darcy, also a member of Irving's loaning staff, travels for
the company in New York State.

Mr.

ett Smith, fiscal agent.

The notes

attracting

double

promotional

campaigns
the

that

purpose

of savings

chandising

will

mer¬

be of

great significance. Because of the

persistence of inflationary trends,
programs

of this kind are highly

not only for the suc¬
of individual savings associa¬

important
cess

but

tions

also for the

gen¬

of fighting inflation.

eral purpose

quar¬

savings
levels, being
in the

the rate

their

for

have

first quarter or of the same period
last year.

/ it

covering

Reports

of the

weeks

Trends

Business

General

year,

high

other factors than the
rates paid. Advertising

many

fall

early

the

indicate

season

improvement in general
throughout the
country. The current outlook ap¬
gradual

business conditions

now appears that savings will
attain higher levels in 1951 than

pears

in any

ness

tions

sponsors

are

way

they

hard-boiled

Con¬

some

them

$84

v'"

currency,

Gold

The

induce

Standard

well

the

League

cruel hoax

intentioned,

but

ill advised, people to write letters
to

their

support

think

that

this

Congressmen

program

into gold at $35

the

and

they might be able to

redemption of

secure

friends

dollar

paper
per

continues

cur¬

ounce.

lose

purchasing power only at the same
rate

pointed out

by Dr. Spahr,
for another five years it would be
as

17c and

worth

35 of these dollars

would be worth
these

Or
tual

eight years with the ac¬
of the dollar only 2c

they expect to apply their

ratio

and

get

their

ounce

are

vember

about

$8 billion.
recently

monthly

falls far short of its pay-

measure

objective.

as-you-go

"The bill" says

expected

the "Survey," "is

yield

million in

about

full fiscal year.

$5,691
Since

presumably

will

government

receive

slightly less than half of
during the remainder of

sum

this

fiscal

outlook
a

No¬

"Guaranty

Guaranty Trust Company

New

this

the

publication of
of
York, states that the new tax

Survey,"

the

issue

the

year,

for

budgetary

1952

fiscal

points

dollars,

the basis of Con¬

gressional and Administration

Continuing,

"Many

article

the

and

economists

thorities

had

es¬

'/' 4

■4":

timates."
v

to.

probable deficit of about $6 bil¬

states:

tax

hoped early

au¬

in the

when Congressional leaders:

year,

structure, that a more logical and
equitable system of levies would
evolve from the investigation.
actual

fruit

quiry,

however,

minor

serious expamples to

show the absurdity of the rigid and

the

consists

variations

legislation.

the

structural
law.

new

uted

earnings

tives,

from

patch-work

some

in¬

only
ad¬

the

There

Certain

undistrib¬

farm

mutual savings

are

within

coopera¬

banks,

and

savings and loan associations
now

pattern

changes

The

extended

mittedly

subjected to taxation at

are

cor¬

porate rates.. The present two-toone

ratio

long-term
purposes

the

application

capital
gains

losses

for

against

income-tax

has been eliminated, and

special 'depletion allowances' have
been extended to

erations

gold for 70?
These

will

Commenting on
the
enacted tax legislation,

short-term

of gold,for this sum?

worth

would
35

only $5.95. Would

people expect to purchase

.ounce,

1952

the

York

New

Company

probable deficit for fiscal

says

\/ promised to review the entire tax

'.',4

should note that it is

Trust

lion

limit of life

pectations

Monthly publication of Guaranty

its

merits

Building,

Washington 4, D. C.

devalued

3038

any

value."

external

and

to 42c.

sponsors

will remain stable in in¬

currency
ternal

country

901 American

determined by what

course,

paying a premium for
in which the

or
a

in-

Nobody

for hoard¬

reason

the

The actual value of the dollar

Spahr

good

our

try from further devaluation?"

is, of

their currency.
a

gold

dollar of the people of this coun¬

rency

Since

have

can

peoples' gold for $35 in discredited

May 4, 1949.

Treasury

lowers seek to have this gold dis¬

uation.
above

the

comparative
a

time is therefore much

conditions

ing gold

not

Reed

can

with
with

eye

fine opportunity for prof¬

with

The

New York 4, N. Y.

splitting

principal, and

splendid job and this stock now

offers

it,

J&Jf&mmi

not

have not al¬

feel that the management has done
a

Selected Situations at all Times

eye

management' especially
'spect

SECURITIES

billion
of
in circula¬

tion, over $140 billion of bank de¬
posits, and scores of billions of
dollars of government securities,

new

equipment and modernization of
pianf

pany our views in

25 Broad Street

expansion

f earnings which have been

not

mounting

United States currency

unanswerable

is to follow budget and credit pol¬
icies that will give people confi¬

ter he says:

obligations. Their condition at this

*ise for the eight months to little
thic

$27

the

run on

tices but they are at least capable
of determining the totals of their

off, reducing the cumulative

rc?

serious

remained

tervals. In July and August gross
was

gold

earnings, amounting to $109.00 per
share, and the capitalization has

in-

1950

from

ligations

bas keen financed

continued to

over

gold reserve."

ber

of the trend. In the early months
of the year revenues

gold

but the important

the
to, date
reversal

been

has

$moo

quote

billion

$24

our

spent from 1945 through 1951.
However, there is so.much value
there that a few dollars per share
|n book vaiue is not important,

the current year

view of the fact that a sum e

on
the junior equity
$4.50 a share, the best
since

has

there

1950, at

attributable

mail

retroactive

soared

results

flgure which seems very low per
equivalent to $110.00 in
share

imim

considerable
considerable

was
was

Secretary

and

adequate to meet

al-

After

floods.

and

conditions

May

holdings would be completely in¬

dated

letter

Acting

Jr.,

"Even

ly hard hit by adverse weather

at $35

convertibility

This

ounce.

4, 1949, was signed by Wm. McC.

common

the company was particular¬

year

This

economic

buy. Theories as to its rela¬
portation costs under control it is $35.
tionship to gold, or to anything
railroad property in the country, difficult to see how any substanA letter was filed in the records
else, are of no practical impor¬
St. Paul was able to realize hand- tial or consistent earning power of these hearings which puts the
tance. The fact is admitted by Dr.
some profits during the period of
can be developed.
official
seal
of
doom
on
the
In common

world

hoarding of gold is to create the

dence

In another

voice their vain

the

premium gold markets and privateloss of 58c

actual value in the dol¬

admits

now

producers. The bills
strenuously opposed by the

"experts"

the

value

mestic gold
were

75%

therefore the realistic the private demand for gold will
price of gold in the United States become negligible. In every coun¬
should now be $84 per ounce. It is
try the best way to reduce the1
interesting to note that Dr. Spahr demand for gold for private hoards

for do-

country

!•

state¬

present

lar; of 42c,

it is

provide

their

course

our

This admission of
leaves

only worth 42c. Truth is eternal.
In May, 1949 there was a hear¬
ing before the Senate Committee
on Banking and Currency on two
proposed

a
•

proof of the futility of their efforts.

since 1939."

entitled to be traded for the same

amount of gold today when

water

Their
managing director, Mr.
dollar/measured inIvar Rooth, made this admission
index number of
on September 28th:
orices, has fallen 58%
"The only way to get rid of

wholesale

of 100c, would not be

18 years ago

carrying

members.

April 24, the purchasing

terms

program,

dollar

power

their refusal to
face realities. It is obvious that a
their

throughout the world, but it

was

lost

"As of

weakness of

fatal

the

tion

said:

themselves

indict

thus

They
and

the

gold pro¬
your issue of June 21, 1951,
published excerpts from a let¬ duction, which went into privatehands at premium prices instead
ter written by Dr. Spahr to mem- •;
of the monetary stocks of Fund
bers
of
Congress, in which he -

logic they applied—were the same
they used 18 years ago. The reason
is obvious. Truth is eternal."

the

supporting

prices.

world

control of

the

goid

Treasury, this organization has
tried to support this $35 gold fic¬

.4 ;'-'The monetary problems they
of the future,

under

are

you

,•

v,;

Acting

markets

its

prevent

selling

hedged
about
with
practical change in money policy, ments are
but offering no sound leadership. various face-saving formulas but
the basic fact remains that they
to achieve such a program.

their

League

Standard

Gold

the

circular put out by

recent

public

fusing those earnest and thought¬ sieve.
Of
ful citizens who would support a |

of $35.

cannot

from

members

Treasury fiction as to the value
of the national gold reserve, con¬

formula

in gold on the same

rency

that

ment

Cult"

Gold

"$35

fellow-travelers,

redemption of all paper cur¬

the

year,

the

Thus

$35

cently been made through the In¬
ternational Monetary Fund state¬

higher and

the weakness of
price has just re¬

gold

realistic price on it.

dollar, at its present theo¬
retical relationship to gold, also

the

will put

and

gold

Spahr, chiefly advocating the re¬
turn to a fixed gold standard for

their

Call"

On "The $35 Gold

'■

Thursday, November 1, 1951

impractical formula which these
groups have been advocating.
A
public
admission
by
the

from page 12

Takes Issue With Mr. G. F. Banei

(1672)

in its

some

formerly

mining

ineligible.

op¬

But

three major components

corporate,

personal

—

income,; and

Volume 174

Number 5060

excise taxation—-the schedules

The Commercial and Financial Chronicle

are

little changed, aside from the im¬

position
each

category.

"When
the

additional

measure

duce

full

year,

expected to

million

from

corporate

and

47%,
respectively, in the
present law. The tax on 'excess'

profits continues at 30%."

Steel Common Stock
The

First Boston Corp. headed
investment banking group

which publicly offered on Oct. 30

issue

new

174,137 shares of

stock

common;

Corpk at

Sharon

price of $42

Steel

share.'

per

integrated producer, Sharon
Steel
Corp.- holds contracts
through 1965 for its present re¬
quirements of iron ore.
Besides
substantial
coal
properties and
coke

facilities,

corporation
two
steel

the

operates
plants in the Youngstown, Ohio,
with an annually rated ca¬
pacity of 1,441,400 net tons of
and

owns

area

steel

ingots, and maintains facili¬
ties in these and five other plants
for the production of a diversified
line of steel products.
) Since December,
1945,

poration

has

been

engaged

cor¬

has

increased

the

rated

annual

capacities of its plants from 148,to

709,620 net tons of iron
and from 510,000 to 1,441,400 net
tons of steel ingots.
The program
has also
substantially expanded
the

company's finishing facilities,
its raw material posi¬

improved

tion, and resulted in increased
integration, operating economies,
diversification

greater

and

Industry

the

financing

magazine of metalworking.
Approaching is the 15-day period,
through Nov. 16, during which time they must accept
January tonnage orders on a first-come first-served basis to the
extent of 10% of their output.

They anticipate far greater demand

Already the steelmakers

are

receipt of many telegrams,

telephone .calls and letters from

consumers outlining what tonnage
they would like to have, or seeking definite instructions as to
ordering procedure, this trade publication notes.
Some buyers
have actually sent in orders.
These are being returned.
Pro¬
ducers also are warning consumers that any wires or letters
repre¬
senting orders and arriving before Nov. 2 will be returned. Many
prospective buyers indicate they will be at mill sales headquarters
with orders in hand on the opening date of the
booking period.

To what extent these

best, the mills

be accommodated is anyone's guess.

users can

can care for

only

small percentage of the total

volume expected.

While pressure for steel is off somewhat from consumer dur¬
able goods

lines, over-all demand on the mills is unabated. Actu¬
ally, the defense take is still small compared with total output of
steel, and such requirements, expanding steadily, are not likely to
reach peak

until well into next

substantial number

able

other

with

ffor

future

corporate

capital

year,

of certified

this trade weekly adds.

Controlled Materials Plan tickets

remain unplaced.
The National Pro¬
duction Authority's recent regulation that third-quarter carry-over

unshipped

tonnage

Oct.

seem

allotments doesn't

in any

sizable cancella¬
further move to make openings in mill sched¬
fourth-quarter tickets, the National Production
Authority last week set Oct. 31 as the deadline for controlled
materials users to cancel or adjust their outstanding orders.for
In

steel, copper and aluminum where necessary to bring totals within
authorized
fourth-quarter alloments.
NPA
officials say
they
have evidence many manufacturers have not complied
order of Oct. 1 affecting third-quarter
carry-over, and

with their
that unless

prompt action is taken to comply with regulations the whole CMP
operation is endangered.
;
N

Except for revisions in the iron and steel scrap price schedule
by the Office of Price Stabilization, steel and related product
prices are unchanged.
The revised scrap schedule is in line with
recent recommendations of the

have

the

desired

results

trade, but whether the action will

stabilizing

the

market, eliminating
upgrading and stimulating the flow of material is uncertain.
that

American

the

Iron

operating

of steel

ever

1.6

point from

working capital.
Giving effect to this issue, the
will

company

have

outstanding

$10,000,000 in notes and 1,100,000
shares of
Total
were

net

sales

reported

months
net

common

stock.
of

for

Steel

and

rate

steel

Institute announced

companies

The

this week

having

93% of the
will be 104.5% of

the

July 31, 1951, and
for
the period was

to The Financial Chronicle)

with

John A.

Dawson

Co., 1 North La Salle Street, mem¬
bers

the

Midwest

week

the

United

States,

increase of

ago.

was

attained

in the

104% to turn

week

April

30,

out 2,079,000 tons.

operating rate is equivalent to 2,089,000 tons of

and

castings

2,057,000

month ago.

tons

for
a

the

week

entire
ago,

industry,

and

102.6%,

compared

Stock

Ex¬

change.

a new

low since Nov. 28; 1950,

figure

with $6.50
rise of 2.9%.
-

year ago, or, a

2,051,000

A year ago it stood at 102.4% of the old capacity

tons.

general trend of food prices at the wholesale level.

Wholesale

distributed by the electric light
and power industry for the week ended Oct. 27, 1951, was esti¬
mated at 7,233,928,000 kwh.,
according to the Edison Electric

The

record high and compared

ceding week; 671,410,000 kwh., or 10.2% above the total output for
the week ended Oct. 28, 1950, and 1,801,175,000 kwh. in excess of
the output reported for the corresponding period two years ago.
The increase in kilowatt output for the week ended Oct. 20, 1951,
over that for the like period two years ago was quoted in error
last week, to be 5,430,338,000 kwh. in the place of 1,719,120,000
kwh.. /'

v" :/;v:

With Mason, Moran

;

i:'.-../':/ J;:

•"

Lower

1950 figure of 289.86.

Grain futures at

Chicago worked generally higher last week.
A more active demand for all grains, coupled with fears con¬
cerning adequate supplies of high quality grain and the disturbed;
political situation abroad were factors in the upswing.
;;

Wheat led in trading activity with prices at

principal markets

going above the support level at mid-week.
Other factors

influencing wheat included unfavorable harvest¬

ing conditions in Canada-and prospects of short crops in, other
wheat-growing countries.
Corn futures were firm most of the
week while the cash market turned lower at the close.

■

influenced by expectations of heavy de¬
mand from livestock feeders and some apprehension over supplies
as a result of frost damage.
Oats were steady to firmer, reflecting
smaller offerings from Canada and a decline in domestic market
receipts. Volume of trading in grain futures on the Chicago Board
of Trade last week reached 274,218,000 bushels, as compared witb.
131,787,000 the previous week, and 202,869,000 in the same week
Early strength

was

last year.

;

Domestic cotton prices moved irregularly in a narrow range
with final quotations up slightly over a week ago.
Early strength
in the market

attributed to more active domestic and foreign

was

price-fixing and further agitation for

high 1952 loan rate.

Reported sales of the staple in the ten spot markets continued
to

expand, totaling 412,700 bales for the week, as against 357,100

the previous week and 315,400 a year ago.

Trade Volume Rises As Seasonal Buying Gets
Shoppers
ended

throughout

nation

the

spent >more

Under Way
period

the

Wednesday of last week than in the week before and.
slightly more than they did in the corresponding week of last
year.
Much of the buying was seasonal as cool weather continued
to prevail over many parts of the country, states Dun & Bradstreet,
Inc., in its summary of trade.
■
on

Retail food

week;

volume

bulked

it.

practically

somewhat

was

larger

a par

with that of the

than

year

ago,

Among the items in most popular demand were poultry, pork and.
Fresh

meats.

fruits and

vegetables continued to be ex¬
'

„

Many retailers noted a slackening in the demand for packaged,

groceries and such pantry staples as sugar and flour.
Household
their

such

nance

goods were in increased demand as shoppers
purchases of occasional furniture, lamps, bedding
hardware as garden tools and home mainte¬

domestic

items.

Television

sets

and

hunting equipment were also

bought in larger volume than a week earlier.

Automobile dealers
there was a

reported the demand for new cars steady, although

slight dip in used car purchases.
Total retail dollar volume for the nation in the

period ended

Wednesday was estimated to be from 1 to 5% above a year ago.
Regional estimates varied from last year's levels by these percen¬
on

tages:
New

;.'r'

Carloadings Gain in Latest Week

'■

commodity price index, compiled byDun & Bradstreet, Inc., moved irregularly during the past week,
closing at 304.18 on Oct. 23.
This was slightly lower than the
304.90 of a week ago, but a rise of 4.9% above the comparable-

and
new

wholesale

daily

boosted

Institute.
a

Commodity Price Indqx Turns Irregularly

.-■■vy-C."

.v-

tensively purchased.

The amount of electric energy

when it stood at $6.67. The
the corresponding date a

The index represents the sum total of the price per pound
foods in general use and its chief function is to show the

canned

Hits Record Level in Latest Week

The current total established

compares

of 31

with 7,164,469,000 kwh. produced in the week ended Aug. 18, 1951.
The current total was 84,470,000 kwh. above that of the pre¬

CHICAGO, 111.—George C. Deris

scheduled

Electric Output

seven

Joins John Dawson Staff

kers

102.9%,
tons

record

was

week's

ingots

made

industry

$98,905,000

$5,581,000, or $6.03 per share on
the
925,863
shares of common
stock then outstanding.

(SpeMal

output

This
steel

to be

entire

the

for

and amounted to 1,975,000

ended

income

when

and for increased

current

charged against fourth-quarter

have resulted

ules for unplaced

funds

expenditures

;

marked

for the fourth quarter still

steel-making capacity

will be avail¬

The wholesale food price index, compiled by Dun & Bradstreet, Inc., declined sharply the past week to stand at $6,69 on
Oct 23.
This was a drop of 1.2% from $6,77 the week before, and

can satisfy.
A considerable amount ^ of extra paper,
result, and some large mills say it may take 10 days
Even though available tonnage is sold
out on the
opening date of the booking period there is no way
open to the producers to choke off the additional flow of demand.

to process orders.

capacity for the week beginning Oct. 29, 1951, the largest amount

in connection with the

1939...

will

work

■

Wholesale Food Price Inde* Touches New Low for Year

the corporation to replenish funds
above program and

to 155 in the week
Dun & Bradstreet,
Inc., states. Casualties were about even with a year ago when 160
occurred, but they were off sharply from the 1949 total of 221 and.
down 52% from the prewar level of 300 in the similar week of

they

than

will be added to general funds of

expended

Commercial and industrial failures dipped
ended Oct. 25 from 157 in the preceding week,

Novs 2

The

from

Business Failures Edge Slightly Lower

Record

Steelmakers confront additional booking and scheduling diffi¬
culties in the weeks immediately ahead, states "Steel," the weekly

products.
Proceeds

Canadian production last week was placed at 4,107 cars and
2,010 trucks, against 4,345 dars and-2,118 truck? the week .before
and 6,806 cars and 1,826 trucks in the like week of 1950.

Scheduled to Achieve Highest Total
on

tion of orders.

the

major
program
of
acquisition,
improvement,
replacement
and
modernization of properties which

620

Steel Output

or more

Bankers Offer Sharon

The State oi Trade and

24,662 trucks last week and 154,270 cars.and 25,328 'trucks-In
comparable 1950 week.
»

and

•

pro¬

taxes, and $1,204 million from ex¬
cises, Corporation levies are es¬
tablished at 30% on the first $25,000 earned and 52% on remaining
earnings, as compared with 25

the

additional $2,280 million
individual
income
taxes,

$2,207

Continued from page 5

from

(1673)

loads

operative for

*>■

England

+1 to

4-5; East —1 to 4-3; South and South¬

+6; Midwest and Pacific Coast 0 to 4-4; and Northr
west —3 to -fl.
1

west

-f 2 to

•'

(Special to The Financial Chronicle)

Loading of

CHICAGO,

111. — Samuel F.
Schmidt is with Mason, Moran &
Co^, 135 South La Salle Street,
of

members

the

Midwest

Stock

Exchange.

totaled

886,648

freight for the week ended Oct. 20, 1951,
according to the Association of American

revenue

cars,

Railroads, representing an increase of 17,965 cars, or 2.1% above
the preceding week.
The week's total represented a decrease of 4,582 cars, or 0.5%
below the

corresponding week in 1950, but an increase of 297,560
50.5% above the comparable period of 1949, when loadings
reduced by major strikes in the coal and steel industries.

cars, or

With Rodman & Linn
1

were

CHICAGO, 111.— Robert A.
Levey, is now with Rodman &
Linn, 209 South La Salle Street,
Midwest

the

Stock

New

York

and

Exchanges.

With Robert G. Lewis
(Special to The Financial Chronicle)

Auto Output Rises

for Week But Sharply Under 1950 Level

Combined motor vehicle production in the United States and
Canada the

past week, according to "Ward's Automotive Reports,"
units, compared with the previous week's total
(revised) units, and 188,230 units in the like week

advanced to 121,338
of
of

120,810
1950,

Passenger car production last week in the United States was
slightly above the previous week, bat about 41% under the like
week of last year.

•

ROCKFORD, 111. — George I.
Fridly has become connected with
Robert G. Lewis Co.,
Rockford
Trust Building, members of the

For the United States, total output rose to an estimated 115,221
units from last week's revised total of 114,347 units.
In the like

Midwest Stock Exchange.

and

markets

future

week of last year

output totaled 179,598 units. Total output for the current week was made up of 90,293 cars
24,928 trucks built in-the-United States^'against 89,685 cars

was a

the

needs.

discernible quickening of activity in many
week

Total

whole-

buyers strove to fill their nearwholesale orders, both for civilian and

many

goods, remained moderately higher than a year ago.
Buyer attendance at many wholesale centers was perceptibly
larger than in the similar week last year.
r

military

the

(Special to The Financial Chronicle)

memebrs

There

Department store sales on a country-wide basis, as taken from
Federal Reserve Board's index for the week ended Oct. 20,

1951, increased 10% from the like period of last year. In the pre¬
ceding week an increase of 5% was registered above the like 1950
and an increase of 4% for the four weeks ended Oct. 20,

week
1951.

For the year

to date, department store sales

advance of 3%.

Retail

trade

registered an

New

above the 1950 period as a

last week was lifted about
result of strong store promotions.

York

7%»

According to Federal Reserve Board's index, department store
the weekly period ended Oct. 20, 1951j
advanced 5% above the like period of last year.
In the pre¬
sales in New York City for

ceding week no change was recorded

from the similar week of
20, 1951, from that of a
advanced 5% from the

1950, nor for the four weeks ended Oct.
year ago.
For the year to date volume
like period of last year.

(1674)

The Commercial and Financial Chronicle

Continued from page 3

purchase that

Man, the Technician

are

.—------February
-February

Baning

that

But let

over-

April

___-__-March

—February

Products

undervalued and

sale

_____________

Auto Trucks

that I consider the equivalent of
find securities for even a necessary minimum.

are

securities for

Radio and Television______March

Their ultimate objective

is the same—to

Automobile

And the Stock Market Outlook
curities.

High
Reached in

Airlines

Prudent

return to the prudent
and his investment problems,
us

Gold

February
-February
February

Mining

Liquors

—

man

However, their approach

chased

held.

Let

5aI

in normal

theaccumulative

and rails only in the fact that they
have not yet built up potentially
dangerous top patterns.
It may

above this figure, it would appear
be overvalued, and should be

sold

avoided

The

shown in the technica
lhe market ltseit.

selling

would first tell the prudent
that, because he is primarily

man

analyst,

% long-term investor he should

the

acting

Does

under
into

than the market?

worse

that

appear

the

accumulation

strong hands

passing
it

being

gradually liquidated by strong
counts. Is it

support,
level

near an area

approaching a
h®avy supply
^of

stock will be met.

problems
.The

ac-

of strong

where

stock

and

the

Such

market

security

analyst.

analyst

earnings and dividends.

the

are

studies
He tells

the longer term

£r

the

That

is much
™at i; much

gix

months.
man

jj.

However, each

bas

man

a new

pru-

term

nearer

are

buying

York

Stock

Dow-Jones

industrials

Number

D~*iQnd' ,™'°
S

fan

257,

........

rfSl

aver-

90.82.

the

industrial

has

average.

or nothing marketwise.
Many of
yet these issues are just a shade bein the low 'top quality, have excellent
diver- earnings and are selling at prices
same

not

highs
This

new

gence is a very

•

„

270

September

277

970

study

shows that

the group reached

reach

until-a

new

downside penetration of the Sep- advance.
ternber!ow-of 269, strongly sugyt0S|

that

gests

the

advance

from

the

•

Favorable Buys
i
f • ■;
any event issues ot this type
appear to be the most favorable
,

rr\

This

they will wait

high general market decline has been
earlier this month, and last week's-completed
before starting their

165

977

...

Ortnhpr

;

ehTT,¥To
inabirityP 7the whether
^

industrials-to

August::::::

June low

54%

their highs

of 240

leled and

three months of the
year
arid 34% in the last three months.

are many better quality secondary
issues that have very strong longterm patterns and have done little

strong cautionary t° yield 6% to 9% or more,. -Issues
signal under the Dow Theory.
of this type appear undervalued
and in a position to move ahead,
j
~Two Corrective Actions
The $64 question is whether
th'ey
<phe market had two sharp cor- wil1 do so immediately while the
J rections back to the 240 level after erstwhile
leaders are continuing
reaching the February and May to fluctuate in a. wide
trading
highs of 256 and 267. The next range u» the process of building up
parried
to
the
Seotember their distributional top patterns or

tne first

In contrast to the groups that
be topping out, there

appear, to

for

month.

f„iv

is completed.

their

confirmed

Exchange

take further time and more backing and filling in a trading range
before the distributional pattern

high

the

-nu
■

steels

reached

month

their highs for the
year,
It also lists the
approximate

March
ividiLii

outlook

what the investors

fun(j that js entire-

investors should buy or for the
market first,
market analyst studies
'
supply and demand., He tells you
"Technical" Outlook Dark
The

1,464 issues listed

The

high in February.
The rail
age reached its high in the

Fehruarv

in cash at the moment, ancj he

the

shows

reached

particular April

our

High

must decide whether to buy now
or jater>
Therefore, we will procee(j jn
chronological order and
discuss

New

20.

Tannarv

different problem.

possible that

Oct.

what month

each

important to

you what

sell.

Saturday,

vears

mor<^mport;ant to
Qver the next threegt0

ing tQ do
dent

several

points.

nished by the
following list which
is tabulated as of the close of

the

technical

other hand, observes the price action of the security.
Is it

better

action o.

Thursday, November 1, 1951

technical fashion, coincided
with
their
long-term
consolidating phase from Octo- technical upside objectives. Since
ber to December between 220 and that
time, they have backed and
234 was followed
by an upside filled and have built up potentialpenetration
and
the
market ly
dangerous top patterns.
The
rgached its February high of 256. leaders of the.
July-September upFrom that point warnjng signs of swing were the
chemicals, oils and
a
gradually weakening technical drugs. In most cases these groups
pattern began to appear. Gradu- have also reached their long-term
ally> individual issues began to objective at recent highs.
Their
reach their iong-term objectives patterns differ, from the
motors
vance

outlined

Retail Chains

___—-—--February areas formed between
1946 and
February 1949
suppose that he has already Steel.
General Motors reached its
to this problem is different.
consulted the economist and the textile—
.——February
upside objective over a year ago.
The security analyst attempts to security analyst. He is now going Tobacco
-—February Its
objective was 50-55. The high
Meat Packing
set a value for a
..—January was
security based on to check their opinions against the
54% on Qct. 5, 1950 when
its present and future
earnings, opinion of a broad cross section of ?uaUru0a.,LEquipment
—
ehtyraunaJ was 232. It has not
average
dividends and outlook. If the stock investors—large and small—pub¬ Shipbuilding
January been able to reach a new
high
Soft Drinksis
——January sinCe then
selling
below his evaluated he and institutional
domestic and
despite the fact that the
Further confirmation of the seprice, it would appear to be un- foreign —wise and foolish.
The
industrial average advanced 45
dervalued and
should be pur- opinion of these groups should be lectivity of the advance is furvalued.

that

has

been

now..in

aie

t an intermediate

„

com-

at 'he moment. In th^evont-

tehntdowac

ward move
•
;;
of a continued rise m the'market,must tell the prudent man
'
^ ils'<
"they, should show above - average:
frankly that my technical work is This is
despite the fact that FebObviously neither method is an not
^1Sj downside
very encouraging at the moexact science.
ruary high ip the Dow-Jones in- dicatedL a decline to
The accuracy of
market
mentt
as long ago as
drop,'they-sHduld^€^ine>
September, dustrial average was 256, the
forecasts by either method is m
May area- That would be all I would less than the
averages and bd iri a I
1948, I hazarded the opinion that high was
direct ratio to the
267, and the September
competency of the next
°", h.e *irst
position to lead the next advance
upward phase of the mar- high was
the forecaster.
277.; Another warning
One of the strong
j?6,
oeX J pac5f
because t he y already
wou}d carry from the 160 level
formed j
signal is the reduced volume of M°nday was ^b9.4o. it a tuii mpomts of the technical approach is
jn the Dow-Jones industrial averstrong accumulation bases,
the fact that it attempts to take
trading while the market aver- termediate correction is in the oft*
Issues of this type, in
age to about 240-260. The advance
my opin- |
ages
were
into consideration the
reaching new highs. lng> ™ mna?eic''
very impor- from the June 1949
ion» offer excellent buying opporlow of about F r o m
mid December,
tant factor of public
1950— "Om^ the 260-255 area to further; tunities in this uncertain
psychology. i60 to the
market. I
September 1951 high of when the
The investing and speculating
dynamic phase of the broaden the-tops m chemicals oils
pub- 277 now totals 117
Many of them are eligible for trust
points or 73%. 27
mohth advance
lie (and institutions,
started^ to and other recent leaders that nave fund
too) can often it has lasted 27 months
investment, even though they :
and shows
mid-January, the volume aver- only, relatively minor tops at the are not in the selective
go to wild extremes of optimism
definite signs of loss of momenone-hun- !
aged over 3,300,000 shares.
or pessimism.
The moment.
Quite often these turn.
dred or so issues that appear in
In my
|
opinion, the market peak volume was
4,490,000 shares.
The potential long-term'pattern most institutional
changes in mood are not timed to has been
portfolios. As a i
slowly building a distri- In' the
whole
fundamental changes. In many in- butional
July-September is more serious than this, how- prudent man, I Jieliev.e
you could 1
pattern since February, Hse, there were
stances the market will anticipate From
relatively few ever. The fact that most of the .present a .very sound case for this
outward
j
appearances,
the days when the volume was over leaders have
a
reached their iipside type, of 'issue as
development and discount it market has given the
opposed to soriie 1
impression two million shares.
>
objectives—coupled with the ex- of the "growth issues'- that have
long before it occurs. Other times of strength.
Yet, if we examine
To further illustrate the selecthe market will refuse to
tremely unfavorable internal mar j; been; so popular
recog- the internal action of
receritly. -Onthe ;
tjie mafket tive action of the market, it is in- ket
nize a fundamental
action—points ;to the proba-< ;t6asis jof. statistical value. many-of
change until itself, we find that Jt has made
;
teresting to note the number of bility that we are. in'the process- the
long after it has happened. Prices little upside progress
VgrowtfrYissues^ were grossly
despite the advances and declines and new of,
will often reach the ultimate level fact
forming- a .distributional i top- overpriced at recent highg.: The •«
that the industrial
average highs and lows
during the weeks and that the
indicated by statistical
broa^280-260 range overpricing of thes6 issues^was i
values, but reached a new high in September, ih which the
February ^nd.-: Sep- is a seUingcared^jtf^^s"?the 160- based upon the credo that the
technical factors quite often
delay The September high was largely tember
highs were reacjiie^v^i- ^ 17ft rangev was cab-buying.1 area iir growth factors
or advance the attainment
of these due to strength in
jmthese companies j
relatively few
Feb.5^^sept 17 1947-1949,: Itlis possiblevthat t;h$-warranted an extra premium
levels.
of the 30 stocks in the

selling

...

average.

nician

primarily

a market techit is possible that I am

slightly

**ecen* strength

in some

Dow-Jones Indust.

256

277.'

682

76Q *

370

^477 "

New Highs

'368

181

New Lows

Advances

well

economic

re-

Divergent Action

and
security analysis.
I
further believe that each
approach
should be studied

separately and
each approach
weighed against the
before

decision

final

investment

-v........

Declines

management

other

aver-

However, I
m(?reL1 sPecuiatlve issues has
thorough job of in- cov.ercd the fact that the great
must
in- maJority of the 1,400 listed issues
study of technical market were getting nowhere.

vestment

action

same is true of similar

prejudiced.

believe that
elude

The

This

technical

definite

data

entire

roughly 240- above their statistical value. As
j
a result, some of these
issues,/at :
recent highs, were selling at prices

finally turn out,to be
distributional top. If such is the
case, the. market would be in a
a

21.

indicates

between

area

-and 277 may

position

suffer

to yield about 2% and at a ^ratio
considerable **! 15-to.20 times earnings or
more,

declinejJ^The- ^downside amplica- As

analyst expressed

one

it, that

fi°ns of such a pattern are not en- is not discounting growth, but
th^ly clear at thev moment be- eternity. It smacks somewhat of
advancing issues, despite^the fact ^ause 4he formation is not yet the 1929 psychology when visions
recently that the average in
Septembfcr^^Mtete. However, on the basis of growth obscured basic statistical
slowing

mentum with

down

mo-

smaller number of'

While the market has
reached new high territory, it is

interesting to note the divergent
action of individual
groups.
One

FebruaW^fcfhe^ present

20 points above the

was

high of 256.
In

potential

possible

the

early stages of an
vance, the market moves in

decline

dicated.

Technical
and cancel

top,

230-225

action

values. The fact that

in-

issues

have

most of these

reached

over-

ma.y

reached their long-term technical

change
the
present
bearish potential.
However, the
others will eliminate a
increasing number of' fact that the potential exists ingreat many prior to July 1. The list follows:
issues reach new
of these errors.
high territory dicates the need for extreme cau7'V.;:" v;
High
on
gradually increasing volume, tion in market commitments. Re'V,v. ■'
Reached in
;
Minor reactions hold above
The Technical Tools
pre- member,, also,
that it- may take
Aircraft Mfrs
October vious
support points and result in considerably \ more
What are the tools of a
time
before
market Building
__-October
technician?
consolidating phases prior to furI will not bore
pattern is completed.
The
you
Farm Machinery
October ther advance. This
now by
was
the pat- 1946
top was formed between
telling you of the various Gas

objectives also makes them unattractive at recent levels. I am not
arguing about the investment

made.

All

of
mistakes, but 41

proaches will make
a

checking

three

one

ap-

against

the

series of group charts has
group classifications.
Of these
41 groups, 20 reached their highs
my

Some

son.

ward but

groups

may

aduni-

back-

•

qualities of these issues nor
the potential growth factors.

October

tern of the market

.___

October

June, 1950.

Smelting

October

___

office.

Suffice

use

say

that

just the physical labor of
keeping
these graphs requires the full
time
The study and interpretation of this basic data requires a lot more additional time.
are

single

not based

indicator.

graph
others

Mining
Movies

and

Each

checked

before

chart

against

In my
opinion,
amount of data is

one
or

many

conclusion

reached.

this vast

necessary to do

field

institutional
that
have

caused

news

reaction

but

October

vulnerable at the time, and if the
Korean invasion had not
occurred,

Rubber
Tin Containers

October

Utility __i

October
Business Machines
___-September

Communications
Electrical

--September

Equipment--September

Finance Companies—^September
Glass

Container

September

Investment Companies-September

Oil

or investment
library of graphs
t

it most

dent

man

justified

correct

-August
May

________—-May

its

technical

weakened
The

'•

technical

low

because
had

195

very

the

in July, 1950,
few individual

reached

objectives.
other

their

addition,

upside

reasoning, a

prime

mid-July.
T

1950 and
tember

follow
motor

Y.,?

;

highs

new

this

year,

same

exceilSt^urctoses

rather

1950

reached

cases
"•
"4

their
most

their" tops

In both
i"%'

and

'•

appeal

the

investor at that time. Now

tney have advanced sharply and
have

the

technical

reached

^eh

highs
of

particular

not

their

obiectives
s

long-term
thev

attrrcUve

aooeax

the

bett

m^ch 1^ss attractive. At tne be$t,

the

in Feb-

these
_

Dedod

^at everybody wants them-after

and Sepof the

Most

reached

had

average

October

did

period vChm vfhiv
w hen they
were forming base patterns. They

some

groups

pattern.

stocks

October

steels

Februaryf May

important

■>

12.

issues

and

groups

successive

It continued its ad-.ruary.
%
m\~}
1
'

;

vidual

became

technical indicators

Oa the

mvestment. iS-

1946-1949 base was 33 months in sue may become, a speculation if
fornung^/0:,;^,-.r,v.V7..- :
;
the price is too high. Fionva tech-

various

very sharply oversold ,at that time,
The market turned upward
again

issue may be an investment if the

important than the market averages. For exI strongly
ample, while the averages reached

Korean

-■

most

reason

why
purchasing stocks

\
>

technically

advised

issues

August

was

pru-

paying

such a
hjgh price for these excellent qualities. Even a speculative;
price is low enough.

y A much clearer picture of the
likely would have underf general market
pattern is given
long consolidating phase to one observes the aetion of
indi-

condition.

was

September

market

January and September. Accumulation < or base patterns take, an
cven( longer period of time.
The

if^:<^-iM6-i-949^

gone a

September

Automobile Equipment
Cement

the

September

sharp

thl

October

athorough job of market analysis. Paper
That is possibly
why there are so-Sugar
few
market
technicians.
I
can
Drugs
tjiinkmf very few organizations in Food Chains

i-ei

^he suddenness

of two men.

The opinions

Machinery

to Korea

'•

Iam

just wondering whether the

__________

types of technical data

about

highs

lengthy period of consolidation

appears
"

needed until earnings and
-

Vdlume 174

Number 5060

The Commercial and Financial Chronicle

(1675)
'
■

dividends

begin to discount'

pres-

ent price levels.

■

Continued from

paqe

•

a
new
super "whatzit," there
is tual inforrttation about
your com¬
probably only minor news inter¬ pany, whether it is
large or small.
est. But if, through research and All
of you
knOwjthaf the'students
technological
development,
^oul of today are the citizens of' tomor¬
develop a completely nCW gadget', row. As such,
they should have
which will add something new to the
facts
.*
and I mean facts
American
living, that
becomes
about business and industry.

The Longer-Term Outlook

Basis of

Sbrnuch for the near-term out-"
for the market.
How about

look

the longer' term outlook of thei
ne.xt several years? There the pic¬
ture?
;is much rribre cheerful. As I
predicted in 1948, I still believe understanding of United States
that the market is in a
long-term Steel.
/ ;
upward cycle in prices that1 will
In this
booklet, attention was

Relations

the

1956-1§6Q periojfc
advanc® started

•

1942

and

similar

eaHu

second

from

l946

are

the decline
low

TVHooa

public

have

some

decline

predicted

"ThfK

240-260 followed

was

start

1952

largely

somewhere

way

was

today.
hear

Such

early 1954 (timing is
guesswork).
It willf be

pattern indicates that the
two should present

opportunity to purchase

Iti^S

sharp
next

low

rise

level

prior to

anticipated

several

iotf every

we operate; or

those

are

public
tance

relations

and

what

reached.

year "or two will be

period

—

and

I could
of

name

public

Compariy

the

impor-

winds

the

attack

big

one

reporter who

company

re¬

announces

when
new

when

accident

occurred

its

premises.
Often
of

the

advertising

munities and
formed
(^

newspaper

message must be

be-

company

can

used

yourself,

underwriting group which
30 : offered

80,000

our own

"Is

plant

the

'fjjHy. and accurately of
-

the

day when

radio

news

doodah-Sanfordf°in<k^
prfce™aTs5150bper

share
snare

nre7eTence

now

of pub-

financing';^

from

private place53,000,000 of 3%% sinking fund debentures, will provide
Goodall-Sanford, Inc with Jadditional working capital, either di-

through

reduction

4% pre-

aim

primarily

preference stock with

.$50

par value

stock.

1951

amounted

94 in "the

preceding

Net

year.

ncOrtie amounted to $2,387,476 for
u

161:1

he,1951

...

fiscal^year, compared to

$440,462 for 1950.

produc-

you

in'knowing

producing vto

are

aid

sue-

Second, therd are policies on
employment, prices and wages.
These things affect George as an

products.

your

be: he
a

for

youf

other

besides

one,

that the policies
company be sound, the public

also mus* know about those poli-

-.cies—must have,ithera-auffidenUy

Naturally, our educational insti¬
tutions do not seek, nor can
they
marily for advertising

purposes—

your

attend

Business-In¬

chairman

the

board

are

reporting. This is particularly true as it concerns officials
is

meaningless to

The
often

name

cold

and

great portion" of

reads

and

books

attends

meetings.
Take

and

magazines,

situated

mount

the

rostrum

out

dropping
hand, what do

it!

you

the

with¬

the

other

do when your
letter from a

receives

women's

club,

young

church

group

or some

ganization, asking for

people's

similar
a

or¬

speaker.

beg off? Undoubtedly, in
plant town, wherever it may
there is a local radio station

you

be,
and
to

some

forum

officials

its

time

programs.
ever

these?
I

devoted

Have

your

participated

are; many

about

the

people

who

known

make

the"" organization. Yes, officials,
employees and their activities are
news.

about

believe

that

there

groups eager to hear
your business, and' that
a

certain* nuihber of public
appear¬
ances by officials of your
Company
will prove

extremely rewarding
cheating better understanding
your

„

explained. For besides those whom

Fourth, one might mention research and technical development.

j have mentioned, there are other

If, for

problems.

segments of the public whose opin-

ing

years, you

have been mak-

"whatzit" and

you announce

are

not

to the mountain, it is
bringthe mountain' to
This

find

can

done

that well-produced edu¬
pictures are in constant

cational
demand.

Our

"Steel—Man's

technicolor

Servant,"

after year

year

by teachers of

It is the

basic industry

product-

film,
used;

wide variety of subjects.

without

advertising and, in fact)

with little mention of the
corpora¬
tion

name

except

the

begin¬

ning and

end.

service to

teachers, and from

standpoint
relations

vehicle

better

renders

valuable

because

real
my

public
it

cre¬

understanding of bui*

activities, working conditions, and
service of the corporation to

the

the nation.
I

seem

now

have

come' full

Early in these remarks I
about; bringing people to
the plant.
Now, I arm suggesting
that, via motion pictures, we' bring
talked

the plant to the people.

Having closed the circle, let

activities

Schools, tob,

and

your

and

public

looking for fac¬

The objective
relations program

mine

is, of course, to obtain'
public opinion for our
organizations. In doing so, we ren¬
der an important service" to all
American business.

favorable

American

industry,
operatingfree, competitive system
enterprise, has made* possible

under
of

for the American people the
est material progress eVer

great-;

attained'

If the impbrtance

this

achievement, under our
system
of' government,
is*

free

known and
sure'

nevef

the

system of
other

Understood, then I ami
people will

American

change it for
one

some

untried

which has failed in

in the past.
It is
mine'to proihote this;

countries

your job and

understanding, and the very basis
understanding-must be"
established in your communities..

of such an

For if the job is done well,
we can

are

add just one point.
of

by any nation.

would

be the last to suggest
that you executives drop all Other
activities and take the
stump for
a
whirlwind', continous- speaking
But

schools

your

the medium of motion
pictured.'In United States Steel,

your

and

come

well

drop

even

company

tour.

when

near

circle.

hat and sometimes

plant visits, but

some

operations. In
that case, where Mohammed can¬

kinds ' of

many

•

the

the public. It becomes meaningful
warm

course,

newspapers; radio ates ^
forming opinions.

He'

lathe operator at the plant,

corporation
is

It is not enough

relatiohs

company with radio and television
newscasters.

of your company.

possible

business—they will

are

publicizing or ad- employer or as a citizen of a plant
company; Rather,-it community, and they affect him
conducting the busi- as a ebhsumer who may purchase

of the function.

ing June., 30,

$62,530,000. compared to $41,421,-

news

and the most important,' phase of public relations,
There is, however: another facet

Net sales for the fiscal
year end¬

best

there's

worth

That

;

can

emphasis

industry plays

use, material that is prepared1 pri¬

stantly being raised, and toda/a" story of

media

Cess.

share, and 555,937 shares

common

way

never

greater

through

great many Americans get bulk of
their news from these media. Time
is well spent in'
working out the

and television for information that
will aid him in

pUbijc js essential to business

value of

par

is not and

one

industry
for their

doing

the American economy.

selling

category

nah^product Pm6c
SpW^^-eftnp-nB you

it is

what

to help them is worth while.
Very often, after teachers are

pros-

Standards of news coverage in
both television and radio are con¬

George' Jackson looks

tion of the customer, the employee,
the stockholder and the general

share,'80,000 shares of 6%

with

check-list

a!>l? to tura out.

• •

|Cy
amPle of enlightened self-interest;
ix [s a recognition that considera-

P?ItinSnla of 6 /4%
call?/n*Tf^^LCilnsist
$3,000,000
deb^itures
due J9ob; 37,800 shares Of
stock

Third, there is news of people.
business policy:"still make news, and inprovides an Outsta;hd^^^^ajj^^^
activities of an employee,

viewers.

every

com-

$100.

•

ness-^a consideration of the pubijc Interest; in the formulation of

ferred

recognition..

even

Mohammed.

grams

if the financial

vertising the
is

First,

what

generally accepted
that- the public relations

function

simpiy

Si°£♦uanJji l°an?' Updh-completioh op the
financing the

j think

today

the proposed

menf of

television

Jackson is interested

not

making

Hicks.

social, fraternal and
handling defenseivlf.-you are in a consumer
professional clubs,- for example,
goods line, he also would like
Many and articulate are the critics
of publierty.hrda^tisi«g».2l^Pow .'how much of your or- of American

and

port

together with funds to be received

and

tion. Particularly in this period

can win that

preference stock
stock;.

Net proceeds from the

arp

and

vital role that

invited

Although most sponsored

might make

^is

tha ,f!rst requisite

>ieliverv nromises

DOOr-

rshares1 of rommo^

each

One

manaeem^«hea produds*^ a
SThk t"ts lervice

is pi iced at
is
$51.50 per share
share: The
is.
preference stock is convertible'Ofi 'r
or before Nov%
1,1961 into sharer

,fact

indicates

done

the

com¬

hot talking

listeners

Again, all of these opinions point

manu-

devoted by

competitor's.;
hand, teachers of
geography, history, social sciences,
and many kindred
subjects are
seeking factual information. Any¬
thing that we as businessmen can

reporter, George

™erits^Iy?Ui; P™du.ct".and to as*

own

clearly
has

As you' know, they are delivered
by a man who is known primarily' not

com¬

The*, proper place to explain the

banker who does busi-

company organization and his
experience with its policies.

Oct.

been

factual information which

women

product is than

Sages on our program, "ThC
Theatre Guild on the Air." Wc
have tried to keep them newsy

Pre.ss

public to try it, is _in the paid
advertising columns. What I am
extent, bases'^ tatking about.are .the events that
part of his opinion on his Own
Jre news, that will be interesting
dealings with some member of the to newspaper reade« and
i-adjo

Urtf on' Securities
Corp. and W. C.
Langliey & Coj jointly headed an

have

young' men and

Gone

nationally, being in¬

/our#?'||!iy'''

might be a supplier who sells it
material or.services. Each of
these,
to a greater or lesser

■■

S^tf drdPreferred Slk,

effort

high schools

our

Considerable" time

But on the other

interesting to the

reader.

important .,news developments in

com--:

mis¬

material that proves to your own
satisfaction how much better your

columns

•

BaitlfPr? Mfcr fiftflffeH
DdfMCTS UTlvt iXuOUclll > riess With the organization;

long

ana

place'

expect
enthuse

might

■**■)■<I*******W;vTV*• O'..might be

has

area

other companies ih
available to these
us

working

}icity in the sense th^t the word goods, many Other companies be¬
exceHent buyihg
ppp^.rtuni- be a stockholder who would look is.tod often used- Neither am I sides U. S:. Steel are using- radib'
ties for the wise and
and televisiOii shows for
prudent in- upon the company as a
public
good or thinking of news coverage as sales
vestor.
"
bad investment for his'
moneys he promotion,, or product "puffery." relations'messages.
,

story.

the

•

both in

press,

pany on the hasis~of personal iiexV^t.! am
perience.
George Jackson

some

exists

colleges.

and

distinguished from its products
story. Here, again, keep in mind!
however, the precept that the

may

Ask

types
-

and

re¬

safety record,' if that same com¬
pany has been secretive or evasive

world-wide

Take first the question of
relations.

judge

news

question

today attack that

people,

munication .

several other

and

the

Steel

the

iust as violently attack another pany could buy a page iri a news¬
dustry-Education day in a plant,
because it has cut prices too low. paper, run a picture of the founder a
suggestion will be made that at
Yes» George Jackson hears a lot complete with chin-whiskers, and
a future date the
call
procedure be re¬
it
public relations. Todayj
of thillgs about business which
versed, and the businessmen visit
much public relations
advertising
are only half true or which are
the schools.
is as interesting, newsy and read-J
This, I think,is a
putright lies. The question that
healthy development. As. citizens
should occur to us at this point is able as the news" stories in adjoin-:
and
fathers, we businessmen
"what does he near from us abo^t ing columns.
We iri United States' Steel have should know more about our
?ur company?
Are we, too, seizschool systems.
used the samo approach in
plan-*ng every opportunity, and using
Schools in the community often
ning the radio commercial mes<®very possible means of comare interested

the

which

in his opinion-it has kept
prices too high, and the next day

Basis of.
Personal Experience

offer

from

possible medium

every

the

may

Company Judged

interesting

that will

one

they
cases of misun-

cause

session;^jan 'pubitc

The, next

things

same

each

relations.

which

the

what your company does when it
receives requests for information

not

individual in the.
relations team.
In U. S

years;

statements
That

good effect to help tell the public
relations story of a company, as

can

same communities.

furnished

States

aware

understanding about big business

probably in the
important than

company, saying that it is
big enough to do its job in
defense of the United States. He

repre-

tanee of itnpressions made
by

purchase
levels now. Others
may have considefable
decline
ahead
before
low

use

with

Whether the public
gendral fliarket reaches its low in Steel's
Purchasing Department, for
late 1952 or early 1954 is nof too
example, the buyers' training pro*imOOf.tant.
Many individual se- gram includes a

their

the

simply

are

mess

I don't think that I need to labor
the point, except to
suggest that
we
anfkeep 'in mind the impor-

the

curities will reach their, lows before
either of these two
dates.
Some may be at or near

Some

leases.

been

and

over

and

information

form

lot

his in their attacks. The attacks vary,
the too, froth- time" to time, shifting

People t h-i^ hjf--the men and
w°men who represent U. S. Steel

the

over

training programs fdf all departments should contain reference to

secur-

And

are

run

important

relations

ample^ one cannot
one anoth?li*
als0 made V<* The detractors of American bus- porter or editor to

to act and speak

and its correspondents.

year; or

the

another

press

country.
derstanding, others are much more
Frankness in press relations is
At this
time, United States Steel
sinisterSome. intentionally or just as necessary when the news
has under consideration an accel¬
""wittingly, follow the party line may not be entirely to your liking
erated
educational program for
-the kind of things that Joe as when the news is
something high schools and
colleges that will
Stalin would like Americans- to of which you are proud. For ex¬

considerably above the 192£ high
company's representatives
sales
386.
and otherwise, its
phone operators,

above

long

of people telling them things about
your
company, and all business

there

me,

U'-.T

sented,? depehds largely

between

the most dynamic
phase with over
speculation and heavy public participation. The pattern is not complete as regards the ultimate price
objective but I believe it will be

read about the

These people judge your
by what you tell them

it from

phase of

as thou§h the g°od ^me of U. S. news events. The same man who
Steel dePended upon him alone, a year or so ago said a company
We long, have felt that our was too big and was menacing the
standinS im ,|he fhommunities in economic freedom of the Ameri-

phase'"which

late

i G tnd*You

corporation

200-180. The 240-260*

slightly too low.
Events may prove that 200-180 is
also ; too low.)
The fifth

should

emP1?yde of U/ S. Steel to do
par* in creating goodwill for

unpre-

determined level. (In 1948 I predieted that the third nha<?p whnld

culminate

ona

clear that the best

Thf> fourth
to

take

relations

U ♦ Or DtCC-W.

tirViinVi

what

upon

company
and by what others tell them.

member of
managerial team
was such a representative- There
d38 a further- reminder that what
he sa'd °r did could have a direct
beanng on how the public regards

- advance "A

company.

em->

representatives,
and emphasized the. fact that each

phase which

shown

decline

maybe

third

fronv 160 to 277

will* be

was

fhirrl

the

already

h.Vh

1949

fhp

completed
has

the

now

7
7^

1446

phase

irVlrtlpfpH

usually

Wqc

thp

relatively few

relations

1929.

cycles

the

ployees who comprise the public
organization.
However,
we pointed out that U. S. Steel,
in a reai sense, had thousands of

somewhat

?^,ases7~

nhacp

1942

The

long-term
f*v®

to^the World War I ad-

,cyC!

Sue

will

drawn to

entirely

they have heard

cohtihue

based

are

United

There

ions

■

.v.

news.

ens

then

hope, in the words of Dick¬

to "come all

right in the end.n

The Commercial and Financial
32

dustry than in

lion B/D beginning in
of

September.

the month

the

indication is
tanker rates for the
of oil and oil products

high

movement

would

This

imply

of certain oil prod¬
ucts in the coming months.

result of the trends demon¬

strated by the industry, it is be¬
the settlement of the lieved by some authorities that
Iranian dispute could diminish the domestic oil production for 1955
demand now being made by West¬ should average between 7,114,000
ern
Europe for domestic ; crude barrels daily and 8,053,000 barrels
and refined products.
However, daily. Compared to daily average
this would represent only a very
production in 1950, this amounts
minor proportion of the total de¬ to an increase of between 16.4%
Of course,

mand

Also,

domestic

for

the

end

Korea could

oil

products.

hostilities

cause

and 31%.

the

than

rest

the

general military demand

.should

causing

factor

supply of oil products, this

.short

is hardly the case according to the
American Petroleum Insti tute.

that, while

This group estimates

military demand is double that of
a year ago, it is only 5% of total
demand.
^
'
\
A

great many people outside of
the industry have been forecast¬
ing gloomy consequences of a
.substantial build-up of crude oil
and product stocks.
While it is
true that oil stocks have increased
•about

10.5%

last

over

year,

this

build-up is normal for the current

production-demand pattern as ex¬

plained later.
For the

most part the demand
petroleum products will be
strong and the industry should be
capable of meeting this demand.

tor

because of

transportation difficul¬
weather condi¬

tions. If by chance demand should

♦drop, it could be stimulated by a

-strong marketing program. Up to
this time the oil industry has not
Tfound such

necessary.

program

United States tariff barriers, how¬

there is every 'reason to be¬
lieve that Canada will soon as¬
sume an important position as
a
ever,

Demand Outside of U. S. p

The

largest increase in the con¬
sumption of oil products outside
contributor of oil.
,

of the United States will

occur

the

tremendous

of
and

rebuilding

This

oil.

being

gram

longer period of time. Fig¬

revealing extent of participa¬

ures

tion

by American companies are
unavailable but expert opinion

current large

over

evidenced by the
scale expansion pro¬
carried out in this

again hovers around 90%, In 1950,
South America produced 640 mil¬
lion barrels of oil, 16.0% of the

area.

world's

amount,
million
barrels which represented 85% of

seems

to be tremendous, can supply keep

According to many of the
published figures on the supply of
oil, the answer to this question
pace?

would

appear

to be

barrels

1950

barrels. During
proven

from

rels to
an

this

reserves

creased

has

Despite
on

the

in¬

bar¬
.

5,679,000,000 bar¬
vast

taps

already
deposits, the

oil

reserves

declining, are actually on the
Although oil has become

of this

nation, instead

rise!

difficult

been
cal
of

find,

there

has

decided increase of techni¬

know-how in
oil.

The

Dakota

the

current

play is

spite

sections

those

are

exploration

Montana-

case

in point.

much

still

attitude

accomplished.

will

capital

eign

foreign

govern¬

the

strong

f "■

6.1

■

"•

;.'V>

barrels

million

barrels.

oil

fields

portance

But

the

cloudy

area

has resulted in

simism
to

that

minimize

the

of tremendous im¬

the

supply

picture.

outlook

many

its

daily.

Yet in spite of this

oil

should

that

this

While

troubled

segment

would

markets

different

another,

have

realize any profits. The more

of its

oil that

own

company can

in supply, shows
many
factors
the loss of con¬

With the continuation of a strong

the

one

caused

demand for oil products,

tained.

constant supply.

how

matter

•>

controls

price

integral

favorable

supply

sus¬

;

With

Price Structure

refinery
be;

should

margins

profit

the inability to assure

part

now

economy,

our

price advances for crude and re¬
fined oil will be more difficult to

the

and

realize.; However,

that

National

Committee

oil

these
In

done

the

and

the

based

enough

earning

Consequently,
difficult

movements of
<■

rate
In

sub¬

stated that
oil in the

totaled

6.7

million

1951
by 820,000 barrels

daily1 the average production
5.9 million barrels

daily th&t same

most par¬

the

satisfy

•v

seen

gredients for a successful

future:

(1) demand for oil products is at

tended to

all

time

peak with every in¬
growth; (2)

dication of continued

potentials

companies

individual

for

profit

that the oil
industry has the three major in¬

undeterminable.

and

erratic

industry,

oil

Conclusion

Thus,

of crude oil, prices

case

being

ticular investor.

qualifications.
the

now

business

the

structure

margins should still be favorable

industry

prior to World War II

the availability of crude

exceeded

volume

price structure of
meets both of

The present

the

Oil and Gas Avail¬

ability (July 24, 1951)

and

price

yet

ers.

Petroleum Council's

present

low enough to assure a
favorable acceptance by consum¬

daily in January of

complete write-off

assuring

sumers was

sufficient supply is

were

meet this

price
oil stocks fluctuated

forecast -and

available to

demand; (3) the indus¬

try's price structure is sound.

Leaving out the
war
years,
when
prices were
With Gear hart Kinnard
fixed by the O.P.A.
at $1.11 a
(Special to The Financial Chronicle)
barrel, Mid-Continent crude prices
MIAMI, Fla.—Kingsley Barham
climbed to a high of $2.62 a barrel
in October of 1948.
Since that III has become associatedwith
time crude oil has maintained an Gearhart, Kinnard & Otis, IriCi of
New York City. He was formerly
average
price of between $2.40

large degree.

and

the

barrel depending upon
gravity.
"
"
k
$2 65

with Oakes & Co.

The Ability

barrels

United States oil industry, it would

that

which

products

different demand factors. In Cali¬

important

measures.

should be
of

seen

conservation,

ST.

However,

that the mechanism

which

is prora¬

Kidder,

(Special to The Financial

these

»Joins A.

of Crude Prices
*

to Hold

the price
making structure are the conser¬
vation practices now being enact¬
ed by a majority of the old pro¬
ducing .states.
It; is beyond the
scope of this report
to evaluate
Vitally

required.

note,

tend

out of

true

the

States

variety

subject to different prices. For

can

which

It is
this con¬
report issued by

United

Furthermore, recovery methods
Have been greatly improved. Not
only do oil companies get more

For one thing, he

contend.

are

and interruptions

produc¬

much pes¬

analysts

value.

this

has

with

The
current
market
emphasize this point. The exam¬
price of
ple of the coal-.industry, which gasoline, distillates, and residual
was
characterized by shortages fuels presently favors the refiner.

stantial

nection,

are

producer has. This is
result of /the
many
which the refiner

crude

natural

adequate- produce in relation to the amount
supply of oil in periods of peak of oil refined, the greater will be
•
■
:
demand.
It is difficult to over¬ the profits achieved.

a peak year for the industry,
production averaged 5.4 million

interesting

prolific

stability in prices that

same

variables

to be just as attractive as

strides

1950,

tion of South American oil.

The

;

The refiner of oil does not enjoy

industry has made mighty

The

the

with

In the United States oil

determining factor- in the explora¬

Middle East

involved by poor

pricing policies.

of tanks.,'

increase, there are many
ments regarding the acceptance or who doubt the industry's ability
rejection of investments of for¬ to further increase our supply of
The

lessen the risks

normal

quite injurious difficulty to draw a complete pichigh rate of drilling turd of refineryi prices/However,
activity and to the construction of it should be realized that the re¬
pipe lines for the movement of finer. must get the price of his
oil. Storage facilities might also crude costs, plus the cost of trans¬
be affected by inadequate supplies porting and refining, before, he

the oil industry

concerned

ports.

than

improved,

oil industry is designed to

of the

to the present

present

oil

period,

been

19,569,000,000

the earth's

'■> However,

the two Americas have

same

structure

price

that the

show

ments could prove

problems,

tion is running at an avergea

have

oil
rather

but

inflexible,

are

its long view.
It should be real¬ fornia, for instance, the demand
ized^ however, that the industry; for gasoline has always been ex¬
while the demand for
will be handicapped by shortages cellent,
of supplies and materials other heating fuels is variable. Because
than oil.
Inadequate steel allot¬ of these complexities it would be

and

political
atmosphere has been a disquieting
factor. Although relations between

fruitful

prices

must

day-to-day needs.

has

her turbulent

this

far

intention

the

not

discussion to imply that crude

demand
Short Run Supply Picture
may be, every business man from
The fact that there is plenty of shopkeeper to tycoon knows that
the price of his product must be
oil in the foreseeable future does
"right." That is, it must be high
not mean that supplies will flow
enough to assure a satisfactory re¬
evenly and unfailingly to meet
turn
on
the capital
investment

been

imports are still running at a sat¬
isfactory rate and can be expected
to be sustained.
The short view of oil supplies

supply. Venezuela's share of these
amounted
to
89%
of problem of supply;" namely, pro¬
South America's proved reserves. duction, stocks on hand, and im¬

Canada's,

price cutting by

widespread

any

foreign producers.

ply caused by the closedown oi;
the Iranian oil fields, United States

factors

oil

rels.

made

equal to 16.6% of the world's

production and reserves moreover,
it is unlikely that there will be

crude oil

dominating

companies

the

East, oil is plentiful.

barrels

25,268,000,000 barrels

increase

oil

But while South America's record

increase of 569,000,000

con¬

60% of the world's total
consumption
and
American

the

in
its own back yard
our neigh¬
bors to the north and south,. Can¬
ada a n d South America, offer
abundant hope
in the Middle*
.

suming

supplies has always been

appears

States

United

the

With

than 5% of the world's daily sup¬

of supply

source

1,402,-

crude

1,971,000,000

544

produced

modities.

availability of

the

concen¬

in other com¬

prices than

crude

excellent. Despite the loss of more

The United States has

excellent

Under

sources.

outside

reserves

from

the world.

which

industry

production

000,000
1941

the

years,

boosted

outside

circumstances

it looks as though the
industry will definitely be able to
South America's
production. In provide sufficient oil to meet daily
requirements.
To determine the
reserves, our Latin neighbors had
an
estimated 10,650 million bar¬ immediate position on this factor,
rels at the end of 1950 and this it will be interesting to survey
was

yes.

Domestic
'

this

supply.

Venezuela

The Supply Picture—Long Term
While the demand for oil

the border, U. S. oil
been more active

have

interests

defense
programs.
In view of
•Shortages of other sources of en¬
ergy, the focus will naturally be
on

South

Western Europe as the result

great

the balance must be made up by

«Some minor exceptions may occur

ties and unusual

Middle East. American

crease

country. While it would seem that

ourselves of

avail

amount of this oil as it is a natu¬

realize their own lack of sufficient
Staggering as this promised in¬
technical and financial experience.
may sound,
it represents
Of course, it would be foolish
only a part of the oil potential.
to minimize the threat of Russian
For domestic production encom¬
competition. However, most au¬
passes merely the output of one
arm of the industry .
.
.
its left thorities believe that there are
arm at that.
The tremendous right many obstacles in her way. For
one thing,
the mountains of this
arm stretches across the vast sur¬
area
make pipe lines difficult.
face of the globe, digging its fin¬
Also, there is no continuous body
gers into the richest deposits of
of water, even if the Russians had
Canada, South America, and the
an
adequate tanker fleet to carry
Middle East.
this oil.
Therefore, it does not.
Because of the geographic lo¬
seem
likely from our economic
cation, the most significant foreign
point of view that Russia - will
play in respect to future potential move
seriously against Middle
is probably the current explora¬
East oil.
Her political motives,
tory program being carried on in
however, might outweigh the eco¬
Canada.
It is estimated that in
nomic factors in this case.
Western Canada alone, total hold¬
The real danger to Middle East
ings of oil properties amount to
oil consists of the infiltration tac¬
about 129 million acres. Although
tics Of the Communists. Since the
there are no accurate statistics re¬
Middle East supplies about threevealing extent of participation of
quarters of Western Europe's oil
U. S. companies (through subsidi¬
needs, anything that threatens this
aries, stock holdings, etc.) one au¬
area threatens the Atlantic Pact
thority guesses that 90% would be
Nations and world peace. There¬
a
likely figure. However, Can¬
fore, Middle East oil is of vital
ada's contribution to the world's
importance, far transcending mere
supply last year amounted to less
monetary factors, and should be
than 1%. The precise value of her
safeguarded to the utmost.
position in the international pic¬
Thus we; see that oil supplies
ture is therefore still to be estab¬
are splashed across the surface of
lished.
Barring any unfavorable

ports which would affect the West
Coast

States

Outside United

drop im ex¬

never

the loss of our position

the

through

pipeline systems. . As a re¬
sult, prices are posted at the well
by refiners who control the pipe
lines, While there is competition
between refiners, there is less apt
to be chaotic pricing policies in

Mid¬
ral operation of the oil business
dle East interests are all outside
in the production and consumption
of Iran. The example of Iran has
certainly not yet proved success¬ cycle to have these stocks. A look
at the reported year-end 'stocks
ful enough to invite imitation. Be¬
sides, the particular political situa¬ clearly demonstrates this, for in
no time since 1923 have crude oil
tion that prevailed in Iran is not
stocks fallen below 200 million
typical of the Middle East. Also,
barrels.
: r>,
'
we can
count on efficacy of the
Of increasing importance to the
foreign diplomacy of our oil com¬
domestic oil industry is the avail¬
panies whose record shows an en¬
viable
success
in dealing with ability of crude oil imports. With
the United States continuously us¬
many
difficult situations.
Fur¬
thermore, these nations seem to ing more oil than it can produce,
in the

development work.

pos¬

sible shortage

it is difficult to

of war,

visualize

alone, V- approximately ten
billion dollars in exploration and

years

.."."J

factor

made

are

would

this

daily

in¬

;

trated

supply of about 41 days.
reality,
however, we could

mean

."-'v-

;

barrels

million

world's leading pro¬

Short

spent, in the last ten

the industry

from the Gulf to the Eastern Sea¬

board.

ducer.

zoomed

Another significant

the

become

Capital utilization has also
and it is estimated that

most.

influencing
crude oil prices is the method used
in the purchases of crude which
Another

High?

Are Oil Securities Too

therefore

oversupply

to develop in the oil

less apt

barrels which was

o£

cause

to 636 million 600,000 barrels daily should it be¬
come necessary. * .•
r
16.8% of world
Stocks on hand are another im¬
production ... of this United,
mediate source of oil. In a sense
States oil companies
had about
45%. Proved reserves in this area they may be thought of as being
"above -the- ground
reserves."
are estimated to be 48,010 million
Stocks of crude oil are currently
barrels, which is equal to about
much oil may be produced, they given area. An excellent example
estimated to be about 252 million
have set the quota for Texas at the is the extensive drilling now be¬ 50% of the known world reserves.
barrels
(end of August).
Based
On these reserves alone, the Mid¬
unprecedented level of over 3 mil¬ ing carried on in the Spraberry
on current crude production of 6.1
Trend in Texas.
dle East in time could very well
amounted

1950

Continued jrom page 6

Thursday, November 1, 1951

Chronicle

(1676)

Chronicle)

PETERSBURG, Fkn—Hugh
has become affiliated

Winters

with A. M. Kidder & Co., 400 Beach
Drive North.
'
.

■

•

■

With Merrill Lynch Firm
(Special to The Financial

Chronicle)

SAVANNAH,'Ga.—Mrs. Dale S.

indi¬ tion, has. the effect pf artificially Hull has joined the staff of Merrill
current; daily increasing and decreasing the sup¬
Lynch, -Pierce,-■ Fenner & Beane,
ing and gas-pressurizing, but they certainly be a devastating blow to production,1 the industry could ply of oil that the industry can
7 Drayton Street.
also work more structures in a the world
Weakness in price be¬
supply. Middle East oil feasibly increase production by produce.
a

well through water-flood¬

not

materially

hurt

the

overall

month.
cate

This would seem to

that,'based

yolume 174 * Number 5060

...

The Commercial and Financial Chronicle

(1677)'

from first

mental basis upon

groups

the

meet with

which both the Treasury and the Re¬
System are expected to build their policies. Com¬
pared to the questions, both specific and general, that

page

wish with respect to the various otherfrom whom information and opinion are sought.
same

nation are willing tc
determination, courage

and sacrifice the restraints

neces¬

to solve the problem.
This
require
postponement
of

have been listed in the subcommittee's
questionnaires, this

sary
will

one of the
desirability of a managed economy is of over¬
riding importance. Indeed, many of the questions lose all
point or else answer themselves if one is to assume a

express

serve

Continued

creased

desired

some

expenditures, in¬
savings and a substantial

burden of taxation.

The fact of the matter is that underlying all these
questions, as is the case with the findings of the previous

;

continuation of the
be answered in

joint committee, there is an implied
assumption of the wisdom of what has become known in

"planned economy." Nowhere is any
question included which would directly require the person
to whom the query is addressed to state his views about
such things, but at least in the case of the Secretary of
the Treasury, the Board of Governors of the Federal Re¬
serve
System, the Council of Economic Advisers, the
Comptroller of the Currency, and the Federal DepositInsurance Corporation, the matter is brought more or
less directly into the agenda—although it must be said
that in none of these instances are the questions framed
in such a way as to encourage free expressions of opinion
years

about fundamentals.

;

of life.

Others must

if we are to go over to—or rather
more
accurately, to remain upon—a basis of semi-social¬
ism, and in quite another upon some other premise. "For
many there are simply no answers based upon either
experience or upon generally accepted theory—for they
form part and
parcel of a planned economy which has no
historical standing and which is
hardly more than a mud¬

subcommittee of this

recent

American way

dled

one

of argument

mess

Is there

in the thedretical literature.

way

basic questions, which underlie so much else which is
being dinned into the ears of an un-understanding public?

Continued

memory has grown hazy about
tion of policy it is in all cases
of Economic Advisers repeated

from first

economy

These

into

back

operating

economy; was

highest levels

finally become aroused

their danger.

that

the

defeat

column in

We have recog¬

turning

the

known.

ever

Ex¬

This is

only one advance
great offensive.

situation which is

one's

voked
world

new

aggression, other plans for
wide

domination.

before

never

has

one

there

revealed

now

But

been

dimensions of the

program of the

dis¬

new

of in nearly every branch of indus¬
in effect, try and trade demonstrated anew

of
a

adaptation

back

in the history of the world. There
have been other acts of unpro¬

The

us.

the tremendous
for

imperialists aim at
tearing down the foundations of
government and order throughout
the world.

vitality and

power

growth of the American

pro¬

ductive plant.

During this period, however,
military program represented
relatively small drain on the

our

As recently as the sec¬

economy.

ond quarter of

mately 6% of
went into

Communist

1950, only approxi¬
national product

our

security

But from here
fense
a

programs.

out,

de¬

our

will be absorbing
much larger share of total

program

very

They aim at destroy¬
output.
By next June, it is ex¬
ing our belief in human rights.
pected that the proportion of our
They have shown their determina¬
national output going into defense
tion to make full and unashamed

for the

use

All

Will reach'

one-fifth; and the

pro¬

to interfere

out

patible with
listed in the

Employment Act.
Employment Act is unworthy; it should be
repealed forthwith; and it would be unfortunate for sev¬
eral good reasons if this issue is not permitted to reach;
But the

the floor in the

of
if

hearings soon to begin under the direction
Representative Patmami It would be doubly unfortunate
no

one

undertakes to raise the

question of the;

are

test of

war,

tough and long-lasting
patriotism. It requires a

requires

brand of
new

statesmanship on

degree of

record

of business

pace

generated by our defense program
that' incomes will continue
at very high
means

levels,.

not be possible to

sponding

honest

discrimina¬
That assur¬
Rev¬

conspicuously to pub¬

come

notice.

want to

assure

yout

is being used
deal summarily

out and

weed

provide

increases

corre¬

the

goods

and services available to civilians.

At the present time, inventories of
consumer

goods—the result of

our

continued heavy outflow of civil¬
ian
production—are
still
very
large.
But they are not- inex¬
haustible.
when

they
sure

The

test

will

come

drawn down; and
I do not need to em¬
are

phasize to this audience the infla¬

tionary

potential
this situation.
A

strong

represented

best

overall

is, of
fiscal

part

farmers

businessmen,

students,
and

the fiscal year

1951, however, the

whatever

government— government has been operating at
determine to a deficit., On the basis of present
actions are neces¬ estimates, which take into account

sary
to keep
fenses at full

the effect of the recently enacted
tax bill, revenues for the fiscal

those

must

take

individually

domestic

our

strength,

and

de¬
our

productive power unimpaired.
•

The American people, and

nations

with us,
program.
take

the

free

world

year

1952

other

billion—still

allied

short

have entered on such a
vAnd I should like to
minutes to give you

few

facts

that
range

Federal
much

make it

expect
Treasury's Position

$61

billion

1953, ending on June 30 of
that year, the Budget Bureau ex¬

the government.

$7.5

year

will

some

it pects

the outlines of this program, as

estimated

anticipated Federal ex¬
penditures.. And during the fiscal

affects the financial operations of

are

expenditures

higher.

clear that

very much

These
must

larger deficit

1953 than the $7.5 billion defi¬

fiscal ciency which is in prospect for the
year,
as
you
are
undoubtedly current year.
Our projected
aware, in a relatively strong posi¬
military expen¬
tion.
During
the
fiscal
year ditures are necessary for the de¬
ended last June, the Federal Gov¬ velopment of a strong defense.
started

the

ernment showed

billion.

present

budget surplus

They must be financed.
be

They

can

Over the past five
financed, I believe, without
have operated the gov¬ danger to our economy and with¬
out
ernment with a surplus of nearly
intensifying the strains en¬
$8 billion. During this period our gendered by high defense output,
of $3.5

years, we

when

and.

citizens and.

our

responsible public officials became
of

less

public

exacting stand¬
But evenand outraged at

duty.

indignant

the weak and greedy

few,

the

are

great body of honest, decent, con¬
scientious and hard

working pub¬

lic

comprise ' the

who

servants

Revenue Service. They resent and.
despise those few who bring a
splotch of dishonor to the service.

Many of these earnest and faith¬
ful people have devoted a major
share of their working lived tothe

service.

personal
honor

Their

reward; "and
is
in ^ the

satisfaction

they hold in their

careers

and in their lives of public serv¬

ice.

They

resent

bitterly

any

blotch brought on the service by
the few faithless ones, and they
fierce

are

in their

them

rout

determination,

out. ; It

the

de¬

voted purpose of every one of us
—of the President, of myself, as

Secretary of the Treasury, of the
Commissioner

Internal

Reve¬

and of the whole honorable

nue,

rank

and

file

of the

service—te

discover and throw out every re¬

maining malefactor.

Both the Commissioner of Inter¬

nal Revenue and I have welcomed
the opportunity to cooperate with
the King Subcommittee and with
other

Congressional

the

effort

the

prove

the

Committees

correct

operating

Bureau

prevent

recur¬

of these deviations.

rence

im¬

and

procedures
It

will

be the continued aim and goal to
maintain the standards of the Bu¬
at the

reau

people

are

high level which the.

entitled to expect.

Our Public

revenue program

the

course,

;',

indignation,

public

be the day

But it will

of each individual—not means for keeping the strains of
just their representatives and high defense output from weaken¬
leaders in Washington.
Be¬
All of us ing our financial structure.
—military and civilian, educators, ginning with the final quarter of
the

moment to be in power—is
a

new

but which brings many
of the burdens of a war period-

Once any central banking mechanism is called upon
take part in any such planned program of perpetual

obviously incom¬
central government charged with the duties

standing and full public support.
It is clear that our present situa¬
tion—one which is short of all-

any

that

means

Our form of govern¬
ment rests squarely on the concept
of
individual responsibility for
national policies and
programs.
We do not operate under authori¬
tarian decrees.
Every " national
program, to be successful, must
represent the will of the people—
and this means full public under¬

possible with the normal course of business,
affairs. Anything more than this cometh of evil, to use
Biblical language, and to be more specific, smacks of the
concept of a "managed economy," with which sound public
\
policies are quite incompatible.

military

The

this

acts

citizenship.

quite obvious that acceptance of
this underlying doctrine, expressed and implied, precludes
sound fiscal or financial policies on the part either of
the Federal Government itself or of such agencies as the
Federal Reserve System. The true function of the Treas¬
ury is to raise and disburse such funds as are required by

pens

and

faced, today, with

prosperity, it loses its status as a central bank and becomes
merely another tool of an all-wise and all-powerful gov¬
ernment. There are those who suspect, not without reason,
that one of the main purposes of the forthcoming hearings
of this subcommittee is to build up a case for converting
the ! Federal Reserve System into a department of the
Treasury. Once the doctrine of the Employment Act of
1946 is fully accepted in all of its ramifications much of
The case against such an obviously unfortunate step or
another more or less akin to it vanishes. Anything in the
nature of an independent central banking system—inde¬
pendent, that is, not only of the Treasury, but of the
Federal Government and the Administration which hap¬

threats

have

coveries and processes, and greatly
increased efficiency of operations

make

aggression.

load

unquestioned
integrity and unswerving loyalty;
to public duty.
In recent months
some
derelictions of public trust

ards

the

of national policy,
of industry, agricul¬

manner

Service

calloused

developments

aggression in Korea is,

which there will be
afforded useful employment opportunities, including selfemployment, for those able, willing, and seeking to work,
and to promote maximum employment, production, and
purchasing power.

little

his

pays

must find its root in

enue

bring

the general welfare, conditions under

the

properly so, for unfortunate would

subversion, propaganda, portion
may mount
still higher,
lying promises, and international
according to present schedules,
blackmail on a vast scale, as well
during the ensuing 12 months.

the Federal Government in such

each

These revelations of malefaction

purpose of creating and maintaining, in a manner calcu¬
lated to foster and promote free competitive enterprise and

that

favor,
manipulation.

spread

nized

ture, labor, and State and local governments, to coordinate

seems

these increased
definitely en¬

are

without

pansion, modernization, the wide¬

tions and othOr essential considerations

Now it

tion

world have

Congress hereby declares that it is the continuing
policy and responsibility of the Federal Government to use
ail practical means consistent with its needs and obliga¬

resources

that

and

clear that the free nations of the

in full. Here it is:

functions, and

brought

was

defense service.

The

and utilize all its plans,

assurance

fairly and equitably distributed,

page

Our Fiscal Program

the terms of that declara¬

with the assistance and cooperation

with the unfaithful few.

except that of the Council

taxes

pay

amounts, they
titled

that every resource

Secretary of the Treasury, the Board of Gover¬
nors of the Federal Reserve
System, and the Council of
Economic Advisers are all asked, for example, whether
they believe that "the Congressional declaration of policy
contained in the Employment Act of 1946 is balanced in
its emphasis upon high level employment and upon price
stability respectively, as objectives of Federal Govern¬
ment policy," and suggestions for improvement are re¬
quested. Both the Comptroller of the Currency and the
Chairman of the Federal Deposit Insurance Corporation
are asked about the conduct of their
organizations in rela¬
tion to this declaration of policy, and both are asked if;
they believe that Congress should issue specific directives
To be certain that

lic

The

in connection with the matter.

Distributed
When the public is called upon

ance

to promote interest in quiet, uniminformed public discussion of some of these

passioned,

Taxload Should Be Fairly

way

Adequate

Debt

;

however,; are
only the first step in safeguarding
revenues,

the financial system of our coun¬

try.
very

Our public debt is already
large. It amounts at the pres¬

ent time to well over $250 billion
—approximately one-half of the
entire debt of the country, public
and

private. It is the single most
important factor in the financial

markets,

and

the

major

invest¬

ment of millions of American citi¬

Under these

zens.

circumstances,,

successful debt management is of
vital concern to every one of us—
and

vital

importance

maintenance of

the

sound financial

situation throughout the economy.
From

the

country,

earliest

the

days of

Secretary

our

the
Treasury has been charged by law
with responsibility for the &6und
conduct

the

nation's

finances.

This

responsibility cannot be suc¬
cessfully fulfilled without the co¬
operation
Sound

present

heavily
the

debt

all

circumstances,
on

people.

our

management,

savings.

individual

under

depends

It depends

decisions

Continued

mil-

page 34

The

(1678)

ago—should be postponed un¬

Well, the reaction hit and
hit

Walter

from

,them

all

general

was

The

the Street.

over

Says —

The running away

hard.

legion. Ac¬
tually the chief causes of the
break

were

to be found within

the market itself.

Signs of its
being written the
have started a little coming were quite evident.
*
if
: *
V'. -/
7>;V;
upturn though I doubt if any¬
I'm, not going to use up any
body looks at it optimistically.
The chances are that most of more white space
in retro¬
the longs have bitten their spect. The question before us
nails to the quick by now and now is what to do from here
are ready to get out of every¬ on.
if
if
if
thing if the reaction gets any
As I write this,
Monday
worse
or
shows no signs of
afternoon, the signs of turn¬
stopping.
*
*
*
about are increasing. My guess
■"\
As this is

averages

;

break

are

series

guesses.
You can come up
with as many as I, maybe even
better

I've

ones.

the is that the current turnabout

for

reasons

often

will last

few

days then,

settle back into another

will

sell-off followed

by dullness.
*

❖

..o

here before, rea¬ :; Last week I suggested the
seldom interest me ex¬ time to buy them was when

cept

conversation. they

make

They

going down.

were

I've yet to see any post-opera¬ declined most of last week
tive reasons that can be and will probably go down a
little more this one. If you
turned into a profit.
want them you

can't wait un¬
til they're up .and ;ready to
They reacted all over the
lot. That's a fact. It's also a turn down again. If you do
fact that this column warned you'll be caught in a whirl¬
you
that once a reaction pool that'll empty your ac¬
be

lot

greater than generally antici¬
pated. It's also a fact that this
column said that despite the
reaction the general tendency
would be up but the time f<?r
buying—two or three weeks

count in

time.

would

started

now

.that

mean

buy them

you

'£

doesn't

This

Program

people

our

ernment.

to do

compulsion

them

one

American

qnd

one
essential
thing—
goal which must guide all

efforts

our

front—is

.1^1951

free enterprise
system,
tradition American insti¬

our

tutions.

•

the

But

the
of

There is

may

in terms of the individual burdens

and

buy

that

Thursday, November

taining the fundamental strength
of
our
American
economy* our

our

the

have

every
confidence that
national strength — physical,

our

domestic

moral

necessity for main¬

and

spirtual

will;prove

—

equal to this test.

One of the rights which

so.

cherish is the freedom of each

individual
funds

believe, is

his

invest

sees

fit.

surplus

Continued

vital part of the in¬

centives which make

free

our

the

world.

that

But

depends

system

recognition

page

:;v--

•

The Meaning of the Recent

en¬

terprise system the most produc¬
tive

from

This right, we

public

well

Market Reaction—What Now?

private interest. We should volun¬ line.
My answer tis No. Let us
tarily take whatever steps are re¬ compare prices—not by themselves
quired
to
in relation to an overall
keep
our
economy —but
strong. Widespread ownership of economic picture to the three re¬

jumped enormously—not only ab¬
solutely but relative to capitaliza¬
tion.

Net

Federal

been

built

keep

securities

the

necessary

large public

our

exercising
in

debt

disruptive

from

influence

the

economy.

extent

cent

periods 1929,

nal

near

below

was

citizens

and

private institu¬
nation, the govern¬
ment must resort to
borrowing
from the banking system. Com¬
tions, of .the

ignored.

their

In those

selling

were

high

for

today

But

decade

earning power. The collapse
logical.

was

securities
their

selling
working

net

capital. Book values have soared,
representing the re-investment of

years secu¬

too

than 100 well-

listed

rities

the

working capital has
sharply. Here is a

known

was

bought and held by

broke badly.
In
periods, a danger sig¬
waving frantically—but it

Sales have

now.

tabulation of

securities

when

ment

not

1946

and

periods and

those earlier

that the securities of the govern¬
are

1937

lier

high

earnings..

other list consists of

security

securities which

An¬

50 listed

some

actually sell¬
low relative to earnings.
comparisons picked at ran¬ ing below earnings re-invested
since 1941. { See tables III apd IV
bank holdings represent, dom arpong the better-known se¬
on
of course, the most
adjoining page—Ed.]
inflationary curities are shown in table I.
On all three counts, then, earn¬
Most of these securities are now
type of debt ownership. Increas¬
ing reliance on bank financing selling at less than half the ratios ings, dividends, and f i n a n;c i a 1
would
strengthen, rather than for the earlier periods. Not only soundness, the contrast with the

prices

are

A few

mercial

mentioned
sons

keep

strong—difficult

hold the obligations of their gov¬

reasons

for the break were

By WALTER WHYTEss

the

must

involved.

lions

economic health, we
fiscal
position

preserve our

page

Our Fiscal

Markets

What

from

til the reaction hit.

Tomorrow's

Continued

Commercial and Financial Chronicle

have

you

weaken, the upward
the price level.

pressure

This is why the Treasury is so
deeply concerned with encourag¬
ing people to save, and with pro¬

moting all
which

measures and programs

encourage
the
habit
This is
important at

earlier periods is

were leading securities selling at
fantastically high price?earnings
ratios in '29, '37 and '46, but some
of the lower priced shares and is¬
sues

which have been described

far, so good. What of the
future? While many of thef mar¬
ket

times.

all

But at present it is vital—

in them. Therefore, let us try to
appraise what the future holds for
industry.
;

the

have .emphasized

taxes

and

have

that

agree

not out of line

current earnings and, divi¬
dends, they forecast a sharp, drop

overall market has

issues;

heavy defense output.

would
are

with

"cats and dogs" had gone to even
dizzier heights. This is not true at

present.

pessimists

security prices

contrary, the
probably risen
less than indicated by the "aver¬
not only to the sound conduct of
the nation's finances, but to the ages" since most of the demand
has been for the-"big name" se¬
successful functioning of the en¬
curities
and
many f. of
the
less
tire economy
during a period of well-known
thrift.

marked pne.

The

is currently run¬
ning at full speed ahead. Produc¬
economy

tion is at its highest peak during

moved

peace-time

only slightly.

ment

-is

period.

Unemploy¬

minimum

with

guarantees that they'll go
What about yields? Since earn¬
shortage of workers in many seg¬
greater pavings because these are
ings and dividends are but oppo¬ ments of
ap right away. If I could give
industry. Personal in¬
the foundations of a successful
site sides of the *isame
coin, it come is at an all-time high.'
;qch guarantees I wouldn't fiscal policy
during the period should come as no
surprise that
bother writing this.
But if when we are readjusting our de¬ dividend
Expenditures for defense are
yields were low in 1929
they go down after this shake- fense to the realities of the pres¬ —1937 and 1946, and that they are just beginning to make ithement world situation. But these are
selves felt. Since July, 1950 we
out the places you can stop
high today. In September, 1929
have authorized some $140 billion
only two measures which are re¬ the
yield on the <P-J Averages
your stocks will be a lot closer quired for
safeguarding our eco¬ was only 3.3%—and not much for defense, but of this pply $35
to reality
than they would nomic health. The restriction of better in '37 and '46.
billion has been expended. The
any

Pacific Coast

Securities

have been
Orders Executed

Pacific Coast Exchanges

Established

1919

SECURITIES

York

Curb

San

Stock

Exchange

Exchange (Associate)
Francisco Stock Exchange
York Cotton

':/?■■■

That about all for this week.

Teletype NY 1-928

Francisco—Santa

Let's

what

see

happens now.

Barbara

Monterey-—Oakland—Sacramento
Fresno—Santa Rosa

[The
■irticle
time

expressed

views
do

necessarily

not

coincide

Chronicle.

those

with

They

are

CALL

U. S. Steel.,
B. &

So.

Jan. 28

presented as

Dec.

.112.50

,@60

Jan.

287.50

@49%
Ariz.@25%
Beth. Steel
.@50%
Warren PetroI.@28%
Grt. North, pf. @54%
Chi.Milw.St.P..@22

New Mex.

Penn.

RR.

Feb.

)ec.

437.50
212.50

**ecv31

375.00

Jan.

Dec. 31

175.00

Jan. 22

112.50

;@19% 5

mos.

200.00

and

assur¬

and

wages

done.

have

every

con¬

fidence

that our people will
give
wholehearted support to the meas¬

than

6%!

fact, in '29

common

enemies

are

well

the crushing power of

aware

our

present

production

plant. But what they
have failed to see—what
they have

constantly underestimated—is the
dynamic strength of a nation of

ducive

the

maximum

each

citizen's

earliest

children

Yield
Yld.

Stock

childhood

our

to The Financial Chronicle)

BOSTON, Mass.—Barclay Feath¬
and

Randolph Sharp have be¬

high-gradubds.

6.1%

2.6%

125%

210%

bond

Other

yield—

significant

affiliated

come

with

Edward

Mathews

Co., 53 State Street. Mr.
Sharp was previously with Wil¬
liam H. Coburn & Co.

examine

their
and

Scoring Position

this

Market

Uncertain

137.50

1001 CHARTS

100.00

Paper
,@52
Jan. 21 175.00
Schepley Jnd.,@33%9ec. 31 ;187.50
Ohio Oil
.@51% Jan. 4 325.00

NEW

NOVEMBER

try

concepts—both

those

out

new

others—

programs.

They
learn
,to
express
their
thoughts without fear, and with¬
out

new

and

own

putting their
They are taught

the

from

restrictions
government

authoritarian
It

which

come

operating

Woolen..@41%Dec. 15 200.00

N.Y.Chi.St. L..@44
Subject,to prior sale

jCec. 26
or

Explanatory pamphlet

112.50

price change
on

request

THOMAS, HAAB & BOTTS
Members Put & Calls Brokers & Dealers

Association, Inc.
50

Broadway, N. Y. 4, Tel. BO 9-8470

monthly

highs,

lows—earnings—

dividends, capitalizations.— volume

virtually

the

1940

Stock

active

and

November

Curb

stock

listed

Exchanges from

1951.

Single Copy (Spiral Bound). .510.00

F.W.STEPHENS
HA 2-4848

1937

15)16

Oct.-,

At High

*15)51

44.2

At High

12:9

19.9

18.5
5.7

38.0

23.0

16.4

12.1

33.0

24.3

24.0

21.9

>40.7

20.8

Edison

Electric

44.6

Motors.

34.9

25.3

17.2

16.6

—

29.1

22.4

...

15.9

21.6

45.5

—

Goodyear

this

heritage

which

courage

will

and

protect

12.0

11.6

•

10.4
;

16.5

24.3

4.8

17.4

20.3

12.0

U. S. Steel.....—.

12.3

15.7

13.3

6.8

Woolworth

28.1

19.0

15.0

13:1

Standard

Oil

—

...

*Based

the

estimated

1951

5.4
8.5

earnings.

TABLE II

■

•The JEffect

.;:

'{■

Higher Taxes

en¬

have the wisdom and

those

pursue

na¬

'•

■

Air

Combined Total Earnings

(

Per Share

Companies

Chemical

„.

*15)51

15)50

1_._

Transport

12.56

15.35

Machinery (Industrial) —3024

Oil

205.93

221.20

192.99

178.25

62.29

72.00

■

;

way

■

The problems raised

cessities

by the ne¬
large-scale
defense

financing—as I
a

part

this

see

Steel

...

Rubber and

whole.

^Estimated.

...

Tires.

them—are only

larger

100.25*

105.61

Nonferrous Metals

American

our

■

Earnings

No. of

Industry—

■

guarding
life.

17.4

tional policies necessary for safe¬

Yearly (6 Revised Books). .$50,00

15 William St., N. Y, 5

51.5

now—if

every

leveling

19.2

General Foods.—

made possible the produc¬
miracles of World War if.

vironment

has

orders

gradual

total

which

And

of GRAPHIC STOCKS
show

unfilled

kept

the

13.4

....

Am.

than

and

■.

heritage and this
.environment, when put to the test,
tion

ISSUE

—

22.7

....

General

addi¬

which

—2i.i

Chemical-JL

General

the

demand

decree.

this

was

Dow

consumption

sales

23.0

Case, J. I
DuPont,

with others in

have

While

soared.

At High

Copper

re¬

tre¬

Earnings Ratio

Can

Anaconda

the

and

energy

with

1929

Security—

refer
that

increase in

substantial

im-' amount
ear¬

only

showing

Orders
pace

TABLE
Price

must be met in the next few years.

f in ancial

ratios have also
undergone
portant changes between the

Consolidated

6.1%

need

electric

tional

2.9%

53%

3.2%

the

Business .must

plant

data

1951

3.3%

taught to think for
themselves, to experiment, and to
ideas into action.

cent

Oct.,

1946

Dow-Jones__

American

are

task,

mendous
May,

and

handle the
onrush of orders. To illustrate the

table. v
1929

slow

forward.

expand "its

gilt-edge bonds. The sharp dif¬
yields is shown in this

employ¬

individual

resources.

will

ference in

Sept.,

been

the defense outlays
become
more
pronounced

here

Today common stocks are
yielding more than twice as much
as

has

full effect

paper.

men, living and thinking and
working in an environment con¬

ment

build-up

actu¬

a lower return than
high-grade bonds and commercial

ures

necessary for conserving the
economic resources of our nation.

matter

stocks

ally provided

work

(Special

225.00

P.-Am. ;Wld Air@10% 6 mos.
Int'l Tel..& Tel.@18%Mar. 29

Int'l

2 With Edward Mathews

Fr..@29

Pacific

Kern Co. Land

can

abilities and

•

137.50

stability

From

.@43% Dec. 24 $112.50

0..@20

St. L.-San

the

allo^

materials,

prices, are.also necessary. The job
is a big one, but I know that it

OPTIONS

Per 100 Shares Plus Tax

•

scarce

this free

at any
of the

.those of the author only.]
SPECIAL

ing

Our

N. Y.

Private Wires to Principal Offices

San

Here's a
couple of fresh ones, U. S.
Smelting, and Texas, Pacific

Exchange

New York 5,

COrtlandt 7-4150

point in re¬
peating the stocks or the
groups I favor. They're the
same ones: "steels, oils, amuse¬

Today it is

essential uses, the

various direct measures for

Coal and Oil.

Chicago Board of Trade
New

14 Wall Street

ments and coppers.

Members
New

York

New

credit
cation

❖

little

There's

Schwabacher & Co.
INVESTMENT

few weeks ago.

a
❖

139.48
,

142.14

137.15
;

151.55

Volume 174

Number 5060

The Commercial and FinanciatluChronicle

(1679)
off

probably

can

probably
the

some

picture

munity is
What

be expected—
time next spring—

of the

business

healthy

about

TABLE

Date

one.

taxes?

Will

:they

cut- down

dividends?

earnings

Certainly

and

taxes

'.V

with the

even

We Jiave

tax

new

remain at very

computed

earnings for

American

law.

tax

new

Even

after

Austin.

[See

table

page—Ed.]

Bliss

■

important considera-.
tions should be kept in mind in
assessing the effect of lower earn¬
ings. First, corporations have been
most

conservative

liberal

policy

bp .pursued.

could

Therefore,

even

drop in earnings would not
sarily be followed
by a

•

1949

v -

1946

1936-40

Average

conservative

earnings

ratio

which

could

well

ratio
at

was

market

even

lows

Earnings

1929

High

1932

Lew

8.74

6.32

15.26

10-31-50

341.35

329.08

38.42

16.6

Y Y

1938 High
1939

Low

1939

High

1940

13.5

Low

Car

Low

16.8

1951

the

23.50
20.15

65.73

48.45
15.45

66.25

37.25

12.06

8.09

7.5

Current

6.53

year

36.27

20.45
4.47

73.29

52.08

22.46

16.26

*,A11
noted,

37.06

25.35

19.80

tabulation,
stock

30.43

22.23

36.14

22.42

quick

423.21
42.87

18.92

8.76

4.42

12.31

66.29

30.86
5.23

9-30-50

9.36

6.13

12-31-50

32.78

23.44

38.20

24.19

37.96

22.38

34.79

20.38

12-31-50

19.85

13.75

3-31-51

21.34

; 13.47

6-30-50

24.29

14.24

3-31-51

4.37

2.97

4 :

4-30-51

29.83

5.17

23.36

16.49

10-31-50

82.91

64.56

44.30

35.31
14.32

chaotic

world

will

continue

provide ample grounds for pessi¬
mistic prognosticators.
The man

Martin-Parry
_U:

Murray

ner¬

our

opin¬

ion, he will probably fail to notice
general

urity

upward

trend of

prices and the

stantial

gains

by
.

•

■

(Special to-The Financial Chronicle)

SAN

harles H. Lape and John V. Litlefield are now with Paul C. Ru¬

dolph & Company, 127 Montgom¬

Woolen

19.54

72.73

20.08

16.53

14.18

13.02

(Special

.SAN

to The Financial

14.20

28.58

10.01

Sugar

Grayson-Robinson
■

14.20

.-Kenneth:Lynch has become

as-"

ociated with William R. Staats &
o.,

Ill Sutter Street. He

was

:or

several.' years.

Hudson Motors

23.08

Keisey Hayes, B
Manati Sugar

30.42

15.14

•.

Murray Corp., American

19.06

National

„

22.15

National Department Stores

29 64

Supply

;

Newport Ship & Drydock

35.27

Pacific Mills

39.46

—

Peabody Coal
Pittsburgh Steel
.

13.04

25.47

Pittston Co.

21.83

Schenley

35.22

Seiberling Rubber
Smith, A. 0.___
Stokeley Van Camp

•

19.69

Reo
- ■■.

28.88

Prosperity Co.

15.54

36.77

Motors

-—

Corp.
Century Fox
City Rapid Transit
S. Hoffman Machinery

28.66

•17.22

27.21

16.44

20.23

71.88

37.69

20.69

Virginia Carolina Corp
Wesson

21.15

Universal Pictures

80.20

16
29

27.87
14.49
16.37

20th

Twin

29.20

Thor

24.14

Studebaker

8
14

16.51

33.71

;

Oil

36.65

32.14

22.00

26.18

18.22

White Motors

29.05

21.00

9.54

West

Virginia Coal

Coke___

Wilson & Co

23.11

1-31-51

32.34

27.65

Woodall Industries

13.19

21.24

13.52

Worthington Pump

29.35

12-31-50

22.35

10.50

N. Y. ShipbuildingfNiles-Bement-Pond. Lj.i

12-31-50

428.83

420.86

12-31-50

26.53

17.51

6^.._;12-31-50

16.74

10.03

13.26

—

Electric

North

Amer.

Aviation_l_

■

9-30-50'

____Y^iYYl 0^-31-750

Pacific -.Mills

15.08

60.22

33.30

68.35

38.60

17.46

9.60

14.10

8.95
413.37

67.03

50.46

12-31-50

SAN
len

with

Denault

3-31-51

11-30-50'

____

Silk

111.08

7.93

ST.

Oakes Adds To Staff
MIAMI

BEACH,

Fla.—George

5.05

12-31-50

50.68

45.02

Co.

Reliance Mfg.

;12-31-50

Reo Motors

18.89

14.82

3-31-51

32.20

18.72

fRyan Aeronautical;

—

Schenley Industries

Servel, Inc.

________

E. Tanner is
pany,

10
19

10-31-50,
8-31-50

10-31-50

12.81

•

9.76

'
,

549.76

535.88

11.55

8.52

has

become

affiliate
-

Mader Go. Formed

6.33

Stores

PETERSBURG, Fla. —Rc

James

(Special to The Financial Chronicle)

12-31-50

;i6;

19.86

Heagerty

Co., Flor
da Theatre Building. He was pre
viously with Herrick, Waddell I
Co., Inc.

41.35

•

with W. H. Heagerty &

Co., Russ. Building.

12-31-50

Joins W. H.

FRANCISCO, Calif. —Al¬

Lonstrom

(Special to The Financial Chronicle)

428.69

tPhillips Packing i___^_i-; l;3-31-51
fPowdrell & Alexander-12-31-50

With Denault & Co.
<Special to The Financial Chronicle)

/12-31-50;

•(•Prosperity Co. "B"

„

pre¬

viously with Schwabacher & Co.,

33.77

1—

12.86

Guant. Sugar
Hart Schaffner

-Reliable

FRANCISCO, Calif.—

50.60

—

Hosiery....—1
fRegal Shoe
—1

Chronicle)

19.18

12-31-50

National Dept. Stores.—tNational Rubber Mach.__

Real

Staats

12.68

3-31-51

Can

Pullman, Inc.
-(-Raytheon Mfg.

With William R.

•'

41.42

Street.

ery

4.27

30.89

Francisco

12-31-50

18.59

Cigar

27.26

12-31-50

Natl. Automotive Fibres..

National

Oliver Corp.

FRANCISCO, Calif.—

14.66
V 14.37

Locomotive

General Cable

Noma

Rudolph

19.44

26.04

1-31-51

Corp.

Nesco, Inc.

undervalued

'•'

Two With Paul
*

sub¬

,L.VY

roups.'

se-

•

Rounded to

Duplan Corp.

21.96

■

Earnings

23.08

8-31-50

Montgomery Ward
National Acme

of mind.

'f ■; 9 •

com¬

$9.65

12-3l'-50

ner-.

state

7.58
40.02

the

Colortype

12-31-50

find the market acting
vously— reflecting his own
vous

16.26 '

12-31-50

Miami Copper
fMidvale Co.

who trades daily for a small gain
may

8-31-50

McQuay-Norris

Foster Wheeler

ously be expected.' A jumpy and

carried

Nearest Dollar

Diamond T

27.82

'____

value

10-Year Retained

Cudahy Packing

12-31-50

Shirt '

would

the

Crucible Steel

12-31-50

Manhattan

that

Retained Earnings

Consolidated

2-28-50

fMarion Power Shovel

accumulations.
realized if both

Gas

Byers. A.

13
-

36.10

obvi¬

disposed

dividend

10-Ycar

Ceiotex Corp.
Childs Co.

'.12-31-50

can

Beech Aircraft

Trucks

way

for

Auto Car Co

Mack

the

were

and

amount

in the

debt

Austin Nichols

investment

along

assets

price),

full

for funded

minority interest, for preferred

Armour & Co

72.22

bumps

fixed

American

12-31-50

3-31-51

rary

the

OBLIGATIONS, shown

capital, after allowing

liquidating

books.

otherwise
3 Canadian

American

4-14-51

programing.
Tempo¬
setbacks,
corrections,
and

and

unless

10-31-50.

Affiliated

Steel

fear

working

represents

American

■'i 24

8.07

Libby, McNeill & Libby_

nothing to

involuntary

Exchange,
As

Prices Oct. 30

Lukens

has

Company—

20.19

at these levels if he pursues sound

investor

.Stock

5-31-50.

•

5 Pro-forma.

CAPITAL AFTER PRIOR
net

44.59

10-31-50

Tire

York

13.22

81.57

TABLE IV

25.78

11-30-50

New

)As

shares.

Securities Priced Below

11-30-50

______

the

Curb.

represents

VALUE

pany's

22
<

12-31-50

Stove

(at

BOOK

12-31-50

Packer

listed

York

4 Combined

21.32

12-31-50

the company and subsidiaries at face
value, for

12-31-50

Car

issues
f New

currency.

45.80

12-31-50

Motors

2-28-51

Youngst'n Sheet & Tube.

12-31-50

Rubber

34
27

12-31-50

Lee

30.36
42.77

8.62

12-31-50

fLakey Fdry. & Mach
fLanston Monotype

ago

41.92

60.80

5-31-50

_._

Kayser (Julius)
fKingston Products

11.3

—

3-31-51
12-31-50

7.78

3-31-51

Watch

12-31-50

...

12-31-50
;

16.46

White Motor

26.54

7-31-50

Co.

25.36

11.26

12-31-50

Truck

17.36

44.32

27.26

7-31-50

Cigar

Kalamazoo

as cheap
is indispu¬
table^ It is equally clear to us that

was

34.45

12-31-50

23.31

13.48

11-30-50

7-31-50

Motor

51.65

7.20

12-31-50

•(Iron Fireman

That the market is not
it

18.71

8.36

15.04

Wilson Jones

1949< Low

27.29

22.44

12-31-50

Internatl.

12.4

High

12.86

Hunt Foods

10.9

1946

16.00

11.52

12-31-50

Wheeler

Motor

11.98

19.70

18.59

15.10

32.76

Webster Tobacco

21/2

2-28-51

Watch

Motor

Hercules

22.83

3-31-51

Motor

Williams

Hudson

10.5

1941 High
1942

•

12.3

____

47.48

24.01

3-31-51

Western Auto Supply___-_
White (S. S.) Dental

1-31-51

2.09

30.75

12-31-50

4.10

52.09

10-28-50

4i/2

3-31-50

Cigar

Hart, Shaffner & Marx__
Hat. Corp, of Amer
Hayes Mfg.

39.8

4.24

12-31*50

___

4.80

Wayne Pump

9-30-50

•(-General Fireproofing
Gen'l Precision Equip
General Rwy. Signals
fGlenmore Distilleries "B"

19.8

11.34

12-3D50

____

Natl.

39.01

21.58

Co.

Vilbiss

51.96

73.73

35.18

Machy

Pictures

Waukesha

134.75

2-28-51

Hoffman

Van Norman Co

Hamilton

Low

19.53

3-31-51

12-31-50

____

NET WORKING

50.30

Universal

fHall Lamp

High

25.63

17.5

1938

Goodall-Sanford

1937

16.03

29.58

General

24.88

12-31-50

37.62

22.25

93.7

4.17

6-30^50

Plow

Gamewell

Ratio—

41.68

5.45

3-31-51

12.18

9-30-50

Dow Average

18.16

19.71

42.80

Foster

present.
Price

24.73

34.12

Federal

considerably higher than

63.01

12-31-50

3-51

Eureka

P-E

5%
3

12-31-50

■

Oil____

fFairchild Engine
Fajardo Sugar

at most

the

24.59

3-31-51

Endicott Johnson

currently selling at only
1951 earnings.
At the ;29, '37 "and '4-3 market
peaks the Averages were some 17
periods

12.49

"44.13

12-31-50

____

Cotton

11.48

3-31-51

Douglas Aircraft

times estimated

times earnings while

12-31-50

____

6-30-50

Elgin

ages are
11

"B"

Diamond T

afford to go higher and thus
sup¬
port lower earnings. As you will
note in this chart, the D-J Aver¬

price-

12.55

Daystrom, Inc.
fDejay Stores

Secondly, current security prices
result

13.11

Aikman_______

DWG

24.05

Starrett (L. S.)__
•(•Sterling, Inc.
Stewart-Warner

Curtiss-Wright
.

21.81

3-31-51

13.73

Cuban-American Sugar

5.01
11.55

Pictures

Crane

17.13

42.09

1947

22.59

43/4

7.39

26.13

Combustion

53%

1948

;
>

18.47

Eng.-Super.
12-31-50
Consolidated Cigar
12-31-50
Cont'l-Diamohd^ibre __l -12-31-50
Cpty Ihcf/Yl
6-30-50
Coty International
12-31-50

com¬

Dow-Jones Averages

28.31

15.19

49.79

Bros.

Collins

Proportion of Earnings Paid Out

1950

12.58

12-31-50

Columbia

parable reduction in dividends.

23.16

14.05

6-30-50

12-31-50

fCockshutt

11.70

(S.)

Chickasha

neces¬

viS&ga;

fCessna Aircraft

easily

12.07

12-31-50

Century Ribbon Mills

paid

13.78
23.41

3-31-51

W.J

Ami

Butler

recent

12-31-50

•

10.47

4-30-50

Brunswick-Balke-Coll.

in the degree to which they
out earnings. A much

years

have

during

42.33

18.40

Airplane

Boeing
Bon

74.87

12-31-50

20.77

12-31-50

___________

12-31-50

fBlumenthal

Two other

11.14

5.17

fThew Shovel
fTodd Shipyards
U. S. Freight

23.28

5.59

10-31-50

G.)—_2—

9.36

12-31-50

Spear & Co

55.09

12-31-50

Bros.

(E.

•36.88

3-31-51

Ba> uk Cigars

preceding

47.16
101.64

Nearest $

18.55

Sparks-Withington

6-30-50

Rounded to

12-31-50

53.42

(A.

Prices
Oct. 30, '5i

Pr. Oblig.
—$ per Com. Sh.—

fStandard Forgings ___12-31-50

12-31-50

Nichols

Barker

3.30

73.68

Spalding

Nearest $-

11.27

6.95

9-30-50

Baldwin-Lima-Hamilton

justing for the higher taxes, earn¬
ings compare very favorably with
1950.

■

14.93

G.)

Net Wk?.
Cap. After

Value

Bal. Sheet

(F.

•("Simplicity Pattern

Rounded to

—$ per Com. Sh.—

Company—

Shattuck

Prices

Oct. 30, '51

Oblig.

12-31-50

Autocar Co.

ad¬

Pr.

12-31-50

fApex Elec. Mfg

in¬

dustry group, taking into account
the

Stove

Value

Sheet

American Woolen,.

estimated

1951

Distilling __•___
fAmer. Laundry Mach
American Ship Building__

^Company—

Net Wkg.
Cap. After

"..Book

Latest

'■(••

American

high levels.

average

fAir-Wav Elec. Appl._
Amalgamated Leather

tfte peak in profits for most com¬

panies. But

'are

going to limit profits, and in our'
opinion, we have probably seen

law earnings will

Date

Book

Latest

Stocks Quoted Near Equity in Working Capital

com¬

sharply

III

with Oakes & Com¬
R.

605 Lincoln Road.

H. Thomas
COLUMBUS,

Opens

Ohio —David

H. Brennen

and

with

Mader I

offices at 418 East

51s

Street, New York City, to engage
in a securities business. Mr. Mader
in

the

past

was

associated with
Co., Inc., and

Thomas is engaging in a securities
business from offices at 50 East

D. F. Bernheimer &

Broad

L. Johnson & Co.

Street.

Maximiliar

Mader have formed

The Commercial and Financial Chronicle

(1680)

■

•:

■

;

-T

•; •

latest week

week

Business Activity

Week

Equivalent
Steel

capacity)—

operations (percent of

steel

Indicated

to—

Crude

INSTITUTE:
condensate output — daily

oil

and

gallons each)

(bbls. of

average

116,481,000'
stills—daily average (bbls.)——Oct. 20
21,833,000
Gasoline output (bbls.)
■
£9
Kerosene output (bbls.)———
—
Oct .20: v .-".-2,41S, 000
V- 9,461,000
Distillate fuel oil output (bbls.)——
—
—
Residual fuel oil output (bbls.)—
Qcu20 x 2" 8,502,000
Stocks at refineries, at bulk terminals, in transit and in pipe lines-*-**"-..:'«.
111,363,600
Finished and unfinished gasoline (bbls.) at——-_r——Oct. 20
33,392,000
Kerosene (bbls.) at
:
—-—-•
———
101,548,000
Distillate fuel oil (bbls.) at—
——Z—____20
49,279,000
Residual fuel oil (bbls.) at—_—
—
—----Oct. 20
Crude

*6.329,350

runs

6,297,950

Wholesale

6.55,0.000
21,752,000

6,078,000

21,330,000

9,547,000

8,283,000

8,358,000

8,736,000

*111,845,000

113,072 000

105,382,000

33.632.000

33,529 000

28,578,000

95,164, 000

83,193,000

*47*644 000

•

'. ''

/»,«/'•

r •"

■

RAtLROADS:

.»V

> i

" * '

—-Oct. 20
freight received from connections (number..of.cars)
Oca, 20

49,139,000"'
■

-\Y*

706,756

engineering news-

694,738.7-.

;

't'

^693,041

•

83,379.000

71,051,000

41,379,000

52,682,000

42,000,000

18,369,000

11,375,000
1,045,000

.J——Oct. 20

—Oct, 20*

EDISON ELECTRIC

1,020,000

137;600-

"131,700

STREET, INC.

334

.———Oct. 27

7,233,928

7,149,438

—

——

—

-DUN

INDUSTRIAL)-

AND

155

157

BRAD--

_____Z

;

■'

liabilities
service

4,668,000

liabilities

DEPT.

147,755,001
97,350,00
" 80,135,00

—-

7,101,794

'■

•

SRON

• ■

•M

•yi»

'ft

/"t-:.':

■

4131c

$52.69

$42.00

4:131c

4.131c

$52.69

————Oct: 23
iESA-.si.-ii—i-Oct. 23
——.—Oct. 23

Pig iron (per gross ton)——:——
Scrap steel (per gross ton)

$43.00

DIVIDENDS

PUBLICLY

—

;

METAi?^RICE8-.(E.

COMMERCE

LINTERS

AND

...

BALES:

Lead « York)

27:425c

27.425c

27.423c

103.000c

117.500'

Oct. 24

19;000c

19.000c

17.000c

(St. Louis

—Oct. 24

Zinc

(East St. Louis)

18.800c

16.800c

—Oct. 24

MOODY'S BOND

) at—u-l——_i-_—„

at_

19:300c

19.500c

PRICES

Government

—Oct. 30

97.74

97.86

Oct. 30

Bonds

Average corporate i

109.79

110.34
114.85

.111.62

114.27

101.44

116.22

1—

;

93.08

;

Ho.24

;;

113.89

109.42

Oct. 30

103.30

103.80

.—Oct: 3o

106.04

107.09

108.16 i

Oct. 30

109.79

111.25

113.89

114.08

115.24

119.0C

114.66

105.00

108.86

Baa

Railroad Group
Public

Utilities

Group—

—

Industrials Group

BOND

YIELD

2.65

2.63

2.39

3.15

3.08

2.8?

WEPT.

2.91

2.84

2.66

Month

2.96

•2.89

2.7:

3.20

.3.15

2.92

.3.55

3.52

3.45

3.33

f' 3.27

3.16

3.10

2.96

2.95

Oct. 30

458.4

459.0

2.89

3.23

rJ.

AVERAGE

DRUG

468.7

460.3

168.866

171,817

155,900

196,950

Oct. 20

217,734

211,413

214,310

429,639

ftTOCK TRANSACTIONS FOR THE

SPECIALISTS

EXCHANGE

ACCOUNT

486,887

715,451

475,903

149.0

148.9

THE

sales

26,144

35,600

8,658,000
21,090,000

*54,131,000
43;738,000

$307,233,000

$327,525,000

:
'

57,024,000
45,943,000

$302,338,000

1,054,653

1,077,194

"
•>:. Z■■'V.:--

dollars):

(millions

;:Z:

*$20,289

$14,205

———19,629

*19,605

15,04a

$40,536

*339.894

$29,253

22,506

*19,673

$28,155,000

$27,851,000

$27,120,000

$254,4

*$252.4

$227.7

167.8

*167.1

147.2

171.2

*170.6

150.3

74.6

*'<4.o

66.2

46.3

*46.0

20.4

*20.3

18.9

29.9

*29.5

22.4

—

;

22,251

COMMERCE)—Month

Z !.

(in billions):
income.

—__—

receipts,

salary

industries

————

—

labor

42.8

social

for

contributions

employee

3.5

3.4

income

3.1

3.8

—

$46,148,934

$38,308,776

23;601

31,437

35,065

31,155

131

181

252

3.6

23,470

34,813

sales

676,754

6,453

8.183

8,457

672,285

901,281

1,000.884

881,536

Oct. 13

4,469

Oct. 13

;

NUMBER
TURE

889,993

1,009.067

Oct. 13
;

$27,166,119

$35,613,509

$40,475,280

RECEIVED

PRICES

30,929

Oct 13

31,256
907,734

—

of August

$34,568,564

sales

All

farm

Crops

295,190

309,460

185,090

Oct. 13

237.170

237,170

295,190

309,460

283,440

399,260

372,730

292

—

11.9

208.6

294

INDEX

AGRICUL¬

1914=100—As

1909-July,

products.—/—

278,446

—

grain

224

213

430

______

——_—

239

236

438

399

291

/—

Cotton

252

215

——Z—----

—

and hay_

Tobacco

267

244

234

—;—

__—

Feed -grain

Oct. 13

Other sales

185,090

12.6

*230.2

35:

Food

—Oct. 13

DEPT.

12.7

—

FARMERS

BY
S.

18.9

*19.7

19.8

Unadjusted-

by dealers-

Number of shares—Total sales

August,

46.1

231.5

_z__

transfer

payments____:
nonagricultural
income

Total

226

Oct. 13

Total

and

*49.2-

50.3

rental

income—
Per.sonal interest income and dividends—

892,156

$45,273,573

—Oct. 13

Dollar value

UN¬

SALES

(000's omitted)

Distributive

29,404

35,640

770,718
$32,981,060

Oct. 13

sales

Short

50,692,000

insurance

Oct. 13

Number of shares—Total sales

Bound-lot sales

22,550,000

sales

other

3 J. 190,000

8,152,000

•

$20,907

Aug.

Proprietors'

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

short

$131,433,000

38.234,000

22,966,000
56,691,000

—

__I

and

Other

Oct. 13

Customers'

$135,428,000

8,580,000

personal

Less

Oct. 13

Customers'

$1,479

$148,811,000

STOCK

other

*$1,598 7

1.379

—

August

138.2

149.1

COMMISSION:

orders

short

>'741.7.:;:
40 r:
v'u% ( y

39.1

————

INVENTORIES

(DEPARTMENT
of

ODD-

Dollar value

Customers'

*41.4

39.2/

*1.483

i-—;.—Z

Total

purchases)—

Number of shares

Customers'

41.0

PERSONAL INCOME IN THE UNITED STATES

INDEX —1926-36

PRICE

ODD-LOT

by dealers (customers*

JNumber of

55.30

40.4

1.490

!;*

total
Total employer disbursements
Commodity producing industries.

Oct. 26

AND

MONEY IN CIRCULATION—TREASURY DEPT.

101

Oct. 20

100

DEALERS

»*

LIFE

Government
LOT

—

a *

■65.14

329

311

193

Bound-lot purchases by dealers—
Number of shares-—.

—

—Oct. 13

—

•

NEW SERIES

—

S. DEPT.

of LABOR-

Meat

—,

All commodities other than farm
Textile products

lighting materialsproducts

....

and

■

and

""
Z__ZZZ_~"

_ZZ_ZZZ_Z"

—

allied products-

176.7

*195.2

190.5

188.9

189.0

182.2

tlnclud.es

169.2

336

332

292

416

414

369

277

272

240

163.6

253,5
190.2

191.6

188.6

172.5

282.4

283.0

282.1

242.4

Oct. 23

165.1

161.5

257,4

260.0

157.0

157.1

138.8

138.7

Oct. 23

190.9

225.6

■

159.5

Oct. 23

190.5

Oct. 23

223.7

223.2

345.9

344-5

342.7

162.7

135.6

179.4

222.6

Jet, 23
Jet. 23

424,000 barrels of foreign crude

runs.

141.8

141.2

141.1,

Poultry

231

222

191

$485,532

$447,747

—-—

products
and eggs

—

293

—

177.7

♦

Oct. 23

Z——Z™ZZ

1
!

iNot available,

177.7

192.5

.Oct. 23
-

Building materials
Chemicals

III

foods

Metals and metal

•Bevised.

177.1

Oct. 23

Oct. 23
.Oct. 23

———_i—:
—

Lumber

.Oct. 23

_I~

—

J.-

—

Meats

Fuel and

—

——-a——

Livestock
jFoods

164

crops
__Z —.
and products______,—-

317

animals

Dairy

;

.Oct. 23

—

products.

200

204

—

____________—

Oil-bearing

Barm

175

181
294

crops

Livestock

All commodities

207

—————

T.uck'
'

WHOLESALE PRICES,
1926 = 100:

Fruit

—

218.3
•

132.3

REAL-

AND

"U.

INSURANCE

LOAN

—Month of

IN
NONFARM
FEDERAL SAVINGS

FINANCING

ESTATE

AREAS

August

CORPORATION

(000's omitted):

^Savings and loan associations
Insurance companies
Bank and trust companies.
Mutual

savings

banks—,

,—
—~——

———

Individuals
Miscellaneous

—

-lending institutions—..

;

1.562

—

Sales

235,388

Oct. 20

—_:

REPORTER

EXCHANGE—SECURITIES

-ex.

or.:-

39,785,000

PAYMENTS

August:

------

August

Service

Odd-lot sales

-J

f -'

*57.99

40.5

OF. COMMERCE)'- NEW ".SERIES—
of

Total

2.7C

■

Oct. 20

(tons)

AND

*1.685

Nondurable

2.87

Wage

PAINT

C
.

■Jiu.

rrc

3.10

•

ASSOCIATION:

Percentage of activity
Unfilled orders (tons) at end of period

OIU.

nan

*69.76

MANUFACTURERS'

—As of

'■>

'■W- 7r*'"-;;

■■/'XX-C}'-%

;

Durable

Oct. 30

(tons)

Inventories:

3.18

■

2.64

3.18

3.39

Oct. 30

—Oct

Production

-76.63

—

3.22

Orders received

$1,612

dividends

2.99

PAPERBOARD

*$64.56

values-

2.94

NATIONAL

396

AVERAGES:

DAILY

__Oct. 30

V-

-goods.

payments
payments

Total

.....

•-

58.4?.J
'

Policy

8,725,000

468.4'., r,

;

; .1.702

endowments

Surrender

yjr,

:::*

benefits—

Annuity

;
MOODY'S

,.r

goods

Disability

'474.2

Matured

■'

110.34

'r'

INSURANCE—BENEFIT

Death

115.63

8,786;000

9,247;000

—.

POLICYHOLDERS —INSTITUTE

111.25

110.13

23,1^8,000
23,184,000 ~ .XwwwQfu
20,714JOOO-- 20,-755,000-

i<t

sXX"

INSURANCE—Month

118.6(

113.31
109.06

—Oct. 30

;

Oct. 30

Oct

LIFE

115.2.
119.4)

\,Z

'■

„

Nondurable

DAILY AVERAGES:

.—Oct. 30

17.500.

17.500c

DEPT.

of September:

——

Durable

^0.755,000

HOURS—WEEKLY-

Hourlyiearnings—. \
All manufacturing

■V 15.800(

30;905

-Nondurable- goods,

16.000

,•

144,800*7
^-34,808-

,146,433

manufacturing
Durable' goods"

24.425-

—Oct. 24

■

•

^$&4;&odJJv®2i4,3oo

" 20,^714i000

All

24.200

—Oct. 24

at_^-——

Lead

24,200c

24.200c

__Oct. 24

—

* Durable" goods -Z—-Z—
Nondurable- goods

'ir**Y

\*r

722,004 J
754,119.-^i9€",v'-*1,049,283 j. r l,953;40t.*-V.i^3^
.3,341,544 :
-1,492,235'
87,604' Ci ^15
113,592

•

of-Sept. 29

manufrmtukng

All

'•

••

•

;

G^G^MEUCE):

(DEPT.

$216,700

month- of; September—!. *

LABOR—Month

Straits tin'(New York) at_—1-;

consuming establishments

HOUrS—rr—

j^/Export';refinery at—

DE¬

COM¬

Earnings—-^-—

Spinning spindles in pla.ee. pn .Sept. 29^_„Z '<■
Spinning spindles active"on Sept.
Active spindle hours,' (090's omitted) Sept.Active spindle hrs. per spindle In place Sept.

;

■

Month of

—

DEPT.

—

RUNNING

—

In public storage'as jpf. Sept,
Cotton' spindles active as pf Sept.-SO.'-----

& M.'J. QUOTATIONS):

.'x.

$69,975'.'-

establishmeRts ag pf Sept. 29In public storage as 6f '8ept.*29-iw^.--—*
Linters—Consumed- month bi SSpteiiftbjgr__z-

Electrol'yjtic popper-rf
r
v K:.
Domestle refinery:at^_—/

*'•'«*•. y

REPORTED

In consuming

$49.3
$40.0

$43.00

$15,254,000
;.v
'

9,998 ■>Mdt,
19,441'-'i-rr;*2o

omitted)

(000

Lint—Consumed

.$2^ 417,000:.

Hi#

-v——

CORPORATIONS

August

3.837

•

' $52.69 J

—

;

PARTMENT OF
v

"1,450,000

r—

6,562,51t

l;303,000

1,358,000

—

30'

4,775,000 v

$40,536

X", AVERAGE ESTIMATE —U.

COMPOSITE PRICES:

AGE

Finished steel (per lb.)__

4,^90,000

■:

<.7

Total—a.————————————————————

CASH

11,828,00(
977,001
• 160,501

154

' ;

OF COM¬
Month of Aug.'

Wholesale

17,215,00

321 '

;

—

FACTORY EARNINGS AND

b.r.

$5,855,000

;

•

—Oct. 25

;Vf 7 ,.'-648

:-,l;8%l,'D00

6,173;000:

782,000

$26,643,000

COTTON SPINNING

INSTITUTE;

(COMMERCIAL

FAILURES

*338

Oct. 20

Elwhrie. output .(in 000 kwh.).

43 "

...

:,4,099d)0G
Z,

$245,105,00'

10,940.000
833,000
136,000 r

10,965,000

RESERVE SYS-

—

$10,497,000

1,459,00(1

•

4,826,000-

NEW', SERIES
Cmiliionsr* of. "dollars):

TEBi—1935-39 AVERAGE == 100

67a

•■•'

•

$14,908,000

.v.—

—

Retail
'

41,164,000

•

INDEX—FEDERAL

SALES

STORE

SJEPARTMENT
::

liabilities

"5G

620

"Manufacturing..

Oct. 20

Bituminous coal and lignite (tons)-—- —
Pennsylvania anthracite (tons
—
Beehive coke (tons)——--—3—

;

—

^INVENTORIES,

MERCE

(U. iSi BUREAU OF MINES):

COAL OUTPUT
;•••*

——:

69
314

'-'89

liabilities

BUSINESS

'■

Total

COTTON

number

liabilities

Commercial

;r, it r 891,230
727,276

$335,092,000
227,640.000
107,452,000 7
66,288,000 J

$195,220,000
124,169,000

',z>

Retail -liabilities-

•.

$189,111,000
105,732,000

—

————

number

Wholesale

ZZZZZZy^

Total U. S.

Z_-:

———

MERCE

construction^—Oct.25
Private construction'
——--———Oct. 25
Public construction
--——.———Oct. 25
State and municipal—.—____—:—
———-—---Oct. 25
Federal
—-———Oct. 25

nervice

Construction

'■ V...

#}.A

RECORD:

ENGINEERING CONSTRUCTION

CIVIL

Pr. 864,310

868,683

number

147''
:

'333

44,002,000

101,190,000

886.6.48

Revenue:freight loaded (number of
Revenue

Total

i'«»

n<1

Ago

277

■

—

Year

136

•

Manufacturing

2,276,000

2,393.000

ASSOCIATION OF AMERICAN

20,299,000

8,396,000

150

-•

—

————————'

2,437:000
8,799,000*

number

Commercial

5,901,200

6,426,000

6,''53,200

Month

P.RADSTREET,
September:

Manufacturing

1,975,000

Construction

———-1--—-——Oct. 20

—

——

Month

INC.—Month

2,051,000

of that date;

are as

BUSINESS FAILURES—DUN &

102.4

PETROLEUM

of quotations,

cases

either for the

are

Latest

Retail
AMERICAN

or,

Ago

102.6

2,057,000

2,089,000

Nov. 4

castings (net tons)

ingots and

104.5

Nov. 4

■

Ago

102.9

that date,

Year

Month

Week

/ZzZ-Zkz;ZZz;.::'ZVZ:-

STEEL INSTITUTE:

month ended

production and other figures for the

cover

Dates shown in first column

month available.

Latest

AND

statistical tabulations

The following

Indications of Current

AMERICAN IRON

Thursday, November 1, 1951

$519,725'

132,080

131,756

158,327

293,493
83,283
227,046

272,781

*349,014

222,533

213*320

272,508

$1,370,201

$1,624,913

$1,448,967

89,011
215.586

112,357
212,982

Volume 174

Number 5060

The Commercial and Financial Chronicle

(1681)

Securities Now in Registration
New Registrations and
Abbott

33,000 shares for account of three selling
Price—$3 per share. Underwriters—H. L.
Emerson & Co., Inc., and Cunningham &
Co., both of
Cleveland, O. Proceeds—To company will be used to re¬
pay bank loans and for expansion program. Office—1545

Laboratories,

stockholders of record

preferred share for each 35

Nov.

common

rate

shares held;

East 18th St., Cleveland

one

capital expenditures and working capital.
Meeting—Stockholders will vote Nov. 13 to approve pro¬
Air Marshall

(par

cent).

Price—10 cents

share.

per

writer—Fi azee, Olifiers & Hillman, New York.
—For working capital: Office—12 East 44th

Under¬

Proceeds

Street, New

York.

■

100%;

Inc., New YorK.
Arcturus
Oct. 26

Dec.

Co.,
7

Fanner

100,000 shares of class A

option warrants by
cents per share. Price—56Y4 cents
Underwriter—None.
Proceeds—For general

1951, at

short-term

and

loans

for

working
75 West Street, New York, N. Y.

capital.

common

stock (par $5).
Price—At market (about $27.37V2 per
share). Underwriter—Ames, Emerich & Co., Inc., Chi¬
cago, 111.
Proceeds — To R. Edwin Moore, the selling
stockholder.
,'
J

Buckeye Mining Co., Trinity Center, Calif.

licly and 1,000,000 shares issued to O. H. Shoemaker in
consideration for two mining leases on placer ground.
Price—10 cents per share. Underwriter—None. Proceeds
—To purchase equipment.
/■
■,

Carolina Telephone &

Telegraph Co.

Fifth

par

($100

per

share). Underwriter—None.

reduce bank loans/
-

Central

(11/23)

Proceeds—To

Illinois Light

Nov. 27.
Central

Power

Co.

(

T, due Nov. 1, 1981.
Underwriter—To be deter¬
by competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; Coffin & Burr, Inc. and The First
Boston Corp. (jointly); Merrill Lynch, Pierce, Fenner &
Beane and White, Weld & Co.
(jointly); Salomon Bros.
& Hutzler; Blyth & Co., Inc. and
Kidder, Peabody & Co.
(jointly); Lee Higginson Corp.; Harriman Ripley & Co.
Inc.

Proceeds—To

Central

Oct. 31

Maine

repay

for each share of

share of
stock

new

shares.

its
.

right

common

preferred stock held and at rate of

common,

The

held.

waived,

stock at rate of five shares of
for each

seven

shares of

common

New

England Public Service Co. has
subscribe for 150,740 of the new

None.

Underwriter—To be determined by
competitive
Blyth & Co., Inc. and Kid¬

construction.

The

Baird

class

(11/20)
B

common

Co., Inc., Milwaukee, Wis.

William

Palmer

stock

Trust

and

Proceeds—

Rosalie

Invest¬

ments, Ltd., the selling stockholder.
Penn

Controls, Inc., Goshen, Ind.

(11/14)

Oct. 25 filed

100,000 shares of

Price—To

^supplied by( amendment. Underwriter—

common

Moseley & Co., Boston; Mass.

sion program and

stock

(par $2.50)-

Proceeds—For

expan¬

working capital.

Phoenix

Mortgage Co., Inc., Union City, N. J.
of notification) 500 shares of common,
stock (no par), 500 shares of $3 preferred stock
(no par>
and $200,000 of 8% 20-year debenture bonds.
Price—
Oct.

(letter

For stock $100 per share and for bonds at par in denomi¬
nations of $10 each.
Underwriter—Irving

15 for sub¬

Blum, Uniont

City, N. J.

Proceeds—For working capital.

Pittsburgh-Des Moines Co., Pittsburgh,
25 (letter of notification) 6,664 shares of

Oct.

Pa.
common;

stock
per

(110 par), to be offered to employees.
Price—$45share.
Underwriter—None.
Proceeds—For work¬

ing capital.
Queen of Hills Mining Co.
23 (letter of notification) 1,550,000 shares of com¬
stock (par five cents). Price — 10 cents per share,.

Oct.

mon

Testers, Inc., Houston, Tex. (11/20)
540,000 shares of common stock (par $1).

filed
be

supplied

amendment.

Underwriter

None. Proceeds
For equipment andl
working capital. Office—First Security Bank Bldg., Salfc
Lake City, Utah.

Underwriters—•

—

Sanitary Mattress, Inc., Washington, D. C.
(letter of notification) 100,000 shares of commoii
stock. Price
$1 per share. Underwriter—None. Pro¬
Oct. 22

—

ceeds

—

penses.

For

marketing, manufacturing and general
Office—1713 M St., N. W., Washington, D. C.

stock

Packing Co., Riverside, Calif.
of notification) 500 shares of commoa
(no par). Price—$250 per share. Underwriter—
(letter

Continued

page

erties.

Office—217

First

National

Bank

Bldg., Klamath

Oct. 24

Falls, Ore.

■

7-/.

•.

-■

v'.-

common

Co., Columbia, S. C.
Oct. 22 (letter-of notification)
925 shares of common
stock, to be offered to present stockholders for subscrip¬
tion and in exchange for outstanding debentures. Price—
At par ($100 per share). Underwriter—None.
Proceeds
—To retire debt. Office—1526 Main St., Columbia, S. C.

writer—Greenfield

& Co.,
Inc., New York.5 Proceeds—
exploration, drilling and development expenses, etc.,
and for working capital.
Office—Waynesburg, Pa.

For

Colorado Tungsten

Co., Twin Lakes, Colo.
(letter of notification) 74,500 shares of beneficial
interest (par $1). Price—30,000 shares to be sold at 50

;

Kohn &

Under¬

Oct. 26

cents per share and 44,500 shares at $1 per share. Under¬
writer—None.
Proceeds—For mining operations.

Colton

Chemical

Co., Cleveland, Ohio
Oct. 24 (letter of notification) 80,000 shares of common
stock (par $1), of which 47,000 shares are for account of

Loch-Lynn Gas Corp. (N. J.)
19 (letter of notification^)!,848 shares of

Oct.

stock

common

Price—$100 per share. Underwriter—
Proceeds — For drilling and
completion of well and for working capita! Office—15
Exchange Place, Jersey City 2, N. J. Offering now being
(par

$1).

Tellier & Co., New York.

made.

ex¬

Sieck

Oct.: 25

Fewel, the selling stock¬
Address—P. O. Box 277, Kingsburg, Calif.

Oil, Inc., Klamath Falls, Ore.
notification) 750 shares of capital stock.
Price—At par ($100 per share),; Underwriter— None.
Proceeds—For exploration and development of oil prop¬

;

Century Natural Gas & Oil Corp.
(letter of notification) 23,000 shares of
stock (par 10 cents). Price—25 cents per share.

Oct. 24 (letter of

der, Peabody & Co. (jointly); Coffin & Burr, Inc.; Harri¬
son Ripley
& Co. Inc.
Proceeds—To repay bank loans
new

common*

At market (estimated at

Co., Janesville, Wis.

88,277

Klamath

bidding.' Probable bidders:

and for

Pen

filed

ert
common

Proceeds—To Richard W.

holder.

—

Price—To be supplied by amendment. Under¬
writers—A. G. Becker & Co. Inc.,
Chicago, 111.; and Rob¬

Kingsburg Cotton Oil Co., Kingsburg, Calif.
Oct. 22 (letter of notification) 2,000 shares of capital
stock (par $1).
Price—$4.25 per share. Underwriter—

one

Price

(par $2).

White, Weld & Co., New York; Rotan, Mosle & Moreland, Galveston, Tex.; and Russ & Co., San Antonio, Tex.
Proceeds—To purchase outstanding stock of three com¬
panies. Business—Services oil well drilling industry.

Co.

315,146 shares of common stock (par $10)
to be offered for subscription by holders of 6% preferred
common

Oct.

Proceeds—For general corporate purposes.

Johnston

filed

stock and

Parker

Proceeds—

filed

Price—To

(par 50 cents).

per share),
Underwriter — Shearson, Hammill
Co., Los Angeles, Calif. Proceeds — To H. A, Bell, the
selling stockholder.
/,
v

(par $2.50).

Oct. 29

selling

$10.75

Steele, the selling stockholder.

111.

bank loans.

Power

stock

Manufacturing Co., Racine, Wis.
*
120,000 shares of common stock (par $1).
Price—$8.37 V2 per share. Underwriter—A. C. Allyn &
Co., Inc., and Shillinglaw, Bolger & Co., both of Chicago,

mined

two

Packard-Bell Co., Los Angeles, Calif.
25 (letter of notification) 9,000 shares of

Office—521

Co., No. Canton, O.
22"(letter of notification) 4,000 shares of

Oct 25

prop¬

Oct.

Jacobsen

Oct. 31 filed $7,000,000 first and general mortgage bonds,
series

machinery and develop the

Corp., New York. Proceeds—To

stockholders.

scription at rate of one new share for each 10 shares held
or represented by share warrants.
Price—To be supplied
by amendment.
Underwriter — None.
Proceeds — For
general funds and working capital.

Maine

Wibel.

be offered to stockholders of record Nov.

Proceeds—To repay bank loans
Bids—Scheduled to be opened

First Boston

Imperial Oil Ltd.* Torontd, Canada (11/15)
31 filed 2,713,384 shares of capital stock (no par)

Co.; Morgan Stanley & Co.; Lehman Brothers; First
Corp.; Equitable Securities Corp.; Merrill Lynch,

install

Paper Co., N. Y. (11/15)
shares of common stock (par $15>„
Price—To be supplied by amendment. Underwriter—The

Oct.

Boston

Proceeds—For construction program.

Oxford

Mines, Inc., Wallace, Ida.
(letter of notification) 168,000 shares of common
stock (par 10 cnets). Price—40 cents per share.
Under¬
writer—None. Proceeds—For mine equipment. Address
—Box 469, Wallace, Ida.

filed

and for new-construction.

John

addi¬

Oct. 26 filed 163,676

Television

Oct. 22

Office—Tarboro, N. C.

Pierce, Fenner & Beane.

and

one

erty.

Idaho Custer

Co., Peoria, III. (11/27)
$8,000,000 first mortgage bonds, due 1981.
Underwriters—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.;
Kuhn, Loeb
Oct.

Proceeds—To

Price—$18 per share. Underwriter—
Hornblower & Weeks, New York. Proceeds—To William

stockholders of record Nov. 23 at
share for each three shares held. Price—At

one

Haag

Ophir Gold Mines Co., Colorado Springs, Colo*
Oct. 22 (letter of notification)
6,000,000 shares of common*
stock.
Price—One cent per share.
Underwriter—None*.

Avenue, New York, N. Y.

stock

subscription by

rate of

rate

—

Hoover

Oct.

Oct. 30 filed 41,650 shares of common stock to be offered
for

Vernon

Co., Inc.; Byth & Co., Inc.; and Merrill Lynch, Pierce*
Fenner & Beane.

Office—Hatboro,

Curb Exchange through registered brokers.
To

12y* shares held. Price—To be sup¬
plied by amendment. Underwriters
Central Republic?

Gray Manufacturing Co., N. Y.
Oct. 24 (letter of notification) 1,000 shares of common
stock (par $5) sold to two key employees at $7.50 per
share. Price—At approximately $16.75 per share. Under¬
writer—None, but shares will be sold on the New York

Oct. 24 (letter of notification) 2,000,000 shares of capital
stock, of which 1,000,000 shares are to be offered pub¬

stockholders of record Nov.

tional share for each

Corp.
Oct. 23 (letter of notification) 200,000 shares of common
stock. Price—At par ($1 per share). Underwriter—None.
Proceeds—To establish and equip stores in Reno and Las
Vegas, Nev., Office—139 No. Virginia St., Reno, Nev.

;

Co., Morton Grove, III.
(letter of notification) 1,000 shares of

mon

'■

Electronic

General

Office—

& Gossett

Indiana Public Service Co.
(11/9)
•'
(letter of notification) 240,000 shares of cumu¬
lative preference stock (par $25) to be offered to com¬

Co., Hatboro, Pa.
(letter of notification) an undetermined number
of common shares (no par) sufficient to realize
$10,000.
Price—Between $9 and $10 per share.
Underwriter—
Proceeds—For working capital.

26- filed 200,000

Oct.

Offering—Expected week of Nov. 19.

Pennsylvania.

working capital and to
Office

Northern

Manufacturing Co.

Cleveland Corp., Cleveland, O., and A. C.
Co., Inc., Chicago, 111. Proceeds — To C. G.
President of the company, who is >" the selling

None.

For

Proceeds—To reimburse treasury for purchase oi!
Hydraulic Equipment Co. of Cleveland, O.

Fischer & Porter

Industries, Inc., N. Y.
(letter of notification) 295 shares of preferred
(par $1,000) and 295 shares of common stock (no
par).
Price—Preferred at par and common at 10 cents
per
share.
Underwriter—None.
Proceeds—To
repay

—

York.

Oct. 23

Proceeds

additional interest in tuna clippers.
28th St., San Diego
13, Calif. -

—

First

Raible,

Terminal, Inc., San Diego, Cali?»

Co., N. Y. (11/14-15)
shares of common stock (par $5).
Price
To be supplied by amendment.
Underwriters—•
Smith,, Barney & Co. and Dominick & Dominick, New

filed

stockholder.

■

Marine

New York Air Brake

Oct.

Allyn &

stock

Bell

purchase
;

corporate pur¬

notification) 26,650 shares of 6% cumu¬
stock (par $10) and 26,650 shares a£
stock (par $1) to be offered in units of one
each class of stock. Price—$11
per unit. Under¬

share of

for

The

Electronics, Inc., Newark, N. J.

Auburn Metal

Oct.

Proceeds—For general

•

Oct. 24 (letter of
lative preferred

(11/19-24)
350,000 shares of common stock (par $1).
Price—To be supplied by amendment. Underwriters—

Jersey.

Oct.

Offering—Scheduled

purposes.

Oct. 30

corporate purposes, to be used mainly to increase manu¬
facturing facilities.
Office—54 Clark Street, Newark,
New

construction

;

National

—

be issued upon exercise of

share.

per

Underwriter—Hill, Thompson
Proceeds—For working capital.

(letter of notification)

poses.

Inc., Arkansas City, Kansas
Oct. 23 (letter of notification) 2,218 shares of capital
stock. Price
At par ($10 per share).
Underwriter—
None. Proceeds—For working capital.
Office—20 West
Madison St., Arkansas City, Kan.

(par

stock

—1592 So.

Francisco, Calif.

Downing's,

Electric

Products, Inc. (N. J.)
(letter of notification); 14,000 shares of common
$1) and $250,000 of three-year convertible
notes.
Price—For stock $3.50 per share and for

writer—None.

Oct. 31, 1951.

Oct. 25

notes

employees only on an instalment basis. Price
Underwriter—Guardian Securities Corp., San

common

v-.

Allied

stock

35 shares to

Oct. 23

common

Corp.vof California

debentures

306 shares of 5%

—At par.

Finance

Corp., N. Y.

ADDITIONS*

$100,000 of 10-year 5%
(in various denomina¬
first preferred stock (par
Of latter, 271 shares will be offered to public andt
and

$20).

14, Ohio.

v.,

••

;

Oct. 26 (letter of notification.) 420,425 shares of
stock

tions)

INDICATES

(letter of notification)

subordinated

—For

ceeds—For

issue.

County Gas Co., Atlantic Highlands, N. J.
(letter of notification) 10,399 shares of common
stock (no par). Price—$14.25 per share.
Underwriter—
Woodcock, Hess & Co., Inc., Philadelphia, Pa. Proceeds

rights

Price—To be supplied by amendment.
Underwriter—A. G. Becker & Co. Inc.,
Chicago, 111. Pro¬

new

Mercantile Acceptance
Oct.

junior

Corp., Indianapolis, Ind.
Oct. 24 (letter of notification) 2,000 shares of 5% cumu¬
lative class A preferred stock, 1951 series. Price—At par
($100 per share).
Underwriter—None.
Proceeds—For
working capital. Office—111 North Pennsylvania St., In¬
dianapolis, Ind.

Consolidated

will expire Dec. 3.

posed

•

company and
stockholders.

Filings

Chicago, III. (11/16)
Oct. 25 filed 106,851 shares of 4% cumulative preferred
stock (par $100), convertible into common stock
prior to
Jan, 1, 1962, to be offered initially for subscription by
common

★ REVISIONS THIS WEEIf,

New York

Boston

Philadelphia

Pittsburgh

San Francisco

Private Wires to all

offices

Chicago

Cleveland
.

The Commercial and Financial Chronicle

None.

from page 37

Pla-

Calif.

D. C.
$10,000 of 6% collateral
(in denominations of $100 each), and due one
year after date of issue (payable at holder's option in
capital stock at rate of $1 per share). Price—At par. Un¬
derwriter—None. Proceeds—For administrative expenses.
Office—417 Evans Bldg., Washington, D. C.
Swormco,

Inc., Washington,

(letter of notification)

Brooklyn, N. Y.
Oct. 25 (letter of notification) 6,653 shares of common
stock to be offered to common stockholders.
Price—At
market (approximately $45 per share).
Underwriter—
None.
Proceeds—For capital improvements.
Hotel Corp.,

United

Radiator

States

Mich.

shares of preferred

(letter of notification) 5,085

Oct. 22

Detroit,

Corp.,

Price—At market (estimated at $44 pershare). Underwriter — None. Proceeds — For working
capital. Office—300 Buhl Bldg., Detroit 25, Mich.
stock (par $50).

Upshot Mines, Inc., Phoenix, Ariz.
22 (letter of notification) 50,000 shares of capital
stock.
Price—$1 per share.
Underwriter—None. Pro¬
Oct.

ceeds

—

To pay

royalties.

Office

1707 N. 19th Place,

—

Phoenix, Ariz.

(11/19-20)
Oct. 30 filed 1,250,000 shares of common stock (no par).
Price—To be supplied by amendment.
UnderwritersMorgan Stanley & Co. and Carl M. Loeb, Rhoades & Co.
in the United States; and A. E. Ames & Co., Ltd., and
Mills, Spence & Co., Ltd., in Canada.
Proceeds—To
selling stockholders.
Williams

Phosphate Corp.

Oct. 22 (letter of notification) 35,000 shares of common
stock: Price—At par ($1 per share). Underwriter—None.
Proceeds—For
and

Offices—Rexburg, Ida.,

working capital.

Alder, Mont.

Previous Registrations

and Filings

Inc., Jackson, Mich.
Sept. 12 (letter.of notification) 14,840 shares of common
stock (par $1), of which 4,840 shares are to be offered
to officers and employees of company and 10,000 shares
to the public. Price—To
to public $3.50 per share.

employees, $3.08 per share and
Underwriters—Stoetzer, Faulk¬
ner & Co. and Wm, C. Roney & Co., both of Detroit,
Mich. Proceeds—To Estate of Roy C. Weatherwax, the
selling stockholder.
Air Reduction

Co., Inc., N. Y.

(11/2)

Oct.
10 filed 248,805 shares of cumulative preferred
stock, 1951 series (par $100) to be offered for subscrip¬
tion by common stockholders of record Nov. 2 at rate of
one preferred share for each 11 common shares
held;
with rights to expire Nov. 19.
Price—To be supplied
by amendment.
Underwriters—Morgan Stanley & Co.

and Harriman Ripley & Co., both of New York. Proceeds
—For expansion program.
Meeting—Stockholders will
vote Nov.

creating an authorized issue of 500,000
shares of preferred stock (par $100) and/or increasing
authorized common stock from 3,000,000 to
5,000,000 shs.

offered

oil property.

three

filed

81,347 shares of $4.37^ cumulative con¬
vertible preferred stock (no
par) being offered for sub¬
scription by common stockholders of record Oct. 31 at
jrate of

one

stock

mon

preferred share for each 20 shares of com¬
held; rights to expire Nov. 14.
Price—$100

share.

per

Underwriters—The

First

Boston Corp. and
Proceeds'—For expan¬
Statement effective Oct. 31.

Smith, Barney & Co., New York.
sion of plant facilities.

Aluminium, Ltd., Montreal, Canada
Sept. 21 filed 372,205 shares of capital stock
being offered for subscription by stockholders
one

(no par)

Co., Ltd.

be available for

Oct.

new

aIer"Manaffers

£G'a

A. E. Ames &

~~ The First Boston Corp. and
Proceeds — For working capital

expansion program.

Bo?ch ?orp'.' sP"ngf'eld,

convertible

for

one

5% cumu¬
(convertible at rate
each two common shares). Price—At

Mass.

(letter of notification) 6,200 shares of common
$2)
Price—At market (about $16 per
share).
UnderwrRer-Npne. Proceeds-To F. William Harder of
New York. .Office—Main
Street, Springfield, Mass.
American Brake Shoe Co.
June 29 filed 50,000 shares of common
stock (no par) tc
be offered to certain officers
and key employees
through
a
stock purchase plan.
Price—To be not greater than
the market price on the date of the
offering, or no less
than 85% of such price.
Underwriter—None
Proceeds
—To be added to general funds.

Ltd.

Oil Co.,

(11/14)

shares of common stock (par $2—
Canadian), of which 700,000 shares are for the account
of the company and 650,000 shares for Pacific Petroleums
Ltd. of Calgary, Alberta, Canada.
Price—To be supplied
by amendment. Underwriters—In United States: Reyn¬
olds & Co. and Bear, Stearns & Co.
Proceeds—To liqui¬
Oct. 19 filed 1,350,000

date outstanding

September, 1952.

SLF°i
Md.

Dealer-Managers—Kidder, Peabodv
.ew York' and Alex- Brown & Sons, Baltimore,

Statement effective Sept. 5.

Bell & Gossett
Co., Morton Grove, III.
Sept. 27 (letter of notification) 1,000 shares of

(par

$26.25

Inc.,

per

share)

Chicago,

111.

Srije —At

market
Underwriter—Ames,
Proceeds—To

Emerich & Co.,
Clarence E. Pullum,

Vice-President, who is the selling stockholder

common

(approximately

for

$31

of preferred

expire

Nov.

14.

Underwriter—None.

share).
program.

and

to repay

($1

par

Nov. 2.

to be offered

employees of
Gas Storage Co.

Michigan

derwriter—Issue

bidding to Lehman Brothers.
additions and improvements.

share for

each

held; rights to expire

shares of

Corp., Brazil, Ind.

(letter of notification) 150,000 shares of com¬
(voting) stock (par $1). Price—$2 per share. Under¬

debentures

due

March

1982.

Underwriter—Hodson

Gulf

Deardorf Oil

Detroit

Co.,

Detroit,

' ^

Mich.

(11/14)

refunding mort¬
gage bonds, series K, due Nov. 25, 1976. Underwriter—
To be determined by competitive bidding. Probable bid¬
ders:

Halsey, Stuart & Co. Inc.; Collin & Burr, Inc. and
Spencer, Trask & Co. (jointly); Morgan Stanley & Co.;
The First Boston Corp.; Dillon, Read & Co. Inc.; Kuhn,
Loeb & Co.

Expected

Proceeds—For construction program.

opened

★Dobeckmun Co.,
Oct.

filed

Price—To

90,000

a.m.

(EST)

Bids—

Noc.^14.

Cleveland, Ohio

(11/14)
shares of common stock (par $1).

supplied

stock

Price—At Drinci-

Corp., Oklahoma City, Okla.*

Edison

Oct. 12

amendment.

Underwriter—

Sulphur Corp., Washington,

Bids—Expected
D. C.

(letter of notification) 29y,999 shares of common

Price—$1 per share.

(par 10 cents).

—Peter

Underwriter

Co., New York. Proceed^—To pur¬
chase all outstanding stocks of Compania de Azufre Vera

Co., Inc., New
York. Proceeds—To reduce debt and for
expansion, etc.
Office—165 Broadway, New York 6, N. Y.

forward its current construction pro¬

to the Spring of 1952, at which time company ex¬

pects to undertake additional financing.
to be opened at noon (EST) on Nov. 19.

Finance Co., Inc., New York
(letter of notification) $200,000 of 5% subordi¬

amount.

(11/19)

of first

1, 1981.

gram

Crown

pal

$10,000,000

with funds to carry

Fairman & Harris, Inc., Chicago, and
Gearhart, Kinnard & Otis, Inc., New York. Proceeds—
For working capital and
general corporate purposes.
Temporarily deferred.

nated

corporate

mortgage bonds, due
Underwriters—To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc.
(jointly); Stone & Webster Securities Corn.; Merrill
Lynch, Pierce, Fenner & Beane and White, Weld & Co.
(jointly); Salomon Bros. & Hutzler and Union Securities
Corp. (jointly); Lehman Brothers; Carl M. Loeb, Rhoades
& Co. and Lee Higginson Corp. (jointly).
Proceeds—To
pay off short-term loans and to provide the company
filed

Nov.

general

Proceeds—For

Gulf States Utilities Co.

writers—Sills,

Oct.

Office—50 Church St., New York.

Oct.

effective Oct. 24.

mon

64,000 shares of common stock

Underwriter—None.

Nov. 7.

Car-Nar-Var

New York

Union Co.,

7 filed

purposes.

Underwriters

Continental

Proceeds—To increase stock interest

Brothers ^Rubber

(par $10)
to be issued pursuant to an "employees' restricted stock
option plan." Trice — To be supplied by amendment.
Aug.

stock

common

with

Co. and for working
Office—Whitehead Road, Trenton 4, N. J.

Grand

Oct. 17 at competitive

Price—$102 per share.
—
Goldman, Sachs & Co. and Lehman
Brothers, New York. < Proceeds—For plant and equip¬
ment
replacements, and working capital.
Statement
on

an oversubscription
privilege.
Nov. 15. Price—Of class A com¬
share and of preferred, $100 per share.

held,

capital.

Proceeds—For property*
Statement effective Oct,-

preferred stock for each share held and
stock for each seven com¬

in- Whitehead

Unsubscribed shares

★ Continental Can Co., Inc.
Oct. 5 filed 104,533 shares of $4.25 cumulative convertible
second preferred stock (no par) being offered for sub¬
scription by common stockholders of record Oct. 24 at
one

Oct.

mon, $13.50 per
Underwriter—None.

and its subsidiary,
Price—$32 per share. s Un¬
on

of record

mon

company

awarded

was

(par $100) being offered to stock¬
15 on the following basis: One

preferred stock

Rights will expire on

share for each 10 shares

one

N. J.

share of class A common

one

Consumers Power Co., Jackson, Mich.
Sept. 20 filed 561,517 shares of common stock (no par),
being offered for subscription by common stockholders

Offering—Date not set.

of notification) 13,500 shares of class A
stock (par $5) and 1,000 shares of 5% cumula¬

holders
new

capital.

Rubber Co., Trenton,

(letter

common

tive

Proceeds—For drilling expenses, repayment

Goodall

Price—

Montreal, Canada

per

York.

expansion

750,000 shares of common stock. Price—
share). Underwriter—George F. Breen,

April 9 filed

bank loans.

of record Oct. 17 at rate of

5V2%
for subscription

Proceeds—For

Golconda Mines Ltd.,

share.

construction

by common stockholders at rate of one preferred share
for each 12 common shares held.
Price—At par ($5 per

Underwriters—Clore, Forgan & Co. and
The First Boston Corp., New York.
Proceeds—For new
per

South River, N. J.
notification) 50,000 shares of

(letter

convertible preferred stock to be offered

for each eight com¬
on

General Fuse Corp.,
Oct.

stockholders of record Oct. 30

held; rights to

bank

poses.

New

one

Underwriter—Paine, Webber. Jackson &

Oct.

rate

short-term

subscription by
shares

8 ..at

13.

by amendment.

planned.

basis

Nov.

record

general corporate purposes.

of advances and working

Sub¬

subscribed

Curtis, New York. Proceeds — To prepay senior notes
and other borrowings and for general corporate pur¬

-v

Oct. 17 filed $40,000,000 of general and

★Commonwealth Edison Co., Chicago, III.
Oct. 10 filed 1,716,500 shares of $1.32 cumulative con¬
vertible preferred stock (par $25) being offered first for

mon

★General Acceptance Corp. (11/8)
Sept. 28 filed $5,000,000 10-year 3 ¥2 % sinking fund de¬
bentures due Oct. 1, 1961.
(To be increased to S7,000,000
debentures with a 3%% coupon.)
Price—To be supplied

bank loan.

common

three

Proceeds—To retire

York.

and

Nov.

Sept. 26 (letter of notification) 2,500 shares of common
stock (par $1). Price—At the market (approximately $30
per share). Underwriter—G. H. Walker & Co. and Wm.
F. Dowdall & Co., both of St. Louis, Mo. Proceeds—To
Willard Cox, the selling stockholder.
Office—2950 No.
Market
St., St, Louis, Mo. " Offering—No immediate
offer

stock held.

Kuhn, Loeb & Co. Proceeds—For new, cons ..ruction and
equipment.
Bids—To be received at 12 noon (EST) on

Capital Transit Co., Washington, D. C.
Oct. 18 (letter of notification) 300 shares of capital stock
(par $100).
Price — At market (estimated at $54 per
share). Underwriter—Merrill Lynch, Pierce, Fenner &
Beane; Washington, D. C. Proceeds—To Doran S. Weinstein, the selling stockholder. Office—36th and M Sts.,
N. W., Washington 7, D. C.
'
Coca-Cola Bottling Co. of St. Louis

shares for each

two

common

★Florida Power & Light Co. (11/13)
(Jet.
10 filed $10,000,01)0 of first mortgage bonds due
Nov. 1, 1981.
Underwriter—To be determined by com¬
petitive bidding.
Probable bidders; Halsey, Stuart &
Co. Inc.; Carl M. Loeb, Rhoades & Co. and Bear, Stearns
& Co. (jointly); The First Boston Corp.; Harriman Rip¬
ley & Co., Inc.; Shields & Co.; White, Weld & Co.; Leh¬
man Brothers; Merrill Lynch, Pierce, Fenner &
Beane;

Office—2305 East Belt St., San Diego 2,

each five

shares; the offer to expire

loans

Canadian Atlantic

basis of

each

for

stockholders

New

Co.,

San Diego, Calif.

Oct. 1, 1966. Underwriter—
Wahler, White & Co., Kansas City, Mo. Proceeds—For
general corporate purposes. Price—At 100% and ac¬

value

par

receive

will

common

sinking fund debentures due

Calif.

stockholders

shares of $1

preferred share for each twenty common shares held;
with an oversubscription privilege; rignts to expire on
Nov. 23.
Price—$50 per share.
Underwriter—Alien &

notification) $300,000 of 6% convertible

Oct. 4 (letter of

common stock (par 25
3,234,303 shares are to be

★Fedders-Quigan Corp., L. I., N. Y. (11/8)
Oct. 19 filed 62,041 shares of 5% cumulative preferred
stock, series A (par $50—convertible into common stock
prior to Nov. 1, 1961) to be offered for subscription by

convertible preference
be supplied by amendment.
Underwriter—Kidder,
Peabody
&
Co., New York.
Proceeds—For additions and improvements to plant and
equipment. Offering date postponed.

Sept. 24 (letter of notification) 175,000 shares .of common
stock (par 10 cents). Price—40 cents per share. Under¬
writer—None.
Proceeds—For operating expenses.
Of-,
fice—219 Fidelity Building, Oklahoma City, Okla.

common

For

(par $100). Price—To

★American Investment Co. of Illinois
Aug. 16 filed 167,105 shares of $1.25 cumulative convert¬
ible preference
stock, series A (par $25), being offered
in
exchange for common stock of Domestic Finance
Corp., Chicago, 111. on basis of one American share for
Domestic

per

Burlington Mills Corp.
filed 300,000 shares of

March

stock (par

per

March 5

California Tuna Packing Corp.,

Ltd., Toronto, Canada

4,312,404 shares of

a warrant to purchase one additional share at $1.25
share—Canadian—within 18 months. Price—55 cents
share—Canadian.
Underwriter—None.
Proceeds—
working capital.
.<"■
V.

for,

preferred stock

($100 per share). Underwriter-City Securities Corp.,
Indianapolis, Ind.
Proceeds—To repay bank loan and
for working capital. Office—First National Bank Bldg.,
Seymour, Ind.

stock

filed

scribers

par

rate of

of record
share for each 10 shares
held;
rights to expire on Nov. 8. Price —$65
(Canadian) per
Oct. 19 at rate of

Thursday, November 1, 1951

cents—Canadian); oi which

of notification) 3,000 shares of

Oct. 19 (letter

lative

Oct.

Inc., Seymour, Ind.

Buhner Fertilizer Co.,

held; rights to expire

★Allegheny Ludlum Steel Corp.
Oct.

Eureka Corp.,

of contributions in oil property
interests
(1952 fund) in amounts of $15,000 or more.
Underwriter—None. Proceeds—To acquire and develop

Acme Industries,

Blyth & Co., Inc., New York and Cleveland. Proceeds—
To repay loans and for general corporate purposes.

Madison, N. J.

crued interest.

Western Leaseholds, Ltd., Canada

Inc.,

Sept. 27 filed $2,000,000

trust notes

Towers

Davidson, Hartz, Hyde & Dewey,

and

indebtedness. Office—3660

Proceeds—To pay

centia St., Riverside,

Oct.

Oklahoma City, Okla.,

Blackwood & Nichols Co.,

Continued

(1682)

Morgan &

Cruz, S. A., and for working capital.Vnecticut Avenue, N: W.--Washington,
•

Office—1346 ConD. C. Offering—

Expected at any time.
Hathaway

(C. F.)

Co., Waterville, Me:

(letter of notification)
12,000 shares" of 5.8%
cumulative preferred stock (par $25), with common stock
Oct.

purchase

warrants

Underwriter—JL M.
ceeds—For

attached.

Price—Expected

Payson & Co., Portland. Me.

working capital.

Hein-Werner Corp., Waukesha,

' 1

par.

Pro¬

'•

Wis.

9,190 shares of common
Price—At market (approximately $10.50
per share).
Underwriters—Northern Trust Co., Chicago,
111., and The Marshall Co., Milwaukee, Wis.
Proceed^—
To E. G. Bach, Executor of the Estate of I. Hadcock.
, Oct.

(letter of notification)

stock (par $3).

Helio

July

Aircraft Corp.,

Norwood,

Mass.

(letter of notification) 7,750 shares of nonpreferred stock (par $1) and 7,750 shares

cumulative

Volume 174

Number 5060

The Commercial and Financial Chronicle

(1683)
of common

stock

(par $1) to be offered in units of

preferred

Price—$25

and

one

W. F. Martin, Inc.,

stock.

common

unit

($20 for preferred and $5 for com¬
mon). Underwriter—None. Proceeds—For development
and promotion expenses.
Office—Boston Metropolitan
Airport, Norwood, Mass.
per

NEW ISSUE CALENDAR

stock

mon

tor

(no par).

Land,

cumula-

424 shares of

Inc.,

Air

r1.

Homasote Co.,
Oct. 22
(ietter of
cumulative

($10

Trenton, N, Y.
notification)

30,000

Consolidated

Inland

Steel

filed

Co.

11:30

Freightways,

^Proceeds—For working capital.

stock

;

Co., 11

Lowell

par)
issuable

•

Gas

plant.

Oct.

1951

Debentures
Preferred'
^

Olsen,
Silex

13,

Inc.
Co.

Ltd., Calgary, Canada

(EST)

Bonds,

„e__.

November

a.m.

14,

Detroit Edison Co., 11

Dobeckmun Co.

writers—None.

(EST)

a.m.

expire

i\ov. 9.

November

Metals &

shares-of 4%

per share and accrued dividends,
providing at least 65,000 shares of 4J/2% preferred stock
accept exchange offer.

Lawyers Title Insurance Corp.,

15,

one

.To
Common

Common

Bonds

Price—At par ($5 per share). Under¬
Proceeds—To enlarge capital and for in¬

Manufacturing

upon exercise of options heretofore
officers and employees.
Price — $19.35 per
share.
Underwriter—None.
Proceeds—For general cor¬
porate purposes.
r ; ' '
V

★Long Island Lighting Co.
Oct. 3 filed 100,000 shares of cumulative
preferred stock,
series A (par $100).
Underwriters—To be determined
by competitive bidding. Probable bidders: Blyth & Co.,
Inc., and First Boston Corp. (jointly); Kidder, Peabody
& Co.; Harriman
Ripley & Co. Inc.; Smith, Barney &
Co.; W.-C. Langley & Co. and Glore, Forgan & Co.
(jointly). Proceeds—From sale of preferred stock, to¬

Loven
8

stock.

Chemical

Proceeds

South Pine
Lowell
Oct.

Statement effec¬

Gas

filed

(which

—

capital.

had

shares of 6%

been

offered

Office

—

244

Central

cumulative

holders

preferred

the

out¬

preferred

stock

and

reduce construction notes.

MacMillan

(H. R.)

Export Co., Ltd.,

Vancouver, B. C.
Sept. 26 filed 2,281,582 shares of class B capital stock
(no par) to be offered in exchange for stock of Bloedel

Common

1951

working capital.
Calif.

for

1951

Telephone & Telegraph Co.

subscription by
one

common

share of

Pan American

(11/20)

and

preferred stockholders

common

stock for each nine

Milling Co., Las Vegas, Nev.

Jan. 24 filed 200,000
Par ($1 per share).

Bonds

shares of

common

stock. Price—At

Underwriter—None.

Proceeds—To

purchase machinery and equipment, to construct a mill
Mexico and for general corporate
purposes.
State¬
ment fully effective Aug.
29, 1951.
in

Welch,* Ltd.

the following basis:

44.54596

shares for each ordinary share of
Bloedel; two-fifths of
a share for each
preference share of Bloedel. Following
such acquisition, name
of MacMillan
tive Oct. 17.

will

■

-\v:'

★ Maracaibo Oil

Exploration Corp.
Sept. 20 filed 49,500 shares of capital stock being offered
stockholders at rate of
Oct.

24, with
rights to expire Nov. 21.
writer— None.

one

share for each nine shares

oversubscription privilege;
Price—$9 per share.
Under¬
Proceeds
To acquire new properties
—

corporate purposes.

Statement effective

Miles

Laboratories, Inc., Elkhart, Ind.
(letter of notification) 6,000 shares of common
stock (par $2).
Price—Maximum, $18 per share; mini¬
mum, $16.50 per share.
Underwriter—Albert McGann
12

Co.,

Inc.,

Paramount

Fire Insurance Co., N. Y.
(letter of notification) 50,000 shares of common
stock (par $10) to be offered for
subscription by stock¬

Oct. 23

holders of record
each

two

91,674%

South

Estate of Rachel B. Miles.

B^fid, ,Ind.
■

Proceeds—To
>

Laboratories, Inc., Elkhart, Ind.
Sept. 5 (letter of notification) 2,000 shares of common
stock (par $2). Price—$16.75 per share. Underwriter —

Oct.

out of

held.

rate

one

new

share for

(Transamerica
Corp.
owns
100,000 shares outstanding); rights will
'

expire

None.

Proceeds—For working capital.

17.

Miles

St.,

common and/or preferred stock held.
Price—
At par ($100 per share).
Underwriter—None.
Proceeds
—To reduce bank loans and for
plant improvements.

Equip. Trust Ctfs.

Virginia Electric & Power Co.-

Securities

Mission

shares of

1951

10,

Office—1337

Pacific Telephone &
Telegraph Co.
Oct. 19 filed 633,274 shares of common stock to be offered

Bonds

Corp., San Francisco, Calif.

bidding.
Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.; Lehman Brothers and Union Se¬
curities Corp. (jointly); White, Weld & Co.
Proceeds—
To repay bank loans and for new construction.
Bids—
Expected to be received on Nov. 20.
>
'

Equip. Trust Ctfs.

December

Oct.

Secretary, who is the selling
offering is planned.

Oct. 19 filed $30,000,000 30-year debentures due Nov.
15,
1981.
Underwriters—To be determined by competitive

1951

Light Co

December

Scott,

No general public

in the ratio of

Stewart &

Office-

San Francisco,

-Equip. Trust Ctfs.

;

Oct.

outstanding

Erie RR.

and for general

stock at rate of IVz
with rights expiring
Oct. 5, 1951): none subscribed for.
Price—At par ($25
per share).'
Underwriter—To be disclosed by amend¬
ment (probably Coffin &
Burr, Inc., New York). Pro¬

for_ each share held by them

Arthur

ceeds—For

Debentures

1951

November 27,
Illinois

standing 12,000 shares of preferred

retire

Carolina Telephone & Telegraph Co

Central

and, for expansion program.
Street, Elizabeth City, N. C.

Pacific Telecoin

Class B

November 23,

held

(11/8)

per

Pacific

New York

Sept. 14 (letter of notification) 59,000 shares of common
stock (par 10 cents). Price—50 cents
per share.
Under¬
writer—Gearhart, Kinnard & Otis, Inc., New York. Pro¬

.Common

November 21,

ceeds—To

Inc.-. 1:

Pacific Telephone & Telegraph

Co., Lowell, Mass.

30,000

expansion

acquire, explore and develop

Norris Oil Co.,
Bakersfield, Calif.
Aug. 10 (letter of notification) 500 shares of capital stock
(par $1). Price—$4.75 per share.
Underwriter—WaLston, Hoffman & Goodwin, Bakersfield, Calif. Proceeds

.....Common

...

changed to MacMillan & Bloedel, Ltd. ~ Statement effec¬

California

For working
St., Newhall, Calif.

1951

Bonds

Export

(letter of notification) 200,000 shares of capital
Price—At par , ($1- per share).
Underwriter—

None.

stock

(EST)

Texas & Pacific Ry._—

Oct. 3 filed 524,949 snaies of common stock
(no par)
being offered for subscription by common stockholders of
record Oct. 24, 1951, at rate of one new share
for each
seven shares
held; rights expire Nov. 8.
Price—$13 per
share.
Underwriters—Blyth & Co., Inc. and The First
Boston Corp., New York.
Proceeds—To reduce short-

Oct,

Common

noon

Johnstoii' Testers,

Statement ejfective Oct. 24.

borrowed for construction.
24.

Co.___

Co.,

Leaseholds, Ltd

★Long Island Lighting Co.

Oct.

Northern Illinois Corp., DeKalb, III.
Sept. 13 (letter of notification) 5,138 shares of common
stock (no par). Price—At market (not less than
$9 per
share). Underwriter — None. Proceeds
For working
capital.

1951

% Parker Pen Co.__

gether with proceeds from proposed sale of about
$25,000,000 of first mortgage bonds in December,
1951, will
be used to retire
$14,493,400 of bonds of former subsid¬
iaries, to pay off bank loans, and for construction

term loans

19,

November 20,

Western

issuable

granted to

tive

—

Gulf States Utilities

Aircraft

employees of company and its sub¬
together with 19,370 shares previously regis¬

program.

pur¬

Proceeds—To;

notes

stockholder.

.—Preferred

November

able upon exercise of certain options
granted to a selected

and

corporate

subscription by stockholders of
with rights expiring Nov. 10. Price—At
share). Underwriter—None. Proceeds—

Oct. 15,

retire

—To

November 16, 1951

Fanner

sidiaries,

general

Underwriter—None.

Business

South Road

Common

Abbott Laboratories

share for each

group of officers and
tered

funds).

($100

par

....^...Common

Western Maryland R,y._

60,000 shares of capital stock (par $5), to
at rale of

record

1951

Chemicals Corp.

Richmond, Va.

Corp.
filed 27,000 shares of capital stock (par
$1), issu¬

Oct. 17

common

Offsets, Ltd., Toronto, Canada

program.

Equip. Trust Ctfs.

Silver Buckie Mining Co

vestment.

Lockheed

Proceeds—For

repay loans from Cliff Petroleum Co. and for

nine shares held.

Office—6504 Frankstown Ave¬

Norfolk & Carolina
Telephone & Telegraph Co.
Oct. 11 (letter of notification)
2,000 shares of common
stock to be offered for

Pittsburgh & Lake Erie

preferred stock at $107

Pa.

systems

mining properties in Canada.

Oxford Paper

writer—None.

Pittsburgh,
antenna

Common

Controls, Inc

Underwriter—

.maximum vof 37,424

to stockholders

Common

agreed to

filed

Co.,

Office—79 Cliff Street, New York, N. Y.

(Canadian

Bonds

Common

„

Imperial Oil, Ltd

Preferred
..Common

Blyth & Co., Inc., New York.
Proceeds—To retire un¬
exchanged 41/2% preferred stock.
Underwriters have

be offered

new

Oct. 8 filed 500,000 shares of common stock
(no par) to
be offered for
subscription by stockholders at rate of one
share for each five shares held.
Price—$2.25 per share.

(Dar

$100), being offered in exchange
for outstanding 4.%% cumulative
preferred stock on a
share-for-share basis, plus cash payment of 37 xk cents

Oct.

Penn

102,424 shares of 4% cumulative convertible

New York Air Brake Co

Corp.

purchase

installation

Convertible into

before Jan. 1, 1962
Price—At par ($10 per

Plumbing Stores Corp.
(letter of notification) $123,500 of 20-year 3^2%
income notes due Oct.
1, 1971.
Price—100%.
Under¬

Nickel

;

Canadian Atlantic Oil Co., Ltd

and for other corporate purposes.

tne offer to

10,000

on or

(par $1). Price—$31.25 per share. Underwriter—
Blyth & Co., Inc., Los Angeles, Calif. Proceeds—To Lloyd
A. Johnson, President, who is the
selling stockholder.

1951

(EST)

opment work,

per share:

notification)

National

Common

—

of Longview, Wash.
Proceeds—To drill well,
for lease acquisitions and
properties held pending devel¬

stock

one

Oct. 15

Common

Associated Telephone & Telegraph Co.

company,

Oct. 5 filed

—

National Motor Bearing Co., Inc.
(letter of notification) 3,200 shares of

1951

shares of common stock.
Price—At
share).
Underwriter—None, but sales will
be made by James H.
Nelson, promoter and a director of

preferred

per

★ Kimberly-Clark

units

Sept. 26

Preference

Great Northern Ry., noon
(EST)-.—Equip. Tr. Ctfs.

Oct.' 3 filed 500,000

($1

working capital.
Pittsburgh 6, Pa.

poses.

par

(letter

and for

1951

Florida Power & Light Co., noon

share (conversion right expires on Nov. 23).
Price—To underwriter at par.
Underwriter—The First
Boston Corp., New York.
Proceeds—To reimburse com¬
pany for money expended for redemption of unconverted

Co.,

Proceeds

Price—$101 per unit.
To purchase land and

stock

November

per

& Gas

offered

stock, share for share,
(redeemable at $12 per share),
share).
Underwriter—Graham

nue,

vertible preferred stock called for
redemption on Nov. 24

Key Oil

share.

Office—123 West Main St., Missoula, Mont.
(R. D.) Co., Inc., Pittsburgh, Pa.

Proceeds—For

Trust Ctfs.

common

-Seaboard Air Line RR.

November

$1)

common

cumulative convertible preferred stock.

Preferred

Co._!_

(par
one

Underwriter—None.
erect

.....Common

Northern Indiana Public Service Co.^

stock

preferred and

(EST)-Bonds

a.m.

Fedders-Quigan Corp_

★ Iowa Southern Utilities Co.

portion of 5V2% preferred stock.'

common

Morrow

(no

...

Proceeds—

Sept. 26

..Common

Bonds

November

•

Oct. 5 filed 76,478 shares of common stock
(par $15) re¬
served for conversion of 38,239 shares of 5Vj>%
con¬

$30.75

Inc

(EST)

a.m.

' Proceeds—For

capital

Underwriter—None.

Office—314 National Bank Bldg., Pitts¬

Montana Hardwood
Co., Inc., Missoula, Mont.
(letter of notifictaion) 2,970 shares of 6% re¬
deemable preferred stock (par
$100) and 2,970 shares of

1951

Standard Oil Co.—

issuable upon exercise of stock option
<•
inder the company's proposed stock option plan. Price—,v.
To be 85% of current fair market value of the stock.
;

General Acceptance Corp.____

principal amount.

For equipment.

Preferred

Rockland Light & Power

250,000

—At

1951

Inc._

bonds to be offered to stockholders in ratio of

$300 of bonds for each share of stock held as of record
June 30, 1951, with an
oversubscription privilege. Price

par

gage 5%

Denver & Rio Grande Western RR.

Price—At

Co., Pittsburg, Kansas
(letter of notification) $225,000 of second mort¬

burg, Kansas.

redemption of outstanding preferred stock ($41,900) and
working capital (a maximum of $258,100).
Aug.

Co.

November

•'y.'-V

.V.

preferred stock.
Underwriter—None.

1951

Offering—Indefinite.

Products

vrv-.

convertible

share).

per

Reduction

Kansas

City, Mo., will act as
dealer. Proceeds—For plant improvements and
general
corporate purposes. Office—412 W. 39th St., Kansas City,
Mo.

November

com-

Price—For preferred, at par; and
per share.
Underwriter — Prugh,,

$20

common,

Combest

and

Mineral

Northern Pacific
Ry., noon (EST)_-Equip. Tr. Ctfs.

Foods, Inc., Kansas City, Mo.
Aug. 1 (letter of notification) 89 shares of 6%
(par $100)

Elkhart, Ind. Proceeds—To Georgia

Walker, the selling stockholder.

Oct.

November

Hex

tive preferred stock

Nov. 21.

Price—$30 per share.

Underwriter—

Parking, Inc., Boise, Ida.
Sept. 24 (letter of notification) 12,500 shares of common
stock and $25,000 of 5% debenture notes. Price—At par
($10 per share) for stock and notes in units of $500 each.
Underwriter—None.

ity.

Proceeds—To erect parking facil¬
Office—1002 Warm Springs Avenue, Boise, Idaho.

Peabody Coal Co.
March

itock

filed

(par $25).

160,000 shares of 5M>%

prior preferred
Price—To be supplied by amendment

Underwriter—A. C. Allyn & Co.,
ceeds—For construction program.

Inc., Chicago, 111. Pro¬
Offering—Indefinitely

postponed.
•-

Continued

page

The Commercial and Financial Chronicle

(1684)

,r.

Thursday, November 1, 1951

Continued

from

page

Sicks'

★Phoenix-Campbell Corp., N. Y.
'
"
Sept. 20 filed 203,000 shares of capital stock (par $1)
and
100,000 warrants.
(Oct. 22 filed by amendment
109,650 shares of which 100,000 shares will be offered
to public and 9,650 shares will be reserved for exercise
of warrants b,y brokers and dealers).
Price—$10 per
share.
Underwriter—Morris Cohon & Co., New York.
Proceeds—To acquire an interest in so-called "special
situations" and for working capital.

Industries Corp., N. Y. (11/8)
Oct. 12 filed 1,465,167 shares of common stock (par 10£)
to be offered to holders of outstanding common stock of
National Power & Light Co. at rate of one-half share of
Phoenix Industries Corp. (name to be changed to Na¬
tional Phoenix Industries, Inc.)
for each N. P. & L.
common share held as of Nov. 8, with an oversubscrip¬
tion privilege; rights to expire Nov. 29.
Price — To be
supplied by amendment. Underwriter—Reynolds & Co.,
New York.
Proceeds—To pay expenses of existing busi¬
ness, to pay final instalment of purchase price on shares
•of Nedick's, Inc., and for acquisition of other businesses.
★ Phoenix

Pittsburgh Plate Glass Co.
June 27 filed 450,000 shares of common stock (par $10)
to be offered to certain employees of the company and
its subsidiaries under a stock option plan.
Price—At
35% of the market price on the New York Stock Ex¬
change at time options are granted. Underwriter—None.
^Proceeds—For

Brewing Co. (Ore.) at rate of

share of Sicks'
(Ore.) stock.

one

Drinkwater,

President.

Agreement provides that,

upon

Seattle stock for each three shares of Sicks'

working capital.

request of Mr. Drinkwater, the company agrees to regis¬

Underwriter—None.

ter

★Silex Co., Hartford, Conn. ^(11/13)
19 (letter of notification) 53,750 shares of common
(no par), to be offered for subscription by com¬

Oct.

stock

stockholders of record

mon

share.

per

ing capital.

about Nov. 13.

Price—

Underwriter—None. Proceeds—For work¬
Office—80 Pliny Street, Hartford, Conn.

the

optioned shares to the end that he may be in
a position promptly to exercise his
rights under the op¬
tion and to transfer and dispose of any of the shares ac¬
quired thereunder which he may wish to dispose of. (The
stock

sold

$14.50

per

effective Oct. 24.

Skyway Broadcasting Co., Inc., Ashvilie, N. C.
Sept. 10 (letter of notification) 6,000 shares of common
stock.
Price—$50 per share. Underwriter—None. Pro¬
ceeds—For construction and operating capital for a pro¬
posed television station.
Snoose

Mining Co., Hailey, Idaho
(letter of notification) 1,000,000 shares of

July 19

com¬

stock.

Price—At par (25 cents per share). Underwriter—E. W. McRoberts & Co., Twin Falls, Ida. Proceeds
mon

—For development of mine.
Sonic Research

' v;

*■

■

Oct. 8

(letter of notification) 9,000 shares of common
(no par).
Price—$20 per share.
Underwriter—
None. Proceeds—For working capital. Office—15 Charstock

the New

Proceeds—

Statement

Western Reserve Life Insurance Co.

June 12 (letter of notification) 10,000 shares of common
stock (par $10) to be offered for subscription by present
stockholders at rate of one share for each two shares held.

Price—$20 per share.
Underwriter—None. > Proceeds—
financing expansion program. Office—1108 Lavaca
Street, Austin, Tex.
For

Wilcox-Gay Corp., Charlotte, Mich.
Sept. 13 (letter of notification) 165,250 shares of common
stock (of which 82,625 shares represent stock to be issued
on exercise of stock
purchase warrants issued in con¬
nection with sale of 110,000 shares on or about Oct. 24).
Price—At par ($1 per share).

Underwriter—None.

ceeds—For working capital.
Wizard

Corp., Boston, Mass.

■„,,//,/

Silver Buckie

Mining Co., Wallace, Ida. (11/15)
Sept. 25 (letter of notification) 290,000 shares of com¬
mon stock (par 10 cents).
Price—32V2 cents per share.
Underwriter—Standard Securities Corp., Spokane, Wash.,
and Kellogg, Idaho. Proceeds —1 To six selling stock¬
holders.
Address—Box 469, Wallace, Idaho.

Sept. 17

York Stock Exchange.) Underwriter—None.
For working capital
($9.37y2 per share).

Pro¬

///";.V"'

Boats, Inc., Costa Mesa, Calif.

Oct. 10 (letter of notification) 300,000 shares of common
Price—At par ($1 per share). Underwriter—None.

stock.

Proceeds
for

For purchase of building and
property and
working capital.
•
"
■
■
:
—

don St., Boston, Mass.

Prugh Petroleum Co., Tulsa, Okla.
Sept. 25 (letter of notification) 60,000 shares of common
.stock being offered for subscription by stockholders of
record Oct. 1, on?basis of any number of shares not to
exceed present holdings; rights to expire Nov. 15. Price
—At par ($5 per share). Underwriter—None, but Prugh,
Combest & Land, Inc., Kansas City, Mo., will act as
agent.
Proceeds—To develop properties and retire in¬
debtedness.
Office—907 Kennedy Bld.g., Tulsa 3, Okla.

Southwestern Associated Telephone Co.

June

15, filed, 17,500 shares of $5.50 cumulative pre¬
ferred stock (no par). Price—To be supplied by amend¬
ment. Underwriters—Paine, Webber, Jackson & CurtiB
and

Stone & Webster Securities Corp., both of New
York, and Rauscher, Pierce & Co., Inc., Dallas, Texas
Proceeds—To retire $1,500,000 of bank loans and the
balance

added

general corporate funds.

Postponed.

Offering

—

Associated Telephone & Telegraph Co*. (11/14)
will be received up to 11 a.m. (EST) on Nov. 14
by the Office of Alien Property, 120 Broadway, New

Bids

York 5, N.

Y., for the purchase from it of 5,201 shares of
$6 cumulative first preferred stock (no par), being 17.4%
of that issue outstanding.
'
/
,

★ Pubco Development, Inc., Albuquerque, N. M.
Sept. 18 filed 605,978 shares of common stock being
offered for subscription by stockholders of Public Serv¬
ice Co. of New Mexico between Jan. 1, 1955 and March
31, 1955 at rate of one share of Pubco Development for
oach Public Service

share held of record Oct.

common

share). Underwriter—
Public Service in gen¬
Business—To prospect for oil and gas. State¬

par ($1 per
Proceeds—To be used by

Price—At

I, 1951.
None.

eral fund.

ment effective Oct.

11.

Sept.

filed

249,942

cumulative

Glore, Forgan & Co. Proceeds—For plant additions and
improvements and to reimburse treasury for expendi¬
tures made for such purposes and for retirement of longdebt.

Offering—Postponed.'
Life

Insurance Co., Providence, R. I.
notification) 2,000 shares of capital stock
(par $25).
Price—$75 per share.
Underwriter—None.
Proceeds
For working capital.
Office — Turks Head
Bldg., Providence 1, R. I.

Oct. 9 (letter of

—

Ritchie Associates

Finance

Corp.

Sept. 18 /(letter of notification) $200,000 of 6% 15-year
•debentures, dated July 1, 1951, to be issued in multiples
of $100. Underwriter—Cohu & Co., New York.
Proceeds
—To retire debts and purchase building.
Church St., Frederick, Md.
Bobbins

Mills,

Inc.,

New York

Office—2 East

rate of

stock

—$50

per

New

h^ld; rights to expire

Oct. 30. Price

share.

Underwriter—Dillon, Read & Co. Inc.,
Proceeds—For working capital.
Statement

York.

effective Oct.

16.

★Rockland Light & Power Co. (11/7)
Sept. 21 filed $6,000,000 of first mortgage bonds, series D,
due 1981.
Underwriters—To be determined by competi¬
tive bidding. Probable bidders:
Halsey, Stuart & Co.
Inc.; The First Boston Corp.; Merrill Lynch, Pierce, Fen-

Specialized Products Corp., Birmingham, Ala.
Sept. 26 (letter of notification) 50,000 shares of common
stock
Price—$1 per share. Underwriter—Carlson & Co.,

Birmingham, Ala.

Proceeds—For operating capital and
Office—2807 Central Ave,, Birming¬

Standard Oil

Co.

& Beane, Kidder, Peabody &
Co., Union Securities
Corp. and White, Weld & Co. (jointly); Lehman Brothers
and A. C. Allyn & Co/
(jointly); Stone & Webster Se¬

of record Nov. 7

at rate of

Vice-President, who is the selling stockholder.
Toklan Royalty Corp., Tulsa,

Okla.
(letter of notification) 10,000 shares of common
(par 70 cents). Price—At market (estimated at
$6.75 per share)/
Underwriter-—None.
Proceeds—To

Oct. 10
stock

Bryan,

President,

construction

Nov.

Bids—To

bank
be

loans

received

and
on

(EST) at Bankers Trust Co., 46 Wall
New York, N. Y.

Street,

Russell

Oct.

program.

a.m.

Manufacturing Co., Middletown, Conn.

(letter of notification) *13,321 shares of common
stock (no par) being offered to common stockholders of
Oct.

record

held;

rights

share.

rate

expire

one

share for each

Oct. 31.
Price—$15.75 per
Underwriters—Coburn & Middlebrook, Inc., Hart¬
on

ford, Conn., and Granbery, Marache & Co., New York.
Proceeds—For working capital.

Middletown, Conn.

Office—400 E. Main St.,
'

Seattle
Oct.

stock.

None.

Steam Corp., Seattle, Wash.
(letter of notification) 3,000 shares of class B
Price—At par ($100 per share).
Underwriter—
Proceeds —To pay part of
purchase price of

Seattle steam

heating properties and for working capital.
Office—1411 Fourth
Ave., Seattle, Wash.
• • \
Sicks'

Seattle

Brewing & Malting Co., Seattle.

Washington

Oct. 12

(letter of notification) 70,000 shares of common
stock (par $1) to be offered in
exchange for 44,125 shares
'Of preferred and
183,421 shares of common stock of

The First Boston Corp.
November.

Offering expected some time in
.'

Bing & Bing, Inc.
Aug. 30 it was reported

•

is contemplating sale
following approval oi
3-for-l stock split, (approved Sept. 5.) Traditional
under-]

additional

company

stock

common

★ Central Hudson Gas & Electric Corp.
Oct. 30 it was announced company plans to issue and
sell

40,000 shares of cumulative preferred stock (par
$100). Underwriter—May be determined by competitive
bidding. Probable bidders: Kidder, Peabody & Co. and
Estabrook & Co.

(jointly); W. C. Langiey & Co.; White,
& Co. and Stroud & Co. Inc
(jointly).. Proceeds—To refund short-term indebtedness
Registration—Planned for mid-November;
Offering-

Weld

Drexel

Co.;

Scheduled for early December.

Central Louisiana Electric Co., Inc.
Oct. 10 it was reported company plans in November tc
issue and sell $4,000,000 of debentures due 1971.
Under¬
writers—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Lee Higginsor

Corp., W. C. Langiey & Co. and Carl M. Loeb, Rhoadej
Co. (jointly).

selling stockholder.
Building, Tulsa, Okla.

Office—635-644 Kennedy

the

Toklan Royalty Corp., Tulsa, Okla.
Oct, 11 (letter of notification) 25,000 shares of
stock (par 70 cents).
Price—$4.50 per share.
writer—None.

Proceeds—To

purchase

for

Office—635-644

Texas

Kennedy

common

Under¬
investment

Building, Tulsa, Okla.

Southeastern

Gas

May 16 (letter of notification)
stock

transferable

offered

Underwriter—None.

Co., Bellville,
19,434 shares of

commoD

stockholders

through

common

Price

warrants.

—

($5

Tex.

share)
Working capital.

par

Proceeds—For

per

Touraine

Apartments, Inc., Phila., Pa.
(letter of notification) 100,000 shares of common
(par $1) to be offered to common stockholders

Oct. 16
stock

rights expire
Office—1520

new

shares for each 67 shares held;

about Nov/ 7.

Price—$2

per share.
working
capital.
Spruce Street, Philadelphia 2, Pa.-

125

shares per unit.

writer—None.

Price—$20

Proceeds—To

per

purchase

stock of Snellstrom Lumber Co.

share.
Under¬
50% of capital

i: .*;

★ Vinco Corp., Detroit, Mich.
Oct. 11 (letter of notification) 8,973 shares of
stock

(par $1).

Price—$10.50

per

common

share.1 Underwriter—

Reynolds & Co., New York.
Proceeds—To Joseph J.
Osplack, the selling stockholder, Office—9111 Schaefer

Highway, Detroit 28, Mich.
Vulcan

Iron

;

be in thn
with a new issu<
mortgage bonds
will be sold ini-j
tially. Price—Not less than par. Underwriter—To b<
determined by competitive bidding.
Probable bidders
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Led
Higginson Corp.; Harris, Hall & Co. (Inc.); Drexel 3
Co.; Kuhn, Loeb & Co. and Salomon Bros. & Hutzle l
(jointly); Harriman Ripley & Co., Inc.; First Boston
Corp.; Lehman Brothers; Paine, Webber, Jackson 3|
Curtis; Kidder, Peabody & Co.
Proceeds—To refund
$49,988,000 of 4% non-callable consolidated first mort I
gage bonds due July 1, 1952, and to redeem $ 13,747,00'I
first and refunding mortgage 4%% bonds, series D, dud
Sept. 1, 1962.
The remainder will go towards property]
improvements, etc.
:
'
'
'
was

reported

expects to

company

to $214

per

share)..

Underwriter—

None, but Eaton & Co., New York, will handle sales

Colorado Fuel & Iron Corp.
Sept. 26, Charles Allen, Jr., Chairman, announced that th
company plans to issue and sell $30,000,000 of, 4%% fird;
mortgage bonds due 1972 and $10,000,000 of 15-year dej

bentures.

placed privately anil
publicly through Allen :& Cofj

The former issue may be

latter

the

issue

New York.

offered

The

proceeds are to be used to redeerh $14,/
367,500 of outstanding first mortgage 4% bohds and th|
remainder used to pay for construction of a new mill aj

Pueblo, Colo. Stockholders will vote Nov. 14
ing financing program.

on approv

/ ^

Colorado

Interstate

Gas

Co.

reported that the holdings of the Unio
Securities Corp. group of stock of Colorado Interstate

Aug. 20 it

was

(531,250 shares)- will probably be sold publicly in Octo;

Works, Wilkes-Barre, Pa.

Oct. 17 (letter of notification) not to exceed 17,000 shares
of common stock (par 50 cents). Price—At the market

(approximately

market late this year or early in 1952
of approximately $70,000,000 of first
due 1981, of which about $65,000,000

Proceeds—For'

Viking Plywood & Lumber Corp., Seattle, Wash.
Oct. 19 filed 22,500 shares of common stock (no par) to
be offered to employee-stockholders in minimum units
of

Chicago & Western Indiana RR.
June

450,000 shares of capital stock of Palmer Stendel Oil Co.

Estabrook

reduce

10 shares

Sterling, Inc., New York
Oct. 22 (letter of notification) 10,000 shares of common
stock (par $1). Price—At market (approximately $4.50
per share). Underwriter—Merrill Lynch, Pierce, Fenner
& Beane, Chicago, 111.
Proceeds—To David S. Berry,

Underwriter—None.

Proceeds—To

share for each

one

Sept. 14 it was stated that the company may refund its
outstanding $22,388,000 first consolidated mortgage 4 %
bonds due July 1, 1952. Probable bidders: Halsey, Stuart
& Co. Inc.; Morgan Stanley &
Co.; Kuhn, Loeb & Co.;

writer: Lehman Brothers.

Price—To be supplied by
amendment.
Underwriter—F. S. Moseley & Co., Boston,
Mass.
Proceeds—For capital expenditures and working
capital.
■
v:

Oct. 5 at rate of five

Co.

(11/7)

held; rights to expire Nov. 21.

Corp.; Carl M. Loeb, Rhoades & Co. and Equit¬
able Securities Corp.
(jointly); W. C. Langiey & Co.;

curities

(Ohio)

Oct. 18 filed 364,727 shares of common stock (par $10)
to be offered for subscription by common stockholders

iier

for

Proceeds—For

construction program.

Curtis

share of preferred stock for each five shares

one

common

supplied by amendment.
Co., Inc., Chicago, 111.

Sept. 25 filed 196,864 shares of series A 4.50% cumulative
convertible preferred stock (par $50) being offered for
subscription b.y common stockholders of record Oct. 15 at
of

Atlantic Coast Line RR.

(par $1).
Underwriter-

Central Republic

preferred

(par $100 K Price—To be supplied by amendment.
Underwriters—Morgan Stanley & Co., Drexel & Co. and

Puritan

States Telephone Co.
70,000 shares of common stock

filed

Price—To

stock

term

advertising costs.
ham 9, Ala.

Gas Co.

Public Service Electric &

★Southwestern
Oct.

on
A.

ber

November.

Consolidated
March 23 company

Edison Co. of

New York,

Inc.

applied to New York P. S. Commis

sion

for authority

and

refunding mortgage

Roberts, Chairman, who is the selling stockholder."'

1981

(in addition to $40,000,000 series G bonds filed wit

★Western Air Lines, Inc., Los Angeles, Calif.'- /
Sept. 17 filed 25,000 shares of capital stock (par $1) under
option at $9.37y2 per share since Dec. 10, 1946 to T. C.

the SEC

the

over-tlie-counteft KmarkeUi Proceeds^Tto ."John

to issue and sell $25,000,000 of fir*

March 30).

series H,

due

May 7

determine^

Probable bidders: Halsey, Stu;
Inc.; Morgan Stanley & Co.; The First Bosto;

by competitive bidding.
art & Co.

bonds,

Underwriters—To be

^Volume 174

Number 5060

The Commercial and Financial Chronicle

...

Interstate

Corp.; Merrill Lynch, Pierce, Fenner & Beane and White,
Weld & -Co. (jointly). Proceeds — To r redeem -a liki
amount of Westchester Lighting Co. 3 V2 % general mort¬
gage bonds due 1967. Offering—Postponed.
,
V * Consolidated
Oct.

Inc.: (11/7) :

Freightways,

(1685)

Sept. 11 it
class

Petroleum

was

Co.

reported that the sale of 38,433 shares of

stock has

been temporarily

postponed.

writer—White, Weld & Co., New York.
Iowa-Illinois

Gas

;;

Under¬

& Electric Co.

applied to ICC for authority to issue

Oct. 8 it

was

and sell

100,000 shares of common stock (par $5). Price
—To be supplied later. Underwriters—Blyth & Co. Inc.;

issuance

and

Hogle & Co.; Shields & Co.; Walston, Hoffman &

60,000 shares of preferred stock (par $100) or $6,000,000
in debentures; also an issue of about $12,000,000 in first

Goodwin; Wegener & Daly Corp. Proceeds—For addi¬
tional working capital and, for new equipment.

mortgage bonds.
Underwriters—For bonds, to be deter¬
mined by competitive bidding. Probable bidders: Halsey,

company

Stuart

Consolidated Grocers Corp.
Oct. 8 it

stated company pians issuance

and sale of
Underwriter—A.
& Co., Inc., New York.
Proceeds—To expand:
output of company's eight divisions.
about

was

$10,000,000 of preferred

stock.

C. Allyn

Corp., New Haven, Conn. .
Aug. 22 it was stated that the company plans issuance
and sale of 30,000 shares of preferred stock (par $10),
each share to carry a bonus of common stock. Under¬
writer—Ira Haupt & Co., New York. Proceeds—For ex¬
pansion program.
Cott Beverage

Oct.

was

bids

announced

„

a proposal increasing
capital stock to 750,000 shares from
00,000 shares, of which 420,000 shares are outstanding,
dditional shares may be issued to stockholders, and
he proceeds used for expansion.
Traditional under¬

authorized

Paso Natural Gas Co.

New York.

horized

the second preferred stock from 200,000 tc
00,000 shares and the common stock from 3,800,000 tc
,000,000 shares; also authorized an increase in the agregate principal amount of bonds issuable under the
indenture of mortgage, dated June 1, 1946,
$157,000,000 to $300,000,00. Traditional Underwriter
White, Weld & Co., New York.

ompany's
rom

(11/27)

is considering
certifiates, maturing semi-annually over a 10-year period, in
rder to finance about 80% of the cost of acquiring new
iesel locomotives and gondola cars to cost about $6,915,00. Probable bidders: Halsey, Stuart & Co Inc.; Salomon
ros. & Hutzler; Harris, Hall & Co. (Inc.).
ct.

ale

was

announced

that

company

Nov. 27 of $5,400,000'of equipment trust

Foote Bros. Gear & Machine
ct.

ional

was

reported that

ct.

may

stock

it was announced company plans to offer
stockholders for subscription the latter part

to
of
.ovember an initial series of 100,000 shares of convertble preferred stock (par $100).
Underwriter—Probably
15,

errill

Lynch, Pierce, Fenner & Beane, New York.

ceeds—From sale

of stock

Pro¬

together with proceeds from

ontemplated sale to insurance companies of $25,000,000
f first mortgage bonds, will be added to general funds
f the company, for use in connection with company's
steel

production expansion program.
SEC Registration
end of this month. Meeting—Stock¬
holders will vote Nov. 21 on approving authorized issue
f 200,000 shares of preferred stock, issuable in series,
and on mortgaging the company's assets.
'
Expected near

Northern

(11/13)
Bids will be received by the company up to noon (EST)
n Nov. 13 for the purchase from it of $16,950,000 equip¬
ment trust certificates to be dated Dec. 1, 1951 and to
mature semi-annually from June 1, 1952 to and includ¬
Great

ing

Ry,

Probable bidders: Halsey, Stuart & Co.
"Salomon Bios. & Hutzler.
i'"

Dec. 1, 1966.

c.;

Hahn

Aviation

Products,

Inc.

preferred stock (par $100), will be used to
of bonds of former subsidiaries, to re¬
pay bank loans and for construction program. Additional
Financing—It is further estimated that company will re¬

000 shares of

retire $14,493,400

St., Philadelphia 33, Pa.

Illinois Bell Telephone Co.

the construction program through 1954.
Mathieson Chemical
Oct. 25 it

:or

new

was

and

into

construction.

imminent.

sell

in the years

1951 to 1956.

Pittsburgh & Lake Erie RR. (11/14)
Oct. 17 it was reported company plans issuance and
sale of $6,435,000 equipment trust certificates. Probable
bidders: Halsey, Stuart & Co. Inc.; Salomon Bros. &
Hutzler. Bids—Expected to be received on Nov. 14.
Oct.

Corp.

this company of

Corp., it is the intention of the company to
substantial portiori of: 250,000 shares of new' pre¬
on terms to be set at a later date.
The pro¬

announced

was

stockholders will vote Dec. 5

^Public Service Co. of New Hampshire
Sept. 25, it was reported company may issue and sell
late in November 150,000 to 200,000 shares of additional
common
stock sufficient to raise $5,000,000.
Probable
bidders:
Kidder, Peabody & Co. and Blyth & Co. Inc.
(jointly); The First Boston Corp.; Harriman Ripley &
Co. Inc.

Public Service Co. of North
was

Fall.
In July last year, $1,200,000 of bonds were
placed privately with two institutional investors.

^Purex Corp., Ltd,
Oct.

ferred stock

stockholders voted

stock

common

to working capital and used for

increase the

authorized

1,000,000 shares from 500,000 shares.
Blyth & Co., Inc., New York;

Traditional underwriters:

William R. Staats & Co.,

Inc., Los Angeles, Calif.

Rochester Gas & Electric

McKesson &

Robbins, Inc.
stockholders approved a

Carolina, Inc.

announced company plans to issue and
dollars of first mortgage bonds in

several million

the

Mathieson Hydrocarbon

research and product development.

increasing authorized 5%% prior preferred stock,
first series, from 225,927
to 400,000 shares and the
authorized common stock from
1.500,000 to 2,500,000
shares. Traditional Underwriters—Kuhn, Loeb & Co. f
on

sell

announced that following proposed merger

ceeds will be added

Philadelphia Electric Co.
Sept. 30 company announced that about $200,000,000 will
have to be raised through the sale of additional secur¬
ities, spaced at intervals, and in amounts which Vull
permit ready absorption by the investment market. The
overall construction program has already cost $217,000,000, and will require expenditures of about $365,000,000

July 12 it

Corp.

proposal to increase
authorized common stock by 500,000 shares to 2,500,000
shares.
No immediate financing contemplated.
Prob¬
able underwriter: Goldman, Sachs & Co., New York.

announced that company expects to issue
$5,000,000 additional first mortgage bonds and additional
debt securities or preferred or common stocks, bank

Mengel Co.
Aug. 10, Alvan A. Voit, President, stated that the com¬
pany plans to spend from $15,000,000 to $20,000,000 for
expansion, but that plans for financing have not yet
been completed. Traditional underwriter—F. S. Moseley

such

Oct.

& Co.

Merritt-Chapmaii & Scott Corp.
was

announced stockholders will vote Jan. 15,

Aug. 1 it

or some combination thereof, in connection
with its construction program. The method of obtaining
additional cash requirement has not been deter¬

mined. Previous bond financing was done privately.
July 18, it was reported that the company expects to
raise money through the sale of some preferred stock
later this year. Underwriter—Probably The First Boston
Corp., New York. Proceeds—To finance, in part, a $10,000,000 construction program the company has budgeted

for the next two years.
•

approving the creation of an authorized issue of
100,000 shares of convertible preferred stock (par $50).
Underwriter—Carl M. Loeb, Rhoades & Co. Proceeds—
For expansion program.
Metals & Chemicals Corp.,
Oct. 3 it

was

Dallas, Tex.

000 shares of common stock. Price—$3 per

writers—Beer &
of

Dallas,

(11/15)

stated company plans issue and sale of 100,-

Texas,

share. Under¬

Co. and Binford, Dunlap & Reed, both

and

Stuart

Wyeth

Co.

Phila¬

delphia, Pa. Proceeds—For working capital, etc.

was

borrowings,

Inc.

Royal Typewriter Co.,

Oct. 19 it

was

increasing

announced stockholders will vote Nov. 14

authorized,

stock to 2,000,000
No immediate financing is

common

shares from 1,078,816 shares.

planned.
,

Ryan Aeronautical Co., San Diego, Calif.
4 it was announced company plans to increase
authorized capital stock (par $1) from 500,000 to

Aug.
its

1,000,000 shares in order to place it in a
appropriate financing of some form of its

position to
own

securi¬

ties if and when advantageous to the company.

New

England Power Co.
Sept. 6 it was reported that company plans to sell about
50,000 shares of preferred stock this Fall. Underwriters—
To be determined by competitive bidding. Probable bid¬
ders: Lehman Brothers; Equitable Securities Corp. and
Carl M. Loeb, Rhoades & Co. (jointly); The First Boston
Corp.; Merill Lynch, Pierce, Fenner & Beane; Kidder,
Peabody & Co.; The First Boston Corp.; W. C. Langley
& Co.; Harriman Ripley & Co., Inc. Proceeds—To repay
bank loans and for construction program.
New

York Central

Oct. 17 it

RR.

reported company plans sale of $8,100,000
equipment trust certificates. Probable bidders: Halsey,
was

& Hutzler.

if Northern Pacific Ry.

Bids—Ex¬

(EST) on Nov. 1 for
$3,420,000 equipment
trust certificates, second series of 1951, to be dated Nov.
30, 1951 and to mature $228,000 annually from 1952 to
1966, inclusive. Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler.'1 ■*'
"
.
:
/
Olsen. Inc., Elyria, O.

(11/13-14) v
)
Oct. 191 it was reported early registration is planned of
about >225,000 shares of common stocks Underwriter-?—
McDonald & Co., Cleveland, O.
Proceeds—To certain
selling stockholders.
Business—Manufactures hot air
,

furnaces.

may

the reservation for conversion

edness

which

could

issued

with

long-term indebt¬
provision for con¬

vertibility into common stock. The company presently
has outstanding 439,193 shares of capital stock, of which
45,350 shares are held by the wholly owned subsidiary,
Ryan School of Aeronautics.

Sobering Corp.
was

reported that the sale of the company's en¬

stock issue (440,000 shares) was not ex¬
pected for at least two months. The sale will be made
common

to the

highest bidder by the Office of Alien Property.

Probable bidders: A. G. Becker & Co.

(Inc.), Union Se¬

curities Corp. and Ladenburg, Thalmann & Co, (jointly);
Merrill Lynch, Pierce, Fenner & Beane; Kidder, Peabody
&

(11/1)

Bids will be received up to noon
the purchase from the company of

•

tire

(11/21)

Stuart & Co. Inc.; Salomon Bros.

The new
take the form of a general offering for
sale to the public or granting of rights to stockholders;

financing

Oct 3 it

Kahler, President, announced that thii
ompany
(approximately 99.31% owned by American
elephone & Telegraph Co.) plans issuance and sale,
metime before the end of the year, of 682,454 addi'onal shares of capital stock to its stockholders. Under¬
writer—None. Proceeds—To repay short-term loans and
une

$8,000,000 to $10,000,000 of first mortgage bonds. Prob¬
able bidders may include: Halsey, Stuart & Co. Inc.;
Lehman Brothers; White, Weld & Co. Proceeds will be
used for expansion program. Financing not considered

quire approximately $100,000,000 additional to complete

pected to be received Nov.; 21.

Aug. 24 it was announced company proposes to offer
12,500 additional common stock (par $1), in addition to
17,500 shares recently offered. Underwriter — None,
roceeds — For engineering, acquisition of machinery
nd other corporate purposes. Office—2636 No. Hutchinon

about $25,000,000

sale of bonds,

1952

offer addiProbable under-

company

Pennsylvania Water & Power Co.
July 25, stockholders approved issuance of 78,507 shares
of cumulative preferred stock (par $100). Proceeds will
be used for expansion program. )y';
Aug. 7, it was reported company may issue and sell

Pittsburgh Steel Co.

announced company plans to issue and sell

Corp.; White, Weld & Co.
Proceeds—From
together with proceeds from sale of 100,-

Securities

Granite City Steel Co.
-ommon

(N. J.)

Co,

Co., Inc.; Lehman Brothers; Kidder, Peabody & Co.; The
First Boston Corp.; Union Securities Corp.; Equitable

Oct. 23 it

Corp.

early next year.
riter—A. C. Allyn & Co., Inc., Chicago, 111.
common

early in December.

Chemical

hares,

Erie RR.

was

December

with

stockholders approved an increase in the aufirst preferred stock from 100,000 to 300,000

of first mortgage bonds.
Underwriters—To be determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth &
in

Eastern Stainless Steel Corp.
25 the stockholders approved

reported company expects to sell $1,875,000

was

Parkersburg Rig & Reel Co.
Aug. 1 A. Sidney Knowles, Chairman and President, an¬
nounced that the directors have approved in principle a
plan to offer a modest amount (not exceeding $300,000)
of common stock for subscription by common stockhold¬
ers.
This may involve the issuance of 24,700 additional
shares on a one-for-eight basis. There are presently out¬
standing 197,600 shares of $1 par value. Probable Under¬
writer—H. M. Byllesby & Co., Chicago, 111. Proceeds—
For working capital.

Long Island Lighting Co.
Oct. 3 it

ct.

ept.

bid for preferred stock: Blyth &
Pierce. Fenner & Beane; Kidder,

Lehmann (J. M.)

borrow before Dec. 31, 1951, the remaining $4,000,000
nder its loan agreement with Metropolitan Life Insura¬
nce Co.
-

& Co. Inc.,

(Inc.); Lehman Brothers; Blyth & Co.; The First
Corp.; Smith, Barney & Co. The following may
Co., Inc.; Merrill Lynch,
Peabod.y & Co., in addi¬
to those mentioned as probable bidders for the

Boston

Sept. 1 it was reported that the Office of Alien Property
expects to call for bids in October on all of the out¬
standing stock of this corporation.

Arthur Warner

& Co.

late November

issue of $25,000,000 preferred stock

writer; J.

equipment trust certificates. Probable bidders: Halsey,
Stuart & Co., Inc.; Salomon Bros. & Hutzler. Expected

F. Evans, President, announced that
on authorizing the creation

(par $100), of
which it is planned to sell publicly not more than 120,000
shares (to be convertible* into common stock) late in
1951 or early in 1952. Underwriter—Probably The First
oston Corp., New York. Proceeds—To finance expanion program.
Private Financing—Company also plans

about

Lehigh & New England RR.

stockholders will vote Nov. 15
an

Co.

Oct. 17 it

★ Diamond Alkali Co.

contemplates

years

pany's construction program.

Raymond

three

tures (probably late this year) will be used to retire a
$6,000,000 bank loan used to finance, in part, the com¬

Nov. 7 for the purchase
amount of first mortgage
4% series A bonds due Jan. 1, 1993. The agencies of the
RFC are located at 143 Liberty St., New York 6, N. Y.,
and 811 Vermont Ave., N. W., Washington 25, D. C.
Frobable bidders include; Blyth & Co., Inc., and Lazard
Freres & Co. (jointly); Bear, Stearns &. Co.

29,

the

bonds, with the exception of Halsey, Stuart & Co. Inc.
Proceeds from the sale of the preferred stock or deben¬

RFC up to 11:30 a.m. (EST)
from it of $5,200,000 principal

Oct.

over

Inc.; Harriman Ripley & Co., Inc., Union
White, Weld & Co, (jointly); Equit¬
able Securities Corp.; Glore, Forgan & Co.; Harris, Hall

received by the

will be

sale

Securities Corp. and

tion

(11/7)

^Denver & Rio Grande Western RR.

announced that the company

Co.; F. Eberstadt & Co.; Allen & Co.; new company
by United States & International Securities Corp.,
Dillon, Read & Co.; F. S. Moseley & Co.; Riter & Co.

formed

Seaboard Air Line RR.
Bids will

(11/8)

be received up

the company

to noon (EST) on Nov. 8 by
at the office of Willkie Owen Farr Gallag¬

her &

Walton, 15 Broad St., New York 5, N. Y., for the
purchase from the company of $8,070,000 equipment
trust

certificates,'series K, to be dated Nov, 15, 1951 anc)
serially in 30 equal semi-annual instalments.
Probable bidders; Halsey,,;Stuart & Co. Inc.; Salomon
Bros. & Hutzler.
1
' '

to mature

Continued

page

The Commercial and Financial Chronicle

(1686)

Continued
•

from

Seaboard

Oct.

Airlines,
that

reported

was

(Nov.

Inc.
plans financing

purchase

shares of

Paine, Webber, Jackson & Curtis, Boston, Mass. Proceeds

South

Jersey Gas Co.

Earl

Smith,

bond

issue of

announced

company

bank notes which

Southern California Edison Co.

Aug. 29 it

announced

was

Texas

have to raise

may

company

Sept.

approximately $49,900,000 more through additional fi¬
nancing to take care of its 1951-1952 construction pro¬
gram. Probable bidders for bonds: Halsey, Stuart & Co.

temporary

bank loans.

Sept.

July 31 it
tion

FPC

for

facilities to cost

has filed

Sylvania Electric Products, Inc.
10, it was announced that the company contem¬
plates issuance and sale of not more than 200,000 shares
preferred stock (about $20,000,000)
$25,000,000 of new 20-year sinking fund de¬

about

bentures.

Underwriter—Paine, Webber, Jackson & Cur¬

tis.

Proceeds—To retire $17,200,000 of 3%
to finance expansion
program to cost more
will vote

Nov.

than

$18,Meeting—Stockholders

000,000 and for working capital.

Tennessee

Gas

Van

Co.

sell

Oct. 30,

it was announced that the company plans soon
register with the SEC an issue of $25,000,000 of 20year sinking fund debentures.
Underwriters
May be
determined by competitive
bidding. Probable bidders:

public

large

life

com¬

Readjusting
broad

and

ket
of

Yields

Report

be noted from

as can

what

has taken

last month

The
issue

course

of events in the

market

this

increasingly

week

clear

new

made

that

proper

pricing is essential to such under¬
takings. Bankers who brought out
the Utah Power &
Light Co.'s

$9,000,000 of 30-year first mortgage
bonds

the

lost

issue

time

when

repricing

it found such

ac¬

tion necessary.
In fact this

fore

the

perusal

place

the

five weeks.

September, for example,
A utility bonds were sell¬

opened.

The

company

3%%

move

was

made be¬

were

actually

group

price

But

101.09

for

buyers

level

so,

have

at which the average return from

this

group

were

3.55%. That action brought in
buyers and the bonds moved out
whereas all indications pointed to
operation

had

case

month

Two other utility issues
brought
this week, Ohio Power
Co.'s
$15,000,000 of 30-year first mort¬
gage bonds with a 3%%
coupon
and priced to yield
3.23%; and
West Texas Utilities Co.'s
$8,000,to

double
or

2.92%,
about

rated

bonds.

the average yield

ago

currently

shade

Security

some

indicated

mortgage 3%s, priced
yield 3.50%, went out

that

buyers have been willing to
little

ter return

matter

fact

good

in¬

stitutional demand- paved the
way
for successful conclusions
in

both

not

the

way

bet¬

the price easing

the

Street
are

been

has

than

the

less
of

case

the

levels

average

month
group

it
as

has

afford

yield of
or

the

shared

held

indicated by

average

the

considering

find

portfolio

been

better

the fact that the

yield currently is around

3.19%

about

four

difference

basis

get

only

points.

the

well

locally,

report

that things are decidedly quiet in

(11/15)

announced

was

Inc.;

Kuhn,
Bros.
of

amount

Sept. 26, it

Loeb

company

Co.;

Hutzler.

proposes

Morgan

Stanley

Proceeds—To

first mortgage

was

increasing

from

issue

Co.;

retire

bonds due Oct.
on

1952.

Nov. 15.

announced stockholders will vote Dec. 14

authorized

indebtedness

$150,000,000 in connection with

pansion
rities

program;

the

Company

plans

sale

type and amount of which

$500,000,000

$296,000,000

are

debt

ex¬

secu¬

undetermined

(may be private). Traditional underwriter: Kuhn, Loeb
&

Co., New York.

'■

Wisconsin Public Service Corp.

Sept.

C. E.

Kohlepp,

plans to build

President,

yet

has

not

deben¬

First

been

include:

may

Boston

announced

$12,000,000 steam turbine

County, Wis.

bidders

and

company

plant

power

Method of permanent financ¬

determined.

Halsey,

Stuart

bonds,
&

Corp.; Harris, Hall & Co.

Co.

probable

Inc.;

The

(Inc.); Kidder,

Peabody & Co.; Carl M. Loeb, Rhoades & Co.; Salomon
Bros.

Hutzler; Union Securities Corp.; Merrill Lynch

Pierce. Fenner & Beane: Shields & Co.

able is

new

Aetna

pension

who

men,

issues,

new

have

"tax

bite"

Broad

tin
v

Chronicle)

Detroit

Stock

New

York

1006

—

Copper—Memorandum—Hayden, Stone & Co., 25

Street, New York 4, N. Y.

data

Detroit

gen¬

Co., Inc., Hoge

Lone

Axle

Star

and

Cement, American Airlines, Tim-

Eastman

Kodak.

Waddell

LeCoq,

Development
Second

Riverside

Limited—Analysis—John R. Lewis, )Inc.,
Avenue, Seattle 4, Wash.
/ J]1

Cement

Company—Card

memorandum—Lerner

Co., 1C- Post Office Square, Boston 9, Mass. Also available is
a memorandum on Gear
Grinding Machine Co. and on Seneca

Falls Machine Co.
„

Scranton-Spring Brook Water Service Company
Cohu & Co.,

Olson, Donnerberg Adds
(Special

are

ken

Placer

TECUMSEH, Mich. —Albert B.
with

Memorandum

Building, Seattle 4, Wash.

(Special to The Financial Chronicle)

—

Pacific Power & Light Co.—Bulletin—Write to Frank G.
Pacific Northwest Co., Exchange

and

Exchanges.

With Waddell & Reed

Hammond

Co.

Supply—Analysis—Edward L. Burton & Co., 160
South Main Street, Salt Lake City
1, Utah. Also available
are analysis of
Equity Oil and Utah Southern Oil.

Building,

the

Manufacturing

Mountain Fuel

DETROIT, Mich. —Herbert G.
Miller has joined the staff of Wm.
C. Roney & Co., Buhl
of

Co.—Memorandum—Smith,

Sun Oil Co.

Libby Owens Ford Glass—Data—A. M. Kidder & Co., 1 Wall
Street, New York 5, N. Y.
Also available in the same bulle¬

With William C. Roney

members

Stamping &

eral-obligation bonds—Analysis—Grande
Building, Seattle 4, Wash.

going to do to

Financial

Cementing

Juneau, Alaska Independent School District 3% and 4%

corporate earnings.

to The

Well

Securities Corp., Ill Broadway, New York 4, N. Y.

Inspiration

in¬

are now

Oil

memorandum

Industrial

that

able is

—

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

memorandum

Tobin Packing Co.

Analysis-=-

Also avail-*

to The Financial Chronicle)

Seneca Oil Company—Analysis—Genesee Valley Securities
Co.,

ST.

LOUIS, Mo. — Walter W.
McKenney has become affiliated
with Olson,
Donnerberg & Co.,
Inc., 418 Olive Street.

Powers

The

Financial

Chronicle)

;

Building, Rochester 14, N. Y.

•

Socony-Vacuum Oil—Special 20-page survey—Ira Haupt & Co.,
Ill Broadway, New York 6, N. Y.
Also available is an anal-

ysis of Central Vermont Public Service Co.

With Bailey & Davidson

•

Standard Products Co.—Special report—Hecker & Co., Liberty
Trust Building, Philadelphia 7, Pa.

FRANCISCO, Cal.—Hec¬
tor Harrison has joined the staff

Transcontinental Gas Pipe Line—Memorandum—Hill Richards
& Co., 621 South Spring Street, Los Angeles

U. S. Thermo

SAN

.....People who get around, out-ofas

Barney & Co., 11 Wall Street, New York 5, N. Y. Also avail¬

to hesitate. They want to
better insight into what the

(Special

town

Co.

Halliburton

increasingly' ' important

outlet for

the

decline,

noticeably

Recommendations and Literature

they might be

shape

fund

3.15%

While

about

Dealer-Broker Investment

Reed, Inc.

buyer

around

back.

has

the

move

Bonds of this type were moving

opened

Securities

construction

issue of securities.

Observers

pro¬

two aforementioned groups.

Union

Continued from page 8

"tight"

Revenue Act of 1951.

in single A rated

securities

10.

Salomon

additional-200,000

easy

comes

picture

This is reflected in the fact that

nounced

off

their investments.

Increas¬

Meanwhile another highly im¬
portant factor has entered into the

Air of Tenseness
a

when

better.

for Yield

and

not as flush

are

new

(Special

Meantime

the

and 4V4%

around

paper was

whereas

well.
As

3.03%

out

at 102.31

2.95%

holds true in the

same

stock

They report deals

clined

Much the

the

original terms been maintained.

000 of first

around

runs

plus.

without

the syndicate revised
its price to 101% for a
yield basis

sluggish

In the
interval
slipped off to levels

quality in order to pick

hesitation,

prices

sacrifice

that

yield of

average

convertible

rate between 3%%

They point out that the hanks,
their heavy loan portfolios,

2.87%.

originally had
reoffering at 101% to

prospective
at

the

with

had paid the

yield 3.52%.

cool

around

and

coupon

intended

ing to return

for this type

books

Street
that

Corp.;

Proceeds—For

Bids—Expected to be received

every piece of business.

Late in

triple

Co.

Bids—Expected

ing

common

the

general readjust¬

ment has been
underway in the
yield basis of the secondary mar¬

Reporter's

permission

Stockholders will vote Nov. 15

and

applied

for

plans to issue

company

$2,500,000 of 20-year

well.

announced

$20,000,000 of first

Westinghouse Electric Corp.

announced

ing authorized

panies taking down sizable blocks.

Our

has

Commission

Corp.

was

per annum.

—

with

sell

$14,950,000 of general mortgage bonds, series B,
clue Nov. 1, 19,76.
Underwriters—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &

Norman Co.

and

Securities

Weld

^Western Maryland Ry.

for construction costs.

tures to bear interest at

instances

Webster

in Marathon

approving financing program.

Transmission

White,

Dec.

1, N. C. McGowan, President, announced that "it

Oct.
•

program.

sion program of United Gas
System and for other corpo¬
rate purposes.

debenture^

issue

refunding mortgage bonds. Underwriter—To be de¬
by competitive bidding.
Probable bidders:
Stuart & Co. Inc.; Salomon Bros. & Hutzler;

Corp.;

White,
Weld & Co. and Equitable Securities
Corp. (jointly);
The First Boston
Corp., Harriman Ripley & Co., Inc., and
Goldman, Sachs & Co. (jointly). Proceeds—For expan¬

convertible

new

and sell

company

Utilities

proposes

Stone

pated this will be done by the sale of first
mortgage and
collateral trust bonds
during the latter part of the year.''
Underwriters—To be determined by competitive
bidding
Bidders for an issue of like amount sold on
July 24 were
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.,

Oct.

and

bidders:

reported

was

(12/10)

Holtzclaw, President,

termined

will be necessary to
arrange for an additional $50,000,000
to complete the total financing, and it is
presently antici¬

additional

estimated $13,641,000, of which ap¬
proximately $9,187,000 is expected to be spent in 1951.

Carolina

'.7.:m;

Halsey,

Inc.

United Gas

applica¬

construct

Co.,

be used to pay

Aug.

permission

sell

3% notes. These notes would be
refunded through the sale of common or
preferred stock
Traditional underwriters: Union Securities
Corp. and
W. C. Langley & Co., New York. Proceeds from notes to

Co.

was announced company

with

North

Halsey, Stuart & Co. Inc.; Blyth & Co.,
Inc.; White, Weld & Co.; Lehman Brothers; Merrill
Lynch, Pierce, Fenner & Beane and Harris, Hall & Co.
(Inc.) (jointly).
Offering—Expected in the Fall.
Gas

and

stock early

borrow $1,500,000 on

bidders:

Natural

issue

may

common

($6.50 per

Underwriter—
;

company

and
company

Price—At par

Proceeds—For working capital/

Sept. 25, Jack

Oct.

company

Southern

Probable

additional shares of
stockholders at rate of one

present

None.

Co.

reported

was

>/ Virginia Electric & Power Co.

Tide Water Power Co.

indicated it would this year be in
the market with $18,000,000 of senior securities. Prob¬
able

share);

The First Boston Corp. and
(jointly); Union Securities Corp.,
Lehman Brothers and Bear, Stearns & Co.
(jointly);
Goldman, Sachs & Co. and Harriman Ripley & Co. Inc
(jointly); Kidder, Peabody & Co. and Merrill Lynch
Pierce, Fenner & Beane (jointly).

Southern California Gas Co.

April 4, the

(12/6)

Ry.

400,000 additional shares of

1952.

Blyth

Inc.; Kuhn, Loeb & Co.; Blyth & Co., Inc.; The First
Boston Corp. and Harris, Hall & Co., Inc. (jointly). These
bankers bid for the $30,000,000 issue of 31/s% first and
refunding mortgage bonds which were sold last week.
The nature, amounts and timing of the new financing
cannot now be determined, and will depend in part on
market conditions existing from time to time and may
include

around

stock

share for each two shares held.

Pacific

;'v

authorizing the sale of 481,307

common

was

Utilities

•

Oct. 22, it was announced stockholders will vote
Nov. 27
on

reported company plans sale of $2,900,000
equipment trust certificates, series N. Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
Bids—Expected to be received Dec. 6.

due before the end of the year.

are

17 it

capital.

Vertientes-Camaguey Sugar Co.

company

Texas

Oct.

working

Houston, Tex.

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¬
mated to cost $184,989,683.

than

Co..

Gas

stock and on
authorizing issuance of
part of such increased shares by the directors
prior olfering to stockholders.
Underwriter—
common

any

—For

$8,000,000 by fall of
this year.
Underwriters—May be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; Lehman Brothers; Blyth & Co., Inc. Proceeds—
To refund the presently outstanding $4,000,000 of 4%%
first mortgage bonds and repay outstanding short-term
plans

1).

Texas-Ohio

;

President,

without

new

Oct.

April

all

expansion

company

totaling $6,500,000 to $7,000,000 for
equipment. May be placed privately.

Thursday, November 1, 1951

Halsey, Stuart & Co. Inc.; Stone & Webster Securities
Corp. and White, Weld & Co. (jointly). Proceeds—For
program.
Registration — Expected /today

page

Western

Bailey

some

Davidson,

155

San-

Street, members of the San

Francisco

Stock

Exchange.

14, Calif.

Boston

Control—Data—Raymond & Co., 148 State Street,"
Mass.

King Railway.

Also

available
*

information

Thermo

Volume 174

Number 5060

The

and Financial Chronicle C

(1687)

Halsey, SJuarl Offers
Ohio Pow, 33/g% Notes
Offering of $7,000,000 3%% se¬
rial notes, due 1955-1966 of The
Ohio

Co.

Power

today
Inc.

The notes

2.75%

being

are

notes,

arid

$16,000,000 of the net
from the sale of the

$15,000,000

will

payment of

(Special

The

Financial

Jordan &

Co.

the f compahyv

©f

Thomas Frank Opens
securities

business

Beaver

American

payable in cash

Tobacco

December l,

1951, to stock¬

for the three years end¬
ing with 1953 is estimated, on the
basis of presently existing condi¬
to

and

Exchange, passed

away on Oct. 22.

other

DIVIDEND

CHACE,

1951

close
1951

Stock of Atlas

STANDARD

Family of

this day declared

clock P. M.,

56th

Consecutive

.Stock

October 30, 1951.

declared
cents a

of Directors of Avco

MANUFACTURING

payable December .20, 1951,

420

the

October 26, 1951

' y

•

1,792,520

$2.00

A quarterly
on

dividend of $1.75

the Preferred Stock has been

EATON

MANUFACTURING

share
declared,

1951.

A dividend of 25 cents per

special dividend of 50
the

Common

Stock

share and

per

been

declared,

/ I

21,1951." ,/y"*

DIVIDEND;\
116)

\X;--X-'vXy

GAS

■

JOHN E. KING

holders of

Vice President and Treasuret

record

35%

Declared

October

the

EDWARD L. SHUTTS,

1951

the

common

stock

4.5%

convertible
of the

payable
to

preferred
both

company,

December 1,1951,

stockholders of record

at the

close of business November
5,
i951.

President.

TEXAS

EASTERN

■

pany/payable December 13,

■

1951 to stockholders of

rec-

ord at the close of business

■

l>wnirrMon,[Qyjoiafcn

November 30, 1951.

24,1951.

October 25,

Stock

Southern Natural Gas Com-

•

Common Stock ($15 par)
all dividends payable December
1,1951, to
stockholders of record November

XXy>..y;y:

Common

■

/"X/yy

its

;

cents per

30 cents per

■

share on its
,4%% Preferred Stock ($30 par)

•

A dividend of 62^, cents
per share has been declared

;

y #

business November 5, 1951.
H. C STUESSY,

Birminqnam. Alabama

•

Common Stock Dividend No. 51

;

following regular quarterly dividends:

the close of

r;..

'•

Secretary

DIVIDEND NOTICE
The Board of Directors has declared

Fifty Cents (50?) per share
on the 1,792,520 $2.00 par value
common
shares of the Company
issued and outstanding, payable
November 24, 1951, to share-

CORPORATION

;>..V

NATURAL

....

AMERICAN RADIATOR & STANDARD SANITARY

i;;

and $1,125
per share on the
stock

of Eaton Manufacturing Company
•>' has declared an extra dividend

December 15, 1951 to stock¬
holders of record at the close of business
November

:
SOUTHERN

UTILITIES COMPANY

payable
on

IOWA SOUTHERN

The Board of Directors

cents per share on

have

Shreveport, La.
October 26, 1951

Company has declared regular
quarterly dividends of 25 cents

Secretary

#■■■■■■■■■■■«■■■■■■■«■■■■■■■■■■■■■■■■■■■*!

COMPANY

(DIVIDEND No.

DIVIDEND NOTICE
The Board of Directors of the

EXTRA

Common and Preferred

Company, also

per

C. L. SWIM,

;..y

; y

cents

common

cash dividend of

cents

Ott. 16,1951

Cleveland 10, Ohio

■V

December 1,
1951
to
stock¬
holders of record at the close of business
November 21,

the

COMPANY

payable
on

per

GRIFFIN,

Secretary-T reasurer.

close of business Octo¬
ber 30, 1951.

par

HaC, STUESSY, Secretary
Declared on October 26,1951

Stock has been declared

payable November 30, 1951, to
stockholders of record November
15, 1951.

share, both
payable December 5,1951,
to stockholders 'of record

"COMMON DIVIDEND

an extra

E. O. Jenkins. President

business November 5, 1951.

1951,
business,

15, 1951. A regular quarterly
dividend of 30$ per share on the

Common

NOTICE

stock of this

holders of record ^at the close of

PREFERRED DIVIDEND

December 13,

at the close of

November 9, 1951.

ber

vat

nNovember 24, 1951, to-share* t

American -^tattdard

share, of which $.75
regular and $.75 per

declared payable December
1, 1951,
stockholders of record Novem¬

the

A. C. MINTON,
Secretary

per

value
common shares of the Company
issued and outstanding, payable

New York 17, N.Y.

Jersey)
dividend

cash dividend of 75

quarterly dividend of 30c

20, 1951.

Company has declared a dividend
of Fifty Cents (50c) per share on

Lexington Ave.

the close of business
November

The Board of Directors

R. S. Pruitt, Secretary

quarterly dividend of
share on the 5% Con.
vertible Preferred Stock has been
Per

The Board of Directors has.
today declared a quarterly

17, 1951, de¬

outstanding capital
stock, payable December 10,
1951, to stockholders of record at

of Eaton Manufacturing

28, 1951.

regular

31 lA$

M. E.

per share on

DIVIDEND NO. 115

stockholders of record November
■

clared

COMPANY

Cleveland 10, Ohio

the Common Stock

Treasurer

Philadelphia, Pa.

Directors of First Bank Stock

nesota. on October

quarterly dividend of 15

share, have been

SKELLY OIL COMPANY
•

EATON

DIVIDEND

October 31, 1951.

Manufacturing Corporation ha9

JOHNS HOPKINS,
October 23, 1951

Dividend

Jorjioration
Corporation, Minneapolis, Min¬

Board

per

designated

extra, payable

stockholders of record

three

Corporation.

per

value

THE UNITED GAS IMPROVEMENT
CO.

COMPANY

New

cash

capital stock of $1.50
per share was

Famous Names"
The

OIL

(Incorporated in

Walter A. Peterson, Treasurer

the

share as

business

share
par

Esso

N.Y.

the Common

1951,

the close of business November

W. j. ROSE, Secretary.

the

10,

$13.50

divi-

an extra

per

the Capital Stock,

declared, payable December
15, 1951, to stockholders of record Novem¬
21, 1951.

The Board of Directors of the

quarterly dividend of 40y
per share has been declared, payable
December 22, 1951, to holders of
at

JR.

Common Stock

December

Secretary.

ber

payable
holders of

President.

A regular

record

and

Common'Stock,

area

NOTICES

'V(

the

Dividend No. 40
on

record

dividend of 35c

s^are anc*

per

October 31, 1951

has

electric

payab'e

regular dividend of 35

Atlas Corporation

having an
estimated population of 1,195,000.
an

Directors of the Berk¬

MALCOLM
October 25,

President

dend of 15c

bWI

13, 1951.

payable December 1, 1951, to stock¬
holders of record November
16, 1951.

NOTICES

33 Pine Street, New York 5,

record

inC.

associates

Spinning Associates, Inc.

Electric"Co.

utility
companies and
munici¬
palities. The company serves 494
communities in

has declared

DIVIDEND

energy and
its sale to the public in Ohio .and
the supplying of electric energy
to

spinning

Fine

shareholders

per

A quarterly

Si
IL/j]
K^gfpl

Dividend

\ seventy-five cents (75c) per share
on the Common
capital stock of the Com¬
pany issued and outstanding in the hands

shire

Also

CENTS

In I

■

—

Slock

A regular quarterly dividend of

cents

electric

wholesale

Treasurer.

Board

STOCK,

19,
1952
5> l?52-

FIFTY

v>n;m< \\ «as
AMI ELECT1IIC COMPANY

December

in the generation,
purchase,, - transmission and dis¬
of

January
of

Common

The

New York Stock

1951.

Directors has declared for quarter
ending December 31, 1951, DIVIDEND of ONE
and ONE-HALF
(lI/2%) PER CENT or $1.50
per
share on PREFERRED

declared a DIVIDEND
share on the NO PAH
COMMON STOCK, payable December
1, 1951 to
shareholders of record November
10,
1951.
G. F. CRONMILLER, Jr.

promptly.

of the public has been declared

is engaged

tribution

for

same

26,

Hilyard, Treasurer

from

fine

Pennsylvania
October

Board

Vice

1951. Checks will be mailed.

Charles W. Cox

$119,137,000.
company is a subsidiary of
Gas

Stock

McMeekin,

ob¬

holders

Certificates

holders of record at the close of business Novem¬

October 30, 1951

Charles W. Cox, member of the

American

1951.

exchange

Capital

Company,

Street, New
■■■./?■

City.

company

The

16.

Trust

Pittsburgh

business

The cost

of the construction program of the

and

Thomas W. Frank is engaging

be used to pay for
extensions, additions
improvements to the prop¬

The

Stock

dividend,

should

the Common

upon

December

stockholders

Voting

cost

tions

share has been declared

per

paid
at

November

will

trustee,

1951,

record

Seventy-five Cents (75r)

Harry L.

York

from the corporate

will

REFRACTORIES COMPANY

6(V per share

tain

HARBISON-WALKER

A dividend of

185th Common Dividend

ber 9,

DIVIDEND NOTICES

METALS, INC.

NewYork3,N. Y.

A regular dividend

Chronicle)

BOSTON, Mass.—The firm name
Joseph F. Jordan & Co., 79 Milk
Street, has been changed to J. F.

be withdrawn

and

111 Fifth Avenue

offices

erties

AND

Co., 120 South

Now J. F. Jordan & Co.

NOTICES

AMERICAN MACHINE

payable to banks, and the balance,
together with funds which may

the

Becker &

La Salle Street.

common

applied to the pre¬
like amount of notes

A. G.

bonds,

new

additional shares

stock

was

A total of

DIVIDEND

CHICAGO, 111.—Philip A. Delaney has been added to the staff

ma¬

competitive sale on Tues¬
a bid of 100.80%.

proceeds

DIVIDEND NOTICES

to The Financial Chronicle) ^

made

according to
Award of these notes

made at

(Special

Stuart & Co.
priced to yield

3.3%

turity.
day

Halsey,

Joins A. G. Becker Co.

H. D. McHENRY,
Secretary.

S
;

Materials Handling Equipment

Dated: November 1y 1951.

;

Locks

Secretary

Builders'Hardware

26,1951

ALUMINIUM LIMITED
$4.25

COLUMBIA PICTURES

Cumulative

DIVIDEND

CORPORATION

NOTICE

Board

1951

declared

this day declared a dividend
of

On October

currency was

quarterly

declared

16th,

outstanding

all the

19th, 1951 and expiring

stock

the -Common,

Certificates
pay-

for

Directors

dividend

two

and

(2^%)

per'cent

Stock

common

poration, payable in
cember 28,
November

Preferred

Stock,

Voting Trust

stock

common

payable

1951 to stockholders ot
close of

record

the Cor¬

stock

De¬

1951 to stockholders of record
1951. Cash will.be paid

Directors

Electrochemical Company1

1951.

Fifty

Cents

Common
1951

quarterly

<$0.50)

Stock,

are

fractional shares of

due.

Common 'Stock
:;

;

Hooker

dividend oi

its

November

per

payable

stockholders

29,

record

the close of business November 5,

1951.

WILCOX. 2nd
ecretary
Secretary
%\

New

a regular quar¬
terly dividend of 45 cents a share on
Common Stock payable Jan.10,1952 to

PREFERRED STOCK

quarterly dividends of 65
on

$1.35 Convertible Preferred

stockholders of record Dec. 20,1951.
A. E. WEIDMAN
Oct. 25, 1951

Treasurer

share,

was

Directors out ot past earn

ings, payable

Nov. 21

1951, to stockholders o>
record

$2.60 Convertible Preferred Stock,

Stock, Series B. All preferred divi¬
dends are payable Jan. 10, 1952 to

declared by the Board oi

share,

33% cents a share on $1.35 Convert¬
ible Preferred Stock, and 33% cents a

1951,

25,

dividend, No. 252

ot $0.50 per

regular

cents a

Oct.

extra

DIVIDENDS

The directors also declared

A. SCHNEIDER.,/

Yorky October '29, 1951.

Finance Co. declared

Vice-Pres. and Treas.

Secretary

Dividends

The Board of Directors of Seaboard

share
ANSLEY

Consecutive

Quarterly Payment

stockholders of record Dec. 20, 1951.

October 24.

67th Consecutive

December

business December 3,

declared

YALE & T0WNE

COMMON STOCK DIVIDEND

Cumula¬

^Common Stock Dividend

1951

COMPANY

Hooker

dividend

$4.25

ihe

15,

its

25,

where

JAMES A. DULLEA,

quarterly

r^Tjbe; .Board.' of
declared

November 16th, 1951.

October 23rd, 1951

;

also

was

one-half
on

1951 to share-

per

AMCE

252nd and 253rd
oi

payable"

November

record

14,1951.
•■There

Novem¬

Certificates

stock,

common

holders

holders of record at the close of busi¬

Montreol

cents per
its Common Stock

FIN

November 28,1951 Jo-, stock-

October

8th, 1951. The dividend is

able December 5th,

ness

for

November

< 50c >

and N oting Trust

no.■1-

transferable

subscription rights issued

1951, including Shares sub¬

scribed for pursuant to

ber

in.Lf.S.y /,

value Shares of this Company

that wilt be

tive

fifty

23rd, 1951',

dividend of $1.00 per share

par

SI.0625

5ERB0RRD

Stock-

;

Electrochemical Company on'October 24,

Directors has

Board of

The

Preferred

Dividend

«/

-•

the

o.'

business Nov. 5, 1951.
_

clared

dividend

share, payable

holders ot record

The Directajrs also^de
253, of $0.50 pef

No.

Jan. 2, 1952, to stock
on

Dec. 10, 1951.
F.

DUNNING

Executive Vice-President and Secretory

the yale & towne mfg. co.

The Commercial and Financial Chronicle

Thursday, November 1, 1951

(1688)

000,000 to date,

BUSINESS BUZZ

the

experimenting

laboratory and pilot-plant

stages with other petroleum syn¬
thetics.
■

•

A -a*
jljL f w\A

Behind-the-Scene Interpretations

Capital

from the Nation'#

•

'v'"

Another

Cathage

that the very
and technical
production problems which that
company
is solving are almost
wholly useful in producing syn¬

Hydrocol story is
same
engineering

Commercial Poetry

fMs

aspect of the

co.-

thetic fuels from soft coal.

political tree for having something
lo do with an RFC loan, "liberal"

Soft

Subsequently the engineer,
after
the
pilot plant operation
satisfied him the project was com¬
mercially feasible, started looking
around for money to put up a

WASHINGTON, D. C.—In their

to chase the Repub¬

frantic sprint

Chairman

National

lican

into
into

which has the RFC
loan is about to usher in—or lead

government and industry alike to
age of commercially com¬
petitive synthetic petroleum pro¬
duction. Yet the story was spread

other

government

out

the record

■and could

for all to

see,

in sub-

ascertained

istanial form without even check¬

ing.

the folks were in¬
in was a little politics and
all

But

terested

not much else.

is
Na¬
tional Committee, non-paid. He is
Gabrielson

Guy

George

of the Republican

Chairman

President

■also

and

Counsel

Carthage Hydrocol. He was Presi•dent of Carthage Hydrocol before
lie

the

became

His

RFC

has

company

Chairman.

GOP

loans

should

Gabrielson

Mr.

President

■Gabrielson

the

became

company.

President

Adminis¬
the post¬
instalment on the

trator

routine
■and

had

some

facets

the

less

this brought him into
with the RFC.

relationship

Question: Does this

mean

that

George Guy Gabrielson hasn't got
o.
right to cast stones at Bill
*3oyle? That was the question with
which all of the Senators and all
of the

concerned them¬

newsmen

selves.

♦learings

occupied

99% of the
Gabrielson by weight

and volume. The

use

money was put, the
totally excellent prospects for re¬
payment, and the striking results

which this loan will help produce
were all but ignored. :
•h.

❖

'■'".v/.

with In¬

Carthage Hydrocol starts with
C. Keith, who developed the
technical "hydrocol" process for
synthesis
of
natural
gas
into

the U. S.
Jesse

—

Jones, the

invest¬

canny

cost,' he, Jones, Would have in ef¬
fect a competent
opinion as to
prospective feasibility of the

the

So Jones* laid down that

vate investment, in substance, 50-

the

plant

Meanwhile

has

been
Oil

Stanolind

Company has built

built.

;

Gas

large plant

produced

industry during World War

H. He had

a part in
building the
Ridge atomic plant. He had

Oak

other industrial roles in the war,
-and he was awarded a Medal of
Merit for his

persorial

war

services with

citation

President

Truman.

pounding and packaging these by¬
products, has been built py U. S.
Industrial Chemicals, Inc.
Needless to say, no

invested

money

additional
tion is

Hydrocol.
like

„

come

If Carthage didn't
others

would

not

the

synthetic rubber for

war.

laboratory

adapted
in
the
German process for

making synthetic gasoline and im¬
proved it.
Then

fiis

Keith

friends

thing

interested

less

putting

than

build—privately,
ernment

$2'

try out his
commercial

process

some¬

million

not

money—a

some

with

gov¬

pilot plant to
on

scale.

The

limited

plant,

which turned out some 40 barrels
a

day,

was

located at Olean, N. Y.

get

are

latter

the

neither

far,

are

ities

beyond

Importers' and Exporters' Guide
according to Harvey
to Price, Regulations—Dr. Julius
Gunderson, the former RFC di¬
rector assigned to police the loan.1 Hirsch—available from office of
However, those who are fa- ! Dr. Hirsch, 52 Wall Street, New

production

laboratory

have worked for petrol¬

miliar with the project's arrange¬

synthetics. Industry and the
Bureau
of Mines
are
both ex¬

eum

Being

investment,

mostly

it has had

manufacturing problem after

one

another

solve.

"bugs" have shown

Most

ments

plus

range

ganic chemicals, would

now

or¬

seem

to be just about around the corner
few months
*

The

more
*

less.

that

the

vast

then

trying

with

large

developmental

of the first synthetic
petroleum products industry.
It

upon

create

though

even

private

large

funds

as a

the

new

commercial

this

stage

which Carthage Hydrocol is in the

of achieving, and the suc¬

process
cess

of which does not appear to

in much

and

doubt to government

industry

Five

Percent,

Ruml and

tional
21st

observers.

The

—

Theodore

Planning

17,

New York

Y.—cloth—$2.00.'

: T: 1'

Beardsley

Geiger—Na¬

Association,

80O

Street, N. W., Washington 6,

D. C.—paper—50c.

risk

sponsors

ment

are

for

sponsors

making
sake

the
of

WE SUGGEST v

even

invest¬
private

if the by-product of

opening up a new source of equiv¬
alent
petroleum reserves works
out to be

handsome social

look

RIVERSIDE CEMENT CO.
CLASS B
A
in

profit,

Potential

Appreciation

cold-blooded, profit-

the

For

Large

industry,

producing enterprise. The private
It

Park Avenue,

225

problems

or na¬

leading

(common) STOCK
producer

fast-growing

of cement

Southern

;

*■".

California.

Analysis of this Company and
a

review of the Cement Indus¬

try available on request.

tional dividend.
Priced about

While

thesize
there is
in

the

about

prepared

natural gas commercially,
no

end

reason

the

to believe that

cost

this

de¬

velopment to the government will
be

one

single

dollar.

RFC

Against the

syn¬

$18,500,000

loaned

by RFC to develop the first pros¬

pective commercial production of
a

$13.00

per

LERNER & CO.
Investment

Securities

major synthetic petroleum, the

government

itself

has

appro¬

gets priated $85,000,000 and spent $64,-

very

synthetic

production

States

;

Expanding Your Income—Ira U»

Cobleigh—David McKay Co., Inc.,

deal with, and
the commercial production

solve

ar¬

sold competitively
of natural crude

products

N. Y.—paper—$1.00. I

to meet,

expense

and

proper

nature

rangement, and accomplish this at
a
cost
which
will
enable
the
product to be

private investments appear in the

perhaps

machines

their

and

materials

and

expensive.

and

designs

quate

$18,500,000 repay¬
able RFC loan, the private spon¬
sors
have put up, to date, $30,Against the

has to get the ade¬

one

■V':''--y":''

...S>i

potential

petroleum
United

most

For

pay

involved for 240,000, not quite double the gov¬
ernment loan. In a sense these

The commercial stage is
the

;

York

10 Post Office

Square, Boston 9, Mass.

Tel. HUbbard 2-1990

sources

commercial output.

its Av-Gas
likely to
out hand¬

NE&B

news,

three

out,

the

mechanical problems

somely.
_

the

idea

engineering

sufficient

significance of this

pointed

first

both

that

say

and chemical output are

the

duction of synthetic Av-gas from
gas

preliminary

multitude

and have

up,

been eliminated. Commercial pro¬

natural

just

loan,

purposes,

running.

processes

off the govern¬

pay

if sold to the crude
petroleum industry for cracking

like crawling, walking, and

tion,

would

ment

plant

pilot

project were aban¬
physical facil¬

the

doned tomorrow its

however,

stage. There are
three stages to synthetic produc¬
the

any

Even

working

Thus

coal.

and

Bureau of
on shale

the

and

Industry
Mines both

before

substantial

of additional

physical arrangement,

—a

manufacture

before the private sponsors
interest or principal or
dividends
on
their
investment.

paid

shale, found largely in Colorado.
The other is bituminous coal.

petroleum.
though

without

long,

very

commercial

in.

looks

two

of Carth¬

success

feasible

enterprise the
have

these

to the prospec¬

tive commercial
age

government

plants, whose construc¬

tribute

Keith got interested in synthetic

petroleum products while assisting
in
getting
plants
to
produced

fleeting moment in

is only a

Hydrocol. A third plant, for com¬

new

rubber

'time

that

perimenting with at least two ad¬
ditional processes for conversion
of natural gas to synthetic fuels.
Stanolind is refining and purify¬
After the laboratory process comes
ing the organic or "by-product"
the pilot plant, necessary to give
chemicals
Carthage

duction.

tion of the government's synthetic

views.)

own

eternity' business—if you're late once
more you're fired!"

adjoining Carthage Hydrocol's in¬
stallation
at
Brownsville,
Tex.

pro¬

outstanding engineer,
leading role in construc¬

"Never mind

Several

50 with RFC money.

Carthage Hydrocol will be in

"Chronicle's"

the

banker that he was, opined

ment

petroleum and chemical products.
a

pretation from the nation's Capital
and may or may not coincide with

mously the petroleum resources of

amount

ISjeith is

coal

from

gas

been achieved.

(This column is intended to re¬

have the effect of boosting enor¬

aviation gasoline and other liquid

lie had

commer¬

flect the "behind the scene" inter¬

was all one way. Com¬
prouction should be tried.
If the process were proved to be
commercially feasible, it would

look

>?.

the

response

to which the

government

that

production

months

few

announce

will

mercial

negotiation

development of the loan and

not

while

freedom of

within

probably

Army, the Navy, the
Carnegie Institution of Washing¬
ton, a department of Massachu¬
setts Institute of Technology. The

condition. Jones would match pri¬

companyj

the

idle with its program. That bureau

the

process.

a score or so more or

cial

1951. He also, as President of the

borrowing

Mines,

operation
private companies, has not been

has

terior,

synthetics

day" is not far off.

Bureau

having

gasoline-chemical industry

tried out. Jones checked

day

some

That "some
The

would be desirable to have a syn¬

ponement of an
principal of the loan due Oct. 1,

part in

facture

whether

idea

petroleum products will be
bodily in the manu¬

from coal.

that

agencies

Mr.: to Keith that if the oil and gas
the industry would layout half the

asked RFC
Symington for

company

have

thetic

§18,500,000. The loans were made
fc>efore

into

useful almost

the

all

with

checked

Carth¬

Hydrocol's solution of the en¬
gineering and the technical prob¬
lems
of
converting natural gas

the former RFC Ad¬
ministrator. Jones became inter¬

ested.

it is converted to syn¬

age

Jesse Jones,

—the

After it is turned into

thetic petroleum products.

Mr. Keith found his way to

the company

turned

gen gasses.

and

newsmen

before

these gases

both plant that would engage in com¬
■conservative
and
"Fair
Deal" mercially competitive production
Senators alike completely over¬ of Av-gas and by-product chem¬
looked one of the most interesting icals. Originally Keith thought to
industrial stories of the century. do this primarily with borrowed
money and retain a greater equity
Hunting for a measly squirrel of
control himself. With a new and
political news, the newsmen and
commercially untried thing, this
Senators alike passed right by a
proved to be impractical, y
toear of a story, the story of how
Washington

coal,

synthetics, must be converted
carbon monoxide and hydro¬

Allied Electric Products
FIRM TRADING MARKETS

the

about to become

FOREIGN

SECURITIES

reality.
Production is to be
achieved, and by private industry

Kingwood Oil
Standard Cable

with

private

capital and private

management and with
ment

guarantee—government par¬
ticipation being limited only to

the

aforesaid

repayable $18,500,-

000 loan from the RFC.

There

are

potential

petroleum

two

sources

products.

P.ARL MARKS & P.O. INC

TexasEngineering & Mfg.

no govern¬

other

major

synthetic

One

oil

FOREIGN SECURITIES SPECIALISTS

Tm50 BROAD STREET...NEW YORK 4, N. Y.
TEL. HANOVER 2-0050... TELETYPE: NY 1-971

Hill, Thompson & Co., Inc.
Trading Department

70 WALL

STREET, N. Y. 5

T«L WHitehall 4-4540

Full text of Commercial and Financial Chronicle : November 1, 1951, Vol. 174, No. 5060

FRASER