The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
UNIVERSITY
OP MICHIGAN
ESTABLISHED 1S39
NOV 13 1953
BWWHS UMWISTUriM
"The Commercial
Financial
d
an
UBiur
Chronicle
Reg. U. S. Pat. Offioe
Volume 178
Number 5272
New York 7,
N. Y., Thursday, November 12, 1953
Price 40
Cents
Copy
a
EDITORIAL
Problems oi the
As
We See It
"What shall
be
to
the
do to be saved?" This
we
refrain
seems
Dr.
although
one
upon occasion it covers a certain
Eisenhower
election
glee
party members who
events
among
in
see
anti-
an
tion but that the
party now in office faces the
necessity of getting a good deal done at this next
session of Congress to convince
doubting Thom¬
that it
productivity is due to the
public it could and would do. This fact has
been plain for a good while past, and doubtless
the results of the voting last week emphasized
the fact in one degree or another.
We are neither a prophet nor the son of a pro¬
phet. Certainly we can claim no particular politi¬
knowledge
ture
to
hold
Broaden
sweetness!
know
use
the
enumerate
which, in
give
of
these
For
election is
serious
without
A
SECURITIES
A
few
Trust Company
Founded 1824
ject to
political caprice
is a 30-year
comic-tragic failure by
anybody's standards. Ironically, the
po¬
continues
or
Federation
lion
of
Dr.
cies,
Melchior
Palyi
institutions,
and
standards
profound
this hemisphere.
as
farm
of
behavior
the
are
the
Dr. W. H. Peterson
themselves
find
peaceful
reaches from its
speak
very
Swedes
and
Norwegians,
same
NOW
are
IN
who
REGISTRATION
afforded
a
—
Underwriters,
complete picture
of
issues
on
page
dealers
now
the
are
farmers, once the
firm individualism,
navigators who charted
of
West from
their
Conestogas and
six-shooters, now
half-willing, half-unwilling wards
the
—
22,000
strong
nexus
and
in
The Department of Agricul¬
1933;
80,000
strong
14th
in
Avenue
belt, down into the cotton country,
Washington
across
Continued
investors
registered
with
in
1953—
up
on
to
the
into the
page
32
cor¬
the
in
of massive buildings at Indepen¬
dence
27
and
master
wheat
kind of civilization—separ-
Continued
few
a
American
model
of the central government.
similar tongues, live under almost identical
institutions, enjoy the
quite
tamed it with their
pre¬
ture
as
Many
put forth to solve the
The only real solution is rarely
The
very
clude rational functioning, to say nothing of conflicting
political attitudes and prejudices. Republics and Royal¬
ties do not mix easily.
Two such closely related and
neighbors
be¬
able."
of
The linguistic chaos alone would
it
mentioned, and if it is, it is dispar¬
aged as "unthinkable" and "unwork¬
as
nations
are
problem, and
tried.
traditions, poli¬
economic
ethics,
among
interventionism.
"solutions"
Free
difficult
the
farmer, the
the nation from the
and
of
morass
intervention
of
more
extricate
consumer,
great
policy
the
to
national
in
to
comes
reflections
a
a
this
longer
sen¬
open
con¬
compromise,
makeshift,
a shot-gun
Among its/some 270 mil¬
people, "under-the-skin" dif¬
ferences
and
policy and its
This "policy," so sub¬
SEC
State and
WESTERN
NATIONAL BANK
Municipal
of INDIA. LIMITED
Bankers
to
the
Government
Kenya Colony and
Bonds
in
Uganda
Office:
26, Bishopsgate,
London, E. C. 2
Branches
in
Pakistan,
India,
Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somaliland
Bond Department
Protectorate.
£4,562,500
Paid-up
Capital
Capital
Fund
£3,675,000
The Bank conducts
and
every
description of
exchange
r
OF NEW YORK
also undertaken
ESTABLISHED 1915
Members of All Principal Exchanges
50 BROADWAY
•
NEW YORK CITY
Salt Lake City
business.
Trusteeships and Executorships
J. A. H0GLE & CO.
THE NATIONAL CITY BANK
£2,281,250
Reserve
banking
30BROADST.,N.Y.C.
tinuing repercussions in the U. S.
wedding.
Authorised
Correspondents in all
parts of the world
of the interventionist is perhaps nowhere
and potential undertakings in our "Securities in Registration" Section, starting on page 38.
Head
Complete corporate and
personal trust facilities
than in the so-called farm
(American) good
Bank
&
arm
Europe would have to be
porate securities
Chemical
long
seen
-
Union
35
page
The
straighten out
intentions.
programs
on
doubt.
deal of misdirected
regard to the state of the
Continued
The
better
area.
economic
but the logic is
should help to
judgment, would strongly suggest
statesmanship.
thing, the way to win next year's
not to be found in major reduction in
revenue
the
to
the participants.
admirable,
our
one
play
full
economic delusion.
timents inspiring this idea are wholly
interest in votes than in
more
tax
some
of its market
narrowness
tential of
advantage,
own
an
(allegedly) needed to boost pro¬
ductivity, to reduce unit costs, to
number of
existing situation to their
shall
we
a
failures, since they merely produced a hyperagricultural production and create
surpluses. Points out government subsidies keep down
farm prices at expense of taxpayer and thus constitute
stimulant to pyramid
are
things now
being urged in influential quarters which would
not
render the party deserving.
Since many
measures are now
being pushed by professional
politicians and at times certain others who would
we
cies to be
by federation, and all will be light and
Integration would create the markets which
or acumen. Nonetheless we ven¬
certain ideas about what the
mind that
common
them
Republican party must do to deserve to win hand¬
somely next year. We are equally positive in our
own
a
An old "cliche" it is: that Europe's affliction with low
the
cal
lem and the
"efficient and cheap production is the prime condition
of broadening the market."
and will do what it has assured
can
history of the national farm prob¬
political and economic conditions that led
up to and produced price-support and other legislation
which has brought about farm intervention and which'
has destroyed the farmers' traditional status of rugged
independence. Finds New Deal and Fair Deal farm poli¬
eco¬
market, the objective of the European Coal-Steel Pool,
is not necessarily a freu market.
Calls the European
idea a fallacy rather than a panacea, and concludes
opportunity to enlarge their
sphere of influence. There is, of course, no ques¬
ases
Polytechnic Institute of Brooklyn
Dr. Peterson reviews
Palyi discusses European federation in both
monetary union and points out creation of
recent
PETERSON
H.
J
military spheres and finds problems not only
difficult, but perhaps insuperable. Cites difficulties of
Benelux, and says economic federation presupposes
frequently sincere¬
is obliged to suspect that
WILLIAM
Department of Economics,
nomic and
what it often appears to be—is
sung
By
By MELCHIOR PALYI
of many
elements among the
Republican politicians today. This dirge—that is
ly
The Farm Problem
European
Defense Community
Bond Dept.
Teletype: NY 1-708
/
Los Angeles
and
10
other
Denver
Spokane
Western Cities
THE
CHASE
NATIONAL
OF THE CRY
BANK
OF NEW YORK
The Commercial and Financial Chronicle
2
Thursday, November 12, 1953
...
(1830)
■
i
,
V
.
„
We position
The Security
and trade in
Tel. & Tel.
American
I Like Best
This
Forum
week, a different group of experts
and advisory field from all sections of the country
A continuous forum in which, each
Subscription Rights
in the investment
3% % Deb. due 1965*
security^
participate and give their reasons for favoring a particular
United
they to be regarded,
are
Gulf Interstate Gas
rial
JACQUES COE
Kerr-McGee Oil
United States Steel Corp.
Monterey Oil
the
of the past
Development
12
"There is
Telephone Bond & Share
stock¬
begin to cash in
tremendous cash outlays
should
holders
on
the
where
existence
rate
Puget Sound Power & Light
a
S.
U.
years.
tide in the affairs
a
leads
Associate
American
120
their
1920
New
York
Teletype NY 1-583
BArclay 7-5660
And
full
a
must take the current
we
when it serves,
Or lose
Act 4,
Specialists in
ventures."
our
Scene 3, Julius Caesar
way
of
saying that every once in a great
Rights & Scrip
Since 1917
there
while
life
of
York
American
120
Stock
Stock
Exchange
Exchange
BROADWAY, NEW YORK 5
Tel.
REctor
2-7815
past
period of
a
this company,
steel manu¬
many
years,
the world's largest
has
been liberal in
pjpf
ifT ^
i t
%
dividend
s
that
funds
and
serves
set
$2.20
sibility of extra cash distributions
order.
debit
balance
the
company's
become
more
dividend
liberal,
as
on
touching a
80%. In former
the
this
low
rate
as
have
bearish
time
would
Jacques Cos
greater
S.
Gas
1940, the funded debt
$201,000,000.
Now it is
only $61,000,000, consisting solely
of debt
on
its four
subsidiary rail¬
roads.
Company
of
shares
3,600,000
are
preferred ($100 par) or $360,000,000. Add the $61,000,000 bonded
indebtednes and 26 million shares
Dan River Mills
selling currently at $37
another $962,000,000
or
Scott, Horner &
Mason, Inc.
Lynchburg, Va.
LD 33
Steel is
a
a
share—
and U. S.
selling in the market for
$1,383,000,000—nearly a
total of
has
billion dollars less than what
been
spent on the property since
1941!
two
are
projects still to
completed, namely: The Fair-
less Works at Morrisville, Pa.
the
I. G. FARBEN
Cerro
Companies
Mr.
U.
S.
Iron
which
Fairless,
will
additional
of
GERMAN
Bolivar
Venezuela,
Board,
And Successor
according
Chairman
not
and
at
body
to
It
Steel
York
Stock
Exchange
25 Broad St., New York 4, N. Y.
Phone: HAnoyer 2-9766
Tele. NY 1-3222
Texas Utilities
little
A
Co., New York City
Company Common Stock
has
have
than
more
three
years
capacity
as
its
finishing
well
as developing
of raw materials.
During the last
12
years
capa¬
new
from
through 1952, U. S. Steel
off about $1,700,000,000
for
depreciation, depletion, etc.
Earnings in excess of dividends
amounted
to
$500,000,000, so that
the
depreciation
and
depletion
charges plus this earnings excess,
has been sufficient
increased
to finance
the
capacity and raw mate¬
earnings of the com¬
about
doubled
in
Net
Taxes.
Income
$100,000
Ft.
Worth, Texas
Independent School District
2% Bonds
November
Due
in
article
an
"Commercial
the
&
1,
1965
,
nicle,"
r o
when
it
1948
stock
as
favorite
se¬
If
the
price
is able to con¬
company
is
rate
Rupert
rec¬
H. Johnson
ommended
net
earnings, without further tax
as
more
share.
The
for the
last 12
utility
country
as
a
industry * for the
whole has been
growing at the rate of about 10%
per year. The growth in popula¬
tion, as well as general business,
as
Company
and light busi¬
Texas), serving
through its three main subsidi¬
aries
(all 100%
owned) Dallas
Power & Light Co., Texas Power
ness
&
a
(all
Light
Service
power
in
Co., .and
Co.,
towns.
served
Your
a
Texas Electric
total of 640 cities
are
The
largest
Dallas,
Fort
cities
Worth,
Waco and Wichita Falls.
The company serves
20% of the
inquiries
growth
invited
are
in
companies
on
new
these
fields
s. d. fuller & co.
39
New York 6, N. Y.
Broadway
Telephone
WHitehall 3-0066
whole.
a
facts
contributing
are
why the growth of Texas
Company
been
has
compared
homes,
on
business
in
the
'
so
to
Investment
Call
for
peak
on
As
a
costs
general
Established
Home
Office
a
111
Tokyo
1897
—
48
Investment
&
.
Branches
Bankers
Broadway,N.Y.6 COrtlandt7-5680
1943, although
much
are
than they were
now
had
publications
YAMAICHI
Brokers
not
write
SECURITIES CO., LTD.
than in the former peak
has
or
current
Japanese securities
re¬
of
Utilities
Texas
our
farms, factories
offices.
Opportunities
in Japan
month of December.
higher
ten years ago.
If Texas Utilities is able to obtain
rate
increases,
N. Q. B.
which it properly
this would further in¬
earnings for the common
crease
OVER-THE-COUNTER
stockholders.
The
management of
Texas
disposed to in¬
INDUSTRIAL STOCK INDEX
Utilities has been
crease
common
dividends
as
war¬
14-Year Performance of
35 Industrial Stocks
ranted
per
by earnings. Net earnings
share for the/12 months'ended
Sept. 30, 1953
on
and
Regal Plastic Co.
months.
deserves,
Utilities
Texas
operates
Permachem Corporation
will grow to around $39,000,000, or to more than double
relief,
rate increase since
stock outstanding, the
indicated annual dividend is $2.08
per
Lunn Laminates Inc.
in the last year,
same
of August
When pre¬
viously
Underwriters For
electrical con¬
sumption in many parts of the
South is now greater in the month
44%,
3-2840
increase
the
sult
around
now
Telephone
WHitehall
ings for the next five years, or at
and
though
4
tinue its 16% increase in net earn¬
used in
curity today,
even
Gordon Graves & Co.
in the last 12 months.
most
other utility companies. Like
other electric power companies in
the South, Texas Utilities Com¬
pany
has enjoyed an enormous
growth in its electric output from
the increase in air conditioning
my
—
30 Broad Street, New York
$18,447,000
to
000, thus showing a 16%
Utilities
Texas Utilities
★
earnings for the year
ended Sept. 30, 1952 were $15,887,-
outstanding
commend
r e
—
Net
was
selling at ap¬
proximately
22. I
again
2.35%
interest)
(and
12 months ended Sept. 30,
for the
These
Financial
To Yield
from
increased
stock
in
the
available for
earnings
common
in Texas, however, has been about
recommended Texas Utilities
three times that of the country
stock as my favorite security in
ably
a
Exempt from all present
Commis¬
Public
Utility
ago I
share, while today, with consider¬
now
offices
volume.
RUPERT II. JOHNSON
R. H. Johnson &
gross
pany
The
the annual dividend was $1.10 per
charged
New
fore,
those
the
1940
OPPENHEIMER & Co.
net
any
financing.
has boosted
sources
Bought—Sold—Quoted
in
of
36,400,000 tons compared with
city
very
necessitate
29,700,000 tons at the end of 1940.
INTERNAL SECURITIES
Members
little change
earnings for the common.
the
There
be
branch
our
possible acquisition of se¬
reasons
There
Company
Tele. LY 62
make
C h
Commonwealth Natural Gas
profits taxes for 1954 should
cess
the
the end of
Alabama-Tennessee Natural
This
connotations.
$2,265,000,000, equivalent to ap¬
proximately $85 a share, without
additional financing. In fact, at
totaled
pos¬
efficiency plus elimination of ex¬
Steel, is the fact that it has ac¬
complished its vast modernization
program since 1941 at a cost of
American Furniture Company
op¬
a
1954 indicates
of
times
amazing things about U.
the
1953.
information
best
figure
of
to
Federal
of- the
jurisdiction
the
under
sion
the $8,394,000
increase
would
return
new
Trading Markets
of $76
(at 4%)
dividend return of $300
excess of $224 on an original
a
sibility
etc.
wires
Interest
of
non-affiliated
com¬
Looking at U. S. Steel at this curities
where it yields approxi¬ panies!
The
growth of this company
mately 8.00% the element of risk
for a lower dividend appears re¬ over the years has been impres¬
Gross earnings for the
12
mote unless of course the entire sive.
business
structure
were
to col¬ months ended Sept. 30, 1953 were
over $105,000,000.
Gross earnings
lapse. At current levels, the pur¬
chase of 100 shares of Steel on for the calendar year 1948, less
than five years ago, were $54,194,50% margin of say $1,900 would
000. In less than five years, there¬
mean an annual interest charge on
Our
habilitation,
expansion,
projects,
Direct
price,
erations for
re¬
NY 1-1557
Birmingham, Ala.
Mobile, Ala.
Securities and Exchange
to
proportionately.
and
Exchange
Exchange
St., New York 4, N. Y.
HAnover 2-0760
Holding Company Act, except as
income
one
Act. In
empted
from
Stock
Commission
Power
Federal
under the Federal Power
imply certain continuation of the
present $3 rate. If business should
continue reasonably well, the pos¬
in
Stock
York
New Orleans, La. -
EPT
of
policy
most
Per¬
keep
help
Should
Probably
whole
Basin consists of all the oil
mian
payment of $1,900 or nearly 12%.
re¬
for
used
1953,
were
up
25 Broad
The
Basin.
Permian
$5.56 after provid¬ Texas there is no State regulatory
excess profits tax. body having jurisdiction over the
were
for
—an
large
New
Members American
the
of
months
nine
the
against
all
at
since
so—and
Steiner, Rouse & Co.
Members
preferred
is non- producing areas of Texas.
management has
The growth of Texas Utilities
no
other
medium on which to has been dynamic.
spend cash gains, hence the com¬
None of the company's subsidi¬
mon
stock must be the principal
aries is subject to regulation by
the
J
policy notwithstanding
times
HOW
the
in
where the
blooms and
pays
dividends in the present.
This may be U. S. Steel's period.
the
of
facturer,
Members
New
time
a
corporation
a
wisdom
Over
jflcflONNELL&rO.
comes
City. (Page 2)
Steel
S.
U.
are
is another
which
.
.
.
R.
York
New
for
1954 company or its subsidiaries, but
earnings at a all incorporated cities and towns
high level. If business and earn¬ nave regulatory powers conferred
ings should decline moderately, by statute.
the strong cash position (and no
On April 5, 1950 the company
need for further expansion) would and
its
subsidiaries
were
ex¬
we
sea are
Co.,
redeemable, the
should
afloat;
now
time to come.
for some
should be
Johnson,
H.
&
expansion
major
its
Elimination
life
On such
5
that
If
ing
miseries.
Stock Exchange
Broadway,
fortune;
Is bound in shallows and in
Member
program
earnings
Omitted. all the voyage of
Corporation
Established
to
on
of
end
For
-
New York Hanseatic
S.
beneficiary.
of men,
Which, taken at the flood,
s
now
U.
that
the
Steel is
period in its corpo¬
opinion
my
approaching
Polaroid Corporation
Smelters
In
-
terest
Rupert
—
Johnson
H.
particular in¬
is the understanding
Steel Co. is nearing
becomes of
What
Members New York Stock Exchange
Metal & Thermit
stock
outside financing.
York City
New
Bought—Sold—Quoted
Utilities Company common
Texas
"
Coe & Co.,
Senior Partner, Jacques
Common, Notes & Units
Coe,
City. (Page 2)
resorting to
without
sources
Louisiana Securities
Senior Partner,
Jacques Coe & Co., New York
are not intended to he, nor
offer to sell the securities discussed.)
as an
Alabama &
Steel Corporation—
States
Jacques
(The articles contained in this forum
request
on
and
Their Selections
Delivery when issued'
Prospectus
Week's
Participants
\yere
$3.26 per share
5,655,000 shdres. This compares
with
only
$3.01
per
5,280,000
months
ended
share earnings
shares in the
Sept.
Continued
on
12
30,
1952.
On
on
page
26
TV.
T
V'
FOLDER
ON
REQUEST
1
National Quotation Bureau
Incorporated
46 Front Street
New York 4, N. Y.
Volume 178
Number 5272
.The Commercial and Financial Chronicle
..
-
(1831)
Outlook for 1954 Auto Production
INDEX
Articles and News
President, Chrysler Corporation
i
tition in favor of the automobile
not been
AND COMPANY
those
answer
all-important
interesting
"How's
of
ness?"
and
questions—
are
outlook
These
of
try
whole
as a
and
ly
logical to
L.
and
L.
trucks
and
the
little
to look
like
million
passenger
a
buses;
begin
year
than
more
Here
*
totals
These
—Nathan
.
will
is
New
market
time
who
undoubtedly
after
buy
place
time
years,
the
on
1950 and 1951
sold; and in terms of dollar value
vehicles sold it will probably
out to be the biggest year
on record. The high dollar volume
of this- year's sales is resulting
ple bought
—Sen. Alexander
the fact that
have
been
more
of what
trade
for
that
cars
used to consider
we
in
fact is that
els.
used
which
to
to
our
we
of
cars
kind
of
a
Trust
in
business.
N
So the
tion
is
of
Business is goodindeed. Ben Fairless
answered the same question about
easy.
this
good
very
in
ber.
He told
the
American
probably
it
about
more
steel
seven
this
this
years
year
these
cars
Potential Market for Motor
There
the
what
is
doubt
no
potential
vehicles
the
market
is excellent.
And
so.
the
road
World
*An
today
War
address
Luncheon
of
were
II.
the
They
the
cars
on
built before
being
are
by
Mr.
Colbert
at
a
Pittsburgh Chamber of
three
7
to
is
all
of
that:
cars
and
these
with
NSTA
and
lots
in
the
bank
than
wants
Securities
Prospective
an
Security
The
State
of Trade
•
Manchester, N. H.
Boston
•
2
Industry-!
on
Y.
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before.
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37
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to 9576
SEIBERT, Editor & Publisher
WILLIAM DANA SEIBERT, President
•
Sunset Oil Co.
E.
Copyright 1953 by William B. Dana
i
Company
Reg. U. S. Patent Office
'
•
Empire State Oil
5
1
f
ST., NEW YORK 4, N
TELEPHONE HAnover 2-4300
Albany
Exchange
and
Eagle Oil & Refining Co.
9
more money
Spencer Trask & Co.
BROAD
23
You—By Wallace Streete
Washington and You.
REctor 2-9570
25
and
Forge Co. Com.
Cedar Point Field Trust
41
Security I Like Best
.
Camden
38
Offerings
Market
*
Stock
37
Corner
The
.
1-1826
43
The
.
NY
25
Registration
Salesman's
&
5
28
in
Exchange PL, N. Y. 3
1-1825
22
Report
of
.'
40
Teletype NY
Bankers
Governments
on
Now
Securities
Singer, Bean
& MACKIE, Inc.
13
36
Railroad Securities
25
New York
Bargeron
HA 2-0270
FINANCIAL
Members
27
„
PREFERRED STOCKS
specialized in
8
_
Slump"
8
Published
have
Price
30
Reporter's
The
For many years we
Gold
Public Utility Securities
up
ever
Continued
Commerce, Pittsburgh, Pa., Nov. 9, 1953.
*
Notes
Our Reporter
Our
bonds.
9
.___
Observations—A. Wilfred May
four-year-
people
want
two
or
three; millions of
cars are due for
replacement; more
people are employed than ever
before; and they have
trading markets in
26
Securities
News About Banks and
used
add
firm
44
Mutual Funds
8 million
facts
everybody
—
Stocks
Bookshelf
From Washington Ahead of the
News—Carlisle
population,
or
maintain
Cover
Indications of Current Business
Activity
cars
What
Insurance
Einzig—"The
in
the middle-age bracket.
balancing will take place as
automobile
of
a
buy new cars and make
present
cars
available
to
you
Just consider these
million
than
other purchasers who will discard
their prewar cars.
want
telling
facts:
Twelve
more
used-car
We
stocks and
:__
Dealer-Broker Investment Recommendations
have
overage
(Editorial)
Coming Events in Investment Field
were
the
It
Man's
Canadian
were
older. Early this year,
in this class. To
or
and
Business
early this
third
with
their
that
motor
I
a
old
future?
for
But
See
in
were
those
whatever
to spend a few minutes
why I think
This
Excellent
about
road
need to replace
we
of
Now
As We
Bank
group.
we
old
balance
deed.
Is
age
1953, 28%
in the record
steel year of 1951. The steel busi¬
ness has also been very good in¬
produced
Vehicles
bracket.
28
225 unlisted
proportion of the aged
variety of used car. In 1941, only
8V2% of the cars in use were 12
industry will
produce
million tons
than
steel
26
Oppose Use of
Regular Features
normal
that time that
at
us
the
1953, less than
Today
Septem¬
on
Teletype
NY 1-3370
21
J. C. Copeland Says Next Crash
Will Come First in Real Estate
29
In 1941, more than half
cars
age
year,
steel when he addressed the Eco¬
nomic Club in Detroit in
the
Telephone
low first
a
Street, New York 5
DIgby 4-1680
Industry—^
and yet in good enough
portation.
to the first ques¬
answer
☆
15 Broad
22
of North and South
Carolina
Public Credit for Promotion of
condition to furnish reliable trans¬
who wants
21
Manapr
Trading Dept.
19
Donald V. Fraser^
Municipal Dealers
vintage. That
for
man
says
Unlisted
Exchange
☆
JOHN F. REILLY,
i
Frederick Shull Sees Need of
Fixed Gold Price
(Letter to Editor)
The
cost
car,
15
SEC Adopts Rules
Regarding Disclosures of Stock Options
Granted Officers and
Employees
used
surprise to the oldest hands in the
Sold
BURNHAM AND COMPANY
<
Arizona Association of
Security Dealers Urges Lower Capital
Gains Tax
to
ing
more
comfort,
more
con¬
venience, more performance—is a
a
23
j
Slump in Prospect,
vintage is the 4 to 11-year-old—
the kind that is not too expensive
buyers are "trading up"—demand¬
—
«
"Survey"
No Major Business
don't have enough
certain
Jack & Heintz
Bought
are—for¬
cars
the
Light
20
re¬
want
Puget Sound Power
18
Rigid Markets Do Not Make for
Stability, Reports Guaranty
four
most in demand.
are
luxury features and luxury mod¬
extent
new
Southern Production
16
cars—and in 1954
will
4-6551
Members New York Stock
11 million peo¬
people
tunately—just
and
more
these
WHitehall
&
___
million people should be in the
market for a new car.
The cars
that
WALL STREET, NEW YORK
Telephone:
14
Confidence in Business Outlook Cited in National
City
Bank "Letter"
11
customers
our
demanding
new
back.
Obsolete Securities Dept.
12
Sincerity—Basis of Salesman's Technique—G. M. Loeb
people
Now
average.
over
Nystrom
Wiley
has
or
'em
♦
Multilateral Trade Will Cure Free World's
Economic Ills
whopping big percentage of these
a
turn
from
tend
three
every
numbers of vehicles produced and
of
cars
used
them
most
bring:
11
Capital—Robertson D. Ward
:[!
that
that
"obsoletes."
some
Time, Inc.
1
.___
Economic Impact of Atomic
Energy on Electric Power Industry
—E. H. Dixon
Market surveys have shown
cars.
be
we'll
are,
Consumption in 1954
Koffsky
Treasury Policies—Elbert P. Tuttle
Venture
-
that this market
fact
here
Europe
10
exist¬
income, and
highs, it seems
another
M.
No Serious Business
Dip in 1954—Paul H.
personal
suppose
Securities—Joseph C. BickforcL.___
Little Change in Domestic
own
people talk about the market for
and about
cars
make 1953 the second biggest year
in the history of the industry in
The
untouched
dogs
of
of.
trucks.
the
and
7
Situation—Roger W. Babson______
Outlook for Business and
received very little attention when
6
million trucks and buses.
a
to
must
there
-
•
cats
alleyways
THAT WAS ROME
If
8
Humphrey
—
totals for
the
out
6
The 1953 Crop
potential is real—based on effec¬
tive demand
and not just theo¬
retical. 1
Colbert
near¬
million
a
point
savings at all-time
approxi¬
mately 5 mil¬
cars
66
no
100 families that
big,
a
ployment,
and
sold
lion passenger
_'
—
The Dilemma of Balancing the
Budget
—Hon. George M.
-
tor motor vehicles.
The need is
there to be filled. And with em¬
indus¬
produced
And
cars.
facts
of
ence
1953 the auto¬
mobile
ever-increasing«'
cars, 89 have only one car. And 17
million American families have no
car at all.,
nine
months
an
100 farms have
Of every
take
first
6
the
5
Cobleigh
Beer Facts—Ira U.
scrapped.
every
the first ques-<
tion
first.
In
the
the Road's Left Lane—A. Wilfred
May
on
the
AMIDST ALL THE SPLENDOR
99
at
passenger
for
the future?"
Let's
Chugging Along
"
Thirty-seven out of every 100
of the nation's farms do not have
the"
visit
—there
new cars.
scrapped
and'
is
4
left
3
Investments for the Businessman—Arnold
Bernhard
rate. Three out of
every four new
cars sold today
replace cars that
busi-
"What
—Cover
Management of the Public
Debt—Aubrey G. Lanston
What you want me—as a visitor
from Detroit—to do
today is to
We've
to
Outlook for 1954 Auto Production—L.
L. Colbert--
Stresses importance of our increas¬
ing population, expanding suburban areas, and
improvement of
highways as factor in maintaining a high level economy and
most
Cover
___
Problems of the European Defense
Community
—Melchior Palyi
;
buyer, the like of which has
growing demand for
Page
The Farm Problem—William H.
Peterson__
in 15 years.
seen
!
■
Leading auto executive in expressing confidence in continued
good business, predicts total passenger car production and salesin 1954 will be around 5 million
units, "or near level of current
year." Points out, however, there is going to be more
compe¬
..
llCHMTfl
-
By L. L. COLBERT*
funds.
LOS ANGELES
1NQ*
3
The Commercial and Financial Chronicle
(1832)
4
Investments for the Businessman
of life insurance.
vidual
watchful
Urges
factor.
inflation
changes to prompt portfolio adjustments.
10
A businessman in the economic
as
be
would
he is
man
a
continu¬
of
ance
and the
him
that
do
000
with
more,
the
is
likely
from
con¬
in¬
to
the
invest¬
the stockholder
than
more
the
bond
indeed he has received
as
a
been
Bernhard
Arnold
set
the
is
for every
$5,-
and
up,
this
that
I
again
step
stress
number
one
businessman to take in
planning his estate, after he has
bought enough insurance to pro¬
vide capital which, invested
by
his family at a rate of about 5%,
to support his wife and
children, he could assure the con¬
tinuance of that support by capi¬
talizing his life at $100,000 through
an
insurance policy.
Then, if he
would
they
taken, his dependents would
have the $100,000 which, invested
his
at
viously been receiving.
bring them the income
had been receiving during
would
ance.
were
5%, would give his family the
$5,000 income that they had pre¬
Now, there
are
lifetime,
arises
they
question
the
then
to how to invest the bal¬
as
The dif¬
the other life insurance.
is
ference
is
ance
that
life
The
ends.
life
however, not only
surance,
capital
in
sum
the
is pure
recommendation
is
of
purpose
insurance
A life insurance
the
twice
ple, if
much.
as
you
For
is
pol¬
the
But
year.
a
only
same
protection
in
amount
insurance.
term
invested
then
be
chase
plan
insurance
common
were
stocks.
followed,
probably,
the
over a
the
could
as
15
common
of
is
don't
you
dollar
a
you
Today's dollar buys
much
years
purchasing
and that
pur¬
If
A
due
the
to
rise
in
gets
that
there
other
were
15 years, the
evi¬
power
by Mr. Bernhard before the
Business Management Conference, Paterson, N. J., October 28, 1953.
back
the
same
number
This
have
is
where
the
common
advantage,
of
ing
the
inflation
great
those
they
the
that
fol¬
Then
who
had
stocks wound
as
the
in
francs
one-fifth
9
England
MOS.
APP.
Lime*
2.51
payable Dec.
1953
1.65
1.11
2.36
2.53
38.
3.60
on—75c
1952
3.02
__
Nelco Metals earnings
3.41
2.72
69.
2.75
2.36
15.**
3.02
(100%
PRICE
$36.
owned).
15th.
Memorandum
on
request
DAYTON ilAIGXEY & CO.
Incorporated
great
in
one
any
stock to
risks, and you will
surely, if not
many
rapidly, than by concentrat¬
more
what
is
is
being
that
based
correlation
on
anal¬
ysis.
Once
$10,000,000 Bonds of
the
were
Australia Galled for
Payment
The
on
Jan. 15
Australian
Washington,
Ambassador
Sir
Percy
in
Spender,
selected
stocks, you are pretty announces that on Jan. 15, 1954
the Commonwealth of Australia
only certain to work out satisfactorily
on
balance over a period of time. will redeem $10,000,000 of its 5%
In selecting stocks to buy, what Gold Bonds due July 15, 1955.
investors
that the stocks went down in
of
price
is
want
you
sound
in
industries that have
indestructible
the
will
dend
stock whose
a
increase
over
time, because dividends
The
divi¬
period
a
are
the
and
bonds
paid
will
be
redeemed
office
the
at
of
P.
J.
Morgan & Co. Incorporated, New
York, fiscal agents for the Austra¬
ground.
commodities
You
have
also
well
as
such
a
dividend
thing
tween
the
as
There
rate.
is
correlation be¬
a
between
STREET, BOSTON 10, MASS.
purchases, the amount of
two.
They run to¬
gether, and there is a time when
prices over-discount the dividends
Percy said.
in
a
sight, and there are times when
prices will increase over a long
15,
1954
total
issued
will
of
in
be
$39,631,000," Sir
"This contrasts with
$75,000,000
originally
1925.
the
of these
The
inflation
loose
is
fact
in
general¬
during
after
the
stock's true
price, is the
sum
all the dividends it will pay
future,
nancial
ness
in
ad¬
Austraila's
strong fi¬
the
sound¬
of the nation's fiscal
policy."
or
of
redeem¬
maturity is further
position
and
in the
discounted to the present
interest rate.
its
All
future
divi¬
War, the stocks that
dends, discounted to the present
500% were the utility
interest rate, equals the value of
up
during that inflation
ore
were
stocks. One
was
the railroad group.
There is only one generalization
that you can find in this experi¬
a
The
stock.
common
with that definition is that nobody
ever
knows
dividends
be
practical,
view
of
what
we
what
will
the
can
all
the
Therefore, to
must limit our
we
dividends
future
dividends
are
stocks will
increase.
If
the
cut, the prices of the
actually foresee.
go down. If the divi¬
dends remain the same, the prices
of the stocks will move
generally
standard, it would be better than
to be
There
on
guided by
are men
nothing
working
H. Hentz & Co.
Members
no
standard at; all.
who have invested
more
capital
or
less than the
per
share
as
York
New
Stock
Exchange
a
American
Stock
Exchange
New
to
in France that
will
1856
future
be.
all
stocks
Established
trouble
can be applied
It is important that you under¬
stocks, and that is over a stand that there is such a thing
long period of time, the stocks will as a definite standard of value
move.in the general direction in
that can be applied to your com¬
which their dividends move. If the
mon stocks.
Even 4fi there weren't
dividends increase, the prices of and
you
made
up
your
own
to
of
in
well
so
World
went
ence
their
of
evidence
prices is this: A stock's value,
that,
France
action
bonds
The classical definition of stock
a
Beware
these
vance
rising costs of operation
prices and therefore the
stockholders would suffer.
"Australia's
ing
The Classical Price Definition
and fixed
first
a
market
these bonds outstanding after Jan.
will
the
75 FEDERAL
just
see
standard
make progress more
begin¬
ning of the inflation, only to find
sidewise
2.00
Carbide
♦Includes
and
what
beginning.
of the groups of stocks that moved
1951
Chemical
•♦Dividend
fact, the 5% rule is a
If you will limit your
up
bought stocks at the
the steel and iron
Metallurgical Company
1950
New
it
—
worth
were
much.
there
in price
Chemical
of
one.
ing in one or two issues that may,
with exactly the same number of probably
will,
but
might
not,
work out. If you invest in 20 well
francs at the end of the inflation
held
who
izations.
stocks
because
NEW ENGLAND LIME 4 0.
Union
to
wrong.
wise. They didn't go up at all dur¬
stocks. The stocks that went down
Mathieson
matter
commitment
of currency, tion, the utilities will be squeezed
the investor who merely
period of
talk
Dow
100%
a
bread
dollars he lent will not have pro¬
tected his capital in the interim.
insured
A Chemical and
look
meant
either
been
have
or
good
ago.
Advantage in Common Stocks
*
right
appreciate in value and that period of time, and that are rea¬
dence is rather strong that there therefore
the
stockholder
will sonably priced in relation to those
will be continuing depreciation of
benefit; whereas, during an infla¬ dividends right now.
have
applied toward the
of
would
life
in
trouble
lar in the next
The
other half of what you would
would
gen¬
people
as
the heard it said that during an in¬
While there flation, one should stay away from
is no telling what will
happen to utility stocks. The theory is that
the purchasing power of the dol¬ the
commodities
under
ground
the
for half
half
dollar
could get
you
determine
to
cheap
are
5% of your capital, you will avoid
good
hap¬
single life on the basis of
of
expectancies,
they
a
table
its
stocks in France that moved side-
dustries—the
The
what kind
will get back.
exam¬
insurable, you can buy
of liie insurance at a cost of about
$3,000
value
or dear.
superficial and usually un¬
a
lost twice.
know
old and
$100,000
40 years
are
francs,
dollar.
to
a good investment from
standpoint of the insured, in
opinion of this observer.
It
costs
7%
a
as
bracket.
few
are
book
whether stocks
It's
come
There
during the inflation. These people makers of stock prices.
There is such a thing, however, lian Government.
They put in francs that
Sir Percy said that this redemp¬
after tax, and security. One point were worth 200 each, and they as buying a stock on its future
tion marked the second major step
at which stocks have an advan¬ got back francs that were worth dividend potentiality — a stock
that currently pays no dividend taken recently by the Australian
tage over them is that municipal 4 cents each. They also got back
bonds cannot be worth more than fewer 4-cent francs than the num¬ at all. Or there is such a thing as Government to reduce its exter¬
par, and they are usually sold at ber of 20-cent francs they put in. buying a stock that has already nal debt and followed redemption
discounted a part of the dividend
par.
A municipal bond, like any They were double losers.
of
$20,000,000 of 5% bonds on
is likely
You
other bond, will give you back
have often heard
it said increase that
to come
July 15. "Giving effect to the two
your money at the end of the loan that during an inflation the thing about.
large redemptions and to open
period. You will get back every to do is to buy the extractive in¬
Price
must
be
considered, as
icy is not
the
as
of
ard
will
run.
who adhere to the stand¬
men
you
have selected your
stocks, though, bear in mind that
higher stock prices. be partly right on a single stock.
the standard of value that was
are
either wholly right or
Inflation generally means higher You
used to determine whether they
stock prices. But I can show you wholly wrong. And you are very
were
undervalued or overvalued
lots of good stocks that have gone much at the mercy of luck, be¬
was some
multiplier or some fac¬
even
if
the
probabilities
down during a period of inflation. cause
tor applied to a concept of future
For example, in France after the favor you, you haven't given the
earnings and dividends. The mar¬
first World War, the French franc probabilities a chance
to assert
ket
is
always capitalizing next
which was then one of the strong¬ themselves in your experience be¬
year's earnings and dividends.
It
est currencies on earth fell from cause you have not diversified.
is rarely capitalizing this year's.
The first rule, therefore, is to
about 20 cents in gold value to 4
It
is
essential,
therefore,
in
or 5 cents in gold value. The cost
plan
to
diversify.
Decide
how
building a successful investment
of food and the cost of living in much capital you have to invest
program,
that
you
watch
for
France increased about 10 times. in a stock program. If you have
changes in the value of your in¬
During that period of time, some $5,000 that you are setting aside
vestments, and make your own
stocks on the French Bourse went every year, and you
put $1,500
portfolio
changes
accordingly.
it
into
term
insurance
and
up just as much as did the cost of
Use a recognized investment ad¬
of living. The investors who held $3,500 of it into investments, don't
visory service which will afford
those stocks fully protected them¬ think you have to buy 100 shares
you with a means of supervising
selves against the depreciation in of one stock in order to start your
your holdings from week to week,
the franc, for although the franc investment
program.
Buy
10 month to month. Your
capital is
shares of 10 different stocks. Or
was worth only one-fifth as much
important. It can take care of you
as
As a but it cannot take care of
before, they had 5 times as buy 5 shares of 20 stocks.
itself.
But
man
sured
When there is no diversification
to warn you against
fallacy that inflation in investments, there is a very
higher stock prices. Infla¬ large risk of failure. You cannot
can compete with mu¬
nicipal bonds in terms of net yield
insurance, rather than to life
The
good
as
they adhere
method, they
right in the long
workable standard but if adhered
stocks that
insurance.
protection.
is
by experi¬
only been proved
not
If
that
to
are
investing in common stocks,
are certain rules that have
of value.
standard
tion may mean
that
50%
a
In
there
Essential
common
in
is
stock, and it is
a
there
Now,
that
preference
give
on
who
an
opportunity
the
municipal
3V2%
A
man
for many, many
to be in the 70%
pens
Term Insurance for Businessmen
My
the tax-ex¬
11% return if the
an
as
a
bracket
tax
and
businessmen
to
return
protection for de¬
case
past.
years
bond
time.
term
explore
me
—
during
out
Diversification
divi¬
increase
why
lowed World War I. The investors
has been the
of
nothing else. Life
insurance, on the other hand, is
protection for dependents and an
investment program at the same
pendents
let
present time, tax-exempt
municipal bonds yield more than
death, but it accumulates capital
during the life of the insured as
well.
In other words,
term in¬
surance
but
possibility
com¬
At the
pays
is
However,
suggested
empt bond.
in¬
event
already
stocks,
another
insur¬
term
paid only in the event that
insured's
a
the
mon
earned,
doing,
so
That
dends.
Tax-Exempt Bond
have
true
100% applied. If you find that there is
But by in¬ truly an objective standard, then
have some confidence in it.
But
erally think of buying common suring a great number of people
stocks during a period of inflation. of the same age and condition of again, the most rational and the
most logical standard of value is
But I should like to take this health they are sure to be right.
in
and
surance
ing.
then,
tends to increase profits,
price of their stocks.
The
I
dollars
of
inflation
many
two kinds of in¬
policies generally speak¬
One is called term insurance,
the income
or
need,
is
well at all other times.
the
means
yield
in the past.
After an insurance program has
year
year
a
that
standpoint,
holder,
earning
$10,000 a
provides
stocks
bonds
more
in¬
If
surance.
man
against
as
stocks
so
expect
can
is
through
the
of
value
ment
to
way
the
yields, compounded, build
crease,
The
power.
been
tinuing growth of the country, the
to
capitalize his
earning
best
have
Furthermore,
up.
business
good
for
would
stocks
that
are
It
he
life
in
advantages of investing in
common
be
would
than
stocks
throughout.
The
earning power
in
accumulated
and the protection for
family
same
his
if he could.
have
insurance,
his
to assure
the
could
business for this
good
man
more
It
provider.
a
say
number
have accumulated
years,
capital
power,
earning
represents
sense
and
15
to
us
This
as
ence, but can be solidly grounded
unit. in logic too. The first of these is: to in enough cases, it will work
profit margin remains at Diversify. Don't, buy one stock. out better than no standard at all.
10%, the profit earned on the unit Nobody knows what is going to Any standard is better than no
before
inflation
is
tomorrow,
or
the
day standard at all.
$1, and the happen
When you hear those terms "un¬
profit earned on the unit after after, or the year after.
If
an
insurance
company
in¬ dervalued" and "overvalued" used,
inflation
is $2. In terms of the
value
on
eye
that
profit margin is 10%, but due
inflation, the cost of goods goes
If
stock prices follow dividends
experience in France, asserts
inflation
Thursday, November 12, 1953
from $10 per unit to $20 per
issue
rather than
sidewise.
of inflation
period
a
profit margin. Let
to
stocks, with diversification to limit holding of indi¬
to maximum 5% of one's capital.
Citing past
common
during
the
advises businessman to buy terai instead
Suggests importance of partial investment
Investment analyst
in
its
legal
merely
profit participation
a
raise its prices. It can preserve
can
Investment Survey"
of
going business. A going busi¬
a
ness
BERNHARDT
By ARNOLD
Founder of the "Value Line
Editor and
in
is
certificate
stock
evidence
...
Cotton
Exchange
York
Commodity
Chicago
New
Exchange,
Board
Orleans
And
of
Cotton
other
Inc.
Trade
Exchange
Exchanges
I
N. Y. Cotton
Exchange Bldg.
NEW YORK 4, N. Y.
CHICAGO
DETROIT
PITTSBURGH
GENEVA, SWITZERLAND
Number 5272
Volume 178
Chronicle
The Commercial and Financial
...
needs
The
Chugging Along
Production
Steel
cal
Retail
The Road's Left Lane
Trade
Commodity Price Index
Food
Industry
Observing American Assembly's top-flight "think sessions"
on Economic
Security participated in by business, labor, gov¬
ernment, professional and educational leaders, Mr. May notes
'
-J
authoritative substantiation of expectation
nation-at-large were ex¬
manufacturers curtailed operations
following the recent reduction in orders.
Total production, how¬
ever, held close to the high point reached one year ago.
It should
also be noted that the usual Fall acceleration in many lines was
Declines in industrial output for the
retrace its
never
tended the past week as many
As for employment latest reports note that claims for unem¬
ployment insurance benefits continued to be more numerous than
those reported at this period one year ago.
This week
half
first
more
of
stated
further
It
1953.
to
course
Fillip
economy will
Right of the Middle of the Road.
Assembly
three-day
increase has
Economic Security here is the
on
spotlighting of
the seemingly
i
been*
economic
chine
primary metals." Manufacturing firms let out workers during t
September at a rate of 15 per 1,000 employed, the Bureau noted.;
It added, this compared with a rate of 13 per 1,000 in August. Hir-,
ing rates declined from 43 to 40 per thousand during the like'
period.
that
business
inventories
to
rose
A
Commerce
said businessmen tried to
declining sales offset this.
Department official
hold down inventories in September, but
He noted that the month's business sales
low the August
deplined $700,000,000 be¬
total of $48,200,000,000.
capacity, it points out.
saying that first quar¬
the current quarter—
This expectation is based upon notifi¬
cation by important customers that they will be back in the market
for large tonnages in December and the early months of next
Better still, the newborn
optimists
1954 promises to be fully
are
good
as
as
and perhaps a little better.
Partly offsetting these optimistic reports is the fact that steel
producers
can
no
be assured
longer
order books
of comfortable
with
high.
Steel purchasing agents
And mills must keep selling to
their furnaces going, observes this trade weekly.
have
keep
backlogs piled sky
tightened buying policy.
ing back.
Here
are some
have made
only brief
this trade authority:
Seasonal
additional "normal" market factors that
since World War II, continues
appearances
in
are
full
force
again.
the
Wilfred
A.
it
sessions by
his New-Fair Dealish son Averell;
grand-scale
direction
the
bull
discussion
sembled
steel, despite growth of plastic.
alike
businessmen,
tion
at
their
longer chart
Prices
been
fingertips.
an
to
participation can change almost daily.
to the minute market informa¬
have up
The
unwavering
getting
are
forced
now
policies
no
"The Iron Age" declares.
competitive.
more
shave
freight absorption
new
course,
High cost producers have
their
Scrap prices have been
treatment.
After
10
giving buyers and
consecutive
of
weeks
sellers
decline
Continued
the
they
on
shock
rallied
page
28
TO
number
R.
of
Chairmhn
Advisers.
Economic
New
a
RAYMOND W. YOUNG
/
CHARLES J.
V0JTA
WILLIAM J.
KEARNS
MILDRED VRBA
JAMES L. KNIGHT
from
susceptible
to
Fever,
but
pillar
of
the
widely respected
Campaign
stalwart
a
"sound"
school
AD0LPH
ZARB0CK
ASSOCIATED
have
WITH
REMER,
established
MITCHELL
the
firm
&
REITZEL,
INC.
South
La
Salle
Street,,
ANdover
3-3872
,H
CG
989
going into
he ; swept toward
wel¬
a
eral
j
come.
for by gen¬
.
.
it
for
time
No other New Deal
...
the
after
least
measure—at
hundred
.
the
agreement
had
broad
passage on a
tide of acceptance
the other hand,
on
days—drew
first
few ful-
so
pressuring away from the road's minations from the business com¬
right lane, he said, "The Eisen¬ munity and so many encomiums
Administration is not, in" from so
many groups."
hower
its
policymaking,
back
the
don't
go
clock
along
who advocate
ficial
via
at
with
all
recession
a
turn
We
history.
as
those
And
bene¬
is
1953 Car
the
Thus
authority
subsequent
our
surely has occasioned no halt!
blood-letting theory.
not a good thing!"
a
Recession
going, to
of
Loadings to
weight of the ob¬
jective pure economist unwit¬
tingly backs up the politically
The
number
of
freight
cars
conscious to keep the course set loaded in the third
quarter of this
Exceed 1952 Volume
somewhere
left
of
center.
ing
to
this
writer
his
agreement
showed
over
the volume
While
that
the
the same pe¬
in
according to the
Institute.
Hamilton
Alexander
columns
elsewhere
an
riod of last year,
with the thesis expressed in these
and
increase of 6.9%
year
Dr. Burns, incidentally, express¬
The
Cabinet
Lady
this
the
increase
smaller
was
Republican
the
Frances Perkins, namely President
"Spreading;" The
Economy
"spread"—harboring
term
connotation?
an
—
even
this
be .too
security:
action
social
on
that
her
program,
whose
lican b
r
formal
planning.
ain
tr
-
u s
"is
writers,
how
economic
with
hearings opening this week.
Quarter Century of
how
cushion
can
if
it
can
we
so
one
should
develop."
down
primarily
great
attention
calls
growth
are
of
economic
Are You
new
construction, community en¬
considering
re-v^mping
unemployment insurance policies,
tax policies, home modernization,
our
financial machinery
the
economy
avoid
to
depression."
Burns
it
made
quite
clear
that the Council has already trav¬
eled
considerable
one
sion
tion,
viser
build-
to
Americans'
in
only 0.7%. In the past, there
usually
been
a
larger reduc¬
tion.
There
that
is thus
quarter will
the
a
it.
above
number of
con¬
security
for
1953
000,000,
year
as
a
a
believe
fourth
the
ago
under
instead
loaded in. the last
year
should
the
bring
whole to
distance
in
the
planning of public works
of several stand-by anti¬
against a "possible"
depression.
*
40,499,000.
'
long experience with Canadian
timely assistance
investments should be of
to
our
You will find, also, that the services
Department can be of real
you.
of
Research
help. Why not write us to-day for up-to-date
information
on
your Canadian
securities?
There is
no
obligation.
Monthly Bulletin upon request.
reces¬
or
our
and
Republican economic ad¬
opined
Congressional
that
in
action
Ross, Knowles
implementa¬
addition
and
,
to
Execu¬
&
Co.
Exchange
Investment Dealers' Association of Canada
Members: The Toronto Stock
and The
330
BAY
STREET, TORONTQ,
1952
but below the
CANADIAN SECURITIES?
If you are, our
be
total
about 39,-
figure above the
total of
the
Nevertheless,
cars
of 37,983,000,
total
1951
in
somewhat
be
of
the volume
to
reason
loadings
car
Holding
field, as well as in other areas.
bolster
ter of
has
of
the
it
decrease
are
We
as
indicating
he
specifics,
to
giving serious
attention to stand-by authority in
the field of housing and in the
"we
Security
cross-section in attendance, which
sciousness
Getting
disclosed:
list,
Broadening
Likewise
to
from the third to the fourth quar¬
to certain groups, is high on
Congressional
A
prove
realized,
may
If
seasonal
a
to
fact,
of
cov¬
the
priority
forecast
optimistic.
mean
amount
matter
a
in an in¬ ing-in of American "socialization" quarter of this
attending is the final report of the conclave,
large enough to
in by the community's
we spread brought
business recession, and
a
security
As
er
system
prevent
to
t
with
pow-wow
essence
to
"The broad
which we, address¬
ourselves," said the Repub¬
ing
security.
Department's
would
will
increase
the
that
the third
in
Their forecast indicates
1.0%.
insists
this
of
quarter
than
loading
car
quarter.
only
to
problem
in
Culp Hobby, maintains there are
three props needed for economic
erage
Interestingly, Dr. Burns attached
fourth
the Shippers' Boards expect
much smaller year-to-year gain
Eisenhower's Secretary of Health,
Education and Welfare, Mrs. Oveta
ment
gain
year,
a
Similarly,
8%
For'Ahe
Members
On
Carry
is extension of social
Moreover, in discussing program
teletype
socialism." But
legislative
merit wide attention.
mechanization
Chicago 4. Illinois
telephone
be
governmental anti-recession meas¬
Alphabet Soup Again on the Menu
208
the -*
-
-
She
his
reticence;
of
La Sai.i.i: Securities Co.
in
frank and
freely expressed views on the ap¬
propriateness and potentialities of
dotes
FORMERLY
over
thrift,
employer
and
employee plans, and [sic] govern¬
his
detailed
PHILIP KAUFMAN
-
that
-
fare state to stop a possible recession. We are not heading toward
not
other va¬
from a- gov¬
or
nor
official
ernment
Political
Coming
Dealer,
riety of planner,
Dr.
J. HARRY MUSS0N
not
are
'
a
LAURENCE H. NORTON
powers
Change," etc., comments on
surprising lack of controversy
the first Social Security Act.
"When
the
Social Security Bill
came before Congress (in 1935) it
the
by stating on the one hand
that "we
edi¬
former
Allen,
"Harper's Magazine," and
"Only Yesterday," "The
Big
soup
pump-
economise,
one
-
Burns,
President Eisenhower's Council of
THAT
ANNOUNCE
the
the
28,020,000.
to
PLEASED
the
ideological place
of
Lewis
of
tion's
Arthur
revising
ARE
alphabet
of
government
and
terprises, and examining ways of
WE
The
that
shows
indicated by
the Shippers' Boards' forecast for
interventionism has become "built- should be off-the-record to keep the, quarter, it brought the total
its expert functions out of politics, number of freight cars loaded dur¬
in" our system.
that
the
This was most forcefully
im¬ indicated
forthcoming ing the first three quarters of this
pressed, at least on this observer, Report in January would be so year to 29,067,000, or 3.7% above
last year's corresponding figure of
in the views of the Administra¬ handled.
tax
adds.
the
priming.
road
Depression
background papers
strikingly
erick
tor
would
agency
new
effectuation
fixed
to
of
popularity and extension of social
security by government stemmed
from the Great Depression. Fred¬
than
our
premiums.
Freight absorption is in
some
cases lowering
net returns to mills, although regular base
prices are holding firm.
It is doubtful if there will be extensive
changes in base prices until new wage contracts have been signed
about the middle of next year.
But, as in the past, extra charges
might provide an area for competitive skirmishing, this trade
paper
by the as¬
educators,
for
the
the
offi¬ Report from the Council of Eco¬
cials, reveal the degree to which nomic Advisers to the President
legislators
economic
Geography is again playing a stellar role in the steel market.
Producers have evolved new freight absorption policies so volatile
must
of
conclusions
and
industry's
Auto
Helping out this Winter is booming toy indus¬
sensitive that market
the
of
University
Columbia
to
over
for
interventionist
so
private
super-capitalist "empire builder"
Harriman, before he turned
the Spring thaw.
Sales officials
the
as
E. H.
the
and
served
May
it a lift.
Food industry has been living off inventories;
promises to replensh them in the Spring. Farm buying also awaits
more
estate
manor
will give
use
gargan¬
on
which
late Fall decline slowed steel buying; preparation for Spring boom
try that will
Tak¬
place
tuan
ures
influences
of
ing
for
This is part of the "normal" market everybody knew was com¬
left
of-road.
from
it states.
year,
no
"that" middle-
the
The steel industry has passed its first real market tests with
flying colors, "The Iron Age." national metalworking weekly, re¬
ports this week.
It has hurdled the great transition from sellers'
to buyers' market without suffering a sharp decline, and the outlock now is that fourth quarter operations will average 90% or
better.
With the possible exception of the Christmas holidays, it
is doubtful that the ingot rate will slip much below 90% of rated
ter of
from
the
record $78,700,000,000—about
a
a
return
partly
$5,700,000,000 higher
than a year ago.
After adjustment for seasonal factors, inven¬
tory figures increased $600,000,000 during September.
This com¬
pared with a $450,000,000 gain in August when the rate of accu¬
mulation slowed from preceding months.
firms
to
of
currently reports
in September,
substantially
rose
ma¬
point
Stocks of manufacturing, wholesale and retail
due to falling sales.
able
American
"reflecting some reduction from peak output?
levels in the automobile industry, some machinery industries and j
durable goods groups,
The United States Department of Commerce
n e x o r
push of the
in the non-1
pronounced in the durable goods industries than
session
eco¬
author of
HARRIMAN, NEW YORK— tive Order, a
Highly significant in an Ameri¬ be added to
can
own
addition
standard
in
high
a
From
of
here
views on anti-recession possibilities and
ideology ex¬
pressed by Presidential Economic Adviser Burns, and on Social
Security prospects by Cabinet Member Hobby.
Statistics of the
factory layoffs havej
of late 1952 and the
the
that
security
One
our
Cites
report from the Bureau of Labor
a
to
living."
much less pronounced than in recent years.
United States Department of Labor stated that
been rising since mid-year from the low rate
enough, by their
provide adequate
maintaining
Business Failures
with re-emphasis
possible for fam¬
not
nomic
By A. WILFRED MAY
Production
Auto
is
save
devices
Index
Price
"it
ilies to
years—"the
changed social and politi¬
attitudes";
that
Carloadings
and
on
the past 25
over
result of
Electric Output
State of Trade
5
(1833)
CANADA
The Commercial and Financial Chronicle
...
Thursday, November 12, 1953
(1834)
0
About
COBLEIGII
By IRA U.
hope of
will i be
A-B
Presenting
some
information on tap about the brewing industry,
particularly its magnitude and stability.
here before we take a quick look
this column continues
at
a
few
specific
companies.
its way, this time to
treat (what'll you have?) an in¬ Twenty years ago 75% of the beer
was on draught; today the ratio is
dustry out of season. For you see
we're going to just reversed—75% packaged and
This is good
talk about more so each year.
beer. As you for the brewer as net profit per
barrel on cans or bottles is higher
know, it's the
fashion of in¬ due to lower delivery costs, and
vestment ana¬ wider sales radius (keg beer can't
on
lysts to
August,
thing,
Another
beer
more
and
as
a
we're
nation.
drinking
in
Back
intake was
gallons ]for each inhabitant of
when
21
thebrowas
the
Gallop
guzzlers'
This
S.
U.
poll slipped to 7.9 in 1934, but it's
Ira U. Cohleigh
brew; and then foaming back up again and is 18
to forget all gallons right now. And remember
we've a lot bigger population than
about this maltese industry till the
in 1914. This stein statistic brings
"dog days" of another annum roll
us to another important factor fa¬
While
people
that
true
beer in summer
more
brewery equities—they're
than in win¬ really a pretty fine defensive se¬
curity.
For
example,
in
the
obvious
sober or judicial ap¬
more
a
lots voring
guzzle
ter, it is perhaps equally
that
the
in
This is all wrong.
around.
it's
as
1937-9,
of
depression
"quickie"
all
is
troduction
by
thesis
the
to
way
in¬
of
that
(1)
companies in
England
enjoyed a sturdy year-in
brewing
have
and
year-out investment status for
sistent both here and
continue
be
decades, and that (2) some of our
American companies are now by
of attaining to a similar in¬
vestment stature.
This has taken
way
a
and
time
of
bit
prin¬
doing,
cipally because, as you may recall,
our brewing industry went under¬
ground for 15 years. When it reemerged in 1933,
there was a
great scurrying into
so
in England,
be quite relied upon to
in any recession that may
the offing.
in
Tax-wise, beer has been rather
treated, perhaps on the
that it is "the working-
kindly
theory
taxed
is
works
which
$9
(Federally)
out
barrel
a
about
to
30c
a
gallon; against $10.50 a gallon for
proof whiskey.
\ Since
which
ranks
Pabst
and
of
barrels
a
drink
(Hoffman
characteristic
with
been pretty
the beer trade
of
increases
such
as
have
been
de¬
money
hard,
as
soft,
honest
and
otherwise, but
It also owns a soft
year.
company
We hear
scribed
the top four
out over 5 million
the
Bev¬
thing that
erages) and Los Angeles Brewing
counts
Co., producers of "Eastside" beer.
whether
Financially
with
loaded,
V
net
working capital (1952 year-end)
of
$25 million, Pabst has paid
dividends
regularly
since
1941.
For
1950,
share
was
The
stock
value
wants
21
around
today
over
can't
we
counter.
think it
Brewing Corp.
Falstaff
Brewing
four
No
as
one
is
if
we
be worth in¬
going to
The
-
has
government
large
a
responsibility for our attitude to¬
in ward money which it may dis¬
New Orleans; and also acquired charge in diverse ways. The exe¬
cution of fiscal, debt management,
a small brewery in San Jose, Calif,
late last year.
It is expanding its and credit policies has consider¬
owns
Louis,
in Omaha
one
and
one
capacity consistently, and has the
able to do with the kind of money
earnings advantage of selling 95%
we
its
of
products in
Falstaff
has
competition
omnipotent
bottles.
seemed
powerful.
thrive
to
stand
in <10 years
rocketed its gross from $12.6 mil¬
lion in 1943 to $43 lk million in
on
These
have.
and
lated
policies
they
but
Yet,
alone.
not
are
are
very
of them can
are
interre¬
no one
They
interdependent,
and
appraisal
While
made
perhaps not
the
as
solidly
as
two
others
en¬
and no
of the requirements for
up
tioned earlier, Falstaff has been a Fiscal,
Debt
Management,
and
corporations, dozens of them being posted from time to time, dictated
Credit Policies Are Like the
public security offer¬ primarily by the rising cost of good earner and has provided a
Legs of a Three-Legged Stool
Beer was increased
$1 a good dividend return to its share¬
ings. Many of these were small labor.
holders.
At
the
present
price
in
the
fall of 1950, and
local companies; some were too barrel
These three policies and their
(N. Y. S. E.) of 151/g, the yield is
small
to
succeed, others badly again $2.20 a1 barrel in January^
relationship to existing economic
about 6.6%.
Geographical cover¬ conditions
managed, and others just couldn't 1952. This year, after a Milwaukee
may be likened to the
age is excellent.
turn out a beer of adequate taste brewery strike lasting 2xh months,
legs of a three-legged stool which
quality. In any event, the mor¬ prices were again raised by many
tality rate was high; and1 today Western companies in September
companies are by $1.50
brewing
350
only
a
barrel and 15c a case.
extant, and the trend toward fewer Recalculating this latest boost, we
and
bigger companies is highly note that a barrel will deliver 396,
glasses, and the price
pronounced. For example, the 357
brewing companies operating in upping thus is about \kc a glass.
1952 had a total capacity above
While there is nothing dramatic
10
ounce
is
New
In
York
tne
Ruppert is renowned, arid "Knick¬
erbocker"
is
beer
on
the
tips
of
has had
pany
showing
But the com¬
bit of rough going,
a
four
for
prior
years
maker's concentration may
be dis¬
Should
tracted from his task.
one
to
leg of the stool break, then mo¬
barrels; and the aver¬ on the horizon to suggest a roar¬ 1951, an operating deficit. A more mentarily/the stool must be bal¬
dynamic management and a new
output of each brewery was ing upsurge of brewery issues on
anced on its remaining two legs.
beer
have
helped the company If one
about
255,000 barrels — against the market, there are a number of
leg breaks a greater strain
along, but it does not appear that
35,000 barrels in 1910.
is thrown on the other two, and
companies
growing
steadily the
$2.72 per share earned on the
the
chances are
good that the
stronger and better; and setting common in 1952 can be
duplicated watchmaker will be
More Mergers in Prospect
dumped on
the
stage
for
higher dividends this
year; and dividends will prob¬
the floor.
You would think that a small later on.
Further, as you know,
ably be restricted to 25c a share
well managed local brewery, with many very large family fortunes
In like manner, if one of our
for 1953 on the 500,000 common
an
acceptable product, could, by in America were gleaned from
three money policies is weak, this
shares due to a loan agreement.
smart
local
selling,
and
with successful breweries; so a consid¬
weakness tends to create weak¬
public debt per
That
Forces
these
that you
sure
am
forces
long
a
period when bond
normally.
of
Let
us
that
suppose
structure
omy
vast
home
plant in St. Louis and
mon, now a
meek 13.
For a safer position in Ruppert,
premium beers, Budweiser and
served in taverns and the $4.50 preferred callable at $107
bars, race tracks and ball parks,
might deserve further examina¬
in such a way that leading name
penthouses and ranch houses from
"beers can be shipped hundreds of
tion.
'
coast
to
coast.
Brilliantly suc¬
miles,
with
freight charges
to cessful in merchandising its prod¬
Other Industry Leaders
match,
and
still
out-sell
local ucts, Anheuser-Busch has recently
tising budgets have been able to
home brand preferences
its
Michelob,
,
pate more
Thus ..expect and antici¬
mergers of local outfits
with
national
big
can't
lick
'em,
("if
'em");
ones
join
been
busy trying to cut down its
it
built
and
in
for
the
New
trend
whereby today 15 big brew¬
year
ers
sell
sell
of the beer.
40%
70%
bigger
acceleration
1960!
by
and
the
The
small
of
also
you
offered
all
You
York
of
be
other
apprized
barrel plant
directly the
Fort
to
serve
market; and only this
the
Newark
ca¬
pacity by another 460,000 barrels.
get For the West Coast trade, a 920,-
merge
major
1,400,000
increased
or
000
barrel
being
should
a
of
a
A-B
trends sales.
Los
built.
makes
Angeles
Even
7%
of
plant
without
the
is
this,
industry's
are
you
Goebel, Pfeiffer and
Anyway
are
you
look
at
it,
beer
gaining stature and the
search for good
further
day's entries.
are
a
few
eventu¬
Also, it doesn't make much re¬
ference
in
the
of
case
the
stool
leg is stronger or
securely fastened into the
more
one
another, as long as all
strong.
The
trouble
when one leg is weak, and
than
top
three
are
comes
the
same
of
fiscal,
unsound
dividends and
dej
examination
All
I've
bare facts
of
to*
arise
of
fensive qualities may well lead tjo
your
toward either
deflation and
ally, like the watchmaker, it may
be dumped to the floor.
to
Pitt.
stocks
econ¬
thing is true in the case
management,
debt
the
nomic
given
over
dollar
concern
is bound
trustworthiness
the
for
or
future
eco¬
In either event,
stability.
expediency may impair
attempts to strengthen the weak
policy
ness
you
York
and
thereby inject weak¬
into the oth^r
An
the
beer.
weak,
political
*
about
or
address
Academy
City,
of
by
Mr.
two.
Political
November
5,
before
Science, New
Lanston
1953.
This
rates.
maturities,
fered
by the
know,
yields
Treasury securities of
on
the
by
yields
of¬
corporate and municipal
on
securities and by the various inter¬
est
rates
charged
commercial
In
on
loans, mortgages and the like.
total, these various and sun¬
credit
instruments — public
represent $500
sum
dry
and
private—may
billion
of
in
invested
viously would be
the
Now,
and
the
them
ob¬
indebtedness
funds
total
like amount.
a
biggest
originator
of
debt has been the Treasury, so let
us
for the moment, that
that produce a
assume,
other
forces
prevailing structure of rates such
as savings and investment and the
for
private credit are
momentarily. Then, if the
demand
frozen
deficit
of
value
forced to finance a
billion, the market
is
Treasury
$5
instruments
credit
the
of
already
outstanding
to
billion
$495
shrink
must
make
deficit.
order to
in
the
for
room
Treasury
they must lose about 1%
value-
their market
Conversely, if the Treasury were
have
to
which
cash surplus
applied in debt
$5 billion
a
to
was
be
reduction, the market value of the
that
crease;
Of course,
must
they
is,
gain
their market value.
in
1%
of credit instru¬
outstanding must in¬
be
to
about
this is
tremendous
a
over-simplification but no. amount
of elaboration would change the
to
Treasury is required
If the
facts.
add
the amount of its secu¬
to
outstanding it introduces a
tends to cause bond
rities
which
force
prices to decline.
is
able
its
to
reduce
If the Treasury
the amount of
introduces
it
debt
which
tends
to
force
a
bond prices
cause
rise.
to
For
conditions
held
were
because
credit
time
get
which
in
up
we
or
It,
a
higher
flexible
a
therefore, takes
understand
to
to
pushed
lacked
policy.
both
across
tain
time these forces
by bond market
bond prices
long
a
submerged
were
and
to
lot of people cer¬
corollary facts. One, the large
t
shares
brew
look into
They'll
big
melt.
couple
To that end
Newark
look
an
costs.
transportation
you
Other
tilted
Our
and
credit policies. Two may be emi¬
might nently sound, but if the third is
/
products.
or
whether
hammer
other two.
be
can
inflation
r
ing from St. Louis, Milwaukee or
New York with king-size adver¬
the
in
have X
we
interest
of
structure of rates will be made up,
common
ness
prices
did not react
ments
amount
point is
make it because
reduced number
small
know what
the
but
are
important I feel compelled to
we went through
so
125 million
This
Set Up
Are Important
I
age
slight transportation and delivery eration of shares in this industry
does, however, create considerable
costs, keep its market against the may Well turn out to be a pru¬
leverage, and if RUP can cut down
inroads of the larger but more dent.
and
perhaps
profitable, its
operating costs
(which
are
remote big-city breweries.
Actu¬ pastime.
above average) and hit its market
Anheuser-Busch
ally it hasn't worked out this way,
a
bit harder, some pyrotechnics
principally due to the power of
A renowned brewery name is
advertising. The big units operat¬ surely Anheuser-Busch with its might be displayed on the com¬
Cash
Treasury
in the Bond Markets
in
fortable
millions of tongues.
then
and
charts, I want
Deficits and Surpluses
That is,
provides an uncom¬
support, and the watch¬
it
during the
year
some
se.
The
is iweak,
Jacob
name
as a
this
talk about the
to
seat by a watch¬
maker working at his bench.
If
one of the three legs of the stool
Jacob Ruppert
being used
half of
word
Treasury
briefly the sit¬
over
it developed
as
with the aid of
all
the other two.
men¬
financed by
or
first
be made of one pol¬
can
icy except against the background
trenched
uation
as
creasingly less.
Corporation
breweries, two in St.
Falstaff
much
as
dollar
securities, go
be
will
markets for
free
we
tomorrow
the
trust
Thereafter I want to say a
about
the
to
money
funding.
that
be worth more
by virtue of hardships wreaked
on others through hard times, but
interest¬
an
it,
dollar
Lanston
Treasury cash deficits and
surpluses set up in the bond mar¬
kets and those created
by debt
we
believe
today.
less, due to the
split three
was
in 1949 and is
one
G.
Aubrey
is
is, whether
worth
1951 and"l952, $1.40 a
paid. This year they
will probably total
strike.
trust
that
econ¬
our
omy.
business
among
turn
can
condition
the
Now I want to discuss the forces
by
means
great deal to do with
a
nation¬
distinguished
has
stability
the
exchange the products
and services, our regard
for it has
1952.
Price
is
money
we
labor
ol
announced.)
brewing
For instance, beer
drink."
man's
production—
much,so that by the 1934 year-
end, there were 700 beer making
may
of
since
is con¬
ducted by Pabst, a Blue Ribbon
beer and
a
blue ribbon equity.
to beer, as an economy measure.
This tendency has been most per¬
and
dividends
can
Pabst
general business indices slipped
praisal of brewing might be made
for
at
a
season
when
the foam is nearly 25%, but beer consump¬
tion dipped but 3%. If things get ing
flowing at a more leisurely pace.
the
tough, there has been historically
a pronounced switch from whiskey
All-Year Investment Status
This
level
current
paid
(While
this. was -being
a 5% year-end stock divi¬
was
wide
1914, per capita lager
the bead is on
well
1932.
written
dend
its
has
Another
Investments
Defensive
statistics
July
in
It
34.
stay peppy).
of
barrels
out
suds
at
common
authority maintains there
Treasury
with imagination
and
optimism, it is possible to
prophesy that Anheuser-Busch
common might earn $5 a share two
years hence.
In that event some
merit
might be found in A-B
fairly spend three days in a freight car
and
are several ways in which
develop broader market for its securities, most
important of which is to build debt with fewer issues outstand¬
ing in larger amounts. Urges debt reconstruction be speeded
by refunding offerings to non-bank institutions in exchange for
issues having term longer than one year. Says recent bond
market decline resulted from weak fiscal policy of earlier years.
Bond
those gifted
for
Today
trip over each
other
turning
Aubrey G. Lanston & Co., Inc.
bene¬
handsome
a
ficiary at the demise of EPT; and
and stressing
merrily
By AUBREY G. LANSTON*
gives some
early increase in rate.
an
ic Debt
Management of
are
present dividend and
Street"
in Wall
1953
stock,
common
being projected at
about $3 (after $1 EPT), which is
splendid coverage for the $1.20
Beer Facts
Author of "Winning
the
earnings
fluctuations in bond
1953
have not been
prices during
results of
the
undesirably free markets.
Two,
they were caused in the main by
an
inappropriate
and
large
cash
deficit
during business boom and
by the. only appropriate responses
that a sound and flexible credit
policy and debt management can
give to an unsound fiscal result.
The forces created
Continued
by debt fundon
page
24
Volume 178
Number 5272
...
The Commercial and Finaricial Chronicle
than.$11
-♦
■i
The Dilemma of
higher interest
excess
from
here at home."
exceed
after
that
if
our
tax
and
of
live
time.
the
today
The
fear
in
world
of
Freedom
is
the
taxes effective
Dec.
$9 billion.
is
at
destruction.;
stake.
We
more
is
called
to
upon
the
can
We
i
W h
-
No
guide
to
heritage
face
than
we
have
combination
a
soberly.
face
it
problem that
see no
an
because
be solved
We do not for
easy way.
instant
can
can
we
an
Soviet
aggression as
some obliging kind of demon that
Can be disposed of by speaking a
phrase or indicating a threat. We
do
see
dream
not
land
own
that—here
the
—
in
farmer
have
done
we
to
ten
lifted
those
of
wrecking the
all
remember
matter
a
debate
was
debate.
We
reasons.
scorn
are
We
panaceas.
fortitude,
the
realists.
respect
the
courage,
stay¬
ing-power of the American peo¬
ple. We show that respect by al¬
ways speaking the plain truth, as
know it.
we
I
And
cisely this
lieve
of
weeks,
dead
as
in the
nation
believe
create,
as
earth
on
in
con¬
Policies
not done by
was
match. We
can
his
dream
to
and to bring
good
Trustworthy
ple need but
one
which
are
we
will
we
give.
are
about This
of
and
I
*
tasks
urgent
believe
marized in
they
one
to
be the great
before
can
us?
all
be
statement:
a
and
should
think
fact
The
that
few
a
it
many
demagogues
remarkable.
sum¬
sound
sustaining a sturdy de¬
fense against the enemies of free-dom
inspired by a political
.leadership that is spiritually
.strong and honest.
—
us
analyze this statement.
that
they do is
thinking
sad
a
the health of
counts
for much
economy
more
assess
than
it
profits
not
or
merely
wages.
in
terms
We
are
is saving. So
initiative. So is in¬
individual
So is working with hands
and
brain.
decades
talk
So
have
So
freedom.
is
of
not
financial
And
these
characteristics
of
one
Secretary
ttroit, Mich.,
Nov.
9,
more
Humphrey
of Detroit, De-
1953. 1
is
Federal
free
to
Reserve
of
sell
debt
their
almost
tion
sup¬
fit from higher interest than those
who pay it.
These beneficiaries
securities
bonds—making the
currency.
This,
like
leading toward either infla¬
or
mo¬
than
savers
the
are
million
45
122 million
in
vested
families—the
people— who have in¬
accounts, life
pensions,
annuities,
government bonds, mortgages, fra¬
savings
ternal and mutual institutions and
other forms of
savings.
many
for
investment
then, are the ways we
sought to make America's
These,
have
strong
economy
with
honest
money.
What does the result of such
to meet the problem
a
program
of debt
upon
us
It
man¬
means
by the
a
check
in the trend
Continued
.
on
page
registered dealers in securities in this State.
November 9, 1953
ISSUE
Equipment Corporation
$2.90 Cumulative Convertible Preferred Stock
*
(Without Par Value)
Business: The
Corporation is a holding company, whose subsidiaries are engaged in the manufacture and
picture theatre equipment, television studio equipment, industrial controls and equipment,
and certain consumer products, and in research, product development and production for the Armed Services.
sale of motion
Purpose of Issue: A portion of the net proceeds will be used to pay certain current bank borrowings which
aggregated $3,925,000 at October 30, 1953, and the remainder added to general corporate funds.
November 6,1953. Subscription Warrants will expire at 3:30 P.M.,
Eastern Standard Time, on November
may offer shares of New Preferred
23, 1953. During and after the subscription period, the Underwriters
Stock at prices varying from the subscription price.
Conversion: The New Preferred Stock is
$25
per
convertible, on the basis of $50
share of Common Stock (subject to certain adjustments).
per
share, into Common Stock
or in part, at the option of the Corpor¬
and thereafter at prices decreasing to $50 per share
each case.
Redemption: The New Preferred Stock is redeemable, in whole
at $53 per share through November 30, 1958
after November 30, 1968, plus accrued dividends in
ation,
on
notice of issuance and
satisfactory distribution,
on
Capitalization: The Corporation had outstanding
the New York Stock Exchange.
securities
par
money—the dollar that
at
or
irrevocably authorized to be issued the following
August 31,1953:10,000 shares Cumulative Preferred Stock, $5 Dividend Series A 1952 (without
value); 300 shares $5 Dividend Convertible Preference Stock, Series D (without
value).
par
value); and 649,087
shares Common Stock ($1 par
At October
30, 1953, subsidiaries had outstanding $3,925,000 of demand bank borrowings and $12,100,000
credit notes all guaranteed by the Corporation. The V-Loan notes are to be
by assignment of monies due or to become due under certain government defense
production contracts, and the Corporation's guaranty of such notes is secured by pledge of the capital stock
of one subsidiary owned by it.
of short
term
V-Loan revolving
secured upon request
dollar's worth of goods—
is not created by wish or promise
or
fiat.
-
The First Boston
depends
things:
policy, a
sound
Reserve
System, and
sound
debt
We have worked toward achiev¬
We
First:
are
getting
on
the
our
way
budget
Government
rapidly
cause
we
on
of
under
the
as
this
know
purpose
that
Incorporated
Blair, Rollins & Co.
Central Republic Company
Incorporated
Allyn and Company
(Incorporated)
F. S. Moseley & Co.
Horn blower & Weeks
Hallgarten & Co.
indefinite
ing this elemental truth, we have
prospective deficit for the
year
i
be¬
cut the
fiscal
A. C.
con¬
family in the nation. Know¬
current
Dean Witter & Co.
White, Weld & Co.
to¬
expenditures
for adequate defense permit.
We
concentrate
Wertheim & Co.
.■
trol
as
Merrill Lynch, Pierce, Fenner & Beane
Carl M. Loeb, Rhoades & Co.
management.
ing all of these.
ward
Tucker, Anthony & Co.
Corporation
budget
Federal
sound
three
upon
from
more
Please send
to
the
me
a
copy
of the prospectus relating
$2.90 Cumulative
Convertible Preferred
Stockof General Precision Equipment
Corporation.
Name
Address
a
policy mean?
these securities. They are subject to the registration and prospectus requirements of the
Information about the issuer, the securities, and the circumstances of the offering is
prospectus which must be given to the buyer and may be obtainedfrom such of the
are
in
borrowers
insurance,
deflation.
And Third: We have
as
are
America—more people who bene¬
course,
cesses
There
many
government bonds
to
Nothing could be
more
For
government
people.
effec¬
ensure
the Federal Reserve's
years
the
further from the truth.
a
every
by
The
General Precision
double-
changed
terest rates. We look to it for
address
as if they benefited
only the few and defrauded most
of
old
deficit financing spurs the forces
of inflation and eventually cheats
♦An
interest rates
Agent
Listing: The Common Stock is listed, and application has been made to list the New Preferred Stock up¬
people themselves
Honesty is an
national income, balanced
budgets, equitable taxes, fair in¬
gross
before the Economic Club
NEW
over
amazed.
American habit.
is
acquired
Federal
In the final sense,
our
Free
monetary policy.
several Underwriters
at
twenty years.
the
But
not
It
economy
Let
a
agement imposed
contained in the
one
remarkable
is
policy
critics
Honest
see
tive
Is
on
buys
...
*
t
not an offer to sell
Federal Securities Act.
policies making
had a single,
only thing
nation
we
critical
the
ever
This is
was
single bit.
seek?
interest
of
was
money.
of the
What do
Rates
determined
can
nation.
.
governmental
Subscription Offer: The Corporation is offering the New Preferred Stock for subscription at $50 per
share to holders of its Common Stock in the ratio of 1 share for each 6 shares of Common Stock held of record
to achieving a certain state
.we
*
have
fundamental
What is this state of the
all
simple focus and aim: to give the
people honest Ameri¬
The
op¬
what¬
appropriate conditions
108,167 Shares
American
dedicated instantly and inevitably
-
if
or
living
one-half
financial
two
government
we
when
the disaster
critics had prophesied.
possible
dustry.
pledged.
With this state of mind,
of
cost
than
This
our
the last
That is the kind of
which
which
economy
the
—
percent.
this
our
less
nancial
Government
government
to
achieved
things, the peo¬
thing once more:
That is the kind of government
.
to
so
pull not knowing
ment may appear.
commentary upon the habits of fi¬
they can trust—a
government worthy of that trust.
a
and
or
It was done by applying
financial policies,
of
moved
dreams—
them to true life.
To do all these
Second:
-
magic
honest
sound,
that
resources
capacity to work,
to invent, to sacrifice, to
to save,
A
we
We
ingenuity and the industry
of the American
no
be¬
believe
reason:
people.
refinancing
the
the
as
Financial
Honest
This
The
confident for pre¬
same
the
in
extent
ever
of
whenever
4
trols.
,
are
we
of
our means.
Yet
the
patient and resolute for
are
erations
military planning and
control
Reserve
limited period of time
a
You
economy.
that
hauling
We
the
to preserve artificially low
to state interest
rates, invited banks and
accomplish. other holders of
to
short and all out
a
be done with¬
never
We
by
the
the
dema¬
gogue.
like
maturities
will permit.
simple
hard
the basis of
crying
mourners
out
within
They
quickly as
as
freeing natural correctives which
safely guarded the whole price
structure. The proof of their suc¬
cess is that' over the period of a
year — when
this
major
over¬
•
the
controls.
almost
that it could
be
—
of
military
at par,
is
answer
terribly
but for the long
con¬
nessman
promises
sustained
any
means
porting
effort for
months ago, was
oratory.
golden
this
And this must all be reckoned not
on
helped, the worker protected, the
consumer
relieved, or the busi¬
encouraged
It
and will continue to extend
years
was a sure way to en¬
inflation. Today, the Fed¬
omy here at home. We must bal¬ eral Reserve
System is free to use
ance the cost of adequate military
its power to provide a supply of
security with the capability of a credit to meet the requirements
strong economy to pay the bill. of natural demand and avoid ex¬
uncontrolled.
voices
our
can
long afford
strength.
security from attack from abroad of
with a strong and vigorous econ¬
more
raised
were
the
sober
are
or
alarming legacy from the
We
must
we
can
$273 billion of which nearly
trols.
confidence.
We
in
Humphrey
urgent problem at
tain that delicate balance between
this
arbitrarily ruled by needless
George
it
patiently and
resolutely and
with
a
ministration
We
face
of
System
We must first find and then main¬
past, inherited by the present Ad¬
task
our
dation
of
solution of this dilemma is
most
The
but
purpose?
and
country
to maintain.
of
time.
stable economy
have had in many years
we
The
t
m u.s
must
-
this
—free
have?
We
than five years. We have offered
the
first
long-term loan in 20
which the
courage
what
We have
the
save
partisan—guides
us
strive
we
purpose—material
or
Now
rule
serve
and
as
our
of
government.
principles
should
other
selfish
t
a
the first line
as
other purpose is worthy of
at this time in history.
us
cher-
we
h.
s
save
three-fourths matures within less
raise additional taxes, or
can
The
No
freedom
that
economy
more
and
of
cut expenses.
can
We
defense for every freedom that we
cherish.
Today Amer¬
.
ica
our
total debt of
defense
system
expenditures
lion deficit in fiscal 1955.
Assails
shadowed
and
war
itself
a
than
are
currently
by changing market
carefully
bal¬ conditions fluctuating both up and
There are only four alterna¬ anced that
we obtain the adequate
down with the supply and demand
tives:
posture of defense that we require for
money.
Partisan critics have
We can accept an $8 or $9 bil¬ for our security within the limit
loudly deplored any increase in
difficult* than homes and cars, washing ma¬
by, chines and television sets. We see
a
inheritance of
and
reduction
the three.
We
fluid
a
modern
our
estimated
termination
profits
of individual
people benefit
than those who pay for it.
higher interest rates
show
31 by between $8 and
from attack from abroad
rates and states
have
will
income
unless government
be substantially reduced, or new and additional
taxes levied, points out difficulties
facing the Administration in
making cuts in defense outlays, since "we must maintain that
critics of
continually
the control of its cost within limits
Problem
The best estimates that
a
can
economy
it
rate
deficit of from $8 to $9 billion next
year,
balance between security
Budget
the creation of
means
mobile
It means an aggressive
dynamic
spending continues at the present economy for that is the
very foun¬
Secretary Humphrey, asserting Federal Government will face
strong and vigorous
Year's
now
we
Secretary of the Treasury
a
It
$4
*
difficult.
By HON. GEORGE M. HUMPHREY*
delicate
than
But the next year is even more
Balancing the Budget
with
less
to
effective
Next
spending
billion
billion.
7
(1835)
*
r
31
8
The Commercial and Financial Chronicle
(1836)
Corporation—Analysis—New York Hanseatic
Metal & Thermit
Corporation, 120 Broadway, New
Dealer-Broker Investment
It
understood that the firms
is
pleased
mentioned will he
the following literature:
send interested parties
to
Co., 1 Wall Street, New York 5,
&
Knowles & Co.,
Securities—Monthly Bulletin—Ross,
Canadian
of Gold—C.
M. Williams,
F.
36 West 40th Street, New
Stocks in
Also available is Future View
Both reports for $3.00.
York, N. Y.—$2.00.
—
Corporation—Analysis—Hill Richards & Co.,
New York 5, N. Y.
Wall Street,
Riverside Cement
Co.
Oil
New
Stocks—Comparison ax 4 analysis of 17
as of Sept. 30, 1953—Laird, Bissell
Meeds, 120 Broadway, New York 5, N. Y.
York
New
&
Japan—Circular—Yamaichi Secu¬
New York 5, N. Y.
City Bank
Stocks
Bank
York
of Central of
from farm marketings
moderately in 1954,
decline
to
more
was
tentative.
less
or
Seven
Good
States
of
vagaries
summer
&
Bolger
total
est
Co., 120 South La Salle Street, Chicago 3, 111.
Most
Companies
Analysis—Eisele & King, Libaire,
Stout & Co., 50 Broadway, New York 4, N. Y.
Also available
is an analysis of Consumer Credit Corporation of Tampa, Fla.
Tax
To
Notes
NSTA
1954
Memorandum—Kidder, Peabody & Co.,
Street, New York 5, N. Y. Also available is a memo¬
on
—
TRADERS
SECURITY
crop
already
wheat
Total supplies for the 1953would, in fact, prove
season
extremely burdensome
ASSOCIATION
for the Government
Security Traders Association will hold its
The San Francisco
from
At 9
p.m.
party at the Leopard Cafe on Friday, Dec.
Christmas
p.m.
6
7:30
to
p.m.
11.
and dinner from 7:30 p.m. to 8:30
there will be a special event.
of
$2.21
it not
were
support price
(national aver¬
Wheat farmers
bushel
a
the farm).
at
age
taking good advantage of the
are
loan, which
means
that prices
may
The
gimmick, however, is this: An of¬
somewhat
average
Columbia Broadcasting System.
American Encaustic Tiling
Co.—Bulletin—Bregman,
& Co., 100 Broadway, New York
billion-
harvested, with much to
been
spare.
FRANCISCO
an¬
other
bushel-plus
SAN
instance,
Roger W. Bubson
has
Cocktails
17 Wall
well
been
annual
randum
have
borne out. For
Help You Share in Canada's Growth—Booklet to acquaint
the public with the many investment opportunities in Canada
—Investment Dealers' Association of Canada, 170 Bay Street,
Toronto 1, Ont., Canada.
Abbott Laboratories
my
crop
:—
and the Insurance Companies—Study—CruttenCo., 209 South La Salle Street, Chicago 4, 111.
&
of
forecasts
Problem
den
of
record.
earlier
Loan
pro-
duction
describing advantages
Small
for.
the third larg¬
enjoyed by industry in West Penn Electric's service area.—
Area
Development Department, The West Penn Electric
Company, Room 918, 50 Broad Street, New York 4, N. Y.
Business Reasons—Booklet
the
is
outlook
Corporation—Analysis—Shillinglaw,
Chicago
early fall
weather,
Inc., 161 Devonshire Street, Boston 10, Mass.
Webster
de¬
Despite
the
Company—Analysis—May & Gannon,
Envelope
more
clearly
fined.
Georgia Railway, Chicago, Milwaukee, St. Paul
and
United
Now
is
situation
over-all
the
Over-the-Counter Index—Folder showing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks/.
used in the National Quotation Bureau Averages, both as to t
yield and market performance over a 13-year period —
•National
Quotation Bureau, Inc., 46 Front Street, New
York 4, New York.
I discussed
which then
summer
the 1953 crop outlook,
Railroad, Pittsburgh & Pacific Railway.
& Pacific
the whole,
on
will prosper.
York 5, N. Y. Also available is an analysis
Broad Street, New
record har¬
Expects cash
Dillon & Co., 15
Oil Corporation—Analysis—Eastman,
Sunray
resulted.
vests have
Early last
memorandum—Swift, Henke
Co., 135 South La Salle Street, Chicago 3, 111.
&
dry weather which has
but holds farmers,
9, Mass.
Snap-On Tools Corporation—Card
Broadway, New York 7, N. Y.
rities Co., Ltd., Ill
adverse
receipts
Company—Analysis—Lerner & Co., 10 Post
Accumulation Area, $2.00.
Investment Opportunities in
and contends, despite
prospects
Memorandum—Shearson, Hammill & Co., 14
—
Wall Street,
Mr. Babson reviews present crop
affected grains, near
Co.—Memorandum—Smith, Barney & Co., 14
Philip Morris &
Shell
Calif.
Spring Street, Los Angeles 14,
Office Square, Boston
Ont., Canada.
330 Bay Street, Toronto,
Future
N. Y.
Co.
Lime
England
W. BABSON
By ROGER
N. Y.
Analysis—Dayton Haigney & Co.,
Incorporated, 75 Federal Street, Boston 10, Mass.
New
Norris-Thermador
1953—Bulletin—Francis I. du Pont
Crop
Situation
Company—Analysis—Bond, Richman &
Machine
Britain
Co., 37 Wall Street, New York 5,
621 South
Buying for Tax Selling in
The 1953
Corporation—Study—Filor, Bullard & Smyth, 39
Broadway, New York 6, N. Y.
Molybdenum
New
Recommendations & Literature
York 5, N. Y.
1953
Thursday, November 12,
...
ficial
Cummings
curb
higher.
1954
on
acreage!
The
5, N. Y.
piper must be paid!
Company—Table of related
oats, and rye have been harvested.
Nevertheless,
supplies
of these
Below-average
American
Telephone & Telegraph
values—New
York
New York 5, N.
American
Hanseatic
120
Broadway,
grains should suffice for indicated
Telephone
&
Telegraph
dum—Amos C. Sudler &
Denver 2,
Corporation,
Y.
Company—Card
requirements.
memoran¬
rule
should
Co., First National Bank Building,
The
Colo.
Corporation—Bulletin—de Witt Conklin Organ¬
ization, 100 Broadway, New York 5, N. Y.
si
Company—Analysis—Amott, Baker & Co.,
&
Chemicals
sharply
Reservations should
Association
The
be made
also
mittee has presented the
Big Horn
Powder River Corporation
Analysis—Rutberg &
Company, Inc., 31 Nassau Street, New York 5, N. Y.
—
Vermont
Public
Service
Co.—Booklet—Ira
39,011,000
by Dec. 4.
announces
that
Nominating
the
Com¬
the
supplies
will
work
U.
10-year
pros¬
out¬
S.
easily
suffice
for
requirements. Yet both
and
soybean prices
little
a
In¬
average.
farm stocks, total
record
1953-1954
Vicino, Blyth & Co., Inc.
soybean
indicated
cluding
following slate for 1954:
*
prove
259,483,000 bushels is 18%
flaxseed
President: Walter
Vice-President:
Central
of
turn
Henry Perenon
above
In
of
above the
and will
reduced
the
pects,
Walter Vicino
Corporation—Discussion
longer term.
crop
slightly
year average
Inc., 150 Broadway, New York 38, N. Y.
"Highlights-No. 24"—Troster, Singer & Co., 74 Trinity Place,
New York 6, N. Y.
the
10fully
adequate. Althoughdrought
Atlas Plywood
Attapulgus Minerals
is
prices
Higher
over
flaxseed
bushels
Atomic Instrument
of barley,
crops
higher
the
as
may
season
advances.
Henry Perenon, Henry F. Swift & Co.
Haupt &
Secretary Treasurer:
Co., Ill Broadway, New York 6, N. Y.
John S. Costello, American Trust Com¬
A
Glance
At Fall
Crop Prospects
pany.
Chicago & Northwestern Railway—Memorandum—Herzfeld &
Stern, 30 Broad Street, New York 4, N. Y.
Board of Directors:
,
Cities Service Company —
Analysis—Bruns,
60 Beaver Street, New York
Nordeman & Co.,
Ralph Brown, Stone & Youngberg; Maury
J. Kessler, Wells Fargo Bank &
Union Trust Co.; John F. Sullivan,
California Company, Inc.; Earl Thomas, Dean Witter & Co.
First
4, N. Y.
Broad
Co.
—
Memorandum—Hemphill, Noyes
& Co,
15
The Security Traders
Street, New York 5, N. Y.
&
American Insurance
Association of New York
announces
that
Company—Analysis—A. M. Kidder
of
New
York
—
Bulletin
—
Laird,
Bissell
&
Meeds, 120 Broadway, New York 5, N. Y.
We
make
•
good markets in
Public
Robertson & Pancoast,
Building, San Antonio 5, Tex.
385
Utility
•
Natural Gas and
•
Industrial Stocks
ASSOCIATION
OF NEW YORK
as
Points
McGovern, Bradley
Klein (Capt.), Fredericks, Murphy, Weseman, Huff_______
Leone (Capt.), Nieman, Gannon, Tisch, Greenberg
Krisam
(Capt.), Pollack, Cohen, Smith, Strauss
Serlen
(Capt.), Rogers, Gold, Krumholz, Gersten
Meyer (Capt.), M. Meyer, Frankel, Wechsler, King
Hunter (Capt.), Brown, Reid, Farrell, Barker
Kaiser (Capt.), Hunt, Werkmeister, Swenson, Ghegan
:—
Growney (Capt.), Boggs, Siegel, Voccolli, Lienhardt
Burian (Capt.), Gavin, Clemence, Montanye, Whiting
Donadio (Capt.), Craig, Gronick, Bies, Demaye
Manson (Capt.), Jacobs, Topol, Weissman, H. Frankel
(Capt.), Bass, Valentine,
v
orders & inquiries invited
your
The
concern.
indicated
under
the
5%
above
but
still
It
average.
crop
of
bushels
3,200,000,000
keting
is
1952
should
the
5
200 Point Club
Troster, Singer & Co.
2400
Members: N.
74
Y.
Security Dealers Association
Trinity Place,
New York 6,
N. Y.
Tom
Ed
NY 1.
376
Abe
since
suffice,
29%
27
pressure.
will
Greenberg
Whiting
Strauss
Stan Smith
Walt Bradley
223
215
215
207, 204
206
Point Club
Mike Growney
George Leone
Will
Krisam
size.
bushel
ease mar¬
Later in the
sea¬
price support program
and the prevailing favorable feed¬
ing ratio may result in somewhat
higher average prices.
The
edible
26
25
21
20
year
18%
around.
17
pressure,
dry
bean
crop
this
probably will be in the vicin¬
ity of 17,730,000 bags (100 pounds
each), only slightly under the 10year average, and will easily go
14%
16%
the
14
11
is
Prices
under seasonal
are
but should
recover
over
longer term. The U. S. potato
crop
of close to 374,000,000 bushels
about
average,
9%
but
below
the
above
well
r
HA 2-
outturn,
10-year
the
son,
of Nov. 5, 1953 is as follows:
Team:
Bean
dry
pros¬
corn
pects, but not enough to cause real
(national average)
Security Traders Association of New York (STANY) Bowling
League standing
Lunkenheimer—Memorandum—Dewar,
National Bank of Commerce
hot
long,
nation's
The support price of SI.60 a
SECURITY TRADERS
Bank
the
the carryover was of average
Astoria.
dorf
Co., 1 Wall Street, New York 5, N. Y.
Hanover
cut
slightly
they will hold their annual dinner May 7, 1954 at the Hotel Wal¬
Great
spell
around
SECURITY TRADERS ASSOCIATION OF NEW YORK
Dobeckmun
summer's
Last
domestic
forecast
consumption.
of
a
big
U.
10-year
normal
June
My
S. rice crop
is
being well borne out; in fact,
it will set a record high. Current
price
weakness
in
both potatoes
Roy Klein
Julie
Bean
Continued
on
page
29
Number 5272... The Commercial and Financial Chronicle
Volume 178
(1837)
faith
large
some
THE MARKET... AND YOU
the part
The Technical Prospects
held to be necessary. The best
of a rather
of traders, or to
Technically, the market has recent day's activity came to
poorly kept secrets.
solved little except that the only 1,700,000 shares against
❖
$
on
group
overhead
resistance
as
the
2,500,000 shares
antici¬
the
year's lows
was
Industry Vulnerability
By WALLACE STREETE
On
The
supply of stock in the than-average stability recent¬
280 area apparently was too ly
although, as is true with
much for the market to ab¬ most of the listed
securities,
the
ever,
heavy
overall
an
had
as
been
basis, how¬
pated. A similar attempt to
still con¬
from an over¬ forge through the barrier last
market
tinues to suffer
dose of extreme
caution, the August came to grief and re¬
slightest hint of lagging con¬ sulted in the year's lows
able to exceed the en¬
sumer
demand
constituting
this week backed off from the thusiastic
posted in September. The in¬
peak of $49 reached
test which isn't too
last year which, in turn, was enough to send a chill through roads made this time
surprising
by the
the issues affected. Gasoline
for the second holiday-short¬ the best price recorded since
industrials chewed a bit deep¬
price cuts gave a tremor to
ened week in a row.
the company was reorganized
the oils. Televisions have been er into the congestion even
in 1935.
^
*
*
❖
*
jittery on the accumulation of without the rather important
❖
#
However, the vicious han¬
sets
in
dealers
hands
and
RKO a Leader
help of similar action by the
dling the list was given in
some,
like
Zenith,
topple
rails in their sphere. So far
RKO Theatres was another
spots on the eve of the Armi¬
rather easily with each pre¬
stice Day holiday was a bit ex¬ feature,
chiefly because of diction that the holiday gift- there has been nothing de¬
treme, settling as it did on the the weekend announcement
buying might not be enough cisive to signal the direction
tobaccos, some of the rails and that the 929,000 shares held to clean out the inventories.
of the market over the near
aircrafts along with the tele¬ by Howard Hughes had been
the downturn in term, but classical theory
visions. It was graphic proof sold to a New York group at Similarly
tobacco consumption, already would call for at least a con¬
that the path downward is $4.75, nearly a dollar more
the high-speed one compared than the market appraisal of in the records, coupled with
solidating phase at this point
to the labored progress made the stock. It, too, moved up to
reports of surveys that pur¬ if the market is to overcome
uphill. It was all the more dis¬ narrow the gap, and in doing port to show an even greater the resistance on
top of the
couraging because the rails so became something of a
lag ahead, gave the tobaccos present level. Tradition also
had only lately shown signs volume sensation with trades
a hard time.
Liggett & Myers concurs since the month of
of waking up to confirm the of 23,000, 13,000 and 10,000
recent strength in the indus¬ shares. Here again the price and American Tobacco were November hasn't been note¬
trials. That they took the ex¬ failed to reach the peak it hit especially
vulnerable this worthy for decisive action
sorb at this time and the list
cuse
was
to turn down with
blow
a
constructive
to
not
gusto in 1951
seen
which
for
the
theatre and
sentiment.
si:
Sic
issue
Traders'
since
best
over
$
Sj'S
i\i
❖
For the first time in
while
$
the
New
York
a
*
bred
the
more
marks of this with
advancing
cluded
ances
Yet
a
on
ear¬
for such large blocks.
series of
%*
*
#
a
phases that in¬
couple of appear¬
the new highs list.
with
coincident
an¬
10% stock
nouncement of the
dividend and the
the
concomitant
(by
making the regular payment
applicable to the additional
stock), the issue was sold with
10%
increase
dividend
determination that
forced
Stock
Equally hazy were the rea¬
that prompted the nor¬
mally placid Corn Products
at the blue chip end of the
list to go into a fillip that in¬
cluded a one-day run-up of a
couple of points on meager
volume of only 1,300 shares.
it The best
reasons
misleading, the big
*
of
the
week,
a
couple
the
As
price pinch for the firm.
a
matter of fact
holdings by
a
fourth in ac¬
$40
EVENTS
In
Nov.
16,
(Philadelphia, Pa.)
1953
Philadelphia
Dinner
the Sylvania
Club
of
Meeting
at
Women's
Investment
Hotel.
Nov. 18, 1953
(New York City)
Association
Firms
Field
Investment
of
Annual
Stock
Exchange
Meeting and elec¬
tion.
Nov.
19, 1953
(New York, N. Y.)
Purchases and
Division
of
tion
of
Sales-Tabulating
Wall
Stock
Street, Associa¬
Exchange
Nov. 29-Dec. 4, 1953
(Hollywood, Fla.)
Security Traders Association of
New
York
annual
dinner
Investment Dealers' Association
of Canada Annual Convention at
Jasper Park Lodge.
Sept. 22-26, 1954 (Atlantic City)
National Security Traders Asso¬
ciation Annual Convention at the
Hotel
Claridge.
its
run
nor a
solicitation of an offer to buy any of these
securities.
offering is made only by the Prospectus.
November 10, 1953
Long Island Lighting Company
'if
/
£
-
First Mortgage
Bonds, Series F 3V2% Due 1983
Due September 1, 1983
Dated September 1, 1953
Price 100.929% and accrued interest
The Prospectus may
of the undersigned
signs that the fad
has about
offer to sell
on
course
be obtained in
as may
any
State from only such
legally distribute it in such State.
un¬
some
additional
had been loll¬
ing around $37. Acquisition
confirmations
come
along.
shares would
*
One
issue
*
W. C.
that
is
still
post
a new
acquired 180,000 shares, also
high with determination.
at $40, on a similar call for
Mack has been linked with
tenders. The cumulative ef¬
several other interests in the
fect of this interest in the
Street talk and if any of the
chemical company has been blends
pan out it will be a
give the stock as better- tribute
either
Langley & Co.
#
bring Grace holdings to 514,swayed by merger talk in the
500 shares out of the 803,000
almost complete lack of spe¬
outstanding. It was only two cific facts is Mack Trucks
months ago that Grace had
which was able to
to
the
June 9-12,1954 (Canada)
dis¬
less and until
of the additional
at
Waldorf-Astoria.
mergers,
each. Prior to the announce¬
ment, Davison
Firms,
Annual Dinner at the Hotel Statler.
$25,000,000
Co., already holder of 52% of the market for more than a
but there
are
some
the issue, wanted to enlarge month
quiring 100,000 shares at
far greater volume is
NEW ISSUE
brighter spots of the rumors of them and even
the common rapidly merely logical ideas of desira¬
tentative
an
The
rumors,
closing the gap when it was ble unions have had a
learned that W. R. Grace & proportionate
influence
its
to be breached on the current
digit class.
This announcement is neither
Wall Street
were
merger
V
COMING
May 7, 1954 (New York City)
move,
apparent that the issues were plus the *fact that declining
costs have been helping ease
being sold on the good news.
*
back into the
sons
badly. There have could advance
been other cases where it was of nebulous
Davison Chemical was one
Chronicle.
those of the author only.]
Run-Up in Corn Products
off rather
,
this
were
vague
had to be involved to account
the
showed
in
necessarily at any
with those of the
They are presented as
for
reasons
particular
expressed
not
of America Annual Convention at
were the Exchange has a fixture sell¬
play in a few of the lower
spectacular ac¬ ing more or less regularly at
suspicion that the seven-week
priced stocks holding the re¬
tivity in United Corp. which less than a dollar. It is Lehigh
long upturn from the Septem¬
ported volume to a fairly re¬
included a ^ouple of single
ber lows was composed far
Valley Coal which, dogged by
transactions of 50,000 and 25,spectable figure which wasn't
more of traders looking for a
deficits on even its preferreds,
000 shares and a one-day per¬
all it seemed to be. This is dis¬
fast turn than investment de¬
formance of total sales of 96,- first slipped through the dol¬
mand that could be counted
couraging to the technicians
200 shares. It was generally lar level two weeks ago. So
on
to support
further pro¬
because if the supply belt is
assumed that trust liquidation far it has been unable to
rally
gress. International Paper in
also
action
The
views
do
coincide
#
indications
Volume
somewhat
Far
time
which
made.
the Hollywood Beach Hotel.
long
Rally?
[The
article
on
were
Investment Bankers Association
the years.
#
split.
were
week.
the
picture companies
#
A
the
was
9
to
remarkable
Glore, Forgan & Co.
Goldman, Sachs & Co.
Union Securities Corporation
Blair, Rollins & Co.
Coffin & Burr
Incorporated
Hemphill, Noyes & Co.
A. C. Allyn and Company
Incorporated
Equitable Securities Corporation
Incorporated
Harris, Hall & Company
Carl M. Loeb, Rhoades & Co.
(Incorporated)
Paine, Webber, Jackson & Curtis
Shields & Company
Financial Chronicle .'. .Thursday, November 12, 1953
The Commercial and
10
(1838)
•
Securities
Outlook for Business and
BICKFORD*
By JOSEPH C.
Assistant Vice-President,
Bankers Trust Company,
New York
,
City
of business as it affects the securities
markets, New York banker expresses view second half of 1953
will be better than the comparable period of 1952. Sees no
likelihood of increase in interest rates and holds bonds offer
After reviewing situation
ing reserves as needed by the
banking system, both by reduction
of reserve requirements and open
yields with
nian
1953
a
t^ian
number
Look¬
Joseph c. Bickfoi-d
policy
should not as-
all
in
recession
serious
a
sume
business.
In spite
from
of some pressures
heavy new issue calendar over
the last month and the next two
a
or
not apt
in
slightly
three, interest rates are
decline very
fact, should
period is behind us.
after this
The quality
yields
better
and,
significantly
increase
to
true also of monev
grade preferred
principal atcorporate in-
stocks although their
is
traction
market for the com-
The
vestor.
the
for
stocks has deteriorated more
mon
and we believe
than has business,
be held and purchased
most types of investment ac-
they
in
may
careful
and continual upgrading
than
More
counts.
selection
ever,
is necessary.
investment
definite
A
and
nhv
philoso-
by
supported
program
quality research will continue to
provide the framework for su-
perior investment results
back
Looking
founded.
much of
more
over
it
1953,
is
business
have
again
been conThe country, and indeed,
the Western World, once
declining
a
has been able to boast of full
capital
employment, high levels of
income
expenditures,
consumer
purchases, and savings.
Overall
business profits advanced from the
steel strike-affected last half of
1952 and were better than in the
first six months of 1952.
In part,
doubtless
this
over
1953
into
work stoppages
reflected
of
carry-
a
business which
limited
a year ago.
Nevertheless; few doubt that the
full year will report profits exceeded only in 1950 when inventory profits were a big factor.
This is not to deny that there
have been soft spots, but rather to
nnirU nn thai thnv havp hppn offset
by the gains of others.
have
moved
some
tile
move
There
nrofit
goods
margins
only
or
at
did
The coal and tex-
at all
industries
the
within
manufactured
consumption
tata
narrowing
not
recessions
been
boomr
had
and other groups to
a
tough
time
slide have in-
eluded farm machinery, and some
metals.
Space does not permit detailing them all but I am sure we
are all conscious of mounting in-
ventories of
larly used
inventory
and
homes
credit
flexible
poHcy to
meet
varying needs of the economy and
P™ credit, stringency is "a
lo§lcal expectat
factories
automobiles, particu-
ones,
and all of the oil
situation
which
Philosophy
Investment
year
for productive corporate use. Lowering of personal income taxes
wdl return to private hands a very
larSe aggregate sum which both
directly and psychologically could
stimulate consumer buying.
has
Regional Trust Conference, San
Diego, Cal., Oct. 30, 1953.
quiring
forms
financing in all its
more
to
.
bridge the gap between
petities. You will need to be care¬
ful in your
for
or
though
selections in this field,
will be important
profits tax
relief, there has been some build¬
ing of capacity for future needs,
(just as in the oil industry) and
many
beneficiaries of
the
in
market
full
a
excess
some
valuation
what to sell?
In most
will recognize these.
Some you will have lived with too
long to forget.
In general, we
believe you should work continu¬
ally
toward
an
upgrading
of
like
the
as
value
than
There
ability
under
a
|the increasingly com¬
conditions
and
in
are
prospect—
companies
for
great
a
many
which
stocks.
good
combine
the
present dividends
less favorable conditions, to
to
pay
with their communities and
provide
increasing return over
regulatory atmos¬
an
period.
The
improving
certain com¬
favorable
is
phere
in
think of
offers
"preference"
to
which
preferred
utility stocks
nerable
industries
tend
of
stocks
insurance
and
package
a
better
grow
the
near-term
common
utilities
money
quality. Sell the weakest compa¬
nies, those which seem most vul¬
petitive
places
cases
on
earnings prospects.
them
you
to
reflecting
—
rapid growth re¬
corporate needs and investors' ap-
Next,
cases
accounts under his supervision
substantial proportions of common
period of time
favorable results will be obtained
from investing the money when
received rather than attempting
Certain rigidities built into our too definitive timing, or trading
economy havd their compensa- operations. If there is a regular
tions. Employment and payrolls flow of money into the account,
continue high and are less sus- "dollar-cost-averaging"
through
ceptible to contraction than in regular purchases limits the risks
previous periods of gloom. Social of poor timing.
security, pensions, disability paySuch a fiduciary's primary rements, increased insurance cover- sponsibility should be informed
a?e' ad Provide the consumer with selection of sound values. He will
hi.^er,a1^. mare regular funds i00k for the industries that seem
stocks.
Over
a
™ltb. wbl?b *° buy and.instalments, m°st favorably situated from the
sav<v Mo,st
of his debt
due
is
in
Insofar
viewpoints
as
his housing
is
concerned, the big mortgage mafunX wben n0 °ne li
Jend bas b<rea rePlaced bY monthly ?ay™™s m maJiy cas^s .rePresentll]g little more than a fair rent.
of
regulation,
(or
mand for their
the
lack
character
of
it),
of
de-
products and abil-
ity to supply them 'at suitable
Prices- Then select the best cornpanies in these industries, those
with able managements, good
excellent research fa-
products,
°hp" cilities> a sound Program for de^mei creditt, in^ somecases be- vel0ping their full potentials.
gatfrec0rd amounts Te Lve the u,There 18 i?° SeCtf} -ab?ut ho™
lean^
averlhiffh tbesf-are chosen' 11 18 by Sood
econ0mvandaGovernment hard WOrk' a continual examinaconfiLnt will Hn ^rv tlon and reJe'ction, constant strivSdng withhi its nower to prevent ing to kn0W the comPa»ie* betJ
recession
and fhele ter'
to keep in fre<3uent touch
P0Wers are verv great
The
si Wlth their manaSements> know
Reasonable investments assumn them and their Probable successti
{
th t busRneTs ^av decline ors
wel1' to understand their
A t hin f/ wfn S miplcl competitive positions. It involves
—
ferred
somewhat but d Will not collapse.
constant making of estimates of
Interest Rates
present and future earning power,
/ revised
for assumed recessions
I wisb that time would permit and subsequent prosperity, or
to adopt for this talk my asso- poor conditions peculiar to a par.
.
.
.
plat'ei^°^o?ei"'ts0n's,retce"t paper ticular industry
011
lnterest
rateS,
but
by now
or company.
How to Invest Today
of
wedded
unless the
case,
ceptional,
In
our
company
own
is ex¬
have very
have to
we
20
Administration
an
inflation.
to
and
defense,
demand,
years
compelling and special reasons to
hold equities of companies which
do not provide goods and services
for which the demand is increas¬
ing more rapidly than the over-all
economy.
some
or
and
areas,
What to
Buy?
question is "what to
buy." And if you are feeling par¬
"ornery"
ticularly
remind
will
by
that
me
now,
I
you
have,not
we
to our theme
back
come
wide
It
is
rare
a
song
variety
of
market that
these
values
to
satisfy the needs of any account.
The oils
are
the group to
which
the greatest emphasis.
From the standpoint of availabil¬
ity of quality companies it is ex¬
cellent, only the chemical group
of listed stocks approaches it in
aggregate
some
The
value,
and
there
are
good unlisted equities.
stocks have been unpopular
very
the
market
appraisal
We
believe
is
pessimistic and that these
short-term considerations in
over
are
an
which has much
industry
want
in
of
investments.
sion as to what to sell and what
to buy, or to do nothing,
There is no ready answer to
ing versatility and value. Avail¬
able securities offer varying de¬
®PefUJe,fh?eres of„ ered"
Lrol 3I1Q ClGbt lYlSriH^JGIYlGrit.
The
Federal has been actively supply-
.' Firat of
IS
are
a do-nothing policy
completely satisfied that
earnings
and divi¬
dends, great raw material wealth
supporting
a
as
fire,
etc.
major disaster
a
Worcester,
There
disastrous
a
be
may
uncom¬
periods of adverse
experience, such as we had until
fortably' long
automobile
lines.
nationwide com¬
petitive situation which, as in the
past month or two, resulted in
in
recently
nationwide
those
a
entitle
in
cuts
which
to
the
below
rates
experience would
companies.
For
this
one
or
few
a
Basic¬
allied fields.
ally, however, the
afford
manufacturing and
comfortable
a
margin
of
safety for the ably managed con¬
cern.
Time
does
not
permit
a
com¬
plete cataloguing of all our likes
and dislikes or to detail our ideas
sure
am
of
on
diversification.
to
as
you
will find
However,
a
I
broad list
equities which will attract you
both
an
industry and indi¬
vidual
Certainly,
investment
have confidence
basis.
company
subscribe to
philosophy
and
our
in the world's most
dynamic
econ¬
fail to have
participations in
electronics, in
instrumentation and controls, and
in
you
the
and
will
not
metals
wonder
stocks
of
of
today
will
own
looking
com¬
You
tomorrow.
forward
panies with the resources for the
discovery,
development,
produc¬
tion and distribution of the future.
ing need for products of increas¬
of combinations of income
and capital gain potentials.
It is
an
industry which is soundly fi¬
nanced
to an amazingly large
extent from
retained earnings—
W. G. Hoiccmbe With
grees
McCarley & Co.
GREENVILLE,
S. C.
—
W. C.
—
Holcombe
has
become
ofers examples of superb manage¬
with McCarley &
ment, sound research, exploration,
South
development,
SGldom the COFFBCt OllG UIllGSS
you
such
omy,
distribution system serves a grow¬
their two factors!
by the whims of nature,
hurricane, by
a
and the threat of a return of
Iranian oil to the world markets.
ness,
"today is a
time, and I have to make a deci-
in
as
if you
and
bad credit squeeze and bond market declines last year resulted
*rom exaggerated fears and pres®ures which are not likely to be
repeated. Corporate and individual borrowings have passed
their probable peak for a time,
inflationary factors have eased,
and an interest rate pattern has
bee.n established on a basis around
which the Federal Reserve and
operate
affected
their markets reflect
concern as to inventories, possible
crude and product price weak¬
lately
current
can
ex¬
writing results may be adversely
give
we
Good
this because so much depends on
the position and requirements of
the particular account and the tax
problems and personalities involved. Parenthetically, beware
action solely because of these last
previous
on
rate structure
does not offer some sound values and supervision is designed to al¬
low
profitable operations on a
which
sooner
or
later
will be
enough
basis
to
assure
translated into continuing and in¬ broad
creasing dividends. There are a availability of sound insurance for
the country's needs. This does not
number
of
industries
within
which can be found a sufficiently guarantee profits to all but it does
again.
read lb Thls stld correctly states
I have tried to brief an investthe' fundamentals of our position, ing policy which minimizes the
The highlights are that the really question of timing but you will
and properly,
based
may
you, ,you
we
ask,
is
reason,
we
prefer multiple line
not be able to
companies to those specializing in
buy cheaper later on. Well, here
told
what
ma7.,o£ J™ ^j!1 have heard or
which
perience. For short periods under¬
There may be
Your third
mo
Treasury
Western
great
are
huge units and
that
i.e.,
waiting for
opportunity,
forever,
feeding
variations
taking action then.
or
equipped.
period.
evident that those who have been
picture
of
needed roads,
etc.
A large
A
much of it spread over a very long
Business
predicting
through superior re¬
on itself.
Here a
companies stand out
but there are others.
In general,
capitalizations are sound but the
search
half-dozen
re¬
week
to
new
markets
month, to determine as
to
never-ending de¬
and existing
a
of
companies, and
interest rates,
permanent rise in
consumers or meet urgent wage people's money in most instances
demands. In some it will add cli- can best discharge his responsi(except rectly to profits or provide funds bilities through including in the
late spring
of 1953). This is
and the summer
and
now
'' ■
Federal Administration is working substantially over the years, sub- which are losing ground on a panies still have the ability to
toward a balanced budget, reduc- ject, of course, to some setbacks short- and long-term basis—those earn a generous return if allowed.
in
this
industry
ing their inflationary influence of of varying depth and duration, which are merely "static." Mini¬ Investments
your
cyclical
risks
now should be selected with a critical
deficit financing, but this is going Very few things will stand still, mize
when there is every indication we
to come through reduction of ex- some entire industries will adeye on the character of the com¬
penses and lightening of the tax vance, others will decline in im- are certainly nearing the end of munities served and the quality
a long prolonged boom "plateau."
load.
Elimination of the excess portance or disappear. Alpaca suit
of regulation.
profits taxes in some cases will linings and pure silk stockings are Rid yourself of the poorly man¬
Earnings
of
insurance
com¬
aged companies which have prof¬ panies follows reasonably predict¬
cushion the decline in profits, in hardly n\ore than memories.,
ited only in an economy stimu¬
others it will permit lowering of
Under this philosophy the
able patterns reflecting in large
prices to lure otherv/ise reluctant prudent caretaker of other lated by the "needles" of war, de¬ degree the rate making precedure
in
period
brief
a
velopment
' 1
11
i
offering
ity,
yields relative to risk, golden 'buying
We
occasional
congestion the bottom of the market. The public
than a further substantial chances
are
against recognizing
bond market offers
than
have
been
available for many years
for
month
The investment philosophy
which appeals to us is that the
best units of American business
wlb continue to be profitable
■■*■*■■■ portaVt'lu^Porting""factor. " Our that the economy will grow very
and
invest-
ment
get started on it right away. Buy
a third to one-half of your even¬
ment
must be furnished
Cars must be retired, etc. The stimulus of the defense program has passed its peak
but it promises to continue an im—
—
built this
t tl Y1C V
6 XI t)' Ci C
in
rather
from increased
works, the
schools, hospitals,
reasonable
but
are
1
'
reflecting
Future
possible de-
a
public
ahead, some
deterioration
is
rates
of a
somethings
are
Aa
to
diture^wilPcome
further
ing
interest
plateau. We tual stock
position
the period of heavy seasonal
view
from
week
on
ahead?
offsets
Some
fairly substantially
in 1952.
Immediate
What lies
re¬
be
greater
believe
We
generous
should
sults
needlessly.
economy
supplies.
The
full
that
shape
best
i'
f
■
and that it holds the
maximum possible of the securi¬
o
period of 1952
so
-i
k
possible,
f^thtre^
parable
year
i
forced lowered refinery operations
of to the balance. Keep some buying
and cut-backs in allowables for municjpaj ancj corporate financing,
reserve
for a while, but do not
production of crude oil even be^
market
therefore
postpone the remaining
invest¬
fore the promised return of Ira- for a time is apt tn 'nffpr snmp
ic
nnt
to offer some
profits
better than the
co m
the
■
i
market
one
for the first
half of 1953 were the second highest
on
record.
There
is little
doubt that the second half will ibe
Business
in
is
account
*
ties you like best and not any
purchases. The Treasury is
that you do not like, and that the
still actively interested in length¬
proportions of bonds and stocks
ening its debt maturities and faced
and industry participation is
with more deficit financing while
proper. Perhaps desirable changes
bending its head under the $275
cannot be made, but you should
billion debt ceiling. Nevertheless,
try.
its efforts to refund the debt are
If you have a new account come,
likely to be temperate and so in—all
cash—our
advice
is
to
restrained as not to burden the
draw up a long-term program and
exception than has been available for
many years.
Looks for a definite investment policy and further
research to provide framework for superior trust investments.
better
the
.t
f
Also
on
our
and merchandising.
hit parade are
the
chemicals, second only to the oils
the standpoint of
availabil¬
from
Carolina
associated
Company, Inc.,
National
Bank
Building. Mr. Holcombe was for¬
merly
an
officer
Smith & Pate, Inc.
of
McAlister,
Number 5272
Volume 178
The Commercial atid Financial Chronicle
...
quarter.
Little
Change in Domestic
Consumption in 1954
of
Agricultural Economics, U.
S.
While
Finds demand in some segments of the
levelling off and in few instances declining, but looks
for only a small reduction in economic
activity in 1954. Indi¬
cates business
inventory position is most sensitive and vulner¬
outlays.
three years this
Annual Conference has met in a
factor in the gradual transition of
the economy to a more competi¬
setting in which there
tive situation. By and large, sell¬
ers'
markets
have
turned
into
that
assurance
prospective
demands
would
in
crease
the
ahead.
year
Rising
mands
de¬
came
from
all
sec-
tors
of
the
economy
—
from the Fed¬
eral
buyers' markets.
for
important
creased
e n s e
year
State
Nathan
M.
for
highways
and
other
their
food,
housing
which
The
the
leveling
off
of
the
in
and
for
less
in
economy
in
than
1953.
1954
abroad,
The
rate
ditures
the
in¬
almost $6 bil¬
rose
of
consumer
Consumers
$6 billion
mobiles
expen¬
$16 billion—62% of
rose
total.
about
other
and
spent
for auto¬
more
durable
goods, over $4 billion
be
may
more
for
food,
reduction
clothing and other nondurables, and almost $6 billion
and
more
Yet,
the
total
in
economic
activity
employment that appears to
toe in prospect for 1954 is small.
And
its
flow
of
income
well
be
offset
taxes
restrictive
starting
continued
to
by
lower
rise
may
income
January,
the
wage rates in
an increase in
in
and
unemployment compensation
ments.
Total
available
pay¬
income
consumer
for
spending in 1954 is
likely to be about as large as in
1953, and the domestic demand
for food and
other farm
also should be about
Demands
the
on
as
products
good.
economy
have
for
rent
other
and
serv¬
ices.
the
on
persons
next
sectors,
some
effect
It
that
business
the
boom of the past year has not de¬
In fact,
program.
account for
now
percentage of
activity than
clear
that
past
a
quarter of 1953,
gain of 1V2%. In the preceding
the increase in total
;year,
expen¬
ditures
a
totaled some $13 billion,
gain of only 4%. The rise in de¬
mand
this
matched
by
an
increase in output. Price
changes have been small. The
year
Consumer's
was
Price
Index
is
rently less than 1% above
our
and most of that
ago,
year
due
was
to
rising rents and charges for other
It is also
extent the
to
a
large
seen
a
consumer
Consumer
incomes, after
taxes, have risen some $13 billion,
despite the decline in the income
of farmers.
In
addition,
outstanding
rose
consumer
about
$4
approximately equaled
the rise in consumer expenditures.
The savings rate of individuals as
with
compared
clined
this
a
income
little from
probably
increase in
a
a
de¬
year ago
reflects
consumer
rather than
has
more
but
indebtedness
What
are
lessening in the
the
year
in
add
up
have
of liquid
ac¬
the demand prospects
ahead?
such
about
assets.
First,
information
demands
let
as
from
us
we
the
clothing
down
are
a
slightly.
year
less than 2%.
ago,
The
but
prices of farm products and
cessed
toy
foods
slightly
by
Drops in wholesale
were
higher
almost
pro¬
offset
prices
of
in¬
dustrial commodities.
While part of the increased out¬
put
in
the
third
quarter
over
a
reflected slightly higher
levels of employment and a bit
longer work-week, a very sub¬
stantial part was due to a sharp
.gain in productivity per man hour.
year ago
This
*An
31st
has
been
address
Annual
a
very
important
by
Mr. Koffsky at the
Agricultural
Conference,
Washington, D. C., Oct. 26, 1953.
be
under"
of income for those who may be¬
come
unemployed.
to
come
Spendable in¬
consumers
the
about
average
well
may
same
in
1954
in
as
further
any
small.
The
decline
shift
to
a
credit
consumer
tor.
for
important fac¬
an
But consumers'
should
food
fected,
held.
not
expenditures
of
quite logical that this need
seems
not be
cumulative.
Some adjust¬
already been made—
ments have
the
reduction
in
defense
outlays
in the third quarter, the possibil¬
ity that most of the reduction in
business
plant
and
equipment
outlays is occurring in the current
quarter, the gradual decline in
housing
since
starts
earlier
this
the
and
slackening rate of
inventory accumulation in recent
year,
months.
There
is
that such others
as
real
prospect
will
also come
in piecemeal fashion.
While the human equation—con¬
may occur
behavior—is
still
pretty,
unknown, there is little to
suggest a tightening of the purse
sumer
much
strings, if incomes
are
maintained.
new
Almost 4 million
babies each
not conducive to increas¬
year are
ing the savings rate. And, if there
is one thing that stands out in the
broad
of
sweep
the
that
creases
his
services
history, it is
our
American
takings of goods
as
fast
in¬
consumer
he
as
and
can—and
gives ground very reluctantly and
only under pressure.
af¬
much
be
if the level of income is
Food
expenditures
have
Spending for
less than in the fiscal year which
ended last June. In fact, the rate
of
security outlays
was reduced $2
July - September
quarter this year from the previ¬
ous quarter.
Whether or not fur¬
billioii
ther
in
the
reductions
realized
are
as
presently planned, depends large¬
ly on developments in the inter¬
national
ject to
situation, and thus, sub¬
a
considerable
uncertainty.
It
should
degree
be
of
noted,
that most of the reduc¬
defense outlays for the
moreover,
tion
in
boom
this.
in
Furthermore,
the
commercial construction
is
following the trend to
suburbs seems likely to con¬
the
tinue in 1954. In view of the
con¬
tinued cost-price squeeze in agri¬
at
reduced
Charles
Murphy With
housing
since
of
was
accomplished
in
the
27,
third
relatively small
ness
the
on
from Government, busi¬
consumers.
One might
economy
and
well inquire whether the additive
starts
is
starts
somewhat
under
This is not
to
an
tion
decline
may
the year
new
at
a
Recent
Murphy,
3rd,
New
way,
Co., Inc., 42 Broad¬
City, in their
York
trading department.
Joins Brown Bros. Harrimam
(Special
to
The Financial
BOSTON, Mass.
has
added
been
—
to
Chronicle)
Edwin Hills
the
staff
of
Brown Brothers Harriman & Co.,
10
Post
Office
Square.
any
or an offer to buy, or a solicitation of an offer
of such Debentures. The offering is made only by the Prospectus.
one
i
m
$25,000,000
further
some
ahead, the formation
households continues large
rate
O'Brien
offering of these Debentures for sale,
buy,
April. While residential construc¬
over
Charles
Bernheimer &
have
million units compared with a rate
of
over
1.1
million
units
last
of
some
in
reports
that
950,000
the
a
Northern Natural Gas Company
year.
in¬
press
mortgage financing is
readily available.
more
3%% Sinking Fund Debentures
Dated November 1,
1953
Due November 1,1973
Inventory Position
The
business inventory position
perhaps the most sensitive and
is
vulnerable
most
there has been
of
segment
Through
economy.
of
most
Price 101% and accrued interest
the
1953,
considerable rise
a
in business
inventories, which are
$6 billion larger than a year ago.
But the level of business sales has
also increased proportionately and
the ratio of inventories to sales is
about the
now
Although
same
the
as a
ratio.
prewar
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
Prospectus may legally be distributed.
dealers in securities and in which the
year ago.
Blyth & Co., Inc.
inventory
ratio is
higher than in most other postwar
years, it is substantially below the
It
quite
seems
likely that without further
un¬
expan¬
The First Boston Corporation
Smith, Barney & Co.
A. C. Allyn
be
a
a
next
minus factor for the economy
whole
since
production
tories.
turn
is
Yet,
part of current
going
into
the
ventories,
such
affected.
that
over-all
some
encouraging
rate
of
has
cumulation
in¬
of
been
be
factor
inventory
ac¬
White,Weld & Ct\
Ilornblower & Weeks
Hemphill, Noyes & Co.
Incorporated
Carl M. Loeb, Rhoades & Co.
Paine, Webber, Jackson & Curtis
F. S. Moseley & Co.
Salomon Bros. & Ilutzler
Dean Witter & Co.
Dominick & Dominick
Alex. Brown & Sons
G. H. Walker & Co.
Baker, Weeks £ Co,
..
Laurence M. Marks & Co,
Central Republic Company
(Incorporated)
Riter & Co.
Weeden & Co.
Swiss American Corporation
Stern Brothers & Cov
Incorporated
Robert W. Baird & Co.,
Cruttenden & Co.
First of Michigan Corporation
Incorporated
slowing
in
Henry Ilerrman & Co.
to be
any
significant change in view in
Kalman & Company, Inc.
Newhard, Cook & Co.
Goodbody & Co.
the second half of 1953.
There does not
Stone & Webster Securities Corporation
and Company
items
automobiles may
One
the
Merrill Lynch, Pierce, Fenncr & Beano
to
pressure
level
although
used
as
sales
significantly, there is
likely to be real
Lehman Brothers
inven¬
unless business
down
reduce
is
This will likely
year.
Harriman Ripley & Co.
Glore, Forgan & Co.
Incorporated
Kidder, Peabody & Co.
sion in the economy, business will
continue
to
accumulate
inven¬
Piper, Jaffray & Hopwood
our
net
trade
with
Imports
are
higher than
exports
are
reduced
seem
position
countries.
a
year ago,
foreign
and total
also larger, despite the
level
of
the
next
will
McCormick & Co.
agricultural
Chiles-Schutz Co.
in
year, some coun¬
continue to accumulate
holdings.
consumer
J. J. B. Hilliard & Son
Pacific Northwest Company
Quail & Co.
ex¬
Harold E. Wood &
fiscal
Turning to the
Caldwell Phillips Co.
Shearson, Ilammill & Co.
running
ports. If foreign aid continues
the
Aug.
a
reduction in total demands
'
has become associated with D. F.
last
spring, more
than is accounted for by seasonal
changes. The current annual rate
dollar
of
points to only
appraisal
D. F. Bernheimer & Co,
levels.
Nonfarm
declined
tries
Review
The arithmetic of this
culture, farm investment in build¬ effects of a number of relatively
ings and equipment may remain small reductions might not be
current fiscal year, as indicated in
Budget
The Conclusion
tributed earnings are available to
finance
not
government sector.
than
social
competitive economy places been maintained at a rate of 27%
sharp emphasis on cost reduction of consumers' spendable income
even though there
may be less on through most postwar years in¬
expanding plant capacity. Large cluding the recession year, 1949.
depreciation reserves and undis¬
as
cumulation
national security programs in the
current fiscal year is likely to be
Wholesale Price Index is currently
in
scheduled
laws
tories
the
services. Retail prices of food and
lower
would
total economic
boom.
cur¬
a
reduction
good
why
security
slightly smaller
a year ago.
has
year
a
credit have
to the third
5%
a
programs for the national
/basis
1952
has
in the fourth quarter of this
year
from the third. Yet there are
dicate
defense
ernment, business and consumers
rose $26 billion on an annual rate
of
indicated
merce
becoming
the
billion, mostly for the purchase of
automobiles.
Thus, the increase
in incomes and the greater use of
quarter
industry
ments
anticipated capital expenditures tures
by consumers may be re¬
conducted by the Securities and
duced, particularly for some dur¬
Exchange
Commission
and
the able goods where 1953
purchases
United States Department of Com¬ have been at a
very high rate and
pended significantly on expansion
"The flow of expenditures by gov¬
third
con¬
1953, and a year from now is
plant and equipment may be less not
likely to be much under cur¬
next year than this. The survey
rent record rates. Some expendi¬
in
credit
the
American
by the
new
generally been greatly enlarged in
it might well be
expected that business outlays for
of
clear
is
Increased sharply in the past year.
from
unless
recent years and
lion—22% of the total increase.
declining, there is a real
possibility that the total demands
the
of
which
total.
ment
up
stances
on
local
and
tories and United States invest¬
goods
few
State
of
including
housing
construction, new business plant
and equipment, business inven¬
economy
a
rate
Investment outlays,
increases
in
each
of
rising
standard
of
living.
JNow,
with
demands
from
segments
$2.3 billion—
rose
ly for schools, streets and high¬
ways
rose
$1.8 billion—7% of
a
some
secu¬
government expenditures, most¬
con¬
make
Federal
of
rate
expenditures.
schools,
other
and
services
and
plant
reasons
only 9% of the increase in total
lo¬
expenditures
annual
rity programs
struction, from business for new
plants, modern equipment and
larger inventories, and, as incomes
rose,
from consumers
who
in¬
creased
of
increase
completed
particu¬
pessimism
sum,
more
from
public
in¬
past
Comparing the
1953 with the
from.
quarter
the
the
over
expenditures for national
cal authorities
Koffsky
where
note
quarter in 1952:
The
an
and
to
came
third
same
pr o-
gram,
Appraising Outlook
demands
be
of
preparing the basis for ap¬
praising the outlook in 1954, it is
expanding def
for
In
Govern¬
ment
•
in¬
Basis
will
11
should pervade the economy. Yet it
investment in
end of this year,
private invest¬
erable
greater than their
larly if a feeling
some
security pay¬
existing
may offset perhaps % of a
siderations stemming from inter¬
billion.
Unemployment compen¬
national developments should re¬
sation would also cushion the loss
quire otherwise. The productive
pacity
able segment of the
economy, but holds rate of accumulation
has been declining. Looks for some decline in
consid¬
invest¬
work-week, particularly in over¬
time. ; Yet
there are offsets in
view which appear likely to ab¬
new plant
and equipment, which has been sorb much of the impact on in¬
stimulated by rapid tax amortiza¬ comes of some'lessening in eco¬
nomic activity. Income tax reduc¬
tion on defense-related
facilities,
has been appreciably higher so far tions will provide some $3 billion
to
consumer
spendable
income
this year than last. Much of the
after January 1, even though the
defense-related expansion in ca¬
Dept. of Agriculture
demand for products.
was
private
Some decline in private invest¬
ment
outlays appears probable.
economy
past
in
possibility for
expenditures will be expenditures suggest
a
slightly
offsetting factor amounting to lower level of employment and
$l1/2 billion or so.
perhaps some reduction in the
Agricultural Department economist, assuming no change in
psychology, sees little change ahead in the domestic
the
decline
some
ment and the
net reduction in total Government
an
consumer
For
declines
government
Business
ment
further
may well be realized during 1954,
the steady rise in State and local
By NATHAN M. KOFFSKY*
Bureau
(1839)
sector,
November io, 1953.
Company
Lee W. Carroll & Cn,
Kirkpatrick-Pettis Company
Wachob-Bender Corporation
Woodard-Elwood & Company
12
The Commercial and Financial Chronicle
(3840)
such
tablishments
1954
No Serious Business Dip in
By PAUL II. NY STROM*
efforts points out,
despite
without these
holds
business downturn, but
house
a
is
indications of
are
be
of business
minor recession
may
a
is
tory
of
there
production. Where
mass
production there
mass
is
be
must
distribution.
mass
wouldn't
b
with¬
possible
out
e
mass
pro¬
duction.
mass
pro¬
duction
are
results
the
of
progress
e
of
almost
com¬
re¬
placed hand production. Making
goods by mechanical methods
made it possible to reduce unit
costs.
This, in turn, encouraged
the sale and distribution of goods
wide
over
need
The
areas.
for
brought selling, sales or¬
advertising
and
ganization
into
use.
but
since
not
1939,
unit costs of
down
years,
then,
to
production have been sharply re¬
duced by such methods as:
the
of
plant in relation to the availability
and
of
economy
materials,
raw
transportation
labor,
power,
and
markets.
production oper¬
ated by power from water, steam
or
electricity, with atomic power
just over the horizon.
(3) The
use
of machines, called
machine tools, that
combine
proc¬
and
directly turn out fin¬
ished goods or parts of goods with
esses
relatively little intermediate
essing.
Continuous flow of produc¬
(4)
tion, from the incoming
raw
terials to the finished goods
for
proc¬
ma¬
ready
delivery.
essing that
output,
and
proc¬
regulate the rates of
check the quantities
that
qualities
seconds and
and
eliminate
the
imperfects of produc¬
tion.
The modern trend towards
(6)
automation, or push-button pro¬
duction, now in its beginnings.
These
steps, more' or less gen¬
erally applied to factory produc¬
tion, have not only greatly in¬
creased
unit
output, but, in most
particularly down to
industries,
1939,
unit
of
were
labor
successful in
well
as
as
reducing
other
intensive
been
the
present, wage pres¬
sures supported
by government or
political
connivance,
minimum
regulations
wage
Healey
directives,
collective
and
Walsh-
together
bargaining,
with
so-called,
have caused the wage rates in this
country to run wild.
employers had the will
Nor
have
to oppose
these increases for
they have gen¬
erally stood to lose nothing by
granting them because there were
scarcities
of
goods
ernment and the
ready
to
pay
Boston
by Dr.
Conference
Boston, Mass.,
and
the
gov¬
people have been
any
increases in
address
tne
continuous
and even in auto¬
of goods
flows
for
matic controls applied to the proc¬
of
esses
distribution,
in
neither
dramatic,
nor so
production.
some
important,
so
As
notable
than
the
consequence,
a
been
costs
higher
are
than
they
been before. This is not
ever
however,
say,
higher
production.
distributive
generally
have
to
of
with
are,
exceptions,
costs
Moreover,
re¬
trades
they have been
as
the costs of distribution
now
the
but
distributive
the
Oct.
19,
Nystrom
on
before
Distribution.
1953i
the
concerns,
wholesalers,
250,000
that
there have
gains from the intensive
no
as
the
distributing stations,
assemblers, as well
1,700,000 retailers and 863,-
500 service
establishments in
this
country. There were 911,000 stores
in 1948 whose sales
$30,000 per
stores
000
had
that
less than
were
There
year.
were
669,-
paid
em¬
no
ployees at all.
These, by the defi¬
accepted here, are parts,
nition
essential parts, of the modern sys¬
tem
of
distribution.
mass
This
myriad of small stores are the out¬
lets for large
quantities of na¬
tionally advertised and branded
goods. These shops serve hundreds
of thousands of customers.
They
in
are,
the
turn,
wholesalers
who,
with their customers, are as highly
organized
goods
tion.
house, the largest chain store
it
efforts,
we
they
Let
most
these
that such
sure
be
now
much
higher
J"
at present.
are
consider
us
for
been
be
can
would
than
not
important
single, but the
a
item
of
last
13
in
rates
hourly
years,
factories
have
factory
has
output
increased
but
trade,
these
sizes
and
constitute
in
per
man-
27%. This
rates
wage
of
other
in¬
and
tion has been added to the
prices
in
way
creases
There
goods.
which
factory
was
has
background,
since
least
these
in¬
retail
with
come
retail
trading
20-year
a
Much of the
World War II.
development has
establishment
the
There have, of course, been sim¬
man-hour in dis¬
tribution have been
in
the
production
even
less than
industries.
As
consequence, a larger share of
the increases in wage rates has
had
to
be
added
the
to
costs
of
distribution and eventually to the
prices of goods.
In view of these
cost
increases, it is truly amazing
that consumer prices are only 90%
plus higher than they were in
1939.
This leads to the belief that
labor's
gains in wage rates have
not merely been reflected in 90%
plus higher consumers' prices, but
that they have also
profited from
the intensive efforts made by em¬
ployers to reduce
eration
in
all
expenses
of op¬
other classifications
of expenses.
am
this
sure
the
as
last
JT
that
audience
gained
13
need
that
by
not
the
say
wage
labor during
unaccompanied
years,
they have been, by
any propor¬
tionate increase in man-hour pro¬
ductivity, is
causes
of
one
the
of
the
inflation
principal
that
this
country has experienced during
this period. Not until wage rates
This
ban
branches
and,
towards
movement
of
of
dense
city
to the outer
still more im¬
centers
environs. Probably
portant
as
increasing
has
cause
a
and
number
There
automobiles.
automobiles
the
been
of
use
now more
are
in this country than
Housewives would
telephones.
much
rather go
cars,
than
shopping in their
the
ride, in
more
or
promises
in
the
in
be
town
traditional
centers.
almost
sion
about
due
to
there is
Moreover,
constantly
distinct ten¬
a
urban
now
down¬
transportation
Efforts
(9)
at
Expense
Intensive
goes on.
The successful ef¬
forts have generally been applied
the
to
reduction
of expenses in
operations. At best, the
savings from these efforts have
usually been small, but the con¬
detailed
tinued effort all
front
tween
are
who
some
discovery
consist
must
of
servations
without
of
in
economical
is
what
ob¬
erations.
There
going
on
supporting data.
retail
Total
will
nrobabiy
$175 billion,
5%
higher
in
for
sales
to
amount
about
that is, from
than
the
1953
3%
retail
to
sales
1952.
ample
suburban
labor
controver¬
suburban
of
parking
space
stores
practical and
shopping
in
new
problems,
evenings, the absolute
trade
said
amount
to
lion
annually.
they
have
about
to
In
store.
attracted
There
were
bil¬
$20
recent
tion than any other
years
atten¬
more
kind of retail
food markets,
somewhat like supermarkets,
the
before
rise
to
a
tion
1930's.
are
But
the
long
recent
of supermarkets corresponds
rising trend in food consump¬
as
well
as
Supermarkets
retail
food
$350,000
higher labor costs.
departmentized
are
stores
per
year
with
or
sales
of
Food
more.
stores
using similar methods but
smaller sales are called
superettes. Supermarkets have
having
found that by
operating on
service basis, their costs of
tion
could
a
self-
opera¬
be
materially reduced,
perhaps 25% below that of the
older
type food stores, offering
sales service, telephone and deliv¬
ery
services and charge accounts.
The
cost
reduction,
somewhat
reason
ing
however, is
problematic,
for
the
that it is the result of shift¬
burden
the
consumer
from
consumer.
But
At least
a
of
the
serving
store
consumers
of
the
the
love it.
great many of them do.
What is their outlook?
dents
to
this branch
Some stu¬
of trade
are
from
neces¬
publicity
tension
high
of
attract
wide
a
to
radius.
The early supermarkets were very
simple, warehouse-like businesses,
abandoned
in
established
count, meas¬
control distrib¬
and
in relation to out¬
expense
put.
has
brought enormous sales to
retail stores. It is estimated
many
this
billion
that fall within this
will
this
under
approximate
influence
house
ing,
repairs,
and
equipment
ture.
estimated
ture,
all paint and
tify
color
the
attractive
an
beau¬
and
business
of
place
it
that
schemes
place
to
All of these improvements
shop.
It
sold
be
is
to
to
people
in
the
in
There
sale
this
75%
of
of
paper
will
year
do
the
work
are
said
to be
who
There
shops
homes.
furni¬
and
that
60% of all wall
consumers
themselves.
work
plumb¬
carpentry,
for the making of
even
household
tioning, refrigeration of great ca¬
pacity to hold perishables, and
include
everything needed for gardening,
home
painting,
paper
hanging,
market
requires special architec¬
modern lighting, air condi¬
$4
goods sold
The
year.
factory buildings. Now, the super¬
make
sales
widespread
possible use of
(10) The "Do-It-Yourself" trend
Suburban stores have, however,
volume
Their
op¬
is
the
record
ure,
makes utive
easy.
artistic
sales.
and
account¬
electronic devices to
rise
with
Supermarkets are now at
the top of all retail institutions in
of
cost
constant
The
often
(1)
re¬
awaits the
practical
of
interest
sies.
sity
sub¬
that
ing applicable to distributive
open
of
be¬
There
expense
some
form
movement
number
a
in
distribution
shopping hours, the need to keep
posal the appraisal of distribution
failure.
believe
progress
in
expense
difference
and
success
Distribution
dis¬
along the
the
means
that the sales
our
control
to
reduce distribution
expense and to
frequent slow-downs and
almost
Control
efforts
costs
at
time
business recession
watch
the
months,
house-to-house business grow.
duction
that
systems
merely
not
but to show gains
ahead.
If
there
any
coming
transportation
the
continue
years
should
stantial
into
to
to hold its own,
less dilapidated and over-crowded
lead
large pro¬
portion of total retail sales, has
recently shown remarkable vital¬
ity in some lines of goods and
subur¬
growth of population and the nec¬
essary outflow of people from the
selling,
House-to-house
in recent years a
never
trading is, in part, due to the
begun to encounter
(2)
ilar wage increases in the distrib¬
utive trades. But the increases in
per
brief
reduce
to
furniture.
even
(8)
has become
in the years
but
significant
suburban
of
suburban
at
trend
of it.
more
movement
towards
centers
kinds,
distribution.
mass
the
In
no
could be covered.
productivity
of
all
of
of
hundreds
What Is Going On in
wage
in productivity in produc¬
creases
stores
help
can
such as, changes in the patterns of
staggering difference between in¬
creases
channels
many
of
depart¬
enormous
These
store.
increased
175%. During the same period the
actual
the most
or
sys¬
expense
distribution, labor costs. During
the
tem,
ment
to
and cranny
of our
the biggest mail order
nook
every
carrying
in
economy as
Had
of
customers
distributors
or
efforts to reduce costs in distribu¬
increases
years
to
Some
in mechaniza¬
power,
planning
in
tion,
I
Since the opening of World War
and in nearly all of the
down
reduce
to
has been made in the ap¬
progress
to
II
efforts
distribution.
of
costs
costs
Pressures
trade
general
large department stores.
production.
Wage
great retail
the
also
a
(5) Automatic controls of
The
(4)
The
towards
and
hour
Machine
(2)
to be
highly
distribution includes not
mass
merely
but
failures.
seems
bulk
in
location
Suitable
(1)
So
and
in supermar¬
ing
being attempted in many
other branches of trade, such as the amount of the unit sales can
Pre-packaging is
variety stores, drug stores, depart¬ be increased.
ment stores, hardware stores, and now used extensively in the sales
of foods, produce, clothing, hard¬
even
in
a
few
specialty shops.
There have been both successes ware,
musical
instruments
and
brokers
costs
the
Over
ership.
offered
as
is
troleum
been
and
of
its
own¬
tion such
kets
similarly,
have,
there
have
which
pletely
markets
increase
to
systepri
character of its
Self-service and self-selec¬
productivity in the production in¬
dustries,
revolu¬
machines have
Nystroin
efforts
in
Pre-packag¬
pilferage.
By including in the one package
the things that should go together,
requirements.
sumer
(3)
supermarkets
in
power
H.
the
for
the
of
part
a
the
or
peak.
manufacturers' sales branches, pe¬
sults
in
tion
Paul
intensive
are
indus¬
the
trial
costs,
there have been and still
as
plication of
and
all
mass
distribution
t h
Just
the
Both
above
goods.
Mass
distribution
substantial
including
prices,
profits
on
production regardless of
mass
size
Mass distribution is the co-rela¬
is carried
production
factory or processing plant
whose output goes out into the
markets of the country, that!fac¬
sounder basis.
tive
in mass production
necessary
every
means
on
by giant depart¬
as
it is in mass distribution. Wher¬
ever
slight
a
small
by
concerns,
but, in general, the trend towards aging, when well done, makes
sales through supermarkets
selling easier, speeds sales, and
seems not yet to have reached its
goes far towards satisfying con¬
more
well
as
stores..
as
as
they would be much higher
re-establishment
and
cleaning
says
Warns there
measures.
large
by small
The inclusion of small concerns
already taken, distribution
measures
have increased—but
costs
cl^ear that mass distri¬
is served
by
ment
like to make the
would
very,
stores, as well
National Retail Associations
specialist, in appraising mass distribution
Veteran marketing
I
stores.
point
as
Association
President, Limited Price Variety Stores
Chairman, Central Council of
department
as
stores, mail order houses and chain
bution
Columbia University
Professor-Emeritus,
of
Thursday, November 12, 1953
...
o
million
11
over
has
been
small
boom
a
power
tools.
of The sales of these tools in 1947
to
$6 million, but in
maintenance and of operation of amounted
supermarkets is about double what 1952 they amounted to $80 million.
cost
it
The
money.
expenses
back in the
was
1930's, and the
Part
the
of
Do
-
It- Yourself
end
of these expense trends is not
movement may
be due to the fact
yet
in sight.
that
makers
the
home
of today,
school, had
courses
in
manual
training and
home economics.
Now, as home
salesy never a
substantial percentage of total re¬
tail sales, is perking up in unex¬
when
pected quarters. Formerly most of
makers,
such
people
knowledge they gained in school.
town
Many of the men in service dur¬
ing World War II learned to work
(5)
order
Mail
sales
living
in
rural
areas.
Recent
there
is
a
made
were
to
small
and
reports indicate that
considerable- increase
in mail order sales to
Apparently there
city dwellers.
are many
urban
with
they
they
tools
who
It-Yourself
conditions
traffic
the
than
in
brave the
shopping at
ment
The
in
modernization
retail
tablishments
wholesale
and
has
made
putting
now
goods
the
sale
of Do-
represents
the
effort of home makers to circum¬
men
move¬
that
believe
vent the
nearest retail centers.
(6)
are
knowledge to good use in
their own homes. There are some
from
catalog
and
applying "the
are
that
customers who would rather shop
a
in
were
high costs of union crafts¬
who would otherwise do most
of this work.
es¬
remark¬
(11)
Credit
sales in
all
forms
increasing, but more espe¬
during the last 7 or
in
installment
payment
8. years, and: promises to extend cially
sales.
This form of credit selling
well into the .future.
Moderniza¬
seems to be the. only practical way
tion means not merely the im¬
in which furniture, home furnish¬
provement of the building, but
also of the equipment and fix¬ ings, appliances and other heavy
be successfully
sold.
tures, not merely for greater ef¬ goods can
are
able progress
Consumer
credit
is
as
essential
impor¬
to
distribution
as * commercial
in retailing,
credit
is
to
manufacturing and
to try to recover some of the con¬
creases in man-hour
productivity,
wholesaling.
Credit
sales
will
ditions which in the years before
can we possibly
escape from the
World War II made housewives certainly continue to grow wher¬
danger of further inflation which,
ever
merchandise unit prices are
think of shopping as fun, instead
if not stopped, will lead to na¬
Supermarkets
high enough to bear the additional
tional disaster.
Every other method or proce¬ of, as at present in too many cases, costs of
carrying charges. Bank¬
as a nerve-wracking test, or a sort
dure ever tried before has had its
ers
are
Mass Distribution for Small
increasingly getting into
of battle of wits
as
well as of
limits
of, profitable application.
the credit selling act. A recent re¬
Concerns
brawn.
The limits are the points where
port indicated that banking facilir
From
the
announced
title of
(it. Pre-packaging of goods by ties are now offered as
g means
this paper it is possible that it diminishing returns set in. Dimin¬ m a n u f a c t u re r S, particularly in
of carrying charge accounts for
might be assumed that it was to ishing returns have obviously been transparent packaging materials,
deal with large distributive es¬ reached
in
some
supermarkets, is expanding rapidly. Pre-pack¬ retailers in over 60 shopping areas
can
be
creases
stabilized
made
and
wage in¬
proportionate to in¬
beginning to ask whether there
may
be limits in their growth,
and, if so, where those limits are
and when they may be reached.
ficiency,
tantly,
but
even
particularly
more
Volume 178
Number 5272.. .The Commercial and Financial Chronicle
i
}
\
*
'
*
r
i
i.
i
I
-
r
adjustment
may not
His
now
perhaps in
plateau
as
a
From
re¬
if
as
1954
T?y, of this country is
high
■a
or
Washington
it
The
Ahead
now on
result of
^inflationary boom, the long!
est of such
inflationary periods in
history of this country. A look
the past
history of our economy
a
of
shows
-
a
continuing
recurrence
of
tions^Thr"3 in bus'ness condidenS P business no serious stu¬
dents of
cycles who do
tfaueeXThe
The
tinue.
ese c'h?ngeslevels of
to conhigh
n
present
employment,
«mes
and record sales
may contor several
months more
tone
The
present
indications
anv
CVe"
some addi¬
business increases before
Canal
tional
toe turn comes.
beheveSthat
that
next
would
a
good
many
it may
12
months.
like to
"if
But
W6" aS economists
occur during
oeheve
1954
of
6 recessi°n are. minor.
hnli
be
Tterl
the
pfrsonalin-
high
Strange ai
there.are those
it
see
come
who
before
literally burning up his enemies but the fact
Senator Joe McCarthy is coming to be more appreciated
Eisenhower Administration. There is a growing
tendency
kicking him in the pants and to realize that he is a badly
S/V d°es come, it
fce disastrous. It
need not
in
clever
a
a
sounder foundation to
take fuller
°uf t!le next risi"S
hP"
riod
Pe¬
the business
economy.
in
Some
the indications that a
readjustment may not be far off
are.
of
(a)
The slowly rising busi¬
failure rates. (b) The increase
ness
the number of
m
employment
(c)
ing.
A
total
the
(e)
current
billions
of
Most
dollars'
not
We
the
regret
defense production if
that it is the
sume
wards
of
is
several
worth
production.
should
noticeable
reduction
in
decline
we
in
may as¬
first
step to¬
reestabhshment of a
the
of
all
of
these
ence
total
on
a
factors
about
was
have
ever
the
square
in
volved
around
Matthews
his
his
.as
committee's
retarding influ¬
through the
sales
Sharpening- Competition
Sharpening
competition
characterizes most business activ¬
ities in the American
economy to¬
day.
One evidence of this is the
expanded expenditure for and the
more intensive use of
advertising
and
sales
promotion,
ganization
and
accounts
that
years ago
portant
to
out
seek
to two
up
or
considered
were
or
reor¬
employment
salesmen
more
the
of
new
three
unim¬
undesirable.
even
No
is
one
turning down any business
promises a profit in these
that
days.
witnessing the return of
salesmanship and customer serv¬
are
as
replacement
a
for
before.
Courses
selling offered
by schools and colleges are better
attended than ever before.
on
In addition to the
increasing in¬
terest and pressure for selling we
have all seen the beginning and
are likely to see a tidal wave of
all
sorts
of
of
sales
promotion,
The
went to work
on
for
magazine.
a
been
the
caused
lot
attacked
the
of
the
editors
of
considerable
red
Protestant
had
Matthews
faces,
clergy. -.1
done and
the
read
Matthews
had
Carlisle
Uatgerun
the
"liberals"
tion and
the
saw
article
on
it
as
a
supporting
attack
an
the
on
and
which
such
no
has
him
in
Catholic
a
level-headed
clergy.
denunciation
general
McCarthy.
of
It
the White House got three
Jew,
—a
of
Catholic and
a
indignation
in
story
the
of
that
around
that
the
White
in
letter
a
imagine that this would
he is
go
or
that
as
phony
the
methods
and
devices
such
as
birth
of
rates
recent
years
he hated to admit there was a Com¬
The
homes
You
to
the
McCarthys
the
which
and
Jenners
and
the
variety of sales bait.
witnessing and
on
have
these media
huckster
out
radio
ever
and
been
wide
are now
shall see
hysterical
we
of the most
mercials
We
stamps,
a
in
this
a
hues,
sit
on
farm
even
com¬
since
invented. Phony
were
methods
the
you
want
can
Democrats,
(14) Finally, but most impor¬
tant, a decline in birth rates dur¬
ing the next decade seems inevi¬
table. The changing character of
.J?roves
this., ..The
high
country
statistical
euphonious
did
to
this
their haunches
demonstrations
Cabinet.
He
cooked up
this
abuse
million
their
about
jibes
the
or
about the
the
take
and
should do
They
country.
only experienced politician
knows
the
tricks
of
in-fighting.
blast it is to be hoped he has several more
a
to
go
back
to
challenging slogan:
selling apples?"
The
Republicans
conditions in
the Democrats'
record.
CONSOLIDATED RESULTS OF OPERATIONS
For the three months
early 1940's and again from
are clearly beginning
hdsitate a bit on the addition of
1952
1953
1952
$ 7,794,300
$ 7,032 992
$30,916,812
$27,138,084
1,312,623
1,372,992
5,640,432
5,713,787
359
204
27,574
28,393
8,406.188
$36,584,818
$32,880,269
$ 5,041,100
Operating Revenues
Electric.
Transit
third,
fourth, child.
or
ended September 30
The birth
"
1953
to
a
For the twelve months
ended September 30
1945 to 1953
erably
1946
the
below
—
Heat
peak
years
of
-
Total
1949.
to
%
A decline in the
percentage rate
of births and even in the absolute
—
our
in
population is
the
next
five
likely to
to
ten
occur
years.
this forecast is correct, then
ufacturers
now
and
reaping
the
a
retailers
man¬
who
are
golden harvest from
sales
enormous
foods,
If
of
infants'
toys,
play-things, clothing
and other goods that children re¬
quire, had better watch their step
for alternatives
of
sales
these
start
to
to
have
the
will
be
when
decline.
method that will appeal to
retailers
take
goods
to
Operating Expenses
grow up
The
2,770,134
2,609,130
978,515
869.470
3,773,794
3,329 049
592,352
2,419,570
2,414,690
1,180,000
1,128,700
5,144,300
4,099,200
—$ 7,437,113
$ 6,777,477
$29,592,862
$26,684,529
$ 1,628,711
$ 6,991,956
depreciation and amortization—
on
income——.
Total
-
—
Operating income
$ 1,670,169
...
-
!
45,060
2,314
1.673,753
$ 1,631,025
$ 7,037,462
$ 6,240,800
403,348
$
income
that
chil¬
Interest and Other Income Deductions.—
513,518
1,626,759
1,830,845
Net income
$
-
1,117,507
$ 5,410,703
$ 4,409,955
119,350
859,824
449,911
998,157
$ 4,550,879
$ 3,960,044
2,001,360
2,001,360
$2.27
$1.98
1,270,405
$
215,763
Preferred Dividends
to adulthood.
Financial
45,506'
3,584
——-——
.,—
$ 6,195,740
"
"
Other Income
—,
Earnings
to
9,191.360
621,090
$
626,418
Provisions for
Gross
to
Joins F. S. Yantis Co.
(Special
-—
General taxes
Federal taxes
10,212,912
$ 1,360,383
operation
Maintenance
$ 5,272,152
2,309,156
708,791
production
1,256,709
2,583,006
Fuel used in electric
Other
many
dren will require year by year as
they
$
'
One
continue
merchandise
$ 9,107,282
-
,
number of babies and children in
probably
badly, but it is a pity
the
a
conglomeration of rascals of many political
ask if the people wish to return to the many unsavory
so blithely undertook
responsibilities pf parenthood
will
of
of
Moreover, the
group.
age
in the
that the money expended in these
methods will be wasted.
population
one
They should keep
Republicans have.
Brownell is
Eisenhower
couples that
television
tried
is
AND SUBSIDIARY COMPANY
reaching marriageable ages. They
were born in the early and middle
1930's, when the birth rate was
very low. There are fewer people
give-away,
programs
The
party.
COLUMBUS AND SOUTHERN OHIO ELECTRIC COMPANY
now
are
of young men and women who are
their
trading
his
of
Communists
coddled
Democrats
The New Dealers in their campaigns had a
may
falling off
sharply due to the smaller number
new
place
of
were! charging
Republicans
were
merely the logical result of the
high marriage rates since 1941 and
particularly
since
1945.
Mar¬
riages and the establishment of
look
use
welcomed
his sleeve.
"Do
necessary
if the Wisconsin dynamo were through.
in
than
surely
as
he
Truman's dealing-
of
explanation
he did
as
Roosevelt, on the
Communists;
against
The
Communists
soft soap.
to
it.
politics.
It looked
As it is he is going
rate, it is interesting to see Brownell, in effect, giving
ideological
against the President's grain,
constantly being pressed to do this
an even
coddling Communists.
Now that he has fired
solicited
House
feeling
no
Administration.
dollar Cabinet.
prominent, politically active clergymen
Protestant—to write the President
McCarthy;
him to
that the former President's loyalty is
"liberals."
holding company for
fire.
sure
clergymen to take this action; that they did not initiate
can
but
a
well known in Washington
was
the public constantly in mind of what the
(McCarthy)
up
these
You
about
a
is
White's pro-Communist-
way.
is that he despised
the most effective issues the
situa¬
the
was
Administration
with the Truman
in
play to
a
Harry Byrd jumped into
There
it
The fact
support
some
and
Protestant
Senator
tied
he died
However, Attorney
If the former President had not spoken so quickly,
his
in
with
rather
the
Even
has
had
At any
of
few
thing.
getting McCarthy
of
exploitation of it.
with White is probably that
manner
means
real
Henry Morgenthau
fellow
as
having
as
seeking to make
and for all. The picture was created of
once
editors
politico-religious possibilities
sold the President
pretty bad but it was
has disclosed that Truman appointed
hand,
them
Communism
on
a
widely prevailing sentiment
any
without saying
goes
other
-
by
done
a
though not
against Communists in govern¬
cry
other elements which he had
some
represented
was
over
involved.
munist
discussion
up
One
seriously.
more
the past,
be hard put to explain the case away.
It
display of distorted reporting that has since
a
sum
in
the editors
is his weakness, he might be able to come up with a more con¬
not
B.
generally
A clever mind at the White House
the
the
In
subject
a
and
extended
come
as
article Matthews had written
an
critical
vincing explanation of his handling of White.
Staff.
of
of the country rather
press
sales contests, merchandise clubs,
that
Chief
J.
rather
devastating, breath-taking
higher position.
-
mere
order-taking. More books are be¬
salesmanship than ever
ing sold on
more
Dr.
taking his disclosures
rates have already sagged consid¬
We
ice
of
For some
J.
high Administration official, the Attorney Gen¬
a
was
but Brownell
a piece of work as ^
presumably fair,: and 3'
game of politics.
It re-V
employment
see
there
influence
but
great
we
most
a
shady
as
seen
back with
came
N.
again riding the headlines and
been
General Brownell
in
to
It
.
I
Then he
Monmouth,
is
channels of distribution.
(13)
before
time
a
be
had
Fort
The story about Harry Dexter White is not new but
ment.
count.
peace economy. But the combina¬
tion
certain to exert
for
been
to
seem
Now
to the Adminis¬
seemed
has
who
relatively quiet for several weeks.
at
eral, joining in the hue and
needed
There is :>
doubt about it, and I don't know just hpw. ^
apparent it was to the general public, but theyhad the Wisconsin boy on the floor
taking the
de¬
certainly
the
no
has
in
modities.
fense
in
17%
that
1951. (d) There is
the exports of many
American produced com¬
our
the
of
income
by
to quit
greatly to diminish his effectiveness.
since
decline
°f
which
gradually declin¬
reduction
farm
occurred
a
is
in
areas
that
maneuver
was
certainly preferable to conditions at Fort Monmouth.
that
good graces, at least its near good' r
graces, constitutes a highly laughable
story,
too, on the ups and downs of Washington poliv *
tics.
It was only a few months ago that the .vv
White House joined with the Senator's enemies
may even be the
of a house
cleaning and a
reestabhshment of a business on
means
is
tration's
heCti0" in November,
if
His emergence
he
when he wrote that McCarthyism might be
is
political asset.
but
smacking their lips.
McCarthy baiter, seemed to
By CARLISLE BARGERON
It
them
f:l
■
the disclosures
he
now
it
were
bang with
generally
the
at
i
«
enemies
time
of the News
14-
a
4
i,
not have noticed
be inevitable
but it certainly looks
may occur,
11
i *
at a cost of 5% of
the amounts
collected for their services.
A business recession
13
(1841)
,(•
t.
Chronicle)
on
common
shares
_$ 1,054,642
Common Shares Outstanding at End of Period-.
Earnings
per common
share
—
2,001,360
$0.53
$
V
2,001,360
$0.50
ELGIN, 111.—Raymond F. Schlie
has joined the
&
staff of F. S. Yantis
Co., Inc., Tower Building.
Schlie
was
Mr.
previously with Crut-
tenden & Co. and Reynolds & Co.
This is
an
statements
interim statement.
are
examined
The
Company's fiscal vear ends December 31, at which time its financial
by independent public accountants.
.
,
.
November 12, 1953
The Commercial and Financial Chronicle... Thursday,
(1842)
.14
ing the
New Treasury
dear to
of
describing background of the Treasury's situation, Mr.
Tuttle lists "elimination of waste" as the first "new policy"
After
Debt
and
problems,
time
glad to speak to you today
Treasury Policies," be¬
am
''New
with Region
the
feel
I
cause
that
policies that
there
some
are
We
as
Treasury
tne
billion dollars.
being pursued by
are
a
pump
that
caused
new
that
and
important.
What
seems
not
to
is
say
intended
was
In
be
partisan
political;
or
it
is
There
is
reason
P.
early days of
one—in
like
consider
to
with
scene
attempting to
are
background,
to be on
and
come
which
must
period
high plateau of in¬
a
productivity,
well as
employment; a peak
government debt and
maximum
of
maximum
taxation;
as
and
ominous
tinuing
con¬
a
international
threat.
These
the
for
foreseeable
future
tors
the
on
national
ac¬
must
scene
lElimination
of
at
waste.
even
I
our
The
The
cam¬
paign than the issue of waste and
extravagance in Federal spending.
time
in
two
dec¬
ades
real
forthright
executive
leadership has been given towards
saving in government expendi¬
tures for the sake of
It has
to
been
make
ing
saving itself.
pleasant and easy
so
happy by giv¬
something they want,
everyone
them
that
the
habit
has
until
grown,
it is difficult to reverse the trend.
Many necessary and useful ex¬
pansions in the area of what the
Federal
Government
do
snould
been
for
its
developed
3;Iowever,
and
can
citizens
in
recent
have become
we
have
public debt is
now
mately $272 billion.
We
so
and legitimate
as for many
proper
as
well
-were
not
where
along the line
ti ack
of
justified,
a
few
that
prior
cautioned
at
us
to
that
some¬
points.
the
National
time
one
pare
which
down
ex¬
penditures to the nearest million
dollars
in
'An
round
numbers
we
ourselves at the end of this
iound
era
in
a
last
and are thus spending
years,
faster than
money
ing it.
As
in
20
that has
years
policy of
a
collect¬
we are
result, the first Ad¬
a
ministration
instituted
and
year
and
economy
retrenchment has been faced with
the unpleasant task of asking Con¬
to
gress
Used
by Mr.
Car
L:ioxi, Miss., Oct. 9,
Tuttle
Dealers
1953.
before
the
Association,
This
Chamber
of
I
pected, but it nevertheless makes
it
awfully
difficult
economize. Here is
has
lot of
a
to
begin
to
program that
a
merit, but it is not of
top priority.
It does not compare
in
competition for the taxpayer's
dollar with many other essential
activities.
Yet, if the government
seeks to cut it out there is always
lot
a
of
anguish.
"turning
back
Some
the
it
call
clock."
Actu¬
This Administration has adopted
the view
that the American form
continue
deficit
our
done
to
enable
enable
us
financing.
to
us
credit
keep
good
in
was
that
to
us,
to
the
extent
It
now
much
appears,
gratification of the
Treasury, and the rest of
Treasury officials who are
concerned with taxation and
management, that we may
through.
This matter of
is critical.
economy
in every
level.
for
uary.
drastic
It is stressed
every
result, appropriations
a
are
$10 billion less
some
in
recommended
man's
debt
squeeze
department and at
As
1954
than
Mr.
Tru¬
budget message last
There are many more
Jan¬
omies to be made.
to
to
Secretary
the
the
two—by
that
light daily.
has told
Our
that
us
New
from
vulnerable
an
econ¬
ones
come
petition is keen, and it must be
sound
end
project,
with
up
the
indeed,
that
increase
an
The
Third
third
Policy
others exist
ing this
a
I refer
one.
of achiev¬
means
policy of establishing sound mon¬
ey. It is the policy of establishing
the honest dollar, the policy that
tells
the
ment
citizen
will
assure
an
do
all
in
the
its
is not the aim
period;"'it
sirable if it
solvency.
back"
prices
American
Policy
fs the Treas¬
ury's responsibility to pick up the
tab, is to reduce expenditures
while
in
not
the
or
a
any
would not be de¬
possible to "roll
to
such
a
level.
economy
"dishonest
in
the
has
adjusted
to
attempt
of the
terms
to
cheapening of the dollar.
just
another
mean
way
artificial
controls
on
the
of
This is
saying
we
inflation, and
it
not
restrictions
American
by
and
omy, but by living within our in¬
and
debt
by
putting
management
end to
oractices
an
that inevitably lead to inflation.
Secretary
Humphrey recently
of "The Three Pillars of
spoke
Sound
Oct.
1.
This, too,
pretty
was,
and
difficult
trend toward
to
Money"
["Chronicle" of
oage 1]. These three pil¬
lars which form the solid
base of
themselves
is, hard. It
stop
this
continually expand¬
dear
to
means
require
such
tremendous
outlays.
The
second
pillar
of
sound
properly
functioning
System, is once
money,
a
Federal
Reserve
the part it was
created
to
play, which was to
stabilize the economy for the ben¬
efit of the country as a whole.
During and after World War *11
playing
more
Federal
Reserve
System,
un¬
domination,
lost
much of its independence.
It was
Treasury
by the Treasury to raise
precedented
of
amounts
un¬
money,
and, during the War, this require¬
completely
overshadowed
policy. As long as
monetary
the
in
continued
War
and
kept
govern¬
and
wages
well
in line, there
much trouble, but when
controls
direct
1946
without
moved
tem, and, third, proper debt man¬
agement.
This Administration is
working constantly to strengthen
all three pillars.
being redeemed and redemp¬
are
tions will decrease still further as
and
more
they
people learn that
more
keep their bonds for an
can
additional ten years and earn
3%.
The
purchaser of United States
Savings bonds is a direct share¬
holder in America.
The regular
bond buyer
He
gains three ways:
the
owns
world's
in¬
best
builds financial security
He
himself and
He
of
also
were
re¬
concurrently
of the War years brought
excesses
inflation and
hardship to millions
by
money
and
free
to
allow
the
money
to
have
its
demand
for
and
normal
natural effect and to
Secretary
Humphrey
cently paid
Secretary
in
performed
his
intelligent,
in
supply funds
patient
"hard"
has
policy.
in
policy.
money
Treasury,
money
the
believes
It
like
It,
"sound"
a
that
Treasury
we
as
good
nomic stability
recession.
justment
rious
and
without
The third pillar of sound money
debt management.
proper
debt
stands
now
than $273 billion.
which
this
is, the
debt
The
at
The
more
manner
in
handled—that
is
in which maturing
manner
issues
refinanced and
are
sues
placed—has
tial
bearing
a
is¬
new
very
substan¬
our
nation's
upon
too
early.
It is the firm
intention of the Treasury to offer
intermediate
more
at
issues
future.
and
long-term
opportune times
Care,
not
used
to
of
in the
will be
the market in
course,
press
competition with state, municipal
and
a
private financing which is at
peak of demand at the present
time.
Too
rapid
movement
on
our
part at this time in crowding into
this market and increasing the al¬
ready
demand for long¬
enormous
term
er
funds
still
further
the
interest
and
even
might
unduly
rates
and
well
very
press
for
deny many
ernmental
up
all
believing that this ad¬
be made without se¬
we
essary
also
on
other gov¬
private borrowers
First,
this
country,
achieve
be
is
our
opportune times
debt
out
hands
of
of
the
private
Savings
I
pass
let
cannot
to do
a
even
balanced
a
pursuing
goal to
a
move
at
portion of the
banks
into
the
investors.
spending
program
for
defense.
though the expenditures are
met by taxes, the program is an
inflationary force which will be
with
for
us
Second,
ling
time to
some
have
we
evidence
come.
almost
from
into
effect vigorous
sound money.
little sales job.
We
to
putting
for
programs
That has been true
of
Belgium, Germany, Holland,
and of Italy and England. If they
do
can
it
destruction
after
and
with
we,
our
do it. too.
have the long history
can
we
of economic progress
of this coun¬
It is free competitive enter¬
try.
prise that has made
move
away
subsidies
gradually
lease
great.
us
As
from controls and
props and
and artificial
reduce
fully
more
taxes, we re¬
the forces that
brought us prosperity in the past.
As we strengthen the dollar and
people's
renew
we
in it,
saving
provided the
confidence
restimulate the flow of
which
has
always
Surely,
capital to build America.
of these
afraid
not
are
great,
free forces.
In
these views that
move from an
inflationary economy, Mr. Bur¬
gess pointedly remarks that this
effort
will
require
imagination
and good judgment by the busi¬
ness community. "There is nothing
automatic about it," he says. "To
we
presenting
successfully
can
make
a
free
work,
economy
the
participants have responsibilities.
They must be nrepared to take
risks
some
and
from
out
come
irnHer pr»vemmpntal shelters with¬
out
panic.
For the enterprise sys¬
tem to work there must be enter¬
prise."
The last
wish
to
new
Treasury
with
discuss
Treasury's 'new
policy I
is the
you
This
policy.
tax
tax
policy has several points.
The first is that the Treasury be¬
lieves taxes should be levied for
revenue
social
the
only, and not to work out
or
to redistribute
reforms
wealth:
second
citizen
Congress
will
the
be
is that in
laws
the
of
Congress
by
American
of
the
internretation
passed
opportunity
start¬
Europe
countries which have turned from
the
Bonds
this
when
budget,
tremendous
a
Even
new
nec¬
funds.
It
wisdom
use
enterprise.
we
loans
opportunity to obtain the
an
principal
can
trouble—if
will
we
Entirely too much of this debt
matures
business
a
He cites three
for
reasons
we
makes good times.
national
great believer
a
ability to move from a long
period of inflation to one of eco¬
our
strength,
Third,
System has
wise
and
public debt.
our
Burgess is
Reserve
Federal
debt
in this difficult matter of
handling
Mr.
of
the service he
to the country in
has
counsel
charge
for
management,
The
is
re¬
Mr.
impoverishment,
money
has
high tribute to
Randolph Burgess, Deputy to
very
a
with normal growth.
do
helping to
and a sta¬
ble honest dollar.
to keep pace
no
security
inflation to prosperity by
has now been re¬
the Federal Reserve
policy
is
the
the
to
country
our
for
his family.
contributes
maintain sound
releasing the Federal Reserve, the
econ¬
a
sound monetary system, as de¬
amounting to waste, were never¬ tailed by the
Secretary of the
theless, made for purposes which Treasury, were,
first, a proper
in the light of our extended con¬
budget policy, second, a properly
dition, were not strictly necessary functioning Federal Reserve
Sys¬
is
vival
devalue,
dollar, all of
is
Sales are sub¬
stantially greater than last year.
Only a fourth of matured bonds
healthy state.
a
the
of
sion
projects
time when provi¬
for national sur¬
a
economy.
the goods and property bought on
an inflated market. It
is, however,
the
second
policy, which is a
Treasury policy only because it is
principally espoused by the Treas¬
which,
to
itself pretty well to today's dollar,
and it would
be little
short of
come
New
for
penditures
their hearts at
ex¬
were
prevent
it
of
return to the dollar of 1940
placing
and because
govern¬
power
Treasury, obviously, to achieve
earlier
and
temptation to urge increased
enduring value to their
It
money.
that
to
ury,
the
to
now
in
departments
various
the
as
an
managing the national debt.
The savings bonds program
its
agencies for their wholehearted
cooperation. It must also seek the
cooperation of the people of the
country
who
must
resist
the
versed,
new
doubtless
is
vestment, earning 3% with abso¬
expressed
of Americans.
Treasury policy
most important
of them all, because in a way the
is
we
The
even
number of our citi¬
important factor in
possible
zens
lute safety of principal.
This
New
not
Second
can
appropriation.
same
more
The
or
a
est
the Congress and
so
com¬
and
Buying
investor.
holdings these bonds by tne great¬
indebtedness to
wasn't
is provided for. The
program
individual
has
tipn for
the desire and, in fact, the policy,
hard and unpleasant task,
encouraging start, the
fairly
of the Treasury to prevent further
our
With this
re¬
soundest fi¬
the
of
one
nancing programs for the govern¬
ment
is
the placing
of savings
bonds in the hands of the small
Administration
prices
budget
appropriations
year.
controls
our
1954.
less than estimated
are
ceipts for the
ment
no
but is is essential to
which
sion, each other expenditure must
merit
consideration
in
competi-
must have
a
have total
we
the
part of
fiscal
Also, for the first time since
1948
ment
Secretary
operate well within -this fig¬
year
the primary need for an adequate
defense
against outside aggres¬
that
for
planning to spend
than the year be¬
are
we
this
used
budget in the
own
our
years
less
bring us to disaster
through inflation, and regimenta¬
tion followed inevitably by eco¬
dollar that is left after the defense
of
estimates
recent
the
Therefore, given
in the
the last Ad¬
For the first time in the past few
der
collapse.
irom
cut
ministration,
to
approximately
$3.5 billion according to the most
attack, and
unsound fiscal policy
external
an
Treasury Department for this fis¬
cal year is a maximum.
He will
be sorely disappointed if we do
It is
to
been
projected
as
Message
Budget
directions:
two
would
The
government's
t^e
one—from
limit
debt
not done to
was
was
the
the
is
government
has
year
billion,
other
is strictly human,
just what is to be ex¬
is
this
$11
Com¬
can
attitude
it
and
billion.
This
to
increase
position where it seemed jn the national interest.
address
]>tticnal
of
pur¬
have lost
we
decimal
characterized
Government
still
are
spending under appropriations and
ac¬
(Parting with the frame of mind
that
approxi¬
ure.
resulting need for
larger and larger expenditures for
poses,
Situation
years.
customed to the
these
Debt
couldn't honorably and legally
cutback the commitments already
suppose
you
in
out the necessity
for
achieving a balance between the
government's receipts and expen¬
ditures.
The prospective deficit
pointing
nomic
during the years of
highest national income.
we
raised dur¬
was
ing the recent Presidental
first
to operate
deficit
a
of
the
taxpayer's
We continued
money.
elimination
For
the
of
became wasteful
we
and profligate with our
made.
of
was
of
result
a
The first new policy .sponsored
by the Treasury Department is the
stronger issue
mottoes
handed
Waste—First
"New" Policy
no
the
were
carrying out the mandate that
perform their roles.
a
former President
a
Atlanta
destruction
As
It
ground against which today's
from
as
appointee in
Southeastern
budget policy, I have al¬
proper
ready discussed at some length
fore.
Worth, Texas.
ally it is cutting the suit to fit the
day.
of 275
must take into account this back¬
be
Keep everybody happy!
Any discussion of national pol¬
icy
what
to
him
backdrop
of
Keep the money in circulation!
authorizations
be sketched in very hastily, shows
us
a
my
cloth.
you
play their part:
This
be
small
effected
against
new
a
briefly the backdrop of this stage
on
which today's actors on this
national
who
to
these
Administra¬
tion to speak to you, is that you
are prepared to hear a new view¬
point expressed, some of you, I
hope, because you expect to agree
with it; and others, no doubt, with
the expectation of critcizing it.
Before, however, discussing
these
new
Treasury
policies
I
would
government official
planned inflation.
minor
a
society.
our
little encourage¬
very
seemed
Tuttle
offi¬
cial—even
was
savings
Elbert
gov¬
ernment
place in
in
would
imagine how
swamped with protests.
was
miserly spoil-sport
a
no
employee
or
you
a
as
ment for any
But, I suppose
invite
not
was
who tried it
person
who had
controversial.
the
rare
depicted
a man¬
that
ner
the
be
to
there
climate
a
only no enthusiasm for saving, but
in¬
not
tended
said in
spending
good thing for its own sake.
a
the
merce,
thinking
to have found that
such
state, and
of
Atlanta
Republican
a
2
operation
area
quartered
of
Washington
ended,
need
that
economic
our
As
spending
requirements, and
war
of
much
I
national
time
the
by
are
by
era
an
heaviest
our
are
of spending
primer into the era of
passed
Department
and
town
shifted to Ft.
them out at the next
round
to
was
Region
4, which meant that
Southeastern
centered
easier to push expenditures up so
as
consolidate
to
home
I
Administration
Aeronautics
going
was
ago
a
for
announced
that the Civil
example, it
some
national credit sound.
on
diverse views and fre¬
diverse geo¬
many
For
of keeping the
importance
any
quently
of
many
graphical areas.
sponsored by the Administration. As second new policy, the
aim is to reduce government expenditures wherever possible
or advisable, and the third, and most important "new policy"
is to establish sound money and an "honest dollar." Discusses
National
size that is not
the hearts of many people
expenditure of
three pillars,
The first of these
ever
that
feel
Pillars of Sound Money
of Federal expenditure
so
slightly in an
era
turn
opposite direction, especially since
there is hardly a governmental
Department
Counsel, Treasury
General
fcj
Policies
TUTTLE*
By ELBERT P.
i! r
and
to
tax
true
the
intent
sought
and
Volume 178
will
there
construe
be
third
and
in
a
that
to
manner
at
revenue
is
The Commercial and Financial Chronicle
...
disposition
no
statutes
the
protect
the
Number 5272
all
new
costs;
objectivity in the administra¬
of
tion
the
Internal
Service will be
Revenue
major Treasury
a
goal.
For
time in the past there
some
has been
a
tendency in the Treas¬
Department to
ury
legislation
aid in
an
that
recommend tax
designed
was
working out
as
social
some
economic aim of the time. With¬
or
out
passing on the merit of
such
reform, it
matters
to
seems
should
stand
any
such
me
fall
or
general business
Letter"
holding
finds
as
the
November
"Monthly
business
Letter"
conditions,
of
as
well
confidence in continued profit¬
able
at
business
operations, in
1954
peak levels, thus making
near
necessary the postponement of
date
of
the
much
advertised
lic
cession."
in
business
vestment circles has
and
the
laws
revenue
used
administration
for
if
such
in¬
solely to produce
near
business
peak
levels,
nearing prospect of
the
burdensome
ex¬
confidence
nance
of profitable operations into
has
1954
been
reflected
prices
the
on
"Most
been buoyed
in
the
year,
mainte¬
gaining,* and
has
in the recovery of
stock
impressive
exchanges.
evidence
of
the
ments
laws
now
are
than
the
third
from
steel,
any
nine
eral
and
the
the steel
reason
becoming available for
quarter
industrial
overall
of
the
as
comes
This, by
far-flung
uses
probably
other
activity
industry.
serves
more
for
than
barometer of gen¬
a
manufacturing—particularly
and
goods—and
as
consumer
erations
might
capacity
drop
lower
or
of the fourth
quarter,
few months ago it
a
the
our
of
around 95%
year
ter
actually
they
have
been
holding firmly around 95%, with
no
signs of waning.
Indeed, in¬
dications are to the contrary. Steel
cancellations,
trade
sources,
and
to
as
mainly
softer
last
few
when
years
'nearly
bound
orders
new
in
as
balance'
No tax law is
all
on
painless and
alike.
jective should be
tem
that
than
will
retard,
to devise
tone
largely
its
run
course.
With Hamilton
Recently,
Chairman Benjamin F. Fairless, of
the United States Steel Corpora¬
tion,
expressed
operations
in
the
the
2%
from
the
as
Gibbs is
a
than
more
present
to
The
DENVER,
that
industry
whole will vary not
or
opinion
(Special
1
Colo.
now
agement
Managem't
Financial
Chronicle)
—
Corporation,
Street.
near-
sys¬
rather
individual initiative,
and encourage, rather than
the flow of private
retard,
capital into
useful
-,
and
constructive
channels.
Therefore, it will be the policy
Treasury to recommend the
of the
creation
will,
of
tax
a
nearly
as
as
structure
that
possible, provide
the funds necessary to operate the
government with
effect
as
little adverse
as
possible
upon
de¬
our
veloping and expanding economy.
Under Secretary Folsom is de¬
voting his entire time, with a staff
in
the
Treasury Department
sisting
of
lawyers,
overall
both
revision
and
for
proposals
of
tax
our
pro¬
It is expected that this pro¬
gram.
gram
be
can
submitted
early next
gress
con¬
economists
studying
Con¬
to
year,
It is not my purpose to discuss
specific tax proposals at this time,
i
since
the
position
Administration's
with
taxes has not
and, of
final
specific
yet been formulated
to
respect
has not been
course,
^ UC
A Tf
o
com¬
municated to Congress.
U One
of the most significant new
policies, however, in the tax field
in
comes
the
administration
income tax laws.
our
of
One of the
basic tenets of the present Admin¬
istration is to return as much gov¬
,
ernmental
activity
the local level.
possible to
as
This works in t^e
collection of income taxes
well
as
in other administrative actions
as
by the government.
V
Under the direction of Commis¬
sioner T. Coleman Andrews, many
functions relating to the settle¬
of
ment
tax
disputes
decentralized,
so
have
that
been
taxpayer
a
will be able to know much
sooner
what his total tax liability is
will
thus
be
able
to
make
and
his
plans without having stale claims
over him indefinitely.
In
hanging
line with this policy, most tax dis¬
putes
be disposed of in your
can
State
own
Director's
In
Office.
spite of this decentralization, how¬
effort will be made to
ever, every
assure
taxpayer that he
every
is
receiving the same uniform treat¬
as is being accorded to every
ment
other taxpayer, wherever he may
live.
We
believe
this
that
will
do
much towards re-establishing full
and
complete
confidence
of
the
American public in our voluntary
system of taxation.
For
all
of
the
officials
Treasury
Department
Secretary
on
down,
I
the
of
the
from
assure
can
that no group of officers or
employees of the government has
you
been
ever
achieving
an
tax
laws
administration
than
are
equally
true
and
ment
the
of
,,
of
those
charged with that function.
is
of
efficient, honest and
business-like
the
desirous
more
debt
J. he
area
served by the West
needed to make almost
ments
of
are
Penn Electric System has what is
everything. Many
territory. Newcomers have
virtually everything they
The
combined
list
of
use
is right in their
and
area
and
own
man-made
reads like
of the needs of American industry:
coal, limestone
square
miles
wide choice of locations where
a
natural
West Penn Electric's service
water;
industry's require¬
an
ideally met at several points in the 29,000
a
backyards.
advantages in
What's What"
abundant supplies of fresh
other natural
resources;
a
great
variety of semi-finished materials; excellent transportation; suit¬
SEND
FOR
FREE
FOLDER
~
7
faod
TZeattoU "
describing advantages enjoyed by industry
in West Penn Electric's service
able sites with
room
to
expand;
markets; and ample electric
easy access
to the nation's best
Consult
us
about your
problems. Ask
power.
us
area.
plant location
to suggest sites, build¬
ings and communities suited to
Less
tangible, but equally important to successful manufactur¬
ing, is another asset which management finds in the
the
area.
It is
friendly pride which the people of its pleasant, small towns
take in their industries and their
needs.
your
Simply write Area Development
Department, The West Penn Electric
Company, Room 318, 50 Broad Street,
New York 4, N. Y.
jobs—they like to work where
they live, enjoying the area's well-distributed recreational and
cultural
opportunities.
now
This
GLASS SAND
manage¬
oneration
the
of
other bureaus of the Treasurv De¬
partment.
the
will
Each
of
himself
considers
of
the
the
officials
responsive
to
peoole whom
we
serve.
To the extent to wbir^
we
fail
meet
tion.
to
we
calling
us
this exacting obliga¬
would
appreciate
to task.
your
Monongahela Power Company
The Potomac Edison
Company
Wesf Penn Power
Arnold
B.
with Hamilton Man¬
none
a
out¬
in earlier weeks, appears to have
The main ob¬
encourage,
de¬
currently
with
government's needs.
bears
we
over
shipments."
for the
revenue
quar¬
receiving orders well
ability to produce.' He
scribed
respon¬
market
the
our
tapering off,
inventory correc¬
consumer
the
of
were
are
tion, regarded
for
according
during the first
of
next year.' New
orders, he
stated, 'are running at a good rate,
although below the feverish pace
end,
order
adding: Tm
1954, too. I believe
corporation will average right
optimistic for
op¬
90%
to
by
15
capacity levels during the balance
construction.
predicted that steel mill
was
sible
on
of
other
purposes
from
"Monthly
profits tax at the end of this
cess
been
"Sentiment
carried
in
relief
or
the
the
"With
states.
at
with
and
the
"re¬
own
be
not
period,"
the
National City Bank of New York
the
by this demonstration of continu¬
worth, and they should
in underlying
into effect by so- ing strength
de¬
called "tax" laws.- It
destroys the mand and by the excellent show¬
confidence of the tax-paying pub¬
ing of corporation earnings state¬
their
months
issue
of
durable
"Where
In its review of
conditions,
industry
heavy
Finds Confidence in Business Outlook
to
efficiency
(1843)
Company
445
Grant
The Commercial and Financial Chronicle...
(1844)
16
loss
of
felt
Capital
Venture
publicly
system
able
the
cover
capital
will try
I
understood in our busi-
as
of t h e
founding of J.
background
the
ness;
allotted
H.
Whitney &
Co., and its
operations;
a
brief comment
other
on
ture
ven-
capital
firms;
and
general
some
comments
this
on
D.
Ward
war.
Capital in New
These activities
a
being
an
rec-
able
which
ognize that the success of the free
enterprise system depends in part
steady *low of investment in
enterprises; that launching
I
of
gree
on a
This
invest-
to
purchase
a
A.T.&T.
of
100
New York Stock
of
shares
stock
common
the
on
Exchange,
the
on
other
'
_
,.
the
For
our
venture
of pointing up
purpose
discussion
today, I
am
dividing
capital into three classes:
Class I—The
primary capital
the
nation
to
expand
it
after
has
launched,
lished
or
product,
new
to
exploit
or
a
service,
established
capital
needed
by
a
been
of
or
successful
of
success
10
as
stantially in
which
If capital
excess
require voting
companies in which we
We
(4)
do
control of
become
not
interested, but
small
Third—We find that very
we
staff of five
a
have
varying
skills,
buyouts if the change in owner¬
ship carries with it the possibilities
(6) We place great stress on the
of expanding the business or of
quality
of management
in
the
our
making some beneficial con¬
companies in which we invest. If
company.
the
it
management is not adequate,
must
clear
be
factory
to
management
be
can
venture
ob¬
These
as
associates who
in addi¬
such general considerations
the economic
look
partners
principles
the
for
were
outlook, the out¬
particular
industry,
the invested position of our
and
firm.
backgrounds
including
1946
we
jariy the wealthy individual willtake
0r
^jer
a
on
a
new
general
investigation
the
and
vice
more
enlightened
in
their
Approach to this problem, there
was a
strong probability that the
thought
to
this
situation
and
f°un<3ing of J. H. Witney & Co.
1946. An incident which
?n„.
!
ll??,ced his thinking occurred
position ^
when, an officer in the
the
proposals,
new
assistance
agement
of
the
to
enterprises
new
venture
categories:
rendering of general ad¬
and
^ea
invention; and that unless
capitalists of this country be-
of
divided
capital
man¬
in
which
investments
have
just
did
deals
this
low,
Our
ness.
tion
method
varies
posal.
basis
of
with
of
the
investiga¬
type of
Generally speaking,
of
referred
obvious
to
pro¬
a
new
not
initially re¬
policy or on the
lack
of
one
busi¬
our
of
our
merit
is
associates
for initial study. If he finds it in¬
teresting, it is referred to
ment, with
partners
and
informal
an
associates
and
a
part¬
team
is
of
desig¬
of
materialize.
not
example,
Rico
Puerto
would
in
have made two
we
in
investments
tractive
we
are
United
the
of
consider
not
a
at¬
States.
While
to
our
addition
interests
current
with products or
nesses
in
rather than services that
structive
economy
are
worthwhile
or
busi¬
processes
con¬
the
to
and have unusual growth
possibilities
with
high
related
of investments is profit generating potentials.
As you
probably have noted,
about 75% of the
actually
proposals
jected
equally important to
success
some
For
we
if
stable
unique situation exists.
and
type
States
governments
percentage
activities
are
pro¬
posals for investment but the final
of
ultimate
three
approved
we
been made. We consider that both
the
1% of these—or 46. In ad¬
over
dition
United
in¬
outside
con¬
two
are
their
consider
countries
in
All of the above are in
have
Our
activities
feel
and
Since Feb. 1,
will
Sixth—We
vestments
continental
tained.
tion to
tribution to the company.
satis¬
that
us
years.
meas¬
a
a
Our firm consists of 11
ner
established
capital will
in
investment.
business with competent managean
in
investment
of
interested.
are
into
evolved the plan which led to the
equity
been
profit¬
been
doubled
the
capital
and
the
of
have
be considered
During and just after the war, proposal that is
to Mr.
Whitney gave considerable jected under our
business
Class III—The additional
it has
that
add
results
firm
our
new
which has deteriorated.
size
we
etc.
^v.est
enterprises, that high in-
successfully government would step in at a
to enable an estab- price of socializing our industry,
process,
an
business
Second—We put more stress on
on
completion of technical devel¬
There is no lower limit to opment and product testing. It is
(3)
the
incompetent or inefficient
is
management.
can commence.
ln ney
come taxes have caused a progressive drying up of traditional
sources of venture capital, particu-
been
business
revitalize
a
opment
ties
devel¬
commercial
before
pleted
com¬
!lons whlcb cannot
came
needed
com-
banks and other fiduciary institu-
new
capital
experimental work to be
lawyers,
engi¬
sidered approximately 4,300 pro¬
neers,
economists,
investment
bankers,
merchandising experts, posals and made investments in
the
Class II—The secondary
insurance
Panjes» investment trusts, savings
needed to develop,
£est, and launch
ideas, inventions, or services,
life
in
will
I
that its initial
can
ure
of
public,
have
new
from the purchase of a
a raffle, on one extreme,
range
point
enough to justify Mr. Whit¬
initial investment. By this,
mean
different
chance in
of J. H. Whitney
provide capital for
financial
no
made
led him to
ne\v enterprises is a long, difficult,
universally accepted as'and e ,rlfr?e./ hazardous underinvestment with a de- taking; that there is an increasing
risk attached. It could concentration of liquid wealth of
is
ment
any
I will indicate later.
as
operation
ney's
people. A venture capital
to
this
while
Flow of
connotations
for
a more
of
is
manner
purpose
was
important,
different
has
tial
—
Venture
Robertson
Co.
At
Enterprises
phrase
be past business indicate that the primary
stages source of small business difficul¬
that they do not have substan¬
so
Whitney announced that the
primary
&
variety of enterprises before the
capital.
capital is
laboratory
investments
are
impractical. It
would
costs almost as much to investi¬
medium and small sized compa¬ at least expect to be influential
gate and guide such investments
tive manner in fixed income se- nies and to assist in their develop¬ in the company's affairs.
as it does larger ones and an ade¬
curities and Class III venture cap- ment. It reflected his confidence
(5) We are ordinarily not in¬
quate profit potential is lacking.
ital equities and to have devoted in the business future of this terested in buying securities
Fourth—We do not require con¬
his time to other activities. How- country and his hope that such which merely represent a change
but
must
have
a
strong
investments
might
further of ownership, since that defeats trol
ever,
Mr. Whitney has a great risk
respect for this country's free en- the development of business en¬ our primary purpose of supplying enough position to be influential
in directing the destinies of the
terprise system and took his in- terprises, thereby increasing jobs capital to new enterprises. Ex¬
herited responsibility as a capital- and improving management. I ceptions might be made to this enterprise, particularly if adverse
developments set in and it be¬
ist very seriously. He early de- particularly want to call your at¬
practice if the change of owner¬
comes
necessary
to change the
cided to make venture capital in- tention to the phrase "to assist
ship involved the provision of ad¬
management.
vestments himself and was more in their development" used in this ditional
capital
or
some
other
Fifth
We are interested in
than averagely successful in a original announcement. It is very beneficial contribution to the
of
type
assistance
of
type
no
we
as
or processes
early
very
ment.
Mr.
Describes workings of J. H. Whitney & Co.,
specialists in venture financing.
meaning of venture
in
products
new
the
our
policy to have our capital
sub¬ used for commercial development
of $500,000 is rather
than
technical
develop¬
value
unless
such
assistance is required, the firm will ordinarily
ment. We have had sad
experi¬
seek
assistance
of other capital
profitable.
ences with the risk of both tech¬
sources
to provide the necessary
nical
and
commercial
develop¬
Purpose of J. H. Whitney & Co. funds.
or privately owned. Holds success of free enterprise
depends in part on steady flow of investment in new
time
the
In
to
and
enlightened
capital needed by concern, whose securities are
enterprises.
and
loss
given to making it work in
and (3) addi¬
already successfully launched;
business
tional equity
for
those
were
know it,
succeed unless it is profit¬
cannot
capital needed to develop, test, and launch new ideas, inven¬
tions or services; (2) secondary capital needed to expand a
new
gain
therefore justified
was
enterprise system,
of venture capital: (1) primary
Mr. Ward lists three classes
he
However,
for
odds
making the investment. The free
Co., New York City
Partner, J. H. Whitney &
the
greater1 than
that he
WARD *
By ROBERTSON D.
high.
were
that
Thursday, November 12, 1953
rejected
are
as
general policy,
our
About
with
25%
varying
a
result this change in emphasis in our
re¬ general policy brings us nearer to
are
obvious basis of lack
on an
merit
or
in
ranging
are
degrees,
termined that
or
no
from
Class
ments.
I
Class II than
in
being interested
study.
considered
in
little
venture
capital invest¬
We have
That is true.
we
are
de¬
better quali¬
preliminary study to full investi¬ fied to judge and provide man¬
gation. Of this 25%, one in 25 pro¬ agerial assistance to such enter¬
results
posals
This
saying
is
very
Of
in
no
of
one
tivities
a
in
highlights
an
the
investment. prises. We have been rather un¬
cost of successful in making Class I in¬
high
business, which vestments, where the difficulties
of investigation and determination
organization and of the future prospects are so very
our
the time-consuming ac¬
of
our
investments
the
In
great.
unglamorous task.
we
have
this
respect,
you
may
feel that.the primary purpose for
industry, and whose securities
Force, he was taken prisoner nated to make an analysis of the made, 18, or 39%, have been or which Mr. Whitney established
the firm has been modified. Per¬
either publicly or privately by the Germans (from whom he
proposal and present their recom¬ give evidence of being profitable;
owned. If such securities are pri- subsequently
escaped). He was mendations thereon to the firm as 14, or 30V2%, have been or give haps this is true. At least, we have
become a little more cautious, in
vately owned, they would qualify asked what hjs civiliai} occupation a whole. The
of
analysis is as care¬ evidence
being
unprofitable
for
underwriting by established ^as>
rePHed "Capitalist." The ful and as complete as we can with nine being 100% losses; and the interest of survival and of
investment
bankers and sale to German could not have been more conceive and is aimed at
becoming a permanent part of the
devel¬ 14,
or
30V2%, are uncertain at
the public
securities business. However, we
startled if he had been kicked and oping the factors affecting the this time.
are still
interested in the unique
These
classifications
am
not
aPParently concluded that his proposal which will
in
are
!!?
mI!
PYaflt
prisoner had need of a psychiatrist,
•
^K vf.nture caPltal
MnSnnnAhiS°T
?• C°m"
f*nhZl il! cl*sslflcatlons or
ihcem.H0TVf' aen;
f!!<
i'
inninriocn
r.n
Vnn
rial
Se
understand ^'
!nlrf T
familiar with
iiv other taUcsTn °this ently had ,-|uestions and doubts
r
am
ttt
n
covered
•
about our capitalistic system and
series
viewed
My definition of venture capital
hicrt
imniioc
*1
o
capitalist
a
Thus Mr.
Financing Small Business
with
horror
Whitney's determination
t°,lrya to do bis par.1 in ™akinS
ours
more dynamic and more
wither strengthened.
After his return to civilian life,
he divided his capital into three
financing would be small and so
in talking about venture
capital I p.arts; (1) a portion for conservaam
also talking about small busiinvestment; (2) a portion for
ness financing.
a philanthropic foundation—The
Class I
My
Class II venture capital
or
senior
partner, John Hay
Whitney, inherited one of Amer- ?
ica's
great fortunes just after he
graduated from college. It would
have
been
arranged
vested in
easy
to
a
for
have
him
to
have
his
capital intraditionally conserva-
"ay
nnnnjT1
^
P°rtlon $10,000,000
tor hls venture capltal llrm"
,
In establishing this firm, he
made a major Class I venture capital investment. He was one of the
pioneers in the field of providing
a
—-—
new
channel
through
which
r'•£
Mr* Ward in the series capital and new enterprise can be
"The
(Economics of the Securi- hrnnoht Wf»thpr
Industry," sponsored by theAnvest- TOUgnt togetner.
°LNe,w 7°rjiin. c°;
His backing this new idea in-
entitled
ties
Busines°sn
Administration
"of* New ° York volved taking
University, New York City, Oct. 21,1953.
give
information to
necessary
us
the
deter¬
Factors
in
New
Class I venture capital investment
Investment
While Mr. Whitney was not sur- mine whether or not it fits into
From
our
experience to date
Prised by that reaction, he was our current policy, as I will dis¬ and with
weight given to the ef¬
not prepared for the reaction of cuss subsequently.
fect on our business caused by the
Often, in con¬
the y°un§ Americans who were nection with the
investigation, an Korean War incident, the set of
captured with him — they com- outside consultant will be em¬
principles which we are using as
Pletely echoed the German's at¬ ployed with a particular talent re¬
guideposts today would be some¬
titude. These young men appar- quired for the
what
modified
from
those
set
dinary'risk
on
a
greater than
or-
which the chances
specific venture.
At the
three
end of
years
of
Whitney & Co.
1949, after nearly
operation,
was
J.
H.
asked to make
forth in
1949
as
the
where
man
with the
idea
or
invention also has the managerial
talents
man
to
run
seems
a
to
business.
be
rather
Such
a
a
rare
bird.
Providing Venture Capital With
Advice and Assistance
follows:
I
The
first factor
look
for
over
all
in
a
new
which
we
now
investment
is
suggest that our business in¬
volves the providing of venture
capital together with advice and
ability or assistance
usually including addi¬
evidence that we can provide such
tional venture capital to business
had been set up by Congress. At
management. A mediocre business
enterprises in a manner which
that time we said among other
with outstanding management is
will result in promoting the stat¬
things that while not necessarily a better investment than an ex¬
ure
of such investments over a
irrevocable
or
controlling,
we cellent
business
with
mediocre
period of time either from Class
were then using the
following set management. Most of our losses
II to Class III or from Class I to
of.
principles as ' giiideposts
in have been directly attributable
Class II to Class III. When such In¬
selecting our investments: '
to management failure. We also
a
statement to the
tee
on
Joint Commit¬
management
the Economic Report which
vestments
(1)
We
interested
have
thus
been
pro¬
in recognize the great difficulty in moted to Class III our business
enterprises in the United States appraising management, particu¬
contemplates our disposing of
and
prefer situations involving larly for a new venture. This
such investments
at
a
profit
some new product or process with
conclusion which we have reached
through established means of liq¬
distinct
based on our experience is borne
competitive
advantages.
uidating Class III investments. If
(The policy against investments out by study of 8,058 business
our
activities are successful, our
outside
the
United
failures
made
States is
a
by Mr.
Griffith
capital will act as a revolving
temporary one based on our belief Jones, of Dun & Bradstreet, who
fund, which can continue to pro¬
that we should not endeavor to ascertained that 42% of the fail¬
mote new enterprises, particularly
enter the field of foreign invest¬ ures were because of lack of man¬
those which have passed through
ments until we have* established agement 'Experience and 46% be¬
their initial birth pains and are
more definitely our objectives knd cause of management's: incompe¬
methods in the domestic field.) \
tence. Furthermore, most studies ready for first step expansion, or
(2) In general we prefer that of problems encountered by small to assist established enterprises
are
only
Number 5272... The Commercial and Financial Chronicle
Volume 178
which have
(1845)
IT
products or pro¬ Organized investment capital field, particularly in
exploited or need firms or individuals cannot afford of the country. We
managerial assistance and venture to compete in this field with their wealthy individuals
tion to give their companies con¬
for
tinuous and substantial assistance
to
in
and
interesting
new
enterprises that have been initially
other parts
Finally, if you are interested in Cecilia
Lieb With
hope more learning
more
of
the general
Standard Investment Co.
background of this subject, I refer
will
leave
their tax shelters and establish you to the special supplement to
(Special to The Financial, Chronicle)
venture
capital firms with the Dun's Review in October, 1952
LOS ANGELES, Calif.—Cecilia
goal of making attractive capital entitled "Can Small Businesses R. Lieb and
Theodore Hersh have
gains and thereby furthering our Get the Capital They Need?" by
joined the staff of Standard In¬
free enterprise system.
Edwin
B.
George,
Director of vestment Co. of
California, 210
There will be an increased de¬ Dun & Bradstreet, Department of West Seventh Street. Miss Lieb
Furthermore, I hope has
mand for venture capital in the Economics.
recently been with Cantor,
future to meet the need of our that if you come across interesting Fitzgerald &
Co., Inc. and prior
venture capital investment situa¬
thereto was assistant manager of
increasing population at our in¬
tions, you will refer them to our the
creasing price level and for Class
trading department for Edfirm or one of the other firms
III venture
capital to purchase
gerton, Wykoff & Co.
now engaged in this business.
blocks of securities
from large
launched—that is, the capital we
investors
new
,
be
to
cesses
capital to reestablish their posi¬ 100 cent dollars. The Government
will continue to finance new de¬
in industry.
It is important to recognize that velopments, particularly in fields
at the time a company requires requiring huge amounts of capi¬
venture capital it is generally at tal
such
as
atomic energy
and
its most difficult and critical stage highly technical projects for the
and venture capital investors must Armed
Forces.
However, it is
in their own interests be in a posi¬ hoped that it will not be necessary
tions
the form of
vice
well
as
seldom
Government
to
continue
guidance and ad¬ legitimate
funds.
as
that
vestments
the
provide Class II financing for
of
one
be
is yery
these
in¬
It
in
the
*•'
and
estates.
If
we
are
successfully
pro¬
With Eaton & Howard
venture
capital business going to keep our free enterprise
moted to Class III without the stand ready to provide. We be¬
system dynamic and progressive,
provision of such assistance. We lieve that we are serving an im¬ private risk capital must lead the
feel that in making such an in¬ portant social purpose in this con¬
way which has been pioneered by
vestment our share of the owner¬ nection
and
hope we will be
the few firms that have been es¬
ship involves an obligation on our successful enough to attract much
part to provide assistance to the more "competition" to enter our tablished in this business.
can
With Protected Investors
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
SAN
Glenn
staff
FRANCISCO,
L.
of
Allen
has
Protected
BOSTON,
Calif.—
joined the
Investors
Mass.
Richardson, Jr. is
&
of
Street.
management. In other words, we
go into partnership with the pro¬
prietors
and
we
to
can
help
successful.
is to make
an
retain
we
our
back
or
time
have followed
we
control
of
will
relinquish
agreed
minority
a
our
profit when
has
been
control
terms and
stock
common
interest from which
III
business
a
initial investment is paid
is money good, at which
we
retain
way
enterprise
agreement whereby
previously
on
every
One formula for part¬
nership which
until
in
the
make
will make
we
this
promoted
investment
to
the
Class
category.
There
are
other firms in this
related businesses
and some of which
after
independently
were
patterned
firm, with the founders
our
following Mr.
the
or
of which
some
established
were
first
Whitney's lead. In
is
category
Research
&
American
Development
Com¬
in Boston, which is a pub¬
licly owned corporation in which
many small investors and several
large insurance companies
and
pany
other
fiduciary organizations have
made
investments.
serves
as
classes of
in the
a
therefore
It
for
means
investors
these
twc>
to participate
important field of venture
capital
investing. American Re¬
Development Company
publishes an annual report which
gives a very complete accounting
search
&
their
of
first
activities.
category
in
Also
New
are
this
Enter¬
prises, Inc. in Boston, Rockefeller
Bros,
in
Sons
in
New
York, T. Mellon &
Pittsburgh, and others.
They have somewhat varying pur¬
and their activities are not
all confined to venture capital in¬
poses
vesting. In the second category of
other businesses in this field which
patterned after
were
our
firm
are
Payson & Trask, Wm. A. M. Bur¬
den
and
&
Co.,
Sears
Henry
&
Co.y
Fox, Wells & Co., all in New
York
City.
firms
ours,
are
While
similar
these
latter
SPANS NATION "WITH WORDS AND PICTURES.
from
waves
in
tower to
tower
purpose to
policies have
their various
Bell System Radio-relay beams micro¬
This supplements wire and cable lines.
throughout the nation.
somewhat different emphasis and
therefore together provide a fairly
broad source of venture capital
various types of business en¬
terprises needing this type of fi¬
for
The Heart of
a
nancing.
Sources of Venture
There
are,
Capital
Widening
Skyway of Communication
and I am sure will
continue
to be, four sources of
capital: individuals, es¬
tablished corporations, the Gov¬
THE
venture
ernment, and organized invest¬
companies or partnerships.
ment
first
The
three
these
of
sources
designed by Bell Telephone Laboratories,
Extra-sensitive radio tube,
#416
Incredibly
helps send Long Distance calls and Television programs across country
VACUUM
small
spaces
TUBE
between
electrodes enable this Bell
tube to
System
relay microwaves over
long: distances without appreciable
distortion
or
deterioration.
will probably supply most of the
Class I venture capital. Individ¬
uals will make these investments
because
of personal
relationships
with inventors and entrepreneurs
and because of the
comparatively
small amounts of capital involved
When
telephone scientists first conceived the idea of a
tube like this, they wondered if human hands
vacuum
and machines
could
ever
make
and the
for
unusually attractive odds
profit. Corporations through
their
research and development
organizations will probably be an
increasingly important factor in
creating the more expensive basic
new products and processes lead¬
ing toward the better ways of life.
Our tax structure is such that they
are
or
in position to
spend 50 cents
less cost dollars in this manner.
Tor inside the tube
twisted
together,
Chances
But every
are
are
are
you'll
wires
only
as
so
anything
some
delicate.
people. They help make possible the microwave Radiorelay networks that carry Television programs as well as
Long Distance calls throughout the nation.
fine that sixty of them,
thick
never see one
day they do
so
as a
human hair.
of these little tubes.
big things for millions of
BELL TELEPHONE SYSTEM
Local
to serve
Underground, overhead, in the air—in research and
in
manufacturing—in transistors and in vacuum tubes—
System uses every possible means to
the
Bell
and
improve
your
David
L.
with Eaton
Howard, Incorporated, 24 Fed¬
eral
America, Russ Building.
—
now
service.
s22e
the community. Nationwide to serve the nation.
extend
The Commercial and Financial Chronicle
18
...
(1846)
located, could
Economic Impact oi Atomic
benefit
of
These
Stresses technical and economic
development
our
indications
will
be
atomic
some
«conomic
before great national prestige would ob¬
material tain if the United States were to
the electric become the first nation to utilize
nuclear power extensively on a
on
country at
least.
Long
this
doubt
new
energy
may
source
b
c
e
o
e
m
a
the
in
duction.
electric power.
nomic
try
tric
Edgar
indus¬
I
as
participation by elec¬
power company personnel in
program serves to add to the
Then too,
its eco¬
impact
our
on
H. Dixon
the
nation's reserve of trained and ex¬
see
it, will be principally to supple¬
ment present fuel sources. To the
extent that savings in costs are
perienced nuclear energy experts.
Moreover, the presence of these
technicians in scattered develop¬
ment
projects
lends
a
further
possible, they no doubt will be measure of geographic diversifi¬
of principal benefit to our cus¬ cation of skilled nuclear special¬
tomers, if history provides a reli¬ ists throughout the country, a con¬
able barometer.
sideration that would be signifi¬
of the
electric
power
industry in the
atomic
energy
program
of this
country is well known. Tangible
The
important
interest
found
substantial ma¬
of this interest is
evidence
in the fact that a
jority of the companies partici¬
pating in the study teams under
authorization from the Atomic
cant
national
of
time
in
emer¬
gency.
rect and indirect reasons.
Direct Objectives and
first
the
benefits
Most
may
of
Nuclear
Power
at
unit
a
of
cost
compar¬
conventional
a
dollars
and
ship
power
production
Atomic
Energy
constructed two
of
cents
nuclear
The
costs.
Commission
in
that
of
experimental
return for what
Incentives
category, a funda¬
mental
uting to
This
they
our own
point
contrib¬
conduct
research
extending from experi¬
mentation with various fuels, and
the
medium
of
in¬
reactor
this
is
It
manner.
nuclear
is
power
turbine-generators.
One
by
Mr.
Thomas
eign uranium
that
our
with the result
potential will be
ores,
weapons
Both
Direct
and
such
as
in
the
picture,
technical problems affect¬
of such
cost
plant
a
per
devising
of reprocessing
determination of a
means
a
the spent fuel,
is realistic price for initial uranium
tion of electric power was not the
prime goal of either of these
ex¬
periments, and because they were
conducted on only a small scale,
no pertinent information as to the
of nuclear power can
cost
their operation.
looked upon as potential areas for
improvement. They
hopeful
that
one
day
nuclear
be able to stand
power may
to be
cause us
its
on
feet, although substantial de¬
be had velopment work
appears
neces¬
A third
re¬
the Commission has embarked
a
on
program to construct a full-scale
power reactor. As he expressed
it,
"We recognize that costs of
power,
from
this
first
reactor,
derived
will
be
own
if this goal is to be attained.
sary
of
heat
35c
content
40c in other
or
it is
reason
parisons,
least,
in
some
For this
logical that cost
in
the
should
be
initial
to
areas
areas.
com¬
stages
made
with
at
re¬
higher than costs from spect to the sections of the coun¬
plants. But we will really try having highest fuel costs.
modern
know
we
the
answer
to
portant, until
Technology of Power Generation
Continuing to Improve
operate several
we
contruction
of
large-scale
reactors."
Secondly, most comparisons of
major problem is as¬ potential costs of generating elec¬
tricity from
nuclear
fuel
with
certaining the feasibility of com¬
mercial power production related those prevaling
in plants using
Another
the
to
disposal
of
which
various
under
consideration
duce
in
plutonium,
reactor
types
would
now
pro¬
addition to power.
While
plutonium
might
fossil fuels
by
the
government
military purposes, an artificial
market of this kind
obviously can¬
made
on
of present costs for the
expected
former.
a
excess
purchased
are
future
This
electric
basis
latter, and
costs
approach
fundamental
the
the
for
to
overlooks
characteristic
power
of
industry—that
of
constantly seeking and devel¬
oping improvement in installa¬
tion
costs,
in
boilers,
and
be very real indeed.
favorable
tries.
Indirect Objectives and Incentives
The
would
indirect
result
benefits
from
which
successful
ap¬
plication of atomic energy to the
generation of electric, power are
11
stage
in
Thus,
the
An
address
by
Mr.
Dixon
30, 1953.
before
coun¬
Recent attempts to estimate the
even
at
this
early
economic status of nuclear power
have indicated that the cost
of
nuclear
de¬
power
atomic
costs of
reactors
be
generating electricity
substantially
which
energy
tne'National Industrial Conference
York City, October
New
foreign
velopment program, in which the
we
■■■
*
many
of
benefit
are
to
world, if it
were
those
accustomed,
might be
other
parts
source
Board,
above
may
of
of
to
fuel
can
with
real make
a
some
types
of
in power plant design is
flattening out, and that new ave¬
progress
nues
of approach were needed to
assure
further
present design limits with respect
cost today of the to
temperatures
and
pressures.
fuels
required
kilowatthour
of
to
electric
Industry
has
situation in
responded
of
generating
electricity
in lem
was
to
this
the typical American
the energy. Some 40% of the average fashion. In this instance
cost
beyond
progress
be brought below the
national average
this conventional
available. Power
ures
up
mention
I
tails
technical
these
illustrate
to
the
de¬
dynamic
character of the electric power in¬
and
dustry,
accept and bring for¬
ward every new
development that
advance its technical and
can
its
demonstrate
to
readiness to
eco¬
nomic well-being for the continu¬
benefit
of the
public.
In
budgeting time, effort and money
for
improving the prospects of
supplying electric energy in the
most
economical
way,
it seems
ing
logical
should not only
investigation of the
that
make
we
full
a
turns
possible.
appear
would
I
expect that the electric power in¬
will
dustry
pursue
whereunder
the
nuclear power
program
a
development
of
is balanced and in¬
tegrated with work aimed at im¬
proving
tives
shorter-term
our
lower-cost
of
conventional
fuel
energy
objec¬
from
sources.
Power Development
Nuclear
Program Indicated
The
time
plants
when
nuclear
begin to assume
can
stantial fraction of
of these
important
lates
no
The
re¬
most
doubt re¬
incentives.
economic
to
stated
factors.
of
number
ent
sub¬
annual
production will depend upon
ergy
a
our
power
a
for expansion of en¬
quirements
earlier, there is
no
As
appar¬
prospect that a nuclear plant
compete with conventional
could
plants on
power
this
country
cost basis in
a
the near-term.
over
attacked
the
jointly
prob¬
by
a
potential longerthat might
benefits and the
of
be
warrant
develop¬
successful
from
accrue
to
benefits
direct
ment of this
power source appear
magnitude to
sufficient
develop¬
continuing
a
ment program on
the part of both
government and business.
other
The
the
,
appear
if this installation meas¬
to expectations.
sought
term
efficiency, and in
not be depended upon
The
real
throughout
importance of con¬
tur¬
operating
costs.
Since
it
was
the expected life of a
generating founded 75
auxiliary sidering both the direct and the
years ago, the electric
indirect motives which have led to plant.
Eventually,
the
nuclear
power industry has been success¬
power installation must stand or
A second direct consideration is the active participation of electric
ful in reducing
continually the
fall on the basis of the electric
companies in the atomic
that the electric power industry power
cost of generating electricity and
energy
produced,
coupled with
is desirous of expanding the fuel energy development program lies
making such lower costs available
whatever. revenues may be- de¬
sources
available for generation in the apparent timing of potential
to the consuming public.
There
results. Fortunately, our country rived from sale of plutonium as a is
of electric power, and conserving
ample evidence that this longis well supplied with reserves of fuel or for other commercial uses. term trend is
the nation's reserve of fossil fuels.
continuing. Hence,
Other by-products,
including the the economics of
We can't help but be impressed fossil fuels and efficient, expand¬
generating elec¬
fission products or ashes of the
ing electric utility systems, a com¬
by estimates indicating that the
tricity
by
conventional
means
bination which should assure us chain reaction, likewise may be should
energy in deposits of uranium and
by no means be treated as
found to have value, although at
an ample supply of low-cost elec¬
thorium
may
be more than 20
something static when it comes
power
for
times greater than the energy con¬ tric
many
years
to present these materials present an to making comparisons with es¬
tained in the world's known re¬ come. On the other hand, the situ¬ expensive disposal problem.
timated costs of power from nu¬
clear or other sources.
coverable reserves of coal, oil and ation as to availability of electric
Atomic Fuel Costs Appear
gas.
Thus, the stakes in connec¬ power—both from a standpoint of
In recent years there has been
Favorable
tion with this new energy source fuel supply and cost — is less
some indication that the curve of
and
bine-generators
equipment.
roughly 10% in the amount of coal
However, the prospective indirect
costs
build and, still more im¬
for
Indirect
Motives Importanct
The
reduction of
a
Arco,
be
mining or otherwise
obtaining such fuels, to techno¬
logical improvements in the design
result is
potentials of atomic
fuel elements, assigning a value interesting
Idaho, and the other is to plutonium and other by-prod¬ energy, but also continue to seek
Homogeneous Reactor Experi¬ ucts, and so on. These and other progress along more conventional
ment at Oak Ridge. Since produc¬
lines where more immediate re¬
imponderables, however, can be
at
initially,
smaller than need be the case."
of
attempted in
installation.
the
until
a
been
never
commercial
a
not
re¬
kilowatt, computing the probable
has thermal efficiency of the reactor,
conven¬
that has
the Experimental Breeder Reactor
never
strength.
emphasized in
was
address
are
objective of the electric
industry is, and has been Murray, member of the Atomic
since its inception, to seek lower Energy Commission, when he said,
"I believe that unless we embark
costs of generating electricity, for
on
an
all-out
attack
on
our
the continuing benefit of the pub¬
lic:
Toward this end, numerous nuclear power program immedi¬
electric
utilities
and
equipment ately we may be deprived of for¬
manufacturers
through
tional
boiler
the
kilowatt
per
variables
many
has ing the
been converted into electric power
to
required to make a kilowatthour
of of electricity at the most efficient
capacity, are considerably higher
plants operating today. Still fur¬
than the upper limits of figures
ther improvement would be
costs,
The economics of the
the
an
manufac¬
electric power com¬
returned
expected
size.
same
primarily because of this relation¬
Not Clear Cut
s
manufacturer,
equipment
an
is
steam
estimates
derived
Economics
boiler
and
a
successful develop¬ actor capable of producing elec¬
In comparing estimated costs of
ment of atomic power generation tric
energy,
the
Submarine electric
energy derived from nu¬
could provide a means of invalu¬ Thermal
Reactor, likewise offers clear
power with those of power
able technical assistance to
our
little help in assessing the poten¬
generated from conventional
allies and other friendly nations. tial of nuclear
power for commer¬
fuels, there are two essential con¬
The President's Materials Policy cial
use,
in view of the rigid siderations which should be
kept
Commission stressed our depend¬
specifications
required
for
this in mind.
First, there is a wide
ence
upon certain
other nations
sea-going unit.
variation in fuel costs throughout
for vital raw materials—including
This point, too, was covered
by the United States, ranging from
uranium—that add immeasurably
Mr.
Murray in announcing that around 10 cents per million BTU's
to
our
industrial
and
military
power
methods
indirect
Finally,
recent
programs
and
leading
electrical
capacity we can
twice and reheated for use a sec¬
nuclear power
ond and a third time, something
turn out kilo-
of
that
to
both stallation
that
expected
result.
from
Commission are electric
power
companies.
Still
other
companies within the industry re¬
cently have been seeking means
of participating in the program.
strength. If we could assist other
There are many reasons for this free countries in
applying atomic
interest and effort, and I think it
energy to electric power genera¬
is important,..that they be under-;
tion, we would be capitalizing on
stood.
I should like to separate a rare
opportunity to provide eco¬
them into what may be called di¬
nomic strength to those nations in
Energy
In
direct
long-range point of
a
is
watthours
able
actors from which heat energy
If and when it
does,
assuring their continuing pro¬
and
of
generation
it
Sec¬
commercial scale.
a
on
major role in creating a commer¬
cial
market for
these products
competitive
factor
kilowatt
per
generation considered competitive today.
of electric
power
from nuclear
It should be emphasized that at¬
ondly, the electric power industry
energy are not at all clearly de¬
tempts to ascertain the economics
possibly can assist in devising fined as
yet. Reactor experiments of nuclear
power generation along
more economical means of produc¬
to date have not contributed ap¬
these lines can yield only rough
ing fissionable materials for na¬
preciably to an understanding of
approximations. There are a good
tional defense, and also play a
fuel
have
I
range,
no
from
as
of
This three-way team is now de¬
veloping a steam-electric gener¬
tion of nuclear fuel could be ap¬ ating plant which will operate at
plied to service a part of the a pressure well above the critical
added cost of a nuclear reactor pressure of steam, and at initial
and heat exchanger over that of and reheat temperatures that like¬
a conventional
boiler installation. wise represent new high levels.
This approach, then, can be used Also, the plant will use "double
process
wherein the
to
determine how many dollars reheat," a
than a
shorter-term plant of the
the
over
view
upon
opportunity
an
while
peacetime basis — that is, to pro¬
duce electric energy from nuclear
in. this
—
at
appear
benefits to
looked
be
can
necessity
any
indus-
power
try
impact
of
more
years
has
energy
that,
does not
cost
spend to install
economy. In other words,
nuclear power
development plant that will
program
First, it is apparent that
it several.
that
are
power
fixed
the
sents
own
the
Ex¬
will
win the atomic power race.
Present
and
real
a
program
and
pany.
electric
at least,
present
problems obstructing nuclear
development to widescale commercial applications.
presses confidence U. S., aided by electric power industry,
power
power
to offer any near-term
fuel,
for
thereabouts repre¬
or
carrying
provide
the
to
is
country
another 40%
turer
industry, and others, for investing
both dollars and manpower in a
maintains that over the long,
this
capital
invested
in
plant
the the
in¬ facilities. Thus, the saving which
might be derived from substitu¬
for
motives
indirect
benefits
incentive
.
electric
the
dustry and its customers.
potential
South Utilities, Inc.
but not
short, range atomic energy will become competitive factor in
generation of electric power with its economic impact mani¬
fested principally in supplementing present fuel
sources.
i
oppor¬
an
experience
and
edge
By E. H. DIXON*
Public utility executive
provide
tunity for gaining valuable knowl¬
Energy on Electric Power Industry
President of Middle
wherever
installations,
reactor
Thursday, November 12, 1953
affecting the
factors
timing of the impact of atomic en¬
ergy
upon
the electric power in¬
around technical
center
dustry
legal considerations. Both of
these subjects were discussed at
considerable length by well-in¬
and
speakers at yesterday's
Without going into either
these factors in much detail, I
formed
panels.
of
would like to mention briefly my
thoughts
75
to
each.
station
electric
first generated about
years ago, roughly 30 pounds
coal were required to produce
energy
of
as
central
When
was
kilowatthour
one
of
electricity.
Today, less than one pound of coal
produces the same amount of elec¬
tric
energy.
will
coal
mated
from
be
Tomorrow, even less
needed. While esti¬
production costs of power
sources already ap¬
nuclear
to be below those incurred in
generation of power 75 years
ago, technical difficulties involved
in developing reactor-type facili¬
ties appear to be greater than has
pear
the
been
the
case
with
conventional
fuels.
Other
Power
Generation
Methods Sought
One illustration of the
technical
problems which our industry has
/
Number 5272
Volume 178
in
encountered
its
of
cost
duce
...
efforts
The Commercial and Financial Chronicle
to
generating
re¬
power
be taken from
our experience
plants using mercury
as the medium of heat exchange.
Development of this process was
begun about 30 years ago. In 1928
may
with
power
installation of
initial
the
plant
power
cury
several
followed,
mer¬
in
made
was
Hartford, Conn. In the
a
that
years
other
installa¬
plant would
power
to be
seem
a
Top Doremus Executives Confer
step in the right direction.
Many electric utility executives
believe that certain changes
in the patent provisions of the Act
on
50ih Anniversary
also
desirable
are
tain
in
that
order
con¬
of electric power may ob¬
sumers
the
benefits
from
resulting
accelerated research and develop¬
ment of
atomic materials and
new
tions of this equipment were made
equipment. Since proper patent
protection and incentive normally
by electric utility companies. Two
encourage
years
in
ago,
a
presented
paper
American
the
to
Society of Me¬
Engineers,. an engineer
chanical
associated
with
the
de¬
mercury
such progress, the elec¬
tric power industry has a vital in¬
terest in appropriate legislation to
this end. But because the electric
industry has little direct interest
velopment program made some
interesting observations regarding
in patents, and relatively little ex¬
the then current status of the pro¬
I
He stated that during the
design and preliminary operation
to
specific
of
the patent provisions of the Act.
gram.
three
relatively
plants, a
problems
new
number
mercury
which
not
reference
after
years
until
the
installation
made
was
encountered
were
20
some
initial
had
perience
been
mercury
placed
service, and 20 years
manufacturer had made
in
after
the
public
an¬
nouncement of "commercial avail¬
ability" of the mercury steam
sys¬
tem.
take
of
of
vestigated
industry,
will recall
you
the
with
lead
today
other
generation in¬
electric power
power
by the
whether
that
three major points.
First, there
wind
carbonization of solid fuels
valuable
by-products, collec¬
solar
of
tidal
include
radiation
and
Although
power.
these has materialized
even
of
none
on
com¬
a
mercial scale in this country, ow¬
ing to economic
nical
as
well
tical
nuclear
is being given to some of
them, particularly abroad.
tention
These
dustry's
comparisons
success
of
the
in¬
in improving the
continue
toward
their
sincere
perfecting
economics
processes
and
its experience in de¬
veloping alternate types of power
plants, lead me to believe that a
long period of technical develop¬
ment may be required to achieve
and
a
competitive nuclear
is
This
ess.
it
when
is
considered
energy source
hold
from
in
the
an
power proc¬
particularly
that
must obtain
face
of
true
this
established, efficient and
ever-improving operation.
Revision
of Atomic
Energy
Act Desired
Turning to the legal aspects of
development of nuclear power by
electric
utility
companies
and
other businesses, I would like to
summarize
the
general views
re¬
garding the Atomic Energy Act of
1946 as
expressed to me by a
number of electric utility com¬
pany executives. -This group, in
essence,
desires changes in the
that
the
research
developmental
undertakings
of the electric utility industry in
this
program
will be balanced
with
its
efforts
reduction
in
aimed
generating
costs
at
Secondly,
the
technical
and
problems involved in
the
transition
embryonic
the
&
power
are
tween
financial accounts, and an
will probably rank it this
year among the first 50 of the 2,700 advertising
agencies of the country.
annual
Company, leading advertising and public re¬
agency, is this year celebrating the 50th
general
and
billing
that
to
wide-scale
applications are of
magnitude.
Therefore, an
development
necessary in order
period
appears
considered
that
measurably
Guaranty Survey," published by the
Guaranty Trust Company of New York, says free markets
are indispensable
in free-enterprise economies.
industry
and the equipment manufacturers
our
indica¬
pany
of
New
the work of the Atomic
need
of
free
Finally,
there is
every
York, stresses
markets
an
as
another. In this
es-
a
end,
commercial
Federal
basis.
To
that
and
legislative
ad¬
ministrative policy should
controls
one
case
of controls
set
as
than
the
can
higher
is
im¬
to
the
to many pri¬
ill afford it,
interest
rates
would have been."
La Salle Street Women
To Hold Luncheon
the Guaranty Survey." "Agriculture is
Energy Commission, the several sential element of a free enterstudy teams and others, sooner or prise economy.
"Enforcing rigidity upon a marlater, will bring us to a position
from which the prospect will open ket does not avoid the inconveniup for full-scale private develop¬ ences and hardship of instability,"
ment
of
commercial
nuclear the article points out. "Instead,
power. With this goal in mind, the it causes the instability to break
electric utility industry should be out elsewhere, usually at a more
willing to spend its own money in sensitive
spot
and in
a
more
harnessing this new energy source troublesome form. Rigidity begets
on
well
as
vate citizens who
are
An article in the November is"Labor is not the only field in
continually
improving
the
technology of generating electric¬ sue of "The Guaranty Survey," which rigidities have come into
issued by the Guaranty Trust Com- the
ity from fossil fuels.
economy," continued "The
tion that
which
costly
more
Treasury,
November issue of "The
nuclear power may become
competitive, particularly when it
dollar,
fifty-cent
Rigid Markets Do Not Make for Stability
of
that
is
over
Company
lations
present
the need for
to
CHICAGO,
accompany
111.
—
Miss Herma
Clark, author of the column
another is obvious to all except
"When
Chicago
Was
Young"—
the most wishful thinkers. The
will address the La Salle Street
futile search for a device that will
Women
at
their
luncheon
meet¬
inconveniences and
ing, Wednesday, Nov. 18, 1953, at
price fluctuations
Harding's in The Fair, at 1:00 p.m.
and also those of output restricMiss Clark has had rather un¬
the
avoid
of
hardships
tions still goes on.
«The
general
wartime
price
was
another
usual experience in
control
case
teaching, free
in having
letters, better known as
of
lance writing, and later
in
had
her
beget point, , although
its significance her "Dear Julia" and "Martha
was largely obscured by the govFreeman Esmond" letters re¬
The editorial begins with a dis- ernmental
domination* of
the printed^ in book form. "The Ele¬
cussion of the peculiar price teneconomy that is characteristic of gant Eighties" is another of her
dencies that have prevailed for modern war. The most
enlighten- compilations.! Her knowledge" ofv
instability,
and
controls."
more
<
.
*
be
re¬
.
shaped in such fashion
possible
and
to
as
to make
encourage
this
McMahon Act which would permit
eventuality.
enterprise to make such
I
have
great; faith that the
further progress in'. this develop-:
United States will win the atomic
ment program as appears possible
power race and complete confi¬
over the
near term;
H does not
dence, that the electric power in¬
now
advocate .that the- doors be
dustry will CmakeJ an - important
opened so wide as to accommodate contribution toward this
private
Today, the company has offices in five cities, a
total staff of 152, a broad advertising and public
relations
business
almost
equally divided be¬
&
stage
commercial
work
nuclear
of
from
anniversary of its founding in 1903 in New York.
(seated left) Walter H.
Burnham, Vice-Chairman, and William H. Long,
Jr. Chairman (seated right); standing are Louis
W. Munro, President (left) and George A. Erickson, Executive Vice-President (right).
Doremus
economic
development
the latest ad campaign of Dore¬
Looking
mus
further
at
conventional plants.
foot¬
a
competition
improving the
power,
I
atomic
of
expect
great
years,
efforts
by
electricity may be produced
economically from nuclear reac¬
tors. Over the near-term, or until
extended
many
direct
which
efficiency of conventional steamgreat
are
indirect, long-term or shortterm, they should provide suffi¬
cient incentive to encourage elec¬
tric utility companies and others
or
electric stations
over a
many
technology.
power
Whether these benefits
tech¬
as
considerations, renewed at¬
be
appear to
benefits that this country can de¬
rive from development of a prac¬
would
activities
^observations
my
progress is made in
tion
to
as
be summarized under
may
These
for
respect to
Conclusion
believe
by pilot plant
construction, by small-scale ex¬
periments or simply on paper.
power,
legislation;
patent
recommendations
_
I
to
Many
avenues
with
would look for other industries
of
important
were encountered, and
that these opened entirely new
fields for engineering study and
operating procedure. It is note¬
worthy that the difficulties to
-
19
(1847)
'
victory.
•
In -general, jng experience came after the war early social life* in Chicago was
materials have de- encjed. Wage regulation was abol- gained through' her ' association *
clined. Wholesale prices of manujshed, but price control was con- with Mr; and Mrs. William Blair.
factured products have been com- tinued.
Miss Clark also has to her credit
As
a
result,
industrial
paratively stable.. Prices to. the ^conyersion'.^ iagged. - Shortages, "A-. Victorian*, y Keepsake," Nine-:
consumer have continued to rise,;
persisted. Paralyzing strikes tied teenth Century Prose and Poetry,
two
years
prices of,
In
or
more.'
raw
other
words,- products t em-; Up-industry after industry. It belarge'! elements - of labor came more and more difficult to
cost have shown increasing price, holdprices within- bounds. Black
ous leaders
Our industry favor; c PauI - V. Miller
Joins:. V; spreads as compared with commarkets became general. Finally
revision of the Act with a view
modities
at <> farms," mines
and ;the hopeles task was' given up,
toward provid id g a n arrangement: v:;;: Reynolds; in Chicago r
factories—that is, at earlier stages and
for licensing electric poweir^com^ -.-••v (SpeeM to-Tar Financial Chronicle) '* <?
price
control
ended. - The
of the productive and distributive
.Shortages vanishech «
panies and others to proeoed
r : -;r* re¬
CHICAGO; IB.—PauL V. Miller
all things to come as the program
ahead. Specifically, numer¬
collected by her. Also,- she
bodying
moves
author of
a:
is co- '
play, entitled "Tort of
Chicago." At "the annual dinner of;
the Friends: of Literature in April,:
-
1946, Miss Clark: received one
■
ofS*
Con¬
Literature.!'?»r' "> - > ;
:; The President of-the organziathe awards for "Outstanding
tributions, ta
■;,
the development of
associated with' Rey- process.
•; '-Rent
control remained,: how4
tion, Miss Joan Richardson, of
In the .thinking of the *'new?'
generation from ^atomic; energy? noUs--&.'Cto£ 39'South La Salle
:«ver;and the-housing shortage
Glore, Forgan & Co., will preside
and devising arrangements for the Street * Mc Miller was previously economists, ^the emphasis: is: pricontinued. Private enterprise was
at the meeting. :\
ownership and disposal of fission- with J. R. Willistonr Bruce & Co. marily upon wages asa source of not interested in risking capital in
able materials, and facilities for and Dean Witter & Go; in Seattle! buying power—which, of course, vrent.controlled dwellings. So the
the
^
production of fissionable
terials,
,
by
electric
power
they
ma-
com-
panies and others. Pending sueh
Two With Walston Co.
(Special
LOS
to The Financial
Chronicle)
are,
says
"Survey." "To the Government went into the hous-
who make business de- ing business
cisions and create jobs, however, '
managers
wages. are
amount
primanly
oL
costs.
Jarge scale,
"Artificially easy money during
No ^ after the war was another in-;
on
With Shearson,
a
Hammill
-(Special-- to The Financial
Chronicle)
--
;
'
LOS
D.
ANGELES,
Calif. —Hugh
Purcell has become
associated;
purchasing power can stance
0frigidity. Higher interest with Shearson, Hammill & Co.,
and
Energy. Commission
^ould have been/costly to 520 South. Grand-Avenue. He was
have become affiliated, with Wal-, ployment so long as cost-price reth
to private industry to participate'
Federal Treasury. :To;avoid formerly
with" J.- R. Williston,
ston &
•
jr;
; South .Spring. lationships rnake.the maipten.ance
with them in the construction and
Bruce* & Co: and Adams-Fastnow
Street. Mr. Turner was previously or expansion of business opera- ^is inconvenience,- rat
Hioperation of a new atomic energy with J. R. Williston, Bruce & Co. tions unprofitable. '
'
held down. The result
is the Co.
changes, the recent invitation-by
the"
Atomic
ANGELES/Calif —George
Shulman
..
and
-
Milo.
M.*
Turner
give
rise
to production
.
,
20
The Commercial and Financial Chronicle
(1848)
Thursday, November 12, 195$
...
♦''
also
This
of
Congress and
iamous
caid
of
that
the
it
is
of the most
one
his
of
orators
day, once
Republic
American
like
which,
added,
lie
""would
emphasis
This
never
feet
are
only
^ater."
com-
this
Porting
thought as one
foreign policy
crisis
it
wet
gets
us
Alexander Wiley
almost to
see
through
us
rugged
many
storms.
I
am
■sick
sure
of
a
you
crisis
new
worked that the
heartily
in
every
American
people
practically crisis-proof.
Actually, we do not have
•other
day of
have
we
of" the
day,
or
every
new
every
week.
old
same
crisis
What
aspects
that
we
liave been living with for several
years. And it is just as well that
have
we
cause
gotten
we
used
going
are
live with it for
it,
to
time to
some
be¬
have
to
to
live
we
but in
an
the
not
in
in
moment,
a
We
of
can
perspec¬
how
see
pattern, and
important—we
more
that pattern
Only
the
day-
—
can
what
is
how
see
changes from time to
but
to
and
have
Western
we
done
Europe
in
Soviet
could
relatively
the free
the
Today the strength
point where
enterprise
the
over-run
nations has
there would
the
of
aggression i'n
time* if they
short
chose to do so.
be¬
admitted
forces
surprise
a
was
Europe
generally
armed
Union
by
area
Western
was
the
a
be
a
which
to
«rown
In
attack is
the
this
major military
would
surprise
longer possible. And
no
threat of
sion
sense
dimmer
grows
a
successful aggres¬
a
with
each
passing day.
New,
Difficult
So
in
we
come
which
we
look
can
ahead
to
completion of this buildup of
strength and some of the new
problems which that fact in itself
will create for
In many ways,
us.
the pattern of the
situation has changed
these problems will be more chal¬
have just come through.
Gruenther, then Chief of Staff
enough recently to require new
emphasis in our policies.
Let's
and
examine the nature of that change
«nd how it came about.
Treaty
Organization's
military
headquarters in Europe—warned
The
free
world
to
the
threat
up
imperialism
began to wake
in
of
Communist
1947
when
confronted
with
the
possibility
that
aggression
in
succeed
immi¬
Greece
and
Turkey.
In the United States a
Democratic President and a Re¬
publican
Congress
dramatic action.
key
prompt,
Greece and Tur¬
saved,
were
started
took
and
had
we
the
long, painful process
at least a part of
the strength which we
dissipated
of
rebuilding
the end of World War II.'
fit
The
world
situation
was
then
dominated, and continued to be
far, a number of years, by the
frightening
imbalance
in
the
strength of the free world as op1 used to the strength of the Soviet
Hoc. In such a situation, the need
far
us
to rebuild
wr.s
so
was
little
do
our
or
strength
that there
opportunity to
anything else.
yA
the
Ninth
Annual
Finance
Cuy, October 27,
Relations
by
North
Atlantic
he told the Foreign
Committee:
"I think
Senator
Convention
Industry,
Wiley
of
the
tary
facing
we are
a
don't
like
to
pe¬
look
is
wall,
for
there
us
that
to
only
was
do, and
and
we
we
thing
one
did it.
allies
our
the
to
Now
in
are
a
stronger position, we have more
options open to us. We are deal¬
ing less with the specifics of mili¬
tary strength
intangibles
of
paradoxically
the
and
with
diplomacy.
a
time
same
more
happier
a
more
the
It
is
and
at
The
basic
caused
by
economic
military
as
indicated,
our
approach
General
is
that
is
that
not
backed
by
sound
a
These hard facts
to
seem
me
to
leave
only one thing for us to
do, and that is to raise the eco¬
nomic ceiling.
If the free world
puts its shoulder to the wheel to
increase production we should be
to
the
efforts
not
only
of
the
total
imports' last7'year
than $23 billion—about
of our gross national product.
a small percentage, but a
critical
to
If
one.
nickel
port
not
instruments
could
we
chrome,
or
make such
things
food
or
not im¬
could
we
surgical
processing
as
-
equipment. If we could not im¬
port cobalt, we could not make
things as enamels, inks, lin¬
oleum, or paints.
If we could
not
import industrial diamonds,
of
such
nec¬
could
not
make
cutting tools.
import asbestos,
we
could still make steam pipe
insulation out of glass fiber—but
we
to
If
could
we
not
it would be five or six times more
expensive.
To
to
their
rearrange
to
or
take
economic
foreign
other
make
the
This
greater repercussions
on
allies than it has
- our
on
some
have only two in
we
the United Statefe
molybdenum
—
1
and vanadium.
has
On the other hand, for many of
most
important
mass-pro¬
of
our
They
us.
for such things
lite. Of these
trade
compensatory
measures.
used
steels
duction
industries
well
as
for
have deprived themselves of mar¬
kets in the Soviet bloc. The more
many
difficult
the difference between profit and
it
is
them
for
find
to
of
our
as
farmers, exportsmean
although the exports them¬
may be only a small frac¬
tion of total output. On a nation¬
loss,
other markets, the greater will be
able to have both more guns and' the
economic need for them to
more butter—a better defense and
trade
selves
at the
wide
again
time, a higher stand¬
living.
That was the great achievement
the Marshall Plan; for without
increase in total production
of
the
the
which
Marshall
Plan
made
possible in Western Europe, those
countries could
the
taken
defense
effort
them
to
the
continue
this
ef¬
assistance
And
some
must also be found to enable
United
tain its
States
own
itself
main¬
to
defense effort without
pushing tax rates beyond the point
of
diminishing returns.
This
is
matter
a
the
of
dollars
and
attractiveness
trade.
tactics
there
and
field
of
perhaps
international
our
tions which
is
is
The
the
Just this kind of review is
by
progress
pointed
Commission
Economic
Policy,
now
specially-ap¬
a
Foreign
is com¬
on
which
posed of some very able and emi¬
nent men,
of
my
including two members
Foreign
own
do
I
not
Relations
know
what
this Commission's conclusions and
recommendations will be, but I do
that they will be carefully
know
thought
out
and
worthy
the
of
I
to
serious
am
give
not
consideration
myself
you
most
trade
United
the
this problem.
I
to
try
to
going
am
define
to
try
answer
to
merely going
precisely
questions which must
be answered and thereby to stim¬
ulate your own thinking.
some
The
are
more
of the
to
answers
not
going to
these
come
questions
from
any
single individual or group. They
are
going to emerge only from
widespread, informed public dis¬
cussion.
Our
economic
on
of
public agreement we
to get.
Now, obviously,
be
for any
able
to
policy
please
we
policy
the largest
their
unity
of
the
bloc
Selling
and
make
and
—
cans—to
a
of
more
United
to
the
problem
for
up
many
of
States
economically
a
Thus
these
go
more
than
politically.
or
it
foreign trade is important
United States, and it is
to most of the other
the
to
Ameri¬
how to
clear: The
it alone
cannot
any
militarily
can
answer
of
most
to
serious blow.
implication is
very
The
the
important
countries
diminishing Ameri¬
ducted.
assistance.
which
with
The
it
is
of
economies
con¬
many
).
We
We
creditor.
War
$40
the
are
nation.
II,
world's
countries,
wealthiest
also
are
its
have sent
ent
product—such
oil—and the
market for this product is often
largely
in
the
United
States.
Consequently, a relatively small
decline in industrial activity here
billion abroad in the form of
gifts
simply
other
nations
dollar
resources
they
needed.
end
an
still
find
to
We
because
not
the
have
buy the things
our
by
are
nomic
process,
able
imports
exceed
a
powerful
the
is
United
the
best
the
to
as
United
States
to
usually revolved
around the tariff.
There
who,
not
that
in
they
if
vocate
free
do
trade,
solution
the
those
are
openly ad¬
at least argue
is
to
be
found
drastically reduced tariffs, and
we
should
permit—indeed,
that
encourage
at¬
the
States
reason¬
The Tariff Question
Treasury.
so
for
facts,
of
and do, draw dif¬
The debate has
our
workers—don't get paid or we all
foot the bill through the U. S.
of
eco¬
repercussions
follow.
by
Indeed,
set
may,
conclusions
course
these great amounts
either our exporting people—in¬
cluding
farmers
and
industrial
traction
men
ferent
residents, shipping, and in¬
surance, do something—but by no
means enough—to close that gap.
exports
social
this
From
about
S.
our
disproportionate
and
abroad.
$400 mil¬
lion a month.
Invisible imports,
chiefly in the form of tourist ex¬
penditures, dollar remittances by
U.
single
a
have
may
coming to
but we
exports exceeding
that
of
imports
our
did
upon
sugar, bananas, or
as
than
more
especially some of the
are largely depend¬
smaller ones,
biggest
Since the end of World
we
outright
flow
as
of
—
the greatest possible
imports
into
the
United
States.
market that that alone threatens
to
cause
economic distortions.
American
dollar
is
the
There
The
much
ments
in
we
are
so
that
many
tempted
their
pursuit
of
to
that,
neglect
can
foreign exchange
of the
,
The
United
States
has
a
more
immediate interest at stake, how¬
ever.
We are the world's most
maintain
present
level
to
an
extent
in
industry impossible.
to disagree with both
these points of view and to sug¬
I
dollar.
Our Stake in Foreign Trade
others who
effect, would make for¬
eign competition with any Ameri¬
govern¬
will
sources
are
that tariffs should be raised above
most
sought after currency in the world
able
doubtedly affect some people ad¬
versely.
We must take as our
cotton
For
good
they have sold abroad
fairly large percentage of their
total
production.
For them the
loss of foreign markets would be
most
is
obvious
to
occurs
countries
are
un¬
prosperity
and
wheat
our
mean
jobs and
a
nations,
and
source
Soviet
States.
which
other
everyone,
Take
farmers for example.
United States is also the most
area
follow will
■'
Market
a
free
alternative
attractive
—so
foreign
as
the
conspicuous
to
When
final
a
by all
the
up
States
of
most
desirable
rela¬
greater need of
review
than
these
economic aspects of foreign policy.
in
United
For
no
in
break
to
exports
between
bread-lines,
between
and depression.
East-West
of
just another of
these
basis,
difference
many years
can
cents,
is
It
the
the free world.
which
are
way
Soviets.
Recognizing this,
the Soviets
are doing all they can to enhance
have under¬
never
making today.
Some
must be found, however, to
they
the
with
same
of
ard
not
ceilings which limit the
coun¬
Our
That is
for the free nations to take
with, steps
fact.
a
and
were more
This
course,
essary
economy is not much of an army,
no matter how big it is.
must be based
problem,
result, of
is
special
as jet
engines, machine tools, and con¬
must
remember that a
defense
These economic dislocations re¬ struction
work, we need sevens
program which fails to take into sulting from the cold war make types of materials—chrome, nickel,
account
our
total
economic
re-' it
cobalt,
tungsten,
necessary
for many—perhaps molybdenum,
sources is self defeating.
An army ; most—nations of the free world vanadium, and columbium - tanta-
difficult
position to be in.
bloc.
low-import
a
as
it
exports
world's
free
us
but
7%
come " as
a
of the people who
some
think of
try,
Tmay
That
shock to
no
get
were
porter.
we
beginning to develop
backs
direct
the
Soviet
its satellites which has made it
the American people.
our
the
the
;
same
time the world's greatest exporter
and also the world's greatest, im¬
time for us to weaken; a lesser degree, because they have
begin to see results.3 We : lesser resources available, the So¬
need to keep our own defenses-) viets have taken steps to interdict
in shape.
But in doing so, we; free world access to similar goods.
It
when
most
closer to the economic ceilings."
is
with
•
The United States is at the
deny the Soviet access
strength enough to defend them-; to'., goods which .would increase
selves.
Communist military strength. To
the
as you
in
reduction
They
nations
see
are
When
tion.
Another new factor is the dras¬
tic
produc¬
of supply and also on for¬
outlets for important,/ but
marginal amounts of our produc¬
the gap that will leave.
up
mili¬
European
being filled.
vacuum
way
of
eign
Trade
some
costs
highest wage levels.
sources
to ", the threat of the Soviet Union and
worried
are
Western
of being the
hardest, were
easiest, because the strains
New York
1953.
the
Committee.
riod now where we will
back and say the first two
years
of SHAPE'S
existence, instead
Gruenther
delivered
paper
Cc nmercial
the
I have no doubt
Russians
the
that
own
overwhelming
time
—
this when
of
>
were
would
SHAPE
we
nent
Supreme Commander at
now
moving,
are
hard-headed
long ago as last April, that
farsighted man, General Alfred
M.
at work,
from the United States.
As
think that
world
trade
lines
way
period
a
the
we
Changes in World Situation
tion
fense
enough.
yet
are
fort without permanent
Problems
to
now
World
Our allies must find
equipment is coming off the
but
tools
see
military equip¬
Ma¬
produc¬
and de¬
not
ment,
enable
More
in
Factors
New
make
chine
Russian attack
require
months of planning on their part
and extensive regrouping of their
forces.
belongs primarily to the American
producer.
event.
of its own needed
another way.
two ago fear
or
year
it
that
that
lenging than those of the period
time.
I
a
rampant
can
we
American
by-day developments fit into the
over-all
not
Ahead
that.light,
problems
foreign policy in better
tive.
Korea,
allies
in
of crisis.
age
Viewed
put
in
put
me
come.
As President Eisenhower has well
«aid,
Let
of
new
a
even
simply
are
aggression,
NATO
peaceably
a
are
every
allies
The United Nations did
our
cause
all
are
edition of your newspaper. So am
I.
The word has been so over¬
crisis
the
sor.
the knees—to know that the fun¬
damental strength of this country
will
its
of
strong enough to defeat all-out
aggression, are at least strong
enough to make it an extremely
dangerous gamble for an aggres¬
over
lis—and some¬
times
been
simply by creating forces which,
though they are not themselves
after
another
washes
and
forcibly
and
has
demonstrated
willingness
resist
to
defeat it.
a
the
States
mili¬
our
ago.
years
assembly lines.
situation
and
new
part.
our
by
United
tactics and
new
new
ability
-elways in the
It is
on
created
«ink, but then
:your
world, and that situa¬
tion calls for
raft,
0
yet strong enough,
but we have made enough prog¬
ress to bring about a new situa¬
tion in the
two
lowest
and the
In
the course of achieving this
happy
state,
we
have
become
critically dependent on foreign
the
the
But we have'
One of these factors I have al¬
by no means done the whole job,
and there is certainly nothing to ready mentioned—the slow-down
and
coming end of large-scale
justify complacency.
Europe is now producing much United States foreign assistance.
few
a
not
are
forget
that
market
of
all
is
never
the
tion
we
American market and that market
with
us
time
ceiling and in so doing
There are new factors in world
security risks; or
Two, we can raise the economic trade patterns today which can¬
not be ignored. These factors are
ceiling.
'
Now, it is true that we have both economic and political, but
come a long way toward correct¬
they are so closely interwoven
ing
the
awful
weakness
with that it is difficult to separate them
which we faced the Soviets only —and unnecessary to do so in any
policy must be based on largest area of public agree¬
able to get, and its principle should be "the great¬
est good to the greatest number." Sees new factors in world
trade, among which is permitting free nations to sell more in
the American market. Stresses our growing dependence on
foreign sources of raw materials, and calls for a greater degree
of stability in foreign trade policies of ourselves and allies.
We
should
At the
economically efficient nation,
with
certain
run
are
early member
departure
of
greatest
restrict
can
we
same
economic
economic
an
Military
tary buildup to keep it below the
Foreign Relations
Senator Wiley discusses recent changes in world situation, and
the new and more difficult problems ahead. Says our foreign
Fisher Ames,
confronts
One,
U. S. Senator from Wisconsin
we
our
.
choices:
By HON. ALEXANDER WILEY*
ment
of
Dilemma
Free World's Economic Ills
on
-
the principle
for the great¬
est number.
but
States
allies.
Our Economic and
Chairman, Senate Committee
point
of the greatest good
United
Multilateral Trade Will Cue
gest
venture
that
the
wisest
course
somewhere
in
believe the
United States
between.
ford to become either
a
I
lies
do
not
can
af¬
free trade
,
Volume 178
Number 5272
The Commercial and Financial Chronicle
...
(1849)
V
nation
or
nation.
all-out
an
protectionist
Our system of farm price
to
supports, which maintain domestic
prices above world prices for ag¬
ricultural
vents
On
products,
the
have
alone
other
said
The
pre¬
gift
from
his
the
the
very
often
so
high-cost
inefficient producer from all pos¬
sible
competition.
That
would
of
foreign relations but also
our
of
our
and
much.
American
own
not
I
think
it
point to confine
foreign
is
missing
policy
importance
The
has
been
the
to
the'
the
and
also
blame
by
the
000
Europe
would .only
experience
in which
the
road
the
imagination
them
tariff
walls
and
forget
of
Every
who
American
one
be
world is at stake.
fore, push
have
we
and
If
&
knows
wants
part
consumer's
that
the
of
dollar
has
ican brand of competition is
thing which
good
a
businessmen
foreign
many
tend
to
some¬
shy
away
ularly
Plan,
Tariff Administration
policy that
bold, but at
a
will do that I
we
shall reach
remembered
overlooked
in
rates.
the
controversy
The
by
spun
often
are
One is the
administration.
tape
need to be
which
but
method
web
of
red
of
customs
our
There
of
traiff
themselves.
rates
In the last session of Congress, we
passed the Customs Simplification
Act; and although it has not been
in effect long enough to assess its
results, I
in
tion
a
the
around
the
thing
tariff
that
is
it
is fre¬
tariffs
I
ning.
You
large
of patient effort
years
required to build
ket
It
area.
too
up
which
a
for
bogged
ting
old arguments
People
about
new
concept
genius of
that
in
government
Similarly,
they
difficulty
what
have
face
to
be
on
their export
if both
bring
policies.
We
are
tend
the United
free
more
al¬
foreign
these
trade
policies,
it
must be multilateral
to succeed.
to
think
trade
of
our
greater degree
our
And
to me,
they
terms
to
and
we
a
too
and
States
world.
If
much
the rest
we
in
between
of
thought
acceptable
find
more
courses
of
generally
action—and
absorb
a
only
across
of
is
an
not
so
to
is
concern
themselves
of
nation—not
rich and
concept
powerful
even
trade
problems.
of
found
it
the
necessary
for military
to
to
It
has
trade
not
is
a
join
been
nec¬
ceilings
of
only
but
two-way street.
to
living.
said
two-way street.
said
talk"
was
minimum, the present
that
Trade
It
is
a
Board
of
de¬
dollars
of
equity financing will
by American industry
in
workers
order
to
as
of:
the
The
Dofflemyre
Financial Chronicle)
LOS
C;
ANGELES, Calif.—Thomas
Donoahue
is
with
Marache,
Dofflemyre
&
634
Co.,
South
Spring Street, members of the Los
Angeles
Stock
number
of
(4)
Increasing the total Federal
tax receipts from capital gains.
Helping to balance the Fed¬
eral budget.
The text of the resolution of the
Directors of the Arizona
Association
of Security! Dealers
follows:
Resolution Adopted by
The
Opens
Financial
Directors
of
of
Association of
budget.
it
Be
further resolved that
the
urge
correct
(1)
following
we
changes
to
inequities:
Give all investors the relief
recently
home
granted
owners,
permitting reinvestment within
definite
without
period
a
lia¬
tax
bility.
Permit offset of
(2)
much
as
as
$5>000 of net capital losses against
ordinary income, each year for as
six
as
(3)
years.
individuals
Give
on
from
which
a
tax
income
dividend
credit
ceived
re¬
corporation earnings
Federal
taxes
have
al¬
ready been paid.
Adopted unanimously this 28th
of October, 1953.
day
DAHLBERG,!
HENRY E.
President
Randolph E. Soranson,
Secretary
Phoenix,
ers,
Culler, Plummer &
Bennett Formed in NY
Arizona
the
Ariz.,
Oct.
28,
1953
will be formed
York
new
in
value
all
of
invest¬
ter,
and
Frank
a
tax
of
as
in
increase
vestment
sold
much
value
26%
as
of
any
six
after
of
in¬
months,
in
investors
tal
left
amount
another
and
for
by
reinvestment
business
reduces
the
available
to
capital
reducing
or
property
amount of
finance
capi¬
industry,
and
S.
Plummer and
A.
Bennett.
Cutter
Mr.
were
and
formerly
Cutter
C.
F.
Plummer
Mr.
in
partners
Cut¬
additional
private
dollars
equity fi¬
capital
gains
taxes
in
1950
had
was
with
and Harvey
for many years
Childs
&
Co.,
establishing his
Fisk & Sons,
ov/n
Plummer
Mr.
1940.
business
in
who had
been associated with
C.
Langley
with
and
Whereas, American industry
of
James
Jr.,
the
Cut¬
ter & Plummer. Prior thereto Mr.
Whereas, this taxing of
the
of
firm will be George H.
ments sold in less than six months
the
New-
public
and
Partners
bonds.
revenue
increase
Street,
conduct a general
business specializing
to
municipal
state,
the taxpayer's full tax rate on the
Bennett
of Nov. 16, with
as
Broad
30
at
City,
investment
in
&
Plummer
Cutter,
offices
Chronicle)
Harris, Upham & Co.
of
Helping to balance the Fed¬
eral
Security Deal¬
.
with
.
..
number
(4) Increasing the total Federal
receipts from capital gains. \
the Board
nancing in the next few years to
provide more equipment and em¬
LOS ANGELES, Calif.—Donald ployment
for more workers in
P. Newell has opened offices at order to keep pace with the nor¬
317 North Kings Road to engage mal
population
growth of the
in
a
securities
business.
Mr. country, and
Newell for a number of years was
Whereas, 42% of those paying
to
;
the
Board of
Exchange.
D. P. Newell
industry and real estate.
(5)
will need many billions of
(Special
*
taxable sales.
on
Increasing
26%)
present
of
Increasing
long
Encouraging sales for rein¬
penalizes
to
(3)
Encouraging investments in
Joins Marache,
(Special
of
Encouraging sales for rein¬
(5)
to Congress
of the Treas¬
and
forces
not
defenses
standards
often
a
is it
so
to
economic
their
their
na¬
have
"alarmist
He
it resolved
of Directors
vestment.
Treasury."
with the normal popugrowth of the country."
the national economy.
.
to join forces
threatening
weaken
lower
is
the
are
the
as
world
defense,
them
for
raise
which
Just
free
a
making."
he
Association
tax
that
period of readjustment would run
its course without grave danger to
the United
as
if
kept to
get
one
such
States—can solve the free world's
tions
the
in
(2)
revenue
Whereas, the present Capital
itself into
Gains provisions of the Federal
a
depression which, except for
tax laws require the payment of
that
psychological
factor,
"just
wasn't
the
transactions
Encouraging investments in
American
result
the country might talk
un¬
increase
Board
(from the
means
(1)
taxable sales.
that,
warned that there was danger
tax
Federal Treas¬
Arizona
13%
a
pace
(3)
The St. Louis railroad executive
to our allies—the concept
expanding economy which
afraid of over-production
one
slackening of pace." He
to
of
number
vestment.
in his considered opin¬
"nowhere does the future
appear brighter."
seen
somehow
solid
"its
continuing
that
kind
must
we
ever
capital
would
and
Association
means
ion,
score.
the
is
has
is
serious
said
a
econ¬
only of under-consumption.:
No
a
a
people who
the most efficient
world
this
This
fear
in¬
for
territory served by his rail¬
road
afraid
enough
this
even
essential
the picture
the
growth and development without
production and distri¬
of
which
be
to
sense
that
are
the
message
more
(2)
Mr. Fraser said that the South¬
west
need
no
this
to a close,"
but added, "I
said,
in
major slump."
marvelous absorptive
the
in terms of reciprocal trade,
might
to
before
the
the
we,
the
to
provide
equipment and employment
(1)
comes
feel
period
holding
that "billions
lation
v> Fraser
others
of
as
American industry and real estate.
be
gredients
shorter
and
They described their proposal
D
longrate to
overall increase
an
to
the
and
Di¬
of
the next few years to
for
phase
Fraser
don't
Surely
system
essary
simply
Mr.
timid
The American
a
capacity.
but
lies could
seems
has
on
they
the
There is
have developed
great boon to all
a
concerned
stability
But
one.
duly
products abroad.
It would
it.
use
making
restrictions
current
dy¬
of having too much;
having
not
they will have to face at home—
just
not
need
plans if they are uncertain
just what competitive imports
there
and
rate
Secretary
the
keep
begin-
will
economy
and
markets
of
need
is
business¬
in
fearful
afraid
there
their
of
expanding
bution
American
have
men
which
American
is
outlet.
no
the
more
ningofamajor
productive capacity for
there appeared in advance
new
be
voice.
enough
of creat¬
which
omy
no
means
the
pearance
possibility that they may be de¬
prived of the fruits of their suc¬
a
and
the
remote
have
think
not
the
as.
been confounded by the ap¬
be
action
in
slump. "It is true that there aremarkets.
This static readjustments underway in many
is
fatal.
The
peculiar fields of business activity, and
it
how
their
needed
be
a
All
Board
transactions
misinterpreted
History is full of examples
take this effort in the face of the
sudden, unilateral
do
ways
of
by
for
More
that few foreign
businessmen are willing to under¬
cess
.
be
not
Dahlberg
long-term
rate
to
13%
.additional
.
should
E.
overall increase in
an
clared
in many areas
Means
in
therefore
Now,
increase
economy
Growth
gains
taxable
result
the holding
maximum
greatly
of
revenue
that
Henry
by
tax
In
of the nation's
•Economic
paid
ury;
to the Federal
f
current
down in the same
which rarely settle
anything.
to
surprising
in
readjustments
of
the
be
months
the
would
and
the
greatly
stated
get¬
solutions instead
13%
indicate s," the
declare, "that the reduc¬
taxable
Kansas-Texas
our
this problem and look
on
new
to
be
and
we
meeting of the
Missouri-
that
bear
are
should really not
both
gains
and
o
three
of
capital
number
maximum
ury,
The
that
the
f
President
of
term
lower
a
of
Fraser,
V.
in¬
and
movement
to
reduction
three months and the reduction of
City, which
Donald
to
mar¬
new
tion
in
eight
in
Lines,
have
the
City
years,
in
cut
items,
free
the
25%
a
first
the reduction of
period
"Experience
a
York?
New
agricultural
some
certain
on
hope
of
with
of
the
held
be
would
and
revenues,
•
that
holding period.
Katy Railroad's board of directors
to
which
on
tax
Whereas, experience indicates
Association's
would
.
luncheon of busi¬
a
tax
unan¬
dealers
in New York
followed
Arab
allies will bring more imagination
inhibits
feres
the
recently
and Payments
making
creasing
capital.
namic.
inter¬
sound business plan¬
are all familiar with
investment
and
the
Speaking at
nessmen
Middle
has
Customs
products,
possibility that they will
be changed at any moment which
and
-
depression.
not only
the
example,
movement
is
trade
In
Council
a
but
foreign
world.
for
quently not the rates themselves,
the
Kansas
-
of nation talking itself into
ger
but in Latin America,
East and other parts of
free
ing
remember
to
Missouri
Texas Lines holds there is dan¬
Agreement providing for the free
up
form
Regulations.
Another
the
thrown
in
borders
our
Customs
about
had
we
of
sales
gains
Security Dealers, recommend to
rectors, at a special meeting in Congress and the Secretary of the
Phoenix, on Oct. 28, the invest¬ Treasury that the capital gains
period
be
reduced
to
ment men declared that the pres-' holding
three months (from the present
ent "Capital Gains" rate discour¬
six months)
and the maximum
ages sales of assets and brings in
less
Federal
tax
revenue
than capital gains tax rate be reduced
the
President
na¬
further steps that can
are
Far
hopeful that it will
large part of the paper
curtain which
in¬
six
Whereas, the present six months
in
adopted
per
holding period and high tax rate
of
imously
men
Europe
am
eliminate
of
markets
be taken along this line,
laws
frequently has acted as a greater
barrier to imports than the actual
level
struggle to keep
$5,000
and thus result in reduced Federal
resolu-
a
than
less
of
and
Arizona
In
ultimate des¬
our
incomes
year,
capital
statewide
confident
am
-
discourage
association.
Major Slump,
Says Donald V. Fraser
brings
steel
and
the
and
dent of the
No
Schuman
tions.
signed
about the tariff which
coal
and
League
however, two points
are,
the
as
organization
the
dustries
East,
and
Stability
over
this
together
the
from.
There
inte¬
the
European Coal
Community. More pop¬
known
Congress
cording to
Henry Dalhberg, Presi¬
tination and win the second phase
of
and Steel
those
Gains
Security
Dealers, ac¬
time realistic and wise.
same
we
the
revenues
Treasury
the Board
Association
We must, there¬
is, courageous
toward
to
tax
Capital
the recommenda¬
was
made
the
the survival—of the free
yes even
the
lishment
American
than
fight for it against some pretty
tough competition. And the Amer¬
the
the
not
gration of this market which has
to
of
the
by
reached its highest point in estab¬
that
lower
are
businessman
anybody
will
will
with
movement
the
lower.
was
Secretary of
be.
on
lack
own
countries.
many
or
tion
travelled, it will be rough
hilly and full of detours. But
the strength and the stability—
160,000,-
enterprise.
tariff but their
not
is
out
That
one
free.
out
reducing
Tax."
and
the
keeping
Let's
by
"Increase Federal
by
some
just
free
of the great
not
of
if rate
will have to
ahead
Like
smooth.
have.
American
them
Directors, stating that present capital gains levy discourages
of assets, and therefore brings in less revenue than
of Directors of
The
boundary lines, they would enjoy
many
of the benefits we now
some
make
fair trade is
freer flow of goods across national
the
Urge Lower Capital Gains Tax
sales
friends.
our
to
we
a
all
will
we
of
•
everybody benefits, and
we have of it, the better
more
off
and
But
opments of recent years has been
keeping
of
of
upon
have
One of the most hopeful devel¬
for
actually
we
will
21
t
rr-
Henry Dahlberg, President of Arizona Association of Security
Dealers, calls attention to resolution of the Association's Board
of
one
prepared not only
minded nations in
-
concessions,
profit from
permit the
and
Arizona Dealers
be
like
get some.
too
countries
is
^ * y
.#> v
the
ways in which
done, and the United
American market when what
the
if
the
If
for
many
be
urging it
We
has
a
road
follow
to
of
tariff
of
within
are
can
join
in
United
States
serving
area
people.
our
over-emphasized
protectionists—and
is
to
are
point
United
functions
market
of
by both the free-traders
nations who
system
-
discussion of:
our
economic
tariff.
tariff
this
stress
or
doing it but also to take the lead
strong economically, large¬
because our free enterprise
ly
consumers
the free enterprise system.
But
There
blocked currencies.
The
world
this
grown
detriment
eight
even
economic
States must
quotas
of their
inventions
as
can't
I
only
the
or
increasing multilateral trade.
tariffs and
as
few
a
such
own,
in
criticized
—plus
that
things
same
ligated to protect
the
Eu¬
largely un¬
developed in the past because the
countries involved have practiced
States—such
to
Western
of
free
example, together con¬
potential market at least
a
he must himself take
steps to se¬
cure it.
Certainly we are not ob¬
work
Do
This market has been
government:
every
Can
four
or
ten-way street.
equal to that of the United States.
market
belongs
pri¬
marily to the American producer,
he
cannot
reasonably expect it
a
three
closer
problem.
Nations
countries
stitute
American
as
getting
the
of
Other
for
rope,
that
be
also
heart
The
hand, although I
frequently
the
What
free trade policy.
a
would
we
*
'
i
15
F.
Co.
J.
Young
joined
years,
for
&
Mr.
12
ye
Co.
&
Cutter
v/.
rs
for
in
1949.
Mr.
Childs
Bennett
&
poration
Co.
He
was
with
Co., First Boston
and
Gertler,
formed
Johnson in
C.
Devlet
Bennett
F.
Cor¬
Bros.
&
&
1934, Brown, Bennett
& Johnson in 1940,
nett & Co. in 1948.
and F. S. Ben¬
22
The Commercial and Financial Chronicle...
(1850)
The
approval
was
issued in
The
con¬
First National Bank of
nection with the merger of Marine
Company
REVISED
into
Bankers
and
ETC.
OFFICERS,
ton, Missouri
Marine
hamton,
Trust
CONSOLIDATIONS
NEW BRANCHES
NEW
The
Midland Trust Company of Bing-
News About Banks
Company,
Elmira
if
Deputy
former
Warren,
of
tees
bank
the
.
Stott, Assistant Vice-President years, held its annual reunion
James E. Gallagher, Assistant dinner on Nov. 10 at the Waldorfr
T.
bank,
stock
new
and
state
a
chartered in Texas
were
dispatch
cording
to
a
on
Nov.
The
The
Merchants National Bank & Trust
♦
*
ac¬
from
the
to
5
"New
capital
National
Park
fromi $3,000,000
stock
to
effective October 26,
of
the
increase
was
about by sale of new
$3y500,000
$375,000
brought
stock
MacGregor
National Bank
Boise, Idaho increased its common
if
bank
York Times."
>,
t-
r
)
;
"
*
and
$125,000
by
stock
a
dividend.
*
♦
♦
>,
Bank will have
,
i dei?nan
A. Sun-
York,
New
; Nov.
6
Company,
announced ; on
C. Flanigan,
was
l President. Both
Mr.
ated
with
1939.
In
Sunderman
Mr.
who
ap¬
was
of
man
in¬
members of the club
are
clude J. Luther
the
to
came
Senior officials of the bank
1953.
Assistant Treasurer..
as
bank in
he
1949
club
as
F. Petersen.
James J. Mcintosh spoke for the
109 new members inducted during
Trust
Manufacturers
since
succeeded
was
President by Andrew
associ¬
been
has
Creamer
pointed
dinner and
assigned
mean are
ihe Eastern Division.
to
the
the
William
Board;
L.
Kleitz, President; Thomas P. Jer-
1952.
Vice-President; and
man,
Division,
Collection
Foreign
*
*
Assistant Manager of the For¬
-an
stock
John
eign Department at main office.
the
"
*
in
share
*
*
addition to
payable
"dividend
-
10%
a
.
announced
was
5
by
Leichtman, President.
special meeting of stockhold¬
will
ers
vote on
-
on
Nov.
on
Jacob
A
,
stock
18,
to
Nov.\6,
Dec.
stockholders of record
it
bank's
held
be
T.
Emigrant
of
holders
Savings
Industrial
Nov.
on
19,
to
east
third
This
Street.
the
the
would
distributed
dividend
be
stockholders
with
increased
proposed
stock
Ndv.'
on
of
record
a
'to"
Nov.
on
remaining
the
as
24
11,000
shares to be offered to stockhold¬
of
ers
a
record
share.
offered
share
banking
office
on
24
Nov.
Stockholders
at
$45
would
shares in the ratio of
for
five
every
semi-annual
dition to
be
one
with
held,
cash
dividend in ad¬
25% stock dividend to
a
Manhattan, will
ant west side
ing
serve
area
*
large
*
Ohio,
Nov.
on
proposal
the
approved
dinner
*
new
into
approving
as
in¬
to
issued Oct. 23,
was
effective,
making
and
of the close of business Oct. 24,
consolidation
the
1953,
The
of
First National Bank of Columbus,
Columbus, Georgia, with
stock
of
$300,000,
common
and
Merchants
Mechanics Bank of Columbus,
and
Georgia,
with
$200,000.
The
under
stock
common
consolidation
the
First
of "The
of Columbus."
Lincoln
N.
members
were
in¬
of
10. James T.
the
Lee,
will
bank,
sent
a $50
savings bond and
pin to each new member.
pre¬
Y., has completed. 25
charter
National
of
was
and
Bank
-
The occasion
a
brings to 60 the member¬
ship in the club. The new mem¬
John W. Bugsch, Andrew
are:
Weiss,
Milton
Rich,
Anthony
L.
Delionado, Herman Riedrich,
Sam B. Allen, Valentine Hemlin,
David
J.
Schmidt,
Gamache,
Charles
W.
Hugo A. Baessler, John
Danko, August P. Eckel, Fran¬
J.
Scully,
Frank
Peterka,
If. Weiman, Victor U.
Russo, Joseph P. Hospod and
Barbara
John Blazek.
Otto
Strippel,
President
and
bank
holds
more
than
Other
the
49
members
Vice-
Trustee,
Treasurer
club
record
years:
who
of
the
with
into Chicago Title
Company.
business of DuPage Title
of
years
officially
was
rec¬
luncheon tendered to
him in the Officers'
Dining Room
III.,
Trust
and
G.
Vallette
C.
D.
Hull.
It
DuPage
1925,
Trust
known"
as.
Company in
when
Chicago Title and
bought an interest in the
company.
the
Lincoln's 25 Year
erick
Seifering,
Mr. August
President
of
club, Mr. Fred¬
Vice-President
the
Club
and
Assistant Vice-President of the
bank,
were
new
on
hand
to
welcome
member into the quarter
century club, which
has
now
members. Sixteen of whom
are
51
re¬
❖
Company and will continue
to head the
after
operation in
completion
is
both
occur
from
secured
of
companies
Wheaton
the
merger.
until approval
stockholders
at
annual
of
Sit
in
the
Exchange
new
a
of
registered
of
the
of
$20
value.
i
.
.
;
♦,
on or
be
minor
after
•
adopted with
modifications
in
The principal change in
wording.
the rule
as adopted is the addition
paragraph (2) of the sentence
"The required information may be
to
summarized
respect
to
as
appropriate with
each of these cate¬
gories."
The
action
Dec.
text
of
the
Commission's
follows:
31, 1953, and thereafter.
The
Securities and
Exchange
by the SEC that on
Commission, acting pursuant to
the Commission an¬
authority conferred upon it by the
nounced, in Securities Exchange Securities Act of
1933, partienAct of 1934 Release No. 4803-X,
larly Sections 6, 7, 8, 10 and 19(a)
that it had under consideration
thereof, the Securities Exchange
the adoption of a proposed rule
Act of 1934, particularly Sections
concerning treatment of compen¬
12, 13, 15(d) and 23(a) thereof^
sation in the form of stock op¬
the Public Utility Holding Com¬
tions granted by corporations to
pany
Act of
1935, particularly
their officers and employees. All
Section 20 thereof, and the In¬
interested persons were invited to
vestment Company Act of 1940,
submit views and comments on
particularly Sections 8, 30, 31(c)
the proposal.
and 38(a) thereof, and deeming
It is stated
Feb. 25, 1953,
The
rule
proposed because such action
was
necessary
and appro¬
of the apparent
lack of unanimity
opinion among corporate and
public accountants as to the ap¬
propriate manner in which the
In
the
plan
merger
and
election
of
Vice-President,
the
ap¬
as
mination
should
be
made.
Per¬
a
exercisable,
or
,terms
dates, i.e., when
(2)
(3) exercised.
comments
propriety
these
and
and
of
dates
suggestions ' re¬
concluded
using
in
all
that
any
cases
one
had
the
of
not
established, and that deter¬
mination of, and accounting for,
cost to the grantor based upon the
of
excess
by
fair
tioned shares
value
of
the
op¬
the option
price
at any one of the three dates ad¬
vocated might, in some cases, re¬
sult in the presentation of mis¬
leading profit and loss or income
over
statements.
In these circumstances the Com¬
to
deemed
prescribe
a
it
inappropriate
de¬
procedure for
termining the amount of cost, if
of these stock options to be
reflected in profit and loss or in¬
any,
come
statements
filed
with
the
Oklahoma
increased
stock
from
by •
stock
a
dividend effective pet. .30.
.
with the Commission.
of
each
shall
ment
option arrange¬
given, including
be
the title and amount of
(i)
curities
The Commission considered the
ceived
.
"(1) A brief description of the
for each of three
ments filed
Bartlesville,
vployees:
suasive arguments were advanced
mission
addition to announcement of
Powell
of
common
value
par
rule should
corpo¬
Commission.
However, in order
Chicago Title and Trust Company.
capital stock of The
Franklin
Edward J. Sauter, President of that investors may be apprised of
National Bank of Franklin Square,
Illinois Title Company, Waukegan, the monetary significance of the
New York from $3,950,000 to $4,concessions made by registrants
elected a-Vice-President; Chester
to officers and employees through
340,000 was made effective Oct. 27 C.
McCullough appointed Assist¬
the granting of stock options, the
by the sale of new stock and a ant Vice-President in
the title
further increase on the same day
Commission announced, on Aug.
division; Harry E. Frey, Assistant
to $4,340,000 by a stock dividend.
25, 1953, in Securities Exchange
Vice-President, transferred to a
❖
*
*
Act Release No. 4926-X, a pro¬
newly created position related to
posal to adopt a rule to be added
The Banking Department of the
legal and market analysis; and
to
Regulation S-X, and to be
State of New York gave approval Francis
E. O'Connor,
appointed
designated Rule 3-20(d), which
on Oct. 31
to the Elmira Bank & Assistant Vice-President in
charge will
require full and complete
Trust Company, Elmira, N. Y. to of the Illinois
department.
disclosure of all stock option ar¬
increase its capital
stock from
*
*
*
rangements
in
financial state¬
$1,000,000,
consisting
of
50,000
The
First
National
Bank
in
shares
the
certain
rations for the fiscal year ending
meet¬
ings early in January.
following elections and new
pointments were announced
tired.
increase
Trust
Wenzel,. Secre¬ This will not
of
Commission,
and
been
Hooper,
It was announced that Byron S.
bank, presented Powell, President of DuPage Title
a gold watch,
Company has been elected a Viceinscribed. Mr. Er- President of Chicago Title and
of
the
*
became
Title
per share, to $2,000,000, consisting
its
common
service.
capital
hold long of 100,000 shares of the same;par $500,0001■ to $600,000
/
later
Mr. Schnitzlein with
of
service records and who are Trus¬
and
passed into the hands of T. M. and
of the bank. Mr. John W.
President
ending
any year
part- of registration-statement
registered corporation.
release
founded in 1873 by the options were (1) granted,
was
Jonathan
the
ognized at
An
This
Brooklyn,
serivce.
gold
a
Wheaton,
The
Savings Bank,
a
at
priate in the public interest and
for the protection of investors and
of $10 each; surplus of $1,000,000;
necessary for the execution of the
and undivided profits of not less
functions vested in it by the said
than $206,565.
amounts, if .any, to be charged Acts, hereby adopts the following
if
*
*
against income representing com¬ rule to be added to Article 3 of
Directors of Chicago Title and
pensation to recipients of stock Regulation S-X:
Trust Company, Chicago, 111., ap¬
options should be determined. The "Rule 3-20 (d). Capital Stock Op¬
proved on Nov. 4 plans for a principal point of disagreement
tioned to Officers and E«amerger of DuPage Title Company, was the time at which the deter¬
Schnitzlein, chief Company
clerk at the Flatbush Office of the
tary-Treasurer
*
Central
Nov.
on
President
De
small
and
of
recent
to a
Securities
statements
A certificate
if
if.
Mr. Charles E.
Savings the
Bank's Quarter Century Club at a
cis
bank¬
own
spent in assisting
career were
an
Eighteen
ducted
E.
the import¬
in which many
of Mr. Madden's
years
and
stockholders.
L.
the
of
103-year old savings institution in
rights to expire on Dec. 10, 1953.
Last
year,
Commercial
State appropriately
win
Bortscheller,
Bank & Trust Co. declared a $1
bers
and
Avenue
branch, making
commercial banker.
shares
23,
7th
of
corner
31st
report of
for
rule, entitled;
Rule 3-20 (d) of Article of Regu¬
crease the capital stock by sale of
lation S-X, concerning treatment
140,625 shares.
of stock options granted by Cor¬
The proposal appeared in the
porations as compensation to their
October 29th issue of the "Chron¬
officers and employees, has been
icle," page 1642.
adopted
applicable to financial
if
if
if
2
of title
President
1953, must be filed
According
National
Central
the
of Cleveland,
Bank,
a proposal to increase the
development of
capital stock from 50,000 industries as a
of
Information of such optionsDec. 31,
special meeting of its stock¬
effected
*
Madden,
to 66,000 shares of $25 par value,
Mr. Leichtman stated. Five thou¬
sand
Adopts Rules Regarding Disclosures of
Slock Options Granted Officers ft Employees
Oct. 24.
on
At the
effective date of con¬
New York, announced on
Nov. 9, that about Dec. 1 this year, solidation the consolidated bank
The board of directors of the
the Emigrant Bank will open a will have capital stock of $1,000,Commercial State Bank and Trust
divided into: 100,000 shares
Co. 4>f New York, have declared a new branch located in the Equit¬ 000,
able Life Building at the north¬ of common stock of the par value
$1 semi-annual cash dividend a
'
*
SEC
voluntary
or
A
Cleveland, Chair¬
George
»S:
*
*
G. Allen, W. Palen Conway, John
W.
E. Chester Gersten, President of
Davis,
Charles
E.
Dunlap,
The
Public
National
Bank
and Lewis Gawtry, Cornelius F. KelTrust Company of New York, an¬ ley, William C. Potter, George E.
nounced on Nov. 6 the appoint- Roosevelt, and Eugene W. Stetson,
ment of Frank R. Darrell, head of all directors.
•
business
Bank
Walter H. Zulch presided at the
;
Horace
by
has
bank
branch offices.
'
of Manufacturers Trust
the
Brussels,- where
Assistant Treasurer
as an
ac¬
into
went
staff/ as well as nearly 200
pensioners. Overseas chapters are
maintained in London, Paris, and
J.
Vice-
Assistant
Frederick
and
President
bank's
the
of
capital
common
of
tive
Gerard
of
as-an
one-fifth
than
*
*
Appointment
.Creamer
,
of Syracuse, New York
Company
of $50,000liquidation
Cashier, both of whom have been Astoria, with 800 attending. The and was absorbed by Du Bois
active in National City's contacts club has inducted 1,394 members Deposit National Bank, Du Bois,
and includes in its roster more
with the petroleum industry.
Pennsylvania, as of the close of
-and
\
if
of
♦
The Idaho First
a capital structure
Graham
Morrow,
O.B.E., has
$500,000, of which $300,000 is
increased its common capital stock capital stock, $100,000 surplus and been elected a Director of The
*
if
*
Canadian
Bank
of
Commerce
from $1,000,000 to $1,200,000 ef¬ $100,000 in undivided profits.
Bank of New York as Petroleum
Guaranty Quarter Century Club,
The
Oak
Forest
State
fective Oct. 27.
Bank, (Toronto) the bank announced on
Consultant.
honorary
organization
of
staff
will have a capital stock of $200,- Nov. 5.
*
*
*
Mr.
Warren, as head
of the members of Guaranty Trust Com¬
bank's petroleum department, will pany
of New York
who have
The
First
National
Bank
of
have associated with him Bernard served the bank for 25 or more Falls Creek Pennsylvania with a
Drysdale, Eugene Henningson, F.
W. Lafrentz and Louis Watjen.
Administrator, Petroleum Administration for Defense,
is joining
the
staff
of The National
City
N
.
if
sale
the
By
A.
Robert
are:
national
A
Houston
York."
New
if
if
Com¬
Trust
Midland Trust Company of South¬
ern
Ed.
&
under the name of "Marine
pany
CAPITALIZATIONS
J.
City,
Johnson
Bank
increased by the
was
stock effective Oct. 27
new
Workers from $350,000 to $450,000.
Cortland,
of
Trust sale of
Midland
stock of 000, a $150,000 surplus and $50,000
Clay¬ in undivided profits.
capital
common
Thursday, November 12, 1953
se¬
(ii)
the year or years during which
the options were granted; and
(iii) the year or years during
which the optionees became, or
will become, entitled to exercise
the options.
subject
option;
to
"(2) State (a) the number of
shares under option at
the bal¬
sheet date, and the option
ance
price and the fair value thereof,
and in total, at the
options were granted;
the number of shares with
share
per
dates the
(a)
respect to which options became
exercisable during the period,
and
the
fair
option price and the
thereof, per share
value
and
total,
in
the
at
dates
the
options became exercisable; and
(c) the number of shares with
respect
to which
options
exercised during the
the
option
price
were
period, and
and
the
fair
value thereof, per share and in
the
total,
at
were
exercised.
dates
the options
The
required
information may be summarized
as
appropriate with respect to
each of these categories.
"(3)
State
the
basis
of
ac¬
counting for such option ar¬
rangements and the amount of
charges, if
come
The
any,
reflected in in¬
thereto."
with respect
foregoing
action shall
be
effective with respect to financial
statements
for
any
fiscal year
small number of com¬ ending on or after Dec. 31, 1953,
received with respect filed as a part of any registration
to this latter proposal, and the statement, application for regis¬
Commission Jias' determined that tration, or report.
J
Only
ments
a
were
Volume 178
Number 5272... The Commercial and Financial Chronicle
Gen. Precision
Equip.
Offer Underwritten
First Public
first
The
dertaken
By JOHN DUTTON
«
in
1936
began
Nov.
on
7,
with the offering to the company's
stockholders
common
shares
of
vertible
$2.90
cumulative
preferred
value. The
priced at $50
par
con¬
share
per
and
,
stock held of record
1953. It
is
covered
will
one
Nov.
subject
send
In
topic
has
which
if
you
in
I
a
very
booklet
a
am
he
sure
would like
you
.
be
I
respects
when
he
with
agree
states
that
it
will
pipe dream as far as
basis of $50 per share into com¬ selling the general public on inmon
stock of the company at a vesting in securities and Mutual
conversion price of $25 per, share Funds, unless the industry can
Of common stock, and is redeem¬ obtain qualified salesmen. I have
able at the option of the company
had
a
contact' with
$53
share
per
on
,
wasted
the
their
time
and
General
>
tual
Precision,
•undertaken
a
which
of
program
general
or
constructive
ings
of
incurred
funds.
Through its
mestic
subsidiaries
active
17
the
do¬
corpora¬
tion is the largest single domestic
supplier
theatre
#nd
an
of
-well
of
motion
p
i cj t
u r e
equipment and supplies
important
supplier
of
,
television
as
studio
equipment,
leading
a
automatic
as
manufacturer
industrial
and
they
effort.
afford to work for
mission return.
any
cover
50%
a
corn-
I
and
sales
the
of
and
earn
can
g>er
for
eight
the
1952
year
$1,255,278
share
common
first
or
while
$1.88
for
the
month#
was $2,032,-
to
much
a
salesmen
than
them, and the financial resources
to back them
up
until
'
•
per
cdends of 25
larger degree
in
other
lines.
_
RfAIIQ
"
not
or
based
is
share.
cents
Three divi-
per
share each
i
e e m s
all;
salesmen read
a
lot
Public
offering
of
$25,000,000
on
to
.
.
.
sell
and
said
not
in
anything
of them
any
think
I
so
many
so
.
.
calculated to retire 90% of the
lssue
to
answer
an
Proceeds
from
the sale will
be
sjgned to increase the system salable
capacity
cubic feet
to
million
! 007
d
'
.
The company owns and operates
-^- ^—
each
of
turn
you
back
your
to
to maturity* Sinking selling for a day or two, and be¬
redemption: prices range come a buyer. Go out among your
Pn<>r
-
..
,
it."
that's
Now
the
not
it's
know
Northern
,
actually did kntiw
me, "Don't tell
sincerity I'm talking about
In my book if your product is nek
right, make it right or get another
job. I know this—it's better to
look at what you sell first, and
G. M. Loeb
what to sell.
are
them
sell
not
of
be
inferior arti¬
be
were
kind of
these
seems
to
men
what's wrong with my product.
I want to believe in it or I could
the subject.
how to
great salesmen sell
very
knew
Some of
like this
on
I
These
me
They
hear
what
because they told
influence,,
people.
Yet, I must admit that I have
seen some
so great, so*
successful, I wondered whether*
they were insincere,. or whether
they were blinded in this one
point of not knowing how poor
the product they sold, really was.
nowadays; it
s
.
same*
reason.
cles
not.; But,:
right, then concentrate?
efforts on selling any old
all your
thing.
I'm
invited
here
tonight
be¬
Mel Hickerson knows I have
cause
been
successful
to
selling, and that I
in
degree
a
can
thus only
preach what I first practiced. In
Mel's great book, "How I Made
the
That
Sale
Did
the
for
Most
Me," I started off with this self¬
that
idea
you sell anything
anybody unless you first sell
yourself. So, my rule for suc¬
cessful selling is rather simple and
same
to
it to
it
has
for
worked
being
with
call*
It
me.
yourself of the
value of what you sell before yon
competitors and see what they apply -the
popular
selling ap¬
have to offer and how they offer proaches
or
the Dale Carnegie
it, and decide if you would be technique.
their customer
tomer, if
you
or
your
were
own
free
a
cus¬
agent.
sure
Of course, you cannot sell
with¬
out contacts.
And, it goes without
saying that the more people you
realize that we all so often escape
meet the more contacts you will
doing the obvious. It may be that make. But, I believe that when
in our own affaire we really can¬
you meet people you must be sin¬
not see the forest for the trees.
cere again in trying to help thesrv
Each of us must see how our busi¬
in any way you can, without di ¬
ness looks from the buyer's point
rectly seeking their business. I£
of view. I try to look at my busi¬
you follow these two
principles*
ness
from
that angle.
When I sincerely, you won't have to sell—
travel I generally drop into other
people will buy from you. In the
brokerage firms to compare their story I wrote for Mel Hickerson I
This
seems
like simple advice but
pipeline system of approximate- service with
ly 5,872 miles of main, lateral and letters to my
a
The
I
ours.
own
write
firm to
blind
see
how
sentence
In
the book that he liked the best.
Ifc
there
know
was
one
short cut to
was a
retailing
the
don't
Broadway,
members
of
Exchange,
New
York
City,
the New York Stock
announce
the appoint-
tment of John W. Reno
as
manager
: -of the firm's municipal bond deMr.
ipartment.
Reno
investment
years,
has
has
banking
been
in
business
the last eight of which
been
with
Schoellkopf,
Hutton & Pomeroy, Inc.
W- W. Woods Joins
it
believe
it.
I
dis-
had
ex-
people who
securities in
bought
Without
lives.
have
I
But I still
have
contacting
never
their
to
ago.
years
success
securities
of
liked
have
perience
had
suggested
successfully by relinexperienced salesmen.
atively
covered
Carl M. Loeb, Rhoades & Co.,
been
sold
be
can
has
idea
would
Carl M. Loeb, Rhoades
an
under-
Panhandle) and. Hugoton (Texas,
Oklahoma and Kansas) gas fields
Bateman, Eichler & Co.
(Special
to
The Financial Chronicle)
Calif.—William
LOS ANGELES,
become
use>
453
South Spring Street, members of
the Los Angeles Stock Exchange.
&
Co.,
Mr. Woods has recently been asso¬
ciated with J. R.
Williston, Bruce
& Co. In the past
he was an officer
of
Fox,
Castera
and * Co.
Edgerton, Riley & Walter.
and
So
to work to
I went
it,
so
Kansas,
There is another angle.
and sojd at town borders for days
order-takers
of
In these
rather than
sellers think
general consumption and resale by 26 salesmen too many
principles of investment, without non-affiliated gas utility compa- they are dealing with a captive
the ability to guide and lead them njes
customer. The service or product
of
their
through a maze ^ questions 0.,u
of
and
W11UUB11
a
.
.
competitors
may
be
doubts, including the most eleequally poor or over-priced so
mental phases of investing, I am ■ a certificate by-the Federal Power they take it for granted that, as
sure that these people would not
Commission for construction of the buyer is a captive and must
have bought Mutual Funds, or un- facilities to take initially 200 mil- buy from someone, they can rest
listed securities.
They might not lion cubic feet of gas per day from on their oars. They are due, in my
have
bought
solid
blue
chips Permian Basin Pipe Line
Co., opinion, for a very awakening.,
listed on
the New York Stock whose
common
stock is
84% Some other industry
may
lure
Exchange
either,
even
though owned by Northern Natural Gas. their dollars away, or, as is hap¬
they sometimes started out with
pening now, the captive isn't a
a
thought that A. T. & T. might The cost of such facillties 1S estl" captive any more. There used to
be good for them, or something mated at $45,000,000 for the 1953 be captive motor-car buyers. Now
of
standing
the
broad
„
„
similar.
And
while
I
am
on
this
listed securities
on
an
investment
basis to ODD LOT investors who
are
first time security buyers, and
make
it
There isn't enough
that business — not
pay.
money
in
enough
volume
and
even
to
the
,
.....
.
PnnsolidafpH
Consolidated
suits
siimm
the
summary
of operations
Natural
Gas
of
Company
sidiaries for the 12
,
of
re¬
Northern
and
dealers
are
the
ones
who
shows °Perating
•
■'
conclusion,
business
my
bonds
and
economics and business
market
ple
forecasting.
are
well
as
as*
A lot of peo¬
nowadays
concerned
is*
it involves*
and
be¬
productive capacity is so*
large and we have had so
cause our
very
of boom business and
consumption.
If ourtheir jobs and sell
things to people who need them.,
or
get pleasure from them, they
can feel they are helping to keep
the country prosperous and doing
many years
large-scale
do
salesmen
the
nation
Successful
service.
a
salesmanship now can completely
feared decline in
instead, raise even
further-the American standard of
prevent
any
business
and,
living.
Maybe
man
two
really
I'm
bad
a
sales¬
because I could not sell any¬
because
them.
I
I
did
did
not
not
believe in
accept
by Mr. Loeb
pf
the
Sales
Executives
Mid-Hudson Valley, Oct.
U
* Speech
Hass
Melvin
Joins
William R. Staats
&C©<
GLENDALE, Calif—William R.
sub- thing I did not believe in. I have
had three jobs in my life.
I quit
with— revenues of $60,612,124 and gross
increase in income before interest charges of
compensation $10,853,086.
In
stocks
are
captured.
months ended
oneratins
June
salesman."
..
many
begin
with-the
commissions
,
,
portion of the project,
J. Eichler subject, I don t think it is possible
associated
with for any man to go out and sell
Eichler
in
points
and industrial customers for their
W. Woods, Jr. and Peter
Bateman,
third-best.
do something about
that next
Nebraska, time it would be the best. How¬
Iowa, Minnesota and South Dakota, ever, you must do this at regular
The
Doing it once
won't
gas
is locally
distributed intervals.
through
the
company's
People help very much. The competition
and they may be
Natural Gas Division to approxi- moves ahead
mately 6,605 direct commercial doing it differently and better.
to
,
tiave
-
.
books and all this talk concentrate
HW« HtllllKII Udo UClldi
in Nauheim's article.
it iscovered
If there
John Reno Joins
Hie
m-
an
surface indi-
upon
There
cations.
it from
has
man
a
terview
in
■27
.
All
(IffAfC
Natural fiat Rake
Na
relationship with the customer
Training Is Necessary
Hiave been paid to date in 1953.
the
'
living.
for the
me
gathering lines for the movement they are answered. Once I wrote said, "All my life I have wondered
that, since Mutual Funds are not of natural gas purchased princi- to my firm, and six others. The why so" few achieve something thafc
paid quarterly at the annual too difficult to understand, they pally from the Amarillo (Texas reply I got from ours was only that is so
easy—being a successful
! rate of $1
42
were
on
_
R|lff||
ation, without which
1941, dividends on the
^corporation's common stock have
i
r
good and some;
talks
■
and
Since
.
"
.
they make good.
fund
from 100.96% to the principal
amount. Optional- redemption
prices scale from 104% to the
order, but also to continue principal amount,
initial
the
share.
per common
foeen
not very scientific.
were
were
further the standard of
others offered to
that
a
train
a
IhiMtrohlercuavailable today >and
golidated net income
to be
sales
l^^a^^^sifiOlUiOO
to
Some
It used
the untold;
dynamic and constructive number
of:
campaign that includes as
books, not:
number one on the agenda: the
only on selling*
hiring of salesmen with the nat- but how to
ural aptitudes for success in the
win friends
securities business, the ability to
and
of
ance
inspire cooperation and radi- USed by the company to repay
a man must $16,000,000
of
short-term
bank
always plow new ground. This loans and the balance with the
•calendar year 1940 to $54,300,000 ability to inspire confidence must
proceeds from a recent sale of
be analyzed by experts—I don't
for the year
250,000 shares of preferred stock
for the first eight "months "of 1953. think you can determine whether wjjj ^
appiied to construction de•company and its subsidiaries have
risen
from
$9,100,000
for
the
amounted
even
h^ve
fidence
process
trol systems and related compon¬
ents for the Armed Services.
income
salesmen
expensive
Without this intangible quality it
equipment. It is also is
practically impossible to create
sufficient faith on the part of the
velopment and production of con¬ customer to obtain not
only one
Het
of 10 minutes.
still
his overhead, including his
dealer
.■
on
It is the least that
securities.
ideas
cline in business and raise
absolutely the bare
I'm going to try to stick to one
minimum that any salesman can
phase of selling and do it inside
,
•engaged in research, product de¬
net
se-
busy learning how to sell
Natural Gas Co. 3%%
that they miss what I feel is the
sinking fund debentures due 1973, real
point. The real point, as I see
Ymi Must Inmire Confident
WaS made 011 N°V> 10' by an Un" it is sincerity. One must start by
You Mimt Inspire
Confidence
derwriting gr0Up headed by Blyth
being sold oneself on the product
Next to the ability to courage& c0m inc. The debentures were
or
service that one has to sell.
ously keep on building day after priced at 101% and accrued inThis is the most successful sales
day whether you meet with im- terest to
yield 3 55% to maturity. technique I know.
mediate success or not, it is my
Therefore, I have one suggestion
opinion that a salesman of secuThe debentures
a sinking
rities must be able to inspire con- fund beginning in 1956 which is for the evening and that is that
•controls and
Consolidated
Municipal
expansion let.
this
to increase general corporate
;and
v
dealer—this is
companies,
in
Funds,
curities offer 5% and more to the
1940, through acquisi¬
several
a
ican investors without the assist-.
specific solution to the problem.
will If you want to write to him I am
that he will be pleased to
•use the proceeds from the current sure
financing to repay bank borrow¬ cooperate and send you his booktions
Mutual
bonds, and unlisted and local
am not going to review his suggestions here—but he does offer
some
become
good securities salesman,
has I
expan¬
sion and diversification of its bus¬
iness since
Funds
to
Mr. Loeb, stressing sincerity as indispensable to successful
salesmanship, holds salesman must believe in the value of
what he sells, and assume a buyer's attitude toward the
prod¬
uct.
Contends successful salesmanship can prevent any de¬
who has
man
a
qualifications
real
of
expiration of the sub¬ have had
some personal experience
scription period on Nov. 23, 1953,
along this line myself and I bean
underwriting
group
headed lieve that Nauheim is
right when
jointly by The First Boston Cor¬ he states that unless a
man
has
poration and Tucker, Anthony & certain
specific qualities that he
Co.
will
purchase
any
unsub¬ will not be successful
selling Mu-
scribed shares.
the
hire
or
.
At
to be attractive to
prospecting, adveftis-:
ing and promotional efforts. I am
not in agreement with those who
anticipate a rosy 40,000,000 Amer-
number
a
prior to dealers who have tried to
Nov. 30,1958,: and at prices de¬ untrained men, without any
creasing to $50 per share * after screening of their aptitudes
they have all decided that
Nov. 30, 1968.
at
Company
Members New York Stock Exchange
for the work involved is too small
on
it.
most
him
the only
on
this
way; he
to read
com¬
on
convertible
is
the
is
preferred
new
share for each six shares of
6,
has
stock, without capable
being offered at the rate of
mon
Ferd Nauheim of Fund Services
of
Washington, Inc. (1015 Wood108,167 ward Bldg., Washington 5, D. C.)
of
By G. M. LOEB*
Senior Partner, E. F. Hutton &
Where Can I Get Good Salesmen?"
Equipment Corp. since its forma¬
tion
Salesman's Technique
Financing
financing un¬
General Precision
23
Sincerity—Basis of
Securities Salesman's Corner
equity
by
(1851)
meeting
Club
of the
26, 1953.
at
a
Staats & Co.,
York
changes,
members of the NewStock Ex¬
Los Angeles
and
and
other
leading
^
Ex¬
changes, announces that Melvin
HL
appointed manager
of their Glendale office, Security
First National Bank Building. MrHaas has been
Haas
was
formerly
with
Williston, Bruce & Co.
J.
R~
,
24
Continued,
from
mid-May.
6
page
the
the characteris¬
cash deficits and
When debt funding is
some of
tics of Treasury
surpluses.
undertaken double forces
erated
by
gen¬
should be undertaken will depend
two
force
The
vate
and
the
the
in
the
in
changing
capital markets
character of
general
April
Chairman
Federal
Martin
title
"The
—
Markets."
measuring the direction and power
made
a
Transition
Free
to
troversial
forces under chang¬
economic assumptions it is
possible to reach certain firm con¬
ing
con¬
largely, I believe, be¬
cause many people judged
it on
the basis of excerpts appearing
I thought it excellent
debt management.
and I believe that on a full read¬
example, the best time for
Treasury to fund its short-
ing most persons would agree.
Mr. Martin said, as I read his
remarks, that the greatest good
for the greatest number requires
some regulation of our daily lives
but such regulation should be the
minimum that will do the job. He
clusions about
For
the
dated debt is when it has
cash
surplus, because
sizable
a
the
retire¬
ment of short-dated debt with this
surplus
releases
funds
other
for
investment.
This, of itself, might
leave
excess
net
a
of
investment
funds which would seek reinvest¬
in
ment
Treasury and other
curities.
se¬
added that
second
decrease
in
the
short-
cannot have abso¬
we
lute freedom in human affairs and
this
other
not
are
free
words,
strictly
markets
They
free.
eral
sive, these two increments of debt
as
reduction would
of fiscal
of
ury
the Treas¬
assure
confident and
a
market
for
receptive
intermediate
and
In similar
fashion, the most dif¬
for
the Treasury to
time
attempt to fund
must finance
are
are
policy, namely, the Treas¬
ury's cash budget. Anyone who
thinks differently would find that
debt
is
when
it
of
sums
quickly if he
money very
to
were
try to deal in government securi¬
the 314s
bond
The
the
pelled
favorable
private borrowers will bid aggres¬
sively for perhaps all or more
than
all
of
the
available
their
not
savings
enough
were
persuade
lending
the
institutions
non-bank
to
pledge
to
of
some
their funds to it, a lesser amount
would
be
available for private
bonds.
borrowers who then would try to
outbid
another, and the Treas¬
more
strongly. The result
ury,
one
FHA
would be
lower level for bond
a
prices than otherwise would
ex¬
Unless,
Further,
it
should be kept in
strong
competition
private borrowers cannot
that
among
be
System
comfortably
counted
used
to
upon,
be, to
much
as
drive
as
it
sufficient
a
demand out of the market to per¬
mit
redressing of the imbalance
between savings and investment
and
tion
are
high
correspondingly large
a
por¬
of
the
of
cost
borrowed
is borne by the Treasury.
Therefore, it becomes more diffimoney
cut to
bring about a reduction in
demand for money by increasing
its cost. Money tends, more than
rise
This presaged
the
in
On
money.
nationwide
operations
it
bills,
avoid
should
transactions
Treasury
excuse
in
an
for
intervention.
the normal
There
in
are
this
me,
it
kind
is
all
sorts
of
of variables
picture but,
a
inescapable
that
fact, when
functioning of a mar¬
thrown out of gear,
its subsequent malfunctioning will
to
seem
tional
call
doses
What
for
of
just such addi¬
intervention.
applies
to
for Treasury accounts—
they should not be used for sta¬
bilizing
purposes.
Anyone who
knowingly or otherwise an advo¬
cate of regimentation. Mr. Martin
put it this way: "... dictated
across
us
would like it to be.
our
debt if
doesn't have
a
and business is
There
uations
easy
to
are,
good
several weeks.
ability
of
Treasury
cash surplus
intermediate
and
long-term bonds. These would in¬
clude times when the
general de¬
mand for private credit is rather
This is char¬
not
It is regi¬
compatible
proved to be of the type in which
to
it
while
worthy
bound to meet
difficulties.
devoting
because
if
was
it
was
the
goal
dollar is
to
It
of
is
time
some
an
be
unusual
duced
swifty and the posted prime
of leading commercial banks
increased
to
314%
shortly
rate
was
thereafter, as a mad scramble to
complete borrowing arrangements
got underway.
May, the
a
achieved
Business
boomed
with
no
vis¬
peace
offensive in Korea.
The de¬
was
strong.
Commercial loans underwent less
than
tion.
the
usual
seasonal
contrac¬
Capital market activity
extraordinarily high.
activity,
levels
the
Credit policy was definitely re¬
strictive from January
through
can
excessive
large activity in the thing that i
being bought and sold. If the ac
tivity is small you can't have
half
for
account
own
this
the
first
ber of transactions in the market
That
lines two things: one, the interrelationship and interdependence
that exists between fiscal,
debt
Treasury securities a greater por
tion of the total transactions tha
management,
and
the
in
credit
and
the other two;
second, the
proceed
but
ties
from sound prin-
working out
a
to
what
know
makes
of
want and you can't
the puzzle unless you
out
work
the
all
It's
pieces.
tough to do both at
Almost
it
doubly
con¬
with dealers exceeded $300
This
followed
was
the first half
Yet,
be
said
susceptible
be
to
repurchase
may
a
funding into intermediate and
This debt
long-term bonds.
unwinding,
became
the
were
Treasury
budget
increasing
of
source
a
trouble.
for
"basket,"
offerings.
Even
may
apt continuously to bedield largely
such
if $io
mercial
such
banks
year
debt
com-
different
a practice
they shorten
as
to
Truman's
January esti¬
Expenditures
were
"in
mates.
line"
order
to
their
do
The
istration. April receipts confirmed
the
commercial
the
trend
On
observed
April
the
9
March.
in
Treasury pub¬
licly stated it would need $2 bil¬
lion to tide it through June 30—
the
close
of
the
the
of
fiscal
made
was
On
summer.
to
the
larger
a
needs
23 the
April
Treasury had to backtrack
statement to
say
that it
need
this
on
would
estimate
No
sum.
No
year.
of the increased amount
was
pro¬
By mid-May the Treasury
had raised $1,300 million, of which
$1 billion
the
last
from 3V4S.
was
half
the
of
shortdated issues would be lessened if
deposits.
tion
the
Treasury hit the
Then,
were
substantial
a
There
por-
the
of
banks
and
the
and
cash.
of
would
The
the
it
elbow
more
the
serve
no
advance intimation
offering.
had been
The Federal Re¬
stepping
jection of additional
but,
up
its in¬
reserve
credit
it turned out, not
as
The
selling
climax
came
later
and
bond
purchases
was
counts
and
chases
of
by
in
exactly
met
the
one
bond
week
by
head-on
for Treasury
the
Treasury
massive
bills
for
ac¬
pur¬
the
Federal Reserve System.
The Federal's Good Performance
The Federal Reserve's perform¬
ance
the
during this period, and for
past year, has been extraor¬
the
to
market
curities
if
for
Treasury
moved
it
to
se-
build
th
slow process. This is because many
of
the
non-bank
investors will
number of issues, many of which
are relatively small.
maturing
of
commercial
non-bank
wish
market had
In any event
would contribut
development Of a
broader
debt
banks
to
investors is apt to be
portfolio.
of
fo
offe
debt in the form of fewer issue
outstanding in large amounts instead of continuing to enlarge the
transfer
the
comparable securities.
financing done
offers
these
a
from
July for about $6 billion through
Some of the cash
pro
desir
problems.
Treasury
greatly
room
longer-term funding.
it
when
believe
don't
I
serious
to five years and this
give
for other
year
somewhat longer pe-
a
up
the
funding offering and
a
others
certain
Treasury to spread out
over
riod
wit"
minor
in
involved
gaging in
debt
up
end
long commitment
certain
are
ier for the
one
mar
net him very littl
his trouble and risk
cons
deposits.
ing ownership would make it easthe excessive amount of
in
five
ability of opening up outstandin
issues when the Treasury is eh
turned
The result-
proceeds
into demand
for;;
first
In the second instance, his put*
chases and sales would result i
reducing his commitments.
per-
holdings of business
corporations would be sold to the
During
month,
these
banks
may
and
that will
profit for
mitted to pay interest on demand
of the new Admin¬
program
omy
of
and
short
o
the"
if
the
to make
he
kets
problems originating from
in
the
In
has
he
five
ownership
econ¬
issue.
form
than
outstanding
one
stance
refunding for them.
the
partly because of the
the
in
issues
0f
elsewhere,
reinvest
issued
become
They rarely wait for the Treasury
Mr.
billion of Treasury securi
five
selling securities
in
sold
get tied up in commitment
these will be much largei
are
ings banks, etc., follow
of
by having
as
ties
of
late
and
investors
because
March, it had
become plain that income tax re¬
ceipts would fall measurably short
By
sell
insurance companies, sav-
as
So the dealer be
no.
The extent to which the dealer
is
one
is
bonds he can't buy.
.<*-■
the
so,
fin
locked in by owning bond
can't
he
sold)
may
he
answer
comes
double, refunding
or
he
But is it for the securi
bought?
Frequently
buyer.
the
no
resel
to
(or where t
bonds
the
t
cus
may
his next call he
on
ties that
own-
the
in reasonabl
the bonds he bought
holdings
Such
asked
prepared
dealer
corporations.
by business corporations and
developments
do,
The
year debt held by the general
public is in the hands of business
by
of June.
While these
is
at the time where
know
one
year.
repurchase
wants to
tomer
total
he
whichever
sell,
or
customer o
a
98 18/32
and
that
amounts.
the
of
bid
means
buy
once.
one-third
market to
a
98 16/32
house you
use
i
kind
made largely by what ax
are
Treasury issues outstanding. Fo
example,
if
a
primary
deale
the plans for a house while
trying to solve a jig-saw puzzle,
ing
have
the
of
as
primary
dealers.
primary dealer is one who is will
ing to buy or sell at the prices h
quotes for each of the differen
a reconstruction of the debt is like draw-
You
most
known
Management of the public debt
to
market in
The markets in Treasury securi
activity, incomes and employment
high.
has
broad
a
at the present time,
a
are
ciples,
,
differen
Treasury issues to be able to mak
neces-
sizbusiness
surplus when
smaller number of is
a
We have too many
sues.
promotes weakness in
one
cash
through
weak-
sity that the Treasury have
able
take place should be able to flo
policies
which
in
manner
would prove nothing.
Th
point, therefore, is that if we ar
to have a broader
market fo
During the last ership of maturing securities may
May bills purchased out¬ explain the Treasury's preference
of
the
nor
whole, the situation as
it developed during the first six
months of this year vividly out-
to
time
that neither the Treas
sure
Federal Reserve i
anxious to increase the gross num
the
Treasury bills in
the market for
am
ury
in money costs.
On
At the same time
broad market.
I
contributing to the inevitable increase
to
maintain
diversified
a
This
Treasury bonds are the
prime security and offer a commensurately less attractive rate
of
return.
These
investors
|n
leads
be
centage their government holdings
a
second way
may
be
in
market.
of
retary
to
Treasury
developing ' a broader
The Deputy to the Sec-
helpful
will
me
the
which
not be willing to increase the per-
the Treasury seems to
along these lines if
i
bear
their
to
total
they
lack other
tive
investment
assets
made
mofi© -remunera¬
There¬
outlets.
that
fore, the annual rater^of their defor
mand
will
be
small
one,
fraction, probably
»
are
securities and these
are
a
number
The
issues.
Treasury
result
came
to
that
was
market
onl^in Treasury fund debt only four times
best
sources
of
one
of the
demand for such
funding offerings. However,
when everything is^added up, it
appears
that
10 years,
only
over a
period of 5 to
the Treasury
about
$1
to
$2
may
expect
billion
per
hav
to
issues maturing
These
matured
on
eac
th
quarterly income tax dates. This
0f course, excludes Treasury bil
of the growth in their
Of course, there
who can invest
used
Treasury
four
-year.
a
total assets.
the
only
long-teri^ Treasury's
some
inclined
rightly judge references he has
with respect to the shortterm debt.
He has pointed out
unless
new
was
The Treasur
help in this in several ways
I shall mention two.
A broad market develops fro
of
place its debt outside of the banks,
hardly
markets
ible let-up resulting from the Red
high
pelling
Federal Reserve banks purchased
enough
trust¬
had been pumped in by this time.
and maintained.
mand for bank credit
becomes very
that the avail¬
would be re¬
money
in May was a surprise, namely,
The situation as it developed
the offering of $800 million of tax
during the first half of this year
anticipation bills on May 25. The
maximum
And,
in
It had become ob¬
vious by this time
institutions."
funding
of course, other sit¬
it
is
debt
booming.
wherein
sell
the
It
with
it becomes both difficult and haz¬
ardous to attempt
to fund the
short-dated
the board.
mentation.
with
their
on
bill market for
$1,200 million and in June, it hit
rates breed dictated prices it for $1,300 million more, and in
situation
all of
mar¬
kets of the type we have today is
to
as
day,
companies
same
increase
second
a
mort¬
vided.
free
opposes
when
sound
Re¬
effected
management
as
the
finance
the
paper,
reference
Federal
open-market operations also
applies to the purchases and sales
serve
worth
be
and
more
been
business is good a
Treasury sur¬
plus is the key to whether debt
can
increasing
In
acteristic of dictators.
disrupting the capital markets
and of disturbing commerce and
industry becomes enlarged.
an
market, it is only
too expensive.
As money
to become unavailable the
of
Once
necessity arises to
a
reasons
of
to
other types
in
discover
to
ket has
continue
securities.
the
or
intervene
human
through / the
money
begins
open
of transactions in Treas¬
all
of
cost
boosted the rates offered
cannot
its
conduct
it did in the past, to become un¬
available before its cost becomes
danger
Federal
it
market
a
and demand. Today, taxes
the
finds
medium
more
mind
until
and
Reserve
the
of
broader market f
the need for a
Treasury securities.
large cash deficit, it was comon the Treasury to try to
a
ness
$900 million of such purchases in
with supporting these rates.
number
ist.
rates
preoccupied
was
was
to ab¬
around
money
mortgages.
further
million.
of
There
May halted its buying of VA and
tracts
Reserve
com¬
The day after the books closed
for cash subscriptions the Fanny
Federal
ury
terms
sorb the additional supply.
at which it would finance and the
funds.
Moreover, if the Treasury
dictating the
was
G
&
trustees to exchange
and sell 314s instead of maturing
right and under
increase
F
many
Treasury
to
the
of
savings bonds did contribute, be¬
cause
tions
incentive
view
business
of
in
downturn
exchange offer
holders
to
their
little
In closing, I would like to mak
briefly a few additional points
Both Treasury and Federal Re
serve officials have talked abou
consistent
short-term debt and the likelihood
of the
cause
swift
prices.
made
the
not
was
subsequent
ity of prices and yields to reflect
the judgments of the marketplace
against what went on when the
their holdings of Treasury securi¬
ties regardless
of type, because
lines
along
termediate and long-term Treas
bonds by non-bank investors
ury
been
forth
In
offering of the 314%
in April, has been
be consistent with, and
mand for
abil¬
has
mendation and support.
This
early
used to contrast the present
private credit is strong.
In this background, the Treasury
can offer most non-bank institu¬
set
generally, including
In the second week in
The term "free markets" is best
this
perfect but it
with the
at¬
cash
to
throughout
eminently sound precepts
by the responsible offirequire cials. These deserve national com-
further
to become available, in th
for the purchase of in
annum
average,
conducted
to
lengthening
a
would
interest.
of
in
any
This could be promoted, in the
supplementary to the then-exist¬
ing credit restraint of the Fed¬ attendant circumstances, only by
eral Reserve.
The cash offer of pricing its issues attractively and
ties.
deficit and the de¬
a
of
affected,
both of these, by the results
and
he would lose substantial
longer-term bonds.
ficult
credit policy and
Reserve
debt management
officials
are
subject to the influences of Fed¬
dated debt and, unless the private
credit demand were quite exces¬
rates
as
the public
period has
management of
been
not
would-be
borrowers, to
expect
higher interest rates for all credits.
gage
true of free markets.
was
In
Simultaneous debt fund¬
ing operations would bring about
a
This talk became
in the press.
obviously
debt
became
determined
although
caused people
held
Reserve
speech
Detroit to which he gave the
existing business situation. By
of these two
tempts
higher
The
Treasury Securities?
in
through with
program
The
with
met
It
good
as
its history.
fund
to
Treasury
carry
bonds,
What About Free Markets for
Last
January,
success.
that
dinarily good,
of
attempt
team
nonetheless
productive credits.
varies first
with
second,
conditions
be to
may
mortgages and other forms of pri¬
the
opera¬
various types of Treasury securi¬
and
how important it
upon
with its size, which is relative to
the net demand and supply of the
ties,
How much funding then
forces
each
of
good
so
first
were
direction. At other
same
debt
times they offset each other.
power
not
in
minor
known
keep lenders and investors under
pressure to create a demand for
Treasury
Sometimes
tions.
act in the
are
is
business
and
low
or worse.
late
only
Management of the Public Debt
The
Treasury
new
debt
ing have
November 12, 195
The Commercial and Financial Chronicle ...Thursday,
(1852)
the
contrast,
By
have
nine
come
or
to
more
to
th
re
a year
Treasury
wil
this
yea
market
times.
What I hav
said earlier about working towar
a
in
smaller number of larger issue
general
applies
with
force to the one-year debt.
greate
More
Number 5272
Volume 178
The Commercial and Financial Chronicle
...
(1853)
over,
could
we
reconstruct
the
debt along such
coming year.
one-year
lines
the
within
each
On
occasion
marily to the rapidly
cash needs
was
when
the
Treasury has come to market this
from
increasing
Treasury. This
of the
part
a
the
the
of
Jack G. Moss With
inheritance
fiscal
weak
Our
of
policy
Reporter
earlier years.
it has engaged in consul¬
tations and meetings of one kind
year,
another
or
periods
over
six
to
two
weeks
tually made its offering.
it
Langley Group Offer
L. I. Ltg. Co. Bonds
ac¬
The
re¬
sult has been that the market has
unnecessarily subject
to grapevine stories, rumors, and
conjecture. At times, it has been
almost impossible for dealers to
make
good
curities
markets
affected,
whole
the
W. C.
made
be6n
range
the
in
se¬
throughout
of the Treasury
or
list, because they couldn't be
sure
what
story tomorrow might bring
from what might be termed
a
responsible source. The Treasury
market
would
have
aside" less if there
"stand
to
less fre¬
were
ciates
F
is
Langley & Co. and asso-'
Nov.
10
offered $25,- -
on
000,000
Co.
The backing and filling which has been
going on in the gov¬
market is an aftermath of the successful new
money
operations by the Treasury. The
digesting of the new 2%% bond
of
first
3V2%,
Long Island Lighting
mortgage bonds, seriesdue Sept. 1, 1983, at
100.929%
and
interest.
accrued
at
competitive sale
bid of 100.21%.
Net
proceeds
bonds
from
will
be
the
company for construction
ity plant
financing.
in
refunding I would like
a thought that
might
process of debt re-
to introduce
the
coristruction.
speed
1-5
up
and
by
insurance
true
of
other
term before attempts
fund it,
to
these
but by that
investors
these holdings.
sold
in¬
nonbank
usual '.practice,
eventually will become
made
time
of
Under
debt
one-year
are
amount
year debt
is held
savings banks and
companies.
This also
of
vestors.
this
fair
5-10
mutual
is
A
have
will
If the Treas¬
to make exchange offer¬
ings, particularly to these nonbank investors, under which some
ury were
of the
1-5 year debt could be
changed
for
ex¬
long-term
bonds, I
believe such exchanges would be
received
with
offered
conditions.
funding
duce
This
By such advance
the
its
points I have tried to make.
Fiscal, debt
credit policies
to
do with
and
considerable
management,
have
the kind of money
have, and weakness in
these
injects
other two.
any
we
of
the
one
into
weakness
thereby imperiling the
trustworthiness of
our
money.
In working out a reconstruction
the
of
is
public
debt the Treasury
with difficult problems
faced
arising from
the
cause
debt ownership
be¬
is
Dec.
bank
banks.
investors
long-term
debt
The
an
rate
$1-2
'/
of
There'
which
the
The
the
most
debt
company, at
redemption prices rang¬
ing from 103.93% to par, and at
special redemption prices ranging
regular
from
fewer
in
several
of
issues, that
promote
broader
a
securities.
to build
up with
is
end
we
are
interest in each
issues
the
bond has taken the play
away from them.
good investment demand is still around for the most
f
are
the
outstanding
in
tion
of
in
a
Under
and
cits
a
free
are
the
proximates 1,300,000, according to
company estimates, and approxi¬
mately 74 % of its operating rev¬
enues
Treasury
which
Free
ties
flexible
service.
issues
one
credit
policy
to
not
cause
are
a
strictly free,
securi¬
but are
debt
management
and
policy.
The situation that
developed during the first half of
this
prices
during
which
bond
declined sharply and in¬
terest
rates
tially,
electric
five
generating stations;
transmission
owns
substations
and
distribution substations.
111
year,
should
The 2%s of 19-31 went above the 101 level
formed
is
the
natural
nental Gas
For
gas.
The
Aug.
income
effect
of
the
to
$7,160,000. Giving
current
financing,
outstanding,
capitalization
will
consist of
$146,125,000 of longterm debt; 300,000 shares of pre¬
ferred stock and 5,520,499 shares
of
"hot"
"stiff"
increased
be
substan¬
attributed
pri¬
there is
"hot
real
a
nobody
one."
Stone & Webster Sees.
It
same
seems
Webster
&
Securities
City,
have
ciated with the firm
its
He
member
Depart¬
as
with
formerly
was
-
asso¬
a
Sales
Institutional
ment.
that
announced
Rodney Boynton has become
of
On
the
it and
wants
to
%he
Financial
SOUTHERN
there
formed
C.
N.
—
Heartfield
with
offices
has
670
at
securities business. Herbert J. F.
Dietenhofer
is
partner
a
formerly
was
for
manager
Co.,
in
the
The
commercial
amount
of
the
Inc.
In¬
prior
and
kind of
.
Financial
has
of
change.
Mefrill,
added
Turben
Building,
to
&
^
Mass.
with
is
Vincent
—
Mann
&
Gould,
70
Washington Street, members of
the Boston Stock Exchange.
go
were
allotted
the
With Collin, Norton
v
(Special
Hertzer
such
is
time.
a
Therefore, it
seems
Robert
—
to
added
been
W.
the
Collin, Norton & Co., 506
members of the
New York and Midwest Stock Ex¬
changes.
Verling Pierson With
Blyth in Portland
to
The
Financial
Chronicle)
PORTLAND, Oreg.—Verling W.
a period of inflation
purchasing power during
decrease
to
Financial Chronicle)
Ohio
Madison Avenue,
Purchasing Power Created
imperative
The
has
staff of
largest
financing is not usually done during
it
to
TOLEDO,
though the 16%
Pierson
with
has
Blyth
Co.,
Building. Mr. Pierson
\
ly local
associated
become
&
manager
Inc.,
Pacific
was
former¬
Walston
for
Co.
though the fear of inflation
as
far
as the monetary authorities
they would not have channeled the new bonds in
such large amounts into the commercial banks.
The building-up
concerned
are
of bank deposits and
going
such
as
or
during
purchasing
power
is what is generally found
period of decreasing business activity. Also with
usually comes an ease in money rates be¬
it is hoped that before too long the lower rates will stimu¬
on
U. S. TREASURE
a
development
a
a
STATE
beneficial effect upon business
and
borrowings of the Treasury will not
show much deviation from what has just happened unless there
is considerable change in economic conditions.
In other words,
MUNICIPAL
SECURITIES
funding
quite likely to be tailored to
meet the needs of commercial banks since the purchasing power
created in these operations should eventually have some positive
influence upon the economy. However, in order to buy govern¬
ment
this
or new money purposes, are
bonds, commercial banks
as
a
whole should
mean
New York Stock Exch.
Stock Exchange
the
have
reserve
balances
and
conditions.
With Francis I. du Pont
Weekly Firm Changes
announced
must
easy money
(Special
to
The
Financial
BEVERLY HILLS,
Liberman
following Francis
has
I.
du
Chronicle)
Calif .—Larry
joined the staff of
Pont
& Co., 9640
Santa Monica Boulevard.
bership
the
Winsor
will
be
of
to
the
late
Frank
C.
considered
George
La
by
A.
Grange
the
Ex¬
Akin-Lambert Adds
(Special
LOS
to
The
Financial
ANGELES,
Chronicle)
Calif.—Alex¬
Co., change Nov. 19. Transfer of the ander Shackman has been added
Exchange membership of the late to the staff of Akin-Lambert Co.,
Oliver
S.
Campbell to Paul S. Inc.,
639
South
Spring Street,
Ex¬ Ames will be considered on Nov. members of the Los Angeles Stock
mem¬
the^Midwest Stock
-
to
enough
a
Transfer of the Exchange mem¬
Chronicle)
Ohio—Harry M.
been
Union Commerce
bers
whole
even
changes:
-at}
The
CLEVEL^flD,
of
than
is
issue
great healer which does enable
a
a
as
bonds
must have subsided somewhat
has
*
staff
more
an
The bonds that were sold to the commercial banks not only
supplied funds to the government to meet the deficit with, but
they also created bank deposits which are purchasing power. This
The New York
MerrillpTurben Adds
Russell
is
when
Treanor
Financial Chronicle)
to The
SALEM,
allotment was
smaller than what was given to non-bank investors, government
agencies and state and local governments. This created the feeling
that the deposit banks should have received 24% allotments, the
same as was given to non-bank investors.
Mc-
■
to
With Mann & Gould
(Special
a way
banks
2%%
Southern
Southern
thereto
(Special
hand
Street.
until the inflation factor pokes its head up to plague us again, the
securities that will be offered by the Treasury, whether for re¬
Southwest Broad Street to conduct
vestment
South La Salle
It is believed that future
Chronicle)
PINES,
Dietenhofer- and
Pines
Riding"
though these conditions will continue to be the
as
borrowings that will have
activity.
Dietenhofer & Heartfield
He
bond has
market in
being attracted to this
are
other
in the past but time is
as
cause
firm.
new
good two-way
very
enough to go around and the 23/4s
never
late
a
CHICAGO, 111.—Announcement
is made that Laurence H. Norton,
Charles
J.
Vojta,
William
J.
Kearns, J. Harry Musson, Mildred
Vruba, Philip Kaufman, Raymond
W. Young, James L. Knight, and
Adolph Zarbock, formerly associ¬
ated with Remer, Mitchell & Reitzel, Inc., have established the firm
of La Salle
Securities Co., 208
'
Boynton & Co., Inc.
been
Opens in Chicago
the day before
of adjusting themselves so that
those that want more bonds generally get
them, whereas sellers
get rid of them, with both parties coming out of the situation
without being casualties.
Laird, Bissell & Meeds and H. F.
(Special
La Salle Securities
these things to be ironed out to the satisfaction of all concerned.
because
Corporation, 90 Broad Street, New
Building. Mr.
a partner of
formerly
was
(Special
Rodney Boynton With
opened Dallas of¬
Kirby
around.
More
Stone
the
Moss, Moore & Company.
stock.
common
in
Moss
"free
Security quotations do have
ended
a
that investors
means
that
fact
issue is
Transconti¬
months
12
fice
riding" was held; to a minimum in the
recent offering of the 23As has also
helped to improve the market
action of this issue. To be sure, there was some criticism heard
about the way the allotments were
handled, as well as the small
amount of these allotments, but this is not an unusual
thing be¬
cause it has happened on
many occasions in the past without too
much damage being done to
any of the parties involved. When an
Natural gas
31, 1953, the company had oper¬
ating revenues of $63,378,000 and
net
because there is
Minimum of "Free
Pipe Line Corp.
the
of their newly
obligation.
gas
from
purchased
on
However, the market action of the
been favorable
distributed,
by the company in the year ended
Aug. 31, 1953, was natural and re¬
all
poration of Texas and is manager
were made public but when
trading was resumed
the morning after election
day and the allotments were known,
then prices were shaded and continued to
give ground because of
was
stantially
Columbian Securities Cor¬
of the
on
Sub¬
force
fiscal
'
from
company
them to rise.
in Treasury
subject to the influences of credit
policy,
The
wi? an officer of
prices to decline and
Alister, Smifli & Pate, Inc.
markets
are
for
„
surpluses
tend
derived
are
Acting Well
the allotments
York
Formed in Southern Pines
markets, Treasury defi¬
a
force which tend to
bond
cause
exchange
term longer than
the time.
at
year
Rockaway penin¬
City. Popula¬
territory served ap¬
New
in
funding offerings to nonbank in¬
stitutions
and
contiguous
sula
Y
reduce tomorrow's
debt management problems, and
to speed up the reconstruction of
the debt, would be to make re¬
that have
Counties
Moss
issues.
the issue which
to
way
.
G.
Jack
DALLAS, Tex.—Jack G. Moss
fias been elected a Vice-President
Very few of the institutional investors were able to
get all the bonds they thought they needed, to say nothing of those
that they would like to have obtained based on
the subscriptions
that were put in with the
Treasury. However, because of the
padded subscriptions some institutions got more bonds than they
expected and these had to be paid for by selling the outstanding
Nassau and
Suffolk
•
2%%
a
profit taking.
more
amounts.
One
case.
this
and
Long Island Lighting Co. sup¬
plies electric and gas service in
outstanding
large amounts instead of
small
in
ways
can
Treasury
that
that
100.93% to par, plus accrued
York
billion.
important
so
redeemable,^
the option of the
at
of
offered 2%s.
electric" property.
The bonds will be
,
to
per-annum
Treasury
for
to
of
unlikely
is
development
market
form
average
are
the
ex¬
1953
amount
adjusting itself to the new financ¬
ing, which means that considerable switching is being done with
the primary purpose of
building up positions in the recently
31,
is for
potential
the
in
bonds
exceed
1,
largest
The government market is
1955 are estimated at
$117,300,000,' of which $93,000,000
transfer of maturing debt to non-
:
short-term
New Bond
construe-'
Sept.
the
Savings banks, pension funds and certain state funds
rounding out positions. Some of the latter acquisi¬
the newly offered 2%s have been made
at the expense
apt,
short-term
at all times, to be held largely
by business corporations and com¬
mercial
penditures ?from
obtained
obligation.
incurred
the
Construction
program.
28
repeat the
me
tion
were
with
steam electric
refunding.
In summation let
1953; and
re¬
might
Treasury
2,
connection
re-,
problems of "tomorrow."
recently has done some
Canada
such
enthusiasm.
of course, that the terms
are
in line with market
assures,
Nov.'
positions in the 23/4s due 1961 in spite of the
up
institutions
•
distant maturities.
to repay bank loans
or
these
Nonetheless,
util¬
of
building
that
because
the
by
active in
fact
of
of
sale
used
by
a
intermediate term issues which,
according to
reports, have been sold to make way for the new bond.
The longer-term Treasury issues have been rather
inactive
a
the
switches from outstanding issues and this is
considerable degree for the minor weakness that
appeared here and there in the list. Commercial banks have been
tions of
Monday
on
done
have also been
The group won award of the issue
on
being
responsible to
which amounted to $21,275,000 orr
debt
Columbian Securities
ernment
quent financing
and a shorter
consultation
period before each
On
Governments
on
By JOHN T. CHIPPENDALE, JR.
from
of
before
25
19.
Exchange.
Aubrey G. Lanston
8i Co.
INCORPORATED
15 BROAD
ST., NEW YORK 5
WHitehall 3-1200
231 So. La Salle St.
45 Milk
ST 2-9490
St.
BOSTON 9
CHICAGO 4
„
HA 6-6463
&
26
The Commercial and Financial Chronicle... Thursday, November 12, 195$
(1854)
THE
TO
LETTER
Continued
EDITOR:
Bank and Insurance Stocks
Shull Sees Need oi Fixed Gold Price
League takes issue
Connecticut Chairman of the Gold Standard
Chronicle:
Eggel¬
ston, of London, Eng., dated Sept.
1G, carried in your issue of Oct.
29, starts out by saying that he
letter
Mr. J. F.
by
ters of Harold
a n s,
Frederick
Ghull"
from any spe¬
cific comment
statements
of
by
Frederick
G. Shull
any
those
above.
named
Among
views expressed by Mr. Eggelston
the "immense issues of fiat
...
have
been
"perpetrated
that he identifies himself
turer
*md that "there may arise a
a
confusion,
due
the
to
anoney,
But
suffering,
a
.
overissue
of
take
to
There is
United
would
ket price is incorrect, . . ." That,
of course, is an "incorrect" state¬
ment. Would Mr. Eggelston main¬
tain
that
England
was
pound
sterling
113
at
bank stocks to show
tion.
of
1816 to
would
held
he
was
the
say
that
also
the
wrong
United
when
official-price of gold at
the In¬
We
when
"value" of 23.22 grains of fine gold
per dollar?
dividend
First National
U.
$2
Bank
show
.
tleman
."; but when
.
impression
truth"
that
eternal
and
standard
operates, contem¬
poraneously, with a fixed goldprice "value" for the pound ster¬
"Under
1he
that
any
very
desirable
setup
based
•
almost
I
of
.
zero.
,
Gold
i
Nov. 3,1953.
as
has been influenced by
recurrent
Market Bid
Point
1!)53
Dec. 31,'5'i
Change
Price Range
37%
35
53
Chase National
46
48%
Chemical
51%
49%
60%
65%
Bank.
124
\
117
275
Cohu Opens
311/4
Exchange,
office
Building
of Don
>.
304
the
More. Z
under
S.
>
wflt give
117y4-101
3v2
49
%
295
6
+
431/2
-
-257
%
+
46%
250
93
50%- 44
-f
102 /
32%- 281/2
+
275
8%
-231
provide the stimulus needed for
could
/.-shares,—-
a
the-.. Powers
-.
(Special
Chronicle)/;
'■staff of Williams Investment Com-
Barnett Building.
.
.1/
,
4
having
earnings of their
that
being,
reasonable
seem
the
market
stock
common
net
double
company
in the next five years. That
it would
for¬
and
gross
value
could
also
be expected to double in the next
five years, as it has
in
slightly
over
already done
the past three
years.
the New York Stock
Exchange.
Public National Bank
Advances Darrell
E.
Chester
of The
Gersten,
President
Public National Bank anct
Trust Company of New York, has
the
appointment
of
announced
Frank
R.
Foreign
Darrell,
head
of
the
Collection
Division, arj
Manager of the Foreign
Assistant
Department at main office.
Aaron B. Gohn
Rejoins
Selected Investment
(Special
to
The
Financial
Chronicle)
:j5
.
TOLEDO, Ohio—Aaron B. Cohn
has
associated
become
Selected
Investment
Mr._Cohn
&
represented
Co.
Incorporated
with
Company
who has
ofi
re¬
Blair, Rollins
in Toledo in
7
the past was an officer of Selected
;
Investment.
With Schwabacher Co.
(Special
to
The Financial
Chronicle)
SAN
FRANCISCO, Calif.—
Russell R. Kennedy is now with
Schwabacher & Co., 600 Market
Street, members of the New York
and
San
changes.
Francisco
Stock
•
;
*
<
•
Ex-
'
-
112
94
-
Peters, Writer AddsVr
(Special,to
Chronicle)'•
The Financial
DENVER,
Jones
Colo.
has become
Arnold
—
R/
affiliated with' J
Peters, ' Writer
&
Christensen// ■;
Inc.,
724 y Seventeenth v Street^ / ■
members
the
of
MidwestStock
Exchange;7V
V-"VT
:
y
"v '
ft
higher valuation of bank
•>
> v
L */.'>,-•
'
(Special to The Financial Chronicle)
to The Financial Chronicle)
FRANCISCO,
Calif.—
Forrest Greene has
joined the
ing,
members
Co., Russ Build¬
of
the
San
Fran¬
cisco and Los Angeles'Stock Ex„
.
.
.
.
..
Dean Witter
t\.
J
&
Co.
j,
for
;
several
f-.r
FRANCISCO,: C
Walter' J.
Managed
41
Fremier is
Investment
Sutter Street.
Two With
,
a
now
Bulletin Available
1 i f
with
Programs,
yvJ
; :
Laird, Bissell & Meetfs
Members New York Stock Exchange
'-\S
Members American Stock
Renyx, Field
fx
ISO
BROADWAY,
Telephone:
(Special to The Financial Chronicle)
...
changes- ,He was Previously with
years,
;j;: >
of New York
With Management Invests
SAN
SAN,
D.
,! JACKSONVILLE,, Fla. —Kath.aririe M, IJohle-has' joined the.
pany,
a
>
Kaiser Adds to Staff
management
Financial
to
A
Williams In v. Co. Adds
to The
ward
com¬
look
can
94%- 81
4
much better market performance.;- The record earn-/
a
staff of Kaiser &
(Special
stockholders
mon
-251
54%- 46%
iy4
that the banks which show the largest
have r opened
in,
close
run
,,
-
branch
will
66%- 581/4
1%
—19
—
60
241/2- 20%
1
—
-
1021/2- 90
2%
—
30%
;
(Boston)__ * 50% ;
(Chicago). 250
Illinois National—,
84y4 ;
It is interesting to note
ROCHESTER, N. Y.^-Cbhu &'
Co., members - of the New York- *
Stock
in»
sold
consolidated^
It would appear that based upon*
cently
73
.
Security First Nat'l (L. A.)r 106' • '.
Branch;>
been
past records, Texas Utilities
-366
269
National
f
of
1952
$500,000,000.
419
the
•—r-
have
this time
at
assets
to
7
61/4
46%
National
Cont.
31,
believed
is
Chicago.
—
64%
America
First
-
.
it
-124
—
283
51%
46V\
Banks
of
Bank
23%
1131/2
S. Trust-Other
League
99
62%
Trust
67%- 58
.first; National/ -logs in prospectmakethe outlook for larger cash distributions
'
Monroe.
.-■■I
-and in'some cases,;additional stock dividends favorable. : This
-a-
Dec.
on
securities
1953,
144
—
264
50 Vs
Public National
U.
72 V\
22%
City
New York
52%- 43%
5
*
of
as
assets
gross
assets,
$444,000,000. As additional amounts
42
-
.declines,-. Empire -Trust and J. P. Morgan,' are the shares "which
usually sell on the lowest yield basis. Thus where rising yields
^dth/X^
Company,-/ were a factor, such stocks would be the ones most directly inMichigan,! Street, mem-/.fluenced. -V-— V.
,
- - V y */
:
/ 1
/of:/the. Midwest. Stock; .Ex-» //• / Over the balance of the year it is possible that bank shares
of
1
—16
96%
Trust
50
2
+
—
394
Bank
Manufacturers
.
(Special to The Financial Chronicle)
officer
;
of Dec. 31, 1948 were
$249,000,000. This compares with*
55%- 47%
2%
—
—
66
Irving Trust
With Milwaukeee Co.
ah
consolidated
example,
-351
1%
—
140
387
National
Hanover
in¬
enterprise have
proportionately.
for
31
-
398
—11
51%
Exchange
40
2%
+
379
368
Guaranty Trust
^ch^ge.:JMrt Johnson^^vyas Jormei*ly
this
Gross
against
prices of 22 of the major banks in New York
Bank of New York
First
1 MILWAUKEE,. Wise.—Oscar N.
acting stocks
only other New York bank stock to
year,
Manhattan
of
First
Again, I disagree with Mr. tEfgdjelston's statement that "no con¬
ference, no policy, no la\v, no
.
far this
so
Bankers Trust
.
Standard
better
Market
of
.
of the
Current
"the
ever-operating
of
creased
New York City Banks
"great
a
one
Where appropriate, adjustments have
been made for stock dividends and stock splits.
FREDERICK G, SHULL,
Conn. Chairman,
i
^ther than in places remote from
the "free market" operations.,
is
been
following tabulation.
National
"free
not
the
Morgan, J. P
to
market" price for gold
likely to ever vary ap¬
preciably from the "official price,"
if,
it
sets
It is interesting to note that
5, 1953.
City and throughout the country for the current year are shown
in the
this gen-
function
a
A stock
possible merger through which stockholders could
substantially higher price than the current market.
a
ing the official-price of gold, he
is underrating public intelligence
gold.
or
that
the larger number of shares
on
]
commons
preferred stocks and bonds
been sold, naturally the as-
the
a
free market" is that of determin¬
other
on
—
of
The changes in
undertakes to convey the
gold
and
assume
total distribution this year of $16
Empire Trust
years,
overlooking the fact
a
Manhattan
of
gain
a
rumors
realize
share. As additional
per
of
weeks
two
public at $40.25
have
to
made
the
sha^e for each 13 held was distributed
of Boston has
share indicating
Corn
that such "free market" under the
the dollar
honest currency
a
sold to
stock
additional
of
shares
the 1952 year-end quota¬
$14 paid in 1952. As a result of this the stock has been acting much
better than the general New York group.
pay¬
thousands
000
were
of the few New York City
over
share.
per
The company's stock is listed on
under the ap¬
for
one
announcement
the major banks outside of New York City.
S. Trust made a special "centennial" dividend payment of
among
says:
endured
the
continued
additional
one
have
when he says that there must be
"free market" for gold; but he
a
ling,
of
lication, no dissertation of uni¬
versity economists can add one
to
iota
the great truths which
Mr. Eggelston is on solid ground
example is
gain in price
to stockholders of record Nov.
with Mr. Eggelston
"No learned pub¬
agree
a
attributable to
is
First National of Boston has shown a similar pattern.
Bank
he
the general
$3.49
On June 3, 1953, however, 375,-
outstanding.
be
to
could the
pretended
a
This
dividend of $2 would be
ment"?
.$20.67 a fine ounce from 1837 un¬
til 1933, thus giving our dollar a
appears to be
of
pearance
stimulus to
that the bank would, subject to stockholders' approval, pay a
stock dividend of 10%.
It was also indicated that the current
the day's market,
worth only $9; and on
been disguised
has
it
a
has
it
ago
to
be
been
the case,
Bank for
Chemical
1914, and, denomination of the coin has been
thereby, established an unchang¬ the
most
usual
expedient
by
ing official-price of gold?
And which a real
public bankruptcy
States
selective influence rather than
indicated
been
market.
$11? Has Mr. Eggel¬
ston
forgotten that the world's
greatest economist, Adam Smith,
set the pattern for a fixed-value
for a nation's currency when he
so truly said: "The raising of the
wrong
grains
been
a
increased
have
where
another day,
when she held the "value" of the
fine gold from
due
day,
mar¬
distributions
stances
States, for example, coin
gold piece which, on one
$10
a
doubt that any price
no
other than the free
bank stocks for income purposes have become relatively less
Higher earnings, of course, presage larger dividends.
However, there have been few instances among the major banks
where dividends have been increased this year and in those in¬
destroy
foundation of gold and
very
importance, bank stocks usually sell on a yield
Thus with yields on most high grade investments rising this
capitalization, the earn¬
common stock for the?
the
on
most recent 12 months would have? '•
of
attractive.
enunciated
as
to give some con¬
yields in viewing the level of the cur¬
1952
ings
year,
would
silver coinage; for how
certain opinions expressed in that
letter by Mr. Eggelston, such as:
ior gold
Mr. Eggelston,
be reasonable, however,
considerable
The principle
"convertibility,"
by
paper
exception
Centres of
of
the
must
Local
to
stitute of Bankers."
."
.
I
chaos,
tragedy,
a
of
basis.
"Lec¬
as
to
Because of their investment characteristics with stable income
day's market rate," is in¬
deed amazing, when you consider
tion"; he says "The world is mov¬
ing toward a paper money hell";
seem
rent market.
the
at
the peoples of every na¬
on
It would
sideration to the matter of
money"; but for him to
should
be convertible "at the option of
the holder against gold or silver
mon¬
so
somewhat lower level of business
a
next year.
that paper money
contend
anticipating
now
are
anticipating the upward trend
far in 1953. Also it may be that
were
earnings which has prevailed
prices
ible paper
which meet with my approval are
the following: He rightly criticizes
ey" that
in
"paper currency" a very
value"; and he seems
to forget that the U. S., from 1837
until 1933, maintained its Dollar
at the very "real value" of $20.67
a fine ounce of gold.
Mr. Eggelston is constructive in
calling attention to the "unpun¬
ished crime of issuing inconvert¬
refrained
made
own
definite "real
Eggelston
has
quotations at the end of 1952
Britain's
reason,
Mr.
Mr. Eg¬
taining the pound sterling at 3pounds 17-shillings lOVk-pence per
troy ounce of gold—thus giving
n-
Xcle"; but, for
some
the prospect of mergers.
The excellent earnings being realized or in prospect seem to
have had little effect upon share prices. This may be because stock
country, back in
the Eighteenth Century, consist¬
ently followed the policy of main¬
of
•die "Chro
contrary to the slight downward trend have done so because
special considerations such as larger cash or stock dividends or
of
the
been any dominant factor gov¬
moved
to have forgotten
appears
his
that
re-
issues
rcnt
gelston
G.
in
than two centuries.
more
G.
also
to have
seem
erning the movement of bank shares and the stocks which have
are
principles of the
gold standard on which the lead¬
ing
nations have operated for
jE. Barton and
G
statements
to the
contrary
has "carefully
read the let¬
Philip
Those
this."
do
about 4.1% while for the Dow Jones Industrials it is close to 4.4%
There does not
Security
I Like Best
Bank Stocks
—
The market action of bank stocks as a group so far in 1953 has
closely approximated that of the general equity market. An index
of New York City bank shares shows a decline for the year of
national or interna¬
give any paper cur¬
rency,
sterling, dollar or what
have you, a real value."
And he
adds: "Only the free market can
regulation,
tional, can
Editor, Commercial and Financial
The
This Week
free market.
price of gold other than that of the
correct
no
.
Eggelston, of London, Eng., who holds there can
J. F.
with
be
The
[
2
page
JOHNSON
E.
H.
By
jrom
.BOSTON, Mass. — Burton H.
Chapman and Leonel J, Costa, Jf,
are
now
with
Renyx, Field & Co.
NEW YORK 5, N; Y.
BArclay
Bell Teletype—NY
(L.
A.
Gibbs,
Exchange--.,'
7-3500
-
1-1248-49
Manager Trading Dept.)
Specialists in Bank Stocks
-
Number 5272... The Commercial and, Financial Chronicle
Volume 178
27.
(1855)
'ontinued
from first
ately higher living standards, and'
page
balanced international accounts!
The
Problems oi the
European
Defense Community
kted
50 years
ago and would not
re-joining. Close affilia¬
hink of
tion
bring to the surface
tensions between the
may
deep-seated
French
English and
Small
life.
cious
of
outlooks
countries
great
on
suspi¬
are
all
powers;
are
suspicious of the Germans.
how
Or
would
to
with
140
million
Latin
Americans and—share our wealth
merge
vvith them?
in
means
of
expense
mar¬
for
refuse
the
Welfare
vote, to be
British and
to
Schuman
Continent's
America's
use
how
Plan
defense?
either
naive
is
federation
without
the
in
or
It
as
size
of
supra
a
remembering
simple and
homogenous the
were in the
Century—how long and
ductivity
of
"social"
is
the
to
not
to-do.
But
taste
the
of
pro¬
the
con¬
stituent
states; the decisive fac¬
availability of capital, of
entrepreneurial spirit and of a
tors:
labor
force
with
to
the
dimensions
LONDON, Eng.—At the begin¬
ning of November the price of gold
to
and
willing
relatively little
have
work,
do
able
in
and
Greece, is
be.
can
Europeans
should
America
tion levels all
when
it
comfort
own
to
to
of some strange
as
believe
raise
over
comes
great
as
market;
specialization can
that
the world; but
reducing their
improve
the
take
of
care
thing.
the
and
bloodiest
tury
fact
that
it
the
took
XlXth
the
of
war
to make it
stick.
Cen¬
To
advo¬
cate
integration without weighing
the
unprecedented problems of
organization and of elemental na¬
rope.
A Common
of Benelux
Would
run
the
European
a
Union
be
the
on
Belgian
principle,
liberating from the basic controls
imposed on Britain, or on the
British principle, imposing similar
controls
of large populations
negligible purchasing power
—but of its productivity.
Efficient and cheap production:
run
likelihood
would
that
is
the
prevail.
In
Federation
Economic
any
pre¬
monetary union.
supposes
The
"There
Netherlands and Belgium-Luxem¬
currency
greatest difficulties.
burg have been trying to bear
Benelux —for
—
birth
pains
It
come.
nine
not
hard
was
one
years;
still
are
the
over¬
enough,
and
cannot
and
The
ernment,
when
terests
totally different.
are
that
beer
on
breweries
the
con¬
fiscal
in¬
A tax
bankrupt
may
the
of
might leave
and
the
country,
one
dry the Treasury of
other.
And
there
obstacles.
are
The
Belgians
the
Dutch
regulations,
mind
vicious
more
them.
live
under
roof,
the
Most
the
do
not
to
economic
same
must
in¬
be
disposal of
A
of
the
few
in
that has never
perilous fashion—
declined
in
a
in
to
fill
order
holes
the
in
the
A
heralded
Steel
as
objective
the
Coal-
same
thing
of
free
market.
has
a
succeeded
in
cartel
is
an
on
states
will
make
holds
true
for
fense
Community, if it
With
ferentials
of
and
50%
spectively,
should
lower,
the
or
theirs?
is
re¬
Belgians
Hollanders
the
on
dif¬
28%,
the
the
Presently,
union
level
price
and
wage
raise
customs
of being
verge
broken up.
the
accept
distressing sample,
"Economic
semi-official
The
reach
an
two
Norwegian waterpower
of inability to
case
understanding
(between
neighbors!),
even
an
understanding
friendly
though
free
several
-
trade
ma¬
quid
of
Commerce
ing plans create more political illwill in the non-pooled segments
such
dissolve
they
in
their
own
Over-all integration would
be worse,
meaning
a
fresh revolu¬
tionary shake-up of Europe, the
thing it can afford. The awful
last
tensions
internal
generate would
to
subside,
if
it
is
bound
to
At
'
that,
many
years
ever.
A Fallacious
problems
adjust¬
of
The
Union
ments between the Low Countries
rather than
between Norway and Denmark
are
minor compared with those
that
or
an
Anglo-German
FrancoGerman Union would pose. Entire
■
price,
or
is
a
*
and social se¬
would have to
revamped.
A customs union
any comprehensive integration
wage,
curity
be
or
a
farce
unified,
poses
tax,
structures
unless
which
that the
currencies
in
turn
payment balances
straightened out—the
Shortage is mastered, in
are-,
A
are
presup¬
Dollar
effect.
Union is to solve the problem,
the solution of which would make
a
Union possible!
What
about
the
the
same
a
is
a
as
su¬
a
Monsieur
was
assumes
population within
borders is
an
very
long.
Beyond
Dr. Paul
doubt
Einzig
the
of
appearance
Soviet gold in
Western
Europe is the most im¬
among
the
immediate
this
protect
risks.
support of
Washington and of General Eisen¬
Our official idea
that
was
the
of
France
additional
been
was
supply
than
more
a
suf¬
ficient to bring down the price to
par
with
price.
the
official, American
Hoarding demand declined
considerably and was more than
offset by de-hoarding.
rope's defense problem, but also
Many French holders of gold
Europe's economic problem.
appear
to have grown tired of
The European super-state is not
keeping their capital in such unonly an economic misconception, remunerative form. In
France in¬
but also a political monstrosity.
terest rates are fairly high so that
No
self-respecting nation, cer¬ loss of interest hoarded over a
tainly no major power, wants to
period of years amounted to quite
give up its sovereignty and sub¬
a considerable
item, in particular
mit
this
not
only
would
to the laws of
solve
Eu¬
multitude of
a
nations
guided
by different tra¬
ideologies. That is the
ditions and
fundamental weakness of the De¬
fense
Community, as it is planned
at present, the prime reason why
the
French
their
British
refuse
plan
own
to
underwrite
have
outset to participate in it.
short
of
the
and why
refused
from
—
another
war,
the
if the
of hoarded gold had
to borrow from their banks to fi¬
owners
or
of
their
nance
business, which they
for
because
retrenchment
but
the
If
be,
from
opposite:
European
a
a
it
is
not
a
sovereignty,
decisive step
restoring their sovereignty.
states
under
there must
army
federation
a
their
them
of
full
individual
European
observance
of
is
the answer.
True, an alliance of
armed forces operate with much
more friction than would a single
army under a single command—
if
such
in addition to loss of interest
they
their losses.
This
sible, and if it
were
were
pos¬
not fraught
factor
alone
would
of Russian gold
was in¬
though most of
the gold was offered in Paris the
psychological effect of this factor
pearance
ternational.
Even
influenced
There is
all
no
the
free
information available
least
sacri¬
Another factor of
tance
the
the
was
some
decision
Government
Africa
to
Lindquist With Bache
(Special
to The Financial
taken
longer
on
not
by
Union of
of the
South
impor¬
insist
"processing"
any
newly
mined gold—that is, its conversion
into objects such as plates—before
can
be offered
on
The cost of this
the free
mar¬
processing is
1%
so
that
the removal of this item made it
independence.
Chronicle)
automatic
cated
it
simply indi¬
private demand
strong
a
which
price;
could
not
be
satisfied
through withdrawals from the of¬
ficial gold reserves of the United
States or other countries. The de¬
cline
of
official
an
partly the
and
change
of hopes
for
in
increase of
an
the official price.
The
in
argument
of
favor
higher official price of gold
rested
on
mium.
the
existence of
a
never
a
pre¬
That premium would have
disappeared long
ducers
had
if gold pro¬
ago
been
allowed
at
any
time to take full advantage of the
higher price by selling their en¬
tire output in the free market.
The main arguments for a higher
price of gold
the need for in¬
are
creasing the nominal amount of
gold available for the settlement
of
international balances, partly
through writing up the existing
gold reserves and partlv through
stimulating gold production. If the
argument was sound when there
big
a
profitable
to
panies
for the mining
continue to sell
To some extent, however, the
disanpearance of the premium'is
likely to mitigate the shortage,of
gold for international monetary
purposes.
There
is
a
certain
amount of de-hoarding. Once the
price has declined to a point at
which producers find it no longer
profitable to sell their output in
the free market, the whole output
will
find
its
way
into
Assuming
reserves.
in
the
absence
of
demand
the
premium will not
Treasuries and Central
return,
will
output.
revival' of hoarding
a
able
be
reserve
to
increase
out of current
This is, however,
a
slow
It would be different if
there was de-hoarding on a really
process.
large scale. There is, however, no
sign of this.
In the absence of
large-scale de-hoarding the mone¬
tary authorities will have to de¬
pend on the new output and on
Russian
gold sales for the
strengthening
of
their reserves.
they might
any increase
While in the long run
succeed
in doing
so
that could reasonably be
from those
sources
expected
within the next
few years is bound to
irony of fate that, while
argument for and against raising
monetary
that
their
an
the free
in
com¬
gold in the free market.
It is
premium
validity.
Banks
reckoned to be about
the
American
the
increase of the official
an
their gold
it
at
The existence of
wide premium did not prove
sibility of further substantial sell¬
ing must be envisaged.
ket.
it
ing of the kind.
need for
ernment's gold stock but the pos¬
of every member trying to get the
of
markets.
about the size of the Soviet Gov¬
from the outset with the prospect
out
not
have brought about a noteworthy
decline.
The effect of the reap¬
sovereignties,
combination
a
price is high
In reality the decline of
enough.
the free market price proves noth¬
markets, the disappearance of a
premium
could
not
affect
its
swallow
so
firms their view that at its pres¬
ent figure the official
was
leading
countries of Europe to
the project; or to make
a going concern rather than to
sabotage it if they are forced
into acceptance
(such as by the
threat of withdrawing American
aid). If the Germans did accept,
of the de¬
they had not immobilized their
capital in the form of gold hold¬
ings. When it became evident that
are
exposed
to
capital
losses
through the decline of the price of
its
gold, many holders decided to cut
it
use
could have financed themselves if
Nothing
immediate threat, could move the
gold will make full
cline in the unofficial price to re¬
inforce their
arguments against
partly the abandon¬
to be offered in large num¬
came
have
hower.
op¬
ment
hallmark
would
It had the enthusiastic
that
demand
Bars with
sickle
buyer
to
its
of
army
inherent
expected
markets and
slump.
and
forthcoming German
independence,
and
the
be
bers in Paris towards the close of
this
of
hammer
Bank
from
to
price reflects
the supply
position in the free
the
that
France
is
re¬
Were it not for the fact
fallacy
It
panacea.
be relatively
moderate.
The position is, therefore, that
CHICAGO,
111. — Howard G.
has become associated the official American price of gold for years most countries will have
Russia under the last Czar had with Bache &
Co., 131 South La was vigorously pursued, the un¬ to continue to lead a precarious
better than the double of Ger¬ Salle Street.
Mr. Lindquist was official
price should decline to existence without adequate safety
many's
population
and
many previously with Cruttenden & Co.,
of gold reserves. This
the close vicinity of the official margins
times her raw material resources,
Mason, Mordn & Co. and Bear, price. The existence of a fixed state of affairs could be remedied
yet only a fraction of her indus¬ Stearns & Co.
price at which the United States with a stroke of the pen through
trial capacity. On the other hand,
devaluation of all
authorities are prepared to buy, an all-round
relatively small countries can be
low as it is compared with the currencies of countries belonging
With Reynolds Co.
very
prosperous.
Holland
and
to
the
International
Monetary
general price level, must now be
Denmark before the World Wars,
(Special to The Financial Chronicle)
reckoned as a great advantage to Fund. Unfortunately the chances
Belgium and Switzerland there¬
CHICAGO, 111.—Jordan E. Roth- gold producers. In the absence of of such a simple and effective
guarantee of greater productivity.
after,
illustrate
one-fifth
of
Belgian
colonies,
This
Com¬
federation of
a
It
ponents of higher dollar price of
a
fore
October.
fice of its
Theory
idea
enlarging
disappear al¬
together
be-
most
take
offers the greatest benefits to both
parts."
constructed
was
pre¬
would
Pleven's idea in order to strip the
minded Inter¬
-
Chamber
national
fields.
extreme
munity
toward
than
an
ever
is not likely to
without
it
same
ury.
"The failure of the plan (debated
for three years) to provide Den¬
is
France
The
European De¬
expensive to the U. S. Treas¬
Bulletin for Europe" (1952, No. 3):
mark with
of it.
the
quo's—one of which may be
pro
too
interna¬
warned that such piecemeal pool¬
For another
read
terializes.
its
could
supra-national ar¬
How it will function
what the member-
ing
mid-1951, since Dutch
accepted
a
wage-freeze)?
few
a
a
rangement.
depends
the
fact,
in
no
it
And
not
In
bureaucratize
to
fashion
before.
tional,
much-
the
Pool, is not the
Pool
do
market,
common
guilder (which has been harden¬
since
foreign
a
of
defense of the much softer Dutch
labor
Defense
as
portant
-
a
Europe
put
national,
"efficient"
planning might reduce the last
vestiges of free competition.
supra
time
reserves—one
way
To
Leffingwell, in "Foreign Affairs,"
January, 1950.)
months
>
its
foreign
nations would be suicidal." (R. C.
field
postwar
the
upon
committee
or
terchangeable "at par."
lar
gov¬
of
exercised.
is
should
But why
Belgium sacrifice its dol¬
expendi¬
any
welfare
depend
control
nation
distrust
important:
currencies
that
and
the
and
these at the
excises
common
a
life of
very
ferences
habits
taxes
common
tures.
citizens,
in
be
without common sover¬
eignty and a common parliament
took years, to agree on duty rates;
harder to straighten out dif¬
still
sumption
European
the
mium
causes
The
the members.
the
if
national
Community Weakness
per-state, not just
on
ing it looks
*
borders, provided that the prin¬
ciple
of
international
competi¬
tion is accepted by the respective
nations (which it is not).
Defense
figure of $35 has
increasing the official price. They
buying will
doubtless argue that the dis¬
price. At the
appearance of the premium con¬
time of writ¬
with
beyond
Ameri¬
of¬
the
can
exhibits
are
the
ficial
bar¬
population size—India and China
Belgium?
Given Eu¬
rope's mood, and London's leader¬
event,
Even economic Federations
into
Currency?
above
riers do not stop it; the broadness
of a market is not a matter of
broadened
latter
Failure
exactly 2%
after
even
been reached.
Western
$35.70. This is
commercial
and
of
Europe and in Tangier declined to
monetary
arduous the process was even then
ship,
lot
peoples—millions
of them—that is another
markets
the
of
XVIIIth
it
consump¬
free
expanding the outlets if excessive
Swe¬
say,
the
international
domestic
underlying conditions
the differences in liv¬
ing standards between,
den
well-
Asserting the reappearance of Soviet gold in Western Europe
is "beyond doubt" the most
important of immediate causes
of recent slump in gold price, Dr.
Einzig sees in it a discourage¬
ment to French gold hoarders and a
disappearance of the
gold shortage for international monetary purposes.
policies
directing
spending down
their own alley. Partnership with tional sentiments to be overcome is tne prime condition of broadenthe poor, with the voting power is sheer soap-box oratory. It will ing the market, not the other way
vested in a majority of Have-Nots, not bring down the walls of Eu-, around.
And the market can be
sure,
French
By PAUL EINZIG
in¬
any
raising
those
as
in
national
-
may be as adverse to
nothing of
say
participate
limits
dustry;
with
ties
Slump
not
definite
insula\tendency of the British
in
to
Britain's
and
Empires, to
who
tax¬
our
democratic
a
Italians would
State.
our
This is what Integration
payers?
the
—
the
at
kets
To broaden
their
guidepost
like
we
France's
The Cold Price
points
are that: efficiency
simply a matter of pro¬
duction volume, certainly not in
all
industries, and not beyond
is
labor
higher
the
point.
With
Britain's
population,
records
much
productivity,
proportion¬
Lindquist
bart
has
become
connected
with
the official American buying
Reynolds & Co., 39 South La Salle
there would be
Street.
the
gold
a
slump
price
real danger that
might
solution
ment
of
the
balance
of pay¬
problem are now more re-
continue mote than ever.
28
The Commercial and Financial Chronicle
(1856)
the
mild
traffic
for
winter
nine
September
matched
months
While
year.
costs
railroad
attention in recent weeks
has been Lehigh Valley common.
revival of interest in these shares
the
expectation that
their meeting toward
growing
directors at
the end of November will declare
were
controlled
some
composition in recent years and sumably business will be off in
there has been considerable indus- the final quarter unless the winter
trial expansion along its lines, is ushered in with lower tempera-
Lehigh Valley is still quite heav- tures than prevailed late in 1952.
anthracite coal
Even at that, earnings for the full
last year this commodity' made up
year should not drop much below
16% of total freight revenue. Thus,
before sinking funds
early in the current year the com- the $4.81, before sinking lunds,
pany was adversely affected by realized last year.
dividend, or perhaps put the
on a regular quarterly divi¬
dend basis.
If they do, it will
rnark the first distribution made
£t
<etock
this year the
Municipal Bond Dealers Oppose Use of
Public Credit for Promotion of
Prior to
1931.
the stock since
on
had been
from paying
*tny dividend because of the heavy
linking funds and bond retirement
company
barred
effectively
that were imposed as
part of the road's voluntary debt
readjustment plan of 1948.
Under
the
readjustment plan
there was set up a prior lien sink-
The State oi Trade and Industry
just
preceding
transportation
for this ily dependent on
One of the major reasons
sts
through
higher and share
earnings dipped to $3.42 from the
$3.65 reported a year earlier. Pre-
Lehigh Valley
blocks that has been attracting in-
well
Continued from page 5
the
the
were
and
revenues
of
other costs
One of the lower priced
maintained
gross
those
Other
weather.
well
was
the
Industry
.Thursday, November 12, 1953
..
strongly, advancing for four consecutive weeks.
"The Iron Age"
steel scrap composite price was unchanged this week, the first
week it has failed to change in more than three months.
But
weaker tone suggests it might shade off again if mills don't aug¬
ment their stocks, this trade weekly further states.
In the automotive industry, the new car market is currently
highlighted by a return to old-fashioned, prewar, toe-to-toe battle
for sales.
Competition has fully returned.
This is characterized
currently by Ford's struggle with Chevrolet for top place, accord¬
ing to the opinion of the "PF Automotive Digest," automobile
and sales finance monthly round-up of
It
states
further
industry
news.
that, since the end of the
war, production
problems have been paramount, and relative sales standings were
dictated largely by ability of factories to produce.
While there
has been price discounting, over-allowances from time to time
during recent years, conditions generally were satisfactory. It now
believes that all dealers are engaged in real
selling efforts.
Sales,,
and sales alone, will dictate future production
schedules, it declares*
The "Digest" notes that some dealers
already are complaining
loading more cars on them than they cam
profitably, adding, that next year will see competition at its
heights, and some interesting shifts may take place in percentage
about
manufacturers
sell
New Officers of Securities Dealers of the
Carolinas Elected
of the market.
program
fund of $600,000 and a general
linking fund equivalent to 50% of
net income plus an amount equivtalent to any dividends paid. This
second sinking fund was to be cut
-stng
Members of the North Carolina
Municipal
Carolina
the
Council,
Municipal
Securities
Carolinas
Atlanta, Vice-Chairman;
E.
B.
Wulbern, of R. S. Dickson & Corn-
South
Council
Dealers
their
at
the
and
of
joint
Charlotte; R. P. Edmunds,
pany,
the
the
of
meeting
South
Carolina
reached
was
late
De-
in
cember, 1952. In accomplishing the
^inal stages of the program, however, the road depleted its cash
position so that immediate re¬
sumption of dividends was not
feasible.
To
considerable degree
c
has now been cor-
a
this situation
reeled, giving rise to the present
Jiopes
that
the
long
dividend
drought may be ended shortly.
Bonds
"well in
retired
were
at
rate
a
of the
require¬
ments of the two sinking funds.
Xt is indicated, therefore, that a
linking fund credit of somewhat
oyer $20 million exists to cover
excess even
jrequirements
for
many
Aside from this debt situation
there
two
are
other
address
The
f
factors
of
the
on
PnVdfe
"Proner
Use
the
of
Carolina
S
Univershv
als0
the
company's
claim
Security." He emphasized the
for support of the free enterprise system as the base of our
need
cpr»iirit\7
nf
1
he
capacities
J1
are:
pointed
In
Assistant
Sales
ropolitan
New
York
From 1942 to
1945
-•substitute
Millard
ager
was
the
-should
be
settled
This
in
the
matter
not
too
distant future.
From
anooeratinv
SelT VaUev
*mgn valley
cent
almost
In
contributorv
certainly
re
re-
in
One of the most
years.
Dortant
standnoint
has come far
nas come far
lm-
factors
been
has
lias
no
steam
r. Vance
power.
substantial
.,
■p,
i
Vance
While
the
improvement
nearly 47% of 1947. Moreover, the
has
continued
in
the current year. The full breakfor September is not yet
«Iown
available but for the eight months
through August this all-important
ratio was further pared by almost
a
full
-cation
t,
Of
of
thp
the
u
j*
...
area.
,T
R.
Vance
*
of
Greenville; Secretary Marshall
Johnson of McDamei Lewis and
Company,
until 1949. In that year he
appointed Sales Manager for
entire Bourjois organization.
appointed
Manager of Har¬
Ayer Division of
Sales
Hubbard
was
Brothers, Inc. with headquarters in New York City. He
served in this capacity, directing
nation-wide
a
sales
organization
man Kodak, Du Pont, General
Motors Standard Oil [New
Greensboro; and Treas- Jersevl
urer
Rov
Hunt
Tr
MpqW
nf
was
rTVi
established
i
r««unt, Jr., ot Alester Only last
North
Board
of
Carolina
^consists
Municinal
Conn
s. Dickson &
Company, Charlotte, Chairman; Charles R. Vance
Vance
Securities
Greensboro,
B.
Johnson,
Corporation,
Vice-Chairman;
Jr.,
of
i
in
The
of
Breed
T.
1938
r
qSESv
nan!)
Tht
Plan
^umDy rAan*
With
and
Cincinnati, Secre-
(Special
Gallagher-Roach
to
The
Financial
Chronicle)
COLUMBUS, Ohio—Howard W.
is now with Gallagher-
Roach and Company, 1683 West
? .JT-_
™
2,
'
•a1n'
T
Mc.DanieJ Lane Avenue.
®
McDamei Lewis and
^P ^Q^e^s^ro".
*oar* °* Dir.e?t0?Uof th*
roudl Carolina Municipal Council
With Revnolth? & Cn
.,
Mark A- Smith of
F. W. Craigie and Co., Richmond,
„
Peter
of
Reynolds <& Uo.
Darlington has become
associated with Reynolds & Co.,
120
Broadway,
Howard C. Traywick members
Company
weeks
ago,*
was
makers
car
drop
a
5%
of
last
from
week
turned
out
the
123,776 in the
built in the like
compared
and
with
105,042
United States Department of Agriculture
1953 cotton crop at 16,093,000
currently esti¬
bales, ;an increase of
the
Senate
group is reported
boost allotments to
would
Georgia, Exchange.
to have agreed
21,000,000
legislation which
on
acres.
Steel Operations Scheduled
Slightly Under
Weekly Rate
Previous
The
the
correct
the
shakeout
in
the
steel
has
market
about
run
its
course,*
historically accurate bellwether—the scrap market—is
again, says "Steel," the weekly magazine of metalworking,.
week.
current
Usually, if scrap prices decline, the steel business is in for a
slowdown, and if scrap prices strengthen markedly, you cans
look for steel demand to plerk
up.
The
by
present letdown in demand for steel
was
foreshadowed!
that started in steelmaking scrap prices in August*
descending for six consecutive weeks, scrap prices turnecB
drop
a
After
upward and for five consecutive weeks have strengthened, with
result that "Steel" magazine's price composite on steelmaking
is now $35 a gross ton, compared with a low mark of
$31.50 five weeks ago.
a
grades
The five-week
below
upturn still leaves the composite considerably
August high mark of $44.17, and that would suggest
the
that
demand
this
year,
If
for
steel
continues
the
rise
in
will
this
not
trade
hectic
pace
early
of
publication.
prices doesn't
scrap
the
resume
point to
in demand for steel, it perhaps suggests
in steel demand won't go much further,
a
strengthening
that at least the decline
adds this trade weekly*
Already, there is evidence that order cancellations and de¬
ferments have subsided.
In
some instances, some of those orders
Grace, Chairman of Bethlehem Steel
Co., the nation's second largest producer of steel, believes that
have been reinstated.
the recent
of
sees
In
the
on
order
likelihood of
no
steel.
of cancellations—which still left
wave
business
fact, Mr.
He
E. G.
a
Grace
bases
books—has
new
looks
much of his
for
about
of
wave
run
heavy volume
its
optimism
He
course.
cancellations, "Steel"
continued
a
a
active
business
says*
market
in
his
company just completed.
Among conclusions it came up with
are: the automobile
industry is planning for a good year in 1954;
the outlook for construction is strong, and railroads are
going
to increase their purchases for
ordinary operations. The survey
found nothing that points to trouble.
on
a
survey
The American Iron and Steel Institute announced that the
operating rate of steel companies having 93% of the steel-making
capacity for the entire industry will be at an average of 92.8 %
of
capacity
2,092,000
(revised),
for
tons
or
the
of
week
beginning
ingots and
2,096,000 tons
a
steel
week
Nov.
for
ago.
9,
1953,
castings
as
equivalent
against
For the like week
a
to
93.09k
month
ago the rate was 96.3% and production 2,172,000.
A year ago
the actual weekly production was placed at 2,215,000 tons and the
_
,
two
as
497,000
inT/7?'
navroll "deduction" to" thai
pm1"
payrou ?ea.uctl0n to their em-
ofThJw^^TtAthR' Nlaho££ Corbin
r
«
WuLrno'f sfareT oTSSIk
B
R
of
:i
month Eastman Kodak
Greenville. Company offered the convenience
Directors of the
of E
last
mates
as
Corporation, through 1952
Greensboro; Vice-President, EdThe Quinby Plan for Accumugar M. Norns of Edgar M. Norris,
lation of Individual Stocks
(East-
AAmnpenv^1VfrSff-" of Trust
C-hairmani
traffic
company s
„
Charles
if ^?rmpos^d.
point.
«iru-i
City
he served
Securities
^rthe°«.7%UratVTT979annd "ailison' Incfavorable trend
r0y f. Hunt, Jr.
.
President,
The
transportation ratio at 38.9% last
year was somewhat higher than
the industry average of 36.9%, it
Showed
charies
same
year.
Lever
.u°rS„_S G. Furman Company,
the com-
prehensive dieselization program.
This was completed just about two
years ago and the company now
Manager
Assistant Sales Man¬
was
General
as
facilities.
'
minesweepers. Returning
Bourjois after the war, Mr.
to
the
possible
$7 million,
-a part of which, however, would
presumably have to be used on
;..6
mand of
riett
high
week,
that
out
This
week
if
Lieutenant in the Navy in com¬
a
pany's property in Buffalo to the
Thru way Commission. Some estiplaced
1
ap-
In 1951 Mr. Millard
as
points
units.
em-
1934
District Manager of the met¬
and
-
are
week, about the
But Ford, Chevrolet and
Plymouth will maintain their lower
production schedules this week, so the industry's overall output
should show little pickup from last week's reduced rate.
in various
until
VSS.Advertising
1936
he was
X\as
Manager.
apparently still going on with recpect to sale of some of the com¬
have
was
pioye(j by Bourjois Inc.
New officers of the Secun-
Under the terms of the
price
this
cars
A
graduation,
lndiVjdaal Sr°ups, officers
Germany is to pay
JLehigh Valley a total of $6.5 mil¬
lion additional, spread over a pe¬
•xiates
notes.
over its forecast a month earlier.
In view of the pro¬
spective large supplies, Secretary Benson has set allotments for
1954 cotton plantings at 17,900,000 acres—about a third less than>
this year—on which cotton growers will vote Dec. 15. The Sec¬
retary has been under heavy pressure to raise the acreage quota*
were selected for the forthcoming executjve
agreement
«ales
500
about
it
sales
^r' ^^^MiUard" attended
against
Negotiations
of
uated from Yale University in 1930.
After
ties Dealers of the Carolinas
•
begins turning out its first 1954 models, after being
down for four weeks due to
delays in re-tooling for the new
cars.
Hudson, idle last week for inventory, has scheduled output
preceding
Nelson
reports
1
operational
the Black Tom explosion of World
War I was agreed upon earlier
riod of 26 years.
—
haS j°ined the
qnH
and
hntta
no+inrial
of
both
national
international levels.
Following
changeover.
Packard
£
i-fAllCSt
±5.
lVilllaiClj
allCnClGCl
Rochester schools and was grad-
Oermany for damages sustained in
this year.
1
&l0CKS-
and
year.
model
and
Accumulation of Individual
addressed
usTns a's his theme the
"PrevSa Demand fo7 Safety
groun
security
Millard
s^a^ °f Quinby & Co., Inc., 183
East Main Street' 11 was an~
nounced by H- Dean Quinby, Jr.,
President of the firm and originator o£ The Quinby Plan £or
Rus-
potential interest from the finan¬
cial viewpoint.
Final settlement
of
ROCHESTER, N. Y.
of
W-
Honorable Donald
£
JL
Among the independents, Kaiser was idle during the sum¬
and early fall,
and the others were down for different
periods of time because of parts shortages, inventory dislocations
mer
"Ward's
rrpdh »
PreTdent
sell
'
car
117,573
Quinby & Co., Inc.
into the production picture in full this week
Willys return to operation.
and
This marks the first time in 4J,£ months that all six
independ¬
makers are in production at the same time it states.
ent
Gill, Treasurer of the State
0f North Carolina, stressed a simijar sentiment in his interesting
years
ahead if the company elects to use
it.
Nelson Millard With
Edwin
back
come
Packard
as
National
Bank,
Charleston;
Keating
L.
at
Mid
Pines,
near
Pinehurst, Simons of Huger, Barnwell
&
n.
C., on Oct. 26, 27 and 28, Company, Charleston and Thomas
adopted a resolution expressing T. Moore of G. H. Crawford Cornopposition to the present trend pany, Inc., Columbia. W. Kelvin
to 25% of net income and 50% of 0f
using public credit for the pro- Gray and W. Herbert Jackson
dividends when the aggregate of motion of
industry of a private were re-elected President
and
$!ixed charges and contingent in- 0r
semi-private nature. The groups Vice-President
respectively,
of
terest was reduced below $4,500,expressed their concern at the both the North Carolina Municit)00.
Following consummation of
tendency of some local units to pal Council and the South Carothe plan
the management em- iSSue
municipal tax free securities lina Municipal Council,
barked upon
a
very
aggressive t0
provide facilities as an induce-program of debt retirement as a ment to new industries to locate
result of which the goal of $4.5
their vicinities. The Honorable
million
According to "Ward's Automotive Reports," independent auto
makers
New
York
Citv
of the New York Stock
operating rate
was
106.6% of capacity.
the current year are based upon the
The percentage figures for
capacity
as
of Jan. 1, 1953, the
rate this year being higher than last year.
Electric Output Trends Higher in Latest Week
The amount of electric energy distributed by the electric
light
and power
industry for the week ended Saturday, Nov. 7, 1953r
Volume 178
Number 5272
The Commercial and Financial Chronicle
...
(1857)
estimated at 8,397,523,000 kwh., according to the Edison Elec¬
was
tric Institute.
•
The current ngure represents an increase of 35,930,000 kwh.
above that of the preceding week, and an increase of 590,728,000
kwh.,
kwh.
7.6%,
or
the comparable
like
week
the
over
Car
over
in
1952
week
and
Loadings totaled
780,863
cars,
a
decrease
of
Automobile
cars,
or
previous
week,
of
the
latest
week
declined
below
5%
to "Ward's Automotive Reports."
117,573 cars last week, compared
with 123,776 in the
previous week. A year ago the weekly pro¬
duction was 105,042 cars.
out
United States truck production last week totaled
13,970 com¬
pared with 14,594 the previous week.
A year ago truck output
was
29,212 units.
Canadian
companies made ,3,568 cars last week, compared
5,999 in the previous week and 6,803 in the like 1952 week.
Truck production amounted to 905 units last
week, against 942
with
week
before and
2,553 in the
year
earlier period.
crash
Dip Slightly From High Point
Although slightly below the high established a
remained considerably above the 143 and
casualties
150
occurred
in
the
comparable weeks of
However, mortality continued to be down 23%
level
of
269 in
1952 and
from the
1939.
26 from 29 but
slightly above their 1952 toll of 22 for the similar
Twenty-three businesses failed with liabilities in excess of
$100,000,
as
against
the
18 in
previous week.
failures, including the
States, down to 20 from 26, and New England,
down to 5 from 15.
However, casualties continued to rise in the
five other regions. The Middle Atlantic toll climbed to 79 from
73 and the Pacific was up one to 65. More concerns failed than a
year ago in all regions except the New
England and Mountain
States, with notably sharp rises from the 1952 level in the Middle
Atlantic, South Central and Pacific States.
A
street
Dip
drop last week lowered the Dun & Bradwholesale food price index from $6.49 on Oct. 27, to $6.48
further
mild
3, a new low since May 26, when it stood at $6.47.
Although the current figure is down 4.0% from the year's high
of $6.75 on July 21, it is still 2.9% above the comparable year-ago
Nov.
index
of
$6.30.
foods in
represents the
general
use
been
next
estate
during the last
equities in the stock market
so
ing
policies,
that
sum
total
of the price per pound
wholesale level.
Continuing the mild upward trend of recent weeks,
the daily
compiled by Dun & Bradstreet,
Inc., rose to 292.76 on Oct. 29, the higbesUevel in four weeks. The
index finished at 271.74 on Nov. 2, comparing with 272.73 a week
previous, and with 286.15 a year ago.
Cash grain markets displayed irregular trends the past week.
Wheat showed considerable strength at times despite rains over
the Winter wheat area which improved 1954 crop prospects. Coun¬
try offerings of wheat continued heavy with much grain reported
going under loan. There was a fairly active demand for corn;
prices trended somewhat easier at the' close as market receipts
increased sharply over a week ago.
The market for rye was rela¬
tively firm, influenced by sharp advances in that grain in the
Winnipeg market.
Purchases of all grain and soybean futures on the Chicago
of
Trade
last
week
rose
to
a
daily average of 53,300,000
bushels, from 49,600,000 the week before, and 45,000,000 a year ago.
Business
mouth
in
the
basis
domestic
shipping
although
market
flour
provement.
Bakers and jobbers showed
directions showed
•'
""
'''
were
a
on
hand
a
some
obligations when they
required to come up with
money to cover their losses.
small
and
exist
today
ment
in
the
because
stock
the
in
the
the
real
exact
estate
This
'•
shade easier.
•
re¬
slightly at 88,909 bags, against 89,574
earlier, and compared with 73,726 a year ago.
Trading in the domestic raw sugar market was rather slow
although the price undertone held firm.
on
prices noted in southern
Brazil
coffees
were
steady
pres¬
areas.
while
Columbian
grades
states,
are
,
if
not
would
one
extreme
an
ings
thinks
one
due
sold
at
peak levels of around 65 cents
for
the
stock
unless they have
finances
to
make
the
necessary
market
payments.
The home
owners
export account and expectations of continued high loan entries.
Cotton
placed under loan in the week ended Oct. 23
459,000 bales, the largest volume reported in
any
week
he
is
the
not
was
predicting a crash ot
variety, but explained!
1929
that Americans
must
take
a
long
view in considering business con¬
ditions.
"With our type of econ¬
must go through periods
adjustment every few yearst
as
part of our growing pains.
During these periods of threat
Americans must pull in their belts
omy, we
of
have
confidence
country will
that
our
back bigger
bounce
stronger than ever."
rose
to
Total entries
through Oct. 23 at 1,839,000 bales, were also the
season.
Trading in the ten spot markets
slackened with sales reported at 240,700 bales for the week, against
305,800 the previous week, and 381,200 in the same week a year
(Special
price tone
evident in
was
some
cloth constructions.
T„
Mason Bros. Add
(Special
of Christmas
more
was
than at this time last year and most
that
would
they
Raymond
—
with
now
Mason
of
members
the
Francisco
San
Stock Exchange.
Continued
from
retailers continued to be
sales figures of
The 1953
Ciop
Situation
con¬
the
1952
was
esti¬
8
page
in evidence in promotions
the record
top
is
Smith
Chronicle)
Financial
Brothers, Central Bank Building;
Higher Levels With the
of the past year.
The theme
The
to
OAKLAND, Calif.
L.
As seasonally cool weather came to many parts of the nation,
shoppers increased their spending perceptibly in the period ended
on
Wednesday of last week.
With the help of many attractive
promotions and easy credit terms, most retailers were able to sur¬
pass the sales figures of a year earlier, as they have done during
fident
Chronicle)
Financial
Mass.—Theodore
Minot, Kendall & Co., Inc., 15
Congress Street, members of the
Boston Stock Exchange.
easier
an
Advent of Cooler Weather
most
The
to
BOSTON,
record for the
on
Demand for cotton gray goods continued slow and
ago.
With Minot, Kendall
Whitney, Jr. is now affiliated with
record.
on
gift-buying season.
dollar volume of retail trade in the week
The total
mated
& Bradstreet, Inc., to be from unchanged to 4%
higher than the level of a year ago.
Regional estimates varied
from the comparable 1952 levels by the following percentages:
by Dun
Midwest -fl to -f-5;
The
Northwest and Pacific Coast -f-2 to -j-6.
in
interest
apparel
the
rebounded
past
week
the
children's
outerwear.
Cotton
large
spite
crop
spurred by cooler weather, the buying of food
slightly in most sections the past week.
Housewives con¬
tinued to spend slightly more for food than they did a year earlier.
rose
The most marked year-to-year
accounted for
markets which
a
gains
were
achieved by
super¬
steadily rising share of total food
volume.
mixed; some cities
notes strong demand while in others interest was torpid.
In most
sections, radios, bedding, floor coverings and decorating materials
were among the best selling items.
There
little
was
variation in
trading in most of the
nation's
realized.
buyers remained chary of adding to their stocks.
The
volume of wholesale trade was approximately equal
to the high level of a year before.
Toys and holiday novelties
request
is
being fullyindicated yield of
cut,
The
15,596,000 bales
compares
with the*
averageof 12,215,000
bales. Including the Aug. 1 carry¬
of
5,500,000 bales, total
sup¬
plies for the 1953-1954 season will
be
around
domestic
cated
lot
A
exports.
bales,
21,100,000
about 10,000,000
this
season.
pay
for this
cut
in
the
or
bales above indi¬
consumption and
planters
of cotton
loans
Government
demand
farmers
Cotton
splurge
1954
by
a
national
will
sharp
cotton,
allotment.
acreage
wholesale markets in the period ended on Wednesday of last week
as
would be planted, de¬
sharp
a
will
The interest in household goods was rather
by-
longer
crop
Government's
the
over
With appetites
the
My earlier cotton forecast that
1942-1951
Increasing in popularity last week were most items
with the sharpest gains scored by retailers of women's coats and
followed
be
over
,
for
lag.
should
recovery
term.
a
from
rice
and
some
0 to -j-4; East and Southwest —1 to +3; South and
Farm
Outlook
Price
many
total
Although I expect total cash re¬
dollar
in
were
demand.
record
Department
the
Oct. 31,
store
Federal
sales
Reserve
on
a
country-wide
Board's
index,
for
basis,
the
as-
taken
ended
week
1953, decreased 2% from the level of the preceding week.
previous week, Oct. 24, 1953, a decrease of 7% was reported'
from that of the similar week of
31, 1953,
Oct.
a
ceipts
from
decline
decline of 5%
was
1952.
For the four weeks ended
reported.
For the period Jan. 1
weather in the mid¬
aroused from its lethargy and advanced to a
Retail trade volume stimulated by colder
dle of last week
was
level slightly above the
totals for the similar period in 1952.
According to the Federal Reserve Board's index department
store sales in New York City for the weekly period ended Oct. 31,
1953, registered a decline of 6% from the like period of last year.
preceding week Oct. 24, 1953, a decrease of 8% was reported
from that, of the similar week of 1952, while for the four weeks
In the
1952
period.
period
that of
to
1954, they
whole should continue to prosper.
However,
-
sections, * like
certain
Kansas, the dairy states and
of
the
Southwest,
The
2% above 1952.
marketings
farm
moderately in
still will be sizable. Farmers on the
31, 1953, department store sales registered an increase of
the
and
and
prices worked sharply lower.
influence
consequently their
entire income, while the laboring
class manage to get odd jobs here
and
will be faced
ended Oct. 31, 1953, a decrease of 4% was reported.
For the
Jan. 1 to Oct. 31, 1953, a decline of 1% was registered from
bearish
build¬
a
a pound.
The rise was attributed to
limited spot supplies and improved inventory demand.' Lard was
under pressure of increasing production and slower demand and
A further
have
dreamer, Cope¬
drop in
days of high rentals.
Commercial buildings are even
in a worse position. A 10% rental
drop can wipe out owners
of
in 1927-28-29.
the
and
their jobs and
in hog values to the lowest level since last February as
the result of heavy marketings.
Cattle and sheep finished higher.
Spot cotton prices edged slightly higher last week.
Strength¬
ening influences included increased price-fixing for domestic and
a
week
some
payments
amortization
apartment
these times, the middle class lose
the drop
Oct.
light with
And
sale.
be
private
conditions
vast
of
these
Copeland,
In the
Export flour trade
In the refined sugar market, sales were
monthly
land
because they
have discounted present and future
to
down
is
these properties
to
from
re¬
Cocoa was more active and prices continued to
higher, aided by an improved demand by manufacturers for
supplies and firmness in producing countries.' Warehouse
were
small
low down
ing
mained dormant.
cocoa
to
dangers in the stock mar¬
ket are minimized today, accord¬
move
stocks of
labor
and
Prices
to
equi¬
as
due
tress
were
market
position
was
the
save
there to eke out a living.
For
these
reasons,
Copeland
buildings in relation to rents are feels that the first barometer for
in high ratio.
If there is a 10% the next depression will be the
drop in rents, blocks of apartment reaction of the real estate market.
buildings would be up for dis¬
Mr. Copeland emphasizes that
govern¬
requires at least 50%
but
materials
payments.
mar¬
not
ket
a
in high mortgages, and
equities in all real estate are
the
more
does
can
earnings majority of these homes. This is
especially true of the middle clasy
reflected
over-extended and could not meet
im¬
little willingness to anticipate
quirements beyond immediate needs.
Prices generally
remained
earnings and in the
salary decrease, only a
a
recent
wholesale commodity price index,
Board
to
of
lethargy of recent weeks when unseasonally mild weather dis¬
couraged many consumers.
Many retailers anticipated a strong
revival of interest in apparel in the coming weeks to offset the
Commodity Price Level Drops Following
Early Gain
Wholesale
relation
runaway
building
were
their
low-
has home owner, whose
payments are
inflation for higher and who are more likely tc
things are about be unable to make these stiff pay¬
big change. Inflation of ments when recession comes. In
on
due for
were
buyers
other
several years and
small due to loose margin buy¬
and its chief function is to show the
general trend of food prices at the
sure
the
real
and
propositions, the
payments
are
high in
very conservative.
But the real estate market
forth
by Mr.
theory is that
depression the
this
New England
index
The
31
spot
for
regions reported slightly lower
Wholesale Food Price Index Reflects Further Mild
to
in
to
are
Trade Volume Lifted to
East North Central
of
firm,
set
reason
year.
©n
Copeland
large Southern Cali¬
first and not the stock
market, as
in 1929.
highest
Manufacturing and trade accounted for the week's small
decrease; casualties of manufacturers dipped to 47 from 49, of
retailers to 90 from 103, and of wholesalers to 19 from 21. In
contrast, construction failures rose to 31 from 26, and commercial
service to 20 from 19. All lines had heavier mortality than last
Four
loans
payment
monthly
case
emergencies in *
With so manj*
sapie
market.
home
down
1951.
prewar
Failures involving
liabilities of $5,000 or more declined
slightly to 181 from 189 last week, but exceeded^sharply the 121
of this size a year ago.
A dip also appeared among small casu¬
alties, those with liabilities under $5,000, which were down to
week.
con¬
weak factor,
as
Copeland, quotations in relation
C.
The
Commercial and industrial failures dipped to 207 in the week
Nov. 5 from 218 in the preceding week, states Dun &
ago,
which
C.
J.
come
stock market
ended
Bradstreet, Inc.
will
ties,
Of Previous Week
week
J.
the
Company, a
factoring
is
Business Failures
to
of
Copeland
according
industry turned
According
President
The
Drops 5% Below Preceding Week
output.for
market
the
deflated
moratorium
below
U. S. Auto Output
Southern California factoring
already largely discounted future
fornia
81,253
a
to runaway real estate
stock market has
with
GI
downturn and is buttressed
by 50% margin requirement.
the corresponding 1952 week, and a decrease
56,754 cars, or -3.8% below the corresponding 1951 week.
the
points
whereas
ing to the Association of American Railroads.
The
Copeland, head of
cern,
1951.
freight for the week ended Oct. 31, 1953,
2.9% below the preceding week, accord¬
revenue
decreased 23,550 cars, or
the
J. C.
1,001,408,000
Loadings Fall 2.9% Below Preceding Week
Loadings of
9.4%
Says Next Crash Will Come First in Realty
2$
problems
and
a
of
workable
surpluses
farm
and
fair
support program remain
Hard
work,
putting ot
the national interest above
tion.
I
group will
will
situation
paper.
in
price
unsettled.
cost cutting, promo¬
tional programs, and a
any one
parts
suffering.
are
discuss
a
that of
speed the solu
later
the
livestock
issue of this
±
30
The Commercial and Financial Chronicle
(1858)
LETTER
Blalack Adds to Staff
THE
TO
...
Thursday, November 12. 1953
EDITOR:
*
r
1'
(Special to The Financial Chronicle)
SOUTH
ir
Jack
G.
lack &
now
Finds No
Mutual Funds
Calif.-
PASADENA,
Quade is
with Bla¬
Easy Way to Select
"Best" Mutual Fund
Co., 700 Vz Brent Street.
By ROBERT R. RICH
a mutual investment fund
in the
reported
institutions,
NATIONAL
.
Milan D.
STUDY of the finances of 1,000
A
cur¬
"Long View," shows that the
rent
between tuitions and the cost
educating continues to widen.
gap
SECURITIES
of
"One
make endowment dollars work
to
WRITE FOR
harder
FREE INFORMATION
substantial
through
amounts of common
FOLDER AND
colleges
step
important
invest¬
stock
ment, to increase current income,
PROSPECTUS
investment
income
a
keep pace with prices
and to give capital a chance to
grow in value."
to
give
chance
NATIONAL SECURITIES &
CORPORATION
to
"The
120 Broadway, New York 5, New
issued
View,"
Long
Established 1930
by
Ridge Mutual Fund, Inc.,
five shortcomings in judg¬
stocks.
PROSPECTUS
NEW
uted
by
Mutual
reports
that
2,500 differ¬
prospectus
are
over
now
companies
electronic
equipment.
mately
there should
and
television,
75
of
a
their
threefold.
almost
vestments
cites
University
Harvard
in¬
stock
common
Cn
It
as
an
outstanding example of how col¬
months ended
electronics
fore,
thoughts
new
in
counted for 62%
mutual
dowment
Just
investment
as
most persons share
the
with
ONE
WAlt
portunity
rrfrs -v -/BUiLOCK
-'
"CALVIN
for
income
more
NEW YORK
—m
»ill
urn
—»
•mmmmmmm
no
market
National Securities Series
obligation please send
prospectus on Canadian f und.
a
Straight Oscar
the Bronze Oscar for the best An¬
Report in the Mutual Fund
Industry has been awarded to Na¬
tional Securities Series.
Address.
The
Oscar
presented
was
to
Henry J. Simonson, Jr., President
City
Corporation,
at
the
Annual
Awards
Banquet
held
on
the
evening of Oct. 26 in the Grand
of
the
Hotel > Statler,
New York. Over 1,400 executives
V
Ballroom
attended the dinner.
K, tystone
The panel of
final
Dr.
Custodian Fund!
judges making the
was
headed
by
selections
Pierre
R.
editor of
Analysts Journal." He was
assisted by Samuel B. Jones, Pres¬
Bretey,
"The
ident of "The National Federation
BOND, PREFERRED AND
COMMON STOCK FUNDS
of
Financial
Elmer C.
Analysts Societies";
Walzer, financial editor
of the "United
Lytle,
Street, Boston 9, Mass.
Please send
your
director
counts";
Griswold,
Denny
pub¬
lisher of "Public Relations
me
prospectuses describing
Organization and the shares of your
Funds.
ten
research
of the "American Institute of Ac¬
Keystone Company
50 Congress
Press"; Richard C.
assistant
D-78
News";
and Hollis Holland, authority on
design and calligraphy.
The
initial
Name...
screening
of
the
qualified reports was handled by
Address,
a
20
to
financial
ana¬
lysts under the direction of Sidney
B. Lurie, President of "The New
State.
Gty
committee
York
Society of Security Analysts,
Inc."
is
the
principal
con¬
sideration.
of
for
"However
for
sons
ment
there
to
be
of
good
are
expecting
the
considered
are
typography,
paper,
selling
for that
points and
often creates
inaccurate
an
The idea that there is
"best"
ing the
looking
at
charts is
Mutual Fund by
few figures
and
a
and should be
erroneous
relatively mild
orderly character. The econ¬
and
be
can
It
become
may
a
boomerang which will plague the
entire
industry
future.
•
sometime
the
in
obtained
herence
data presented
the
are
but
accurately
com¬
their
interpretation
should not
be left to the half in¬
piled
and
prejudiced
highly
formed,
back?
and
riod
Also
be
can
by rigid ad¬
periods
long pe¬
a
used
hide
to
sales
department.
is buttressed by the current
high rate of employment, income
and
savings. Moreover, the Ad¬
(b)
Management
constantly
changes,
not
necessarily in
composition of personnel but
in ability, alertness, and ca¬
pacity to respond to circum¬
stances.
In
other
words, the
management of the past, par¬
ticularly the
distant, is
more
identical
never
with
that
(e) The
economic
past
ments
do
not
develop¬
always
repeat
ministration
The
difference in emphasis placed
by Funds
tries
various indus¬
upon
cause
pattern of
a
per¬
formance which cannot be
pected
next
10
there
be
to
For
years.
Funds
are
which
by
their
emphasis on oil, utility
holding companies or insur¬
stocks
ance
fared
The
recently.
well
very
10
next
years
obviously be different for
these
industries
in
our
changed economics,
pany
may
ence
on
one
size of the com¬
have a great influ¬
results.
the
This
industry where beyond
certain
determined
appears
to
contained
in
end."
Their
without
The
stocks
proportion
was
net assets
Sept.
on
the
of
common
increased from 48%
of
March 3 last to 52.6%
on
30,
in
accordance
with
modified formula
plan under
which Nation-Wide operates.
Total net assets of Nation-Wide
Securities
discuss
bring more efficiency
operation, excepting in op¬
erating expenses which are of
in
minor
influence.
The
larger
quantity of shares you buy, or
sell, the less advantageous the
price is because of the nature
use
their
can
be very
shown
figures.
knowledge
of
shortcomings
misleading.
for
gressively
bare
and
of
record
a
performance
is
the
meaning
124-5
distortions
of the
some
On pages
management
larger companies
of
each
and pro¬
year
for
backward
two or
periods.
chart for
three years up to 10-year
on
Sept. 30, 1953, the
company's fiscal year end, were
$18,720,155 compared with $19,-
In subsequent pages a
each company is shown revealing
similar data of investment results
201,758
if
Net
on
Sept. 30, 1952.
asset
$14.79,
value
In this
was
$15.44
12
period the
25V2
cents
distributed
share from net profits
company
per
share
with
compared
months earlier.
per
on
sales
of securities.
investment income for the
fiscal year totaled $849,370,
com¬
ceding
year.
for the
From
this
pre¬
source
totaling 69 % cents a
share were paid in the 1953 fiscal
year,
compared
share the
with
preceding
68
cents
year.
a
investor
an
shares
10
and
bought
held
them
ended
years
respective
for
Dec.
exactly
31,
1952.
There
is
curacy
20™ CONSECUTIVE DIVIDEND
The
Fond,
mate
from
Directors
Inc.
of
doubt
to
as
the
and
these
realities.
been
hides
Some
discussed
investment
of
these
your
points
that
18c
income
share from realized
approxi¬
per
and
share
40c
per
capital gain, both
payable November 30, 1953 to share¬
holders of record November
13, 1953.
Chester D.
November 6, 1953
135 S. LaSalle
Tripp
Presiden
Street, Chicago 3, Illinois
have
corre¬
spondent in the Oct. 22 issue.
additional
of
pertinent
man.y
by
declared
distributions
ac¬
figures but, un¬
fortunately, the mere fact that
they are accurate makes them
rigid
Television-Electronic:
of
have
and skill used in the prep¬
aration
no
could
The
be
emphasized follow.
NVESTDRS
American
A Mutual
Business Shares
Investment Fund
Prospectus
may
A Balanced Investment Fund
be obtained
from investment
dealers
or
Prospectus
The
200
A
u
Parker
upon request
Corporation
c7/e ~Seorae
PUTNAM
FUND
o<? &oiton
Prospectuses
•FOUNDED
51
19 2 5*
describing these
funds may be obtained from in¬
Berkeley St., Boston, Mass.
Lord, Abbott & Co.
New York
—
Chicago
—
Atlanta
—
Los Angclex
Putnam Fund Distributors, Inc.
50 State
Street, Boston
a
point increase in size
Wiesenberger's
"Invest¬
Companies for 1953" are used
ment
business slump, and it has avail¬
able effective instruments to this
is
does not
convenience, the
to take counter measures to offset
a
ex¬
in the
instance,
repeated
Arthur
For the sake of
of
the future.
widely circularized figures in the
omy
a
number of sins in the interval.
(d) Change in
doubt
a
go
identical
to
and methods.
will
discouraged.
one
figures
few:*
downs and often unfair results
an
and accurate way of select¬
easy
carefully
rea¬
readjust¬
dividends
color and layout.
exaggerate
and
a
reviewed
of
their
No
buyer's market.
a
pared with $842,651
simplicity and ease
understanding. Other factors
over-simplify
of
number
themselves in the future.
to
both
Financial
statements,
charts, text and other matter are
for
selling
The so-called management per¬
capital and
formance record tables and charts,
consumer
durables will probably
decline next year. The period of used quite freely by the industry
to sell the shares of Funds to the
shortages is over and we face the
/intensely competitive conditions public, are an example of that.
penditures
Net
Clarity
price
narrow
during
of declining common
stock prices. On the economic out¬
look, he commented in part, "Ex¬
of National Securities & Research
The
relatively
fluctuation
the past year
the tenth consecutive year,
For
nual
Name.
K
record of
a
_
ill
mjnimi
Wins 10th
GENTLEMEN: At
me
report to share¬
President Hugh Bullock
holders,
had
'
*
annual
stated that Nation-Wide Securities
STREET
/
the
In
Any
make the past
can
22.
raternity
likes
vestors.
Orderly Decline
points out they have the same op¬
and
conception of realities on the part
of the uninitiated, in this case the
normally rather inexperienced in¬
Bullock Forecasts
problem of meet¬
ing higher costs, "The Long View"
8
The
f
reason
income.
institutions
[fund
Oct.
holdings
of Harvard's en¬
in
issues of
your
recent year, common
A
of
which
appeared
Milan D. Popovic
existing
recent
exchange
bought.
Increases
added
the
to
Sept. 30.
included 2,600 American Cyanastocks con¬
mid, 400 Chase Bank, 3,200 Clevestituted about 38% of Harvard's
Continued on page 43
endowment investments, but ac¬
a
be
can
few
a
more
additions, 17,Light and
2,500 Commonwealth Edison were
leges have used common stock in¬
to improve income.
In
future.
basis
Each company has its ups
in
shares. There¬
400 shares of Duquesne
vestments
in the past is
for judg¬
well
infallible
How far should
are
gaged
ideas
Representing
(a)
un¬
selling their
radio companies.
three
the
scene
those who
DIVIDEND SHARES, Inc., man¬
eight leading institutions re¬ aged by Calvin Bullock, reported
duced their
bond holdings over on changes in its holdings in the
25 years by 30%, and in¬
ing
ppblic and by
how
creased
an
operation
by the
both
sors
the past
im¬
an
proper
their
com¬
Hugh W. Long & Company, spon¬
of mutual
funds, describes
York
now
be
shares, it points out,
interest in approxi¬
an
did
company
not
reasons
portant part of our economic
,
The Fund's
represent
are
electronic
complete
and
ponents
Funds
the derstanding
in
engaged
of
manufacture
and
statistics
The past is not a picture of the
The mere fact that the
future.
meaningless. To mention
dealers.
to
ent
funds
and charts.
15, 1953—is being distrib¬
The
there
mutual
ing
Fund—revised
vision-Electronics
Oct.
Tele¬
on
Popovic, Vice-President
of Blue
cites
A
taken," the study states, "is
have
in
investment
prudent
common
to
SERIES
RESEARCH
through
vestment
Company
dealers
or
from
the
Russ Building,
San Francisco 4, California.
at 2529
Number 5272
Volume 178
No
one
from the first three years and
discounts
but
subsequent
of securities markets.
gives
.
The Commercial and Financial Chronicle
...
quantity
just the reverse. This means
that it is much easier to man¬
i
efficiently
age
a
company.
(e)
The
rapid
sterile.
while
cases,
effort—so
recent
*
in
growth
1
ates
has
years
size
in
profits
tied to
injected
tained
As
not
an
in the next
necessarily
581
vestment
managerial ability.
000
the light of these shortcom¬
^ In
ings,
of which
some
sized
by the
empha¬
are
of time, it is
passage
evident that the longer the
range
of past performances used, the less
Valuable
To
specific, it has be¬
more
fashionable' to
period
the
it is.
be
come
of
when
10 year
a
criterion in measuring
as a
performance
ment
use
the
of
Mutual
manage¬
Funds.
Even
compiled accurately and on
basis the figures can
uniform
a
be
ing
and
the
know
background
Whether b.y accident
design, apart from the general
considerations, these past 10 years
or
distinct element
a
tistical
distortion.
place, it was
prices.
Then,
a
of sta¬
first
the
In
period of rising
for an unknown
most Funds have shown a
reason,
rather good
three
performance record in
when
1943-44-45,
years,
compared with the stock market.
Since then, their record has been
generally
not
illustrated
compiled
good.
This is
following table
as
the
in
the data
from
page
on
124, of Arthur Wiesenberger's "In¬
vestment
shown
sales
A
story.
is
It
the
—
6
6
—
-
0
1952
+30
+ 23
to be
+ 15
discouraged.
led
have
to
tions
+ 11
0
change
for
of
complete
with
funds
which
than
better
did
expecta¬
truly
POPOVIC,
General
38
ing
NEWS
valued
that
of
results
$15.43
derived
deduction
30,
1953
share
a
retail
wage earners
and
goods
of
and clerical workers
York
New
of
cost
bought
families
by
City
0.4%
rose
be¬
and September, it
announced
by
Robert
R.
August
Behlow, Regional Director of the
U.
S.
Department
of
Labor's
Bureau cf Labor Statistics. Chiefly
June
on
30,
a
share
on
with
June 30, 1953.
outstanding
$1,000 of
on
Sept.
(excluding unamortized
debentures
financing costs)
1953
30,
to
$5,544.
debent
nine
Interest and
requirements
outstanding
itsre s
on
were
7.80 limes during the first
months of
1953.
Net
income
stock for
nine months ended Sept. 30,
applicable ilcr common
the
1953
(exclusive of profits on sales
securities) was $290,940 com¬
of
with $291,100 for the nine
ended Sept. 30, 1952.
pared
months
The
Adams
Express
Company
responsible for the increase were
announced that the net asset value
higher prices for apparel and food.
of
The
month-to-
consecutive
fifth
rronth
advance
responsible
was
its
is
1953
share
estimated
compared
31,
19£2.
for the New York Index reaching a
Dec.
100).
American
during
tion,
The
the
Food
index
advanced
=
0.4%
period. Cereals and Bakery
Dairy Products, and other foods
one-month
Products,
is
,
a
both
tionally.
$22.78
The
Apparel
gust
level,
year
ago.
women's
wool
and
be
index,
above the
1.6%
fur
trimmed
and
sports
coats,
nylon suits, nylon hose and girls'
net
index declined 0.1%
the month due in part to lower prices
The
over
for
Transportation
used
cars.
The New York City Consumer Price Index
on
a
1935-35=100
base
is
187.3.
in
confidence
eco¬
our
—threatening
disaster
in
our
economy, especially if the margin
industries is cut.
defense
business
American
Neither
needs
labor
American
nor
to
war
be
family
American
opportunity
and
wants
better
a
succeeding
capacity to meet these
stand
value
at
International Corpo¬
per
$26.49 at
as¬
o£jUt£
30,
common stock at
19§3 is estimated
at
share compared with
Dec+Sl,
atomic age for the good
Petroleutff^
Corporation
that
defense
we
higher
some
headed
free
competitive
in such
an
that
selling,
for
a
depression.
we grew
more
have given
us
ministration
is
maintenance
will
dedicated
of
employment
the
to
level
high
a
of
production and
policies to
and
always
that this Ad¬
you
pursue
with confidence and correct them:
our
in
soft
This is the kind of economy we
striving to encourage: healthy
imaginative,
fortified with
and
sound
of
currency,
Such
tomorrow.
is
an
economy
and alert to meet—
by—the simple truth
that America is the world's* great¬
equipped
and
est
live
to
unfinished business.
I remind you
again: this Ameri¬
economy—healthy, vital, dar¬
can
ing—is
first line of defense for
our
itself.
freedom
be
For
against
that
fact
a
often
too
America's
this:
is
defense
repeated
greatest
is the power
of American mass
enemy
any
potential
open
eyes
and not be¬
faith; seek out the
blind
And
spot and see what can be done
is
indeed
plain
a
us
more
which
heat than
generates
today
sick
American
light.
that
know
We
fulfill the Com¬
munist dream of conquest just as
would
economy
surely
disaster
as
must be
reduced. But tremendous amounts
spending
the battle¬
on
field.
tary defense of America does not
result
will still be pumped into
the economy by the government
because only relatively small re¬
ductions can
be
made quickly.
Likewise, it is the definite policy
of
this
administration,
through
simply
made
the spending
from
of
of money
reduction,
to
them
for
return
to
and
how
for
strength, guarded
rected
to
which can be
anticipated. This we
Jan. 1.
duction
to
For
our
defense needs
pro¬
such
In
an
defense—com¬
strategy
obsolete weapons.
emphasis I repeat
I
have
Defense
vs.
before.
said
in
disaster
military
a
scorned
the
but
program
resources
and
permit, is the surest stimulant to
continued
progress
and a high
problems of our economy—erect¬
ing majestic defenses and
the
additions to produc¬
of ing capacity which have been
net stimulated by government action
great
Sept. 30, 195S is estimated at $22
per share compared with $25.38 at
becoming
Dec.
far
of
the
goods
ments
The volume
can now produce is
than
ever
before.
we
greater
the
protection
There would be not
disaster in
of
arms
so
of
We
are
a
a
program
production that our
strength and resources
less, that the
no
aware,
meet
economic problems we must
shores.
Our trade in the world—and the
at
end
not
our
world's trade with us—are essen¬
of the strength all of us
free. Our own in¬
are
vitally
dependent
tial parts
need
to
stay
dustries
materials from the most
of the earth. Our
upon raw
distant
parts
farms
well
as
whole
our
industry
as
abroad—without
markets
farm
need
which
economy
could
gravely dislocated—even while
many foreign nations are increas¬
be
their own production
ing hugely
of
grains and other foodstuffs.
What happens in the valley of
the Nile, and the plains of Turkey,
or
in
Pakistan may affect our
Iowa.
Kansas and
farms in
What
happens in Malaya or the Belgian
may1 affect
Congo
defense
our
And
defense of ourselves
our
so
industries
our
program.
inevitably involves the conditions
in
obtaining
areas—seem¬
many
distant
ingly
yet
strange,
and
really vital and near.
These, too, are truths by which
we must live in this difficult peri¬
od.
as
them we must be guided
judgments and actions,
By
in all
our
the chosen servants of America
But
time.
a
above
venture
to
rises
lenge
matters,
I
tower
over
all
provide
that
to
We
others.
these
all
suggest that one chal¬
must
moral
leadership, that steadfast¬
spirit and mind, which
alone can make us worthy of the
of
ness
high commission that history has
conferred upon us.
We
must
than for
must
We
for
more
care
truth
success.
care
more
the
for
hopes of the people than the votes
of the
people.
must
about
always
worry
problems
our
»
more
the
than
headlines.
We must
false
the
cuse,
scorn
the glib promise,
phrase, the shallow ex¬
the clever evasion. Let
of those
and
these be the devices only
who hunger for power.
Let
our
ambition
be
but
one:
nothing to fear of the future.
If worthy of the present,
the
will be ours—with a free¬
future
dom
of
peace
and
productivity
beyond the dreams of our fathers
our sons.
a
defense but
massive
Ad¬
this
truths,
battle¬ —worthy of the hopes of
and
impoverished.
country that was bankrupt
people who were
past few years are now
available.
for
security.
these
all
Of
achieving
for
rules
justice and security for America.
Born of a brave past, we have
Disaster
There would be not defense
that
a
greater
productive capacity of the whole
potential increase
as
and
old-fashioned
what
nation. And the
fast
static
a
■—served by
in these demands through tax re¬
as
scientific
techniques.
be
lief,
witnessing
the surest formula for defeat
mitted
here
age
an
in
revolution
would
quicken its demands upon the
which we are
ministration is deeply aware.
We
live in
We
de¬
a
pro¬
wisdom.
of this Adminis¬
tration. The sooner it is done, the
sooner the consuming community
termined purpose
di¬
and
defense
a
not
ured
age,
is
sustain
whose worth can be meas¬
by its cost but by its
gram
excess
The reduction of taxes
are
our
in gov¬
doing with the expiration of
profits tax and the 10%
reduction
in
individual
income
tax which will become effective
on
expenditures
fully we get
the
efficiently
nomic
are
the
planned and how
the
to
spending
ernment
reasonably
know how well
money's worth.
Our security depends upon eco¬
spend
themselves all real savings
huge amounts of money. It is
of
much
more
importance
to
as
but as simple, com¬
—
national
true
at such
strictly mili¬
not
preconceived economic ax*'
mon-sense
truth.
awareness of it
from a great deal of
general
yet
We know that the
Government
people
truths
these
hold
We
some
and
that kind of partisan debate
about it.
tax
fluid and imaginative, mo¬
elastic, will and must be
supported by whatever appropri¬
ations logic and necessity demand.
do
foster that end.
are
bal¬
a
gram,
prisoners
assure
that
know
adequate defense pro¬
ioms—or theories of
would free
adjustments are constantly
going on. Wherever these adjust¬
ments are required, let's face them
lieve
We
bile and
and higher standards of
Surely we are not fearful
that we cannot do it again.
can
sound
but
higher
I
money,
policy.
monetary
It is
little
a
effort and ingenuity
such
no
of honest
health
the
out
that
know
could be assured with¬
anced
economy.
economy
more
high
a
and
economical government, and
of
A little more production, a
little
This
omy,
keep
We
Third:
economy
Fourth:
a
that
know
employment
of
maintenance of such an economy.
Don't Fear Competition
and
great and growing econ¬
our
healthy
a
indus¬
trial activity is essential for the
level
alloca¬
tions and the ordertaker is passing.
for Depression
But, this does not mean that we
In
We
Second:
than
still have
may
production.
are
that
know
We
production and
be
calamity if the day
cannot
decline.
can
Headed
Not
over
1952T
instead of for evil—is
.As the threat of aggression re¬
cedes, our huge expenditures for
asset value of"Tts common stock at
31,
of
can
level of activity.
1952.
announced
on
today.
living
us
The
America
is
the thres¬
we
an
say
sim¬
is America's surest
of strength in meeting any
source
this country so that all we can see
population is increasing—
thousands of new-born each
day—at a rate of close to 15% in
by
our
alternatives—we
false
First:
capacity in reserve. High volume
but good supply means competi¬
tion, efficiency, and more value
for the consumer's dollar.
Surely
we
haven't reached the point in
prosperous.
Our
can
living.
They are part of the answer to
who see—or pretend to see
of
volume
and
ever,
those
can
dresses.
->
asset
announced that the net
value
Sept.
Au¬
is 0.7%
below the level of a
Higher prices were reported for
Corpora¬
majority-owned subsidiary,
American
set
30,
dates.
ration
to
Sept.
at $35.89 per
with $41.07 at
Its holding
of
International
included
prepared at home were
higher at the October level than a month
ago.
Fruits and vegetables declined 3.2%
below the August level reflecting the gen¬
eral availability of fruits and vegetables in
the produce markets. The important Meats,
Poultry
and
Fish
group
advanced frac¬
purchased
stock at
common
1953
high of 113.2 (1947-49
for
reasons
future.
nomic
net
compared
on
amortization
Monthly Advance
$6,457).
total
The asset coverage per
debentures
earned
services
the
of
some
holding
deben¬
of
with
$15.16
was
amounted
Retail Prices at New High
In 5th
—but
Our
great.
are—in the largest sense
who
economy
It cannot be that Americans fear
for
saving of freedom.
They
$10,378,808
costs
$10,530,340
stock
the
were
1953,
Net asset value of the com¬
1953.
mon
the
&
market
at
were
compared
Sept.
actually most
good results
the
resources
our
are
those
ply these:
this output
employment
prosperously at peace.
these
All
weapons.
enemy.
priceless monuments of
beyond the imagination of most of
30,
before
and
financing
lagged
10-year period
hidden
nation
high¬
generation.
Sept.
at
debentures,
they
takes
one
a
to
have ever
we
well
may
with yes¬
met
be
that the essential truths are
be that in
may be all
that the country needs for a while.
But does this mean catastrophe?
it
cases
threat
tomorrow's
to
problems
tween
develop
will
material than
some
schools
the
hospitals,
the
are
principal amount of outstand¬
assets
If
ways,
And
Corp.
quotations
period evidently these representa¬
tive
Funds
out-performed
the
stock market on the upside hand¬
entire
chance to build more of the
and fuller life for each
N. Y.
securities
These
behind.
oil
and local governments—the
State
more
Street,
CLOSED-END
ture
that
drill
mines,
levels of opera¬
lines
some
had, and
to
resources
factories, expand mills, de¬
velop
1953.
4,
10-year
After
indispensable
Every
Ridge Mutual Fund, Inc.
Wall
(excluding- unamortized
somely.
give individual families
better security, health and educa¬
tion but also to give the nation
build
in
would
we
pretend that
be solved by
a
dramatic slogan—to all those
who give the people choices be¬
confident of the
a
decade.
The needs and wants of Ameri¬ prudence of its government, and
ready for the exciting challenges
cans are increasing no less swiftly.
yours,
D.
TOTAL NET assets of Carriers
10 year
the stock
In the first three of the
not
to
the
Lower percentage
more
of mankind
of
The
in
An investor in
excessive
MILAN
with
average
buy
needs—as
year.
Annual
to
clothes, in food, tion
hold of
in S. & P. 90 stock aver¬
change
was
writer
statistics
his investment.
from
8
+18
-
tween
this
of
such
Mutual Fund shares should not be
Nov.
taverages.
in
of
16
—
funds.
-
statisti¬
and
45
1951
the
_opinion
use
New York 5,
3
+ 17
+ 23
1950
+
+18
_
1949
the
in¬
by
c
-
1948
of
prepared
selling shares to the public ought
3
fact is
compiled by such im¬
as this have such
favorable
the
that
74
for
three
cally accurate, though not neces¬
sarily complete story, can be pre¬
pared practically for any Fund.
1
.
miracles
companies themselves. It
is a poor statistician who cannot
prepare a statistically impressive
6
8
+
in
savings—savings
means
only
sources
literature
14
%
is
dividual
Blue
record
unless
date
shortcomings. More serious mis¬
conceptions are fostered in the
63
—
It
which
Statistics
84
c
later
years
partial
+ 38
b %
starting
years.
+ 22
-
the
performed in the next
are
+35
in
when
three
+ 19
-
less
and
homes.
period. ^An entirely opposite higher standards of living.
picture on the adverse side will be
It means—in cheaper costs
1945
1947
in
year
1944
1946
less
continue
that
dollars
wells, and
the first three+ears, the following erect power plants. Savings make
seven
years1 Were lean. A very jobs, and are essential for the high
misleading
statistical
story
is productivity of American labor
created by using the blanket 10- and our increasingly higher and
81%
+30%
+25%
_
age?
same
spite the excellent performance of
Very
b
a
1943
%
Investing $10,day in the
Companies for 1953."
i
a
next
mean¬
they reflect.
contain
income.
the
on
1945, excluding in¬
of
that
all
these
Balancing the Budget
seven.
Fund, it would have been worth
only $9,966 seven years later. De¬
misleading unless analyzed by
those who understand their
Dec. 31,
on
terday's
To
an
and
capacity to continue the
have
would
The Dilemma of
record
10-year
example, taking the Fund
which showed the largest aggre¬
element
of
fortuitous
good
fortune to some Funds. Obvi¬ gate increase in this period, an in¬
vestment
of
$10,000 on Jan. 1,
ously, investing cash in a ris¬
1942 would have been worth $30,ing market automatically cre-
"
exhausted
come
7
page
some
in
fact
In
the
from
lose the
$20 million was highly satisfactory, all of the
$200 million profit was derived from the first
three years and a loss was sus¬
a
than
company
rather
the Continued
were
years
seven
31
(1859)
might be¬
Goodbody Adds to Staff
(Special to The Financial Chronicle)
BOSTON,
ford
Chapin
Mass.—Walter Sanis now with Good-
body & Co., 140 Federal Street.
32
The Commercial and Financial Chronicle
(1860)
*Continued from first page
"excessive
j
major
gated
inter¬
government
Corpora¬
ican
bizarre
history
of
Amer¬
intervention
farm
The
values.
price of $500
result
that
was
capacity and inflated
excess
an
rendered
American
the
over¬
"In
the
1919
late
bubble
burst,
and farm prices tumbled. And so
tion.
Let alone the
government far
from
being
on
the
wane.
the
otherwise
rela¬
farmer's
traditional
status throughout
duplication, one wonders why the The
rural
the
banks, building and
loan of
where in rural America.
rugged
independence
has tively prosperous twenties,
farm problem remained the one
30 years
As to depth of penetration, the associations, and the private lend¬ been worn down from
iirst
Hoover
Prac¬ black spot.
report
(1949)
re¬ ing institutions were so blithely of increasing intervention.
Initial
relief
for
the
farmers
vealed some samples. There were, superseded. The answer lies in the tically all of the farmer organiza¬
that
governments are
not tions (whose headquarters are not was attempted through the boost¬
for
example, 47 employees at¬ fact
ing of tariffs on farm commodities
tached
to
seven
districts
and fettered by the private require¬ without accident located in Wash¬
to
record
highs.
The so-called
ington) demand government in¬
separate field services of the De¬ ment of recouping costs.
in
one
form
or
the "emergency tariff," the FordneyThe
trend
of American
farm tervention
partment of Agriculture in one
McCumber Act of 1922, however,
cotton producing county in Georgia policy shows little or no sign of other, usually "flexible" price sup¬
ports and tariff protection for the failed to bring any real aid to the
working with 1,500 farmers. A improvement. On
the contrary,
farmer. To cite an example, wool,
fruit and grazing county in Wash¬ the long-run outlook, barring a "conservative" organizations such
as
the National Grange and the which had been on our free list,
ington State has 184 Federal em¬ reversal in the direction of Ameri¬
made
dutiable
American Farm Bureau
again.
But
Federa¬ was
ployees working with some 6,700 can
politics,
foretells
of
still
tion and the continuation of pres¬ along with hundreds of other farm
farmers. A dairy county in Mary¬ greater intervention. Power breeds
ent high supports and fuller inter¬ and non-farm products, American
land has 88 government workers power,
intervention
breeds
but
vention
for
the
"liberal"
farm wool soon found foreign markets
for its 3,400 farmers. These figures more intervention. Temporary ex¬
practically precluded by foreign
include only Department of Agri¬ pedients have become permanent groups such as the National Farm¬
retailiatory tariffs.
ers Union.
Obviously
culture
personnel,
not
all
the institutions. President Eisenhower
stronger intervention was called
To what
end?
The enormous
other Federal and state employees in shaping his farm policy says
for, according to government "ex¬
-converging
on
the
American that he will sound out "farmer waste and misdirection of our re¬
perts" in the Department of Agri¬
farmer.
sources, the heavy contribution of
sentiment"
and
later
assures
culture.
Just what are the field services farmers of continuation of farm this policy to continuing govern¬
Congress tried legislation spon¬
ment
and agencies of the Department
deficits,
the
questionable,
supports. Of course if the farmer
ethics of taking from one part of soring farm cooperatives but to
Of Agriculture to be found at the wants
intervention,
it must be
little avail.
The depressed prices
county level? They include the right. But what of the rest of the the population (by far the largest continued.
The government ap¬
part, incidentally) and giving to
Soil
Conservation
Service,
the country,
should
not
they
be
parently did not encourage the
Extension
Service, the Farmers sounded out, too? Who has ever another part, the prevalence of an one real solution to the
problem:
accelerating interventionists phi¬
Home
Administration, the Pro¬ heard
of
anybody
refusing
a
progressive disinvestment to re¬
losophy which knows of few per¬
duction and Marketing Adminis¬
duce over-capacity. The marginal
steady flow of checks from the
manent
limits and
which could
tration with its separate conserva¬
and sub-marginal farmers
Washington Treasury? And where
clung
ultimately lead to a totalitarian
tion payment program and school will intervention end?
desperately to a hopeless situa¬
state—all this is
far
into
over
of
the
California
Imperial Valley
in
—
short,
every¬
lunch
program, the Farm Credit
Administration
with
its produc¬
tion credit facilities, the National
Loan
Farm
Rural
Association,
Electrification
the
and
Administra¬
tion.
Besides these, other government
employees
Bureau
be present for the
may
of
Entomology and Plant
■Quarantine, which has been as¬
past, present, and
is
It
the
thus
no
surprise
to
note
results of the wheat farmers'
poll in
August of 1953—an
whelming
endorsement
over¬
of
restrictions. It
was
vote
a
for stronger government controls.
The
bureaucrat
number
of
dictates
now
permissible
the
for
acres
farming. A Federal overseer from
signed the responsibility of insect
the county seat will see that each
•control and plant disease eradica¬
tion;
farmer adheres to his "allotment."
the Forest
Service
with
its
farm-forest management program;
;and the Bureau of Animal Indus¬
try with its animal disease control
Employees
program.
of
Administration
erans
the
Vet¬
also
are
likely to be present (to administer
en-farm
well
of the
industrial
training),
as
farm labor representatives
as
Federal-State
Similar polls have been
for
cotton
farmers.
who
had
who
and
bureaucracy
this
on
are
vast
number
a
many
"for
change"
a
were
The
polls,
coupled
from
the
with
farm
strong
bloc
and
farmers' committees give
of democracy
cum
ment
intervention, their
generally adds to
delay, waste, and
The
props
to
these
the
illusion
of
merely
cloak
tives
America
purposes.
gressive
functions
roots
grass
the
Secretary
interests
committees
but
Benson.
as¬
give
control
real
direc¬
Benson
long
held fast to the idea that the
confusion,
the
from
of
the
farmer
served
were
freeing
by the
of
On
"disaster
of
pro¬
agriculture
interventionists
assuming office,
high price supports
best
and
controls.
he
said
best
at
were
insurance"
that
rather
than
and
responsibility issuing the means "to encourage unecoWashington bureaucracy. npmic production and result in
from the
One estimate puts the annual cost
of these farmer advisory commit¬
continuing
heavy
subsidies."
With
tees alone
is
ment
at
to the Federal Govern¬
upwards of $5
million.
rare
among
further
that
surpluses
and
courage
that
a
politicians, he said
farmers
must
con¬
The Hoover Commission
Report
of
1949
points to a "maze" of
tribute their share of the sacrifice
agencies
era
its
posed
policy which dis¬
approximately one bil¬
of
almost
permanent
ties
with
lation.
of
The Regional Agricul¬
tural
Credit
Corporation,
Agricultural Market
Act
The
Revolv¬
ing Fund, The Joint Stock-Land
Banks,
and
the
Federal
Farm
Mortgage
nine
to
"turn
America
back
from
an
of unbalanced
that
grams
tion.
agencies
These
Band
in
But
active
the
were:
Banks,
pro¬
steadily
were
and
surely undermining the moral and
spiritual values of our people.'"2
But some
seven
months later in
a
superabundance of
relatively sparse popu¬
a
the
the
opera¬
Federal
Production
share
"I
These programs did not
the farmer
of
have
the
not
an
"equitable
national
become
income."
Secretary of
Credit Banks,
Home
Administration,
Rural
Electrification
tration,
ance
the Farm¬
the
Federal
the
Adminis¬
Crop
Insur¬
Corporation, the Agriculture
Department
gram,
1 The
and
Hoover
<2raw-HiI!
Book
JW». 244-249.
Disaster
the giant
Loans
of them
pro¬
all,
and let the farmer be
squeezed
by
lowered farm prices and
high fixed
costs," he declared.3 In September
of
1953
or politi¬
cal
metamorphosis
was
almost
complete. The Secretary ordered
his economists to
probe charges of
Co.,
" '
New
Report, McYork, 1949,
**
Taft
Benson,
Minn., February
3 Ezra
Taft
10,
Wis., September
19,
speech,
speech,
St.
1953.
(father
tors
of
targets,
warehouses
and
railroads.
lobbying met with
states
or¬
success.
passed
"granger
laws" regulating the railroads and
Such
warehouses.
laws
af¬
were
firmed constitutional by
a
of
(Munn
the
Supreme
Illinois,
1876),
Court
which
decision
ruled
v.
that
the states could regulate what was
essentially
and
intrastate
commerce
the federal government could
regulate what essentially
was
in¬
terstate commerce. Not
shifted.
did.
instead
Henry
agricultural
ac¬
consumer.
President
Calvin
had
Coolidge
anticipated the demand for such
protective farm legislation.
He
knew that granting special aid for
declining industries was a dan¬
gerous
precedent.
Other indus¬
tries
could
then
argue for their
protection. Compe¬
tition thus constrained, American
productivity would be jeopard¬
"fair" share of
ized.
the
In
his
annual
Congress
"It should
the
farmer
salvation,
cally.
of
be
the
It
stated:
assist
to
his
out
problem
surplus
useless
own
economi¬
and
main
is
he
aim
work
with
to
message
1927,
socially
The
tion.
in
to
dealing
to
is
one
produc¬
propose
a
temporary : expedient.:,: Govern¬
ment
price-fixing is known to be
unsound
'
bound
and
disaster.
to
Government
result
would work out in the
in
b si d y
s u
same
way*
It cannot be sound
for all
people to hire
of the people
some
of
the
to
produce a crop which neither
the producers nor the rest of the
people
want.
Price-fixing
and
subsidy
will both increase the
surplus instead of diminishing it*
The most effective
ing
means
of deal¬
with
surplus
crops
the
surplus
acreage.
duce
this
cannot
be
done
is
to
re¬
While
by the indi¬
vidual
farmer,5 it can be done
through organizations already in
existence,
through
information
the Department of
Agriculture,
and
especially
supplied
by
through banks and others who
supply credit refusing to finance
an
pro¬
Peek
of
the
New
of
Moline
the
Congress
should
take
such
manifestly too large.
impossible to provide by law
acreage
It is
for
assured
an
and
success
pros¬
continued
after
unabated
the
Three
turn
factors
the
in the pre-World War I era. These
factors were: the disappearance of
the Western frontier with the
diminution
land,
the
urban
free
or
heavy
tion into the U. S.
markets,
trialization
of
con¬
immigra¬
providing good
and
the
indus¬
of
Europe providing
good export markets for our crops.
The
first
World
government
War
was
pressured
the
the
farmers to go all out and thev did.
With the slogan "Food Will Win
the
War"
ment
and
with
the
govern¬
providing almost unlimited
moved
Wheat
to
boosted
Prices
unprecedented
reached
$3 per
heights.
bushel and
went
beyond, corn $2 per bushel,
hogs $19 per hundredweight, and
cotton
40
farmers
that
Augusta,
corn
cents
were
such
pound.
per
under
prices
were
the
Many
illusion
permanent
Normally
submarginal
put into production under
interest
mortgages.
Good
land
in
the
Midwest
went
price-fixing,
alike
has
end.
no
is
It
once
justice
no
economic
an
and
folly
from which this country has every
right to
no
be spared.
reason
There is
...
why other industries—
coal, lumber, textiles, and
copper,
exchange value for all farm prod¬
Such
action
The resolution carried.
Not
long afterward Peek and Hugh S.
Johnson, later Administrator of
the
New Deal N. R. A., published
pamphlet called "Equality for
Agriculture."4
Their argument
a
for
to
farmers
"fair"
farm
any
were
en¬
exchange value
commodity-^'Tair"
meaning that its price would bear
mathematical
same
relation¬
ship to the
present overall, price
had existed in the
10
as
preceding
War.
One
according to this
change
value
scheme
$1.02
fair
selling at the time for
bushel, would have been
$1.60.
Businessmen
pressed
but
unim¬
were
Secretary
Wallace
talked up the
possibility of
thing
sort
the
of
Thus
out.
ex¬
wheat,
was
a
the
being
some¬
worked
McNary-Haugen bills.
McNary-Haugen bills were
complicated business.
The
farmer, anti-trust laws notwith¬
a
permitted
was
in effect
restrict that part of his pro¬
duction going to domestic markets
until his price rose to a prede¬
termined level, the Peek-Johnson
to
"fair
exchange value." At last the
farmer
was
to
eign
it
then
farmer's
be
markets
would
have
"equality" or
industry.
The sur¬
parity \yith
plus of the
would
production
dumped onto for¬
for whatever
price
Undue losses on
bring.
foreign sales, however, were re¬
coverable through an "equaliza-
bu¬
on
litical
of
future
main
policy
counter
well-considered
is
maintained
best
free play of competi¬
undertaking to permit a
a
legalized
restraint
of
commodities
these
The
runs
healthy economic
a
condition
through
tion, by
bill
this
the
to
people.
our
of
principle, that
unlimited
the
board
to
in
trade
establish
and
George N. Peek and^Hugh • S. John"Equality for Agriculture," Moline,
Illinois, 1922.
*■'
power
of the farm
levy fees and enter into
For
contracts.
such
generations
many
have
been
de¬
nounced by law as repugnant to
the public welfare.
It cannot be
that they would now be found to
be beneficial to agriculture."
practices
And
sense
of
ends
thus
the
era
of good
in ascendancy. The warnings
President
Coolidge, almost
to
the
letter, came too true. His was
a
policy of laissez faire. He had
argued that you cannot cure a>
surplus with more surplus, that
you
cannot dure over-investment
with
the
investment.
more
danger
of
He sensed
bureaucracy
and
intervention supplanting the mar-*
ket-place—demand and supplya director of economic energy.
He knew that the market solution
as
which
farm
had already
lowered the
proportion of the population
from 96%
in
could again
5 Not
4
soh,
establish
such a scale as to
dominate not only the economic
life but the moral, social, and po¬
the way paved for
was
The
standing,
would
action
reaucracy
First World. a species of monopoly under gov¬
illustration
showed ernment protection, supported by
that
which
occasional diffi¬
every
the
was
.
"Government
started,
ucts."
index
to
he told Congress:
culty should not receive the same
treatment
by
the
government.
years
contributed
vetoed
others—in
shortly
prosperity of the American farmer
He
sense.
fair
century.
until
the
of
better
bill, and in his veto message
was
the
problem
President
the
a
the
surplus
Com¬
showed
as
a
farm
the
"reestablish
that
the
Plow
unconstitutional
and
to
necessary
titled
railroads.
on
Deal
Agricultural Adjust¬
Act, made a resolution that
claimed
But
Wallace)
of Illinois and later Admin¬
ment
the
A.
conference
policy.
One of the
delegates, George N.
conference
long after¬
wards Congress through the Inter¬
state Commerce
Act
(1887) au¬
thorized federal jurisdiction over
land
.
endeavor
many
national
a
istrator
high
,
of
called
pany
Paul,
t
mestic
can
opera¬
1953.
Benson,
they
tion.
the
obvious
more
fixtures.
2 Ezra
Commission
the changeover
of
if
government
sought
farmer
Corporation, The Banks for Agriculture of the United States credit, American farmers
to sit idly by
to
the
wringing my hands production
sky.
Cooperatives, The Federal Inter¬
mediate
The
Granges,
The
assure to
lines
posed drastic interventionistic
first
undoing of the American farmer.
programs "don't go far
other
Unfortunately not
the
Credit
ers
of
major farm policy address, Sec¬
retary Benson asserted that ex¬
found, in all,
overlapping agricultural enough."
•credit
problem
isting farm
Corporation.
Hoover Commission
available
the
cheap
fortunately,
"liquidation."
were,
process
were:
in
But
els, of giveaway government
agencies
the
by sale
such
land and
comitant
An
land
overproduction of farm commodi¬
that had reached confiscatory lev¬
They
of federal
acres
budgets, of free
spending, of inflation, of taxation
public
nities
thus
Ironically it was a Republi¬
perity for all those engaged in
Congress which passed the
or
farming."
gift.
Most of this land went forerunner of today's farm
policy,
to migrant farmers though some¬
Notwithstanding the announced
the twice-vetoed McNary-Haugen
times indirectly via railroad com¬ Bills.
of the President
The
background
of
this predisposition
the Congress pushed through the
panies and states.
The
"home¬
proposed legislation is interesting.
steaders"
and the
"free
soilers"
In 1922 Harding's Secretary of complex and unwijeldly McNarycouid nardiy heip but add to an
President Coolidge
Agriculture,
Henry
C.
Wallace Haugen Bill.
lion
Four
lending
policy
land
funds for liberal loans to farmers.!
directly
of
be said to have been started
may
with
Several
presence
cross
administrative
signed
modi¬
a
state
farm
government
tics, do much to knock the
of
to the govern¬
The
Their
from
under
the
original brave
advisory com¬ free
economy position of the Sec¬
farmers. Though these
retary of Agriculture, Ezra Taft
of
sad
were
the liberal wing of American poli¬
'voluntary, county
mittees
this
tion and thus tended to pull down
the rest of the industry. Opportu¬
ganizations,
ill.
pressure
Superimposed
corn
hopeful
those
voted
projected
and
looking for a les¬
sening in government bureaucracy
and intervention, these polls omen
Employment
-Service.
farmers
For
get into
we
affairs?
con¬
tinued high parity prices but with
acreage
probably, alas, future history. How
did
which the farmer would
his domestic price and
ultimately charge the do¬
tion fee,"
attach to
farmers
extremeiy vulnerable.
thus
is
blue sky
Speculation pyramided land
head
vention.
The
Credit
Commodity
the
and
for the
acre.
inevitably
for
scape-goats
unsuccesslul
The Farm Problem
Green Mountains of Vermont,
profit margins" of the
oft-investi¬
meat-packers,
1953
Thursday, November 12,
...
some
farmer
so.
1790 to 22%
achieve
Shortened
a
in
1927
balance be-
credit
would
cut
planting - and
the - sub-marginal
would eventually withdraw frong
production altogether.
.
_
-
!
Number 5272
Volume 178
production
farm
tween
and
na¬
tional consumption.
Pressure on the Hoover admin¬
for farm
istration
action
"fascistic."
scheme
In
Federation,
lord guarantor of
Bureau
and
Union,
the
Farmers
Grange
National
the
ists—they did not use this term,
tiowever — legislation. The result
that the Agricultural Market¬
ing Act of 1929 was easily passed
fiby both houses and signed by the
President. The Act set up a well-
capitalized Federal Farm Board
-with a revolving fund of 500 mil¬
dollars "to contribute to
the central government as the
up
its
come,
or¬
the
the farmer's in¬
authorizing of
farm
itself,
This
passed during the sharp-
was
country—"the depression within
depression,"
as the popular
scription of the day went.
The
Wallace's pet
concept, the "ever-
normal
granary."
that through
to
idea
of
operation the
seems war¬
thought is in
sharp
This
a
sued
by
the
Division
Anti-Trust
the
was
giant storage
government would
vision was busy attacking Big
Business "for diminishing competion." Besides, the Secretary of
Agriculture himself approved and
promulgated the marketing agree-
prices were low thus ments of the farmers.
It would
raise prices and sell appear foolish for the Justice De-
buy when
tending
a
combinations, so clearly "in restraint of trade," could have been
de- of the Justice Department. At the
time, however, the Anti-Trust Di-
AAA carried Secretary
new
down
right
monopoly, the charge
ranted.
govern¬
Act
est recession in the history of the
its promotion
intervention
ment
called for intervention¬
gpublicly
lion
the
called
guised class motivation, its setting
the leaders of the
-was
frankly experimental.
was
Former President Herbert Hoover
view of the AAA program's undis¬
in¬
was
scheme
Such farm spokesmen as
American Farm
sistent.
(1861)
The Commercial and Financial Chronicle
...
to
Roosevelt's
when
Democratic
ing to lower prices.
high thus tend- partment and the Department of
Thus, if sue- Agriculture to lock horns,
A fairly late entry in the govpaltform was a "program whose cessful, prices would be stabilized
basic thesis is, not that the system and government profits would be ernment farm
hodge-podge was
of free enterprise for profit has offset by the cost of storage. 6 The the provision for "loans without
failed in this generation, but that plan did not work. The govern- recourse."
Designed to hold off
contrast
President
to
statement
that
the
prices
were
surpluses to prevent them from
derly marketing" and "to promote
it has not yet been
education
prices remained low. Government creating a glut, the loans without
inventories built up recourse specified that only "basic"
of the AAA were from "the sys¬ commodity
tem of free enterprise for profit" crazily. Only a war could possibly (storable) commodities were eligimove the mountains of foodstuffs.
The farmer borrowed at some
can be seen in an
analysis of the
Per, cent of the parity price of
Act.
The core of the Act was a Eventually only a war did.
Despite dust storms which each eligible crop
originally 52
strong interventionists effort to
in
the
principles
and
^practices of cooperative market¬
ing." The Board was instructed
t>y the Act to aim at placing agri¬
"on
culture
basis
a
of
economic
equality with other industries
.
.
.
Iby aiding in preventing and con¬
trolling surpluses in any agricul¬
tural commodity, through orderly
^production and distribution."
•Compared to later New Deal leg¬
islation, the Federal Farm Board
fact,
portant
The
intervention.
mild
-was
burnished
point
starting
it
for
•greater New Deal intervention.
to the intervention¬
In fairness
•
control acreage and livestock pop¬
ulation
sought
to
ists scheme of price
propping, the
inadvertent of course, of
'beginning
hardly
Wheat
worse.
of
operations
the
could
Board
have
buying
the
been
began
in
^September and cotton in October
of
market
The stock
1929.
crash
beginning of the Great
Repression came but a few weeks
the
rand
demands
The
later.
Board
for
cinder
such
supporting
the
upon
prices
crop
conditions were
stag¬
By 1931 wheat was down
39 cents per bushel from $1.04
1929.
Cotton was down to six
gering.
to
in
cents
pound from the seven¬
The Board held
per
cents in '29.
teen
■W% of the total wheat supply in
country,
some
bushels.
Similarly
bales
million
3V2
to
about
cotton
or
annual
the
of
-one-third
govern-
of cotton amount¬
ament inventory
ed
million
257
the
the
Heavy losses
also sustained on wool, mo-
output of the nation.
were
dairy products,
raisins, and others.
The Board,
-already out $350 million of the
taxpayers'
money,
was
refused
-additional appropriations by the
tiow Democratic Congress in 1931.
fiair,
grapes,
"cooperating"
Through this restriction of
the
production,
to
prop
planners
AAA
surpluses
prevent
prices. There
up
and
were,
of
standards for determin
course, no
ing the size of the acreage allot¬
The
ment.
administrators
AAA
used
arbitrary judgment, a more
less
hit-and-miss
technique.
or
timing,
each
on
farm.
im¬
is that
however,
a
bought
ment
tried."
bought
and
but
How far removed the provisions
Over-all
in
reductions
decided
were
Washington and then prorated
to
greatly cut down farm production,
restriction failed to halt
production. Instead of
acreage
the surplus
farming extensively farmers, lured
by the high parity prices, farmed
intensively on their governmentnarrowed
fields.
Hybrid
seeds
used, better fertilizers, more
were
efficient
their
intervened all the way.
Thus
soy
remarkable
implementa¬
securing the farmers co¬
for
operation
"denied
for
farmers
the
to
payments
was
production,"
where,
substitute
crops,
grown.
were
crops,
thus
popped
else-
up
Hog production, for
too.
examnle
example,
they
said
beans, legumes, and
feed
Surpluses
noth-
was
that
law
couldn't.
animal
The
crops-there
the
in
for non-
acreage
especially
Politics
States, counties, farms.
tion
the
restricted
restricted
ing
methods,
farmers utilized
productive
Moreover,
Himbed
climbed
because
because
the
the
of
ot
est
high¬
of the
boasted that it was the
tariff
farmers
history
the
in
With such a background,
ready to try greater
^country.
were
Interventionism.
the
In
is,
for
simply
growing.
bewildering Elysium. Ten
not
Agard
tax
be paid
to
by the initial pur¬
chaser of cotton
wheat.
and
proceeds of the tax
vide
the funds
for
farmer
The
to pro¬
were
of
-"-success
lack
Federal
the
of
Farm
strongly espoused
the concept nurtured
by his
father—equality. In 1928 he had
Board, he still
heir tQ mountains of foodstuffs.
...
,
ministration quotas and
individual
quotas.
The
American
were
quick to note the
factory
farmers
for rewarding
dustrial
National
the
invalid
ruled
Recovery
the: AAA
tended
In¬
declared
Act,
The
unconstitutional.
the
that
processing
tion,; that
order
taxing
subsidize
to
of
our
group
one
another
historical
tions,. that the Federal
tion
was
diate
invasion
in
was
tradi¬
interven¬
States'
of
This "conservative" view¬
rights.
point
an
tax
legisla¬
discriminatory class
violative
the
found itself
nammous loans, soon
greater feed supply to the baffle-
his
Supreme Court, after having had
ly influential farm journal, helped
fan the prairie fire of discontent.
Raging against the depressed farm
prices,
he
editorialized:
"The
farmer is getting tired of being
Despite
execute <:hese.
structed
was
doomed
future
of
and
retirement
for
the
the
representatives of the
of Agriculture must
have
been
strong.
How easy it
would
have
been
to
"adjust"
Department
an
of
Justices
marketing
X's
Farmer
oversight
there.
both
a discrepancy
scandals involving
and
government
reported.
were
tences were meted out.
collusion
quota—
here,
Many
farmers
agents
there
Jail senHow much
actually has been
is not known.
The
Death
prepared the way
appointment
for
field
the
in the imme¬
Court.
temptation
The
artificially.
collusion between the farmers and
to
New
overlook
Deal
the
cialty farmers.
did
not propose
truck
and
spe-
For the growers of
set UP hy ^ie Corporation. Orange9°*ored /tamps Wxxr+/
income families. With every one
collar orange stamp. the purchaser
a free 50-cent blue stamp. The
orange stamp was good for the
purchase of any commodity in the
store, the blue stamp only for surP|us
— declared SUr"
P]us hy the
V
grocer was
then permitted to cash in all
stamps, orange and blue, at face
va
jle government, in short,
gave $1.50 worth of food for $1.
^ was a bargain for both consumfrs and producers, and more than
three billion pounds of food
moved through this channel and
through direct relief. With the
coming of World War II and thebjg rise in farm exports, the surP*us Problem evaporated for the
duration —but no longer,
The heart and rationale of the
New Deal and later the Fair Deal
farm policy was the concept of
"parity ; really the Demociatic
Yfrsion £°f he.0,}
I ff011
ldea of equality which had been
McNary-Haugen
AdmmistraAjgiculturM
re-establish
vegetables, fruits, nuts, milk and written into the
what President Roosevelt called dairy products and others, "demo- J^lls and into Hoover
cratic" marketing agreements were ^/n s
and
•deserted
the Republican
buggy"
precedents.
banner "horse
encouraged. Through this program of 1929. Parity was to
of his father. In 1932 young Wal¬ But this came only after the oncefarmers
met- together and with the relationship of farm prices to
lace helped swing Iowa and other
supine Congress arose almost as
government supervision they cal- industrial prices, as
Midwestern States to the Demo¬ if one man to put down the famous
culated just how much of their m
the farmer s
golden era,
cratic column. He became Roose¬ "court-packing" bill of President
combined product should be sent August, 1909 to July, 1914. Calcuvelt's first Secretary of Agricul¬ Roosevelt.
to market so as to get the maxi- lation
ot separate parity prices
The New Deal intervention for mum income.
ture, a tremendous power in the
Individual market f°r each commodity was involved,
JNew Deal, and in 1948 Presiden¬ farmers thus persevered.
Carry¬ allocations for each farmer was Each month thousands of farmers
tial candidate of the radical Com¬ ing the intriguing title of the Soil thpn agreed to
.'
and merchants supplying farmers
whose
minds
-
were
unfettered
by
-
they..existed
Progressive
munist-supported
JParty.
drafted the Agri¬
Wallace then
Adjustment Act of 1933,
was
sent to the Congress
cultural
which
with
:;along
dent
'■"unprecedented
for
the
jescue
from Presi¬
saying that the
message
Roosevelt,
trial
of
condition
new
agriculture."
The
dent thus admitted that
calls
means
to
Presi¬
the AAA
cents
difference
During
World
the
cover
between
tual price and the
the
W
ac¬
parity price.
War
II
farmers
exhorted
were
again to "go allout" in production. Farm
produc¬
tion zoomed
expansion,
paralleled
upward, and the land
although less drastic,
that
World
of
War
I.
One problem was that food prices
brought under the jurisdic¬
were
tion of the price-control agency,
the Office of Price Administration.
At the
time farm prices were
same
being supported at
The solution
difference
payments
to
in
the
the
up
The
farmers.
claim
that food prices were
line
OPA
make
through direct subsidy
to
consumers
held
parity.
or near
to
was
illusory.
was
price
While
rela¬
consumer was
tively low, the
indeed
taxed
was
in order to pay the farmer the dif¬
Or else he went into the
ference.
black
market
price plus
and paid the full
premium anyway.
a
In the years
of World
following the close
War
II, the government
policy to sup¬
parity. This
fact plus the host of foreign aid
and gift programs ^taved off the
collapse of the World War I type.
But as European farm production,
continued
its
firm
port prices at
or near
restored
was
prices
our
parity-frozen
precluded our en¬
swiftly
tering world competition and gang¬
ing export trade. Surpluses again
became
a
serious problem.
it is true that
of
some
our
While
wartime
export market would be lost any¬
with the restoration of Eim>-
way
farms and worldwide ship¬
ping, it is also true that competitive
pean
.
was
goat."
in-
Gosplan,
"Wallace, son of a Republican Sec¬
retary of Agriculture and Editor
•of the "Wallace's Farmer," a high¬
the
Agriculture
of
Department
ment of the AAA
,.
grounds cited for the action con¬
Henry
Midwest,
h?se'
?he Commodity Ciedit
Corporation, the agency of the
Farm prices
thus increasingly
planners. (Acre- move(j jnt0 the status of
guaranIt was a
age restriction is again being at- ^.ee(j
prjces
The incentive for
million
acres
of
cotton
were
tempted with the same negative farmers t0
produce under such
plowed under. To bring down the
lesults.)
stimulation was near irresistible.
hog population to the Department
In addition to this, marketing
Soon the ccc had a bmion dol_
of Agriculture-dictated total, baby
allotments to each
cooperating
lars o£ commodities 0n hand or on
pigs were prematurely dispatched tarmer were set
up by the Departloan
and
,he prC)Spect was for
to the butcher.
Those few nonment of Agriculture. Field repre£arger
commitments
yet.
Food
cooperating farmers who resisted sentatives
sent
m
reports
to was
flooding in £aster than lacUi.
the lure of subsidies mostly capit¬
Washington. Washington then dm- £jes £or storage could be erected
ulated eventually. Their access to
tated the allowable state quotas,
01. [eased
a new agency had to be
markets was
impeded so as to
county quotas and individual farm crea£ed £o dispose of the fast>
change their minds.
quotas.
The plan is remarkably accumulating food surpluses. Its
Another provision that sharply
^Uar to those of
the name: the Federal Surplus Combroke with the tenets of "the sys¬ official State Planning Commismodities Corporation,
tem of free enterprise for profit" sion of the Soviet Union, and its
called for a special "processing" dictated commissariat quotas, adSV* a tood-stump program was
that
the arbitrariness of the Department of
production
limits.
"non-production." Agriculture's
The farmer's first round in his The tax, of course, was shifted to Resentment crept in. The unscientific and authoritarian nature of
fight
for
"equality" had thus the consumer in the form of higher
the limits were not the only facended in a fiasco. Moreover, the prices.
tors in causing resentment.
The
"Smoot-Hawley Tariff of 1930, like
This tax was one of the specific
farmers were naturally frustrated
"its predecessor, the Fordney-Mc- reasons for the
temporary relapse
in being unable to expand acreage
'Cumber Tariff of 1922, provided of the New Deal in the mid-30s.
when prices were high, however
srio tangible relief, though its spon¬
In
1936
the
"unreconstructed"
sors
*Fa°Io by the 1938 act, 85% by
1941 act, ancL 90% in recent
years.
The "without recourse"
}ea*;ure„ of
laan waf
1° the *arn}er- It.meant that if the
market price fell below the supP°rt Prlce the farmer would keep
the 11?<?ney and the government
would keep the crop. One student
°* this government economics
commented: From the farmers
point of view the scheme amounted
^ rPal\zaV°n of
°ld Say' He9^
J win; tails you (the government)
subsidy payment to
33
pricing, impossible under the par¬
ity program, would have given
vast outlets for American farmers.
Instead
the
growing farm sur¬
pluses found their way into gov¬
ernment
part
of
storage facilities, only
which was liquidated by
participation
our
tional
Wheat
In 1949
of
a
in the
Interna¬
Agreement.
"solution" to the
surpluses
curse
put forward byPresident Truman's Secretary of
was
Agriculture, Charles Brannan.
Though
Plan
ence,
it
infinite
did
power,
plan
can
Brannan
into
exist¬
once
established.
be said to have hued
questionable thesis that the
for bad
cure
come
demonstrates anew the
extensibility of interven¬
tionists
The
to the
so-called
the
never
intervention
is
more
intervention.
The
tinue
Brannan
in
effect
Plan
to
would
con¬
guarantee
the
This time, how¬
farmer's income.
ever,
the guarantee would be
stronger and the basis for paritywould be
"equivalent in purchas¬
ing power to the average annual
purchasing power of cash receipt
farm
from
marketing during the
years
1939 through
1948.'"7 These particular 10 years
were
the most prosperous in the
entire history of American farm¬
10
calendar
ing,
greater
vious
the
base
even
period,
than
the
pre¬
to
1914,
1909
The parapher¬
farm
policy would continue — acreage
restriction, parity payments, loans
"golden era."
nalia
of
the
without
hodge-podge
recourse,
government
purchases, marketing agreements.
The
main innovation,
however,
was
the
market
mand
supposed return
forces
to
set
of free
of
supply and de¬
market prices.
In
other words, the
consumer
would
the market price, the farmer
would get the guaranteed support
pay
price, and the government would
pay
the difference between the
two.
The Secretary ignored here
the
hyper-stimUlant of guaran¬
supply. Such sure¬
teed prices on
fire
inducement is bound, despite
restrictions, to pyra¬
Little wonder then
that the Secretary was completely
unable to offer any cost figures to
'
Conservation Program, the Roose¬
filled out questionnaires for the
This process was, of course, an
the
Congress in support of his
j3epartment of Agriculture. From
velt Administration continued to
outright monopolistic device, a do- them the Department constructed plan.
subsidize farmers for restricting
mestic cartel.
Ordinarily such natjonal
Significantly the big farmer
averages of "prices re.
were
to the soil
and fertil¬
chemical
Checks
restoratives
izers which the farmers most fre¬
would have added any¬
1938 no veil of subter¬
fuge was deemed necessary. The
second
Agricultural Adjustment
quently
way.
By
supply.
f
,
also given
farmers for adding
acreage.
to
attempts at
mid
John Law suggested
it early in the
18th century,
"Erecting
of
national ' granarys
and
stores
of corn, so as that the industry
of this kingdom may not as hitherto be
at
any
time clogged by extream cheapness,
now crusht
by the extream dearth
6 Not
an
original idea.
°"J
Tr"de
and
Ceived"
plices
Pa^d
by
was
excluded from the plan. Sec¬
"In mv
published retary Brannan said:
Was 25 opinion, we would be wrong
narifv
Continued on page M
Cents per pound and the P
y
market
^
^
if
Thus
farmers.
price
^
of
the
COtton
j
indicated that the price
be 35 Cents per pound,
the argument would be laid for a
formula
ought
to
7 Charles
ed in
F. Brannan, Statement print¬
Congressional Record, April 7, 1949.
34
The Commercial and Financial Chronicle
(1862)
Continued
jrom
Thus is the basic incongruity of
over-all farm problem made
33
page
the
clear
at
such
a
operate in
encourage the
programs to
our
to
as
way
of
concentration
farm
our
land
is greater than the nation's abil¬
ity to consume—else why would
he
tion
did
mention
not
that "fewer and fewer hands" has
been
trend in the U. S. for more
a
than
100
years,
not.
In
was
estimated
the
1790
Brannan Plan or
farm population
be
to
96%; today
the
Department of Agriculture's
Bureau of Agricultural Eco¬
nomics puts the figure at about
own
16%.
The farm
policy
deflected
ly
1950.
the
by
of
tervention
Again
but slight¬
was
in¬
Korean
President
the
prices
parity
in
were
pitted against price control. But
again the President,' H a r r y S.
Truman, was equal to the prob¬
President Truman
lem: subsidies.
told the Congress
find that
food
on
prices with
ommended here,
consider
the
use
in 1951: "If
we
cannot hold the line
we
powers
rec¬
shall need to
we
legislation
authorizing
of other devices, including
limited
food
subsidies, to pre¬
price
increases
■from being reflected in rises in
.the
cost
of
living."
(Author's
italics.) Such an attempt to cam¬
ouflage a rise in the cost of living
vent
necessary
by subsidies is obvous.
sidies
could of
nate
of
out
taxes
The sub¬
only origi¬
course
borrowing
or
(delayed taxes). The price of farm
products may have remained the
same
but the taxpayer-consumer
simply paid the differences to the
tax collector.
The Eisenhower Administration
has done little to modify the farm
of
there
its
in
ministration
long
first
little
was
could
to
way
it
could
have
extricate
farmer and the
though
year,
that
do
gone
both
a
the
government from
the mire of interventionism.
And
in the person of Ezra Taft Benson,
Secretary of Agriculture, it
seemed, initially, to have such
a
Amer¬
the reservation—free to
leave the easy life of
hand-out but afraid
government
the
of
re¬
sponsibility of independence. The
"farm bloc" atop the Hill knows
all this but it wrings its collective
hands. "Our constituents want
it,"
they explain; that of course solves
everything.
conclusions
can
the
ob¬
of government farm policy
reach?
What have been the re¬
server
sults of that policy?
ments
are
used
to
What argu¬
justify that
policy? If that accelerating pol¬
icy continues, where are we go¬
ing?
The wheat poll of
provides
view
of
greater
the
farmers
relied
and
can
no
refuse
"assistance."
intervention
longer
inter¬
Time
have
profound changes
agrarian tradition of
wrought
in the old
individual
action.
(The New York "Times"
a more tolerant position on
implications of the wheat poll:
"The only thing proved by last
wheat
"I'll
George
would
rather
bushel
receive
wheat
of
sane,
$2.20 for
than
a
$1.20."8)
Moreover, the wheat poll shows
tendency of the government
no
to
cease
or
diminish
tervention of its
its farm
own
accord.
in¬
Mu¬
First
tually
forces the
and
consumption.
consumer
It
to pay
higher
higher
taxes to support farm prices.
In
the
meantime, the government
prices
for
asks
a
food
and
for
with
his
greater power to cope
situation that could only
*be called hopeless.
The
farmer
well
8 The New
understands
Bank,
we
increasing investment, which
would
lead
Times, Aug. 23, 1953.
and
costs
inventories
In the meantime,
climb
of
cotton
by
yepr
year.
forced
implications of this situation with
oats
alarm:
r
annually instead of the
on the
other
hand, the Department attempts to
restrict
production in order to
178. ' But,
raise farm
prices. Marketing order
in
to
He
his
plant
because
had
been
barley,
rye,
of
that
noted
state
wheat
and
acreage
restrictions
by the government.
"The United States support price With the
increase in planting, rye
indirectly supported iWorld cotton prices, not
surprisingly, were fall¬
prices and encouraged, production ing. But another reason for the
abroad.
Such
of the most
an
is
occitfrence
one
exasperating features
for supporting the
of any program
price
1953
of
world
a
exasperation
so
decline
of
prices
rye
the
was
heavy imports of Canadian rye.
Roy Hendrickson of the National
commodity. In Federation of Grain
Cooperatives
exists, and told Senator
Langer that "our
similar situation
a
The
eggs
Dakota.
farmers
fied." io
average
North
One Federal Reserve economist in
Department auspices which yields
212
tion 22 into play was
prepared by
Senator
Langer,
Republican
of
the South views the international
stead of the usual 678 pounds. A
hen
has
been
developed under
much
as
The
acres.
wili be
significance
he
carryover,
though
our
of
intensi¬
price
supports
working
are
as
a
magnet for Canadian rye," If Sec¬
the
cotton
tion
22
of
the
AAA
does
become
said, "is that, al¬ operative and
Canadian
rye
price-support level stopped, some ill will is
bound
prices, foreign na¬ be
generated.
Canadian
bolsters world
is
to
retal¬
tions sell below it when they see
iatory quotas on American prod¬
advantage in such action.
Ex¬ ucts such as
automobiles and ap¬
ports of cotton cloth from the
pliances may
be
their
answer.
.
All this had
.
.
government
come
us
nothing. So
farm
our
policy.
illustrated
"farm
problems,"
and sustained
self-im¬
by the gov¬
ernment.
The Under-Secretary of
Agriculture, True D. Morse, paid
a
special visit to the National
Institute meeting
in Chi¬
the spring of 1953. There
he told the cheese
utionary
new
men
of
revol¬
a
technique of cheese
processing developed by the De¬
partment of Agriculture's Bureau
of
Dairy Industry.
The
new
tech¬
nique cuts the time required for
making batches of cheddar cheese
from
hours.
7%
hours
This
to
less
than
3V2
said the Un¬
means,
two
runs
ready
chase
a
one."
fact that the
James
cheddar
In
at
Rivers
mated at
War
the
II
Hudson
and
destroyed
grain
storage.
to
is
half million dollars
a
questionable
spoils or is otherwise
is not known.
In the
substantial
to
of
of
Grade
A
and
Grade
B
amounts
Grade
increased
for
only
but
esti¬
of
butter
not
alone
How much of this
investment
foreign policy
.
with
trade
B
Even with vast quan¬
butter
being consumed
by the armed forces, government
hospitals, government prisons, the
school
lunch
program, etc., the
stockpile of butter, like Topsy,
just grows. In April of 1953 the
view
of
the
itself
the
to
pur¬
wholesale
modeled
their
find
ours
farm
policies after
themselves
in
similar
predicaments. Argentina has been
supporting the price of her staple
cotton at about 20 cents per
pound
friendly nations. Hence, the con¬
tinuation of the reciprocal trade higher than the U. S. price. Re¬
sult? Increasingly greater cotton
for
a
our
agreements and our receptivity to
of the slogan "trade, not aid." For¬
mer¬
eign countries are anxious to trade
day.
case
calls
storage
for
Costs
aspect of
because
increase
of
their
opportunity
dollar
balance
also to take advantage of the
high
support
farm
prices
of
the
U. S. These support prices are so
high that during the potato fiasco
in
1949
and
Canadian
1950
toes added to the
the breadth of the U.
sold
American
south
as
Now
pota¬
.glut by spanning
S. and out¬
potatoes
as
far
Miami and New Orleans.
American
consumers
are
in¬
carryovers
takers.
(and
with
coffee!).
cotton.
down
not
enough
Brazilian
So
Recently
closed
ton
just
—
So
her
with
cotton
Egyptian
Egypt,
which
Alexandria
Cot¬
Exchange by government de¬
cree
on
over
the cotton
to
1952, has taken
business, all losses
financed
by government
be
loans.
Nov;~23,
This
is
our
to
answer
the
political and economic feasibility
of
a
"two-price
system."
The
spectacle
with
ton
of
each
governments
other
markets
for
with
vying
limited
their
cot¬
interven¬
creasingly denied the chance of
tion-bred gluts is not conducive to
buying the cheaper foreign com¬
a feeling of national
security.
modities.
Secretary Benson had
brought about partial
embargoes
strictions
or
on
Even
complete
quota-licensing re¬
imports of dried skim
or
when
in
engaged
ally
called
governments
have
cartels—euphemistic¬
"agreements"—to at¬
and
tempt to liquidate their subsidized
linseed oil. Imports of butter and
butter oil, peanuts and peaunt oil,
farm surpluses—their efforts have
milk,
cheese,
flaxseed, rice,
been
futile.
The
four
export na¬
inventory of butter
have already been halted
by the tions in the International Wheat
pounds. By July,
Truman
Administration. Foreign Agreement are the United States
the
figure reached
178
million
Canada, and France.
pounds. By September, 200 mil¬ exporters are confused. Are not Australia,
the Americans staunch defenders Importing countries in the
Agree¬
lion; and in October, 278 million.
include
The government is buying butter of competition? Is this "trade, not ment
Austria, Belgium,
at the rate of greater than 1 mil¬ aid?"
Bolivia, Brazil, Denmark, Ireland,
•*,>
lion pounds a
day.
As already
Machinery, as a matter of fact, Israel, Italy, Sweden, South Africa,
noted, the dairy industry finds it¬ exists for the halting of all farm and England. To participate in the
government
125 million
was
imports as the occasion arises. Agreement, and to bridge the gap
for example, Section 22 of the Agricultural Ad¬ between the high U. S. support
cheddar cheese (government in¬ justment
price and the world price, the
Act
of, 1938 provides
ventory in March, 1953, 75 million that, except in emergency cir¬ American government pays sub¬
self host to government interven¬
tion
in
other ways,
pounds;
as of October, 1953, 215 cumstances,
theDepartment
pounds) and dried milk Agriculture must investigate
(government inventory in March, situation where imports of
million
1953,
170
million
pounds;
as
of
any
any
of agricultural
commodity "are be¬
October, 1953, 417 million pounds). ing or are practically certain to
be imported" in such quantities
Government intervention is de¬
government reduces
and
accelerates
substitutes.
strides
of
consumption
the
search
for
Certainly the great
oleomargine in recent
stantial
porters.
subsidies
For
to
U.
S.
ex¬
example, from mid-
1949
to
have
shipped 667 million bushels
mid-1952
of wheat to
the
to
exporters
importing members of
Agreement
millions
our
at
a
cost
of
$423
the
partment is satisfied these condi¬
taxpayers. Thus
subsidy in those years
ranged from 56 cents to 67 cents
tions
a
as
to interfere with domestic
can
government had al¬
committed
in
One
price
feating itself in a number of ways.
By propping up farm prices, the support operations. When the De¬
day instead of
der-Secretary, that "factories
normal
World
vessels
to Grade C.
by the gov¬
ernment's handling of the cheese
problem, a problem like most of
the
chant
foreign repercussions of
American farm intervention.exist.
hundreds
of
they have been forced to re-grade
Inconsistency of farm policy is
posed
reconditioning
tities
is that it teaches
also well
Caves, abandoned factories, oil
tanks, schoolrooms, hangars, gym¬
nasiums, and even the
open
ground are being used. A recent
prpgram found necessary is the
wheat
happened time and
it must be with
commodities.
butter, Department of
Agriculture officials concede that
again in the past. Hegel once said
that the only thing history teaches
us
of
flood
moth-balled
Other
nature of the in¬
emergency
coming
even¬
see that
it just has to
with something better."
up
the
exist, it then makes
mendation
to
the
Tariff
for
Tariff
a recom¬
appropriate
action
Commission.
Commission
The
bushel.
[
The situation is
becoming
worse.
Two
huge wheat-growing nations,
favorably disposed to the free
world, were excluded from the
not
the high support price of butter. its own investigation before advis¬
so high that the government
It seems evident too that price dis¬ ing the President to apply restrictaking titlq to a million
tionist quotas on farm imports.
pounds a day, the new technique parities between price-supported
and
In the fall of
its
substitutes
are
could ultimately obligate the gov¬ cotton
1953,..for example,
the groundwork for
ernment
to
double
its
calling Secmassive largely responsible for the marked
sia.
price
of
370
a
pound,
a
years
is due in great
measure
to
then
the rate of
conducts
parity
price
was
purchases.
What then?
decline
of
sumption
York
lower
to
For example,
ers.
in
surplus.
can
will
the
any
before.
the
cure
them
raise just
fewer
on
make
accomplish
production
and
National
won't
show
We'll
The
utterly fails to
balance between
before
as
endless
an
Pratt, Kansas, warned an appar¬
ently naive government of the
obvious:
"Acreage
restrictions
tual involvement for both govern¬
ment and farmer becomes greater.
government
be
Chandler, Vice-President
the
of
Cheese
Amer¬
would
process,
cago in
farmers, being totally
my
striction
takes
ican
out
be the
will
acres
use
the
•week's wheat poll is that
one
synthetic fibers.
government carryovers
agreements, acreage restric¬
tions, exist to this end. But the United States have suffered from
Again, intervention breeds inter¬
new
acreage controls which the higher the government drives
ills brought on by these circum¬
vention, and the adverse reper¬
voting wheat farmers voted into prices the greater becomes the in¬ stances.
From a peak of about
cussions seem endless.
existence?
(The "voting" qual¬ centive for farmers to increase 1,468,000,000 square yards in 1947,
One of the more popular "solu¬
ification before wheat farmers is their output. The government tries such
exports have fallen to about tions"
to
the
farm
problem of
to note that of the 87% farmers to expand and restrict at the same
800,000,000 square yards."
current moment is the
"two-price
who voted for controls represent time. The result is a chaotic waste,
The irony in this story is ap¬
system." The two prices in ques¬
less than 30% of American wheat which
the
government tries to parent.
The
government
inter¬ tion are
a
high domestic support
farmers. It is probable that many pass off as a "policy."
ventionist
poses
as
friend
and
price and a low foreign sacrifice
of the 70% of the wheat farmers
Consider the
abject waste of protector to the cotton grower. price. Were
charity to begin at
who did not vote did so as a pro¬
this intervention. The almost un¬ But the actions of the government
home, one might think the prices
test.)
believable stocks carried by the interventionist contribute to a de¬
might be reversed. But even as it
One
reportorial study by the government is suggested
by a cline of per capita cotton con¬ stands the low foreign price
por¬
"Wall' Street Journal" represents Commodity
Credit
Corporation sumption, the rise of'the strongly tends the danger of our
magfarmers as having a sense of di¬ report of
May 31, 1953. The report competitive synthetic fiber indus¬ naminity
being misconstrued for
rection not like that assigned to showed that about $3.25 billion of tries, and the destruction of the
"dumping." Foreign farm organi¬
them
by the agricultural plan¬ government money was then tied farmer's
overseas
market.
The
zations would pressure their gov¬
ners.9
The planners
directed a up in farm inventories. A break¬ worker in the cottoh textile fac¬
ernments
to
resist
what
they
cutback in production.
But most down shows that of this $3.25 bil¬ tory is similarly hurt. The farmer
would charge as the wrecking of
of
those
interviewed
indicated lion $1.3 billion represented loans in
the
cotton
belt
is
now
the
their economies.
Moreover, they
that they would make up for the without recourse and
ward
of " the
$1.9 billion bewildered
gov¬
might retaliate in kind—attempt¬
acreage
loss by more intensive represented actual inventories in ernment. He is readjr to cast his
ing to dump their surpluses into
farming. Emmett Blood, a wheat government-owned or leased far vote for the government inter¬
American markets.
iarmer in the Wichita, Kansas, cilities. Normal means of storage ventionist who promises him the
Those countries which
foolishly
area, said about his restricted 600
are no longer possible because of
highest price.
of
controls, the
to
upon
ventionists
In
answers.
endorsement
government
American
be
August, 1953
partial
some
the
and
effective
how
And
alone
man.
What
On
time.
same
the Department laudably
attempts to boost production with¬
Department of
Agriculture scientists are perfect¬
ing a breed of cows which would
give 876 pounds of butterfat in¬
the
reduced
in August of 1953:
best acres for what
wheat I can plant.
I'm going to
in view of the continuing legisla¬
and
tion
hope
which
it
inherited.
What use lots of fertilizer
challenge for a revitalized farm there's enough rain to really make
policy there was went awry with it pay." Many farmers noted that
the Democratic victory in Wis¬ they would devote their acreage,
consin. The President capitulated not open to wheat to other grains
to the interventionists.
Surpluses would
On Oct. not restricted.
15, 1953 he projected a policy of course then pop up elsewhere,
as in the 30's.
Intervention by re¬
continuing high supports. The Ad¬
policy
the
hand,
hence to lower prices to consum¬
ican farmer to the situation paral¬
on
situation.
But
leling that of many an American
Indian
cheese
government
accepting
have
checks
interven¬
restricted?
acreage
of
years
the
for
voted
have
into fewer and fewer hands." Yet
the
Secretary
total capacity to produce
that his
the
The government is trying to travel
two roads in opposite directions
The Farm Problem
allow
from
Thursday, November 12, 1953
...
9 The Wall Street
Journal, Sept. 2, 1953.
in
the
of
use
the
cotton
of
capita
per
and
rayon
con¬
the
and
rise
other
Agreement—Argentina
pose
Each
H.
view," Federal
September,
Kantner,
"Monthly Re¬
of Atlanta,
Reserve" Balik
1953.
—
-
with India for
a
three-year agree¬
England,
prices
elsewhere,
from
Rus¬
surpluses to dis¬
of. Russia has been dickering
ment.
10 Arthur
and
have
the
sensing
has
agreement.
better
withdrawn
High U.
S.
Volume 178
Number 5272
The Commercial and Financial Chronicle
..,
support
prices have induced
record-breaking
crops
here.
In
of
hands
the
the
1953
October,
bushels
the
/taxpayers'
200
millions
loan
$1.1
could
have
recourse-
city
food
prices.
government.
Since support increment in food prices
wheat exports have been reduces money available for more
our
the previous year.
does
And thus
living fall.
buying from industry.
the
sensitive is intervention to
of
tenets
minority
democracy
representation,
vidual enterprise and
and
indi¬
to
responsibil¬
ity? Not very. In October of 1953
the
Department
it
found
of
Agriculture
to
necessary
penalties
farmers
on
tighten
violating
the
the
he
crop
new
basic
govern¬
the
order
lose
one
Now
over-produced.
new
farmer
lost
only
on
the
requires that the
support
all
on
other
illustrative
Also
of
this
is the nice attempt by
the
failing
govern¬
ment to absolve itself from
for
orders.
For
New York farmer
the
additional
his 200
of
acres
recipients of government
forms
being
Secretary
his
that
farm in 1950.
acre
of
He
on
was
in
Brannan
for
plan,
the
na¬
Secretary is asked to resign,
,The
the
to
answer
farm
prob¬
lem lies in neither rigid high sup¬
ports—nor
too
"flexible"
lower
(which would
ports
was
minimum
arbitrary
be
altogether too
does the answer
and
the
long-time trend of American
population from farm to city.
Only
return to the free
a
ket, gradual to be
farmer
cue
of
morass
nation
and
wage, social security, and collec¬
tive bargaining agreements."
An
acts
of
old
of
X's
Farmer
story
—
intervention
intervention.
for
vened
breeds
Having inter¬
group in
favored
one
country, the government tries
"to catch
up" but of
course
rarely
neighbors decide the case, the gov¬
ernment merely "advising."
It is
"democracy"
whither?
of
Letter
the march, but
Monthly Economic
on
The
Northeast
the
Foundation comments
"The
ation:
committees
hatchet work
Russia.
to
coercion
Similar
under
the
but
to
helps
and
the
found
was
the
Again,
over-capacity would
dissipate in the absence
supports.
The
sub-marginal
and
marginal
They always have.
of
will
farmers
the
to
16%
In the history
farm
country,
contracted
from
freedom.
and
"Administered"
of
the
standard
the
In
government
what
farmer
tomer may
where.
man
on
cus¬
take his business else¬
the
working
demand a healthy price
but he had t}o be
may
services
payroll to
a
the
Similarly
his
for
get it.
The com¬
petition of industry and commerce
compared to agriculture is just as
The farmer, on the other
severe.
hand, is generally sure of dispos¬
ing of all of his harvest however
low the price.
the
All
in
subsi¬
were
like that price,
not
does
minate
in
supposedly
intervention cul¬
called "par¬
arguments
the device
old Peek-Johnson idea
"equality."
Although compli¬
cated by the Department of Agri¬
dic¬ ity"—the
he had
of
to plant, how the land was to be
farmed, and how the crops were culture's current practice of pub¬
to be brought to market.
If the lishing an "old" parity, a "new"
farmer did not follow the detailed parity, and a "transitional" parity,
mandates,
provision existed for parity. J is simply a formula by
farmers
are
to get their
the confiscation of his farm. One which
telling opinion of the
"fair"
Court
decision on Wickard vs. Fillin 1942: "It is hardly lack
come.
recalls
the
reconstructed U. S. Supreme
in its
burn
fair
as
share
In
share
the
of
do
words
of
and
erty will not be in bad hands.
free
a
and
imbecile
and
to the
,
.
for the government
The
argument is
buying."
weak
on
sev¬
The call for supports
eral counts.
high farm prices so as
continue high farm purchasing
to maintain
to
ignores the origin of the
taxes.
To enable the
government to
prop
up
farm
prices, the city consumer has to
power
supports:
11 Essays
1914,
an
Economic
Liberty,
prosperous
Secretary
farmers
"we
don't
drought.
brazenly
intend
tells
to
had grown so
Oct. 3, 1953.
of taxation which
burden
the
horribly heavy
over
the
years.
If the Re¬
publican party had, in addition, assured the public that
it would
proceed at
and then worry
for
so
a
voters
as was
would be
course
actually the
Moreover, such
case.
manifestly inconsistent with
a
great
things that the party's standard bearer repeatedly
many
during last year's campaigning. Now, it seems to us
Administration to date has done fairly
that the
the matter of
that it must do much
seems
sort of
thing before it
to
us
can
that reduction in
more
of the
same
claim to have met the full hopes
of its supporters. But to
many
well in
cutting outlays by the Federal Government.
It also
of
not worry about, the deficit, we,
or
part do not believe it would have attracted nearly
our
many
said
to reduce taxes right and left—
once
about,
it is crystal clear
us
outlays must first lay the foundation for
greatly reduced tax collections.
Again, surrender to the farm lobby would certainly
and
demand
itself
and
supply;
legislation
by
reactions,
bankruptcies."
and
punishes
gluts,
and
us
of
members
but such
eral
aid
of
words
the
Texas
the busi¬
of
ness
to
citizens
government,
to
not
support
of
the
the
tant
With
of
govern¬
the formidable
a
and
opposition
politicians—
high percentage of farmers
—
the
road
back
easy one.
The free
party
O'Brien
First
are
now
California
Montgomery
affiliated
approaching
stand
his
on
from
good
own
time
a
Then
feet. It
as any
there
are
to
us
those who say
Maybe
as
that this is at least
that to be saved the
so,
but if the price it must pay for peace is as high
organized labor apparently demands, no medals for
statesmanship
if
we
political,
are
to be earned by any such course. And
venture at least upon the fringe of things
may
observe that if the political record of Senator
the bete noire of the
we
Taft in Ohio (Senator Taft who was
elements
in
organized
labor
now
denunciation of the Eisenhower
guide,
any
or
Eisenhower himself last year,
political
year
party can win the
is by
no means
essential
to
Victory
Administration and the Repub¬
approval of the electorate next
by steadily and rigorously
task of
be taken as
success.
Key
lican
noisy in their
may
surrender to the organiza¬
tion leaders of the various unions
to
most
regime)
for that matter the triumph of President
We believe that the
Chronicle)
seems
Republican party must make peace with organized labor.
300
Street.
basically unsound agrarian
to make a start in this direction.
with
With Mutual Fund Assoc.
a
full economic potential in this
our
mar¬
Company,
Montgomery Street.
have become almost hysterical,
country, the farmer must be permitted—nay, obliged—to
the trap of intervention and chaos
an
the
degree to the growth of
thing
as
is not
get decidedly in the way of reduced
present day economy. If we are ever to realize any¬
support the citizens."
bureaucrats
supporting the
situation, which already is one of the major weaknesses int>.
our
ment to
enthusiastic about
outlays would also contribute further in impor¬
drought
farmers of his day: "It is
more
expenditures and thus of the tax relief about which some
President
the
In
to feel
embattled farmer
Grover Cleveland in vetoing Fed¬
do
Education,
i
reduce
to
would,
understand that such savings
given to
was
used
one
by
(Special to The Financial
York Times,
public
made. No
assertion to the effect that
an
ety
artifice
away
12 The New
the
would be
The Presi¬
of Agriculture in¬
Committee
believe, quarrel with
we
that promises of major
say
were
party next year. Not only would further billions to the
soci¬
era
vestigates the meat-packers. The
Chairman of the House Agricul¬
ture
expenditures
of value in
themselve
dent lays blame upon the
The
Expenditures
plainly be fair to
in
and often
equilibrium
with present farm programs
SAN
FRANCISCO,
Calif.—
unless we get something better." 12
J.
Flanagn, Jr. is now
Deficits plague the new Adminis¬ Daniel
tration but it
can't get off the with Mutual Fund Associates, 444
The Foundation
Cuts in
reductions
were many
given.
the
and
maintain farm income.
Inc., Irvingtonon-Hudson, N. Y., 1952, pp. 144-145.
for
a
As always there
assurances
It would
be difficult
not lead
in¬
proportion
1909-
year.
course,
promised during the election
was
persevering. The level of the
more surely kept than is
.
they have to cut their
campaigns last
not defer providing it—
It would, of
consequences.
precisely what
say
industrious, brave
for farm¬
ket
calls for
self-reliance.
The
to regulate that which it subsi¬ ers. The proportion is determined
by a comparison of farm costs and question is: Have we the courage
dizes.''
farm prices then and now, the De¬ to be free?
On what logic does the farm
intervention rest, if any?
First, partment's Bureau of Agricultural
Economics doing the figuring. Yet
Joins Brush, Slocumb
there is the anti-depression argu¬
in the light of the dynamic nature
ment. Charles Brannan put it suc¬
(Special to The Financial Chronicle)
of prices, why should a particular
cinctly when he was Secretary of
SAN
FRANCISCO,
Calif.—
relationship be preserved?
The
Agriculture. In support of his own
period 1909-1914 becomes increas¬ Kimball S. Palm is now connected
"Brannan Plan," he said to Con¬
ingly out-of-date.
It is hardly with Brush, Slocumb & Co., Inc.,
gress:
sacro-sanct.
And
prices/ which 1
Montgomery Street, members of
'"It can help prevent depression:
have the job of adjusting produc¬
Most depressions have been farmthe
San
Francisco
Stock
Ex¬
tion to consumption, are clearly
led and farm fed.
Farm prices
change.
prevented from doing that job.
traditionally
go
down
before,
In the meantime, the entangle¬
faster,
and farther
than other
ment
becomes
worse.
Surpluses Two With First California
prices.
Farm people want to
(Special to The Financial Chronicle)
pile up. The Republicans lose an
buy industrial goods, but when
important Congressional seat in
SAN
FRANCISCO,
Calif.—
their prices go down in relation
Wisconsin
for
their
failure
to
Wilbur E. Figara and Martha R.
to the prices they have to pay,
of due process
regardless of
Republican party promised
now
commonwealth,
is not
sea
the
same
just
In
property rushes from the idle and
form,
existed in the base period,
virtue, and they will
justice and prop¬
themselves
national
elementary
is the.
talent
is to be said of the constantly
major tax relief, and must
to
but
revenues,
population
96%
The
now.
san??
reiterated statement that the
find
and better fields of endeavor.
new
total
farm
Gov¬ justifying farm
Labor
the
Farmers
ernment.
tated
well
opposition."
silence
dized
the
do
borrowed from
was
works
It
England
this situ¬
on
original idea of hav¬
local
ing
Farm
expenditures by cutting off
the
quickly
has
does.
in¬
own
in
argument in present circumstances is hardly con¬
an
vincing. Much the
Govern¬
represent
the farm
buffer for
a
as
terventionist.
real
The
executed
course
such
ment-induced
have five min¬
farmers.
of
is
reductions
res¬
from
intervention.
to be the aim of
appears
party. It is all very well for them to talk about forcing
mar¬
will
sure,
Precisely that
influentially placed members of the Republican
inconsistent
prices
therefore
proof of lessened com¬ Ralph Waldo Emerson a century
by
ago:
the
Department
of
Agriculture petition. How false. Administered
"Give no bounties, make equal
field representative in the Federal prices obviously does not result
in "administered" or certain in¬ laws, secure life and property, and
building at the county seat.
The
you will not need to give alms.
local
farmer
committee
neatly come. True, the businessman may
set his price. But if the customer Open the doors of opportunity to
committee
action
few
a
inefficient farmers must return to
organization
of living of all would rise.
utes to present his case on a cer¬ charges that nowhere in the econ¬
The free market solution flies in
tain
Tuesday »afternoon.
The omy is competition as severe as
the face of crass "smart" politics.
informing
letter
further
said: it is for the farmers. Farm prices
The farmer's vote is a powerful
"Failure to appear at this hearing under the pressure of supply and
weapon.
Remember '48, say the
may
be considered a waiver of demand find their own levels, and
politicians.
Effective leadership,
your
right
in
connection with farmers have to abide by them no
matter how
low.
The business¬ perhaps with bi-partisan support,
such appeal." 11
should be equal to this task.
Un¬
The
granting or denial of an man, according to this argument,
less it is, farm and other interven¬
"administers"
his
price.
The
acreage allotment thus ingeniously
tion will rob us of our property
makes
use
of
the
local
county working man "administers" his.
told that he could
We See It
As
nation's finances.
sup¬
to
prove
35
Continued from first page
by high brass in the farm bloc.
claimed
equivalent
man's
laboring
pro¬
other
example,
farmer's
"the
the
in
extended
other classes
to
tion.
sow
wheat
of not
parity.
argument put and over-intervention. The solu¬
justify farm interven¬ tion is progressive disinvestment
that farmers are merely from agriculture.
The subsidized
tection
the
to
reminded
in
lost
one
Genesee
90%
The
is
promise
"100%"
to
is
more
example,
in
sought permission
Valley
13
blame
enforcing its acreage restric¬
tion
it
merely
crops.
campaign
parity but
Another prevalent
forward
restriction
violater
President
his
of
gained
city
industry
business
tion
support
of
standard
The
tion.
Nor
in farm political).
business. lie in the proposed "two-price sys¬
The city-farm inter-dependency is tem"—high
for Americans,
low
Our
exaggerated.
High national pur¬ for animals and foreigners.
chasing power comes from high problem is vast over-production
usuable productivity.
stemming
from
over-expansion
What
wheat acreage curbs. Previously a
ment
sup¬
has to pay higher
Again the
added
consumer
falling at the rate of one-third of
How
to
gone
port industry was siphoned off to
Moreover, the
of the government.
Another
under
The tax money
collector.
tax
which
million
billion
money.
are
dig down in his tax pocket to pay hook of expensive farm interven¬
the
the
to
1951
427
were
about
or
in
government
(1863)
returning
us
long cherished American
traditions. To that task we hope
they will dedicate themselves
during the next year.
pushing ahead with the'*-
and our affairs to well known and
with renewed determination
(1864)
The Commercial and Financial Chronicle
The following statistical tabulations
Indications of Current
latest week
Business Activity
week
Lateit
AMERICAN IRON AND STEEL INSTITUTE:
Indicated
steel
Equivalent
Steel
Week
(percent of capacity)
operations
Previous
or
or
month available.
month ended
Month
§92.3
"93.0
96.3
106.6
BANK
Nov. 15
§2,092.000
*2,096,000
2,172,000
2,215,000
of
oil
output—daily average
42 gallons each)————
—■
Crude runs to stills—daily average (bbls.)
Gasoline output (bbls.).
and
6.027,600
Oct. 31
116,867.000
6.830,000
6,893,000
6,892,000
Oct. 31
23,713,000
23,615,000
24,045,000
23,687,000
—————Oct. 31
2.721.000
2,277,000
2,553,000
2,587,000
(bbls.)
Oct. 31
(bbls.)
—Oct. 31
Stocks at refineries, bulk terminals, in transit, in pipe lines—
10,173,000
9,900,000
10,312,000
9,907,000
(bbls.)-
oil
Distillate fuel
output
Residual fuel oil output
Finished
and
unfinished gasoline
Kerosene
(bbls.)
Distillate
fuel
oil
8,163,000
8,525,000
8,249,000
143,368.000
142,666,000
143,111.000
37,394,000
37,260,000
Oct. 31
132,767,000
127,052,000
52,633,000
51,912,000
780.363
804,413
812,554
654,731
665,931
672,846
U.
$152,790,000
$195,442,000
88,529,000
$358,366,000
262,008,000
$170,023,000
5
84,188,000
120,681.000
64,261,000
96,353,000
85,840.000
74,761,000
5
56,008.000
87,388.000
71,446.000
57,272,000
8,253,000
8,470,000
14,394.000
Month
—
(millions
of
of
9,120.000
9,275.000
9,230,000
682.000
678.000
862.000
Oct. 31
82,800
83,900
89,300
63,600
DEPARTMENT STORE SALES INDEX—FEDERAL RESERVE
SYSTEM—104 <-49 AVERAGE = 100
Oct. 31
113
113
112
115
$43,107
dollars*:
:
;
10,435
*10,431
9,862
22,161
*22.033
19,745
$73,761
*$78,311
$72,714
$1,469,252
9,265,000
604.000
'$45,792
Aug.
Total
Oct. 31
7,529
COM¬
17,489,000
Oct. 31
Beehive
coke
—
(tons)
CIVIL
Electric output
FAILURES
October
Total
Nov.
AND
INDUSTRIAL)
—
DUN
7
8.397,523
8,361,593
8,307,309
7,806,795
5
207
213
136
Nov.
Pig iron
3
4.634c
4.634c
4.634c
4.376c
Nov.
3
$56.59
$56.59
$56.59
(E.
M.
&
—!
J.
;
3
$35.33
$34.17
$31.33
$42.00
tin
(New
Lead
(St. Louis)
Zinc
(East
St.
29.700c
29.700c
29.650c
4
28.850c
28.875c
28.225c
34.675c
Nov.
4
81.750c
81.000c
82.250c
121.125c
Nov.
4
13.500c
13.500c
13.500c
13.625c
Nov.
4
13.300c
13.300c
13.300c
13.425c
Nov.
4
10.000c
10.000c
10.000c
at
at——
at
-
Louis)
at
-
24.200c
__Nov. 10
95.40
95.61
95.38
97.26
106.39
106.04
104.83
Nov. 10
111.44
111.07
109.79
108.52
108.34
106.74
106.04
105.86
104.31
108.70
Nov. 10
100.00
99.52
98.73
103.47
Refined
and
Stocks
103.97
102.80
106.39
Produced
106.04
104.66
109.42
Shipped
107.93
106.92
112.19
Nov. 10
2.84
2.81
2.82
2.69
Nov. 10
3.37
3.39
Nov. 10'
3.11
3.18
2.99
3.25
3.26
3.35
3.40
3.49
3.75
3.78
3.83
3.49
3.51
3.58
3.37
Nov. 10
3.37
3.39
3.47
3.20
—Nov. 10
3.25
3.28
3.34
3.05
Group
Group
Industrials
MOODY'S
COMMODITY
INDEX
Nov. 10
NATIONAL PAPERBOARD ASSOCIATION:
Orders received (tons)
Production (tons)
Percentage
Unfilled
of
PAINT
1949
at
DRUG
AVERAGE
=
390.6
407.1
Oct. 31
end
of
of
Number
Dollar
Customers'
226.435
Customers'
423,728
463,706
590,808
452,959
105.93
105.92
105.70
109.86
6
sales
of
Short
of
23,472
19.206
21,815
25.139
657,320
564.675
623.419
694,152
$24,127,493
$25,418,527
$30,480,614
22.299
18,247
18.578
218
20,797
183
288
_Oct. 24
18,064
18,290
521,120
534.203
Oct. 24
7,566
10.686
Round-lot
Short
,Oct. 24
617,880
515,224
523.517
$23,996,330
589.974
$20,106,330
$20,078,962
205,900
153,190
146,830
170,310
Oct. 24
205,900
153,190
146.830
235,930
226,120
273,210
Transactions of specialists
Total purchases
Short
sales
in
Total sales
Other
Other
637,370
539,570
1.030,640
Oct
17
201.900
145,950
228.300
17
15,800
(1947-49
=
—
236.100
S.
DEPT
Processed
Meats
—
17
171,780
144,800
273.700
164.500
221,190
182,447
352.320
223.700
41,800
33,600
57,290
All
17
212,195
218.809
278.294
17
325.780
253,995
252,409
335,584
348,110
1.050.210
872,747
17
Jan.
1,
1353
COMMERCE)
&
NEW
(millions
tllncludes
1.624.600
964,910
17
184.610
163.570
266.740
878,535
147,370
773.209
1.423.184
17
(in
personal
and
OF
employer
salary
against
the
Jan.
Nov.
1,
of
1952
IIIIIIIINov."
foreign crude
basis
♦26,514
21,893
$30,248,000
$30,120,000
$29,293,000
$287.0
*$287.5
$271.3
COMMERCE)—Month
—
receipts,
total
disbursement
-
of
_
_
200.7
__
_
-
-
--
-
181.9
'90.6
80.6
*24.2
22.2
33.6
social
*52.9
24.2
_
-
for
185.4
197.3
53.0
_
contributions
201.2
196.8
89.9
.
..
industries
employee
-
labor
Total
income
PRICES
transfer
♦33.5
33.1
;
"
49.5
in¬
1,063,145
936,779
1,689,924
_
4.2
.
_
RECEIVED
NUMBER
...
income and dividends
BY
U.
—
S.
1100
110.3
3
93.4
94.3
96.1
104.3
104.7
104.5
104.2
1G5 5
3
I
3
86.9
All
OF
1941
—
108,587,670
tons.
on
87.0
new
83.9
99 2
114.6
112.1
annual
capacity
of
117,547,470
21.0
13.5
13.4
251.9
INDEX
AGRICUL¬
=
100—As
farm
products
258
and hay
295
237
272
215
grain
259
237
Crops
218
236
198
197
233
430
426
436
277
269
319
Fruit
110.0
114.6
114.6
§Based
*22.4
*270.6
Cotton
109.9
runs.
22.5
of August 15:
Unadjusted—
1,173,170
3
4.7
50.6
13.6
FARMERS
DEPT.
3.3
5.1
*49.5
270.3
income
1909-July,
4.2
5.1
49.3
-
payments—
nonagricultural
Food
nov"
~
foods"
$43,107
dollars):
billions*:
income
Personal interest
1.025.800
3
!._......
barrels
19,903
*$45,792
SERIES—
of
INCOME IN THE UNITED STATES
Feed grain
601,000
$23,200
*19,809
SALES
Proprietors and rental income
OF
II
as
INVENTORIES
TURE—August,
17
—,
figure,
,
205
207
205
221
216
229
262
268
-
Tobacco
commodities other than farm and
•Revised
♦$25,983
employees in manufac¬
August
August
Total
^ov
i
6,372,000
—
22,330
'
.
.....
of
OF
of
Other
100):
foods
8,530,000
*7,033.000
25,521
of
surance
116,000
All
;
15.402.000
*10,112.000
$46,165
Average =100*
industries—
Government
Commodity Group—
commodities
Farm products
*17,145,000
20,002
number
Service
156.400
Oct. 17
'
U.
122.2
—
Commodity producing industries.
Distributing industries
8,100
155,980
16,470
12S.330
37,600
17
Illllloet!
Z.I—III Oct!
Oct
SERIES
of
Less
Zl—IIIIIZZoct.*
NEW
98.0
*150.7
7.055,000
(1947-49
(DEPARTMENT
660,560
Z— I-_IIIIIZIIIIZocL
PRICES.
—
5,481,000
*111.4
9,932.000
Avge.=100i
manufacturing
PERSONAL
543,620
rales
Other sales
Total sales
6,748,000
*5,592.000
17,037,000
(1947-49
Total
116.940
903.790
Oct. 17
_
12,229,000
*8,183.000
149.0
._
Nondurabies
625.210
171.350
Total sales
Total round-lot transactions
for account of members—
Total purchases
LABOR
1.043.980
113,500
..ZIZI—IIIlllZoct'.
IIIIIIIIIIIIloct!
IHIIoct!
sales
WHOLESALE
544.350
426.C70
purchases
Short
627,120
127,010
the floor—
*13,775.000
8.035.000
$26,163
Indexes
Wage
I_—Oct
off
13,644.000
-
goods
Total
Oct. 17
sales
1,454
of
workers 1
manufacturing
(DEPT.
Total
510.360
~
2,362
DEPT.
manufacturing
Month
6,253.770
the floor—
"
Other
9,927,730
17
sales
Short
5,047,770
17
—
transactions initiated
Total
6.036,900
not*
Other sales
Total sales
835
2,631
Inventories:
registered—
—
op
4,177
110.3
S.
SERIES—Month
(production
MANUFACTURERS'
6,048,480
I—IIIHIIIIoct!
—
805
4.222
5,609,000
PAYROLLS—U.
goods
Nondurable goods
SPECIALISTS:
which
purchases
Short
9.417.650
Oct. 17
transactions initiated
Total
205.290
MEM¬
sales
Other
in stocks
OF
299,380
4.743,390
Oct. 17
Total sales
286,570
5.800,330
510.080
Oct. 17
AND
--
Sales
Oct. 17
ACCOUNT
30
MONEY IN CIRCULATION—TREASURY
DEPT.
—As of Aug. 31
(000's omitted*
(SHARES):
FOR
1.199
564
466
pounds)—
Durable
279,150
sales—
TRANSACTIONS
All
170.310
Oct. 24
BERS, EXCEPT ODD-LOT DEALERS
.
Durables
by dealers—
sales
SOUND-LOT
(1.C00
goods
Estimated
$23,338,174
Oct. 24
sales.—
sales
Other
1,171
2.393
4.515
--
_
4.281
ROUND-LOT STOCK SALES ON THE NEW
YORK
EXCHANGE AND ROUND-LOT STOCK
TRANSACTIONS
Total
94,745
263
1,756
-
594.255
5,396
;
MEMBERS
All
20.673
625.446
shares
OF
-
LABOR—REVISED
Payroll
124
22.081
Oct. 24
sales
Oct. 24
ACCOUNT
167,747
2.350
manufacturing
turing
TOTAL
FOR
185,511
60,177
64.312
July:
All
$29,262,676
by dealers—
purchases
Number
.
53.966
132,717
__
_
Employment Indexes
■»
Oct. 24
sales
Round-lot
90,475
2.643
Nondurable
Oct. 24
sales
Other
42,244
106,944
900
__
__
Durable
Oct. 24
shares—Total
42.162
33,534
44.690
171,759
-
30
etc.
EMPLOYMENT AND
All
Oct. 24
value
Number
248,660
214,679
47.162
.
Produced
OF
sales-
81,857
86.379
98.003
_
—
_
Shipped
Oct. 17
other
69.948
107,980
97
INDEX—
sales
103,262,000
bales)—
September
244,854
sales
other
71,655.000
83,622,000
109,917
.
Grabbots,
93
;
shares—Total
Customers' short sales
Dollar
Motes,
371.431
Oct. 24
of
59,998.000
89,270,000
241.453
30-_
_
259.699
Odd-lot purchases by dealers (customers'
sales)—
Number of orders—Customers' total sales
Round-lot
Produced
97
Nov.
short
—
Stocks September
—
Customers'
288,212.000
104,917
«l,000-lb.
213.773
100
shares
77,223,000
918,535,000
198,719
_
Fiber
262,973
value
Number
Hull
96
orders
of
156,459.000
112,687
_
_
227,040
SECURITIES EXCHANGE COMMISSION:
Odd-lot sales by dealers (customers'
purchases) —
Number
80
Shipped
..Oct. 21
PRICE
-
...
(running bales)—
September 30
257,169
(STOCK TRANSACTIONS FOR ODD-LOT
ACCOUNT OF ODDLOT DEALERS AND
SPECIALISTS ON N. Y. STOCK
EXCHANGE
Stocks
Oct. 31
period
REPORTER
-
(tons*
Oct. 31
(tons)
AND
394.0
—
September
Shipped
394.3
103,809.000
52,397,000
64,594,000
97,992,000
-
(tonsi
Produced
Stocks
activity
orders
Linters
3.54
Railroad Group
Public Utilities
37,830,000
927,026,000
September 30.
(tons*
Shipped
3.24
Baa
89,090,000
30
157,634,000
Stocks, (tons* September
Produced itJons)
3.06
3.39
Nov. 10
—
3.09
Nov. 10
————
—Nov. 10
Nov. 10
Aa
A
OIL,
3.21
521,460
1,034,750
Hulls-
AVERAGES:
3.46
1,169,950
131,638
104,666,000
(pounds*
(tons*
104.31
—
276.415
250,099
Meal—
106.39
Aaa
September
(pounds*
Consumption
108.52
;
1,323,217
1,063,646
*
(pounds)
Produced
Cake
Nov. 10
—
—._
509,670
(pounds)
Nov. 10
Government Bonds
(tons)
September 30
Oil-
Stocks
Nov. 10
Utilities Group
Industrials Group
Average corporate
of
(pounds)
Public
DAILY
8,563,741
PROD¬
COMMERCE—Month
mills
(pounds)
Railroad Group
YIELD
244,063
Oil—
Produced
112.00
Nov. 10
j
Baa
U. 8.
SEED
(tons)
(tons)
Stocks
113.31
Nov. 10
II
A
MOODY'S BOND
414.309
89.767
COMMERCE)—
COTTON
OF
at
Crude
109.24
—
IIII
658,377
407,073
8,737,383
AND
Crushed
Stocks
12.500c
Nov. 10
~
788,004
501,463
Seed—
Shipped
—
Average corporate
Aa
(DEPT. OF
18
Received
V/'
MOODY'S BOND PRICES DAILY AVERAGES:
D. S. Government Bonds.
Aaa
!
496.840
September:
4
-Nov.
York)
October
SEED
Cotton
Nov.
Export refinery at
(New York)
of
COTTON
QUOTATIONS):
Domestic refinery at
Lead
As
UCTS—DEPT.
Electrolytic copper—
Btraits
municipal
$1,446,381
619.732
612,860
__
$1,116,572
856,392
111,392
and
——
$55.26
Nov.
(per gross ton)
METAL PRICES
construction
construction
COTTON GINNING
lb.)
Scrap steel (per gross ton)
of
143
IRON AGE COMPOSITE PRICES:
(per
NEWS-RECORD —Month
Federal
Nov.
steel
EN¬
—
construction
State
&
BRADSTREET, INC
Finished
S.
Public
CONSTRUCTION
(000's omitted*:
U.
Private
(in 000 kwh.)
(COMMERCIAL
ENGINEERING
GINEERING
EDISON ELECTRIC INSTITUTE:
t
SERIES
OF
Manufacturing
MINES):
Bitumincus coal and lignite (tons)
Pennsylvania anthracite (tons)
DEPT.
-
7,437
THE
BRADSTREET,
Retail
5
IN
30.583.000
$454,199,000
7,433
(NEW)
&
37.874,000
$477,534,000
$46,165
NEW
Wholesale
Nov.
BUREAU OF
5
5
Nov.
S.
37,669.000
September..
INVENTORIES
Nov.
and municipal
(U.
59,646,000
between
-
STATES—DUN
INC.—Month of
Nov.
Federal
COAL OUTPUT
shipped
INCORPORATIONS
UNITED
BUSINESS
Nov.
—
construction
construction
State
and
7,439,000
16,476,000
63,855,000
$514,941,000
MERCE
construction
S.
Private
Public
1
Total
BUSINESS
NEWS-RECORD:
Total
credits
—
goods stored
countries
foreign
663,358
ENGINEERING
—
on
862,116
(no. of cars)__Oct. 31
RAILROADS:
CONSTRUCTION
ENGINEERING
warehouse
exchange
26,275,000
65,703,000
shipments
Dollar
108,487,000
28,826,000
30:
.
Domestic
$231,568,000
10,110.000
BANK
i
Domestic
127,925.000
10,734,000
Sept.
$211,495,000
134,767,000
of
$136,067,000
$237,182,000
YORK—As
$134,539,000
OUT¬
RESERVE
53,292,000
Oct. 31
Ago
$147,873,000
ACCEPTANCES
FEDERAL
—
Exports
120.267.000
Oct. 31
134,631,000
51,558,000
Year
Month
33,760,000
(bbls.) at
(bbls.) at
freight loaded (number of cars)
Revenue freight received from connections
NEW
Imports
120,563,000
37,963,000
thousands 1
(in
DOLLAR
Based
7,991,000
Oct. 21
Revenue
CIVIL
September
OF
6,549,050
6,442,700
—Oct. 31
AMERICAN
OF
at
at
Residual fuel oil
ASSOCIATION
(bbls.)
*6,224,350
of that date:
Previous
—
STANDING
—Oct. 31
—
are as
BOARD OF GOVERNORS OF
THE FEDERAL RESERVE SYSTEM—Month
(bbls. of
condensate
Kerosene output
DEBITS
BANKER'S
AMERICAN PETROLEUM INSTITUTE:
Crude
of quotations,
cases
Month
-Nov. 1j
(net tons)
in
or,
either for the
are
Latest
to—
ingots and castings
Dates shown in first column
that date,
Ago
Week
.Thursday, November 12, 1953
production and other figures for the
cover
Y"*r
Ago
on
..
tons
1
Truck
_
crops
Oil-bearing
Livestock
Meat
Dairy
-
crops
and
—
products
276
products
Poultry and eggs
280
305
animals
318
.
310
316
372
267
—
i
261
295
230
223
225
Volume 178
Number 5272
Continued
from
from the business and
3
page
opportunities
and
conveniences
defense spending
any of us really
dread the day when a greater part
economy
drops
off.
cars
of the
nation's savings can be in¬
1954—perhaps several
vested
and
of 5
in the year
hundred
in
sell
million passenger
thousand
million.
If
than
more
build and sell this
cars
number of
in 1954, it will be
the fourth time in
history that
will
have reached this annual
tal.
And
that
business
5
we
will
for
year
mean
the
we
to¬
good
a
industry—
Whatever
the
automobile
and
just
exact
effectively
as
the
built
good
level
production
of
day after day in our way of life.
centuries of debate among
After
serious people about the re¬
spective merits of the metropolis
and the country, we have ended
the debate by creating a new kind
of living, the like of which the
very
positively and creatively to build
a
finer civilization just as well
it has
as
terrible
most
weapons
world
should take a
some of America's
the rush of the last
In
needs.
when we have reached
heights of industrial produc¬
tivity, we have also built up a
is going to be competition for the new backlog of need that it will
favor of the automobile buyer— take us a long time to work off.
competition the like of which this These needs are the kind that
country hasn't seen for nearly a grow out of progress. They are
be
may
next year and the next few years,
of one thing we are sure.
There
decade and
half.
a
The results of
decade,
new
the
young
going to be exciting. I can't
speak
for other manufacturers,
but I do know about the plans of
Chrysler Corporation.
You
probably noticed a few
cover
—are
weeks
back
that
Chrysler
Corp.
and the
Briggs Manufacturing Co.
agreed to the purchase by
Chrysler of the principal plants,
machinery and equipment of
Briggs for the price of $35 mil¬
have
lion.
As
been
supplying
know,
you
has
Briggs
with all the
bodies for our Plymouths.
This purchase is an indication
us
of the way we feel
ture.
have
We
about the fu¬
extensive
and we want to be
to
there
also
are
for
whole
I
kind
have
are a
automobile
The
reasons.
reason
you
the
of
the
solid foun¬
optimism about the fu¬
dation for
But
of
facts
giving
ture
fully equipped
them out.
carry
Now
been
plans,
is
economy
is
the
begin¬
great era of growth, not
We have only begun
to explore the possibilities of the
good life in America in this cen¬
ning of
at
tury
a
end.
the
of
have
We
progress.
been
growing fast, but our growth has
only multiplied our needs and our
opportunities.
it gets
Economic progress,
of
population
is
over
now
its
to
160
Just three years ago, you
the last decen¬
when
remember,
ning,
the
hot
end, of a big job.
Every step in
a
community
of new goals, new
within
sight
demands that must be met.
the
that
believe
I
American community is
the
of
aware
have
been
becoming
tremendous
tasks, problems, and
that
great
whole
new
opportunities
generated by the
of the past few decades.
Americans have been
busy
progress
We
meeting a long series of great
emergencies, filling a number of
extraordinary demands on our en¬
We have been too busy,
to
if
ahead
think
kind
of
we
perhaps,
sufficiently to the
we
could build
America
had
the chance to turn o,ur
minds and hands and machines to
the single task of
and
in
then
I
hear
building it. Now
someone
asking
half-way despondent tone of
voice what will
happen to the
a
produce.
we
pressways
Bringing it
of
kind
to date—making it
up
world
want!
we
building and staff¬
ing adequate schools in the sub¬
other
needs
Public
By OWEN ELY
Mountain Fuel
meeting these needs is not just a
drawing blueprints, as¬
matter of
involves
often
It
decisions
o/n
decisions
on
finding
and
taxes,
tractors.
con¬
tough
planning and zoning,
what should
Utility Securities
And
met.
be
must
be bunt
Supply Company
Supply Company is an integrated
Mountain Fuel
natural gas
with annual revenues of about $14 million, of which
about $1 million is derived from the sale of oil. The company pro¬
company
purchases and distributes natural gas at retail.
duces,
It brings
in
taken, the popu¬
first
how
and
community's
a
151 mil¬ project should be financed. These
there has been are problems for alert and active
citizens to solve through study,
a
net increase of nine million—
three
million
a
year.
In other discussion and cooperative action.
This is the kind of activity that
words,
we
are
adding another
this
does
Detroit
another
and
Pittsburgh
provide
can
a
who
wants
the to take a hand personally in build¬
in ing a great new civilization.
for
mean
satisfaction to every
American
individual
year!
to the nation every
gas
City, Ogden, Provo and 30 other mu¬
Utah includes Salt Lake
nicipalities, having an aggregate population of some 425,000. Thecompany serves about 94,000 residential
and small commercial
customers, 509 industrial consumers on a firm load basis, and 14
on an interruptible basis.
The business in Wyoming is only about
2% of the total.
In the 12 months ended June
30, 1953 total sales approximated
share
being interruptible industrial business;
about four-fifths of the latter sales were to Kennecott and Ameri¬
cities expand in
kets for houses, cars, products of great arcs
into the surrounding
every
kind we know and some countryside, we have not forgotten
that have not yet been created? the health of the central city.
It
rapidly, some restrictions on sales have proved necessary. An addi¬
tional supply of 58 million CF of gas per day from the Utah Natural
Gas Company
(an increase of about 37% over recent average
What
needs?
of
terms
in
mean
terms
had
bumper crop
four million
Some
mean
What
it
does
of markets—mar¬
that
remember
You
country
it
does
in
1947
the
its first
postwar
of babies — nearly
inclined to
were
think of the birth rates of the first
in
terms
hospi¬
of schools,
playgrounds, highways, and
public utilities of all
tals,
excitement
the
seeing
is the
we
all
our
city, after all, that gives the
a reason for being.
One of
suburb
the
developments
is the rediscovery
the value of the central city.
most
exciting
of recent years
of them.
people
In
in
expanded
kinds.
of
People
matter
how
and
out that no
supermarkets
finding
are
many
shops they have in the sub¬
how enthusiastic a sub¬
community may be in sup¬
porting cultural activities, there is
no substitute for the great variety
urbs,
or
urban
of !stores,
wide
the medical clinics, the
of
range
professional and
metropolitan
business services, the
libraries, the symphony orchestras,
the museums and the theatres of
People are also be¬
realize that these ad¬
vantages cannot be preserved au¬
tomatically. The continued health
a
large city.
ginning
and
to
great city
attention and
prosperity of
requires
any
constant
care—and
once
in
a
while
a
major
people of Pitts¬
burgh have shown the nation how
to go about giving a city this kind
operation.
You have worked system¬
Expansion of Suburban Areas
of
There is another fact about the
atically to bring about a balanced
care.
growth—by
building
parking fa¬
population that
cilities to receive the traffic gen¬
needs. While the
erated
by your expressways, by
population of the United States
has increased by 16 million since encouraging private capital to do
as much of the job as possible, and
1947, the residents of the suburban
areas
and
of the small
towns by giving due attention to cul¬
growth
points
of
to
our
new
tural and recreational needs.
within commuting distance
of big
mil¬
The
Allegheny Conference on
lion. In other words, Suburbia is
Community Development has al¬
growing faster than America.
ready taken its place in the his¬
Our cities have exploded
into tory of the country as one of the
cities
have
increased
countryside.
by
17
Pittsburgh
is
a
great,
original
variations
of
the
The population of basic democratic method of get¬
Allegheny County is twice the ting things done. It has demon¬
size, and the metropolitan district strated that people of all shades
three times the size, of Pittsburgh of political belief can forget their
This pattern is being re¬ differences when it comes to ac¬
peated throughout the country. It complishing something construc¬
proper.
does
not
mean
the
death
of
the
tive
for
38
billion
their community.
And it
given the world a demonstra¬
city. Far from it. It means that
tion it won't forget of the publicwe in America have found a way
community - minded
to live in
the open countryside spirited
American businessman in action!
or in a small town and also profit
CF, about 47%
While
Smelting.
can
output)
the
company
its operations
expanded
has
become available about Nov. 1. This
in 1954 to connect many new residen¬
space-heating customers to its system, and
scheduled to
was
should permit the company
tial
and
commercial
also to increase its industrial business.
the 12 months ended June 30, 70%.
purchased at relatively
Of the total gas obtained in
produced by the company and 23 %
was
low cost from other producers.
However, the
Utah Natural Gas Company
be obtained from
mcf at the delivery point near Provo,
purchased from other sources
cost about 20%.
gas
new
supply to-
will cost 21V20 per;
and it is expected that gas
(at lower prices)
will increase in
The company intends to seek an increase in rates*
to offset any
increased gas supply cost which may result from in¬
creased field prices and from the purchase of the new gas supplyFurther details on the gas supply are obtainable from the recent
Prospectus on the sale of 303,080 shares of capital stock, and from
the printed address made by President W. T. Nightingale before
the New York Society of Security Analysts on Nov. 4.
With the new supply of 58 million cu. ft. a day becoming
available from Utah Natural Gas Company and the Clear Creek
Field in central Utah, 55% of the gas
the
distributed will still be from
company's own production, 18% from field purchases and 27%
new pipeline purchases.
The company's developed and con¬
from
trolled
gas reserves
than
more
now
approximate 1.2 trillion
20-year supply at the estimated
a
cu. ft., which is*
1954 rate of with¬
drawal.
You
good example.
The Outlook for the Economy
things
lation of the country was
the
ergies and resources.
ahead,
lion. In three years
was
census
mean
Progress is endless.
advance
brings
road
by pipeline from the producing fields in southwestern Wyo¬
ming, northwestern Colorado and northeastern Utah, and dis¬
tributes it to consumers in Utah and Wyoming. The area served
nial
Pennsylvania
Turnpike into the heart of the
city on a new expressway-—and
then where are you? At the begin¬
mains to serve the suburbs.
the sessing
never
the
from
Many metropoli¬
suburbs.
the
sewer
place to park and rest.
traffic
went
the
that
The problem of
finds a postwar years as being abnor¬
You know mally high. But they have stayed
—from your experience in build¬ high—consistently over three and
ing a new Pittsburgh—how prog¬ a half million — and Census Bu¬
ress
brings its rewards in bigger reau estimates for the last two
responsibilities and bigger tasks. years show that total births are
You build a magnificent new air¬
again crowding four million a
port; you clear 59 acres of com¬ year.
mercial slums; you attract invest¬
Children
born
in
that
first
ment capital to build great new
bumper year, 1947, are now in the
office
buildings; you construct
first grade.
In another 15 years
five-story
underground parking or so
they will start getting mar¬
garages; you build gleaming new
ried, establishing homes of their
skyscrapers expressing the spirit
own, and setting new population
of
the new Pittsburgh in
steel,
records. Think of what this tidal
aluminum, and glass; you bring
wave
of new citizens is going to
once
rolling,
a
the Census
highly important
According
States
United
million.
future?
that
seen.
know
We
Building ex¬ provide new problems—new chal¬
is only part of the lenges—new opportunities. This is
tan areas, for instance, are years great task of road building that the reward of progress. This is our
behind in building the ever-ex¬ lies before us. The nation's high¬ way. This is our world. And, be¬
panding spiderweb of water and way system is sadly out of date. ing free Americans, it is the only
ago
a
the
estimates,
other
the
at
weeks
announcement.
What
overwhelming
big,
optimism
never
Take for instance the problems
is too small, and that
made
Bureau
^
another 15
us
possible
no
few
efficient—is»
and
least to accomplish, if we
communication
is full of hard work—we know
between suburb and city in this
that the jobs we get done will
age of the automobile.
The ex¬
pressways
built or under con¬ only point the way to many others
still
to
do.
Progress produces
struction in Pittsburgh, Los An¬
geles and Detroit, to mention only needs; and needs bring invention;
and
invention
always
means
three
striking
examples,
are
Our way
among the most fascinating struc¬ change and adjustment.
rapid
providing
pone
A
safe
task that will take
come.
the most logical means of
ways as
urbs is a coast-to-coast headache
way to post¬
—and it will get worse.
Roads,
certain expenditures—such
as
the purchase of bigger shoes streets and sidewalks, playgrounds
and
swimming pools and com¬
and
longer trousers for growing
munity centers—these and many
boys.
is
there
market.
many
confront
We
creating
of
married couple who dis¬
suddenly that a two-bed¬
house
room
that
kind
same
this competition—I can assure you
a
years at
this new pattern
For all of us of life means creation of the new
of living without giving it a great tures of our time.
—and it means replacement of the
deal of thought, and all of a sud¬ they hold out a thrilling promise
den we had it with us.
The re¬ of better and safer city living. old.
What we have today is a promsult is that we have created along And for you in Pittsburgh and for
And
wtih our new kind of living a us in Detroit they also mean ex¬ ise of a' better tomorrow.
whole series of new problems.
cellent business prospects for the that better tomorrow in turn will
at
look
has
about
Anyone who has fears or
the future of the
about
American economy
Auto Industry
better
roads,
better
better schools, better liv¬
ing?
Does any American really
doubt that this country can work
doubts
More Competition in
Do
homes,
of war?
good indeed.
very
as
in
reasonably
„
infinite
to be found in a
think the automobile
build
Adequate
variety of products and activities
Against this background of fact I
hood
of
Need
Transportation
the
all
the
and
The
professional
enjoy
Nothing is more important in
build at the rate of a $6 billion,
bringing
about
the
balanced,
big city. It is our healthy growth of a city and its dollar annual expenditure.
I have mentioned a few of the
way of having our cake and eat¬ suburbs than adequate transporta¬
They
ing it too.
tion.
Before this audience it is great jobs that lie ahead.
are a few
reasons for being sure
This explosion is the kind we unnecessary for me to dwell at
that the domestic economy will be
like in America. It is part of the length on this point.
You have
well occupied for a long time to
perpetual revolution that goes on recognized the need for express¬
Outlook for 1954 Auto Production
industry will
the neighbor¬
37
(1865)
The Commercial and Financial Chronicle
...
The company
is optimistic regarding the possibilities of further
expanding its gas sales.
In his
"First of all, gas service
can
urban
not
areas
served.
now
talk, President Nightingale said:
be extended into more distant sub¬
In this area there is a strong natural
growth in population and homes. Additional large industrial firms,
not
served
at
or new firms which are moving into our
excellent potential market. In the large in¬
terruptible industrial class of customers, the gas-marketing field
area,
still has
area
present,
also provide
a
very
large potential market.
is also being
using natural
The
an
gas
At present, the Salt Lake
surveyed by chemical companies interested in
base material for industrial chemicals.
as
company's
earnings
and
dividend
have
record
been
as
follows:
'
Gross Gas
1946
:
1947
1948
1951
„
__i
1952
.50
.75
.55
.86
.55
.94
.60
.91
.60
.91
1
t
i
fi
.70
.80
i
.60
1.24
f
.60
.99
1.15
13,228,415
.
8,312,790
3,954,016
10,974,675
1949
1950
$.45
.75
7,002,081
7,196,301
L.
$.71
5.644654
1945
Paid per Share
$4,870,657
5,514,436
5,765,679
1944
Per Share
•
Cash Dividends
Revenues
1943
Net Income
'
1
>
»
,
has
The
company
expects to earn at least $1.32 this year and is*
currently paying dividends at an annual rate of $1.
selling over-counter around 20-21.
The stock ia
,
J
£
38
The Commercial and
(18C6)
Financial Chronicle
ADDITIONS
if INDICATES
Now in
Securities
it Adams Properties, Inc., Washington, D. C.
(letter of notification) $50,000 of 8% promissory
notes, payable on demand. Price—At par (in denomina¬
tions of $5 to $5,000). Proceeds — To purchase secured
Nov. 4
Office—1604 K Street
deed of trust notes for investment.
Underwriter—None.
N.W., Washington 6, D. C.
Office
Road, Bronx, N. Y.
Farms
West
1432
—
Manning,
St., New
42nd
East
51
17, N. Y.
shares to
if Bermingham & Prosser Co., Chicago, III.
Nov.
Air-Springs, Inc., New York
30 (letter of notification) 9,000 shares
of common
Price—At market (for an aggre¬
gate price not to exceed $50,000).
Proceds—To four
selling stockholders.
Office—63 Wall St., New York,
N. Y. Underwriter—d'Avigdor Co., New York.
(par 10 cents).
(letter of notification) 17,320 shares of common
(par $2), to be offered for subscription by certain
employees. Price—$15 per share. Underwriter—None.
t
to
filed
28
be offered for
of record
each
subscription by common stockholders
17 on the basis of one new share for
held; rights to expire on Dec. 2.
be supplied by amendment.
Proceeds—For
shares
four
Price—To
Amalgamated Growth Industries, Inc.
Nov.
on
(par $5)
238,628 shares of common stock
Sept. 28 (letter of notification) 149,999 shares of common
stock (par 10 cents). Price—$2 per share. Proceeds—For
expansion
acquisition of patents, etc., and for new equipment and
working capital. Office—11 West 42nd St., New York
Underwriters
Hornblower
City. Underwriter—R. A. Keppler & Co., Inc.,
New York,
N. Y.
+ American Diamond Mining Corp.
Nov. 6 (letter of notification) 260,000 shares of common
Price—$1.15 per share. Proceeds—To ex¬
plore and develop the Murfreesboro, Pike County, Ark.,
property and for general corporate purposes. Office—
99 Wall St., New York 5, N. Y. Underwriter—Samuel W.
Gordon & Co., Inc., New York, N. Y.
stock (par $1).
•
American
Nov. 3 filed 150,000 shares of convertible preferred stock
to
$5)
be
stockholders
of
record
subscription
for
offered
Nov.
about
24
by
on
common
share-for-
a
Stone
and
if Bryant Air Conditioning Corp.
9 (letter of notification) 7,500 shares of common
stock (par $1). Price—At market (about $4 per share).
Proceeds—For working capital.
Office—35 East Poplar
Nov.
Airline
from
Carriers,
Transport
Under¬
Inc.
if California Fund, Inc., Los Angeles, Calif.
5 filed 400,000 shares of capital stock
(par $1).
Underwrite
Nov.
Price—At market. Proceeds—For investment.
•—None.
■
Service Co.
California Water
;'' .*
:
•
(11/17)
cumulative convertible pre¬
stock, series H (par $25).
Price—To be supplied
by amendment.
Proceeds—To repay bank loan and for
new
construction.
Underwriter
Dean Witter & Co.,
—
San
Francisco, Calif.
Capital Uranium Co., Farmington, N. M.
28 (letter of notification) 1,200,000 shares of
Underwriter—None.
St., Philadelphia 29, Pa.
Oct.
Burton
Picture
Productions,
Inc.
stock (par five cents).
mon
(letter of notification) 300,000 shares of com¬
stock (par 10 cents). Price—$1 per share. Proceeds
Sept. 24
Proceeds—For
mon
mining
—For
Fifth
production of movies and TV stories. Office—246
Avenue, New York.
Underwriter — Alexander
Co., Newark, N. J.
if Cable Link Corp., Detroit, Mich.
Nov. 4 (letter of notification) 100,000 shares of class A
stock
per
Mich.
Price
com¬
10 cents per share.
—
exploration, drilling and development of
Underwriter — Forbes & Co., Denver,
claims.
Colo.
Carolina Telephone & Telegraph Co.
Aug. 17 filed 33,320 shares of capital stock to be offered
for subscription by stockholders in the ratio of one new
share for each five shares helcL/Price—At par ($100 per
share). Proceeds—To reduce short-term notes. Under¬
writer—None. Offering—Temporarily postponed.
Underwriter—Gearhart & Otis, Inc., New York.
(par $1). Price — $3
working capital.
Office —
share. Proceeds — For
Derby Ave., Detroit,
19413
if California Central Airlines, Inc.
amendment. Proceeds—For
Nov. 5 filed
•
$600,000 of 7% convertible equipment trust
certificates, series A, and 890,000 shares of
—Geyer & Co., New York.
public—100% for certificates and
Price—To
Oct. 22 filed 80,000 shares of
share basis; with rights to expire on or about Dec. 10.
Certain stockholders have waived their rights to pur¬
chase 30,000 of new shares. Price — To be supplied by
working capital. Underwriter
70,000 shares to Sig Shore,
writer—Gearhart & Otis, Inc., New York.
both of
Securities Corp.,
Webster
&
300,000
(including 50,000
ferred
Reid &
Fidelity & Casualty Co., Inc.
(11/24-25)
(par
Weeks
—
400,000
certificates
be
James
75
cents per share for the stock. Proceeds—To finance the
acquisition of four Martinliners and one Douglas DC-3
&
New York.
program.
and
offered publicly;
the
to
are
James Wooten),
one
Wooten.
aircraft
(11/17)
Bridgeport Brass Co.
stock
to be sold to the underwriter
70,000 shares to Fred Miller and 50,000 shares to
5
Oct,
the
of
are
\
ISSUE
REVISED
which
of
cents),
50
(par
shares
PREVIOUS
ITEMS
•
shares
Underwriter—Carter
stock
Oct.
stock
cators.
York
SINCE
Registration
1953
Thursday, November 12,
...
common
stock
Central
Electric & Gas Co.
Illinois
(11/20)
Oct. 30 filed
70,400 shares of common stock (par $15) to
be offered for subscription by common stockholders at
American-Israeli Cattle Corp., Beverly Hills, Cal.
Atig. 24 filed 100,000 shares of class A common stock.
par ($10 per share).
Proceeds—To establish
and develop a cattle industry in Israel. Underwriter—
NEW ISSUE CALENDAR
Price—At
None.
November
American
Telephone & Telegraph Co.
Oct. 14 filed $602,543,700 of 12-year 3%% convertible
debentures, due Dec. 10, 1965. being offered for subscrip¬
tion by stockholders of record Oct. 30 in the ratio of $100
of debentures for each seven shares of stock held; rights
to expire on Dec. 10. Rights will be mailed on Nov. 5.
Conversion price beginning Feb. 9, 1954 is $136 per share
of capital stock. Price—At par (flat), $100 for each $100
principal amount. Proceeds—For advances to subsidiary
and associated companies, etc. Underwriter—None.
Anacon Lead Mines, Ltd., Toronto, Canada
Sept. 28 filed 700,000 shares of common stock (par 20
cfents-—Canadian funds) to be offered for subscription by
common
stockholders
at
ment.
the rate of
one
share for
new
mining properties. Under¬
Financing proposal has not been dropped.
Anchor Post
stockholders
for
Nov, 16.
of
Oct.
record
nine
each
Price—$7.50
20
shares
share.
per
at
the
held;
rate
rights
of
to
common
common
one
on
capital.
Office — 6500 Eastern Avenue, Baltimore, Md.
Underwriter—None.
Arizona Public Service Co. (11/24)
4 filed 240,000 shares of common stock
Price—To
repay
be
supplied
by
amendment.
& Co.
and Hornblower &
$7,623,250
Weeks)
Manheim
Water
by
(Offering
(Monday)
__Bonds
underwriting)
(Offering
$125,000
Corp
;y
Notes
__
(Offering to stockholders,
without underwriting)
*;>
November 17
•;
(Offering
to
Weeks
&
and
Stone
Securities
Webster
&
(Bids
Corp.)
California Water Service Co
Cincinnati
Common
(Dillon, Read & Co. Inc. and The Ohio Co.)
&
(Offering
$2,000,000
Columbus & Southern Ohio Electric Co
to
shares
Co.)
$3,000,000 debs.
200,000
&
480,000
Pacific Lighting Corp
800,000
Inc.)
Pennsylvania RR._
(Bids
Petroleum
amendment
Proceeds—For working capital.
Manufacturer
of
tires
and
nolds & Co., New York.
by
Business—
(Bids
$250,000
Tennessee
Common
(Bids
(Bids
Underwriter—Rey¬
Offering—Postponed.
of each class of stock.
Working capital.
(par $1) in units of one share
Price—$5 per unit. Proceeds—For
Business
EST)
noon
shares
100,000
Southern
—
Plastic molders and fabri¬
(City
19
(Thursday)
Co.
Inc.,
November 20
etc.)
(Bids
Illinois
Corp.)
to
Power
11
156,250
Ludman
by The First
EST)
;-:fi
lOfsfering
EST)
Cleveland
American
(Monday)
(Bids
American
&
(The First Boston
Debentures
Inc.)
$1,000,000
to
be
invited)
$5,400,000
Common
January 11
(Monday)
Electric Power Co
(Bids
to
be
invited)
.Bonds
$20,000,000
I
January 12
"(Bids
to
be
?
(Tuesday)
invited)
Bonds
$25,000,000
$750,000
(Tuesday);;
Fidelity & Casualty Co
(Geyer
Co.,
to stockholders—bids to be invited) 679,436 shares
A&ftlachian
Debentures
Co.)
&
P&Me Service Co. of Indiana, Inc
Corp.
&
Receipts
shares
$10,000,000
$20,000,000
Co.)
Arizona Public Service Co..
offices
200,000
$495,000
Bonds
noon
November 24
to all
Co.)
0g
January 6 (Wednesday)
C^ti^imers Power Co
shares
Bonds
a.m.
(Courts
Private Wires
&
Equip. Trust Ctfs.
(Monday)
stockholders)
Thrust Ctfs.
$5,925,000
|RR
Jp
December 10 (Thursday)
__Common
Corp
(Bids
.
Equi.
EST)
noon
Common
Corp
to stockholders—underwritten
(Offering
San Francisco
(Thursday)
Co
(Stroud
(Friday)
Gulf States Utilities Co
Philadelphia
.Common
EST) 558,946 shares
a.m.
December 7
$18,000,000
(Offering to stockholders—Stone & Webster Securities Corp.
and Allen & Co. are dealer-managers)
70,400 shares
Boston
j
"
Commercial State Bank & Trust Co. of N. Y.__Com.
-
Bonds
$25,000,000
& Power Co
Freres
'Lazard
,
Debentures
&
November 23
Chicago
EST)
Co
United RayOn Manufacturing Corp.
American Depositary
Central Illinois Electric & Gas Co
(Offering
Pittsburgh
a.m.
$10,000,000
Rit&r Finance Co., Inc
j
Boston
11:30
(Bids
$7,500,000
of)
Ripley
Rochester Telephone
New York
Bonds
invited)
be
to
Transmission
Pacific
Preferred
I
(Harriman
Bonds
;-.
$10,000,000
.
November
Bonds
$10,000,000
—
December 3
.Common
Corp.)
tubes.
stock
Gas
Virginia Electric
Worcester County Electric Co._____
Toronto
common
Boston
EST)
(Wednesday)
Iowa Southern Utilities Co..
First
(Tuesday)
invited)
be
to
(Bids 11
(The
$8,500,000
Monongahela Power Co
Common
November 18
a.m.
Power Corp.—
(Bids
(Reynolds & Co.) 200,000 shares
if Bassons Industries Corp., N. Y.
Nov. 6 (letter of notification) 60,000 shares of
Class A
participating preferred stock (par $5) and 60,000 shares
of Class B
11:30
(Bids
$300,000
Broadcasting Corp
bank loans and for construction program. Under¬
First Boston Corp. and Blyth &
Co., Inc.
Bonds
invited)
be
to
December 1
Florida
Mining Co
Storer
(Monday)
Light Co.;
Columbus & Southern Ohio Electric Co
$4,230,000
Co.)
(Friday)
Bell Telephone Co.__Com.
stockholders—no underwriting* $15,640,600
(Bids
—Debentures
&
shares
shs.
shares
Service, Inc
(Garrett
Common
232,520
EST)
a.m.
Suburban
&
Power
Equip. Trust Ctfs.
EST)
noon
11:30
November 30
Iowa
Common
(Blyth & Co.,
(Wednesday)
Light Co.-—
November 27
Preferred
Witter & Co.)
(Eastman, Dillon &
Neb.) $700,000
shares
238,628
(Dean
Delaware Power &
Hornblower
by
of Lincoln,
November 25
Common
—
stockholders—underwritten
writers—The
Armstrong Rubber Co.
March 31 filed $4,000,000 of 5% convertible subordinated
debentures due May 1, 1973. Price—To be supplied
Debentures
Co._
Investment
(The First Trust Co.
(Tuesday)
(E. W. McRoberts & Co.)
Proceeds—To
„
Southwestern
$125,000
*
Snoose
(par $5).
Common
stockholders — underwritten
bv Merrill
Fenner & Beane and Kidder, Peabody
& Co.I 35,000 shares
to
Pierce,
Lynch,
'
Nylok
$5,000,000
Co.)
&
Barney
Maine Public Service Co
Co
company—no
.
Light Co.——.—........Preferred
Iowa Power &
(Smith,
November 16
new
expire
Proceeds—For working
Nov.
(Offering to stockholders—underwritten by Johnston,
Lemon & Co. and E. R. Jones & Co.)
$500,000
Preferred
Oklahoma-Mississippi River Products
Line, Inc.
Debentures & Common
Products, Inc.
Sept. 30 (letter of notification) 32,953 shares of
stock (par $2) being offered for
subscription by
share
Forgan
Price—To be supplied by amend¬
Proceeds—To develop
writer—None.
(Glore,
Debentures
Employees Corp
Government
(Friday).
Bridgeport Brass Co
e&ch five shares held.
4 i
13
Dixie Cup Co
.v
--...-Preferred
$750,000
.Common
Corp. and Blyth & Co., Inc.)
240,000 shares
|>§|;
January 13 (Wednesday)
Oljitt Edison Co.__.±l
Common
(OJfering to stockholders—bids to be invited) 527,830 shs.
'L|i
/ January 19 (Tuesday)
<^i'o|Edison Co
.
(Bids
to
be
invited)
$30,000,000
—.Bonds
Number 5272
olume 178
..
.
iailed
for each 10 shares held; rights to
Subscription warrants are expected to be
around Nov. 20. Price—To be supplied by amend-
lent.
Proceeds—From sale of common stock and from
ate of one new share
xpire Dec. 7.
*
<
both of New York.
Oct.
100,000 snares of common stock
(no par),
being offered for subscription by common stockholders
of record Oct. 27 on the basis of one new share for each
shares then held
nine
(with
preferred stock, series A.
—None.
Industries, Inc., New Haven
shares of 6% cumulative convertible
Price—At par ($10 per share).
Proceeds—To refund bonds and repay bank loans and
for working
lege, subject to subscription rights of employees); rights
stockholders to expire on Nov. 13 and to employees
On Nov. 10. Price—$36.50 per share. Proceeds—For re¬
payment of bank loans and
new
construction. Under¬
and 50
Century Acceptance Corp.
(letter of notification)
ital.
10,000 shares of class A
filed
—P. O. Drawer
erence
$12.48
Cosmo Oil
Co., Denver, Colo.
(letter of notification) 300,000 shares of common
Price—At par ($1 per share).
Proceeds—For
stock
$100).
for
for
seven
shares
shares each.
23.
construction
determined
program.
•
'
i
Weeks,
both of New York.
•
Inc., Douglas, Wyo.
50,000 shares of common
stock. Price—At par ($1 per share). Proceeds—To drill
well. Address
Box 48, Douglas, Wyo. Underwriter—
Oct. 27
General
Oct.
(letter of notification)
Dec.
1, 1983.
Precision
108,167
Equipment Corp.
shares of $2.90 cumul. convertible
par—stated value $50 per share),
being offered for subscription to common stockholders on
the basis of one new preferred stock share for each
six
on
•
stock
shares
common
Nov. 23.
(no
Price
—
held
$50
on
per
Nov.
6;
rights
to
expire
share. Proceeds—To repay
$3,925,000 bank loans and to increase general corporate
funds. Underwriters—The First Boston Corp. and Tucker,
Anthony & Co., both of New York.
^-Dunham (C. A.) Co., Chicago, III.
Nov. 3 (letter of notification) 6,000 shares of common
stock (par $2). Price—At market (estimated at $4.50 per
share). Proceeds — To L. F. Dwyer, the selling stock¬
holder. Office—400 West Madison St., Chicago, 111. Un¬
derwriter—Dempsey & Co., Chicago, 111.
^
i£l^
Duquesne Light Co.
Aug. 19 filed 100,000 shares of preferred stock (par $50).
Proceeds—To reduce bank loans and for new construc■
tion.
Underwriters
bidding.
—
To be determined
by competitive
Probable bidders: The First Boston Corp.; Kid¬
mortgage bonds due,
To repay bank loans and for
—
— To
be determined by
Probable bidders: Halsey, Stuart
Inc.; Salomon Bros. & Hutzler and Union Securities
Corp. (jointly); Stone & Webster Securities Corp.; Mer¬
rill Lynch, Pierce, Fenner & Beane and White, Weld &
Co. (jointly); Lehman Brothers; Kuhn, Loeb & Co. and
A. C. Allyn & Co., Inc. (jointly); Lee Higginson Corp.
and Carl M. Loeb, Rhoades & Co. (jointly).
Bids—To be
received up to 11 a.m. (EST) on Nov. 23 at office of The
Hanover Bank, 70 Broadway, New York 15, N. Y.
Underwriters
construction.
Gulf Sulphur Corp., North
Kansas City, Mo.
Oct. 27 filed 700,000 shares of convertible preferred and
Oct. 5 in ratio of
one
new
share for each 5^2 shares held.
Rights will expire on Nov. 20. Price—At par ($20 per
share). Proceeds—For plant expansion. Underwriter—
None.
Heiland
Oct.
28
Research
(letter
Corp., Denver, Colo.
notification) 2,307 shares
of
cumulative preferred stock
of
common
and the
stock
(par $1).
at
common
5V2%
Price—The preferred, at par;
Proceeds — To repay
$3 per share.
bank loans and for working capital.
Ave., Denver, Colo.
it Hickey
of
(par $100) and 23,070 shares
Office—130 East 5th
Underwriter—Not named.
(Jess)
Oil Corp., Ft. Worth, Tex.
4,000,000 shares of com¬
mon
stock.
Proceeds—For acquisition of oil properties
and drilling. Office—1301-02 W. T. Waggoner
Bldg., Ft.
Worth, Tex. Underwriter—None.
i\ov.
6
(letter of
notification)
Hydrocap Eastern, Inc., Philadelphia, Pa.
Oct. 30
(letter of notification)
100,000 shares of
common
change for shares of stock of Berland Shoe Stores, Inc.
the following basis: For each Berland common share
0.54253 shares of General Shoe common; and for each
on
4 6/llth
shares of Berland preferred stock one share of
General Shoe or for each 2.0227
shares of Berland prefered one share of General Shoe
common stock.
Offer, which will terminate on Dec. 7,
is subject to acceptance of 80% of each class of stock.
B
Price—At par ($1 per share). Proceeds—To pay
debt and for working capital, etc. Underwriter—Barham
Co.,
Coral
Illinois
Gables,
preferred of
/Proceeds—For general corporate purposes. Office
Aurora St., Coral Gables, Fla. Underwriter—At& Co., Miami Beach, Fla.
share.
—4112
Government Employees
Oct.
filed
23
$500,000
Corp.
(11/24)
10-year 4M>% convertible junior
due Dec. 1, 1963 (convertible
subordinated
debentures
into
stock
common
at
the rate of $20 per share), to be
offered for subscription
ord Nov.
by common stockholders of rec¬
17 at the rate of $100 of debentures for each 15
9. It is expected
be mailed on or about
Nov. 24.
Price—At par. Proceeds—For working capital
and
to prepay $100,000 of junior subordinated
notes.
Office—Government Employees Insurance Bldg., Wash¬
shares
that
held; rights to expire on Dec.
subscription warrants will
(11/23)
Oct. 28 filed $20,000,000 first mortgage bonds due 1983.
Proceeds—To repay bank loans and for new construction.
Underwriters—To be determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; White, Weld
Lynch, Pierce, Fenner & Beane
(jointly); Harriman Ripley & Co. Inc. and Glore, Forgan
& Co. (jointly); The First Boston Corp.; Kuhn, Loeb
& Co.; Union Securities Corp.
Bids — Tentatively ex¬
&
Co.
Merrill
and
pected to be received
it Indusco, Inc.
Nov. 5 (letter of
up
to noon (EST)
Nov. 23.
(Del.)
notification) 550,000 shares of 5%
cumu¬
lative preferred
of
common
share of each class of stock.
one
Proceeds
of
stock (par 50 cents) and 550,000 shares
stock (par one cent) to be issued in units of
raw
—
materials and working
Beaver
Price—51 cents per unit.
For development and
St., New York, N. Y.
promotion, acquisition
capital, etc. Office — 82
Underwriter
—
Prudential
Securities Corp., New York.
Mass.
131,784 shares of common stock (par $1).
Price—To be supplied by amendment (between $8 and
$9 per share). Proceeds—To pay mortgage debt and for
equipment. Business — Research and development and
June 30 filed
subsequent commercial exploitation in the field of ion
exchange chemistry. Underwriter—Lee Higginson Corp.,
New York and Boston (Mass.). Offering—Date indefinite.
Iowa
Power &
Light Co.
(11/24)
cumulative preferred stock
(par $100).
Price — To be supplied by amendment.
Proceeds—To repay bank loans and for new construc¬
tion. Underwriter—Smith, Barney & Co., New York.
Nov. 3 filed 50,000 shares of
Iowa Power &
it Giffen Industries, Inc., Coral Gables, Fla.
4 (letter of notification) 62,500 shares of common
stock (par $2.50), of which 2,000 shares are to be offered
to employees at $3.40 per share. Price—To public $4 per
will
Fla.
Co.
Power
Ionics, Inc., Cambridge,
Tenn.
Oct. 2 filed 19,465 shares of $5 cumulative preference
stock, series B (stated value $100 per share) and 139,742
shares of common stock (par $1) to be offered in ex¬
General Shoe Corp., Nashville,
Nov.
it Dunham (C. A.) Co., Chicago, III.
Oct. 27 (letter of notification) 3,529 shares of common
stock (par $2).
Price—At market (estimated) at $4.50
per share).
Proceeds — To H. S. Marshall, the selling
stockholder. Underwriter—Dempsey & Co., Chicago, 111.
Proceeds
(11/23)
of first
$10,000,000
& Co.
—
None.
filed
Competitive bidding.
•
Hydrocarbons Corp.
filed
16
preferred
series
it Dougoilco,
22
&
amount of debentures and 23 shares of
stock. Price—$359 per unit ($336 for the debentures and
$1 per share for the stock). Proceeds—For general cor¬
porate purposes.
Business — Oil and gas development.
Under—riter—None. Office—Oklahoma City, Okla.
Underwriters
Co., Easton, Pa. (11/13)
Oct. 23 filed
152,465 shares of cumulative convertible
preferred stock, series A (par $50) to be offered for
subscription by common stockholders at rate of one
preferred share for each five common shares held on
Nov. 13; rights to expire on Nov. 30. Price—To be sup¬
plied by amendment. Proceeds—For expansion program.
Underwriters—Glore, Forgan & Co. and Hornblower &
Gulf States Utilities Co.
Oct.
preferred, $100 per share. Proceeds — To construct
plant. Office — 5015 Monroe St., Toledo 13, Ohio.
of $350 principal
by
Dixie Cup
New
stock.
or
Aug. 12 filed $1,010,800 of 20-year debentures and 66,424
of common stock (par $1) to be offered in units
share for each
(jointly); White. Weld & Co. and Shields & Co. (jointly);
Lehman Brothers; Harriman Ripley & Co. Inc.: Blyth &
Co., Inc.; Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly). Price—May be set by
directors, with bidders to name their underwriting com¬
pensation. Bids—To be received on Nov. 25 up to 11:30
a.m. at 600 Market St.,
Wilmington 99, Del.
Co.,
&
York.
before June 30, 1954, and $32 per share
each share not fully paid on or before June 30, 1954;
on
shares
competitive bidding. Probable
bidders: W. C. Langley & Co. and Union Securities Corp.
be
(no par) and 534 shares of preferred stock (par
Price—For common, $30 per share for each share
General
held; rights to expire on Dec. 15.
Em¬
receive rights to subscribe for up to 150
Price—To be named by company on Nov.
Proceeds—For
—To
Halsey, Stuart & Co. Inc.; Kidder, Peabody &
Lynch, Pierce, Fenner & Beane (joint¬
Underwriter—None.
Light Co. (11/25)
shares of common stock (par $13.50)
offered for subscription by common stockholders
ployees will
per
new
Delaware Power &
,
cents
Merrill
fully paid
Oct. 28 filed 232,520
one new
50
bank loans and for new construction. Underwriters
be determined by competitive bidding.
Probable
and
—
the basis of
of
Nov.
Washington, D.C.
Oct. 6 (letter of notification) 6,000 certificates of par¬
ticipation.
Price—At par (in units of $50 each).
Pro¬
ceeds
For general corporate purposes.
Office — 439
•Wyatt Bldg., Washington, D. C.
Underwriter—James T.
De Witt & Co., Inc., Washington, D. C.
on
rate
at
it Franklin Ice Cream Co., Toledo, O.
2 (letter of notification) 5,000 shares of common
and
Cuban American Minerals Corp.,
be
shares,
share per
.
working capital.
Office — 922
Equitable Bldg., Denver, Colo. Underwriter—E. I. Shel¬
ley Co., Denver, Colo.
of record Nov. 25
preference
it Florida Western Oil Co., Tallahassee, Fla.
Nov. 6 (letter of notification) 250,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—For
drilling test well. Office—803 N. Calhoun St., Tallahas¬
see, Fla.
Underwriter — Floyd D. Cerf, Jr., Co., Inc.,
Miami, Fla.
ly); Lehman Brothers; Lee Higginson Corp. and Carl M.
Loeb, Rhoades & Co. (jointly). Bids—Expected to be
received up to 11:30 a.m. (EST) on Dec. 1.
to
of
ly); Lehman Brothers; Glore, Forgan & Co. and W. C.
Langley & Co. (jointly); The First Boston Corp. Bids—
Tentatively expected to be received on Dec. 1.
Co.; Salomon Bros. & Hutzler; Dillon, Read & Co.;
Union Securities Corp. and Glore, Forgan & Co. (joint¬
.
case
Underwriter—Batkin
Y.
N.
• Hawaiian Electric
Co., Ltd.
Sept. 25 filed 100,000 shares of common stock being of¬
fered for subscription by common stockholders of record
Co.
.&
v
in
(plus
dividends
bidders:
Halsey, Stuart & Co. Inc.; White, Weld
expenses
Underwriter—None.
City,
Office—10-15 43rd Ave., Long
capital..
working
Island
participating stock (par 10 cents). Price—$10 per share.
Proceeds—To develop company concessions. Underwriter
—Peter Morgan & Co., New York.
pay
of first mortgage bonds due 1983.
bank loans and for new construction.
Underwriters—To be determined by competitive bidding.
stock.
unit.
Address
—To
(12/1)
Oct. 27 filed $10,000,000
drilling
per
(letter of notification) 42,000 shares of common
(par 10 cents). Price—$2.37% per share. Proceeds
^ Florida Power Corp. (12/1)
Nov. 5 filed $10,000,000 of first mortgage bonds due 1983.
Price—To be supplied by amendment. Proceeds—To re¬
stock (par $5).
Proceeds—To re¬
construction. Underwriter
Proceeds—To repay
Oct. 7
stock
Proceeds—For additions to plant and equipment
working capital. Underwriter—None.
and for
Columbus, Ohio.
Probable bidders:
Price—$2.25
871, Hamlet, N. C.
share
per
year).
(11/17)
amendment.
Columbus & Southern Ohio Electric Co.
of stock.
capital and machinery.
Co., Hathboro, Pa.
(letter of notification) 17,920 participating pref¬
shares and common shares
(par $1).
Price—
Oct. 26
bank loans and for new
,—Dillon, Read & Co., Inc„ New York; The Ohio Com¬
pany,
class
Fischer & Porter
200,000 shares of common
pay
each
of
Proceeds—For working
accrued
27
cap¬
Underwriter—None.
share
one
None.
Price—To be supplied by
Proceeds—For working
cents, respectively.
Guardian Chemical Corp.
Oct. 26
—For
Nov.
^Cincinnati & Suburban Bell Telephone Co. (11/27)
Nov. 6 filed 312,812 shares of common stock to be offered
for subscription by common stockholders of record Nov.
27. Price—At par ($50 per share).
Proceeds—To reim¬
burse treasury for expenditures made
for extensions,
additions
and
improvements to plant.
Underwriter—
Oct.
Offering—
it Fetner (William), Inc., Hamlet, N. C.
6 (letter of notification) 18,000 shares of class B
commop stock (par $1) and 18,000 shares of 6% cumu¬
lative preferred stock (par $1) to be offered in units of
share; of class B,
$1.90 per share. Proceeds—To Robert F. Brozman, the
selling stockholder. Office—1334 Oak St., Kansas City,
Mo. Underwriter—Wahler, White & Co., Kansas City, Mo.
(par $1). Price—Of class A, $2.50 per
Columbus & Southern Ohio Electric Co.
&
Oct. 21 filed $400,500 of 6%
new
(par $1) and 5,000 shares of class B stock
stock
common
Cohu
and
it Farm & Home Loan & Discount Co., Phoenix, Ariz./
Nov. 9 filed 863,230 shares of class A common stock,
858,186 shares of class B common stock and 1,000,000
shares of class C common stock. Price—25 cents, 35 cents
writer—Union Securities Corp., New York.
16
Underwriter—Blair, Rollins & Co.,
capital.
Co., both of New York.
Expected today (Nov. 12.)
Inc.,
oversubscription privi¬
an
to
Oct.
Underwriters—Johnston, Lemon & Co.}
Washington, D. C.; and E. R. Jones & Co., Baltimore, Mdv
ington 5, D. C.
Greyhound Parks of Alabama, Inc., Phoenix, Ariz.
10-year cumulative income
debentures, due Oct. 1, 1962, and 40,050 shares of common
stock (no par) to be offered in units of four debentures
of $250 principal amount each and 100 shares of stock.
Price—$1,100 per unit.
Proceeds—To rehabilitate and
construct racing plant in Tucson, Ariz.
Business—Dog
racing with pari-mutuel betting privileges. Underwriter
Eastern
Illinois Light Co.
filed
7
der, Peabody & Co., Merrill Lynch, Pierce, Fenner &
Beane and White, Weld & Co. (jointly); Kuhn, Loeb &
Co. and Smith, Barney & Co. (jointly); Blyth & Co., Inc.;
Lehman Brothers. Bids—Originally scheduled to be re¬
ceived up to 11 a.m. (EDT) on Sept. 17, but on Sept. 16
the company announced bids will be received within 30
days from that date, bidders to be advised at least three
days in advance of new date. No decision reached to date.
39
Oct. 22 filed 100,000
proposed sale later in year of 15,000 shares of $100 par
cumulative preferred stock to be used to repay bank
loans and to pay for new construction. Dealer-Managers
Stone & Webster Securities Corp., and Allen & Co.,
Central
(1867)
The Commercial and Financial Chronicle
Nov. 3 filed
Light Co.
(11/30)
$8,500,000 of first mortgage bonds due Dec.
repay bank loans and for con¬
Underwriters—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Lehman Brothers; Kidder, Peabody & Co.;
W. C. Langley &*Co., Union Securities Corp. and Glore,
Forgan & Co.
(jointly); Equitable Securities Corp.;
Kuhn, Loeb & Co., Wood Struthers & Co. and American
Securities Corp. (jointly); The First Boston Corp; Blyth
& Co., Inc.; Harriman Ripley & Co. Inc.; White, Weld
& Co.
Bids—Tentatively scheduled to be received on
1,
1983.
Proceeds—To
struction program.
Nov. 30.
Iowa Southern Utilities Co.
Oct.
(11/18)
(par $15).
amendment. Proceeds—To re¬
$1,500,000 of bank loans and for new construction.
29
filed
100,000 shares of common stock
Price—To be supplied by
tire
Continued
on
page
40
40
The Commercial and Financial Chronicle
(1868)
Continued jrom page
Northwest Telephone Co.,
39
Meeting—Stockholders will vote Nov. 12 on increasing
authorized common stock to 1,100,000 shares from 800,000
Enterprises, Inc., New York
18,800 shares of common stock.
Israel
filed
1
Oct.
York.
Underwriter—The First Boston Corp., New
shares.
($100 per share). Proceeds—For
ing industrial enterprises in Israel.
par
Price—At
investment in exist¬
Underwriter--None.
Jasper Oil Corp., Montreal, Quebec, Canada
Oct. 28 filed 550,000 shares of common stock (par
$1—
Price—$3 per share. Proceeds—For expan¬
sion and exploration and development expenses. Under¬
writer—Globe Securities Corp., Ltd., Montreal, Canada.
Stores,
Jewelry
Kay
of
Inc., Washington, D. C.
corporations which operate
store
71
stocks
83 retail credit
Mines Ltd., Toronto,
general corporate purposes. Underwriters—John R.
Boland & Co., Inc., New York; Paul C. Kimball & Co.
and Republic Investment Co., Inc. of Chicago, III.; Barand
Coral Gables, Fla.; and Frame McFadyen &
ham & Co.,
if Numanna Laboratories Corp., Wadsworth, III.
Nov. 3 (letter of notification) 614 shares of 15% cumu¬
A stock. Price — At par ($100 per share).
Proceeds—For
Underwriter—None.
working capital.
by
of
each
for
notes
of stock
on Dec. 16.
from Jan. 1, 1954.
interest
at rate of $125
held as of Nov.
stockholders
four shares
expire
rights to
16;
crued
common
Price—100% and ac¬
Proceeds—To reduce
purchase equipment, to explore foreign
for working capital.
Business—Manufac¬
tures and sells fastening devices. Office—475 Fifth Ave.,
loans,
patents and
New York
17, N. Y.
Underwriter—None.
Price
exploration.
Underwriter
Koehring Co., Milwaukee, Wis.
Oct. 22 filed 50,000 shares of common
Price—To be supplied by amendment.
stock (par $5).
Proceeds—Ex¬
$1,250,000, will be used to
expended to acquire own¬
ership of Waterous, Ltd., now known as KoehringWaterous, Ltd., and to replace funds expended on im¬
provements in Koehring Co.'s plants, particularly Koeh¬
ring Southern Co.
Underwriter—Loewi & Co., Milwau¬
pected to net company around
reimburse company for funds
if Oceanic Exploration Co., San Francisco, Calif.
$2,387,500 limited partnership interests to be
offered in minimum amounts of $50,000 or in any greater
amounts that
ploration.
Oklahoma-Mississippi River Products Line, Inc.,
Tulsa, Okla. (11/17)
Oct. 26 filed $3,000,000 of 25-year subordinated deben¬
tures
due
Nov.
1, 1978, and 480,000 shares of common
|
stock
(par one cent) to be offered in units of $50 prin¬
cipal amount of debentures and eight shares of stock.
An
additional
sold
to
amendment.
shares of common stock will be
Price
To be supplied by
300,000
certain
individuals.
Proceeds
—
—
To
construct
petroleum
pipe
line.
Orange Community Hotel Co., Orange, Texas
Sept. 14 filed 8,333 shares of capital stock (par $20) and
8,333 registered 4% debentures due Jan. 1, 1984 of $100
Mass.
struct
Ludman
Corp., North Miami, F!a. (11/23)
$750,000 of 6% sinking fund convertible
debentures due Nov. 1, 1968.
Price—At par (in units of
filed
26
$100 each) and accrued interest. Proceeds — to repay
bank loans, and for new equipment and general corpo¬
rate purposes.
•
Macabe
Aug. 27
common
debt to
Underwriter—Courts & Co., Atlanta, Ga.
Inc., Portland, Ore.
Co.,
each to be offered in units of
$100 debenture. Price—$120
12,500 shares of class A
Price—$20 per share. Proceeds—To pay
Bank of California and for working capital. Of¬
stock.
Portland, Ore. Underwriter
.—Blyth & Co., Inc., Portland, Ore. Offering—Expected
(Nov. 12).
Maine
Service Co.
Public
(11/24)
35,000 shares of common stock (par $10) to
be offered for subscription by common stockholders of
record
Nov.
shares
held
24
at
rate
of
one
new
share
for
each
six
oversubscription privilege).
Rights
Dec. 8. Price—To be supplied by amend¬
(with
will expire on
ment.
Proceeds—To
bank loans. Underwriters—
Merrill Lynch, Pierce, Fenner & Beane and Kidder, Peabody & Co., both of New York,
repay
jfr Manhattan Mining Corp., Reno, Nev.
(letter of notification) 100,000 shares of common
stock. Price
At par ($1 per share).
Proceeds — For
equipment and operating claims. Office—139 North Vir¬
ginia St., Reno, Nev.— Underwriter—None.
Nov. 4
—
Manheim
Oct.
28
(Pa.)
(letter
of
Water Co.
for
2,000
shares
and
accrued
payment of installation of
Underwriter—None.
>
interest.
a
new
VMonongahela Power Co.
Oct.
30
filed
Proceeds—For
water filtration
part
plant.
merce.)
Pacific
Oct.
26
pay
Lighting Corp.
1983.
filed
800,000 shares of
stock
common
(no par).
Proceeds—To
writer— Blyth
New
&
Co.,
San
Inc.,
York, N. Y.
>
Francisco,
•-
re¬
and
>
,
•
Southwestern
Mining Co., Ilailey, Idaho (11/17)
Oct. 30 (letter of notification) 1,000,000 shares of com¬
mon
stock.
Price—At par (25 cents per share). Pro¬
ceeds—For machinery and equipment.
Underwriter—
E. W. McRoberts & Co., Twin Falls, Idaho.
Nov.
B.
(N. Y.)
Petroleum
Service, Inc., Dallas, Tex.
filed
4
—
working
Underwriter—Garrett
capital.
&
Co.,
Dallas,
Tex.
Plantation
26
Farms, Inc.
(letter
(no
(N. J.)
notification) 900
of
par).
Price—$100
North
Main
shares "of
common
share. Proceeds—To
lease land, purchase equipment and for working capital.
Office—42
St., Pleasantville, N. J.
Under¬
^ Po!y-Seal Corp.
6
(letter of notification) 1,725 shares of capital
(par $1). Price — $11 per share. Proceeds — For
working capital, etc. Business—Closures. Office — 405
Lexington Ave., New York 17, N. Y. Underwriter—None.
stock
9
(letter of notification)
(no par). Price—$21.50
4,600
per
shares
share.
of
Corp.; Union Securities Corp. and Salomon Bros. & Hutzler (jointly); Merrill Lynch,
Pierce, Fenner & Beane;
Harriman-Ripley & Co., Inc. Bids—Tentatively expected
to be
received
Nevada
on
Dec.
1.
1,000,000 shares of
Proceeds—For working capital.
com¬
Underwriter
-—None.
^-Newport Electric Corp., Newport, R. I.
Nov.
6
(letter of notification) 5,955 shares of common
stock (par $20) to be offered to common stockholders on
basis of
one new
share for each ten shares held.
Proceeds
—To finance construction.
port,
R.
I.
filed
Nov.
the
selling
Office—159 Thames St., New¬
Underwriter—Stone & Webster Securities
19
subscription by
at
rate
of
one
for
new
construction.
common
new
share for
Underwriter
each
four
—
The
First
Production Co.
April 23 filed 165,000 shares of
Price
—
$5
per
subscription by employees of the com¬
its subsidiaries under the company's Employee
Plan.
Price—To
share.
Co.
300,000 shares of commoh
(par five cents). Price—$1 per share. Proceeds—
For drilling costs.
Underwriter—Arthur R. Gilman, 29
Broad Street, New York City.
(letter of notification)
stock
1
Storer
Broadcasting Corp. (11/17)
V
j
200,000 shares of common stock (par $1).
Price
To be supplied by amendment.
Proceeds — To
certain stockholders.
Office—Miami Beach, Fla.
Under¬
writer—Reynolds & Co., New York.
i
Oct.
23
filed
,f
Strategic Materials Corp., Buffalo, N. Y.
Aug. 31 filed 198,500 shares of common stock (par $1)
to be offered for subscription by common stockholders
at
rate
—To
of
be
one
tion
of
share
new
supplied
bank loans and
by
for
each
amendment.
other
properties
share
held.
indebtedness, for further explora¬
additional
for
and
working
capital.
—
To
stock (par $1).
acquire
stock
of
common
of
(letter of notification) 100,000 shares of
equipment and exploration.
par
($1
10%
shares
stock distribution
None.
Canada.
to
on
be
issued
Dec.
connection
in
18, 1953.
with
Underwriters
w
.
.
Transmission Co.
Tennessee Gas
(12/1)
mortg'age
pipe line bonds
due Nov.
1, 1973. Purpose—To repay bank loans and for
expansion program. Underwriters — To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co.
Inc.; Stone & Webster Securities Corp. and White,
Co. (jointly). Bids — To be received up to II
a.m.
(EST) on Dec. 1 at office of Messrs. Cahill, Gordon,
Zachry & Reindel, 63 Wall St., New York 5, N. Y.
*
&
•
Toronto
(City of), Ontario, Canada
per
Proceeds
—
To
be'
advanced
to
Toronto
Transportation Commission and will be used to pay for
capital expenditures. Underwriters—Harriman Ripley &
Co. Inc.; The Dominion Securities Corp.; The First Bos¬
ton
Corp.; Smith, Barney & Co.; Wood, Gundy & Cp.,
Inc.; A. E. Ames & Co., Inc.; and McLeod, Young, Weir,
'<
'
'<
if Trabella Uranium Mines, Inc.,
Colorado Springs, Colo,
J
Nov. 6 (letter of notification) 1,000,000 shares of common
stock
(par 10 cents). Proceeds—For drilling and; ne')V
equipment. Office
126
South Tejon
St., Colorado
...
Springs, Colo. Underwriter—None.
★Tri Dent Corp. (N. J.)
(letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds^—
For working capital and for general corporate
purposes.
Office—128 Linden Ave., Jersey City, N. J.
Business—
Nov. 6
common
—
For
a
new
toothbrush. Underwriter—Charle3
Maggio, Inc., New York.
J
i,
■
fv
United Merchants &
Oct.
7
filed
Price—At
a
market
common
stock
(p&r $1).
Stobk
through secondary distributions). Proceeds
group of selling stockholders who will receive
common
shares
basis of 6 V2
Juilliard
the New York
on
or
said
None.
\
Manufacturers, Inc.
shares of
(either
574,321
the
and
share). Proceeds
Office
(11/19)
Oct. 30 filed $18,600,000 of consolidated loan debentures
due Dec. 1, 1954 to 1983.
Price — To be supplied by
the
Pershing County
Court House, Lovelock, Nev. Underwriter—None.
Silver Buckle
in
Price—At market. Proceeds—To hold¬
stock.
fractional
—To
At
distribution
for
if Sylvania Electric Products, Inc.
Nov. 5 (letter of notification) not to exceed 1,500 shares
revised.
• St. Anthony Development Co., Inc.,
Lovelock,' Nev.
—
Allen
Canada, has agreed to purchase 50,000 shares from the
Exchange
Price
Price
*
Proceeds—To repay
Co., New York, W. C. Pitfield & Co., Ltd., of Montreal,
underwriters
J.
common
Proceeds
North Star Oil & Uranium
Oct. 23 (letter of
Corp.
notification) 600,000 shares of common
stock (par five cents). Price—50 cents
per share. Proceeds—To acquire certain mining claims, etc. and for
exploration, development, drilling and working capital
Office
129 So. State St.,
Dover, Del. Underwriter Lincoln Securities Corp., New York.
be supplied by amendment.
capital.
Underwriter—None.
working
Sta-Tex Oil
Oct. 2
Neb-Tex Oil Co., to pay loans and for working capital.
Office—Northwood, Iowa. Underwriter—Sills, Fairman
& Harris of Chicago, 111. Registration statement may be
Nov. 4
'
$5),
(par
—
(par $10)
stockholders of
Corp., New York.
stock.
Under¬
rights to expire on Dec. 7. Price—To be
supplied by amendment. Proceeds—To repay bank loans
Corp., Providence, R. I.
-
stockholder.
shares held;
and
stock
common
•;
Telephone Corp. 11/20)
156,250 shares of common stock
Saint Anne's Oil
22
stock to be offered to stockholders. Price—Five cents
share.
30
,1
*
'
Co., Amarillo, Tex.
10,000 shares of
To manufacture
Tungsten Corp., Mina, Nev.
Oct.
per
Denison,
to be offered for
Boston
mon
(letter of notification)
R.
Rochester
record
Tex.
Lincoln, Neb.
'
writer—William N. Pope, Inc., Syracuse, N. Y.
•
Investment
of
pany and
Inc.
common
Proceeds—To
Geraldine
Oct.
Office—Amarillo,
Co.
per
writer—None.
stock
Trust
to be offered for
Weld
Nov.
capital.
First
Oct. 30 filed $25,000,000 of first
(11/17)
Oct. 30 (letter of notification) $300,000 of 6% convertible
debentures due 1963.
Price
At par.
Proceeds — For
stock
working
Southwestern
Nov.
(11/24)
of 5J/2%
capital debentures, series
1, 1963. Price—92J/2% and accrued interest.
Dec.
Proceeds—For
ers
(letter of notification) 170,000 shares of common
(par 10 cents). Price—$1.50 per share. Proceeds—
For working capital.
Office—Hicksville, N. Y. Under¬
writer—Joseph Faroll & Co., New York.
Oct.
Investment Co.
4 filed $700,000
due
of
Perfect-Line Manufacturing Corp.
Oct. 30
•
I
Snoose
Under¬
Calif.,
*
be determined
construction program.
Underwriters—To
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; W. C. Langley & Co. and The
First Boston Corp. (jointly); Kuhn, Loeb & Co.; Kidder,
Peabody & Co. and White, Weld & Co. (jointly); Glore,
Forgan & Co.; Lehman Brothers, Equitable Securities
($50j
par
•
•
&
(11/17)
bank loans and for advances to subsidiaries.
Nov.
$10,000,000 first mortgage bonds due
Price—At
stock.
common
Underwriters—Hamlin & Lunt, Buffalo, N. Y., and
Proceeds—For
.
one
if Porter-Cable Machine Co., Syracuse, N. Y.
(
(12/1)
of
share). Proceeds—For studio remodeling. Address-r-;
Radio
Station
WLOS, Battery Park Hotel, Ashville,
N. C. Underwriter—McCarley & Co., Inc., Ashville, N. C.
per
amendment.
(11/16)
notification)
$125,000 of 4%% first
mortgage bonds, series A, dated Oct. 31, 1953, and due
Oct. 31, 1978, to be offered to residents of Pennsylvania.
Price—100%
share of stock and
one
per
and
stock
2 filed
Nov.
Financing, Inc., Spokane,
—
unit. Proceeds—To con¬
equip hotel building. Underwriter — None.
(Subscriptions to 4,949 shares of stock and 4,949 deben¬
tures are held by a group of citizens of Orange formed
under the auspices of the Orange Chamber of Com¬
fice—1020 S. W. Taylor St.,
•today
Underwriter—Eastman, Dillon & Co., New York.
Price—To be supplied by amendment.
(letter of notification)
Spokane,!
Sprague Ave.,
Purchase
multiples of $12,500. Business—Oil ex¬
carry out testing, drilling, etc.
are
Proceeds—To
kee, Wis. Offering—Expected today (Nov. 12).
•
Mines
—
Proceeds—Fojr
share.
per
909
Wash.
Nov. 9 filed
if Lewiston, Green & Monmouth Telephone Co.,
Winthrop, Me.
Nov. 6 (letter of notification)
12,136 shares of common
stock. Price—At par ($10 per share). Proceeds—To pay
indebtedness. Underwriter—F. S. Moseley & Co., Boston,
Oct.
cents
ic Skyway Broadcasting Co., Asheville, N. C. ;
Nov. 6 (letter of notification) subscription agreements!
Proceeds—For
•
30
—
Office—West
Underwriter—The
Underwriter—None.
Co., Toronto, Canada.
stock.
mon
'
Nylok Corp., New York (11/16)
Oct. 30
(letter of notification) $125,000 of 6% con¬
vertible serial notes due Jan. 1, 1964, to be offered for
bank
Canada
Aug. 20 filed 500,000 shares of common stock (par $1)
price—To be related to the quotation on the American
Stock Exchange market. Proceeds—For working capital
Kenwell Oils &
Wash.
Price—$15.75 per share.
ers.
subscription
$1) to
Underwriter—None.
jewelry stores.
Proceeds—For construction.
Office—313
Sixth St., Redmond,
Ore. UnderwritersCamp & Co., Portland, Ore.; Wm. P. Harper & Son & Co.,
Seattle, Wash.; and others.
Exploration & Development Co.
(letter of notification) 1,000,000 shares of com¬
Aug. 20
8
lative class
Canadian).
Sept. 28 filed 672,746 shares of capital stock (par
be offered in exchange for preferred and common
Silver Dollar
Redmond, Ore.
(letter of notification) 10,000 shares of common
stock (par $5), of which 6,000 shares are to be offered by
the company and 4,000 shares by three selling stockhold¬
Oct.
.Thursday, November 12, 1953!
..
in
exchange for outstanding preferred
D. Juilliard & Co., Inc., on the
stock of A.
shares of United Merchants stock fdr each
common
or
preferred
share.
Underwriter L*
Statement effective Oct. 26.
—
Mining Co., Wallace, Idaho
'
Oct. 29 (letter of notification) 721,065 shares of chmmon
stock.
Price—At par (10 cents per share). Proceeds—
To develop properties. Address—P. O. Box 1088, Wal¬
lace, Idaho. Underwriter—None.
if United Merchants & Manufacturers, Inc.
Nov. 9 filed $500,000 of interest on Employees Stock
Purchase Plan for 1954 and 254,122 shares of common
stock for the Executive and
Plan to be offered to
Employees Restricted Optipn
eligible employees of the company
and its subsidiaries. Underwriter—None.
!
■
Number 5272
Volume 178
United
#
The Commercial and Financial Chronicle
...
Rayon Mfg. Corp. (Netherlands)
(12/3)
';A. K. U." American depositary receipts for
Oct. 9 filed
American
200,000
representing
shares
10,000
ordinary
chares of A. K. U. at the rate of 20 American shares for
share of Hfl. 1,000
each ordinary
be supplied by amendment.
who
purchased
value.
par
Price—To
Proceeds—To selling stock¬
V
.
'
it Wyoming Oil Co., Denver, Colo.
Nov. 3 (letter of notification) 5,000,000 shares of common
stock (par five cents). Price—0V2 cents per share. Pro¬
ceeds
For drilling expenses. Office — 301 Kittredge
—
Underwriter
Bldg., Denver, Colo.
Robert W. Wilson,
—
Denver, Colo.
1 '
•'
United States Finishing Co.
it Wyoming Oil & Exploration Co., Las Vegas, Nev.
Nov. 3 (letter of notification) 300,000 shares of common
stock. Price
At par ($1 per share). Proceeds — For
leases and drilling expenses. Office—105 Friedman Bldg.,
—
300 Fremont
Underwriter—None.
St., Las Vegas, Nev.
Sept. 23 filed 240,000 shares of common stock
(no par)
being offered in exchange for the 15,000 outstanding com¬
mon shares of Aspinook Corp. on the basis of 16 shares
least 80%
pires on Nov.
of the
13.
Aspinook shares.
The offer
ex¬
Statement became effective Oct.
13.
^ United Stockmen's Investment Co.,
Las
Vegas, Nev.
Nov. 2 (letter of notification) 2,400 shares of clasjs A noncumulative preferred stock (par $100) and 2,400 shares
«of class B common stock (par $25) to be offered in units
«of four shares of each class of stock. Price—$500 per unit.
Proceeds—For construction of office building.
Office—
Industrial
1606
Las
Road,
Vegas,
Nev.
Underwriter—
INone.
Prospective Offerings
(letter of notification) 22,500,000 shares of com¬
mon stock.
Price—At par (1 cent per share).
Proceeds
—For mining and drilling.
Office — 602 First National
Bank
Bldg., Denver 2, Colo.
Inc., Denver, Colo.
Underwriter—Kamp & Co.,
Virginia Electric & Power Co.
construction program.
construction. Underwriters
competitive bidding. Probable
Halsey, Stuart & Co. Inc.; The First Boston
Corp.; Kuhn, Loeb & Co. and Union Securities Corp.
(jointly); Harriman Ripley & Co. Inc. Bids—Tentatively
bank loans and for
Probable bidders: Stone & Web¬
ster
Securities Corp.; Blyth & Co., Inc.; Merrill Lynch,
Pierce, Fenner & Beane, and Kidder, Peabody & Co.
Bids—To be received up to 11
Boom 735, 11 Broad St., New
a.m.
(EST)
on
Dec.
1 at
York, N. Y.
ers
on
raise
Price—$100
stock
&
er
ferred
.
per
share.
Pro¬
Office
—
220 South
Underwriter—None.
ceive
common
cash
into company of Puget Sound Pow¬
the basis of one-half share of pre-
one-half
and
Sound
on
of
common
for
each
Puget
share to holders who do not elect to
the
at
share
rate
of $27
per
sufficient
of
estimated
Securities
Union
be
may
Previous bond issue
Co.
4"
.
common
stock
to
$3,000,000. Proceeds—For
Corp.
and
Smith, Barney &
placed privately.
was
re¬
27
Refining Co.
it
year
will
that
be
proposed
debenture
around
reported company's common stock
was
bylpouthern Union Gas Co.)
holo^rs/df the parent company
a proposed divestment plan.
(held
may be offered to stockon a pro
rata basis under
share. Underwriter—
Bagdad Copper Corp.
reported company has advised stockhold¬
was
stock (par 50
$50 debenture and
Price — To be supplied by amendProceeds—From sale of units and 1,125,000 addi¬
stock and private sale of
t)00,000 first mortgage bonds, to be used to build
$55,-
1,030
Underwriters—White, Weld &
a
Co. and Union Securities
*
it had revised downward from
ers
(11/23)
announced
was
Corp., both of New York.
tterlng—Postponed indefinitely.
Nov. 9 it
to
of collateral trust 4% bonds due serially
Proceeds—Together with treasury cash,
refund $65,000,000 collateral trust 4%
held
bonds due 1965
by the Reconstruction Finance Corporation.
Commonwealth
Oct.
24
Holdings Corp.
bonds
constituting a lien on the gas properties would be
public investors by Edison as the next step in
financing its $1,100,000,000 postwar construction pro¬
gram. Upon transfer of the properties, Northern Illinois
Gas Co., the new gas company to be formed would as¬
sume the sale obligation of the bonds. Probable bidders:
sold to
Halsey,
Stuart &
Co. Inc.; Glore, Forgan & Co.; The
Corp.; Kuhn, Loeb & Co., Lehman Brothers
Corp. (jointly).
First Boston
and American Securities
it Consolidated Edison Co. of New York, Inc.
10 it was reported company plans this week to
apply to the New York P. S. Commission for authority to
issue and sell $35,000,000 of 30-year first and refunding
mortgage bonds, series J, due 1984. Proceeds—To repay
bank
loans
and
it
announced
was
plans to issue and
company
publicly $2,000,000 of convertible debentures. Pro¬
For development of Stanwell Oil & Gas Ltd.,
ceeds
—
of Hinde & Dauch Paper Co. on the basis of IV3
of West Virginia Pulp stock for each Hinde &
&
Co.
Inc.
The
and
Illinois
Central
Oct.
30 it
was
California
First
Co.
ceeds
Dauch
Underwriters
Underwriter—
Empire Petroleum Co., Ogden, Utah
3,000,000 shares of com(par 10 cents). Price—5 cents per share.
(letter of notification)
stock
Proceeds
—
For
Electric
announced
&
Gas
Utah.
Underwriter
—
working capital, to acquire
Office—812 Eccles Bldg., Ogden,
Samuel B. Franklin & Co., Los
Angeles, Calif.
•
Worcester County
Electric Co.
(11/18)
company
intends to offer and
Proceeds—To repay bank loans and for
new
construction.
Underwriters-^—To be determined by com¬
bidding. Probable bidders: Kidder, Peabody &
Co.,-(Blyth & Co., Inc. and White, Weld & Co. (jointly);
petitive
-
To repay bank
loans and for new construction.
(1) For preferred stock—Stone & Web¬
—
Securities
by
Corp., New York.
competitive
(2) For bonds—To be
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Stone & Webster Securities
Corp.; Kidder, Peabody & Co. and White, Weld & Co.
(jointly).
Central
Oct.
7
it
Lehman
Maine
was
Power Co.
reported
company
plans sale
The
First
Boston
quarter of 1954 of $10,000,000 common stock after
distribution by New England Public Service Co. of its
of
Central
Maine
Power
Co.
common
stock.
Probable bidders:
Blyth & Co., Inc. and Kidder, Peabody
& Co. (jointly); Coffin & Burr, Inc.; A. C. Allyn & Co.,
Inc. and Bear, Stearns & Co. (jointly); Harriman Ripley
& Co.,
shares of
on
one
of
Cleveland
Nov.
s
Ofn
r)V
Workers
21
Loan Co., Dubois, Pa.
(letter of notification) $200,000 of
subordinated
*
(in
debentures
Proceeds—For
working
Oct., 1963. Price—At par
and accrued interest.
capital. Underwriter—Blair F.
Claybaugh & Co., Harrisburg and Pittsburgh, Pa.
four
share-s
24.
outstanding
Price—$28
capital and surplus.
as
capi¬
each
of Oct. 27; rights expire
on
Proceeds—To increase
Underwriter — McDonald & Co.,
per
share.
Cleveland, Ohio.
each)
on
subscription
shares held
Jan. 22, 1954.
as
of Jan.
Unsubscribed
Price—To be
shares will be offered first to employees.
determined by company and announced on Jan. 4, 1954.
Proceeds—For construction program. Underwriters—To
be determined by competitive
bidding. Probable bidders:
Morgan, Stanley & Co.; Harriman Ripley & Co. and The
Corp. (jointly); Lehman Brothers. ,Bids—
^
ToJ^e. received on Jan. 6.
Delaware Power & Light Co.
Oct. 5 it
was
announced company
plans to issue and sell
$10,000,000 of first mortgage and collateral
Probable bidders:
Boston
Corp.
Halsey, Stuart & Co. Inc.; The First
Blyth & Co., Inc. (jointly); White.
and
Weld
& Co. and Shields & Co.
(jointly); Union Securi¬
Corp.; Lehman Brothers; Morgan Stanley & Co.;
Kuhn, Loeb & Co. and Salomon Bros. & Hutzler (jointly);
W. C. Langley & Co.
Detroit Edison Co.
March 24
it was announced company plans to issue an
unspecified amount of convertible debentures due 1963
construction
costs.
authorized the
2
it
was
interest rate not exceeding
reported company
debentures.
on
April 14
Underwriter—None.
was
announced company
plans sale of $7,000,-
collateral trust mortgage bonds due 1973.
Under¬
writers—To be determined by competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; Estabrook &
Co. and Stone & Webster Securities Corp.
(jointly); The
First Boston Corp., White, Weld & Co. and Kidder, Pea¬
body & Co. (jointly); Glore, Forgan & Co. and Harriman
Ripley & Co. Inc. (jointly).
•
Erie
Oct.
RR.
it
2
(12/10)
reported company plans to issue and sell
$5,400,000 equipment trust certificates to be dated Jan.
was
15, 1954 and due annually 1955-1969, inclusive. Bids —
to be received on Dec. 10. Probable bidders:
Expected
Halsey,
Stuart & Co. Inc.; Salomon Bros. & Hutzler;
Kidder, Peabody & Co.; Blair, Rollins & Co. Inc.
Essex County
Sept.
it
21
Electric Co.
reported
company plans issuance and
of $4,000,000 30-year first mortgage bonds. Under¬
writers
May be determined by competitive bidding.
was
sale
—
Probable
bidders:
Halsey,
Stuart
&
Co.
Brothers, Merrill Lynch, Pierce, Fenner
Union Securities Corp. (jointly).
28
it
Inc.;
&
Lehman
Beane and
Inc., Pittsburgh, Pa.
reported
company plans issue and sale
$1,600,000 6% convertible debentures. Underwriter—
McCormick & Co., Chicago, 111.
was
it Fruehauf Trailer Co.
Nov. 5 it was reported early registration is planned of
$10,000,000 convertible subordinated debentures due 1973.
Underwriter—Lehman
General
Oct.
may
Meeting—Stockholders
new
Eastern Utilities Associates
•
Central Power & Light Co.
March
carry an
which may first be offered for subscription by
stockholders. Proceeds—To retire bank loans and to meet
of
10-year 7%
due
denominations of $500
Expected early in
(1/6)
share for each 10
Firth Sterling,
Bank
Nov. 2 offering to stockholders of 140,625 shares of
tal stock (par $16) on basis of one new share for
Oct.
—
stock to shareholders for
common
basis of
Oct.
National
Brothers; Merrill Lynch, Pierce, Fenner &
Beane; Equitable Securities Corp. Bids — Tentatively
scheduled to be received by company at its office, 441
Stuart St., Boston
16, Mass., up to noon (EST) on
'
Offering
application with Michigan P. S.
authority to offer 679,436 additional
for
7, 1954; rights to expire
Inc.
Central
Nov. 18.
_
Corp.
Consumers Power Co.
during the
first
holdings
Oct. 12 filed 75,0G0 shares of cumulative preferred stock
(par $100).
Underwriters—
000
Co.
additional
leases, drill well, etc.
^
ster
—
determined
Western
enon
construction.
January.
Feb. 20 it
preferred stock, par $100, later this year and $4,000,000
of first mortgage bonds about the middle of 1954. Pro¬
shares
None.
Oct. 22
new
by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.;
newly acquired "subsidiary. Underwriters—Blair, Rollins
(in addition to 70,400 shares of common stock to
stockholders) an issue of 15,000 shares of cumulative
Sept. 28 filed 1,270,344 shares of common stock (par $5)
being offered in exchange for common stock (par $10)
*
for
To be determined
4%)
sell
West Virginia Pulp & Paper Co.
18.
Co.
Gale, Chairman, announced that if the
separation of the gas and electric properties is carried
out, a substantial block, perhaps $60,000,000, of mortgage
—
The offer will expire on Nov.
Edison
Willis
19
(about $55,000,000 to
Blair
sell
(par 50
cents). Price—To be supplied by amendment. Proceeds
—Together with other funds, to be used to build pipetine. Underwriters
White, Weld & Co. and Union Se¬
curities Corp., both of New York. Offering—Postponed
Indefinitely.
share.
plans to offer to its
$25) on a l-for-5 basis held on Nov. 23; with rights to
expire on Dec. 10. Price—$45 per share. Proceeds—To
increase capital and surplus.
in 1 to 16 years.
June
West Coast Pipe Line Co., Dallas, Tex.
reported company is planning to issue and
was
sell $60,000,000
Of-
Nov. 20 filed 1,125,000 shares of common stock
'
company
ties
common
share of stock.
crude oil pipeline.
it
Proceeds—For construction program.
Un¬
derwriters—To be determined by competitive
bidding
it Baltimore & Ohio RR.
mile
Halsey, Stuart & Co. Inc.;
trust bonds.
15, 1964, and 580,000 shares of
cents) to be offered in units of
common
6
in 1954 about
$14,000,000 to between
$7,000,000 and $8,000,000 its needs for new financing.
tional shares of
bidding. Probable bidders:
Morgan Stanley & Co.
Aztec Oil & Gas Co.
Oct. 26 it
itnent.
repay bank loans and for construction pro¬
Underwriters—To be determined by competitive
First Boston
West Coast Pipe Line Co., Dallas, Tex.
Nov. 20 filed $29,000,000 12-year 6% debentures due Dec.
:'one
ceeds—To
gram.
Commission
announced
was
this
later
Aug. 11 it
None.
one
System, Inc.
announced company plans to issue and
sell later this year $40,000,000 of new debentures.
Pro¬
was
Nov.
"4
$60,000,000.
The
exact nature and timing of the financing are still to be
determined.
Stockholders voted May 5 to increase the
authorized debt from $75,000,000 to $150,000,000.
Pro¬
ceeds—To be used to help pay for a $100,000,000 convstruction program for 1953. Underwriters—Smith, Bar¬
ney^ Co. may head group.
(no par) to be issued in connection with
Light Co.
basis
additional
Atlantic
Washington Water Power Co.
May 7 filed 1,088,940 shares of $1.28 cumulative con¬
vertible preferred stock (par $25) and 1,088,939 shares of
the proposed merger
Columbia Gas
Oct. 30 company filed an
ceeds—To discharge short-term indebtedness and for im¬
provements and expansions to plant.
l-for-10
a
an
issue
common
,-L.
11.
construction program. Underwriters—For common stock
March
Ave., Warren, O.
Jan.
on
Electric Co.
England, President, announced that the com¬
pany plans to issue and sell early next year about $4,000,000 of new bonds and make an offering to stockhold¬
Ipreferred
Bark
new
Oct. 5 B. L.
Oct. 27 (letter of notification) 3,000 shares of $5 dividend
(no par).
Brothers
(jointly); Salomon Bros. & Hutzler.
by
scheduled to be received
Warren Telephone Co., Warren, Ohio
stock
determined
be
bidders:
Atlantic City
(12/1)
Underwriters—To be determined
t)y competitive bidding.
■
it Appalachian Electric Power Co. (1/11)
Nov. 10 it was announced company plans to issue and sell
•
Oct. 28 filed 558,946 shares of common stock (par $10).
Price—To be supplied by amendment.
Proceeds—For
Lehman
stockholders 11,000 additional shares of capital stock (par
it American Louisiana Pipe Line Co.
Nov. 10 company, a subsidiary of American Natural Gas
Co., asked Federal Power Commission to authorize con¬
struction of a $130,000,000 pipe line,
to be financed
through the issuance of $97,500,000 of first mortgage
bonds, $12,000,000 of interim notes convertible to pre¬
ferred stock at option of company, and $20,500,000 of
common stock (par $100), the latter to be sold to parent.
—To
Oct. 19
Corp.;
Glore, Forgan & Co. (jointly); Blyth & Co., Inc.,
Harriman Ripley & Co., Inc. and Smith, Barney & Co.
New York
repay
Uranium, Inc., Denver, Colo.
Securities
and
Nov.
$20,000,000 first mortgage bonds due 1984. Proceeds—To
Ute
Webster
&
41
it Commercial State Bank & Trust Co. of
of Finishing stock for each share of Aspinook stock. The
offer is conditioned upon its acceptance by the holders
of at
Stone
April 6 it
the
ordinary shares from the
company, the proceeds to be used by it for capital addi¬
tions to
plants and facilities.
Underwriter — Lazard
Freres & Co., New York.
holders,
(1869)
issue and aell
60,000 shares of new preferred stock. Underwriters—To
be determined by competitive bidding. Probable bidders:
23
vote
on
it
Brothers, New York.
Tire & Rubber Co.
was
announced
approving
a
stockholders
on
Dec.
3
will
proposal to authorize 350,000 share?
Continued
on
page
42
*
42
The Commercial and Financial Chronicle
(1870)
Continued
of
$100
from
preferred
par
Boston Corp.
41
page
stock.
Lighting & Power Co.
reported company plans some new fi¬
nancing to provide funds for its construction program.
Bidders for about $25,000,000 of bonds may include HalHouston
was
Co. Inc.; Kuhn, Loeb & Co.; Union
Lehman Brothers; Smith, Barney &
Kidder, Peabody & Co.; Equitable Securities Corp.
sey, Stuart &
curities Corp.;;
Power
Se¬
Co.;
to
Snake
construction of three hydro-electric projects
finance
River, Idaho.
If approved, the financing will
stock.
would
Final
market conditions.
preferred stock; and $52,150,000 of common
Throughout the financing period, the company
borrow and repay $29,000,000 of short-term loans.
financing details would depend on
announced that to complete the
was
construc¬
tion program
through 1955, it is estimated that the com¬
pany will require approximately $55,000,000 in addition
to proceeds from the common stock offerings in October
and from the sale of $25,000,000 of bonds this week, and
from funds expected to be provided by depreciation ac¬
cruals and retained earnings. The nature, amounts and
timing of such additional financing will depend in part
on
construction progress and market conditions exist¬
ing from time to time.
Maier Brewing
18 it
rate of four
common
stock to its stockholders at
shares for each
new
share held.
Prcoeeds— To help finance
share.
plant.
Co., Los Angeles, Calif.
company will offer 400,000
announced
was
additional shares of
per
a
Price—$5
new
bottling
Underwriter—None.
★ McBride Oil & Gas Corp., Houston, Tex.
8 it was announced that early registration is ex¬
of approximately $5,000,000 of common stock.
Nov.
Price—Expected to be about $2 per share. Proceeds—
For expansion program.
Underwriter — Bryan & Co.,
Houston, Tex.
of
was
Milwaukee Gas Light Co.
$3,000,000 bonds. Underwriters—May be
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce, Fenner
& Beane and Union Securities Corp. (jointly); Lehman
Co. Inc.; Glore, Forgan &
(jointly); Smith, Barney &
Co., Inc. (jointly); Kuhn, Loeb & Co.;
& Co.; Harriman Ripley & Co. Inc.
&
Brothers
Co. and Lehman
Co. and Blyth &
stockholders will vote Oct.
1
the authorized common stock (no par)
shares (858,047 shares outstanding) to 3,and on approving a 2-for-l stock split.
This will place the company in a position to
proceed
promptly with any new financing that may become
necessary.
Immediate offer not contemplated. Under¬
writers—May be determined by competitive bidding.
Probable bidders: Kidder, Peabody &
Co.; Blyth & Co.,
Inc.
(City of)
was reported that
early registration is expected
$22,844,00 bonds due in 1 to 19 years. Underwriters
—Probably Shields & Co., Savard & Hart and Halsey,
Stuart & Co., Inc.
of
if Montreal Transportation Commission
Nov. 5 it
will
be
was
reported that
offered
following
an
issue of $15,000,000 bonds
financing
City
of
March
reported that this company plans to
pipeline from Canada to
the Pacific Northwest by the issuance and sale of $66,it
23
was
companies and other institutional investors and $9,-
ance
000,000 of 5% debentures and 1,400,000 shares of common
6tock at $10 per share publicly
in the United States ana
Canada. Underwriter—Morgan Stanley & Co., New York.
Ohio Edison Co.
Oct. 22 it
Corp.
Brothers; Kidder, Peabody & Co.
(jointly);
Oct. 8 company applied to Rhode Island P. U. Commis¬
for
authority to issue 150$0fL shares of pre¬
ferred stock (par $50).
Underwriter — Previous
sion
pre¬
ferred
stock
offer
(in
1940) was handled by The
First Boston Corp. If sold
through competitive bidding,
probable bidders may include The First Boston
Corp.;
Merrill
Lynch, Pierce, Fenner & Beane and Union Se¬
curities Corp.
(jointly); Blyth & Co., Inc. and Harriman
Ripley & Co. Inc. (jointly); White, Weld &
Co.; Lehman
Brothers and Goldman, Sachs & Co.
(jointly); Kidder,
Peabody & Co. and Stone & Webster Securities
Corp.
(jointly).
★ New York, New Haven & Hartford RR.
Nov.
and
10
sale
future.
it
of
was
reported
company
$6,600,000 equipment trust
Probable
Salomon Bros. &
ctfs.
in
the
near
bidders:
Halsey, Stuart & Co. Inc.;
Hutzler; Kidder, Peabody & Co.; Blair'
oversubscription privilege). Price—Ex¬
on Jan.
11.
Proceeds—For con¬
an
be
to
struction
—
Inc.; The First
Airlines, Inc., New York
Aug. 11 it
Underwriters—To be determined
bidding.
Probable bidders:
Morgan
program.
Bear,
Stearns
&
(jointly); The First Boston Corp,; Merrill Lynch,
Pierce, Fenner & Beane and Kidder, Peabody & Co.
(jointly); Glore, Forgan & Co. and White, Weld & Co.
(jointly). Bids—Expected to be received on Jan. 13.
Ohio Edison Co.
Oct. 22 it
reported
was
company
tentatively plans to issue
issue of $30,000,000 first mortgage bonds due
an
Proceeds
—
construction.
new
(1/19)
For repayment of bank loans and for
Underwriters
To be determined by
Probable bidders: Halsey, Stuart &
competitive bidding.
—
Co.
Inc.; Morgan Stanley & Co.; The First Boston Corp.;
Glore, Forgan & Co., White, Weld & Co. and Union Se¬
curities Corp. (jointly). Bids—Expected to be received
on
about Jan. 19.
or
announced
was
secure
cargo
Jenkintown, Pa.
named
by
competitive
Stanley & Co.; Lehman Brothers and
Nov. 5 it
company plans future public
transport aircraft.
(12/7-10)
was
reported company plans to offer $1,000,000
12-year subordinated debentures. Underwriter—
5%%
Stroud
&
Co., Inc., Philadelphia, Pa. Offering—Expect¬
Registration—Planned for be¬
ed about mid-December.
tween Nov. 16-20.
Seaboard Finance Co.
Oct.
29 it was reported
company may offer publicly
$20,000,000 of debentures before the end of this vear.
Underwriter—Probably
The
First
Boston
Corp.,
York.
New
Sky Ride Helicopter Corp.
Sept. 3 it was announced that the company contemplates
issue and sale of 1,490,000 additional
shares of capital
stock (no par), following
completion of present offering
of 10,000 shares at
$2 per share.
Offering—Expected In
November
December.
or
Office—1705—38th
St.,
S.
E..
Washington, D. C.
Ormond
10
Corp., Albuquerque, N. M.
it
nationally.
was
an
announced
issue
company
of stock,
Office—5003
plans to register
which will be offered
Central Avenue, N. E.,
Albu¬
N. M.
querque.
June
25
before
the
build
Federal
335-mile
a
Florida at
Authorized company to issue a maximum
FPC
South Georgia Natural Gas Co.
Sept. 28 it was reported that an, application is pending
an
Power
pipe
Commission
line
for authority to
Alabama, Georgia and
$8,141,518. Underwriter-
in
estimated cost of
Shields & Co., New York.
Otter Tail Power Co.
of
★ Southern Pacific Co.
company's 1953 and 1954 construction programs prior to
arranging for long-term financing. Underwriters—May
be Glore, Forgan & Co. and Kalman & Co.
Bids will be received up to noon
(EST) on Dec. 3 for
the purchase from the
company of $5,925,000 equipment
trust certificates due
annually on Nov. 1 from 1954 to
1968, inclusive. Probable bidders: Halsey, Stuart & Co.
$4,000,000 unsecured promissory notes to banks, the
proceeds to provide funds to temporarily finance the
Bank of San Francisco
(12/3)
Inc.; Salomon Bros. & Hutzler; Kidder, Peabody &
Co.;
(Calif.)
was announced that company is offering stock¬
holders of record Oct. 26 the right to subscribe for
37,400
shares of common stock (par $20) on the basis of two
shares for each three shares held; rights to expire
Nov. 25. Price—$25 per share. Proceeds—To increase
Blair*, Rollins & Co., Inc.
Southwestern
Development Co.
Westpan Hydrocarbon Co. below.
See
new
on
capital and surplus. Underwriters—Elworthy & Co. and
Shuman, Agnew & Co., both of San Francisco, Calif.
Pacific Northwest
mile
Pipeline Corp.
the
of
application
transmission
Basin in
New
Pacific
proposing
line
Mexico
extending
and
Northwest.
to
construct
from
Colorado
Estimated
to
the
a
San
market
overall
1,466Juan
areas
capital
in
cost
the
project is $186,000,000, including $2,000,000 for
working capital. Financing is expected to consist of first
mortgage pipe line bonds and preferred and common
Underwriters—White, Weld & Co. and Kidder,
Peabody & Co., both of New York, and Dominion Secu¬
rities Corp. Ltd., Toronto, Canada.
Pacific
July 2 it
sell
to
its
stockholders
on
a
American
plans to
additional
company
1,004,603
l-for-7 basis.
Proceeds—To
None.
issue
and
shares
Price—At par
of
(100 per
bank loans.
Underwriter—
Telephone & Telegraph Co., parent,
repay
91.25%
of Pacific's outstanding stock.
expected until the early part of 1954.
owns
Not
announced
Pennsylvania RR.
Offering—
(EST)
$4,230,000 equip¬
annually from March 1,
1968, inclusive. Probable bidders: Halsey, Stuart
& Co. Inc.; Salomon Bros. &
Hutzler; Kidder, Peabody &
1954 to
Co.; Blair, Rollins & Co. Inc.
Portland General Electric Co.
July 22, Thomas W. Delzell, Chairman, and James H.
Polhemus, President, announced that financing of its
1953
construction program, which will range between
$8,700,000 and $9,200,000, is being accomplished by means
of
bank
loans
under
a
credit
November, 1953.
6
it
was
announced
company
plans
arrangement
which
will
Repayment of the loans at
to
issue
and
sell
About:$20,000,000 of securities (to consist of around
$12,000,000 bonds; from $2,000,000 to $3,000,000 of pre¬
ferred-stgck; and the remainder in comrpon stock, the
latter to 7be
offered
first
to
stockholders
on
a
l-for-13
basis).
Underwriter—Dillon, Read & Co., New York.
Offering—Expected in January or February 1954.
Suburban Electric Co.
Sept.
sale
28
of
it
was
about
determined
reported
$4,000,000
by
company
plans
issuance
and
bonds.
competitive
Underwriters—May be
bidding. Probable bidders:
Halsey,-Stuart & Co. Inc.; Merrill Lynch, Pierce, Fenner
& Beane and
Union
Securities Corp.
(jointly); Lehman
Brothers; Kidder, Peabody & Co.
;
Oct.
14 it was announced that
company now plans to
issue $29,000,000 in l-to-5y2-year serial
notes; $71,000,000
in 20-year, first mortgage
bonds; and $24,440,000 in sub¬
ordinated long-term debentures and
4,100,000 shares of
common stock to
be sold to the public.
Proceeds—To
finance construction of
a natural
gas pipe line from the
Canadian Peace River field to western
Washington and
Oregon. Underwriter—Eastman, Dillon
(11/17)
Bids will be received by the
company up to noon
on Nov. 17 for the
purchase -from it of
mature in
Southwestern Public Service Co.
Aug.
West Coast Transmission Co.
Telephone & Telegraph Co.
was
capital stock
share.
Rollins & Co. Inc.
New York State Electric & Gas
Corp.
Feb. 27 it was reported that
company may, later in 1853,
issue and sell
$20,000,000 first mortgage bonds. Under¬
writers
To be determined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co.
it
was
reported early registration of $50,000,000
(payable in U. S. funds) is expected. Underwriter
—The First Boston
Corp., New York.
★ Ritter Finance Co., Inc.,
(with
pected
ment trust certificates to mature
is planning issuance
5
stock
stocks.
Narragansett Electric Co.
Nov.
financing to
Montreal.
Lehman
12.
bonds
Riddle
substitute
Securities
Jan.
on
★ Quebec Hydro-Electric Commission
(1/13)
Mystic Valley Gas Co.
Sept. 21 it was reported company plans issuance and sale
of about $6,000,000 of bonds.
Underwriters—May be de¬
termined by competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; Merrill Lynch, Pierce, Fenner &
Union
to be received
reported company plans to offer for sub¬
scription by its common stockholders of record Jan. 13,
on a l-for-10 basis, 527,830 additional shares of common
was
Jan 29 company received FPC permission to file a third
and
Bids—Tentatively expected
000,000 of 4y2% first mortgage pipeline bonds to insur¬
Underwriter—Probably Shields & Co., New York.
Beane
Proceeds—To repay bank loans and for new con
Underwriters—To be determined
by competi
bidding. Probable bidders: Halsey, Stuart & Co. Inc.
Blyth & Co., Inc.; Kuhn, Loeb &
Co.; The First Boston
Corp.; Glore, Forgan & Co.; Harriman
Ripley & Co. Inc.
tive
Oct. 28 it
Nov. 5 it
Probable bidders:
bidding.
Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co.; The First Boston Corp.;
Harris, Hall
& Co. Inc.; Harriman
Ripley & Co., Inc. and Union Se¬
curities Corp.
(jointly); Lehman Brothers: Kidder, Pea¬
body & Co.; Blyth & Co., Inc. and Smith,
Barney & Co.
(jointly).
1984.-
Northwest Natural Gas Co.
Pacific National
if Montreal
000 electric generating plant to be
constructed in Denver,
Underwriters—To be determined by competitiv
struction.
with the SEC
announced
company is planning to float an
issue of $15,000,000 first
mortgage bonds, due 1984, early
Proceeds—For financing, in part, a $17,000,-
next year.
and
Northern Illinois Gas Co.
March
Power & Light Co.
Public Service Co. of Colorado
13 it was reported
Oct.
Nov. 10 it
See Commonwealth Edison Co. above.
Kidder, Peabody
1
financing
★ Public Service Co. of Indiana, Inc.
(1/12)
was reported the
company is planning to issue
sell $25,000,000 first
mortgage bonds, series K, due
Brothers; Kidder, Peabody & Co.
1984.
July 7 company sought SEC approval of a bank loan
of $9,000,000 the mature Aug. 1, 1954. These borrowings,
plus retained earnings, are designed to finance expansion
pending formulation of permanent financing prior to
maturity of notes. Probable bidders for bonds: Halsey,
Minnesota
reported that company plans issuance and
about
determined
and sell
Aug. 3 it was
on
increasing
from 2,000,000
000,000 shares
■
.
Co.
pected
Stuart
t:
sale
mortgage bonds. Previous bond
done privately through Blyth &
Co., Inc.
Colo.
York.
finance its proposed 1,300-miles
★ Long Island Lighting Co.
April
Corp.
plans to issue and sell
in January all or part of 300,000 authorized shares of
preferred stock (par $10), subject to approval of stock¬
holders on Dec. 17. Underwriter—J. G. White & Co., New
$105,000,000 of bonds through 1962; $27,400,000
of
Nov. 9 it
North American Acceptance
15 it was reported company
Oct.
Sept. 21 it
Co.
Inc. and Bankers Trust
Co., New York, testified before the Federal Power Com¬
mission that this company plans to raise $184,550,000
on
was
Brothers; Harriman Ripley & Co., Inc.
North Shore Gas Co.
Aug. 6, officials of Blyth & Co.,
consist of
additional $1,500,
an
000 needed for the rest of the
year, will be accomplish
either by expansion of the credit
arrangement or by th
sale of first
Lehman
/
Idaho
maturity, plus the procurement of
Co., Inc. and Smith, Barney & Co. (jointly); Hemphill,
(jointly); Kidder, Pea¬
body & Co. and Salomon Bros. & Hutzler (jointly);
There are said to be no
these shares when auth¬
orized.
Thursday, November 12, 195'
Noyes & Co. and Drexel & Co.
present plans for issuing any of
Sept. 25 it
(jointly); Blyth
and Glore, Forgan & Co.
&
..,
& Co., New York.
Westpan Hydrocarbon Co.
July 1 SEC granted Sinclair Oil Corp. an extension of
six months from June 21, 1953, in which to
dispose of Its
holdings of common stock in Westpan and the South¬
western
Development Co. Sinclair owns 384,860 shares
(52.85%) of the stock of each of the other two companies.
Underwriter—May be Union Securities Corp., New York.
Williston
Basin Pipeline, Inc.,
Billings, Mont.
21, A. W. Hartwig, President, announces company
plans to build a pipeline from the Billings-Laurel refin¬
ing area to Glendive, Mont., to cost approximately $7,000,000. Financing expected to be done privately. UnderOct.
writesrrrPiRon, Read & Co. Inc., New York.
Number 5272
Volume 178
...
financing would have to carry
attractive
coupon
i
Eliminations
long-term re¬
that any attempt at
a
investors.
to
States
States
United
The
While
down in
directions
some
as
new
slowing
be
to
appears
money
for
demand
the
far as
as
concerned, this quite
industry is
evidently is not the case with the
pipeline companies.
gas
This
-
issue market still
The new
a
with
million
of
the dike.-Recent offer¬
break in
of
tug
it
be
capital.
Largest
Louisiana
new
American
is
mid-
projected
Co.'s
Line
a
cost
to
estimated
line
side and banking interests
Continued
from
companies
Insurance
had
taste of
a
yield basis
to 3.60%
3.50%
months
ago,
on
a
few-
land
And
Line
$5.75
that
sets
of
value
Sept. 30, 1953.
on
On
Inc., revealed
$7,189,535 and
per
share of
Fund,
asset
net
a
assets
net
in
invested
were
common
in
balance
the
bonds
Pacific
5,000
&
Gas
included
Rock
3,200
and
stocks
of
Light were eliminated.
investment problem if
an
views
their
prospective
the
on
Report accompanying the four cent
dividend sent to Wisconsin Invest¬
Shareholders increased to
to provide for its maturity of $10 3,570, the largest number in the
billion of one-year, 2%% notes. company's history.
now
and the month-end
pany.
71 different se¬
The Fund held
doubted, in view of indi¬
cations
that
the Treasury
will
is
It
curities at the end of the
quarterly
that
do, period. Principal changes during
it will attempt to refinance the quarter were as follows:
the
impending
have some deficit financing to
maturity
a
on
first
the
for
REPORT
THE
were
is
and
Reserve
among
lion of
Chemical
Allied
since it
Federal
government funds
particularly so
calculated
that
the
is
Bank
Dye
&
stores,
ASSET
NET
de
Eastman
value
Fund, Inc.
Mutual
Vegh
of
share
per
to
a
just
report
issued
of
Insurance
small member
with
connect
November
NORFOLK SOUTHERN
5, 1953.
RAILWAY COMPANY,
American -Standard
PREFERRED DIVIDEND
,
COMMON
A
on
DIVIDEND
quarterly dividend of $1.75 per share
the Preferred Stock has been
1953
1,
December
payable
declared,
to
stock¬
of business
at the close
holders of record
Have
of
prised
and
contacts,
and
the
share and
A dividend of 25 cents per
Stock have
Common
relocate
outside
pensating
salary.
Commercial
25
of
city
Box
experience
for
ing
com¬
W
all
ex¬
phases
of
business.
managing
Capable
in city, but may
Prefer placement
in
investment
1029,
branch
or
offices.
December
payable
15,
holders of record at the
on
Highest
Park Place, New York 7, N. Y.
Box S1021, "Com¬
mercial
Financial
&
11
ill
Chron¬
icle," 25 Park Place, N. Y. 7.
ECONOMIC ANALYST
per
■
if
.——
The
also
Directors
J
,,
REYNOLDS
METALS
KING
E.
A
DIVIDEND NO. 118
to
ii&o
industrial corporation.
travel.
Please
.
write
Box
S-1112
7-'
Commercial
„
j.,<>
Chronicle, 25 Park Place, New York 8, N. Y.
Financial
and
record
value, of this
record at the
November 25, 1953.
the
4Yi
per
cent
has
1953.
January
regular quarterly dividend of eighty-one
cents (81J4c) per share on
the 3 \i% cumulative convertible preferred
stock, $100 par value, of this company, has
been declared, payable December 5, 1953, to
shareholders of record at the close of business
and one-quarter
Checks will be
cember 21,
The
E.
Loan Service Corporation
Ohio Finance Company
;|||
November 4, 1953.
ALLYN DILLARD,
DIAMOND
Dividend Number 8 on
Regular Quarterly
on Common Stock
The
Diamond
of
have
Company
ending De¬
payable
December 15, 1953, to hold¬
ers
of
4.40% Cumulative
the
cember
AND LIGHT COMPANY
|
J<
125th Common Dividend
The Board of Directors
a
has declared
dividend of 50c
the Common Stock of
regular quarterly
per
share on
Company, payable on
ber
1, 1953 to
at
the
Decem¬
stockholders of rec¬
close
of
business on
16, 1953.
on
declared
dividend of $1.10 per share
for
THE DAYTON POWER
November 6, 1953
w
Directors
Alkali
November 9, 1953,
GEORGE SELLERS, Secretary
r
4.40%
Dividend
November
Corporation
Secretary
Dated, November 6, 1953
Cumulative Preferred Stock
ord
General Public Loan
Company. '
HAWKINSON,
the
Ay\
Domestic Finance Corporation
ill
be
by
not
mailed
be
be closed.
DAYTON, OHIO
|p:|
will
mailed.
W.
§1
w
will
books
Checks
Vice President and Secretary.
p|i
|gg|
of
holders
to
1953.
transfer
a
principally:
—
payable
record at the close of business De¬
1953.
Transfer books will not
M
November 2, 1953
1954,
a
common
declared
A
|fl
Public Loan Corporation
faif:
5,
(50O
fifty cents
outstanding
been
to
of
close
the
at
Bank of the Manhattan
|p|
Preference ||j|
December 18, 1953.
lion-wide subsidiaries
pi
the
on
closed.
DIVIDEND NO. 29
and
Slock, all payable January 1,
1954 to stockholders of record
of
dividend
1953,
31,
December
of
the
KM.
relocation and/or
'
has
stock
j||p
Financing the Consumer through na-
writing for top financial and
injerefere with
on
share
of one dollar
and outstand¬
1963, to shareholders of
Treasurer
versity teaching, and chamber of commerce service.
ties
twenty-five cents
the outstanding
been declared
share
stock
a
payable
,
DIVIDENDS
of
dividend
common
holders
regular quarterly divi- |||
on the" 5]£ I)er cent WM
Iff Cumulative Prior Preferred
HI Stock, the Series A $1.25 Con- g||
•u&
economic journals, consultation to U. S. Government, uni¬
marital
COMPANY
||| (lends
vertible Preference Stock
President
Cecil M, Self,
a
has been declared, payable Decem¬
|||
declared
Decem¬
Reynolds Metals Building
Richmond 19, Virginia
November 20,
share, payable December
to stockholders of §§|
Interested in connection with financial institution, invest¬
No
pp
regular quarterly dividend on
nui.
■
Varied experience includes
the
at
Vice President and Treasurer
ber 23,
gg|.
D. L. BARNES, JR.
or
record
on
1953 to stock¬
close of business
JOHN
close of business
ON COMMON STOCK
The Board of Directors declared
(in prime of life)
broker,
to stockholders of"
close of
business
1953,
15,
SANITARY CORPORATION
ill i, 1953,
ft!
or
payable
ber
AMERICAN RADIATOR & STANDARD
company
p|| the Common Stock of 40 cents ■
nuuaklp Dpppmbpr
g!
ment banker
said Company,
1953.
November 20,
COMMON
m
open¬
references.
& Financial Chronicle,
a
been declared,
regular quarterly dividend
($1.00) per share on the issued
ing common stock, $20.00 par
if
record November 16, 1953.
procedure.
office
brokerage
institutional.
Thoroughly
perienced
Ex¬
perienced in handling of securities
declared
special dividend of 25 cents per share on
the
PREFERRED
ap¬
situations.
special
firm.
Railway Company, have
quarterly dividend of
forty-two and one-half cents (42
per share on the common stock of
Southern
December 1, 1953.
November 20, 1953.
on
A
DIVIDEND
Dividend
Common
The Board of Directors of Norfolk.
A
CONSECUTIVE
1953.
Secretary.
1953..
5,
business December 21,
ND
17,
November
on
ALEXANDER,
H.
Peterson, Treasurer
A.
Walter
November
MFG. CO.
a
own
business
share has been declared, payable
21, 1953 to holders of
at the close of business on
November 30, 1953 on the Common
Stock of Atlas Corporation.
^ALLIS-CHALMiRS
years'
of
close
quar¬
a
share payable
to stockholders of record
1953
COMMON
(Lmhirnv
and
Eighteen
trading in unlisted se¬
developing
curities.
retail
or
the
declared
has
cents per
of sixty
15,
record
Newark
Trader,1 order clerk, salesman,
firm, to assist in
NOTICES
Directors
of
(25()
92
common
December
Corporation
AVAILABLE
desires
Canadian
per
DIVIDEND NOTICE
Corporation
Situation Wanted
Board
dividend
December
D.
Company
Tea
Sperry
Fund
company
Singer Manufacturing
Company
to
Kodak Co.
Fireman's
terly
regular quarterly dividend of 40<?
$34.63 on June 30, 1953, accord¬
ing
investment
in
at
A
$34.65 on Sept. 30, 1953 compared
to
Insurance
General
Canada
mutual
a
on
Common Stock
OF ILLINOIS
over-the-counter
is
General
Toronto
Company
The
Dividend No. 48
on
was
INVESTMENT COMPANY
to
the
York 5.N.Y.
supply
department
in
10.5%
concerns,
SITUATIONS WANTED
Trader
including Traders Finance
Corporation, Ltd., the Canadian
Insurance Company and
tions,
General
The
12
Co.
Manhattan
of
Jewel
them hold some $7Yz bil¬
the total. It is recognized
Cashier-Assistant
Naylor is President and Director
Canadian corpora¬
of several large
invested in se¬
building
the
Director of the fund.
and
dent
this
Presi¬
stocks.
Fund, Inc., for the period to Sept.
of
announced
was
by Henry T. Vance,
DIVIDEND
months of the Value Line Income
curities
it
Fund,
week
investing
NOTICES
DIVIDEND
33 Pine Street, New
Additions
long-term basis.
This
$278,-
1953, com¬
on the date
Toronto, has been elected to the
advisory board of Canada General
Atlas Corporation
9.9% in steel companies,
5.6%
in
agricultural equipment
ment
Company shareholders on
producers, 5.1% in metal fabrica¬
Oct. 31, reported net assets of $5,tors, 4.9% in machine tool makers,
pretty much to smaller institu¬
078,403 compared with $4,941,235
and the balance in other manu¬
tional
outlets
such
as
pension
a
year earlier.
Net assets were
facturing fields.
funds, trusts and the like for their
equivalent to $4.01 per share.
markets.
As of Oct. 30, 1953, the Fund's
At the end of September, cash
assets were in excess of $4,600,000.
on
hand and obligations of the
Treasury's Dec. 1 Task
Outstanding
shares
were
more
United States Government totaled
The investment world is mull¬
than 1,000,000.
ing over the Treasury's obligation 10.5% of the assets of the com¬
Accordingly, at least for the
near-term, it appears that invest¬
ment bankers will have to look,
between
NAYLOR, prom¬
Canadian
Businessman of
Stanley
Packaging,
fund's assets
Quarterly
30
SEPTEMBER
THE
realized.
loan picture are
were
Vegh
Chemical,
Dow
Aircraft, Lockheed Air¬
institutional
less
de
PROGRESS
PERSONAL
ALBERT ENOS
Fund's
the
30, 1953 showed net assets of $3,10,100 927,400 compared with the $109,-
Island,
similar episodes, these
buyers are adamant.
earlier
Fund,
on
pared
of
of
assets
Inc.,
Sept. 30,
to $155,598.07
192.48
2,000
Chrysler,
Goodrich, 2,800 Illinois Central, 783 of net assets of the fund when
5,000 Kansas City Power & Light, shares were offered initially in
Meanwhile
commercial
banks,
4,500 National Dairy, 9,000 North
September, 1952. The number of
apparently convinced that the de¬
American,
12,600 Shamrock Oil shareholders has increased to 2,053
mand for loans will be on a rising
and 24,000 Socony-Vacuum.
with 874,221 shares outstanding.
trend from now7 until the yearIngersoll-Rand, Kansas Power
end, are more or less on the side¬
The
President
reported
to
Light
and
Washington Gas stockholders that 11.3% of the
lines. They naturally would have &
in
NET
TOTAL
Income
of the as¬
date, 41.2%
$29.61
pares
inent
1953.
Warner, U. S. Plywood and U. S.
Electric, 1,900 Firestone, 6,100
Sales
has been the case
as
total
quarterly report of the
to
to
of
craft, Loew's, Inc., Mountain Fuel
Electric and 4,500 R. C. A.
the current run of 3.25% to 3.30%
yields.
THE 15TH
April 30, 1953.
advanced
8.5
securities
net
Net assets have
$36.20 per share on
Oct. 30, 1953.
An interim divi¬
dend of 30 cents per share was
paid to stockholders on Oct. 28,
on
8.5
Beverages
from
profits of $1.41 per share was paid
Rubber.
to be in no
Goodyear,
with orders for
up
Companies
9.2
&
&
Standard
Mutual Funds
a
seem
hurry to step
Insurance
12.1
Fund,;
net assets on Sept. 30f;
$2,224,319.99, equivalent
per share.
This com->
with $2,189,031.07 and $29.70
per share on June 30, 1953 and
with $1,733,554.01 and $30.81 per
share on Sept. 30, 1952.
1953
Supply, National Homes, Polaroid,
having
material
new
30
page
should be.
money
new
Industries
Banks
Finance
Foods
30, 1952, the net asset
share was $34.33, and a
value per
distribution
Related
&
Grumman
on
the other over the matter of what
yields on
were
15.6%
Utilities
Public
Chemical
Douglas Aircraft,
ideas of potential investors on the
one
industries
by
Mutual
JOHNSTON
THE
Inc. reports
On Sept.
Company
holdings
Vegh,
de
inception, Feb. 2,
and
preferreds.
Portfolio com¬ 1953, according to a report issued
$130 million.
mon
stock changes in the three today to stockholders by Imrie de
Tennessee Gas Transmission is month period were sales of Clin¬ Vegh, President.
ton
Foods, Firemen's Insurance
The regular quarterly dividend,
proposing a line to bring it into
(Newark), General Precision amounting to 10 cents per share,
the New York-Philadelphia area
Equipment and Mueller Brass.
was
paid to stockholders of rec¬
at a cost of $45 million.
Purchases were Diamond Match, ord Sept. 9, 1953.
opposing
between
war
to
appears,
of
western
such issues.
more
corporations
such
two
these
Pipe
have met with poor recep¬
tion,
sponsors
for two of the
larger undertakings having found
it necessary to "break" the syn¬
dicate prices
in order to move
ings
Once
by
which would call for close to $175
to be gripped in the throes
period of buyer resistance
little to indicate an early
pears
of
plans
ap¬
Tobacco
largest
Imrie
by
President.
follows:
Value
forth
brought
has
week
stockholders
Gold Mines, Ltd.
Pipe & Foundry Company
Hollinger Consolidated
United
Line Financing
Gas Pipe
43J
(1871)
.
Chronicle
The Commercial and Financial
quarter
15,
1953,
Preferred
Stock
November
21,
of
1953,
record
and a
regular quarterly dividend of
37% cents per share, payable
December 5, 1953, to holders
of Common Capital Stock of
record November 21, 1953.
donald s. carmichael,
Secretary
Cleveland, Ohio, November 11,
1953
DIAMOND ALKALI COMPANY
44
The Commercial and Financial Chronicle
(1872)
...
Thursday, November 12, 1953
is expected to remain. Thus the
BUSINESS BUZZ
outlook
render,
Washington... £
Bclund-thc-Sccne Interpretations
from the Nation's
not
the
to
big
a
sur¬
business
small
lobby.
AEC
Would
Release
Some Information
And You
Capital
to be for some
appears
appeasement,
SiSlfBfi
If the reports are correct
the
Administration
in
proposals
that
plans to tie
release
to
for
domestic
D. C. — One
certain
conse¬
WASHINGTON,
of
almost
the
of the recent elections
the Presi¬
in a position where as of
quences
toward
dent
the
no chance of
majority in the
when it meets next
stands
he
today
controlling
rule
general
a
Presi¬
a
dent's control over Congress de¬
the
which
influence
upon the
members
largely
pretty
think the President
has with voters in elections for
of Congress
This is
in
particularly important
situation like the present,
a
where the party
tually
division is vir¬
even.
in
If
4.L.
jority
the
a
ma-
vote-pulling power, then
majority of his own party
great
the
timid.
opposition tends to be
particular,
if
the
In
President
still
were
charmer at the
rated
as
a
polls, the Presi¬
dent could get farther
with
con¬
servative Republicans with
schemes
to
Democratic
policy, Democratic policy
tariff
adopt
toward the labor
The
on.
for
waver,
unions, and
bucking
fear
Commission
a
Administration
the
ter
forget
upon
tax
port
of
be
Congressional
then the
against
waverers
the
not
asset
election
in
contests,
naturally vote
President,
just
not
to vote against him, but because
they
vote
will
get
the
they
way
themselves
hope
re-elected
without too much thought of the
President.
those
—and
pressure
wants
the
time
same
when
the
President loses his vote-pulling
charm, the opposition naturally
becomes more vigorous in its
opposition. The Democrats may
be expected to solidify to a con¬
siderable extent in the expecta¬
tion they can hasten the down¬
fall of the still formal
k",
or
nom-
inal control the President has of
Congress,
with
and
defeating
the
view
a
Republicans
to
in
1956.
No
local
matter
how
factors
in
the
these
various
elections
are
rationalized,
enough
happened to convince the
and
file
of
Eisenhower
•—at
least
Congress
has
as
concerned.
lost
far
that
his
has
rank
Mr.
charm
will
tend to close ranks, in the votes
in Congress next year—and the
Republicans will tend to break
and
run.
Loss
Not
and
Hopeless
situation, however, need
necessarily become the fin¬
him
ment must also be
has
is
There
behind
the
House
on
ate
the
Democrats
cariousness
of
its
jority.
hold
upon
to
reorganize
and take
they
have
which
the
to
much
of
the
control
than
it does
Demo¬
more
of the
their
of
than
own
For
instance,
trying
that
control
of
the
Mr.
ally
complete
control
shall and shall
in the
the
what
of
not be
taken
in
program
the
field
business. In the first
was
small
of
place, Mr.
candidly said that the
main
business
problems
of
small
Federal taxes and
were
lack of management. In the field
of
capital,
its
needs
capital,
genuine
were
for
merely
not
loans.
Consequently
concentrated
state
local
and
mittees.
local
also
They
to
would
assistance
up
com¬
committees,
were
capital.
setting
advisory
These
councils,
Mitchell
Mr.
upon
raise
provide
and
guidance
for promising small business.
Federal loans, if any, were to
purely
supplementary
credit
and
Mitchell
Mr.
funds.
put
never
indicated
he
to
While
it
so
on
was
hand, with its wide-
ness
racket out of Washington.
procedure, nothing can be
effectively
throttled,
and
no
be
can
barred from any
altogether
pending legis¬
lation.
circumstance
of
a
narrow
party majority, they would have
responsibility
without
to get the
Naturally
spokesmen
the
for
that
his
smalt busi¬
proposed
and
lative
business
program"
failed
stituted
in
place
of
velopment
local
and
state
fessional small business spokes¬
have
men
that
to believe
come
Mitchell's
career; In fact, they have taken
public credit therefore in some
alone slew Mr.
they
dispatches.
'
other hand,
the
On
the basic
applied
by Mr. Mitchell, was formulated
in the regulations of the Loan
Policy Board. Two of the mem¬
bers of this board are George M.
philosophy of
SBA,
as
Humphrey, the Secretary of the
Sinclair
and
Weeks,
the Secretary of Commerce.
third
is
member
The
Adminis¬
the
trator of SBA.
Those
who
are
averring that
Mr. Eisenhower disposed of Mr.
Mitchell
because
has
around to
come
policy
in
for
effect
small
down
vocated
by
easy
business,
has
policy
a
an
claiming
are
Eisenhower
President
the
his
thus
thrown
strongly
ad¬
Secretaries
of
Commerce
and
Reports
that this is not alto¬
are
gether the
the
Treasury.
B.
Relations—A
Barnes,
Administrator
of
it
he
SBA,
a
person
'
of
be
—20c.
Economic
of
of
for
October
stalt-Bankverein, Vienna, Aus¬
tria (also issue monthly report
on
economic
situation)—Paper,,
printed in German.
Justice George Shiras,
Jr.—George
Shiras, III—University of Pitts¬
burgh Press, Pittsburgh 13, Pa.
(cloth), $4.50.
The Future of Gold—C. F. M. Wil¬
liams, 36 West 40th Street, New-
Acting
quickly
have been needling Mr. Mitchell.
made
They have been telling him that
N.
View
Stocks
Y.,
$2.
in
Also
Future
Accumulation)
Area, $2—both reports for $3.
phasizing local responsibility.
even
though
million
he
available
had
for
only
primary job in their view should
be
to
disburse that
sum
just
About
$55
loans, his
as
clear
dicated
a
few
the
is
only
that
more
also
em¬
change
SBA
loans
but the basic
was
may
more
in¬
make
We Trade
quickly,
philosophy of SBA
RIVERSIDE
CEMENT
"B"
as
could
easily
fund
from
for
Adams
to
Carl Marks
the
Analysis Available
Co. Inc.
FOREIGN
SECURITIES
SPECIALISTS
LERNER & CO.
any
50
per¬
read
TEL:
BROAD STREET
HANOVER 2-0050
Democratic
Democratic
&
GOP
1930-32, to show how
effectively
Report
(Problems of control and Pro¬
in Austria)—Creditan-
duction
sub¬
who could actually
history
bibliography—Se¬
references, Industrial Re¬
Section, Princeton Uni¬
versity, Princeton, N. J.—Paper
Presi¬
Congress
Sherman
Im¬
lations
legis¬
of the
anyone
reward
the
for
lected
York,
case.
Wendell
Programs
provement of Plant-Community
loan
that Mr.
also
Company
Com¬
dent's program.
Almost
views.)
be
to
the
throttled
could
own
times this sum.
Mitchell
could
"Democratic
a
re¬
Congress and ask for more—
combination of Com¬
Rules
monopoly.
the "Chronicle's"
In the House, on the
hand, everything that the
a
and help to
the govern¬
planning first. In view of his
unexplained departure, the pro¬
professional
small
back
come
power.
President
project
perpetuate
foreign
bog down
moved, and emphasized his de¬
or
bluntly,
amendment
he could and
as
Treasury,
idea
open
House
directed
to
fol¬
was
up
House. In the Senate,
other
able
Mitchell
Mitchell's
Mr.
local
virtu¬
ex¬
lowing.
be
means
is
the
apparently large capacity to
Administration
line
Committee, which
the
be
the
Busi¬
pected to hew fairly closely
House gives control of the Rules
White House must learn is that
must
could
Senate.
its
compromise
Housh
effectively
more
throttle the President's program
and make up a legislative slate
suade
things
one
trick.
formal
control
can
of
as
Once the
Senate.
get
soon
the
turn
House
in the
they
House
as
majority
a
means
crats
the
control
over
with
In
definitely
very
Ad¬
as
Small
Administration, the Eisen¬
hower
two
members
mandate,
to consolidate his hold
upon the
national legislature.
the
leadership
raise
was
Mitchell
of
Mitchell
is
fast
for perhaps 10
Line
SBA
D.
House, on the
other hand, the Democratic
and needn't
worry about
One
ma¬
the
In
its central political
problem. It has acted as though
the President had a
*
chary
numerical
to
William
ness
unusual
definite
a
be
pre-
Presi¬
to
ministrator
of
have
action,
very
check-mate
to
Despite the abrupt resignation
attempting to organize the
Senate, taking over Committee
Chairmanships, etc., until they
mittee
Congress
most
of
such
ever
used
the
not until
the
of
subject
are
and
that
Senate
formal control. Sen¬
over
control
understood
differences
to
to
flect the "behind the scene" inter¬
pretation from the nation's Capital
not to cut his salary, J. C.!"
Mr.
taking
mittee
yet,
'
I TOLD you
Holds
Democrats
through
1952, had
^
tend
and may or may not coincide with
political
and
dous personal vote of confidence
the President got in
as
a
was
good
some
that
to
(This column is intended to
Formal Control
on
tration, basking in the tremen¬
recently, if
^
' X
Why Dems. Take Different
other
hap¬
^
release
will
whole
further
dent Hoover.
Slants
with
mental
'
days may
suggest is possible.
pened, and
adjust thereto, it
hopes. The Adminis¬
the
MfiH
forgotten—as
events of the last few
information
available
So wrapping up the proposal
for release of domestic informa¬
to
munist
the
can
■■ill
most, influential
ele¬
exposing the Com¬
conspiracy in govern¬
ments
freely
powers
/A*
certain
the
desirability of making
tion
route
the antipathy of
even
in
leniency
particular ally.
majority in Congress.
a
Perhaps
its
weapons
more
toward economy, which will get
ish of the Eisenhower Adminis¬
tration
learns what
has
still
that
take
States, and
atomic
p
"/
spending into the U. S. defense
budget,
"McCarthyism"
with the
t
foreign
the
with
looks
the
spies, Congress is not impressed
he
copper-rivet
horror
officialdom
of
British
toward convicted British atomic
,
to
view
United
and
expenditures,
is
monopoly
upon
local
So if the Democrats organized
the Senate under the foresee¬
This
not
In
to
—
well
as
atomic
which
rates
the
of
diminish
diminished.
insist
to
higher
afraid
cut
are
Democrats
The
they
as
the
groups
to
eager
At
plans
and
rate
history
sup¬
does
local
a
CQfiPOHHTtQW
to
tight character of the gov¬
ernmental
a
please conservative Republicans
the
contrary,
President
the
to
appear
its
legislation
on
the
mmexre
better
had
countries,
foreign
The outlook for favorable ac¬
52% corporation income
a
between
the
on
majority
straight report for
friendly
tion
forget it. The Treasury had bet¬
so
President would unseat them.
When,
x
the
pristine New Deal tariff policy,
wouldn't
waverers
if
example,
Randall
Then
back the Chief Executive.
even
for
Thus,
to
then:
Deal
had better forget about his plan
judgment of
House
and
Senate
the
President
has
of
members,
a
Fair
and
of excises. If the President is
Senate seats.
and
House
Deal
tion about atomic developments
sweezv
supported
Administrations.
any
January.
pends
New
have
brings in
Congress
As
pressure groups
which
such
as
its
and not
supporters,
merely with the
is that they have put
with
compromising
party
own
industry of atomic in¬
formation and
materials, with
legislation to release informa¬
control
•
NEW YORK 4, N. Y.
TELETYPE NY 1-971
►
Investment Securities
10 Post Office
Square, Boston 9, Mass.
Telephone
V
-
Teletype
HUbbard 2-1990
BS 69
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