The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
'*
'tn Vf
ESTABLISHED 1839
In 2 Sections
-
Section 1
■"*"
-
-.J.
* <
Volume 176
1952
Number 5168
1
-New York
7,*N, Y., Thursday, November 13,1952:
;
•
;;;
-
-/
Price 40 Gents
•-■•••
•
•
"
■
17
L
.
Copy
a
*"•
-
*
■■
t
is»
EDITORIAL
*
.
in
A: By CLAUDE L. BENNER
:
.
j On the surface at least: events in the political
Held moved rather rapidly
during the week fol-
Company, Wilmington, Del.
;;
.
A
Pointing out it is not too, soon fqt the country, to begin to
Truman seemed',
do some ^serious
thinking on post-mobilization readjust¬
tojgiyefthe President-elect and the;?;
ment, Mr. Benner warns government, in trying to help the
general public the impression that public? busi; transition,
may actually make it'worse.
Says we "have
jness was exceptionally urgent; at this time,: and beentraveling some dangerous, roads since
that prompt, not to
say hurried;-Cooperation befjclose of
World War II, and they do not lead to an economic para¬
tween him and the
incoming Administration was';
dise. Cites increase in public and
needed in order to avert serious difficulties.- Sim- ;
private debts as a danelect Roosevelt in the autumn of 1932
jected, but Mr; Eisenhower; has taken
attitude—and is
!
with J .this
remains to be
were
re¬
; ;
^?
seen.
;; expenditures keep rising..
Irrespective' of
ical units
f
are
until such time .* five? points higher;'
atomic
years
-
1 ?
will
energy may
be able
any
T
come—along with the sensational Sunday supplement
of H. G. Wells—ere*
'
?
i
for us a wonderfully exciting,
if improbable, world of the future.
Improbable, did I say? Today it's the
.
.
:
be
world
'
go
the
.
of
; science
as
ever
by
increasing
that
be
and
the economy A ;
Claude L. Benner
;
<,
\
-1
;
;
-
time
some
'?
Institute
CONVENTION
.
of
•.r
Real
during the
latter
.
without honor—he
<
find his
may
that, background and those
restrictions on the size of my crystal
ball, I still am going to attempt to
T. S.
prophesy the role that oil will play. A.
during the qiiarter-century that lies, ahead.
Petersen
half
of
in view of the record, that I
seem,
direction
of
can
would
It
fail only in the
understatement.
Perhaps I could, without
fear of failure, guess that the
incredibly versatile, hydro¬
carbon molecule within, the next 25
years will clothe us,
Continued
f.
*A,n address by Mr. Benner
w,. i952.
does modern
the future
toward
-
- While
no one knows, of
just exactly; when the volume of these expendi¬
tures is likely to
decline, it is estimated that the peak
reached
swiftly
us
■
course,
be
So
sweep
prophet is not only likely to
a
With
*
ernment orders for grmaments.
will
particular brand
prophecies fulfilled before they reach
print.
/. 'A'" ' /.A *
".A ;
may;'j
gov-
know that
you
this
'
w
long
rosy one so:
If any of you are
fans,
authors of
fiction.
move¬
-were this.year.;v
v 4 ;\
On the whole; the picture painted
a
fiction
of literature are hard-pressed to
keep
? fact from breathing down the neek
squeezed .much farther than
is supported
live in.
we
science
t^ey
ican
NSTA
old
things
ated
nationals
their; upward
j
and the novels
.
prices will have a tendency
likewise.
The Excess Profits'-
do
is
26
page
this
way
;
more—and it's
to
•
contihue
not
difficult* and real cooperation
on
Gross
to
Tax will be permitted to
expire
there is hope that profit margins
to those in power to make
Continued
the
j
i
economically with coal and oil energy, but !
supplement and not supplant present sources.
will
ment and
will? consent to-change any of its
programs on the basis of the voting.
the transition less
.
?
to compete
may
product,, that is the value of all goods
and services; created, may well in-"
creasev another • $1Q
billion.
Wages :
>
.
ways open
phys-
* ical. production) is 'estimated
thority or control over what: is to be done or
promised.. Doubtless the events of the political*
campaign will lead the Republican leaders to be
wary in all such matters—and it is certainly to
be doubted on the record that the Truman Ad¬
are
supply. Says within 20
.
in dollars; new heights
certain to be reached.: The Fed¬
to
There
;
petroleum, j Standard Oil executive forecasts
of petroleum-wrought j
energy/ Discusses question of maintenance of oil reserves, j
A and looks for refinement of secondary, recovery tech-1 j
? niques, as well as exploration, to open up new sources of -
or
eral Reserve Index number? of
incoming Administration
'
'
still greater impact from progress
volume is measured, whether in phys¬
requirements of such. a situation are, of i
course, matched by dangers to the Eisenhower V
regime which meanwhile, naturally, has no>au¬
or
A
•
...
are
The
ministration
By Ti S.. PETERSEN*
of
in advance of some sort
understanding as to what its position is to be
various matters..v. ;•■?::,v:
attitudes
•
Youngsters don't reatL Jules Verne
p^ranged i"
would .present difficulties
the program of the
is known and probably
on
;
'
;?;, ?v
program will accomplish
So far as any
dealings with
as
of
economic changes that
'lower business level.
?'
.
President, Standard Oil Co. (Cal.)
•
than
ment
-
different
a
foreign powers arc concerned, it is obvious that
anything more than a maintenance of status quo
ante
lista-prospective
; A j
?
.
;
'
"cooperating?'?
Precisely what the conferences
cordance
gerj .and-
'
'
lowing the election/ President
by President Hoover to President-; V
>
A*=V.,; /A A; -A?
jl"-.
A'
Pointing out no single physical.factor has played a great- (
;Aer and more important irole in recent economic develop¬
j : ? >;?
;
determined
ilar overtures
?
'
President, Continental American Life Insurance
Estate
at
on page
the Annual Banquet of
.A '
-A"v.,.
'
'
'
A
*A» address
•'
'■
!f;,
the; Amer¬
Fla., Nov.
Appraisers, Miami Beach*
;
.
28
by Mr. Petersen
American Petroleum Institute,
;
■
Continued
;
at the
32nd. Annual
on
A
»\
page
24
•
Mfeeting of the
Chicago,rIHi, Nov. 13, 1952.
ISSUE
OUT TODAY—Section Two of
today's "Chronicle" con¬
80-page Special Supplement devoted to the Annual Convention of the
NATIONAL SECURITY TRADERS ASSOCIATION
at MIAMI BEACH, FLA.
stitutes
DEALERS
an
Stale and
i
r
;
U« Sa Governmeiit,
A
V/
V
WESTERN
fc
''
A \
Slate and
?; ? V
Municipal'
'£rl" :Secnthm-0'^
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Direct Private
i
A
*
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MUNICIPAL
Wires
BANK & TRUST
'
COMPANY
14 Wall
..
Coast
Street, New York, N. Y.
Members of Principal
.
and
BOND DEPARTMENT
San
30 BROAD ST., N. Y.
Francisco
Los Angeles
•
Boston
•
•
Chicago
Bond
'
.
:
Bankers
to
the
Government
Kenya Colony and
Head
Office:
26,
Brokers and Dealers~
Branches
-
•
-
Net
Bishopsgate,
y.
■•? Bond Department
THE CHASE *
.j
and
10
Denver
Spokane
other Western
NATIONAL BANK
^
'
Cities
Members
New- York
New
York
-
Stock
In
Curb Exchange
1
r30 Broad St.
Tel.
-
;
Public Service Co.
80NDS & STOCKS
Securities
PREFERRED
New York 4
|
DlgV 4-7060^A*'Tele/NY 1-733
-
;
•
-
Exchanges
DEPARTMENT.?
Goodbody & Co.
;
Reserve
Capital
__£4,562,500
Capital-—;
£2,281,250
Fund____)
banking
•.
and
c
,
CANADIAN
£3,675,000
.
exchange
ESTABLISHED 1.891
MEMBERS NEW
YORK STOCK EXCH."
1
115 BROADWAY
-
NEW
YORK',
,
irahaupt &co.
GkPORATIOTI
40
.
'; ?
'
'
..
Members
'
and
i
CHICAGO-
-
^
New York Stock
other
ElxchangePlace, New York b.N.Y,
WOrth 4-6000
Teletype NY 1.712-3
.
WHlteh^l 4-81SI
Exchange
Principal Exchanges
111 Broadway, N. Y- 6
NORTH LA SALLE ST.
.
-
r
_
business.
also undertaken.
DoMcaox Securities
1r.
description- of
."^Trusteeships and Executorships J
.
Orders. Executed
Canadian
and Somali-
land Protectorate.
The Bank conducts, every
*
On
*
Paid-up
;
.
L New England
CANADIAN
U. S. Markets
Canadian
Or
Pakistan, Ceylon,
Kenya, Tanganyika,
Authorised
Exchange *
OF NEW YORK
'
•
;
Hardy & Co.
|
'*
India,
Burma, Aden,
Uganda, Zanzibar,
"
Members
in
i
CITY
SECURITIES
in
Uganda-,
,
London, E. C. 2
for Banks,
r
OR THi CITY
CANADIAN
•
{
'
•
r
1915
ESTABLISHED
Salt Lake City '
Los Angeles
■
of INDIA, LIMITED
BROKERAGE SERVICE
r
50 BROADWAY • NEW YORK
Dept. Teletype: NY 1-708
NATIONAL BANK
STOCK and BOND
*.
>
i
■Members of All Principal Exchanges
OF NEW YORK
•,.
Honolulu
.r
Coast
to
j. A. HOGLE & CO.
THE NATIONAL CITY BANK
Commodity
Security Exchanges
*
l
Direct Private Wires'
Co.
&
,
■
Chemical
Dean Witter
Municipal *'
<-
SECURITIES
•'
*
t
OIL & MINING
BONDS
^
'
*
AND
-<•
-
Hawaiian Securities
/
STATE
Pacific Coast &
'i
HAnover 2-3700
telephone:
;
i
'
-
-
-
i
Teletype NY 1-2708
Boston Telephone: Enterprise
4820?
vV
The Commercial and Financial Chronicle
2
Thursday, November 13-1952
;
(1818)
The
POSITION and
WE
IN
TRADE
for favoring
participate and give their reasons
Metal & Thermit
they to be regarded, as an
are
Central Vermont Public Service
lintinmJulvwondering about
the
Northern Indiana Public Service
p u
Pacific Power & Light
..
.
Miles
Common
A. Kimball
New York Hanseatic
vealed
Corporation
B
flew
Curb Exchange
earth
Teletype NY 1-583
Bill
and
Croissant
Albert
fighter planes that are now reach-
per
sensational
smashing
of
both speed and altitude records by
such a tremendous margin faces
Members
Exchange
Exchange
and the airplane
industry
with some new problems. For a
long time we heard a lot about
science
5 "
2-7815
the
much-feared
the
IIII11I1IUIIIIIIIIIIIIUIIIIIIIIIIIIIIIIIIII
Trading Markets
"sonic
wall"—
air-block
supposed
thought°mieht disintegrate
thought might disnitegiate
Alabama-Tennessee
°rBai/In
testflfaht
six
his
needle-nosed,
forty
zoomed
re-
thrm
Gas Co.
_
Co.
coiri
said
ho
he
hi0h
and
ana
speed
„,hpn
Then
tmn
the
make
you
ship
investor
future
A. M. Greenfield 5s 1954
>
control,
uener
J
interested
the
nf
nviatinn
"The sonic barrier isn't
Tbpnrptifallv
'day fly
Lehigh Valley RR.
-
Annuity 4^'s & 6's
Penna.-N. Y. Canal RR.
pregnant.
in
the
inHnstrv
Bridgemen's further remark:
was
Phila, & Trenton RR. Stock
miles
10,000
lick
can
we
the
a
another
fi
(h
,d
and
«nmp
hour
an
if
aero-dynamic
barrier. Heat is the problem now,
,
the
and
A"
to
Samuel K. Phillips & Co.
use
question
is, 'Can
we
system
p®
CTan
National
1856
surface
outer
250
.to
H. Hentz & Co.
degrees
would
of
an
on
airplane
Fahrenheit Alulose
10%
of
its
:fhfn
the
At
Members
Exchange
Curb
Exchange
Cotton
York
New
Exchange
Chicago
New
Board
of
^
Smvl
be
the
times
V
about
Trade
pounds
plane
field
ness
in
lesser
ies
"companies
t
this
other
N. Y. Cotton
Exchanges
more
a
$
CHICAGO
DETROIT
GENEVA,
.
,
^
than,
by
Jesuit
Y.
Dealers
Security
Assn.
New York 7
Tel. NY 1-1932
Resort Airlines
INCORPORATED
COMMON STOCK
tempera-
Bought—Sold—Quoted
Hghter
five
Analysis
vears
Request
Eise,e & Kin?' Libaire, Stout & Co.
Established lass
additional
in
Pacific
of
Company.
Airmotive
Pacific
on
Members of New York stock Exchange
division
this
,^tiv|
Broadway, New York 4, N. Y.
HAnover 2-6578
Air-
Company
d'Tn"
Mr-
divisions-
7oV
(2)
Oil
l
Corn-
v
*
Engine
• A
■
Overhaulu
j
to
single-place
carry
500
refrigeration
primarily
for
(3)
prescon-
trpl systems for high altitude air
craft;:,and. (4) Parts Distribution.
PAC: is the first and largest- disPAC
first and,'largest- dis
c
rUVVII
inc.,
W h i t n ey ^^nerama
engines and parts, and exclusive
distributor of Hamilton propellers
specially de-
dix products. \
Sn'A numoer oi otner cum
numbe?^^
llon#in§* A
Panies are active in
^
making, cool.irL^°
as yei aas
r
ThC? ^
required.
The
the
Here, for the lirst time, is the
complete investment analysis of this specvjevv.
,.
^ve^e^^diiSend
aPp™ximately, $20.7 ^ billion..:
manufaclure of t"e intricate, andr.- that the
valves
'
;
.
in
1 presen.ted
Perhaps only
^
'
vIvSCUp
company
Congress is based on an air. goal get a year's. subscription to over-,theof 143 wings, with a- 1953 budget counter securities review finciud-
£
1
.*
key
pirt0fllin
threc.dlmcnslonal mo.
tion PjCture process that is electrifying
New York audiences, is the subject of a
Fairchild in regions where it operates. add'
of
are
111 t
Xm iYM
& Aircraft, make coolings' an .extensive distributor of Ben-
turbines which
!"U,V1UUQ1
valves
vaives
bieffpst
•
U.
a few people know pions. subscribe to this monthly pocketS. Air Force is the size magazine read by thousands. Features
nppp«arv
necessary
in
business
^rhlngs, dividends and Prices^of hundreds
world
the
num.
num
^
,
¥aiv/"//oaiJ1'1T"
try
and
i:
*,
in
must
Th
,.
-d
be
completel
•*
'
n
-
n
in m nti r
of
of
the
little mate-
or
albou^man-
ufacturing activities. The
ins
public, as yet
at,0ut
the
tentialities
An
few
A
Ion
•
LVofl
T
.* T- ovo r 11 t»n
Gavif
invest-
Steel
on
a
10
scale
-
"••.mercisd airlines combined.
*
Obviously
N.Q.B.
v("Air!
j
.
INDUSTRIAL STOCK INDEX !
the beneficiaries .of this* huge
Program, for it is one of the few
illuminating
article
appear-
organizations
Comfort
to
the
r
with
finances
the
facilities
necessary
12-Year Performance of"
.
^ 35 Industrial Stocks [
to
-
\y-'
de-'v-a-5'(>-■»dous. amount
Pilot,"
field
of
temperature
scribes
in
detail
the
basic
.
re-
controls — controls quirements and' the importance business; now.*, being {'.contracted^
automatic, foi a pilot of the automatic devices*^ "which for 'bv the Armed Foreps
SupK'"
is too busy and the changes oT accomplish
fool-proof 'air-pres^-J - '^
altitude
i.e., pressure and tem- surization and air-conditioning of
Continued on page 27
—
.
j
*
National'Quotation Bureau t
that must be
'
FOLDER ON REQUEST *s'%;
of engine and airframe, overhaul
pressure
the
i
OVER-THE-COUNTER
PAC will be among"
UDV1ousiy, pal .will oe among-
have
journals
Jenkintown, Pa.
times'
bulk of the material.
technical
18 B,
Dept.
<grater than all the U. S. com-'
knows .little'Force" magazine, May, 1952.)
key positions and poof certain comnanieg1
SVBSCRIPTION TO—
iu
OVER-THE-COUNTER SECURITIES REVIEW
and
^'
It will pro-
vide maintenance for aircraft and
ing in "Western Aviation" for Oc- an(j
tnb^r
1951. entitled "rUving Aid Vand
S
V.A ^ ' x
hush" Du p°nt combined.
has appeared in any type of. equipment
operSional flights
U
?
;
"hush
the
work,
yEAR^
Jersey,- American Telephone &
Teleeranh
carried the
>
all
0,,+nmatiP
autoinatlcBecause
A
of supersonic, high altitude flying
has created virtually a new indus-
■'
,o\'
i
Overhaul;
munufdciure, piimamy ior pres
allthe,
*
(1)
Airframe
Manufacture
thpCO
combined. /
Division
ftratos
of
Cleai ly, then, the sudden advent
PITTSBURGH
SWITZERLAND
N.
Broadway
Tel. Dlgby 9-1550
of products engineered and made
.
in
?" Standard Propeller (a dmSJOn of United Aircraft) and the
of
equipment.
Exchange Bldg.
NEW YORK 4, N. Y.
150
next live yea s
p™* companies tl«h HamU- .tributor of Pratt
must
.
And
sneed
nn^inumand
90%
counteract this heat
research
Cotton Exchange
Orleans
three
would
Inc.
Exchange,
Commodity
Members
air-
of
ess
next
;
^
motive, the second in size of these
two companies, does more busi-
nature
sound, the temperature would ap-]
proach 565 degrees and the loss
!
Stock
Gersten & Frenkel
„
strength at that temperature.
York'
s
\
minum
-
%
Common
Old
simUa
controls
f^ed^TnUo
p
both- nf
chp
CObnnH
individual
maiviauai
the
of
temperature
New
5
go
the
York
Serial
Missouri Pacific
^Wmtta^moZsl'w"h
Pacific* Air-
California.
Southern
numerous
..
,
officials
T5
New
Missouri Pacific
require
will
changing
and
pressures
as
.
«
COrtlandt 7-6814
Established
Rgts.
Dlggest DUSiness . in tne , world of unlisted companies,. industry analyses,
todav..'t Presently,
with expendi- utility notes, mutual memos,
today.'. Presently, ,with expend-i- utility ^ notes, mutual . .memos, company
Advisory CommittL declared that b?r aS many„as 10C! ln each a1*" tures of $16.2 billion annually, it briefs, initial public offerings and Can$16.2 billion annually, it'.briefs, initial public offerings
Advisory Committee decjaied that
d aU of them must ■; betwill purchase more in dollar volSTiSS:
at twice the speed Of sound (i.e." pI
that paph nPrfnrrnV^111 PU1C'im5^ "Tu* 111 "Uli?r VUi% ice, easiest way to obtain broker's literathp
snped
alrpadv
rparhpd
hv
^
inai eacn periorms ume annually .than General ture on over-the-counter securities at no
direaay reacnea oy
pr0per function at the proper- Motors
Standard" Oil ' of
Npw cost.
~
*•'*■*.
,
Bridgenian) aerodynamic heating tjme an(j sequence of operations.
T - "^'4.
" - . 'T i'"
' X
TODAY —SEND YOUR $3 50 'FOR
could increase the
The
N. Y. Phone
375
&
Foote Mineral
f;
^elec
7
PH
Common
ftlT'aan'"human^ou"'Manv
go
impossibly bulky cool-
an
qvctpm'9"
lnf*
ing
Exchange
Pennsylvania Bldg., Philadelphia
Teletype
Dow Chemical
„reat
f
her
o
equipment
greater
even
m0llve t o r p o r a u o ii, ooin oi
problem
mipht
man
Corn oration
motive
higher and faster without having Inese
Stock
offices
tfarcha tempera- pany) is both the oldest and largPressurization and
largture controls. an<J he wiu discover est privately dwned organization
lumps
cont^S*
to
revelation .most
the
to
Pocono Hotels Units
Phila.-Bait.
branch
our
it and
noticeable '
isn t
The
Members
,
br^ns'
c
precision
especially AiResearch Corp. and Pacific Air-
You notice
.
only when
hard
narci
gets
.
.
ally, though, there's so xxxMwx
sky and so many things to do that
iimiiiimiiiiiuiimiiiiiiiiiiiiiiiimij
41/2's & 5's 1969
nniv
cnpynH
mistake.
a
LD 33
Units
^o
reac-
importance^
to
engaged""
not
4X7QC
was
ot speed.
high speed
Lynchburg, Va.
Leeds &;Lippincott
hp
he
conscious
Scott, Horner &
Mason, Inc.
Tele. LY 62
the
'sion
ment w 2uided missiles
the vaSt neW fieId of.supersonic
sie^once
wires
r Li! brrip?
iwr k
reached"at "about* 660 miles"per that there are only two companies in the .country
hour at 35,000 feet and over-that
are1 serYfe-and maintenance cf airtemperature sysiems.
iney are craft engines. It has four basic
Dan River Mills
Moore Handley Hardware
accurate
instant
Z U<>nS th#t aW seeking to share
3 neeessit3\
An investor
foot
!x
to perform
suitably protected
the
Mobile, Ala.
"
,
doubtLss r£(iiv.
sitive to its environment and must
with
n.?a'
„
pressurization
both human cargo and electronic devices.
A "brain," whether a human pilot
or electronic radio, is highly senbe
NY l-la57
cratt Ijuilt in the United Btatcs
and air-conditioning for
plane
a
a
madMast
summer" PitotBridfeman
Natural Gas Co.
Commonwealth Natural
the
at
Exchange
Orleans, La. ■ Birmingham, Akr.
Direct
o'nTe'arlv '^riet a"^
aircraft
with
self
HAnover 2-0700
.valves and temperature control
systems for a mere $300,000.
Present sales are already approximating an annual rate of $2 njil1,10'Vand m this manufacturing
division tne company is making
second concerns it-
and the
ment
Curb
St., New York 4, N. Y.
producing aircraft pressurization
climb at such
can
in a level where it is sixty
below zero. And, of course, they
can
come down
even faster!
Jet
II.
This
McDonnell & To.
REctor
1,000 mph.
be up
record
York
New
of
be found cn 90%
York Stock Exchange
25 Broad
the pressurized planes'cf American manufacture, and the com¬
pany's present production rate
will be materially increased as
the production of jet planes accelerates in., the next five years,
Envisioning the events above
described,
the management of
PAC in 1948 acquired a company
by
War
Tel.
Steiner,Rouse&Co.
beginning at —65
—
streaking along at 1,239 ing 50,000 feet elevation in four
mph. The old altitude record was minutes can dive at over 6 miles
72,394 feet, made in 1935, in an per minute.
Army balloon over Rapid City,
These
high speeds and high
S. D. Engine powered flights had altitudes have given birth to two
reached an altitude of approxi- new industries since World War ;
mately ten miles, as compared to n. The first of these manufaca
five mile ceiling during World tures
aircraft
electronic equip-
Since 1917
YORK
flights
speeds can leave the sizzling heat
of the earth and in one minute
former
hr.)
Rights & Scrip
NEW
&
Hentz
forma may
Planes which
doubled
most
Specialists in
Curb
to
al¬
(671 miles
York
H.
jt because his re-
Bridgeman turend his
plane to a 50-degree climb and
saw
his air-speed indicator open
79,494
speed
New
Quoted
Members New
elevation,
re-
feet above the
Broadway, New York 5
BROADWAY,
Bought—Sold
Co.-, New York City. (Page 27)
ket-ship from the bomb-bay of a
B-29 mother-ship at 40,000 feet
i d gemari
r
the
120
Partner,
Neumark,
degree cold—lasted only 11 to 16
minutes. After dropping his roc-
that
test-pilot
l'J20
Stock
cord
Daniel
retary
York
so
didn,t need
he
High in Stra¬
tosphere!"
Navy Sec¬
Central Public Utility
New
,
enough to cool a theatre of 3,000 high speed flying.
,
seats in order to keep him from
The remarkably compact and
bein8 roasted alive and to keep reliable gadgets made by Paci^
frQm turnjng soft. but flc Airmotive Comany of Call-
Per
Hour, 15 Miles
Puget Sound Power & Light
120
; 1
:
Pennsylvania Railroad—Arthur J.
Bridgeman's Douglas Skyrocket
Corporation
Airmotive
fS^flf^mnlYraUons of startlins?™t Dae£ headUnes" "PUot
headlines. Pilot
Michigan Gas & Electric
BArclay 7-S660
;
.
Members New
Pacific
& Power
Kansas Gas & Electric
Y.
Corporation—
(Page 2)
fast that a
pilot has no time to watch dials
and manipulate controls for it.
-
perature—come
Pasadena, Calif.
N.
Airmotive
Albert Croissant, Pasadena, Cal.
intended to be, nor
offer to sell the securities discussed.)
ALBERT CROISSANT
Associate Member
•ill,!1
v
Arkansas Missouri Power
Established
Pacific
(The articles contained in this forum are not
Stromberg Carlson, Pfd.
5Yz/52 &
Alabama &
Selections
Louisiana Securities
particular security.
a
Week's
Participants and
Their
each week, a different group of experts
and advisory field from all sections of the country
in the investment
Common
Iowa Electric Light
Forum
A continuous forum in which,
Dow Chemical
Rights &
This
Security I Like Best
•
f.-Tl
-
lncorp®rated•»'.,•<7,
46 Front Street
7
v
New York4;N.Y.
Number 5168
Volume 176
The Commercial and Financial Chronicle
...
Investment Bankers^ Role
(1819)
<*■
INDEX
llCHTEIMIIl
B. S.
In Finance
Articles and News
^
Companies
.Oil in Next
After
Partner, Paine, Webber, Jackson & Curtis
—-James J.
Investment
banker, in explaining function of investment bank¬
ing in supplying capital to sales finance companies, gives data
on growth and investment status of this
category of business
Describes
concerns.
and reveals
of
finance
markets is
on
one
of the
Recently I read with interest
of
a
book prepared
by the Commercial
Company on "The Role of
Credit
the
Sales
Finance
this
fact
the
Before
American
Economy."
am
not
to
crib
is
will
..
in
book.
All
you
are
that
-
11
m o r e
' f
aware
than
u
portance
y
I
of the
Minor
its
In
tures
financing
tails
of
some
respectable and
pages 11 to
In
soundness
be
of
record
the
and
in
can
While
matched.
continues
tion
financial
opinion not
dividends
continuous
is
tion
time
and
companies was to
a
responsible for the
and both date back
During this
suffered
in
two
period
a
are
of
so-called
a
in
depression in 1932.
We had bank
holidays;
we
off
standard;
and
period
year
under
went
the
certainly
*An
befor«
securities.
Again let,
offers.
fers
111,,
Nov.
Finance
7,,
1952.
latter
In addition
7
Outlook—Raymond Rodgers
Exchange
J.
Florida—Its
very
not
King
9
Industrial
Development
—McGregor Smith and Richard B. Roberts
The
Business
11
ferred
stocks
called.
were
As, We
After
into account stock divi¬
dends and split ups the common
stocks of both of these companies
are selling at prices well in excess
the
1929
price.
Details
are
common
in
company
its
1952—resulting
share
the
at
common
1930
becoming
present
sive,
Oct.
Our
the
for
on
a
year
of $3.48 per
Now
The
25
Registration
Security I Like Best
Washington
2
and
Drapers' Gardens, London,
land, c/q Edwards & Smith.
25
Spencer Trask & Co*
York Stock
Park
DANA
Place,
COMPANY, Publishers
New
York
N.
7,
"
REctor
HERBERT D.
Exchange
*
ST., NEW YORK 4, N. Y.
WILLIAM
2-9570
ary
TELEPHONE HAnover 2-4300
Albany
Boston
•,
Manchester, N. H.
• w
Private Wire to
.
LOS
—
*
* *,
Nashville
Chicago
>
•
•
TELETYPE N. Y. 1-5
•
Schenectady
.
•
Glens Falls
Every
' V '"
Thursday
(general
President
.
Other
news
and
Possessions,
'Chicago 3,^in.
4
135
in.
United
States,
Territories and
Union. $45.00
Pan-American
ad¬
South La Salle St.,
(Telephone: STate 3-0613):
Offices:
99
WALL
STREET
*
U.
NEW
8.
Members
of
per
of
year;
Canada,
$48.00
per
Other Countries, $52.00 per year.
1952
.state-and,city news, etc.).
)
LAMB0RN & CO., Inc.
YORK
5, N. Y.
Subscription Rates
vertising issue) and every Monday (com¬
plete statistical issue — market quotation
records, corporation news, bank clearings,
Worcester
CROWELL, WEEDON & CO.
ANGELES, CALIFORNIA '
Thursday, November 13,
*
second-class matter Febru¬
Subscriptions
Dominion
-■•'
as
1942, at the post office at New
N. Y., under the Act of March 8.
to 9576
SEIBERT,
Eng¬
1879.
SEIBERT, Editor & Publisher
DANA
C.,
25,
York,
Y.
**
•
E.
Copyright 1952 by William B. Dana
Company
Reentered
B.
Exchange PL, N. Y. 5
44
COMMERCIAL and
FINANCIAL CHRONICLE
WILLIAM
40
Teletype NY 1-1825 & NY 1-1826
28
1
The
specialized in
HA 2-0270
5
Says)
You
Published Twice Weekly
.
;
38
...
The State of Trade and Industry
Tomorrow's Markets (Walter Wliyte
20
Singer, Bean
& MACKIE, Inc.
23
Salesman's Corner
in
•
24
,,
Securities
on
071 %)Q,CJ€
41
Securities
equiv-
t
C07ltlTlU(Zd
20
Security Offerings
Utility Securities.-
Public
an
U.; S. Airlines
5
42
Railroad Securities
total of $79.17
annum
May
Reporter's Report
Prospective
1933.
each 1929 share,
Wilfred
Light
19
Our Reporter on Governments
1952, inclu¬
1,
Sulphur
Puget Sound Power &
.
8
Observations—A.
stock in each
common
During this period
paid
30
Notes
News About Banks and Bankers
were
Mexican Gulf
35
NSTA
The
Cinerama, Inc.
Bargeron____ 16
Mutual Funds
2.4
time.
Dividends
1929.
except
8
22
Indications of Current Business Activity
is therefore equiva¬
to
8
Recommendations
From Washington Ahead of the News—Carlisle
in
the
on
year
32
Einzig—"A British Proposal to Tax: Borrowing"_____
current market of 37 for the pres¬
ent
44
,
stock—20% in 1936
in
1929
21
Bookshelf...
Coming Events in Investment Field
as
Credit
common
shares
Cover
Canadian Securities
Company
stock sold at a high of
1929. Subsequently the
paid two stock dividends
100%
each
(Editorial)
Dealer-Broker Investment
Commercial
and
It
Business Man's
follows:
62%
See
Bank and Insurance Stocks
taking
•of
Regular Features
pre¬
Reg. U. S. Patent Office
-
10
Outlook—Anthony Gaubis
r
exchange of¬
accepted, the
Conference,
BROAD
8
__
Counter Trading in Inactive Securities
vs.
—Harold
common
hovJR
Stern Policeman
a
—Commissioner J. Howard Rossbach
were
Detroit
•
Security Traders Asso¬
Beach, Fla., includes the following articles:
6
SEC Is Not
Los Angeles
'
National
the
of
The Economic and Financial
For many-years we
25
Teletype NY 1-3370
Chicago
The Rebirth of Turnpikes—Jerome M. Fischer
one
paid
New
BO 9-5133
43
today's "Chronicle," devoted to the recent
Convention
ciation at Miami
stocks' of
then
was
Broadway, New York 6
Philadelphia
Fi¬
T.
Corporation
In the event
,
Members
61
43
MORE ARTICLES IN SECTION TWO
.
have
Incorporated
32
,
Direct Wires
the New York Stock Ex¬
were
average
the Ameri.can
J. F. Reilly & Co.
18
27
subsequently retired by be-ing paid off or through exchange
address
Chicago,
I.
in
delivered
Inflation
were
existed
ob¬
18
Life Companies Boost Securities Investments
lent to $88.80 for each share as it
com¬
on
National Bank Assets Up $5 Billion in Year.
of
long
me
Minot
C.
now
of preferred
of the
was
Mr.
companies
Corporation).
that the public recognition
by
stocks
con¬
conclusively the
general soundness of finance
serve
40-
sufficiently
is
sufficiently diversified
ditions to prove
pany
gold
this
17
M. Catharine
were
the worst
and
Newport Steel
'
Bank Resources Exceed $200 Billion
inactively traded "over-the-coun¬
cold
through the mad¬
1929
is
on
on
boom
dest
•
.
ml 4a
Brutre Advocates Conference
ter"). All of these preferred stocks
now
we
common
Finance
have
wars;
We went
war.
we
40 years
17
^
Post in Eisenhower's Cabinet
Well, Let's Go! (Boxed)..,
insurance
given in detail on
change at that time (the
in¬
40 years.
some
a
AyNeed for Savings Bank Expansion—Robert
•
SECTION TWO of
stock
finance
production
•
Annual
which
listed
large extent
automobile
in
crease
«
■ ■
—Alexander Wilson
issue of preferred stock of House¬
great
enormous
Lone Star Steel
System
the New York Stock Ex¬
hold
upon
the
automobile
of
growth
dependent
Certainly
i
'
De¬
mercial Investment Trust and
of
largely
sales.
*
insurance)
Commercial Credit Company, two
issues of preferred stocks of Com¬
principal in
the case of debt, is something of
which all of you can be proud.
To go back to your great serv¬
ice to our economy, mass produc¬
tion is an important factor in the
improvement in the standard of
living;' and in turn mass produc¬
meeting
prompt
'
Proposes Adlai Stevenson for
4
notes.
or
notes by
the
four issues
needed, the
safety of your securities, both as
to
on
nancial
educa¬
more
15
r___
Higher Earnings—William A. Lyon__
"v\*V
Trust
be
to
I
Functions of the Federal Reserve
change (Commercial Credit Com¬
pany and Commercial Investment
your
my
'
'
of subordinated
finance
two
listed
er¬
incredible
almost
been
has
T. McCormick....
and
N.t Y.; Savings Banks Turn to Stocks in Search for
V
17.
1929
but
roneously thought of
them
as
glorified pawnbrokers. Your prog¬
ress
are
were
people
many
or
companies
not quite
as
__
—J,\L. Robertson
com-
transactions.
holdings
debentures
early 20's, and not
yet erased from the minds of all
by
Sulphur
12
14
Nature
the result of pri¬
as
vate
the
considered
notes
or
to
investors, finance companies
the
Burns
u
^—Edward
some
companies had acquired the .entire
which has taken place.
Back in
instances
most
Sulphur
Pan American
ID
Election Returns and Your Financial Returns
„
finance ~ companies'
of
living
improved standard of
insurance
total of
Mexican Gulf
9
,
Expanding Economy—Ralph E. Davis._____
an
4-6551
issues of the subordinated deben¬
con¬
tribution
the
-
.
a
—Donald
WALL STREET, NEW YORK
Telephone: WHitehall
7
Supply of Institutional Investments
B. Woodward
Should Government Regulation Manage the Carriers?
—John S. Burchmore
his¬
some
subordinated debentures
country
and
in
.
A'check
409,000
of
99
6
Relating the News to Your Investments—Donald I. Rogers..
fi¬
junk
your
Obsolete Securities Dept.
Stand the Cold War?
{The Savings and Mortgage Picture—Wendell T.
you
,
panies held
industry
the growth
to
J.
of
believe
1
at the end of 1951
your
James
opinion
.
tion of
of the im¬
am
Si Economy
Natural Gas in
through the 1952, edi"Corporate Holdings; ofJ.nsurance-; Companies" reveals that $
of
even
»
.
for
happy times for you!
•
Business—Marcus Nadler__
G. Nourse___
Prospective
;
.
i
^
securities
the
interested
be
U.
—Edwin
for
Is the Dow-Jones Industrial Average Representative?
—Sam Glasser
and
dough
5
Outlook
Can the
complete.
my
means
6
*
torical and present day statistics.
con¬
tained
you
Our
4
Lougheed
_
slow
been
companies,
nance
or
give
for
market
going
I
4
of Canada—W. F.
HAPPY
TIME
The
the present state of .the capital
on
I
aphrase
par
what
has
is far from
Some Statistics
Companies in
Cobleigh
y
today
even
THE
3
__
"
important functions
most
of the investment banker,
Cover
Companies
Minot
Changing Economic Climate
AND COMPANY
Cover
Tlic New Administration—What It Will Do in Finance and
Business—A. Wilfred May
.
financing
company
of the "subordinated debentures." Finds giving
use
expert advice
methods
in Finance
The Roads to Roam—Ira U.
The
J.
Mobilization, What?—Claude L. Benner__
Investment Bankers' Role
Members, New York Stock Exchange
Page
Quarter-Century—T. S. Petersen
By JAMES J. MINOT*
Other
SUGAR
Id
year
Publications
Raw
—
Refined
—
Note—On
account of
the
oe
made in
New
fluctuations li
York funda.
Liquid
Exports—Imports—Futures
Bank and Quotation Record
Monthly
$30.00 per year. (Foreign postage extra.)'
tftp rate of. exchange, remittances for for¬
eign subscriptions and advertisements rnur
3
DIgby 4-2727
4
(1820)
The Commercial and Financial Chronicle
of concrete
The Roads to Roam
aie
Pointing
march
It
won't
of; good
of{
do
to
a
great deal
behind the wheel
from
you
get
122
of. the forthcoming 1953
h.p.
chrome-lined
chariots
Y
from
if
all
p ower
chase
Garden
-Massachusetts.
Total
..
Park-
State
(168 miles),
major
toll
miles
more
ear
•
h
a
H ig h
#
d.l miles.
e a
pression
of
oil•. company
~
lot of
,New
York item> $326
derful,
but
outline (1) the need for
highways, (2) the probability that they will be built whether
have
we
sion,
good times
and
(3)
some
you
may,
the
the
earnings
new
this
The
roads
roam
exceeded
racing™
over
Sketchy
it
as
is,
as
a
the
ways
investor share
an
to
depres-
or
of
roads
in
create,
also
may
be
roads to income.
*
The
Changing Economic
snares.
"
By \V. F. LOUGHHEED*
of two way program..
Y
a
Describing Canada's
,
sort
Although
.
Economist, The Canadian Bank of Commerce
f
due to:
"J'Y~
(1) expansion and
f
affairs; (3) adoption of V
of "full employment" along with wider
acceptance "
of welfare concepts; and
(4Xa^shift from the negative to more
positive role of government Mr: Lougheed stresses the
rapid increase in Canada's capital investment as well
as
Canada's
a
a
million for operations here, oil and gas sales
Simula logically expand a lot as
the new roads get built.
progress as
'
1
diversifications of industrial plants;
(2) a,more permanent poIiHcal and economic position in World
.
building money relatively small portion of current
it, $500 million for the earnings is derived from asphalt
!Pay* b,e ^°nI Ohio,; and
♦
in
highway topic.
this. takes
in;;__a
motor
■'
r
com-jj
your
I've
limit
speed
black Or white,
-Lumper of the ' p^nfs and Buicks, extend for 2,300 share in the road building is
*
Probably
are represented, Standard of California, Gulf Oil, Shell/ Texas, etc.?
Actually, buying oil: equities to*
jroads now collecting fees, or in
the,.a stage somewhere between blue-
is
hard top road,
us
Switching over to the investor
viewpoint, 'a.Way to participate in
black top type ro.ads ds Lie pur-
also
accelera-
tion
thousand
let
does
more
Oliver Corp.
mers,
gredient of bituminous rbads^ but
most of the bif* petroleum outfits
IN. J.
'
and
few
Just
it
Thursday, November 13,1952
The Investor's S.ake in Toll Roads
under-
now
experts.
Virginia Turnpike (88 miles) and
the $160 million toll road across
"
that
is
Commissioners
Standard of N. J: is probably the
largest supplier of the basic ih-
the
on
way,
the; only
for
or
has
a
Road
the West
way,
Detroit,
outlet
of
City to Key West—
Construction
been authorized
one
2Q0
Florida
miles.
other
have
building, even
pressed; and outlining a few roads to income from highwayslanted enterprises.
the
to
and
arteries; the probable
if other industries become de¬
of road
pointed to as evidence of condurability. 'I leave the argu-
ment
motor
more
cement equipment; road machinery makers like
Bucyrus-Erie, Baldwin Lima, Le
Tourneau, International Harvester,
Caterpillar Tractor, Allis Chal-
U. S. # 1 be-
Philadelphia
crete
"Expanding Your Income"
the need for
up
and
ivewark
iween
By IRA U. COBLEIGH
Author of
steadily reasserted, makes ready-mix
are
many roaas like
anu
...
-
so on. Well, two standar(j financial forms have been em-
program
increasing role in the world economic picture. Points out im¬
Originally,' state'roads
Concrete for roads has poured■
portance of Canada's foreign trade and cities Canada's ten-fold I"'
paid for by offering earnings into cement companies
into two miles
increase in government revenues
!of bonds pledging the full faith for decades, so y o u^ probably
increase in
U. Cobleifh
revenues'and outlays in last decade.
and
i
»oi road
is and' credit of the
issuing state, should look into this industry. The
murder.
Did
Since the turn of this
century
.Postwar Canada Is Different
They were called "highway" or largest unit here is Universal At- ^
you ever stop to think that if allj
j"road" bonds,and sometimes the las • Cement Co. whose stock is Canada has been emerging intor* I do
not believe it is
the 55 million motor vehicles in
fully (or
revenues from tolls (if
any) were entirely"
TT
'vwhat is now being called art eco—i_*
America started to hit the
roadj^0 be directly allocated to servic-... Corp—
at the same time, nobody—but no>ing the bonds; but in any event
Lehigh
body—could -move?
Fortunately, the state was
responsible for pay- has been a fine company for years,
h a 1$, century Canada of 1938-39. The
trucks are oft the road Sundays
geogf^hic
jyient of principal and interest, with sound progressive manager..
t h e r e. .have rharsfntprlc+ipc .nrith nf
characteristics—with of course tha
the
when; the holidrivers are in full gtate bonds
D
keep -interest * rates ment, and judicious expansion in .
6^
a n,y addition, of the Province of New-.
c^so - we never- see bow - bad down,but balloon state debt. More the right places.; Including a new
traffic couId really.be, but well
adjastJ"ents found land—are much' the same,'
and
recently, however, taking a page 1,400,000 barrel plant in ^Florida,
..changes but I
allt admit it's bad enough!
.venture to suggest that both
^from
bridge and tunnel enter- which began operating just this
mtbepatterns.the outlook and attitudes of our.
jHence, the clamor for a bumper prises, public and private, bonds year, Lehigh has 15 plants spread*
?£, iraae, . 01 -presentpopulation differ in many
crop of new roads. Highway ere- have been issued by specially ere- about the country with-a total anr
!lr?u
y* a
respects ftorn those of the populaation was, of course, expendable ated
.Turnpike Authorities;- and nual capacity of about 22.5 milliont-bn in
Pre-1939 Period; and'
during the war, what with gas ra- the bonds
(while still exempt barrels, and accounts for about,"
yv nai m
g
Uj krt0;w. thatfour economic climate
tions diluting
compression
of
.1,000
cars
-
.pioyed
| kvere usually
.
..
u
•
•
„
~
„
onurco
j
traffic, and correct
economic emphasis on arms production. Came 1946, and what hap-
pened?
A torrent of
started
new
vehicles
pouring out from
Detroit
into the shift-starved paws of the
populace. A road program planned
accommodate
to
and
million
45
cars
trucks
by 1960 proved woefully deficient.
Not only were
new roads a
high-octane necessity,
L«. a great deal of deferred mainUt^nce
old
on
rigueur.
became
ones
de
from
in
income
the state
taxes,
of
Federal,'and.. 10% of U.S.A.. output.. Dividends
have. been - paid 1 faithfully since
issuance) depend
for dough for interest and principal, solely on the tolls collected.
bankers and investors have taken
liking to turnpike revenue
carriers,
pon
on
26%
fie ribbons.
Co., with 12,000,000 barrels in anproduction capacity." Strong
To
,
long
suffering
Toll
Toll
vogue
Turnpike,
War
II
was
•started
and
before -World
earning
ately during it.
but
moder-
It struck real pay
f'1
♦
rifu
UP
aiainct li
frtSroJf toLiL0Pe<c?VQ^nnA
nf
m-iri
+ •
tf'
chn.iia
'
n?i?vis
*
"97
lY i*
taking
tains
thp
in
state
tion
thp
to
Pitt«hnrah
hitp
the
Moreover
the
built
a't
$480 000
a
was
nf
nut
central
lieve
-
new
neighbor
a
a
'
tho
nart
by its stockholders, paying dividends, except for 1933 and 1934,
in each year since 1916. Alpha
is the first letter in the Greek
we've alphabet, and among the foremost
Af
many
paying
at
so
states,
gasoline
much
a
taxes
t
My third cement entry is a more
*or
building and main- speculative one, a smaller comtainin& of r°ads, which often got pany but boasting a fine new plant,
badly diverted. We really have a Giant Portland Cement. Original
squawk coming; we should have plant was in Egypt, Pa. and the
fhese new pikes for free! But new unit in Harleyville, N. C. was
alas» we seem to be those for acquired in 1948. This is only 70
wbom the roads to11!
miles from a "new atomic energy
Turnpike cosL over $2 million
Th'pcp +\x/n unifc
a
are
stone base, and 4% inches
milp
■
'
-
b11 ess
wuxca.o
of bi-
lowed by 1,176,384 common sbares?
192m
sion arid for that time
an accom-
The
teristics of
vious.
dynamic
charac-
our economy are
ob-
What perhaps distinguishes
current economic
scene
the
from other
periods in the past is, first of all,
the expansion of industrial plant
the
and
widening industrial hori-
ZOn; secondly, I would note our
changed political and 1 economic
"from
tms argument.
York to Indiana.
-
A
m.
11
-
1-
J-Wmg
^aot of..them all, however,
i
)
is
now
a
seems
building
of
sf»ing ^
th
More ag-
'
■ -
cost
a^
any-
period
previous
in
than
1
running
rodder's delight
Berkshires to Buffalo.
will
£*1
our
a
nit?
any
Turnpike, and the
Highway built years ago
of^
.uunumg
TABLE
Ohio
Maturity
Virginia Turnpike 12-1-89
Turnpike
6-1-92
Oklahoma
New
that the
Gross
National
Produc-
Co.
\\r
h i
o
v»
.of
ber
..
,—
.77
7
7.
lieved possible in* our time.
These
Turnpike
Jersey Turnpike—
8-1-90
1-1-86
.
changes have made it necessary to
I
Rate %
3%
Price
revise
'
96
it
Yield %
3.85
3%
103
101
3.71
is
their
to
our
outlook
and
developments
and
economic
these
to
implications that I propose
cirect
attention.
omy
that
toral
to
was
sea.
The recent
war
an econ-
predominantly
pas-
of better balance
one
modern
our
world.
forestry and mining
come-
and
30%.
It
in '
Agriculture,
In-;
manufacturing .about
should
be
of agriculture.-. Today relative to
the thirties there are fewer farmers,
but
tion;
and
3.20
106
2.75
*An
'
contrib-
now
ute about 20% to the National
more acres
under cultiva-
•
,
'
productivity;
cash
from
farm
has increased
income has risen '
$750
by Mr* Lougheed to the
Purchasing Agents 27th Con¬
address
Canadian
ference, .Toronto,
•.
Can.,
noticeable
changes
and
that
em-
rei®nt years;.;;;
mere
is
iiiue. auuut
l
_There is little; doubt that
Oct. 24,
1952.
our
industrial and commercial expanS-Qn wkjck began during the war
years
esinCe
kas been largely
the
kigh and
^aj
3.12
33/4
,
metals, pulp and products of the
forest and the
who. ployment* opportunities have been
political widened, "if not high-lighted, in
nii&i
(Market quotations of November 7j 1952)
-Issue-
West
terms, steadily increased to $21
billion. This year it is estimated
us
_
i
Others, already in being, would
Hampshire
irduiuonai
a"d '°W maintenance costs JaeSer Machinery
from the
include, of course, the Wilbur
Cross-Merritt Parkway system in
Connecticut, the 118-mile New
Overseas
costly government
oZ ddel'Z tod^I p6rnid" higZay "buTldTng Y'lghtYndud'e
p^na!
oiuc,
By war's end our
productive output measured in
dollars had doubled. Between 1946
and 1951, production, in dollav
ten
study
1
tion Product.
^ f Ph?"
now,
than
to what
economic terminology, GtfOss Na-
er paving ...fraternity
apparent
more
i
JS /nil
-
-
over
nnknAirAvi
-25
million jn 1940 to an J
"the- estimated-$2.8 biilion this yeaT. ":
-
thing less
uD
«
.
New York S
to
1<no
pointed out,
position vis a vis other nations; however, that industrial developthirdly, the fairly widespread ac- . ment has not achieved its preceptance /of the doctrine of; "full dominant position at the expense
_
gates
Tn
transformed Canada from
role
toll
"
omDination WW;
!es' iarn^, mines ana
boom in the late twenties, and we was principally devoted to
agriwent through a very severe and culture and to the production and
debilitating
depression
in
the export of primary products—base
from
for
25 <7
Since 1900 we have participated tion will be in the neighborhood
in two world wars, we experi- of $22.75 billion.
enced a short-lived stock market
For many years our economy
_
"save
hroximatelv
A jf
®n
miL
or
Hon;, at present it is estimated at;
14,5 .millipn—an increase of ap«,
through to 1914 (or perhaps 1920) duced a pile Of goods and services,we had oi^ fi^t period
expaft-8 ,valued at some $5.7 billion j-t*1
a means
peded
'
rt-„v
nin
5
chanfc'e<1 greatly. :i.- ;
At the time war broke out in'
1939 Pur Canadian population was
the
to
..
.
,
.
®
+
resemblance
scene.
•
'
eYsted'ih tKe^eighborhood
black top. The Penn Together these plants can produce
^ke-is concrete; the N. J. Turn- about 3,300,000 barrels. ^ A 5% RFC employment"; fourth, a wider ac5^lke made wi^h 4 inches of porous loan of about $2.5 million 1? 10D ceptance of welfare concepts than
some
Jersev
little
existing
.
hou
'
...
bears
thirties.
cement creators.
for
gallon—taxes
Another . thing about these plant, and is strategically located
Handsome highways you may have to market in the Carolinas, Virhoi noticed—some are concrete and ginia and Tennessee and Georgia,
mile •whilp
The-New
In
been
years
S thZ
original
cost
cricket.
tv
n
fhp;
w. t. Lougnc«.a
no
Roaii«
like you and me, this atavistic
Roads
scheme of charging tolls on public
super-high- roads, going way back to the 19th
the Pennsylvania
century, doesn't seem exactly
Renrpsentativp
Representative
way
position,
of fact, Alpha has done very well
taxpayers
The pioneer of this
'
bonds ■ no pre- panying high degree of prosperity,
ferred, and only 586,956 common Beginning in 1946, we in Canada
shares paying $3.00 currently, sell- have embarked on another pro[ng on the N. Y. Stock Exchange gram of commercial and industrial
at 44 to yield about 7%. 1952 opexpansion, and this has been acerations would appear to justify companied by generally prosperpresent payment rate. As a matter ous conditions from coast to coast,
cask
Just glance at the sample secuand the fabulous rities listed in Table I and you'll
up;
highways projected for us in the get a good idea of the quite high
"Futurama," you may remember tax-exempt income available in
from the General Motors exhibit this
department. There'll be more
at the World's Fair, began to come issues like
these, so look for them,
life.
^
o
a
$1.20.
nual
High Tax-Exempt Yields
catch
to
currently paying
~
Another of the first four cement
cou-
and
to
and
high density traf- makers is Alpha Portland Cement
So America got down to
earth—highway grading that is—
started planning and paving
vfsa
rS
5!aS ;o
rxi
1936, including a 2-for-l split' in
1951. Balance sheet is a banker's
Because the Pennsylvania: Turn- dream-^-over $13 million
in net
pike has been so good an earner, working capital at the 1951 ve^rand the N. J. Turnpike exceeded end, no debt and only 1,901,560
by 250% its projected income/and shares of common (sole capitalitoted 84,000 cars in a single day, zation) selling on N.Y.S.E. around
a
'
,
end
of
the
sustained
by the
steady volume of capi-
investment, both
government.
In 1937,
Continued
war
private
new
on
and
invest-
page
36
Volume 176-
Number 5168
,.
The Commercial and Financial Chronicle
.
(1321)
"C
sound
)
Ci
,
fhe
'Electric
)
.
?.
v
Output
-
Commodity Price. Index
Food
Industry
I
Price Index'"*
Production
Auto
;
as
the V
was
about 8%
below
the all-time high point reached during that conflict.
.
slightly over one million, the smallest
total in seven years. The defense effort, according to one trade
authority, accounted for approximately 15% of toial output.
was
in lieu of across-the-board
reduction.
Plans
is
decontrol
of
expected to shape
civilian
like this:
up
requirements.
(2)
(1)
Industry
expressed**, that
First will come
will return to
for
time.
some
Even
when
these
controls:
dropped
are
industry will continue its pledge to meet all defense
v(4) There will be
first.
...
t industry people *tO" operate oh 'the""basis of
what's best
his
o
n
course
the'.sin-
Board
the; Right
reenter.'
c
of
C'V
■.
t
u
*
■
f* t'
,j»
'' *
"
*>
f
2
'*
-
'*
H
■*.
*
'J An .'ihtensified and
Korean
'«>
f
* err
ft-4*!
- • ■
w*
* • «
f •
■
-
+-
'
■
*r'
-
.contmuihg effort'will be made to end the
If- this is. successful/ price and wage- controls will
war,
hpfohab^:he allowed_to expire .on April
I
-
:
•
have
-
Wilson,
John
and * the
posts
the
to
Too
degree
for
of
socialism
measure's
a
vofed
in the fact of who has
it.
;
'
;
v
*
:
'
-
m
1
Dislodging the Vested Interests
Reserve
Surely
electorate-conscious
an
government with
so
much
President-elect's
of the
"'*"''*
the
to
/ of the faFm and Southern voters "depresssion^party" epithet:^ Thus,
;;shunnihg :the Democratic, column, although :
Eisenhower;1 will^ start
the
Administration
new*
-*
should
out
with
more power to have, his
with the voters than has the
way
< ^meht of
price and wage controls;- present-day Churchill, Who bately
wel- squeaked by the
electorate, softie
experiments, wito
similarity may well develop/be¬
"*"*
an end of the new.social and
WsMl.-povvCrIul wle aSRepublican
!
1.^,0-
^
tween the
grthertW ^iWseJvativB 116^resehtative
Republican A.dminlstra-
tion and the both-shoulder-water-
X Jtirai
Joseph W : Martin, Jr..
r
carrying of. the British Conserva¬
tive. government/since^ October,
-1951.
This week's London "Econ¬
-
omist" in its lead
states.
ijur
on
seems tp
Federal
funds
school
lies
chairmanship; and by such
as
living
?And he
building in the pooler
often,
as/'Norrrjan
Thomas* has said, the test of ihe
Mc-
J.
committed
states.
j--"..be able to effect a/sharp curtair-
o
r'
.contirCue' in'
;
The.untimely.death of Phil Murray, President of the CIO.and
was -to'
*.
'
Ay Wilfred May,
;. ynited. §t^l-_Worker?;jrf. America wiil.
jot^end the- rffortR for t
harmony, m the steesljndust^. Tliough Mr. Murray,
' | 'h-ff"
QIaii
;<
30, this, trade paper motes;
*"
,
be
the
at
of
cost
open
•
'*
high
senior citizens."
-
V v;
t
.
.
the
community having a vested in¬
designation of Joseph M. Dodge, terest
in the facets of inflation is
former ABA. head,, as his "Amfgoing to abstain from measures
bassador to the Truman Budget";
entailing too great or sudden dis¬
In " view
of
the, electorate's
location; it is not going to up(set
surprising overthrow of the "labor the apple -cart of "having iU so
vote," and with so large a segment good" to lay itself
fjriom';4"
the; road.
-*•"'/■*■'
/
E.
straws
S
/V/.'/No sharp cutting in,actual arms or defense items is expected;;';
Somer cuts'] will- ^be made byf tfiey will ,'bo" aimed at eliminating ;
4|'9n
Gn£
waste-as-fara spfosSible .without impairing the.
defemserprogratn.
?■ Q/\fi>|
"Right'' hand,'
•\"j
-■(
parity, and on social secu¬
"I would support and press
adoption
of
legislation de¬
signed to..lightep %._the burden! of
rity,
Clay, W. Randolph Burgess,
Cabinet
-
r->;thfcrmiflidlft^f^--*
fot:.^he
eountry., declares this--trade- authority /-\
i
the farmers of full rather than
for
Cloy, and W. Walter Williams, or
their
ideological equivalents, to
dabble
term.a/bit ta
I
"strongly by an' honest -dejsfce jof-steel
cius
Charles
;vgie.;or
no
decisions will be influenced
t
c
over
.
unseemly haste in ditching controls because
-of the election landslide.
(5} Historic use will be given more
weight-in placing steel-orders on the books.. In addition,-' such
,,
e
of
{
the steel
needs
r
r
vie-
dir
the
a
.
landslide
General's
visitor
pleasantly
so
90%
Augusta headquarters; and by the
prospective appointments of Lu-
al¬
tered
relationships as it girds
buyer's market by mid-1953. (3) Complete decontrol of military and atomic energy
requirements will be deterred
itself to meet
t
to
for
first
exigen¬
group
bounties which have
Maintains while stocks
Ike's
was-
-1
-
tory have
free market and re-establish customer
a
the
proportions of the
_
pressure
narcotisized the country. Remem¬
ber the President-elect's promise
are
timetable
operate
denly and completely do the job of
wiping off the New Deal-Fair Deal
-
public's expectations of deflation,
of good intrinsic Values and absence of
premium for '
inflation-hedge provide a comfortable market floor. 1
orderly decontrol of steel
party in. power
in a vacuum ob¬
any
cies, the Republicans cannot sud¬
presence
-
already being made in Washington to bring about
Developments post-election reas quickly as possible, states'"The /
inforce our conviction
previously
Iron Age," national metalworking weekly, the current week. The
-
as
livious of
.
decline because of
may
Steel
ingot production the past week dropped to 105.9%
(revised) of capacity from 107.3%, the record level reached .in the
preceding week.*
'
...
*
an
Dope
Socialist tendencies because of widespread vested interest in
inflation,: fear of electorate's subsequent reprisals, and inter¬
national tension; Mr.
May predicts new Administration will
locate slightly Right-of-Center.
Expects emphasis on reconstihition of tax
structure, with curtailment of present abuses;
;
Gradual Cure From the
a
Just
and Financial Chronicle"
Citing indications of swing to the Right, as make-up of new
Congress, likely Cabinet Appointments, .and landslide .over-whelming of labor bl&c vote; and bn other hand, of continued
past week moved slightly higher and continued to be noticeably "
above that of a year ago.' In fact, it approached the highest level *
Unemployment
Only
//. f
cannot
industrial production in
attained since the close of World War II. and
savings items recommended
by the Hoover Commission were
opposed by Republican as well as
Democratic lawmakers.
■
Business Failures
whole total
a
By A.* WILFRED MAY*'
v
Executive Editor, "Comrriercial
J
J)
.For the nation
■
It Will Do in Finance and Business
?
j'•„
Trade
!
■
/ J
Carloadings
...
Retail
State of Trade
and
)
Steel'Production
5
ing
the
article
apprais¬
Churchill
government's
;.i tees wilf in nearly. alMinstances"On the other handr ,thisuinforrecord,-concludes:/The first y'ear
be. controlled by'the,Old GuardJttanatel*
'Bolstered largely by automobile producers and their
suppliers,
^ "ot mfan ^ T ?of Conservative Government has
conversion market continues to be a strong factor in. steel i The Labor and; PubUe-.Welfare:'^11 exPect
transformation, to
,v
-
Z-'-'r.
j the
-
Committee-' will
be "headed
•elimination of
r.
Labor
and
..
reduction to
.
material
shortages cut auto: production
'week from that, of the
preceding week, but the industry still made
29% more cars than a year ago,
according toV'Ward's Automotive
Reports/'
•», ;
-
I
so
far is 3,630300 autos, down 24% from the
and othei/ fiscal issues
;4,703,100 assembled in the corresponding period last year.
wise
■*««'..
V. '^Ward's"
.also blamed "a liull following the end-of-October
i
.
--
-
■
;
_
v*-"- ■/_
*■
/
;
.
:
;
the- Finance
.
-;'
•
General Motors Corp.'s car-truck production volume last week
;
.fell 8%; Ford's degljned 7%, and independents showed about a 3% -
decrease;*
;
Steel
,;
;
,
r;.*,. "
Output Scheduled at Higher Level This Week
Increasing freedom-in the steel market is
:
v
:
the
reduc-
to stimulate
of
D. I MlHiken;
rT
•
ism> ih Principle^
ber that
l
York City, Nov. 14/1952;'-
®ea^"
^
who
.
many
»:
* ★ cf.
.
suits
/
last
•
:
Our
we must rememof the important
(
:
article
and " the
week' in
•<
on
outlook
this
..'
.
tho Election
which
and
re-
appeared
space.
,
.
..."
<
-r
■
real
solvent
built."
■
Here,
gree
be
:
.
?,
;
Socialism
—
;aK
an
be
can
^
;
in
as
England,
the
de¬
of international tension will
controlling,
all ; that
Continued
•
on
we
can
page
37
"
;
■,.///m* V
.
-
.
?..
•
;•
.
.
•
-
•
Ihts announcement.appears. J or
/
•
• •
■ 5.
.
f>
t
f
•,l
oj record..*
purposes
■_»
- •
-
buying and selling
i
.
;.
■J-,.'
The landslide
victory of General Eisenhower certainly will not
slow down the fade-out of controls/. If
anything it will hasten it,
continues this trade journal.
Meanwhile, steel capacity and production will continue; to grow and further lessen the
need for
controls.
the
a
t.
industry's capacity and production and the attainplateau in defense production. As a result, there should
be less and less
government interference in the
of steel, it adds/
•
»
are
which
economy—and
ternative to
steel
ment of a
Those
on
secure
or.
C
)
.
foundations
cre¬
efficiency,
q
to Ike-glambrizationl a
Sen-
initiative, to
massive increase in
a
productivity.;
^Although
did ft Ar» \
and
ate the incentives to
'eleetiofy result indicates (in
"O/Irfif in*V
.
New-
:
'
-
*Fron? an address before the New York:
Area Chapter pf. the Ameriiini Statistical
Association £ at
Remington' Rand
Hall"
r
good bet for early
a
Eugene
>
i
Committee
-r
.
•
chairmanship; of
-
;
1953; says "Steel," the weekly:magazine of ^metalworking, with
the election of General Eisenlmwer to the Presidency, an increase
in
'
': '*■;* /•'/
,*
ator
J
v
♦.
the
to
two-thirds
like-
are
enhanced: by. the scheduled;, the
'
accession
drive for strong volume" for the past week's drbp.1
a
mean
a
fairly successful
operation.
But V almost
enterprise
Such Utopian result
would
-
nothing has been done to restore
pre-N'ew Deal
wund.,.^^-^ civilian- pay-roID and
Jl
business,
tax tionin xhe>
ousmess,
reconstruction./in
reconstruction win
^
This year's total
Bndgesr.'-The .prospect;,for;
credit
rescue
bureaucracy,
proportions;
a,**"° £
i'
,,
-i.
.
to c its
as tar as. Small. Government
by
'
r
.
d
'»'*«<*
i
'
$76,750,000
.
..
>.r,
■
: *
/
'
»•'»
*
; :
;.r :
•- •. v
•;
. ■
■ - •>
^ • ifn
Formal admission that the steel
supply is improving was made f •
in the? Defense Production
Administration's latest "List of Basic ! '
•
r
.
:
:"
Materials and Alternates," states this trade
weekly. It takes the
"most critical" designation off cold-drawn carbon
bars, hot-rolled
carbon
They
they
bars
and
semifinished
steel,
plates
and
seamless
Reynolds Reduction Company
>.
v
wholly owned subsidiary of
;
-
Reynolds Metals Company
tubing,-.;
still the most difficult of all steel products to obtain but..
classed now as being only in short supply. The
only
ferous products remaining on the government's list
are
nickelbearing stainless steel, and steel castings and gray iron castings of'
A
I-
.
are
.
are
Bonds and Notes, due
than
more
3,000 pounds.
r
The heavy flow of steel from the mills is
taxing the supply of
railroad freight cars fc«* shipping it. Some
producers are resorting
*•
...
and
more
more
While
large
to trucks
January 1,1968
(Secured by First Mortgage)
"
to haul it.
carbon
bars, both hot-rolled and cold-finished, -■
are
among the scarcest
of steel products, there are
continuing
signs of improved supply in the second quarter of 1953 with much^ ?
of the heavy
demand stemming from defense needs declares
The
undersigned hare acted for the Company in arranging this financing privately.
"Steel."
The
American
Iron
and
Steel
Institute
announced
that
the
,
-
operating rate of steel companies having 93% of the
steelmaking ;
capacity for the entire industry will be at an average of
106.4% of ?.
capacity for the week beginning Nov. 10, 1952, equivalent to
2,209,-
<
>
'
••
v ?
-
?
r
•
-
-
*
-
;
:
*
•
*
'
'
Continued
on page
33.
/
«»
\
1
Dillon, Read & Co. Inc.
#
;
>.
**
"*•
.
-
,
•
'
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t
*r
;
""
/
'
-
%.
•
'■
*
*
jSovember 13, 1952
'
i
»
—
.
■
•
I
,
»
800 tens of ingots and steel for castings.; In the week
starting Nov. ;
3, fhe rate was 105.9% (revised) of capacity and aetual
output-
I
'
*
* *
%
*
„
•
*
•
;
-
:
_
:
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Ln
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Reynolds & Co.
f
"
f
The Commercial and Financial Chronicle
6
...
Thursday, November 13,1952
(1822)
to play
bound
The Outlook for Business
By MARCUS
reduction in
NADLER*
business
the
in
pattern
from that
experienced after all other major
serious,
more
tures
different
entirely
was
in
situation
the
however,
War II
States after World
latter
becomes
case,
The his¬
States
toric
pattern
ample
supply of civilian goods and at the
same time being able to meet all
previously had
been a period
inflation
of
followed
by
a
of de¬
and,
period
flation
the
after
downward
a
d
j
u
re-
stmenc
was
com¬
pleted,
a
con¬
siderable
ex¬
last¬
pansion
ing
Marcus Nadler
War II,
for
sev¬
eral years. Fol¬
lowing World
however, the boom, with
the minor exception of the setback
in
1949,
has
continued
for
a
Xonger period of time than had
been generally anticipated.
It is,
of
that the interna¬
true
course,
tional
political situation and the
necessity
imposed
on
the
free
world to spend
huge amounts for
national security have contributed
to maintaining this boom. In spite
of this development, however, the
question remains whether the old
position
the
fense short of
it
oil
prosperity
present
remain
be
that
a
high
at
Aevel during
the next six to nine
months
then
and
cline. Beyond
ple
who
tion
as
willing to
the
to
business
and
willingness
the
;of
outlook
This
predict
is
opin¬
express
business
pattern.
to
future
-rarige
de¬
a
that very few peo¬
studied the situa¬
have
are
ions
witness
the
un¬
long-
justified because
serious
international
po¬
litical uncertainties which, as past
experience has shown, have a tre¬
mendous impact on the economy
:<of the
country.
^ The business outlook, and how
•it will affect the petroleum indus¬
try
of
as
seen
the moment,
subject
course,
and,
revision
to
if
unforeseen event should take
some
place,
be briefly summarized
may
follows:
as
"
at
(1)
The
business
tained
present
activity
for
high
will
several
momentum
is
level of
be main¬
months.
The
great that prac¬
so
tically nothing can stop it. Mili¬
tary and capital expenditures will
be
in
large.
the
The disposable income
hands
creasing.
ful,
the
are
consumers
is
period
are
of
i,™
is
bound
to
when the tran¬
come
sition from the sellers' to the buy¬
be
is in
market
ers'
moderate
a
tion,
will
or
one,
be
time.
Predictions
particularly
ous,
throughout
based
on
forces
in
the
view
feel
in
in
of
the
great, and will play an
role in housing, in farm
and in other fields.
that
1954,
is
1953
the
or
This
the
it
per¬
likely to
not
serious in character
be
last
nor
conclusion
is
following considera¬
V
tions:
The economy of the
(1)
coun¬
try is dynamic.
The population is
increasing at
greater
a
rate than
expected in the '30's, and the
was
standard of
ber
of
living of
been
num¬
people has increased
siderably.
con¬
inventions
New
manifold,
values
new
large
a
readjustment
and
increasing output and sales.
(2)
The sellers' market is rap¬
idly coming to an end and, before
forces,
the
one
have
considering
In
also
must
the financial position
business
and
in¬
of
dividuals is sound,
and there is a
huge backlog of liquid savings at
the disposal of the people.
has there been
substantial
lation,
increase
in
the
popu¬
but ; considerable
graphical
shifts
place from
one
have
geo¬
also
taken
part of the
the other, with
try to
a
coun¬
resultant
a
favorable impact on the construc¬
tion of roads, homes, utilities, and
other public works. Moreover, the
trend
toward
from
away
suburban
and
this
decentralization
cities
the
will
too
and
still
areas
the
continues,
affect
business
activity in general and the oil in¬
dustry in particular.
(3)
Great
changes
have
taken
place in the field of credit and
capital. Bank failures such as oc¬
curred in
a
previous depressions
thing of the past.
be
said
homes
about
The
farms.
and
of
the
Because
confronting the free
conclusively the com¬
thesis that the capital¬
collapse,
bound to
is
and
decaying
rapidly
is
system
careful
the in¬
position of
attention must be paid to
economic
ternational
the
States.
United
same may
"low
But in the purely physical sense,
a
more
or
cost
the
a
any:
creditor of the world. To date
efforts
the
ratio
ten
pe-
would
perhaps.not the most
suggestive way to
But this is
significant
or
Instead of saying
state
the
issue.
"Can
the
economy
;
a
year.
let
Then
talking
is
ten
Edwin G. Nourse
What
would
be
inquire:
stand -what ten
more
years of this kind of cold
war involves?"
Will farmers and
industrialists, merchants and tax¬
the
'/Will
the
period of time
are
stand the cold
•war?".I would suggest we
us
that
say
the
practi¬
be
to
were
under
if
And
cally cut in half during the next
years, the danger of collapse
seem
quite remote.
less
payers
slower
a
fair estimate of the strength
people
stand
voters
and
of economic
rate
the
progress
* or living standards which is enWell, tailed by ".this degree of military
of the
been "economy during that time?
have
which
strain.
physical
tension
cracking
not
are
lion
years.
had
We
fore.
$35 to $40 bil¬
control,
country became the leading
nobody
made
during this
from
us
better entertained
period than ever be¬
and
housed,
pre¬
j^efinife'
about
various
there can be little question that
the nation as a whole has been
better fed, better clothed,, better
paredness over
over
which
this
be
of'
state
latest instance of
as
man on
definition
— —
J
would
we
circumstances
of
Because
'gross national product is now run- , build-up or arms race or calculaning about $340 billion a year, and tion of the risk which we- have
consider- competent estimates are that we to meet? Even admitting that the^
.financed :wou!d be able' to turn out some-,conditions^of ■ life - are not really ,;
eliminate the dollar gap
to
have not been successful. Exports
States to a
from United
been
have
extent
able
thing like $425 billion to $450 bil-. austere (pretty soft according to
lion a year by 1960 or 1962. Put-'the standards of most countries),
porary measures
ting these two figures together will our people in their business
A
rrpriitnr must
mnke
it cos- shows the military component of relations and in their political caciblo fo,
the debtor not onlv to the econonW under cold war con"
Pities refuse to accept them?
renav
his debt
but also to con- ditions aS averaging about 10%.
„ there were a real resistance
tinue^ to hnv in tbh creditor coun- 0r' ln 0ther words> the drarn movement and it followed polititho
miict
which this level of military pre- cal lines of expression, this would
try; otherwise the creditor must paredness would put on the ci_ m£an that the peopie ;vould com_
make
only, tern-,
as
abioad ai d/oi
be willin0 to invest
to
loans' which
considered
be
can
and
grants
through
ana
loans
giants
to
debtor countries. If one is a real"
are
foreclosures
consumer
win the cold war and ,'riodthat would
world is to
istic
Not only
into
States.
United
the
munistic
(2)
future, one
account the
the
take
real problem
in the
American
says
•.
;*
the totem pole," Dr. Nourse
crucial question is whether the people will stand what
; 10 more years of this kind of cold war involves.
making the
Mv
international economic position
In
of
"deal" between Truman and John Lewis
*
Citing apparent
bear such strain.
un-
*
ones.
debtedness,
something
unless
However,
to disprove
spite of the sharp in¬
public debt and the
steep rise in private in¬
that economy can
asserts
If one is going to give a reasonable answer to the question: "Can
foreseen' should
occur,
the the U. S: Economy Stand the Cold
"downs" will not be very pro- War?" he must first define what
nounced, nor will the period of ;we. mean by
readjustment last very long,
f'
"c ° I d war."
marked
be
creating
are
drop from
soon
necessity is bound to
by ups and downs.
of
economy
Administration^eeoi^imst,'estnnatmgiimlitary drain
to^8%'engross national product,
Former top
will
straight line upward. A dynamic
crease
rather
prices, ?y
r* v
not
imply that
will continue on
business activity
a
-
*.
confidence. .This
does
however,
"
Fresidentfs .UottiiciUof-" Economic -Advisers
;
forward to
look
can
with
future
destroying old
and
while
By EDWIN G. NOURSE*
Former Chairman
aforeoutlined" '
the
on
economy,
confident
in
Based
•
♦
Stand the Cold Wai?
although it may un¬
business,
jLl.-.-v"
•
JjCOnOIftlY
■
ofMri-
the disposal
be
important
prevail
readjustment, when
sometime
haps in
the
||16 'I
dergo changes, will continue to
However,
analysis of the known
an
downward
comes
ing power at
TT
.1
#f-'"
dividuals. The role of government
world.
operating
can
one
will
hazard¬
great uncertainties which
*.
of business ,ad-..
and unemloyment and :
old
age
do not now reduce so
drastically as before the purchas- >„
serious in
are
United States fully realize what is
at stake, viz., the survival of the
system of private enterprise and
the freedom of the individual at
industry too will have its ups and home as well as abroad.
in
than
greater
is
today
people-in the
overcome if the
heated by fuel oil, but also chemical research will accelerate the
"se of oil as an important, raw
material. As with the rest of the
economy of the country, the oil
justment,
longer period
a
The
tmde
wit¬
was
more
character and last
of
as
and
previous periods
1949 and of short dura¬
in
nessed
full swing,
a
indnstrv
ecoLmlesturftyot fhfindU
a
is in¬
plenti¬
high, and the softindustries have overcome
wages
goods
of
Employment
as
question which arises
is whether the readjustment which
of opin¬
to
seems
will
country
•
ihe
nn
real
on
business
that,
vidual
The
based
at
saying
conadded
he
should
Tn
/a\
will
forces
operate in the future.
thi nUound social changes wlilh
i/w tlkmDlacein thl country
df.Hn j
nast rierade
whTcHre
hU„nf L
nnwerftil Iriflii-
whole.
ly and, if not, whether a serious
downward readjustment in the not
ion
the
of
dynamic
tinue to
industry will share in the
long.
consensus
war.
without
goes
very
general
major
a
During this immediate pe¬
(4)
riod
pattern has been abolished entire¬
The
These
serves
an
requirements for national de¬
the
kinds
demand
favorable
the
of having both
very
distant future may not take place.
in
will assure a considerable
from
depreciation
refor
machinery and
all
of
labor-saving ^devices,
years,
expendi¬
but, even
the United
wars.
ir,
ma-
equipment. The rising depreciation, because of 'the
huge
investment in plant and
equipment and the higher cost of
equipment during the past few
military
today
acquisition of new
constant
will be increased;
the
as
ch inery and
with confidence.
The
en-
low a
cost as is humanly possible. The
attempt to reduce costs means the
at
operate
to
deavor
high level of business maintained
for several months, but with sellers* market rapidly coming to
end. Holds unanswered question is whether transition to buy¬
ers' market will be moderate or intense, but that, considering
the various factors in situation, one can look forward to future
Dr. Nadler foresees present
TJnited
will
management
stances,
^
cannot
money wages
envisaged. Under these circum-
be
York University
Professor of Finance, New
careful consideration is the grant- downs; but, as experience of the
ing of certain tax advantages to past has shown, even a sharp deAmerican exporters of capital, cline in business activity—as was
particularly as regards direct in- the case in 1938—does not lead to
vestments. Development of eco- any significant reduction in the
nomically retarded areas will lead consumption of gasoline,
not only to an increase in the
The international economic sitinternational trade of the world, uation is, however, of the utmost
but also to an-, increase in the importance to the oil industry,
standard of living of the people, The industry has made huge in¬
which is the best method of fight- vestments abroad, and has con¬
ing communism.
V
! '
tributed a great deal to the develSo far as the oil industry is con- opment of economically retarded
cerned, the outlook is bright. The areas. It has, therefore, a great
demand for petroleum and petro- stake not only in maintaining inleum products will continue to ternational political stability, but
rise, although perhaps at a slower also in assisting the economic and
rate. Not only will there be more financial comeback of the rest of
cars on the roads of the world; the free world and the restoration
not only will more and more of currency convertibility on curdiesel engines be used, more farm rent account. Difficult as the inequipment bought, more homes ternational problem is, it can be
much more im-
a
portant role in the future than in
the past. Wages are high, and a
itcon?luslolJ
?!e YnA
of
its
open
,
gates
foreign goods
into direct com¬
to
viijarl
age
working
economy
at
pel the government to abandon or
rea-
capacity would aver-
sonabiy
about 10%
curtail
for the decade or
the
of
program
rearma-
ment 0f ourselves and our allies.
would in that period run j down, if resistance expressed itself in
from about 14%
|
to 8%.
the business
or
market area, we
would see it as stubborn strikes,
with bank credit is at a minimum,
seems
evident that the economy as bitter resistance, to cost absorpmany months are over, the buy¬
petition with American produc¬
and there is no danger of a force¬
is able to stand
the strain of a tion, or as withdrawal .of crops.
ers' market will re-assert itself
tion
and
American labor. It is,
ful
reduction
in
the volume
of
14%
sacrifice
for
the
military This would
produce a general
with full force in all lines.
Be¬
however, of the utmost importance AL/0
business
situation
that
would
loans, and hence of deposits, which
cause of the increased productive
in order to win the cold war that e
or '
are
sabotage the full economic effort,
Speculation
which may
come
Now,
as
we
look around us, it
,
purchasing
the
capacity
of the country and in¬
creasing competition from abroad
in the domestic
•
as
well
as
been
for
a
great many years.
(3)
The international political
situation will exercise an influ¬
ence
tures.
on
total
If the tension
stretchout of
gram
military
may
our
expendi¬
is-eased, the
armaments pro¬
be extended again.
If,
•Summary of address by Dr. Nadler
-at
the Accounting Session of
the 32nd
Annual Meeting of the American Petro¬
leum
Institute,
Chicago, 111., Nov. 11,
The
(4)
which
savings
used
are
of
to
people
the
finance
the
in the
foreign markets, business will be
more
keenly competitive than it
has
power.
development of industry have be¬
increasingly institutional in
come
character.
the
bulk
was
ings,
of
in
private
the
'20s,
investment
financed from individual
at present such funds
primarily
as
Whereas
from
institutions
sav¬
come
such
insurance
funds,
companies, pension
etc. The accumulation and
investment of the
savings by such
institutional
investors
less
than
volatile
in
are
the
dollar
will
gap
once
cause,
make
version
be eliminated be¬
this
achieved,;-it
is
on
current account
of
private investors.
(5) The factor of obsolescence is
In
,
,
...
,
fact»
,
11
den
cold
Qf the
war
4.^^^
L^t u^ ?ut the matter in terms
™os1l
til, mI-tlG^ clltl
^
onrfSnp ArfSdn
^
^botion that they had so so^d
authority that "We never had it 0L,r economic problems and pro¬
so good." Personally,. I think the vlded such built-in stabilizers that
financial underpinnings and the there is no. possibility of u harm-
in terms of actual secrifices for
To
achieve
this
the military build - up at the
must find ways and means to m- tightest point between
1950 and
crease the flow of American capitoday. And yet even in that petal to foreign countries, particu- riod, we have been told on high
currencies
leading
of the world,
objective, one
larly to the underdeveloped areas
of the world. The recent action of
the
government
certain
A
m e r
i
guaranteeing
in
c a n
investments
much
case
that would minimize production
and thus minimize the actual bur-
"We Never Had It So Good"
T
Probably amounted
of the to several percent more than this
possible the free con-
abroad
against
confiscation
transfer difficulties
ward.
A
is
a
and
step for-
possibility which merits
probable
permanence
prosperity need
*A
talk
by
Dr.
Associate membership
of
that fuj recession, I think the
case
is
close scrutiny-
by no means that reassuring. The
Nourse before the basic conditions necessary to get
of the New School,
New York City, Nov. 9,
1952.
..
.
.
,
,
,
,
continuously workable terms of
[Volume 176
Number 5168
.
Chronicle
The Commercial and Financial
..
trade
among
producers, savers,
and spenders have not been faced
and met.
Collusion
the Economy
vs.
revised from
was
11.43% away from the old divisor made since
low of 9.85
a
in. January, 1930, to 15.74 in
years ahead
we have to consider
August, 1934, and back to 15.1
-The deal arranged between Mr.
another and more serious outcome ^ March, 1939. Since the latter
Truman and
Mr. Lewis
at
the 0f this
way of dealing with the
date, when United Aircraft reWhite House just two weeks ago
COsts of the cold war. It would be Placed
Nash Kelvinator, and.
breaks
the
whole ; destabilizing
more illuminating to call it colluAmerican Tel & Tel was subprocess loose again.-The final outsion against the economy. There is stituted
for International Busicome of that episode promises to
a
possibility, which for some has nes Machines, there has been no
be a capitulation to Mr. Lewis'
already become a grim reality, change in the composition of the
claim that "his boys" don't have
that the worm will turn.
Con- r^J industrial average which now
to bear any part of the burden of
sumer resistance causes the marthe following: Allied Chemithe cold war.
Then Mr. Moses'
ket to begin to
dry up and to cal,", American Can, American
position seems to be that his op- threaten the downward
spiral of' Smelt,- American Tel' & Tel,
erators cannot or will not, out of
disemployment.
7 American
Tobacco,
Bethlehem
that degree of prosperity which
This line of analysis gives us an;Steel,
Chrysler, Corn Products,
they have been enjoying, "ab- answer to the problem which con- Du Pont, Eastman Kodak, Gensorb" anv oart of this burden
If fronts
the
new
Administration jral Electric, Goodyear, General
the OPS
accents
this nronocd
which is much less optimistic than Motors General Foods Interna;
accepts.this proposi- that with whkh j began. It sug_ tionai Harvester, International
on
also, the consumer is to be
gests, in effect, that an economy Nickel, Johns Manville
Loews
the low man on the totem
pole, which in terms of physical re- Inc., National Distillers National
-It
is
sometimes
of trving
of trying
wav
W
said
that
«n«c
pass
to
o
sinCe
gut
cold war may not have the
thp wir»
the buck
in
sources
of
cold
against
the
is
is
the
consumer."
selt defeating.
self-defeating
consequence
lose
as
Hard
won
For
For
what
and
the
ment
We
stand
Aircraft
that
cold
a
ance-
are
afso
paid in wooden nickels."
jn
of
absence
the
strain
ment
an
plied-to the present average, however,, the gain is not one point,
How
arma-
is
be
b.
divisor
the
is
which
San Antonio, Texas
let
at
70,
and
overwhelm-
are
say
is
.that the
split
Beets
now
we
14.
Now
selling
stock
3-for-l.
Under
circumstances,
in
five
our
would get
five,
our
amount
Dec.
1951, total
31,
the
to
stock
or-
new
average,
62, and dividing by
average
would
new
12.40
14.
versus
actually took place.
almost 74%. For the
To
in
was
Sugar, Ameri-
the
average
for
of
.
>
From the start of 1952 to the.
point
so far
this year in.
May
the industrial
index lost
low
abou't
aggregate
the
5%
value
The average rose,
on]
May low levei to
thus far, this year
from the
93%
point!
the high
while
dollar value
total
the
en-
8 3%
nexed
the-
occasions
in the
average
berf"aSe.c]^fdeftical with that
Z
*
If v-lnaHon
to
°
that all that
the
? 7A
j
be deduced from
can
is
foregoing
statistics
sufficient
that
available to prove—
are
disprove—anything.
or
In
the
summation,
conclusion
crete
only
that
con-^.
be? *
can
drawn is that the index does exaggerate the net results of a day's
fluctuations.
While
rise
that
appear
other
many
cisms will
the
Dow
In-
Jones
minds
the
concerned
poignantly
wiil
"where" it
the
valid critiit does*
and wane,
Average is here to stay,,
of men
being more-
dustrial
over
stay,
W. W< Sims Joins
Reynolds in Chicago
period
same
value
i
the total value of all listed secusplit,
the following adjustment rities on the New York Stock
takes
place.
First we compute Exchange rose from
approxithe percentage amount that the mately
$64,200,000,000 to over
aggregate
of the average has $116 000 000 000 an enhancement
follows:
as
by five,
be
stock, 9'ex-split," would sell for
$4 per share. Totaling the stocks
"weight"
American
divide
result would
a
chances
the
us
12
dinary
day's fluctuations, but holds, despite criticisms, the
Dow Jones average is here to stay, "the minds of men
being
more
poignantly concerned over 'where' it will stay."
and
is
the
what
of the whole market? To those
who.have held the many lagging,
and even declining, groups such
as the airlines, beverages, department stores, movies, rail equipments, textiles and tobaccos, to
say nothing of hundreds of lower
prices miscellaneous issues, the
answer is a stentorian no!
Employing an
obvious yardstrick,
however, these results are disclosed. Since June, 1949, the average has climbed from around 161
to a high in 1952, of 280, a gain of
selling at 10, 12, 14} 16, and
share respectively.
To
at an average we would
merely total their market values,
Mr. Glasser gives history of changes in the Dow Jones indus¬
trial average and the method of computing the
divisor, which
fixes the "average." Concludes the index exaggerates the net
list
disap-
Reflect the Market,
per
and
finally
the
to
Further censure is aimed at the
average with the pointed query
do the 30 stocks sufficiently refleet- the character and breadth
arrive
By SAM GLASSER
and
therefore, is
solace
some
computed
stocks
Average Representative?
continued
but
Do the Selected Stocks
-
good query at this point. To
a
$18
September,
1916,
the
broadened to 20 stocks,
Gf
with
let us assume
that
the
average is composed of but five
Is the Dow Jones Indusftri
nature
occurred,
customer who learns
Westing- from his broker that the market
bteel,
form,
Ask
a
brokerage house employee, or even a boardroom customer, what the market is doing
reality
in
30 points divided by 6.16, which
equals a rise of 4.87. Each day's
reduce the matter to its simplest
:
results of
has
as
Jersey
How Divisor Is Computed
true
dimensions,
these
of
computation -the index would
show- a plus mark of "1.00" more
commonly called "one point." Ap-
today it stands at 6.16.
^ that in fact is true, it
would probably have proved
U.
,
$109,500,000,000, and at the end
of March, 1952, the valuation had
risen 3V2 billion or about 3.3%.
The DJ Industrial
average
on
both dates was almost unchanged
at around 269.50.
average
gained one
point, under a simple arithmetical
Numerous splits that the client's stock had only
stock dividends have neces- advanced five-eighths. The fracsitated 25-changes since 1939, and tionai rise was exactly in line
human forbear-
their
New
On
industrial
revisions
many
war
and
of
allow-
that
N. Y. Stock Exchange issues were
bou.se Electric, Woolworth. The had soared four points, referring
* ' '
,
divisor, however, has under-gone to the averages of course, but Rentage change
.
their economic intelli-
gence
As
advances
strains
the
puts upon
picturesquely puts
wage
be able to
not of itself
m
fluctuations. It is readily discernible that if >every stock in the
pSf net ^.in or loss
Oil
so
commenting upon. From it stems
Viewing the shorter and more
much of the criticism as to the recent market movements, the
average's true portrayal of a day's following results are in evidence,
Texas Co. Union Carbide United pointed
practices that will enable it
so.
The economy in terms of
the leadership of top executives
of labor> business> and govern-:
gain
we
Standard
1949,
of five, and arrive at the new ances for the validity of this
figure of 4.43.. Perhaps there is gain must be considered. Adjustan easier method to effect these ing for the added listings, one
revisions but the principle re- would still find that the indusmains the same.
trial average satisfactorily mirToday's divisor of 6.16 is worth rored this major swing,
£°ebuck> ^ndard Oil of Calif., magnified five fold. This should
re-
institutions
of
terms
1^^°^
to do
time
time,
a
a
workers.
or
Walter Reuther
it:
But
inflation.
is
consumers
businessmen
as
collusion
is
is all of us, so this proc-
consumer
ess
strain
war
ten
could meet the strain of
sources
this
looking
are
we
7
(1823)
" t
'<•
(Special
to
The
Financial
CHICAGO,
111.
'
'
n
,
,
—
Chronicle)
William W.
„ull<im
.
,
vv%
'
kims "as become associated wia
Reynolds & Co., 39 South La Salio
Street. Mr. Sims has recently been
TJX k sswswariss sTstrtxasrs«n rr-* v* •ssr
new additions to the New York thereto was an officer of Sills,
"it's
up
point,
or
down
fifty
cents,"
case
a
it's
the
as
may
be,
"it's"
the
re-
f erred
t
meaning
Dow
o
the
Jones
is
the most popular and util-
Glasser
ized
,
index, of
Jate
miliar"
Union.
was
«7u-?i a ge.'
While
Sam
public Iron,1 &. Steel,1: Studebaker,U
Company,; U. S. Rubber;'
U. S. Steel, Utah Coppei%. West-%
inghouse Electric, and Western ;
Texas
Industrial
it
Smelting, American Sugar, Amer- to-62, this would amount
ican Tel & Tel, Anaconda Copper, Uoss
of
11.43%.
We • now
Baldwin Loco, Central Leather,%... <
General Electric;^ Goodrich,., Re-
the
"fa-
The
divisor,
surmised,
T"■
as
lifted .to 20. '
.;
This
to
a
announcement is
Exchange
Stock
take
1928, 19 changes
stock
dividends
divisor,
were
nine
and
average
took
neither
an
The
On Oct.
Minton & Co.
any
.
.
of these securities.
NEW ISSUE
$20,000,000
International Minerals 8i Chemical
howver, remained at 20.
1, 1928, the number of is-
industrial
been
offer to sell nor a solicitation of an offer to buy
offering is made only by the Prospectus.
made in*
splits or *
place.;. The
have
.
From September,: 1916, to Oct.
the
list
average has sues was raised to 30, and the
rhetorically
and
widely divisor, which was changed for the
Corporation
„
.
criticized
of
the
of
tion
being non-indicative
as
trend
the
well
as
as
level
true
distor-
a
of
security
nH
'
■
.
.
To
and
trial
its
A1
better
ture
understand
status
average,
.
the
DJ
pic-
indus-
brief •history
a
inception
the
of
d
a n
of
subsequence
might be of assistance.
U
Ilistory
Averages
;
,.
steel
Cotton
Oil,
Gas,
National
U.
S.
U.
Tennessee Coal
Leather Preferred
S.
Rubber.
computed
basis
totalling
value
the
The
on
arithmetical
average
straight
a
of
merely
of the stocks
dividing by 12.
Almost
S.
eral
took
Rubber
in
S.
late
Rubber
many
in
the
sub-
the
place
1896,
list,
of
and
replaced Gen-
Electric in
peared in
Gas.
occurred
Mail
U.
,
Due
July 1, 1952
July 1, 1977
,
Convertible on or
were:
New
Jersey, Chrysler,
Electric, General Motors,
General
Railway Signal, Goodrjc.b> International Harvestor, In-
American,
1898, which reap1899 instead of Laclede
Swaps
and
Paramount,
Corporation,
Standard
Jersey,
December 31, 1967
prior to
Price 100% and accrued interest
.
Steel.
reswaps
of
tnis
Postum,
Sears
Oil
Roe-
of
securities m
only
two
substitutions
but
stock
dividends
a
nine
occurred
cut
in
event
took
splits
stocks
seven
time the
meaning
White, Weld & Co.
the
which
divisor
happened,
changes.
There
From
average
22
changes in the
from 1929 to 1939, and
that decade the divisor
were
Blyth & Co., Inc.
The First Boston
Eastman, Dillon 8i Co.
or
Oct- 1928. to the end of 1929. the
divisor dwindled from 16.67 to
10.47.
during
compliance with the securities, laws of such State.
Corp., Texas Gulf
Union Carbide,
U.
S.
Victor
place
each
^legally offer these
be obtained in any State 111 which this announcement
of the underwriters, including the undersigned, as may
may
circulated from only such
New
Talking
Machine,
Westinghcuse Electric, Woolworth, and Wright Aero. Through
1929
Copies of the Prospectus
is
Texas
Sulphur,
necessitated
immediately
stitutions
U.
Lead,
American,
Iron,
then
,
Mach Trucks, Nash Motors, North
American
Laclede
Pacific
OA
of
buck,
and
>
ternaticnal Nickel of New Jersey,
was
Sugar, American ToChicago Gas, Distilling &
Feeding, General Electric,
was
Dated
Can,
Smelting,
American
Sugar, American
Tobacco
B,
Atlantic Refining, Bethlehem
Radio
and
3.65% Subordinated Debentures
to
American
bacco,
&
1928
The first 30 stocks used
Allied Chemical, American
American
North
10,
first compiled
—
Cattle
Sept.
revised to 16.67.
was
r™
on
1896, and consisted of 12
in May,
stocks
DJ
of
]2.7,
time
General
•
The average
first
Glore, Forgan & Co.
Harriman
Ripley & Co.
Corporation
Hornblower & Weeks
Incorporated
Kidder, Peabody & Co.
Merrill Lynch, Pierce, Fenner & Beane
Stone & Webster Securities
November 13. 1952
Corporation
•
Smith, Barney & Co.
Union Securities Corporation
(1824)
!
Kaiser
Dealer-Broker Investment
send interested parties
to
Missouri-Kansas-Texas Railroad
• • >
- -
•
-
'
'
A.Pidgeon Partner
*
In DeWitt Conklin
Co., 50 Broadway, New York 4,
Riverside
Cement
Co.— Analysis
Industry—Lerner &
Service—Booklet
Tiger Line, Inc., Lockheed Air Terminal, Bur-
Freight Way to Lower Costs and Better
—The
Flying
bank 8,
been
Libaire, Stout &
York
DeWitt Conk¬
and review of the Cement
lin.
Grande
and Transfer Tax Rates
Federal and State Stock Original Issue
—
Booklet
—
Street, New York 7, N. Y.
Texas
Industry—Analysis—H.
Fiber
Glass
Hentz
Co., 60 Beaver
&
61
74
way,
Co.,
Trinity Place. New York 6, N. Y.
National
:
Y.v.;;.
Y
..
Y-
:
Real Estate Issues—Reports—Amott, Baker &
-
;•
Memorandum
—
Short
Co;—Bulletin—Dreyfus & Co., 50 Broadway, New'
&
Y.:
Stores—Memorandum—Sills, Fairman & Harris,
-
the Rainbow Division
Corporation—Special report—Loewi
&. Co., 225 East. Mason Street,; Milwaukee, * Wis.'
!
•
;:
first World War. ;
•/>
;;
:
•
during the
Y - f: ! / ;
Organization'
Conk¬
Park Hay: <
Y"!Y\
formed in 1948 by Mr.
lin and Tt
.
>;
'
.
SlepbeflSORWith
C.S. Ashmun Co.
/
(Special
&
Bros.
Co., 120 Broad-
Chronicle)
Financial
The
to
Stephenson Wells has become as¬
Com-
sociated with C. ,S» Ashmun
a map
SECURITY TRADERS ASSOCIATION OF NEW YORK
B.
Motter
&
pany,
;
Y Y
\
1953:
'
National \ Soo-Line
/
I■ 1
I Company, Chicago. 11
following candidates haye been nominated to hold office for the
year
First
-
Building; Mr. Wells was. formerly
an officer
of Mullaney, Wells &
The Seeurrty Traders Association of New York announces the
United States—Foreign De¬
Manufacturers Trust Company, 55 Broad Street,
New York 15, N. Y. • : : • -.; YY:..;
•'. ' ;: •
Incorporated—Bulletin—O.
*
"
of the -t;
partment,
•AMI
-
Conklin
DeWitt f
was
standard time variations in the
:Xi
Artillery Regiment of
150th Field
Street, Chicago 4, 111.
Wisconsin Public Service
Co.* Earlier he was a Vice-Pres¬
Poor's Publishing Co.
He served as a Captain in the
Co. Incorporated,
'.y- ard Time in New York City; also included is
•
Pidgeon
A.
Ashley
ident of
209 South La Salle
Chart—Showing time differences in over 100 coun- :
tries throughout the world as compared with Eastern Stand-,
•
invest¬
banking
Y.
World Time
V
to
partner
firm of Tobey
New York 5, N. Y.
way,
.
Bonds—Bulletin—Sutro
Term
W.
Co.
prior
a
ment
Y 150 Broadway, New York 38, N. Y.
-
E.
&
in the
Transit—Bulletin—Ira Haupt & Co., Ill Broad- '
New York 6, N. Y.
Wall Street, New York
1
'
5, N.
—
a
46
of
Clucas
Victory—List of selected
du Pont & Co.;
stocks—Francis I.
'
Corp.
invest-,
banking
firm
,
Beneficiaries of Republican
Possible
.
Witt Conklin Or¬
13-year period—
Front Street, New
over
Inc.,
Bureau,
Quotation
York 4, New York.
•
,
performance
market
the
ment
that
White's Auto
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
and
of
and
York 4, N.
Over-the-Counter Index—Folder showing an up-to-date com¬
yield
D epartment
—
Straus,
Ward Baking
v
Atomic Age—Bulletin—Troster, Singer &
the
for
Metals
Corporation—Bulletin—de
Transmission
Third Avenue
Hutton & Company,
Broadway, New York 6, N. Y.
Supplementary bulletin
McDowell, 135 South La Salle Street, Chicago 3, 111.
Eastern
Blosser &
Street, New York 4, N. Y.
Investment Tax Planning—Survey—E. F.
—
ganization, 100 Broadway, New York 5, N. Y.
50 Church
Transfer Company,
and
Registrar
previous¬
Underwriting
Hill
Co., 621 South Spring Street, Los Angeles 14, Cal..
Aircraft
Temco
Pidgeon
ly head of the
N. Y.
Richards &
Western.
r
Mr.
was
Telecomputing Corporation
Rio
Also available is a bulletin on Denver &
6, N. Y.
by
N. Y.
Railway—Analysis—Cohu & Co., 1 Wall Street, New
York 5,
Electronics—Discussion—Goodbody & Co., 115 Broadway, New
general
a
an¬
nounced
Mass.
Southern
Calif.
as
stockholder relations counsel, has
10 Post Office Square, Boston 9,
Co.,
A.
partner of
DeWitt Conklin Organization,
the
'
Air
Ashley
of
admission
Pidgeon
N. Y.
King,
Airlines—Analysis—Eisele &
Resort
the following litercrture:
The
-
Company—Analysis—Vilas &
Hickey, 49 Wall Street, New York 5,
will he pleased
firms mentioned
understood that the
is
Calif.
Co.—Memorandum—Pacific Northwest Co.,.
Exchange Building, Seattle 4, Wash.
•J 1 : ;'•» \
Missouri Kansas Texas Railroad Co.—Memorandum—Reynolds
& Co., 120 Broadway, New York 5, N. Y.
Long Bell Lumber
-
Recommendations & Literature
It
Corp.—Memorandum—FeweL & Co.,~ 453 South
Steel
Spring Street, Los Angfeles 13,
■
Financial Chronicle.. .Thursday, November 13,1952
The Commercial and
>
<■
8
>. •
•
,
u
....
.
Wakton, Hoffman Display
r
500V
Associates,
J Fifth Avenue,' New! York '36, NYy.- YYY YY;1 V; ^ Y/l 7V.Y■
-
»
Arrow-Hart
&
Hegeman
Electric—Memorandum—Barnes, Bo-
Y./dfeU & Goodwin, 257 Chyrch Street, New Haven
Also available
'-
memoranda
are
10, Conn.
Collins Co., Emhart Manu-
on
;facturing Co., Marlin Rockwell Corp., North & Judd Manufacturing Co., Torrington Co., and Veeder-Root, Inc.-
inc. Y 7
Number 22 in \a' series ' of tdis^lay^-portrayihgthe work of cbm-jJY panies listed on the - major stock
jY exchanges, the exhibit ^highlights?
Y;";
'~-
&
-
Co., 135 South La Salle Street, Chicago 3, 111. Y
Britalta
Limited—Analysis—Burns Bros. & Com¬
44 King Street, West, Toronto, Ont., Canada.
Central Oklahoma Oil Corp.—Details—Israel &
New York 6, N. Y.
way,
Central
Peck
:Y
,
Petroleums
pany,
7 : 30 diversified
John J.
Meyers,
Jr.
George
Jonn
V. Hunt
curities
6. l*rencii
Christiana
Securities
Eugene V. Flood
•
Cinerama—Analyzed in the current issue
year's
—
"Over-the-Counter Dividend
Over-the-Counter
of
"Over-the-Counter
subscription,
plus
a
copy
of
Jenkintown, Pa.
ing
Analysis—James
Smelting
Richardson
Winnipeg,
East,
Man.,
Toronto, Ont., Canada.
&
Canada
of
Canada
Ltd
*V
173
Portage
Royal
Bank
Steel
Corporation
—
Bulletin
—
Company
El Paso Electric Power
111
"/■
'
.
^
'V
General
Aniline
chell &
&
'J
*
Film
*"
*
* '
*
'
*
'
'
' **' " .1
Corporation—Analysis—Remer
•
')
The
to
OMAHA, Neb.—Paul E. Yeaman
Alfred
Krumholz
F.
Tisch
Y
•.
associated
Inc.
*T'
—
Seasoned Markets
Shepard Niles Crane & Hoist
$1.00 Dividend declared 11/28—12/10
waking $2.00 for the
Available
at 20
—
year
10% yield
Trotter, Singer & Co;
Members
74
N
Y
Security Dealers Association
Trinity Pla ce, New York 6, N. Y.
with
Investment
.
-
*
COMING
Allyn and Com- ;'
Y
•<
"•
.
'- K
Secretary—Alfred F. Tisch; Fitzgerald & Company, Inc.
EVENTS
Y
^
7
&
'
Leone,v Leone & Pollack; John -F. McLaughlin, McLaughlin, Reuss
&
Co.
:
"
-
j
Investment
In
Directors (Two Year Term): Richard M. BarnesjYA. M: KidderCo.; Thomas Greenberg,/C: E. Unterberg & Co.;; George VY
».
■
>
■
Trustees of Gratuity Fund !(Two Year Term): Bernard^.
Con-
Ion, P. F. Fox & Co.; Bernard Weissman, Siegel & Co.
National
Committeemen:
Samuel
Magid, Hill;-Thompson &
Co., Inc.: John-D. Ohlandt, Jr.; J. Arthur Warner & Co., Incorpo¬
rated; Stanley L. Roggenburg, Roggenburg & Co.
National Committeemen Alternates: James P.
Cleaver, Good-
body & Co.; Edwin J. Markham, Wertheim & Co.; Barney Nieman,
Carl Marks & Co., Inc.; John J.
O'Kane, Jr., John J. O'Kane, Jr.
Co.; Walter F. Saunders, The Dominion Securities Corporation.
&
Nominating
Committee
elected):
Jules Bean. Singer, Bean & Mackie, Inc.; Joseph C. Eagan, Frank
C. Masterson & Co.; Walter L. Filkins, Troster, Singer & Co.; Wil¬
liam Frankel, J. F. Reilly & Co., Incorporated; James E. Gavin,
YWalston, Hoffman & Goodwin; E. Michael Growney,^ Joseph McManus & Co.; Charles M. Kaiser, Grady, Gerwald & Co., Inc.; Jo¬
seph
M.
Kelly,
-
(Four
(4)
members
J. Arthur Warner &
Y
.'
Co.,
5
to
V
Field
.
V
*•••-.
*
; Nov. 19, 1952 (New York City)
Association
Suggestion
^
Service Corporation of Denver.
Co.Y;,;:.7;-'
Vice-President—George V. Hunt, Starkweather & Co* u.;
Treasurer—Nathah^^ A. Krumholz, Siegel & Co.'
V
Retail
•
;
*
-
Mit-
;
!
'
** **'*•*
Rietzel, Inc., 208 South La Salle Street,
Chicago 4, 111.
A.
Second Vice-President—John S. French, A. C.
pany,
.
& Co
•
•
President—John J. Meyers; Jr., Gordon Graves &
First
Brochure
Company—Analysis—Ira Haupt
years.
*'
f
Financial, Chronicle) ;
(Special
is
Nathan
Gartley & Associates.
v; Y-'YY"
Broadway, New York 6, N. Y.
-
Y V-
Avenue,'
Building
describing- processing of
transparent films—The Dobeckmun Company,
Cleveland, 1, O.
—-
inyestment. business
the
i
!
—
Inc., 68 William Street, New York 5, N. Y.
Dobeckmun
/
Investment Service Adds
■
Detroit
on
?
i'.vi
Sons,
and
in
been
t
Company
known
for the past 25
".
•
&
Mr. Flood was
the Coast having
heart attack.
a
.well
Distillers,
Tidewater Associated Oil, and Union
Bag & Paper Corp.
Mining
Knowlton
Calif., passed away Nov. 9 follow-?
,:
Consolidated Edison Co. of New York—Data—Abraham
& Co
120 Broadway, New York 5, N. Y.
In the same bulletin are
data on Federated Department
Stores, National
Consolidated
Flood, President of
& Co., Oakland,
V.
Eugene
Frank
Champions"—$3.50—Dept. 18-B,
Securities Review,
transportation.
try and
Company—Analysis—Francis I. du Pont
Review"
FVnd se¬
fields of medicine,
the
—
1 Wall Street, New York 5, N. Y.
Securities
in
agriculture, textiles, home, indus¬
Corn.
Memorandum
Link, Gorman,
Co., 208 South La Salle Street, Chicago 4, 111.
—
products typifying
operations of Chemical
Co., Ill Broad¬
A
Public Utility
&
& Co.,
panites of Chemical Fund;
r
|j v
Black, Sivalls & Bryson, Incorporated—Analysis—F. S. Yantis
be
Incorporated; Wilbur
Continued on.page 43,
of
13tock
'
Exchange
Firms annual meeting and election.
Nov. 19, 1952
Purchases
Division
(New York City)
&
Sales
of Wall
-
;
Tabulating
Street, Associa¬
tion of Stock Exchange Firms an¬
nual dinner at the Hotel Statler.
Nov. 30-Dec. 5, 1952
(Hollywood, Fla.)
Investment Bankers Association
Annual
Convention
at
the
Holly¬
wood Beach Hotel
Jan.
16, 1953 (New York City)
;
New York Security Dealers As¬
sociation 27th Annual Dinner at
the Biltmore Hotel.
y
Volume 176
Number 5163
.
.
.
The Commercial and Financial Chronicle
(1825)
/
ter
Prospective Supply of
that in
are
the
leading
1916
the assets of
savings
institutions
equal to about 26% of the
non-Government long-term debt.
By 1927 the figure had gone to
38% and by 1951 it had gone to
were
Institutional Investments
By DONALD B. WOODWARD*
79%.
Mr. Woodward calls attention to important role of institutional
investors in
ing
of New York
absorbing bulk of public's personal savings, and
points out level of business and employment, therefore, is a
prime factor in determining supply of institutional investments.
winter
to
I suppose that I should set
your
minds at rest in regard to
any
apprehension
by
making
that
you
have
may
prediction
a
in
the
oeginning. I
ings
wide.
non-farm
$20,000 and
$3M> billion,
$3.9
was
field, the fluc¬
also
are
of
in
and
that
running at
the
life
surance
companies will
continue to be
large
buyers
of securities
billion. If
$16
the
of
tuation
into
that
would
alone, the fluc¬
be
over
an
definite period
of time ahead.
would
i
an
Having
-
let
not
am
to b
i
find
a
figures
made,
we
wide range
very
of
to
institutional
is
and
trend
a
savings
over
invest¬
unusually
an
been
in
that
the
is
good
proportion
of
institutionalized,
longer
a
has
growing proportion of
a
there
sav¬
ings of
the
period
institution¬
economy
Raymond
Goldsmith,
with
a
n
biles
and
table
which
the
supply
of
for
One
the
of
which he made
in
orandum
"The
of
says:
personal savings among forms
savings is characterized, save
pression,
and the
wars
by
great de¬
considerable in¬
a
the share of savings through cor¬
of savings in the form of deposits
with financial institutions has not
the
econ¬
of
*
Savings in the three major types
institutions, that is, life insur¬
ance
companies,
mutual
savings
banks, savings and loan associa¬
observed
savings,
fluctuates
over
a
lesser range.
Well, if
you
to
institutions,
it
pretty
tions,
for
the
last
couple
of clearly is the condition of busi¬
decades, except in the abnormal¬ ness which is the most important
ity of war, have accounted for an single determinant. We will have
amount
of
equal to about two-thirds
total
personal
ported
by
Commerce.
■
the
'I",ln the war,
bonds
picture,
as
re¬
Department
of
in
came
whole
savings
of
course, the
war
altered
the
and
but
in
the
period
from '29 to '33 the figure was
66%;
'34 to '39, the figure was
67%;
'46
to
'51,
the
—remarkably
the
and
mutual
not available
are
65%
in
we
estimates for pension
some
trusts
was
stable, you see,
period. In 1951,
non-war
added
figure
time but which
funds
over
a
which
period of
might also
proper¬
ly be accounted institutional sav¬
ings, and it gives a larger total
of
institutional
savings; but, on
hand, personal savings
were up, as
you know, in '51, so
the ratio fell to 55%, a
seeming
anomaly. Those figures give you
the other
order
of magnitude
institutions are.
an
4he
where
of
a
be evident to you that there has
no
noticeable trend in the
savings
that
flow
The
supply of institutional in¬
vestments, the subject on which I
am
supposed
over a
with
very
the
to talk, fluctuates
wide range, essentially
fluctuations
of
general
business and employment. You are
all familiar with the statistics of
new
of
issues, but just to remind
the
great
fluctuation
vestments
magnitude
in
the
you
may
supply
of
you
the
of
in¬
recall that in
1929, according to figures com¬
piled by the
"Commercial
and
Financial Chronicle," the total of
jjpiew capital and refunding issues
was given at
$111/2 billion, and in
1933 it
was
given at $1 billion; it
•Stenographic
Mr.
Woodward
repiort of an address
in
the
lecture
by
course,
*'Th®
Economics of the Securities Indus¬
try," sponsored by the Investment Asso¬
ciation
Oct.
29,
of
New
York,
New
1952.
York
City.
offerings in
pe¬
cases,
you
come
a
business forecast.
This
boom
has gone on for
now
a
very long period and to a very
high level—both the duration and
the height are
edented.
historically
unprec¬
This may mean that
have
happily in
ated
the
too
obliter¬
some way
conditions
much
reached
fairs.
that
that
that
the
come
happy
gave
and the
of
one
state
of
af¬
to
the
well
subject
at
other
which
aspects of
of
you
want
may
Savings Institutions
longer
have
decades
that
been
growing
at
a
This
fact has been testified to both be¬
in
a
insurance
year
a
number
companies
of
and
the
The
may
of
institutional
rapid than private
long-term debt, over a period of
time, plus the inventiveness and
growth
more
ingenuity of the
of the
institutions and
investment
bankers
work¬
ing with them, has brought about
a
steady, gradual increase in the
investments that
available to
are
About
Both
the
in
publication
sional
Duke
University
Congres¬
1949 you will
in
and
hearings
the
in
find this
point of expanding elig¬
ibility for institutions rather fully
I
developed, and
it
more
now
will not dupli¬
than to touch
a
got
years,
hold
been
it has
example,
years
said
regarded
as
the last 20
Since
then,
time
of
tion
in
1906
and
thority is only,
than
more
third
of
buy
In that situation I suppose what
and
will
3%
1907.
as
The
the
of the
assets
or
of
bank
and
eligible
surance
further
in New
in
much
very
lowance for
New
As
The
know,
you
State
do have the
slocks
com¬
ticularly
authority to buy
in
the
able,
com¬
be of
the
you
stocks.
Let
grow.
bankers
new
I
of
is going
investment
used
other
instance
development
has
instru¬
make
the instability in employ¬
ment in the entire economy.
is
an
extraordinarily
field
prevalent in the 1930's have been
for
great
completely kicked in the ashcan
by the baby boom of the last half
exploration
promise.
and
One
in
this
field
of
of
This
profitable
significant forces in this
lies
which not many years
have
now
been
most
economy
investment:
have
been
you
born.
So
growing
population
through
and
a
have
we
growing population, and
of
use
investment,
so
that real wages are increasing. An
increase of real wages and a grow¬
ing
population
total
that
means
the cost of labor.
This is true
many
The job of mechanization or of
doing things with inanimate ma¬
chines and power instead of with
human
the
labor
promise
of
savings can be and will now.
in¬
I gave
creasing degree, that population is
the issue
urban, and an urbanized popula¬
has
had
never
be certainly very large. To an
tion
an
dc.es
not
its
the
to
agricultural
funds,
own
that
degree
population
as,
1947.
does,
for
to
ex¬
size
rising
rising income, looks to
somebody else to invest its sav¬
ings, and that is the reason for
we
it
are
to
seems
to
be
of
Dec.
are
not
charts
This advertisement is
NEW
not
an
striking
than
offer to sell
or
solicitation, of
a
on
page
offer to buy
an
by the Offering Circular.
ISSUE
November
are
offered
as
a
13, 1952
speculation.
299,900 Shares
Guardian Chemical Corporation
(A Delaware Corporation)
the
COMMON STOCK
'
(Par Value 10c
PRICE
large investments in pipelines.
volume
gas
of
loans
on
in the ground. I
both
am
and
many
committee
sure
that
members
requested
to
buy
of the institutions 25
The salient figures of the
mat¬
stocks.
vestment
of
V
'
'
'
share)
in
housing.
institutions
have
A
$1.00 PER SHARE
S.
'
Copies of the Offering
from
your own
investment dealer
may
or
*
i
be obtained
the undersigned.
years
number
very
Circular
of
and perhaps even 10 years
would
have
been
deeply
length before the committee of ago,
the New York State
shocked by such investments.
Legislature
a couple of
Then there has been direct in¬
years ago when per¬
some
per
sizable
oil
large
investments at many parts of
the
BATK1N & CO.
Member of
30
National
Association
Broad Street,
they
up more
Continued
offering is made only
These Securities
up
to date, they would be
more
hardly con¬
The
11,
were
vigorously
the last five years relative to
machinery than prior to that time.
The
popular
science version,
the Sunday supplement version,
destroyed by
me
in
in
rising trend of institutional
savings. And, with this prospect,
war,
up
those
certainly gone
the
a
If
this
then because labor costs have
were
and
on
"Commercial and
Obviously they
even
population, with its
few charts
Chronicle"
date.
brought
ample, in improving the farm. The
urban
a
of the
Financial
1
a
the
the need that it has
nor
of the institutions have
Institutions have made
in
the
factory, in the office, in the
that home, and on the farm.
of
the
a
have
we
productivity
would
ago
has
it
the
probably that is the extreme
cheapness of
remember, about 25 million babies plant and
equipment in terms of
years.
poorly regarded;
very
it¬
can
larger contribution to les¬
a
sening
in
does
contribution and
a
pipelines
the
of
been
to
importance in' the
investment
self make
me
country has -a
growing population. The ideas of a
leveling off Of population that were
genuity, and partly through grow¬
Another
im¬
enormous
expect it
I believe that the process of in¬
This
As
been
enormous
stitutional
I think this is
reason
departments
investment
future years.
of this talk, I
predicted that the institutions are
certain.
has
portance.
opening
going to continue to
the
ways to make securities available
that have not hitherto been avail¬
amounts, par¬
stocks and insur¬
company
investment
of
techniques,
are
fair
bank
major part of the business
the
the accepted fields. Yet
certainly
in the last 10 or 15 years the
job
of finding new
Legislature
knocking on the Legislature's
door. Savings banks in other states
ing respectability, the obligations
of finance companies, even sub¬
widely
are
ex¬
will, I suppose, continue to lie in
stocks out of
common
York
liberal al¬
more
now
dozen
will
part to offset that decline.
stocks
common
York.
and
tell
institutions
to
be
got
so
and
ness
of
In
somehow
investments
Even in periods when the
supply is dipping because of busi¬
the trust companies have recently
ance
and
own
of
they will
pand.
insur¬
company stocks and the re¬
quirement of rather long earnings
mon
their
on
amount
will
you
and
fluctuation, institutions will
finding, as they did in the
In other states life in¬ 1930s, ways to make more invest¬
ments
eligible so as at least in
companies are privileged
ance
a
past, that
the kinds of investments that
a
the
prohibitions
go
in the
work
au¬
know, not
you
surplus, whichever
less, and it is hedged about by
is
happen will be what has hap¬
pened
from the
so
Armstrong Investiga¬ help the institutions
the
in¬
through
partly
or
ular.
45
some
to
prohibited from doing
these securities.
New Institutional Investments
we
40
or
60
line, than the supply of invest¬
ments, which, as I have pointed
New out, is apt to be much more irreg¬
stocks. We had been
ago,
also developed at
was
have,
that
hock-shop
a
institutional investment.
—and
common
trend
same
over
was
business, and not appropriate foi
finance
mission
have had
very
the
ago
after
authority
common
unless
few of the highlights.
For
two
York * companies,
invest
eligible for the institutions.
or
people attempted to
lay bare the bones of this business
investment
was
fi¬
attractive.
technology
for
even
or
bit in perspective.
a
funds,
Congressional investigation
1949—when
any
period of years, but they
help
time
of
rate that has exceeded the
growth
of private long-term debt. •
fore
for
significant
ments.
period
covered, the savings insti¬
tutions
been
have
We
for
ordinated debentures, have become
than the recent two
I have
factors
any
the
question period.
a
trends may not be the
often
a
secu¬
look, and I will try to outline
briefly before we go to the
Over
wide ' year-to-year
are
that in 1928 consumer finance
large
and
and
think, the
one
them
Growth
There
fluctuations, and these long-term
be¬
very
mortgages
are
dency to decline since World War
I."
cate
passes,
suspicious
so
pronounced,
long-term
changes but has exhibited a ten¬
me
can
more
that
have
we
rities will continue to be available
to the institutions.
There
and
us
seems
it
time
more
cautious
become
can
that
money
Therefore
more
bonds
we
sizable fluctuations in business in
the
past.
However, I think it
would be a little extreme to bet
to
through institutions.
of
squarely back to the problem of
been
of
other
volume
During this recent period it will
proportion
large amount
riods of good business and a small
amount in periods of poor busi¬
ness.
So in this
case, as in a great
many
porate
shown
ask then, about the
outlook for the supply of invest¬
ments
salesmen
I
need
panies, and the savings banks
distribution
institutions,
in
for
With that growth we will
repu¬
mem¬
recent
a
vouffne of savings,
flowing to the
operation
to
than have the life insurance
vestment
omy.
rented
are
points
summary
stocks, mort¬
gages and real estate.
The share
of
very
Turnpike, and this has been
the
been made.
for the two
investments
be
may
a
automo¬ Prospects of Institutional Demand
For Investments
large fleet of
years: that is, the growth
of
nancing toll roads in considerable institutional demand will be much
volume, Including the New Jersey more regular, more of a straight
to
the
It
which
transportation.
than
companies, is complet¬
ing, I think, the most far-reaching
and comprehensive study of sav¬
ings and investment that has ever
fluctuates.
amount
owns
another
them
insurance
vestment, institutional savings, are
a large part of the
savings and in¬
thaj the
now
passenger
businesses which have
Donald B. Woodward
You know that institutional in¬
York
fleet of
large grant of funds from the life
g bad
crease
in
the
share
of
savings
That will
news, I W i 1 1
indicate—rather, more through consumer durables, lne
try to put the accurately, it will remind you of insurance and pension and retire¬
—the extremely wide
subject in perspective.
range over ment funds and by a decline in
r
New
large
records.
alized.
of
Fluctuations in Supply of
Investments
going
1952, which is entirely
earlier, there has not been much
even
there.
know that
you
I
n
'39
used mortgages on
we
wider range, and if we had
for
farm
mortgages
for
been
back
construction
new
total has
went
back
-
of
were
annual rate of
an
we
depression,
figure, or if
1939
again in 1943
while in the
billion,
assurance,
Record¬
mortgages
less
last two years the
in
it otherwise would
as
While in recent times, as I said
In the mortgage
tuations
the
on
job.
back in 1951 to $121/4 billion.
came
predict, I
think, with it
can
ment,
this end.
to
of
devoted
institutions, and points to insurance company investment in
housing and in common stocks and finance company obliga¬
means
pinch
a
Incidentally, I might call to
attention, if you want to
pursue this, the issue of the Duke
University publication, "Law and
Contemporary Problems," for the
Sees need of gradual increase in investments available
as
of
your
more rapid
long-term private debt, due in large part to postwar appli¬
cation of savings to life
insurance, pension and retirement
tions
of
have been.
than
funds.
much
as
institutions
Estimates investment institutions' growth has been
country in this form, and one on ceivable but that the institutional
more
companies now own and trend,
the
institutional growth,
lease railroad equipment. Mutual will continue on a
large scale.
trucks
Now, evidently it is the increase
in Government securities that has
prevented that condition from be¬
Vice-President, Mutual Insurance Co.
,
9
>
of Securities
Dealers, Inc.
New York 4, N. Y.
Phone—WHitehall
3-3388
.
*
27
10
The Commercial and Financial Chronicle
(1826)
Divided Responsibility
Natural Gas in
an
These
this:
Expanding Economy
tive and all
National
the
In
bor,
decade
since
the economy
experienced
has
-which
tio
has
n s
Problem
Pearl
of
this
Har-
nation
expansion
an
other
astonished
na-
and
,
natural
gas
able, it
may
revealing
show the national
t
even
ourselves.
o
more
in
However,
the
we
be
process,
natural gas. They
on
prudent in the
use
find
and
more
heavily
our
Gas
Natural gas
resources,
and upon those
for oil,
have
continues
expand, we
omy
to
and
more
E.
^oast areas-
principal sources of prienergy—coal, oil, and natu-
our
ral gas. As
has said: ".
Mr.
.
and
the
duce
If
or
our
tinued
wit
of
oil
Jackson
cannot
man
reproduce
a
pro-
field
gas
.
to
that
it cannot, by present
be transported in tankers;
in
means,
it^nnot
and
be stored above
large quantities. It is
physically possible to import gas
ground
.
nation hopes to enjoy coneconomic expansion, then
must look
we
Justice
the fundamental
in
from Canada
from
Iran
Mexico, but not
or
the
or
Far
East.
Our
supply
are,
relationship between the economic
sources
welfare of the nation and the £n-
therefore, limited to North Amer-
ergy
base
resources
which
on
it
rests.
,
Increasing Importance of
In the past 25
years,
consumption
,
of
has
of
recent
natural
estimated
quarter of
a
that
century
consuming twice
as
f.
in
consume
we
may
An add)
.
by Mr. Davis
ess
.
And
at
the
1952.
of
have
32nd
state
the
regula-
that
prices to
regulation
to
At
with
...
.
and
.
f>
on
for
reserved
economic
ities
are
it
has
been
not
found
service
tomers.
the
to
local
same
quality of
prices
are:
abandonments of
or
ginning
com-
portant
consumers
the
in
19th
instances
the
about
national
a
demand
for
which is not warranted by the
available national supplies. Today,
many
mateiy
it
areas,
$200
costs
year
a
approxi-
heat
to
an
tradition,
became
First,
had
no
not
f
.
.
but
Only $90
]
J
,
natural
gas.
T
and,
finally,
able
a
reasonableness
a
4«
of
at
judicial
one;
was
value
offering of 240,000 shares of the $1.00
4% Participating
Preferred
Common
Stock
than
in
the Federal
Except for
of
will still be interested
of
railroads,
did
developing,
was
oil
Carroll, Kirchner & Jacquith, Inc.
Building,
Denver 2, Colorado.
608
Patterson
Building,
From
t
t'to
*
Denver 2, Colorado.
i
*
4
This is not
an
*
offering of stock
"
as
V
and
gas
principles
servation
for
onlv
enerev
of
use
natural
eas
In
iq-o
the
not
eas
mL
even
was
f,
..
4-
^cents, by 1946, it was only 4.5
*
.
The
continually
,
one
prevehted
*
ground
...
national
widening
between values
and
P°lnts of consumption
fleeted
part the
in
of
penses
at
wells
greater
transportation
re-
ex-
as
gas
f
,
of
in^xcess
ti
this
growth
of
supphis
of
demand Z
ex
°V.de,Pa."d-.J;.™.®*
!
etween
'
'
-
supply
distances
from
the
discouraged
areas
new
early
the
oil
cen-,^1$ keeDC naceS1Sdth s.mnlf fnd
this fact wL reflected in
decl'ininc
producing
working
physical
and
.1
out
con-
Con-
gas.
fipid^ipa retlectecl ln declining
" p
.
.
m
'
physical waste, under-
1938> natural
gas
had
a
very
ket at
almost
any
price.
On
the
and
aboveground, in st other
hand, at many maior conVvl
.reasonable manner; or /U\
(b) they.
sum;ne
r)oint^
natural
was
protected the correlative rights of
g. ?
atur
^as was
owners in a common
pool.
expensive relative to competing
v*/-\ o
nnrr o
a
o
ya n ah'
a v«
n\r
'
,
,
In
ment,
this
the
conservation
Federal
develop-
courts
recog-
critical
effect which
fuels. Thus, there
was
for industry expansion.
little
the ad-
ministration of the
Natural Gas
the field supply
upon
,h?hS bee,n tbfat U
has dlscoura£ed the sale of gas
reserves to interstate pipelines,
Many oil companies, controlling a
subslantlal portion of the nation's
Proved
have
been
unwillinS to sell gas to such
mar-
&as
reserves,
kets' because tbey wished to avoid
Federal regulation. Thus major
«atural-gas supplies, which might
by thls ',ma have been dedicated
to
natl0nal
markets,
still
are
cated to any present use.
This situation is a result of indeclsl0n 011 the Part of the Fed-
eral Power Commission as to the
meaning of Sept x (b) of the Act>
section
0f
defines
industry
and
excludes
Words:
".
to the
...
0f natural
.
the
be
to
aspects
regulated,
production in
but
.
shall
production
these
not
apply
gathering
or
gas."
In one ofin the early Pnmmio_
jurisdic"
fjnriQi
tional
^occlc
in
cases
Voided
s'on
1 QdO
1940, the Commis-
that
a
company
a
wflich driUs wells' Produces
gathers it, and sells it to
§as.
pipeline
a
transmission company is excluded
from Commission authority, un-
d<* the above. But of the Act
da^uage one of
quoted
the
Commissioners
that:
"It 1S
is
Al
the
.iurisdictional
dissented,
sale
wmcxi
which
saie
activity,
saying
is
the
1S
me
the
not
mere acts of Prodacing and gath-
edng
of
When Federal regulation began
low field value in many areas,
a"d there were very large supThey Plies of gas searching for a mar-
of these tests: (a)
.
be mailed upon request.
Regulation
A
That
.
sPread
a
regu^
enter
states
were
for
of
*
defined above.
The Threat of Field Price
while ph.ys.icfUy available and undedi-
the averaee
iq4[.
.
average
value'of
th
detiined
u
pi,
the
on
decreased;
..
th
a
thousand cubic
policies gradually came,
accepted, provided they
be
to
passed
'
When the prospectus is
ready, one will
then
consumers
economics
servation
f
4
natj0n's
value
When
1922
In roughly the same half
tury that public-utility regulation
(a Colorado corporation)
Bank
In
acGOunted
yeli-ra ab°Ut 1935' °"ly " SStttS
.at
THE EMPIRE PETROLEUM COMPANY
National
demand
k of 29 cents per
great
S,.
be-
o
Conservation Regulation
U.
orices
ofeppb-Stt toKJS Of production.
pOintS S^rolucUon"
iputiuh 01 piuuullioh.
?arpfnt1v
vo'nio
Government,
common-carrier
government
in the market for the securities of
Trevor Currie, Securities
of
ex-
eeneraliv ereat-
was
J?
davs
were
f-utilltv
rpcfnlntnrv
nrinninl^o
lie-utility
regulatory
principles
developed at the state level rather
lation
this company is
completed, we
large
The 50 years of growth
par
important ways
many
ex-
points of consumption reached
u
law, not the arbitrary
judgment of commissioners.
'
THE EMPIRE PETROLEUM COMPANY
the
we
declining
averaee
sharolv
investment;
rates
are
Future
Growth
which the administration of
tbe Natural Gas Act affects the
supply and distribution of natural
£as.
I would single out two for
particular discussion, because I
believe that, unless the Federal
Power Commission becomes rea-
depression
hpfoL
ffa<!
fias
f
{h™
of
,
a
there
many
the
re|ulation
than
the
was
There
reserves,
and
in
Act has had
naturai
question
of
rate yielded a reason-
return
matter
its
in
gas
durin?
t th
on
As
1920's
natural-gas
Regulation
Industry
money was
SUnnlv
termining rates, the agency
mustt
bring about confiscation, and
return
late
important pipeline
nahjral
not
able
.
make
to
those
In the depression years
Deriencine
must allow the company a reason-
COal
of
transport natural
the
natural
Federal
given
bituminous
pipe
critically
regulation
hearing on the
a
the
by the legislature, which means V
that
regulation
is
essentially a
legislative function; second, in de-
average home with oil; $145 with
seamless
to
Federal
near
nat-
impor-
is
Federal
Even with the expansion in use
thejurn
powers
were
upon
more
supply and distribution of
principal
decade
of
the administrative
in
some
reserves
1m-
public-utility
generally ac-
of
depend
Therefore, it
consider
additional
tight. As
result) the nation developed a
backlog of "surplus" natural-gas
state legislatures
municipalities the authority to regulate retail rates charged
by local utilities.
Several printhe
to
a
century,
to
the
production. The de-
markets, and
gave to
basic
gas.
tant
the
natural
much greater distances.
than
rates;
quarter
will
listic in its approach to these two
points, the natural-gas industry
1930's, the natural-gas in- will have greater difficulty in
clustry
experienced
very
little meeting
the growing demands
growth because coal was cheaper being made upon it.
cus-
In several
time,
of
pansions.
0f
service.
final
century.
of
improvements began
were
oped gradually in this nation, bethe
fields
gas
and extensions
service;
that
>result,
The three principal mat-
regulated
ters
future
future
eco-
electric, telecompanies in the
community offering identi-
same
cai
the
the success in finding
of the century,
p economical
gas
or
that the growth of the industry
so
in
•
of
l.omicul to have two
pnone,
^uilt up during the 1930's. Now
,s.f ,a!5 largeiy contracted for,
have
caj
nature,
Generally speak-
monopolies.
ing,
Possible because of the tremendous
backlog of gas reserves which was
better
which
velopment
very
states themselves,
or
better steel and other technologi-
types
public-service activ-
which, by their
di-
aspects
the
usu-
certain
has increasingly assumed an interstate character. At the same
time, there have been major expansions
in
gas
consumption
within the natural-gas producing
The recent expansion has been
markets for natural gas
...
of Puolic-
Public-Utility regulation is
that the transmission from sources
of supply to such new markets
resale, rather
regulation
consumption
Until
Utility Regulation
ally
in
feet. In the next quarter century,
it increased
steadily
until,
by
1925, it reached 1.2 trillion cubic
feet.
develop-
„
History
business
velopment. The market expansion
has been national in scope, so
Background
turn
in-
effort.
war
1940's and continuing into
this decade, the industry has experienced its major period of de-
1938
gas was around a 100 billion cubic
to you to-
the
the
annual
growth
our
and as the national
fbr all forms of energy
ural
Accordingly,
discussion
.
xr
Nature
s
required
jn
of
understand
bpgan
Tiie
rouse
rose,
fluence of the
f this Federal regula_
rp{?I)latinn
was
expanding markets.
Such
began to appear as coal
prices
thereof.
to
jm
it
is
order
What
demands
tion, we should look briefly at the
jUstiy in the days before such
beeom-
is
for
not
natural-gas industry from its
were
of the
the natural gas itself
at
producers
h
the record
It
regulation, its impact
whether
our
conservation
other
industry, and what
ought to expect in the future.
agency
with
When
commerce
than
rected
the natural-gas
cepted:
.V m
Meeting of the American PetroInstitute, Chicago, 111., Nov. 12,
espe-
ad-
public-
markets
public-utility regulation, diat companies transporting
selling natural gas in inter-
1;^^&
.
deal
of
ment
more
fallen
utility regulation couid
the
and
Federal
began to increase under the
Thus the Natural Gas
gas.
of
doldrums.
.,
Act
interstate
an
realistic approach, lest
my
will
ciples,
be Sas
if
beheve
necessary
well
being.
day
of
Gas
imposition
mere
ministration
rected
and
which
with
Federal
gas
there
much energy
today.
in
gas
rates
gas
Gas
of
not
a more
regulation and resulting low price,
Annual
leum
function of
a
regulation
Regulation Began
The
A(d js
to
of
demands,
imperative
?f+ga* a? comPar^d witb s"bsti~
tute fuels; and because of the
''
another
,
,
we
behind.
has
gas
.
*
natural.
years, as coal and oil prices
risen,
able
regulation
a
case
do
fail to reflect the relative scarcity
times; and the
■>
is
have
than five times.
more
of
Petiti"n with substitute fuels In
in-
declined; oil consumption
consumption
is
consumers
than of the value of
the annual
,
increased
I
ural
or
~
the duty to regulate
charged by companies
rates
natural
Public-utility regulation devel—
price
public-utility
„
has increased three
principally to the United
the
Natural
doing
so
no
care
be
take
been favorable.
and
itself.
gas
creased about 60%; Coal
consump-
tion has
gas
'
energy
,
future
Finally,
„
Natural Gas
as
and
States
The
It
ica
of
will
to
dle
problem of finding and distribut¬
ing the additional supplies of nat-
of
Second, natural gas differs from
the wealth of Midas
.
ke, Mld-Continent and Gulf
Jij1
The
t»-»
most
prices have
gas
have
we
competitive
the
take
°" th<f ""l
sel^atl° c l"d1jse 10 gas;
mf1f
gas Pnces bave had
i t e
mfluence on exploratory efforts
Many of these are
at the relatively
low costs which prevailed in the
past.
This is true, for example,
of
Field
it
gas
potential
gas
the
...
Commission
fuels.
c0"s'de™b.!«
replaceable
mary
to
more
price of oil than to the field
price of gas.
and other
materials.
not
related
that
under
levels
we
moTe minerals
raw
Davis
the
Be¬
energy.
efforts to find natural
been
field
Ralph
among
now, it has been dis¬
principally in the search
covered
econ¬
our
primary
...
it continue to retard the national
up to
cause,
parts
of the world.
If
of
sources
Industry
is unique
.
prevents gas prices from reaching
has
Some Peculiarities of the Natural-
upon
of other
the
daily
ing
more
its
distribution and
But
future.
enough
tion
already proved.
Industry Growth Since Federal
Natural-Gas Industry
the oil industry
larger part in the
the
assurance
find'
In
us
have
drawn
and
gas
,
Federal Regulation
encourage
We must hope it will do
the
in
to
warn
will
more
„
gas,
done
of reserves
they
And
gas.
urgency to
for
and
conferred upon the Federal Power
all
allowing for a wide mar¬
gin of error, such projections put
the
which
finding
has
Even
which has been
the
to
up
oil
mined product is destined for interstate commerce. The problems
°f conservation were considered,
and properly so, primarily problems of the states.
the
to
up
of
a
states rather than by the Federal
Government,
even
though
the
Certainly the record shows that
ab u
against
as
is
to find the necessary
it is largely
search
in
supply 25% of that
consumption
20% now
largely
production
mining operation. As such, it has been a local
matter, to be regulated by the
to
up
that
is essentially
gas
use.
avail-
sufficiently
is
spotlight
is
wise and prudent
possibility of incentive in the industry's growth.
Materials
It
mosphere
the
past.
The
nized
.
regulators,
particularly
at
the
Federal level, to provide an at¬
destroy all incen¬
can
f
,
muusiry
naiurai-gas
And
gas.
gas as supplying
Mr. Davis describes
peculiarities of the natural gas production and the responsibil¬
ity of petroleum industry for future supplies. Discusses Federal
regulation of natural gas industry and the threat of price regu¬
lation as revealed by recent decision of courts in rate regula¬
Stressing increasing importance of natural
Says Federal Power Commission
Tne
oil industry
needed energy in an expanding economy,
tions.
add
peculiarities
service.
Consultant, Houston, Texas
!
.
only partially responsible for taking care of the nation's growing
requirements for n a t u r a 1-gas
By RALPH E. DAVIS*
if
for Future
Supplies
Thursday, November 13, 1952
...
_
tne
The sale
exempt
.
.
."
to
or
sold
.
_
is
no
as a
wonder
wonaer
1S
110
producers
an
cause
not
_1
were
public
1
Ti
1
that
xnai
would
be
utility.
j
i
It
.
naiurai-gas
natural-gas
disturbed by such
interpretation.
In
a
was
pipelines, either di-
indirectly,
regulated
!
sale
then every com?as
in the field
way,
which
interstate
rectiv
part
gathering,
If that Commissioner
had had his
panv
the
not
was
production and
therefore
and
1947, the Commission issued
formal statement, saying that it
Volume
Number 5168
176
.
.
The Commercial and Financial Chronicle
.
(1827)
would not assert jurisdiction over
producers
vetoed,
-its
and gatnerers as such.
the
Kerr
Bill
was
when
But
Commission
the
Then
liJ47
it
investigated
the Phillips Petroleum Company
as a test case, to decide the ques¬
tion of jurisdiction. Again its de¬
cision
it had been
tne same as
was
in 1940. And again a Commissioner
dissented, in this
Mr.
case
Buch¬
He felt that the Commission
anan.
should
have
asserted
from the
changed
mind, and rescinded the
statement.
gated to pay higher prices for gas value of their
pipe-line invest¬
purchased under older contracts ments. The Federal Power Com¬
the
Federal
threat has
do with current
As
public
growth
great deal to
a
field-price trends.
demand
in
outstrips
the
Commis¬
oppose
The
nation
own
clause
needs
the
reserves,
to
would
find
be
more
The long-distance pipe lines,
particular, have a vested in¬
terest
in
developing
additional
and
in
duce
reserves
in
order
to
take
of
care
of
the
nation
foresee
pletely
gas
lic
gas
or
from
more
rather
than
demands
to
in
cubic
away
good sale; and the wary
may
then contract to
producers
sell
their
interstate
to
gas
com¬
panies.
"Without this threat pres¬
ently hanging over the producers,
large volumes of
been and
at
gas
lower than current prices.
such
an
atmosphere
of distrust is not desirable.
threat
of
control
If the
of
public-utility
hang over the
not
gas
production and
it is very likely
that oil and gas producers would
gathering,
be
then
spending
and ef¬
more money
fort to find additional gas reserves
and to prepare
them for market.
Transmission Companies
Producers
The guns
hit their target,
enemy attack.
t
we mean are
oil well drill
Gas
Act
exploration
as
Gas
tanks, the planes, the
There is
go
more to
...
discouraged
development of
regulated com¬
reserves
constructed
since
that
date
has
entirely upon gas pur¬
chased from others, to the exclu¬
sion of ownership of its reserves.
As additional field supplies be¬
come
increasingly difficult to find
and costly to
buy, it would be to
the advantage of consumers at the
end of long transmission lines if
the
regulated pipeline companies
actively engaged in search¬
ing for additional reserves to take
were
care of market growth.
A trans¬
mission line could adjust its field
development and rate of well
duction
accommodate
to
facilities
and
in demand.
seasonal
pro¬
its
line
variations
Furthermore, it could
take gas from its own reserves at
variable rates to offset the more
rigid contractual
obligations
performance
of
delivery
chased
and
pur¬
gas.
Many
recent
contracts
contain
"favored nations" clause, which
requires that the transmission line
grant the supplier an increase in
£
the price of gas each time the line
makes
a
gas-purchase
new
a
tract at
a
higher price.
transmission
relatively
tional
gas
celerated
gas
line
small
con¬
At times,
may
volume
need
of
a
addi¬
to compensate for ac¬
depletion of one of its
supplies,
to
or
additional sales
capacity.
or
take
care
increased
The additional
of
line
volume
of gas may not be available at the
same
price
contract
higher
paid
gas.
price,
company
.
.
.
.
.
.
or
is
as
vital
In
previously
Daying the
the
for
new
transmission
automatically
is
of
(1)
Rate
Base—The
other
.
obli¬
.
1 FPC
or
320
et
al
vs.
Hope
Natural
US 491.
really. Yet, if
sitting
their target the
to fuel the *
strong.
guns that
that of the man who
.
demands of the future with the oil-man's bazooka
essential
weapon
CITIES
.
in America's arsenal of defense.
© SERVICE
im¬
natural-gas supply is rate making.
In order to fix rates, the Com-
atomic bombs.
a
permitted
able.
In
base
rate of return which
a
thought to be fair and
such
a
formula
reason¬
for
de¬
termining
"reasonable" price or
consideration is not given
has
portant aspect of Federal regula¬
tion which affects the future of
example, as an expanding, or "growth'
stockpile of ideas, plans
blueprints for the
During the last war these blueprints made it possible to
swing into the production of new products to meet new and
urgent military demands. So, today, it stands
ready to meet
has
na¬
is
of
Cities Service, for
company,
future.
the
Regulation of Rates
destined
as
does
rate
a
regulated company
to earn, and then
.
this business of defense than
has
and
relied most
1
economics
is
the
determines
Commission
4
battleships that keep America
"bang." The oil-man's role
makes rifles
an
by
panies. In 1940, the eight major
interstate pipelines then operating
produced nearly half of the gas
they transported and sold.
But
every large system authorized and
gas
stems
crude oil that lies beneath the earth
the
determines
which
tural-gas industry, then the in¬ rates,
dustry must continue to depend to the commodity value of natural
largely upon the oil industry to gas either at the well or at the
•market.
find the required additional
gas
In
reserves.
"
applying the public-utility
pricing formula, the Commission
in Korea would be
our men
The administration of the Nat¬
ural
the
with
Federal
did
business
they didn
ducks for
would have
still would be available
In any case,
The guns behind the
guns aren't shootin' irons
in
mission
on
chosen
.
;
Gas
to
properties
ure
of
merit
as
rate
"original
from
man
the
the
-
original cost
the proper meas¬
use
base.
Whatever
cost"
may
standpoint
made
lines, it has
resources, to acquire for pub¬
service any available
gas
as
bring its policies into agreement
new
important to oil com¬
than the opportunity to
a
utilize
the
single seller,
a
turn
less
make
Until
the
consuming areas.
prices go high enough, the
threat of regulation may possibly
panies
to
well
Guns Behind the Guns
con¬
feet of
If
seem
efficiently
as
-Man's Bazooka
prices at 15 to 20 cents and higher.
Even at such higher prices, it is
tract for 500 billion
"
and
enough to in¬
enterprise
com¬
future
present public interest."1
ap¬
than
more
private
the
gas at
which will be
uses
10
field
probably better economics to
no
rate and for
in
to
resources for public con¬
sumption. The function which an
allowance for gas in the field
should perform for
society in such
circumstances
is
to
be
enough
rights, and to deliver
gas
a
if
reserves
commodity-value
natural
gas.
well, some trans¬
porters serving major consuming
areas
additional
a
devel¬
"For good or ill, we
depend on
resulting from the application private
enterprise to exploit these
the
at
encourage the
compensate for the increase in gas
cost
of the clause. If transmission lines
available
at former prices of 8 and
cents
of
opment
it
uses
recently that proach
the operation serves,
supply, the their markets and to prolong the
problem of finding the necessary
gas is becoming serious for many
companies. Instead of looking for
gas
can
company-owned
re¬
rather than the present
of the favored nations clause. And
totally inappropriate public-util¬
the Commission has hinted that it
ity approach. As Mr. Justice Jack¬
will not grant rate increases to son has
written:
they would
eral
■'
Power
sion have indicated
authority developed their
regulation
of
natural-gas
production is still with us.
mission
The Office of Price Stabilization
and
over
Phillips.
So this threat of effects of the
field-price regulation, and of Fed¬ minimized.
This
district.
same
11
of
facilities
no
merit
have
valuing
like
pipe
at all
from
Co.
Continued
on
page
31
12
The Commercial and Financial Chronicle
(1828)
has worked continu¬ Committee,
has also just com¬
ously and is increasing its efforts pleted a nationwide survey among
to encourage the development of the smaller commercial banks to
more savings in
banks in the be¬ determine the amount of earnings
lief that this is good for the bank, that banks derive from savings de¬
good for the individual, and good posits. The survey reveals several
Association
The Savings and Mortgage Picture
By WENDELL T. BURNS*
President, Savings and Mortgage Division,
American
Bankers Association
important factors in the operation
for the country.
Senior Vice-President, Northwestern National Bank, Minneapolis
,
of
of savings,
and the role banks are playing in the picture. Tells of work of
the Savings and Mortgage Division of the ABA, and the efforts
to increase the breadth and depth of savings in banks. Points
out commercial banks generally are looking with favor on
savings, and are prepared to compete with mutual savings
banks and loan associations.
Reveals proposed legislation
on savings and loan branch offices.
Division
.
would
I
briefly
you
of the things this
some
they
as
contributes
is
we are
the
where
savings
adequate
bank services do not exist.
A
Sept.
Association is doing.
I will try to
to
continuing
Its
has been to provide sav¬
ings deposit facilities in commu¬
nities
Postal
earnings.
of the things
accomplishing and some
things we are attempting
These efforts
complish.
adapted
purpose
savings department. For ex¬
ample, operating expense is usu¬
Division of the American Bankers
tell you some
deposits to banks
became
of America.
ways
a
small; and the
like to report to gross income retained
now
would shift their
ally
of Savings and Mortgage
Work
Mr. Burns calls attention to the growth and extent
Thursday, November 13,1952
...
of
30, 1951, by the General
Accounting Office, and submitted
to
as
to
favorably
believed
bank
that
bank
speaking,
net
a
least
at
%
survey
of the
Savings System completed
a
net profit
per
Generally
of
cent
of
report
profit to
it
a
of
1%, after
for possible
Congress Mar. 13, 1952, by the
General
of,, the
Comptroller
United
States, recommended that
Congress give consideration to tne
question as to whether or not
of the providing reserves
under present conditions there is
to ac¬ losses, should be obtained from
a
need for a Postal Savings Sys¬
largely operation of the savings depart¬
tem. It was pointed out that 90%
center around
the promotion of ment of a commercial bank.
We believe that not only is oper¬ of post offices designated to re¬
At the outset, I should like to The total accumulated savings on savings and the sound investment
of
a
savings
department ceive postal savings deposits aremake a few comments about sav¬ July 30 held in commercial banks of those funds. Much of the work ation
where other savings facilities are
ings and their growth.
To en¬ was $39.4 billion and in mutual of the Division is done by and profitable but that offering thrift
available. Only 1% are in fourthcourage
through committees whose mem¬ facilities plays an important part
principles of thrift and savings banks was $21.9 billion.
class post office districts operat¬
the
habit of
Another source of savings that bership comes from banks in every in fulfilling community needs, and
reflects similar growth is the out¬ section of the country.
Much of thereby many intangible benefits ing in small communities.
savings among
Arthur Sands, Chairman of the
(accrue to the bank.
The promo¬
our
people is
standing reserves against life in¬ this report, therefore, will refer to
tion
of
thrift makes possible
of
a Subcommittee, appeared recently
great
im¬
surance policies.
Savings of this the work of the committees.
portance to the
ended June 30 last, and to¬
taled on that date $59.5 billion.
f
of
a r e
a
The
policy in which
banks
partici
p
ate
know¬
ing
they
c o n
t ributing
to the
are
State
total
in
date of
security
l.
wciiudi
share
less
something
burns
accounts
$17.6 billion.
that
on
than
30%
that
of
the
happiness
dollar amount of savings in the
people.
banks of the country.
brings to banks another oppor¬
In
contrast
to
the
growth of
tunity to participate in maintain¬ savings in these privately man¬
ing a sound business economy.
aged institutions, new money in¬
Banks are ever broadening their vested
in United States Savings
influence in
this field.
This is Bonds during the past year was
evident
from
the
extraordinary $1 billion less than redemptions.
record of savings grov/th during Nevertheless,
the Savings Bond
12 months. Recently, the program remains substantial and
growth
in
savings
has nearly vitally
important
with
almost
equaled the unprecedented gains $58 billion of all series outstand¬
that
were
achieved
during the ing on Sept. 30.
days of World War II, when full
There has also been a decline
employment
and
high
wages, in
postal savings deposits. This is
coupled with a scarcity of things a trend that has been
continuing
to buy, resulted inevitably in an
for several years. They now stand
exceptionally large rate of sav¬ at $2.6 billion. The
high in 1947
ings.
Today we do not have a was
$3.4 billion.
s^i rcity of goods for sale; yet sav¬
There are, of course, other in¬
in :: are at an exceptionally high
the past
vestments and cash accumulations
which
have
had
an
important
reflect
nation,/but
in this accumulation of sav¬
the
the
country.
I
our
level.
the
This total is
It
Banks
Savings and
on
savings of the
here dis¬
types
By depth of savings,
refer to the
more
Committee's
urging
dollars go
The Com¬
advertising
for savings promotion.
mittee has already prepared much
advertising
and
in
now
Public
material
savings,
on
cooperation
with the
Council
Relations
is
pre¬
a
this manual
findings of a pub¬
designed to find
how much the general public
are
lic opinion survey
out
knows
the
about
differences
set-up and purposes of
a
in
bank and
savings and loan association. In
a
ing
July 30,
total
of
which
brought the
$12
Legislation
amounted
billion
the
at
less
to
than
of
One
of
the
occupied
Loan
Offices
matters
the serious
and
of
which
has
attention
Division
the
of
in
the
past
the competition of
has been
Committee
Federal
on
endeavored
gressional
in
all
banks
♦An
address by Mr. Burns at the Re¬
Savings and Mortgage Conference-
But
product.
bases
we
We
of
compete
can
compete
can
broader
the
American
Bankers
A.ssociation,
M'nneapolis, Minn., Nov. 10, 1952.
prepared
more
The
rf
vision
Savings and Mortgage Di¬
of
the
American
Bankers
and
offices
doing
better
a
is all to
One
is
for them
competitive
good
are
job.
and most
introduced
was
little
a
Senator Frear at the
The bill
similar.
were
restrict
would
For the country as
select
applying to
chartered
ciations
either
savings and
other
or
pro¬
state-
loan
thrift
existing branches to con¬
though unlawfully es¬
tablished.
The latter bill
was
ap¬
Lake
City,
Utah
Salt
Lake
City,
BIdg.
Utah
investment
laws
investments
regulating
savings
for
funds.
The
Committee
will
also
bring
under
investigation by
gressional
1hat
Committee.
of
many
the
There
has
School
Savings
and
the
staff
plan.
a
Surveys of
Committee
Savings
Savings
Operation this
nationwide
We
abuses
of
characterized
the
Ray
Dun-
kerley, this afternoon, will discuss
This
Committee, in cooperation
with the
Country Bank Operations
in
of
series
a
the
"Banking"
of
articles
prepared by members of the Com¬
on
Investments and out¬
mittee
standing leaders in the investment"
field.
Among the subjects to be
are:
a
history of bond
cov¬
ered
faults
a
50-year
the
increase
over
of
record
rate
bonds
this
of
de¬
period;
in
a
corpo¬
outstanding,
comparison
and
a
increase with
the
growth in savings accounts;
comparison of the growth of
public debt outstanding over the
past
may
invested
actual
au¬
with
years
cor¬
interest
Mortgages
their
be
prevailing
rates.
t
Mortgages have for generations
the
of
one
Savings System
been
most
form of investment for the mutual
increasing
an
of lack of need for
sav¬
savings
Since
has
taken
an
active
banks
World
totaled
all
for
what
many
session of
troduced
created
interest.
magazine
issue
<
in
appear
important
and, at times, the most important
Association
in
this report.
will
of
War
the
II,
country.
they
have
ings facilities supplied by post of¬ been of growing significance in
fices
under
the Postal Savings the loan portfolios of commercial
System.
The American Bankers banks. At the end of 1951, they
survey
on
savings including an
inquiry on trend of interest rates
savings and on methods used
on
data
December
been
awareness
Utah
computing
The
part in pointing out this situation
on
a
the Bureau in this research.
assets
as
revealed
by
experience; and a compari¬
son
of the relationship
between
hope
yields on investments over the
Con¬
a
thority and assumption of pre¬
rogative not granted by Congress
Postal
work
or¬
ganizations have participated with
specific legis¬
years
with the growth of total
affecting Federal savings
and loan associations, the entire private debt; the value of mort¬
Home Loan Bank Board and the gage security as a protection to
The
Management and
completed
Salt
In addition to this
appealing and promis¬
ing for the future. Our Committee
Thrift
and Savings Cost
Nat'l Life
Investments
the
lation
children is
summer
309 Pac.
eventually
a
rected.
Our
Broadway
its progress.
with
Nationwide
West
of
legal
asso¬
even
in
(this offering has been fully subscribed)
42
by the Fed¬
will
studies
institu¬
tions, and would also permit al¬
have
account
up
W. D. NEBEKER & CO.
Bond
One
branch
favorable
more
which
such
A. P. KIBBE & CO.
competition
and other
the
visions
actions
average
of the Division stand ready to as¬
sist any bank wishing to set
Underwriters
of
Government
We
unnecessary
to investing institutions valuable
privileges to-those permissible to data
revealed
by
long
range
state-chartered savings and loan
studies of
is
whole, the
around
$27.
on
Share
form
state
The bills
are
promising form of savings
savings. Five hundred
a
per
hopeful that this
eral
less in¬
re¬
Federal Home Loan Bank System
Savings
school
these deposits.
@ 5% cents
and
savings.
of Federal
sociations.
ready
banks, principally the mutual sav¬
ings banks, have $92 million of
UTANA BASINS OIL CO.
postal
a
are
in progress for the
analysis of quality characteristics
of public utility bonds as well as
quest of state supervisors of Sav¬
the preparation
of a survey of
ings and Building and Loan As¬
bill
ond
later by
tinue,
com¬
savings banks
the
School
2,300,000 Shares
in
as
small
associations.
loan
on
encouraging.
Offering
are
the
important
tasks
savings performed for the Savings and
Mortgage Division is that done
A bill sponsored by the Amer¬ by the Committee on Investments.
This Committee has as its objec¬
ican Bankers Association was in¬
tive the
development of sound
troduced in the Senate this year
jointly by Senators Maybank and policies for investment of savings
deposits.
Under
its
direction,
Frear, seeking this result. A sec¬
branch
the
on
more
to fight
and that mutual
This
Public
saver
terested
Espe-(
insurance
FDIC
in
out
report.
measure,
should be less
Con¬
the
gional
daily with
restricting
action
in
plete service, of greater liquidity proved by the Senate Banking and
country to $61.3 billion. It is They have multiplied 18 times in for our depositor, of more cash Currency
Committee
and
was
40 years.
They have quadrupled reserves behind his
interesting to note that the per¬
deposit and of awaiting action by Congress at the
in the past 20 years. They are to¬
sounder and greater diversity to
centage increase in mutual savings
time
of
adjournment in
July.
banks was 7%, which was nearly day approximately 300% of what the investment of his funds.
Plans to reintroduce the branch
identical
to
the percentage
in¬ they were just ten years ago. This
This
favored
Committee believes that bill
btv the American
phenomenal
growth
of
savings
crease
made by the savings de¬
commercial
banks generally are Bankers
Association
are
being
points up the importance to banks
partments of commercial banks.
looking with growing favor on made for the new Congress, and
of aggressively seeking a
larger
savings deposits and are more and careful attention will be given to
share of this business.
savings
brought
Comptroller's
Legislation,
obtain
to
facts
Com¬
empha¬
Our be eliminated.
savings and loan associations.
has
these
and
protective
the American Bankers Association
year
Service
Postal
Congress
doing business with a bank. Gen¬
corporate bonds made
erally, commercial banks cannot associations. The state supervis¬
by the National Bureau of Eco¬
profitably compete on interest rate ors' bill would permit Federal
nomic
Research.
The American
due in part to the different condi¬
savings and loan associations to Bankers Association
1911.
end
Savings and
on
Branch
Association
to
keep be¬
fore the public the advantages of
tions.
Savings of the kinds here dis¬
sized
favored by the American Bankers
need
we
billion.
cussed
of
associations
ings.
savings increase in
banks ; was
$4.1 billion for the 12 months end¬
the
mittee
competing with savings and loan
tions and legal requirements un¬
cussed are the most important that
der which we operate and to the
Of the total growth during we think of as
personal liquid sav¬
the past year, the largest dollar
greater cash reserves and more
ings.
Savings of the nation in
volume of liquid savings has been,
these forms now total almost $200 liquid investments of banks. Nor
do we propose unprofitable opera¬
in banks.
The combined total of
hand
before
means
turn
the
and
"Savings" booklet sug¬
methods of reaching the
public for the promotion of thrift
and the encouragement of savings
accounts.
To be incorporated in
paring
gesting
national
and
in
stronger banking institutions.
and
and
of
Committee
at
increasing
tne
breadth
and
federally chartered depth of savings in banks.
By
savings
and
loan
associations. breadth, I refer to the effort to
They had an increase for the year see that thrift services are avail¬
ended
June 30 of
18%, with a able in every nook and corner of
in
enthu¬
siasm,
Our
Mortgage Development has aimed
local
which
economy,
in savings in the past year appears
may
with
greatest percentage growth
of Savings
Promotion
year
our
It is
nation.
sound
more
type also increased 7% during the
economic wel-
years,
would
the
The Postal
in
at the
last
Congress a bill was in¬
by Senator Bennett of
Which
abolishing
and
provide
It
was
primarily at that time to
was
intended
encour¬
thrift among immigrants, who
had no knowledge of banks, and
age
with
the
hope that
they
—
than $14 billion for
banks—300%
of
the
end
of
represented
25%
of
at
were
and
total bank loans.
As the relative volume of mort¬
gages in the
Savings System
1910.
for
System.
1945
more
commercial
the
banking system
Division
increased
in
mortgage
Formerly,
this
est
known
The
as
name
its
loan
grew,
inter¬
activity.
Division
was
the
Savings Division.
was
changed
to
its
these people present form in
1948.
Joe
Jones,
Number 5168
Volume 176
the
Chairman
able
very
.
.
.
of
The Commercial and Financial Chronicle
our
mortgage panel, tomorrow after¬
noon is the new Chairman of the
Committee
Heal
on
Mort¬
Estate
gages.
past year has been one of
transition in the field of housing
credit.
mortgage
two
Regulation X and the
regulations of FHA
of
years
After
Ga.—The Directors
ATLANTA,
The
ana
of The Trust
have
Company of Georgia
recommended
stockholders
capital of $2,000,000
and
to
point
in
our
when
economy
ex¬
cessively liberal credit terms for
mortgage loans are again possible.
This comes at a time of relatively
high
building
costs
and
after
a
housing building boom of several
it is to be hoped that lend¬
years,
ing institutions will exercise
in
the
extension
period
of
credit
care
the
in
ahead.
The
Committee
Real
on
Estate
$4,000,000
$2,000,000
tal and
on
a
—
from
declaring
their
to
the
that
companion
VA, these controls have been
suspenaed.
This brings us to a
creasing
Trust Co. of Ga.
May :
Increase Capital
present
be increased
transferring
surplus to capi¬
by
a
stock dividend
share-for-share basis, it was
announced
John
by
Chairman, following
A.
Sibley,
the Board of Directors Nov.
Subject to
the
-20,000
11.
the
present
shares
of
stock to 40,000
.
value Stock.
,,
outstanding
$100
shares of $100 par
consider
the
at
proposal
on
Jan.
has
ings
charter
necessary
ments.
new
It
is
stcck
holders
proposed
be
of
amend¬
that
issued
record
at
close
approval of the
these
changes
of
in¬
tal
in¬
plus,
crease
would
the
effected
be
by
funds,
undivided
profits
out
occasions
last
is
<if
Admit F. D. Frost
Mr.
and
LOS
field
such
line
year.
with
hill, Noyes & Co., members of the
New
the,
York
will
make
Los
the
com¬
increase
this
of
in
D.
earn¬
in
ANGELES, Calif.—Francis
Frost, Jr., on Nov. 15 will be
admitted to partnership in Hemp¬
account
of
since
pany
of
Angeles.
of
meeting
Stock
Nov.
took
■
This
He will retire from
in
Shields
'■
.
3 With John G. Kinnard
to
The
Financial
eastern
States."
.
the
South¬
John
G.
are
now
Kinnard &
South Seventh Street.
•
Mortgages has workea
consist¬
ently to urge less domination of
mortgage lending by Washington,
except in time of emergency; has
that
urged
reliance
more
put
be
private industry to care for
the financial needs of its customers.
upon
We have urged
made
of
that FHA be again
independent agency free
an
political
urged
as
that
control.
FN MA
support
a
except
as
of
tion
of
and
bur¬
While
than
"The Best Possible
Currency
Legisla¬
Housing
on
1952.
voted
the
was
Banking
Committee
was
That
testimony before the
cur
Senate
credit,
standby
emergency
organization.
den
housing
to
an
have
We
abandoned
be
more
money
Telephone Service
thought desir¬
able for mortgage uses m the bill
we
finally passed,
as
to
that
see
pleased
we were
Congress reduced
by
at
half the appropriations requested.
Results have not been what we
have
wished, but at times
have
we
"
We
the Lowest Cost"
to make progress.
seemed
have
fully
Twenty-five
protested 'unsuccess¬
correction
of
artifically
the Bell
pegged interest rates on FHA and
VA
loans.
rate
the
has
No
doubt
the
4%
VA
world
important bearing on
availability of funds for vet¬
October 20, 1927,
System put into writing, for all the
to
see,
the
basic
principles for the
an
loans.
erans'
years ago, on
There
be
can
management of the business.
no
doubt that bankers generally wish
to
help the veteran, but
also
be
feel
the
that
VA
bankers
should
The
not
arbitrary in the matter of in¬
terest
It
to
rates.
is
at the
interesting
vention,
special committee
a
consult
to
Bureau
erans
with
for
the
interest
on
view
a
with
to
of "the best
rates,
The
high
a
promise
possible telephone service at the lowest
cost"
intensifies
come
true.
the
upward
time,
same
was
ad¬
We cannot but feel that
justment.
At the
right
a
in the Bell System to
everyone
standard of conduct for the business.
Vet¬
discussing
possible
a
expect from the company.
it commits
that
note
last American Legion Con¬
formed
neOT
to
policy tells the people what they have
the effort to
make that
promise
flexible interest rates in line with
conditions
current
would
The
help
materially to resolve the problem
of
for it,
Conclusion
This
is
obviously
not
and those who
use
the service, will bring still
greater progress in the years to come.
full
a
never-changing policy of fair treatment for
those who invest in the business, those who work
mortgage loans to veterans.
register of the work and influence
of
the
Savings and Mortgage Di¬
vision.
Other and special commit¬
tees
at work
are
lems.
on
special prob¬
useful
publications
covering all
phases of savings—types, promo¬
tion, costs; and a variety of books
and
pamphlets on bond invest¬
Many
available
are
ments
and
published
to
you
mortgages
this
preparation
past
year
or
The Division
now.
in
is
fortunate
in
energetic
staff
who
are
needs
and
new
respon¬
savings
banker.
the
new
sibilities
We
of
want
develop
the
to
work
savings
expanding
the
having
develop
on
We
sound
alert
with
the
to
of
help
to
for
programs
to
and
banks
want
the
investment of those funds.
It
of
might be of interest to
to
you
and
note
that
the
Mortgage Division
being
just
organized
50
at
years
the
many
Savings
into
ago.
It
Convention
was
of
Orleans, Nov. 11-13, 1902
—almost 50 years ago to the day.
The
growth
of
savings
in the
banks
last
of
half
pressive.
just
as
the
country
during the
century has been im¬
May
that
growth
be
spectacular in the 50
ahead, and may
funds wisely.
we
Responsibility to
TELEPHONE SHARE OWNERS
TELEPHONE
"The fact that the
"The fact that the
ownership is so wide¬
spread and diffused (there arc now more
Many years ago, in its annual report to
share owners, the company's responsi¬
than
bility to its employees
responsibility for a
large part of the telephone service of
the country rests upon the American
Telephone and Telegraph Company
1,100,00o
share
owners
of
the
American
Companies imposes
on
the management an unusual obli¬
gation to the public to see to it that
Telephone and Telegraph
Company) imposes an unusual obliga¬
tion on the
management to see to it
that the savings of these people are
secure
and its Associated
times be ade¬
quate, dependable and satisfactory to
the
user.
years
handle those
"Obviously, the only sound policy
obligations is to
continue to furnish the best possible
that will meet those
telephone service at the lowest cost
sistent with financial safety."
and remain
so.
"Payments to share owners, limited
reasonable regular dividends, with
the right to make further investments
to
came
the American Bankers Association
in New
Responsibility to
TELEPHONE USERS
the service shall at all
you
sound
a
basis in
country.
able and
an
Responsibility to
several
—
con¬
on
reasonable terms
quires
new money
the interest
are
to
and
employees
as
as
the business
re¬
from time to time,
of telephone users
well
as
share owners."
these words:
EMPLOYEES
'
-
"While the Bell
was
expressed in
«
-
System seeks to fur¬
nish the
public the best possible service
policy which rec¬
ognizes This obligation to the public
recognizes equally its responsibilities to
its employees.
at
the least cost, the
"It is and has been the aim to
pay
salaries and wages
in all respects ade¬
quate and just and to make sure that
individual merit
recognized."
Chronicle)
MINNEAPOLIS, Minn.—Elberta^
A. La Hue, Samuel J. Pitulla, and
with
the
on
an¬
Jess T. Porteous
of
Co.
'v
>
,
panding
economy
&
14.
x"
banking needs of the rapidly ex¬
re¬
Exchange. He
headquarters in
his
partnership
1933,
policy of the Trust Com¬
Georgia
13
Hemphill, Noyes to
-
in
(Special
sur¬
and
the
nounced
capi¬
including capital,
surplus
The
banking
growth
Georgia will be $4 million and
perintendent
1933,""
"Surplus
increased
place in June
made,
are
the surplus $6 million. Total
Banks,
and
increase
Company entered the
mercial
be
; *
,
profits have grown in
from
$1,784,000
to
nine
©n
of
business Feb. 18, 1953 in propor¬
tion to shares held at that time.
After
been
Trust
share¬
to
the
the
the capital of the Trust Company
.
time
$9,436,000.
and at the same time to authorize
the
Secretary of State and State Su¬
of
that
1953,
first
explained.
undivided
will
million.
since
stock
Sibley
their
13,
the
is
capital
meeting
contingencies
of $12
excess
"This
_
of Georgia will be asked to
annual
for
serves
in
value
par
Stockholders of the Trust Com¬
pany
meeting of
a
(1829)
is
discovered
1
*»■.
and
.
.ill
affiliated
Co.,133
14
(1330)
The Commercial and Financial Chronicle
Thursday, November 13,1952
...
part of the story, only part of the
key.
Relating the News
To Youi Investments
news
and hence is relevant to
stock
has economic origins,
investment; and stresses its interrela¬
On
just
has
news
much
as
direct
a
bearing
individual
your
vestments
investments,
it has on the in¬
as
of
the
corporation
ticker
board
di¬
the
we
have
in
is
garding
ments
read
yes,
all
story,
birth
and apart
from
sider
whole
news
the
Donald
I.
Rogers
picture, the overall economic cli¬
ask
you
is
investments?
my
two
has
news
fact:
is related;
is
economy
news
eco¬
problems,
further
step
its
let's
and
con¬
All economic
something bad in
something good
mate.
ques¬
anywhere in the
for the entire
good
problems
and
have
we
things.
the
A
to
So. using that as a basic prem¬
I
ise, let's explore the stock mar¬
invest¬ ket and
your investments.
how do
is
or
The
a
good because of
tion
combination
a
fuels
tions.
by
equal
to
us
in.
It's
the
which
lives and
highway,
line.
by
It
also
that
Your
air.
aren't
and
the
profit is to be
upon,
regula-
t i
s
corporation
your
you
with
considering
eye,
Is
your
of
com¬
the
to
news
my
ments?
risk
At
try to
and
news
investments.
your
cannot
speak
known
in
(soon to be known
I
one
bad
guesses
chase of securities.
of
the
gentlemen
barnstorming
the
on
'(
many
who have been
the
country in
recent political campaigns,
vise you:
pur¬
So, like
don't do
as
Pd/adas
say.
I'm
somewhat
mine,
of
one
like
the
regret
ferent
had
New
time who,
our
works
say,
on
a
large
dog.
traded in the
And the securities
exchanges
are mere¬
ly little barometers measuring the
economic health of the nation and
the world;
The
great,
other
stock
a
is
usually
determined
his
of
one
had
sell
or
something
something
for
that
sale
someone
else has produced.
Sales,
the
major points
then, hold part of the
an¬
answer.
the
eral
article, fresh from
foray into the Fed¬
economic
John
S.
Burchmore
budget.
know
it's
payday,
your
could
"Don," he said, "I
only a couple of days
I
but
borrow
I'm
ten
bucks
broke;
to
lion
his
President Truman
four
save
and
half bil¬
a
dollars, but he couldn't
own
day
make
budget stretch from pay¬
And
when
I
payday.
to
charged
him
with
this
inconsis¬
tency, he showed why he's truly a
great economist.
He said, "Well,
after all, Truman has a lot more
money
to play with than I have."
But though I have not distin¬
guished myself by parlaying my
investments into a yacht or a sum¬
mer
been
mink for Mrs. Rogers, I have
a close follower of
the news
more
that
than
time
20 years, and mo.?1:
have
tried
to
inter¬
pret it.
So
let's
forget
my
investments
moment and get down to the
a
news.
All
News
Is
Relevant
First, let's start with the
premise
all
news,
exclusive of the
tnat
t*lk
eration
American
i-'ovember
by Mr. Rogers before the Fed¬
Women
Shareholders
in
Business,
New
York
City
of
7,
the
Federal
millions of home units?
about
rates
the
in
prise
a
price
of
about
decisions
the
on
Interstate
1952.
substantial
a
the
Defense
bag
of
How
freight
Commerce
moth
part
of
Agency
to
new
the
com¬
of
cement?
olans
industry, which will
the
How
Civilian
decentralize
call for
industrial
mam¬
buildings
and hundreds of thousands of new
homes?
How about
upheaval in
is
our
the
own
economic
cities which
forcing residents to the suburbs
by the thousands and causing vast
building booms in reclaimed farm
lands?
News Outside Financial Pages
All
find
of
these
stories
you'll
find
the financial pages.
And
the financial pages
themselves,
you'll find stories about the con¬
of
the
about
Mutual
about
news
of
the
Plan.
of
You'll also
domestic
our
greater
find
Eu¬
the
or
Atlantic
the
Schuman
news
about
of
plans
economy;
old
to
the
Union
North
Treaty Alliance
govern¬
carriers.
various
states
and
than
con¬
struction plans for
new highways,
airports, throughways and public
projects, about the plans of Amer¬
ican industry for investment in
plants and equipment.
But, of course, all this is only
government
Happily,
transporta¬
made
from
crudest
beginnings in
ancient days have continued
ing the
Interstate
dur¬
administration
successful
the
Commerce
Act
by the Interstate Commerce Com¬
mission in its hall-century of reg¬
ulation.
have
tion
But, in recent
been
to
there
years,
misgivings,
seemed
regula¬
as
into
evolve
coor¬
dination
of competing modes
of
transport—even into management
payments, of of the carriers themselves. We all
the agricultural sup¬ share in a public sense of satis¬
systems.
all
has
successfully administered the law
without attempting to run the car¬
None of this
direct
is remote.
news
bearing
on
It
every
riers.
to
We are
administer
the
It should step in to pre¬
abuses,
right
to
and
hold
future
share of stock in
a
that
cor¬
poration, it has direct bearing
It's
you.
your
that's
money
on
the
ignorant, to make the
fair, honest conduct, and
rules of
enforce
them—but
to
not
apprehensive for the
are
because
failure.
prevent
I
illustrate this by recall¬
ing what-happened in a recent de¬
may
bate
in
where
the
British
Laborite
a
Parliament
orator,
in
I've
said
before, nearly
virtues of socialized medicine. He
was
sorely
trained
beset
by
heckling
Tory
some
from
is economic
or
has economic
origins.
benefits
of
paternalistic
govern¬
ment
medicine, he could not help
mentioning the improved plight
British
of
tones,
mothers.
he
Britain,
said:
In
today
And
Today there
why?"
News
endless discus¬
innumerable
voices
and
Security
affect
can
a
midwest
cor¬
with
all
When the M. S. A.
Congress.
spends
billion
therefore,
dollars
in
France to build jet
planes, as an¬
nounced
two
weeks
ago,
.that
money
naturally
comes
from
American taxpayers and the mid¬
ful
corporation, if it's
is right up in
a
one,
line
when
payments.
it
But
success¬
the
to
comes
there's
front
making
more
for
the jet tires, her fuel for the
tanks, the screws and rivets,
the paint and chemicals?
Yet
even
volved.
civilian
do
for
more
Where
than
will
France
If the jets
are
is
in¬
build
built in
that
normally produce
goods, what will France
civilian
goods?
import them from us?
will she
this
use
Will
she
If so, what
for dollars?
If
we
are
occupying
the
are
French industry with
production of jets and there
no
civilian
goods
for sale
in
the dollar market, France can
get
Continued
possible
what
difficulties.
All
You
threats
our
I
and
what lies
avenues
where
talk to bills in
mere
do
wonder,
ahead.
re¬
shouted:
"private, enterprise."
It
is
anti-climactic
that
now
known
to
government
to
produce
remark
was
never
anything.
We
energies
to
and
for
seek
are
abandoned
least
at
real
know
needed
to
protect the successful past and to
foster an
even
more
successful
article of
or
by
proven
our suc¬
future
our
is
or
program,
be
be
to
enjoyable, is this:
should
No
point
or
adopted
of
im¬
or
posed merely upon the decision of
the
who
one
it.
This
the well-known
proposes
goes further than
constitutional
tion
of
principle of
separa¬
or of prohibiting
from having the ciual
prosecutor and judge. It
powers,
person
role
of
that
means
with
the
ploring
no
government agency
duty or function of ex¬
avenues of improvement
should at the
power
future.
if
as
policy,
view
one
face;
we
principle,
cessful past, and which cannot be
What
open
are
improvement?
same
impose
to
a
time have the
program
upon
the
in¬
volved in it than taxes.
Where
will France get her
steel, her iron
ore, her molybdenum, her rubber
of
degrees of seriousness—
In many ways.
a
existence
changes are being con¬
sidered, and these are put forward
poration making automobile parts. ranging from
half
the
of
manner
least
hecklers
the
of
faith, which is
are
alleging
problems
a n d
You may wonder how expendi¬
tures
of
the
Mutual
Agency
spectful
of the
one
Another Principle
raised
World
Whereupon
in
bonny ba¬
more
before.
ever
quivering
"Why,
have
we
bies than
Another
sions
well
the
galleries, which finally proved his
undoing; for, as he expounded the
at
all
de¬
fending its program, extolled the
certain signs of
of
What Lies Ahead?
As
run
the game or to insure success and
period.
stake.
west
suc¬
to
wrongs,
educate the
naturally concerned
the fruits of this
preserve
cess,
factories
the
come
Federal
age
Federal hydro-electric power
rfbw
cement
municipalities which, more
anything else, reflect the
close
the
was
program, of projects for re¬ faction and pride that the Inter¬
claiming waste lands or building state Commerce Commission has
these jets?
industry,
about
the
industry itself, about the
story; this
tion has thrived under regulation,
and
the
tremendous
advances
of
to
port
struction
new
"Herald
news
jet
outside
of
to the
one
day's
find
Payments
ropean
on
bonds
Practically
about
Commission, for freight rates
He could tell
how
how
until
Wednesday?"
*A
you'll
Housing Authority with its plans
for
page
expenditures
States is an old
under
certain
law, and
to
United
relating to regulation.
Security Agency in Europe, you'll
find news about tariff
discussions;
news
But
climate."
role
proper
the team.
transportation
corporation in America, and if you
If you own stock in the A. B. C.
try.
this wonderful
his
for
the
freely
the
vent
railroad
in
along with
go
Government should be the umpire
referee, and not the captain of
first branch of commerce to
news
from
you'll
revisions
produce
Administration, by Cement Corporation, you
might
exercising a little common sense, think that
perhaps your interest
could clip
$4,500,000,000 off the in news should end with the items
Federal
budget, when the tele¬
concerning the construction indus¬
phone rang. It was the author of
for
Tribune,"
flows
"economic
back of the paper.
Look
in
any
they
dif¬
taken
the
scattered
for
about how the
of
it
by
the
amount
of
the corporation will earn.
Corporations make money because
money
newspaper.
I swer. Will the corporation whose
reading one of stock you hold be able to sell its
studious articles the products? The news should reveal
and
is
trade
You'll find the
operation
value of
York
afternoon
heart
to
This
just finished
his
to
to
of
brilliant
most
economic writers of
(
friend
a
stock
Wall Street—is merely the
on
tail of the
the
I do; do
the
other
the
or
am
poor fame, if any, comes from the
fact that I
hold
the record for
making
the Ameri¬
as
Exchange)
market—his
fairly
Street, my
Wall
Stock
can
great
any
continents?
due respect to my col¬
league, Mr. McCormick, President
of
New
York Curb
Exchange
it
Actually
with
authority for, though I
well
apply
when
between
With all
being ponderous, I'll
how I think you
you
analyze
many
to
of
tell
barriers
confession
a
of
,
relate
by
to speak, by admitting
so
do
or
are
Regulation
world of reduced tariff
new
n
great.
a
its
going to be able to survive
pany
in the
o
Faith
start right out
not
limits
certainly
of
well
as
ment is to administer the
effects
and
suggested
any
discussion
we
that
interest
taxed
at
re¬
broad propositions or convictions.
The first of these—by far the most
important and all-embracing—is
trans¬
portation
in
in
stake
much good if all the
perspective
may
including
sound
of
Articles
We
cli¬
of,
look
tests
this
the
And
first
trans-
your
away.
apportion
changes.
faith,
no money
sales
pipe
in
buy the produce your
company manufactures. And even
voluminous
to
as
lu¬
of
to
most
so
basic philosophy and proven
principles which ought to be the
equipment,
Sales can't be
good when there's
around
law
the
some
portation
corporation
your
by
by
one
transporta¬
the
with
economic
breathes.
of
most
the
of
the third point,
importance
two.
much
Climate
industry is
users
rail,
and
bricates
This leads
of
petroleum
largest
—
water, and
sales and efficient opera¬
Economic
administer
to
original Transportation Act.
of the
are
is
manage
transportation
value
of good
of
to
traffic. Foresees possible
reorganization of the ICC. Urges
turn to first
principles laid down in
established
stock
role of Government
proper
not
manage, plan and protect. Cites encroachment of the ICC into
field of management, and contends it
displays tendency to coor¬
dinate various forms of
that
company's earning9
its earnings-potential.
Earnings
of
Belnap,
the carriers, Chicago attorney claims, in
recent years, climate of
opinion in government circles, out¬
side the ICC, has fastened idea
government's role is to initiate,
industries, of the
being done to solve
are
long-range health.
economy.
important
And
two
other
r
most
more
one
an
Stating
news
execu¬
about
news
the
of
far
mate
there's
economic
a
you'll
the surface of the
find
the
them.
or,
one
part of the world's economy
is bad for the whole economy; and
whole business
What
Bolivia,
or
Korea—if
about
since
in
proceed
Naturally
Iran
you'll
Now,
as some¬
tions:
eco¬
Whether the story
politics, about
nomic problem.
our
economy,
in
even
thing separate
the
from
is about
scratch beneath
re¬
various
things that
because
springs
news
tionalism
invest¬
own
log¬
out
race riots in South Africa,
about
ideological differences, about na¬
of
greatest
failings
your
that
follow
nomic origins.
you
room.
one
fire
in¬
and
on
Thus
just
Most
tape
of
think
bearing
a
ically.
machine in the
T
Let's
the
before
police
of
run
has
read
vestments.
ex¬
ecutive sitting
rectors'
general
news,
of your
pages
find
tives; you'll find
You'll
and
Attorneys, Chicago, 111.
you'll
nettle
The
By JOHN S. BURCHMORE*
Walter, Burchmore
value
plans
of
various
corporations,
you'll find the expressions of hope
or
despair from
their
officers.
Eisenhower Administration.
on
much
as
the financial
newspaper,
Says following of news
particularly important with advent of
will be
have
about companies and their
fare and hence security values depend.
investor
won't
it could have.
as
is economic, or
tionship throughout all spheres. Asserts news scrutiny is key
to the general economic climate on which corporations
wel¬
by
Manage the Carriers?
are
good, its earnings won't be as
good as they should be, and its
Iribune
Financial and Business Editor, New York "Herald
Editor maintains all
inefficient firm, if its officers
not
DONALD I. ROGERS*
By
Should Government Regulation
A
corporation
can
have
the
largest sales of any company in
the whole industry, but if it's an
Analysis of specific suggestions
or
proposals cannot
short
talk
other
ploy
of
hand,
our
this
we
devotion
to
conceivably,
business
may
in
On
better
a
the
em¬
a ringing address
private enterprise
an
favoring
managed
former
done
time this afternoon than
simply to hear
of
or,
be
kind.
a
attack
on
(Surely, the
applauded, and
the latter would deserve groans or
general walkout.) Rather, I pro¬
to
consider
with
you
some
possible guides by which to meas¬
ure proposals which are made—to
remind ourselves, if you
please, of
*An
address
by Mr. Burchmore
at
tion
the
Transportation Session of the 32nd An¬
meeting of the American Petroleum
Institute, Chicago, 111., Nov. 10, 1952.
is
You
made.
all
the
know
classic remark of the young bride,
having painstakingly prepared her
first plate of biscuits.
As she
her
passed
them
to
said: "Take your
big
government-
economy.
would be
a
pose
transportation
agencies
for
whose improvement the explora¬
I
believe
nize that
that
the
the
guests,
she
pick."
must
we
cook
likes
recog¬
her
own
cooking and is proud of her own
recipes, and the agency which has
conscientiously worked out
tion to
a
to
the
see
solution
government
power
upon
solu¬
tried.
But
if
processes,
in
the
of law is to be put behind
proposal,
until
a
problem naturally wants
it
should
not
be
a
done
that proposal has been passed
by
minds
which
are
inde-
nual
on
page
37
Continued
on
page
34
Volume 176
Number 5168
.
The Commercial and
.
.
Financial Chronicle
(1831)
nation of these controls and taxes.
By EDWARD T. McCORMICK*
President, New York Curb Exchange
McCormick
v.'
perity.
tion
termination of wage
and price controls,
There
I
am
last
at
this
time,
detail as
to go into any
sure,
the
to
need
no
results
the
of
Tuesday.
tho¬
roughly
f
miliar
propulsion
occurred
air
barriers
introduction
essing
a
of
and
foods
our
tenances,
production
and
—
Every
too
to
week,
almost
each
has
the
this country, new discoveries,
products,
of
if not
the
bal-
of
four
stirred
What¬
the
of
istration to
be
a
task
of
Herculean pro¬
to
halt.
a
It
will
assert themselves.
seen
itself.
Through
of
immediately
address
understanding
an
business policy, and the
appli¬
tendencies
additional
this
tures,
able,
for
end
the
of
one
new
do
under
shoulr
country
in
excess
consumers
cur¬
our
free
economic
system,
should in itself bring prices down
without
the
necessity for
prico
the
controls.
Admin¬
not
Reduction in Spending
Directly tied to this problem of
stabilization, and control of infla¬
tionary factors, is the question of
re¬
Barring unfore¬
defense
cases,
rently to absorb them. With this
supply of goods constantly in¬
creasing, competition for buyers,
to it that these in¬
see
will,
flationary
be
some
capacity of
expendi¬
be
reduction in' governmental spend-
attain¬
has
shown
Continued
on
page
to
production
and
Each
new
methods
fresh
lines
of
idea
has
curiosity
and
new
intelligent
opened up before it new vistas of
invention. Each improvement in
production technique has invited
the effect
ever
efficient
more
lesearch.
ance
McCormick
primary tasks of the
in
amount,
can
brought to light somewhere in
—
years.
T.
and
of
of the
day,
may
balance of the
E.
earners
the
time supply a great amount
goods to our own people, an
same
detail.
case
f°r
wage
assist¬
at
our
numerous
for
week
W
our
in the
scene,
and
other
of
be,
nj?*
the domestic
economic
allies,
our,
frozen
of
host
a
achievements
mention in
s
television
the
-
on
provide
to
ance
homes—the discovery of penicillin
and other anti-biotics—the proc¬
glum
orhappycoun-
Iff f
military
forced,
the
—
early
quired at that
mm
which it
production of synthetic goods—the
nesday morn¬
ing,
and
ac¬
,n>.
Korea that it is
able, with
great productive
capacity, to
deliver goods to our
its
transport—the
Wed¬
as
last
time
to
piercing of sound
-
with
them
as
a
has
since
and
reasonably
be expected to increase up to the
middle of 1953, the inflationary
spiral which has so dangerously
doubt
that
monetary
measures
portions, but it is a task to which
the Administration
should, and no
during the past fifteen years—the
revolutionary application of jet
cast
us were
All of
ballots
sound financial
will
/
achievement
and
conservative
has immediate world-wide
reper¬
cussions. To cut this Gordian knot
corporate dividends, and shortening of capital gains
is
fiscal
of
investors, but on the international
scene
as well, since
our
any instabil¬ affected
economy
over
the
ity in the economy of this country past years appears to be coming
business, and retention of high levels of taxation.
Maintains while we may have periods of
"shaking out," there
will be no serious depression. Calls for elimination of double
holding period.
its
stability is essential not tion expenditures
interest cf
friendly
more
pass¬
to
has always supported, this Admin¬
primary problems of istration is equipped to meet the
the new Administration will be to
challenge.
develop some satisfactory means
Although the Government is op¬
to control the
inflationary and de¬ erating at the present time on a
flationary cycles of our economy. deficit basis and defense produc¬
only
climate for
on
industries
One of the
*
pursue a "peaceful" course, with continued pros¬
Expects natural death for Excess Profits Tax, relaxa¬
tax
and
actually suffer with the
ing of controls.
Economic
predicts President-elect Eisenhower and the
Congress will
or
problems
companies
may
Youi Financial Returns
Mr.
cation
Some*,
Election Returns and
15
vote
individual political phi¬
and stimulated
rivalry for further
losophies, however, I think that it improvements. For such is the na¬
most important for each of us ture of our free
competitive sys¬
to keep in mind the sage observa¬ tem.
upon
our
is
tions
enunciated
publican
dates, that
the
and
must
we
swords
short
act
for
party
as
remember
lay aside
now
raised
we
months
should
by both the Re¬
candi¬
Democratic
and
that
ful
few
a
advocates
we
It
and
are,
is difficult for
vestor, knowing
it
history and the
essential
the
and
world,
than
in
the
trying days
and
struggle that lie before
I
trust, of
will
nature
make
the
of
guarded
remarks
any
concerning
stock
the
excuse
I
may
the reaction
of
business
in
market
or
general to the recent election. My
knowledge and experience in no
qualify
way
crystal-ball
While
and
the
election
itself
the
the
a
future.
the
of
market
next
as
to
keep
that
is
us
this
though grown
proportions
and
a
to
massive
position
leadership in world affairs, is
adolescent
an
far
so
us
constantly
country of
ours,
tive
of
still
as
its produc¬
are
potentialities
concerned.
We still have many a step to take
before
our
seven-league
boots
carry
of
us
to
the
end
of
road
our
industrial development.
Pessimism Twenty
Twenty odd
remember
well
many
investor
an
willing to give up the ghost.
Many believed that they saw the
to
financial
our
tion. We
ly
the
on
wall
decline
pointing
as
a
have, however, not
bounded
back
from
na¬
mere¬
the
worst
financial depression in our
history,
but in the process have
fought
and
the most savage of world
conflicts. And those who
twenty
won
years
their
before
had
investment
despaired
prospects
of
have
found for the most part not
merely
a resurgence of their
capital, but
an
endless stream
of
successful
We
have
of
new
sources
been
witnesses
to
the remarkable
surge of scientific
talk
Federation
by
of
Mr.
McCormick
Women
American
Busi"e«;s,
November
7,
international
be
on
able
to
peaceful
a
ing the coming four
more
money
situa¬
is
coming
Con¬
guide
this
dur¬
course
to town
While
years.
may
well
have
temporary
periods of "shaking out," I can see
serious
While
before
Shareholders
New
York
1952.
the
in
City,
depression confronting
there
from time to
that
four
will
tion
be
reactions
time, I firmly believe
hence
years
find ourselves in
shall
we
financial posi¬
which we
a
stronger that
that
presently
enjoy.
fairly generally agreed that
the new Administration will
pro¬
In
the
this
areas
served
by the
sign, there is
more
more
than 700 loan ofhees displaying
money
in circulation—more than
a
quarter of a billion dollars.
It is
vide
to
climate
a
business
held
sway
While
the
old
far
than
that
will
confidently to
of
former
and
to
a
no
policies
as
amicable
attitude
problems
when
they
Washington. How
will observe
tangible re¬
from such a
change in at¬
is
anybody's
eye on two dates
when
future
the
wages
to
keep
controls
on
expire, and
is fed into the
streams
of
commerce
through
averaging $297. These loans
families
help them with obligations already incurred, and
to
therefore
are
not
Merchants and
are
generally made
to
inflationary.
professional
men
find their "slow"
accounts
being liquidated with funds made available by the Beneficial
Loan System. This
re-instates
helps them
accounts
to
save money, means
good standing and
saves
less work,
time and
trouble all around.
in the not too
April
—
sum
guess.
However, it might be well
distant
vast
forward
we
mosphere
This
small loans
to
stringent controls,
presented in
sults
an
has
return
period of relaxa¬
more
its
which
look
can
a
tion
friendly
past 20 years.
be
laissez-jaire
business
toward
more
the
over
there
such,
30, 1953,
prices and
June
30,
1953,
when the excess
profits tax comes
to an end. I think we
can look for
the wage and price controls
to be
The families thus aided also find that Beneficial Loans
not
as
only helpful with their budgets, but bring
well. A
Beneficial Loan is for
a
are
of mind
peace
beneficial purpose.
terminated or, at least,
materially
reduced, and it is reasonable to
assume
that the
which
has
complex in
in
porate
excess
proved
corporate
efficiency, will
a
natural
and
be
death.
continue
to
an
waste
unfair
be
cor¬
and
to
ffoaai
Gnpowtwn
in¬
WILMINGTON,
DELAWARE
die
must, how¬
selective
in
the
market, for some companies
and
industries will benefit far
more
Beneficial
induce¬
allowed
One
be
to
deterrent to
a
initiative,
to
profits tax,
itself
administration,
application,
ever,
A
will
gress,
country
ment
ventures.
all
Periods
have elected to the
we
soon
was
handwriting
men
are
Years Ago
years ago, you
that
Out
t
us.
definite-
important fact for all of
investors,
strained
no
few
with
tinuation of prosperous conditions
in the long run.
before
Shaking
tion, I believe that Dwight Eisen¬
hower, the man that we have
elected,-to the Presidency, and the
months
foreseen
ness, I can say, however, with all
the sincerity at my command that
I do believe there will be a con¬
The
ent
means
general finan¬
we
impact
securities
the
be
into
gaze
read
direct
on
over
cannot
to
me
our
This sign
our pres¬
Although dark clouds float on
the horizon by reason of the
pres¬
us.
that all those
course,
present
who made
men
powerful position in
be
anything but
to
Temporary
domestic
in¬
an
success¬
to
a
international
of
as
past
possible, and realizing
ent vital
united American optimistic as
people. This unity was never more cial future.
as,
me,
our
than others from the termi¬
Subsidiary loan companies operate under the following
Company... Lincoln Loan Corporation
...
Consumers Credit Company.
names:
personal Finance company.
AVorklngmen'S Loan association, Inc.
..
.
...
.
commonwealth Loan
Beneficial Finance Co.
Provident Loan and Savings Society of Detroit
26
16
The Commercial and Financial Chronicle
(1832)
Federal Reserve
Nature and Functions of
dents of those
of the
Banks, the Presi¬
of them,
some
the
From
Advisory
Council, and, of course, the mem¬
System
I want to
Federal Reserve System
and as "one of the world's great reser¬
of economic strength," describes its functions and activ¬
Stresses the supervisory service of the Federal Reserve
ities.
and says
System is
In
be
it
from
to
me
question
the
judgment of your officers in
inviting me to be with you again
uns
year. For
part,
my
to
use
any
lean
excuse
get back
to Nebraska is
good one.
thing
a
The only
troubled
that
me
about com¬
t
this
back
ing
me
will
What
They picture these banks in terms
the
of
L.
Robertson
1
a
r
falling would litter the
highways
pbont how the
dollar doesn't do
ple
I did
detail that people are
some
doing
much for the dollar
as
Finally, I decided
they used to.
as
talk
to
But I knew if
that, I should have to point
out in
not
much for peo¬
as
it used to.
as
about
in¬
institution
an
350
Omaha
from
each
minute
a
n
here, enough
reach
to
year
and
sit
we
to
But
there
of
the
First
Federal
Reserve
three banks
in my home
town of
loaded—with
the
the American scale.
usual
sense.
Cor it
are
even
entice
crime of
worse
trying
into
members
new
the
It is not
the
government
as
not paid
are
from government funds.
Reserve
turns
in
a
The people who work
not hired
it
services
organization
government
about the Federal Reserve will
to
needed
money
producing goods and
eral
of the
System.
ing along on an even keel, ade¬
quately supplied—but not over¬
tax money.
to charges of boasting, or
does
not
The Fed¬
operate
on
Quite to the contrary,
the
to
over
government
each year the bulk
a
of its earnings,
amounting last year to
turnover
than
more
quarter of
a
with
this
74% of the bank deposits in Neb¬
raska
are
in
many
of Nebraska's 277
tions
however, considera¬
are,
the other side.
on
in member
After
all,
banks. Also,
ries
Still
just four months ago.
other
Federal
fitting topic for
today.
One
is
months
the highest
that
derogatory
in
heard
things
recent
so
about
many
certain
parts of government that, in fair¬
ness to other parts of
it, something
ought to be said
the other side.
on
A second is that most
little
about
the
people know
Federal
Reserve
System in spite of the bearing it
has upon their lives and fortunes
as
of the world's great reser¬
one
voirs
of
economic
strength. And
a
third is that, being a native of
Nebraska, and having served on
the
Federal
nine
months, I think it appropriate
to
report
Reserve
to
you
on
Board
what
I
for
have
It is
sense.
an
or¬
Of
of
Reserve
everybody
knows
about the Federal
Reserve System. To almost every¬
course,
some
things
body,
it
means
ganization
banks
of
holding
of
resources
with
or¬
7,000 member
85% of the bank
the
gionally-located
Banks
nationwide
a
some
24
country,
Federal
branches
12
re¬
Reserve
(one lo¬
in
cated
Omaha), and a Board of
in
Washington com¬
of men appointed by the
Governors
posed
President
with
consent of
The
the
a
of
the
address
Nebraska
Mr.
regional
Bankers
The
than
are
American
and
Con¬
1952.
com¬
it, the System
see
of
one
of
the
best
illus¬
at
work.
democracy
of
20,000
Federal
Re¬
workers is directed by more
250 private citizens.
These
the
tors
I
as
team
serve
men
of
their
the
who
make
their
the
serve
Reserve
branches
tribute
—
direc¬
as
Banks
men
time
who
and
and
con¬
efforts
to
organization's perform¬
ance
efficient
read
the
and
roster
effective.
of
their
To
names
to know that they rank
among
its
Besides
responsibilities,
with
last
providing
elastic-
an
and serving as lender of
currency
resort, the System bears pri¬
the
posts
through which the System
keep an ear on the heartbeat
the nation.
They provide advice and counsel
that help the System in formulat¬
ing policy to keep that heartbeat
strong.
Nobody would think of labeling
these directors as government em¬
ployees, yet
I
would
that they
agree
am
sure
everyone
are
public
servants, for they have dedicated
themselves
function
to
in
carry
the
out
public
a
public
interest—
to
prevent excessive expansion in
the money supply and thus to curb
inflationary
pressures;
the
on
hand, to prevent excessive
in the money supply
deflationary
contraction
The
method
and
or
able to
all
women
of
of
months,
meet
the
the
Reserve.
But I have been
the
work
of
all
20,000
Federal
able to
many
of
them, including all the Chairmen
of
instead
the
of
stands, the next Senate
now
Republicans, 47 Demo¬
the maverick Morse of Oregon, who
now
declares
The
gentleman
himself
to
be
he
Should
an
undoubtedly
maneuvered himself into
elect
an
he
has
enviable position.
with
vote
to
independent.
figures
the
Democrats
Carlisle
when Congress convenes on Jan. 3
be
there would
tie which, however, the Republicans could
a
contracting
supply
of
or
money
and credit varies
considerably un¬
der different economic conditions,
but the Board's principal means
include selling or purchasing gov¬
securities
ernment
market
and
member
used
of
open
credit
through
to
discount
Changes in member
requirements must
reserve
also be listed
be
the
extending
banks
operations.
bank
in
credit,
rather
as
which
tool
a
can
affect the
to
availability
though it is a
even
inflexible
instrument
of
monetary policy.
Powerful though System actions
be
in
mitigating
swings and
economic
preserving the integ¬
rity of the dollar, I hope no one
is laboring .under the misappre¬
hension
that
With
able to
Bargeron
monetary
measures
bility at high levels of production
employment.
Morse
break
the Boards of Directors of the
Jan.
on
20.
Morse's
price
for
voting with the Democrats, Nixon would not be
tie and
the
give organization of the Senate to the
Langer is no more of
much, than Morse, but he still lists himself as
Republicans without the support of Langer.
a
Republican, if
that and
as
fully expects to vote Republican on organization if he
due, the Chairmanship of the Judiciary Com¬
gets his seniority
mittee.
is the lesser in offensiveness to the Republicans although
he has voted with them
Insofar
on
to
on
legislation only about
of
one out
every
times.
ten
I
as
know, he voted for Eisenhower but he traveled
praised him
the train with Truman through North Dakota and
the skies.
In
his
primary in June the Democratic leaders put
dummy against him and openly urged the Democrats to go
into the Republican primary and vote for him. Morse, on the other
hand, campaigned for Stevenson and said after the election that
up
a
Eisenhower and
thus be
Nixon had won by fooling the people.
It would
pretty bitter pill for the Republicans to swallow to give
him a place on Foreign Relations Committee in order to get his
vote for organization of the Senate. But it would mean no more
than
a
giving him
couldn't
He
somewhat better vehicle with which to strut.
harm on the committee.
a
cause
any
Langer's Chairmanship of Judiciary
nigh be impossible for the Republicans.
which
handles
Committee would well
That is the committee
Manifestly, the Republi¬
appointments.
judicial
alter
having had the Federal courts packed with Democrats
over the past 20 years, hope within the next four or eight years
to get some Republicans on the courts. That would be most diffi¬
cult with Langer as the Chairman of Judiciary.
cans
achieve the goal of sta¬
can
Vice-President Nixon
with
He
of
expanding the
Furthermore, this is the committee that handles immigration
are becoming more serious year after year. As the
problems which
Many other fac¬
tors, both public and private, play
important roles. Fiscal operations
five years
other
Federal
Government
are
a
ranking minority member of this committee, Langer in the past
has introduced bills to permit the entry of or to stay
deportation proceedings against 1,000 aliens, far more than any
Senator, including such Senators as Lehman and Ives of
York, who naturally are exposed to the efforts to bring in
aliens outside the regular immigration procedures. Although Lan¬
primary influence, especially with
the government's income, expend¬
itures, and debt at present high
New
levels. The activities of consumers
in
and
businessmen
particularly
decrease
their
which
of
increase
of
use
credit
spending.
underscores
coordinated
important,
are
they
as
their
rate
the
public
or
and
All
of
need
and
private
is to be assured.
omy
To
help provide
co¬
ordinated action, the Federal Re¬
System undertakes another
activity: developing information
adding to the knowledge and un¬
serve
derstanding of economic forces
and factors, both here and abroad.
One important purpose in provid¬
ing this information is to facilitate
the
job of the
the member
men
of
who
October issue
"Banking" magazine asked five
prominent economists to pick out,
for the benefit of busy
bankers,
the most important economic indi¬
cators
—a
available
sort
for the
to
of
"All
keep
placed
all
all the
Reserve
players.
reports
economic
panel.
Several other Federal Reserve sta¬
tistical reports were nominated by
or more of the economists.
one
Without
business
the
aid
concerns
of
banks
and
throughout the
Continued
on
naturalized
bills
and
covering
now
lives
as many as
in Arizona, Langer has
40 Pakistanian ship jumpers
time.
a
Not
more
than
a
handful of these bills have
ever
been acted
by the Committee. Langer after introducing them has not
pressed them. But under the regulations of the Department of
upon
alien is not moved
against as long as the bill is pending.
bill every two years an alien can be kept in
the country indefinitely.
This matter was quite an issue against
Langer in his primary campaign last June but obviously it was not
effective enough.
an
By reintroducing
a
One smooth way to keep him out of the Judiciary Chairman¬
ship would be to prevail upon Senator Wiley of Wisconsin to take
the Chairmanship of that committee instead of that of Foreign
Relations.
I said this would be a smooth way; rather, it would be
regular way and one against which Langer could not justifiably
raise a rumpus because Wiley is entitled to the Chairmanship of
either committee.
page
32
But it would not be
a
smooth way—I was mis¬
taken.
Wiley has been grooming himself for a long time to become
Chairman of Foreign Relations and although looked upon as "one
of
those
Middle
Western
months ago he married
internationalist
As
team
almong the ten top
four of the five
this
at
sources
American"
by
of
members
from
with
up
Federal
become
introduced
an
who doesn't have time
man
has
a
manage
banks of the System.
I noticed that the
a big way to
help Pakistanian seamen who jumped ship after
arriving in this country. In cooperation with a Pakistanian who
Justice
basis for
a
ger's bills have covered practically every nationality, he has gone
for
action if the stability of our econ¬
indicators
Now in these past nine
directors
Nevada
in
the count
As
forces.
were
service.
men
candidate
torial
Democratic candidate.
break
Three
the
McCarran, who ironically enough, as things
out, worked himself out of a Chair¬
manship by supporting the Republican Sena¬
turned
tions Committee.
they get from doing their country
have not been
ill
voting with the Republicans is membership on the Foreign Rela¬
responsibility for influenc¬
the supply, availability, and
of money and credit.
Here
the objective is, on the one hand,
their reward being the satisfaction
a
first time
mary
is
leading citizens of the nation.
They might well be called the
keymen in the Federal Reserve
System. They serve as listening
before
Association
of
industry,
observe
Robertson
.^incoln, Neb., Nov. 10,
fact,
trations
I
Banks, for most
reminder of the many
by
prosperity
constitutes
and
Reserve
people, is
vention,
advice
the Senate.
thought
Federal
*An
the
car¬
of the
the
of the economy across
System
fur¬
to
government
merce.
can
learned about it first hand.
Nature
ther
In
most
to talk about
me
have
we
the
make
reasons
Reserve System the
do, and how it
to
crats and
agriculture,
not
a
Re¬
have in the past, the ben¬
efit of your experience, and coun¬
sel, so that together we can work
for improvement.
amended
could
for
job the Federal
victory for the
20ryears, are in an awful mess in the matter of organiz¬
ing the Senate. In fact, to do it with Republicans they are faced
with the insufferable proposition of letting Senator Langer of
North Dakota, be Chairman of the highly im¬
portant Senate Judiciary Committee.
Under
the seniority system he would succeed to this
place, relieving the veteran Democrat, Pat
of you
and
that
familiar¬
discuss
me
with
than
more
will be composed of 48
banking and
banks
the
out
qualify for membership until the
capital requirements law was
are
let
Republicans, flushed
cooperation and support of the
System membership. And they I
hope you will give me, as some
alone
bers
System^
the
ganization that operates in a nonpolitical way to join the hands of
nonmem-
it,
has
serve
can
Yet
organization,
which
works exclusively for the people,
must be classed as "government"
There
moment
billion
a
dollars.
System.
or
that could accentuate
member; and second, that talking
pose me
public
your
working toward a single goal:
serving the public interest by
helping to keep the economy mov¬
Broken Bow—is a Federal Reserve
ex¬
of
other
employees, and they
the
of
best—integrity.
all, it is an efficient or¬
ganization of 20,000 people, all
in
none
side
of
namely, the Federal
I shall pursue
this subject despite the facts that,
first, only one out of three banks
System.
like
I
By CARLISLE BARGERON
The
cost
another less spec¬
is
on
dollar,
and
moon
less well known
tacular and
Re¬
the
a
ing
the
—
the
half-way back.
for
Nebraska
Min¬
to
neapolis with one, five, ten, and
;wenty dollar bills.
Or they see
the banks clearing checks, your
"hecks and mine — 20,000 checks
timately affecting both people and
Reserve
high,
stack
in
Pays Its Own Way—Plus
and
—
miles
a
which
I
about the dolJ.
they
bills to
currency
make
talk
could
of
amount
handle each year—enough
talk about?
I
finance.
and
Federal
of
Notwithstanding
provides for
System
business
American
the
was
question:
the
the
Function
Bank Examination school.
services
to
integrity is essential.
ity
Far
runs
them
organization,
any
lend its assistance to member banks in time
organization of Inter-Agency
there
tying
private, brilliance is desirable, but
in better position than ever before to
of need. Reveals
now
that
the News
that among
you
people
chord,
serve
Washington
Ahead
personnel. And
report to
those
Governors
of
Board
characteristic
efficient organization
voirs
of
all
single
defending the Federal Reserve System as an
Mr. Robertson,
•
the
all of its key
and
By J. L. ROBERTSON*
Member of Board of Governors,
of
bers
Thursday, November 13,1952
banks, the members
staff of
members of the Federal
The Federal Reserve
...
against
this
an
isolationists"
English
all
woman
these
years,
several
and overnight became
statesman.
gloomy picture of the Republicans' predica¬
are forces at work which may be the means
ment, however, there
of
ignoring both Langer and Morse. These forces would have the
Republicans embrace both Harry Byrd of Virginia, and Senatorelect Price Daniels of Texas. The former would be given a Chair¬
manship.
Inasmuch as Byrd assumes he is serving his last term in
the Senate, because of his age, he might very well be amenable to
such an arrangement. He did not bolt the ticket in
Virginia but
announced he could not support Stevenson.
Daniels, the new¬
comer,
for having supported Eisenhower in Texas, realizes he has
burned his political bridges behind him insofar as the Democratic
organization is concerned.
pendent in Washington.
He has announced he will be
an
inde¬
Volume 176
Number 5163
; v
The Commercial and FinichCial Chronicle*' '
(1833)
how to .disentangle dividend pol-
LETTER TO
THE
EDITOR:
:ts§ues.":tftatrsite'v^rjeUlidiT^.:%<'«**';>:? ft-..*■.'*•,
'^br '• wholly*-'irrelevant• -to'-'rft •» and;•hovy .much .the imperative desire
f0L earnings shouldgive>vay be-
C
fore such considerations
,,,
By WILLIAM A. LYON*
liquidity.- What I have to say to you
today swings on the pivot of those
V!
Superintendent of Banks, New York State
'
^
two matters.
A
OSI lit
Alexander
The
For
est
basis any
least
one
had
generations Quite .a few
savings banks had begun to prepare
against the day of higher
"* R"<mCi#t
this
,
dividend
requirements
m
lookingToward^
series - of
The New Investment .J•\,X-v"Jyith higher^were
Company - Vanced nor
.
•
port ant
events
../vhat, a magnificent
Especially
m[llion voting
elected
bovver Presi?.er)Jt _P£, the
w
is
to
33
the
and women
Dwight D. Eisenmen
coming
under
Federal- in¬
taxes for
/
i-U—
the first time,
-the
.-..ii.. *:
i...
il-t .1.
„i.
Jioc
liri^nuKtn^lij
•
rnvn4
frnm
savings banks to invest directly
in certain commercial bank stocks
rise
in
several
be
can
years,
further
active
introduced
session:of
in
the
next
Quite possibly led others to un
derreach on earnings and to be
content with their second best ef-
the
Legislature; and, forts.
;
v
third, the Department, after giv- '
At any rate, when the dividend
ing a good deal of thought to the ceiling was raised by the Banking
matter, has concluded that it is Board, and the-trend toward
Wm. A. Lyon
-mortgage
wvex
stocks for the first time in the 133-
history of savings banking in
New
York
State.
ings.
savings banks—52 in¬
to be more precise —
stitutions,
into
be
the
stock
u
4-
You
o
4.
in
years
authorities
valuing the
Sept.,
to $45 million
for
and continue: t° ask that
of 1% a year be
for
three
3
j.
it.
Dividend
the
an
-
these two eminent
Mac Arthur's
La-
may
with™
+
S<u° kfrir £Oings-on
**1
*
^ talked about
Sua+
footed
Gammon stocks
$10 million
on
which
committee
a
members and
of
committee
a
total
years.
ered
ibanks
confined
buying
of
months.
On
this
to
^power of example, do not yet apbuvers of stocks.•"
pear as
Looking" at
the 52
ffnrf
banks
had
a
maximum
;stock;
-41%
power
another
Of
its
of
Its
to buy common
had
In
gone
Four
power.
using 40% 'or
were
I
One bank
about *59%
up
more
for
banks
of their
2
]P y
in
thoir
■
wnmft-1
J^
.
f
fh
/.
I Avish to express my
thanks to Walter Hess and
buy both kinds of stock.
of making
the
public unusually rate conscious. Depositors started asking
embarrassing questions of the
banks paying less 'than the top
rate. Certain depositors dedared
they felt:that the Banking Board
has fixed
thes
minimum
2%% rath«r
rate^ at
'he
inS n^w savings, the featuring oi
tent the effect of merely shitting
little
common
than
more
held
common
a
corporations
brand
ahead
-
the
new
up
of
a
the
banks
^trf^haTs been+ ^ostu carefully fered with plans
1 expect
have
to
some
c°mment of
their
buying
in
in the interest of get-
wice
o™
arc
cycle reflected
of
oi
rne
in their
m„rw
mantex
holdings,
There is patently much to recommend
whole
\v
such
the
noie, me
a
course
to
demonstrate
Taken
as
sto^kholdines'stood
siocKnoiaings siooa
a
to
10
that
they
can
widen the horizons of their thinkto
take
in
the
good
of
T
whole system.
using
Annual
by Supt. Lyon at the sath
Meeting of the Savings Banks
Whi^ias^rphur * Springs^ w^vl,
8,
1932.
'
"
*
pity,
too,
that
of Stevenson's intellectual
I
can
only
the
...:
„
U
wish
ttunk
act
House
offered
to
take
a
burnt
cratic
offering
bosses
of
who
should
say
it
the
raised
a
year, I
few ques-
tions Bhout savings bank
and
policies
—
questions
powers
such
as
years of life
as
of
Truman,
he
the
m
Gen-
was
It should
be recalled,
lUt
Dewey pointed out
paign speech, that 11
as
Gover-
in
a
generals have served
Presidents
nor
our
office
as
cam-
American
Republic, whose terms in
free from
were
Scarcely
war.
anything
would
President-elect
gain
greater
on
acex-
the
big city ma-*
using Stevenson
in
n
Ana
a
A
With fewer and fewer
excepthe ceiling rate has become
tion, objectively emploved. could
up with a variety of rates
related
closely
to
surplus
and
come
status.
Banks
fairly of-
rather
than
Stassen and Paul G. Hoffman
are
American body
another four years.
also good available
Cabinet positions.
-for
politic
for
page
22
Governor
Earl
Warren, Harold
material
cancies the change in Administra-
aside from the
tion will necessitate.
say
rewarding
inevitabilities like
John
Dulles
Foster
with the portfolio of the Secretary
Qf
the
state and Henry Cabot,
L
.yl(b
Cabinet
: General Eisenhower, unlike Mr.
Truman, will not have-much trouble finding promising talent for
the 2,000 to 3,000 executive va-
too
well-known
For
-
to
reasons
here,
repeat
high-calibred executives in the
CACtuuv„
m
business world were disinclined
lUfin-WiIulcu
berth> and
t0 associate themselves with Tru-
offerin
Gov xhomas E, Dewey
the Ambassadorship to the Court
man-s Socialist administration. •
It will be interesting to evalu-
of-St. James,
ate
g
a
y.
:
the
personnel President-elect
Fkpnhnwpr
a^l Sta
a
nig
pan
in
electing
yenerai
fathers
and
husbands,
sweethearts
made
the
supreme
Korea
and
on
the
have
sacrifice
in
bloody battle¬
fields of Europe.
It
that
should
be
prior to
the number of
remembered, too,
women
the men, providing another reason why women are entitled to
have suitable representation m
the next Presidents Cabinet.
Now
a
man
what should
be done with
of Adlai Stevenson's gifts?
this:
General
Eisenhower
much of his
victory to the
independent Democratic vote both
,•»-
Cnnfliom
ctofnr.
in the Southern States and
trywise.
Mr.
the
would
hovver
make
were
what
his Administration in
an
present
front to
voted,
If
President
General
Eisen-
to invite Adlai Stev-
to
join
his
effort to
Most respectfully,
ALEXANDER
WILSON
Summit, N. J.
Nov. o, 1952
With
Irving J. Rice
(Special to The Financial Chronicle)
ST.
PAUL, Minn. —Thomas A.
Brodie, Jr. has been added to the
staff of
First
Irving J. Rice & Co., Inc.,
National
•
members
of
11.
Bank
_
the
Building
* T1 J
A
r-ii
Midwest
1.
Stock
Russell
thus
forming
Now Smart Clowes Oswald
LOUISVILLE, Ky.
name
of
Cabinet
along with one or two other notable Democrats like Senator Byrd,
George,
unbroken
all
the world powers, friends, and foes
alike.
an
master
a
incoming
enson, for whom 26,500,000 Amer-
icans
ppalition Cabinet at the outset of
Exchange.
Editor,
stroke
thp
nnnnrtl.
nniin.
coun-
tn
our government
;for h^e is iusone^towmrtu^
n^y
unify our country with a
who regis-
Jcred^m t^e^pnmai les^^exceeded
invitpc
responsibilities of
this epochal election.
or
Senator
a
coalition
hand. Others decided to pay government of Republicans and
*be highest rate quite simply so Democrats with an eye to future
that they could grow fast enough possible global hostilities.
on
\
the writer
that it is logical
tol suppose that the Presidents
elect should give a place in his
forthcoming Cabinet to a woman-,
to
*n
Ctintinued
Baruch to be ex-officio members
of his Cabinet.
as a respectable front expected to
perpetuate their party control of
uause must A0t dTisCu0lirage easily' ten raise<?
however, and so I shall persevere, earnings in divI"dend! wiih b?"er Senat01'
over
now
eral Washington when he assumed
the Presidential office,
ability,
owes
pros-
Pective losses in deposits were
hlOur tn 1*
cf 11 ut i
1
nrirl
blow to institutional pride.
°* savings banking.
Those who
believe in the worthiness of their earnings
Looking back
both
as
claim than if he prevails
else, though, the actual and
savings bankers always tions,
js
autumn
of
man
a
against him
and Eisenhower are
the
Just
un^y and harmony could the prevailing rate; it has not
ruggedness of their indi- proved to be a level under which
vidualism when an opportunity management and trustee discre-
broader approach to the problems
consid-
the
and withdrawals. Before anything
^at the commercial bankers who
back-
notbe
culture and refinement had to be
to build up earn-
They made the taking up of
mortgage commitments more difings.
nrospect
♦An address
White
sons,
tfevoted to finding the ground for
A good many savings banks on
a mutuaBy satisfactory solution of a lower rate basis found these detroubled issue of branches. A posit losses inconvenient and disBttle later, after the material pre- agreeable to absorb. They mter-
iirKnU
bought.
a
'he time theyhave system-itself.
stock of 196
stock power have gone
^
a
'
1
circumspectly
instalments
♦
ting
made
third
a
In all
'
was
*
Mainly,
alone
the
Democratic processes.
committees for the efforts they deposits within the savings bank Eisenhower to office .pajtmulariy
the women whose
.
graph
the
What
So without further ado,
my own to offer.
One bank had already called into
There was also the suggestion I ficult. The^ portfolios of -governplay over 90% Of its full power, made that the obligations of the ™ent securities consisted pretty
Fifty-seven per cent of the buy- Mutual Fund still outstanding be largely of long-term bonds selling
ing was in public utility com- settled just as soon as possible on at a discount.
This meant that
mens and preferreds, 33%
in in- the basis of present ability to pay. fair-sized losses would need to be
-dustrials and about 10% in rails. The settlement of these debts of- taken
if governments were sold
American
Telephone.. &
Tele- fers savings banks an opportunity to rais*e cash to meet commitments
power to
obsessed
ventures
EmmettFinucane, thetwo Chairmen, and to the members of their
fhat thov hsrT
to buv nreferred
used
cupied
warm
as
up^15'8% ofIhrtS2wto Ubw:
commonstockand f^%oftheTr
nower
S
th
your
cleared; the conferees have not
preferred, stock and nine to com-' settled their differences, but they
:mon stock.
The names of a good have pulled together a great deal
;
many banks, some old, some large, of statistics and argument to desome
with
great influence and fend the positions previously oc-
-
f
of the
.
their
.
^of the New York State Bankers Associa- ated with res^
for $35 tion were engaged for a number surplus had the result
resDon-
should
,
;
,
chines,
ofo„ri
nlnpprl
study the
work is done; the arms have been
Twenty-nine stacked;
the
field
has
been
buying.
5
.
reports year. There was the branch study P
30
spring up under the
ceiling. Some banks did
o
n
Americans.
-
military
ground
dividends
higher
isible for $8.5 million, or
19%; of
the
of
.
u
total and preferred stocks
million.
One bank was
reserve
provided.
tu
*ir\
Total' purchases
accoi/hted
come
invitation to General Douglas
to; accept the Army
Navy Defense portfolio re¬
gardless of any past personal or
professional differences between
bor Government for the, next four
and
creases here and there were
wrKi
quick summary
a
4-w
°£ wl\at
showed
up
market.
interested in
#
to .'
acknowledged
Mac Arthur-
Alexander Wilson
in-
fortably afford
supervisory
some
This search took two out of
five
the
the American electorate
more than,
see General Eisenhower
ektend
r«"
of
a nee
Tru •?
voted,
I should say, out of pride rather
been used by the State and Fed-
eral
strongest drive behind the
every
time
some,
is
an
tll6 T&tt*"
has
highest grades of nongovernment than out Of profits,
year's developments, I should say, honds held by commercial banks.
I must confess to you that I had
was
the search for'higher earn-'^e. are .Yaluin& stocks at market hoped to see a wider assortment
The
for
he
to
The results of the national eleclending over
tion could not have been others
a wide
radius, and greater reliance impractical to extend to the best higher dividend rates got under wise if the American people were
on
nongovernment securities as a grade
common
and
preferred way, a number of institutions less honest in their desire to clean
source
of
earnings.
It may be stocks held by savings banks a well prepared to pay larger divi- the Augean stables ol the odor of
added that the securities holdings variation of the limited conven- dends decided to do so
anyway 20 years oi arrogance, corruption
included., preferred and common tional
value
principle that has along with those that could com- and drunken political power that
year
his
policy-leader of his party.;:,
i
Perhaps nothing would please
general
deposits
the
and
dend rates, the
in
va¬
Taft,
served
;with
so
distinction?.
We know, of
where
ei-
leaders
10rts -t0
PGfll
position or, when there is a
an
appointment
to
Supreme
Court ; in
which
cancy,
Senate
5 JSr
ancl, A\L
~iU
Robert
Wouldn't it be in the cards
Senator Taft a Cabinet
offer
needed by President-elect Eisen¬
hower to steer legislation in the
lifting of divi¬
steepest
be
woman
course, that Senator Taft is sorely
fJ!je
-
to
much
ad--Truman and
he person--
;'v Three more observations-about With energy. -,- ;
;
equities: first, the new investment
'I sometimes wonder, how dead-company; according to all indica- ening
to .'management initiative
; tions, will
bring quite a few of the the lorig-lived ceiling by regulasmaller and medium
sized, banks, tion has proved. While the ceiling
inl-A
would
that
urges
be
Howard
Pre-
well
would
Democratic
father, the late President William
being brought forward
include your
come
not
.
include
Republican, Senator
...
season
hardly
The
i
u
wart
Taft?
WiT T
years now, any .talk produce
long be-.
an
average
yield
of fore the
to savings bankers
ceiling was raised in Feb- Enited States.
4.54%; with the rate on the pre- ruary" Others
Tiad^not Their "nro- Because (1) it
have had any other ferred
4.17% and on the common
grams:
the
>"^»t a rebeginning than this
It's been a 5.79.
crowded year.
placement of "lower yield assets puliation of
at
can
,
Also
it
says
to
were
given ranking position, and avers that Eisenhower has
great
opportunity to unify nation by selecting Coalition Cabinet.
in. at
seen
a
Eisenhower
standard bearer in his Cabinet.
the
powers
some
for-
raising of dividend rates Immedi•ately got under weiy on the broad-
in emergencies.
<
search
Wilson; life-long Republican,
"master stroke" if
-
earnings was
"''stimulated by the
well-high uni¬
versal desire to
kefep up with the
Joneses in paying dividends. After
Discusses ^problem of liquidity for
savings
banks, and-advocates they be given greater
Cabinet
s
'
The Dividend Question
been purchased.
borrowing
A
as
N. Y. State
Banking Superintendent reviews developments in
sayings banks policies and activities, and finds, in addition
to lifting dividend rates and
expanding mortgage lending,
accompanied by steepest rise in deposits in several years/ the
banks are now concerned
particularly with the search for higher
earnings.- Reports 52 N. Y. State savings banks have
already
gone into the stock market m
expanding investments, and up to
Sept. 30, -$45 millions ef common and preferred stocks have
•
M," 1-1 no'-'
-
IvDO
/ JF
A
17
And now what about that stal-
—
The firm
Smart, Clowes & Phillips,
Inc., Washington
Building,
mem-
bers of the Cincinnati Stock Exchange,
has
been
changed
'to
Smart, Clowes & Oswald, Inc. The
firm
maintains
cinnati
under
a
branch
the
George E. Oswald.
in
Cin¬
direction
of
The Commercial and Financial Chronicle
X8
Thursday, November 13,1952
...
(1834)
and loan facilities, the
and savings
A Need for Savings Bank Expansion
By ROBERT M.
CATHARINE*
President, Dollar Savings Bank, New
figures show clearly that
These
requested
were
we
$1,291.
introduction
to
bill
the
of
postpone
so
to
as
behind
lins
that
view of
for
curtains.
the
I
ask
statesmanlike
problem which cries out
theya
take
a -
statesmanlike treatment.
a
1
In conclusion, I want to stress
institutions promote sav¬ give more time for others to study
ings. Where they exist, they at¬ this matter. We were ready to be the fact that I appear before you
tract
funds
which
the
public- accommodating, but we certainly here as President of the National
not want this matter
to
be Association
of
Mutual
Savings
would not otherwise deposit with do
through¬
institu¬
tions does not meet public demand. Cites preliminary report of
Special Committee on Savings Bank Branches as clearly indi¬
Asserting there is need for savings banks' expansion
banking organizations. The public studied to death.
There is no
use glossing
over
accept no substitute.
The Committee went into the the fact that our efforts to obtain
additional
branch
powers
have
question of whether or not savings
nation, Mr. Catharine holds supply of savings
out the
savings bank industry in this
savings
Savings Banks
York City
President, National Association of Mutual
the
capita savings were State, could accept. Unfortunately,
per
average
will
contin¬
ued existence and prosperity of
commercial
banks.
They found
that this was not so. In the period
banks are a threat to the
cating inadequacy of savings banks facilities, and scores oppo¬
sition of commercial banks to savings banks' expansion.
thus far been stymied by our com¬
friends.
I do not
venture to
criticize them.
They
are
doubtless fearful of making a
mercial banking
In
Banks.
I
capacity
that
have
time in going from
trying to learn the
much
spent
to State
State
problems of each locality where
savings banks exist.- In New York
elsewhere in this coun¬
biggest problem is the
of savings bank expan¬
State, as
try,
our
problem
home to you be reduced or eliminated. So our from Jan. 1, 1942 to Jan. 1, 1951, move because they doubt that they sion. I have deemed it my duty
must
be merchandised 29 trust companies in 25 locations can precisely estimate every con¬ to restate that problem and to ask
dealing speedi¬ product
ly and effectively with the prin¬ over a very restricted area. The (other than Albany, Buffalo, Sy¬ sequence that may follow.
you to keep it always in the fore¬
But
I
submit that
we
have ground of your minds and delib¬
cipal problem of savings banking public is prevented from obtain¬ racuse, Rochester and New York
ing what they clearly desire.
erations.
The
National
Associa¬
day. That is,
City) where there were mutual proved our case in this matter.
Let me give you
a few facts
tne
I ask that they speed their de¬ tion is doing and will do its best
problem
savings banks gained 85% in time
from
the
Preliminary
Report,
of
expanding
I ask that they lay to help you solve this problem
deposits, while trust companies in liberations.
dated Nov. 7, 1951, of the Special
the
savings
communities where there were no special emphasis on the interests as well as all other problems that
Committee on Savings Bank
bank
system.
In that spirit, I
savings banks gained only 84%-. of the general public. I ask that confront you.
Branches. This Committee is un¬
This
problem
in time deposits.
:'
they put aside any fancied fears bring you greetings from the Na¬
der the able leadership of Walter
exists in many
;
f
In further proof of this point, of witches under the bed and gob¬ tional Association.
I
want
to
bring
the importance of
.
Hess, as Chairman. This Prelim¬ the Committee prepared a list of
inary Report contains a wealth of 79 communities in New York hav¬
carefully compiled data. It reaches
ing a population of between 10,conclusions after careful weighing
000 and 100,000. This list showed
of the evidence. Its recommenda¬
the status of savings and thrift
tions for remedial legislation are accounts
in
commercial
banks,
moderate and should be accept¬
savings banks and savings and
able to every person who is pre¬
loan
associations in these com¬
the
in
places
States.
United
However, this
is a meeting
of the Savings
Asso¬
Banks
I
York.
New
to
-.want
to
New
of
State
the
of
ciation
Robert
M.
Catharine
come
an
Publication
mind.
open
with
and
circulation of the final version of
here
grips
pared to approach this matter
munities.
A
of
Bowery Savings Bank executive;
Inflation
on
banks should '
says
two-day discussion on inflation, its causes and remedies, participated in by all interested segments of the economy.
organize
a
At the
nual
and do operate in close
can
sence
Former
shows
comparison
that commercial banks and savings
banks
Bruere Advocates Conference
closing session of the an¬ long run, may
meeting of the Savings Banks portant index
■
the more im¬
what has been
prove
of
Association of the State of New accomplished.
It
is
impressive
now with this problem of ex¬
this Report have been postponed
proximity and that a commercial
held
at
White
Sulphur that disregarding the undoubted
pansion in the State of New York. pending the outcome of conversa¬ bank can attract time deposits re¬ York,
S p r i n gs, W.
fact that many individuals have
You have heard
a
good deal tions with representatives of the
gardless of the presence or ab¬
accounts in more than one bank
about
this
matter
in
the
last commercial
Va., on Nov. 7,
banks.
I
earnestly
and
Maybe you are hope that it will
couple of years.
tired of hearing about it.
For my
soon be possible
it public. I urge you all
make
to
savings
a
in
bank
the
community.
Committee
The
Expansion
Now
why
Problem
Big
a
expansion
is
communities
big ranging
a
call
attention to the growth of
First,
problem?
your
bank
savings
our
States.
United
exist
in
only
want
I
to
system
Savings
States
the
in
of
17
banks
the
Union, and in some of those States
there
are
only
But
banks.
with this limited
80
population
a
10,000 and 100,These are commun¬
between
persons.
for
savings
a
bank
in
filling the need for savings facil¬
It
ities.
point
key
concluded
of
that
difference
was
the
between
situation
which,
without
on
its
further
face
very
commercial
"A
argument,
bank
is
a
stock
in the mutual
the
of
Bowery Sav¬
ings Bank and
have
lies
the
of
strongly
tered.
ad¬
"the
that
banks
ganize
to
Copyrighted, bv
Underwood it Under wool
inflation,
inflation.
of
I am not
I have, as we
a
great deal
it.
much
I
clarified
the
matter
I
not
wholly
me.
do
.
lor the first nine months of
this
In
period,
the
1952.
due
amount
savings bank depositors has in¬
creased $721 million. It is prob¬
able that for the full year 1952
the
increase
one
billion dollars.
will
be
than
more
At the end of
first
place
various
between
as
September, total deposits in New types of time and savings ac¬
York savings banks had reached
counts.
In 1950, the year of the
a level of nearly $13 billion.
census, time and savings accounts
Accounts in
our
New York
sav¬
in
the
principal
institutions
in
a
our
matter of good business.
"This
between
difference
sav¬
ings banks and commercial banks
should not be
is fundamental and
disadvantage.
raising the total to 7,800,000
Compare
at the end of September.
that figure with the last census
figure on the population of New
York—total savings accounts, 7,800,000 — total
population
14,830,000.
There is
obvious.
that
on
our
elaborating the
It is plain to be seen
savings bank system is
no
use
the flood tide of success, that
it is greater than it has ever been,
Savings
banks
and
loan
billion.
associations
$3.9
are
not alike and
alike."
made
security
whether
could
by the establishment of
be
to
brought
outside
of
our
that the establishment of
as
we
enjoy with the people commercial banks in a
community
country and our State a do not
provide savings facilities
position of trust and honor such which are
known
never
before.
equivalent to those of
savings banks
other thrift in¬
Listen to these figures
It is
or
clear, then, that there is a stitutions.
huge public demand for our serv¬ on communities
ices.
What about the
supply?
and
100,000 in
between
our
10,000
State.
In 21 communities where there
providing the public
cigarettes, or chewing gum, were commercial bank facilities
or television
sets, or lipsticks, or but no savings bank or savings
chlorophyll tablets, or with laun¬ and loan office, the average per
dry,
dry-cleaning
or
window- capita savings were $363.
washing service, we could have a
In 27 communities where there
place of business at every street were commercial bank and sav¬
If
we were
with
corner.
But
we
are
only provid¬
complicated
inflation.
call
we
and
In
the
new
new
to
banks
made
during,
by
the
the
past
ings
and
loan
facilities
but
no
It
means.
thought
was
new
in¬
stitutions might be promoted to a
certain extent
by authorizing ex¬
isting savings banks to contribute,
on a voluntary basis, to the initial
surplus funds of newly organized
banks, but that this method would
have
very
limited results.
The
Committee took the view that the
most
to
practical and effective
way
provide savings bank offices in
areas
where they are lacking is to
authorize
the
establishment
of
branches in such places by exist¬
means
whereby they
may ac¬
per
capita savings
were
average
S9th
Banks
address
Annual
by Mr.
Meeting
Association
of
Catharine at the
of
the
Savings
the
State
of
New
W.
Va.,
the
As
the
you
know,
several
years.
I
am
But they
all directions.
problem
if they are not
even
ready with the right answers. We
have had a lot of extemporized
discussion
the
of
subject
Presidential
the
who remembers
proposed
was
White Sulphur
fJov. 6, 1952.
Springs,
during
campaign,
but
what, if anything,
to be done.
The
problem does, however, lie on the
Government's doorstep. The long,
slow
process
value
of
restoring
of
dollar
the
purchasing power is
of
government
and
in
the
terms
economy.
"To
give impetus to thought and
would
it
the
be
savings
State
lion
within' the
wholly
and indeed the duty of
province
banks
New
of
York
the custodians of $13 bil¬
as
of
desired
.security,
hopes,
stored
energies
power
of the people of the State
and
financial
hope so and all of us
strive, pray and indeed
towards that end. But as of
we
should
now
in terms
of
a
54-cent dollar,
(in New York State
banks) have grown not to $12.7
billion in 1952 from $5.7 billion in
our
raise
pace
tainly,
vote
to
deposits
not
labor
nessmen,
I
sumers.
leaders
visualize
a
and con¬
conference
this vital subject of the quality
of the valuable forums conducted
on
each year by
aid Tribune
the New York Her-
With Bache & Co.
Bache
New
nounce
has
&
York
Co.,
members of the
Exchange, an¬
Stock
that Miss Isobel T. O'Brien
joined
the
firm
as
a
regis¬
fact, tered representative. ; She
make
her
headquarters in
savings were $933.
bill. To my mind, it was a mod¬ we marshal the gain in accounts in
Chrysler
Building. office.In 27 communities which had erate, reasonable proposal which these 11 years from 7.5 million to
York City.
commercial
bank, savings bank everyone, both inside and outside 9.8 million, or 32%. /This, in the
loan offices, the average per capita
going to
go
into the details of this
of
joint task
the business
a
"Against
this
unpleasant
.
York,
the
the level of intelligent
discussion of the question. To this
with the depreciation
of the purchasing power of the end, I propose that instead of the
dollar by which we measure our usual mid-winter conference, the
banks organize a two-day discus¬
savings. We may be at the low
sion of
the subject of inflation,
point in this dollar dilution and
in consequence much of the sav¬ its causes and remedies, by the
best equipped persons in Amer¬
ings we now safeguard may be re¬
paid in higher value dollars. Cer¬ ica, statesmen, economists, busi¬
kept
the
legislative hopper.
you
would
they
end,
to
best qualified to analyze
be
ing savings banks.
$861.
savings and
•An
point in
if
of
that
gag
economists
end
country
may
the
the
savings effort, I respectfully suggest that
1941 but only to $6.8 billion.
In
Committee other words, our gain is only 19%
had
ready last year a definite in purchasing power and in secu¬
cumulate money to meet essential
In four communities which had
legislative proposal, complete in rity, not the 125% which the face
needs—the means whereby dan¬
commercial
bank
and
sayings every detail and ready to drop in of the figures tells us it was.
gerous inflationary pressures can
bank facilities but no
ing them with savings facilities— savings bank offices, the
the
to
all
laid
in my admiration of the
one
no
progress
I even feel a touch of pride,
It concluded that perhaps unworthy, that a billion
vious conclusion that, if savings savings banks.
there is little likelihood that new
dollars of deposits no longer
bank offices were established in
savings banks will be established amazes us. But
communities
where
none
against this pride
exist,
the public would make wide use in new areas through local in¬ and satisfaction we must assess
itiative unless local efforts
can
of their facilities.
the stark fact that growth in terms
be stimulated and supported by
The Committee also found that
of dollars has not much more than
The Committee reached the ob¬
and that we
have
economic
fellow citizens, is
the lower
our
language of the hustings (if you
can stand any more of it!) I yield
savings bank facil¬
areas
im¬
can¬
1
ities
savings $173 million.
for
of
inexorable
force
Committee consid¬
Finally, the
ered
$1.2 billion
Postal
be
not
most
.
groups
institutions
lion.
Commercial
The
portant of these, measured by its
effect on our efforts to promote
ings banks increased by 46,000 New York State stood as follows: minimized. So long as this dif¬
that
ference remains, the two types of
during the third quarter of this
Mutual savings banks $11.6 bil¬
year,
■
subscribe
econ¬
exception, they
one
not
for
consulted
have
With
have
of which
are
thought
have,
about
omists.
Bruer*
Henry
mas¬
going to attempt
not
am
economy
analyze all the elements of this
all
day discussion
of the subject
of
banks
have not
we
competent to do so.
two-
a
I
problem
or¬
the
net .earnings its causes and
paid to, or employed remedies by the best equipped
for the benefit of, the stockholders.
persons
in America, statesmen,
The first concern of savings bank
economists, businessmen, labor
management is to pay to the de¬ leaders and consumers."
positor the highest return than can
Speaking of the war and post¬
reasonably be paid. The first con¬
10%. During the same period, de¬
war
inflation, Mr. Bruere stated:
cern of commercial bank manage¬
posits in savings banks increased
"Great
problems
that
af¬
ment is to pay to the stockholder
by about 205%.' It is clear that
the highest return that can rea¬ fect savings and savings banks ad¬
savings banks have demonstrated
versely have in these fateful 11
their popularity with the public. sonably be paid, and, accordingly,
to pay to the time depositor the years altered more in size than in
Moreover, savings deposits enjoy
lowest return that can be paid as kind and this change has been to
representation, total deposits are
The
Committee
Report
deals
now $22 billion and the total num¬
with the public demand for sav¬
ber of depositors is approximately
ings institutions.
It shows that
20 million.
from 1940 to 1950 the population
f Take a look at New York State of New Yofk increased by about
political
our
which thus far
corporation,
rectification.
demands
in
Association,
vocated
the
events,
their
done
part; the people
have done their part. The failure
former Pres¬
ident
savings banks of the
all
At
State.
a
substitute
of sufficient size to justify
the two institutions in this regard
savings bank facilities. Of these was the element of mutuality. I
80 communities, 49 had no savings
quote from the Committee's re¬
bank office whatever.
This is a
port:
ities
two savings and
one or
even
000
located
has
having
ident
two-thirds of the pop¬
ulation of the State have accounts
and Pres¬
man
far from the fact to say
is not
that about
Chair¬
former
part, I feel it is our biggest real to read it when it comes out.
Commercial Banks' Opposition
problem, that we must stick with
The Committee considered the
Inadequacy of Savings Facilities
it, and that we must never let up
problem of whether or not a com¬
until a solution is found.
Now let me turn to the Report.
mercial
bank
is
a
satisfactory
it
Henry Bruere,
.
.
will
the
New
Volume
Number 5168
176
.
.
.
The Commercial and Financial Chronicle
19
(1835)
bank who
include
News About Baf>IKS
OFFICERS,
w
«ri?u
banliERS
and
ETC.
REVISED
w
gene w.
Dietson, all directors.
*
-
The
The Board
Bank
of
Directors of €ity
Farmers
officer of the
Company.; Hulbert
the
Trust
Company, S. Aldrich, Vice-President, was
trust affiliate of The National City: elected a
director and President of
Bank of New York, appointed Al- the
Company. .Mr. Massie, a gradbert
L.
erson a
or
on
Nick-
uate
of
Yale
University,
Vice-Presi-
dent
and
and
di-
rector
President
in
market-
City
i n
Socony-
pany.
Oil
He
u.
after
In 1941 he
made New
England division
and
ager,
1944
in
Assistant General
c
vision
v
s^
post
--Mr
iNlcKei*son
1944
in
to
was
man-
,n J
to England
go
and
elected
was
in
1943.
He
has
man
:of
10
the
Board,
m
York
i
Mr. Massie,
of
'
•
s lowing promotions
Oct.
*
*
.
.
estate and
Kansas
Miller
Missouri
gift tax
was
6 h
probate
the
nf
graduate
andtax
bank's
thn
and
trust
denart
member
a
of
of
the
Kansas Bar.
*
i
101-
and
ejectedVV ce-P^es
Tnsenh
A
Josepn,
-
fisner
A.
Account
cisperq
Assistant
"♦rbmmeVr7*T^V''7«
KaS
City
a
^Mo
succeeds
be.made>Tai^Eie^ mfmblTwere
and
Griswold, Richard K. LeBlond, .II initiated into the organization on '
George'; Macalister, Jr., were Nov. 6, bringing the total memAssistant Tr.eas-ibership to 119. Each of the mem-During, the
war,. Mr. ,XwGKerson( Urers
Assistant Vice-Presidents; bers
were l given
a
silver tray
.served, as Placement Bureau Divprank M. Aukamp,. Malcolm
S. by Board Chairman, James M.
rector of the War Manpower
Com-*.Martin, Edwin D. Roll and George\Kemper. : / '
^mission.
He is Vice-President ot<
Sehleich,; were promoted from •
*.«
:ine American
Dc-C-era
m
beit,J9»l. .promoted..from
Management Asso-r Assistant
Secretaries to
ciation, a member of:the Board-bf
Vice-Presidents; John
Directors of the National Trade
Dougall
.Council,
etc.
^
Z..
•
,
National
tYork announced
«
,
*
wt
■
■-
-construction of its
Branch,
Southern
at
149th Street will
near
East Bronx
new
hank
in
branch
.
thn
fiFst
narkineparking
in
in
Brnnv
Vice-President
charge
cnaige
who
National
i\auonai
nf
oi
for
90
has
and
Courtlandt Avenue, says
hrin^
win
inuartert:
the
an
Assis-
elected
Bend, Kansas
*
<
At
a
; ;
.
1
„
•
.
:
.
•
u
ill
at ^ ColTbus
1,-1
new
1943 and
ln
de
-aler
"
Assistant
Nationai
at
Branch-
he^
in
fiftth
Domestic
f
The
1S
Jn
c
#
4'
members
of
.•
National
City
and
-Trust
Company,
Grand
City
Ball
Bank
Bank
of
New
*
-
in
the
Cedric
.
A.
world,
the 'Lehigh
of
*
*
'
.
Qhanges:
post left vacant through the death
>
* Transler of the Exchange membership of Jacques Coe to Joseph
0f Bank of America's former Pres-
E. Sullivan will be considered by
late A' R Giannini» founder °/ the th| Excban|e Nov. 20
«S«
educatlon and m®dlcal research*
;
T
,
]
>
\
R..'E.
'
Powell, President of the
Aluminum .'Company of Canada
Ltd., has been appointed a member
of
the
board
directors
of
Vice
-
Mr.
Powell
President
is
senior
a
.
.
.
.
y
I
-
Ctavk
&
'
is
Co.,
now
621
with
South
Hill
Richards
Spring
Street,
Stock
members of the Los Angeles
Aluminium
of
/
.
(Special to the financial chronicle)
LOS ANGELES, Calif.—Joyce
•
of
'
,
U7UL:U:|| R:rurJ.
;
r.
the Bank of Montreal, head office
Montreal.
,0
.,
™
4
Exchange.;
.1
•
1
——
-
6
.'
increase the capital funds
present $7,-
stock,
txunaj
$500,000 will be added to capital
and ,$500,000 to surplus.
25,000
additional shares of $20.00 par
will
value will h* pfWpH o+ $40.00 per
be offered at
be
the
to
Carl
ri.' P.
J.u...
John D. McCutcheon
ScWemmer
City
Club
Bank
was
or-
Bank.
Mr. Major is also
members.
New York and
1904, with 160 charter
Today there are approx13,200
members,
with
imately'
8,200
in
5 000
members
the
New
branches
.William
President,
made
address.*
and
area
the bank's
overseas.
Vogel, Club
welcoming
York
among
1
the
..
*
#
North
River
a
Trustee
Savings Bank
*
of
Director of B. F.
a
Drakenfeld & Company.
-
*
\
meeting of the Board of Di-
rectors
held
invitation
JLazard
Jan.
Nov.
to
become
Freres
&
as
to
accept
an
oartner of
a
Co., New
1. but has
continue
Adrian M.
6
York,
been invited
to
director of the hank.
a
Massie, Executive Vice-
President,
of
the
r h
_
Board-and
,'.
o
-
made
trust
i»-
m
o
r,
nf
iho
executive
preferred
A breakdown of the present capi-
tal
fund- position ,of
$7,000,000
shows that $2,000,000 is in capital
stock, $4,000,000 surplus, and $1,000,000 undivided profits, all of
which, Mr. Davis said, has been
achieved
new
without the
shares.
sale
of
John
nominated
any
Meanwhile, he added,
have
increased
11
Inc.
and
includes
in
its
roster
more
staff,
as
well
as
Overseas chapters
205
are
pensioners.
maintained
in London,; Paris,, and Brussels,
Henry W. Olsen presided at the
dinner and
was succeeded as Club
ori
.
s
Edlth Halfpenny spoke foi
new members inducted during-,1952. Senior officials of the
annual
sncreased-from
$1.50'
year to
on
are-headed
two
,
years,
prior
to
of
has
been
the National
Stolle got his start in the securities
which
Other
nominated for
officers
on the New York District
Chairman of the committee.
he served
1953 follow:
Vice-Chairmen. H.
P.
Schlemmer, Schwabacher & Co., San Francisco; John D. Mc¬
Cutcheon, John D. McCutcheon and Co., Inc., St Louis; Treasurer,
Wallace H.
a
thus
share
ner
new
new
year,
stock is-
;Scharff
v
.
Baird '&
Co.,
succeed
Clarence
Milwaukee.
business, established under
an
Act of Congress to promote high
standavds of commercial honor,and just and equifabie principles.
&
of trade.
„
previous item*in the
will
A. Bickel, partner, Robert
His election will take place at a
meeting of the board of governors of the association in January,
The NASD is the self-governing organization of the securities
W.
stock.
Bioren & Co., Philadelphia; Executive Director,
Fulton, Washington^
Stolle
Mr.
a share ,per
share per
by:
be
Jones, Ine., ^and White,Hattier &
Sanford.; A
governors
John F. Bunn, Jr.,
both the old and the
Underwriters of the
of
Fulton
York
Dealers, it was announced at the head¬
He is President of G. A. Saxton & Co.,
committee for three years, one as
will
si 00
per
board
H.
of New
in
The dividend
basis
1-nc.r^?e>d f?9m
sue
the 69
an
Securities
the
Stolle
Davenport, Iowa. | He also spent several years in
Pittsburgh before helping to form his present company in New
York in 1934. He has been a governor of the NASD for the past
per snare in December, pay-
justify the increase.
of
of
Wallace
C.—Carl
A native of New Orleans,
business
attending. The anle Jan. .1, 1953, and quarterly
dab has inducted 1,285 members thereafter, if earnings continue to
than one-fifth of the bank's active
Jr.
quarters of the association.
dividend of
a
Bunn,
Chairman
Association
times
Guaranty Quarter Century Club, over. Mr. Davis also announced
honorary organization of staff that an increase in the dividend
could be expected.' Heretofore, a
pany.
of. New
York
who
have semi-annual dividend of 50c per
served the bank for 25 or more share has
been paid. It is now
Planned to declare
F.
WASHINGTON, D.
members of Guaranty Trust Com-
company
't.
chief
and*.$1,500,000
deposits
*
Charles J. Stewart resigned as years,
held its- annual reunion
President and Chief Executive Of- dinner on Nov. 7 at the Waldorfficer of The New York Trust Com-; Astoria, with 730
at 100 Broadway, New York
surplus and undivided profits, and
deposits' of $14,000,000,-. Of the
capital, $1,200,000 was common
stock
for
10
of
on
Changes
Major, President of stock. The latter was retired out
Valley RR. Co.-has of earnings in subsequent years.
ganized in
a
m
'
the.. Hotel been elected a
Director of The
the Club's Marine Midland
Trust Company
48th annual election banquet. One of New
York,,it is announced by
of the oldest bank clubs in the,-James G.
Blaine, President of the
at
kly Fi
Hibernia began business on May
22, 1933, President Wallace Dav.s
Manufacturers Trust. He is in pointed out. The bank started
r.'i ' charge of the 9th Street; (Brook- business with $3,000,000 of capital,
■'
Farmers
gathered
Room
Nov.
on'
pany
We.
his
CircIe share anfda11 ^areholders of rec-
ZJl ; lyn) Office. Mr. Schor joined the
City: bank in 1937 and is in
charge of
,
York
York
57
In
charge of the new stock op the basis of one new.
Mr- Kane's share for each four shares held.
Club, social organization ofAits Essex Street Office.
Astor
iNovemoer.
New Yovk Stock Exch.
merged for the sale of any unsubscribed
in 1932. shares., The hank's capital as well
1933 116 becahie associated with as deposits have grown since the
charge
Rranrlv
f
__
New
Bank
November
moto^bank Tlfe E^t; the^ Br<>oklyn. T;r u S t Company,
Bra^h wilKbe NatibSl which in 1950 also merged with
Bronx
.
just received indicate that a Bangk branch •
{ b opened the
The new York Stock Exchange
position
on
the
Foundation Board, he will fill
the.:has announced the following firm
cisco.
to 1922 Arrangements ha ve been conbf *""ed the Chatham Phe- eluded with .investment bankers
National Bank, which
mx
Man
of the new
.Titv's
bank' which 0n Sept* 15 °Pened
a London branch' and the advices
Chairman
and
ParkI "with Manufacturers Trust
ritVs
will
directof
been
chalrmanof America ofof directors
of the board San Fran¬
of Bank
SmSSK: b^king.ca^er^sback
East
Bronx
section.,-".he"
industrial
'rhester
subsequent meeting of the
Kambu Ishikawa, previously Managing Director, was
elected Senior Managing Director.
.the shareholders^ of the Hibernia
National Bank in New Orleans
Vw.^ ^" ■?eS,ame' as" ord as of No.v- 6'wll'be
w»th the Trust Company privilege . of subseribing
!£d
Herman 'Rnnha**
:
.
Limited,
Slolle Nominated for Chirm? n of NASD
Nov
on
i?
/
.
directors,
foundati0n's .board of directors.
Mr' Ferr°ggiaro is senior .Vice-
*-
special meeting
u
*
Bank,
Kiichiro Satoh is President of the
has
increased from
was
*
Teikoku
at the
-
Ferrogffiarn
director
a
Uni-
luc,
the First National Bank in Great
,
Kane and George Schor have
been * appointed Assistant Secretaries of the Trust Company. Mr.
Flvnn
5„ 10ofl orij
F1ynn joined the bank in 1929 and
and'25^
«?neniallv
1;
:
tt-n
of ficeisa tt hetonks
Bronx Branch at 149th Street
Mac-
nuiiman, uonn
a
Pitv't;
L.icy s
vear*
-
A
of the
Laval
p^. rl^a[[nofuilc^5 that Thomas 000,000 to $8,000,0(M). Of'the addiFi_ynn> Robert H. Hoffman, John tional$1,000,000 capital
.n
-
*
$300,000 having been increased as
of Oct. 27 from $200,000 by a stock
dividend of $100,000
Fred
of
head office, Tokyo, Japan, makes
known that at its extraordinary
meeting of shareholders on Sept.
8, the post of Senior Managing
Director was newly created and
The capital of the First National
Bank
in
Pampa, Texas is now
Effective Oct. 27 the capital of
.IHorface,C- Flanigan, President of voted to
Mullen "
Alfred
L.
>
Manufacturers Trust Company, of of thei bank from the
npw
hranche^
whose
r
automobile
window
Assistant
•been
oeen
Rmnv
arrnmmndatinns.. and
accommodations;- and
"drive-in
Auditor
*°l' f
soon. ;
motor
feature
will
Assistant
Boulevard
begin
This branch will be the
appointed
was
.
Assistant ;
appointed- Assistant - Secretaries;
William ^ Monroe was
appointed
Nov. 10 that
on
oil and gas division of the
Second National Bank of Houston,
'• tant Treasurer, - and Edmund B. $100,000 to $150,000 by the sale "of
Boynton and David C. Winne were $50,000 of new stock.
-
^
*
The
Texas.
*
member
a
trustees
announced
«T. nVV.f tion' created and endowed by the
He
Socony-Vacuum
^
operations
is
"Haror(T"vance"asA"]Vranager"of
*
the
versity.
_
fn\
Chairman of the Vacuum Oil Co.,"
Ireland inr As^sthnrVk^Vf^sT'
He returned to the
United-dents were
•■states in 1946 to
of
appointment
of
°f the Bank of Ameriea-Gianmm \
be hi Foundat1ion! U was announced todivi
day following a meetinS of the
University
of ' the
Kansas
board
„
of
Governor of McGill
a
University and
the
for
°Amative"Kansan' heTs^a
ment
The
of
He is
pany.
'
*
*
President
associated-' companies
operating
Port and railway facilities of the
Aluminium ..Limited
group
in
Canada. He-is a director of the
Bell Telephone Company of Canada and of the Royal Trust Com-
Oct. 29.
*
and
j
District
MUIe/will
Mr-
of
division
office
City
-charge hf
sions
Mr.
Internal Revenue Agent,
years
New i
•
increase
Limited
Saguenay Power Co., Ltd., and of
*
*
of
]
appoint- Cashier,-was elected president of '
ident L. M. Giannini, ThisFoundaments:;,Donald E. Coyle and R. L. -the Quarter. Century Club of the
as
: Ltd.
-lector
io
Chair-
The
_
annminced "tho
a4I?nounce(J tne
Trust
to
issue
our
An addition of $100,000 has been
made to the capital of the First
National Bank of Jefferson Parish
at Gretna, La. by the sale of new
stock to that amount, the capital
thereby having been raised from
$500,000 to $600,000 effective
s
Trust Officer.
a
in
On Nov.
;thi<?
left
1939
plans
*
,
of
city National Bank & Trust Co.,
joined the New
appeared in
Oct. 3°, page 1631.
Bank .of
City, Mo., announces the
election of H. L. (Larry) Miller as
appointed Assistant Treas-
in
National
Gf Kansas
Com-
charge of the Company's
business in New York, New Jersey, Connecticut and other New
England states.
Managerof .the;
mnrlr/iiinrf
rli
marketing di-
Niokerson
was
been
he-was named
company's Eastern
Trust
enlarged capital
the
......
,
1930
in
Vice-President
his graduation
from Harvard,
xt.CACison
Mr. Aldrich
Trust
urer
1933
for-
was
*
capital appeared in our
30, page 1630 and
page 1741.
Nov. 6,
following his
graduation frcVn Yale University,
cony-Vacuum
Albert
Bank-Farmers
York
Company, Inc.
He joined Soin.
He
1945
Vice-
associated with the Bank
of America in New York and the
eign
g,
1949.
in
to
the bank
issues of
di-
a
in
Executive
merly
charge of *°r-
Vacuum
made
was
newly
Franklin
1934 'erences
Vice-President, became
^r' ■Nickerson rector of, the Company
is
in
*
Franklin Square, N. Y. (increased
from $3,370,000 to
$3,413,000 by a
stock dividend of $43,000) became
effective as of Nov. 1. Recent ref-
joined
direct-.. The New York Trust Co.
Nov. 5. as a
J'?!'
J?
RoOSevelt, hnd EuO
CAPITALIZATIONS
matter
Cleveland,
|L. Kleitz,
BRANCHES
NEW
Luther
^hairman of the Board; William,
President^ and George
nl •' S; f nr fw?y' i
V
CONSOLIDATIONS
NEW
members of the club
are
J.
.
largest
Unique
as a
business association
organization in the securities field.
——
in
this respect, it is the
Financial Chronicle.. .Thursday, November 13,1952
The Commercial and
20
(1836)
Continued
from page 3
•
:
-
.
7
'
4 -
;4'7r"
Mich. Group of IBA
DETROIT, Mich.—The annual
meeting of the Investment Bank-
Association, Michigan Group,
ers0
held
was
It
attended
was
by
the Detroit Club.
at
appro x-
imately
10 0
members,
con¬
Investment Bankers' Role
Reporter on Governments
Our
Elects Officers
=
By JOHN T.
CHIPPENDALE, JR.
In Finance
Companies
government market took the election of a new Admin- • :7777-7
7'
7
istration pretty much in stride although there were signs of en¬
alent
to
an
annual
return
of This means nearly all of you are
thusiasm in the way in which quotations responded to professional
5.56% on the 1929 high price. .... anxious
to raise more capital.
Commercial
Investment
Trust How are you going to do it?
>7
manipulation. There seems to be no question but what the con¬
fidence factor has-been strengthened by the election results, but
common stock sold at.a 1929 high 7
First let me cover the situation
there is likewise no losing sight of the fact that basic fundamentals
of 79 on Oct. 14 following a 2V2- of the smaller companies.
The
must still be the ruling ones as far as the money markets are confor-1 split up.
Subsequently the services of an investment banker
The
-.
.
sisting
local
of
38
16
and
out-state
continues to be very thin,
rather easy movements in both
directions. Nonetheless, there has been a modest enlargement of
the buying interest in both the higher income eligibles and the
which
vestment
Banking
Firms.
was
d i
after
t
the
e
1 y
e
Allen
C.
Alonzo
and
s
r
mittee
—
C. :Allen,
Alonzo
Elyth & Co., Inc.
'<
Vice-Chairman—Harry
Mc¬
Moore &
Donald, Jr., McDonald,
Co.
i
Secretar3r & Treasurer—Charles
C.
Watling,
Bechtel,
Lerchen
&
Co.
following
) The
elected
were
Executive
the
to
William
Committee:
members
new
Hurley,
L.
Eaker, Simonds & Co., and Ray¬
mond J. Laude, Goodbody & Co.;
along with the present members,
who are: Milton Bosley, National
Bank
of
A.
Clarence
Detroit;
Corp.;
MacKing,
Herri 11 Lynch, Pierce, Fenner &
Beane, and Charles A. Parcells,
Jr., Charles A. Parcells Co.
Immediately following the elec¬
tion of officers, the new movie
Horn,
First
Michigan
of
with
requires only filing a notice of in- ;
tention to sell, and a copy of any
circular. Again, generally this offering would have to be confined
to the locality where the manage-^
ment and company is favorably
known. It would have little ap79. -77'
47;74/.774//''V- / 4 peal to the general investor. •.77,74
471 do not consider one: or, two 7
While this may seem at varicompanies listed on the New York ance to the fact that you can see
CurbiEirchange4ih7I92£;sufficient- advertised very. frequently $30d;f ;
ly comparable to be worth includ- 000 offerings on what might' be
ing and- we/ can also disregard, termed a national, scale you .will
1,930 to date, the payments
aggregating $109.23 on each (October) 1929 share, or an average
of $4.80 per annum. Such annual
average
would be equivalent, to
6.07% on the 1929 high; price of
year
Apparently the most important question in the financial dis¬
time is what will be the effects of the change
on the money markets and debt management
John L. Kenower, Kenower,
Arthur & Co.; C.yrus H.
To be sure, there will be no out and out answer to this
until the new government has assumed office and some action
policies.
one
has
.
it seems as
However,
various fields.
these
in
taken
been
•
though there are certain fundamental factors that are being looked
at now which should cast some shadows of what might happen in
Informed followers of the money markets do not ap¬
the future.
to be expecting any new and unusual developments immedi¬
ately because they point out that economic conditions are quite
pear
incoming government
7
; .7 7/7;
The level of business activity, it is believed, will be one of the
most important forces effecting the money markets.
If there
should be a rounding off of business, lower money rates would joe
expected. On the other hand, continued pressure will most likely
be kept on the money markets as long as the demand for loanable
likely to dictate monetary policies under the
as
York
there
H.S.A."
shown.
was
Mr.
Alonzo
Allen stated that this movie dra¬
matically portrays how the sav¬
ings of the millions of American
citizens
are
ductive
into
channeled
Foreign Situation
;
of
One
the
that
things
by private industry,
end by state and local govern¬
ments.
Since its release in July,
It
has
met
ception
by
with
tremendous
many
industrial
re¬
and
watched,
be
ence
the
upon
the control to
of interest rates.
course
a
This force is one in which
large extent is not entirely within the power
very
of
looked
as
be
the
in
force
a
to
seems
little
very
future
what
sharp
a
of employed would have
trend of money
a
,
upon
;r
rates.
Maturities
•Been shown in colleges and local
High schools.
opportunity to promote the film,
to
show it, and to have a repre¬
sentative
Debt
Member firms and
.groups were urged to utilize every
present
screening
at
management is
Facing New Regime
>
be
carefully by the
several large maturities
new.
..
that must be refinanced
will
among
the marketable obligations, and some decision will have to
the
World
Second
securities
War
mature
May
1,; 1953.
However, the earliest refunding will be the l7/s% certificates that
fall due
on
Feb. 15.
Later refundings include the tax
bills that mature the middle of March, the 1%%
turing
U. S. TREASURY]
June 15,
on
bills which will
eral issues
STATE
that
as
well
as
due
are
June 19.
callable in
retired, aside from the
ma¬
the second batch of tax anticipation
on
come
anticipation
certificates
In addition there are sev-
1953, which may
or
may
partially exempt- 2s which will,
not be
New
cause
MUNICIPAL
care
new
SECURITIES
money
the
financing does not
coming offering of tax
of cash needs until
some
appear
more
.-?
er
beyond >
anticipation
time late next
a
problem, be-
bills should take
summer.
While the
shortly after it comes into office, there may be enough changes in
b,y that time to give
an
entirely different
,
The
factor
overlooked either,
as
a
force in the
money,
markets
able effect
15 BROAD
ST., NEW YORK J
WHitehall 3-1200
231 So. La Salle St.
45 Milk St.
CHICAGO 4
BOSTON 9
ST 2-9490
HA 6-6463
as
far
as
\
and the victory of the Republican
the confidence element is concerned.
should
book net worth of
a
than $780,000,000.
7
v
acquired
by
15
the
of
When I attended Harvard Busi¬
oess School 40 years aga my pro•
Aggregate gross volume of bus-
17
Jesso.ru1,n ^inance taught us that
companies in their last fiscal year,- a right was a wrong.
I agree,
excluding insurance premiums of an.d
experience proves that
those companies having insurance this is usually the case. /You hear
subsidiaries, was $9,952,000,000. advocates of the
rights system
Gross
volume
figures
are
not saying that if new stock is offered
available for Walter E. Heller and
....
Net
incomes
so
.
,
available for divi-
dends of all 17 companies in
ftnn,SCy^ar-
to the stockholders them there is
: 110
Co:; or Monroe Loan Society.-
5
- .•>
Party with Dwight D. Eisenhower at the helm had a very favor-
& Co.
■
4^
com-
77
Improved Psychology Apparent
psychological
cannot be
INCORPORATED
'
';'7.'77:i;' 7
plexion to the money markets^
AUBJtET G. LaN8T01T
,
Administration will have to get down to refunding operations
the whole situation
statements of the remaining
indicated
iness
to be
caPlta^ securl~
bottom up. Common
stocks on this basis then will have
my first attention. If any of you
7 $571,414,000 junior to the $210,939,000 of outstanding' subordi-
doubt, be eliminated on the first call date.
and
us ,Ci?nl ^r
*ies ^rom
decide to sell common
stock,-you may be incorporated in
some state or have by-laws which
nated debt.
In other words net will prevent your offering except
>,4
asset coverage" for each $1,000 of .to commori.,-stockholders. Assumsubordinated debt was $370.9%-. however, that. you. do not
Based on Oct. 9, 1952 quotations'
to °Her to common , stock for
the
preferred and common holders* or can secure a-waiver
stocks of these 14 companies, the" in whole or in part, thervT.believe
: market v
appraised the
equity a direct offering through mvest7 junior to the subordinated debt at * ment bankers is preferable.'.
:
14
i
The first
savings bonds.
will
com-
v '
do
companies
subordinated debt
Excluding these for
purposes, the com-
comparative
.7 bined
,
_
17
preferred,
and surplus totaling around
$2,000,000 and over. 4
I
any
outstanding.
Administration.
1
the
of
have
not
with
companies
mon
mo
••
- -
There
be made about the outstanding F and G
H-,8
■>
$3,651.3
' -!"
delicate undertaking and this will
a very
most likely be handled very
of
wherever possible.
431.4
the
Three
It has also
4.9
179.8
——_
,
private organizations.
5.8
0.3
v ^ ^
3.6' nies.
131.4
stock
common
What I say from here on is to
appjy therefore to larger compa„
,
?.
,
r;
.»
For lack of a better defmition I am calling "larger" those
25.7
10.0
Minority interest
Preferred stock-
change in the
'marked influence
the
939.3
Surplus —:——
number
-
Exchange and six on
Stock
subordinated debt—2io.9
There
of interest rates.
course
but
doubt
in 1929, and
11 on
are
Lpng-term senior debt____
The level of employment cannot be over¬
government.
our own
companies, listed
••
NewK Securities of finance companies
can be sold legitimately only on
the New York Curb Exchange.
the basis of gradual growth, not
Combined capitalization of the on a "get rich quick approach."
17 companies now -on
the New For these smaller companies, howYork Stock and Curb Exchanges, ever, an investment banker can
as
indicated by their latest re- be helpful in arranging private
ported balance sheets (mostly as placement of longer term debt
of June 30,1952) roughly adjusted either ranking equally with bank
for subsequent financing
where loans or on a subordinated basis,
applicable, is divided as follows:
In'a few cases preferred stock
(in Minions,
*
with very large sinking fund
current loans
J $1,748.5
47.9 might also be placed privately,
f
York
according to certain money market students, is the foreign situa¬
tion. It is their opinion that further deterioration or an improve¬
ment in the international situation could have a marked influ¬
use
pro¬
must
two
were
today "there
Important Factor
an
important
very
preferred
a
the two Exchanges
on
•
by
the
Investment
Bankers Asociation, "Opportunity
was
.
trend of the money market
produced
by
only
it
as
note that these offerings are fo^r
the most part of a highly speculative nature; oil,, mines, or. new
inventions, and they have the appeal that, IF successful, thejpur-chaser might make many times
his investment.
New
the
on
Exchange
subsequently retired.' ; • 77-.v;v
77 Therefore on a comparable basis
be considered
factor to
Another
strong.
Stock
represented
in the future
will be the level of commodity prices.
If there should be sharp changes in either direction in prices of
commodities, action could most likely be expected in the money
markets to ease or tighten money rates.
is
funds
Finance
Household
7,4;
they have in the past.
now
dividends were paid in each
mon
Administration
,
A.
they
as
1.6158 present shares
of
68 %
have
trict at the present
in
ital can be secured-only directly
through management and friends,
In some cases an offering under
"Regulation A" of the Securities
inclu-
current 4 market
com¬
elected:
were
'Chairman
seldom of very much value in
these cases. Generally equity cap-
ex- and Exchange Commission mayvbe
at the advisable. This we call a $300,000
would offering and the expense is very
a value of $110.68, compared
small as there is no registration
the-T929 high of 79.
Com- under the Securities Act and, it
shares
common
1st.'
Economic Forces to Dictate Policy
,
executive
the
of
members
-
lengthening are the main reasons for the ;
activity in the eligible securities. The feeling seems to be grow- ';
ing that the bank issues are in an attractive buying area.
din¬
the fol¬
lowing
offi-
are
sive, 25% on Oct. 1, 1934 and 20%
on June
1, 1936. Each (October)
1929 share thereby became 1.6158
switching and maturity
ner,
c
for the
most of the demand
to furnish
continue
funds
paid common stock divi1.%% each quarter from
1, 1930 to Jan. 1, 1931
Jan.
highest yielding tap issues. Private pension funds have been in
the market for not too large amounts of selected obligations. Tax *
Ima
dends of
State
7
at
o'clock.
m e
company
it is still subject to
means
restricted obligations.
Dinner
;
served
Money is tight and the market
cerned.
In-
their
$102,783,-
' 7
,v
.7. '
R°le of Investment Bankers
dilution. stockholders exercise
Obviously, this is only
if the
•
their «right."
erg
can
or
Existing stockhold-
for all
practicar^urr.
poses
guar(j against dilution by i
bull
markets
from underwriters < their"
proportionate share of a new7of-7
Now to,get right down to my fering.
I concede that "rights"
subject, "Function of Investment are considered a plus factor in a
yyV:
S
-
.
buying
..
"7
There is
Bankers."
Our function and when
Unfortunately
it
Paine, must be quite a "roaring bull
a definite feeling in the money markets that the refundings and
4 Webber, Jackson & Curtis, but market" not just a technical one.
.investment bankersf, generally, is Under
more . normal
conditions
debt management will be handled and carried out expertly and
to provide capital funds.
We do when the market-is pretty static,
very successfully..
^
' not compete with - commercial or even more so, when, it is deThe Treasury has announced, it will sell today, $2,000,000,000 ,7 banks and
only indirectly do we ..dining,
"rights" : nearly always
of tax anticipation bills, which will mature June 19, 1953. . They -, compete with insurance compa- have a depressing effect -One of
nies and other financial institu-.-my partners wrote an exhaustive
will be acceptable at face value in payment of income and excess
tions. insofar as they may deal di- treatise
on
this-subject but it.
profits taxes due June 15, 1953. Commercial banks as usual can rectly rather, than through invest- comes down to a matter of opinpay for them by crediting the government tax and loan account. '7 ment bankers as intermediaries.
ion at the time the offering is unI
say
7"our"
As
you
I
mean
not
„
Corporations will most likely be very much interested in them as .4
they have been in the past.
^
4-7.7:77.-7
7.
;
all know finance com-
panies., are
-
constantly 4 growing.
der consideration.
.
,
A difference in., expense
.
.
,
4
be-
.. .
Volume 176
Number 5168
'
.
.
The Commercial and Financial Chronicle
.
:
»•
21
(1837)
tween the two methods is
in
the
of
favor
against
the
company,- even
the
to
necessary
a
method
ordinated
debentures
tired
financial
this net* proceeds to
and
and represents
sub-
be
can
of
re-
soundness
selling
the
of
a
good way
stock above
very
common
market
at
low
a
cost.
Even
Bank
into the company maintained.
This if i- the company can get away
"right", "touch off" clause in'itself is the without this conversion feature I
usually reason I
recommend
them
so think it is to the
company's ad-
taking
value -of
account the
portion of the
slightly;
"rights"
but
the
-
stockholder,
is
greater in the case of the no strongly
to
investors. > I
have vantage to put it in.
stated manyvtimes an4; believe it
"rights" method.-.
Now as to the final method of
i ,i How much will an investment
i holder of^ a capital financing. This consists
banker charge for marketing
a subordinated debenture of a fi- of
long term debt ranking equally
common
stock?
I can only an¬ nance company will ever suffer,
with bank lines. In the case of
swer—anything up to 15% de¬ loss except through gross- mis- the com
borrows on a
pending
on
circumstances.
I management or out-right dishon- secUred
basis
,
and Insurance
Stocks
By H. E. JOHNSON
.
.
u
,
believe
is the
15%
top
will
not
with
a
qualify
as
blue-
esty.
many
sky commissioners in
states
is
thing
a
an
as
average
figure perhaps around 10% would
be
fair guess.
a
The
•
advantage
of
common
financing
is
obvious;
it
stock
commits you
and
-
.
to
increases
pyramid
many
are
and
tax
our
a
only rarely
your
finance
debenture, the tax
so great that
it is
is
understand
using a
can I
company
ferredstock/~There Ts°one
company who
k
b°rr°w on
differentiates
law
^
cSJh?
n
kv
feature
A J?0?:
would
seldom
be
prespe-
"«^fnary',„T1h/ ,c°st of a Public
+e™«J09+
let us say> be an
increase
your
bank
ture which looks particularly atlines.
■
The " disadvantages
are
tractive for public sale.
This is ..In
ending I have two last
equally obvious—principally dil¬
ution. In passing let me say that a debenture subordinated to other ldeas to leave with you: I will
which
in
turn
are
"Y to answer the question—"How
I agree entirely with the position debentures
eial form
probably
taken
by
the-New
Exchange
voting
have
and
the
virtually
are
Stock
SEC.
in
commons
Non¬
opinion
my
place
no
capitalization of
use
York
any
in
the
I
there
company.
"virtually" advisedly as
always exceptions for extraor¬
dinary reasons.
At
dividend
is
very
held
it
is
well
to
con¬
policy. I think it
important for nearly any
finance
whose
company
is
stock
publicly,
plates
and who contem¬
further public financing,
to
the largest dividend
pay
on
a
basis which management
justified. I advise strongly
regular
feels
against extras
subordinated deben-
subordinated
other
debt
bank
it is
as
disburse¬
a
loans
and
ranking equally
bank loans.
a
to
As
with
practical matter
a
conversion feature for this form
of
debenture
is
almost
essential,
do
choose
Y°u
investment
an
banker?" There is of
course no
categorical answer any more than
there is to how to choose your
accountant, your attorney
this
At
the
time
are
rarely
digress on
private
and
Common stocks
privately,
pre-
frequently,
Subordinated d£-
more
but still rarely.
bentures
usually placed privately, sometimes with, and sometimes
are
without
the
services
investrrient banker.
ident
the
could
of
°
X
J?
Perso?a* «>ntact. Unfortunately
ev?n f°da.Y fmance companies are
^
understood by a good many
lu
"S? bankers any too
L thoroughly,
an
If your Pres-
financial
time and
officer
Patience
unquestionably
they
place
so I
advise you to
stick to those that do know your
which is seldom
money
Then the average volume
the
last
few
weeks.
seasonal decline
acceleration of
During
than
less
was
integrity
and
mangement,
dividend
in
price.
on
believe
Unquestionably
the
companies has
of
case
finance
important effect
an
Generally
less
no
the
earnings
prospects,
dividends.
and
of
I
speaking
than
50%
and
known companies
considerably
The
and
more
earnings should be paid in com¬
mon dividends, and the dividends
cents
not
should
be
75%
of
combination
increased
earnings.
these
of
increased
unless
management felt quite confident
they could be maintained at the
rate
new
barring unforeseen ad¬
contingencies.
verse
in
Next
the
things
Although operating
million
the
other
paid
fees
bankers
1947—1949
median
cost of 30
a
Among
show
viously there is
the
in
1950.
and
Ob-
wide range, but
is $8,500 per
a
figure
last
final
has
result
have been
1
o
a c e m e
nt
normallv
capitali¬
~+, JfP
a raa
zation
come
preferred
stocks. would cost considei ably less than
Until the common acceptance of
l0 °.,ering"
subordinated debentures, and advantage the
until
our
tax laws
became almost
confiscatory, preferred stocks
were
an
dium.
excellent
Under
financing
existing
or
me¬
circum¬
stances they are not popular
with issuers
_Against this
coupon, rate is apt
either
with investors
un¬
sinking
tory.
?
^
fund is
usually
Insurance
the
see."
and
of
wanting
t
quite frequently
company to the
may
finance
treat
criteria
less they have a very
same
sinking fund or a
ture. They are extremely difficult
now
..
,
habit
mandaw
companies
...
,
have
at
foif
a
as
industrial
an
sell
to
However,
proper
tions.
current
under
even
conditions.
today they have
a
in some capitaliza¬
While theoretically the un¬
place
no
been that
bave
to
agree.
derwriting discount for preferred
stocks
would
might
ure
on
senjor
use
6%
as
A
an
as
10%
15%, I
market
jssue
could
I
fig¬
commons,
average
Now
we
debentures.
come
I
Debentures
ise that the record results
As
an
indication
operating results,
to
am
subordinated
undoubtedly
prejudiced in their favor and be¬
lieve that for many finance com¬
panies that face new capital needs
they are the answer. A common
provision is the so-called "touch
off"
clauseJ which
is
usually
placed at 150%/ This* means that
net
worth
as defined" must
be
maintained
at
company to
been unable to.
150%'4 of the
out¬
Having
for the average spread
6% on preferred,
figure of 4% on sub¬
common, and
a
ordinated debentures.
of
In the
„
above last year, gives prom¬
cases
what
might be expected in the way of
have prepared
we
estimate of operating earnings for 1952.
an
.
!) Mos. to
LOS
ner
to
nearly
preferred
the
amounts.
1951
Operating Earnings
Reported
Estim.
1951
1952
Change
Bank of Manhattan.',
$1.64
$1.57
+
19.81
18.42
+
2.90
2.17
0.3
4.68
$2.45
26.00
4.00
3.50
4.00
4.90
5.4
21.69
22.50
17.66
21.00
6.53
1.14
+13.8
+ 1.2
+ 5.3
3.88
3.65
+
1.55
4.96
8.00
1.65
5.15
15.14
2.88
_
Bankers Trust
11.43
2.47
15.92
3.51
8.09
21.00
4.00
8.40
Chase National
2.48
2.00
Chemical Bank
2.98
4.5% $2.37
7.5
22.05
+33.6
3.49
+24.0
2.88
+17.8
3.29
2.53
Corn
Exchange
3.68
-18.61
15.30
13.45
*4.25
Guaranty Trust
3.67
*17.60
First National
*4.20
1.20
.
Hanover Bank
Irving Trust
—
lviariuiacturers
Trust
Morgan, J. P
fNational City
York
New
S.
U.
Trust..
"Indicated
As
6.49
can
earnings,
be
seen
+16.6
+ 5.0
2.91
*13.94
...
*12.86
tlncludes
in the
City Bank
above
6.3
+ 32.5
6.18
2.67
Trust,—
National.
Public
+
—
—
8.2
4.02
3.85
+
8.4
17.80
18.90
Trust.
Farmers
figures, Bankers Trust,
Chase
National, Chemical Bank, Guaranty Trust, J. P. Morgan, and Na¬
tional
City have made
months'
in earnings,
trend
showing
best earnings
the
in the
nine
While all of the banks did not follow the upward
period.
possibly because of individual operating con¬
ditions, most institutions showed
results achieved
a
favorable improvement
over
in the first three quarters of 1951.
Last
year
several banks had
Financial
has
bad
confronted with the
debt
reserves
Chronicle)
affiliated
Lynch, Pierce, Fen-
Beane,
523
West
and
same
other
This
retroactive
year
they will
problem although provision for.1
year-end
adjustments
may
mod':/
final results.
Nevertheless,
mate
Calif.—Frank
become
to provide for the
tax increase in the third and fourth quarters.
so
on
the
basis of
present
indications fou the
far in the current year, we
would exp :A oper¬
ating earnings of the different New York City banks tu approxi¬
Lynch Adds
The
Merrill
&
■
Bank of New York.
not be
therefore by saving
ANGELES,
Brown
*
Sept. 30
1952
results achieved
CSpecial
table showing operating
a
but
sman
Merrill
gross.
expected for this year will be achieved.
Sixth
the estimates shown in
When viewed against the
for
the above tabulation.
background of declining earnings
industry generally and considering results achieved in earlier
periods, the showing is especially favorable.
Street.
With Barrios Investments
case
R. A.
Wildenberg Opens
(Special to The Financial Chronicle)
public offering sinking fund
especial to The Financial Chronicle)
could be nominal, perhaps only a
ST. PETERSBURG, Fla.—Rich¬
HERMOSA
small percentage of earnings say
BEACH, Calif. —
5%. This to me is one of the greats Robert A. Wildenberg is engaging ard S. Wessler is now connected
advantages of public sale against in a securities business from of- with Barrios Investments, Times
private placement. In addition if fices at 349 34th Street,
Building.
conditions became very bad; and' '
of
a
BANK
and
,
the
of
finance
money,
issue
company
if
it
were
lost
a
INSURANCE
STOCKS
a' lot.:
publicr
surely
they could almost
While this Clause could get a buy in subordinated debentures
finance
company
into trouble, at a big discount and correct their
much
more
; advantaexperience has proven that their position
assets are sufficiently liquid, so geously. While a conversion feathat if the need arises essential ture is not essential for public
liquidation can be effected.
If financing it is highly desirable
standing subordinated debentures.
be
banker.
with
considerably greater.
suggest
fn
upon
increase,
operating earnings this year
Operating Earnings
ls ?ne °f the most important
functions of the investment
have
M.
I
not
but try
unnecessary,
insurance
10%
as
an
earnings for the nine months to Sept. 30, the operating earnings
be
I will close
registration, which
will
be
but not a great deal more,
than legal fees connected with a
private placement.
Spread will
on
large
a
f^af Swing expert advice on niar-
more,
used
"
issues
of
an
for
neither type of
placed at a price
comparable to prices for existing
st0ck-
public sale will have the cost
for
preferreds.
Subordinated
is
an
We
wouid
unfavorable
as
be
run as
if I used
figure on
say
average
would
high
get
provision
fjxecj sinking fund, a conversion
leature or b*th The situation as
^ affects both subordinated and
except for market
sinking fund,
purposes,
a
leverage influence
have shown
running steadily ahead of the comparable 1951 periods.
that the current rate is in most
comparative
a Preferred stock
at the present time would have
A finance company has
depreciating assets and
the
.
for
issues< 1 believe
company.
large fixed
convertible fea¬
a
expenses
Thus, the gains made in the nine months to Sept. 30, plus the fact
para-
issue would only influence
^be market adversely to a slight
extent. On the other hand I feel
fbaf
*be Present time it would
be extremely difficult to sell a
preferred stock and it could not
be S(dd a^ anywhere close to the
market
yield
this subject.
this
a new
quoted
dollars
Private
of
order
they
years
the
as
larger
a
factors—higher interest rates
they have been easily absorbed in the higher
wrote
to as much
under unusual
copy.
investment
to
two
volume—has had
loan
advice
up
Washington
per
This has meant that
than short-term government securities.
your
—
from
than
more
record highs during
new
normal, partly as a result of the
It is shown below.
ence to interpret it correctly. For
as
possibly 5%
example as I write this it is my
circumstances. A study made by opinion that a well-known finance
the SEC has recently been pub- company with an active market
lished, entitled "Privately-Placed f°r
common stock could sell
Securities
Cost
of
Flotation." a new issue at the Quoted market
Incidentallv
it
ran
he
nrorured
and tbat an announcement of such
available
no
last
spring and early summer the
portion of earning assets has been placed in loans which
as
strength
reaching
the
defense activities.
reported for 1951 and
securities
on
of loans has been higher this year.
In fact business loans have been
" of
sources
on
rising yield
only now being received.
are
Problem- Your attorneys and your
I
a
considerable time lag after rates
a
raised initially, the full benefit of the adjustments made
December
When
chief
and
have
comPlete financial re¬
?n<?. excellent reputalargely a matter of
of
placed
stocks
has been reflected in
well
I
advantages
ferred
as
or your
privately about as well
by securing the services of an SraPh I was wondering if it will
adequately reflected in a higher
investment
banker.
Investment be true ?h *his daY when I am
price for the stock. As we know,
prices of stocks are governed by bankers' charges for this kind of P0w talking. The market for new
service
may
run
from a
very issue securities is a very delicate
many
considerations,
of
which
small fee on large issues of well affair.
It takes years of experiperhaps the more important are
of
ment
there is
Inasmuch
The
public placement.
this time
sider
of
loans.
i
sen private and public place' However, as pointed out
version
The rise in interest rates put into effect in
1951
are
Very
far this year.
so
the final months of
v
InSS6 f ^
any
secured
a
debenture.
mil
fne
Conditions have been especially favorable for banking opera¬
tions
,
Bank Stocks
—
earnings of many New York City banks are ex¬
pected to reach record levels for the current year.
same
;l
Now
causes.
Operating
debt
T_'+u«
from disaster
subordinated
advantage
of
pool.
extremely large,
so
term
to share in the
would have
pro-
between dividends paid on a preferred stock, and interest paid on
base
the
long
know that there
us
that taxes
fixed charges
no
that you can issue
senior securities and
so
more
of
safeguard which will
new
greater spread.
talk? such
All
no
issue tect us completely
If you can arising from such
any
This Week
u
Ldgerton WykOii
^/special to the financial chronicle)
Open Florida Branch
FT. LAUDERDALE, Fla. — Ar¬
LOS ANGELES, Calif.—Robert
L. Gillilan has become associated thurs, Lestrange & Co., Pittsburgh
with Edgerton, Wykoff & Co., 618
investment firm,
has opened a
South
Spring Street.
He was
formerly with Quincy Cass Asso-
ciates.
branch
office here at
west Fifth Street.
307
South¬
Laird, Bissell & Meeds
Members New York Stock
Members
New
Exchange
York Curb Exchange
120 BROADWAY,
NEW YORK 5, N. Y.
Telephone: BArclay 7-3500
Bell
Teletype—NY 1-1248-49
(L. A. Gibbs, Manager
Trading Dept.)
Specialists in Bank Stocks
22
Fin«nrial.CI?romci£...Thursday,November 13,1952
The Commercial and
(183$)
fessor Hicks; deserves,
lessor:
the.gratis
the monetary -authorities
of
tude
ude
mAni^Kw
and
4'
Continued irom
•>-.u•:' r?'. >V-.»*
'
*
I.
monetary experts for having
r*-s
<-■■■*>' '•
•
"
".J*
'
.
f
A
put. forward ..a proposal -which
shoyld stimulate original thinking.
l
Dr. Einzig, commenting on the
ment's "dear
failure of the British Govern¬
resulting inflationary effects, explains proposal of the econ¬
omist, J. R. Hicks, to
discriminatory tax
a
bank rate,
use, as an
of
the
"Bulletin"
tion.
suggests that one way
might be the
He
Oxford Institute of
adoption
fessor
The result of this would
be that private borrowing would
5
,J
become more expensive while the
cost of the short-term public debt
would remain unaffected. Indeed
J.
ally
o n e
as
the
leading
economists of
our
genera¬
tion,
f
put for¬
ward
gestion
bank
is
Britain
in
a
distinct
tion
The idea is not so revolutionary
a
at first sight. Some¬
thing somewhat similar had in
fact been in operation in several
anceofthe
Paul
Dr.
money
F.inzig
.1
-
,
policy adopted
year ago.
time
that
countries
Continental
for
many
Austro-Hungarian Bank had been
rect
the
prevailing inflationary under statutory obligation to pay
disequilibrium would be to raise t° their respective government
the bank rate. It was assumed that interest on that part of their note
if only it is raised high enough issue which exceeded
a certain
it is bound to produce the desired limit. Once the note issue reached
would have to do in order to
effect., The
bank rate
from 2% to 4%
©us
3rd, Blunt, Ellis &
Chicago; Douglas G.
Blunt,
mons,
Bon¬
Bonner
ner,
result
fell
raise
to
Central Bank had
limit the
that
raised
was
interest charges and
its
all the banks had to do the same,
con-
siderably short of expectations.
interest
High
rates
■
of
:tended
stay
nom¬
&
income
Sim¬
Gregory,
that
course
not high -enough — k
deficiency which could and should be
borrowing it had to pay;
higher rates in accordance with
the
market
conditions
it
had
rectified by
created.
was
v
t
j *
further rise.
a
There
is practically
no
trace of such
agitation in Britain today. Even
"
not
bank
clamoring for
rate.
5%
a
6%
or
the
,
,
.
,
would
Germany
the
tax
and
levied
was
issue—which
note
Austroon
constituted
it
Association1
of"^ meJ
term?
the
surplus position and earning
P
'
year
.
a
The pronosed Nominating Com-
seems
^dlrecti°n- Towa^ds
of October
end subordinate part in the
Treasury Bill rates
tually
declined
shows
at
count
One
that
rate
any
market
terms of
slightly
not
is
ac-
the
tion
dis-
the
reasons
bank
the
;
Government is reluctant to
carry
its dear money policy a step fur-
the
Chancellor
of
the
monetary
consist of bank
credits
for
re-
1953
George E
is
follows-.
as
Barnes
Wavne
Hum.
,
*■
Chicago-
Smith?
W
Go^'New
Barney &
Wilson
by
discriminatory tax
Election
of
the. Board
Co.',
of
Stock
York
credit
Ex-
a
accommodation
ex-
declines
the
tax
new
will
mstitu.tion without shame attach- Federal Reserve s peg, were_ re
he
to4 and.the severest wmpeUt've condrtmns enveloping, those
Perry
Room,
Exchange.
L
another
is
crease
the
bank
rate
realization
in-
that
would
in
ment
existing circumstances high bank
tion
rate is
apt to be very costly to. the
Treasury. The public debt today
is
about
three
times
iJm/
turities.
bank
frm.iirtc
.
business from offices at 430 Clin-
is
quently
to
this
substantial
H. P. Lee Opens
its
Conse-
alone
decline of
Lee
is
high
affect
business from offices in the Cowa.
Building.
very
debt.
.
,
The
amount
of
the
would
...
.
.
.
means
nefriicfihi^
a
no
means
a
negligible contributory factor to the budgetary
deficit which
is liable.to produce
inflation and to cancel out the ef-
fects cf deflation,
Tne more the
P
ti
,-e
expeits
around
which
strict
b>
tu
n„
British
British
to
find
it would
credit
means
without
to
of
c
,.
solution
a
under
be possible to
re-
private borrowers
hig
1
interest
raising, the cost
upon
rates
of public
borrowing. Pre fessor Hicks
to- have struck
,
therefore that
have been looking
such
a
s. ems
solu*
-r
the
C-.
,
nf
arhxrvlflor
^4
qcoo
Storey has opened offices,at 2623
Central Avenue to engage in the
r
-
'
'
-
'
-
i
rlinsmnraffiincf
types
-
of
-
the
aiming
demand
for
certain goods by fixing the terms
.
.
,
,
...
,.
\
*r
of
MYRTLE BEACH
firm
and
and
name
•
would
provide
an
even
cf
monetary
raised
policy.
The. idea
is
golden
^
d
.
are
term rates of inter-.
j
what
are
beine
treated
are,trying;
their.cake gnd havejt, to<v
mh.:iyv m^/yU4
^
qUite right about;
1
for, woll, extremists. . i-eqUir£ mortgage lenders to
one
mean
realizes
is
that ,tlie
not^"so.'ipuch
trutiL ^
^
not ."Rave
you
as.
term jnvestments
-the-facts-pf business life today,-
mj^ themselves
a
;
to take
up
com--
mort-,
time ahead. Holding;
a.certain amount of short governments iri. the portfolio is a sure,
gages-some
PGe^^c expre^iorr lasv fhq plain,
i-.'
•
believe
of
S
C
The
Mid-Coast
Realty
securedn their complacency which into cash showed that
are
doihg
-
Investment
Co.
Allan Lehman
Allan
a
half-hearted job
in
of 67.
you
were
you
only.
getting better
banking, be
my
whole
discussion is tvat all trmks should
industry
and determination toward improvthemselves
with
ing their earnings according to
Lehman, partner in the highest standards of soundBrothers, New .York City, ness. I do feel, however, that we
away
Nov. 8 at the. age should not make the lot hard and
S.
Lehman
passed
thought
Building up their earning power, earnings from a solid portfolio of
Earnings are still the categorical long maturities. It turned out to
r.ninnial
apply
ef-
certainly worth considering. Pro-
t
practically short
'
-
of
York; has said that those who try
the amount
savings
Co.,
Colonial imPeratlve of
The premise underlying
has-been changed to
.
fective weapon to those in charge
'
Investment.'
Investment .*. fn
figure
more
-
Mld-Loast Inv. Co.
Mid-Coast
certain
il
t
lNow
A discriminatory taxation of bank
a
vn
M
•
Building,
above
have
way to provide for- taking up the
Street, NeW that*! am at^uing for hamstrmg- commitments when ; they come
City, '- under - the lirm name htg-the-cpmpetitiye drive inr^sueh> due*: i'Your losses suffered when
Vlachos & Co.
;
' / a'fashioh as to-leave those banks you had to turn long governments
for instalment credlt accordingly,
advances
would
York
by
'neans OI, ? nlgne,r lax' ZRe sys"
regulating
which
Federal Reserve Bank of New
when savincs
oldest - trustee -before
would/, take, your
would, take your ^eposit
deposit,
N. yiachos is engaging downright
the securities-business frotn of-'
I would
fices at 110 Fulton
in
r»prfair>
credits
v.'
r>
Robert
tu
vears^eo
person.. You!
•Sometimes
the
tem wo"ld op,er,ate !n the.same
™ay .as ,tPc 1"s^lrPe£t -Credlt c?n"
at
loans,
h?f to know the president or the;
OlflGSt
trUSlG6
DCtOrG
th^.1' .bcWlk,'
tremes
securities business
Qf discouraging .certain
Particular
SISH.
of deposits they would accept from
any -one
Vlacho^' & Go. Formed
^
Dlimnsp
** was
public is educated
tonka severely limited
-
CHEYENNE, Wyo—Edward T.
scope for
around 20
,,
,
rt
ELT.-Storey-Opens
"the'
h
savings banks should
raise
not be allowed to borrow to
the lay when
;
•
..
trol in the United States,
*
engage in
vanc.es to: if"'™16 borrowers is
in
no
Sunlight Hill to
securities business.
which.it was originally intended.
Once the prkiciple of taxing ad-
cost of the
inxistfng"drcum'stances'is
existing circumstances is
•
.
debt
bv
by
suDstantiai
ex-
full,
scaw
24
mediat1ubstInt^raelunl:doefnthne S*UorfSon "fjf
high
public fr j' taxation • for .the
a
the
to
-
Miller & Co. Formed
-
im-
withdrawals of depos-
higher rate institutions
engaging in the securities ferentials
Treasury
Bill rates.
.
to
MIDLOTHIAN, Tex.—Homer P. ploiting their favorable rate dif-
propor-
factor
cause a
ments to raise cash to iuliill their,
mortgage commitments. Several
years of the higher coupon emmings suddenly evaporated
The
Question was brought up then as
to whether
as
larger
resources.
a sibifities far beyond the
K,
means" that°a
liable
a
had to take.
govern-
invest
third
savings banks
s0-
constantly to the necessity of liquidating assets, sometimes at
prices lower than cost, to cover
ton Street.
banks
in
:
woke up to find that this was not.
N.; J. — Perry and flow of deposits. The lower some most unwelcome losses last,
Kahn is engaging in a securities rate
institutions are not driven year as they sold out long govern-
The suggestion has distinct
f
t
KTr?SUry
This
rate
nf
to
securities
of
tend to
higher than
£fe" fr®"
^reer nrnTHir !,r T°
rfohf
wish
a
^a
appear to be important but not
the sole determinant of the shift
_
chequer
of sh1
'
;
r\
Upens
eardeg ^ tha""fra" enfs p"I^
ELIZABETH,
private demand for
result of the
V
n
Fatf® #'d vary^^from institutkmAo ^gove^n^ts Md up by tte-
Cleveland,
Governors
Rahn
-
w_ell for a bank so long as it does by savings banks of a definite pol-,.
fC not resplt from lack of enterprise, -icy of. improving their liquidity.,
McDon In *giostsavings , bank states Only, yesterday,., you will recall,,
Governors
New
n<
n
Ifork-
held at 3:45 p.m., Nov.
19, 1952 in
a
advances it
borrowing. In fact to the
ury
tent to which
a ne* -Bv tbe earlier sertianticSi;.*
:—•±•*±,■'•■1
when, a; banker felt flattered ift
W v-cahed him conservative, - a f ,>!The first part, of :my >proposaIlower dividend rate was consid- for. ruling.out cash raisable only
nnini
ntmrvrttl-i
ro+Kia*"
of.
Incc frnm tl
cred a point of strength rather -at a loss from the reasons for diyi-';
;than the opposite. It can still speak dend.rate increases is the adoption^
Corlif?-
York^C-B
of
.
cepted fact that there another of a dividend rate increase by, a.
measures of success t h a n size factor that .did net .belong there.
credits. If
means
on
'
Holden
aid,McDonald -&
private purposes
does not affect the cost of Treas-
ther and why even the most orthodox experts are reluctant to
urge
upon
liquid
discouraged
are
why
the
of
sources
thinking in
higher bank rate.
of
monetary
system. By far the larger pr'opor-
which
.
couraged and made supportable., securities at a loss to meet .trans-.
-rWe can helP to make conditions;;fers- of deposit to other , institurner
&
Co' rhiralm- Aioen h" : right for that variableness of rate/:tions. . In these instances the con-;
Alherf
^IJiLdgO,
XI.
.T
cifimfi^r, in
HiuirlonH
nflllVv
mnre
Gordon
Kidder
Peabndv & rn '
by working toward a situation in, servative 'tdividend v policy more
New York" William
R
Haffner
which, first, the stress in deposit than once has been a- casualty,
Wilcox & Gnr New York- Ranald' building efforts is on the cultiva^ sacrificed .in favor, of a
higher
H Macdonald Dorrtinick !&•' Dbm
Bon of thrift rather than on rate rate that would .keep the need for
iniS New ToS® ^EdgaY
and» second,^^.greater recognition cash from arising. Here again the:
Montgomery i Scott & Co
Phila
is given to the- once widely ac^ scales have been- tipped in favor,
mittee for
to
appear
.. similarly, maintaining a lower
preceding it.;
dividend rate „has. forced some
I think it is most desirable thatt-hanks to be ready-to sell, and
wider variation in rates be en- now and again . actually to sell,:
power instead of
oM V
Nor does the Govern-
the major part of the monetary
contemplate any supply—and it affected therefore
change. Indeed the trend .all borrowers
indiscriminately. In
to be if anything in the
present-day Britain notes play a
ment
such
to
seems
.
different. In
be
But it
that
me
iSroXui
Booker-New
Professor Hicks" scheme
Under
the result
Mr. G. R. Hobson who had agitated
pre-1914
ior a 4% bank rate early this year
C Hungary
is
1
—
meet
commitments. Now and again sav-
salu-
tp
na
-
for
was
rn
Kr
•
because it
effect
to raise
cash for withdrawals and to
to
NW'VnrL-•'t? u
/possible and respected in savings loss they are reluctant to take,
a
' t°beu banking and by the public. I fear and it has been known that banks
p'ofs.*
ito
r^ Merrill
Lynch, that in many quarters it goes at have decided to avoid the loss by
v
tv
ane' _,?^ew a neavy discount now. We could attracting new money through
r°ft' »rtj
'
do with closer attention to and -raising the dividen.' rate. That is
Jaffray
Hopwood, Minneapohs; har(ier
work on earning power in . clearly not the basis on which the
reward r*. Rrescott, Prescott & some directions.: But we can also decision to raise the dividend rate
Co., Cleveland; William F. Van
create conditions in which divi- should rest.. It bypasses the quesijeventer,
Laidiaw
Co., New; ^en(j increases more
nearly coin- tion whether earnings and surplus
..
-t
cide with the attainment of strong justify a rate increase.
*
;
Wnttnn
-
was
the
position generally
to. better
and
ings banks cut their liquidity so
fine that mortgage commitments
we ought to create an atcoming due can be met only by
thony &
mosphere in which conservatism selling out long-term, securities,
Gradison, W. D. Gradison & Co.,
t
t
\xt
in dividend policy is again both-naturally, at times, at a loss. This
1
effect it
extent
efforts,
long been needed.
Frost, Tucker, An¬
Co., Boston; Willis D.
"
necessary
themselves
rouse
earnings
tary. That particular stimulus had
W.
Horace
to discourage the demand
for credit, and the expanding
delphia
! .
' ^ a
demand on the part of orthodox ; trend of the note issue became
The Nominating Committee for
experts for a bigger and better' reversed. The government did not 1952
which presented the above
bank
rate
increase.
The
stock remain however immune to the
siate 'insisted ot''-HenrV^IInham;
argument of bank rate worship- ; effect of the tighter money eondi"ft
Harris Chairman Harris UohnrrP
is
pers would have been that if the
tions thus created, and if it hap- & Co New York'-Albert D Far[)
bank
rate <did
not produce the * pened to be under the-necessity
well
Farwell
Chahman
to
r«"
In prewar days a similar situation would have aroused insistent
I,;
to
ments
greater
New
York; " Charles
P.
Cooley,
Jr.,
Cooley
&
Company,
Hartford;
cor-
and yet for vari-
the
reasons
take themselves out of or to following a conservative dividend
out of the group subject to policy while they are adding to
taxes.
I am glad to say. their
surpluses by retaining a
inated to serve as Governors of
tho accnr>iaHnn of Sfooir
there were some banks that raised larger proportion of earnings.
FirmstheAnt^l
their dividend rates for no other : If we are to prepare the way
of mpmhprs in
^reason than that they could easily for dividend rates that vary more
Charles
Edear
Ames
Kean
afford &
often from institution to institu^
Tavlor & Co
New Y??k ' Jonn E
The play of competition between tion according to ability to pay,
piL*
Ri.mf
vine'^ c;^' institutions caused sqme manage- we should-put savings banks in a
have been
^
before the First World War.
Both the Reichsbank and Bie
years
it was believed at the
all
the
government
a
it appears
as
further pursudear
used for the
to be
the
of
ously with the increase in the cost
of private borrowing.
reac¬
against
Hicks'
of the
procqeds
public debt the
jost of Treasury financing might
even
be
affected slightly
in a
downward
direction, simultane¬
an
There
rate.
bank ad-
on
Professjr
to
the
were
..eduction
alternative to
high
tax
new
sug¬
as
tax
a
according
suggestion
in¬
an
genious
of
vances.
recog-
nized
of
Statistics, ProHicks, who is gener-
P.
i ■:.»
'
The following
out of the diificulty
the
of
Higher Earnings
Of Exchange Firms J, to
high bank rate,
a
will not increase cost of government financing.
LONDON, Eng.—In the current
issue
alternative to
bank borrowing. Says this, unlike high
on
In Search for
Nominated for Govs.
money" policy to curb credit expansion and the
difficult
of those
banks
that
are
an illusion. When long governments became last year no longer
able to fill your needs for
liquidgive up
liquidity or look somewhere else
for it. The latter is the right answer. Even your strong desire for
the best possible earnings should
ity
you
give
some
way
either
had
to
before the need to keep
cash handy. That is
ready
v.
'
Volume 176
Number 5168
.
.
The Commercial and Financial Chronicle
.
(1839)
what you tell fhe"
public ip spread-
ing the gospel of thrift.
gospel for you,
On
'
'
■
».
1
■
■
....
be said against them is that they ■ the trend of
deposits should bo
permitted the accomplishment by temporarily adverse. A more res¬
indirection of something thatrwas olute determination to pass up a
>
It's good
too.^>
savings banks unauthorized if done directly. The
had $5,269 million of governments « direct approach always seems to
of all
kinds, of which only $97 me to be preferable. :
million
!
',,\j
"u'.,;
v.
.'i1
—i
^ •
'*->
* ••
■
s-
,
small amount of earnings for the
help to keep cash handy for those
banks whose judgment dictates
Sept.30.
and
were
our
Jto
-were
year
mature
in-
*
one
to
$108 million,
mature in one to five
Their mortgage loan com¬
mitments on the same date were
$820 million. Cash and short gov¬
in
While
,
ings,
some
amortizations
ments,
hand
cash, and
and
for
sight do not
large enough in relation to
mitments.
seem
to meet
com¬
direct
cent
our
re¬
experience will be lost unless
savings banks
realize that
now
the wise and prudent course calls
for them
to introduce a
larger
quantity of . short governments,
maturingin a year, into t their
portfolios.
Obviously the best
to relate liquidity
to
is
course
known
and
start it
seems
reducing
cash
possible needs.
to
the
a
presents amount
deposit, amounting
on
As
r
that, without
me
of
approach would be
formed
to
of
call for
That would
a year;
four to six-fold
a
enlarge¬
in present holdings. The
only
ment
real
alternative is to prepare for
requirements by building
up actual cash itself.
~ ^
future
if
The 3 td;5% of assets
figurb is,
anything,-on the modest Side.
Should experience prove it to be
too
The
to
of
a
more
change the percentage
realistic level;. The day
counting
on
long term
ments or an inflow of
-.its to provide
.ended..
Let
depos--
liquidity should be
;'".rv'
repeat, *that, with ade¬
provisionVfor liquidity, a
savings banks
can
decide all«the
more
calmly what its
dend
rate should
freed from
cape
new
me
quate
dend
govern¬
on
a
and
be
can
having to base its divi¬
need for cash
need for cash..
a
divi¬
proper
be
to
or
:
\ v
■
es¬
•
y
;
There is another way in which
the ability of the savings banks
*,
to
meet
cash
sudden
changes in their
requirements
proved.
If
it
has
be
can
any
im¬
value,
we
should not shrink from it because
it breaks with the
long
bank past in this State.
limited
a
borrowing
institutions.
your
savings
I refer to
power
As
for
of
repaying depositors.
The Legislature has kept this lid
purpose
borrowed
on
banks in their
for
money
savings
day-to-day
opera¬
tions for the
very good reason, I
should say, that it, wished to pre¬
for
road
securities
have
a
an
could
sums
be
borrowed
real emergency.
large
large
in
this improvement in the
politico-economic atmosphere and
which
0Uti0ok
although they did
shortly
very
0f the session
rail
gave
was
any
selling
This is the kind
stocks at least
there
emergency
borrowing source
about which I spoke to you a year
city
was
of
the
on
other
bids.
Some
of
securit
ices
prospect—at least for tte
scar-
the
r?953
pprfain
best
aim^S
it seem
Parninfr<5
performance^
Ferim In Ttself
tenm* ln Itsell>
hand,
quite noticeable
a
generally considered
analysts that the
railroad
of
way
no
but,
it is
railroad
among
trend
Th'6 Sh°Wing ^ °f T heavy
There
evidence of
of
the
week
prominent role. This rally,
however,
limited
as6aan arranLmen? whereby
arrangement whe^ebv
as
last
no means confined to rail-
will
ton
th*
hfis
1952
cofoeto
iyoz 1S g°ln^ to
railroad
easily
equities
gave
late
Wednesday
eba^nb/sTrercoyncerrned ^wnfp^
funds.
ter
wafin0evid™OceP|advUlThursdav
early Ihursday
*750 million and *760 million net
n*HnZafr^
«re
other
re¬
If you
able
have
ward
substantial
very
and
borrowing
and frequently do borrow.
find also that savings and
associations
to
frequently,
make
•
all
had
the
along
sometimes
What about
from
meet withdrawals
or
have
power
So
:
In
certain
though it
defined.
borrow
to
5%
on
basis
the
up
it in
I
do
not
a
people
our
year,-or
are
As
a
time
some
to
matter of fact,
unusual
James
and
G.
circumstances
Vice-President
Manager of Magee
Law,
General
other security
groups
ceeds Frank E. Masland, Jr., Prea-
an un-
«
Masland & Sons.
t
Your
Seems more certain.
The railroads will obviously not
be farmed by elimination of the
excess profits tax. On the other
band, few of them will derive any.
benefit., One could count on the
entwined
are
of your
ac-
fingers of
Savings
trust.
private
on
business.
a
as
personal,
The
tees to succeed themselves for
an-
other three-year term were:
Joseph L. Eastwick, James Lees &
Sons Company, Frank E. Masland,
number
Jrt>
retiring Chairman
of the
Board, and Walter G. Campbell,
Hardwick & Magee Company. :
reasoned...iij some quarters, then, ^
Other
members
will
who
■
con
tinue to serve are: Frank K. BeatBeattie Manufacturing Corn-
?uce some switching from rails
pany;
banking
challenge
savings hanking is that its of¬
to
the
-
that assurance of the elimination
Of the
condition state-
profits tax may in- tie,
excess
public
hand
one
<
Re-elected to the Board of Trusf-
?? railroads that have been sublect to excess profits taxes. It is
the
in
Herbert
was
pet Company, Inc.
.
only
pubhc
d
e
seem\rmo7e"certain""" " " Adair, President of Artloom Car-
three times
distributed
vou
cannot be looked
bor¬
way.
james
D.
Wise,
BigeJow-
^ p^i}ahhihes ^,anf^d _CaF.p^t CoiS-P+^yInC'i
wfn therefore benefit llSlt 5a
will
^a f y'
Ca/pet
most
Company; Charles A. Karagheu.
and
A
from its elimination.
This
reason-
ficers
ing, while it
shhJ^aJong^witlf its^creasing^m-
^
siarlj a. & M. Karagheusian, Inc.;
Howard L. Shuttleworth, Mohawk
vestment are constantly increasing
and trustees prove themselves able to grow in expertness
may appear
sound
on
fundTavaiS^^^^^ ^ Carpet Mills, Inc.; Herbert
pany-"'Charles w! Browner., Rox]
challenge is becoming yearly more
weighty and more testing. It is the
earnest hope of so many that you
be
can
in
Of
^savings^anlfa^edaTsense
a
substitute for liquid¬
a power to fall back
sense
It
Celebrates 25 Years
the status of rail-
or on
conceive of borrowing
ity.
on
rail
«
*
for savings banks to be in
any
Carpet Institute
direct
on
tax win be allowed to die
hearine
Dearmg
security of millions of
dgodIp
our
statistics
Occasionally these companies bor¬
row, I believe, on an unsecured
basis
to
meet
lending commit¬
ments and in anticipation of
pre¬
mium receipts.
power
without
wunoui
ago
and future
I may
any
results of
any
influence
securities for
some
ceptance carries with it truly so¬
bering responsibilities. The plans
that I understand there is no
provision in the
insurance law
unsecured
a
amount
decade
a
say
limits
close
ctose
more
dividends
basis for the purpose of ijir
or
yields
it is quite possible that relative to Carpet Company,
paying about $300 million of
are
Incidentally, these life
companies cannot borrow on a se¬
prohibits
substantial
come at least.
more and more of their
savings to you, and to them you
Insurance.
rowing
and
.
earnings
bringing
assets, with a higher
percentage possible on the ap¬
proval of the Superintendent of
which
cannot
cannoi
More and
of
vesting in other securities.
be
Dr^sent
low
e c
permitted
secured
a
....
exists,
'
to
will
Whh
trading week.
road
T
l
.
are
of. the more price_earnmgs
some
trend
vear'
.
somewhat vaguely
y
*
y
:
You may be aware that life in¬
surance companies in New
York
State may borrow under certain
They
this
next
masters of their rate
is
restrictions.
that
"onTinued
gewtehvjgjg. were mjfeu*. ^ ^ ^asis******* bulK-T
persisted through the rest of the lshness 1S clearly apparent.
or
other
states the power to borrow
beijeve
high terri-
new
Moreover, 1952 dividends
was e 1 e c t ed
poli- Chairman of the; Board of Trusdestiny to a tical
developments may
react tees at the Twenty-fifth annual
degree which they have not ap- against the rails. For one thing, meeting of the Carpet Institute,
peared to believe possible this it may now presumably be taken inc., held yesterday in the Walyear
'
'
for granted that the excess profits dorf-Astoria Hotel. Mr. Law suc-
Hampshire
savings banks. Minnesota statutes
permit borrowing 'by a savings
depositors."
re-
policy. With, this limited borrowing power and with a
quantity of assets readily convertible without loss, all banks can be
borrow
to
valuable
a
the banks already
dividend
to
New
do
.
being
as
power for
tory an(? eYen
their strength and meanwhile wish
to
follow
a
more
conservative
to make new
unlimited
limited borrowing
a
.
loans secured by mortgage or real
estate. New Jersey savings banks
money..
envisage
usefulness, however, to the banks
It is doubtful if the
that are working
away to enhance the election will have
can
sources
hitw
stocks moved into
jncome.
betw<^
mnnink
esbmates
running well ahead of a year
aS° and there is every reason tograde rail
A number of
A numhpr nf tho better
the
the
of
strong in earning power and surplus. It might be of even greater
in other states? In
various
solution
a
enr
evidence
hopeful that consider¬
has been made to¬
am
finding
serve
steadily,
Connecticut these institutions
months,
progress
privilege
and
savings banks' bor¬
powers
borrow
I
of the power.
use
rowing
have
borrow
I
several
problem.
powers
right
the last
over
look at other types
of banking organizations you find
straight off that commercial banks
will
you
know, the statute now allows sav¬
ings banks to borrow only for the
wrinkle
new
of
With
ground
cured
-Question of Limited Borrowing
latest
borrowing power
for business purposes of which I
low, as experience has -cer-»
fa inly shown that ik>
provision at bank "for current necessary dis¬
all for real
liquidity is unwise, we bursements or the demands of its
could then
the
by
on
quality
loan
falling due in
with
Wednesday
was
ooenine
ago. The Department has devoted
considerable attention to this mat¬
to: 4% of liabilities, a
minimum of'3 to 5% of assets, the
exact figure
depending on the in¬
stitution's special situation, should
be
maintained
in
governments
bank to another depending on
institution has come up
business structure.
our
strone
ceiving and investing the public's
the
average
departed from
institutions
or
inere was a strong opemng on
Th
chasing back and forth from
promotional purposes.
better.
Rails
on
,em-
XifftransWfK J—* *
one
reviewing
the prohibition
against our savings bank borrow¬
ings to take up commitments, I
have sought to see whether it con¬
powers
more
which
Here again the
over.
Basis Exists for Continued Bullishness
strength
reserve
Finally,
from
In
You
on
was
increased.
on
com¬
that looks rather
me
surplus and
2rasurSK=is"e
rate will help to keep deposits
advanta¬
an
mortgage
borrowing from the public.
In this case, too, it would be bet¬
ter to
borrow outright than
to
continue to pay the higher rate
after the situation it was designed
in
I believe that the lessons of
To
is
lower dividend rate be paid
a
until
been
at hand
were
on
that
they
have
like
mitments outstanding.
.
raising cash
in¬
though
as
otherwise
geous basis to meet
earn¬
in
and
not
dividend
1
greater good of .maintaining a de¬
gree of genuine liquidity will also
few circum¬
a
voted if other means
repay¬
equivalent
were
which
looked
would
cash will come
the next year from
over
in
creases
ernments combined fell $150 mil¬
lion short of equaling the commit¬
ments.
Also, there
stances
2.04%,
or
years.
•'
23
,*
continue
to
to
measure
the
to
up
challenge, successfully.
meet
engagements when the sup¬
ply of cash and short governments
prove inadequate.
It might have
a place when, as
the commercial
f™*5 ^
°e][l\£)S1et^1gy
profit? tax need nQt necessarily be
gratified by sale of stocks, such as
the rails, which
do not benefit
bUry CarPet C°mPany; WiUiam F'
C. Ewing, Alexander Smith, Inc.
Continuation
gpam was
0f
directly.
term
the
basis, railroads
on
a
long-
Carpet In¬
approved by the Board
Trustees. -'
,^
Frank E. Masland,
Psychologically, and
Samuel Franklin Adds
of
stitute long-range marketing pro-
Jr., President
of C. H. Masland & Sons and
re-
just as tiring Chairman of the Board of
by the change in Trustees, of the Carpet Institute,
becoming over¬ banks sometimes find, there are
(Special to The Financial Chronicle)
AMruT pc
rextended in their ^commitments. advantages in
Trt £>nVi
tbe political atmosphere as any welcomed the guests to-the
LOb ANGELLb, Calu.
borrowing over the
As the /very .inner shrine of con¬ sale of
«|osopn other industry. The business pic- Twenty-fifth Anniversary luncheven
short governments.
Turefsky has bqen added to .the ture has not
servatism, savings banks were ex- In any case, if the power
changed. It may be eon and delivered the keynote adexisted, stalf of Samuel B. r ranklin &
I pecteti
taken for granted that our foreign dress on "The
to'.- practice what .they the same earnest effort should be
Carpet Business in
Company, 215 West Seventh St-.aid
preached to the pjublic^that is, to made by
programs will be continued the Fifties." Other speakers were
savings banks to get out
'
'
and that there will be no signifl- Dr. Lionel
accumulate the money first, then of debt at the earliest
Edie,> Investment Adopportunity
cant letup in our own defense efbuy, - instead v.of V thev other way that is now made by commercial
viser,
who
spoke of -"Business
With King Mcrritt
•'
fort so long as the present inter- Prospects: Short and
around.,
banks which borrow
Long-Term,"
temporarily.
(Special to The Financial Chronicle)
national tension
;
remains.
; Experience has shown, however, The common concern of all should
Thus,..aind William Pahlmann, Decorator
that .^getting at commercial bank be to
LOS ANGELES, Calif. — Omar a political change is not apt to and
avoid the habitual, day-to¬
Designer,
who
talked
of
H. Cowles has become affiliated .bring with .it
credit can; take other forms than
any change in the /'Carpets in Today's and Tomorday use of borrowed money. Jn
"with King Merritt\& ;Co., Inc., .prospective; level of business"and row's Homes."
loans.
SeveraL savings banks some states where the
\
power to
the level -of railroad traffic. These
sought last year to escape from borrow exists the savings banks 1151 South Broadway.
much
vent- them from
r
are
affected
,
■
,
-
.
.
,
'
...
-
-
-
-
.
.
the trap of weak government bond
prices
and
large mortgage com¬
mitments coming due by arrang¬
ing with commercial banks to take
scarcely ever touch it. Neverthe¬
less, in a pinch the power is there.
Given
the
such
an
attitude
should remain high
poses
mercial
What is
toward
our
savings banks
permitted, I think, to
to a quite modest per¬
(Special
to
The
Financial
power,
the mortgages. When the sav¬
ings; banks accumulated enough
cash to do so,
they proposed to
take the mortgages off the com¬
SAN
Chronicle)
in
itors.
up
was
no
part
of
claim
banks'
hands.
agreement
these
the
as
But
such
savings
mortgages.
there
on
banks
Such
might
borrow up
ar¬
of
centage
the
to
be
A
assets
for
pur¬
Hannaford
be
a
borrowing
power
step in the direction
varying dividend rates through
Cali-
Stewart
priate
Street.
additional
assurance
commitment
it
gave
program,
if
looked
for
is
business
as
to
the
so
long been in control.
nomic
same
a
SAN
Fund
FRANCISCO,
E.
Smith
Calif.
is with
D. Rubenstein
pressure
—
Mutual
would
amount
same
money.
either
Associates, 127 Montgomery
,
is
mean
of
to
.
th
,
for
the
"
in
mount_
,
'"S burden of national debt. Any,
all, of these factors
Calif.
—
engaging in
at 58 Sutter Street.
eco-
reduction
.
is
securities business from offices
a
defense
a
FRANCISCO,
Rubenstein
that have
hoped ^for,
getting the
With Hamilton Manage't
(Special to The Financial Chronicle)
This, in turn, would
taxef or, an f31"g
or
SAN
David
More
groups
government
opposed
Opens
(Special to The Financial Chronicle)
change
policies and in the atti-
toward
point
that cash could be promptly raised,
without suspension of an appro¬
519
the visi¬
(Special to The Financial Chronicle)
if
borrowed
money.
They did not violate ex¬
isting law. The most that could
Talbot,
with
now
Mutual Fund Assoc. Add
the
the.form,* of
&
is
fornia Street.
rangements would have the effect,
not
Chrobot
E.
fiscal
Calif.- -Ed- tude
which
limited
could
of
their
other than to repay depos¬
ward
FRANCISCO,
over
ble future.
Joins Hannaford Talbot
are
just
as
DENVER,
Colo.
—
Robert
F.
Bullock is associated with Hamil¬
ton
Management Corporation, 445
Grant Street.
24
(1840)
The Commercial and Financial Chronicle
Continued
from first
then
Public
Oil in Next
Gas Utilities
Electric; Utilities
Net Income
Revenues
January
February
9.6
12.6
8.1
___
-
__
August
_
_
15.4
13.2
3.7
12.2
12.6
*10.9
11.6
13.3
*8.9
7.8
June
July
20.0
7.3
6.1
May
16.5
6.4
__
15.3
10.7
*39.3
28.8
9.4
_
18.8
*35.0
are
trend with respect to net income is
exactly the opposite—electric
gaining sharply, while the gas utilities are dropping
far behind last year.
•
:f,
The electric utilities are currently benefiting by numerous
increases in rates, particularly in the industrial bracket which
traditionally returns low profits, since it is more competitive than
residential and
commercial.
Thus in
however, I'm going
heady heights
now,
grand guess to
the
of
carefully
tistical
of
oil
July, despite the decline of
4.2% in sales (doubtless due to strikes) industrial revenues gained
11.1%1 The electric utilities also have benefited in 1952 by better
"
rainfall
conditions, with hydro plants producing 9.1% more in
August this year than last year despite the fact that hydro gen¬
erating facilities
has
remained
were
probably not much larger.
reasonable
going into effect
as
a
(although
increases
The cost of coal
the
Thus, fuel costs in July
only 4.5%
rather hard hit by inwere
| over last year. The electric utilities were
|; creased labor demands, so that July salaries and
wages ran 11.8%
\ over last year, but the increase in other expenses was held down
? to 6.7%, in depreciation to
1.3%, and in taxes to 5.9%. Thus gross
i: income increased
11.8%.
While interest on long-term debt was up 12.4%, reflecting an
increase in plant of about 10%, this burden was
largely offset by
a decrease in amortization and miscellaneous
charges, so that total
income deductions were up only 4.1%. These various
^
*
changes
■;
counted for the gain of 15.3%
has
as
taken
result,
a
extent
in July net income.
Details
are
not
income
for
yet
i
August, but it is possible that the adjustment of income tax accruals in 1951 may have had
something to do with improving the
comparison.
Turning to the gas companies, the main reason for the adverse
showing is obvious—higher field costs of gas without compensatirtg retail rate increases. Thus in the month of August the gas
l
i
to
explain
the
28.8%
increase
in
net
/
companies paid $55.2 million for gas compared with $43.4 million
last year, an increase of 27.1%. Salaries and
wages gained 14.4%,
5 miscellaneous
expenses
10.9%, depreciation
and
amortization
-
iU23.6%,
v
taxes
showed
this
a
was
23.5%
and
fixed
gain of $19 million
30.1%.
While
revenues
last year, nearly two-thirds of
by the higher cost of gas; the remaining one-
absorbed
third, plus
charges
over
$2 million of net income, was absorbed by the
other increased costs just mentioned.
During this period of rapidly rising costs, the Federal Power
:
chose
inopportune time to "clamp down" on the
industry with its cost-of-money theory of rate-making (see this
column in Oct. 30 issue).
Also substantial delays have been en¬
countered by the gas utilities in
seeking higher rates, both before
an
the FPC and the State commissions. In some cases
increases
be put into effect "under bond" after 5-6 months
V
-
■
that
the
can
delay (assuming
Commission
has not yet acted), but nevertheless the
be seriously affecting the ability of some
companies
to maintain their
financing programs, geared to the huge construction program of the industry.
delays
may
B. G.
pointed
of
B.
G.
Boston Inv. Club to
Hold Dinner
Phillips & Go.
Bernstein has been apExecutive Sales Manager
Phillips
and
Meeting
BOSTON, Mass.—The
about
15
trillion
the
age-old
next din-
meeting of the Boston InvestClub will be held at the
Boston Yacht Club on'Tuesday
are
last
sharp
primarily ..by
rise
was
expenditure of some $19
in the past seven years. That, incidentally, was the largest outlay
in
of
one
relieved
to
have,
great
a
enervating and
capital
billion
a
made by any industry in a like
period in American history.
some-
..*>
lor
other
the
what
by
Free
less
tangible
other
America has
nations
tyranny
figure proves one thing
certain, our industry is a
f°r
economic
......
in
this
single physical fac-
petroleum.
important part
more
a
economic
It
is
these
years,
hydrocar-
bon cousins furnished
energy that
was not only the
cheapest on the
market,
but a
type
that
was
ideally adaptable to mobile power
plants.
Cheap petroleum fuels brought
mass production of the automobile
engine — and put America on
Cheap
the
adult
the
United
States
in
1900-
long
of
used
\.xk
times
as
it did
100%.
We
have
come
from drudgery.
impact
of
petroleum-
way up
This
wrought energy echoes and reechoes through our economy. Look
onlv at the changes it has brought
to labor
ered
by
and
These
which
of machines
use
pow-
lubricated by oil.
machines
give
opportunity
pay
skilled
dream.
present
al?
Yet
is
that
of
estimated
an
miles of sedimen-
reserves
lustl %
of
our
scattered
over
tremendous
ex-
tremendous ex
panse
The
notentiallv
rich
tidelands
of the continental shelf
largely
undeveloped. Nor have we even
begun to explore the
extreme
depths of the sedimentary seare
which may, the experts
reach down as deep as 65,000
By comparison, most of our
quence,
.sayj
feet
reserve
lies
now
feet
deeper than
no
below
the
surface
of
earth.
Every*
drill deeper
equipment and
techniques.
In
1925,
a
thanks
year
we
better
to
better
5,000-foot well
bg
deep enough
was
rarity; today
5,000-footer
relatively shallow hole. Many
today produces down to
qoo feet; some have gone bea
jg
a
a
a
well
12
NQr
Do
sav}ngs
have
we
njques
there
has
have
as
many
been
years
as
oil industry,
plagued
by
a
strange
sort
of
gadfly - the
pseud o-expert who announces
we
an
been
breathlessly
all
at
too
frequent
intervalsrthat,;tJy gosh, we're
run-
ning out of oil.
His methods
J,
between
by current yearly
pro-
with
announces
that pleased air much admired by
the prophets of doom:
"Hey,
course,
know that
Ure
is
is falderal.
10
more
of
outgo.
You
and
I
proved-reserve fig-
our
simply
measure
and
this:
at
and we're out of oil." Which,
years
0f
look
convenience, a
inventory, of income
Historically, we have
a.
always added to
than we £have
through production.
discov-
taken
erty
away
20
,
back
for
a
barrels.
^en ied
at
of
practices
unitization,
the
oil
impr0ved
Sy
the
fields
the
In
nroduo'ing
lives
of
count
we
next
not
have
but
percentage
recovery
better
have
yield
Today
well
as
pressuriza-
conservation
and
onl'
of
on
40
or
quarter-cen-
tury we may expect a yield of 60
,
In ^he
of
quarter-century to
iook aiso t0
we can
t
come
refinement
secondary-recovery techniques
0ther additions
for
try's
reserve.
ervoirs
to
indus-
the
In 1950 known
total
a
res-
"depleted"
including
'contained
p00]s
107
of
billion barrels of oil which could
not be recovered
economically by
presently perfected methods.
believe
largely
be
shall
we
cover some
We
ultimately
re-
65 billion barrels of it,
by
means
of methods
to
developed in the future,
,
Total Energy
What
ture
the
of
the
in
total
next
25
energy
years?
pic-r
Will
petroleum be able to hold its
future
moment
the past quarter-century to
underline the pomt. In 1926 reestirrmted
sucb
ipnf?thpned
own
4.5
bil-
Ourtfrroduction rate
with
an
unlimited
energy
potential.
over
were
40%
competition with other sources
of energy? Certainly we face the
Record Can Forecast
look
and
we
sompwherp
in
,*v-
,
Let's
tion
underground
our
oil through
more
imtech-
gjven pool,
a
Now
are
duction, and then
rPPOvpring
nn
a
the
production
99%
simple and, by
way of intellectual equipment, he
needs
only 1 the
mathematical
training of an eighth-grader. He
takes our proved-reserve figure,
it
of
Twenty-five years ago
spacing,
almost
through
years
pr0Vement
th® nexJ Quarter-century?
For
new
that
over
depends,
success
increased only
oil. Consider the
have accrued to us
are reserves
finding
jn
lion
Farther Yet
We've
within
sauare
formatfon
tary
on hand or
in prospect to meet the needs of
serves
ner
future
upon
enoug^i domestic oil
is
higher; working
hours are shorter; physical effort
is at a minimum; there is time
for a man to think, to
study, to
travel, to play — and, yes, to
in
the for-
all factors
—
question:
a
reserve
infinitely
for
our
First
divides
petroleum,
in 1950
2 400 000
reserves;
strength
the face of competition from other
per-capita increase of
a
than
more
petroleum
farms.
our
because
much energy
as
a
Cheap
mechanized
Largely
fuels
industry
childhood and into
power.
fuels
petroleum
aircraft
its
chal-
With
help, the search
We know that oil may be found
anywhere
technological
eign picture
_
because
nursed
our
our
fact,
during the past 30
through
here
promises;
notable
a
have accounted for nearly all
America's increase in energy
wheels.
boast., Here are
.0U1 glowing
energy sources; and here
instance, that oil and natural
Well,
the
than
gas
of
stride
revolution
for
output
in
specialties.
and it will deeuen
tail the industry s economic musjow 29 000
We'll go deeper yet
cles which give strength to this u r
kn'ow our engineers
Impact of Petroleum-wrought
no
take
can
icnge of the next quarter-century.
inSuppose we dissect in some de-
volution of socialism.
Probably
tor played
wo
other
will widen
log materials and incentives, and
denied
were
the
or
won
invaluable
the
.
struggle
freedoms.
of
their
5,000
™e ^dn uo 11
~ r,-,„
Such a
for survival, we growing^and dynamic force in the
have provided the perfect
growing economy. Give us adequate worksoil
trillion cubic feet,
unending search for ad-
our
most
1975.
lead
more
Jack J.
to
achieved
the
labor;
Jack Bernstein Joins
1950
decades Amer-
soul-destroying struggle to
merely stay alive.
In loosing the shackles of that
over
Commission
:
in
That
times
ac-
'-
available
more spectacular—up
nearly \lk times from 6.3 trillion cubic
These
of the earth's resources. We
result of the wage increases granted to the
[ followers of John Lewis).
even
future.
the past few
in
shall need
we
must
we
mankind's most important revolutions—the democratic exploitation
doubtless
now
are
petroleum,
Which
many
of
sources
becomes the choice of the
energy
economy
iy
of the
upon
of 1975 depends primari-
cost.
Only the
use
of the
junior-grade expert, most economical source available
44 Wall
Street,' New York ~Cityi
Free World has farther yet to go. with his pencil stub and his will guarantee the widest possible
Mr. Bernstein has been for
many Nov. 18, at 5:00 p.m.
' And we Americans, like it or not, knowledge of long division, to Use of energy and the greatest
years
Vice-President and
ManThere will be
nanel dicniccinn
are destined to lead the way. As report that we had only enough possible progress,
ager of Cantor, Fitzgerald & Co.,
on the subiect
•"Market and RnT we Pr°gress, so must the world; oil to last six more years His
Take the matter of coal.
In
Inc. Prior to his association with
"ess Outlook for thp Nevt
and> as the world Srows> s0 must sl™cking. dlscovery ™ade a11 s.orts 1925 coal accounted for 69% of
that firm, he was with the United
Months."
Those particinating in
Petroleum industry.
°1 headlines. What happened?
the nation's energy requirement;
States Army Air Forces, and bethe panel will be Dr Douglas H
As we face
future> we roust
Five years later,, sure enough, gas and oil accounted for 28%.
fofe his Army service had been
r»pn
H
,
,
J?
.' t>e conscious of the fact that, de- we had used up 4,5-^illion barrels. Today coal supplies still about the
Administrative Assistant to the **eilemore> Dead 01 the Depart- spite our
rightly vaunted stand- Was our-reserve ^fnpty? By no same amount of energy, but repNew York
Company, ment
come a
long way, but the
our
a
City Board of
Water
Supply.
^
ment of Economics and Finance, ard of living, we are far from means. It had increased
by then
Boston University; Davit Porter, saturating the demand for goods to 13 billion barrelf
o^ a??.° k®,Man" Vice-President of David L. Babson
ager* of Charter Securities
Corpo- »
T«
a
c
ration, a subsidiary of B. G. Phil- & Co"
hps and Company, established re- man> Partner of Carl M. Loeb,
cently for the purpose of handling Rhoades &
Co., of New York.,
~
1
r
o*
-1
fT611
population,
^ and. Samuel L. Sted-
underwriting of
B. G.
new
stock issues.
'
Phillips and Company last
month doubled
the size of its of¬
fices at 44 Wall
Street, and Char-
the
shall
Census
be
Bu
-
nation
a
of
193,000,000 people.
We'll be
driving
65,000,000
automobiles,
one-third
more
than
jam
to
The
Financial
PETERSBURG,
our
with
u
highways today.
Plus 20,000,-
trucksdouble
the
chronicle)
Fla.
^0rP^ra^jpn will
ad(iuai^ers
same Robert A. White has become
hected
we
—
now
in
number
use.
u
King.Merritt &
».
conCo.
'■
jn parf because all these millions
of
Last
vehicles
will
be
lubri-
resents
only;39%
of
the
vastly
feu
know/}we 'J; Oil and gas together, account
other?'Ton:57%- :of„the total today, and
histnrv-Jfi billion bar.- our experts tell us we can
history-*5 billion Jiar-r' oim exnerts tell us we oan pynprt
expect
rels, which is mole than twice as that- ^approximate ratio to conmuch as we prodfeed. We started tinue for the next 25 years.
%
1952 with a new (record reserve—
Coal, however, has a somewhat
32,200,000.,000 barrels of crude and more versatile notential than it^
found
19?5
says,
Preserd
our
000
(Special
wkh
flrfdr
reau
b
about
King Merritt Adds
ST.
Yet
^rom
-
Yet
1975
in
Where
us
and
plants.
ume
atomic
age?
tell
by
and
ditional oil and gas, we are turnmore than twice the voling more and more to science—to
of liquid petroleum we pro.geology,, to geophysics, to engiduced in 1950.
The increase in
neering, to paleontology, geochemdemand for natural gas will be
istry,. micropaleobotany,
and
a
in
from here?
go
.
v
sta-
fueled
and
our experts
feet
the
in
discussion
a
calculated,
cated
of progression. What
curve
we
ica
industries
are
Just
to descend from the
of the
In
continuing to grow rapidly, with natural
gas outstripping electric
power—the gain in gas revenues in
August being exactly double that of electricity.
However, the
utilities
bring peace to the world and freean end to want.
dom, and
toward
•Decrease
Both
might
will help
big orders. Yet, percentagewise, we've filled bigger
look, at least briefly, to the past, ones before. From .1925 to 1950
Not that history necessarily re- the industry trebled production,
peats itself, but undeniably the In a little over a decade we have
trained economic and soeiologic boosted production by
73%, with
eye can follow major trends that
nearly half of the increase occuremerge from the past and flow ring since 1946.
*7.0
6.8
__
April
use
I
To evaluate the future
5.5%
8.0
„
March
15.3%
14.2%
7.9%
__
us.
do
Net Income
Revenues
feed
predict that its free
earnings of the electric and gas utility industries have
been making a divergent showing this year as compared with
their trends last year. Following are the monthly percentage in¬
creases over the
corresponding months of 1951 in aggregate rev¬
enues
and
net
income, as reported by the Federal Power
Commission for all Class A and B companies (which comprise all
but a very small percentage of each industry):
and
us,
heat
reserve-today stands
at nearly 200
house
Earnings of the Electric and Gas Companies
industrial
proved
our
supplied
to millions of homes
countless
By OWEN ELY
The
has
it
,
power
Utility Securities
trillion cubic feet. Since
be 23
to
page
.Thursday, November 13,1952
..
vear
year
year,
more
as
oil than in any
in
in
,
.
natural-gas
record
liquids.
must
experts to the
~
;
The
>
That sort of
dfeve .the
pseudo-
psychiatrist's
natural-|as
couch.
" ;
story is similar,
In 1925 the resetvewas estimated
past
would
converting
ucts
uuis
coal
into
Means
liouiri
developed.
economically
Such
of
nrod-'
equivalent to peuuieuui
iu
petroleum
cquivtHGiii
being
are
indicate.-
areJ
are
methods
unattractive
at
,
Number 5168
Volume 176
-the
.
.
The Commercial and Financial ChronicU
.
made from petroleum—and addi- of tax revenue. In short, we are
tional land is thereby freed for building freedom abroad.
energy, there is quite a sub- food.
,f
.
We are also building there a
stantiai 'supply:-on
nand—about-- .'-Petroleum detergents are an-; great intangible: Good will for
be
•
present;, but, should we ever
to cup into tnis source
(1841)
lorcea
,
oi
-
other example of the economic America's future. We have added
marvels wrought by the petro- a sense of social responsibility
chemical industry. We can antici- that is new in international comsometning like 500 billion barrels pate that in 10 years detergents merce.
In countries where ecoof it in Colorado alone. The techwill have largely taken over from nomic development is just getting
nical process -for manufacturing the packagedrsoap market, and the under way, we are providing emshale oil already is at hand.
* *:
fats and 'oilsnthus saved will be ployees
with
housing,
medical
Although tnese synthetic prod- added to our food potential.
care,
sickness benefits, schools,
ucts are not likely to become* ac- ^/^There^-seems
no
limit to the * public-health measures.
tive competitors oi true petroleum petrochemical
horizon.' Already
We give native workers skilled
;
in the near future, "their very the investment in the industry is training; set them up in busiavailability is heartening to the about $2,000,000,000.
Sales will nesses of their own.
We make
-future of a mechanical civiliza- total 8Vz million tons of chemicals loans and provide technical assisttion.
Their presence, too, auto- in 1952, with a value of more than ance
for
railroads,
highways,
matically sets a ceiling on the $1,500,000,000. That's quite an in- ports, agricultural projects.
price we can ask for liquid pe- crease over 1925's output of 75
We do not pretend to be selfless.
troleum, and forces us, for the tons.
But neither are we merely opgood of the economy, to compete
The petroleum industry today portunistic. We like freedom, and
.! not only within our own
industry,' produces about one-qaurter of the we like dealing freely with free
but with other sources of energy.-nation's
organic
and
inorganic peoples. Only in such a world,
."We cannot overlook the impor- chemicals. In 10 years that figure where men deal fairly and openly
1 tance of atomic energy, a tre- will • likely rise to 50%.; After with one another, can we find the
mendous
-potential
source
of that, the sky's the limit, granted long-term profits which are espower. There is reason to believe sufficient - demand
and
proper sential to a great and expanding
that there is enough atomic ener- economic incentives/ - ;
> V a
industry.
gy -available upon; the- earth to
' With all thisrgreat growth and
'
America Benefits
equa Wall
other ...energy sources potential, one striking fact stands ;; There are other
benefits which
worth.
2,oU(l years
/
Tnen, of course, there are our
tremendous shale-oil resources—
.
.
They
.
be
big.
very
big because they win
public favor, and because theirs
is a big job that couldn't be done
grow
integration
mobilization
the
sources:
-
~
•
would
we
of
No less
and
great
skilled
of
masses
research,
ers,
re¬
of
equip¬
expensive
their
low cost.
means
simple formula which
the automobile within
reach
this
in
of
which
auto's
of
tank
bottled
It
man.
every
formula
his
cost
is
gasoline
put
about
at
>■
drinking
the
water.
And
invest
;;
; -;
'
,
: out. That is the extraordinarily. accrue to America from
Within 20 years atomic energy, small percentage of the total outerations in foreign' fields
probably J in the J form of'.largeJ put of petroleum and natural gas V First of " all
>
-■
stationary
able to
op-
development
plants,'may be needed to supply the petrochemi-;the Middle
compete1 economically with cal industry.
" ■
•
our
power
East oil
of
has
resources
-
—
1cj>s
il
,.a
/0
.petroleum
ujl,
for profit, our economy
power
sources.
On
the distant would seem obvious that we, can to'Uyast•
foreign
horizon, too, is the possibility that support a huge petrochemical' in;-might otherwise
The
we. shall*come
■(
<en%F-'
low.
use,
seemsvfunctiops.^
Free; competition; amorjg_
energy
will
sources
Low costs
.And
the
the
energy,;
.keep
will
wider
the
costs
wider
mean
of
use
.,
-
.
Let's
;
\
.
World wide
turn
now
<
tion
to
of
rr-
u
%?• T
,
Technological
,
to
the
future. United/States
of American
petroleum operations
abroad,operations
which
may
and Soviet imperialism.
tvArivAti
fu
rt
growth
•
^e
anc*
Thetrecord
the
ol
Since
.
turn
in
; means that new sources of energy
.
key
a
the
to
dynamic
of the next quarter-
developed.
past half-cen-
circular
only,
I
firmly
has
World .War
.
been
.
formula,
Technology
scientific
and
re-
search in the manufacturing end
;
all
but
earnings
of
investors
to
kill
thereby
tend
in
be
engaged
in
invested
have
we
its
oil
could. be
.gasoline;
We
today
converted
to
turn, almost
gasoline.
we-
have
arises.
will
con-
play a strategic role in
tremendously important
y
„
theme
of
1952
our
Oil
'
Week.
.*
.
Materials
points
P
out
.
the
as
o
1 i
c
constant
President's
immeasurably
foreign
'standard
of
purchasing
power,
were
'
.
One
•
of
the
spectacular
more
evidences of the value of research
They simply couldn't supply suf-
is
local
our
erred, it has been in the
careful
of
■
vou
know
we
25
the
predicted
and
ag0
before
oil
it
today,
you
would
"visionary"—the
among
me
almost twice as much oil as all; roughest might
have
made
it
the rest of the non-communist "nuts." I like neither term so I
world combined. Today we use 10;, have avoided wandering into a
times
as -much
petroleum ;; per future that is either a pipe dream
capita as the European Recovery dfr a "brave new world" or the
in the future to the
world's
of
hungry population: *
(10 The tremendous production
nitrogen fertilizers has brought
of acres .of marginal
..thousands
land, under
.
vastly
more
freedom
me
to
through¬
America's
substantially
of
business
every*
fullest possible
every
to
stature.
man
grow
to
challenge is clear. We must, if
can, finally answer mankind's
age-old aspiration for peace and
we
freedom and
an
end to want. Ih
the fight to come, the oil industry
is armed
and anxious to con¬
We need1 tribute
major share.
a
much as Asia and Africa.
,
us
275%;
S,tales;
will
same
increase
period
i
vigorously
cipies that
can
skills.Private
Our
future, to
hold to
we
made
consolidate
olution
on
how
prinpast.
We
the
our
economic
our
a
by
the
meet
our
economy
wt
all
at
those features of
..
.
,
a
made
rev-
retains
its
retain
cost
free economy
American-in-
t; the customer.s free
dust
choice o£ goods
the
f0r
that
of
.men
their
free competition
customer's
presence
a
favor,
the
profit incentive so
will continue
savings
in
the
invest
to
production
of
itelping
to
•
.
raise
the
cultivation, and has standard of living of free people
increased the yield from —by providing cheaper and more
plentiful sources of energy; by
fertile farms.
-
sults
-
are
exp
.
-
r?
'
:
'the
and
.
circle
and'"
grows
.
they have assets that will retain
their dollar values.
Admittedly, there are all kinds
security buyers.
There are
give you orders and do
not wish suggestions. I just heard
of
those who
out
years
of
come
effort
to
establish
of
who
investor
one
broker
to
his
told
invest $35,000
in about
75 different common stocks which
he
had
The
selected.
This in¬
substantial commissions.
wanted it his way—he got
vestor
it!
There
to
the
also
are
optimists,
want
broker
them and collected some
bought
take
the
perpetual
who
those-
including
last
top dollar
customer goodwill.
out of every market swing, and
was once said that the life of
others who resent any suggestions
security salesman's clientele is of
conservatism
and
caution.
about five years. I don't know if There isn't much
you can do in
this is true, but there is continu¬ such cases but let these customers
a
ous
deterioration and constant
building
is
always
re¬
necessary.
However, the main consideration
which
seems
uppermost at this
time, is to find a method of pro¬
tecting those accounts which form
the
backbone
of
your
business
a
major business reversal,
one takes place.
Your
business
the
should
look
guide
you
own
as
opinions
and
of
regarding
economic
course
be
out¬
your
to the recommendations
make to
your
clients.
But it
are now
have their
own
way
and hope for
the best.
might be
an
.
other
Your
very
invitation
however,
much interested in
clients,,
to
into
come
your
office where you can
discuss their
position in its entirety
them. You might even find
investment
with
it desirable to schedule
terviews
own
in
facts
few in¬
evening in your
You can really get
office.
at the
a
the
and
work
out
con¬
a
structive relationship with a cus¬
tomer at
your
a
time like that.
present
probably
accounts
some-
who
Among
there
are
are
doing
business with several other firms.
This could give you an oppor¬
monetary expansion in our his¬ tunity to control all the business
tory. Some day there must come if
the
interview
was
handled
an?
economic
readjustment
of properly.
major proportions. This will hap¬
The retail securities business is
pen unless the
entire course of such
that, no matter what hap¬
human history has been changed.
pens, and with all of its ups and
Without being an alarmist or tak¬
downs, you can always find a con¬
ing a positive position either way, structive reason for doing busi¬
isn't it possible to put some of
ness.
The majority of people are
your customers in as strong a de¬ reasonable and
they do not expect
fensive position as they can af¬
the impossible, but there is one
ford at this time, and meanwhile
thing they will value above all
keep them still invested to some
else, and that is a sincere appre¬
extent
in attractive yet volatile
ciation of their position and their
situations?
At least, if they un¬
problems. It will pay in the long
derstand the purpose of arrangingrun to build as solidly as possible
their
affairs
in
a
sensible
man¬
now.
isn't it a logical conclusion
that you will' have clients left
with buying power and courage
even after a severe collapse?
By
ner,
.
Growth Essential
Grimm Adds to Staff r
An essential dynamic of this
(Special to The Financial Chronicle)
central economic cycle is size,
Certain businesses must grow or hedging in this manner you win
ORLANDO, Fla.—Eugene Renperish. In many industries—pe- both ways — if conditions remain wick and Alex M. Robinson have
troleum, steel, automobiles are
good they still hold some good added to the staff of Grimm &
notable
', / (2U Industrial alcohols, tradi- helping to create new skills, new
; tion ally made
from the fermen- jobs, new educational opportuniexamples — certain comtation of grain and sugar, now are ties; by opening up new sources panies, by the very nature of the
,
mean
sitting right on top of the
longest and most intensified pe¬
riod of inflationary business and
Ameri-
Petroleum the Builder
ability
is only prudent to realize that we
only "if
rectly < to ^ bulwark the enhghtened aspects of our foreign policy.
-We
mere
By this, I
expanding
and
dynamic self-sufficiency
wdl
^
than the
sale.
a
needs 0f the next quarter-century
^his means a consumption
technical
I know:
great degree, will depend
llQSk within the United
by
rise
the
in
?
na-
during the
more
make
if and when
ihe ^uper State
This
Over that period,
United;; states
By JOHN DUTTON
Successful securities selling in¬
against
.
It
>
Securities Salesman9s Corner
chilling horror of the regimented
®ices
.
the
jjfe
^goods
mean
that
based
to
The
eyes
of free men
everywhere turn to America* The
It
stood
called
have
understate-
goods.
raw materials.
So the oil can
oil
companies / already are
romnetitinn
brin^
imnroveindustry stepped into the breach, setting the pattern for aid to our'
ment
and services
and
.Take a quick look, for instance, free allies in the fields of Saudi;,th
reduction
of
nrices
Lower
at what the petrochemical indus- Arabia,
Kuwait, and other areas.
permit more oeoul'e to buv
try has meant to agriculture - In so"doing,.we are working di-
and will
seems
momentuous in the history of the
world.
proved
ficient
>
is
to
automatically
awareness
country
belabor
which
ahead may well be the most
that you must
industry as
the, kindest
1950 used
is
the birth of the petrochemical abroad 6f over 13,000,000 barrels
industr>r. The swift perfection and a day by 1975adoption of - chemical/ synthetics
The job ahead is too big for our
quickly ran; away»from the coal-, foreign friends to handle, alone;
tar
and-'agricultural industries; they lack both the capital and the
,
supplies
augment
had
T
years
.
States in
United
petroleum mission anticipates that other
Petrochemicals
•
' If
Where living standards rise, freeblossoms
and
communism
ensuing 25 years,
the commission
-in 1925, in spite of a 24% rise in estimates, petroleum consumption
-the price of crude oil in constant in
the"; Free World outside the
.
rnent.
dom
in dollars of tions will begin to, catch up with
than 16% lower in 1950 than
dollars."
the
who
big—those
is
There
growing
to
direction
to
raise
of living.
won't-always be thus. The
Commission President'^ Materials Policy Com-
y
"Prices
products, measured
-more
badness.
a
those
being
bigness
volves
If I have
Plan nations; 8 times as much as
Progress South America; over 55 times as
,
Moreover,'
.
the
■
raised
quality,^ too:
Since 1930/the octane rating of
gasoline has been^ increased by
1& to 20 numbers. "Two gallons
of 1952 gasoline do the work that
; three-. 1925 gallons did" was the
•
operations,
to
figure can be in- withers on.the vine.
The
if
if. th
the need
creased
whom
for
also sell securities
back some day
~
Conservative Prediction
and "bite you." Selling the wrong
I have attempted to predict the
type of securities to the wrong
part the oil industry will play in
people, selling the right securities
the next quarter-century. I have but at the wrong time, allowing
tried to avoid the flamboyant, some securities to stay "put" too
the Jules Verne, touch.
I have long—these are the almost un¬
attempted to paint this portrait avoidable incidents which seem to
of the future with a brush dipped be
part and parcel of the secu¬
in the relatively dull pigments rities
business.
The
long-term
of the sober economic
expert, cycles come along and can wipe
a
our
industry will remain tre- this
mendously important. factors for fight. Not only do we serve as
future.. There was a day when shirt-sleeve diplomats, but we are
crude
from
The quarter of a century
lies
that will not
huge funds to
foreign
tinue
^only 10 td 20% of each barrel of helping
.
less
business
be
the years
and
un-
America short supply.
II
giant efforf
to
project its material as
weu as its moral strength abroad.
.of
I
years,
monthsto.
.
.
_
<
Tax
confiscate
that
schemes
cen¬
believe that, in the
we shall hear less
25
importing at the rate of 75,000,. barrels
daily
for
several
limitation foreign friends.
could,wreck its limitless future.
Our petroleum industry, through
,
and
been
help rebuild the economic staand bility and self-sufficiency of our
artificial
some
source
investment.
profitable
tury.
by, the fact that, in California, my
own
company
and others have
Jury.testifies to the success of
this sound
,
because
sound
a
The Challenge
next
That this foreign oil is
already, available to supplement
faster
iwhnfeai
-
largely
prosper
investors found it
to come.
.enemy.
.
^
our; economy well play a leading role in the
; and, technology will grow, j
global conflict; between freedom
.
gone
has
to 'harness 'solar dustry "without detracting in tbc "developed ^-or worse still might
from our traditional have fallen into the hands of the
A
The'pattern for the future
clear.
^
have
industry
petroleum
prospered, and has helped its na¬
will
and
access
which
reserves
and
poor
a
should be modified. I
on
produc-y^
as
fragile thing.
lution,
economy
greatness
q]
Mr-.—.Secon.di.;:we-have gained
^
.
.
uidi1
reasonable
a
incentive
believe they
out
-
txx
.
of
unless millions of
willing to continue
the
.
combined.
are
momentum of our economic revo¬
'
-
forced
Bigness, then, along with effi¬
and
ciency
productivity,
is
a
prime essential to maintain the
•
1
cannot be
—
prospect
profit.
"
-
to
is the profit
will"'not risk
will face the future
this
brought
the
world
their savings—unless they
the
Americans
to
Simple Formula
People
savings
systems, and marketing facilities.
Bigness means mass production;
production
economy
incentive.
see
It is
the
important to the future
free
a
work¬
to risk
mass
lead
and freedom.
ment, huge plants, transportation
«
'
if
peace
Profit Important
require
They
.
-
bigness in all of its connotations
another way.
•
:
to
grow
economy,
25
p
common
stocks, if reverses
come
Co., 65 East Robinson Avenue.
f
26
(1842)
The Commercial and Financial Chronicle
Continued
in-aid
from first page
to State and
local governments or
We See
■As
"The Budget Itself.
gains for all con¬
cerned. Dispassionate
thought leaves the matriculate with
a rather definite
feeling that the significant developments
of the next few months are more than
likely to take the
form of evidence for or
against a different climate in
Washington, an altered basic attitude toward' current
problems, particularly business, and a changed and more
constructive approach toward the management of our
.
/
"The
such
•
a
intend to
moment
These,
as
ously
decades
two
;
suggest anything else.
their
send
to
r
i
a
ors
1953
or
been
made
1954
in
a
.
have
to
contend
with
in
again,
have been operating,
we
some
savings in expendibe effected by pulling
tures may
tightly, and
by ascertaining that value is actually received for essential dollars spent, no relatively significant
saving, so far as I can see, can be
accomplished except out of our
the
revenue
long-term
tions
both
others in
would
findings may be appropriately cited at
They will give a graphic idea of scope and gen¬
eral nature of the tasks ahead. We
hope that it is scarcely
necessary for us to say that, we do not for a moment
£n
that
these
to
prises
for
being
are
ourselves
and
for
this period that is tech-
Large though they
to
some
comments
of the
NICB, quoted
terest in every
wanted
it
there, whether farm
Federal
or
or
Each
can
the
extent
authorized
—
outlays
a
that
hard
can
core
be
of
V5ict?5+innifn
that in the
.new-Admuiistratlon aTighber hiold
near future> the L011"
about if,
^ interest of the securi-
gressmay do something
not
ficiaries, but in the interest of the
JSSf !!!a™
5Ju
"at
reSu^» a* teast ia the ne t ye r B^ent eqUity investors to buy the
ye^s' I11 a substantial piants and wheels and tools which
reduction m the individual tax . SUppjy the j^g we need, and to
J03.'
we-1vyan. t0
preserve
and increase - the high
0
or
,
logical
t
standard of living to which oiir
™
™e^the^o'sT'Whiten*^wouM
*** ^ome accustomed.
and'with the n^Con!
^h
nmsDect
T
wp
too
a
sum,
and
that
President will
new
short-sighted.
can, therefore,
or
we
a
forward
in
our
mutual
se-
to
high level of taxes for sometime "ess men and investors than there
to come.
^as ^een m the past,
'
„
eauitabiv
imposed,
Iear
us
the
without loop-holes
benefit
of
few, none of
justifiable cause
have any
can
for
complaint.
a
It is here that
Administration
new
hope to
us
holds
our
cut
a
.
by
no
some
percentage
doubt could be ef-
fected here, it is extremely doubtsufficient funds could be
ful that
progress,
aid materially in balanc-
ing our budget. To effect any major saving along this line would
be to disregard the homely fact
that
.
that
cannot: forever
we
alone
changes in substantive laws—
Grants-
While
savings
.
only partly subject to Congressional control.
overcome
soil for the propagation of Com-
munism.
of
only
and
on
we
struggle
our
little
survive
"island,"
and
need allies in our present
—
allies
who
are
.not
that/the
believe also
election, bringing
as
receqt
it does
far
a
greater business consciousness^ to
the Washington scene, - will re-dound to the benefit of investors,
who may look forward, with more
confidence, to an era of peace and
sound economic prosperity/
forth
investors and busi¬
as
people.
ness
without
I
;
npPpc_
reasonaWv
collected
and
favQr
or
for
and
We
can
expect
Joins Florida Sees, Co.
the
regime to collect all taxes
owing to us, and to attack loop¬
holes and corruption in their col¬
new
(Special to The Financial Chronicle)
ST:
PETERSBURG,; Fla.—Der-
win B. Smith has become affiliated
lection.
with
Double
There
which
which
Taxation
also,
are,
taxes
clearly inequitable and
should be, and I believe
well
you
know,
previously with W.
was
Two With Eisele
Eisele
ST.
is distributed to him as a
dividend. No other form of indi-
a
or interest, is subdual assessment,
Few realize one very significant
fact, namely, that this double tax•
ation
falls
investor.
heaviest
on
the
To illustrate, with
small
a
30%
normal corporate tax, 22% corno-
K.
Co..
King
*
Dayton
and
Emil
H.
have
&
7217
Dayton
joined the staff of
King. Libaire, Stout &
Gulf
Boulevard.
Miss
formerly Cashier for
Beil & Hough
be
rents, royalties
ject to such
H.
PETERSBURG, Fla.—Eliza-
Schulte
c?n}e
it
]
Mr.
(Special to The Financial Chronicle)
again when a
whether
Exchange.
Heagerty & Co.
beth
income,
Building,
Philadelphia-
Smith
shareholder is taxed not only on
the net income of the corporation
in which he holds his shares, but
vidual
Corroany,
Bank
the
Stock
a
portion of that in-
of
Baltimore
corporate dividends
on
as
National
members
are
—where,
Florida Securities
Florida
certain
double tax
prevailing
disease, hunger, poverty and ignorance, which provide so fertile
con¬
favorable consideration; of; these
and other proposals made by bust-
a
high level.
arms
they need to withstand
attack,
armed
insurrection
and
subversion, and to help them
"Relatively Fixed Commitments. Another large group
outlay proposals depends on commitments previously
mn<.t
there is greater chance of
Sress.
contemDlate
to
will be, the subject of remedial
action. The clearest example of
this type of tax is, of course, the
saved to
.
that
allocated, than to
President,
be
the
outlays
risk,
.
less fortunate than
ourselves, with
existing contracts, halting work in
revising existing statutes.
ntt
is said by some that
savings
be effected by reduction of
combat
investment
^
15
I
curity program—the program
adopted to provide other nations,
can
will
in.this period of domestic and in-'
ternational
uncertainty,
be
re-»
•
.
the
inadequate. I do not
our
expenditures
A
subsequent Congress, thus, is
made whose size—without
is
in
allocated
discover
and
been
was
believe
It
:
of
we
taxes,
more
fense expenditures at
trade
in every outlay, and
program,
fronted from the
very start with
on
£°r Zt
as
expect him to continue sound de¬
huge part of every budget
derives from already enacted
authority to spend or sign
contracts.
Each Congress enacts new basic
legislation
binding in varying degrees the area of fiscal freedom of
reneging
little
a
think that
Every budget item is there be¬
"Prior Authorizations.
successors.
in
slash
allocated too small
provided
ver¬
expected to protest its removal.
already
reduction
a(
a
be either reckless
someone
long
so
discover too late that the amount
group, regional bloc or government agency,
bureaucrat or Congressman.
Someone has a vested in¬
its
see
defense
labor
be
to
see
,
"Special Interests.
cause
to
and.
much had
I
or
only
™me/y shorts'Hhted°nifSI
merely that the public may realize the nature
and the magnitude of the
task, and the fact that time must
be allowed for its
completion.
batim:
sound;
tremely shortsighted, if I did not
say that I, personally, should pre¬
fer
securities
generally./. To the extept
period •'is shortened, to
that
arp
budget
the
corporate enter¬
our
duced; the liquidity of equity inmerely militarily strong, but phys- vestments be magnified, and-the
ically and economically sound. It volume of such, transactions, mul¬
is difficult to escape the conclu-. tiplied... 1
T
T - ,
sion that these foreign expendi- ; The advantages to.be gained by
tures are, in large measure, essen- adopting these
proposals so far
tial for our own well-being, future outweigh the benefits the goverhprosperity and safety.
'
»
ment: presently enjoys, under ex:
r
isting tax laws that it is difficult
Little Prospect for Tax Reduction to see why such amendments have
e
■
not been adopted.- It is believed
are
difficulties
are
sate
hopefully
any other difficulties are insur¬
quite certain in our own mind that
•vast sums can be
pruned from Federal expenditures and
should be. We are
hopeful that the new Administration
will proceed
accordingly. We cite these problems and
Here
investors,
Public and of free enterprise
which now stands in need of cori-
huge defense
arwn°!> POWeK
t0 be attackedWhile, as a business man, I look
or
it
cinrpp
The
dollar wisely spent for guns
be
can
course,,
ties business, the incidental bene-
which
adjusted.
every
A few of the
Of
®xtent> ? reductionI. expendi-
Paradoxical though it may
This time.:
mountable.; We
result.
from
transac¬
without saying that adoption
of this proposal would be beneficial not only to the
Treasury,
seriousfy
Ahead
gains
;on.th5 purse strings, and, to some
nically known as peace, are grim
necessities to which we must become
obtained
now
capital
goes
of course, might well be to
disaster.
expenditures
where the best will and intentions in the world exist.
pe¬
Here
savings from this
fect substantial
made
shorter
without
But,/to ef-
defense establishment;
volved and of the very
practical problems by which any
budget-cutting effort is always confronted, and partic¬
ularly the difficulties by which any budget cutting in this
day and time is certain to be faced—faced, that is, even
some
'
the purse strings more
court
existing capital
three months.
as
.
der which
source,
Such
from
but
ing, for the purpose of balancing
unbalanced budget and reducing or eliminating the deficit un-
budget estimates and various related proposals were still
before Congress, the National Industrial Conference Board
published the results of a careful survey of what was in¬
stocks.
asking for relief
equitable taxation, it is my
opinion that a large increase in
.
'
an
to restore
rationality to the tangled situation in
Washington. In May, 1951, when there was much dis¬
cussion of curtailing Federal expenditures, and when the
believe
of the
gains period to
riod, such
Your Financial Returns
any
appropri¬
dividends
of, the
common
that the Republican Ad¬
ministration will also consider re¬
that
While
Ca-
our
;
duction
from page 15
'
of
expect
even
Current effort
future budgets if
be achieved.
;
-
some
I believe that it is reasonable to
Election Returns and
effort
Difficulties
on
business and
budget problem, while'not wholly typical, is
sufficiently so to provide an excellent example of what a
will
percentage
ment.
is
Administration
example
portant stimulus to equity invest¬
his
Continued
of
tax credit would provide an im¬
Obvi¬
or
the
tax credit in
a
ate
budget.
1950
stimulus
system
neighbor, and allow invest¬
received
enormous.
It must, and we
earnestly hope it will,
work vigorously and successfully.
We must, however, not
expect too much too quickly.
This
new
nadian
■
go to
singled out the Federal budget as a matter that
well under way.
Precisely what an Administration-elect, without office as yet and without authority,
will be permitted to do in the
premises is anybody's guess.
A little analysis of the facts,
however, will make it plain
as a
pikestaff that much more time than will elapse be¬
tween now and the 20th of next
January will be required
to make any
intelligent and constructive change in this
budgetary situation. In point of fact, it is probable that .
not very much more than a
good start can be made prior
to the time
Congress must act on the so-called money bills.
and
follow
-
will be
every
to
.
of the major
some
greater
no
given to our
tion of this tax is not
possible, or
politically practical, the Congress
might, as a temporary expedient,
•
general sense, the new Administration will
corresponding difficulties at every turn. Its tasks
find
time-consuming task.
his first communication
the
cut
but
budget cutters inevitably face.
real progress is to
In a broad
effective
or even
to
are
be divided between the 1954 and
must
successor
was
;
in
in
and out
them,
cutting back, must inevitably be
President Truman
.
down
roots
Eradication of much of
which
start should have
a
before
NICB points out,
as
difficulties
What we are
saying here is merely that the situation by which the new
Administration will be faced will be complex in the ex¬
treme, that New Deal and Fair Deal programs have had
direction.
Long after
private beneficiaries of public largesse ac¬
quire vested interest. As some wit has said, there is
nothing so permanent as a temporary government agency."
in the
be
ill-conceived, and unfortunatelyperpetuated double tax. If aboli-
.
.
Permanent.
is
free enterprise than to attack this
reaucrats and
these are definitely
making may, of course, and in our judgment would,
have a powerful influence upon the thinking, the sentiments, and the plans of American business. We do not for
changes
Probably
couid
fight depression and deflation—like farm aids—or other
special projects of by-gone years persist. They have a
way of becoming permanent policy fixtures in which bu¬
Evidence of Changes to Come
that
Becomes
income
personal
actually taxed at a combined rate
57-.5%.J'j>'^-*'V
-<♦
conditions which produced them have passed, measures to
.
Evidence
Temporary
the 41%
bracket, finds that his share of
-of
by all but the most skilled technicians
difficult, if not impossible.
"
-
affairs.
The sheer magnitude, complexity
comprehension
most
in
tax
the earnings of his corporation
and scope of a $71 billion
program, presented in too great
detail in some areas, too broad and
vague in others, makes
all sides could result in substantial
on
ing
the many Fed¬
typify this type of commitment.
eral credit programs
Thursday, November 13,1952
...
-
was
-
M dwest Exch. Members;
CHICAGO, 111.
Committee of
Exchangehas
—
The Executive
the Midwest
elected
to
Stock
mem-
bership the following: J. Everett
Allen,
Allen
&
Co.,. Lakeland,
Fla.;
Lowry
Sweney,
Sweney,
and dollars in dividends and be- Cartwright &
Co.,Columbus, Ohio.
rate surtax and
tax,
a person
no
excess
profits
receiving five thous-
,
Number 5168
176
Volume
.
.
.
The Commercial and Financial Chronicle
(1843)
cifities
Continued from page 9
it
would
have
not
been
possible.
able
improvement
efficiency
in
which
operating
five
of
years
Prospective Supply of
could
machines
miracle
is, of
course, overdone.
It casts doubt
over this subject. But don't be too
skeptical. Read General Sarnoff's
speech to the Life Insurance As¬
sociation of last spring. He says,
and I think he is right, that there
is
of this
ations
from
I
large
that
don't
we
securities
perhaps
will
in
in investment instru¬
now
contracts
of
yet
haven't
that
been
adequate" volume
not
if
only large because
the
dollar borrowing power
You
used
for
see,
the
820,000, -and
continue
now
sells
will
:
owner
who
of
from
A
realize
to
manage¬
the
modernization
between
impor¬
to
meet
cost
increases
during
and
the
rate
postwar
of
these
heavy
factors, such
volume
traffic, have
no
of
will continue to act
passenger
remedy.
easy
as
as
It
substan¬
a
tial drag upon
we
invested and
will' be
less
$72
than
the
million
deficit
as
will
company
2
much business
as
it
can
Like Best
July 8, 1952
prop¬
investments
modest
by
war
surge
aviation
by
an
large
Pacific
handful
<
Airmotive
one
of
the survivors. Now with the mod¬
ern
jet, complications of mainte¬
are
multiplied many
•
nance
Extensive
times.
investment
equipment, and
technical
how
the
rules
out
in
:>•
EARNINGS!!!
know-
maintenance
AETHUR J. NEUMARK
1952
per
should
be in excess of $1.50
share.
PAC
common
stock
is
today
selling at levels far below those
which
prevailed in 1946, despite
the improvement which has taken
place in management, sales, earn¬
ings and prospects. 1951 was the
turning point in the history of
the
company,
whose business
has increased from, less than $4
-million
II
to
yearly during world War
about1 $28
the
of
other
factors
re¬
sponsible for Pennsylvania's poor
profit
margin
in
the
postwar
'
about
will
85%
be
are
of
the
or
more
road's
traffic
electrified
lines.
condition
of
road's
the
car
194641951
•
expenditures have been made for
and expansion
freight
shops and
terminals
yards,
a
n
g
n
u
ly $45
the
on¬
$200
of
self
improvement in
to be close
appears
at hand, the latter would appear
to be the more likely explanation.
especially for the
more
a
Earnings
the
of
Pennsylvania
Railroad this year should approxi¬
mate $3 a share if the coal strike
is
not
of
duration. In any
improvement will be
shown over the $2.02 a share re¬
ported for 1951. Any estimate of
case,
long
some
1953 net income is difficult at this
time. But unless there are un¬
Together,
these
systems foreseen developments of a serious
operate over 6,000 miles of road. character, there should he a very
ton.
While the Norfolk & Western has
decided improvement in
long been
with net income probably exceed¬
able
of the most profit¬
one
railroads
in
the
country,
Lehigh Val¬
showing marked improve¬
both the Wabash and
ley
are
should contribute
more
to parent company
earnings. Most
of these stocks are held by the
wholly owned Pennsylvania Com¬
pany.
Dividends from the affili¬
ing $4 a share.
financial position
The
earnings
company's
and past divi¬
dend policy are such as virtually
to assure a higher dividend rate
if
this
figure is reached. What
Pennsylvania Railroad an
attractive vehicle for appreciation
at the present time is its thor¬
makes
Railroad has portance and its strong finances
reputation for financial would appear to preclude a siz¬
strength and sound credit. Its fi¬ able price decline from present
nancial policies, since its forma¬ levels in the event of a market
The Pennsylvania
long had
a
reaction.
tion, have been among the most
conservative in the industry. Its
dividend record of
has
Joins Kidder Staff
though fluctuating
uninterrupted
over
given its stock
century
a
(Special to The Financial Chronicle)
wide invest¬
a
TAMPA, Fla.—Laurence C. Ol¬
While the road's
following.
son
credit has been weakened to some
extent
recent
by
has joined the
Kidder & Co.,
staff of A. M.
506 Florida Avenue.
by
Two With
years,
market and
remains
(Special to The Financial Chronicle)
WINTER
Its cash position
strong
holdings
and
Compton &
Wharton in Florida
still held largely
are
institutions.
mund
of
Reams
GARDEN,
Fla. —Ed¬
Hartley and Buford G.
have
become
associated
K.
real with
and
Compton
&
Wharton of
if necessary, be sold to Philadelphia. Mr. Hartley in thr
bolster its liquid assets.
past was manager of the Philadel
Investors think well enough of phia office of R. H. Johnson & C<
securities
marketable
estate can,
Well, Let's Go!
''Every regulatory agency in the Government
whose present arbitrary powers were created by
the Democratic Congresses of the last 20 years will
be summoned before the Commerce Committee that
These
them.
created
agencies,
subject of crit¬
icism, will be asked to justify
many of the restrictions they
have been imposing under Dem¬
which have been
rule
ocratic
of
the
last
two
decades.
income
eliminate
But
half
this
disparity
they
if
even
successful,
J.
1947
Arthur J. Neumark
portion
im¬
but the considerable
increase in earnings from opera¬
tions despite higher taxes and the
sharp price inflation constitutes a
major achievement for a closely
regulated industry. Without the
development of the diesel engine
and the willingness of the indus¬
provement,
new
fa-
done,
conditions
worse
substantial
re¬
Symes,
an
executive,
to
was
spearhead
modernization
able
and
and
dy¬
chosen
the
in
system's
rehabilitation
program and he has already ac¬
complished much in this direction.
Heavy deferred maintenance out¬
this
If
will
brought
is
not
become
instead of better.
"The
are
be
must
control.
new
Congress faces a
proportions.
affairs, attention
task of tremendous
domestic
In
must
M.
namic
"Inflation
under
It is the
14.5%.
was
sult.
fixed
this
before
1951
improvement in earnings will
reduction in
good
to
only
A
charges ac¬
counted for a
margin
entirely.
million
annual
levels.
For the industry as a whole
ment
Million
years.
depressed
ambition of the present manage¬
in the six pre¬
war
in
income
ally
of
to justify a con¬
advance
in
its
stock
present
taxes.
ain stan
average
own
the
on
its gross revenues to net operating
million
a
are
margin
siderable
from
averaged
$563
profit
more
The road carried through 6.6% of
pe¬
riod
its
The
fleet
Large
and
scheduled.
^
Important economies are being
The r^lroad : industry lias cbme realized from all of these outlays.
a long way since the outbreak of
The Pennsylvania requires no
World War IL even if we discbunt spectacular improvement in its
>'
for
Based
earnings which
amen¬
by diesel engines
moved
over
of
war years.
addi¬
mean
both
Pike
the poor earnings of
it remains substan¬
tially intact. Its long-term junior
able to remedy and much is being
mortgage bonds sell to yield about
done to overcome them. By 1953,
41/2% in the present poor bond
however,
years,
Members New York Stock Exchange
million fori 1952.- try;to* invest billions in
*
Pennsylvania Railroad
.
$483,000 or 74 cents
per
share,, after provision of
$303,000 for Federal, income taxes.
The company has a very favor¬
able tax position: it can earn as
high as $1,300,000 for 1952 before
experiencing any excess profit
tax, so that earnings after taxes
for the full year ending Nov. 30,
were
the modernization
multirmillion dollar
aifplaife of today must be main¬
tained, well and kept constantly
busy to pay out. Truly, mainte¬
nance
is no longer a "patch-up" the high earnings of the
business, but a science as impor¬ *Net income;of
I- railtant as the prime producer and E Class,
r o a d s in the
the operator, t ; ,
\
were
7
will
years.
in
controlled Norfolk & Western.
ment
Most
Partner, H. Hentz & Co., N. Y. City
future.;;The
1952
opera¬
service
to the best in many years.
"over-supply"
condition of; the
-postwar period. Thus, those now
well
established, such as PAG,
can
look to
a
more
promising
Net working capital is approx¬
imately $3 million; earnings for
the six months ending May 31,
by freight
passenger
Freight
sonic flying, guided missiles and
rate
increases
averaging
14%
other
"faptastic" air-weapons
-granted in 1951 and 1952 and other
which have^ .already
been tried
-rate adjustments will go far to¬
out. Such a juture is most excit¬
ward absorbing the cost increases
ing, particularly in a company
of the past two years.
A large
which is
al^o solidly and profit¬
of
heavy
repairs
on
ably established in the more program
prosaic branches of the aviation freight cars has been a drain on
industry An4 the stock stills sells earnings, but together with new
AT
LESS
THAN
4
TIMES car purchases, have improved the
*
.
it is to
keep pace With the zooming de-,
velopments in the field of supgr-
of strong
was
horizon"' must
characterize ja company if
The post¬
airplane-garages. C u t-throat
competition liquidated many,
a
range
if
non-existent.
a new
long range ndrizon."
"Long
absorbed
on
program
us
be
tions
•
of
leaving but
companies.
his
in
de ve l op me n t
as
a
major
combanyrgiving
of our
to stay in
oversupply
many
created
a
and
continues
a
revolutionary
aircraft mainte¬
nance field. The old piston engine
plane could be maintained with
brings with it
change in the
number of small shops.
to
Wolfe
lettfr to stockholders
engineering
jet aircraft also
of
..
"Stfbng, emphasis
that
wrote
advent
Thomks
President
erly handle.
The
portion of general overhead expenses much of which would have
a
available
have
plant
of
for
reported
.1951, and further shrinkage of this
huge loss appears likely in 1953.
The Security I
few
next
Ohio,
traffic
lines, and
book
confidence of
the
earnings until the ate have been
considerably less oughly deflated price. While the
railroads are given much greater
than earnings, but consolidation of Dow-Jones rail averages have ad¬
freedom in the abandonment and
its income in the parent
com¬
vanced four-fold since 1939, the
consolidation
of
such
services.
pany's statement beginning with price of Pennsylvania common
Nevertheless, the loss this year 1953 will bolster the latter's re¬
shows virtually no change.
On
from
passenger train operations
ported earnings.
the other hand, the system's im¬
The loss includes the allocation of
a
County,
ment and
Some
the
active.
page
(5)
up
conditions; (6) A serious lag
nearly
Continued
the
atomic
Excessive
years.
will
BuFl think
fully
(2)
the war;
slow
new
and at other times
been in the past.
house that
the
sell for $10,000
to
during
down,
the
policy of the central banking au¬
thorities in the future asjt has
of all real
operations;
increases
interest rate
in
new
causes.
built
and that will be influenced by
that the
property has been enormously in¬
creased.
even
development of un¬
over the last decade or
times the
be up,
depreciation in the value
dollar has meant
the
of
the in¬
they want to be fully invested.
At
growing technology but also be¬
cause
there
I expect, therefore, that these
growing institutions "will continue
to be fully invested at all times
Now, the possibilities of invest¬
are
train
mortgages
for
growth
Pennsylvania Railroad, it¬
10,000 mile net work, has a
yard and terminal costs in the controlling stock interest in four
other important lines including
handling of freight; (3) Delays in
the Norfolk & Western, Wabash,
dieselization because of dependence
on
coal traffic; (4) Heavy Lehigh Valley and the recently
acquired Detroit, Toledo & Irondeferred
maintenance
there
handle,
under go
The
depreciated
Either
value.
investors
in
its
obligations is
misplaced or the road's stock is
Valley is expected to unduly depressed by factors which
substantial industrial are not likely to prove permanent.
River
ware
tional
examine the
us
important ones appear
(1) The large proportion of
revenues derived from passenger
three decades.
or
ad¬
more
tance
gradual
orthodoxy
Investment
ment
The
ment
two
of
First let
has' been
a
of Expanding
Possibilities
and
this
for
to be:
that
funds,
the future just as there
written.
v
their
responsible
showing and to what extent
they be remedied?
can
for the institutions
securities
be
the depression by
What are the
points.
verse
though there will be a gradual
development of unorthodoxy in
have—kinds of
kinds
and
factors
power
that
concerned
vestment bankers to
analytical methods
in
and
ments
invest
to
made, and perhaps a considerable
amount of it will have to be in
novel ways:
too
its
six
in every year of
expect that one doesn't need
will be places
be
must
investment
of
amount
borrowing
$250 million, less than
one-fifth
the
at least four
part of property holders,
be
to
a very
a
has enormously increased.
type reporter].
accomplish this,
increased
the
on
by electronics—includ¬
ing you! [Referring to the stenoTo
get
now
can
The loan
value has gone up at least as fast
as the price of the house;
it may
have gone up faster. That means,
you see, that the supply of invest¬
ments from: that source, that is,
going
are
economy
$10,000
for about
in
loan for $6,000 when
a
at
ter than average for the Eastern
$18.5 million
postwar years was region and should continue to do
The
new
Morrisville
steel
slightly less than in the prewar so.
period. The present price of $19 plant will be served mainly by the
a share for its stock was exceeded
Pennsylvania and the entire Dela¬
net income of about
loan of $12,000 or more.
period of time the clerical oper¬
to be done
sold
it
good possibility that over a
a
get
even today to sustain an
market price of about par
for the system's billion dollar in¬
the
Institutional Investments
these
the road
average
Yet the Pennsylvania Railroad, planning and spending has made
debtedness. Yet the equity of this
nation's largest system, has possible.
Traffic prospects are relatively giant railroad
failed to participate in this im¬
enterprise, repre¬
favorable. The road has done bet¬ sented by 13,167,000
provement.
In fact, its average
shares, sells
,
of
27
be
Chas. A. Wolverton
given immediately to curbing waste and
extravagance, culling the expenditures of Govern¬
bringing our financial structure into bal¬
This will necessitate deep cuts in our present
ment and
ance.
expenditures.
"I
am
doubtful
whether
the
budget
can
be
lays charged to expenses and large
non-recurring losses due to strikes
brought into balance the first year but I am certain
and
Wolverton, prospective Chairman of the Interstate
accidents have minimized the
effect on earnings, as have the
delays
in
rate
adjustments
other factors, but
and
earnings in 1953
should reflect the very consider¬
that
and
a
substantial start will be made."—Charles A.
Foreign Commerce Committee of the U. S.
Representatives.
House of
Yes, let
us
get at it promptly and vigorously!
28
The Com-irterckrl
(1844)
cash if the
post-election news
brought strength.
;
Tomorrow's
•''
*
♦
*
•
>
•,
_
Markets
Before
weeks
another
Walter
sinking spell. When, as and if
that happens stand ready to
get aboard again. Even if the
reaction doesn't come, you'll
By WALTER WHYTE
have already converted some
Most of the celebrating has of
your stocks into cash but
are
we
Whyte
Says—
died
down.
Eisenhowers in, will
Now the im¬
have
market
stocks
and
in
Last
piece
sketchy
a
it
was
one
written
was
of
be¬
belief
some
that
with
Chronicle.
'
SHAKER
once
that
the
pruned
SEC
will
these
state
what
they
Of¬
firm
new
Leonard
are
A.
Hinchcliff
W.
Gilbert
and
A.
Hitz, Vice-Presidents, and Donald
P. Rees, Secretary. Mr. Rees was
formerly associated with Baxter,
Williams & Co. in charge of mu¬
funds.
with
confi¬
Prior
Hugh
was
thereto
Johnson
Co.,
was
of
either
are
beliefs
and not
as
for
facts.
First of all I don't believe that
works"
should
enough to be able to
re¬
*
*
days ahead?
Granting that
readjustments
must
place
lessen, is the
when
this
meet
expendi¬
proper way to
increased
an
taken for granted
have
cannot
some
inevitably
these
shock
expendi¬
Must
it
that this
be
coun¬
kind
dimensions
in
unless
expenditures
another
or
factor
;
conditions
.
reach
total
of
one
such
huge
to be the dominant
as
whole
our
mal
forecasts
which
of
told
World
at
that
War
time
II.
that
most certain that six
lion
idle
We
it
sent
place.
Frantic
huge
be
cities
our
cries
Congress
for
up
mil¬
demobilization had
as soon as
taken
al¬
again
walking the streets of
just
were
was
or seven
would
men
the
at
to
of
sums
housing,
were
appro¬
for
money
the
building
and
analysis stocks
corporate changes;
national
re¬
of
I
don't
as
believe
radical
as
Ellett
G.
Scarritt
changes will
is generally
♦'
*
to cushion the re¬
to
a war
a
peace
economy.
We
dismally
turned
flect
all
lived
to
be. The
the
upon
more
I
Scarritt,
Bardach,
&
in
partner
York
re¬
BRADENTON
BEACH,
Fla.
—
Johnston E. Bell and Co. of Hun¬
tington,
W.
Va.
has
opened
a
branch office in Bradenton Beach.
R. C.
Spangler Opens
WILLIAMSON, W. Va.
But
—Rich¬
Spangler is engaging in the
me
is
to
think
what
I
it
like
WINCHESTER,
M. Cantella is
investment
firm
and what
common
sense
tells
something else.
*
*
&
name
Co.
now
Mass.—Vincent
conducting his
business
under
the
of Vincent M. Cantella
Offices
at
are
53
Swan
Road.
*
A few weeks ago
it)
seemed
when
like
snow
prices
in
getting
faded
get
week I
some
good.
profits into
with A. M.
East
Kidder &
Co.,
Flagler Street.
With State Bond & Mtg.
(Special to The Financial Chronicle)
Last
suggested converting
of the paper
now
139
away
spring rains, I
was
I
do
—bonds, real estate mortgages,,
bank loans, instalment and con¬
far,
the
not
want
conclusion
adjustments
place
a
must
Whichever may be the cause or
the effect, these data
dicate clearly that prosperity ap¬
inevitable. We
and in some
are
parently goes with an increase in
private indebtedness. It is per¬
they
are to be desired.
just gone through a po¬
We have
fectly
it
While
away."
the
on
tends
surface
rent
done
ing
a
draft of
forced
stimulating effects of this increase.
Since the close of the war, thetotal amount of
creased
huge de¬
Today almost
our
fense expenditures.
consumer t and
instalment
increases, business feels the
debt
total
the
and the spending of
brings into the market
excess
fore,
true
its
sales.
when it is spent, an increased de¬
mand for goods. So long as, there¬
ex¬
that this country has
marvelous job of increas¬
is
retail
income
this
and
is, to a considerable
illusion.
an
It
so-called in¬
welfare
economic
progress
in¬
indebtedness
stimulate
to
that
course,
debt to buy goods, they
spending more than their cur¬
are
be true, one does
have to dig very deep to find
creased
of
consumer
into
go
this may seem to
that this
in
There is nothing mysterious about
this operation.
When individuals
good; don't let them take
so
clear,
crease
litical campaign where the slogan
of one party was "you have never
had it
to in¬
seem
In my
so
them
expect
respects
hence.
credit.
sumer
re¬
not going to take
or
opinion, they
draw
business
some
are
year
to
you
that
by a very substantial in¬
in indebtedness of all kinds
crease
from
this debt has in¬
approximately
billion to something over $21
$4bil¬
national lion, and the increase has been,
expenditures going on at an accelerated rate
which are directly related to the during the last few months with
production of armaments. It just the passing of Regulation W. In*
simply does not stand up to the fact this increase reached the as¬
a
quarter
income
of
entire
our
from
comes
restore
prosperity until
war
declared. This being so, why
should not they also have con¬
convince
cluded
derland kind of economy in which
the more we spend for defense
the form of bonds to finance the
and
nies, "bank
that
inasmuch
the huge
war
it
as
had
expenditures
NEW
Downer
&
ULM,
is
Minn.
—^George C.
with
now
State
Bond
Mortgage Co., £6^2 North Min¬
nesota Street,
'
me
that
arrived in such
the
we
an
have finally
Alice-in-Won-, any kind of debt whether it takes
,
give away to
bring the country out of the
depression, that depression and others, the more we will have left
for ourselves for investment and
unemployment would inevitably
follow
when
war
expenditures Consumption.
were once more
more
we
Traveling Dangerous Roads
more
We
have
cause
that
full
unemployment and busi¬
While constant emphasis has been
ness
depression would inevitably
placed upon the increase in our
be with us again.
national income and the growth in
I recalled this
episode not for our
plant and equipment, all too
historical purposes, but because
little attention has been paid to
thinking
it
about
of
many
lessons
some
from
to
value
to
of
the
future.
formed the
us
be
our
Too
habit
of
the
these items have been
mortgaged for the future. Dollar
way
incomes
may seem high,
must not be forgotten that
that
population was sup¬
posed gradually to stop increasing.
Perhaps by 1960 or 1970 it might
to be about the limit.
demand
looked
upon
stant.
for
labor
as
something
were
just so
was
con¬
and divide the work
would
frontier
have
had
so
a
passed
that every¬
job.
away,
seemed
would
to
not
be
and
t
v
"
^
<•/
• j*
-
Looking ahead, therefore, to the
one of the most important
questions we must decide before
future,
form any
we can
ion
worthwhile opin¬
to whether
as
activity
after
will
we
not
or
increase
have
business
decline
or
reached
the
pla¬
to increase
decline at that time.
or
My crystal ball is not too clear
question.
not
likely to be
sumer
But
indicate
an
certainly
that
there
increase
indebtedness
at
in
the
on
it
is
con¬
same
rate
huge volume of durable consumer
goods sold, has been accompanied
has taken place in the recent past.
ted
to
our
increase
would
increased
stimulus of business
a
number of houses erected and the
another
at
five
certainly
the
or
lead
same
six
to
rate
years
serious
trouble.
The figures
are
quite astonish¬
diminishing, wants ing. Total private debt of all bus-
grow
as
)
this
for
become mature, the
genius of our people
•
does
The
economy had
inventive
•
be deducted from the incomes and
There
an increase in private debt
many by
jobs to go around and it was our which, while its present figure
duty to shorten the hours of labor may not be alarming, if permit¬
one
the
sales,
increases in debt
Will Debt Increase Rate Continue?'
the dollars turned into
purchasing
power.
Likewise, the increase in
to about 160 million people, our
plant and equipment, the
was
aid
to
but it teau of defense expenditures, is
before whether or not total debt is likely
thinking of our economy in static
they have any significance to the
terms during the 30's. You will
ones who receive them taxes must
recall
,
activity.
the
traveling
not all lead to Economic Paradise.
learned
credit
net result of all
dangerous roads since the close of
employment
the last World War and they do
and the natural
about
are
or improve¬
plant and equipment, or
mortgages to build houses or in¬
ments to
is to act
Remove
been
public utility compa¬
to finance in¬
loans
in inventories
creases
some
logical?
prosperity
additions to
stalment
reduced to normal
proportions? What could be
The
MIAMI, Fla.—Richard T. Schutt
is
suggested getting aboard while
the
panied
in
tonishing total of $1 billion in the
but this
(Special to The Financial Chronicle)
(when Ste¬
cinch to
a
away
past four months. Time does not
permit me to elaborate in detaiS.
how it works, but an increase ir&
go up
A. M. Kidder Adds
Getting back to the market:
venson
war/
only 35%
compilation of figures, no matter
how astutely put together, ever
there
be reduced in the immediate
so.
spending
giving
or
foreign relief.
they
state of
Now V. M. Cantella Co.
be
amounts which it is now
for armaments
con¬
the unemployment problem
brought
able confidence that these will
will
the
of
was:
test of common sense nor can any
and
play an
important role in the four
years ahead. There's consider¬
like
close
private debt
ever for¬ of total indebtedness.: The
great
enough again to cut down growth which has taken place in;
materially
the
tremendous our total output has been accom¬
am
I
obligationsreached
the
At
total
production of both
peacetime goods and arms under
vinced that their origin lay
taken
securities business from offices in
the Cinderella Building.
I'd
take
why
reasons
made, the
were
forecasts
more
private
53%.
tunate
how
see
those
wrong
out
to
private debt last year
portion, of total debt represented
when the by
inevitably
as
growth
the pro¬
place if this country is
tent,
have
was
Bell Opens New Branch
■
■
course
future.
will
which
cur
that
result of this substantial
in
guard
our
business readjustments oc¬
minor
indications
to
ard C.
Taxes will of
constantly on
accept it again
whole host of other public
and
New
City, passed away Nov. 4.
believed.
*
be
to
not
a
It is interesting to note
a
government had not been able to
Ellett G. Scarritt
"
Per¬
currents.;
haps the pace will be stepped
up if the various controls are
eased or removed. However,
be
must
not
additional T.V.A. ventures
adjustment from
changes in international
and
constantly rising standard of
a
living. So pervasive was that way
of thinking for a decade that we
solve
markets will continue to
flect
approximately 12% above that a
year earlier and, as I have already
saidj reached $277 billion.
V
pro¬
V,
will continue to reflect indus¬
trial
growth in our total
a
From what I have said thus
dis¬
made
were
about the business outlook
close
for
economy?
Most of you can recall the
works projects
Vice-President and
expansion and
ductive output which will provide
roads,
& Co.
£
.
In the final
its fore¬
for future business
insure
in the
Treasurer, will
address the luncheon meeting of depression thinking of the 30's.
casting power, though I agree the Investment
The
Administration's
advisers
Analysts Society
that
in
many
cases stocks on Thursday, Nov. 13, 1952, at knew that, in spite of all the pump
seem
to
move
after rather 12:15 p.m. in the Georgian Room priming and legislation which had
(8th floor), Carson, Pirie, Scott been enacted during the 30's, the
than before the event.
the market has lost
ji
g
expenditures in the
public
CHICAGO, 111. —Charles F.
Adams, Jr., President of the Ray¬
theon
Manufacturing
Company,
accompanied by David T. Schultz,
business activity and tend to de¬
cline during periods of slow busi¬
This is particularly tiue for
ness.
a
little over $2 billion was gov¬
wth is behind us and ernment debt, mainly state and
depression
in¬ that the self-generating forces of local governments. The increase
the country be a free economy will not provide in private debt alone last year was
evitable,
priate
Luncheon Meeting
almost ••
—
seven years.
thU tender. :y to believe that bur
Depression?
ft
fortunate
Inc.,
Chicago Analysis
about• 97 %
Strange as
it may seem on the
surface, debts
increase during periods of nigh
would
to
and
be
xpenditures
gOve?r,mru*
duce defense
Saunders,
&
officer
an
he
talk
„
I
of¬
from
M. Rees. President and Treasurer;
eliminated.
or
to engage
business
securities
a
ficers of the
The
some
public
business
a
government
again "take
even
Is
perous
Stiver & Co.
will
of
relatively full
employment and generally pros¬
fices at 12930 Fairhill Road.
and
There's
sheaf
try
O.—Rees,
HEIGHTS,
been formed
Inc., has
in
lative
dence
presented as
are
takes
private debt. Last year total debt
increased
by approximately $33
Although chose who are con¬ billion, carrying the total of both
bridge the gap caused by decline fide; tiy predicting another se¬
public and private debt at the end
in defense expenditures. Tonight vere depresssion when defense
of the year to $519 billion.
$31
I want to subject this point of spending levels off may not real¬
billion of this increase was in the
view to an analysis.
ize it, bsrlr to their argument is
private sector of our economy and
"a
lines?
They
Forms Own Firm
tual
over.
thu
in
of the author only.]
in
(including a
Republican Congress) specu¬
investment
expressed
that
to be relied upon
place, business is supposed to slow ther* if > e hr
down and already we hear cries to provide the incentive for busifrom
our
government
planners nens.e-ipa.isioa. It is hard to be¬
that a severe depression will be liever iooay, but this was the preupon us unless plans are promptly Vfdbrg thinking in many circles
made for what is commonly called during the'30's.
take
Leonard M. Rees
Administration
and
-
those
theory
Republican
a
when
necessarily at any amount
of government
with those of the
tures in other
not
coincide
time
i
the
on
do
>
quality of forecasting the fu¬
ture; a quality that many peo¬
ple believe has been lost
during the reign of the New
belief is based
matter what
no
views
[The
article
.
sound quarters that the mar¬
ket will now recapture
its
Deal and the Fair Deal.
double in
And
year.
tures
the election returns.
There's
weakness
on
political party's in power.
before
Basically,
however, the pattern followed
by the maiket was what was
expected; va-- hooray at the
start with a
dwindling of en¬
thusiasm as the
day wore on.
increase lof
next
sudden
strength at this point should
be used to buy new stocks.
In fact I always prefer to buy
«
week's
necessity
cause
*
obligations of corporations, stood •
at
approximately £141 billion in1945." By the "end of 1951, this *
debt had risen to $277 billion, an
page
,
Will There Be
believe any
I don't
be made.
$
*
*
*
what
reasonable profits
can
ride
to
pens.
with the future action of the
stock
left
some
along with and see what hap¬
portant questions have to do
from first
many
older I think we'll get
and that's that.
Continued
Financial Chronicle... Thursday, November
13,1952
a*• J
during the next few
Optimistic
as
ture
and
ward
realtors
years as
are
by na¬
looking
to
ambitious
as
and
for¬
as builders must be
in
their business,
I
succeed
doubt if there are many of them
here at this convention who seri¬
ously
believe
to increase
in
the
it
will
be
possible
mortgage indebtedness
same
same rate as
amounts
and
at
the
it has been increased
Volume 176
Number 5168
.
.
The Commercial and Financial Chronicle
.
(1845)
since the close of the
three
past
years
^lone, the
nonfarm
in
crease
rose to over
In the
war.
indebt
mortgage
$66 billion
Percent-
a
age increase of 42%. Let us not
lorget that for several years we
have
been
building
larly
consumer
credit, has ex- level off and in the not
phenomenally. We must tant luture might well
panded
not
m
expect sales to be stimulated
the next tew years by such a
rapid
rate of
growth ol debtthe creoit structure will not stand
housing
more
families
the
number
of
new
created.
Contrary to
.
a Prevailing opinFederal debt has not in-
ion, our
creased
materially
World
of
year
it
was
same
as
it
But
we
own
in
II.
War
the close
smce
In
June
this
of
approximately
June
in
was
of
the
1945.
have only about held
our
spite of the fact that dur-
(4) Liquid
assets, while
still
abundant and recently
growing
at
satisfactory rate are probso wioely held as they
a
ably not
the
at
were
close
the
of
considerable portion of
A
war.
nest
eggs
of government E Bonds may well
have been spent by
ble circumstances.
those
in
hum-
also told that
were
too
dis-
ment.
was
interested
in
become
security
in
under
enterprise
and
adventure.
We
have all lived to see how inaccurate
those
forecasts, brought
forth
out
of
depression
have proven to be.
Act."
the
books
our
but
that
it
shall
maximum
be
the
not
state,
such conditions
thinking,
will
Between 1940
be
of
are
which
It
what
hoW
nor
they
The
possible
be
pursued
may
under this Act
exist.
course,
promoted.
policies
and
1950,
our
population
increased by
approximately 20 million.
It is now estimated in the
employ-
opportunities will
does
cover
wide range
a
and what they will be, of course,
will depend upon the
thinking of
the Administration which happens
Admitting the validity of these
four
points, it still is easy to
be
may
let
out
of
defense
plants.
"Full
Employwhile freelv
The preamble of tnis
sibilitv of
which
ment
who
errone-
policy and responsibility of the
government to promote conditions
more
than
on
commonly
declares
Act
steadily grow oiuer
would
called
ment
gone, toe average age of our population would
people
is
ously
econ-
We now have
what
decline,
our
omy was mature, the frontier
and
>
than
units
We
29
nave
admitting th**
soL
°k
-
defense
been
ST
reached
mistic
about
which
business
the
raoiditv
hampered
tions
bv
too
war
Srd
reside
d^vT
stonihk erlTt
n,^
can
of
a
svstem
{rcl
of
f2r nrn^2
3 !
for' tut
greater
higher
the
if
manv
shoS
Nothine
statfne
free
tnte?nrS
with
make
can
necessarv^efdiustmentf
standard
livi™
of
current decade another 20 million
COmmon
man
Given IIp
ing this seven year period of time
wiI1 be added to our numbers, to.be in power at the time.
government leadership and' rea°Kr ^edcfornao1TunfSUryi]aS+COllected over-emPha.size the importance of And this is not all. Population
Personally, I believe that it is sonable cooperation of labor with
about $308 billion of taxes,
an
any
reduction
that is
likely to
,sare now saymg that by inherent in the free enterprise
on)vUr!u
^ exceeds of taxes take place in our defense expen- 19/5 this country will have a system that there will always be management, there should lie
by over
ahead
a
20%
the total amount
long period of stable
ditures. Assuming that there will population in the neighborhood of
ebbs and flows in
the state of economic growth
which had previously
been col- be no further expansion of the 18U to 195 million
which, if it business
lected
our
the
in
whole
country's
difficult
to
157
history.
is
total
increase
of
years
It
not
mone-
tary income when the national debt
increases as much
the
and
war
increases
six
when
debt
and
when the
collects
govern-
such
stupendous
amounts in taxes and
spends them
and
outbreak
no
of
will
occurs
activity.
be
a
gain
between 1950 and
over
42
and
the
little
real
genuine
a
plans probably
reduction of
billion
large
made
progress
peace, present
do not call for a
annually.
sum
than $12 to $15
more
of
While
money,
this
even
is
a
in 50
million,
number
same
the
25
1975
of
in
years
during toward
private
it has during the last
as
years,
ment
it did
as
War
rvorean
hostilities in Europe, but that foreign affairs will remain unsettled
approximately
of people as
membering
inevitable.
But
these
ebbs
takes
now live in Great Britain.
Perhaps some of you, still
This
is
not
if,
when
one
of
place,
in
business
activity
power
a
government is in
dominated
by
pressure
groups,
re-
your Malthusian doc-
and the Employment Act
trine of population, may be won- be made an excuse for
unwise and
Bering
why I believe such
a
profligate
government
expendi-
phenomenal increase in popula- tures
coupled with paralyzing reon
armaments.
But
the
price very small percentage of the total tlQn will insure a dynamic econstrictions placed on the freedom
which the nation pays for such value of
goods and services pro- <>my an d a rising standard
of 0f business
enterprise, then it is
growth is an increased money sup- duced annually, which this
year living.
Why, you may ask, is it altogether possible for such a
ply accompanied by inflation and will
amount
to
approximately not just as reasonable to expect government
unwittingly to concent
dollars, nevertheless it
is
a
a
steadily rising price level, with $345 billion and which, it is estia
constantly growing volume of mated, will go above $350 billion
debt which mortgages the future in
1953.
With a gross national
of all
of
us.
These
product
facts
today's
clearly
high
level
show
of
that
economic
activity rests upon a temporary
foundation. The rearmament program
has
had
much
smaller
than
this,
It
tha* what takes place
and India all the time?
government expenditures in 1945-
Effect of Increased
^thout'br^n/o^a denressio™
a depression.
These
e
W1™°at bnnging on
While
it
not
is
reasonable
to
two
stimulating expect. such a revival of investonly has raised ment in plant and equipment as
spending to record took place after the last war to
breaking peacetime levels, but it help cushion the shock of reduced
effects.
Jhat this |r°wth may cause a
!°wAer standard of living? Is not
not
also®
ment
business'invest-
caused
plant
m
and
equipment
to
government
less
a
spending,
all-time
an
have made
of
peak.
The
extraordinary
in-
sources
demand which cannot possibly
continue
their present volume.
in
Unmistakable
beginning to
indicate
trends
which would
appear
that
the
demand
also
are
made
good
the
"
questions
to
them
future
conditions
j'
in
Under
therefore
"f
isit
e' 1S. 11
a°
m
say-
economic
situation
y.e.ar when an all-time record in
tkls respect will be broken. Per~
u
4
i
of
lower
11
that
nnnears
exnendi-
begin to level off at
once
situation
nvpr*
a
„UAi d,,d
figure from the
iv
that existed at the close
World
War
summarized
II
as
may be
follows:
has
briefly
natural
onr
received
all
too
There
will
be
tive, nevertheless all must admit
that thev
this
are
much less
severp
Than thfy
moment
were
at
in
1946 and, with
perhaps one or two
exceptions, they should all
thing of the past 12 months
minor
be
a
hence.
(2)
tals
and
schools
which
and
should
little
Ping
additional
con-
n°w
not dreamed of.
nublic
welfare
|alsi
' and Pablld ^Uare
mstiiuuons 01 ail Kinas must con
demand
sources of
estimates
that the backlog of
these expenditures over the next
">
years approximates
kon-
1°
my
opinion,
ure
of
total
demand
which
oc-
equipment
times
(3)
that
as
both
approximately
much
as
we
did
in
figure
o?ay weH be on the conservative
side. The rapid increase in popuwhich has occurred
in
this
at
Jive
1939.
We have already mentioned
credit
of
all
kinds, particu-
sprefd
1 furthe'
of the
been
mam
forces
making for in-
rising prices since the
will
not
WG
be
too
high.
j
our economy under forced draft
stimulated
by
over-investment
and over-spending on the part of
government and private industry. We already have a 50
C6nt d°. f a"d .frtaln'y faw of
us, wa"t to.,sae 't reach a lower
valUe than it has
a
t
in
Raw Materials Pol
on
rerenf
its
nrettv far ahpad
business
knows
what
t
goals
of
renort
when
to
future
1975
No
holds
mVself
looked
it sketched
with'
course
the
fjnd
one
certamtv
forth
hot
inC
suhstantiallv
agreement with their findings and
d|
believe thev
not
timistic
is
eve'r
fjnaUy
And
and
short"
it
as
on-
"Don't
just
true
as
was>
have the faith
look conHdenUy
j
to
courage
too
were
advice
The
America
today
think
0ur
of
tvrannv
Let
or
who
controls
SysteiT1)
serve
credit
our
of
a
Federal
Re-
deflationary
not
us
again
believe
that the "Wave rf
wjll
the
the triumph
be
return
slaverv
of
and the loss of individual freedom
ljhprtv
anH
of
th
ord
Thi* i<? not the "w»v*
Fnt1]rp »
of th
took
Iight
t+
d;smai
rpnturjPc
its
but
the
nact from
f0r
whieh
mankind
to
out
MoreoVer, in
tkis day °f rapid communications,
j believe that eventually the Iron
way
Curtain
to ke
wi]1
no
out our
be
more
able
political and
re_
jigious ideas {rom penetrating to
the
]e
leaders
behind
jt
than
their
afford to ignore the
which we are making
can
progress
in
there Is much danger, no matter
who is Secretary of the Treasury
freedom
sep
Future>.
are
have
can
ZTZZnt
the
authorities
banking
T
tup march
on
already attained.
science
and
doubt
no
industry.
These
trying times, but
the faith,
resist
fight depression. If we
do this, I firmly believe that our
best times will not be those that
lie
behind,
those
but
that
are
ahead.
policy being put into effect.
it is not desirable that total credit
should
be
materially
»
•
r
•
o
C
•ivm* vjhiiiiii oc
reduced,
whether
(SPecial t0 THE financtal chronicle>
WINTER PARK, Fla. — Edwin
mortgage, consumer or
bank credit.
In fact, it would be
a real
mistake during the coming
I
have
dismal
we
already referred
forecast
were
told
of
to
the
the %'30's when
that the
demand for materials
come
all
growth
population of this country
in
would
down
do
we
A
cross-
at
not likely
is
once.
The
fall
is
not
promptly
reduction
any
in
government expenditures,
taxes
just
to
want
w
aeiiauoiwiy spu«u.
cut in taxes should follow
"
stride
to
slowed
s owed down we d.
3
$100. bil- likely to be first in the non-fer-
this
country since 1940 furnishes the
home and abroad, is much in ex- basis of my belief that, after some
cess
of what it was seven years minor post-mobilization readjustago.
Practically
every
nation ments have taken place, this nawest of the Iron Curtain is turn- tion is
going on to attain levels
ing out more goods than it did of production and standards of
in 1939.
Here in this country we living
higher than those even
will invest this year in
plant and contemplated today.
capacity,
icv
Our busi-
tlnue. t>ecause of our rapidly in- taken n h 1 stn^'
^easing population.
Everyone
Already a considerable
lation
Plant
Committee
nofyears lunnot Dffwe must ra
learned ta
a g°od deal during the Zei keep
obelieve fear and
past 30
and I do
such
no
price
°
rpennrppe
that drives a car knows that our section of our industry has been
amount
of deferred demand
for highway system has not even be- shaken
down in line with congoods, either at home or abroad, ^un to keep pace with the in- sumer needs. The textile industry
as existed at that time.
While of crease in traffic. The director of is a good example of this. In the
course scarcities are
always rela- research of Dun
& Bradstreet coming year, the decline in the
(1)
have
flation and
encmg the g™wth in population, the
narr,jP
our
L. Bemis has become associated
transition period to put much em- with Grimm & Co.
He was fortin"e to expand for several years "ess economy has a great capacity phasis upon reducing the Federal merly with Craigmyle, Pinney &
in the future, is public construe- to make substantial adjustments debt.
While the rate of credit Co.
tion- state» county and municipal when need arises. If they do not expansion that has been going on
expenditures for highways, hospi- a11 c°me at once, such as the fail- during the recent past must be
Francoeur Adds to Staff
attention
war
likelv to exist when
somewhat
thp
once been passed. But
opinion that capital expenditures of land, natural resources and the close of World War II. If to bring
in 1953 will only be about 10% to level of industrial know-how or this about some slow-down in
15% less than they will be this technique in the country experi- business
activity must take place,
which
tures
which
the amount
upon
.
in
the peak of mobili-
alter
recession
liffisrent^in
riiffprenpp
depresdanger
real
very
war, it seems certain there will
be a
Biriefly,""eran'answer by
ms 11 depends
business
a
our
.
tor us
economy'
c
by
b"s'rnrise
Prospective Economic Changes
is
dollars annually
mrf^lrrh thpLadJ^
movement in
manufaciur^g
fechnioues th* CSlv n?
creasing outputofmrfSorSi
nlus the rapid growth of
nS
Slation all unmistakably tadiSte
this
Perhans
the
President's
0f flux,,as our?' n0 one,can d° ahead to something far more imm0re thf
an
Portant than even the ebbs and
?U6SS astV WJL the4ut"re h°.lds flows of business activity.
1
for-
of
This
that must be guarded against.
I" conclusion mayconstant state
I say that in a
world
in
such a
for
volume
prolonged
SuTrE'Tan T& barHn? the
preliminary
goods produced
in this country has
already begun
ThP
and
zation has
' «?mk Dr. Keezer s fore™ ,
<mr
naturaln resources
ca.st may be a 'lttle optimistic ample, our schools and research
when one remembers that by the mshtutions floun^ng and our
to contract.
This is only to be e"li of
, h's
year our plant capasvriem
s„v
fnr^s??n
expected as the world recovers city will have mcreasedbynbout
enterpr^se ^"bany '"oroase in
from the devastations of the last 50% since the close of World War
P°fula4l°"
r^'s. cau"S
war.
The so-called "Dollar Prob- IL
„Th>s »s a rate of expansion
nrov
5t"a ", a'
lem" of many foreign countries wel1 in excass of anything which birth rate will prove"!h stimulus
a
still exists and
increasingly they ?ve,r. was thought of as normal ?
ur economy. The situation
are attempting to meet it
by im- !" the Past- It cannot be denied,
a
port restrictions imposed on our however, that in such industries
cnnnrMCPH
ifv ctifiina
exports.
One would have to be
chemical, electric utilities, natioriitinnc
tbf
sanguine, therefore, to hope that tur.al gas, aluminum, electronics
Inpriv of itci n^!
an
increase in our foreign trade an5* oil refining and exploration,
•
gy
P
could be depended upon to
help substantial
expansion
programs Pie are gone.
us
over
post-mobilization read- are n0w taking Place which, if
If war can be avoided, we may
justment. The truth is that the P^ent plans are not changed, well be on the eve of a new age,
near-term prospects for our ex- wl11 continue for another two or the atomic one, where more new
port trade are not promising
to three yearsindustries will come into being,
say the least.
'
Another aspect of construction opening up new markets and tapeign
Vert a minor inevitable readjustment of business into a severe
si0n.
population
anb4ers
estimatina
neverthe-
survey recently
the McGraw-Hill Comcrease
in
debt,
in government pany leads its chief economist,
spending and in plant investment Dr. Dexter Keezer, to express the
reach
e
reasonaW
governmental
has
all
i
are
China
in
^1^0^
The
say, however, that severe depressions such as that of the '30's are
total
m
fact.
should promptly be reduced
as Soon as defense expendilevei
tures
0ff.
By
so
doing,
them
to
that
so
™ £
the
h
become
Francoeur
South
&
La
previously
ment
affiliated
Company,
Salle
Street.
with
with
Inc.,
He
Barclay
39
was
Invest-
Co
a
iarger proportion of the spending
power of our people can be returned
(spec„, t„
p— ch.on.c,
CHICAGO, 111.—Paul H. Dunaki
in-
\x/:i.L
F
rv».
VYltn Uaniei r. IvlC6 V^O»
(Special
to
the
chronicle)
financial
the private sector of
CHICAGO.
111.-William
V.
probably to
be demand may compensate for the Pantos has been added to the staff
lollowed by steel and then alu- decrease
in
demand
resulting of Daniel F. Rice and Company,
minum.
Housing starts will no from decreased
government ex- 141
West
Jackson
Boulevard,
rous
materials,
doubt
decline
during
and
years
crop
the
of
appear
from
next
then,
babies
in
1940
recent
three
when
which
reach
levels
or
four
the
new
began
to
marriage-
able age in the late 1950's, we are
likely
to
see
a
housing boom
which will make that of-the recent past seem s nail by compari-
son*
penditures, A reduction in taxes
is imperative, let me repeat, to
provide
additional
private
demand for goods to replace the reduced
armament
demand.
.g precjseiy
n.vina
fhic
precipitate govern- ,p y
&
ment action is the greatest thing look
for
the companies
fav
tn
fear
in
the
coming
readjust-
more
jobs
now
whiPh
must
to
provide
to
take
care
of
the
New
those
York
and
Three
With Slavton
J1
(SPecml t0 THE ™ncial qhroniclb)
ST.
LOUIS, Mo.
Barnett,
Charles
—
W.
Sanford
Brown
L.
and
Frank O. Emmos have become ass°ciated with Slayton & Cornpany,
expansion
of
is
the greatest importance in this
connection that the excess profits
tax should be abandoned because
of
Unwise and
to
It
members
Midwest Stock Exchanges,
Inc., 408 Olive Street.
Brown
nolds &
was
formerly
Co. in
with
Chicago.
Mr.
Rey-
The Commercial and Financial Chronicle
(1846)
30
specialty funds entailed, and in radio program "Your Money at
are asking that the com¬ Work," sponsored'over WOR by
pany take over full-scale manage¬ Kidder, Peabody & Co.
His sub¬
ment of their investment by plac¬ ject was "The Chemical Industry."
of
With Westheimer & Co.
(Special
to
effect,
Chronicle)
Financial
The
Mutual Funds
CINCINNATI, Ohio—George T.
now al'filiated with West¬
Webb is
Mr. Cooper described the cheming it in one of the three con¬
tinuing general management ical industry's outstanding fea¬
326 Walnut
heimer and Company,
Street, members of the New York
Cincinnati Stock Exchanges.
funds."
By ROBERT R. RICH
tures
and
underwriting group which is
an initial offering today
shares of Diversified
Growth
Stock
Fund, a newly-
making
of
NATIONAL
700,000
created
INCOME SERIES,
series
Diversified
of
Funds, Inc. The shares are priced
at $8 per share for single trans¬
actions of less than $25,000 each;
$7.79
share for single
per
trans¬
actions of $25,000 through $49,999;
$7.68
Approximately $5.43 per share
share
per
for single
trans¬
actions of $50,000 through $99,999;
Prospectus from your dealer or
$7.60 per share for single transac¬
NATIONAL SECURITIES &
tions of $100,000 through $249,999;
and
RESEARCH CORPORATION
Established J 930
$7.49
New York 5, N. Y.
of
Diversified
,
is
designed
whereby
securities
a
means
may
investor
secure
diversified
a
selected
The objective
of the management will
cf
list of
contin¬
and
uously supervised.
vest
more.
Stock Fund
provide
to
an
or
be to in¬
substantially all of the assets
the
fund
in
securities of
com¬
better
than
average prospects
for
The fund
lution
of
MUTUAL
as
charter
on
Diversified
operation
ONE
shares
series,
/CALVIN BULLOCK
each
JNEW YORK
GENTLEMEN: At
me a
no
obligation plca.se send
prospectus on
Canadian I'und.
industry.
In
thp
its
to
a
single
certain
other
added.
were
Diversified Investment Fund and
known
now
time,
the
noration
net
Diversified
as
Fund.
assets
of
than $10,000,000
where
$45,000,000 at Aug. 31, 1952
largely as the result of sale
City
—
of
shares of the general management
series.
Diversified Growth Stock
*
Fund
the
of
third
general
series.
agement
On
Ke
is
Nov.
10,
man¬
1952,
Diversified
stockholders
Funds
approved
Custodian Fund,
Stock
Fund, Corporate Bond Se¬
ries and Government Bonds Series
will be
BOND, PREFERRED AND
COMMON STOCK FUNDS
reclassified
into
shares of
Diversified Investment Fund, and
the
outstanding shares of Pacific
of
50
Congress Street, Boston 9, Mass.
Please send
your
describing
Organization and the shares of your
me
Funds.
ten
industry
prospectuses
D-oj
Diversified
series
will
shares
of
be
Di¬
Diversified
cast
the
in
the
close
1952,
with
offering
of
business
on
•
Kidder,
are:
Peabody
Dean
Witter
&
&
Co.
Co.,
by
by
Fund
Stock
and
Fund.
the plan.
approved
Series
voluntarily and modestly of¬
fered now for general distribution
by
brilliancy in the field of account¬
ing and
his leadership in
the
mutual funds business, sets forth
in
exact
detail the true nature
of
effect
and
butions
by investment companies.
of the funds to be eliminated rati¬
of the plan
terms
ties ranging from
all shares
by
clude
the
22
71%
to 89%
of
outstanding.
Important
about
by majori¬
changes
Monday's
brought
of
the
series, an increase in author¬
capitalization from 10 million
one
shares
million
15
privilege
of
year
tinuing
free
the
among
Growth
three
Fund,
Stock
Fund
tnan
cash,
in
elect
ber
belief
con¬
Com¬
apparently
impending
an
makes
bution
that
values
of
Nov.
28,
on
shares
of
either
vestment
the
respective
1952,
in
full
Diversified
Fund,
In¬
Diversified
or
in the
distri¬
investment
tne
shareholders believe
some
the
of success
ure
In
gain
invest¬
an
is of itself a meas¬
of the company.
effort
an
by
paid
ment company
capital
of
amount
distributions
Diversi¬
the basis of the relative
on
(2)
timely regardless of other factors,
and (3)
Diversified
and
that
capital
make
to
under¬
has set
gain distributions
more
Reclassification of the 22 series
standable, Mr. Prankard
asset
num¬
cash,
investors buy the shares of
companies just before
the record dates for capital gain
forth certain facts about such dis¬
tributions
thoughts
his
and
Diversified
Investment
Bonds
Fund;
Series
into
Diversified Investment Fund;
cific
Coast
Investment
Diversified
Growth
Fund
Pa¬
into
Stock
Fund;
Separate
Industry
Series
Diversified
Growth
Stock
18
Fund.
In
commenting on
holders'
vote,
Hugh
President
of
the
share¬
W.
Long,
Diversified
Funds,
Inc., said, "In approving the plan,
of
the
and
the
specialty
and
in¬
voted not only to
simplification plan for
a
but also
satisfaction
with
expressed
the
expressed
opinions
by dealers and salesmen.
man¬
will
retailer
glad
be
mail
to
glad
contains
of
no
Affiliated
booklet
mention of the names
Abbett's
Lord,
Business
the
that
know
to
American
and
Fund
funds-
two
Shares.
Lord, Abbett & Company ex¬
that copies of the booklet
pects
will
be
enclosed
reports
sponsibilities! that
the
ownership
ness
to
the annual
with
mailed
be
of
110,000
to
Affiliated
"N
utilize
to
Second, THE PLAN:
customers and
.
.
of
course,
booklet
this
in
now
mailings
investors in in¬
company
shares,
to
trust companies, and
all
and
others
in
who
this
might
be
from
investment
The
Parker
extending into lower middle income
200
dealers
_£S
to
and
get
and keep
Contractual
W HOLKSALE
120
Berkeley St., Boston, Mass.
1925*
Barringer
Chairman
and
spectively,
The
new
owned
President
as
the
of
a
good
Plans.
board,
of Delaware
distributing
or
firm of Barringer
& Nelson. "We
believe,"
Barringer
Nelson
Messrs.
their formal
in
said
fication to dealers, "you
with
will
ment
workable
tion
make
distribution
Fund
its
of
the
for
financial industrial
V.
the
same con¬
of
functions
the
of
and
opera¬
and
shares.
Unification under the
manage¬
distribution," they said,
ment and
"is
*
will agree
smooth
a
facility
Delaware
of
trol
and
noti¬
that the present arrange¬
us
widely, practiced
in
in¬
the
dustry, and, we believe, holds in
the long run the best promise for
harmonious operation, consistent
direction, and service to the mem¬
bers of our selling group. As we
reorganize Delaware Fund's dis¬
tribution on these lines, we feel
sure
that you
the shares
,
will continue to find
attractive and suit¬
an
able medium for
clients' in¬
your
vestments."
Messrs.
Barringer
Nelson
and
emphasized that the change in un¬
implies
in
change
no
Fund's
Delaware
management, directors or general
policy.
Security
dealers
who
had a
dealers'
agreement with the
Were notified
former underwriter!
*
that
'
transfer their relationship to the new distributor of
they
may
Delaware Fund without the neces¬
sity of signing a new agreement
"Therefore," Messrs. Bar¬
form.
Nelson in their capa¬
ringer and
city
underwriters told dealers,
as
"unless
receive
advice
contrary,
your
we
the
you
to
for
Delaware
ceived
be
the
to
reference
provisions of
ment
with
present agree¬
dealers'
agreement
you."
The
same
the
to
your
our
as
re¬
November 4,
construed as your
incorporation
by
and
adoption
of
the
will
1952,
after
from
orders
shares
Fundi
and
on
is applicable
process
shares
Fund
for
orders
reinvestment
Delaware
and
with
modifications
minor
to
monthly investment plans of Dela¬
ware
Fund
now
in force.
NEARLY 300 of
the leading sales
representatives
of
Waddell
&
Reed, Inc., principal underwriters
the
JOHN
L.
COOPER,
investment
.
an
$87
annual
United Funds
recently at
million
tona
sales
Beach, Fla.
tures
of
series
of
the
congress
5-minute
investment
in Day-
One of the fea¬
event was a
3-day
and
discussions
sales
policies
American
through
phone.
I'nf* pectus upon request
DISTRIBUTOR
BROADWAY, NEW YORK 5
.
by the investment advisory '
Business Shares
Write
re-
Fund.
firm is
broad market
salesmen
made
was
Nelson and
by W. Linton
D. Moreau
of
specialist for Massachusetts Inves¬
tors Trust, one of the country's
oldest and largest mutual funds,
was
guest speaker on Sunday's
groups.
REctor 2-6705
P
jointly
CHARLES E. BACON
or
Corporation
u FOUNDED
purpose.
announcement
salesmen like F I F
enced. they mean IMMEDIATE INCOME and
be obtained
in¬
subject.
they provide an easy but
systematic method of accumulating shares in amounts from $15
to $20 a month on
up. For the salesman, whether new or experi¬
may
The
For the customer,
how
'
investment group, met
conservatively managed open-end
investment company organized in 1^35, with
strong appeal to
people interested in capital appreciation.
Prospectus
Department.
ganized for that
some
may
prospective
terested
a
you
.
Fund announced the shares of the
Fund
Shares in December.
banks
selling P I F Shares
was
program
THE MANAGEMENT of Delaware
assent
stewardship
of
their
capital.
They are relinquishing in November and to the 33,000
industry selection and timing re¬ shareholders of American Busi¬
Shares and Contractual Plans
show
to
clients, fills a need of general
application on all funds regarding
capital gains distributions' with¬
out bias or favor, dealers will be
shareholders
agement's
booklet, which any
his
series
approve
First, THE FUND: F I F is
us
Fund
whatever
Because this
FINANCIAL INDUSTRIAL FUND
Let
der,
Mutual
derwriter
The fact set forth
as
relate
pri¬
Growth Stock Fund, as follows:
marily of course to
the large
Diversified
Preferred
Stock
number
of open-end
investment
Fund into Diversified Investment
companies whose shares are cur¬
Fund; Corporate Bond Series into
rently being offered to the public
HERE'S HOW YOU CAN PROFIT THROUGH OFFERING
Investment Fund
.
t
,
Fox-Martin, head of Kid¬
Peabody
&
Co.'s
Central '
what the investor should do about
them.
to
A Mutual
the
of
,
Milton
to
vestment
Both
receive
many
for
Dealers—
Contractual Flans.
substantial
a
to
fied Investment Fund.
will be
gain
capital
receive
to
the
and
conversion
series—Diversified
Stock
tunity
in¬ distributions,
meeting
reclassification
ized
to
because
(1)
when
shareholders are giv.en a oppor¬
companies
investment
:
rr
that today
notes
misunderstanding
much
is
Dealers,
State
gain distri¬
capital
Prankard
Mr.
there
Address
City
Moderator
Lord,
distributions in additional shares
shareholders of stock at net asset value rather
series,
their
at
on
cent of the votes
per
reclassification will become effec¬
tive
cast
company
Growth
Ninety-eight
their company
Nov. 28,
company.
Investment
versified Growth Stock Fund. The
Associated
Name
into
"Understanding
on
reclassifying them into shares of of
the nature of capital gain dis¬
two
general management funds,
tributions liPaid
by
investment
dustry
18
cor¬
were
investment
holders
reclassified
Company
booklet
sive
cast
the
representing 88.2% of all
that
the
The Keystone
was
eliminate 22 "spe¬
funds and industry series
Coast Investment Fund and of all
At
vote
simplifying
outstanding
cialty"
and
Preferred
no¬
the proposal to
into
Diversified
of
Votes
shares
shares
of
&
indifference
structure of the
porate
nrovisions for recapitalization un¬
der which all of the outstanding
Ys tone
traditional
landslide
a
Government
1
;
all
stockholder
favor
in
series
to approximately
Co.,
&
Reinholdt
and
funds business
substantial and comprehen¬
a
research,
on
Abbett & Company's $14 million open-end mutual fund
to
corporate affairs were badly
partner, Harry I. Prankard, 2nd. will be underwritten and distrib- "
dented
at
Monday's meeting of
uted
by Delaware Distributors,
This
16-page' booklet, clearly
shareholders of Diversified Funds,
corporation recently or- '
written by a man known for his Inc., a
cor-
the
Kidder
M.
A.
that
emphasis
„
growth, and its scientif-
ically trained management.
forthright-
and
honesty
of the mutual
ness
MacGregor,
&
indeed, of the
:
Capital Gain Distributions" should
of
net
have increased from less
Co.,
Meanwhile,
tions
that
Since
&
Merle-Smith,
mon
comoration created
Common Stock
Address.
1944
general management series—
what is
Nome.
in
com¬
number of
a
devoted
Later,
1^44
1952.
been
Until
issued in
specialized series
Hvo
29,
has
1936.
were
STREET
&
stalwart
Tully & Co.,
Mitchum,
Glover
IT IS INDICATION,
be
be¬
amendment
Sept.
investment
an
since
pany
WALL
directors
which
an
Funds
as
of
Funds,
effective
the
to
FUND
board
Co.,
&
Grimm
fied
created by a reso¬
was
the
Diversified
came
INVESTMENT
of
J.
C.
Bradford & Co.,
Hill Richards & Co., Man-
Gardner.
panies which it believes to possess
long-term growth.
Cali-
Company,
Courts
Inc.,
Dick
First
Inc.,
Mason,
ley, Bennett & Co.,
Foster
& Marshall,
single
for
$250,000
Growth
interest in
an
share
per
transactions
&
Horner
Scott,
lornia
an
•
the
as
its rapid
KIDDER, PEABODY & Co. heads
120 Broadway
Thursday, November 13,1952
...
f if
Lord, Abi?utt & Co.
fund, inc.
New York
J
—
Chicago
—
Atlanta
—
Los An? tie*
on
by
-
Volume 176
Number 5168
.
.
The Commercial and
Financial Chronicle
.
(1847)
33
district
and
divisional
the
man¬
agers.
of common
year
\xrV\in|-|
30 and
in the Fund's
portfolio at the
of fiscal '52.
However, new
money
placed
in
equities
was
were
OPEN-END
NET
ASSETS
REPORTS
of
Affiliated
increased by about 30% to
high
of
$220,479,631
Fund
a
largely
which
new
during
the
invested
promised
in
$12.41
>
securities
first nine months of this year. This
represents
gain
a
of
the
over
funds
ASSETS
of
the
three
the United
Funds, Inc.,
investment group, reached an alltime high
during the., first nine
to
$4.74 for each share outstanding
on that
date, after provision for a
months
12-cent
distribution
Cameron
shareholders. At the end of its
last fiscal year (Oct. 31,
1951) the
company had net assets of $158,-
nounced.
1951.
capital
gain
1951
to
818,398,
share
equivalent
the
on
to
$4.65
shares
Total
cf
and
months have been
Additions:
in
the
past
30
tnree
Arizona
Public
Service
Consolidated Edison Co. of New York; Con¬
Gas; Electric Light & Power Co.
of
Baltimore; First National Stores, Inc.;
share.
Indianapolis Power
Electric
American
Sanitary
Pacific
&
Southern
Radiator
Corp.;
Railroad
Pacific
Chicago,
Co.;
Co.;
P.
30
&
Rock
portfolio
shows
97.10%
invested
stocks
and
2.90%
cash
and
re¬
ceivables. Groups accounting for more than
5%
of
the total are tobacco 6.60% ;
oil
7.42% ;
food 7.10%;
natural gas
banking
9.49%;
22.85%.
and
fund
of
affiliates
three
distributed
ended
Sept.
from
the
in
the
the
in
a
accounts
gain of
during
false
shareholder
assumption
relation
some
of
of the "greatest
finding
the
growth
not
rising
securities
of
markets
for
the
type held
by the Fund, said Harold K. Brad¬
President.
ford,
Reporting
Earl
E.
on
distribution
management
Crabb,
and
with
Chairman
and
threats
combined
to
of
increase
senior
the
attrac¬
securities.
In¬
during early fiscal
1952
its
increased
investments
securities,
mainly
preferred
stocks
offering
tively attractive yields.
However,
common
cal
year
stock
in
rela¬
represented
of the Fund's assets.
about
60.4%
This is about
' value '
of
Tn
wrong
the
a
natural
regulation,
required
little
selling
during
companies
investment
cordingly
as
gas
scarcer.
gas
of
field
in
is
pany
its
on
is
books
give
the
point
sufficient to
In
a
com¬
the
gas
of
of
produc¬
per
share from investment income
22'/2c
gain,
both
Commission and the courts should
get
away
from
the
rate-base
of
of
determining the
natural
November
gas
jurisdiction.
not
with
other
ducers.
Fed¬
the
said
the
the
base of
but
field
be determined
along
fair
the
value
in
on
of
the
gas
competition
from
gas
standard
return
particular pro¬
a
commodity
a
under
He
lines;
be
ducer,
as
other
in
Mr.
Justice
.
own
1952
to
shareholders
record November
18, 1952.
Chester D.
November
10, 1952
135 S. LaSalie
of
Brandeis,
a
man
who
not
Tripp
President
Sreet, Chicago 3, Illinois
to
be
2 FPC
320
US
regulated,
are
we
"If
intelligently
must
fit
.
491.
al
vkf Hope
Natural
Gas
.
should
endeavor
to
gas
.
question
de¬
These quotations from two Jus¬
from
one
Supreme
veteran
Commission,
there is
no
must
pricing
well.
It
matter
a
of
change
to
apply
to
are
which
fair
the
future
could
with the
realities of the industry.
certainly be desirable
standpoint
of
the
Rate
Any
method
of
to
na¬
and
pany
is permitted to earn and
then determines a rate of return
which is thought to be reasonable.
out.
at
But
long
been
of the
what
recognized
factors to
the
is
done
return
used that
rate
be
Commission
to
and
con¬
cost
has
that fair rate
say
of
money
has
and
are
recently
theory in two important
cases.
4 FPC
Northern
vs.
the
In
developing
W.
Va.
262
US
its
553.
opinion No. 230, Docket G-1618Natural
Gas
Co.
Today
more
and
of
of
dividends.
computing
the
money
percentage
the
applied
Furthermore, the Commission
making it difficult, and more
difficult, for regulated companies
is
to
expand
two
the
book
value
of
common
stock which, in the case of
companies, was much less
its
market value.
treatment
decrease
utility
experts
field
these for
here
is
to
expand
the
the
be
and
rates
Our interest
the
effect
is
required by
which are "just
reasonable."
That ought to
"just and reasonable" to the
mean
well
as
chaser;
the
and
should
this
bear
to
as
the
pur¬
Commission
in
mind
when
preparing its formulas of what is
fair
On
return.
have my own
that
The
rate
point,
I
ing
Power
good
not
a
"Fair
Return"?
It
half
service.
necessary.
insure
A
A
continued
higher
lower
rate
rate
is
en¬
dangers the quality of service.
If
transmission
lines, with other
and
distribution
necessary
Federal
Power
can
all
Commission
satisfy the growing
itself
energy
the nation, nor
which far-flung
demanding.
private enterprise which
the
of
gas
are
was
built
warn¬
a
natural-gas industry in the
a
century
and
more
before
It was private
which brought naturalservice to its present state
Federal regulation.
industry
gas
of
excellence, in spite of the hob¬
bles
the
be
and road
blocks
Commission.
It
invented by
will
have
to
private enterprise which min- v
isters to the needs of the markets
of
tomorrow.
only
in
Federal
mits
the
the
But
it
can
do
so
that
measure
the
Commission
per¬
industry to get the
nec¬
Power
essary reserves and
the
necessary
financing.
believe
it
that
in
the
the
public
in¬
natural-gas
in¬
dustry be kept healthy and kept
of return of a utility
should, in the public
be the lowest practical
will
to
destroy
possibility
growth.
But
the
and
industry
cannot
definition.
rate
that
Commission
incentive
Federal
I
base
interest,
rate
Is
ob¬
in the Future
picture of today is
for the future. The
terest
What
diffi¬
financing
necessary
The
fi¬
public-
discussing
what
increasingly
pipe-line facilities.
arriving at the
time.
assess
fix
it
The Gas Industry
for
earn¬
this policy may be on the ex¬
pansion
of
natural-gas
service.
I think it will be adverse.
to
the
supply
in
by
reserves
transmission lines to
markets
will
some
makes
tain
all
of
a
sion
cult for
migbt be made
No doubt
money.
for
discourage
companies,
requirements
criticisms
the formula for
of
exploration
The
money.
policies
and
dis¬
courage
the sale of gas in the
field by non-regulated companies.
On the money side, the Commis¬
both
ings materially.
Other
and
Commission's
than
Obviously, such
would
takes
increase gas de¬
interstate markets-
in
regulated
It
to
reserves
the
service.
gas
things
arrived
was
percentage was
the Commission
by
more
rate increases, or by permit¬
ting only partial increases.
by relating earnings to market
But
demanding
The Federal Power
keeps
natural-gas
prices too low by refusing to per¬
Hav¬
expectations
are
gas.
mit
industry
part.
a
common-stock
Its
value.
sidered in determining a fair rate
of return
is the cost of money.
now
of
One other thing about the Com¬
mission's action should be
pointed
seller
of
which the regulated com¬
has
a
Commission
companies
current earnings can¬
produce the proper answer.
not
base
one
not
trol., Where gas is cheap in com¬
parison
with
competing
fuels,
consumers
had
other than
Return—As men¬
earlier, in fixing rates the
Commission
determines
a
rate
It
the
The Commission
tioned
that
is
But it is an
industry which is
plagued by forces outside its con¬
the
which does not recognize the fact
that market value reflects factors
law
on
effect
ficiently operated.
and
both
cases
are
their
cost
tional interest.
(2)
and
earnings
nancial
policies
the
A rate of return
that
Gas Industry
liveries
cost
mind and bring its
into closer relationship
from
he
expansion of
business.
If the
rate.
gas
merely
its
This would
has
The
pur¬
earnings
of
they
on
of
Commission
if
the
pursues
this policy,
be impossible for existing
companies to take care of normal
based
prefer¬
be
Commission
earn¬
less
even
into
natural-gas
earnings and dividends,
they placed a value on the stock
publicgas at
natural
seems
The
ence.
of
indicate to me that
legal reason why the
Commission
utility
Court, and
member
is
Commission
ing looked at these and other
factors, in addition to past and
to
the
sharply.
money
earn
market growth.
indicators
record
which
matter."4
of
has
and
it will
wrong
•
re¬
our
Co.
the
measuring
stocks
future
only
are
then
tices
decline
rise
his dollars will be al¬
to
puts them
rela¬
current
very
gas
we
.
.
proportions
more
investor
rates
where
more,
lowed
Past and present earn¬
in
velop a more realistic and less
short-sighted view of this entire
3 Penn
et
for
of
the
our
synonymous
industry:
gas
natural-gas rates
.
for
cost
growth
hands
legally bound to
of
the
ing
substantial
pro¬
.
our
"price-
different
of
the
interest
market
a
common-stock money.
Commission
obtained
the
one
effect, the Commission's new
policy tells the investor that, in
related
things
of
volved in the two
of
rate-making policies
pipe-line produced
are
strongly
favored
Federal
regulation of public utilities, said
about
of
the
de¬
is
In
investors of what future
earnings
might
be.
The
companies
in¬
the
and
of natural
reserves
this
29,
method
year,
bond prices
beginning
.
substantial
We
pro¬
As he said:
"The empha¬
sis would shift from the
producer
to the product
,"2
sharefrom realized
payable
their
the
.
per
a
the trans¬
Hope Natural Gas Co.
case
in 1944, Mr. Justice Jackson
argued that the Federal
Power
the rate
and
cover
the
economic
Television-Elec¬
.
.
near-
hundreds
consumers
from
com¬
its gas
at
In effect, such
required to
to
away
miles
regulated
a
required to carry
value.
pany
been
cases, where the
value
is
actually
increasing, that
zero
has
some
market
for
search
practical matter of
a
present
should
Fund, Inc. have declared
As
...
garding
conclusion
value should
approximate distributions of 1 2c
He continued: ".
The
reached
destroying
to
growing plenty instead of real¬
izing the fact of growing scarcity.
absurd
and
effect
duce gas.
consumers
eral
of
cost
ings
to
respect
the
have
gas
encouraged to find, develop, at¬
tach, and retain in public service
By such low prices,
suffer an illusion
In
deter¬
arithmetical
several
are
this
dividends.
of
progressively
becomes scarcer
pro¬
period
a
the
dollars
of
Furthermore,
a
watched
company
Commission
Common
policies
in
remedy lies largely in
moves
downward
value
tronics
for
1946
chased
real advantage to the
consuming
public
pipe lines should be
amortized
natural-gas
dollar
the
of
com¬
by relating earnings to
Today, we have a natural-gas
market
price, it assumed that
industry which rests on a broad
market price is a direct
result foundation of
adequate reserves,
of reported
earnings. This is not which is
soundly financed and ef¬
true.
ac¬
is
an
companies and
earnings.
Power
incentive
are
The price of gas
percent
costs.
the
that
than
allowed,
referred to what
investors' appraisal
seven
Lee
Federal
rate-making
discouraging
carry
such
gas
on
"cost." As the gas
the book \ value of
portionally.
the
one-half
unrealities
the
years
the
of
values.
are
tionship
between
the
market
value of the common stocks
of the
companies
Nelson
Commission
pipe-line
they
at
produced,
method
16th Consecutive Dividend
the
Under Federal
these
to
their books
which
gas
of
ditional
reserves,
substantial portion
portation costs.
Directors
with
value
average
8.45%.
amounts
flotation
The
mined
in
books."3
our
the
a
for
seven
stocks.
lution when he said that the tra¬
own
with
bonds.
Smith,
people
is
industry to
of
allowed
six
watched
earnings" ratio which the Com¬
mission now uses. An
average of
earnings from 1946 to 1951 is an
gas reserves and un¬
Commission, objected recently to
doubtedly investors placed value
the
Commission's
policy of in¬ on
these reserves.
Investors un¬
cluding natural-gas reserves in
looked at the recent
the rate base, and offered a so¬ doubtedly
is
tion, but is permitted to charge
widely diversified group of com¬
mon
stocks, preferred stocks and
the
it
cases,
called
of
fields.
Commissioner
It
rate
Mutual, the
largest
balanced
fund,
holdings
consisting
of
a
The
it
states.
number of different
a
other,
has
Incidentally,
the
of
on
one
support of the amounts
the Commission
out¬
offering the
resource
In
as
a
result the
will not be able to
get
more, than
investor
money.
both
allowance
legal principles to the economy of
the industry, and not try to fit
is
world's
was
20
For
allowed
exclusive
an
"cost"
itself.
gas
their
produce
of
is
there
"normal" for Investors
There
natural
resource
interstate pipe-line "com¬
own
reserves
Crabb explained,
holdings at the fis¬
the
ana
transport and sell.
higher
vestors Mutual
fixed-income
original
operating in
theory.
and
and
taxes effective during most of the
fiscal year were two factors which
tiveness
gas
that
Some
the
progress,
President of I. D. S., pointed out
that slight abatement of continued
inflationary
of
the securities of 55 selected Cana¬
the
on
the
necessary
to tell
oil
business wnat
the
accounts,
reinvestment of dividends by
of the Fund's present snare-
that
between
produced
panies
investment
the
was
side.
Commission
its
itself.J For it proceeds
and
many
qualified for sale in
approach
this condition
facilities cannot be
service.
proper
the
common-stock
the
gas
and
shares
with
regulated
and,
consumers
modity
trouble
investing
these
Unless
new
financed;
are
the
the
them.
own
prevails,
im¬
for
In
unless
•
cline.
real
common-stock
with
shareholders increased
report.
tial
63%
of
very
8%%
Expanding Economy
but also by a continued
relatively
low level of redemptions, substan¬
holders
number
a
the
the
earn
enough to make
securities
sufficiently at¬
tractive for buyers to
want
to
of
case,
$107,238.23.
were
the
dian
standpoint of valuing natural
in
crease
the
In
assets
way
serve
to
their
higher
are
built
companies
as
was
be
be had from
public
these
the companies
Commission's
even
proximately 82% of its funds
Natural Gas in
the
company's history" was
not only by a record in¬
marked
net
to
stock
rates
this
the
Since
Fund's
told
months.
year
date
preferred
proportion
to
are
cannot
maturities.
But
management of Natural Resources
of Canada Fund has invested
ap¬
Sept.
on
latter
Since
share.
Total
annual
investor
12
A
30,
were
108,000 to 135,000,
27,000
is
the
the
company's
number of
and
Accumulative Fund had
$11,600,876
serial
standing totaled 398,228. The fund
outstanding
a
on
The number of shareholders in¬
creased to 1,517 on
September 30
Sept.
and
the
Fund
ties,
public, the money to pay for them
actual
portant fact in one case because
the
company
has a
substantial
portion of its debt in the form of
report
year
rates
paying and
Valenta
the
fiscal
same
interest
than the
Fund had only been
operation since June 4.
the
first
$13,826,066
current
and
Services, Inc., rose from $302,597,921 to $398,529,794, an increase
of
$95,931,863 during the fiscal
year
of
that
full
on
weight
gave
the
the
capitalization.
The
Com¬
mission disregarded the fact that
the
actual
On
a
Mr.
It
paid
debt, and preferred
of
year
rate
and
total
Continued from page 11
mutual
Investors Diversified
shareholders
$12.32
fiscal
money, the Com¬
the actual- interest
debt
on
in
There
largest
managed by
the
Science Fund had
assets
total assets of
TOTAL NET assets of Investors
Mutual,
in
the
outstanding
was
During
United
8.13%;
light
and
electric
Sept.
of 1952
the net increase in the number of
shares was 464,606.
in
out
the
though
had
2,343,607 shares was $5.90
During the nine months
Southern
common
power
shares
net asset value of the
Lorillard
and
Fund
$60,926;651, and
first
announced.
pointed
year
585,469.
Railway Co.
The
of
United
Eliminations:
Co.;
Light Co.; New Eng¬
and United States
Co.
Standard
Island
&
System;
dent
nine
months of 1952 the net increase in
the number of shares was
solidated
land
Income
4,945,608
Co.,
Fund's
covered
assets
stock.
Shares,
RESOURCES
of
took
paid
costs
Sept. 30, Frank L. Valenta, Presi¬
$86,353,593,
a
Fund
cost
dividend
Fund, reports net assets
$1,211,303.80 at the close of
the
with $68,113,731
cost
Canada
of
an¬
the-4hree trusts
were
net asset value of the
follows:
as
of
30
nine
expected to be publicly
at $5 a share.
NATURAL
earlier.
eliminations from hold¬
stocks
common
Gypsum
assets
Sept.
United
Additions to
Reed, President,
the
are
offered
rc.
compared
out¬
standing.
ings
K.
Continental
which
1952, surpassing the
by more than 25%,
record
on
per
then
of
During
overall
mission
covering 2 million shares of
United
in
$169,605,753 held on Dec.
On Sept. 30, 1952 the
Company's assets were equivalent
31,
the
was
on
shares
months of 1952 the net increase in
shares was 320,939.
SEC
TOTAL
$50,873,878
936,595
share.-
a
United Funds, Inc. has filed a
registration statement with the
comparatively
stable income.
the net asset value
outstanding
start
31
facili¬
growing.
for
its
processes
by
slow
heartily
influence
But it may have to fight
against
regulatory
that would destroy it
life
and
urge
in
stealthy
you
any
to
way
erosion.
use
that
t
I
your
can
be helpful to this industry which
is
so
being.
vital
to
our
national
well
,
32
The Commercial and Financial Chronicle
(1848)
The current
trade.
Canadian Securities
3
By WILLIAM J. McKAY
The Bank of Nova
Scotia, in its
"Monthly Review," gives
a
thoroughgoing analysis of the
factors in the present strength of
the Canadian dollar. Pointing out
current
that
the
ranks
Canadian
with
the
dollar
Swiss
the U. S. dollar
as
dollar
is
the
Bank
dollar is
the
states,
States.
deficit in her
parily
"After
all,"
Canadian
"the
a
rise in the
months
two
in
year,
the accounts suggest
something approaching a balance
This
improvement of around $500
one year to the next.
—an
Canada has not
been dependent on a large inflow
of capital to balance her interna¬
this
Thus,
"The
transactions
With her current
approximately
truth
generally
bal¬
been
an
exchange at the begin¬
October, 1950.
Even in
of
running
has been
with
deficit
current international
United
the
of
1951
formly
has
been
almost
uni¬
of
the present
on
the Canadian
Bank finds that there
po¬
are
be
num¬
a
the
tributed to its strength in interna¬
tional exchange.
The substantial
the
of
which
by
process
current transactions
Canada's
inflow of capital into Canada pro¬
vides the main explanation, it is
being ap¬
proximately balanced this year is
the traditional triangular method
of settlement. As long ago as 1947,
pointed
$204,303,000,000
at
tion
1950
to
date,
Canada has been importing capital
on
sents
increase
an
000 for the
of
net
capital
inflow
billion, and
in
tendency toward
In 1950, the
was
1951
it
was
of
The
inflow
is
in
marked
con¬
trast with
the earlier postwar pe¬
when
Canada was an
ex¬
riod
porter
of capital
ceeding
$600
in
amounts
million
in
the years 1946 and 1947.
ex¬
each
concerned,
of
Nor is it
This shift
a
capital-exporting to a cap¬
ital-importing position has clearly
in
the
in
a
large
very
demand
for
the
reduction
the
of
for the
period
The
flects
increase
had
Canadian
ever,
not
"Review" points
that
capital
the
basic
trade.
of
months
of $1,570,000,000.
number
total
of
simply
Canada
products to
re¬
has
sell which
for the
14,711.
RESOURCES
to
year,
Branches
JUNE
(000
U.S.
&
sight
Govt,
Other
wood
products.
$
Loans
and
38,880,559
71,211,929
16,988,888
69,213.970
15,206,202
70,979,549
64,897,034
2,819,170
2,719,839
__204,303,591
190,917,604
resources
discounts
Total
resources
Capital
3,970,087
Undiv.
profits &
7,321,478
4,021,574
res.
3,772,524
7,857,181
Surplus
3,893,534
AT
NEW YORK.
Highs and Lows ofdaily dosing rates
U.S.Cents
Total
accts..
15,848,842
14,987,536
186,618,160
cap.
174,092,671
1,836,589
Deposits
Other
1,837,397
liabilities
16,1939
-
liabilities __204,303,591
190,917,604
Seer 2D, /9as -5err
StPT
29,f9S0-90.9
»
„
Guardian Chemical
Guardian
ware
was
June
on
of
purpose
organized in Dela¬
26,
1952
the
for
manufacturing
and
group of closely related
a
chemical
products
bear
the
which
collec¬
of
"Clor-
name
pactin."
five major grades of
are
is
producing.
They are all white powders, and
are, in their various forms, power¬
ful
now
disinfectants,
fungicides, de¬
strong
bleaches
and
odorizers,
m
94
more
effective
banking
94
V
94
establish
to
That
dollars.
of
crease
than
more
supervision of
States."
United
was in spite of the fact that
Comptroller of the Currency
already had and still has pri¬
mary responsibility for the super¬
is
in¬
an
since
4C0%
1940, far outstripping the increase
for the nation
as
whole. Accord¬
a
ing to the Department of Agricul¬
ture, the average income of Neb¬
farmers is almost twice the
raska
of other American farm¬
average
This shows how much enter¬
ers.
prise
work of Nebras¬
accomplish,
with
an
hard
and
kans
can
assist from
I'm
sure
tinued
weather.
the
bank
can
we
con¬
on
hard work
enterprise and
by the people of our state. I wish
the
could
same
weather.
said
be
It troubled
report
nation's
the
counle
a
a
of
of Nebraska,
in the
areas
and
bread
for
to read
me
meat
basket,
feeling the effects of drought
were being placed on
were
—that cattle
winter feed earlier than usual, and
that rain
needed rather badly
was
for the fall planting of wheat and
grass crops
the
supervisory
similar
authorities
role
for
occupy
a
state-chartered
The Federal Reserve System, as
I
said
exercise
can
great
of
over some causes
eco¬
nomic
fluctuations,
but
to
my
knowledge no one has yet found
really
a
banks.
before,
influence
Congress connect su¬
pervision with authority to regu¬
effective
of
way
con¬
late. money
and credit?
Realistic Credit View
Not with
Common
realistically
the
examining
the
as
process
tool
a
to
policies.
System
through
should be
out
carry
The
moderating
Re¬
and does make
can
great contribution
very
eco¬
Federal
business
toward
fluctuations
bank
not
of
supervision.
Governors
its
replies
mittee's
the
The Board
this
made
to
clear
Patman
Questionnaire
in
Com¬
early
this
year.
The
real
for connecting
reason
and credit
lized
that Congress rea¬
was
that
effective
an
reserve
banking system had to be predi¬
cated
upon
sound
a
commercial
vagaries of
have
on
the
weather, the
the
accompanied
mechanization
—when
increased
of Nebraska
tries
one
for
need
the
farms
visualize
to
a
meeting unusual .credit
demands
when
and
considers
one
the problem of
constructive bank¬
ing in all kinds of economic cir¬
cumstances.
We in the Federal Reserve rec¬
ognize that, in certain events, the
Reserve System would have to do
far
in
meeting
its
of
than it has
more
fore
member
the
done be¬
ever
the
credit
banks
needs
and
thus
of
transmission
our
economic machine properlv oiled.;
Fortunately, the System today is
a better position than ever
be-,
in
fore to lend its assistance to
ber banks in times of need.
mem-j
But in
return—we believe member banks
the right to that assist¬
Federal
Reserve
must
earn
ance
banking system..
We
looking
possibilities—
the
at
increased out-of-pocket costs that
keeping
the task of bank supervision with
the authority to regulate money
dictates
sense
idea that supervision
by the exercise of prudence
and the adherence to sound bank¬
ing
principles
iri
times
like
the
does
not
present.
The
j
Federal
Reserve
either
(par $100).
oping strong banks in times like
these, banks which are responsive
to changing conditions as weii as
common
to
The
stock
Financial
has
been
(par
10
to the needs of their
Chronicle)
added
to
the
Cohle &
Building,
Co., Union
members of the
changes.
those
same
Saunders, Stiver
The
Financial
Chronicle)
Benedict and John B. Hannah
th« Bank of
Nova Scotia
now
JULY
1952
OCT.
with
are
Today, things
Nebraska.
pretty good in
People
are
making
are
There have been
a
long time.
supervisors.
But
when
Congress
imposed
the
Board
of
ernors
on
the
in
more
the
Gov-'
making bank
effective,
it
Board
For example, It
powers.
ered
of
task
certain
empow¬
the Board under certain cir¬
cumstances to remove officers and
directors of member banks, to bar
banks here have taken very few
losses during recent years. But let
me ask: Will these conditions ob¬
credit facilities of the Federal Re¬
tain
from
always?
How
been since the last
Building, members of the Midwest
you
had
bad years?
Tower
bank
to
member
In fact,
Saunders,
Terminal
no
state
or
banks. As I mentioned before, that
position is held by the Comptroller
of the Currency and the state bank;
supervision
Stock Exchange.
Co.,
mighty
national
vested
in Nebraska?
&
a
supervision with respect
stability.
year
Stiver
90
connected
communities,
banks will be
bank
bulwark against the forces of in¬
money.
Two With
(Speciai
&Z.
1951
ago,
in
sound
management, and
sound
operating policies. If we can for¬
tify the banking system by devel¬
of
1,122,900
CLEVELAND, Ohio—Charles J.
92
JULY
years
This
failures for
APR.
the
in
billion
a
along with adjacent
Act
Reserve
was
marketings
farm
stand in the front-line trenches o£i
outstanding
Cincinnati and Midwest Stock Ex¬
A
"a
preamble
from
Nebraska have averaged more than
weeks ago that parts
Supervision
Federal
of the three objectives set out
its
the last five years cash re¬
For
ceipts
dividual banks, with sound assets,
have
staff of H. B.
Trust
19SO
the
agricultural conditions than is the
newspaper
Following completion of the supervision is to aid in the main¬
tenance of a system of strong in¬
stock
offering,
the
corporation
stock
Market Rates
oct.
a
subject of
Board believe the purpose of bank
CINCINNATI, Ohio—Robert M.
jul*
the
&
Swisher
Official Rote
to
and
maintaining high levels of
Co., of New York employment and production, but
it does so as a reserve banking
City, is offering publicly an issue
of
299,900 shares
of
Guardian institution, working through open
Chemical Corp. common stock "as market operations, discount poli¬
a speculation" at $1
cies, and reserve requirements—
per share.
Batkin
30,1950-dtscontinued
94
two
or
adopted nearly 40
serve
Common Shs. Offered
(Special
9®
the
supervision.
used
102
RVr
>00
9*
bank
nomic
cents) and 125 shares of preferred
Y
JulyS.1946- 909US.ccnts
»
join
more
prosperous
country at large.
the
shares
Official Rates
6/1946-Scrr i&.1949-IOCO
to
econ¬
much
H. B. Cohle Adds
104
StPT
banks
is
Nebraska
of
omy
trolling the weather.
will
July
by the Sys¬
income
individual
the
that
one-
Why did
detergents.
DOLLAR.
in¬
vision of national banks and state
LIABILITIES:
corporation
Weekly
minute
one
the Clorpactin products which the
THE. CANADIAN
nonmember
in
1952 than in
The "Review" observes that it
stronger iff"
Indeed, the net would be a mistake to count too
capital inflow is likely to be small much on the continuance of a
this year, whereas there was a
trading position strong enough to
substantial net inward movement
go on producing large convertible
in
1951.
The fact that the ex¬
surpluses in C a n a d a's overseas
economic
assembled
Bank
1951
$
Other
There
1951.
the
gild the lily by adding
appraisal, but I will say
own
was
exch. 42,304,055
securities
securities
tively
certain
Re¬
not
When
omitted)
RESOURCES:
Cash
selling
metals
do
the
to¬
30
1952
the non-dollar
explain the fact that the Ca¬
„
my
LIABILITIES
AND
AT
urgently needed and not
available in adequate quantities i«
world—wheat, base
(including aluminum) and
and
System, I would like to devote
showed
banks
nadian dollar has been
U.S.Cents
I shall
taled 5,713, an increase of 312.
.
It
that
fact
were
out, how¬
movements
reveals.
indication of any real
Board
research
tem—as "the best in the business."
$13,386,000,-
last six
increase of 33
an
is
analysis
the
an
multilateral
dollar, the Bank maintains.
The
Canada
tendency toward the restoration of
from
resulted
that
fact
again
running large surpluses with Brit¬
ain and Europe is clearly not an
indication of any improvement in
the dollar position of the countries
$500 million.
This
formation
a
over
competent
the
of
of Nebraskans and that the
in
Banks—which sift, compile,
12-month
are
in all the main geographic sectors
Canada's trade.
$1
over
heard
you
„
a marked
closer balance
a
in
period end¬ that the Federal Reserve
places
ing on that date, but is down $1,- the same
emphasis on the integrity
100.000,000 from the total shown of its economic
data, as it does on
on Dec. 31, 1951.
its other operations.
Deposits aggregating $186,618,Now, lest anyone be misled into
000,000 showed an increase of
believing that — despite my pro¬
$12,525,000,000 for the year, but a testations—I am bent on
enticing
indeed, followed by
was,
the
give
we
describe
evaluate
and
McNally Bank¬
This figure repre¬
Directory.
ers
Total
substantial scale for the first
a
time in twenty years.
have
I
of
serve
the Rand
of
this method seemed untenable and
From
out.
staffs
June 30, 1952, according to the
much
1951.
con¬
banks
other
larger in 1952 than in
It is strange to reflect that
great confidence
have full confidence, too,
can
return.
recently published final 1952 edi¬
hand, says the
"Review," Canada's trading sur¬
plus with overseas countries will
dollar, the
ber of influences which have
the
On
strong."
Commenting
sition
reappeared in 1951. This
it seems likely to be as large
as the $950 million deficit of 1951,
and perhaps a little larger.
And since the autumn
it
the
States
year,
transactions,
moderately,
remaining well above the previous
of
stood
country
on
sign
no
have
about
agriculture, remembering
farming provides more than
directly dependent on
I
outsiders
Resources
minute
a
fourth
you
Two Hundred Billion
a
sur¬
which
the rate declined only
fixed level.
impossible, and I want
in the information
of
reduction in the large current
any
heavy deficit in her
a
equally big trading
There
rope.
the first half of 1951 when Canada
was
almost
plus with overseas countries,
mainly Britain and Western Eu¬
ket rate of
ning
of
deficit with the United States and
mar¬
a
though
balance
regional
picture of Canadian trade is less
reassuring. The main fact is that
Canada is running a large current
exchange rate
abandoned in favor of
was
that
fact
trading
calls
Canada has improved, the
and surprisingly strong
since the fixed
ever
has
Scotia
Nova
the
to
overall
the
is," the Bank adds,
dollar
of
Bank
attention
past sixteen
14% in the past
Canadian
thought
System
think
us
appreciation for the
cooperation of those who help by
informing us about their opera¬
Bank Resources Exceed
year,
tional accounts.
The
years."
"the
economic
Let
con¬
to express our
million from
Canadian
the
of
and
be
our
the information you furnish us and
above
economy
10%
to
would
of
million.
dollar in relation to the U. S. dol¬
of
though still rea¬
sonably good, have weakened this
year—pulp, lumber, lead and zinc
are all cases in point.
parts
of the world of over $500
experience, there is no special anced, and direct investment in
why parity with the U. S. Canada and Canadian borrowing
dollar should be regarded as the
in
the United States continuing
'right' rate for the Canadian dollar. on a substantial scale, the Ca¬
What is really significant is not
nadian dollar has necessarily been
the 4% premium over the parity
strong.
lar
tribution
number of Canadian
a
products,
some
unsettled
Apart from habit and past
but the
country,
tions.
reason
rate
The Federal Reserve
the rest
separate
from that of the United
economy
a
basic
16
page
Nature and Functions oi
shipments have been unusually
large recently. It should also be
observed
that
prices
in
world
markets for
from
current transactions with
separate currency and
a
Canadian
view," Canada ran
Continued
of the few
an
with the U. S. dollar.
according to the "Re¬
Last year,
and
world, the Bank assets there is
nothing
abnormal
because
the
Canadian
trading position this year
compared with last.
as
now
franc
one
strong currencies in
change rate has been consistently
much higher must be attributed to
the marked improvement in the
current
export figures
probably present a more favor¬
able picture than that which is
developing, since they still reflect
some orders placed before the im¬
port cuts put into effect by over¬
seas
countries
and
since
grain
Thursday, November 13,1952
...
two
cr
long
has
really bad
it
crop
How long since
rnc-c
successive
member
serve,
banks from
and
to
oust
access
state
to
tho
banks;
membership. Therefore, it is
the duty of the System to insist
on
sound
necessary,
member
to
use
banks
all its
and,
if
powers
to
achieve that end.
This is not
a
"club in the closet'
Volume 176
Number 5168
.
.
The Commercial and Financial Chronicle
.
(1849)
approach to bank supervision.
It
yourselves
is
of
government
merely
statement
a
of
one
the
principles of Federal Reserve
policy that bankers are entitled to
know.
should also know the
You
therefore.
reason
'.
be
can
the
possible
no
that member¬
end
public
people of
something
are
is
to
be
it
that
now
country
on
by
levers
men
of
in
its
servant
of
true
of
some
tic
what
support
once
possible
extent
protect soundlysoundly-capitalized
managed,
ing effects of failures of
poor ones.
Third, if a bank cannotf operate
soundly in times like these, it has
business
in
and
of
stress
jeopardize
its
the
which member banks
Continued
dependent
strength of
us
from
expecting from the Federal Re¬
serve
System.
The integrity of
the System is more important than
the continued membership of any
bank.
Widespread membership is
certaihly desirable, but it is more
important to have the System
of good banks than
composed
totaled
to
2,200,000
realize that the
concept
of
not
put
be
there
is
bank
supervision
into
practice
profound
the
banks
Real
progress
direction
mutual under¬
the
supervisors.
has been made in
and
the
over
past
few
years.
Supervisory authorities
aware
that
pends to
power
mated
at
further
examining forces.
this
in mind,
the three
authorities
have
estab¬
lished
in
Washington an InterAgency Bank Examination School.
first experimental
session
and
has
we
other.
will
just
been
completed
ready to
are
five-week
launch
an¬
Like the first one, this class
be
picked
assistant
newer
three agencies
from among
examiners of
the
the
in every section of
the country. The faculty is drawn
from the top men of each agency.
000
set up a model $4,000,-
we
bank—complete in
sential
detail—to
every
used
be
es¬
as
After
about how to perform
his work, but also understand the
why's
wherefore's
and
bank
records
of
how
and
basic
to
cars,
It is
my hope that next year we
establish a graduate school for
can
who
men
have
prenticeship
iners
and
as
missioned
assistant
to
ready
are
their
served
be
com¬
exam¬
iners.
This
school, which in
opinion
my
has great potentialities, could
have been launched without
wholehearted
of
the
Federal
of the finest
operation
have
Deposit In¬
Corporation.
surance
one
agencies
in
seen
beginning,
a
question
work,
credit.
has
about
or
was
From the
never
who
been
should
do
who would get the
Everyone
the result
I
quarter-century
my
there
co¬
that
pitched in,
and
outstanding
an
ex¬
as
Loadings Rise
freight for the week ended Nov. 1, 1952,
according to the Assaociation of American
with
only
one
aim—to
year ago.
•
It aggregated 110,452 cars compared
with 116,860 cars (revised)
week, and 85,706 cars in the like week a year ago,
according to "Ward's Automotive Reports."
in the previous
I
am
very
glad
to
be
able
bring this example to
your
tion,
to
and
urge
you
to
atten¬
interest
the
wheat
in
and
a
output for the past week was made up of 110,452 cars
built in the United States, a new high mark,
against 116,860 cars and 29,794 trucks the previous week and 85,706
cars and 23,991 trucks in the
comparable period a year ago.
30,052 trucks
Canadian plants turned out 6,745 cars and 2,515 trucks against
6,028 cars and 2,455 trucks in the prior week and 4,866 cars and
2,799 trucks in the like week of 1951.
Business Failures Show
Commerical
in
the
&
week
ended
Bradstreet,
even
and
Inc.
with
from
6
year
ago
136
This
reported.
a
Slight Increase
industrial ^failures
Nov.
when
increased
in
slightly to 143
the
preceding week, Dun
up-turn brought casualties
150
occurred and
above the
1950's comparable week.
Mortality remained far below the
level, however; failures were down 47% from the 269
pre-war
in the similar week of 1939.
Casualties involving liabilities of $5,000 or more accounted for
the week's
of
this
steady
increase, rising to 121 from 114, and exceeding the 116
last year.
Failures with liabilities under $5,000 were
22, but below the 1951 total of 34.
size
at
Retail and commerical service casualties
week.
Mild
declines
prevailed
in
were
heavier during
other
industry and trade
groups.
Fewer businesses failed than last year in manufacturing
and trade, while construction and service
mortality rose a little
from
the
1951
year
other
States.
five
There
were
moderate
declines
from
1951
in
the
regions, with the Pacific States reporting the largest
drop.
Wholesale Food Price Index
The
wholesale
food
$6.31
price index, compiled by Dun &
April 22, and the high was $6.70, touched on Aug. 26
and Sept. 2.
The current figure at $6.30, compared wtih $6.33 a
week previous, and with $6.64 on the
corresponding date a year
and
ago,
_
preferring to draw against stocks
Cocoa futures displayed a firmer tone as
in
Warehouse
stocks
of
Commodity Price Index Gains in Latest Week
After Earlier Set-Back
After dropping to 284.96
on Oct. 30, the lowest since Aug. 25,
284.51, the daily wholesale commodity price
index, compiled by Dun &
Bradstreet, Inc., turned upward to show
a slight advance for the week.
The index closed at 286.15 on Nov.
disappointing
cocoa
showed
manufacturer de¬
further
a
decrease
to
ago.
for
the
slow with prices
was
Live
season.
dropping to
lows
new
hog
values declined for the fifth
straight
week, reflecting further weakness in wholesale
dressed pork mar¬
kets. Supplies of
hogs at Chicago were the largest for
any week
since March.
Prices for steers and lambs were
also easier.
After sagging to new low levels for
the season at
mid-week,
spot cotton prices turned upward to
close with slight net gains for
the week.
,
i
...
Early easiness was attributed to slow demand
for cotton tex¬
tiles, continued lag in export
trade, and fears of an
increase in the
next official
forecast.
crop
Strength in late dealings reflected trade
buying and
covering following recent declines, and a further
increase in
short
cotton
loan entries. The
parity price for cotton was reported at 34.35
cents
in
mid-October, against 34.47 cents a month
earlier, and 33.98 a
year ago.
Loan entries during the week ended
Oct. 24 amounted
to
23,700 bales, bringing the total for the
58,300 bales.
Trade Volume Advance Slowed
season
through that
date
Shoppers' Attention
as
Is Diverted to National
Elections
Retail trade which had been
rising steadily in recent weeks
slowed slightly in the period ended
on
Wednesday of last week as
the nation-wide elections
diverted the attention of
in
retail
during the last
as
stores than
the
during the similar
more
week
chalk
up
money was spent
year earlier.
a
favorable gains
more
large city department stores.
dollar volume of retail trade in
the week
mated by Dun &
the
to
levels than did
year-ago
The total
months
seven
Suburban stores continued
over
shoppers.
many
However,
Bradstreet, Inc., to be from
corresponding level of
a
1
to 5%
was
esti¬
higher than
year
ago.
Regional estimates varied
levels by the
following percentages: New
+1 to +5; East —1 to +3;
South, South¬
west, Pacific Coast +2 to +6 and Northwest 0 to
+4.
Apparel stores sold less apparel than in the
from
the
similar
1951
England and Midwest
but
moderately
more
temperatures in
wear.
many
preceding week
than in the similar 1951 week. Rather
mild
sections discouraged the interest in winter
However, there continued to be
shoes and children's clothing.
wear,
a
strong demand for sports¬
Housewives trimmed their food
budgets somewhat last week
but continued to spend
slightly more than in the corresponding
1951 week. In diminished demand were
lamb, beef and hams, while
the buying of pork,
poultry and link meats gained. Halloween
celebrations spurred the
purchasing of candy and baked goods.
Retailers of household goods
reported consumer demand as
unchanged from the prior week but well above a
year ago.
Par¬
ticularly popular
were washers, decorating
materials, giftware and
phonograph equipment. More television sets were sold than at
this time last year; the most
spectacular rises in demand
Coast States.
were
in
Texas and the Pacific
markets
in
in
ever,
buyers
little
was
the
variation
period
commodity
saw
ended
lessening
a
in
on
markets
of
of
most
the
Wednesday
prices
nation's
of
eased
last
wholesale
week.
downward
inflationary forces in
the
How¬
as
many
Republican
victory.
As
orders
like
in
recent
months, the total dollar volume of wholesale
modestly higher than the level of a .year earlier^ Un¬
was
the
situation several months ago, merchants were
less re¬
luctant to order beyond their immediate needs since
it was widely
understood that previous
hesitancy, particularly in the soft goods
lines, had resulted in delivery snags. Retailers continued to add
to reach
a
new
record.
the
Federal
Reserve
selling
season
which
was
expected
„
Department store sales
on
Board's
country-wide basis,
a
index
as
taken from
for
the week ended Nov.
1,
1952, declined 5% below the level of the preceding week.. In the
previous week an increase of 7% (revised) was recorded from that
of
the
similar
week
1952, sales reflected
Nov.
1,
1952,
of
an
trade
mild weather
particular.
under those
1951.
on
in
For
store
York
estimates
of the
sales
For
weeks
ended
the period
registered
a
Nov.
Jan.
drop
lt
1 to
of
1%
of the preceding year.
New
the important
Trade
the four
increase of 4%.
department
below the like period
Retail
The index represents the sum total of the
price per pound of
31 foods in general use and its chief function
is to show the general
trend of food prices at the wholesale level.
covering and limited offerings.
was prompted
by heavy
primary markets and
raw sugar market was less
active the past
week; prices drifted
downward and closed about 25
points below the high of two weeks
ago.
1950 when it stood at
second
tic
Brad-
on
Wholesale
the
were
years ago.
to their stocks for the Christmas
Registers New Low for Year
street, Inc., continued to work lower last week. At $6.30 as of
Nov. 4, the index represented a new low for the
year and the low¬
est level since shortly after the start of the Korean
war, or since
July 11, 1950 when it stood at $6.28. The previous low for this year
was
1
bushels, as compared
1,205,000,000 bushels on the
53,021 bags, from 58,522 a week
ago, and 150,703 at this time last
year.
The spot coffee market remained
easy with futures down
sharply on recurring reports of Brazilian devaluation.
The domes- !
The East North Central States remained
Four
regions reported more failures than last year:
the New England, Middle Atlantic, East North
Central, and South
Atlantic
Oct.
on
1,342,000,000
closed, aided by short
There
Geographically, all of the week's upturn was concentrated in
Pacific States, where failures rose to 43 from 33, and in the
South Atlantic States where
they climbed to 12 from 4. Small
decreases occurred in most areas, including the Middle Atlantic
unchanged.
positions
Weakness in the early part of the week
arrivals
level.
and New England States.
all
totaled
time ago.
some
week
Total
and
*'
improve the public service.
of
record
1,128,000,000
bought
to
Output Drops 5% From 16-Month
ample of government at its best,
working
of
flour prices turned
slightly lower following recent
advances.
Demand was routine and
buying interest was small
with most bakers and
large users
High in Previous Week
It represent
examples of
among
of government service.
the
the
Delano,
and
Chairman
Harl
and
Director
Earl
Maple
Cook
not
cooperation of the
of
the
Curerncy,
Comptroller
Preston
pre¬
the
full-fledged
as
distributed by the electric light
0.1% below the corresponding week in 1950.
or
ap¬
exam¬
Stocks
largest
mand.
101.1%
Passenger car production in the United States last week
dropped 5% from its 16-month high level attained in the previous
week.
The industry however, still made 29% more cars than a
check
*
or
revenue
cars,
United States Auto
the
them.
106.5%,
smaller the
The week's total represented an increase of 24,395 cars or 2.9%
above the corresponding week a year ago, but a decrease of
1,137
135 in
bank should not only
a
more
at
was
Railroads, representing an increase of 101,271 cars, or 13.3% above
the preceding week, due mainly to increased coal
loadings.
finishing the schools' in¬
"inside" of
know
862,012
almost
tensive course, even a young man
who has never before seen the
output stood
ago
Loadings Advance 13.3% Above Prior Week
Loadings of
a
training ground.
Industry
53,870,000 kwh. above that of the
was
Coal
totaled
the
on
a more active domestic and
export demand. Oats and rye
advanced in sympathy wtih
corn, with offerings light to moderate
in volume.
with
ended Nov. 10, 1951, and 1,232,711,000 kwh. in excess of the
output
reported for the corresponding period two years ago.
As bankers, you will be interested
to
know that as a part of the
school,
for good
the combined
ceding week when output amounted to 7,752,925,000 kwh. It was
410,680,000 kwh., or 5.6%, above the total output for the week
Car
previous, and with 305.02
west and
Demand for lard
The current total
de¬
progress
tence of the
The
and
feet
stitute.
are
extent, at least, on
constantly improving the compe¬
With
own
industry for the week ended Nov. 8, 1952, was esti¬
7,806,795 kwh., according to the Edison Electric In¬
some
Federal
our
all.
when the capacity
The amount of electric energy
and
can
unless
month
A
a year ago
ideal
standing and confidence between
this
the
Electric Output Makes Further Gains in Latest Week
ship.
us
tons.
week
a
year ago.
developed considerable strength last week under the
corn and soybeans.
The sharp advance in corn was
influenced by strength in the cash market
prompted by good de¬
mand from domestic consumers and
export interests. Firmness in
wheat reflected the less favorable outlook
for the 1953 winter
wheat crop as the result of continued
dry weather in the South¬
power
upon
estimated output was 2,021,000 tons with the rate at
have the largest possible member¬
of
with
5
page
2,211,000 tons, while
benefits
justified
are
a
Grains
Domestic
The State of Trade and
failure
in
All
regain
protection,
on
assistance, because
is
compared with 285.21
as
corresponding date
corresponding date two
being in the System,
times
might
lost
we
stand
more
member banks from the devastat¬
for
we
and look to each other for aid and
gov¬
3,
leadership of
imperative that
which will to the fullest
manner
no
are
passing of the frontier, stop look¬
ing to government for paternalis¬
who
character, as
people, com¬
the
It is
control.
They must start looking at
ernment
a
manned
new
who
women
people.
must
continually trying to get their
hands
the
badge of
distinction. Second, the Board rec¬
ognizes that it has an obligaton to
exercise its supervisory powers in
a
this
and
men
cross-section of the people, and
who are subject to the will of the
a
service
improved, especially
tem
constitute
posed of
has reached such gargantuan
size,
ship in the Federal Reserve Sys¬
shall
of
examples
action.
looking at government as
something apart from themselves,
doubt that Congress intended that
the
Board
should
exercise
its
to
other
in
stop
Obligations of Banks
powers
the
the
a
•.
'
First, there
If
in
33
prior
last
week
suffered
as
a
result
of
shopping days and Election Day, in
placed
the
decline
at
close
to
7%
year.
According to the Federal Reserve Board's index, department
City for the weekly period ended
Nov."I,
1952, decreased 3 below the like period of last year. In the pre¬
ceding week a rise of 4% was reported from that of the similar
store sales in New York
week
of
change
ume
1951, while for the four weeks ended Nov. 1,
1952, no
recorded. For the period Jan. 1 to Nov. 1, 1952, vol¬
was
declined 8%
under the like period of the
preceding year.
34
The Commercial and Financial Chronicle
(1850)
Continued
jrom
another
in
bias
established
proponents.
1935 the former
monopolistic position of the
railroads has given way to intense
inter-carrier
competition.
Motor
by the Congress.
As Old
Basis for Suggested
Tyranny
as
Change
the climate of
Last,
although
I am talking
opinion in government circles out¬
about standards or clues for meas¬
side the Commission has cultured
uring change, it may be worth re¬ a new idea
(new, that is, to our
minding ourselves that every pro¬ form of
government), although it
posal carries the fingerprint of is
really as old as tyranny. This
its proponent. In other words, we
idea
is
that government
should
can
often find a clue to the pur¬
initiate and manage, plan and pro¬
pose—and thus even to the desir¬ tect.
In
suggestions for more
less regulation if we know who
ability—of
or
the
makes
suggestion, and upon
what sort of experience or study
it is based.
Every cook flavors
recent
years
to take root
This idea was slow
within
fast
to
has held
years,
ideal
American
the
carrier
which,
Commission
the
iargely through the
that
management initiates and
the
pudding to her own taste. I
publishes rates, and that the Com¬
suppose you have
all had pud¬ mission has
authority to change
dings which were in very bad them
only upon complaint or after
taste! And, although we know that
investigation in which the tariff
too many cooks
spoil the broth, or
practice is found unreasonable
we must, nevertheless, agree that
or otherwise unlawful.
Then, and
any pudding which is for univer¬
only then, could the Commission
sal consumption deserves a con¬
set forth the rate or practice to
sultation of cooks.
be lollowed
Now, if my admitted predilec¬
tions have not already given away
in the future
sonable
lawful in
and
condemned rate
rea¬
as
executives have been complaining
against tight restraints. Instead of
proposing a repeal of
the railroads proposed
introduced into Part
statute and thus made
Since, let
cepted rules of the game, chiefly
the
of
lieu of the
practice. And,
(and for those always, the limits of reasonable¬
hall), let us ness were faithfully held to the
see what
is happening to trans¬ verge of two extremes—leaving a
portation regulation in these re¬ broad zone between unreasonably
spects.
high and unreasonably low rates.
or
outside
the
in
geoned
anew
things
as
Entirely Unproductive
Some
ognized
conservative and
well conducted institution which,
through the years, has done a
good
job of regulating
public
transportation to the general sat¬
isfaction of the transportation in¬
as
dustry
and
measure,
its
In
users.
has
due
the
to
staff.
At
mission
of the
In
not
has
institution of
selected
the
Com¬
posed
or
well
as
devotion,
as
an
Beyond
this, however, I suggest that the
general acceptance of transporta¬
tion
super-men!
regulation
national
mainly from two
have
which
features
characterized
Commission
regulation.
down broad
statute
a
has
ad¬
which
laid
principles and defined
the duties and powers of the car¬
and of the Commission —
riers
with clear and unmistakable
ervation
to
the
small-shipments problem—
any role as umpire or
with
with an an¬
improving and
methods and practices
but,
nounced
rather,
purpose of
initiating
well
as
talked about
was
This
rates.
as
consumed
proceeding
of time, and the
expense and effort of hundreds of
people. It has been entirely un¬
productive.
enormous
Ex
proceeding known
104:
Parte
"Practices
of
Carriers Affecting Revenues" was
colossal undertaking of the Com¬
management
res¬
the
of
rights and opportunity to initiate
methods, rates, practices, and pro¬
grams.
The basic provisions of
Section 1, which prohibits unrea¬
mission
which included, as Part
investigation of spotting
practices in terminal areas—with
II,
the
the definitely socialistic results of
cutting off service at large indus¬
tries (simply because they were
large
and had large traffic vol¬
ume) while permitting much more
expensive service to small ship¬
pers, yet without any general pub¬
lic
demand
or
complaints, and
rates; of Section 2, which with no benefit to transportation.
prohibits discrimination; and of
In the motor-carrier
field, the
Section 3, which prohibits unjust
Commission undertook an
sonable
and
undue
preference
investi¬
preju¬
or
dice, have been the broad stand¬
The
ards.
the
Commission
has
been
impartial umpire or judge to
anyone who felt a griev¬
which
could
ance
remedy.
and
prescribe a
The function truly bene¬
go
fits the carriers
much
as
as
their
patrons, in that they have had a
forum for the adjustment of griev¬
ances.
Beyond that, the Commis¬
sion's
over
specific
powers,
as
those
car
service, of establishing
through routes and of certifying
new
ther
carriers of all types, have ei¬
been
adjuncts of
enforcing the first three sections
the
of
law
necessary
or
have
been
limited
truly related to the philos¬
ophy of a regulated monopoly.
power
Second,
the
years,
the
Commission
has
not
over
followed
any
idea of
of
running transportation or
attempting to improve upon
the
imagination
initiative
or
gation of leasing practices where¬
in
it
yond
was
ment's
fault; and, if service
poor,
it
terms
which
statute
except
the
to
transportation policy,
im¬
has
—concerning
self-imposed
about
and
task
uniformity
of
in
bringing
class
rates
classifications throughout the
country.
traffic.
of,
the
regulation
and
Minimum-rate
cases
As
are
an
becoming almost the order of the
gested
day,
now
rate
place
in
of
the
maximum-
with which the Act
cases
primarily
ment,
considered in the
and which
portation
to
manage¬
trans¬
many
companies
were
of
their
and
dubious
or
totally
lacking benefit..
Even More Ambitious
At the
same
rather
restrained
essentially
bureaus
have
and
the
alphabetical
been
doing, in
a
sensible
same
thing
the
of
concerned
in
the
was
transferred,
so
regulated by the Civil Aero-
nautics
Board
administered
and
by the Civil Aeronautics Author-
the minimum-rate power is
being
ity under the Department of Corn-
used
going
merce—come
not to hold rates from
below
extremely low level, but,
an
the
traffic
lorms
so
the
aegis of
jn
ap
these
Gf
proposals
we
should remind ourselves that it is
may share equally in m0st important that
i_ea-
u
all
via
within
the Commission.
.an.ef/01% to coordi-
nate
he business
with small regard to
forcesmanifest
of competition,
trends
mJ13
x
them-
coordinating
all
forms
of
in
trans-
portation,
in
integrating
their
rates, and in exploring and imposing
improved
methods
and
practices, is impossible of performance
the
with
sion
the Commiskept independent of any
be
political
division
which
that it be kept out of the
tive department and
independent agency.
be
restored
position of
mjnded
non-partisan,
a
as
It should
its traditional fine
tribunal
nation of
execu-
preserved
an
to
means
—
for
the
open-
determi-
complaints, for the set-
tlement of
grievances, and for the
condemnation, after appropriate
procedures, of violations of the
law
To do this> it ,nust be {aken
budget which
the Commission is §>lv*m* As a re0ld 0f ^be g^tus of/a body having
suit, even the normals work or the
design and purpose of improvpassing on complaints, and of ading transportation, of finding betministiating
the specific Pruvi- ter
rules, and of encroaching on
sions of the law, has suffered. The
demands of
best
efforts
management.
the
of
practitioners,
Commission,
the public are
and
being bent toward providing an
adequate budget for the Commission.
No
budget,
made
these
however, could
adequate
trends
to
the
if
the
task
of
all
carrier-manage-
^
accessary in the public
Merest to have our Federal Government exploring and investigatJ"®
questions of transportatlon' ^is S l1aU
,n
^ the
,
j
Possible
versies*
Question: Should such functions
be transferred to and imposed by
executive
from
Reorganization
.
w^° determine contro-
men
ment expenses.
•
be
This,
department?
points of view, would
after all,
some
desirable but would,
One
current
development
or
proposal is responsive to this de-
put
velopment.
better if the investigatory, promotional, and research functions
(if the government must perform
them) were under a side branch
tion,
upon
The
Wolfe
organiza-
direction of
the
Con-
gress, is currently making a study
of the Commission's organization,
transportation
political
certain
under
influences.
It
would
techniques and methods — to the of the Commission itself
end
of
possible
reorganizationr-wwith a clear-cut separation
This is
be expected to be beneficial;
may
but
or
it
cannot
to
produce
economies
promote efficiency sufficient to
offset
the
effect
of
a
new
policy
the carriers.
run
Numerous bills
were
introduced
icies would have
way
proposals is expected in the next
of°controI; ^whereas iLrfwoSl
real
a
tightening,
which
regarded
statute
That
as
is
hibits,
or
substitutes
for
found
practices
or
in
fact to be undesirable and unlaw¬
ful.
NITL
Objectives
Men of the petroleum
.1
v
industry,
companies here represented
have membership in the National
Industrial Traffic League
many
mentioned
in
whichj
the
Chairman's
privilege of serving
sel
—
this
so
that
no
consideration
for
many
as
The
years.
coun¬
League
is composed
the
of traffic managers—
who do the work of pro-,
men
curing,
arranging,
transportation
As
functions
and
planning
Users.
Their
entirely practical—
not speculative; yet they are stu¬
dents
are
of
transportation, critics of;
principles and methods,'
unsound
and
seekers
after
furnishing and
tion.
Without
want to say
tives
who
their
of
ways
fine
work,
to any higher
be
may
petroleum
better
using transporta-L
industry
I,
execu--
listening,
the
not'
would
have prospered and progressed
as;
it has, and would not be flourish--
ing for the present and the future!;
Paying that short tribute (where
-
it is
deserved), I want to tell
that
this
nationwide
shippers has had
tive,
one
viz., that the
you,
league
of
great objec--
United
States
have
the
finest
possible
transport machine and the highest
quality of service at the lowest
must
cost
compatible with fair return.
This
be
can
accomplished
ownership and
under private
Pride
idea of merit,
or
otherwise.
car¬
rier management.
A
spell-binder would
creeping
paralysis
United
the
The.
say:
of
allowed
be
not
must
Socialism
to
give the
States any resemblance to
for
pattern
which
has
transportation
about
come
in
Great
Britain.
In
contrast,
Welfare
the
for
orator
an
State,
paternal govern¬
simple advocate of
greater activity or enlarged pow¬
ment—even
in
ers
off
a
government—would
remarks
my
generalities.
affairs
shrug
mostly broad
in all human
as
But,
and
conduct, the funda¬
important—and they
generalities. The Golden Rule
mentals
are
are
the
and
mentals,
tails.
Commandments
Ten
be right in de¬
we cannot
the
And
distinguished
thing
the
which
United
and which has furnished
and
cess
enjoyment,
Enterprise
the
senting
dividual,
the
Private
merely
freedom
of
suc¬
our
is
name
repre¬
each
but based especially
and
duty
each
not
—
has
States,
give it what
—
choose
you
are
Unless right in funda¬
powerful!
and
where
not
* *eturn * First Principles
responsibility
every
they
person—not
in¬
on
of
the
want to go, it must
that transporta¬
about
come
tion
The Interstate Commerce Corn-
a
possible
statute.
no
the
Section
longer
section
except
upon
4
of
the
necessary.
task
which
pro-
changes
special
methods,
I
principle
of
ceptance
shorter
regulating
^
the
.
r
urge
,,
the
return
,
.
in
and
jurisdiction
in
per-
a
of
™dnutiae °f ra*?s ar\d relationfips - and this under a small
forc® ar}d a limited budget. I
considering the proposals
paramount
full
to
,,
.
ae¬
.
the doctrine that rail-
is
our
government
managed
or
conducted by
officials.
There
the boats, and the planes over this
whole
great
mense—the
too
We
are
in
regulation.
aggregate
rates
for
of
portions
intermediate
of the
through
agements
x
x-
of businesses
i,
u
u
of
^
transx
large free-
and
movement. Yet the bill introduced
sponsibility. and
doing in
ex¬
in the last
dom from interference, in the job
Congress, and proposed
very
tions
of
Consider
change,
imnrovement,
outline
of
or
cross¬
of
carrier
any
sugges¬
progress
„
P°r^atlon s ould have great r
agencies
any
It is quite
today at another
the
managements, and all other man-
the
im¬
to be
as
big to be centered in Washing¬
also prohibits any rate for
through movement greater than
which
too
big
ton.
road
same
so
of administrators.
road managements, motor-carrier
the
is
country
job is
impossible of performance by
army
route, and
over
-
only
without prejudice one and industry. For its continued
the other, i.e., without success in serving the people by
authorship, preconceived taking
them
and
their
goods
mission from the Commission, any
rate which is greater for a longer
a
only
rates
Commission's
example, there has been a
body
of
public
opinion
large
future
mission has had a long and hon- must not be strangling and re¬
functions, to run or to orable history. It is now endeav- strictive rules.
The business of
the
carriers,
rather oring to perform an almost im- running the railroads, the trucks,
the
of
than to administer
For
further
or
the
those
power
and responsibility of the
itself, and in such fashion that
State over its people.
As gov¬
this Would be only under formal
ernment itself is the servant, not
proceedings initiated by others so
the master, so transportation must
that they would be passed upon be the handmaiden of commerce
entirely
Congress, of which only
minor few passed—none having
au¬
thority limited to prescribing for
by the quasi-judicial Commission
in the last
mean
be
much needed study, and tany proposals or positions or pol-
a
public, and for the carriers
themselves,f of a tribunal of nigh
standing and experience, with
-
T„
.
to' their
followed
are
task
logical conclusion. In the end, the
budget would have to be equal to
distance
time that the Com¬
mission has thus been
transfer
opposite thereto, it is sugalso that air transport-
distance than the rate for
users
the
past;
but it has been
which
ac¬
the vari-
the
as
the Commission be
fixed
in effect, to apportion the
as,
coordinate
domain of private
_,
suggested that certain functions of
initiation
staff
has
been
high-principled,
honorable, and rather restrained;
proper
applicable
of,
ten-
a
a
forms of transportation by
duties and
were
the
of
tail
coordinating
policy—of
ous
In all of these the Commission's
theretofore
II
the rates in such minutiae and de-
regulation," there has been
dency—growing almost to
enhancing
studying questions
and imposing improvements which
be
entire Commission so as to make
it subordinate to the Department
of Commerce or a branch of the
new Department of Transportati°n—which is to be created with
cabinet status. Variously, it is also
And, in Dockets 28300 and 28310, broad effects; but renewal of these
the Commission embarked upon a
way,
that, but only
as
Act, calls for "fair and impartial
under
Commission
that it
rates—tnis witn tne protection lor
There is discussion — although
introduction, I have had the honor
ho specific proposals are yet made and
the
a
not concerned with
leasing
be¬
or
was manage¬
umpiring the universally
legislated
dictated.
proved, it was management which
improved it. The Commission was
with
has
the terms of the
prohibit
resourcefulness of management. If
service
actually
..
stated in the Interstate Commerce
be
The
as
years
a
First, the Commission
ministered
transportation.
4,
Another Idea
although
sheer volume of work involved
com¬
•
years.
situation,
in
ambi¬
more
small-shipments
Commission undertook
the
arbiter
resulted
has
and
explore what
as
its well
time
no
war
this
in several ways. In the first
place, the Commission has undertaken >an impossible burden.
The
the so-called
case,
ap¬
intelligence,
behaved
In
inland
up
of
obligation
place in the realm of
merce
personnel
of
restraint of
and
tious
to
and
duty
Commission—a
the
government
enormous
selves
proceedings
different conception
a
larger
a
the
pointed to the Commission,
as
indicate
to
been
caliber
large
general
this
doubt,
no
satisfaction
high
a
recent
more
Section
forms of carriage equal by putting the same burden on the back
of motor-carrier management!*
the result of such
as
waterways, and the developments
These
The Interstate Commerce Com¬
say,
expenditures in opening
Two Features
mission is well and generally rec¬
us
carriage
has
developed
to
the to motor carriers; in other words,
point where most of the traffic in instead of removing the unnecessome
categories
is
carried
by sary burden from the back of railtruck.
Water
carriage has bur- road management, let us make all
the rest-of my story
still
encroachment
iieges of management.
Manage the Canieis?
natural
further
re-
the reserved rights and priv-
upon
Should Government Regulation
of
which
development
suited
pendent
by the railroads, to take care of of making the service meet the
this situation was curious indeed, public's requirements anci of in¬
I say curious,
because railroad suring sound transportation at fair
travagant fashion, there has been
14
page
Thursday, November 13, 1952
...
o+'
suoposed
in tbe light of
prinemfcs.
i.e.,
humbly submitted platform!
my
my
Volume
176
Number 5168
.
.
The Commercial and Financial Chronicle
.
(1851)
.
The
Indications of Current
1
.
f
■
*
•
1
.
"
•
,
'
•
.
Business
AMERICAN
IRON
Indicated
steel
Equivalent
Steel
Activity"
STEEL
(percent
of
capacity)
tons)
J?'.
Gasoline
stills—daily
output
Nov.
1
1.
.Nov.
Kerosene output
ibbls.)
Nov.
Distillate fuel oil output
(bbls.)
Nov.
Residual fuel oil output (bbls.)
Nov.
Stocks at refineries, bulk
terminals, in transit, in pipe lines—
Finished and unfinished gasoline
(bbls.) at
Nov."
Kerosene ' bbls. I at
Distillate
fuel
Residual
oil
(bbls.)
fuel oil
i
bbls.)
CIVIL
received
ENGINEERING
from
6,514,500
6,287,800
6,928,000
6,543,000
22,301,000
2,493,000
23,451,000
2,587,000
22,057,000
2,595,000
10,423,000
-8,525,000
8,497,000
8,966,000
connections
(no.
120,767,000
"34,212,000
"121,286,000
119,793,000
119,563,000
35,212,000
35,904,000
118,078,000
110.224,000
54,101,000
54,617,000
49,724,000
120,563,000
*
Nov.
of
862.012
760,741
Nov.
851,866
663,772
837,617
653,909
723,941
697,185
cars)
ENGINEERING
—
NEWS-RECORD:
Total
U.
S.
Private
State
and
(U.
coal
Pennsylvania
S.
and
AGE
iron
SALES
Electrolytic
Export
9,075,000
985,000
11,335,000
863,000
692,000
"28,500
87,900
144,000
refinery
tin
Lead
'St.
Zinc
(East
(New
Louisi
MOODY'S
St.
Nov.
at
U.
(000's
24.200c
24.200c
24.200c
24.200c
27.425c
5
34.625c
34.850c
5
34.025c
121.125c
121.500c
121.500c
14:900c
13.500c
5
16.000c
13.800c
13.300c
15.800c
12.500c
14.000c
97.26
109.24
Nov
Nov
Group
Group
BOND
YIELD DAILY
Government
Bonds
11
11
103.47
-iov.
,
..Nov. ll-
Aa
1
*
Utilities
Group
.
NATIONAL PAPERBOARD
Orders received
(tons)
Nov. ii'
:
Percentage,
Unfilled
1919
"
of
activity
orders
PAINT
AVERAGE
STOCK
(tons)
AND
end
DEALERS
sales
Nbv...Tri,
AND
SPECIALISTS
Y.
of
Number
of
105.86
109.60
Pennsylvania
anthracite
Beehive coke
Customers'
Number of
other
2.76
(customers'
7
;i_.
TOTAL
FOR
Tota)
ACCOUNT
Round-lot
Short
3.38
3.38
3.22
Other
Total
3.05
411.4
422.2
459.8
200,915
-
335,236
95
553,261"
.472,987.-
109.39
-
109.28
tC.
floor—
582,964
599,922
and
4,840
189.4
280.3
277.6
1
213.8
206.4
217.2
239.3
242.3
'-205.1
227.6
346.6
141.4
161.5
190.4
—
346.6
141.1
189.9
188.2
202.3
—
345.0
201.1
209.0
142.3
137.5
147.6
147.3
144.4
99.0
99.0
97.3
210,1
209.0
204.:;
164.2
157.L
205.0
204.2
211..
173.8
173.2
166.C
$146,410,000
$145,944,000
34,400,000
31,584,000
8,253,000
8,229,000
7,453,000
28,532,000
48,768,000
29,886,000
—
——
~
benefits
Disability
Annuity
265,550
170,310
189,POO
173,400
265ZS50
Policy
of
MOODY'S
25
279,150
304,250
276,646
WEIGHTED
|
Industrial
Railroad
205,290
171,340
18
190,800
6,048,480
5,606,060
5,626,080
18
/
L
487,220
'6,253.770
5,777,400
5,816,880
297,270
9,826,560
10,123,830
\
.
—
j
U.
S.
v
>
AVERAGE
YIELD
625', 210
ih
Banks
(151
5.62
527,680
556,920
1,013,470
91,680
89,140
543,620
427,290
902,880
506,COO
516,430
1,069,420
118,830
136,020
222,630
6.41
5.28
5.77
4.29
4.23
4.77
3.15
3.18
3.44
5.56
5.56
0.U2
$942,139,287
674,576,858
$899,733,630
$856,153,461
71.60
——
73.73
76.85
$113,780,148
$105,535,059
120,912,578
104,939,433
78,668,841
95,000,000
79,000,000
53,000,000
$592,065
—
$585,995
$485,532
—
—
——
(200)
EARNINGS—CLASS I ROADS
OF
AMERICAN
(AS¬
RRS.)—Month
of September:
operating
Total
operating expenses
revenues—
—
-
—
railway
Net
income
operating income before charges
after
charges
< estimated)__——
663,359,720
657,912,594
166,540
414,320
6.15
6.03
5.30
(10)
Net
116,940
"
5.63
6.14
—
Total
*
REAL
ESTATE
AREAS
AND
3,100
5,100
15,400
156,400
18,200
141,800
111,800
270,210
127,200
288,410
Bank
S.
—
FEDERAL
INSURANCE
August
IN
NONFARM
SAVINGS
CORPORATION
(000's omitted):
Insurance
146,900
FINANCING
U.
OF
LOAN
—Month of
164,500
Oct. 18
Savings and loan associations
companies
and
Mutual
223,700
224.988
212,950
22.330
380,799
24,850
31,800
45.740
is
---325,780
263.530
18
288,380
225,295
257,095
13
964,910
871,498
905,890
1,616.899
trust
savings
118,874
113,440
132,080
313,236
317,159
293,493
108,285
companies—
banks
104,994
88,283
239,129
245,535
227,046
226,194
223,196
222,533
$1,597,783
Individuals
$1,590,319
$1,448,967
$264,964,296
$262,721,632
$258,335,674
6,175,061
7,156,176
4,873,884
$258,789 235
$255,565,456
$253,461,790
:
——
Miscellaneous
lending
institutions
:
438,577
348,110
484,317
Oct. 13
147,370
1,025,800
819,650
764,385
1,611,667
1,173,170
941,280
900,725
1,842,147
~Oct
$288,393,000
OF
(125)
(25)
Operating ratio
'*
Oct. 18
^
sales
54,840,000
$318,461,000
47,978,000
STOCKS—Month of October:
'
—Hi-Oct.
WHOLESALE
-
<26,483,000
42,855,00c
54,145,000
(24)
SOCIATION
18
~
._Vl„
-
200 COMMON
futilities
membersHft ~~
sales
56,273,000
—
dividends
Aveiage
Qct
account
$122,338,000
35,119,00t
$322,636,000
:
Total
Insurance
ZZZZZZZZZZ_ZZHZZZoct!
sales
payments
$129,932,014
,
v
•
-
payments
18
_
LIFE-
September:
——
Surrender values
$41,923,238
173,400
__0ct. 18
"3$
OF
TO
Matured endowments
954,010
660,560
floor—"
PAYMENTS
17,049
595,082
116,000
_
PRICES, NEW SERIES
LABOR—(1947-49 =±= 100):
/
Commodity Group—
vegetables
oils
INSURANCE— Month of
971,059
5,742
13
sales
sales,
186.6
227.3
216.7
*_
POLICYHOLDERS—INSTITUTE
Death
532'
577,222
18
——(
Total round-lot
transactions for
Total purchases
191.1
235.5
194.2
278.5
products
INSURANCE—BENEFIT
1P
the
190.8
194.1
x_
products—
142.4
32,333
$24,376,660
-ZZZZZZZ
sales
Other
4,281-
1"
purchases
Other
Total
21,164
.589,974
Oct
,
sales
Short
128
20,336
189,990
_W-___Oct.
off
bakery
Fuel, electricity and refrigerators
Gas and electricity—.
32,865
170,310
rw
purchases
Short
Total
167
■
-
_ZZZZZHZZZort
-gort sales
Other sales
Total
124
20,673
594,255
"'*
21,292
25
Qct
Z-ZZZZ
transactions initiated
15:
233.2
and
Clothing
RAILROAD
_
Total
*"
20,503
:
a
-a—
the
Sept.
—i.
Sugar and sweets—
42,697
$23,704,017
ZZZZZZ_ZZZZoct.
sales
Other
20,797
-
——18
on
as
———
Fruits
1,224,448;
$23,838,174
__Oct
initiated
of
CITIES—
Beverages
$53,842,025
TRANSACTIONS
(SHARES):
> r
:
transactions
553,400
MODERATE
LARGE
116.30
YORK
_
sales
IN
Other fuels
25
purchases
Total
24,083
689,120
$31,188,227
TRANSACTIONS FOR ACCOUNT OF
MEMBERS, EXCEPT ODD-LOT
DEALERS AND SPECIALISTS
Transactions of specialists in stocks
in which
registered—
Total
Other
26,290
732,341
$32,785,362
ZjLoct.
NEW
sales
Other
FOR
221.4
487,788
240,751
97
25,139
25
ROUND-LOT
Toral
3,267,000
"260,300
85
..'
242,598
.....
25
^
-
sales
42,954,000
2,663,000
foods
Dairy
297,394
207.910
sales
Short
items
All
2.37
694.152
—ZH Jet!
SALES ON THE
ROUND-LOT STOCK
sales
"34,320,000
3,694,000
tons)
tons)——
3.19
3.06
All
3.40
3.21
3.05'I
Oct
STOCK
OF MEMBERS
168,333
Meats
Oct!
dealers—
sales—
(net
(net
1935-3!)—100—Adjusted
3.55
3.54
$30,480,614
Qct."^
shares
AND
FAMILIES
Cereals
25
,_I Oct!
ROUND-LOT
242,718
MINES)—Month
lignite
INDEX
Housefumishings
—Oct. 25
;
sales
EXCHANGE
and
PRICE
INCOME
OF
Miscellaneous
Cct. 25
sales
purchases by
205,262
244,068
.
coal
3.24
'
2.95
'"rKft
Oct. 25
Round-lot sales,by dealers—
Number of shares—Total
sales—
of
Bituminous
3.55
109.8i>
Oct. 25
sales
Other
(BUREAU
September:
3.24
97
Oct, 25
sales
other
Number
of
3.19
'
-1:
sales
sales
short
Round-lot
OUTPUT
3.24
sales)—
value
Short
COAL
2.66
3.22
Oct. 25
shares—Total sales
Customers'
267,607
(net tons)
STOCK
COMMISSION:
sales
Customers'
Dollar
373,595
414,309
—
165.8
Oct!
short
653,378
510,325
46,870,000
:
________
3.00
452,959
Oct.
by dealers
municipal
Federal
LIFE
orders—Customers': total
Customers'
and
purchases)—
value
purchases
$1,026,973
441,893
of
____
103.30
ODD-
shares
Dollar
Odd-lot
$952,218
658,377
EN¬
—
Month
—
:
108.70
INDEX—
N.
103,616
_—$1,446,381,000
788,004
CONSTRUCTION
113.12
orders
Number
ON
EXCHANGE
(customers'
•*
l'r
„_Noy.
PRICE
FOR ODD-LOT ACCOUNT OF
by dealers
Number1 of
:
JZl
period
Nov.
EXCHANGE—SECURITIES
Odd-lot
of
REPORTER
KM)
TRANSACTIONS
LOT
j:
at
DRUG
=
State
3.01
.244,854
.
272,951
"109,208
*
97,568
construction
3.08
226,485
Nov. "1"
—
OIL,
Public
Fats and
(tons)
405,077
"252,209
S.—
(000's omitted):
3.00
407.1
•U
Nov.
$781,644
"444,654
229,184
U.
construction
CONSUMER
ASSOCIATION:
—
Production
•
"$806,071
410,003
THE
NEWS-RECORD
114.08
3.20
Nov. 11
INDEX
OF
S. construction
3.07
3.37
-Nov. 11
Group
U.
3.54
______^Nov. 11
COMMODITY
October
Total
3.24-
11?'
66,838
etc
106.21
v
44,522
j.
113.70
3.22
17,235
42,791
VALUA¬
.
109.06
2.70
70,623
64,632
96,651
(tons)
PERMIT
AREAS
103.47
""
78.167
78,435
94,541
LABOR—Month of August
alterations,
2.99
11
Public
OF
76,019
78,129
_
omitted):
3.06
Nov. ll
Group
URBAN
DEPT.
108.70
_
(tons of
pounds)
(tons)
111.62
109.24
3.21
13,417,000
of
356,800
period
112.93
'
106.21
2.69
217,752,000
17,739,000
$736,756
2,000
ENGINEERING
109.60
112.00
'
11
212,839,000
;
of
of
GINEERING
-jfc.
-Nov. 11
cbrporate
Industrials
*"
.
11249
7,500,000
export
building construction
CIVIL
97.65
109.06
103.30
109.42
Z
96.30
108.70
106.39
10,000
16,940,000
9,917,000
15,033,000
and
nonresidential
19.000c
AVERAGES:
Aaa
MOODY'S
97.10
111.81
108.70"
"3.
v
112 12
112.00
11
Nov
Utilities
Industrials
IN
S.
Private
109.06
.113.31
11
Nov
Group
■«'—
39,000
17,434,000
219,145,000
domestic
output, all grades
l tons
Additions,
19.500c
Nov. 11
206,729,000
190,362,000
16,357,000
41,000
residential
18.800c
12.500c
5
AVERAGES:
Nov. 11
T85,917,0G0
17,271,000
9-, 122,000
INSTITUTE, INC.—Month
New
103.000c
5
Nov.
6,755,589
18,519,000
(barrels)-
New
>(ov.
DAILY
203,227,000
188,868,000
17,628,000
(barrels)-.
CONSTRUCTION
TION
-ov.
Baa
Railroad
150
.ov.
PRICES
8,660,357
1,413,672.
206,537,000
I_
——_
!
4.376c
iov.
at
"8,493,687
gal¬
I
stock
end
BUILDING
4.376c
4.131c
at
.106,043
6,312,118
(barrels)
Unfilled orders at end of
period
$52.72
Nov. 11
Average
147
$42.00
—."Nov. 11
S.
136
$55.26
__'
:
of 42
(barrels)
(barrels)
imports
smelter
at
$42.00
at
118,935
produced
pounds)
$55.26
at
York)
zinc
2,000
Shipments
All
A
U.
Slab
$42.00
5
(barrels
output
—
all
AMERICAN ZINC
$55.26
Nov.
93,400
106,043
INSTITUTE—Month
consumption
(barrels)
$42.00
;
Public
7,396,115
QUOTATIONS):
at
oil
imports
Increase
Nov.
;!
J.
U
MOODY'S
.121
7,697,880
4.376c
3,212.600
3,013,100
73,137
9,034,000
castings
September
gasoline output
(barrels)...
oil
Nov.
—
ton)
Louis)
BOND
Railroad
116
-7,752,925
143
3,147,038
2,954,966
58,184
September:
"122
7,806,795"
Nov.
corporate
Aa
3
10,968
3,152,189
output
Stocks
Government Bonds
Average
115
,
PRICES:
M.
Natural
Benzol
Indicated
2,150,000
73,816
15,759
3,316,416
_____
Crude
65,900
73,368
19,842
—
crude
Refined produces
DUN
—
„_
ton)
&
reiinery
(New York)
S.
INDUSTRIAL)
lb.)
(E.
each)
Domestic
19,565,000
____Nov.
AND
85,175
products,
PETROLEUM
54,267,000
849,006
Ago
U. S.
INSTITUTE:
for
of
domestic production
43,800,000
9,175,000
Year
Month
July:
93,093,000
Nov.
kwh.)
the
Including alloy
stainless (net tons)—Month of
August
78,166,000
'
STEEL
steel
steel
69,328,000
Nov.
,
100
=
INC
gross
of
17,489,000
Nov.
„
Straits
U.
000
and
tens)—Month
AMERICAN
of
AND
57,272,000
copper—
Domestic
Lead
73,832,000
INDEX—FEDERAL RESERVE
AVERAGE
(per gross
PRICES
ingots
(net
Shipments
85,693,000
136,893,000
INSTITUTE:
(in
(per
(per
Scrap steel
METAL
147,494,000
Nov.
COMPOSITE
Finished steel
Pig
74,761,000
MINES):
(tons)
(tons)
(COMMERCIAL
BRADSTREET,
Steel
IRON
Nov.
'tons)
ELECTRIC
AMERICAN
$159,525,000
204,680,000
lignite
STORE
Electric output
FAILURES
OF
of that date:
Previous
MINES):
(M therms)___
Nov.
BUREAU
SYSTEM—1947-4!)
IRON
$341,573,000
__
anthracite
coke
DEPARTMENT
EDISON
$276,859,000
129,365,000
;
OUTPUT
Bituminous
Beehive
120,681,000
Nov.
municipal
Federal
COAL
$195,442,000
Nov.
,
construction
OI
Natural gas sales (M therms)
Manufactured gas sales (M
therms)
Mixed gas sales (M
therms).
lons
Nov.
construction
Public
Total gas
Total
construction
are as
Month
(BUREAU
August
8,792,000
53,292,000'
l"
either for the
are
AMERICAN GAS ASSOCIATION—For
month of
August:
and
■
of quotations,
cases
Production of primary aluminum
in
(in short tons)—Month of
9,226,000
120,077,000
i~
ALUMINUM
2,737,000
10,531,000
Nov.
iv™—
CONSTRUCTION
2,021 000
6,938,000
'
Nov
_
cars)..
'Revenue freight
2,211,000
9,907,000
-
1
isov.-l....^33,760,000
at
at
101.1
6,537,700
23,687,000
t-
—
ASSOCIATION OF AMERICAN RAILROADS:
Revenue freight loaded (number of
106.5
2,200,000
ff,549,050x-„
li(U852,000
1~"
—_
in
or,
Stocks of aluminum (short
tons) end of Aug.:
1~-
—
that date,
Latest
of
(bbls.)
average
(bbls.)
"105.9
2,209,000
Nov.
Dates shown in first column
Ago
!*
^
(bbls.
average
on
production and other figures for the
cover
Year
Ago
106.4
—_—Nov. 16
output—daily
-Month
Week
•<*'.
jp. •
(net
each)
to
runs
month ended
Previous
Nov. 16
to—
gallons
or
month available.
Week
INSTITUTE:
AMERICAN PETROLEUM INSTITUTE:
Crude oil and condensate
42
week
or
Latest
AND
Operations
ingots and castings
Crude
following statistical tabulations
latest week
*
18
DEPTHOF
121.630
136,340
230.480
Total
UNITED
r
GROSS
STATES
DEBT
DIRECT
AND
GUARANTEED—(000s omitted):
As of Oct. 31
General
fund
balance
.
AH
Nov
,
products-.
Processed
Z
Z
ZZZZZ
foods
*Revised figure.
uZZZZ Nov.
ZZZHZ Nov.
110.1
"110.3
104.5
106.6
other
than farm
and
foodlZZZZZZ.
105.6
"106.2
108.5
99.4
"101.1
108.3
Nov.
112.4
112.4
U2.K
annual
ZINC OXIDE
runs.
2.349 %
rate
2.348 ^
2.3107c
(BUREAU OF MINES)—Month of
August:
Production
Shipments
Stocks
Includes 630,000 barrels of
foreign crude
—
111.1
104.3
Nov.
.
Meats
A1F commodities
debt
Computed
commodities-
Farm,
Net
'
at
(short tons)
•-—
(short tons)—
end
•Estimated.
of
month
—
(short tons)
tNot including American Tel. & Tel
13,376
12,433
17,573
17,408
16,783
14
21,280
25,310
1J,Jm3
.-3
35
36
Financial Chronicle
The Commercial and
(1852)
Continued from
y
r
30 % of our exP°rts went to the and capital and toward quicker too
4
naae
J
rksNlflNIV
rflAVt Alff 1A
•
IlvOlftVllllV
turn
n#
the
United
in-
Canada
trade.
international
of
this
from
turn
Trent in Canadian business and
Kingdom
noted
during
but
level
the
up-
an
been
has
eight
of total
first
bilities of increasing it by re-
bcene
Returning now to the domestic real terms has
two generally broad changes
in direction have taken place, the
first entering on employment and
the other in the field of welfare,
Whether or not war speeded up
what has been called by some a
scene,
since the end of the war has been
montbs
actively engaged in the United
Nations and in the North Atlantic
Treaty Organization in our own
right. In years gone by we have
participated in international conflict but in the past our movements from a peace footing to a
military program and then to
peaceful pursuits were clearly defined. The outbreak of war in
Korea in 1950 has brought home
with regard to the sterling area tbere aiso js noted a
modest increase during the eight- social evolution is open to debate,
month perioci and this in spite of In any event the outbreak of war
reciuctions in import quotas de- in 1939 did resolve some of the
ment
$4.5 billion, and it is estimated
to
billion will be inAs in the case
Gross National Product, these
that
•of
$5
some
this
vested
year.
perhaps distorted by
the inflationary impact of recent
years. In terms of dollars of conslant purchasing power, it may be
figures
are
said that
nation
in the oft-referred to small in numbers though we may
of 1929.
be—have continuing responsibilihas
than
year
jpeak year
have
We
tinue
in,
concerning
investment,
importance
its
of
a
might not be amiss
two
or
period of rela-
a
capital
heavy
because
word
higher each
been
had, and in fact con-
be
to
tively
and
investment per year
our
1946
since
aspects.
through
two
or
one
From the end of the war
good part of our investefforts centered on recon-
19-48
a
ment
version, modernization and expan-
plant and equipto meet current and antici-
sion of existing
ment
paxed demand. By the end of 1948,
the reconversion period had cvded
adjustments within the labor
•force
and
employment revision
and
become more or
less stabilized.
During this time
investment requirements
in
the
bad, in general,
neighborhood of from $1% billion
to $3 billion — averaging at the
rate of some $2 V2 billions per year
this
for
period— were almost en-
itively financed within Canada.
During 1949, expansion and ac-
new
in
noticeable
more
form of
investment
capital
companying
became
the
plant, new industries
the fact that
we
as
a
of
1952
19%
to
signed to impr0Ve exchange rep0sitions. It might be added
at tbis pojnt tbat all countries
serve
what is lacking
time
is
a
jn
same
at present
corrective mechanism,
truly
recen^
trade
have
cannot
at the
engaged
jn
trade
favorable balances
years
bias has
a
been
north-south
evident and
the
that
distribution. In little more than
a decade the national income in
million. Last year, investactivity in Canada amounted
exports.
emphasized
by output far exceed the possi-
,
.
dustry amounted to approximately
$850
often
changes outside possibilities of increasing welfare
to
Changes in Canadas Domestic
credits, and the like. In 1951 only
16% of Canada's exports went to
1
I H11#ln
VUI1UUI1
VI
percentage has been recorded in
of assistance through ERP,
spite
#1
#
m
I vim *||A
VlliUCftlV
readjustment
lowing years a steadily declining the national economy.
a
__
B
m
TLa
'lDv VnallUlIlQ
Kingdom and in the fol-
United
—
_
Thursday, November 13,1952
...
than doubled;
more
in the next 25 years a further
doubling in real terms would go
a long way towards improving
the standard of living from coast
to coast.
We now are in the third year
of the Korean war. This war
perhaps has effected the greatest
change in our economic thinking
grievous and unsolved eco- that we in Canada—that we on
nomic and social problems of the this continent—have had to face,
depression period.
Late in the The necessity of meshing a miliwar consideration was being given tary program with an essentially
to possible postwar patterns and civilian program, and at a time
it was at this time that we began °f accelerated resource developto accept the idea of "full em- *acnt, invited and required great
ployment" as an objective—not as resiliency on the part of'the peoa circumstance.
P]e and ima£ination on the part
more
that must be fulfilled.
ow in part refiects our efforts to exSo far it has been unnecessary ^nvpL,P)?Z.er^price
jt 1S oby1(JYS tbat
muSLrp
Pand markets in the United States for us to construct the machinery f1
HnulLrfimlff1 more
*lor} wlthtbe objectives bef<ore 3S in 0rder to pay for our imports for the implementation of a "full <,rpiJnPCcUSe
both of defense and of domestic frQm the United states, greatly employment" program. Interna- sive and often Impractical
progress.
It is unnecessary to reflect on
the events since V-J Day leading
up to our voluntary participation
in international organizations, designed by their architects to bring
about the return of peaceful and
fruitful commercial relations. Yet
I would suggest that since 1945
the contributions by Canada to
international rehabilitation and
stability are in both marked and
significant contrast to our prewar
position. Bearing in mind a complete prewar Federal budget in
the neighborhood of some $500
million, we have during the past
six
years
made
contributions
abroad—in financial terms—to the
total of approximately $2.5 b 111 n.
In prewar days we were scarcely
interested in tne condition or a -
increased as a result of the high
feVel of Canadian incomes, assocjafed with a rapid rate of eco-
development.
nomic
In
dollar
terms, our doniestic exports to
the
reconstruction
tional
and reconwith our own
coupled
version
provided
development
domestic
than the necessary impetus
to the achievement of a high and
sustained level of productive em-
creased from slightly more than
three times to over seven times
"Employment and
Income with special reference to
this value.
Percentagewise the
north-south trade has absorbed an
the
Paper
initial
tion"
of
Period
Reconstru-
the
gov-
(April
continuation of this
would appear to present
run
combat
the
is
necessary
to
the
the
degree
practicable.
and
We
as
weapons
problems of adjustment in achieving their
the Canadian economy. Our econ- test of time.
are
been
have
and
desirable
for
forced
thp
issues
choose
to
investments
of
manv
against
ditions
in
an
may
our
go
impose
a
nhase
our
battle
inflation.
war
of
are
and
Con-
neither at
economy
nature
This
new
a
in
us
at
nor
gram
of to
is
incipient
a
for
on
was
pe-
bearing
preparedness
avail- the Government
awaits the to
with
conp
has been and still
deemed
capable
purpose
rp
the,
between desirable exoenditur^
that
our
thp.
of
inflationary
mind
extent
pfforts
to
utilized to
be
Whether
many
nositivp
for
iq^9
Government
culiar
will
fnH
10=51
war-insnired
peace
available
hmWtc
of
vpars
fieo+
Mono-
mPa,„rP5
,-n
nnrafPfj
fiscal weapons
now
ficpai
d
aggravated cyclical change
monetary and
abje
led
1945)
action
ernment
For the near future the pattern
trend
white
to
of Canada's trade seems likely to
be a continuation of the present
trend—in the short run at least,
iong
and
sions
larger share of our supposition that if and when
total exports.
A
However the discusthe publication of the
ployment.
controls
government
t
more
United States in the prewar perjod aVeraged $321 million; in the
past five years they have
in-
increasingly
f
in
pro¬
time-
some
careful not
therapy
ill-suited
with the ailments.
Assome one observed not long ago,
cope
^rna^d' xoendTt^es^^hen
of
anv
°my and ihat,oi the United States
We also have had emphasized very few people dislike inflation.;,
s^nifieance 1*% m°re °F V®s
rofwhichi m the same vein, if the agitatioa
ug a welfare philosophy moc
and, of a"d
?'^cLsoUdate our 1°£ he Pr°d"?ts ot while not perhaps worked out as
some months ago is any guide,
course, in new resources.
Paced As we expand and consolidate our which we have an exportable sui- f
enme
would
like to
see
there are those amongst us who
by the Leduc oil discovery, we
Plus are not readily marketable in
]read
js reflected in young ag' favor controls for their own sake.;
may properly include the develternationai anairs it is not un
the United States. Our industrial
opment of iron ore, uranium, ti- likely that we shall be expected t.apacity
has made
enormous KJ "£
welfare
and "
BaSi.C tac,t0rS, I" ta»ada's
tanium, and so on. Recognition of to eontmue in this role.
Mam- strides in the past decade and it
Industrial Growth
these resources naturally invited festly it will become increasingly is
uniikely that United States
d
nrl^ ,,,nnnrt, of
.
At this stage of the year 1952
•consideration
of processing and difficult to determine the degiee markets for our processed goods
,
nnnther
ELp hppn aided hv ** may be interesting to assess
manufacturing techniques requir- to which our financial or tech- would expand in proportion to our
nf
voHictr-ii-m+irm
nf
it-,
briefly some of the basic factors
ing substantial long-term capital nical contributions should con- industrial
expansion. It seems,
*urmifrh
thp
tnvinct
nnurpr
and changes in our commercial
investment.
Beginning
at
this tinue in the light of the alterna- therefore, to be in the interests
e 1
^nhvin^J
and industrial growth. First of
time, we witnessed a quickening fives or choices that undoubtedly of Canada
continually to seek fldaa*®
f
™ts all, the accelerated rate cf renf United States interest in the w.111 confront us.
It is the hope m0re diversified markets in order \?
prJ°.cc<a",d
1Source development, which hag.
Canadian economy reflected by an °f many that enlightened
selfpr0ceed with our development .
A
been taking place during theinvestment
during the year of interest will have its impact on as an industrialized nation as well
mLI +hf H
past three or four years' is likelY"
some $500 million—a figure highthe discussions — even with our as a suppiier of feed grains and
tT1*9™
T
to continue on a somewhat similar
industrial
new
aredof
processes
Activity
°uarttare"au®idFtI"^'ra"d
nnma
0
„
recent economic development and agricultural products.
lca.nt tof. bein+g s°—mat yo4+Jan~
combined—and in the past two its
accompanying statistical agxhis can only be achieved by not continue to consume without
years this investment has been in gregates the mantle of paternalefforts toward re-establishing a pr0 ucinS*
the neighborhood of $750 million ism is unattractive.
freer world movement of goods
While we have become prethan in the three previous years
er
each year
and by
a
stimulation of the free
ImP°rtance of Canada's Foreign
Trade
flow ot investment capital. Tariff
ment opens up many avenues for
barriers, import and export rediscussion but time permits but
In our preoccupation with do- strictions,
inflexible
exchange
two
brief observations.
Capital mestic
and
regional affairs it rates and inconvertible currencies
The
subject
investment of
capital
of
a
invest-
sustained charac-
comes
to
some
realize that for
as
shock
a
to
hamper
such
freedom.
has
effects
multiplier
which
years
about 30%
a means, not an end in and the nations that are self-sufficient,
itself, and productive capacity nor can our trade problems be
must be related to capacities to viewed in the
same manner as
consume—effective demand—both those in other countries. (I would
ity is
of
more
immediate
In
the
of the
make it an attractive factor in the of our Gross National Production "North Atlantic Triangle," Marmaintenance of high employment, has been generated by import and shall Aid
and other such ternBut this form of economic activ- export trade.
We are not among porary expedients have preserved
ter
sphere
measure of multilateral trade
but they present no permanent
a
cure.
Only. by
exports
to
increasing their
dollar countries can
or greater scale for some time to.
come. One of the most outstand-
ing examples of such developments comes from our oil fieldsoccupied with the subject of con- in the west which are presently
sumption—or, perhaps better, the
Purchasing power necessary for
consumption — and particularly
with respect to certain groups, it
may be that we have tended to
overlook the road-blocks to producflon. Perhaps the wider acoeptance of welfare concepts relatlY.e *.° a de^ade ag0 desP|te
contmmng confusion as to the
Pi!eclfe meaning or miplication of
is a notable change.
n e e da c. a^ntotion is
L.? term
fulfilling one-third of our oil
requirements as contrasted WitU
the import of 89% of our crudeoil in 1946. However such development must not overshadow therecent increased expansion of thechemical, iron ore and base metal'
developments as well as the exP^ion of hydro electric power.,
W ith every reason to believewe will surpass the high
Gross National Product already,
achieved, there will be the accompanying high level of dis-
the United Kingdom and other
h W-e
sbo}lld support the
siSned for the problems faced by sterling area and "soff" currency J
fc^, involving the redivi- posable income, an influential
r0untries are not neressarilv countries earn the means nf nut
Sl0n of the existinS stock-pile of factor in the expanding consumer
ing standards of living (and gen- oiner countries are not necessarily countries earn tne means ot put
goods 0
whether in the general market. While I have emphasized'
tvral annrnval
ting their currencies on a con- f. Y
.
.
s
\u f
iu
f
empiidbizea.
era! approval thereof) ana bearing applicable to ours.) While it would
tnereotj and nearing
^
exaggeration
to
sav
that vertible
basis
lessen
their
de
self"mterest an expansion of the the fact that an expansion of welm
mmd our population growth
^^18 our life Mood it would nendence on bi ateral trade ar stock-pile might not provide lar- fare should be based on increasing
both natural and by immigration,
°^fr it wer^not nSnted rangements and secure fo? them" gGr Secti°nS for every 0ne~a production' the converse is na
it would seem from an anthmetihe remiss it it were not pointed rangements and secure toi them- not
further suggest that solutions de-
domestic and foreign.
Having regard for
.
our
improv-
fiayipf regard tor oui improv
unworthy
cal point
of view that growth in
Gross National Product is essential and
ment
that
a
a
continued
long
capital investIt is suggested
necessity.
investment target
of
Gross
National
run
objective.
If
we
18-20%
is
within
our
means
its relative importance.
In the period from 1935 to 1939
of
States and 24% to other countries,
partly the
Sphere
Since the war, however, a steady
effect of widespread disruptions conviction
In the international
m
have
trecent
economic
been
years,
front
on
on
and
sphere two decline in the
percentage
of
our
taking place exports going to the United Kingthp
nnm.Vn
the politico
in
namely
that
Pv
Canada in the Internationa!
changes
significant,
^
fiected in toe fact that within ten Government Outlays Up Ten-Fold
years
the Canadian dollar has
Today the amount 0f money
achievement if personal and cor- our exports were distributed appassed through a cycle of de- allocated by the Federal Governporate saving is not discouraged, proximately 40% to the United valuation, revaluation and deval- ment on the grounds of need is
Kingdom,
36%
to
the
United uation, of fixed exchange rates, over ten times as large as in
of
Product
less
to3* we would appear some- s ves an
or the world as a support the latter alternative then steadily
increasing
production
w^at ancmic without it. That an w o e the bene its of multilateral it becomes giaringly obvious that requires increasing consumption
estimated three out of eight peo- trade.
deterrents to production are not both at home and abroad,
pie are daily engaged m the trade
That our trade picture continues in the general self-interest.
Resource develooment and
segment of our economy indicates to be in a state of change is repansion acco^
terhn^
^
dom
and
other
Z,
Commonwealth
the field countries has taken place. In 1945
cause
and
partly
the
1939.
1
think
it
that
can
our
be said with
economy
is
improvJ^ents
logical
suggest
that industrial development and
capital investment will continue
to be high, though at this sta*e it
would be difficult to forecast^ the
rate
of
future
investment
In.
addition to these favorable under-
m our foreign trade and in our becoming more and more humane lying factors are the savings of
reserve position. Our move away and that care is being taken of people across the country which
from a flxed rate *o free market the unfortunate and needy. But have attained a very high level
rates
is
one
step in the direction to those who envisage expansion
toward freer movements of goods of welfare services it cannot
be
relative
years
to
ago.
even
This
three
or
potential
four
source
[Volume 176
Number 5168
.
.
The Commercial and Financial Chronicle
.
T
■
■
(1853)
of
spending
hp
be
not.
not
rpnnhpH
reached
nevertheless
of
powers while
it
may
immo/Jiot/ii,,
immediately,
an
Assuming
is
strength.
^
^
it-
some
underlying factor
it
years
will go
;
cold
a
is
investment
ability of foreign countries
buy
the
products
of
our
to
in
Tnis element of
Under
expan-
sionary economy. We have a continned
and
important* stake in
trade and for this
reason we ac-
lively
participate
in
and
watch
cal)
have
perity.
levels of pros-
our
Furthermore, there
question
of
pensity to
the
is the
consumers'
spend
with
pro-
regard
their increased
to
earnings. Will they
contmue to purchase
commodities
at the present rate
or at a
greater
or
lesser
rate
in
the
months
Iflr
ahead? ThlO
This query rtnvwtrti I.« ancannot be
_
/llinmr
in
swered
brief
compass
other
than to re-emphasize
the fact that
attitudes and
consumer
are
spending
basic to the over-all
of the
prosperity
economy.
^
.Uur defense program will
tinue to
expand
and it is
in the
possible
encounter
our
basic
we' may
in
of
some-
materials-—
ordinarily
tions.
con-
future
near
that
shortages
materials
for domest i e nu r-
used
..Yeti
even
in
"grey war,"
a
a
condition, too,
the necessity
that
so
ones can expand, then it's
we
new
be formed and old
can
neces-
sary
of
'
'
It
weapons.
arsenal
our
of
is
possible
ideas
with
women, for, as Mrs.
nointed out with ereat
that
which
it
to combat alien influences
may be
less
to
up
They
date
than
well
may
to
be
bank
is
on
healthful
a
u*te
interests
business
to
conditions
our
(progress, we call it) it is
equally important that from time
i.!
to time
-
11
-
expected-
and
newspapers
*
information
The
papers.
thing only
from
the
and
'
•
the
is
individual
information
selves;
PAn'f-iM'Hiifrnri
is
it
and be
against
f-AwrnrH*
this
T
•'
back-
likr»
to
up
have
fhinlr
to
me
needed
r\f
n
H nil
neighborhood.
*>/
/?•
f
■'
^
A*
w'"
"
b<
'
•
institutional
;
nnllA^I
<?/\
The
so-called
to
in-
ox*
Ka_
as
profits tax, which had been
publicly criticised by Truman
'
'
'
f
•
dollars only from additional
gifts
or loans from Uncle
Sam.
two
things
which relate to your midwest auto
next
A
June.
But
here
even
Treasury's
simple giving
that levy's $3 billion take
the
unshaven
munists
who
Day parade
discuss
wild-eyed
march
the
May
Eighth Avenue
on
the
in
can
European
the
stories
are
eco¬
nomic.
News About the New President
When President Eisenhower
gets
to the White
House, he will be
have
to
try to
balance
the budget while
-
t
reducing taxes—
challenging, assignment indeed,
He will have to
adopt policies to
control inflation and turn the
prevarious prosperity into
something
strong and growing/,
He will have
tent
t
qf
to
-
;
.
decide
,
the
-
whether
.we
can
jpaaport
*
more
to
'^^r0Pea,T flatlWnS With°Ut
hurting ojer.own
-
.economy.
He wilhface the problem of Eu-
Tx
...
-
rope's yawning dollar gap.
He
will
have
to
deal
numeous
-such
as
.to
education,
health
surance, and public housing.
He will have to decide how
to
efficient veterans' pro¬
the
be required
tangled
program
to
unravel
C°n"
All these relate to
your invest-
It
has
.
me
minor
knowledge of
-
.
^
.
„
,.
_
Awaken,ns to Economic Problems
But,
sensitive
opinion
to
the
of
the
economic
republic,
I
have
been heartened in the past year to
sense
awakening to economic
an
problems.
learned
that
More
that
mostly
of
Americans
the
world's
economic
visible
have
ills
the
of
up
assumed—particularly
t
and
~
; political
enacted
in
1Q51
origin
and
manifestations
to
so,
like
the
their
For
the
economic
economic
own
warning.
with
the
come
to
ish
or
French markets.
And
corporate
profits,
meas-
by 525 companies representative of the larger manufacturing
last three
months
of 3%
over
J
O frf
previous
Thus it
gain
a
am
and of 2%
in the
showed
the preceding quarter,
iLrv
4-L £ mJI
over the third quarter
year,
seems
that the inflation
hence
floor exists not far below
a
present levels,
if
eco-
The
imminent
ministration
conditions
he
mav
m*.
Ull<i
III
-
7 >•'
1J
While, Weld-6fOU|l
Offers M. WMrals
(Chemical Debentans
.
voarc
there
past 20 years>
-
x
,
the
,
been
—.
or
people when
ments.
the
it
They're
problem
comes
to
afraid
first
0
invest-
to
hand
are,
news
If-you're
in-
an
of us, busy
many
of
of
radio
and
tele¬
need
you
to
be
your
own
forecaster.
you need
You need
nee
„1v
daily
dailv session wun
daily session with a
a
newsnaner-or even
newspaper—or even two or
or
three newspapers.
We are fortunate in living in a
citv that has so many excellent
They can be your
They're not tip sheets or
newspapers.
guide.
.But
you.
you'll
They won't advise
they'll
inform
them.
And
let
if
vou,.
with
th°
information,
you're well
profitable assault on
the ramparts of Wall Street.....
for
armed
a
-
What
All
vVur
and
d
to look for?
news
news.
to vour
relates to you
investment
investment.'
.
to
,
,
the; pinancml
B. Shpr and
burn
F. Winchester
associated with
Middlebrook, Inc. Both
obviously with H. L. Rob-
that
bins & Co., Inc.
funds
buying larger and larger
investing in mutual
to
The
to
Staff
so
person
that he
or
is
bme *° reac^ newspapers and
^ve
st°ck market some serithought,
why he
or
there's
no
reason
she couldn't be his
demand.
tion
own
This time the compensa-
may
from
come
new
3,
lg57
at
on or prior to Dec.
$50 prineipai amount
proc-
for each share of common stock,
products and entire Industherea£ter on or pri0r to Dec. 31,
tries, in this dynamic economy o-jg62 a£ 555 principal amount for
esses,
?UrS',
,
great
"X"
internaas the
,°
•
tional tension will continue
well
factor
in
business
as
elsewhere.
as
each share o£ common stock, and
thereafter
The
Stock
jg
now
as
ever.
Over
the short term, stocks may follow
the British pattern since Churchill's
re-accession to
in Oc-
power
tober, 1951, by declining in
tation o( a reconstructive
psychological.
brake
Such
would be largely
4
,
1954,
Drior
of
_
Objective appraisal of the
,
to
S?
amount
stock.
common
are
redeemable
?+nd including
thereafter to and
including
"at rfS1!?
The
debentures
also
are
re¬
deemable through operation of a
sinking 'fund
beginning
1959 at '100% together
crued interest.
Jan. 1,
with air.
International Minerals & Chem—
related ical Corp. is engaged in the pa*>-
stocjc
press-
ent
price level as
to value ^criteria leads to the con-
duction
and
sale
of
phospbafcfe
there; rock and potash, two of the main
that stocks are selling ex-inflation, ingredients
of
plant
foods, &r
thai
Dividend
~
the
yields
average
Stock
generous,
dividend
955
the
on
.
is
are
the
on
listed
payers
value
New
York
fertilizer
and chemical
products
derived therefrom, also complete
plant foods and^ plant food corn-
Exchange
now being 6%%, ponents an.d amm° acid products.
higher than it was The most important of the latter
12 months
previously.*
1S "Accent,
a pure monosodnim
rruci tot
i, in
glutamate used to enhance food
is
V2%
nnX
the
2.98%
available from " high
grade bonds.* • The ratio of mar-
Mass. —Arthur
Brown is
16
now
with Denton &
Co>>
ket
stock
now
the
on
index
Most
Prescott, Wright
,,
.
st°
price to
ings,
Court street
With
.
.
.
the
,
projected
earn-
Proiected Poors
£arn~
and
Standard
is
only
flavors.
well
:
duces
The
erals,
also
company
sells
including
6
industrial
pro¬
min-
various
types
bentonite.
of
-
With Blair, Rollins Co.
sheets
buttressed
and
bonding clays and
UU1IU" s ^ j
10.3.
balance
company
are
,
(Special
with
to
The
Financial
Chronicle)
•
(Special
to
The
KANSAS,
H.
Cook
with
916
financial
CITY,
has
become
connected
Prescott, Wright, Snider Co.,
Baltimore Avenue.
BOSTON,
Chronicle)
Mo. —Joseph
Based
•
dends
months
Sept. 30 prices and cash divipaid
during
the
previous
12
Source: "Exchange" Magazine,
on
rs.l'SLw
of
High Grade Bonds.
and
Poors
lod.x
r
31
Dec
arld thereafter at 100%, together
with accrued interest in each case,
expec-
expansion and inflation.
on
share
stock market
uncertain
as
or
The debentures
Market
The future of the
on
^^$60 principal
eacb
,
terrifically
she can't spare
are
,
BOSTON,
J.
insurance policies.
a
The debentures
convertible,
completely upset by the appearun]ess previously redeemed, intoof surprisingly large pent-up
common stock
o
Chronicle)
ibe
ance
which
Financial
including
,
'
I, widespread completion of construction of c&post-armament tain
capital assets,
of
boom recession and deflation were
Co--the
&
Denton Adds
a
after World War
expectations
m-
like
Unless
forward to
elusion
chbonici.e)
Mass.—Franklin
Waiter
have become
prefer to deal in secondary
or
Epitomizing. ;.the
welfare,
market reaction
It aH
Wifn Coburn Mlddlebrook
ffinecial
stead
w
,
corporate
.i00k
...
sheets.
green
tackle
and
-
not to get
Worthy men though they
they cannot give you all the
WORCESTER.
.
people
streets or
living, have
rely too heavily on the
,
are
news
during
has
Too
tasks
commentators
developments
reason,
'
,w
advising
crossing
vision.
investments.'
some
9n
Americans
many
relating
and
ads
overweight.
__-
Even
not
„v
careful
proper
are
militarism,
nationalism,
politics
and unique ideologies, are but tail
ous
...
always amazed
if not comprehension,
American has
average
even
,
Involving busy
ser\^tiotfS°Ur^eS
ment.
authori¬
markets
gram.
will
criteria,
considerably
ured
cannot
scinded, however, in the absence
parent
"0£
-
programs, employment insurance,
-Federal old age and survivors' in¬
He
be
growing timidity among younger were
with
-
run a more
with
the subjects.
-
socio-economic problems
aid
lacked
ex-
foreign aid program.
be his task to determine
.It will
the
Plan
^; wags 0f the economic dog.
our
*
/
tative tones,
of the most
perplexing problems in history,
His decisions will'make news. The
news will affect
your ihveStments.
a
Schuman
while
He will
value
are
ovtUook Vfor.'are. price^V100 .1
business can\ ihtereSt frQmj/Jlily;l, 1952.
climate attuned- ^ jproceeds 'from the sale of the:
surance
company^issumg a policy to the free, market. As tb m,debentures' will be added }to thfe
on
the life and health of a -OOrwidespread fear of recession with cash
fijnds of the corporation and
poration, you 11 know whats good;a
run-down .' in
the
armament ^will be
available for general eor^
for that corporation and whats
tempo, it'should be realized that,
,+
bad for it.
p0rate
purposes
of
Com-
trade.
some
such
on
change of Adre-emphasizes
tfeb
importance of selectivity — with
abroad should deteriorate further, attention
to be paid to industries
As
sorely needed compensation and issues affected by such feebe
nomic
as
parts producer; taxes and foreign
confronted with
Based
American stocks
Snyder
and hedge is being thrown in
gratis
certainly be ended for the stock buyer; and that
Sawyer, will
Before closing, I have one word
Payments
Union, the Moscow Conference or
all
to
too
To You Investments
repeat,
«wr
members
re
stay out of the raiil
.
I
many
debt
-
*
-
page44
involves
in
-
-
that
and
funded
no
.
-
And
is
you're
You
company.
.
"X their positfqh will remain- unde- have
every
fined
Jhfficult' r-tov .' a
challenger will be \ well met
"•
iy*j>":)
<•'
'h1--
Continued from
capital
there
and redupe some of the
particu- .' White, Weld & Co. heads -lb
an
insurance
jarly punitive excise taxes, as on investment group which is *£*being asked to
ijqUor. In any event, the capital fcring for public sale today (NWn
risk sbme money, on the life ofa
gains. .holding^period :
Pretend
accuracy, us as to how well or how inadeI have not-men-, quately we manage the
way of ufe
of
-J1 t%*\
-
Committee organizations, as compiled in the
National City Bank
Letter, in the
HPWa
structure.
Cabinet
that it grows and
see
nv
tax
Finance
«atorte.,fa
good
a
The decision rests with
best.
our
preyipuslYK,? gamely ■ th£
which has
Communfet^posjitiQh,',would be a
difficultfjtask ^indeed? vHow long by) recent •
v
-
0VeT' cheaper than equities in the Brit-
excess
can exer¬
a
«
under
some¬
cise.
The
tbat>
A
judgment
an
the
trade
a
nrtcitiifo
'
o
or
the
Chairman-designate Milliken's
lea.der^hiP» there will be sound readiustment in the composition of
f
c+rtinlnvm
vest wisely is at hand
every day,
world in which some
any day, for a nickel.
A woman
group assumes responsi-. has a more
meticulous mind than
bility for that peace. As a mem- a
man, and she can see sometimes
ber of NATO, the United Nations
with far greater
clarity than her
and other
alliances, we, as Ca- husband, the significance of news
nadians, have attempted to make in relation to the stock she holds.
is
peace
one
that
Jinuation of Cold War-ism); but
It sains its knowl-
world at
a
Not
deficit-spending and tax bills
will be materially reduced for another year (assuming the con-
Knowledge
daily
lying philosophy which indeed
makes business possible at all. *
*
*
History reveals that
is one place where
some early action can be
all
Street Operates
e(jge
J
re-examine the under-
we
The tax front
and iudement
econ-
omy
A
has
Wall Street does not
operate on
+1DS
Tt
ooerates
on
knowledge
improve
in
Soss
iXeSe
On
some
—"
>tioned;
.
preferred stock, the common stock
constituting the sole capitalization.
The Tax Front
accuracv
lnner»mS fte earth
tne eartn"
Wall
done
*v'^To look^ritb the future
afactor^which
working
cases
- ——
define; with
.T\
'1
What It Will Do in Finance and Business
rea]lv
women"'matmeek' at least
are
re-
examined and re-valued. While it
is
in
our
immediate and
even
long-run
Tsthe
who
realize,
we
need
^-f"??y:8r0llPd; tt»t -bugtaesg and
production
able to
" T VK
The New Administration
wealth
new
investments
enterprises
with
flow of
steauy
new
5
_
taken and are taking
place,
Changes in international attitudes
influence
fore-Continued irorWDaae
"3?
.
that more Americans know
fighting a war, not necessarily at something about the function -of
this stage with
physical weapons, investments
and the securities
but with
psychological (ideologi- n^fkets. This is particularly true
of
closely the trade conferences that
can
this
faced
are
own
(
n we are to perpetuate the
capitaiisiic system—if we are to main-
uncer-
lifetime.
our
analyst, his
caster.
Keeping in mind the other side
tainty must be understood and tain
of the
picture, we must consider accepted
by us—a marked change into
the
•
*
...
likely that we
blowing hot and eoid
on
by turns.
continues for
war
Mass.
Price has become
—
Charles
G.
associated with
Blair, Rollins & Co., Incorporated,
5q
State
Street.
Mr.
Price
W&S
formerly with Coburn & Mid«ebrook, Inc.
Financial Chronicle
The Commercial and
38
...
13,1952
Thursday, November
(1854)
* INDICATES ADDITIONS
SINCE PREVIOUS ISSUE
Registration
Securities Now in
1
•
Oct. 23
stock.
NEW ISSUE CALENDAR
of common
Proceeds
selling stockholder. Under¬
(letter of notification) 77,000 shares
Price—At par (40 cents per share).
Kindred, the
To Darwin R.
writers—Sutro & Co., Los
Springs, Inc., N. Y.
Oct. 16 (letter of notification) 6,000
(Offering to
November
(Blair
(F.
Oils
Bristol
Ltd.,
(Bids
Inc.
to
for
share
28.
(Bids
(Lee Higginson
shares
5Vs
Quebec
(Offering
to
their
500
Trans World
&
5%% convertible sink¬
(for
(Offering to
(Offering to
about
./r^a^^Miimon
stockholders—■*'<*'
Freres &
-ty'v V'~*' >
Nov.
writer—None.
28,'"
Co:l—---Common
Price
Power Co.
be
Seaboard
600,000 shares of common
stock (par one cent).
Price—50 cents per share. Pro-*
ceeds
For rehabilitation and development
program.
Office —Suite 839. 60 East 42nd St.. New York 17, N. Y.
Underwriter—Gardner & Co., New York.
Air
invited)
New York,
to
be
.^05,000 shares for subscription by employees of
and its subsidiaries and affiliated com¬
26. Price—$31
share. Proceeds—For general corporate purposes.
the
company
panies. The offering will close on Nov.
Underwriter—None.
Duquesne Light Co., Pittsburgh,
3, 1952
be
(Bids
to
be
December
Pacific
invited)
shares by the Philadelphia C04 Proceeds—For
construction^ Underwriters—To be determined Jsy
competitive bidding. Probable bidders: The First Boston
Corp.; Lehman Brothers; Kidder, Peabody & Co.. Merrill
Lynch, Pierce, Fenner & Beane and White, Weld & Co.
(jointly); Kuhn, Loeb & Co. and Smith, Barney & Co.
(jointly); Blyth & Co., Inc.; Carl M. Loeb, Rhoades & Co.and Wertheim & Co. (jointly); Stone & Webster Securi-;
ties Corp.
Bids—Expected to be received up to 11- a.m.
(EST) Nov. 19.
" ■
■
170,000
new
supplied by
to
stockholders—ho
December 10,
Wabash RR._
to
be
1952
Equip. Trust Ctfs.
invited)
December 15,
(Bids
24 at rate
to
be
Debs.
invited)
Bonds & Preferred
11
a.m.
January 27,
EST)
(Bids
11
a.m.
•
•
-
-Bonds & Pfd.
CST)
preferred share for each 12 common shares held.
Rights will expire on Dec. 10. Price—To be supplied by
amendment. Proceeds—For construction program.
Un¬
derwriters—Glore, Forgan & Co. and The First Boston
Corp., both of New York.
Cleveland
99,000 shares of common
share. Proceeds—To buy machinery,
(letter of notification)
stock. Price—$3 per
San Francisco
equipment and inventory and for working capital. Of¬
fice
400 Madison Avenue, New York, N. Y. Under¬
—
_____
Private Wires to all offices
writer—Dan Broder, Los
kfiv
*
xci
1.
TuViJ
(letter of notification)
Products Co., Newark, N. J.
ic Federal Electric
stock (par $1).
(expected to be
between $5 and $6 per share).
Proceeds —To acquire
stock of Powerlite Switchboard Co.
Business—Electric
switchboard and panelboard. Underwriter—H. M. Byl¬
6
filed
shares of common
supplied by amendment
225,000
be
Price—To
111.
(12/3)
Oct. 24 filed $15,000,000 of first mortgage bonds due 1982.
Proceeds—To repay bank loans and for new construction.
•
Florida
Power
Underwriters—To
Peabody
&
Co.
vately.
Corp.
be
supplied by amendment.
Kidder,
Merrill Lynch. Pierce. Fenner &
bond financing which was done pri¬
and
Offering—Expected on or about Dec. 3.
Ocala, Fla. (11 15)
25.500 shares of common
stock (par $10), to be offered for subscription by com¬
mon stockholders about Nov. 15.
Price—$11.75 per share
Florida
to
Telephone Corp.,
(letter of notification)
public and $10.50 to stockholders.
pansion program.
derwriter—None.
Proceeds—For ex¬
Address—Box 1091, Ocala, Fla. Un¬
Shaver & Co., St. Petersburg, Fla.,
will offer unsubscribed shares.
Compressed Products Corp., New York
Oct. 23
Chicago
Peoria, III.
2,000 shares of common
stock (par $50). Price — $60 per share. Proceeds — For
working capital. Office—3500 North Adams St.. Peoria,
111. Underwriter—Paul H. Davis & Co., Chicago. 111.
•
10
Oct. 27
one
Equipment Acceptance Corp.,
Farm
•
of
and 5,600 shares of 5%.
Beane'handled last
1953
Iowa-Illinois Gas & Electric Co
of common
preferred stocik
Price—Common stock at $7,476 per share, and
(no par)
lesby & Co., Inc., Chicago,
1952
January 20, 1953
(Bids
17
preferred stock at par. Proceeds—For new construction,
etc. Office—330 Second St., Elyria, Ohio. Underwriter—
Nov.
underwriting)
England Telephone & Telegraph Co
New
Telephone Co., Elyria, Ohio
(letter of notification) 2,122 shares
Eiyria
(11/26)
1952
4,
Telephone & Telegraph Co.__r—Common
(Offering
(11/26)
Ctfs.
invited)
Ohio Power Co
Philadelphia
(11/19)
Pa.
Sept. JO filed 250,000 shares of commomstock (par $10),
of which 80,000 shares will be offered by company and
Oct.
invited)
Bonds
to
(Bids
Pittsburgh
$5)
420,000 shares for sub¬
scription by common stockholders of record Oct. 21, 1952
at rate of one new share for each 50 shares held, and
-None.
Chicago & St. Louis RR.,_Eq. Trust
•
Boston
of common stock (par
being offered as follows; About
1952
Equip. Trust Ctfs.
Lines RR
December
Nov. 6 filed approximately 1,150,000 shares of convert¬
ible preferred stock (par $25) to be offered for subscrip¬
New York
Co., Midland, Mich.
Dow Chemical
Sept 23 filed 625,000 shares
(par $50).
Debentures
—
be
to
(Bids
property additions. Under¬
tion by common stockholders of record Nov.
(Nev.)
Peak Uranium, Ltd.
April 7 (letter of notification)
stock
1951/i-y,;-''.'
1,
of Baltimore
Temporarily
ic Commonwealth Edison Co.. Chicago, III.
Offering—Expected before Oct. 15.
capital.
„)
Gas, Electric Light & t!:'f? 1
(Bids
share for each five
To
•
Deerpark Packing Co., Port Jervis, N. Y.
»
March 21 (letter of notification) 235,000 shares of com¬
mon stock (par 10 cents).
Price—$1.25 per share.- Pror
ceeds—To repay RFC loan of $41,050 and for working
Oct.
&:'.Gof);<;'
December 2,
Dec. 19. Warrants will
—
>
of common,
stock (par $1). Price—At market (about $6.75 per share).,
Proceeds
To Louis Daitch, Chairman ;of the Board.
Underwriter—Hirsch & Co., New York. No public of¬
28
underwriting)
stockholders—underwritten by
December
Illuminating Co.
28.
.
Crystal Dairies, Inc.
(letter of notification) 3,000 shares
Daitch
Corp.-.-_:;.^t;kWrComnion
(Bids
Proceeds—For
26, 1952
Morgan Stanley,
(11/28)
Oct. 22 filed 557,895 shares of common stock (no par) to
be offered for subscription by common stockholders of
mailed
Common
Florida Power Corp.___
on
*
Kansas
Statistics Organizations,
'
Enquirer, Inc.
filed $2,500,000 of 10-year convertible junior
1, 1962. Price—To be supplied by
amendment1. Proceeds—To pay notes issued to the Ports¬
mouth Steel Corp.
Underwriter—Halsey, Stuart & Co.
one new
Inc., Babson Park, Mass.
per
Debentures
underwriting)
(Offering to stockholders—no
debentures due Aug.
—
Office—2210 Central St.,
working capital.
City, Mo. Underwriter—Business
EST)
a.m.
November
July 25
amendment.
11:30
Cleveland Electric Illuminating
Cincinnati
held; rights to expire
EST)
a.m.
Lazard
Consolidated
be
11
Magma Copper Co
—
shares
Bonds
November
capital. Underwriter—West & Co., Jersey City, N. J.
Offering
stockholders of record Oct. 17;,
rights to expire on Nov, 28. Price—At par (in denomina¬
of $60, $100, $500 and $1,000 each). Proceeds
tions
about
24, 1952
Commonwealth Edison Co
Preferred
(Offering to stockholders—underwritten by
Glore, Forgan & Co. and The First Boston Corp.)
Federal Electric Products Co
Common
(H. M. Byllesby & Co., Inc.)
'•/'' •'
•, : V
Union Bag & Paper
record Nov. 24 at the rate of
_—Common
underwriting)
stockholder—No
to
(Offering
Gas
Electric
Co.)
&
Peoples Gas Light & Coke Co
Co., Inc.
Oct. 3 (letter of notification) 2,393,600 shares of com¬
mon stock
(par one cent). Price—12V2 cents per share.
Proceeds
For acquisition of properties and working
Cleveland
Dillon
1952
Telegraph Co
Pacific Telephone &
(Bids
Inc., Chicago and New York.
postponed.
Preferred
Corp.__
Airlines, Inc
(Bids
Dallas, Texas; Carl M. Loeb, Rhoades & Co., New York;
& McDowell, Chicago, 111. Offering
—Postponed until after Jan. 1, 1953.
Oil
invited)
be
November 25,
and Straus, Blosser
Carver
& Hartnett)
November
notes and for drilling expenses and
Underwriters — Dallas Rupe & Son,
working capital.
,
—
-Common
Gulf States Utilities Co
Certain stockholders have waived
Price—At par. Proceeds—To repay $1,014,-
rights.
20, 1952
(Offering to stockholders—no
expire
28 shares of stock held
prior subscription by
for
Equip. Trust Ctfs.
to
(Eastman,
at rate of one
Inc.)
stockholders—underwritten by
Suburban Propane Gas
standby).
of outstanding
Debentures
and A. E. Ames & Co.,
Moss
(Bids
Underwriter
Valley Investing Co., Inc., Utica, N. Y., for
of bonds for each
14-day
Mo.
(letter of notification) $250,000 of 412% con-,
due Oct. 1, 1962 being offered
18
Sept.
Devil
Northern Pacific Ry
Byrd Oil Corp., Dallas, Tex.
of $100
,
Drug Co., Kansas City,
Crown
EST)
.
preferred
Morfeld,
Under¬
held; rights to
—Bonds
Co
noon
Corp.
Boston
Co.)
&
Missouri Research Laboratories. w
ing fund mortgage bonds due Nov. 1, 1962, to be offered
for subscription
by common stockholders at the rate
a
Blair
(Province of)
First
(The
per
Oct. 22 filed $1,750,000 of 10-year
Preferred
Kidder, Peabody & Co.; and
Corp.;
(Bids
to 10,000 shares.
up
EST)
a.m.
North Pennsylvania RR.
machinery and for working capital.
—Mohawk
11
William
share to stockholders and $5.75
Proceeds—To remodel plant and purchase
public.
new
•
each
Price—$5
Common
November
13
Halsey, Stuart & Co. Inc.; The First Boston Corp.,t
White, Weld & Co., Lazard Freres & Co.,-and Wertheim
& Co. (jointly); Harriman Ripley & Co., Inc. and Alex.^
Brown
Sons (jointly) /
"
ders:
fering planned.
19, 1952
November
ic Brunner Manufacturing Co.
5 (letter of notification) 58,435 3.0/26 shares of
common stock (par $1) to be offered for subscription by
Nov.
Co.)
&
Duquesne Light Co
Nov.
new
Brothers
(Stern
Canada
record Nov.
Underwriters—
bid-,
competitive bidding. Probable
—
Preferred
Thurston Chemical Co
Underwriter—None.
of
EST)
p.m.
Proceeds—To finance ex¬
pansion program and repay bank loans.
Oct.
Equip. Trust Ctfs.
Household Finance Corp
leases and for corporate purposes.
writer—None. To be named by amendment.
stockholders
Bonds
:
EST)
noon
1
V
-
RR.J
Francisco Ry
(Bids
convertible
acquire
common
EST)
noon
(Bids
Sept. 25 filed 1,000,000 shares of common stock (par $1).
Price—Approximately 64.48 cents per share. Proceeds—
To
Mortgage Note
Detroit & Toledo Shore Line
,
.
$16,484,300
denominations of $100 each).
For
1952
November 18,
St. Louis-San
Toronto,
Inc.)
Co.,
&
Co. of
Electric Light & Power
vertible debenture notes
Common
Eberstadt
Boston Terminal Corp
ic Belle-Air Gold Club, Inc.
Oct. 28 (letter of notification) 200,000 shares of common
stock, series No. 1. Price — $1 per share. Proceeds—
For working capital.
Office — 95th St. and Nail Ave.,
Overland Park, Kansas.
Bonds
Water Co
Claybaugh & Co.)
F.
United Gas Corp
Common
(Offer to Electric Bond & Share Co. stockholders)
registration.
from
EST)
Smith-Douglass Co., Inc
(Co-partnership of
Inc. and Marine
Underwriter—None.
withdrawn
Bonds
Royalton
&
Middletown
Proceeds—
For working capital.
Office — Houston, Tex. Under¬
writer—C. K. Pistell & Co., Inc., New York.
The pro¬
posed offering of preferred and common stocks have
been
1952
17,
(Bids noon
Airwavs)
Nov. 3 (letter of notification) 300,000 shares of 5!/2%
non-voting cumulative preferred stock (137,300 shares
offered by Alaska Air Transport, Inc., and 162,700 shares
by Marine Airways). Price—$1 per share. Proceeds—
For new aircraft and equipment.
Address—Box 2808,
Allpark Finance Co.,
Common
stockholders—underwritten by Shaver & Co.)
Long Island Lighting Co
Underwriter—None.
Aug. 28 filed $500,000 of 6% sinking fund
debentures due June 30, 1962. Price—At par.
1952
15,
•
(12/1)
To be determined by
Corp.-_—
Telephone
Florida
Co.)
&
November
^ Alaska Air Transport, Inc., Juneau, Alaska
Sept. 12 (letter of notification) 200,000 shares of 5%%
cumulative preferred stock.
Price—$1 per share. Pro¬
ceeds—For equipment and investment.
Address—Box
Juneau, Alaska.
Debentures
(Allen
writer—d'Avigdor Co., New York.
Alaska Air Transport,
EST)
noon
Garrett Freightlines, Inc
shares of common
stock (par 10 cents). Price—$5 per share. Proceeds
For
developmental expenses and working capital.
Under¬
^Alaska Coastal Airlines
Equip. Trust Ctfs.
(Bids
-
of convertible debentures due
Dec. 18, 1967 to be offered for subscription by common
stockholders of record Dec. 1 at rate of $100 of deben-,
tures for each 30 shares of stock held, Price—At par (in
filed
5
Nov.
14, 1952
November
Baltimore & Ohio RR
Angeles, Calif.
Air
2808, Juneau, Alaska.
Consolidated Gas,
Baltimore
Air America, Inc.
>
REVISED
ITEMS
•
Anfeles, Calif.
Floseal
Corp.,
Seattle,
Wash.
shares of capital
Proceeds — For
Address—c/o The Corpora¬
Sept. 12 (letter of notification) 24,950
stock (par $1). Price — $12 per share.
general corporate purposes.
tion Trust Co., 1004 Second Ave., Seattle 4,
derwriter—None.
Wash. Un¬
Number'5168
Volume 176
Food
Fair
.
The Commercial and Financial Chronicle
.
.
'
i
„
Inc., Philadelphia,
Stores,
Pa.
of
9 filed
stock
market
plan.
purchase
Price—$3
below
the, .average
price for the month in which payment is com¬
Proceeds—For general funds.
Underwriter—
pleted.
None.
Forming Machine Co. of America,
Inc.
1
Oct. 3 (letter of notification) 175 shares of common stock
Industrial
.Israel
.
100,000 shares of common stock (par $1)
to be offered to certain employees pursuant to the terms
Sept.
(1855)
■
1
•tf
Mineral
&
Development Corp.
Oct. 6 filed 30,000 shares of class A stock.
Price—-At par
($100 per share). Proceeds—For industrial and mineral
development of Israel. Underwriter — Israel Securities
Corp., New York.
Mineral
Proceeds—For drilling and completion of wells. Under¬
B. Cantor & Co. and Degaetano Securities
Exploration Corp., Ltd., Toronto Canada
filed 2,000,000 shares of common stock, each
July 29
share
to have attached an "A," "B" and "C"
warrant,
giving the holder the right to buy one additional
each
share
it Kentucky Oil & Gas Corp., N. Y.
Oct. 31 (letter of notification) 1,000,000 shares of com¬
mon
stock (par 3 cents).
Price — 30 cents per share.
39
for
each
two
shares purchased in
two, three, or
$2 and $3 per share, respectively. Price
shares, $1 per share—Canadian.
Pro¬
ceeds—For exploration, development and acquisition of
properties. Underwriter—Brewis & White, Ltd., Toronto,
five years, at $1,
—For 2,000,000
(par $1) being offered for subscription by stockholders of
writers—S.
Canada.
record
Co., both of New York.
plied by amendment.
it Kut-Kwik Tool /Corp., Brunswick, Ga.
Octf31 (letter; of -notification) 10,000 shares of common
stock
(par 1 cents*).,"Price—At market. Proceeds—To
C. A. Veley,4he selling stockholder. Underwriter—CompKwik-Kafe Coffee Processors of America, Inc.
Oct. 30 (letter of notification) 3,000 shares of common
Mississippi Chemical Corp., Yazoo City, Miss.
Sept. 29 filed 2,000,000 shares of common stock (par $5),
of which 849,038 shares have been
subscribed, paid for
and issued, and an additional 107,550 shares have been
subscribed for as of Aug. 28 and will be issued in con¬
nection with expansion of ammonia plant.
The remain¬
ing shares will be offered for sale primarily to farmers
stock.
and
Sept; *23 at rate of
one
share
new
for
15
each
shares held; rights expire Nov. 10.
Price—$200 per snare.
Proceeds—For working capital.
Office—18 Hamilton St„
Bound Brook, N. J.: Underwriter—None.
it General
Nov.
7
Investors Trust, Boston, Mass.
50,000 shares of beneficial interest-in the
filed
Trust.
Proceeds—For
Gulf States
Oct.
23
filed
investment.
Utilities Co.
$10,000,000
Dec. 1. 1982.
(11/24)
first
of
Proceeds—For
Underwriter—None.
new
ton &
Wharton,.Philadelphia, Pa.
*
.
mortgage
bonds
due
construction and to
tain
Price—$100
bank loans. Underwriters — To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Salomon Bros. & Hutzler and Union Securities
pay
Corp. (jointly); Carl M. Loeb, Rhoades & Co., and Lee
Higginson Corp. (jointly); Merrill Lynch, Pierce, Fenner & Beane and
White, Weld & Co. (jointly); Lehman
and
per
share.
Proceeds—To acquire cer¬
assets of
Rudd-Melikian, Inc., of Philadelphia, Pa.,
working capital. Office—Philadelphia, Pa. Un¬
re¬
for
derwriter—None..
•
Long Island Lighting Co.
(11/17)
Underwriter—To
be
determined
by com¬
Brothers: Stone & Webster Securities Corp. Bids—To
petitive bidding. Probable bidders: Halsey, Stuart & Co.
be received up to 11 a.m. (EST) on Nov. 24.
Inc.; W. C. Langley & Co.; Smith, Barney & Co.; Blyth
& Co., Inc., and The First Boston Corp.
(jointly). Bids—
Gyrodyne Co. of America, Inc.
e
To • be ^received up to noon (EST) on Nov. 17 at City
a
Sept. 10
(letter^ of notifi^tiph) 2,000 /shares-. ofxplas^A*/;:43ankl$&rmers Trust Co., 20 Exchange Place, New York,
common stock
(par fcl).-Price—^$5 per share. - Proceeds*
x,
™
/i
^
v
.
A<-TD«rr» C. ,„c N. Y
,
increase forking capital. Underwriter-
12,300 shares of class A
Price—$5 per share; Proceeds
stock (par $1).
York.
-t-For working capital; / Underwriter-^-None, sales-to
Calif.
made through* certain- officers ami directors. *? ■*A < yi>:^Q»#dyf(^etter of ^notification) 1,470 shares of
Sept 18 (letter of notification)'16,972 shares of Class'Price—At the market (about
common
For
—
share). Proceeds—To repay short-term notes and for
construction. Underwriter—None.
Hazel
Park Racing
new
Association, Inc.,
Oct.
28
(letter of notification)
24,107 shares of
common
stock
(par $1). Price—At market (approximately $3.50
share). Proceeds—To Richard A. Connell, the selling
stockholder; Underwriter—White," Nobel &
Co., Grand
Rapids. Mich.
:
per
Hilseweck
Minerals
Corp., Dallas and
j
v
stock
subscription
of 50 shares of
^
'
de-
bentures due Aug. 1, 1972 and 139,920 shares of common
stock (par $1). Price—$960 per $1,000 debenture, plus
/common
common
warrants
stock.
for
Proceeds
corporate purposes. Business—To
the
purchase
For
—
engage in oil
general
and gas
business. Underwriter—None.
'*
•
Household
Finance Corp.
60,000 shares of common stock (no par—
$12 per share) being offered for subscription
by certain employees and executives. Price—$28.50 per
share.
Proceeds—For working capital.
Underwriter—
Oct.
.
r
.
17
or about Dec. 11 (the
number of shares to be offered and the ratio of the offer¬
provide
of
Statement effective Nov. 5.
Corp., Chicago, III. (11/19)
100,000 shares of cumulative preferred stock
(par S100).> Price—To be supplied by amendment. Pro7 ceeds—To repay bank loans and for
working capital.
? Underwriters—Lee
Higginson Corp. and Kidder, Peabody
& Co., both of New
York, and William Blair & Co.,
Chicago. 111.
Oct. 30 filed
.
additional funds to
it Hub Loan Co., Jersey City, N. J.
7 ,,
Nov. 7 (letter of notification)
25,000 shares of cumula¬
tive preferred stock (par
$2) and 250,000 shares of com-;
,
stock
mon
and
for
(par 25 cents).
common
$1
subsidiary, in connection with the loan
authorized to it by the RFC in the amount of
$94,000,000.
Undterwriter—Lazard Freres & Co., New York.
★ Marine Airways, Inc., Juneau, Alaska
Sept. 12 (letter of notification) 200,000 shares of 5V2%
preferred stock. Price—$1 per share. Pro¬
Proceeds
For
working
Office—183 Newark Avenue, Jersey City, N. J.
Idaho
6
—
200,000 shares of
stock
common
purchase
testament
of
Francisco.
Calif.
Errol" Bechtold,
deceased).
Office—San
Underwriter—None.
Corp., North Kansas City, Mo.
27 filed $500,000 of 5%
debentures, series A, due
$50,000 annually from Nov. 1, 1953 to Nov. 1, 1962, inclu¬
sive.
Price—At 100% of principal amount.
Proceeds—
For working capital.
Underwriter—The First Trust Co.
(Neb.).
McCarthy
Corp.,* 17.650
shares;
shares,, JPrice—At
par
($1
general corporate purposes.
Beverly
Hills,
and
per
to
public,
share),*.
Office—119
Calif.
(S100
crude
oil
oil
and
Israel
per
for
oil
corporate purposes. •; Underwriter—B. V. Christie & Co.,
Houston, Tex.
Dealer Relations Representative—George
A.
Searight, 50 Broadway, New York, N. Y.
WHitehall 3-2181.
McGraw
Telephone
Offering—Date indefinite.
(F. H.)
Co., Hartford, Conn.
(letter of notification) 5,000 shares of common
(par $2) and warrants to purchase 20,000 shares
Sept. 10
stock
common
of
one
shares.
S.
stock
share
at $6 per share
and
warrants
Price—$19.87xk
Strike, the
per
to
Montana Basin Oil Corp. (N. Y.)
Sept. 19 (letter of notification) 300,000 shares of
stock
For
Oct.
purchase four additional
share.
Proceeds—To Clifford
Underwriter—Gran-
6
(letter of notification) 25,000 shares of common
stock (par $2). Price—$7 per share. Proceeds—To Clif¬
ford S. Strike, the selling stockholder.
Underwriter—
Mex-American Minerals
Nov.
stock
10
3
filed
Corp., Granite City, III.
113,000 shares of 6%
Price—At
share). Proceeds—To finance purchase of
enterprises and to purchase crude
products for resale in Israel. Underwriter—
Securities Corp., New York.
"
Price—$1
exploration and development
Securities
per
common
Proceeds—
share.
Underwrite*
expenses.
Corp., New York.
Multicrafters, Inc., Lincolnwood, ill.
vertible
(letter of notification) 99,900 Shares Of 6% con¬
prior preference stock/ Price—At par ($3 pet
Proceeds
For
—
new
machinery and
equipment.
—Steele
Touhy Ave., Lincolnwood, 111. Underwriter
Co., New York.
&
Multiple Dome Oil Co., Salt Lake City, Utah
>Sept. 8 (letter of notification) 150,000 shares of common
, stock.
Price—At market (approximately 10 cents per
share). Proceeds—To George W. Snyder, President. Un¬
derwriter—Greenfield & Co., Inc., New York.
Nash
Finch Co., Minneapolis, Minn.
(letter of notification) 1,000 shares of common
stock (par $10).
Price—At market (estimated at from
$17 to $20 per share). Proceeds—To Willis King Nash,
the selling stockholder. Underwriter—J. M. Dain & Co.,
Oct.
21
Minneapolis, Minn.
•
Credit
National
22
Oct.
(letter
stock
common
stock
of
Card, Inc., Portland, Ore.
notification) 150 shares of class
A
(no par), 150 shares of class B common
(no par) and 150 shares of class C preferred stock
(par $1,000)
being offered in units of
one
share of each
class.
Price—$1,001 per unit.
Proceeds—For working
Office—Times Bldg., Portland 4, Ore. Under¬
writer—None.
Offering — Being made to residents of
Oregon only.
capital.
it Nesco, Inc., Chicago, III.
4 (letter of notification) 12,050 shares of common
(par $5) to be issued upon exercise of stock pur¬
chase
options granted to certain employees.
Price—
$8.10 per share. Proceeds—For working capital. Under¬
Nov.
stock
writer—None.
it New England Telephone & Telegraph Co. (12/15)
7 filed $20,000,000 of 25-year debentures due Dec.
Nov.
15,
Proceeds—To repay
1977.
advances
received from
Telephone & Telegraph Co., the parent. Un¬
be determined by competitive bidding.
bidders:
Halsey, Stuart & Co. Inc.; Morgan
Official
Films, Inc., Richfield, N. J.
(letter of notification) 15,000 shares of common
stock (par 10 cents). Price—At market (approximately
$1.25 to $1.75 per share). Proceeds—To Mrs. Dorothy C.
Margolis. Underwriter — None, but Hettleman & Co.,
New York,
will act as broker.
No general offering
Oct. 21
planned.
be
to
class of stock.
offered
Price—$6
in
units
per
common
of
unit.
one
stock
share
of
sale
of
Fluorspar.
Underwriter
To
be
each
supplied
by
10
American
Oil
&
Gas
Co.,
(letter of notification)
Chicago, III.
80,000 shares of
(par 10 cents); Price—At market (at
amount
not to
an
sinking
5%
aggregate
Proceeds—For develop¬
Underwriter — Greenfield &
tal
(11/17)
&
additions
Middletown,
and
Pa.
improvements.
Proceeds—For capi¬
Street,
Office—Mill
Underwriter—Blair
Co., Harrisburg, Pa.
$1.25
sinking fund
series
and
100% of principal
Proceeds—For working capital. Underwriters—
Co., Inc.
Telephone & Telegraph Co. (12/4)
703,375 shares of common stock to be of¬
stockholders at rate of one new
share for each nine preferred or common shares held on
•
Pacific
24
Oct.
F; Claybaugh
filed
fered for subscription by
90%
3;
rights to expire on Dec. 30. Subscription war¬
American Telephone &
will be mailed on Dec. 4.
Co., the parent, presently owns more than
Price—At par ($100 per
Proceeds—To repay advances and bank loans
new
construction.
Underwriter—None.
&
of the outstanding shares.
share).
and
for
Pacific
Telephone & Telegraph Co. (11/25)
of 27-year debentures due Nov.
24 filed $35,000,000
For repayment of advances and
construction. Underwriters—To
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Lehman Brothers and Union
Securities Corp. (jointly); White, Weld & Co.; Morgan
15,
7 (letter of notification) $65,000 of 5% refunding
improvement^ mortgage bonds due Jan. 1, 1965.
Price—At par and accrued interest.
series,
debentures will be offered publicly at
•
Co., Inc., New York.
and
fund
$1.25 series preferred stock. The offer will be made on
Nov. 13 and will expire on Nov. 20. Price—Unexchanged
Telegraph
common
exceed $24,000).
leases.
se¬
exchange for a like amount of par value of outstanding
rants
Mid
,
ries, due 1973, to be issued in multiples of $1,000 each in
Dec.
amendment.
Oct.
Corp.
filed $10,000,000 of capital debentures, 5%%
(par
Proceeds—For work¬
—
Finance
Pacific
Oct. 23
Blyth & Co., Inc., Hornblower & Weeks and Harris, Hall
cumulative preferred
(par $5) and 113,000 shares of
cents)
Nov.
stock.
(par 10 cents).
Oct. 28
to be offered in units
selling stockholder.
stock
Israeli
&
Oct
common
preferred shares held.
Probable
it Middletown & Rovalton Water Co.
Ispetrol Corp., New York
29 filed 49,500 shares of
three
Proceeds—For working capital.
cust
Stanley & Co.; Gloer, Forgan & Co.; Kuhn, Loeb & Co.
Bids—Tentatively expected to be received on Dec. 15.
10,000,000 snares of common stock (par 25
Price—$2 per share. Proceeds — For drilling of
exploratory wells, acquisition of leases and for general
Beverly Hills. Calif.
Oct.
new
June 12 filed
ment of oil and gas
&
Proceeds —For
cents).
South
Underwriter—Douglass
par.
Price—$1.25 per
Office—2109 Lo¬
Street, St. Louis, Mo. Underwriter—Morfeld, Moss
Hartnett, St. Louis, Mo. for 20,000 shares.
share.
American
275,000
Proceeds—For
Beverly
At
derwriters—To
(Glenn), Inc.
ing capital. Business—Purchase, processing, refining and
International Glass Corp., Beverly Hills, Calif.
Sept. 22 (letter of notification) 299,635 shares of com¬
mon
stock, to be issued as follows: To William Hoeppner, 6.985 shares; to stockholders of Soft-Flex Glass
par
aircraft
Underwriter
Marsh Steel
of Lincoln
each
for
amount.
market
(on the San Francisco Stock Ex^.•<
change). Proceeds—To selling stockholder (Gwendolyn
MacBoyle Betchtold, as executrix of the last will and
Co..
and
Oct.
(par $1).
Price—At
Drive.
investment
Address—Box 2808, Juneau, Alaska.
—None.
Granbery, Marache & Co., New York.
Maryland Mines Corp.
filed
Fabrics
increase
parts.
Price—For preferred at par-A
befy, Marache & Co., New York.
share.
per
capital.
Underwriter—None.
June
expenses, will be used to
San Manuel Copper Corp.,
wholly-owned
of
,
$6,000,000, .after
filed
7 7 Household "Finance
'
on
ing may be changed prior to the effective date of the
registration statement). Price—To be supplied by amend¬
ment.
Proceeds—Sufficient to provide company with a
stated value
None.
share for each 2V4 shares
one new
held; rights to expire
ceeds— To
filed $1,500,000 of 20-year non-rnegotiable
18
of stock
cumulative
Oklahoma City
Sept.
•,
about Nov. 26 at rate of
minimum
Detroit, Mich.
;
common
,
Oct. 3 in the ratio of one new share for each 10 shares
held. Rights will expire Nov. 26. Price—At
par ($20 per
!
—
Office—3517
(par $1).
Price—$5 per share. JPr©-* .share.). Proceeds—To Mrs. Helen R. Davis,
stockholder.
Underwriter— Dean
Witter
& Co., San
working capital. Underwriter — Jackson &
Francisco, Calif_
Co., Boston, Mass.
T '•
it Magma Copper Co. (11/26)
Hawaiian Electric Co., Ltd.,
Honolulu, T. H.
Nov. 7 filed 281,018 shares of common stock (par
$10)
Sept. 25 filed 50,000 shares of common stock being of¬
to be offered' for
subscription by stockholders on or
fered for-subscription by common stockholders of record
ceeds
*
Price
Underwriter—None.
Research Laboratories, Inc. (11/20)
(letter of notification) 25,000 shares of common
stock (par 10 cents) to be offered for subscription by
preferred stockholders at rate of two shares of common
share.
$10 per
the selling
stock
.common
groups.
Missouri
-
S>".
of'notification)
•
—Aetna
ffl'rsu^Sl^ea;%',aynienr
Sept. 16 (letter
farm
construction.
Oct. 29
OcLJLh filed $20,000,000 of first mortgage bonds, series
E,
due 1980.
Proceeds—To repay bank loans and for new
construction.
Names of United States underwriters to be Sup¬
1979.
Proceeds
—
bank loans and for new
Continued
on
page
40
40
The Commercial and Financial
Chronicle
(1856)
Continued jrom page
...
Thursday, November 13,1952
of stock are to be offered
Underwriter—None, but Ellis, Holyoke &
in units qf $50 pf debentures
Co., Lincoln, Neb., will act as broker. .
.
/ and 20 shares of stock; Price—$100 per unit. Proceeds—
Seacrest Productions, Inc., Newport, R. 1.
)
(To increase capacity' oL plfinjarid for wqrkipg. capital
Sept. 8 (letter of notification) 5,000 shares of non-voting
Underwriter—Weber-Millican Co.* New York. /State¬
common stock, series B (no par).
ment has been
Price—$10 per share.
withdrawn.^ [
v
,
Proceeds—To acquire real estate and buildings, convert
Sweet Grass Oils,
Ltd., Toronto, Canada —
1 .
sound stages, install recording equipment and cameras,
July 29 filed 375,000 shares of common stock (no par).
and for othfer corporate purposes. Office—73 Bliss Road,
Price—To be related to quotation on the Toronto Stock
Newport, R. I. Underwriter — Kidder, Peabody & Co.,
Exchange at time of offering. Proceeds — For working
Providence, R. I.
capital. Underwriter—F. W. MacDonald & Co., Inc., New
Seiberling Rubber Co.
York.
Offering—Probaby some time in October.
/
Oct. 1 filed $3,750,000 convertible sinking fund deben¬
Telecomputing Corp., Burbank, Calif.
tures due Oct. 1, 1967. Price—To be supplied by amend¬
"
Oct. 28 (letter of notification)
ment. Proceeds—To repay $1,200,000 loan and for work¬
1,000 snares of capital
stock
(par $1). Price — At market (approximately,
ing capital. Underwriter—Blair, Rollins & Co., Inc., New
$28.87V2 per share). Proceeds—To Ward W. Beman, the
York.
Offering—Postponed indefinitely.
selling stockholder. Underwriter—Hill Richards & Co.,
Sheller
Manufacturing Corp.,
Portland, Ind.
Los Angeles, Calif.
'
.»
'
Oct. 6 (letter of notification) 5,000 shares of common
Texas General Production Co.
stock (par $1). Price—At market (approximately $15 per
,1* *
June 4 filed 2,500,000 shares of common stock
share). Proceeds — To Ralph P. Chempney, the selling
(par 50
Fremont, Neb.
39
,
'
Stanley & Co- Bids—to be received up to 11:30 a. m.
<EST) on Nov; 25 at Room 2315, 195 .Eroadway, New
York, N. Y:
:/ .J/'."
;
' ,/
/ '/
,
'
Pacific Western Off Corp.
Aug. 5 filed 100,000 shares of
'v/"/.
.
(par $4)..
stock
common
Price—At the market. Proceeds—To J. Paul Getty, Presi¬
dent,
L nderw riter — None, sales to be handled
brokers on the New York Stock Exchange.
by
!/ Paradise Valley Oil Co., Reno, Nev.
Aug. 20 filed 3,000,000 shares of capital stock. Price—
At par (10 cents per share). Proceeds—To drill six wells
on subleased land and for other corporate purposes. Un¬
derwriter—None, with sales to be made on a commission
basis (selling commission is two cents per share).
Of¬
fice—c/o Nevada Agency & Trust Co., Inc., Cheney Bldg..
139 N. Virginia St., Reno, Nev.
Paul
Oct. 31
due
Valve
Corp.,
•
N. J.
East Orange,
(letter of notification) $50,000 of 5% debentures
Oct.
stockholder.
stock
1956., and 50,000 shares of common
30,
of
stock
for
about
or
Nov.
Proceeds—For
25.
new
Price—At
($100
par
> Sinclair Oil Corp.
Nov. 10 filed 298,735 shares of
•
of
stock
Pittsburgh, Pa.
50,000 shares of common
(par one cent), and 50,000 shares of common stock
(par $1) being offered for subscription by holders of
5% preferred stock of Treesdale Laboratories & Textile
Quebec
(Province
'
\
S:
of)' (11/19)
-
-
*
.
.
.
'
-
pay
provement
of
$23,000,000
.
roads.
Treasury bills and for
Underwriters—'The
First
Oct. 29
Co., Bridgeport, Conn.
(letter of notification) $300*000 of 10-year 5%
debentures to be offered in exchange for 4-%% cumula¬
3
derwriter—Warren W. York
$50)
on
a par
-
for
outstanding). Un¬
& Co., Inc., Allentown, Pa.
Missouri, Inc., St. Louis, Mo.
Safeway Stores, Inc.
Sept. 12 filed 1,900 shares of 4% cumulative preferred
stcok (par $100) and 18,000 shares of common
stock (par
$5) to be issued to James A. Dick Investment Co.
(for¬
merly The James A. Dick Co.) in exchange for inven¬
tories, fixtures, operating supplies, good will and other
-assets of Dick. It is
anticipated that the Dick Company
will sell
all
or
time to time
on
substantial part of
the New York Stock
a
these shares
Exchange.
for
share.
23
from
•will
offer
New
York
market.
>
•"
filed
ceeds—To
Curb
Exchange
Underwriter—None.
or
in
the
the other
367,649 shares, to be sold from time
the New York
Curb
Exchange.
to time
on
Price—At market
(ap¬
proximately $2 per share). Proceeds—To certain
selling
stockholders. Business—Cigarette and
cigar store chain.
Underwriter—None.
.
'
t
.
,.vj.
(D. A.), Inc., New York
Sept. 26 filed 717,149 shares of common stock
(par $1),
in two
blocks, one in the amount of 349,500 shares and
'4'
1
held
Proceeds—For
(with
on
one
new
„
shares
held.
equity capital to take
Price—$100
per
care
in¬
business
Office—4101 Ravenswood
Avenue,
Underwriter—None.
Suburban Propane Gas Corp.
(11/20)
24 filed 70,000 shares of cumulative
Oct.
one
new
-
the offering to start Nov.
share for each-six
shares
:./ ■/
!V:;'v/:vV
convertible
preferred stock
(par $50 — convertible before Dec. 1,
1962). Price—To be supplied by amendment. Proceeds—
For working capital for development and
expansion of
company's business. Business—Distribution and sale of
Underwriter—Eastman, Dillion & Co., New York.
17:
>
Price—$22.50
per
share..
Electric Bond &
3,165,781
owns.
cents)
shares
Share Go,,which pres¬
(27.01%), of ^outstanding
Underwriter—None.
.//•
/V
'
•
•
to
be offered
in units of one preferred and
Price—$5 per unit.
Proceeds—For
production of television shows, etc., and for general
corporate purposes.
Office—c/o H/ E. Hangauer,. 452
two
common
Fifth
shares.
Avenue, New York, N. Y.
Underwriter—None.
—Real Property Investments Inc., 233 So.
,
■
.
* Utilities Building Corn.,, Beverly Hills, Calif.
/
Oct. 24 (letter of notification).,2,200 shares of common
stock (no par).
Price—$100 per share.
Proceeds—To
purchase building and for working capital. Underwriter
Beverly Drive,
Beverly Hills, Calif.
Victoria
of increased
J
.
its stockholders on the basis ©f one share of United
Gas stock for each 10 shares of Bond- and Share stock
held on Nov. 10; with rights to expire Cec;. 3> Subscrip¬
tion warrants are expected to be thailed Nov.;
14, with
10
share
and increased costs.
Chicago 13, 111.
.
; if Unitelko, Inc., New York
\
•'/:• •%■-.///
Oct. 31 (letter of notification) 40,000 shares of
preferred
; stock (par $1) and 80,000 shares of common stock
(par
oversubscription
Nov. 29. Price—$2.25 per
Proceeds—To
of
Co., New York./.
ently
an
share.
:
United Gas
Chicago, III.
crease
rate
Proceeds—To
expansion
Streeter-Amet Co.,
28 at
United Gas stock.
Aug. 27 (letter of notification) 2,367 shares of common
stock (par $50) to be offered for
subscription by common
stockholders at rate of one new share for each four
over-the-counter
Schulte
,
'
Stout Oil Co., Denver, Colo.
Oct. 23,,(letter of
notification) 1,000,000 shares of com¬
mon stock (par five
cents). Price—Nine cents per share
Proceeds—To acquire oil and gas leases. Office—1729
Stout St., Denver, Colo. Underwriter—Dansker
Brothers
& Co., Inc., New York. ,'•*
'
Under*
50,000 shares of common stock (par $1—
Price—To be supplied by amendment. Pro¬
Ken Kelman, the
selling stockholder, who
the shares from time to time either on
the
shares
.
to
.
of subsidiary. Office—
Chippewa St., St. Louis, Mo. Underwriter—None.
4294
Sapphire Petroleums Ltd., Toronto, Canada
Oct.
9%
privilege),; rights vto expire
writer—None.
Canadian).
each
be
Corp., Shreveport, La;: ,(11/17):/ 'y'-.;
Oct. 15 filed 525,036 shares of common stock
(par $10) to
be offered for subscription by Electric Bond & Share Co.
(letter of notification) 48,000 shares of common
(par 25 cents) being offered for subscription by
stock
•
•
Oct. 23
stockholders of record Oct. 27 at rate of
Dec.- 5. "Prrce—To
t
$5,000,000.
&
eommqn
Proceeds—For investment. Underwriter—None.
Steak 'n Shake of
on
>
seven *
Rights will expire on Dec. 15* Price—To be sup¬
plied by amendment. Proceeds — For working capital-,
and expansion program.
Underwriters—Morgan Stanley
Stat©
holders.
Proceeds—To Bernard Goodwin, the
selling
stockholder.
Underwriter—Gearhart & Otis, Inc., New
York.
held; rights to expire
.
held.
Street Investment Corp.
Oct. 24 filed 180,556 shares of capital stock (no
par) to
be' offered for subscription by stockholders of record
/
share).
>*//•
suplied by amendment.^ Proceeds—For working capital.Hughes TobL Co. * (which- holds
75% of outstanding Trans World stoek) , will-• purchase
any unsubscribed shares, so that the net proceeds will be/
Nov.
Nov. 5> 1952, at rate of one new share for each 10 shares
Price—At net asset value in effect when properly
executed subscription warrants are received from stock¬
Soundcraft Corp., M. Y.
Oct. 3 (letter of
notification) 10,245 shares of common
stock (par five cents).
Price—At market (about $2.62^
(IX/20i)'c//'.;v.^/./-/
Oct. 31 filed 381,916 shares of common stock*
(par $5) to
be offered for subscription by common stockholders of
at least
held.
Reeves
per
i.
Inc./
if Union Bag & Paper Corp., New York ;(11/28). j.'
Nov. 7 filed 253.008 shares of eapital stock (par
$20) to
be offered for subscription -by stockholders" of record
acquisition of properties. Underwriter—Scott, Khoury &
Conine., New York.George A. Searight (Tel. WHitehall
3-2181) is dealer relations representative. ], ,
,
Corp. and A. E. Ames & Co.. Inc., both of New York.,
tive convertible preferred stock
(par
par basis (6.000 preferred shares are
J
,
(letter of notification) 284,999 shares of
Trans World Airlines,
Underwriter— None.
stock (par 10 cents). Price—$1 per share. Proceeds—For
Boston
★ Read (D. M.)
Nov.
pre¬
Office—1625 West Morehead St., Charlotte,
Underwriter—None.
"
Standard Tungsten Corp.
.
^
•
shares
Rossmann & Co., both of New York.
im¬
Corp., Ltd., Toronto, Canada
; /
Aug. 21 filed 300,000 shares of common stock (par $1) to
and then to the; general.
be offered first to stockholders
record Nov./19 at rate of one nevir share*for each
.
Oct. 31 filed $25,000,000 (U. S. funds), of debentures due
Dec. 1, 1972. Price—To be
supplied by amendment. Pro-,
eeeds—To
■
★ Standard Sulphur Co., New York
f
..v.
Nov. 7 filed 1,250,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For construction
of plant and purchase of new
equipment and for working
capital. Underwriters—Gearhart & Otis, Inc., and F. L.
Underwriter^—
;
-
•
."//,•
operat¬
on
City/
Torhio Oil
.
•
ing capital.
N. C.
Nov. 24. Price—At par. Proceeds—To
repay loan and for
v;;_*
(par $5), and 2,500 shares of 6% -cumulative
by amendment/Proceeds
capitaL Business—Manufacture-and-distribution-of
public. Price — 60 cents per share. Proceeds—For ex¬
ploration -of oil- and gas properties,and" to .drill a itest
.well. Underwriter—None, but off earing to public wilL b©
handled through brokers.
u
-/t
r » /t
ferred stock (par
$50).-,Price—$12 per share for common
and $50 per share for preferred. Proceeds—For
stock
capital.
-
Southern Radio Corp., Charlotte, N. C.
Oct. 20 (letter of notification) 10,500 shares of common
Oct. 24 (letter of notification)
expenses and working
Graham & Co., Pittsburgh, Pa.
*
(par $5),
/'v'"
i ■'
ing
./"•
Business—Producer and distributor of fertilizer materials
and mixed fertilizers. Underwriter—F, Eberstadt & Co.,
Underwriter—Dallas Rupe & Son, Dallas, Texas.
drilling
'•
wfyich 100,000 shares
•Inc.,.New York,
Price—To be supplied
fertilizers. .Underwriter—Stern Bros.
.&>Co.rKarrsas
are to be offered by the company
270,000 shares by certain selling stockholders. Price
—To be supplied by- amendment. Proceeds—To install
phosphoric acid facilities and other plant improvements.
;
Processing Co., of record Nov. 1; the offer to expire
(11/17-18) *
.
Mo.
and
- Powers
Manufacturing Co., Longview, Tex, V.
Sept. 25 filed 250,000 shares of common stock (par $1).
Price —$2 per share.* Proceeds— For
machinery and
equipment and new construction; Business—Production
of heavy duty power transmission chain,
prockets, gears,
Gas Co.,
;
-
Smith-Douglass Co., Inc.
Oct. 14 filed 370,000 shares of common stock
{
&
J•
,
/—From sale of preferred, for plant additions/and work-
Underwriter—
~
,
stock (par $25) and 84,130 shares of common stock
(par
$5), the latter to be sold for the-account of selling stock¬
holders.
(no par)
other employees of
ceeds—For general corporate purposes.
None.■-•
.
Thurston Chemical Co., Joplin, Mo. (11/18)
\
Oct. 24 filed 40,000 shares of 5V2% cumulative
preferred
.
company and its subsidiaries tinder the Stock Pur¬
chase and Option Plan.
Price—$39.50 per share. Pro¬
stock, series A (no par)., Price—$24 per-share. Proceeds
—For working capital. .Office—227 Twin City Federal
Building, Minneapolis, Minn. Underwriter—M. H. Bishop
& Co.,
Minneapolis, Minn. .
* «'• *; ///
Preferred Oil
—Weber-Millican Co. and R. V. Klein Co., both of New
Underwriter-
stock
Corp., Houston, Tex.
/York.
'
common
be with¬
acquisition and exploration and for completion of well.
Office—1403 Melrose Bldg., Houston, Tex. Underwriters
the
Budget Loans," fnc., Minneapolis, Minn.
Sept. 22 (letter of notification) 4,000 shares of preferred
4
Co., New
.
"to be offered to certain officers and
Phoenix
etc.
Securities
S. Underwood and Emily C. Underwood.
■'/"./ ;'>*
'
■
Northeastern
Ames, Emerich & Co., Chicago, 111.
—
..
—
Signode Steel Straoping Co., Chicago, III.
Oct. 9
(letter of notification) 2,044 shares of com¬
mon stock
(par $1). Price—At market (about $17 per
share). Proceeds—To John W. Leslie, trustee of Walter
Circle Corp.,
?v-!vV'v././•
Texas Northern Oil
may
Oct. 27 (letter of notification) 300,000 shares of common
stock (par 10 cents). Price—$1
per share. Proceeds—For
Business—Quartzite min¬
York.
construction. Underwriter—None.
^
Secretary-Treasurer.
Underwriter
ing.
Hagerstown, Ind.
♦
Sept. 17 (letter of notification) 1,000 shares of capital
stock (par $2.50). Price—At the market ^approximately
$14 per share). Proceeds—TO Herman Teeter, the selling
stockholder.
Underwriter
A. G. Becker & Co, Inc.,
Chicago, 111.
. ' : >•
'
by amendment. -Of¬
drawn.
Schack,
1
Perfect
Underwriter—To be named
fering—Tentatively postponed. Statement
opment, and mining expenses, and to reimburse Maurice
share).
per
Tex.
Signal Mines, Ltd., Toronto, Canada
14 filed 300,000 shares of common stock. Price—
par ($1 per share). Proceeds—For exploration, devel¬
At
2,391
Peoples Gas Light & Coke Co. (11/25)
Oct. 24 filed 186,715 shares of capital stock to be offered
for subscription by stockholders of record Nov. 19 at rate
of one new share for each five shares held; rights to
expire on Dec. 15. Subscription warrants will be mailed
on
i
,
,
July
shares of common stock held.
Price—$1,100 per unit. Proceeds—For working capital.
Offices—Of corporation, 545 North Arlington Ave., East
Orange, N. J.; of Henry W. Proffitt, Secretary, 72 Wall
St., New York 5, N. Y. Underwriter—None.
each
cents). Price—To be supplied by amendment. Proceeds—
To buy property for oil
prospecting. > Office—Houston,
Underwriter—Straus, Blosser & McDowell,
Chicago, 111.
10 cents), to be offered first to common stock¬
holders in units of one $1,000 debenture and 1,000 shares
(par
.
.
Copper Zinc Mines Ltd.,
Montreal, Canada
Oct. 22 filed
<:/
1,050,000 shares of
common
stock/ Price—,*
be taken down in 10 blocks ranging from 50,000 to
200,000 shares at prices ranging from 15 cents to $1 per
To
share.
Estimated
public offering prices range from 35
share. Proceeds—For mining opera¬
tions.
Underwriter—Jack Rogers, of Montreal,
Canada,
who is the "optionee" of the stock to be taken down.
to
cents
Video
Oct.
3
stock
—For
$1.50
per
Products
Corp., Red Bank, N. J.
(letter of notification)
75,000 shares of
common
(par 50 cents). Price—$2.50 per share.
Proceeds
working capital.
Office—42 West Street, Red
Bank, N. J.
Underwriter—None.
gases.
'
'*
'
l
?c,h"^s'r's of
(George) Sons,
(letter
Inc., Fremont, Neb.
notification) 989 shares
e
Pre^*red stock. Price—At
Proceeds—For working capital.
par
,of 6%
($100
per
cumu-
share).
Office—108 East 6th St.,
•
v
Sunshine
Packing Corp* of Pennsylvania* •'
July 3 filed $1,000,000 of 6% convertible debentures due
1972 (subordinate) and 450,000 shares of common stock
(par 50 cents) of which the debentures and 400,000 shares
West Coast
Pipe Line Co., Dallas,. Texas ....
(letter of notification) 12,500 shares of capital
stock (par $10). Price—For 10,000 shares at par and for.
remaining 2,500 shares $12.50 per share (latter to be sold
Sept. 29
for account of 23
stockholders):
Proceeds—For working.
Volume 176
Number 5163
.
.
.
The Commercial and Financial
Chronicle
(1857)
capital.
Underwriters
White, Weld & Co.
—
Securities Corp., both of New York.
and Union
Central
if Western Light & Telephone Co., Inc.
Nov. 7 filed 65,168 shares of common stock
(par $10)
to be offered for subscription
by common stockholders
at rate of
repay bank loans and for hew construction.
Underwriter—Harris, Hall & Co. (Inc.), Chicago, 111.
Magjtttne, Inc., Beverly Hilts, Calif.
Sept. It filed 6,600 shares of 5% cumulative preferred
stock (par $100) and 6,600 shares of common
stock (per
$10) to be offered in units of one share of preferred and
share of common stock.
Price—$110
^
drill
and
equip
Hughes & Co., Denver, Colo.
if Zenda Gold Mining Co., Seattle, Wash.- ;; z
.notification) 150,000 shares .of common
stock.'Price—At par (10 cents per share). Proceeds—To
20th
Exploration Inc. ; Office — 635 Securities Bldg.,
Seattle 1, Wash. Underwriter
Joseph U. Montalbah-
Mhrch
was
announced that it is
•'V..'••
(jointly); Equit¬
Lehman Brothers and
Bear,
(jointly); Harriman Ripley & Co., Inc.
Proceeds—For new instruction,
j
Laclede Gas Co.
;■
-;//,'?•
V': v!Jv
•
va
additional financing Will
1953 to meet the major part of the" in¬
crease in the estimated cost of
the expansion program'.
The First Boston
Corp., and A. E, Ames &
Sept. 17 it
to
Dec.
American Ttmsi
Nov.
12
Co., San Francisco, Calif.
/(par $20)
Co.;
additional Shares of
stockholders of
share for each three shares
to
record Nov. 7 at rate Of ohe
^
■
•
Arkansas
(
Fuel
Corp.. (to be
Arkansas Natural
Oct. 3 it
Gas
<
-;>»/'
■*
«
-
to
successor
Corp.)
;
.
announced that subject to approval of reor¬
ganization plan Of Arkansas Natural Gas Corp.
by U. S.
District Court of Delaware,, the iiew
was
to be
known as Arkansas Fuel Oil
Corp., proposes to issue
and sell $23,009,000 of sinking fund debentures
due 1972.
Proceeds—To retire $21,877,760 of 6%
preferred stock
(par $10), at $10.60 per share, with preferred stockhold¬
ers, other than Cities Service Co., to be offered the de¬
L
in
exchange^ plus a cash adjustment. Under¬
be determined by competitive bidding.
Halsey, Stuart & Co. Inc.; The First
Boston Corp. and Lazard Freres & Co.
(jointly); Smith,
writers—To
Probable bidders:
Barney & Co.
Arkansas
Louisiana Gas Co.
Dec. 6, 1951 it
reported company may issue and sell
$35,000,000 of first mortgage bonds. Underwriters—May
be determined by competitive
bidding: Probable bid¬
was
Power
new
•
total
issue of $10,005,000 series FF
St.,
' Boston Terminal Corp.-;;(11/18)
Nov.
3 it
was
/
*
to
gas
to
noon- (EST)
on
$3,500,000 mortgage note to be; repayable, in
monthly
installments of principal'and interest of
$21,000 each.
Commencing 30 days- after the date of consummation of
the:plan ofreorganization of Boston Terminal Co.
/-
Central
Hudson Gas & Electric
Corp.
20 filed with New York P. S.
Commission
mission to issue and sell
Oct.
the
proceeds
to
be
for per¬
for
new
construction.
bond financing was
done
privately in March,
through Kidder, Peabody & Co., New York.
Latest
1951,
•
for
a
total
stock
by Nov. 1, 1954.
..
_
Gas
&
,Nov.;3 it
-
was reported
company plans issue and sale of
$6,000,000 first mortgage bonds and 60,000 shares of
preferred stock (par $100). Proceeds—To*
repay bank
loans
and
for
construction.
Underwriters—To be
competitive bidding. Probable bidders:
For bonds, Halsey, Stuart & Co.
Inc.; Harriman, Ripley
& Co. Inc., Union Securities
Corp. and White, Weld &
determined
new
by
(jointly); Equitable Securities Corp.; Glore, Forgan
& Co.; Harris, Hall &
Co. (Inc.); Lehman
Brothers;
Blyth & Co., Inc.; The First Boston Corp.; Smith,
Barney
& Co.
For preferred, Blyth &
Co., Inc.; Merrill Lynch,
Pierce, Fenner & Beane; Glore,.Forgan & Co.; Lehman^
Brothers; Salomon Bros. & Hutzler and Union Securities
been
postponed
until
quarter of 1953.
around
the
end
on
of
-
York, Chicago & St. Louis RR. (12/3)
are
New
York, New Haven & Hartford RR.
it
was
announced
sell
company
,
j
plans Jo issue and-
$14,000,000 of bonds.
Proceeds—Together, with other
funds, to refund $14,482,000 Harlem River & Port
Chester;
first mortgage 4% bonds
due
—To be determined
May 1, 1954. Underwriteri
by competitive bidding. Probable
bidders: Halsey, Stuart & Co.
Inc."; Kidder, Peabody &!
Co.; Kuhn, Loeb & Co.; Morgan
Stanley & Co.; The
First Boston Corp.;
Smith/Barney & Co. Bids—Expected
to be received
North
late in November
Pennsylvania RR. Co.
or
early iff December.
' /
/ '
;
Bids will be received by the
company up to noon {EST) ;
Nov. 19 at Room
909, 1421 Chestnut St.,. Philadelphia
2, Pa., for the purchase from it pf
$6,000,000
(11/19)
on
White,
*
received
have
expected to be received by the
company on
for the purchase from it
of $2,430,000
equipment
certificates.
Probable bidders:
Halsey, Stuart &
Co., Inc.; Salomon Bros. & Hutzler;
given the right
25,000 additional shares of
at. the rate of one new share
*
Inc.
trust
.
Co.^ (1/27/53)
Service
Dec. 3
of
Electric
Public
;
La.
-
Orleans
15
Oct. 31
Rattier & Sanford, both of New
Orleans, La.;
Iowa-Illinois
New
July 24 company announced plans to issue and
sell $5,000,000 of first mortgage bonds due Dec.
1, 1982. Pro¬
New
(par $20)
four shares held; rights to expire on Nov. 21.
Price—$40 per share. Proceeds—To increase capital and
; surplus. Underwriters—Sharff &
Jones, Inc. and
Co.
$6,000,000 first mortgage bonds,
used
subscribe
common
•
common stock may include: Merrill
Lynch,
Pierce, Fenner & Beane and Dean Witter & Co.
(jointly);
Kidder, Peabody & Co.; Blyth & Co., Inc.
commence
Of
Telephone St'
Telegraph Co. holds about 70% of the
presently out¬
stock. Offering—Expected in
December.
Bids
for each
California Electric Power Co.
Bidders for
is expected to
f"
'
offering to stockholders
standing capital
the first
Co., Houston, Tex.
Hibernia National Bank, New
Orleans,
Stockholders of record Nov. 6 were
an
capital stock at the rate
of one new share for each
10 shares held. Price—At
par
<$100 per share).
Proceeds -— For repayment of bank
loans, etc. Underwriter—None. American
Dec.
(11/14-17)
announced
•
bids will be received by the
438, South Station, Boston, Mass., up
Nov. TS for the purchase frOm it of
Oct. 7 it was announced
company intends to sell early
in. 1953 approximately $10,000,000 of additional new
se¬
curities, the type of which has not yet been determined.
Inc.
Louisiana to a point in. northeastern
Kentucky. This
ptoject would cost about $127,887,000. Transportation of
cer¬
a
;
Freightlines,
was
16 company applied to the FPC for
authority to
construct an 860-mile pipeline
extending from southern
announced
company at Room
it
Gulf Interstate Gas
/:
-
17
Sept.
tificates. Probable bidders:
-Halsey, Stuart & Co.; Salo¬
mon Bros..& Hutzler.
7 /
:
'/
,
Gearhart, Kinnard &
outstanding debentures and preferred stock and for new
equipment and working capital. Underwriter—Allen &
Co., New York; Peters, Writer &
Christenson, Denver,
Colo.; and Edward D. Jones & Co., St. Louis, Mo.
cates, series FF, to be dated Dec. 1, 1952, and mature
annually from 1953 to 1967, inclusive. This is the first
a
—
New England
Telephone & Telegraph Co.
Oct. 21 directors authorized
of 232,558 additional shares
V*
new construction.
Underwriters—To be de¬
by competitive bidding.
Probable bidder*:
Halsey, Stuart & Co. Inc.; Lehman
Brothers; Kidder„
Peabody & Co. and Stone & Webster Securities
Corp.
(jointly); Equitable Securities Corp.; Union
Securities
Corp.
Bids—Originally scheduled to be
company has applied to ICC
authority to issue and sell $1,100,000 6% convertible
debentures due 1967. Price—At par. Proceeds—To
retire
Y., up to noon (EST) on Nov. 14 for the
purchase from it of $5,505,000 equipment trust certifi¬
instalment of
Underwriter
—
for
(11/14)
Bids will be received by the
company at No. 2 Wall
New York 5, N.
Garrett
Oct.
estimated, will involve $29,500,000.
RR.
share.
/v
/ V /r ;
was reported
company plans issuance, and sale
of about
$10,000,000 first mortgage bonds, series D. Pro¬
ceeds
To repay bank loans and Tor
new constmctiatlL
Underwriters—To be determined, by
competitive/bidding;
Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co. and
Glore, Forgan & Co. (jointly); Salomon Bros.
& Hutzler;
Kidder, Peabody & Co, and Stone & Web*ster Securities
Corp. (jointly); Lehman Brothers and
Goldman, Sachs & Co. (jointly); Union Securities
Corp.;
The First Boston
Corp.; White, Weld & Co. OfferingExpected late this year or early in 1953.
termined
privately at
per
f;;/
Oct. 7 it
ceeds—For
Otis, Inc., New York.
construction.
&
& Ohio
plan further provides that Rlackstowe Valley
Gas & Electric Co., Brockton Edison
Co., and Fall River
Electric Light Co. issue mortgage bonds.
Profceeds—To
repay bank loans. Underwriters—For EtTA debentures
may be determined by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.
<for bonds only);
Lehman Brothers; Estabrook & Co. and Stone &
Webster
Securities Corp. (jointly);
Glore, Forgan & Co. and Har¬
riman Ripley & Co., Inc.
(jointly).
$7.50
the company expects to borrow additional
money next
Spring to finance its 1953 construction program, which,
Baltimore
$2,000,000.
approximately
European American Airlines, Inc.
Light Co.
Aug. 7 C. Hamilton Moses, President, announced that
it is
Associates
cient amount of common stock to raise
~V(>
-
Narragansett Electric Coll.
,
Halsey, Stuart & Co. Inc.; The First Boston Corp.
and Lazard Freres & Co.
(jointly); Union Securities
Corp.; Smith, Barney & Co.; Equitable Securities Corp.
Arkansas
Utilities
f.•
t
& Beane; Union Securities
Corp.
noon
June 11 it was reported
company plans to raise an ad¬
ditional $400,000 of equity capital. An issue of
$200,000
of capital stock was
just recently placed
ders:
Proceeds—To repay bank loans and for
Eastern
'
mortgage
Underwriters—To be determined /
by: compefitivo
bidding. Probably bidders: Halsey; Stuart. &
Co. Incs.;
White, Weld & Co4 and Kidder,
Peabody & Co. (jointly);
Blyth & Co., Inc.; The First/Boston,
Cbtp. and W. C.
Langley & Co. ( jointly); Equitable Securities
Corp. anil
Shields & Co.
(jointly); Merrill Lynch/Pierce, Fennet
L;.
Sept. 3 it was announced that amended plant of reor¬
ganization of this company and subsidiaries Calls for is¬
suance by company of
$7,000,900 debentures end <a suffi¬
company,
bentures
to
reported company plans issuance and sale
preferred stock issue: Underwriter—A.
f bonds.
East Tennessee Natural Gas Co. - •
; -.* »
Sept. 29 it Was announced company proposes to construct
about 106 miles of pipe line the estimated
cost of which,
$5,784,606, Is expected to be financed through the issu¬
ance of
$4,500,000 of first mortgage bonds (Which may
bfe placed
privately). Ohd $1,300,000 of bank loans.!
Traditional
Underwriter—White, Weld & Co., tow York.
to expire * Dec; 11. Price—$50 per share.
Proceeds—To. increase capital and surplus, / Underwriter
'!
up
:
.
'/
held. /Rights
—Blyth & Co., Inc., and associates.
(11/18) 7";
company is planning
Shields & Co. Bids—To be received
(EST) on Nov. 18/ -
f
Co. /
Mississippi Power & Light
March ; 14 it was repotted
company plans to Issue and
sell in November
an issue of $8,000,000' first
Corp.; Smith, Barney & Co.; Kidder, Peabody &
common
Rubber
Beane.;
Inc., Chicago, ill.
( )
/; ..'J
i
MidSouth Gas Co. '
41
Sept. 23 company was authorized
by FPC to construct
.191 miles of natural
gas pipeline and to acquire an exist¬
ing 38-mile line from Arkansas Power
& Light.Co. at an
aggregate estimated cost of
$4,524,200, Stock financing in
presently estimated
on Jan.
1, 1953^ Underwriters—To
determined by competitive bidding. Probable bidr
ders liiay.
include-Halsey, Stuart & Co. Jnc.; The First
Offered 246,088
company
-stock
was
&
&
a convertible
G. Becker & Co.
$3,000,000 first mortgage bonds ihte
Proceeds —To refund about
$3,000,000
J,. 1982,
Boston
common
announced that the
sell
it
of
be
•
•
was
and
Lynch, Pierce, Fenner
Mansfield Tire
Oct. i
?
Brothers and
Merrill
bonds which mature
Co., Ltd.,
acted as
dealer-managers in stock offering to stockhold¬
ers in Oct. 1951.._
j
vt*,.
>"• ./•>
-■>
f
issue
- -
>.. .
Detroit & Toledo Shore Line RR.
'
.
Co.
-
announced that following
proposed twofor-one stock split, the
company proposes to offer to its
present stockholders the right to subscribe at
par ($2 per
share) for one additional snare for each share held.*
:
be undertaken in
&
Oct. 1 it, was
reported company may issue and sell
$10,000,000 /to $12,000,000 of
securities,% probably • bond*.
Proceeds—For new construction./In
August of last yearr
an issue/of
$8,000,000 3%% first mortgage bonds due
1976 was placed
privately through Lehman
if Culver Corp., Chicago, 111.
•
amount
of first
be determined
by
To
—
Securities-Corp.;
Stearns
Nov. 3 it was
Alumimuwn$.td^. ^
Oct/ 15 directors;expected that
Underwriters
Co., Salomon BrOe.
approximately $llv000,000 of additional capital .will
be required
during the latter half of 1952. Underwriter
—Putnam & Co., Hartford, Conn.
—
"Troy.j•
1 it
plans to issue and
$12,000,000 principal
,& Hutzler and Union
Securities Corp.
able
Co.
that
1952
re¬
Probable bidders:
Halsey, Stuart
Inc.: Glore, Forgan & Co.:
Blyth & Co., Inc. and
Lazzard
Freres &
Co.
(jointly); The First Boston
Corp.; White,-Weld & Co. and Shields &
Co. <jointly);
Smith, Barney & Co.; Kuhn, Loeb &
&
Connecticut Light A Power
in
be
& Co.
Beane, White, Weld & Co. and R. W.
Pressprich
(jointly)* Morgan Stanley &
Co/For-debentures,
Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.
Oct. '.31 (letter of
late
to
on Jan. 27.
competitive bidding.
& Co.
.
Tentatively scheduled
it
sell
Columbia Gas
ner
(CST)
mortgage bonds
$25,000,000.
per share. Pro*
Underwriter — R. L.
wells.
a.m.
Kansas City Power &
Light Co.
Sept. 15 company announced that
Underwriters—To be determined by
competitive bidding.
Probable bidders: For
stock, Merrill.Lynch, Pierce, Fen¬
of common
stock.(par five cents), Price—25 Cents
ceeds—To
stock to
common
,
Wyoming National Oil Co., Inc., Denver, Colo.
notification) 500,000 shares
—
ceived at 11
System, Inc., N. Y. ; V*
Oct. 10 It Was announced
company plan's to issue and sell
common stock and additional
debentures early in the
Spring of 1953. Proceeds—To repay bank loans and for
construction program.
Company has sought SEC authorr
ity to borrow from banks ;an
aggregate Of
per unit Pte*
publish new national picture magazine. !)**
derwlHer—None. Ah earlier registration statement filed
July 14, 1952, covering a like offering of preferred and
common shares was withdrawn
Aug. 1,' .1952:; r
- '
Oct. 10 (letter of
1,
.
:
ceeds—To
.
after March
yield approximately $5,000,000 to refund
the then out¬
standing short-term notes. Underwriters—To be deter¬
mined by competitive
bidding. Probable bidder—(1) For
bonds, Halsey, Stuart & Co. Inc.; Coffin &
Burr, Inc. and
The First Boston
Corp. (jointly); Blyth & Co., Inc. and
Kidder, Peabody & Co. (jointly); Merrill
Lynch, Pierce,
Fenner & B0ane and
White, Weld & Co. (jointly); Har¬
riman Ripley &
Co., Inc.; Salomon Bros. * & Hutzler.
(2) For stock, Blyth & Co., Inc. and
Kidder, Peabody &
Co.
(jointly); Coffirt & Burr, Inc. &nd The First Boston
Corp.. (jointly); Harriman Ripley & Co., Inc. i
r
/•* "V
new
ceeds—To
one
soon
$6,000,000 of first and
the
<•' Wisdom
Corp. (jointly); Kidder,
Peabody & Co.; Harriman, Rip¬
ley & Co. Inc. Bids
,
general mortgage bonds and
sufficient
share for each five shares held. It is
present intention of the board to fix a
period of
approximately 10 days during which subscriptions may
be made.
Price—To be supplied by amendment. Pro^one
Maine Power Co.
Sept. 2 it was announced
company
1953, intends to issue and sell
,
41
;
mortgage
be dated Dec.
1; 1952, and to mature Dec. lyJ
They will be guaranteed
unconditionally by the
Reading Co. The proceeds will be used to refund a
bonds to
1972.
like
amount of bonds which mature in
1953. Probable bidders:
>
Halsey, Stuart &
Loeb
&
& Co.
Co. Inc.; Morgan
Stanley & Co.; Kuhn,/
Co.; Union Securities Corp.;
Kidder, Peabody
Northern Indiana Public Service
Co.
/
it was reported
company may issue and sell
shortly after the close of this year some
additional pre¬
ferred and common stock.
Underwriters—May be Cen¬
tral Republic Co.
(Inc.), Blyth & Co., Inc. and
Merrill *
Lynch, Pierce, Fenneri & Beane. *.
>
Sept. 18
•
*
Continued
on
page 42
v
42
The Commercial and Financial Chronicle
(1858)
Continued
from
41
page
17
Natural Gas
company
tions; installation of a total of 73,600 h.p. in new and
existing compressor stations; and numerous branch line
additions. Probable bidders for debentures or bonds;
Inc.; The First
mortgage pipeline bonds, and preferred and common
Boston Corp. and Kidder, Peabody & Co. (jointly). Com¬
mon stock financing will probably be done via rights.
Halsey, Stuart & Co. Inc.; Blyth & Co.,
10
issue and sale,
plans
it
announced
company
Underwriters—To be determined by competi¬
Probable bidders: (1) For preferred stock:
Morgan Stanley & Co.; Lehman Brothers and Bear,
Stearns & Cq. (jointly); W. C. Langley & Co.; Glore,
Forgan & Co. and White, Weld & Co. (jointly); The First
Boston Corp.
(2) For common stock: Merrill Lynch,
Pierce, Fenner & Beane and Kidder, Peabody & Co.
(jointly); Lehman Brothers and Bear, Stearns & Co.
(jointly); Morgan Stanley & Co.; The First Boston Corp.
program.
tive bidding.
Ohio Power Co.
Peoples Gas Light & Coke Co.
that company and each of its
subsidiaries will issue mortgage bonds or other debt
sell
$22,000,000 of first mortgage bonds and 100,000 shares of
preferred stock (par $100). Proceeds — To repay bank
Underwriters
loans and for new construction.
determined
by competitive
bidding.
To be
—
bidders:
Probable
For bonds, Halsey, Stuart & Co., Inc.; The First
Corp.; Union Securities Corp. and Salomon Bros.
& Hutzler (jointly); Kuhn, Loeb & Co., Harriman Ripley
&
Co., Inc. and Stone & Webster Securities Corp.
(1)
Boston
(jointly);
Blyth &
securities. Proceeds—To finance
Southwestern Public
construction programs.
Aug. 4 it
Underwriters—To be determined by competitive bidders.
tional
Halsey, Stuart & Co. Inc.; The First
Probable bidders:
first
Corp.; Glore, Forgan & Co.; Kuhn, Loeb & Co.
Boston
shares to raise about $4,000,000.
common
Louis-San
bidders:
Halsey,
Hutzler.
Stuart
Tentatively expected to be received
on
Jan. 20 at 11
earned
and
reserves
Underwriter—Blyth &
financing.
the
from
certificates.
it
total
a
of
Pacific Northwest
Pipeline Corp.
filed
second
a
mission line extending from the San Juan Basin in New
Colorado
to
market
in
areas
the
Financing is expected to consist of first
mortgage pipe line bonds
and
preferred
and
common
stocks, and is expected to be completed by April, 1953.
Underwriters—White, Weld & Co. and Kidder, Peabody
&
Co., both of New York, and Dominion Securities Corp.,
Ltd., Toronto, Canada.
an
issue
of
about
$3,000,000 of
stock
common
(probably around 450,000 shares to be offered to stock¬
holders). Price—About $7
struction program.
per
share. Proceeds—For
and
Co., both of New York.
and
ook
made
a
cit
bank
loans
Expected
after
and
18.
stockholders
for
Pierce, Fenner & Beane,
Chicago
3
FPC
Natural
Co.
sell
additional
bonds
during
the
first
six
months
1953 in the amount then permissible under its
RR.
(12/10)
Bids will be received
lffe ICtfor
by the company
about
on or
Dec.j
the purchase from it of about $6,000,000 equipment-
'
to i?- trust certificates. Probable bidders: Halsey, Stuart & Co.
of
>
Inc.; Salomon Bros. & Hutzler.
or
—
other
Western
Natural
Gas
Co.
Sept. 2 stockholders approved the creation of
an
author—
izedjssue of 500,800 shares of preferred stock (par $30),
Halsey, Stuart & Co.
of which the company plans to offer about
Inc.; Kuhn, Loeb & Co.; The First Boston Corp., Blyth
&
the
the
Co.
stock
Inc.
and
Southern
Oct. 16 it
selected
Kidder, Peabody & Co.
financing
issues
firms
more
reason,
and
discloses
up
that
of
than $2 billion
or
to $89,643,000 of
the
total,
some
60%
of went into obligations of industrial
firms.
a
An
additional
$677,000,000
consisted of utility bonds and some
it
is
basis.
of
5%
Life Firms Buying
A breakdown of the new money
by
Cp,'$
latest
acquisition
cap.i.tal through this
of
medium
did
170,000 shares
dividend rate
stockholders
redeem
stock
2,053 out¬
(par $10.0), to
construction.
new
Traditional
Underwriter—White, Weld & Co., New York.
nonetheless typical
ations
in
money
of
oper-r
market.
that
Harvester
new- bernation"
preferred
a
common
Proceeds —To
retire bank loans and for
re¬
Prudential
(carrying
5%) for subscription by
l-for-20
standing shares
proposal to issue
attractive side.
about
on
announced stockholders will vote Nov. 21
a
convertible preferred stock
of
(jointly). Any
be via stockholders.
Ry.
was
approving
may
as
has
of
the
new
just closed
with
area
Insurance
Co.
for
a
influences, it remains a $214,000,000 went into obligations loan of
$100,000,000 to aid in fi¬
that the market, at the mo¬ of railroads.
nancing construction and develop¬
ment, is a sellers' affair and ex¬
New investments in stocks ab¬ ment of new
products. The loan
pected to remain in just that
sorbed only $141,000,000, of which took the form of 3^%
promissory
status through the balance of the
less than half was placed in com¬ notes
maturing 1982, but subject
year.
mon
shares.
Mortgage financing, to repayment at the rate of $5',Money continues to pile UP with in the nine months took the lion's
000,000 annually starting in 1963.
Notwithstanding the stringency institutions which must invest it. share footing up to $2.9 billion.
in the money market, with mem-, The current report, of the major
Short prospectus
As of Sept. 30, these firms had
ber banks being forced to borrow life insurance companies, covering "total
business security investments ,' Wall Street got its introduction
heavily at the Federal to main^ the first nine months of the year, of $20.5 billion while their stake
this week to
the
"abbreviated"
tain their reserve position, high- is a case in point,
in mortgages was
statement
author¬
approximately identification
grade corporate bonds qontinue to
These organizations, it develops, the same at $20.8 billion.
ized under a recent change in the
creep gradually forward.
have put $3.5 billion in new money
Securities and Exchange Commis¬
This paradoxical situation ap¬ into
investments, in that; period.
Swelling the Total
sion's rules covering prospectuses.
parently reflects one of two con¬ Taking into account funds
derived
The scope of the expansion in
This new departure in the mar¬
clusions op the
part of people from
maturities, refundings and; life* companies' investment in in¬
\yho are currently on the buying sales of
keting of new securities is de¬
investments, this group dustrial securities was swelled by
side.
They are convinced that of companies had
signed to permit
the
potential
a total turnover substantial
purchases of securities
stringency in money is temporary of better than
$10 billion in the through direct negotiation.
investor to study a projected of-,
and not likely to lead to firmer
period.
While
International
Harvester fering during the period of "hi¬
rates.
investments
a
ar-.
Underwriters—Probably Dillon, Read
Glore, Forgan & Co., both of New York.
& Co. Inc. and
fact
belief that the recent correc¬
tion in the market overran itself
as
be appropriate at the
course, the prospective
slack in
the new issue market is
among
the major
the
operate
may
on
many
on
Whatever
Or, they have swung around to
to
financing has been
mortgage
by the sale of additional first mortgage bonds
as
markets
initial
of the corporation.
indenture, and to provide for other permanent financing *
securities in such amounts
The
for privately with no public offering expected
for at least two years. E. Holley Poe and Paul
Ryan, of
70 Pine St., New York, N. Y., are the
principal officers
V"
pipeline
company to construct
facilities estimated to
cost- $32,518,500.
On Sept.
it had been announced that the
company expects
midwest
carrier."
Wabash
Gas
(Del.)
ranged
both of New
authorized
Pipe Line Co.
was
other
and
j-
Southern
Nov.
of
announced that this company had
been formed to build, own and operate a petroleum
products pipeline from the Texas Gulf Coast to St Louis,
"common
Offering—
York.
Memphis, Tenn.
f
United States
$4^*000,000
expansion program.
Bank,
company
•
Sept. 25, 1950 it
Underwriters—Smith, Barney & Co. and
Lynch,
to
announced
was
plans issuance and
100,000 shares of capital stock
(par $10) on a one-for-five basis. Price—$32 per share.
Proceeds—To increase capital and surplus. Underwriter
—Equitable Securities Corp., Nashville, Tenn.
time in January. Registration—Expected
some
Dec.
Merrill
con¬
Underwriters—Kuhn, Loeb & Co.
Carl M. Loeb, Rhoades &
sale
convertible^subor-
later date. Proceeds—To retire
a
it
time. Probable bidders for bonds:
Sulphur Co., Dallas, Tex.
Oct. 23, J. R. Patten, President, said that it is planned
float
new
National
31
issue and
plans to
Planters
Oct.
Dec. 2 for the purr
tures for each 12 shares of stock held. Price—TO'be de-^
•
to
pre¬
Pacific
Estimated overall capital cost of the project
Pan-American
Smith, Barney & Co. and Collin, Norton & Co.
(jointly); Lehman Brothers, Harriman Ripley & Co.*
Inc., Bear, Stearns & Co. and Carl M. Loeb, Rhoades &
Co. (jointly); W. C. Langley & Co. Offering—Of bonds,
probably in November; and of stock, later in 1952.
Halsey, Stuart & Co. Inc.;
of
may be underwritten by The First Boston Corp.'
1950, the following group bid for common stock issue: *
Lynch, Pierce, Fenner & Beane; Blyth & Co.,
Inc.;
re¬
debentures, which are first to be offerediflafr'subrr/
scription to comon stockholders at rate of $100'aftdpberir ;T
of
substitute application
with the FPC proposing to construct a 1,384-mile trans¬
is $179,000,000.
the
>
$101,758,900
reported company plans issue and sale of
mortgage bonds and 500,000 shares of
stock. Proceeds—For construction program. Un¬
Union
company
Edison Co.
was
Merrill
dinated
termined at
and
while
In
v
of $5,700,000 equipment trust
announced
it
„
,
(jointly); Carl M. Loeb, Rhoades & Co.; Kidder, Pea¬
body & Co.; The First Boston Corp. The common stock
Corp.
was
share. Proceeds—For general
Underwriter—Paul C. Kimball &
k
per
ler
(12/2)
Probable bidders:
Sinclair Oil
Price—$5
bonds, to be determined by competitive
bidding. ^ Probable bidders: Halsey,: Stuart & Co. Ine.;
Equitable Securities Corp. and Salomon Bros. & Hutz¬
I
company
3
common
Salomon Bros. & Hutzler.
sell
Associates, Inc.
reported corporation plans to sell publicly
an issue of prior preference stock to finance expansion of
Kaar Engineering Corp. of Palo Alto, Calif.
Mexico
$1).
offering
Co., Inc. handled previous
on
financing
derwriters—For
'//- 'a
surplus,
expected to be received
are
stock
$7,500,000 first
Inc.; .Salomon :
ferred stock
Bids
preferred
it
Co., Chicago, 111.
mainder must be secured through the sale of securities.
Oct. 28
was
Northwest.
Go.
;>■
and
.
27
Oct.
July 1, L. M. Klauber announced that of the more than
$18,000,000 required for capital improvements in 1952,
approximately $4,000,000 will become available from de¬
a.m.
(EST). Registration—Scheduled for Dec. 18.
29 company
&
bond
necessary;
corporate, purposes.
San Diego Gas & Electric Co. J
preciation
be
(par
(11/18)
.*"■
financing (with offer to be made
and use the proceeds toward lt»
Securities, Inc., Santa Fe, N. M.
was
reported company plans to issue and
sell 60,000* shares of .class A convertible common stock
cates, series K, to mature in-15-equal annual installments.;
chase
(jointly); Glore, Forgan & Co.;
Lehman Brothers; The First Boston Corp.; Union Securi¬
ties Corp. and Salomon Bros. & Hutzler (jointly). Bids—
Aug.
Ry.
'.
^
State
purchase from it of $2,805,000 equipment trust certifi¬
Bros.
Additional
also
Oct.
by the company up to 1 p.nv(EST)
Nov. 18 at 120 Broadway, New York 5, N. Y., for the
Webster Securities Corp.
Pacific
Proceeds—To
Bids will be received
on
stockholders)
Toledo
Francisco
f
this previously was done pri*
vately. Underwriters-Dillon, Read & Co. Inc., New York.
Harriman Ripley & Co. Inc.
if Seaboard Air Line RR.
Sept. 13 it
1953.
may
loans and for new construction. Under¬
writers—To
be
determined by competitive bidding.
Probable bidders: For bonds, Halsey, Stuart & Co. Inc.;
The First Boston Corp. and Coffirv& Burr, Inc. (jointly);.
Kidder, Peabody & Co.; White, Weld & Co.
For stock,
Kidder, Peabody & Co. and Blyth & Co., Inc. (jointly);
St.
stock
which, it is estimated, will involve
approximately $23,000,000 for the year ended Aug. 31,
and
issue
to
Service Co.
reported that company may do some addi¬
was
common
construction program
bank
repay
Inc.; Glore Forgan & Co. (2)
preferred stock, Blyth & Co., Inc.; Dillon, Read &
Co., Inc.; Harriman Ripley & Co., Inc. and Stone &
A)
(at least 260,000 shares) by Sinclair Oil Corp. is
planned. Underwriter — Union Securities Corp., New
Co.
For
common
York.
Probable
(1/20/53)
Oct. 28 it was reported company plans to issue and
f
Southwestern Development Co.
3 it was reported sale of this company's
approximately $5,000,000 of bonds in May or June,
1953, and in the latter part of 1953 to issue sufficient
1953, of 150,000 additional shares of preferred
stock (par $100) and 479,846 additional shares of com¬
mon stock (par $12).
Proceeds—To finapce construction
Kuhn, Loeb
Oct.
sell
early in
*
Probable bidders: Halsey, Stuart & Co. Inc.;
& Co.; Morgan Stanley & Co.
Oct. 24 it was announced
Co.
Nov.
like amount
stock
if Public Service Co. of New Hampshire
Nov. 3 it was announced company plans to
* Ohio Edison Co.
a
of bonds which mature up to and including Nov. 1, 1956.
Underwriters—To be determined by competitive bidding.
Co.; Smith, Barney & Co.
* Northern Pacific Ry. (11/20)
Bids are expected to be received by the company on
Nov. 20 for the purchase from it of $6,375,000 equipment
trust certificates.
Probable bidders:
Halsey, Stuart &
Inc., Salomon Bros. & Hutzler.
Thursday, November 13,1952
funding bonds to provide funds to refund
Pennsylvania Power & Light Co.
be planning to issue
and sell $10,000,000 of first mortgage bonds.
Previous
bond financing was done privately through The First
Boston Corp. and Drexel & Co. If competitive, probable
bidders may include: Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Equitable Securities Corp.; White, Weld &
Oct. 3 it was reported company may
Co., Omaha, Neb.
sought FPC authority to construct
pipeline facilities to cost an estimated $69,826,000. This
would include about 442 miles of main pipeline addi¬
Northern
Sept.
...
under the registration
requirements of the law.
;
life- insurance not figure in the foregoing report, tThe condensed statement
ing
in
used
connection
with
the
offering of 70,000 shares of Sub¬
urban
Propane Gas Corp. con¬
vertible
stock.
sponsors
form
of
stantial
the
list
Meanwhile
mailing
are
statement
of
the
the
to
a
full
sub¬
dealers.
Light Schedule Next Week
Next
facing
week
finds
underwriters
unusually light schedule
prospective new offerings. On
of
an
Monday the Long Island Lighting
Co. will open bids for
$20,000,000
of
first
On
for
mortgage 30-year bonds.
Thursday bankers will offer
the
issue of
Province
of
Quebec
an
$25,000,000 of 20-year de¬
bentures.
And
on
quesne
the
same
day
the
Du-
Light Co. is scheduled to
receive bids for
an
issue of 250,909
shares of common stock.
There
of
is
the
usual; smattering
municipals, of
ways
course,
and al¬
the possibility of- some nego¬
is be-: tiated ventures
being brought out.
1
(
Continued jrom page
(1859)
Commercial and Financial Chronicle
V: The
Number 5168
Volume 1-76-
8
v
National Bank Assets
.
Comptroller
NSTANotes
Preston
total
active
Incorporated; Paul J. Larie, Kidder, Peabody
& Co.; T. Frank Mackcssy, Abbott, Proctor & Pained David R.
Mitchell, Hill, Thompson & Co., Inc.; Herbert L. Seijas, Merrill
Lynch, Pierce, Fenner & Beane; Homer Wirth, Mabon^Si Co.
Nominations other than those selected by the Nominating
Committee can be made by a petition presented to .the Secretary
endorsed by 15%;,of the members eligible to vote for candidates.
All nominations shall close .15 days prior to the Annual Election.
Members of the Nominating Committee are:.*Artftur J. Burian,
Daniel F. Rice & Company; Richard H. Goodman, Shields & Com¬
pany; Walter Kane, Shearson, Hammill & Co.; James T. McGivney, Hornblower & Weeks; Leslie Barbier, Ingalls & Snyder.
Krisam,/Geyer & Co.,
national
to
(Capt.),
Murphy
1952
on
the
r
er
since
e
e
s
a
of
June,
•;•
1V>%.
the amount reported in Oc¬
last, year.
Included in the
000,
Goodman
Corby
i
Nieman, Bass, Krassowich
Cohen___
(Capt.), Ghegan, Jacobs, Gannon,
deposit
076,000,000, which increased $841,000,000 since June, and time de¬
posits of individuals; partnerships
and. corporations of $20,905,000,000, which increased $185,000^000.
Deposits
of
the
United States
Government of $2,804,000,000 were
22
21
18.
17V2
16
(Capt.), Craig, Fredericks, Bies, McGovern
Growney
Krisam
27v'-i
Montanye, Voccoli, Siegel, Reid
(Capt.), G.
Burian
1.27,
—t"--
—
—
(Capt.), Frankel, Strauss,
Bean
27J/2
(Capt.), Gersten, Krumholz, Rogers,
Meyer (Capt.), Kaiser, Swenson,
figures were de¬
mand deposits of individuals, part¬
nerships and corporations of $53,-
28
Farrell, Brown
(Capt.), Smith, Valentine, Meyer,
Gold, Young__
Frankel, Wechsler, Barker
Mewing (Capt.), Bradley, Weseman, Hunt, Gronick, Huff
Leone
(Capt.), Greenberg, Tisch, Werkmeister, Leinhard,
JSerlen
M '.
Murphy, Sea-
Klein, Weissman, Sullivan,
.
; recent"
$5,875,000,000
Julie Bean
increase of
Cash
with
etc.,
checks,
cashiers'
Westheimer Adds
(Special
Securities Placed
-
become associated
II ha;
Bracken
Reduction Co., a
wholly-owned subsidiary of Rey¬
nolds Metals Co., has arranged to
place privately
through Dillon,
Read & Co. Inc. and Reynolds &
"Co.
$76,750,000
of
first mort¬
gage-bonds and notes due Jan. 1,
&
with
Westhei]
East
Broad
was
previousl; r—with
r
St
Company, 30
jfeet. Mr. Bracken
M etr. i 11
Fenner & Beaher
Lynch, Pierce,
•
•
'
SX-Tfr*'
■
(Special
to
proceeds from the sale of
are to be used to
expansion
•finance
with
com-
—
S.
..M.
Liberty Life Building. Mr. Mahar^
or
end
amounted
The
The
were
were
up
2%.
loans to individuals
$5,028,000,000, an increase of 4%,
and
all
other
loans,
including
to brokers and
dealers and others for the purpose
has
declared
a
quar¬
•
D.
November
12;
H.
Secretary.
ALEXANDER,
1952. i
of
an
$1,145,000,000,
of
banks
Reserve
Limited
reserve
(including cash items
of
collection)
of
$9,-
i
Dividend- No. '2 1
Board of Directors today declared
"
_
>
u
divi¬
a
share on the
Company payable
of twelve-shillings
Ordinary Shares of the
December 2, 1952.
DIVIDEND
Hudson
and
the
NOTICES
per
NO. 52
<
Smelting Co., Limited
Dividend
A
(Canadian)
of
per
Dividend of
one
dollar
one
($1.00)
share and an extra
dollar ($1.00) (Cana¬
dian) per share has been declared on
the Capital Stock of this Company,
both payable December 1 7,
1952 to
shareholders of record at the close of
business on November 17, 1952.
II. E.
December
12,
December
on
1952 tc
American shareissued under the terms of the Deposit Agree
ment dated June 24, 1946. The dividend wi
amount to approximately $1.66 per share, su!
ject, however, to any change which may occu
in the rate of. exchange for South Africa fundprior to December 2, 1952. Union of Soul
on
Hay Mining
dividend
said
the holders of record at tire close of business
1952; of
5,
shareholders
non-resident
Africa
tax
tli
at
of 7.2% will be deducted.
By Order of the Board of Directors,
rate
11. E. DODGE, Secretary
r
New York, N-.-Y., November'7,
1952.
DODGE, Treasurer.
LION OIL
you*) Qoz JjjteC/eaM
COMPANY
to
farmers,
$5,735,000,000,
an
S
ss
of 50(f
been declared
the
on
Capital Stock of this
—201st
Company, payable December 16,
1952, to
stockholders of record November 28, 1952.
The stock transfer books will remain open.
zz
=
=
E. W.
=
1952
THE TEXAS COMPANY
regular quarterly divi'
per share has.
dead
Consecutive Dividend
and Extra Dividend
ATKINSON, Treasurer
A
quarterly dividend of
seventy-five cents (75$) per share
of
increase
/ /
1902
A
=
~
to
Directors
of
terly dividend of sixty cents per share payable
on December 15,
1952 to stockholders of record
at the close of business on November 21, 1952.
November 7, 1952.
purchasing and carrying secur¬
and ley was previously with Thomson"
ities, and to banks, etc., amounted iniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
& McKinnon.•!'*•'.
Arkansas.
Singer Manufacturing
Company
Board
The Directors authorized the distribution of
$15,510,000,-
Con¬
has ] become associated
loans
Francis T. du Pont & Cp^-
NOTICES
O'okiep Copper Company
of
Federal
increase of 1% since June,
on
real estate of $8,-
of
Texas
plants;: in
pany's
the
of
C.
Mahaley
these securities
-
N.
DIVIDEND
loans
sumer
Chronicle)
Financial
The
CHARLOTTE,
June,
m
heia
DIVIDEND
an
007,000,000
1968.
The
recent call date were
and
Joins FV I. du Pont *r
June 30.
on
industrial loans as of the
cial and
an
to 7.42%
$2,000,000,000 since last
process
$612,000,000 above the June figure and
$2,500,000,000, or 8%, above the
Oct. 10 figure last year. Commer¬
000,
was
$4,760,000,000. Total capital ac¬
were
$6,968,000,000,
or
7.53%, of total deposits, compared
dend"
in
They were
high.
1952
counts
The
Sept.
$33,782,000,000,
were
all-time
Russell
Ohio—H.
columbu;
Reynolds
1952
5,
of
other banks
were
Net loans and discounts on
.
5,
Chronicle)
Financial
to Ti
Sept.
on
profits, $1,296,000,000, and capital
reserves, $267,000,000, or a total
$13,354,000,000 and balances with
$1,173,000,000.
Reynolds Reduction
banks
$2,208,000,000,. including $6,000,-"~
000 of preferred stock.
Surplus
was
$3,197,000,000,
undivided
(
$14,000,000 and certified
were
$129,000,000,
October.
Postal sav¬
$70,000,000.
and
the
year
a
or
securities
June.
ings
Cy Murphy
Mewing
assets,
nearly
than
p-mre
$357,-
down
were
since
increased
Duke Hunter
invest¬
total
$43,500,000,000,
an
increase
$418,000,000 since June, and
Deposits of
amounting to $8,657,000,000
banks
5 Point Club
Walt
tal
States and
000,000
or
10%, more than
held in October last year. The to¬
$865,000,000, and deposits of
political subdivisions of
down
in¬
3%,
an
The
of
35%
$792,000,000,
-
.
of
were
of $1,069,000,than $1,000,000,-
up more
The unimpaired capital stock of
Other bonds, stocks and se¬
000,000,
Preston Delano
by $3,000,000,-;
^
34%
to
was
000 since June.
$8,520,000,000, which
included obligations of States and
political subdivisions of $5,988,-
tober,
Hunter ."(Capt.),
and
October.
were
curities
exceeded
and
June,
$1,000,000,000,
last
ago.
$5 0 0,0 0 0,000
since
since
compared
de¬
increase
an
of
ments
$92,500,a
was
crease
5
$34,984,000,000,
of $289,-
aggregated
000,000
banks
Sept.
on
obliga¬
(including $12,000,000 guar¬
obligations) on Sept. 5,
which
10, 1951.
The deposits
of
in
banks
the
anteed
Oct.
35
Montanye, O'Mara, Pollack
D.
Manson,
tions
was
reported
of
Investments
Borrowed money
000
on
United States Government
b i kl'TO'tm
than
Points
Rappa, Seijas
(Capt.), Demaye, Whiting, O'Connor,
Donadio
32.16 in
increase of
more
June 30 and
October, 1951.
parison with 32.67
billion,
000,000,
'
Sept. 5,
representing
an
$5
York (STANY) Bowling
1952 are as follows;
Team—
on
Sept. 5, 1952 was 33.06 in com¬
on
.
Security Traders Association of New
League standing as of Nov. 6,
loans and discounts to total assets
than
more
$102
ASSOCIATION OF NEW YORK
TRADERS
banks
The percentage of
2% since June.
that the
nation's 4,927
1952 amounted
were
•SECURITY
Currency
055,000,000, a total of $23,554,000,000, showed a decrease of $438,000,000, or 2%, since June.
Up $5 Billion in Year
reports
the
of
assets
the
of
Delano
43
.
regular
and
an
Extra
of
dividend
thirty
(30^) -per share on the Capital Stock of the Company have been
cents
NOTICES
DIVIDEND
iuf.
.
declared
Companies Boost Securities Investments
Life
i
•
.
,
■
*
j
record at the close of business
November 7, 1952.
on
1
The stock transfer
re-
.
main open.
..
bonds in first three¬
-quarters of1952, exceeded
billion, or about one-tbirdLvof
total increase in- life companies' assets. Investments in stocks
New acquisitions
:
.5
...
in business and industrial
.
THE DAYTON POWER
AND LIGHT COMPANY
DAYTON, OHIO-
ADVANCE
Institute, hew investments in
securities and mortgages by the life insurance companies of this
country.totaled $10,155,000,000 in the first three quartets of this
'■'<
*
'■
*
DThe' securities
—
-
''
industry-, accounted
and
business
of
;
•
f/
*
|
-•
-
.
follows
—*
(000,000's omitted):%
—
.
J
|
t
Stocks
(U.S-.):
Foreign Corporate
$6,313
$10,399
*
»
'
1,
record
at
168
1,394
close of
the
1952.
business
9
23
140
37
25
'280*
64
709
-
"
Other
1952 '
150
*
'
^
-
1,136
on1
!$:
*
Secretary
November 7, 1952
147
183
'
T
6
9
J,
.-f
28
,
"7'
,
23
74
12:
73
'
724
122
71
27
29
3:
* ^ .320
1,627
'" 813
5,592
X063
.3,326
10,229
•
Securities
&
$847
Mortgages'*. $941-
.Farm. Real. Estate—
:
„
20
»Pdiicy'-XiOans^b-iir_riiZ'/—/Zil—_ L ' 39V
> Y-i,
...Other "Assets)——I'—z——
Total
Assets'
•
-zz
.
$64,205
DIVIDEND
NO.
. ..
158,
387*
f
166
19
1,717
2,683
__
$71,578
$66,777
stock
1952 to shareholders of record
f#it
Nov.
In
stockholders
at
of
Dec. )9,
share in cash, payable
December 20, 1952 to
of record
Directors
quarterly dividend of 10c per
pay¬
common
M
28, 1952.
addition
share,
p' A
1mm.
the close
17, 1952.
pany
5,
has been declared, payable December
to stockholders of record at the
1952,
Transfer books will not
Cheeks will be mailed.
W.
.,937
1,780
dividend,
of
a
.
to 10c in
cosh
per
year-end dividend of
5% is to be paid in the common
stoclr of the Ludman Corporation
to shareholders of record Nov.
28, 1952. No fractional shares
will be issued.
.
1,529
1,915
stock
Board
Ludman Corporafiort hove
declared the 6fh consecutive
of business November
2,546;';'
' 1,039
•-
■.
The
per cent common
able in
'
and Hardware
today
the 3»4% Cumulative Convertible Pre¬
ferred Stock, $100 par value, of this Com*
26
4lV«'
25
on
$59,959
—
__
11
L_*
$13,951-
5
a
has declared
common
PREFERRED
9,161
$10,155
tors
114
business November
the close of
close of business November 19,
Total
Jalousie Doors
regular-quarterly dividend of eighty-one
and .one-quarter cents (81*40 per share
2,962
1,823
i'
NOTICE
A
5,095
1,677
NO.
28, 1952.
1,467
634
"'346.
138
189
I-/————
859
13
record at
620
100
DIVIDEND
dollar
($1.00) per share on the issued and out¬
standing common stock, without par value,
of this* Company has been declared, pay¬
able December 22, 1952, to stockholders of
1.434
677
279
20
79
+'
1,481
COMMON
A regular quarterly dividend of one
10,551
92
109
148
6
21'
Securities/
12,546"
2,088.
62
DIVIDEND
*. The Board of Direc¬
;
Y
/tup wiji'h lw\fhw
Pi
A ILIS'CH AIMERS
MFG. CO.
10,636
J
79
c
and Hardware
coodAEM
3,177
11,365
2,435
12
:
3,425
677
?
M
WINDOWS
1,165
214
f
1
/
Aluminum or Wood
1951
«
'r ''
;
DIVIDEND NOTICE
1
GEORGE SELLERS,
President
1,512
•
Sept. 30
'/
''
1952 to stockholders of
November 18,
W. WILSON
ROY
$11,355
90
Veterans. Administration —
-
ber
1, 1952.
'
■_/:___
] V .Gttier^Realf'Bstate——_"__1
.
$3,248
28
World Bank Bonds—
Farm Mortgages: Vet. Admin.—
Other,,
__-l
*
z
Non-Farm' Mortgages:; FHA_/„—
i
.
$234
Preferred-/——
Common
fT
4951
,-46
Public Utility Bonds (U.S.)——J
Industrial & Misc. Bonds (U.S.)'
t
121/?,
per
Sept. 30
9 Mos.
1952
2
j' Railroad Bonds (U.S.)—!—i—
1.
quarterly dividend of
Company, payable on Decem¬
on
,
the Common Stock of
share
the
share on the common stock
of the corporation, payable December
10, 1952, to stockholders of record
at the' close of business on December
cents
—Holdings-:—
9 Mos,
1951
$320
U. S. Government Securities-
,
regular
a
-
Sept.
Foreign Government (Securities—
State, County, Mun. Bonds (U.S.)
■■■)'
the
1952
I;,..
»
'
Sep#.
;
\
regular quarterly dividend of 50c
per
has declared
f
-Acquired——f-.—~
;
a
,-s/ yv>
The Board of Directors
." New investments and holdings are reported by the Institute
-
r.
.1
for
The Board of Directors has declared
Illinois
Chicago,
companies in the three quarters
totaled $2,936,000;000; the third quarter alone showing $963,000,000;
Total mortgage holdings on ; Sept. 30 were $20,801,000,000,
up
as
J
i
Treasw-
— —- *
121 sf Common Dividend
Mortgages financed by the life
$1,510,000,000 since Jan. L--.\
.
J
*
October 24, 1952
CASTINGS
CORP.
greatest single block of this year's new investments, adding up to
'$3,565,000,000.^ Industrial bonds made up two-thirds of-this aggre¬
gate.
Stocks accounted, for only $141,000,000, less than half of
-these being common shares. 'Total life insurance investments in
business and industrial securities on Sept. 30 were $29,404,000,000.
"
ALUMINUM
According to the Life Insurance
year:'
'1
books will
a
Robert Fisher
amounted to $141 million.
-
this day, payable on De-
cember 10, 1952, to stockholders of
.
-
-
-
'
'
,
.
Novembers; 1952:";
1952.
The
0
Goodyear Tire A Rubber Co.
Mi!
By W. D. Shi Its, Secretary
Akron, Ohio, Noveniber 6,, 1952
Ludman Corporation has
be closed.
:
-
E.
MAN
HAWKINSON,
Sec reta>
President
CO*PORATK)|
MIAMI, FiORlDA
>).
IB
paid
quarterly dividends without
interruption since its first public
offering.
Max Hoffman
44
The Cormnercial and Financial Chronicle
(1860)
*,
T?
•
•
•
■
•
new
V
yi/jf
Capital
from the Nation's
rLV^V.'
jlJL
'
f\Tf 1
IW/
to
-
mi: ill
WASHINGTON, D. C.
servatives have
won
a
— Con/
precari- '
reprieve rather than a vietory over the neo-socialism of
ous
the mid-20th century.
\
not
Hoover
-
them
appallingly small majorities
Dwight Eisenhower will
him
behind
in
the
Congress.
There
Mr.
Capital,
who blandly
however,
have
may
seemed
-
him.
fail
to
~
cO
older
heads
shell
re- I
what 'happens i
to fulfill that
for
power
responsibility.
victory
The
which
great;
very
Presidential
the
.
suffer
-
-
-
'
.
element is that
new
enlisting
(<
the
> :
*.
.
-
_
,
weighty influence
a
upon
*
;
r;'" members of Congress.
(This column is intended to refled '*
"behind the scene'' inter prelaw-:
just'
Eisenhower
America
'""the
try gave
further
-
aid
at
from the nation's Capital and
or
may
"Chronicle's".,
..
coincide with the
not
own
views JL) i
-
'.r v.?.,
"Wellr
-I
J. B-
yes,
can
honestly
say
things
really
are
moving down here!"
opportu¬
every
tion
may
-
<
irrevo¬
is
r
est
vote
of
confidence
it
nity for its participation,: like a
spoiled brat constantly demand¬
has,
given any President since Roose¬
velt," they will say if the time
ever
when
comes
alibi
an
ing more
for
'
If
frustration in Congress becomes
7
necessary.
..
Isolation and withdrawal of
.
troops, it might suddenly decide
that neutralism isn't
In this connection the curious
of
called.
luck
In
voters
of
1930-31
is
November, 1930, the
220, Republicans,
where
the
1
ized,
deaths
elected
of
and
was
Republicans
In
result
to
as
return
of
some
the
one ' vacancy.
organized the
2^,House. The "sons of wild jack¬
asses"
played with the opposi¬
even though
tion in the Senate
officially the GOP
of the
pack
was
in charge
the
began
„
the .chase
So
.
Republican
a
death in
eratic
against
(2).
"
first
a
state
of
the Senate.
senatorial
place,
certainly
ernors
witli
might
its
deprive
organization of
ual
Two of such deaths
Mr.
would,
invariably appoint
own
party
happen just between
now
the
happen
any
majority
Senate, they
time in 1953
of
one
in
and
restore
ly
-
Democrats to
In
observing
the
the
will
into
-go
*
the
a-
garn's
dent
i
and
term
two
Lowell
new
Stephen
expires
new
n
Carson
J.
Commerce
an
been
a
.
The
new
It is
Spin-,
next
year;
and
incumbent,!
foe of FTC;
j
nonsense.
,
President also
may;
designate a new Chairman, ini
place of the present Chairman;
James M. Mead,: upstate New
York Democrat, who has fallen;
in
with
the
empire - building
business
baiting crowd at the
FTC.
1
-
con¬
good
no
declare
for
that
safe
are
*"""
Believe Tidelands Will Pass*
all
It also is believed that the bill
against
to
Committee
strictly
campaign
+
four
as
election.
few
Eisenhower
making
headway with the idea of elbow¬
ing their way into Commerce
Secretary Sawyer's; scheme to
set
up
a
new
distribution
and
industry establishment within
the Department, a plan which
he hopes to create before leav¬
ing the government Jan. 20.:
-
quit-claim
Federal
control
Stocks—Robert D.
United
—
Company, r210, Newbury
Whereas Mr. Sawyer empha¬
the idea that Commerce
' How
Farm
People
Mer-
Service
Business
Boston 16, Mass.—$5.00.
,
,
are now
~
Financial Independence Through
••
reported that the mate-,
rials controllers
-
.
Street,.
*
Learn
New:
Methods—Lauren Soth—National
Planning Association, 800 Twentyfirst" Street, N.; W.,; Washington,
D. C.—paper—50£. : ; v ; ;
r\
I
CV*
•
;
■'
on
Report
'
"
"
J" - *•" ' *
'
'*\ '
as
after
was
should
study and pay attention
to. problems of distribution,
whilst also covering the remains
of
NPA
back
into
his
Depart¬
ment, the materials planners are.
scheming to make their show an
important part.; They are trying
to get industry backing for re-
Ernst
&
David
.
,
Year Book of Railroad Informa¬
tion,
1952
road
Presidents'
Edition—Eastern
Rail¬
Conference.
143
Liberty Street, New York 6, N/ Y.
—paper.
For
Large
Appreciation Potential
SUGGEST
CLASS B
FIRM TRADING MARKETS
-
It also
Business
.
broad
is,
(common)
STOCK
measures
can
of
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one
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a
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*
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review of
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of
cement
"
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and
the Cement Indus¬
available
request.
on
Available around
16
FOREIGN SECURITIES SPECIALISTS
LERNER & CO.
Investment Securities
10 Post Office
of in¬
producer
Analysis of
last
dustry's foremost observers here
■
FOREIGN ' SECURITIES
..
Loth—Henry Holt: and Company,;
Madison Avenue, New York
;17, N. Y.—$3.00.
:
383
WE
Win¬
the
;
the American; Com¬
munist—Morris
sized
stretch,
year
-
limited
Churchill
expect
as
-
that
Research, 1819 Broad¬
New York 23, N. Y.—cloth-1.-.I
1.
Common
Set-Up
Research in Busi¬
on
be-
positive legislative relief.
popBtlar Mr. Eisenhower has, it
is not predicted that
■
way,
$5.00.
is
his personal popu¬
Dwight
the
British
is,
might
off,
Mich.
Economic
Adminis¬
appointees,
Mason,
has always
pecu-
own
Democratic
1952—Automobile
Association, New
Finance-—National Bureau, of
ness
ritt
Jo h
out with the
j tration,
certain
on
1952
Edition,
Conference
any
whereby
if the Chairman of the
that despite
ston
precarious
11
device
a
V
,—paper../.
Planners Elbow Way Into
Commissioner
Business must appreciate
larity,
indubitably
all
prosecution
to, be
he fights for economy.
over
All Is Not Lost
backing which
cartel"
c r
-
in
legislation to their party.
-
Commission
goes
any
re-elected-bj- his district
cause
(3)
chairmanships and
leadership and initiative
over
oil;
an
committee
-
to
payrollees
the
kick the thing
can
of
?
-Center Building, Detroit 2,
lingering hope that the "world
important
as
had
42nd Street,
loved and revered and constant¬
•
the
on
32nd
i change of thinking.
"stuck'
are
does
Appropriations
•
over
it
economy
and
and if the Democrats obtain
actual
not
Democrats
any
West
N. Y. 7
Manufacturers
takes
....
Eisenhower
January, when Congress meets.
can
is
of
This does not
necessarily have
It
•
to fill
Thus,
then
330
Automobile Facts and Figures—
.
10 days off in February
Lincoln-day speeches.
If
.
This will permit the new Presi¬
liar character of their
allegiance of the de¬
and
deficit might be paid
illusion has vanished.
(specific issues due to the
regardless
month
is that in 1953 the Federal Trade
stituencies.
vacancies
special headway, it will be
time, for Congress seldom
gets organized before the end
Product.,
of
McGraw Hill Publishing
—
New York 36,
some
the
Handbook
Company,
this
This
camp.
be
cannot
prove
inflexibility
an
action
about
putting .the -Department
as
mem-
their
ceased.
"
While it
South.
Congressmen
with"
of
Design
-
The newly-elected Presi-*
Gov¬
the party
to
the
Timing
than merely
more
Annual"
forecast at this stage, however.
Unless the new Congress gives
of
during
FTC to Be Renovated
to snare a broad
} group of votes by a broad de-j
i nominator of appeals, individ-»
•
Senate
Hoover
Iticket trjes
^ pemo-
because
of
Mr.
which
=5=
"
;
Justice in charge of clean hands,
one effect
of the GOP victory
candidate for President
i
bers
in
;
for
ident must appreciate the
posi-j
tion of Congress.
Whereas the
,
situation
.
Governor
the GOP
much
izations
upper-chamber, and the
their prey, Herbert Hoover.
*
confronted
being kind to them. It means
taking acts of imagination and
courage, such as divvying up
;with'them on patronage; and
breaking
the
hearts
of
the
phantom southern GOP organ¬
and
the
of
his last two years.
see
dependent,
Garner
the party
of
in the House. If this
happens, it would guarantee a
fto bring them into
Jack
members
30
GOP
In
means
to
of from
in power
changed the line-up to 219 Dem¬
ocrats, 214 Republicans, one in¬
.
25
the defection
in
.
a
Truman.
year" Congressional elections
Eisenhower should make every
overture to southern Democrats
filled
the normal "off-
be
it, the
majority in Con¬
gress has three broad meanings.
(1)
—
new
substantial majority, if less
two-thirds, and four years
agoM only
to
be
vetoed
by
by
war.
substantive
sober observers
narrow
organ¬
vacancies
> Otherwise
will
than
might
real
a
Russia
Nevertheless,
more
legislative
machinery.
Before the House
sent to Korea
Has Three Meanings
,
required to obtain of¬
over
is
case
those
Or
oil, also will be
be signed-by
President, in .view of
the latter's campaign commit¬
ment. This was passed this year
the
Administration.
new
think about.
the election the Republicans had
two more necessary-than the
213 seats
all.
given something
dent for the House of Represen¬
tatives.
In other words, after
ficial control
there
either
indepen¬
one
after
troops might be
re¬
chose
•
214 Democrats and
in
pitch
hot, and
so
over
passed -and
en-,
ergized themselves to work for
Eisenhower's victory, must real¬
ize that "we have only begun to
fight," that positive and steady
support must be given to the
confronted
were
with the threat of genuine U. S.
The "Fluke" of the 30's
turn
Europe
off-shore
pointed out privately, that the
conservative elements which
to the cooky jar.
access
1
loss.in state revenues, v
IF.
thestates
get
actively ;;
behind this drive, they can exr
7 .:
s
ercise.
;.
able
responsibility.
"Well, the coun¬
the President the great-
That
industry, is
,
steadily strength¬
Mr.
dent ...that
-
underscores that
won
There
is something new
in
the drive of the liquor industry
for a reduction in the excise
fax, i
boosted to $10.50 per gallon Th
^-enforcement problems increased
by the- -higher lax, -and* : they
cably committed
to stopping
Russia, is exacting the price of
candidate
of expenditure
in
business takes a set-back. - 7
backing of state govern-,
.States, the industry ad/;vises, have their bootleg liquor,.;;',
,
to resolve the ;
Korean
war,
although
every
scoffing voice at the National
Press Club bar says this is a *
fantastic phony. Europe, confi¬
the Republicans
gave
sponsibility
without
Then
might. be
hut- f
a
objects
ened.
it,*
see
however, the election in
in the House
now no agency
—
majority
Democratic
the
year,
that
occurred
vacancies
and
so bitterly opposed Truthey will support Eisen-.
bower, and so everything will,
be hunky-dory.
,
erners
There is
active
~
man,
-
ments..
..
deaths
As
works"
depres-
a
by the Federal Adminis-;
1951.
never'
Jack's horseshoe
1931,
that because the South-
assume
'..
(was with. Jack Garner.
After-,
narrowly wresting control from ;■
"the Republicans" on Marclr 20; ;
this
in
many
c
in the first ,
luck.
So it !
Eisenhower,
of
Drive for Liquor Tax Reduction
'
•
V;';./, \.'v:'
■
still
are
thy
case
the
place,
83rd
public
case
v
counts.
which
have
Mr.
,
the
be
to
seems
useful
pal governments to plan school
houses, firehouses, etc., for wor¬
>
also
t
.
;La
•ding-donging state and munici-
term. Mr.
Smith.
A1
beat
of
trot out in
tration.
-
<L
tritely called the "honey¬
period with Congress,
which may last a month and
may last a year. It is the period '
after the
honeymoon which !
-
especially those with longer
memories, as they contemplate
to
fist,
moon"
tive Eisenhower Administration,
what
1*,#
HONaULU BRANCH
is
;
friends of the prospec-
more
"t
,,,
*.%' '
.?<!?•.:'/
Eisenhower also will have what ;
This is the consensus which is 7
and
is
It
near
Secretary.; '
doned
popular, too, after
was
first
he
:
coming to be adopted by more
view of the
a
,•■...■•, ■
.
lost in advance for the
Administration.
new
:
i*
sion, has been completely aban-
imfwwwtmw
it were,
~
*****
Incidentally, the old idea of
"shelf
M. %J Vwt
Bekiml-the-Scene Interpretation*
kJ
>
thq jqumerous /'indug- .J'-
try advisdify equficil^^^tiiat%ouI(i-.^s:,r
back planning, as. a regi^ar part ^ ^
"Mqrrthe'1 Department under/the c ;•
'
'.J
«
-
rVI1
T.''*
■
I
,
*
i
~
tention of
BUSINESS BUZZ
Wi'~"A-
Thursday, November 13,1952
...
Square, Boston 9, Mass.
Telephone
HUbbard 2-1990
■
•
Teletype
BS 69
@FedFRASER