Full text of Commercial and Financial Chronicle : November 4, 1954, Vol. 180, No. 5374

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I

/Ml '

•

u Niv

tnairy
OF MICHIGAN

GAS INDUSTRY FEATURED IN THIS ISSUE

Re*. TT

Volume

Number 5374

180

New York

8

nw

P<»t.

Cents

Price 40

7, N. Y., Thursday, November 4,1954

a

Copy

EDITORIAL

The Pitfalls of

The Foiward March

As
He who would

sibly

We
It

Oi the Gas

the

on

morning after—or pos¬
week after—undertake to interpret

even a

the election

results

this

President, American Gas Association

year

the

On the basis

political arguments advanced,

is almost

one

| obliged to conclude that all candidates adopted

| precisely the policy which Mr. Stevenson at¬
tributed to Vice-President Nixon—that of

figuring out what to do to win the election and then
j doing it. Of course, the strategists of both parties,
»

j

at least

one

fixed

eye

of all this will be
,f

during the next two

year

What the effect
of public policy
the future only will

1956.

on

the

on

course

years,

disclose.

October, Frank Smith,

-I the

to us,

Democratic

toward it

candidates.

party,

even

States

Canada.

of the so-called conservative

some

;

to their

as

own.

with his penchant for phrase-making, paid

his

respects to this question by labeling his opponents
as

the party

taken

■

r

Earl H. Eacker

opportunity
local

and

to

buying push the stock mar¬
stratospheric heights?
Is
there enough common stock to sat¬
the
potential demand of the
pension and other funds that
decided
common
stocks are
have

isfy

new

"safe"

our

truth of the matter is, unfor¬

tunately, that the Eisenhower Administration,
though more conservative and more hope-inspirContinued

on

page

20

if

areas

understand

why the local problems of

one

Continued

of

Jersey,

of

Mr.

American

Gas

address

•Presidential
vention

the

Oct. 11,

Eacker

at

the

area

on

While

over

36th

Annual

Atlantic

Association,

City,

the

thinking

vestors.
may

26

find that
of

a

—

brief

this

article

jV

cannot

all of these questions it

will

tide

1928-29

more

of

common

stock

in¬

If

they ignore them they
potent than the speculative

will

upset their program.
"Dollar
averaging," which calls for monthly buying of a eonupsurge

Con¬

New

Continued

1954.

SECURITIES NOW IN REGISTRATION

*

buy

suggest how they should enter into

Thomas J. McNichols

differ

page

you

reckoned?

in¬

answer

One has only to fly over the vast

dustry.

only

/-

regularly
month in and month out — ignoring
price changes?
May not this new
buying be more potent as "bull
market steam" than anyone has

and

and
discuss
problems with

literally hundreds of people of all segments of

a

can

such

meet

industry

presumably

led

ket -to

to

on

addresses

theory

individual investors to

and

be bought without exercise
of judgment as to value?
And can

stocks

Western

called

been

major

averaging"

institutional

from

me

to scenic

have

I

many

"dollar

section of the

every

and

the

belief that quality

which I have flown and to visit the sections I visited to

of "budget-firsters."

Of course, the

Has

conservative

participated
in many more
meetings and conferences. I had the

Stevenson,

Mr.

to

have

elements in that party, seemed about as nearly
akin to the party of Messrs. Roosevelt, Truman
and Stevenson

"may find that a tide more potent than the
upsurge of 1928-29 will upset their pro¬
gram." Holds pension funds are the most rapidly
increasing force in the investment market, and these
funds, along with the stock acquisitions of insurance
and investment companies, provide a steady and growing
stream of new money for the securities market; and if
institutional buyers continue to make regular purchases
of a small group of quality stocks, their concentrated
buying will further depress stock income yields.
speculative

very

the Eastern Coast
deliver

?

a

practically

United

attitude

their

In

ered

of the members of the President's

some

been

;

investors

short 12 months
in which to
accomplish anywhere
near
what
I
hoped might be ac¬
complished toward the goal to which
Frank pointed.
My course has cov¬

however, that one of the "issues"
1 which the Democratic party never tired of trying
i 4o bring into this campaign needs careful watch<
ing in the future. It was constantly harped upon
by a number of the pressure groups supporting
seems

then President,

your

a

"dollar

of preparation for action.
He presented a great
challenge to me.
It hardly seems possible to me that
12
months have passed
since you
elected
me
your
President.
They
have

It

number of questions regarding the effects oI
averaging" in the purchase of stocks, Prof.
McNichols claims that if these questions are ignored,

Posing

whom you need no introduction, stood before our annual
convention and pointed to a year of decisions made, a

party, laid out their campaigns this year with

;

Northwestern University

Last

but perhaps most particularly the Democratic

t

Assistant Professor of Finance,

Retiring President of American Gas Association discusses
developments and problems in the gas industry, which
now, with assets of over $13,500,000,000, is sixth largest
industry in the nation. Stresses need for improved public
relations of the industry and the widening and intensifica¬
tion of the use of gas in homes and industry. Says vast
opportunities lie ahead, and calls attention to final draft
of the Gas Transmission and Distribution Pipe Line Code.

of

of most

By THOMAS J. McNICHOLS

President, Boston Consolidated Gas Company

would be a rash
Nothing like real homogeneity existed or
! exists in either of the major parties. Personal
; villification all too frequently beclouded
all is¬
in local contests.

Averaging Policy

Industry

By E. H. EACKER*

man.

sues

Dollar

a

Underwriters, dealers and investors in

on

page

18

cor¬

complete picture of issues now registered with the SEC
potential undertakings in our "Securities in Registration" Section, starting on page 37.

porate securities are afforded a

DEALERS

and

State and

m

Established

U. S. Government,
State and

ALL
*

Municipal

CALL

ONE

Complete Brokerage Service

£

U. S. Government

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—

*

All Corporate & Foreign

CHEMICAL

+

New

BANK

New

Preferred and Common Stocks

»

THE NATIONAL CITY BANK

Sixty Years of Brokerage Service
bond

department

w

Members N. 7. and Amer. Stock Exchs.

115

Broadway, N. Y. 6

Bell

*

System

OF NEW YORK

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Teletype NY 1-2152

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WALL

Bond Dept. Teletype:

To

Active

Refined

—

—

Markets

Dealers,

NY 1-708

Banks

T.LWatson&Co.
Liquid

Detroit

Beach

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•

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Brokers

Executed

Canadian Exchanges At

CANADIAN

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of New

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YORK

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All

Regular Rates

Analysis upon request

DEPARTMENT

MONTREAL AND TORONTO

Goodbody & Co.
MEMBERS

Public Service Co.

DoMDfioN Securities

YORK

STOCK

EXCHANGE

6RPORA310N
40 Exchange

Place, New York S.N.Y,

IRA HAUPT & CO.
Members New
and

other

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CHICAGO

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WHltehall 4-8161

Boston

York Stock Exchange

Principal Exchanges

Broadway,

WOrth 4-6000

}.DIgby 4-272T

YORK

COMMON

Teletype NY 1-2270

Members N. Y. Stock Exchange
American Stock Exchange

CHASE

THE

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k

."

Bond Department

Maintained

and

SECURITIES
Commission

Raw

Miami

•

CANADIAN

to Our Customers

SUGAR

Inc.

Trade

Exchange

Amsterdam, Holland

STREET

NEW YORK 5, N. Y.

Cotton

N. Y. Cotton Exchange Bldg.
NEW YORK 4, N. Y.
*

Hollywood, Fla.

★★★★★★★

122 Years of Service

ol

Board

Orleans

Chicago

^

Net

LAMBORN & CO., Inc.

Exchange

Exchange,

and other exchanges

^

MABON & CO.

Bonds

'

Exchange

Cotton

York

Chicago

Bonds

Exchange

Stock

Commodity

^

30 BROAD ST.

Stock

York

American

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Municipal

Members

Municipal,

State and Revenue Bonds

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1856

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New

Securities
telephone:

ON

MARKETS

N. Y. 6

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(1826)

The Commercial and Financial Chronicle

We position

The

and trade in

Security I Like Best

This
Forum

A continuous forum in which, each

Mexican

week, a different group of experts
advisory field from all sections of the country
participate and give their reasons for favoring a particular security.

Light & Power

(The articles contained

J.
*An initial dividend of 25c

has

Funds

payable

November

this forum

offer

as an

Manager,

where

fits

available

American

WOrth 4-2300
BOSTON

Direct

Wires

gas

propane

country.

About
years

30

Dallas,

in

Hartford, Houston, Philadelphia,

sulted

of

by¬
product c.
petroleum. This
it

Since 1917

ural

ffcftONNELL&fo
Members

York

Stock

120

Exchange

Stock

American

Exchange

BROADWAY, NEW YORK
TEL.

REctor

strides

S

2-7815

manner

same

as

It

ities

Eastern Canada

place the three

in

take

DONALD

S.

Here

use.

1%

million

were

are

Corporation

The North American

i

m

now

was

tomers

served.

are

18,000

cus¬

As the indus¬

the

Korea

been done

forts

evident

American Furniture

natural

users.
Here was a
Propane, that could
compete with electricity, manu¬
factured gas, oil, wood and coal.
Not only could Propane compete,

,

Commonwealth Natural Gas

it

Dan River Mills

STRADER,TAYLOR & CO., Inc.
Lynchburg, Va.

would

addition, of

nuisance

a

in

in

Propane

to

John B.

the

to

4s, 1990

sales in the United States

illustrate

of

the

remarkable

Year

Pratt Read Co. Common

Samuel K. Phillips & Co.

1934_

1944

Pennsylvania Bldg., Philadelphia

1951

N. Y. Phone

1953——

COrtlandt 7-6814

Bayer

in

7% million

the

U.

It

uses.

is

brooding.
tractor

(9-PpmhunWi 8l r€pJ.

"

operate
and

New

York

Stock

Exchange

25 Broad St., Mew York
4, N. Y.

Phones HA 2-9766

Tele. NY 1-3222




It

fuel.
on

is

in

much

frr

are

of

Let's

vestment

in

of

Superior
simple one—
Fund

$1.40

$25

par

value

The
on

pre¬

Toronto

Plans
common

as

buses

gasoline
con¬

tur¬

its his¬

see

where

the in¬

are

listed

Stock

are

underway to have the
shares listed in the near

without

use

on

Exchange
and have been
selling at about $24,
at which price the
yield is 5.83%.

is

of

presently

Preferred shares

the

At

used

are

return

a

The

an

the

present time the
$3.15 bid per share

imbalance

demand,
often

tomers since
been

in

1951

reflected

in

sales

and

cus¬

has/of course,

earnings.

.Conservative estimates for 1954
are as follows:
•

Debenture

Interest

five times.

save

N.

Y.

tax

WELLINGTON HUNTER
ASSOCIATES
15

Exchange PL, Jersey City 2, N. J.

HEnderson 5-6005

Teletype J Cy 698

•

Direct N. Y. Phones:

WOrth 2-4578-0

the

Of

serious

arises

The

^OVIR INOf

supply

and
which
so

condition

following

rapidly

a

large-scale

expansion of
productive capacity.

industry's

an

for

reason

Government

this favorable sit¬

covered

<

—

.

the

at

facilities

reach

full

capacity

any

A

Continuing Interest in

uses?"
mid-1952 there

the report
the

as

was

released

was

Southern Advance

"Paley

composed

Report")

of

group

of

Kalamazoo Vegetable
Parchment

independent

an

and

Grinnell Corp.

the

aided

by ex¬
perts drawn from government, in¬
dustry
and
universities,
spent

many

months

of

intensive

to

past,

present

and

fu¬

ture

supply and demand. Of im¬
portant significance with respect

to

the

outlook

for

of the aluminum

future

industry

Keyes Fibre Co.

study

of world and U. S. materials with

respect

Bag & Paper

(sometimes referred to

President's Materials Policy Com¬
mission. The Commission, which

BOENN1NG & CO.
Philadelphia 3, Pa.

growth
are

the

following excerpts from that

re¬

port:
"Aluminum
its

'normal'

materials
can

the

has

demand

In

economy.

it

is

not

yet found
place in the

relative

in

ning markets
ing materials,

the

of

the

almost

process

away

Ameri¬

alj^its
of win¬

Over-the-Counter

Quotation Services
for 40 Years

from compet-,

as already cited in
discussions of the other non-

ferrous

metals.

But

markets

gained from the nonferrous

met¬

National Quotation Bureau
Incorporated

are

unlikely to be quantita¬
tively the most important causes

of
cov¬

saving^

is

pledged to pur¬
prevailing prices during
five-year period after new

chase

als

-Preferred share dividends

ered—3% times.

between
a

effected

uses

offering.

growth

to

industry
any

citizen's

Cumulative

of about 5V4%.

market

being

propane,

uses.

is

Sinking

debentures

future.

using it as a fuel for
bine railway engines.
So

5V2%

trading to give

chicken

wide

it instead

The

is

It

and

ducted

tory and its

a

Warman

and

'

In

capitalization

making

in

Thousands

experiments

The

Redeemable

of Propane
Besides the do¬

drying

Office

345,500 shares Common Stock.

employed

tobacco

Head

S.

is

Stratford, part of the output of the new faand Sim-.? eifftfgs^ not sold for commercial

Peterborough

The

Of¬

located

ferred shares.

chemicals and rubber.
in

are

Belleville,

40,000 shares

heating, clothes drying and incin¬
eration, there are many industrial

Liquid.

Simcoe.

Debentures, due 1974.

users

A.

Barr'ie,

coe.

and

showrooms

there

threat
Donald

us

uation is the fact that the Federal

storage plants
Maple, Stratford,

Place

and

$1,000,000

mestic uses, such as refrigeration,
home heating, cooking, hot water

Badische Anilin

Members

S.

1954

increase

Outstanding is:

England, has doubled its sales
regularly every four years since
its inception in 1922.
There are
now

37%

Propane Limited is

A representative U. S.
company,
which
operates mainly in New

Hoechster Farben

of

with

minimum

a

and

Company's

Guelph,

i

*Approximate.
Active Trading Markets in

months

at

And

Toronto.

56,427,000
223,580,000
898,071,000
4,227,275,000
*4,900,000,000

1939

Members Phila.-Balt. Stock
Exchange

Farben

at

223,000
9,931,000

1929

PH 375

growth

Gallons

1922

earlier

an

further

a

Carleton
fices

the

six

located

are

industry, even during' the
depression years:

Leeds & Lippincott Units
Walnut Apts. Common

Teletype

The

be

pane gas

Pocono Hotels Units

on

the pervious year.

over

recognized in the U. S. A.
These figures on total annual pro¬

Public Service Coordinated

first

showed

long before the ad¬
vantages of Propane as a fuel came

Stetson Pfd.

is

financial

and otherwise.

industry

$717,600 in 1951, $1,126,400
1952, $1,817,000 in 1953 and for

in

equipped

not

was

Canada

the

ditions,

both

been

were

be

residences.
It

Therefore,

has

Trade

un¬

extremely

c o n

fraction of

a

market

sharper part of the growth trend.
As an example of this, Total Sales
(which includes appliance sales)
of
Superior
Propane
products

be¬

elec¬

course,

yet, only

as

potential

tapped.

were

failures ceased

power

that,

the

its simplicity in use re¬

of
In

rare.

be

do

discovered

was

cleaner and

pairs to Propane appliances
tric

TWX LY 77

The flame

be hotter and

to

it

that

has

favorable

similar to that in the U. S.
only difference appears to

The

this

der

available that the growth trend is
very

of the jobs better than the

others.

cause

I

found

was

many

Life Insurance Co. of Va.

LD 39

gas

fuel,

new

Bassett Furniture Industries

Camp Manufacturing

the manufactured gas and

Sun Uranium

program

and

however, it is
sales
figures

DEALERS

Oil & Gas

Wyoming Gulf Sulphur

expan¬

obtain

&

Atomic Power Uranium

post-

sion

as

BROKERS

South Texas

doubled

try is still in its infancy in Can¬
ada, overall figures are hard to
assess;
from
the

Broadway, N.Y.6 COrtlandt 7-5680

has

n u m

opportunity for those who
lived
beyond the reach of gas
pipelines to have the same com¬

and

Branches
Bankers

Trading Markets for

The productive capacity of
primary
alu-

by

than

1897

Tokyo—70
Investment

aluminum

lons

more

&

$2.50 Convertible Preferred Stock

been

and

Office

Brokers

111

Kaiser Aluminum & Chemical

running close to 4V2 million gal¬

an

Trading Interest In

Established

Members, New York Stock Exchange

gallons of

Sales

propane per year.

write

or

Yamaichi

Home

tage.

being sold

knowledge

Japanese potential.

Securities Co., Ltd.

9,300

whom

investors with vision—

Call

WARMAN

industry at the present time en¬
joys a unique position of advan¬

to

of

Su¬

Granbery, Marache & Company,
New York City

ad¬

the

customers

offices

one

industry. This com¬
Superior Propane Limited,
being in 1951. It was
formed to acquire the Essotane

nat¬

of

branch

our

investors with

likely to

very

securities

to

have unusual appeal

may
to

Propane Limited close to
the top of each of their
categories
in the relatively near future.

into

came

NY 1-1557

SECURITIES

perior

large
business.

to

are

wires

sub¬

Gas Division of Imperial Oil Lim¬
ited.
At
that
time
there were

industrial

or

equipped

Exchange
Exchange

JAPANESE

industries.

increasing trend toward

made

propane

Direct

urban living and the
increasing
popularity
of
gas
products
in

pany,

known as
a marked
effect on the standard of living
of people on this continent. Here
for the first time was a gas that
could be shipped anywhere for
home

has

the

Stock
Stock

Birmingham, Ala.
Mobile, Ala.

is

have

to

was

that

in

well

fastest growing

our

the

is

Limited

gas"

"bottled

This

Propane

is

there

York

American

New Orleans, La. -

largest companies in
business in Canada.

not

do

for propane.

Ontario

of

be¬

of

who

Propane

the

propane

The

in

vantage of future growth possibil¬

manufactured gas.

or

in

company

by-product,

new

was

used in the

users

Here

found, could be compressed
to a liquid and placed in cylin¬
ders for shipment.
Upon release
from the cylinders it resumed its
gaseous form and could then be

Rights & Scrip

New

pective

gaseous

Specialists in

the

When

limits

those

New

HAnover 2-0700

common

It is capably managed.
It has a
healthy working capital. " It is in
a
sound position to take full ad¬
vantage of the fact that the Pro¬
pane Industry is proving to be one

large

far

of

the

conscious.

out

Members

share.

per

Superior
one

a

have the pipeline at their door
become in very short order pros¬

unusual

an

Earnings available for
shares—35c

available

gas

reaches

and

of

everyone

the economic

pipeline

the

becomes

Steiner, Rouse & Co.

an

in
a

advertising.

becomes

area

yond

result

pipeline

Advertising

re¬

in

a

the

in

discovery

gas

through

United

the

States

Providence, Portland, Me., San Francisco

will

Co.,

19 Rector St., New York 6, N. Y.

comes

advent

companies having

natural

ex-

periment

pipeline

The

&

(Page 2)

Members

available.

pipeline

gas

West.

amount of free

ago,- a

chance

to

Boston, Chicago, Cleveland,

the

Bought—Sold—Quoted

enjoys

about it when

more

natural

from

making in

Street

State

the

new

a

this

Liberty Building
Private

realize

New York City.

is just com¬
and we shall hear

own

&
Chemical
Convertible
Pre¬
Stock—Donald S. War-

Granbery, Marache

man,

propane

great deal

Manager,
Co., Ltd.,

&

$2.50

ferred

gas

Louisiana Securities

J. Ross

—

Assistant

Thomson

Aluminum

Corp.

like"

I

This fact is

natural

Ontario

ing into its
a

Kaiser

and

in that Alberta has

one

unlimited

do¬

industry is in

Teletype NY 1-40
84

for

the

Exchange

New York 5

OFFICE:

cylinders

Canadi¬

that

PHILADELPHIA OFFICE:

Lincoln

In

use.

ans

1920

Stock

in

mestic

Member

120 Broadway,

Alabama &

Selections

Toronto, Ont. (Page 2)

picture

scene.

great use there.

a

—

Oborne,
Nesoitt,

comparatively new
It was probably first

interesting

Few

the

used in Alberta and it still

People don't need pipelines

Corporation
Established

Week's

Superior Propane Ltd.

nor

is

Canada.

have gas in their homes. Few
Canadians are aware that gas is

New York Hanseatic

he,

to

investment

the

on

Propane
to

into

"the

comes

to

Associate

Thursday, November 4, 1954

Participants and

Their

sell the securities discussed.)

to

Canada

Superior Propane Ltd.

24.

intended

not

are

OBORNE

Nesbitt, Thomson & Co., Ltd.,
Toronto, Ontario

December

15, to stockholders of rec¬
ord

ROSS

Assistant

de¬

been

in

they to be regarded,

are

Common*

Can.

.

.

in the investment and

$1.00 Preferred

clared

.

aluminum's

future

Continued

expansion,

Established 1913

46 Front Street
CHICAGO

on

page

New York 4, N.Y.
SAN FRANCISCO

17

V

-

Volume

180

5374

Number

.

.

.

(1827)

The Commercial and Financial Chronicle

I N D E X

Prospective Changes
In the Economic Trend
The Pitfalls of

By SUMNER II. SLIGHTER*
Lamont
{»

—Thomas J. McNichols.

guide to the business outlook, Prof. Slichter discusses the

H.

—Sumner

Slichter

In

year

is

well

peared

the

a

ap¬

beginning
the

of

■

gen¬

has

remarkably

been

since

ever

year—

period of 10

months.
sonal

Per¬

incomes,
which

upon

when adjusted

Don't Throttle the Private Works Program

,-:;^Benjamin

-

F.

—James M,

Symes

changes,

have

scarcely
moved since

last January.

The
H.

Slichter

of industrial

is

same

of

true
Sumner

the

seasonally ad¬
justed index

production.

New

or¬

ders of manufacturers have

scarcely changed since April.

The
both total ex¬
penditures and total output for
the
entire
economy
show no

quarterly figures

on

change for the first three quarters
At

1954.

since

time

other

no

these

have

through
which

available

been

American

has
been

economy

long period
output and total
have
remained

such

total

penditures

in

a

ex¬
so

steady.
both

believed among

generally

economists

and

businessmen

that the present period of stability
will be followed by a period of

expansion rather than by a new
decline
in
production.
An ex¬
ample of the .forecasts of early re¬

is the report of the Com¬

covery

mittee

Economics of the Busi¬

on

Advisory Council of the Sec¬
retary of Commerce at the Hot
ness

Springs

last

meeting

that

week,

business in 1955 would be greater
than

in

low

the

levels

the

view

that

of

1954, though slightly be¬

stability

of

will

current

be

share

I

1953.

the

period

followed

by

expansion rather than contraction.
Nevertheless,
clude the
ent

and

possibility that the pres¬
stability will be
by

than

drop in business

a

by

The present
the

for

reasons

economy

And cer¬

rise.

a

tainly one sholud
expansion without
definite

ex¬

recent

terminated
rather

cannot

one

forecast
having quite
not

so

doing.

overall stability of
the result of a

is

balance

between

making

for

some

influences

expansion and other
contraction.

influences making for
♦An

:he

ing,
more

—Earl H. Eacker_

in¬
continue

to

likely to change.

'

/

Divergent

For many years we

specialized in

Digby_;

the

Situation

Bought—Sold—Quoted
f.

.

powerful in¬
fluence
making
for
contraction
has been the economic policy of
the
Federal
government.
Since
the fourth
quarter of 1953, the
By

far

Federal

government

purchases
by

most

Gearhart & Otis, Inc.

of

cut

and

goods

$10

over

has

billion

.

individuals

saving

tions about

levels

current

into

gone

the

of

since

form

of

lower

of

the

i

Officers'

Slate,

felt

has

A second

ditures

of

drop in

the

LEASEHOLDS
HAZEL

and

Bank

for

Insurance

current

of

business

Einzig—"British

among

I

efforts

as

a

neutral

-, |

virtually

tre^ulfcraFtif
comes

has

as

derived from the selling of

inventories
used to

appear

buy goods.

to

have

been

impact of the cnange"iirthe
ifTvgmray policy Of

felt trrthe third ancTTourth

accumulating to reducing in-

iehtSfieS ilfd bring^rabout a

the drop In' Federal

Offsetting

Continued

1954.

Members New Yo.k

on

page

Stock Exchange

ST., NEW YORK 4, N.

TELEPHONE HAnover 24300

Chicago

•

Nashville

►

YJ

TELETYPE N. Y. Z-5

*

•

Schenectady

&

30
—

32

Glens Falls
Worcester

more

40

Exchange PL, N. Y.

23

News About Banks and Bankers

Observations—A.

May

5

Governments

31

Wilfred

i

Our

Reporter

Our

Reporter's Report

on

42

CORPORATION

27

Securities

Railroad

AEROVOX

15

Securities

Utility

Public

41

Offerings.—

Security

Prospective

GETCHELL MINE,

37

Securities Now in Registration—

Securities

GLASS

34

Salesman's Corner

The Market

The

.

.

.

HAILE

5

Gardens,

Drapers'

London,

E.

C.,

Preferred

n

INC.

Common

Eng-

_

1954 by William B. Dana
Company

FINANCIAL CHRONICLE

&

TEMCO AIRCRAFT

land' c/o ?d™rds
Copyright

MINES, INC.

REEVES-ELY LAB.

44

—

1

FIBERS, INC.
Common

2

The State of Trade and Industry

COMMERCIAL and

INC.

16

and You—By Wallace Streete

Security I Like Best—

Washington and You

CORP.

Reentered as second-class matter Febru¬

Reg. U. S. Patent Office

25, 1942, at the post office at New
York, N. Y., under the Act of March 8, 1879.
ary

B.

Park

DANA

COMPANY, Publishers

New York

Place,

2-9570

to

7,

WILLIAM

DANA

N.

Y.

9576

HERBERT D. SEIBERT, Editor 4

1954

Every Thursday (general news and adIssue) and every Monday (com-

plete statistical issue — market quotation
records, corporation news, bank clearings,
state and city news, etc.).
Offices:

3,

IU.

135

South

La

(Telephone STate

Salle St.,

2-0613);

In

Rates

Dominion

of

Canada,

U.

per

"year

$51.00

per

Other Publication

rate

of

account of the

39

year.

Bank and Quotation Record — Monthly,
$33.00 per year. (Foreign postage extra.)
Note—On

INCORPORATED

to

other Countries, $55.00 per year.

the

WM V. FRANKEL & CO.

S.

States,

United

Umon.'^Ma'So

PubM.her

vertlsing

Other

Subscription
Subscriptions

SEIBERT, 'President

Thursday November 4,

Chicago

fluctuations in

exchange, remittances for for-

BROADWAY, NEW YORK 6
WHitehall

-

Teletype NY
Direct

PLEDGER

&

3-3960

1-4040 & 4041
Wire to

COMPANY,

LOS ANGELES

elgn subscriptions and advertisements must
be made In New York funds.

"7V
X

in

securitte::

MACKIE, Inc.

HA 2-0270

10

redue^

lion in., the total buying of goods.

markets

over-the-counter

Singer, Bean

quar-

the shift

TSffToPastTe^
'Tfom

14
35

—

The deflation¬

ary

250

trading

Teletype NY 1-1825 & NY 1-1826

whole, the in¬

a

maintain

18

Notes

NSTA

u ncKanged'gj&L--

tbe first' oTthO year*

business

for

Prospects"

ratfiST

of inventory reduction

remained

Exchange

Stock

Funds

Mutual

|

than a aeiiatibnary influence becaU^dufihg the last four quarters,"
rue rate

r

Washington Ahead of the News—Carlisle Bargeron

Indications of Current Business Activity

count

\tmnin«*i»»'"f-

these

8

We

than

concerns

inventories.

reduce

to
j

TEMCO

44

deflationary influences

efforts

ine

include

to

HYCON

44

in the Investment Field

Coming Events

:

BISHOP

31

Stocks——

Bookshelf

Man's

Business

From

usual

FILM

COAST

Cover "<

(Editorial)

ter.

is

24

GULF

Dealer-Broker Investment Recommendations

Spencer Trask & Co.

•

MANUFACTURING

,

_

On a sea¬
sonally adjusted basis, these out¬
lays in the third quarter of 1954
were running at about $1.5 billion
a year less than in the first quar¬

PREFERRED STOCKS

Boston

,

Regular Features
See It

REctor

BROAD

Cities Industrial

expen¬

concerns

EXPRESS

AIR

the

plant and equipment.

It

22

GUILD

As We

business

T eletype
NY 1-576

BURTON

deflationary influence

the

been

Telephone
WHitehall 3-2900

22

—

in October

Pick-up

benefits of tax cuts.

has

Dept.

Hollywood Beach, Fla, Announced., 24

NAPA Business Survey Committee

however, has felt the ef¬
expenditures a
it

_i_

IBA Convention Plans at

taxes

savings

fects of the cuts in

than

Trading

INTERNATIONAL

spending
since the last quarter of 1953. The

sooner

F. Reilly, Manager

Investment Bankers Association of America Presents
New

from the cuts in Federal

economy,

Discrimination

on

(Letter to Editor)___—.

"Give-Away"^——_.

of

Shibboleth

other words, the
government has passed

the

John

Guaranty Trust Co. "Survey" Attacks Political

have

first

Keith Funston

Against Over-the-Counter Broker

In

two-thirds

about

(Boxed)-—

Joseph Mayr Protests to

at

year

the

10
15

and

corpora¬
a

income

of

effect

year.

Federal
in

and

$7.4 billion

English!

Plain

In

services

Tax reductions

a year.

Sidney Brown Sees Economic Illusions in Emerson
Schmidt's Money Supply Views (Letter to Editor)

Trinity Place, New York 6

Unlisted

since the first quarter of 1954 by

$5.7 billion

74

8

Recovery

its

year

a

Bank "Letter" Forecasts Modest Business

City

National

25




—9

—12

—

the Present

in

WILLIAM

Manchester, N. H.

6

._

Industry in Action—J. Theodore Wolfe—*.—

The Gas

_

•

Stylon Corporation

■*

—__________i._-:—

The Natural Gas Act—S. L.

Trends

Economic

Adams

S.

—K.

Cover

——

Regulation Threat to Natural Gas Supply

Federal

and which

less unaltered

or

South Texas Oil & Gas

Forward March of the Gas Industry

The

neutral

and

likely

are

Articles About -The Gas Industry

and. at¬

Published Twice Weekly

Albany

Standard Sulphur

19

—:

Standard Uranium

The

25

14

_

prob¬

II

by Prof. Slichter before
England
Bank
Management

Conference, Boston, Mass., Oct. 29,

have

13

H. Ladd, III—

Stockholder—S. Whitney Landon__.

Stock Market—Roger W. Babson_,_

The

which contract¬

expanding,

fluences

address

New

been

will

Which

decide

to

little

is

It

11

1.

The Over-the-Counter Market—Edward

have

influences

several

tempt

on

figures

but

STREET, NEW YORK

Telephone: WHitehall 4-6551

not

much

are

99 WALL

«

continue to be neutral
longer.
Let
us
examine

ably

6

Can Railroads Meet Emergency Defense Requirements
-

quick sales!

Obsolete Securities Dept.

;■

L__

Fairless

obsoletes!

today's
for

us

4

Encouraging Signs of Business Uptrend—Harry A. Bullis

seasonal

for

the

except

4

impor¬

are some

which

power

depend s,

of

THAN YESTERDAY'S NEWS

Drugs and Food for the Home—Ira U. Cobleigh___

-

-

3

?_

between expansion and

as

contraction

consumer

buying

influences

neutral

the

stuation

have

to

stable

that

known

business

addition, there

tant

The Long Period of Stability
It

NOTHING DEADER

'

divergent trends in the present economic situation.

Our Friend the

eral

Cover

_

._

See

and reviews
Fore¬
sees
as
prospective changes in the trend of the economy:
(1) the reversion of Federal fiscal policy from a contractive
to a mildly expansive influence; (2) the increase of purchase
of goods and services by State and local governments; (3)
inventory reductions; (4) continued rise in outlays for nondurable goods;
and (5) heavy expenditures for housing.
Reviews probable characteristics of the recent recovery.
stability that has characterized the current

the

AND COMPANY

Policy

Prospective Changes in the Economic Trend '•

-

_

a

Page

University.

University Professor, Harvard

t

As

Dollar Averaging

a

llCHlfnSTflli

B. S.

Articles and News

3

INC.

4

The Commercial and Financial Chronicle

(1828)

-'

■

$60 million with roughly
current

ratio

of

About

Enterprise Economist

consideration

of

a

rounded

well

of

with

corporation

cash

poration

is

and

heeled

well
to

seems

Products

Home

rounded,

well

both

Cor¬

financially; and

1926.

in

split

sort of an

nancial

of which

pio¬

neering

lines

antibiotics.

G

der

i g e r that

e

be

may

profitably

forward

added

ing

and

It

Bicillin.
the

ethical

by

virture

it

sold

in

Clapp's

last
Ira

net

both

in

motion

sales and

be the

HPT

in

metics.

gross

And 1954

earnings.

thanks

best year yet,

present

with

ahead

products and taking on some in¬
teresting added products such as

the

This

section

Whitehall

is

embodied

Pharmacal

Co.,

and here you find brand names
extensively dinned into your ears
(and your medicine cabinet), by
long continued, and quite effec¬

tive

products,

advertising. When you brush
teeth it's Kolynos. If your
tummy is on the Fritz, there's
BiSoDol
to
straighten you out.
If you're stricken with a head¬

foods

ache

"Easy Off," a fast selling oven
cleaner, Dennison's line of food

and certain processed
supplementing present mer¬

chandise lines.
Just

indicate

to

effective

how

has been this diversified develop¬
ment of manufacture

have

sales
lion

grown

1941

in

to

and sale, net

from $44 mil¬
$188 million

over

with a $200 million
remote on the
that can pro¬
ceed
like this,
and consistently
translate, year after year, these
wholesome increases in gross, into
net earnings, offers the best sort
of evidence of sustained good

this

year

figure

—

too

not

horizon.

A company

management.

Actually,
American
into

Home

four

consideration

of

Products falls

separate parts—its four

of manufacture
distribution:
(1) Ethical
divisions

major
and

any

drugs; (2)
Cosmetics;
Household

products.
at them one by one.
Ethical

and
(4)

Packaged Drugs
(3)
Foods; and
Let's
t

look

,•-

.

your

(alcoholically or otherwise
induced) Anacin tablets are in the
bottle

drugs account for 45%

perhaps as much
as
50% of net profits. They are
deployed through four subsidi¬

aries, the best known being prob-

I

U. S. MERCURY

1
V/'A

second

shelf, dear!
an angry corn has you
limp¬
ing, there's Freezone. Edna Wal¬
lace Hopper
cosmetics are cal¬

If

culated to make the little
look

like

line,

and

board

their

All

these

are

products

of

across-the-

also

There

65%

of

$2.40
year

net, on the basis

with

regular,

earnings

indicated

to

also

mail

the

few

and
figure

While

has

the

HPT

over

and

is

to

last year)

sales

has

and

evidenced

profits

in

dip

a

ing

a

sale gain that should
between 6%
and

New

come

net

racked

up

1953

7%

Eve, and the
distillate is quite

cluding

wide

a

list

of

packaged

sought in

do not deserve to

ity, taste, convenience and speed

overlooked.
brand

and processed foods

offering qual¬

preparation to American house¬

wives.

To

this

line

has

been

added the recently acquired Dentomato

catsup

tomato-derived

and

other

items.

Crisp ad¬
good job for

such

names,

as

the

CORPORATION

M

298,000 SHARES

substance

to

the

Here you
find 3-in-l Oil, for
grinding lawn mower or squeaky
sewing machines.
Aerowax and

Wizard Wick

Common Stock

plastic

plus

also

are

woods

on

the

OFFERING

PRICE;

in brief, is a panorama
of company activities and while

$1.00 Per Share

the

actually

Company formed for the

in

the

exploration for

mercial

bodies

of

prise

claims located

McDermitt
Humboldt

in

pur¬

com¬

£2

com¬

11
I

the

Mining

District,

County,

Nevada.

W".

Copies of the offering circular

New York 4, N. Y.

I

g ^

^.

||

HA 2-9290
i

.




as

Of

are

this

1

a

side-line.

the

breadth

and

operations
of

variety
that

so

some

been

Tilton

boom shows

population
trend
,

(7) Technological invention,
evidenced by

research

other

and

energy

promise

great

of

contributions

in

as

atomic

fields,

gives

unprecedented

to

economic

our

progress.

lation
in

and

continued

assures

demand

for

increase

consumer

houses

more

for

be

This

International

(9)

accounts

in

are

goods

to

years

commercial

reasonable

bal¬

Other countries have been

ance.

able to build up their
make

progress

bility.
(10)

The

reserves

toward

so-called

and

converti¬

"built

ini"

stabilizers—social security, unem¬

ployment insurance and long-term

building of amortization of mortgage debt—
not: only the help to maintain the confidence

gains,

but

also

the

modernization

of the

people.

of

Conclusion

dwellings and business structures.

(7) A prospective over-all gain
in highway construction of about
10% to 15% is indicated in exist¬

ing plans for major turnpikes.
(8) The earnings of 650 indus¬
trial

manufacturers

half

this year,

of

for

the

first

according to

a

compilation of the "New York
Times," amounted to $3,750,000,000,
3%

some

over

the relative period

of last year.

It

in

is my belief that America is
its
greatest era of dynamic

growth.
The
developments
in
technology and the expansion of
industry that will result from the
of atomic power, for which
$14 billion has been appropriated
use

and

$9 billion spent by the Fed¬

eral

Government,

stagger

imagination. Truly
on
the threshold of

Foundation for Economic

an¬

Lawrence M.

elected
is

The

Angeles

Los

—

a

to

Tilton

membership.

wholesale

repre¬

Underneath

we
a

the

only
great ad¬
are

Investors

Barripg

Boston

which

would

de¬

com¬

pletely change the scope of busi¬
activity, I am confident that

ness

the future continues to offer hope

activity, I see certain
pillars of support for the

economy.

(1)

of

There is

an

abundant sup¬

ply of credit. The supply of mon¬
ey has expanded and interest rates
have declined.

The monetary pol¬

designed

to

provide

better things to come for

even

American business and the Amer¬
ican people.

With A. B. Morrison Co.

busi¬

(Special

to The

Financial

with funds for its legitimate

needs

Trust,

of

international

any

velopments

evidences

strong

well-known distributors of Massa¬
chusetts

the

business

icy is

(2)

The tax relief for corpora¬

tions

other mutual investment funds.

stimulant.

and

individuals
The

acts

removal

Chbonicle)

MIAMI, Fla.—William J. Shin-

attractive terms.

on

Fund, Century Shares Trust, and

of

as

a

the

nick
A.

has

become

Morrison

B.

Building.

He

affiliated

&

was

with

du

Pont

Co.,

formerly with

Barham and Company.
_

—

_

lyf) \A/
^ rr

A\f Alt

—

A fll ft

*

•

•

•

URANIUM DIRECTORY

The NEWLING CANADIAN LETTER
A

REQUEST

MUrray Hill 2-4545

NEWLING & CO.
Members of the Toronto Slock Exchange

458,000 in 3% debentures due 1965,
and 3,842,154 shares of common

21 West 44th

v.

OVER

Street, New York 36, N. Y.

500

CORPORATIONS

fortnightly review of the Canadian Securities Markets

FREE COPY UPON

a

Exchange and currently selling at

petition to business—the basis of

new

sign of abatement.

no

toward

ness

of

Stock

con¬
com¬

come.

houses reflects

financial

York

price

vigorous

The high level rate of
new

sentative of Vance, Sanders & Co.,

capitalization, it's quite
straightaway consisting of $11,-

New

of

that

Mr.

be appropriate at this
juncture.
About

the

Club

has

eagerly

on

as

Strength

ANGELES, Calif.

nounces

sought by present
and prospective
shareholders, may

listed

commodities, such

the months ahead.

Angeles

Bond Club Member
LOS

Perhaps we have now given
you, in capsule, a sufficient idea

presentation

•

jplace,

of sales

abroad.

They
big, and important managerial
emphasis is being placed on their
growth.

data,

GREENHELD & CO., INC. I
Exchange

Home

are

company

be obtained from the

UNDERWRITER

40

20%

some

made

garded here

of
may

American

segment, Canada supplies
about 25%, the rest of the British
Empire roughly 50% with South
America filling out the balance.
Foreign sales should not be re¬

mercury

Holdings presently

ore.

reads

20%

of engaging principally

pose

name

Products,

BUSINESS:

New Los

Bond

There,

of

restored

vance.

insecti¬

and

certain

and the impact will

over

Basic

list,

cides.

firming

expenditure has been
planned for a temporary period.
(6) The building construction

we've

title.

corporate

a

of

increased

ones

vertising is doing a
Boy-Ar-Dee.
Perhaps the
into
the future
a
line
first of the quickie coffees was project
G. Washington. This, too, is an HPT based on a composite of the rates
leader; and for cooking flavoring, of increase of sales and net prof¬
the extracts of Burnett are known its for the past decade, and you'll
in many countries of the world— wind up with the notion that HPT
common is not only a durable in¬
and have been for decades.
The fourth
divisional unit is vestment, but one properly cata¬
Household Products which gives loged in the "growth" class.
Chef

been

industry has about dou¬

year

felt

be

mentioned, seem to sell well
through thick and thin; and the
company's cash resources suggest
resolute ability to withstand any
adversity that may come. On the
forward side you need only to

has

bled since the end of the last fis¬
cal

The absence
has

(8) The rapid growth of popu¬

(5) The rate of government

Well established

of

increase

price structure

orders to

stock,

a common

HPT shares

(6)

A* Bullis

trols

to

non-ferrous metals.

sales, and are pre¬
million is persuasive to a further
sented to the public under three
advance
in
earning power in
quite well known names.
The
first is Chef Boy-Ar-Dee products coming years.
If stability and defensive quali¬
leading off with spaghetti and in¬
are

There

the

Consumer spending power,
by disposable income^

measured

America's strength.

underlying

history. A 1954 expansion pro¬
involving an outlay of $7V2

(L.

m

in

gram

ties

Harry

mod¬

now

(4)

ag¬

little

serious decline

any

continues at very high
levels, esti¬
mated for the year at about
$254
billion.

pro¬

three months of this year.

Year's

earnings

(5)
as

expected to average
between 70% and 75% in the final

American Home Products is show¬

gregate

is

billion.

show

been at the rate of almost
$20 bil¬

(3) There is a change in the
production rate of heavy industry.
Steel
production, which ran at
64% of capacity in the third quar¬
ter

of

$27

future

lion per annum.

run

shortly.

in

and

the

(4) Consumer savings continue
high, the second quarter having*

scheduled

is

corporate

from this figure.

Auto¬

new

$26

for

likelihood

introduction

els,

encourage

expansion.

course.

of

lines,

many

new

allowances,

between

duction, with
p r ospective

one

profits tax, along with the
provisions for depreciation,

Plans

that

mobile

Here then we see an improving
equity in a mature and excel¬
lently managed company. Where¬
1954

excess

(3) Capital expenditures by in¬
dustry have continued somewhere

en-

There is

(2)

pany.

as

most

its

continuing pleasures of be¬
stockholder in a good com¬

a

the

has about

growing magnitude. Opening
mail, and perceiving a divi¬

ing

soon

inventory
liquidation

one's

of the

will

economy

the

of well being,
may well be promoted by this fre¬
quent
receipt of
dividends
of

check within, is surely

American

evidence

stockholder good

dend

might be termed

be moving up¬
ward.
Among

sense

a

the

economic adjustment and that

an

(1)

advantage of bringing
20,000 shareholders of

company
message each
month. Since this year's figure is
20 cents per month
(against 15

will, and

of what

reached

these:

expense,

a

cents

bottom

have

we

couraging
signs
are

each
entail

does

believe

the

HPT

checks

this

trouble

extra

to the

since

corporations

dividend

out

month.
it

interest

of

of

I

1953

of $3.41

estimated

or

strength.

bounty.

Manner of dividend distribution
is

in automobile
output; (3) rising trend in steel produc¬
(4) continued building construction boom; (5)
expan¬
sion in highway
construction; and (6) larger corporate net
earnings. Lists basic foundations for economic
crease

tion;

60

a

for 1954 perhaps around $4.20.

one

Among the signs that have taken place, Mr. Bullis cites:
(1) completion of inventory liquidation; (2) prospective in¬

somewhere

end extra just declared.
the figures were $1.80

share

per

Chairman of the Board, General
Mills, Inc.

indicate

to

of

with a 50 cent year end
These distributions relate

an

3-

fi¬

1954 declarations should

cent year

Last

a

was

Current

seems

By HARRY A. BULLIS

back

certain to be the best in company

the years go by.

as

Food

sales

both to continue and

seem

increase

19%

doll.

a

woman

of the Whitehall Pharmacal

wares

nison

of net sales and

the

on

total

some

sales, is Packaged Drugs and Cos¬

U. Cobleigh

in

forward

moving

the

importance, and ac¬
counting for about 19% of 1953

without
disturbing its
impressive

to

in

element

one

Next

year,

will

probably

profit margins is,
will remain, the

earnings statement.

Baby

Foods

longer last¬

drugs division, both
of product diversity

attractive

number

and

1952

The

and

Duff

brought

called, I believe,
steady advance of

and

Baking Mix

has

sort of

new

a

should

sloughed off.
For example

also

penicillin

what lines
be

policy

has not been associated with

going

1946.

distribution

around

indicates what

some

cash

ably
Wyeth
Laboratories.
Al¬
though American Home Products
any special-purpose won¬
drug, it does offer a quite
complete assortment of vitamins,
hormones, antihistamines and

possess

economic

declarations

for-1

—

Business Uptrend

is

unbroken skein

an

28 years to

expanding sales of eminent products at home and abroad
American Home Products Corporation.
American

liabili¬

dividends, the record

excellent with

Current

Encouraging Signs of

3-to-l

a

to

assets

ties.

By IRA U. COBLEIGH

Thursday, November 4,-1954

...

...

Net working capital is around

60.

Dings and Food for the Home

"

V-r"

■

,

Capitalization Information
Names—Addresses
$10.00
T

CLAUDIA H. SMITH
Public

Stenographer

SALT LAKE CITY 1, HOTEL UTAH

Direct Private

Wires

to

Canada

Volume 180

Number 5374.

..

\

The Commercial and Financial
Chronicle

(1829)

Lehman Brothers to
Finance Florida Latin-

Center

the

an

Food

and

of

agency

Florida, to manage a
investment banking
to offer $60,000,000 revenue

bonds

to

finance construction of
Inter-American Cultural and
Center near the City of

Miami,

Over-all

Fla.,

it

car

announced

was

Cultural
Center will be a per¬

ment

ing

and

is designed

trade and assist in

relationships

America
the

and

western

Harry

with

other

in¬

to

improv¬

been

thority
stated

and

Corporation,

the

dates

by

sonal

to

the

Au¬

of

the

in

the farm

was

force.

work

Initial claims for

created

the

the

nation's

The

workers'

claims

new

for

.<

in¬

a

year ago,

not at all

are

After
steel

•>

project

v

will be

claims

new

by 17,200 to 216,902.

rose

But today there is a

reassuring, this trade weekly observes.

lagging through the early part of the year while other
carried the ball, cold-rolled sheets are leading a

products

strong fourth quarter advance.

Greatest market strength is in the

great Chicago-Detroit consuming axis, where revived automotive

countries have indicated in¬
terest in exhibition space as have

sistent but less

demand has

can

The

with

of

Texas

Building,

the

galvanized sheets is being reflected to
flat-rolled products, this trade

Domestic

of
Mr.

Houston

for

manager

prior week and

Company, Inc. In the past he
ducted
ness

his

own

said

con¬

investment busi¬

Mr.

formerly chief clerk
Texas Power &
Light.

Fred

Orchard

and

Carver have been
firm's sales staff.

Frank

added

pointed

to

accept¬

on

the

as far away as
still be obtained witn

lesser

a

degree

on

other

authority notes.

output last week, up 43%

from the

a

"Ward's Automotive Reports."

out,

however,
an

that

the

industry's

even

said

that

for

program

all-time high for that month and is
The
-

present

-

Chrysler Corp?, held to 30,500

car

com¬

pletions in October by model changeovers, is striking for 106,000
in
November, or 21% of industry volume, as against 13% dur¬
ing October.

Meantime, Ford Motor Co. divisions and Cadillac ended their
model changeover shutdowns last week.
In addition, Chevrolet
1

reached its pre-changeover rate with its

two

parties'

policies

in

institution

many

of

relevant

areas—now

The statistical agency

1955 models and Pontiac

said that the Independent

by Studebaker, operated

paced
week

A.

Wilfred

May

(Special to The Financial
Chronicle) *

MIAMI, Fla.—Edmond
sou

is

with

139 East

A.

M.

C. Peter-

Kidder &

Co.,

Flagler Street.

of

Sophisticated England has been witnessing
equity shares in the face of

Certainly

fears

of

a

Labor

Party

victory

in

next

our

want to

circular

life"

—

both

are.

campaign. Witness too this Administration's hasty retreat to

pro¬

tagonist of expansion.

v

Neck-and Neck Race

to

:

,

.

Welfare

■.

and

/. /

Expansion

Irrespective of differences in degree in their programs,
surely
both the long-time
expansionist Democrat and the politicallyconscious Republican legislators will follow
policies carrying major
support to stock prices, via stimulation to business activity through

'the effects of easy
money on yields and investment buying power
—with varying
tinges of inflation. Consistent therewith is the
explanation of the post-Election Day's market strength

by some
as
a
result of "the Democratic
upsurge" and by others on the
ground of "the Republicans' unexpected good showing."
Under

any

building to fill
ceed with the

Administration here, government-financed

at

seven-month

a

car

1955 model

ing the late New Deal. And the two parties have been running neck
neck in the race to broader
housing and social insurance

coverage.

The continuation of

high-level armament outlays with all its
stimulants to the economy, while not a
process of dis¬
cretionary government intervention, is assured to be as high under
the Democratic gains
(particularly in view of their
ramified

campaign
charge of.*"niggardliness") as it has been under the Republicans
in the absence of a
complete Russian rapprochement.
Even

the

utility industry, whose stocks have recently been
liberal discounting oLstepped-up Democratic public
power and/political attack by the Democrats, has considerable
long-term cushioning—such as the. projected need for a 200% in-

doing

some

Continued

on

page

makers,

high the past

Among truck makers, resumption by Ford after model change¬

.

boosted

United

States

combined

car

and

truck

output

on

page

announce

the-formation of
Send for Comparison

Gerald F. X. Kane

on

National

Association

of

Securities

&

of 11 largest Philadelphia Banks

Co.

Dealers,

Inc.

request

to conduct

a

'

•

.•
-

1

ONE

general investment & brokerage business
"ct

WALL

•

^

STREET, NEW YORK 5, N.

Y.:'

J*

BArclay 7-7631




STROUD & COMPANY

Telephone BOwling Green 9-9250

CO., INC.

BROADWAY, HEW YORK
Tell:

PHILADELPHIA
BANK STOCKS

pleased to

are

Members

115

29

read

interesting situation

&

Maintained in all

last

PANTEX MFG

«z

Active Trading Markets

i

production, but resumption there is expected

next week.

over

6

GERALD

November

1,

1954

VERA

J.

F.

X.

KANE

road-

highway needs over the next decade will pro¬
huge expenditure of $100 billion—completely dwarf¬
our

and

on

Copy

easy-

after its deflation gesture of the 3Y^% Government bond
More recently the President's chief economic
adviser,
Dr. Burns, in his Detroit
speech of a fortnight ago defended vig¬
orously and in detail the Administration's discharge of
its"respon-'
sibility for curbing the business cycle and
promoting a stable
prosperity." And to some listeners Presidents Eisenhower's pre¬
diction of a $500 billion national annual
output in his Oct. 25
speech seemed to be out-Keyserling-ing even that Fair Deal
flotation.

Only Oldsmobile and Buick within the Big Three have yet
to start

We

An

year's

our
parties — realizing the political "facts
committed to the continuation of built-in infla¬
tion and intervention via the
maintenance of a high level of
business activity and
employment. • Witness continuous self-defen¬
sive attitudes of
Republican spokesmen regarding the govern¬
ment's
"responsibility" for prosperity—even before the political

of

nearly 6,000 units, despite the fact Kaiser, Packard and

Continued
You will

in

major rise in

a

capitalist
elections.

many

Willys remained idle.

With A. M. Kidder Co.
r

or

1956.

scheduled its second consecutive all-time high weekly total.

Mc-

;. - -

to

"Ward's"

ists in the life insurance
company
stocks, announce that Bill R. Vandiver has become associated with
was

can

greater volume for December.'
peak for November—506,610 units—came in 1950;.

DALLAS, Tex.—I. J. Niemuth
Company, Burt Building, special¬

office manager.

out

now

are

the

prelude

a

Expands Its Staff

for

car

November of 509,000 cars is

I. J. Niemufh Co.

as

sold

are

Some

industry's 65,173 car completions the past week
against 45,649 the week before put. October passenger car output
at a 26-month low of 232,900 units.
September, it added, netted285,851 cars.
It

their firm

near

November, states
It

&

in San Antonio.

Vandiver

mills

two-month high, began the climb out of
changeovers towards its target of all-time record volume

model

for

was

Russ

passenger

'

corporate
department.
Ellsworth was formerly a
partner
in
Shawell-Ellsworth

Co.,

con¬

a six- to seven-week wait. But deliveries are becoming more
extended in the East, too.
Demand for cold-rolled sheets and

associated

manager

more

consumers.

that

•J only

Corporation,

as

volatile

is

the East Coast, where cold-rolled sheets

ANTONIO, Tex.—C. Bruce

First

top of demand from other

on

...The impact of the strong upturn is being felt

Wilt First ef Texas

Gunter

actually there is little difference be¬

economic

,

'

become

result

piled

ing orders for rolling and delivery in the first quarter of 1955.
And they are beginning to pick and choose their business with an
eye toward costs and customer relationship.

C. Bruce Ellsworth Is

has

been

some
Midwestern
cold-rolled sheets for the balance of 1954.

larger American industrial

firms.

Ellsworth

political and ideological preferences, the realis investor is faiced with the relevant
objective

fact that

money

self-substaining and selfliquidating. Many Latin-Ameri¬

SAN

decisively." '
Divesting his market appraisal from his

jobless pay by
23, the United

Many buyers are taking a fresh look at their inventories in
of higher manufacturing schedules and extended
delivery
promises for steel supplies. Frequently the answers they come up

with

bonds.

idle

view

Center

public

in

generally taking it easy living off the shelf.
lot of private worrying over deliveries.

Construction is scheduled to get
underway immediately after the

many

tween election results and in the
past, when
the two parties'
political philosophies differed
much more

un¬

quick turnabout in steel buying patterns is rapidly chang¬
ing the steel market outlook, "The Iron Age," national metalworking weekly, reports this week. A month ago steel buyers were

terest.

the

record

This relationship between
possible because of a sea¬

A

years

by
Florida Legislature

of

increase

In the like week

In

of

unchanged.

Supporting this con¬
validity in the election area is the
showing no substantial correlation be¬

clusion's

18,800 to 272,600 occurred in the week ended Oct.
States Department of Labor reported.
It ascribed the rise chiefly
to layoffs in the
textile, food processing and machinery industries.

American

-

was

establishment

sale

antecedent market action.

tween the

who

the

many

Inter

Authority

serve

contraction

An

1952 the Congress
by
public law unanimously endorsed

the

selection and

weeks earlier.

Director,

concept

back

of the

in 1951.

essentially

was

interpretation of the reasons, including
emphasis, will be made to fit the

ways,

under the

7% from the preceding week but were somewhat higher than two

Managing

that

act

an

will follow
the Election result with its somewhat
surprising show of Repub¬
lican strength. But we do
know it connotes enough economic and
political factors of both a bullish and bearish nature to
account
for either an up or down market.
And as al¬

employment insurance benefits in the week ended Oct. 16 declined

appointed

that

Center

week

6%

was

McDonald,

as

project

in

seasonal

a

hemisphere.

A.

Finance

has

manufacturing output, however,
of last year
according to reports.

employment and unemployment

in

former
Chairman of the Securities and
Exchange Commision and later
Administrator of the Reconstruc¬
tion

Total

reported

Latin-

countries

whole

a

Investing Policy

know what long-term market action

Unemployment in early October, Secretary of Labor Mitchell
announced the past week, fell to
2,741,000; the monthly decline
being the largest in more than three years. Employment, it was

exhibition and entertain¬

area

crease

as

Output of steel, lumber, paper and paperboard and freight
a high for the year indicated substantial improve¬

same

Inter-American

Trade

manent

production for the nation

Wednesday of last week showed

cannot

loadings at

ment.

The

industrial

the period ended on
rise.

29.

and

The Election Results and
We

Trade

Oct.

By A. WILFRED MAY

Index

Business Failures

wide

group

an

Price

.

Auto Production

Industry

the State of

nation

Observations..

Trade

Commodity Price Index

ap¬

Inter-American

Authority,

Retail

State of Trade

Lehman Brothers has been

by

Production

Electric Output

Carloadings

American Center
pointed

Steel

The

Incorporated
PHILADELPHIA

KANE
New York

•

Pittsburgh

•

Allentown

•

9

"

Lancaster

•

Atlantic City

16

5

The Commercial and Financial Chronicle

...

Thursday, November 4, 1954

.

(1830)

6

paycheck; and they think
something should be done

and

a

that

Don't Throttle the

Open

Keep

Private Works

Program!

cause

United States Steel Corporation

Chairman of the Board,

'

we

or

point on which

we

That

wholeheartedly:

So I propose, now,

regulation
and

that

Mr.

be called

busi¬

"miner's-eye view—of

a

Adams

sional action, a

indexes, and take what might

ness

"Federal controlled economy."

•

double taxation of

against stockholders through

crimination

this

it looks to the un¬
himself.
How
get him back on the pay¬

problem

do

we

as

worker

employed

dividends.

all of these financial roll?
Now right here, of course, we
national economy has been under¬ gains which labor has enjoyed in
come
to a
parting of the ways.
going the difficult transition from this transition period, represent
an
increase in purchasing power; As a nation, we are firmly united
way to peace; and if we look at
the
economic So clearly this group, as a whole, in our desire to wipe out unem¬
has suffered no critical injury.
\ ployment; but we are sharply—
picture
as
a
and even bitterly—divided on the
But the remaining 2% million
whole, I think
about 4% question of ways and means.
most
of us workers—constituting
will agree that of the total labor force—are .un¬ There are, as is often said, two
Happily their number schools of thought:
this transition employed.
For

than

more

a

has

NOT

two

oui*

year, now,

pily, too, the turnover within- this
group
has
been
fairly steady.
About half of these jobless people
have been idle for a few weeks at

any¬

thing which
remotely

re¬

sembles

the

serious,

na¬

tion-wide

re¬

cession

that

suppose,

will

We

the

decline

in

that

longer.
Moreover,
half-a-million
of

newcomer!
*

the labor market.

if

Thus

look

we

the

at

only

broad, general outlines of this pic¬

I

ture—and

our

over-all business activity was sur¬
prisingly mild; and that the vast

or

find

to

was

concede,

weeks

for

work

of

these job-hunters are

nomic and po¬
litical experts
Relieved

inevitable.

out

been

15

of

one-quarter

only

have

we

many- eco¬

Benjamin F. Fairies#

and

most;
them

that

view

if

we

from

it

high

on

—

schools,

Public Works and

lot Of

Most

of

you

familiar

are

to think that what

need

most

is

another

really

country

this

in

we

today

shot in the arm,

good

Louisiana

Detroit. It

to

ing

ultimately furnish 700 million cubic leet of gas per day to both
Michigan and Wisconsin. Refusal

the

to

United

recent

States

Supreme Court decision imposing
Federal

regu¬

lation

ral

over

of

sales

of

natu¬

planned that this line would

producers

.

ply

by in-

gas

the

to

immediately

to

Federal

ap¬

Com¬

Power

mission for certificates of conven¬

dependent

ience

producers and

this

gatherers

citizens from

where

ing to Washington.

is

the gas

ultimately

to

and

necessity to sell gas to

brought

pipeline

to

was

trans¬

be

those

of

group

a

states

scurry¬

Their mission
for relief from the

plead

effects of the mandate they so long

ported across

had

fought for.

state boundary

lines.

But it is

Congress Can Give Relief

.

surprising, -1 o
find

lief

including

mission

through ignorance,

or

which

situation

the

just to

pep us up a little.
So that misstated the issues and misled
that it represents is their solution of this problem, the
public.
'
national economy, f The
other, schpol
of
thought,
Until |the recent Supreme Court
as
a
whole.
There has been no embraces many
who
decisjon, hardly anyone believed
marked
decline
in
are

NOT serious, and

no

to

terstate

in any com¬
producers

power

compel

gas

their gas in in¬

contract to sell

to

if

commerce

do not

they

choose to do so.

often than not have, in-

more

is

There

distributors and even gas pro¬
ducers, understand what has hap¬
pened and what the effect will be.
News writers, columnists and othtentionally

from

threatens their future gas supply.

K.S.Adams

gas

ers

But only Congress can give re¬

,/

few

how

men,

costly spiral of wages and
prices; but that
doesn't worry
them much.
In fact many of them

line from

a

was

deficit spending.
They know thatt public officials
means another crippling round
and businessof ' printing-press
inflation, and
another

in

general way with the events lead-

this

are

we

find

we

whole

a

seem

conclude, I suppose, that
unemployment
problem
i's

the

of these

one

practically all of the outstanding
leaders of Organized Labor. They
argue that this is a task for the
government to handle.
They say
that it calls for a big progfarii of

to

content

are

abound to

majority of our citizens suffered
grave financial hardship as a

In

diminsfiing rapidly; and- hap¬

is

pro-

duced

years,

or

transmission projects,

gas

contends, unless relief is obtained by Congres¬
period of chaos in the natural gas industry
will result, and not only the industry, but investors, labor,
distributors, transporters and producers will suffer. Attacks a

we come

top of charts and figures and

gatherers, has already resulted in the abandonment

suspension of at least three major

economic mountain-

our

ADAMS*

Asserting recent Supreme Court decision, imposing Federal
over sales cf natural gas by independent producers

is

all agree
here in

America, the door of opportunity
shall never be closed to anyone!
down off

s.

Chairman, Phillips Petroleum Company

public officials, or

or

K.

By

—

businessmen—there

plain

one

dividends, and decries dis¬

of national income that goes into

are

Republicans,

are

we

Democrats,

just

works, as contrasted with
public works, Mr. Fairless warns against those "misguided
gentlemen who seek to throttle America's private works pro¬
gram." Says public works supply only a stop-gap solution to
problems of unemployment, and stresses the need for invest¬
ment incentive as a means of providing additional jobs and
thus avoiding unemployment. Calls attention to reduced share
Pointing out the benefits of private

who

matter

no

•

of course, do we; be¬

so

whether

Regulation Threat
To Natural Das Supply

of

Door

the

Opportunity

Well,

FAIRLESS*

By BENJAMIN F.

Federal

about it.

Thus

the

created

Federal

of

advocates

these two states
Frankenstein which is

regulation

from

a

them to deprive" some
375,000 homes and many indusbusinessmen
tries in these two states of the
But on the other hand, we will
purchasing
flatly/against $ni farther in-|
that if' wal the intent of the Natu- new or additional natural gas supalso agree, of course, that the sud¬
philosophy,
power, private spending, or per¬ fiation. I suppose
ral Gas Act of 1938 to regulate th«e
plies they so much desire.
In
den shrinkage in war production sonal savin'gs.
On the contrary, can best be sumhied ' up in the
has caused a considerable increase almost every
reliable index of words of the West Virginia moun¬ gas sales of independent producers, Detroit alone 70,000 are waiting
who are producers of natural gas for .their first natural gas connecin unemployment; and that our business
activity indicates that we taineer who said he sure didn't
who do not transport gas across tion or for gas for major usage
new peace-time
want
are back on the

no

it.

result of

yet

economy has not
been able to absorb' all those

who

were

This

is

matter

a

to

concern

you

out

of

of

the

work.

deepest

all of us; and it

that

problem
with

thrown

I

want

to

is the

Suppose

we

-32

million

have

jobs.

The

weekly earnings of fac¬
workers were higher last

average

tory

month

than

they have

been

ever

in the corresponding month of
any
previous year.
Because of tax re¬

duction,

moreover, their takehome

is higher still; and since the
cost of living has remained vir¬
tually unchanged during the past

pay

*A

talk

by

Mr.
Fairless
Chamber
of

Charleston

before

the

and that

L;

largely be¬
can now hope

we

period

long

a

.

is

of

and

sound

steady.economic growth.
And
far

that is

of

all
as

But

start with th-e facts:

Out of 65 million people in our
civilian labor force, more

than

for

transition

the

hind us,

so

total

our

upgrade again

that

discuss

now.

threat to

no

we

for

are

those

ployed—and

encouraging,

concerned.
who

are

unem¬

especially for the
men' who have been

prices; and the
he/didn't: want any
morel DE-flation, 'cause it made
fer low wages; but if somebody
would just come up with a little
plain, old-fashioned
NO-flation,
he'd be durned glad to settle fer
made fer

Lord

high

knew

So those who belong to

their point of view, we are

depths of
as

bad

ever

as

a

in the

depression that is just

any

that

experienced,

nation has

our

bly experience.'

or

a

job

Program, they

want to enlarge what I
to

call

Works

going

am

"National

our

Private

Program."

Now

could possi¬

They want

Works

Public

vast

perhaps

thought,

have

you

never

of

dollars that individual Americans

.

of

just two of the tr<»es.'that

may

From

fishing and food processing through lumbering,
shipping, and mining
from aircraft and chemicals
.

.

»

...

buyers

or

a

few stocks that

cause

about t0 ealJl\

a£e

I warned

J-

fu l in^,as 9 y lrl
that Federal

regulation of natural

production

the

sugarcoated route to less natural gas at
prices.

was

That prediction is

'

Already the

borne out.

and

burdens

ating

thrust

certainties

of enter¬

gas

course,

distribution

The

nies.

/nearly all of the 62 ,million jobs
that exist in this country today.
Public

we

make markets in, can find

n't

Plywood Corporation
Heidelberg Brewing Co.
National Bank of Washington

Puget Sound Power & Light

Pacific Car &

West Coast

Seattle-First National Bank
Seattle Gas Co.

Telephone Co.
Weyerhaeuser Timber Co.

Trading Department

of

70 PINE STREET

Beane

NEW YORK

Offices in 106 Cities

5, N. Y.

boils

to

Works

the

oper-

economic

in

its

auestion

of

down,

a

Private Works; and

un-

by

your

compa-

Court's deci-

Supreme

resulted

in
or

last

has

June

suspension of at least three major

transmission' projects.

The principal advocates ui Fedine principal auvucaies of reu-

much,
work

right
he

a

job does¬

now,

just

gets

two

programs,

in

the

and

warned

field

of

projects

Public

which

are

properly,
and
historically,
the
responsibility of
government —
Continued

on

authorities of WisconThey were

Michigan.
and

time

time

again

in

gas

producers would be detrimen-

tal

to

page

36

the

interests

They

corsumers.

should

pinch

sought.

be

the

Co. has

their

of

gas

unmoved.

were

Be-

Wis.

difficulties arising
cupr'eme Court decision,

transmission company has
^erred

the

Fa]1

de-

until

"at least

project

19^-3 *

.

"

,

,,

.

f

nV

Gas Light and Coke Co. of Chicag0
ran
a
full-page newspaper

model

ad showing sketches of 25
homes

and

apartments

The

inspection<

open

caption

for

the

to

"Piped for future

fetches read:

today's modern gas
gut a footnote read:
„G
heat
t
nt is not avail_
able tQ new users until they reach
^eir turn on a first-come, first—
seryed
tj.
]ist. About 100,000
beat ancj

gas

appijances"

now

on

tge

wailing list of ap_

pLcants »

y

'

-

,

,

.

,,

,

^

The hope of gas heat for these
ne^ homes was niade more remote when several producing companies in Oklahoma recently withdrew their offer of gas feserves
to.an
interstate
pipeline

project

designed to deliver greater guan¬
mies Qf
>pbese

gas

tQ the Chicag0 area.
are
estimated to

reserVes

be suffjcient to

cubjc feet of
year

supoly 150 million

gag

daily for

a

20_

perj0d. Negotiations are now
way for the sale of this gas

^nder

Oklahoma,

Witw

f

Incidentally,

on

Oct. 18,

a

group

°f 80 Oklahoma businessmen ainve

in New

York City for the

those two states

first

.

to

feel

the

projected

aSS££TAtta.!?
1954.

influence

.

Louisiana

*An address by Mr.

12,

southwestern

via

Monroe,

to

a

Corpus

from

0f supply

from

to

-

American

Oct.

planned

PurPOse of again making their
annual visits with heads of manuof the Federal regulation facturing firms in the ndrtheasttheir officers so zealously ern. states. Their specific aim is

It is ironical that

.

Works, there are many useful and
necessary

municipal

which

to him:

have

the course of the protracted litiwhich
so it gation that Federal regulation of

off—and soon!

t\?se

of
independent
been state and

regulation

producers
sm

Louisiana,

Gas

Tennessee

had

pipeline

Christi, Texas,
cause

producers

upon

abandonment,-curtailment

of

eral

;

But between
there are
three important, fundamental dif¬
ferences that will profoundly af¬
fect his future employment. Let's
see what they are
and what they
pays

Now

&

form,

versus

care

mean

Pierce, Fenner

Private

vs.

issue

the

the fellow who's out of

kind




10n

sion

So

sellers for:

Merrill Lynch,

the

they may have won a battle
only to lose the war. In a speech

is just ex¬
actly what it is.
And it is this
program, in turn, which created
of

simplest

Foundry Co.
Pope & Talbot, Inc.

field

Works Program before;

that,

Public

Harbor

every

am frank to say that
heard anyone speak of

never

Private

the great Northwest

Examples?
are

,

Those who championed
that

of
Co.

^

•

u

.

through the production of power
is attracting investment dollars.

Here

•

.

-

mi

now

3o_inch

producers are sub-

ject to regulation.

househeating.

as

Transmission

interstate pipelines

sales of gas to

by independent

on

affi]jate

However,; unti

for

a

.

he hiding a whole forest
investment opportunties in
Washington industry.
.

subject to federal reguCongress
amends the Natural Gas Act the
not

lation.

prise; and I

but

.

the Fedeial
such sales

of

opinions

I've

WASHINGTON
.

job-producing

? ,ir!

^ .assura!?c.^

studied

Power Commission, that

by Federal regulation have served
to reduce the interstate gas supply

^facilities in

.

in

invested

have

Douglas Firs and Ponderosa Pines

!?ej-S*!.e

under

sales

interstate

for

tracts

such

In fact,

producers proceeded to make con-

those' terms, higher

about the billions upon billions

affiliated

not.

are

that does.

normany

n

gas

exactly

in

and

lines

state

with

were

that!

t

this "nopounding the pavements for flation" school, do NOT believe
months in search of a job that that unemployment is primarily
They^
they cannot find — none of this the task of government.'
will buy any groceries.
So far as think that, basically, it is the
these
men
are
concerned, this responsibility of
our
American
period of transition has been a svstem of individual enterprise.
And instead of embarking on a
tragic personal disaster; and from
800,000

Commerce.

Charleston, W. Va., Oct. 28, 1954.

IN-flation, 'cause

more

any

it

turning

a

Pipe

Line

30-inch pipe-

Adams at the 36th

CKy

ventures

to

One of their

this

year

new

locate

manufacturing
in

Oklahoma.

strongest sales points

is the undedicated un-

dergTOUnd Supplies of natural gaS

ASe»icj:rSays, in. Oklahoma which will be state,
sold
for
only within the
use

Volume 180

Number 5374

•.;

The Commercial and Financial Chronicle

.

(1831)
either for power
generation, heat
as
raw material for
manufac¬

made erystal clear in

turing.

y

sumers' gas

It

change

It
steel

and

that

no

charge,

or

directed

"rate,

any

on

that

no

should

sale

How

can

a

ance

pipelines,

their

pumping

sta¬

tions and other facilities that will
not be built.
It means- the loss of

other

related

construction

knows

jobs

of

ume

the

any

contract?

price

reason

or

hole or
if

it

more

and not

a success

should

price

to

gas

Will the

be

a

a

dry

knowing,

success,

what

governmental agency will

a

allow him to charge for his gas?

be

Would

time by a Federal

another, including

term

that it wants

or

knowing whether it will be

He

may

gas.

of

find and produce natural
gas.

the

Commission, if he
delivering gas to the

starts

you?

i

Or, take the producer

one

erer

new

who

has

not

or

gath¬

yet contracted

has

ever

no

that

assurance

he

get loose. He really has
contract.

contract with

Can

he

of

the

received

It

from

It will

gas.

be

the
most

difficult for

a producer to
obtain
bank loan to support this heavy
investment when his ability to re¬
pay is made so uncertain.
a

can

afford

proceeds

sale

long

a

Sucl*

borrowings must be paid off from
the

It may be

to

with

pipeline company
knowing that, if he does, he may
a

impossible to conform
prevailing state conservation
affecting natural gas

measures

tied up with it forever and
knowing that, after he takes the

production and at the

same

comply

regulation.

risk of drilling his

Federal

regulation

entirely

different from

be

mission
tract

price?

Large

him

his

con¬

Would you?

latter

usually

required

are

for

and

equipment

are

serving

ex¬

the

ploration and development activ¬
ities

Federal

state conservation

;

of money,

sums

borrowed,

wells, the Com¬

deny

may

with

time

purposes

those

measures.

aimed primarily at con¬

underground

supplies

Continued

on

page

the

means

death blow to your future gas
sup¬
Where will your present vol¬

ply.

ume come from, let alone the ad¬
ditional quantity you
desire, after
the dwindling supplies in the un¬

derground reservoirs
you are gone?

:

.

serving

now

,

To gas appliance manufacturers
and

dealers, it means the loss of
sales of untold numbers of kitchen
ranges,
heaters, furnaces, water
heaters, clothes driers and other

gas-burning equipment..
It

and

means

for

gas

industrial

further

a

the

of

economy
areas

the

less

means

cial

the

as

commer¬

It

purposes.

decline

older

recent

in

the

the

industrial

manufacturing industries to
producing states is accelerated.

gas

Growth

Gas

of

Statistics

fail

to

Industry

show

the

pipeline

of

movement

-

that

back

runs

,

true

3 thousand years

demand for gas, as
they do not
take into account the vast number
of potential customers

wishing for

natural

who

gas

not

are

.even-

registered oh waiting lists. In thesouthwestern producing states ap-.

Primitive

proximately

mysterious blue flame

holds

60%

of

natural

use

the

house--'

in

but

gas

Today, that
is'

this

growth

'that£

2200-mile

producing industry was operating*';
under competitive conditions free*
of Federal regulation.
I

interested

was

*>

in

:•

•

■

>

hot, clean-burning fuel

same

transported by Tennessee Gas through

while" the'

occurred

a

bamboo tubes.

demand.. But

mind

by

natural gas!

Later, the Chinese piped it through frail

The
natural
gas
industry has
undergone tremendous" growth in
trying to fulfill this unsatisfied*

in

...

the-

other states only about 15% havethus far been able to obtain it.

bear,

warmed themselves

men

a

pipeline stretching from

the Southwest to the

-

thickly populated

-

the

industrial East.

state¬

ment

by your association's Presi-*dent Mr. E. H. Eacker, in his wel- i

America's

longest pipeline, this great

cqming'letter in^the advance'convention program:

;

He says that an~
additional $4 billion will be spent"in
the
four
years
from
1954?

most efficient

through 1957 to help meet the tre¬
mendous demand for gas services.
This
prediction may have been'
correct before the

decision, but in
due for

now

Most of

that

opinion
but

of

tomers

has

market.

longer

no

harnessed

So-cal'ed

to

distress

available.

the

gas

Every

%-/*

is

W'/#/

>,

i'W.»

supplying

markets is

your

stantly

dwindling

the

as

'

'

v/,

before.

by the most economical

dependable method of transportation—

by pipeline.

- lonn

r/
''

'

''

''"//A, '/'

a

V'"

natu¬

a

underground reservoir
taining only so much gas.
quantity in tvaf reservoir is

people and places

gas

field which has been dedicated to
ral

y>\

i\ '/f

v.-,;,;;"

going to your cus¬
the past several years

been

and

Source, U S. Bureau oI Mines

gas

over

now

fuel to the. world's greatest

knew natural gas

And does it

RELATIVE USE OF MINERAL FUELS

un¬

developed backlog of gas supplies
that made possible the great quan¬
tities

billion-and-a-half cubic

50-YEAR TREND IN U.S.

it is/

reappraisal.

the discovered

never

a

day! Delivers the world's

fuel markets...

Supreme Court"

my

steel artery "hauls"
feet of gas a

1940

con¬

The?

1953

'

con-.,

gas" is

NATURAL

used.

,

COAL

PETROLEUM

GAS

Insecurity of Gas Producers

Why will
Federal
regulation
keep producers froum selling new
or
additional supplies of gas for
interstate movement?
There

is

nothing

vindictive

about

producers

to

Federal

arbitrary

the

make

regulation.

refusal

sales

On

use

any

other primary source of energy.

of natural gas

gas

have

no

in
idea

a

as

to

the price

faster rate than

of

TENNESSEE

con¬

GAS

market where they

will receive for it.

a

J

trary, their best business judgment
compels them
to
avoid
selling
their

is increasing at

or

under

the

The

TRANSMISSION

they*.,
COMPANY

*.

m
.

The
face

HOUSTON,

insecurity which producers 5

in

regulated

supplying the federally'1'
interstate market was




AMERICA'S

LEADING

TEXAS

TRANSPORTER

/

Natural gas

OF

NATURAL

GAS

for

'

,

.

,

.

.

,

•

.V*"

'i

naturally better

cooking and Heating

.

.

.

ot

The

in

public interest and producing

to

necesary

has

reduced vol¬

means a

business.

the

regulatory agency which for

ployment.

it

that

changed at

which would require huge quan¬
tities of materials and large em¬
To you,

in

order
ever

he

producer drill another well costing
perhaps
$100,000
or
more,. not

that he will receive the price

stipulated

buy

an

company wants
Under the present

pipeline company but who has pipeline company, even under a
fully developed his acreage. ;contract for a temporary supply,

deliver to its customers.

gamble of contracting for the sale
of his gas when he has no assur¬

of

to

ing

producer afford the

not be used for thousands of miles

his gas acreage but from whom
interstate pipeline

Assume
that the
pipeline com¬
pany's volumes of gas are declin¬

ued, without its approval.

to have.

once

not

discontin¬

be

than

policy.

a

after June

or

more

complete reversal

erer

7, 1954," should be made, whether
provided by contracts or not, and

that huge quantities of
other
equipment will

means

in

a

Take first the producer or gath¬
who is now delivering gas to

authority bestowed by the
Court decision.
The

service in effect

many

will be denied the additional

they would like

gas

new

Commission

regu¬

that

means

of

producers and gatherers under

its

thousands of homes will not have
any natural gas, and
that many
more

demonstrated

Commission's

Supreme

supply will be gradu¬

ally reduced under Federal
lation.

membership, has

first- orders

to

Curtailment of pipeline projects
dramatic proof that the* con¬

is

the Federal

Power

or

7

hotter, cleaner,

more

efficient.

34

(18132)

New

York

Financial Chronicle

The Commercial and

•

a

Also in the same issue are a list

5, N. Y.

of

SHttmeier Pres. of

High Yielders and Preferreds with Arrears.

I Dealer -Broker Investment

Nickel
J.

Plate—Discussion in

Recommendations & Literature

&

same

Co.,

November "Investment Letter"—

Pacific Intermountain Express Company
Slocumb

understood that the firms mentioned will he pleased
send interested parties the followsng Uteralure:

Briggs, SchaedEe Go.

115 Broadway, New York 6, N. Y.
a list of attractive Industrial Com¬

issue is

&

Co., Inc., 1

—

Bulletin

Montgomery Street,

—

Brush,

San Francisco

States Government securities and
bankers

Pantex Manufacturing

—

Analysis

—

Strauss, Ginberg & Co.,

Granger

Analysis
6, N. Y.

Stout &

120

Market—bulletin—New York Hanseatic Corporation,

Bond

Pinellas Industries, Inc.

&

Chemical Fertilizer

Ill

Analysis
Square, Boston 9, Mass.

Ltd., 1-lchome, Nihonbashi-

Treasurer.

Noble &

—

—

in Japan—Circular—Yamaichi Secu¬

is

Tidelands Royalty—Analysis—Garrett and
Union Life Building, Dallas 1* Texas.

H.

showing an up-to-date com¬

York 4,

over a 13-year period —
Bureau, Inc., 46 Front Street, New

Quotation

'■//■:/

N. Y.

^

7

Forecasts Modest Business

Bancorporation

Arizona

640 South

—

Report

—

William R. Staats & Co.,

Inc.—Data—Crerie & Company, Elec¬
Building, Houston 2, Texas.

The

tric

Automatic Electric

Co.

—

Memorandum

—

Doyle, O'Connor &

Co., 135 South La Salle Street, Chicago 3, 111. Also available
is a memorandum on Telephone Bond & Share Co.
Chemical

Exchange Bank of New York

Corn

Bulletin

—

Cornell-Dubilier Electric Corporation

—

Analysis

—

N. Y.

Laird, Bissell & Meeds, 120 Broadway, New York 5,

Kidder,

—

Peabody & Co., 17 Wall Street, New York 5, N. Y.
D»w Chemical
way,

Co.—Memorandum—Walston & Co., 120 Broad¬

New York 5, N. Y.

Elaterite Basin Uranium Company—Report—Julius Maier

Co.,

Inc., 15 Exchange Place, Jersey City 2, N. J.
Ferro

Corp.—Memorandum—Hirsch

&

Co., 25

Broad

Street,

New York 4, N. Y. Also available are memoranda on W. R.
Grace & Co. and Reynolds Metals Co;
General American Oil Co. of Texas
& Newsom, 1309

—

Memorandum

—

Sanders

Main Street, Dallas 1, Texas.

Harley Patents, Inc.—Bulletin—E. E. Smith Company, 15 Wil¬
liam Street, New York 5, N. Y.
Hazel Bishop,
40

Inc.—Analysis—Standard Investing Corporation,
Exchange Place, New York 5, N. Y.

Imperial

Oil

Limited—Analysis—L. S. Jackson & Company,
Limited, 132 St. James Street, West, Montreal, Que., Canada.

International

November

of the National

"Bank

Letter"

City-Bank of New

York holds that business recession

is

in the recovery phase and the
indications point to a modest re¬

the

of

summer

March

this

of

and

summer

1953

to

Dis¬

about

The spring,
fall brought

year.

early

stability and sidewise movement.

Ludman

Toronto,

Corp.—Analysis—Lapham and Company, 40 Exchange

Place, New York 5, N. Y.
National Homes

Corporation—Analysis—Aetna Securities
poration, 111 Broadway, New York 6, N. Y.

National

Life

&

Accident Insurance Co.

—

Cor¬

Niagara Mohawk Power
of

about

the

the

might

common

recession

have

predictions
that

was

roughly

a

it

saucer

shape, namely, a moderate rate of
decline, a relatively long and flat
bottom, and a moderate rate of
emergence on the up side.
Cur¬

We make
•

Company—Analysis, in
du

Pont

&

Co.,

current

1

Wall

issue

Street,

dependable markets in 385

"Business

decline

in

behind,

your

74

bre has been added to the staff of
Hall

&

nearly

rent

In

use.

have

ments

plentiful supplies and com¬
petitive pressures shortened de¬
livery schedules and allowed pur¬

America

to

The Financial Chronicle)

LOS

ments.

It would go too far to say
this process is being gener¬

change in market conditions and Dempsey-Tegeler & Co., 210 West
suddenly have to start scrambling Seventh Street.
supplies.

for

"It is natural

that

the

signs of

orders is

now

that

With HL L. Jamieson

on

the b.asis of

some

been

cases

stepped

stocks

cur¬

commit-:
up

depleted

to
by

(Special to The financial Chronicle)

Council of Economic"Advisersy
say

100,00*

to

that "the evidence, as I read

Soil BniMcw international Corp.

it, is therefore that we are again

the

b

(copper and lumber par¬ entering a phase of economic ex¬
ticularly), or to take account of pansion."

of

a

.

Net $3.00 per share

For offering circular fill out
and mail

1

!
I
I

coupon

beloiv.
I

Gabriel Securities

3420 Bergenline Ave.

j

obligation

process

Glorion
|||

Japanese Stocks and Bonds

under

manufacturer,

patented

DEPENDABLE MARKETS

on

without

.

BUILDERS

Material and Consultation

376

of

Joins Coombs Staff
(Special

chasers to cut stock and commit¬

Broker and Dealer

1.

,

ago

strikes

Utility

NY

Bank

year

|§S

N, J. Security Dealers Association

Hall,

Building.

Member N.A.S.D.

Trinity Place, New York 6, N. Y.




heart¬

Ucratrot

Troster, Singer & Co.
t

is

sup¬

inventory re¬
duction, particularly in stocks of
purchased materials, is now a
waning
influence.
Ordering
is

orders & inquiries invited

Members:

defense

to

seem

sentiment

and

Natural Gas and

Public

to The Financial Chronicle)

FRESNO, Calif.—Jesse M. Bar-

«c., Xt
•

2400.

developments

Industrial Stocks
•

HA 2<

rent

replenish

Gleanings"—Francis I.

with Haii & Haii
(Special

LOS ANGELES, Calif.—Basil B.
dustries, since they were hardest
hit by the contraction. While to¬ Mallicoat has become associated
tal output of goods and services with H. L. Jamieson and Co. of
dropped only 4% during the re¬ San Francisco. He was formerly
cession, durable goods manufac¬ with King Merritt & Co., Inc.
turing dropped 13% as a whole,
and
in many lines considerably
more.
Durable
goods
factories,
which employ only one-sixth of
non-farm workers, accounted for
nearly three-quarters of the de¬
cline in
non-farm
employment.
To an important degree, it is the
indication of improvement in du¬
International Corp.
rable goods which has prompted
Chairman Arthur F. Burns, of the

of

more

Memorandum

Clark, Landstreet & Kirkpatrick, Inc., 315 Fourth Avenue,
North, Nashville 3, Tenn.
* ^
——

Exchange.

One

ened by the fact that most of the

Building,

in
Bros., Board of Trade
members of the New

recovery
should be most pro¬
nounced in the durable goods in¬

nipeg, Man., Canada
Ont., Canada.

Bank

;

Marcus

Now there is ground for thinking
that the trend is upward again.

port this analysis.

Royal

Marcus

Recovery

lengthening delivery dates. A

111.—David

ANGELES, Calif.—B. K
Boyle, Charles M. Pyke, and Paul
cussing the economic picture, the that
E. Viko have joined the staff of
"Bank Letter" states:
ally reversed, for there is little
Coombs & Co. of Los Angeles, Inc.,
to
build
inventory.
"Any poll of current opinion disposition
223 South Beverly Drive.
among business men and econo¬ Nevertheless, delivery dates have
mists would show widespread ex^ lengthened
on
some
things.
In
pectation that the period ahead periods like this business men
Dempsey-Tegeler Adds
will be one of modest recovery. keep the markets under careful
(Special to The Financial Chronicle)
In the swings of business in 1953 review. It is one thing to take a
calculated risk on low stocks, but
and 1954 three phases can be dis¬
LOS ANGELES, Calif.—Rock FL
tinguished. The decline ran from quite another to fail to note a Houle has become affiliated with
toward higher levels.

covery

Nickel Company of Canada Limited—Review—
James Richardson & Sons, 173 Portage Avenue, West, Win¬

and

J

will be admitted to partnership

Son, Inc. and

is heartened.

Spring Street, Los Angeles 14, Calif.

Audubon Park Raceway,

and

Marcus Bros* Admit
CHICAGO,

National City Bank "Letter" holds there is ground for
thinking
that the trend is upward again and business sentiment

•

•

Stocks

Bank

Casualty stocks.

York Stock

— Capitalization
information, names, ad¬
copy—Claudia H.v Smith, Hotel Utah, Salt
City 1, Utah.
,.7 V
♦

and

Building,

dresses—$10 per
Lake

York

York for Fire and Life Insurance

Inc.—Review—$2.00 per copy—John H.
Co., 63 Wall Street, New York 5, N. Y.

of American Phenolic Corporation, Bird &
National Dairy Products Corp.

Directory

Uranium

New

Lines,

yses

.

Stocks—Comparison of 11 largest Phila¬
delphia Banks—Stroud & Company, Incorporated, 123 South
Broad Street, Philadelphia 9, Pa.

Co., Girard Trust
installation

Shelby Collum Davis & Co., New

Western Maryland Railway — Analysis — H. Hentz &
Co., 60
Beaver Street, New York 4, N. Y. Also available are anal¬

Bank

Philadelphia

Air

Lewis &

market performance

and

National

■iWestern

&

announces

telephone connections to
Kugel, Stone & Co., New York

for

County Navigation District Improvement
Bonds—Bulletin—-Rauscher, Pierce & Co., Incor¬
porated, Milam Building, San Antonio 5, Texas.

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

Nash

—

of direct

Company, Fidelity

Side Calhoun

West

N.

Building,

City
The
firm of

PHILADELPHIA, Pa.
Philadelphia investment

Revenue

yield

To New York

Lerner & Co., 10 Post Office

Manufacturing — Memorandum — Auchincloss, Parker
Redpath, 52 Wall Street, New York 5, N. Y. Also availa memorandum on
Technicolor, Inc.

&

Ill Broadway, New York 7, N.

Over-the-Counter Index—Folder

.

H. N. Nash Phones

Sheller

Angeles 14, Calif.

Los

1 Wall Street,

Broadway, New York 6, N. Y.

Riverside Cement

Y.
Morgan Averages of 20 Largest Stock Life Insurance Com¬
panies—Bulletin—Morgan & Co., 634 South Spring Street,
rities Co., Ltd.,

Co.,

5, N. Y.

-

Industry—Analysis in "Monthly Stock Di¬

Investment Opportunities

&

elected

was

President;. John L. MacFarlane,
Senior
Vice-President;
LaRoy
Roome, Vice-President; Robert H.
Britton, Secretary and Treasurer;
and
John Godson, Assistant

Eisele & King, Libaire,

Public Service of New Hampshire—Analysis—Ira Haupt & Co.,

\

gest"—Nomura Securities Co.,
Tori, Chuo-ku, Tokyo, Japan.

Co.—Analysis—Cohu

Suttmeier

E.

Co., Penobscot Building, Detroit 26, Mich.

Newling & Co., 21 West

;

—

Fred B. Prophet Company—Analysis—Smith, Hague,

Canada—Fortnightly review of

Montreal, Que., Canada.

Steel

New York

Canadian Securities market—
44th Street, New York 36, N. Y.
Canadian Economy: 1954 vs. 1953 (first 8 months)—Analysis—
Kippen &
Company " Inc., 607 St. James Street, West,

Analysis

was

Walter

Co., 50 Broadway, New York 4, N. Y.

Pittsburgh

York 5, N. Y.

Broadway, New

—

acceptances, M. Greacen
elected
Chairman;

Briggs

Inc., 115 Broadway, New York 6, N. Y.

Equipment Companies
Company, 111 Broadway, New York

stockholders

annual

meeting of Briggs, Schaedle &
Co., Inc., 44 Wall Street, New
York City, dealers in United

4, Calif.

to

Agricultural

the

At

Stocks.

mon

/( is

Williston

R.

Also in the

Thursday, November 4,1954

...

Union, N. J.

K
I

UNion 4-7404

fi

Name

I
I
I

Address.

I
61

Tel.:

BOwling Green 9-0187
Head

Office

Tokyo

DEMPSEY-TEGELER & CO

I

| City

Broadway, New York 6, N. Y.

I

I
^

Phone

—

f

Volume 180

Number 5374

...

The Commercial and Financial Chronicle

(1833)
"

\

.

The Gas

sociation to sell any of the prodof this great industry short,

Industry in Action

ucts

I

By J. THEODORE WOLFE*

simply trying to point out

am

century
demands
action,
Happily, it is getting action.

Consolidated Gas, Electric Light and Power Co., Baltimore, Md.

There

Mr. Wolfe relates
increase the

efforts being taken

the

ranges

promote and

to

large

by consumers. Tells of the work of
Program for Gas Industry Development" in the
widely separate areas of cooking, air-conditioning and indus¬
trial uses. Says the work should be on the
program of each
The

utility

engaged in

is

warfare—not the internecine
fere

of

bomb,

the

but

which

atom

the

and

company

kind

war-

of

warfare

has

characterized
for

This is

past.
of

which

a

ize

sort

i t

c a n

deadly and
often is, if any
of the partici¬
pants grows
careless

in

it

'This.Tfcourse
inis, 01 course,

'

11

all

any or

is thewarfarebe-:
is tne wariare De

services
services,

warfare

which

It
it

is
is

the
tne

prod-

kind
Kina

of
01

American

any

businessman ought to relish.

Now, in any kind of warfare or
competition —military, economic
or

fee

merely athletic —it behooves
participant to understand and

.'jneasurh the strength of his oppowent.
To shrug him off, to scoff
--at his weapons without ever

the

Is

constantly improving them, not
only does no good but is apt to
prove fatal.,
And it may prove

^nnallv

fatal

thp

for

narfirinant

^L attemots to cLv
fee
2teht Wit^
Of
hhf
•SrStE m^v

"

on

*

weannns

own

L^e'bem^lnv^e^dav'slbattle^
whin DittJd

obsolete
ODSOieie

are

wxien

those which his

asainst
agdiiibi

piiiea

enemv

is using to-

developing for tomorrow.

or

In any war

(or competitive

And

load,

a

gas

symbol

a

7u

which
i;

x

ETA0?3

sell

we

J

we

Re-

sen.

ite

TfJ50,1 Tdgas CT°
1 indus-

help but feel that the
try

will lose more than iust the
J 11
x
5 u
xJ
\
dollars represented by the cook-

^

load
x

'

labeled

"De-

even

a

for

set

the

deluxe

market;

second

set

for

the

new

replacement market;

And

third

a

to

the

the

people

in

There
the

gas

/

recently distributed
industry with the urgent
that

each

•

u

i

fte industry eniovs
*

5

o

an

a few yeais Prior to World War

ifnlt6 tImpTp 1?
nf

t,nf

PnnroP

^1; ~J^d +d^

a™e * P
cu
f PV/'
fa_L,rric hniiriinfj

p

ImliS"

« "

ai

Q

II

c

fhp

nn

a

t

7

i

Quhnrhan

•»

I

glad to say that the induswhole is alive to the need
sparkling offense. The AcProgram for Gas Industry

am

try

as a

ior

a

tion

gas

-

"

-

„
'

These "Desirable
7 x
u

ncd;

to

be

Features"

AJesir,at)le, *
confused

With

£

the

skill

with

and

which

To

without

say

they

are

em-

it another way,

resort

to

figures

of

an

upgrading—

armrnvai

Thpv

approval.

hPvnnH

Hesifmpd

thp

Ihey go beyond the

approval requirements.
tn

nut

hefnre

They

the

where
^nd

gas

is generally available,
market

recent

surveys

con-

basically

right.

<<Gas is superior to

If

any

you

say,

other fuel

cooking," you may still be
right, but a lot of your present
and
prospective customers don't

believe you. And the reason they
don't believe you is that neither
you

^be

nor

has

gas

industry

shown

them

a

year
oct

this:

was

'

_„x.

i

I

and

are

struggling with the prob-

lemOff-peak industrial sales
have furnished at least a temporanswer to some companies,
but are not feasible for others because °f limitations in their gas
suPPiy contracts. "Peak shaving"
with manufacturing

+

or

storage fa-

important

measure,

to

f
?
^
of top burners and
x

creasingly

* u/x

Rllf

Ut

ITc
answer

ww

wnat

better

answer

as

date

posslble»>

are

T

„

,

.

Effective Jan. 1, 1954, automatic

nrns-

inS with gas?
Wq

i™

u

■

i

j

most likely make him and keep
a satisfied user of gas.

j emphasized those words, "now

P™^1- The

Desirable Features
for Gas Ranges" (to which I have
f^evi?-US.J referred) stipulate au-

available." A gas industry

on the
offensive to command the cooking
load in tomorrow's homes will P
have to develop pr0gressively bet-

ter ranges than

are now

Action towards this

available,

objective

is

f

.H-uSl nnmnan^c

K

ai^

^ 1 e
.

i

a

fndSSv
industry

But

'

win

f

not

will not

ke ln ^sstiongest attacking posi-

the

automatic device. Some

same

companies

in

the

industry

the

one

wbo

otherwise.

can>t

When

afford

he

can

fired air conditioning system now
available. But these are only a
few> As an industry' we have yet
to direc^ enough of

our

to

a

These

were

the

so-called

"nickel

pilots; improved
Sev-

.....

**■

quirement

Provai.
terns

for

i

the

x

Laboratory

ap-

The development of rela-

„roval

rge;a.
consuming

onlv

nominal

n„ApnQ

New emphasis on quality in our
sales

and

A

NEW

JERSEY

CONSOLIDATED GAS COMPANY
MICHIGAN

WISCONSIN

a

,panies

great
are

many

electric

worrying

Continued

promotional efforts;

Natural

,

MICHIGAN

servieint*

attack these weaknesses and

that

,

Here> then 13 the ProsPecf

eral

American

and

about
on

Company

Gas

CORPORATION

•

MILWAUKEE GAS LIGHT COMPANY

PIPE LINE

COMPANY

to do so, he will buy convenience,

cleanliness, coolness, or what have
but not cheapness.
I hate
t0 confess it, but the industry as

y0U>

whole

its

has

even

failed

in

•

'.in

xu

one

cardinal

sometimes

nK;i:t„

j

vfl Inc

nfHitv

*he service offered by gas u

y

still, an annoying and

painful

experience

which breeds many a prospect for
an0^ber and

more

expensive kind

'

'

*An address

by Mr. Wolfe at the 36th

of COOking appliance.

tSiarStk&.'NS'C,' I1
Oct. 12, 1954.




am not

here before a general

session of the American Gas As-

fa-

over-

quantiUes of gas shouid make this como them'
forward step possibie in the not
I said that air conditioning could
t00 distant future
pr0ve a pitfall.
Please observe

valves; and other features.

leading range manufacturers

distributing"

the distributing and servicing facilitiesare inadequate. Yet,wecannot afford to sit idly by. We must

do

course, but

j

attention

t0,^this golden

afford

appliances; and

„

skill

have

made important progress in promoting the only year-round gas

appliance which
they would consider superior. The
industry has
been
selling the
cheapness of its appliance and the
fuej ^ consumes. Now, the only
customer who buys cheapness is

a

and

the
uie

factor of space heating could
nossiblv be than snare rool™ere possioiy oe man space cool

a

Oven "puffs"—a euphemistic term
if I ever heard one—are all too
common
Nearly always due to
the customers carelessness, of

effort

to
iu

burnersT^adornedJtheload
burners be adopted at the earliest xw

objectives; it has
pliances available to the consum- failed to assure the gas cooking
ing public;
*
customer
of
maximum
safety.

j

1

for the revenue it brings in directly but also because to carries
with it water heating and other
uses of gas. But there is that bug-

face-to-

devoted
by all elements of the industry to
the sale and promotion of those

,

command

What is wrong with gas cookIf you say "Nothing," you

Second, in the amount of time,

-

The past 10 years have
a tremendous growth in
the Sas heating load.
We want
this load and we need it, not alone

witnessed

oig-n aiitnmatip li«h+incr nf oil

with the growth in gag burner„ (named for itg size and
census data for the not for its worth); the hypodermic

pace

of

money,

con-

ditioning.
Here
is
a
potential
bonanza, or perhaps a pitfall. The
force of our action may determine

One of the points in the Action
Program for Gas Industry Development,
generally
endorsed
by

are

quirements for A.G.A. Laboratory

nenrta

First, in the quality of gas ap-

'

to

means

a
matlc lighting
re-

customers, and

wh0le

It

speech, the action program seeks
'

clearly called

It is in the field of air

face |be cooking

recognizes
the
potency of the opposition s
weapons.
It expresses confidence
in the basic strength of its own
arsenal
but, at the same time,
feces up realistically to the need
for improvement in many of its
weapons and
in the vigor and
ployed.

-

the

^^^fgal rangesls

"Desirable Features."

Gas range through a PAR research project.

load has weakened-

offensive

program.

another

,

»evelopment is fundamentally an
.

to

move

^

for

Maginot Line.

we

area where action is

for.

war

fun.

opportunity.
towaras
building
ia
suburban
.
„npmirafjinf,
tion until it is able to say that
^
6
•
**
f
areas where ^as is not available mast encouraging.
Qven
g„ are g th
Qf the
0f course, the selling is tough
<and that doubtless is a major facEarly this year, in Cleveland, past To that end the Gas Indus. In many areas, the installed cost
tor>' we cannot escaPe the obvi"
A-G'A- Eaboratones demon- t
Development
Committee
is ?f a gas air conditioning system
ous fact that the relative Position strated a number of new range urgin
that automatic ignition of 13 ™ fjeat, the operating cost is
of ^as with respect to the cooking components"PAR rasparrh nrniprt. all
which were developed
e burners be made a re_
not sufficiently competitive, and
rioc.
fhrniicrh

impregna^ ing?
Thnl
are

.

with automatic

x-

tistics that, whereas gas ranges

^inbacathfn t.TIS fnJf

'

out in the research departments
and on the designing boards of the
manufacturers themselves.
One
of these, in particular, holds great
PromiseIt is the Radiamatic

utility company focus its sales and the industry last
promotional efforts on ranges
«T.
.
which
incorporate the so-called

industry who have been trying to ducted in several widely scattered
have taken hold of these laborado so.
They seem to feel that, ^mple cities consistently revealed
because gas has been a favored a
consumer
preference for gas
feel for a 100 years and more, becooking well below the present
cause it has experienced
a post- saturation.
These facts demand
war boom in its aggregate
sales, attention
-

be

Suppose'

goodly share of the deluxe range
market, now its weakest spot.-

were

recommendation

oven

few

some

are

will

pilot

and

ranges

With weapons like that, the

°£ at PAR Pr°iect. I would not which.

find

for

set

multiple housing market.

war

the defensive.

on

valuve

new

abo° of load factor which must be
rooted out and dealt with if we
are to protect the long term ecothe Radiamatic range of tomor- riomic soundness of our business,
row,
the gas industry may well All of use doubtless have struggled

or

nerma-

nently

burner,

All

ignition;

burner, employing an entirely new
revolutionary concept in the
use
of gas as a
cooking fuel. In

fe^ive6 acUon6 but no^ne "ever yvarS 1940 a""1. 1950
3 A&' netedle
offering instant ig'survived
bv
modes,t. one'. to be sufe- ",tlon .for top burners, with very
•^mainin/rLstantW and perma lng saturation, even m urban cook- low pilot broiler
U st/" ?• declme-In 8,as
consumption; low BTU
remaining constantly ana
areas
and
or

available, in the reasonably near
future, gas ranges which incorporate

brackets;

I

have

to

and

ou,tsold electric by 15 to one just him

kept

en-

expect

may

designed to put before the pros.
'
>
dL
We know it can be done, and
pective range buyer in each of hS™n* ot ™p.£angKe burners be- done with satisfaction to the cusYet'
ls a w*ak sfpot
°fur three price brackets the kind of came one ofthe basic require- tomer whose home ig heated in
ar™or- " }s a matter of cold sta- range, now available, that will ments lor A.G.A. Laboratory ap- winter and cooler in summer by
ing

sales since World War II have not

-

day

base

service

tak-

ing the trouble to observe that he

-

respect
It is not a

in the kitchen is

*

.

with

dpvplnned

mialifiratinns

been

high price

These

is

area

nf

have

One

is clear.

such

°f the householder's acceptance of

^

7

.

You

the

wholeheartedly

sellers of competing

nr
or

One

range

of
increasing
xu1 s-+ vx +
strength and vitality to

urts
wets

weaknesses.

ha<?

Gas

sirabje Features for Gas Ranges"

A

the

year-round

J. Theodore Wolfe

21

tween

on

A r A

nf

oPvprai

which

being taken to capital¬
the strengths and to over¬

cooking load.
major factor in the industry's total revenues.
But it
is a good,

prove a source

"

steps

cPPxinn

and

to

or

engage

the
the

nor

price

J™ IfflrtVthPReddenftel

will

-

it can
equally well

who

armor,

we

thk want to ignore or slight the many
^diiu mis forthcoming improvements worked

Jwtlt y^ii Cm
to

me

present or potential
weaknesses in our

or

for action

weary,

.

permit

get the picture, I thir^k, if we con¬
centrate our attention
today on
just a few areas in which the need

be

.

not

various

the

ir!LrfrvT»n,i
uiuu&uy

are

come

warfare;

while

does

strengths
industry s

generations
strange

In
The

ap-

review with any completeness the
areas in which the action program

has disclosed

American
business

Time

believe

com-

them.

of

measure

appliances

companies to the users of gas
pliances and equipment.

hydrogen

or

testing

and

—

appliance manufacturer.

gas

plenty of good gas
the market today.
In

are

on

hracket.

industry

gas

of

process

crazy

"the Action

individual gas

in

now

Better ranges both in the deluxe
the more moderate price

own
even

they offer all those assemblies superior to anything
things the customers want we have heretofore seen. These
convenience, cleanliness, cool- should be available in the various
ness, safety.
They are not neces- price brackets.
sarily cheap, although they do
jn
my enthusiasm for the results

of gas

use

tory developments, put their
engineers to work, and are

5"** h* which the war of the mercial applications
20th

Executive Vice-President

.

9

*

AN INTEGRATED NATURAL GAS TRANSMISSION

AND DISTRIBUTION SYSTEM

SERVING A MILLION CUSTOMERS IN MICHIGAN AND
MORE THAN HALF A CENTURY OF

WISCONSIN AFTER

SUCCESSFUL OPERATION.

com-

that

page

20

\

10

The Commercial and Financial Chronicle

(1834)

Serlen

(Capt.), Rogers, Krumholz, Wechsler, Gersten, Gold
(Capt.), Rappa, Farrell, Voccolli, Straus, Cohen____

Klein

200

Hoy

Julie

Thursday, November 4, 1954

.

11 Vg

in the economy.

This is not to be

10

minimized;

example, impair
money
and the

the

5 Point Club

206-204

.

quality

of

is bound to suffer. But,

economy

Bean

for

this is not the

Notes

NSTA

Point Club

Meyer

.

this

SECURITY TRADERS ASSOCIATION OF UOS ANGELES
the

At

annual

meeting of the Security Traders Association
the following hew officers were elected:

of Los Angeles,

point advanced by
school, whose findings, if

new

acted

might

upon

tribute

to

well con¬
impairment.

very

monetary

Every business cycle has
of many

SECURITY TRADERS

t

the year

one

as

characteristics the shrink¬

Urn

age ot

Traders

the money s

clude

Association of New York announces
following candidates have been nominated to hold office for
Security

The

the

ASSOCIATION OF NEW YORK

from

pply.

that

To con¬

prosperity

by increasing the

supply constitutes, it is be¬

money

1955:

th's

be assured

can

lieved. specious reasoning.

sumption

f

that

is

made

The

it

as¬

the

is

shrinkage that is the Apollyon in
of all instances, when actu¬
ally it is the natural accompani¬

4'

most

f

of most

ment

oast-cycles.

Causal

<s-

forces
knows
1

.

are

of

Richard

<

Green

M.

Robert

O'Neil

R.

confusion

authors

O'Neil, Fairman & Co.
•
Vice-President: Robert M. Green, Pledger & Company, Inc.

Association

The

will

held

be

/ v:;\

\

Tariff for guests and

we

!

y.

go

•

& Co.

*

-

Second Vice-President—Nathan A.
Treasurer—Daniel

Directors

(Two-Year

Term):

Bernard

;

Financial Chronicle:

•

Conlon, P. F. Fox
Corporation; Harry
Thompson, Greene

J.

& Co.; Daniel D. McCarthy/ Union Securities
A. Michels, Allen & Company; William F.

Mr. Emerson Schmidt's address,

"How Government Can Help Busi¬

Help Itself," reprinted in the
Chronicle, Oct. 7, 1954, contained
ness

& Co.
Trustees

Jacobs,

the

of

Gratuity

Fund

(Two-Year

Charles F. Preller,

Sidney Jacobs Co.;

Term):

Sidney

& Co.

dire consequence to

Committeemen:

Samuel

I

E.

Magid, Hill, Thompson
& Co., Inc.; Stanley Roggenburg, Roggenburg & Co.; Harold B.
Smith, Pershing & Co.
National Committeemen Alternates: Samuel F.

Hutton

be

econ¬

takes

Colwell, W. E.

the

rise

secular

Committee

(Four

(4)

members

to

be

elected):

G. A. Saxton & Co., Inc.; Edward L. Chapman,
Spencer Trask & Co.; Thomas L. Curry, Stone & Webster Secu¬
rities Corporation; Frederick R. Eisele, Freeman & Company;
William

Nominations

other

than

selected -by the Nominating
petition presented to the Secretary
endorsed by 15% of the members eligible to vote for candidates.
Committee

can

be made

by

those

a

All nominations shall close fifteen

(15) days prior to the Annual

Election.
of the

Nominating Committee

are

James F. Kelly,

Kidder, Peabody. & Co.; Walter V. Kennedy, Coffin & Burr In¬
corporated; Lewis H. Serlen, Josephthal & Co.; Andrew R.
Steven, Jr., A. C. Allyn & Company Inc.; John J. Meyers, Jr.,
Chairman, Gordon Graves & Co.
SECURITY TRADERS

ASSOCIATION OF NEW YORK

Team:

Points

Hunter,

Fredericks,

Demaye,

patrick
Kuehner

the

in

turnover

.

.

the

velocity of
[would]
.

assume

a

constant

.

.

that there has

2.8% each

the

year

just

year;

the

growth

formula?

it

be

then

either for it

unwittingly inflate or deflate
the money stream. All productiv¬
ity studies which arrive at a rate
productivity growth show
of fluctuations over

a

Here
out

(1)

;

illusions

Supply:

terms of

a

period?

year

Growth

in

trend line of

A decade?
a

Per

data

on

a

the

on

In

which

must

be

deposits,
data on the velocity
in circulation. The in¬
clusion of this part in the formula

there
of

L

1

are

no

an¬

"moderate,"

tinued to decline. How much
successful

this

could

new

mone¬

ity"?

(Capt.), Clemence, Gronick, Stevenson, Weissman,

Reid

O'Connor

Hunt,

Werkmeister,

Kullman,

t




.

(2) Labor Force:
average

What kind of
will be used to define

labor force?

Wilt the formula ad¬

just for seasonal June and Sep¬
tember variations, and the fact
.

16

15

during

depressed periods
during prosperity?
This, incidentally, diverging frora
known data on bank deposit vel¬
expand

and

McGovan, '

(Capt.), Jacobs, Siegel, Topol, Frankel, Tisch

accommodate

that the identical labor force dan
16

(Capt.),

.

contract

SIDNEY BROWN

f

Economics Instructor
Pace
41

College,

Park Row,

'

New York 38, N. Y.
Oct. 11, 1954.

With

Shearson, Hammill

(Special to The Financial Chronicle)

LOS

ANGELES,

&

Calif.

Wil¬

—

Hickey has become

ciated-' with

asso¬

Shearson, ..Hammill

Co., 52 South

(5)

fever

necessarily

causes

the

mean

cold.

that the
To

artir

ficially lower the temperature by
placing cold packs on the patient's
brow and dissolving ice cubes in
the patient's mouth may fool the
thermometer but" it does not
the

patient.

for

Grand

Avenue.

of

previously with

was

With Standard In v. Co.
(Special to The Financial Chronicle)

LOS

a

cause

shown
a

nected

Co.

a

of

California, 210 West
Street.

that this

characteristic

sound money and credit

system has an important function

The

Financial

HILLS,
ward
H.
Ashdown,
Legare and Leroy M.
joined- the staff of
Weston

&

Chronicle)

-

Calif.—Ed-

B.,

Peyton

Solk

have

Daniel

Company,

118

D.

South

Beverly Drive.

With First California 1
(Special to The Financial Chronicle)

SAN

a

to

BEVERLY

George

aver

con¬

Three With Daniel Weston

symptom

To

Calif. —Fadil

become

with Standard Investment

Seventh

and to propose treat¬

business cycle is a cause. Cer¬

tainly^

ANGELES,

Mehmedagic has

cure

ing the symptom requires that it
be

Hickey;

(Special

Shrinking

does riot

an

\

tary standard school be?

the proposed monetary standard of
"labor
force-productivity-veloc¬

it

"

.

Sincerely,

more

22

20

history?

money

culture,

will

cycle ex¬
economic

to

Neary, Purcell & Co. and Lester,
Ryons & Co.

will the Federal Reserve Board of

or

business
false

an¬

percentage rate

defining

and credit, how well will

bility, and a
planation as

a

this

and
In

and the turnover of bank

"raising innocent questions,
is

money
economy.

quantity of money in circulation

and half there"?
As¬ may prove to be just as unrealidivergence in the com¬ able as labor force and produce
position, just how will the parts tivity figures. Moreover, during tne
—labor force, productivity, veloc¬ 1930's many efforts were made to
ity—be weighted? Will the parts, inflate the money supply by gold
\ in turn, be weighted or will their devaluation, irredeemability and
total figures be accepted at face debt monetization, yet, neverthe¬
value? And while one can easily less, bank deposit velocity con¬

swered.

•

20-

here

there

our

a

(4) Velocity of the Money Turn¬
are

System

independent ad¬
the

of

'

Mr.

that will go down or up, when the
items comprising the formula split

"half

of

needs

liam R.

While there

Federal

the Board be served by a formula
so weak in definition and
applica¬

in accordance with known obser¬

over:

in

carrying out their duties of sup¬
plying not too much, not too little,

period of time. To assume
steady annual rate would not be

Our

a

credit

long

vations.

Will moderate be

Will it be

num?

singled

examined:

Moderate

'Money
in

the

are

and

ministrator

behind
former

may

of

the

Raising, again,

Reserve

set up as an

was

considered

,

always be
directions.
The

in the money

supply."

of,

monetary

wide range

a

Federal

The latter, ob¬

be accepted

not

here,

measure

and

will

changed
can

or,

proposed

viously, '< cannot
since

we,

growth

finished

adjust

major business de¬
pression without a prior shrinking

been

Our

money

(3) Productivity: Are

.

to

credit needs of business and agri¬

Mewing (Capt.), Define, Gavin, Montanye, Bradley, Huff—
19^2
Growney (Capt.), Alexander, Eiger, Valentine, Burian,
Craig
19
Bean (Capt.), Meyer, Bies, Pollack,
Leinhardt, Weiler—19

Manson

'

in the Money
Supply: To note the presence of a
fever every time there is a cold

Meyer (Capt.), Murphy, Frankel, Swensom Dawson-Smith,

Kaiser

productivity .and

Governors accommodate the sound

Saijas,

(Capt.), Nieman, O'Mara, Forbes, Greenberg, Gannon
(Capt.), Brown, Corby, Weseman, Whiting, Fitz-

Krisam

eer's

20

(Capt.),

Kelly
Barker

of

engin¬

or

increase

ita growth in wealth?

Bureau?

economist's

An

-

addition,

in terms of real per cap¬

economy

22

Donadio

Leone

supply based

prosperity." Later he makes

never

go

Security Traders Association of New York, Inc. (STANY)
Bowling League standing as of Oct. 28, 1954 is as follows:

a

moderate

a

our money

decline

suming

Members

that

the observation ".

L.

Fleckner, Merrill Lynch, Pierce, Fenner & Beane;
Paul C. Fredericks, Jr., Warren W. York & Co., Inc.; John S.
French, A. C. Allyn and Company Incorporated; A. Kingston
Ghegan, Edwin L. Tatro Company; E. Michael Growney, Joseph
McManus & Co.; Joseph D. Krasowich, Bonner & Gregory; George
V. Leone, Leone & Pollack; John D. Ohlandt, New York Hanseatic Corporation.

...

of thought which

view

money

assure

Bar bier,

to -".

the growth in the labor force,

on

the

Nominating

the

growth in

& Co.

because Mr.

so

subscribes

growing school

&

Census

say,

believe this is

Schmidt

Co.; Cyril M. Murphy, John C. Legg & Company;
John J. O'Kane, Jr., John J. O'Kane, Jr. & Co.; Theodore Plumridge, Eastern Securities Inc.; Robert A. Torpie, J. C. Bradford

Leslie

may

our

omy.

National

.

illusions which

economic

of

Eastman, Dillon

CIO?

of

the prise of gold?
Just how will
* these
methods ; strengthen
the

Finally, whose definition of
the labor force and its composi¬
tion will be accepted? The Labor
Department?

continuous

a

ocity.

Editor, Commercial and

in

debt monetization?

v

& Co.

specifying,

to

rate ",

supply with¬

money

in which the money is to
be created and spent. Will it be by

Views

major business depression without

a

/

Mullin, Tucker, Anthony
Secretary—Henry Oetjen, McGinnis & Company.

•

been

Krumholz, Siegel & Co.

G.

out

prosperity" is

moderate1

a -

growth in the

particular to statement "that there has never
a prior shrinking in
the money supply."

exception in

econom¬

period of
its highest

a

be

"assure

to

maintain

Sidney Brown, Economics Instructor at Pace College, takes

Tisch, Fitzgerald & Company, Inc.
Carl M. Loeb, Rhoades

F.

over-ex¬

Most

manner

Dr. Schmidt's MoneySupply

President—Alfred

*

incredulous that, now,
told that the solu¬

seems

should

we

Finds Economic Illusions in

First Vice-President—Edward J. Kelly,

to

recover from a depression and
from prosperity to a depression.

tion

Henry Oetjen

credit.

prosperity as
and credit; at

see

It

Daniel G. Mullin

the

proposal

Depressions are known for
the opposite state of affairs.
Yet,

LETTER TO THE EDITOR:

n

of

money

annual Christmas Party

Statler.

at the Hotel

.\

new

peak.

that the

announces

17

Dec.

members, $15.

ists

' V

& Co., Iric.

Arsdale, Blyth

tension

and Nieland B. Van

Euper, Akin-Lambert Co., Inc.;

Thomas' A.

effect.

and

cause

this

Hawtrey, bewail the

as

C. Hecht, Dempsey-Tegeler & Co.;

Board of Governors: John

of

probe the reason(s) for the money
shrinkage. Some economists, such

Secretary: John R. Nevins, Lester, R.yons & Co.
Treasurer: Clemens T. Lueker, Hill Richards & Co.

Nathan A. Krumholz

Edward J. Kelly

Tisch

F.

Alfred

of

It would be more valuable for

Richard R.

President:

expla¬

nation in business cycles. To place
the onus on money supply is both
a

'

writer

causal

single

no

the

and

many

added

FRANCISCO,
H<

C

Hildebrand

the

to

staff

of

a

1 i f

.r-

has

been

First

Cali¬

fornia

Company Incorporated, 300
Montgomery Street, members of

the

San

change.

Francisco
'

•

-

-

-

Stockr

Ex¬

Volume 180

Number 5374
:

.

.

The Commercial and, Financial Chronicle

.

(1835)

•ments

Can Railroads Meet Emergency
Defense Requirements
Pres dent, The

Here of

Pennsylvania Railroad Company

so,

'

f

financial status of railroads and thus put
better position to provide for the national defense.

a

without

adequate

there cannot be

an

that
transportation
adequate de-

Why

the number of people
h

d

o

know

in various forms to certain trans-

port

n't

o

an

it—and

the

mo^t

*

j o.b

of your

Asso-

ciation
c

do

least

to

it—

of transportation as a whole to be

those

know it.

-

inadequate to meet the inflatiopary trend that has'taken place in

^

'

I

am

the

years.

.

.

Now

-

to

the

ability

of the
James M. Symes
matter of the railroad -industry to again meet
v'
rail r o a d's transportation demands of another
ability to adequately meet .trie major .war: ' ; *
*
Z
transportation requirements that.
During ; the winter Tof 1940-41;
as

■

could reasonably be expected of • questions

;

during the past 24
7 r- /

our economy

going

to' discuss

them in trie event of another

war.

raised

was

of the

'ability

the

to

as

railroads

to- meet

Before doing this, I would like to
pomjment briefly upon transportstion as a whole in this country,

-

the ; transportation

Quite

-

pointed to study and report on the
situation then.
It was, ' the un-

frankly,

weakest

it

is

of

segments

of

one

World

-

War II.

of

one

the

entire

our

large amount of

a

a

it might very well be
few weeks.i If that is

us are

ions

in

energy

subject.

wasting

indicate

that

would be

even

our

time

considering

If it is not so,

the

or

next

if

a

demands

I happened

committee of

of

to be

three

ap-

1941—and

11%, 1943

1942— ent business.

over

and 70% in the three years period
1943 as compared with 1940,
I

But

even

that would

be somewhere around 35% to 40%
less than we were called upon to

think it is also safe to assume that

handle during the last war.
transportation will be called,
So I say to you, quite frankly,
upon
to handle a much larger that if
my appraisals of rail trans¬
percentage of the total require¬ port
requirements in the event of
ments during wartime conditions
another war
are
approximately
than „during peacetime conditions
correct, and I believe

rail

war

—and for the

:so

was

the railroads would be called upon

load of

quickly. I am sure to handle at least 65% of the total
if we planned^ it that way — it freight
transportation
require-,
would be that way—but the re¬ ments
(much lower than their
sults not as we would want them. percentage during World War II)
So the equations I will make are —and on the basis of one and
on
the premise that if there be orte-half trillion ton miles, there
another war, it'will4not he over would be 975 billion ton miles for
the railroads to handle—30% more
quickly.
v
'
over

-

who, ought to

.

•v

s

they

know

at

-

is

that

see

*

war?"

than the true cost of performing
the service—and the necessity for
other forms of transport, not so .**We do know that in 1939 the
subsidized* to meet thejse artificial total ton' miles of;:' r ri t e r-c i t y
traffic" handled
by
ail
rates on a competitive basis, — freight
causing the entire rate structure transport agencies amounted to

im-

portant

that has permitted

agencies

artificial rate structure that in

too many instances is much lower

perhaps one of

.

.

„

not

its position
in, our
economy? The answer is simple
enough. It is because of subsidy

ing
w

►

^transportation

has

maintained

ferise program—but it is surpris-

;

''

•

,

...

.

here today know

us

.

they are,
same reasons that it
then certainly we are not now
during World War II, prepared to do the kind of a
job
there is any question about
it namely, the railroads can produce we would be
called upon to per¬
being so, then we should collect more-transportation, with less man form—and will not be
prepared to
the
facts, ^realistically
appraise* power and less strategic materials, do so if
present policies with re¬
them, and prepare ourselves ae* than "can other agencies.
v
spect to transportation are con¬
cordingly—to the best Pf our abil¬
Again an assumption — and I
tinued^ With the same line of
ity. I don't think any of us would tbink on the-low side—it would
reasoning that caused me to indi¬
want to gamble our defense, and be my considered opinion, .in the
cate 14 years ago that the rail¬
perhaps future existence, on opin¬ event of another,major war, that" roads could handle the
expected
the

v

war

within

all of

and

be taken to improve
^

course

another

■

Some have said that if there-be

another
over

regulation, restrictions, taxation and subsidized competition is
fast putting the railroads in position of a v/eak segment of
our economic system. Lays down
suggested actions that should

of-

event

speculation -and personal opinion
naturally come into the picture: J

Warning against "gambling our defense and perhaps fulure
existence," prominent rail executive holds present pattern of

them in

reasonably expected to be

the

in

By J. M. SYMES*

All of

11

\

.

527

billion-*-and that

total

traffic

actually handled during

the

of World War II—and

on

ton

a

mile

basis increased from 64% in 1939,
to 70% in 1944 — and has since

dropped to less than 53% of the
total. When the final tally sheet
for 1954 is available it will prob¬
ably show that the railroads par¬
ticipated: in just about 50% o| the
total. It is also true that the* total

peak

60%
1953.

than

more

'V " "

'

•

this

figure
more than doubled in 1944.
Also,
that the railroads' participation of

.this

than they

handled

.

/ 1

network of

rail

1944,

60%-

and

quite

tributed

over

Would

lines

if

the

entire

actually *

plant—but
be

1953, would
evenly dis¬

over

task

a

we

concentrated

railroad

know
on

War.

are

hot

the event of

in

pre¬

■

■„ ■,

.

'

- ■

•

another

'■

.

I have commented on the weak¬

-

of

ness

transportation in our
of the

nomic system and some
sons

for this weakness.

eco¬
rea¬

The trans¬

probably fit into
picture. I have at¬
tempted to portray the picture as
realistically as I could and possi¬
bly my appraisal4 of the situation
is not "good.
The next question
naturally is—What is required to
strengthen transportation in this
country so that it will be able to
maintain its position in our econoriiic system — and be able to
mteet the4 demands of peace and'
waf efficiently and economically?
I have already indicated that sub¬
sidy is destfoying the inherent ad-r
Vantages of the several transport1
agencies resulting in natural ad~
vantages being shunted aside for
artificial ones. Strong arid healthy:
transport cannot long endure such
the

lines spread

over our entire country'— about
222,000 miles./ The distribution of
a
30% increase in-traffic over

be

them

of

railroads would

Another thing to consider is the

vast

that they

pared to do what will be expected

portation requirements that might
be expected in the event of an¬
other major war—and how the

during

"/

World War II, causes me

to say now

it

main

and

routes—meaning, that a
big increase :in traffic would be
channelled through; a relatively
transportation requirements of the
jcouritry, as expressed in inter-city small portion of the total rail line
ton miles, was- greater in 1953 by mileage—and the quickest way I
nearly 10% than it was in 1944— know to curtail rail transportation
the peak war year. This increase Output1 is- to channel traffic Via
is because1 the trend of normal congested routes,
r
r 4

overall

think by using a animous view of the committee
-1 hkve been talking entirely of
;few figures. I can show you why then that we could :handle the ex? transportation requirements :per
this is so. My comparison will be
The railroads have
;pected war loiid of World Wa r n capita in this cpuritry is definitely the transportation of freight traf¬ conditions.
on
the increase, as is of course fic
-1953 with 1929
tr span of 24 —and
Up to this time. I am'riot goirig been- calling thig to thq attention*
fortunately we did. One of
to burden you with the passenger of the American people for year,*)
years: Those years have beeri se- the principal reasons Was because the population itself. .;
lected because II think all will then the railroads had much more r Therefore, I think it is safe to problem—except to say that the but with negligible results.
; agree, that in 1929 transportation .excess
capacity than did other drir reasonably assume that because of tailrdady- industry canrtot do now
perhaps realistically—instead of:.
was: generally : healthy :in
this -dustry;as a whole. It took other increased - population, and ability what itr did in <■ World Waf II in
peeking equity and fair play in
country—and' maintaining its reh- industry quite a long time to catch pf industry to'step Up production the - way of handling passengef
transportation on the sound prem¬
: atfve
^onomieiprisitionin obr free ,up with transportation them That quickly, we could within a com¬ traffic. On the railroad I am as¬ ise that tke user should pay .fori
enterprise system.
1953 is, of -would not be so ;now—following paratively- short time be called sociated with we handled three the true, cost of the
service be;
course, the latest year, tot which so closely on the ^emeridpus in^ .upoil to produce freight transpor¬ billion prissenger~ miles in 1939.
demands and receives, which t
figqres are available. Since 1929 ;creaSe in industrial capacity durt tation to the extent of one and This increased to-13 billion pas^ think was Intended in the De-4
•the physical product turned Put
And serigef miles in 1944; It has been
.ing arid following World War IL one-half trillion ton miles.
Clared J Transportation
Policy c/
by manufacturing in d us trie.The quick potential output; of in* remember that is only about 30% dropping off ever since arid- is
Congress in 1940—we should have'
farming and miningrhas increased dustry today is much greater than- more than it actually was in 1953 now back to around four billion been
seeking equality of competi-;
-97%.
Ton miles handled by all it was going into World War' IL —and also remember the demands passenger tfairi miles. By operat¬
five opportunity, on somewhat the
transport agencies have increased It would be extremely unfortunate of World War II -increased trans¬ ing Tas we did iri 1944, under War¬ same terms as afforded our com;
93%. So, in terms of volume, the -if industrial output, .under; war- portation requirements by 26% in time conditions, existing 'equip¬
I
Continued on page lijtransportation industry, has just ,time conditions, were curtailed 1941 over 1940—22%, 1942 over ment could probably double pres¬
economy, and I

4

—

-

.

*

-

.

-

-

.

'

„

,

,

.

about held its

own,during this

pe-

due to lack of

as
1 {aaof1 transportation per ton of

But perhaps

jibd—and it,takes just hbout

-

,

-industrial;, outprit.

in

few

this.country

#riw as it did. 24 years ago.

,

transport.
we

,

,

should m ake a

transport comparisons today
The peak

with the-situation then.
traffic

rail

:

during World War II,

Buf let's take a look at eorpo- -occurred in 1944 when Class One
sale% in dollars during' the railways carried 745 billion rev*

4

This announcement is neither

an

offer-to seH

nor a

solicitation of

an

offer to buy

these securities.- The 'offering, is made only by the "Offering Circular,

'.■.I.

NEW ISSUE

:

•

,

V

.

.

'

~

November 1, 1954

rate

.

-

period. For other than" trans*

same

portation it shows
-

an

enue

increase of

let's

take

look

a

at

let>s

But

to

a

Were then oper-

we

what

the

menf

Qass One railroad owned one and

of

situation

was

then.

The

COMMON
(no

an

^increase of 137% for three-quarter million freight cars
oS^or^T jn^
ow* ^.decrease in 1944. The ownership now is

2%.

Had

transportation sales
the same extent as
pther corporate sales, the trans-

gcme

approximately the

would

received

have

billion additional
and
come

nearly

revenue

it was
territory the ownership is about 5%

about
dollars

and

a

in 1953

additional

quarter billion
net

mcome

b^em rerflected ma stronger.and healthier
transport^system than we have m
this

country today. With industry

effort

er

efficiency and
are

•

numbers

diesel

The

on

the
say

use

jn

American

large
rail*

that insofar as
concerned, we

power is
probably handle the

GqUation

would

be

generally doubling in size, both phcable insofar as freight
respect to volume and net :eqUipment is concerned.

$3.00

STOCK

■

.

value)

PER

SHARE

Company is in the business of developing formulae for

new

drug and medicinal

products; of owning trademarks and licenses with respect to their production and sale; and
4

of

supervising the production and distribution of such products, including "Zotox",

poiscii ivy remedy, "Hydrotox",
"Triocin",

an acne

a

athlete's foot remedy in the promotional stage and

remedy in the development stage.

and for warehouse facilities at 140

Copies of the Offering Circular
in which the

same

ap*

an

,

,

T*he Company maintains leased quarters for its executive offices at 122 Broad Street,

ton .miles today that we did during the peak traffic year of 1944
_ancj j should think about the
gornp

par

or

utility obtainlocomotives,

in

now

.r(ja(5S> i would
^0^

PRICE

power

abld"from

motive

I am sure these additional
earnings would have

and

tractive

total

of our locomotives
is now about 16% less than it was
in 1944. With the relatively great¬

position with other cor-

one

The

pulling

transportation net in¬
after taxes maintained its

porate net income, the transportation mdustrv would have had

Eastern

less.

$15

had

relative

same as

^en—although in

to

up

portation agencies in this country

'

Company, Inc.

equio-

after taxes during the same period.

shows

~

Zotox Pharmacal

'

ating at capacity.

income

net

will take exception

statement that

Fpr other than transportation it

-

100,000 Shares

ton miles—and I don't think

anyone

288%—for transportation it shows
an increase4 of
but 136%.T Then

Grayrock Place, both in Stamford, Connecticut.

may

be obtained from the undersigned only in States

undersigned may lawfully offer the securities.

.

FREDERIC H. HATCH & CO., INC.
63 Wall

WHitehall 4-2400

Street, New York 5, N. Y.

car

witn

Min™'^avolumenbPu0t Ehowing";
nAf

f ^^
very

a

♦An

inrnmp

nresents

Hi maTniSurto me
dismal picture to me.

address

Convention

of

by Mr. Symes
the
National_

'pa"oAte25ri9s"OC,a',°°' '



at

-.

Please

send

me

a

copy

of the Offering Circular relating to the Common Stock of Zotox Pharmacal

Company, Inc.

ship is capable of again handling
.

the

Defense

rs

So-assuming that our present

locomotive and freight car owner-

tra^Sp0rtation

the equivaient 0f
the next
questi0n tO Consider is — "What
what it was

in 1944

would the transportation requires

Address

..V

:

,

12

The Commercial and Financial Chronicle

(1836)

consideration

The Natural Gas Act

which

lems

of the prob¬
confront us in
the
Natural
Gas

some

may

administering
Act

By S. L. DIGBY*

construed by the Supreme

as

Court.

plies, particularly that relating to natural
mation of

Cabinet Committee to

energy

on

sup¬
Without comment,

Refers to for¬

gas.

to

problem, and cites
applied to independent
producers. Says changes are still needed in the Natural Gas
Act and stresses the importance of regulation efficiency as
well as cooperation of gas producers and distributors with the
a

Act,

restrictions

and

posed

me

upon

as

member

a

the

of

Federal
Com¬

Power

mission.

It

is

and

necessary
proper

that

avoid

saying
that

anything
might be
sidered

I

con¬

as

opinion

an

upon

issue which

an

Commis¬

the
sion

be

may

called upon to
decide

offi¬

cially.

L. Digby

S.

I

feel, how¬
ever, that a
proper regard for my official po¬
sition and responsibility does not
impair my right to speak in a
frank and forthright manner. In¬
deed, I consider it my duty to
speak objectively on this very im¬
portant but difficult subject.
not share the view that

of the government"
the
to

right

an

I do

officer

pendent

the course in which he
sincerely believes. If I need sup¬
port in this position, I have it
from

the

authority

highest

would like

to refer to

and

expressions

by

hower in

address delivered

June

7,

an

1954,

President

the

at

exercises

ment

Eisen¬
on

commence¬

at

Washington

College in Maryland. In referring
to

the

172nd

address

which

had

just been delivered, the President
said, "To what he has said, I have
just one word to add—every one

of the

Committee

will

transportation

Presi¬

subject

of

or

to

respect to any
sale of natural
the

jurisdiction

take

under¬

the

grant

natural

facilities

tion

gas.

with

the

facilities

"The Chairman of the Commit¬

of,

and

natural

sell

gas

to,

up

to

person or municipality engaged or
consultation with the
legally authorized to engage in
members of the Committee, will
the local distribution of natural
appoint from outside of the Gov¬ or
artificial gas to the public, and
ernment experts in each one of
for such

after

tee,

the

to

areas

his

under

"The

direction*
or

than

recommendations

facilities

will

1,

to

or

Presi¬

burden

will

territory served by

be

natural-gas
Cabinet

its

submit, such natural-gas company, if the
1954, its Commission finds that no undue

dent."
The

extend

:

the

to

to

serve,

transportation facilities to commu¬
members nities
immediately ad jacent to such

as

Dec.

purpose

to

forces.

Committee

later

not

studied

be

task force

a

Committee

set

up

Provided,

placed

upon

thereby:

company

That

the

such

Commission

by the

a

shall have

group

a

the enlargement of transportation
facilities for such purposes, or to

President will appoint
outside of Government as

task force to assist in the

no

authority to compel

study of
natural gas in the United States. compel such natural-gas company
Any national policy which may to establish physical connection or
evolve from this study will nec¬ sell natural gas when to do so
essarily take into consideration would impair its ability to render
the search for and
natural

production of adequate service to its customers.

thing

for

a

you

the

ural-gas

desirability

and

subject

of

in

natural

recog¬

from

release

news

a

is

gas

the

White House, dated July 30, 1954,
which deserves wide circulation
and

consideration.

I

taking
the privilege of quoting this news

release at this
"THE

on

as

follows:

of

a

Cabinet

Com¬

Energy Supplies and Re¬

will

was

be

"Department
"Department
"Department
"Department

announced to¬

composed

the

of

of the Interior.

the

of

the

nation

continued

peacetime

require

supply of energy.
progress

increasing
*An

Commission

the

over

16

due

had

in

and

obtained,

ords,

hearing, and

of such

a

situa¬

ex¬

an

The

of the United

byilapid-

annual1 ancl

address

per

by Mr. Digby at the
Membership Meeting of the In¬
dependent
Association of
America, New Orleans, La.
Annual




or

focus

rec¬

memoranda, or as to de¬
preciation or amortization rates,

is de¬

tinuance

of

service

is

con¬

unwar¬

ranted, or that the present
ture public convenience or

or

fu¬

neces¬

or

upon

application,

may

deter¬

tion is to be limited.

Within such

determined by the

natural-gas

com¬

enlarge or extend its
jurisdiction over the independent facilities for the purpose of sup¬
plying increased market demands
producers without rules and regu¬
the

assume

new

and

added

pany

may

reasonably applicable to in such service area without fur¬
such an operation. Certainly it is ther authorization." •,
the plain duty of the Commission
"(h) When any holder of a cer¬
lations

enforce

administer

the tificate of public convenience and
interpreted by necessity cannot acquire by con¬
the Supreme Court, and I am sure tract, or is unable to
agree with
it will do its full duty in this re¬ the owner of
property to the com¬
spect.
We would, however, be pensation to be paid for, the nec¬
very unrealistic if we did not rec¬ essary right-of-way to
construct,

ognize the
the

and

many

as

problems which operate,

Commission

and

those

or

addition

have

and effective conservation

and maintain a pipeline
pipelines for the transportation
natural gas and the necessary

for

Without

gesting

a

problems,
and

in

any

manner

personal view

I

consider

it

on

sug¬

same

by the exercise of the right

these of eminent domain in the district

proper,

will
and

reference

suggestions,
protection
the

of

all

these

is

the

consumers

the

of

owners

to

and

concern

my

of

outstanding securi¬
i'

ties.

Changes Needed in the
Natural Gas Act

It

is

considered judgment
that the public interest requires
changes in the Natural Gas Act.
I

my

will

certainly

not

this discussion to
tent

ments

in

presume

suggest the

ex¬

the nature of the amend¬

or

needed.

I

willing

am

to

leave this entirely to the wisdom
and experienced judgment of Con¬
To attain

laws—

the highest degree of

efficiency -in, regulation,

mutual
cooperation is essential. .This co¬

wisdom of State conservation laws,
administered by State agencies, is

free of coercion. It should be prac¬
ticed by the regulators and regu¬

established

lated alike. Trust and forbearance

cepted.
tion

and

The

generally

matter of

ac¬

conserva¬

of

irreplaceable oil and gas
is primarily the right and respon¬

sibility
Much

the

of

concern

respective States.
has been expressed

tual

but

must

be

mu¬

voluntary

and

replace-much coercion and
reprisal. A voluntary compliance
can

with the law is every man's duty.
If the law is oppressive and bad it
should

be corrected.

;

.

authority in the adminis¬

One of the most impressive sto¬
ries concerning
voluntary duty

tration of the Natural Gas Act and

grew out of the First World War.

the

A

with

reference to

flict

of

possible

a

administration

con¬

State

of

con¬

servation laws and rules and regu¬

lations.

The

indeed

the

interstate

gas

distribution,

and

concept,

cornerstone,

and

of

transmission,

sale to the consumers,

has always
depended upon long-term
con¬
tracts supported by ample reserves
of natural gas.
There have been
built up in the practice of the
Federal Power Commission in cer¬

tificate
of

young soldier, whose wounded
leg had just been amputated, was
told by the medical officer, "Sol¬
dier, I am sorry you had to lose
your leg," to which the soldier re-

nlied, "I did not lose it—I
it."

contracts

sale

sup¬

;

,

With
like

permission, I would

your

to

I

gave

;

conclude

with

graphs taken from
delivered

in

New

two

para¬

paper

a

which

Orleans

last

June:
"The

requirements of proof

cases

long-term

court of the United States for the

I hope useful, to suggest for district

in

which

such

property

It

appears

that this has been

me

policy and

was necessary

sound

a

in order

to warrant the great

Federal

Government

is

a

creature of the several States and

government of delegated and

a

phasis

upon

retaining within the

financial ex¬
penditures in the building of trans¬

sovereign States all of the

power

not

to

mission

central

lines,

distribution
tems, and conversion by the
the

to

sumers

sys¬

con¬
of natural gas.

use

It is generally known that the

fi¬

nancial markets and the thousands

specifically

delegated
The

government.

the

depar¬

ture from

the original concept of
the framers of the Constitution has
in

many

ing.

The

instances become appall¬
centralization of power

of

security-holders necessary in in the National Government has
long-line financing have depended steadily increased in almost every
upon
te sound judgment of the field of activity.
Regulation has
Federal

Power

Commission

con¬

been

exception to this rule.

no

cerning the financial feasibility of
these undertakings.
The sound¬
ness of this approach has certainly

Government

expanded

in

warranted

threatens

the

in

the

the

confidence

judgment

of

the

Power Commission by

placed

Federal

contracting parties to forecast the
commodity
the

life

of

value
the

of

during

gas

contract

has

been

important factor in these agree¬
ments.
Like other commodity
an

of gas has in¬
creased with growing market de¬
values,

mand

the

and

terprise

and

expanded

transporta¬

The American

system

by

afforded

the

of

meeting

en¬

such

rugged
a

large

competition,
measure of

consumers

of

gas.

ducers and the transmission com¬

natural-gas companies
subject to the same regulations,
how will the long-range sale eontract

are

and

power

has

.

.

a

Under

has

which

of

several

a favorable judicial
period this tendency

justified much

very

..

and

grown

exercise
the

to

.

National

manner

full

reserved

and economic

the

years,
.

concern.

It

Is

encouraging at this time that

this trend has been recognized as
harmful and measures are being
taken

to

correct

it."

With McCarley & Co.

-

(Special to The Financial Chronicle)

ASHVILE,

N.

C.

—

Elbert

E.

Maynard, Jr. has been added to
the staff of McCarley &
Company,
Inc., Jackson Building.

both to security owners

Now since the independent pro¬

panies

recent

price

problems by private contract, in¬
fluenced

"In

the public. States.

The exercise of the right by the

assurance

wait

solution but

it

contracts

future

operation should not only be

has

cannot

apparatus, or other stations
should, in the
equipment necessary to the
discharge of its duties, develop proper operation of such pipeline
reasonable rules and regulations. or pipelines, it may acquire the
a

influence

the

a

in

laws to prevent physical and eco¬
nomic waste of oil and gas. The

sure

Commission

this

and

gress.

the nation have modern

or

such

stability of

industry,

to

on

With

Approximately one-half of the

tion facilities.

its

to

financial

dedications.

visions of the Act.

jurisdiction must of
face at this time.
Many of these land or other property, in addi¬
problems can be ascertained only tion to right-of-way, for the loca¬
by the old rule of trial and error. tion of compressor stations, pres¬

subject

the

large

very

to

gas

pleted to the extent that the

a

to

reserves,

affect

able supply of natural

as

necessary

this

limited authority. The framers of
the Constitution placed great em¬

area

it

would

is

Commission

found

likewise sell its

can

15 to 20 years' supply.

service

suddenly

If

reserves.

ported by known gas reserves of

finding

a

the service area to which
since
its
enactment
was mine
largely modified by this decision. each authorization under this sec¬
consequence

gas

question might possibly bring into

accounts,

or

States in

own

rules

$3,000.

any

to

as

its

by the Commission that the avail¬

years

a

of

with

Commission,

The

(b)

The

and

States has been marked

ly

Power

both

pansion of the United States econ¬

industrial

the Su¬

after

first

Court in the Phillips case
would not be objective or useful. sity permit such abandonment."
The interpretation
"(f) The Commission, after a
given to the
Natural Gas Act by the Federal hearing had upon its own motion

to

of Justice.

defense

in

consideration

preme

Natural Gas Act

—Chairman.

abundant

consumers.

decision of

of Defense.

"Office of Defense Mobilization

wartime

giving

of State.

"Department of Commerce.
"Department of Labor.

"The

nat¬

avail¬

mission

tion, the Federal Power Commis¬

heads of the following agencies:

omy

without

the recent

to

As

day at the White House. The Com¬
mittee

the

of

sion

Policy

sources

am

HOUSE

WHITE

"Formation
mittee

time,

by the

its

A discussion of the Natural Gas

Act

necessity

use

known

and

reserves

ability for

.

.

of

maintenance

al¬

the

to

courage

broad national policy on the

nized

require full consideration of

do
believe to be right.

own

risdiction

Commission, or
The interest of all of these seg¬
any service rendered by means of
ments of the industry, and indeed such
facilities, without the per¬
the public interest of the nation, mission and
approval of the Com¬

The Cabinet Committee

The

gas,

conscience,

your

having

9.

prescribing

reauirements

any

will

ways

"Sec.
before

dealt

existing
long-term sale contracts supported
by a dedication of reserves? This

exceeds

■

said, "The only problem is to live

in

up

courts shall only have jurisdiction

growth, and assuring supplies for between classes of service.
expanding national economy
Producers and Gatherers
"Sec. 7. (a) Whenever the Com¬
and for any future emergency.
Certificating
mission, after notice and oppor¬
"The
Committee
will
review
Another problem with which we
tunity for hearing, finds such ac¬
factors affecting the requirements tion
are
faced concerns the need, if
necessary or desirable in the
and supplies of the major sources
public interest, it may by order any, for certificating the facilities
of energy including:
direct a natural-gas company to of producers and gatherers. The
"Coal
(anthracite, bituminous, extend or improve its transpor¬ answer to this problem is very
only in its own
and lignite, as well as coke, coal tation facilities, to establish physi¬ significant not
tars, and synthetic liquid fuels). cal connection of its transporta¬ right but in relation to other pro¬
and

Panhandle Eastern.

v.

case

independent producer, now a
natural-gas company under the

our

"Petroleum

of

Power

an

any

and their needs and requirements.

ad¬

part

district

a

these words: Be
not afraid to live by those things
in which you believe." Again, in
the same address, the President

commencement

Provided,

States

Commission, (1) make or
undue preference or shall notify each State commis¬
study to evaluate all fac¬ advantage to any
sion having jurisdiction with re¬
person or sub¬
tors pertaining to the continued
ject any person to any undue prej¬ spect to any natural-gas company
development of energy supplies udice
or
disadvantage, or
(2) involved and shall give reasonable
and
resources
and
fuels
in the
maintain any unreasonable differ¬ opportunity to each such commis¬
United
States, with the aim of ence in rates, charges, service, sion to present its views and shall
strengthening
the
national de¬ facilities, or in any other
respect, receive and consider such views
fense, providing orderly industrial either as between localities or as and recommendations."
the

dent

summed

172

situated:

United

be condemned

dresses, I venture to say, could be

these

is

the

the

how

with

Federal

inter¬

where

State

Act,

shall,

States.

de¬

a

selling

the

by the owner of the property to

pany

in

Court

Supreme

an

of

This

174-A:

re¬

the

United

right of

to sell its

supported

was

by

Commission

of cases when the amount claimed

as

the interstate trans¬
"(b) No natural-gas company
mission, and the local distribution shall abandon all or any portion
of natural gas, and the consumers of its facilities
subject to the ju¬

of

be with

as may

defined in the Fed¬

companies)

energy

direction

the

nearly

eral Power Commission Order No.

gas

wise

some

of

cision

the

The

company

state transmission company

"Sec. 4. (b) No natural-gas com¬

utilization

reserves

shall

States

natural-gas

courts

That

applied to inde¬
producers
(natural-gas
as

a

affected?

be

serves

Pipe Line Company, 337 U. S. 498.

property

"At

is deprived'tof of

pursue

of

United

Thursday, November 4, 1954

..

the practice and procedure in sim¬
ilar action or proceeding in the

the Natural Gas Act and have you

sources.

relieved of the duty

or

sections

State
proce¬

action or proceeding
in the district

the
as

consider them

capita

im¬

limitations

I would like

few

a

the

and

purpose

of

survey

Federal Power Commission.
discussing the Natural Gas
I recognize and accept the

from

quote

in

or

practice

any

that

for

as

provisions of the Natural Gas Act

In

in

conform

Provisions of Natural Gas Act

Cigby discusses Administration's policy

located,
The

courts.

court

Member, Federal Power Commission

Mr.

be

may

dure

.

dedication

of

gas

re¬

With Cantor, Fitzgerald
(Special

to The

BEVERLY

Financial

HILLS,

Lee Harrow is

now

Chronicle)

Calif.

—

L.

affiliated with

Cantor, Fitzgerald & Co., Inc., 232
North Canon Drive.

Number 5374

180

Volume

.

.

.

The Commercial and Financial Chronicle

(1837)

make

The Over-the-Counter Market

market,

a

New

York,

issues for

directed

as

in

by

those* particular

reasonable amount of

a

stock.

By EDWARD H. LADD, III*

dealer in the Middle

a

West,

representing an individual
customer, wants to sell 500 shares
of National City
Bank of New

describing the over-the-counter securities market, Mr. Ladd

In

points out the broad extent and importance of this market.
Gives brief account of how the over-the-counter market oper¬

York

relation

their

of securities.
I

pleased

am

have this op¬
with you and

to

talk

to

will endeavor to outline what the

stocks is,

how
operates,

it

companies.
The

same

other

be said of many

can

important part

important in¬
stocks are not
listed on any securities exchange.
Actually, the number of com¬
panies whose securities are not

it

listed far exceeds those whose

and

try

give

you

idea

of

to
an

the

plays in the

trusts,

and

dustrials,

buying
and
selling of such

curities

securities.

"Listed"

As

kets

h

pure
H.

Ladd, III

i ng

a s

selling of
i t i

sec u r

One

"listed

the

for

and
Edward

mar¬

e s.

the

market," provided by

or¬

ganized securities exchanges, you
told about. The

have already been

other,
the
"Over-the-Counter
Market," which is a combination,
actually,
of
all
our
financial
communities and firms, is a na¬
tionwide market and by far the

larger market.
The

of

ume

There

which
to

are

trading

m a n

admitted

or

the stock

fact that

The

securities

y

securities exchanges.

on

of

a

cor¬

poration is not listed does not
necessarily reflect adversely on
the

the market¬
ability of the securities. For ex¬
ample, with the exception of Corn
Exchange Bank and Marine Mid¬
land, I know of no other bank
company

is

that

stock

listed

Stock

York

American

the

on

Exchange

Stock

99%

over

on

or

—

firms, such

as

New

the

or

Well

Exchange.

practically

100%

—

of the shares of the banks of this

same

The

only

companies

that

of

know

trade

respect, The First Bos¬
Corporation,
for
example,

ton

active

markets

over-

in

stocks that are listed

common

The

other.

public util¬

many

same

be

may

of

a

addition, a large volume of
business in listed industrial and
In

stocks

railroad

principal
counter

transacted

is

as

as
agent over-thenon-member firms.

or

by

Further, and of great impor¬
tance, is the ability to raise pri¬
vate capital through the country¬
distribu¬

over-the-counter

wide

tion

system

who

are

of the many dealers

members of the National

of Securities Dealers,

I

Ex¬

an

Insurance

blocks

of

securities

is

the

Company,

Stock

Exchange;

Phoenix
and
Contiental Insurance, which are listed
on the New York Stock Exchange.
Fidelity

you

Over-the-

either

Market,

in

the

that

are

have

have

you

broad

non-registered.

or

what I

From

idea of how
large a field we

some

how

and

really

said, I hope

tional

the

New

of

Bank

National

City
Chase Na¬

York,

America,
First National Bank of Chicago,
Travelers
Insurance
Company,
Hartford
Fire, Lincoln National
Life, Connecticut General, and
many others that I could list, is
limited entirely to the Over-theof

Bank

Bank,

Further, this group of unlisted
securities is not restricted to bank

insurance companies,

cludes

public

which I recall

Power

utilities.
are

Company,

Power

and

Lugoi,

but in¬
A

few

Arizona Public

Light

Connecticut

Service,

Puget

and

Sound

certain subsid¬

iaries of the American Telephone

system,
*A

by Mr. Ladd at the Fourth
Forum on Finance for Graduate

Students

Colleges

Instructors

and

and

Joint

in

Universities

Committee

on

American

sponsored
Education

resenting

The American Securities

ness" at

Graduate

Administration

New

tele¬

lecture

Annual

the

independent

many

York

of

City,

as

stocks

a

that

see

of

nation¬

be
easily

can

as

on

securi¬

a

exchange.

are

porations
ally

which

cor¬

nation¬

not

are

have

and

Such stocks

markets.

are

inactive
usually

local markets.
Naturally, most of the interest
in such stocks is local, and when
dependent

upon

account

an

to

comes

with

us

an

inquiry, we check the situation
in the territory and work out the
order
there.
Many
times
this
transaction

quickly
have

find

to

not

can

effected

be

local dealer

the

as

who

customer

a

may

is

interested in buying or selling the

you

an

this market operates,

idea of how
I

School
New

Sept.

of

York

9,

.

Busi¬

Business

University,

1954.




by
rep¬

Securities

giving
illustrations, based on my experi¬
ence
of operations at The First
Boston Corporation in our day-to¬
going

am

to

do

quotations available in those un¬
securities?

listed

so

capital and

by

surplus of

government, municipal

securities.
Our
business in transac¬

corporate

day-to-day

tions in securities over-the-counter
is

are

•

<

great many unlisted
are
quoted in the

a

which

stocks

throughout the coun¬
Ordinarily, there is a state¬

ment

the

to

asked

and

type

which

I

have

Association

Securities Dealers, Inc. and

The

control

operations

is

of

which

supervision

trading

in New
of - town office
trading depart¬

centered

York, each out
having a small
ment

our

is

of

-

subject

the

the

to

New

York

group.

vWe

specialize

in

many

of the

types of stocks which I have al¬

ready mentioned and make firm
markets in thoce securities. Our
out-of-town

offices

.are

free

to

of

other

are unofficial,
and
intended as a guide
approximate range within

sources,

in

listed

has

from

a

they

restricted

their

vestments to fixed income

securities have

become

stocks.

who

person

deemed

in

control

might

of

the

and they acknowledge that
buying the stock for in¬

are

vestment purposes and not for re¬

ally, those blocks sell at

Gener¬

slight

a

discount from the quoted market.

in¬

Secondary Offerings
In

addition, I referred to dis¬

tribution of listed
curities

paying1 secondary offerings.
year,
we
had
an

this

unlisted

or

se¬

over-the-counter through

Earlier

buyers of

With

be

com¬

in¬

substantially.
Through changes in laws and
policies, many institutions who
past

maybe

qualified

are

this

estate

.

that

de¬

wanted
to
liquidate
a
.million
firms that originally' shares of International Harvester
in bonds and worked common. Naturally, to sell a mil¬
closely in that field with the in¬ lion shares day-by-day over the

velopment,
specialized
stitutions

their

stocks

common

est

have

broadened

now

activities to

include

that

are

certain

inter¬

of

insurance

to

companies, pen¬
funds, universities, savings
banks, investment trusts and

sion

others.

Many

of

the

buyers for

these accounts prefer to purchase
their requirements in a transac¬
tion of size rather than in several
small

lots.

As

Counter

viously

has

amount

of

Over-the-

this

Market

stated

as

developed

large

a

in

volume

pre¬

listed

securities.

market

change,

on

prices

are

transactions

to

of

related

to

the

Securities

the

Ex¬

is not

always true and there have
times
at

blocks

when

substantially

depending

have

different

size

on

and

demand.

It

;

is

also

Counter

via

securities

ferring

Over-the-

the

as

In

control

of

stocks

they

may

There

of

that

a

and

before

are

liquidating

these

so-called

the

to

"control

public

o'clock

million

the

next

shares

had

sold.

ings.

I

of

spoke to
and

the

understand

tative

the

Exchange

their

of

you

mentioned to

operations

you

what their

Second¬

were.

over-the-counter

aries

represen¬

Stock

"special offerings"

comparable to specials

quite

are

on

an

ex¬

change and they operate the same
way, except that over-the-counter
reach

you

who

a

much broader f.eld of

when

dealers

not

are

you

include

members

of

those
ex¬

an

change.
I

hope from what I have said I

have given you some idea of
vast
and
how
important

how
this

Over-the-Counter Market is to the
securities

certain restrictions on

10

the

Many large blocks of stocks are
via secondary offer¬

re¬

that

com¬

Exchange. From
of the offering

distributed

company

company

the

on

morning

own.

their

rities."

of

mar¬

larger than the

was

mission

private

in

price,

the

concession to

a

3:30 the afternoon

am

deemed

allowed

fixed

a

with

dealers which would carry an in¬

placements, I
speaking of the placing for
the account of those who might be
to

line

in

was

centive to have their salesmen go
out and sell the stock".
That cob-

private
well as un-

made.

are

the Stock Exchange

on

group was formed and we

ket, and

that

Market

placements of listed
nsita

which

these

or are reasonably close
markets.
However, that

those

writing

been

the

or

offered the block at

cession

result,

a

counter

in the regular process of business
would take some time. An under¬

However,

industry.

it

is

impossible to cover thjs broad
subject in such a short time.

secu¬

f
reasons

for

New York Stock

selling, there

plenty; they may want diver¬
sification; they may need money
to pay taxes; or they might want
to sell the stock and buy tax-ex¬
empt securities.
Rather than go
to the work and expense of fil¬

Exchange

Weekly Firm Changes
The New York

Stock Exchange

has announced the following firm

changes:
Transfer of the Exchange mem¬

registration statement with
the SEC, they will dispose of the

bership of C. Francis Smithers to

stock

ered

ing

a

In

by private placement.

such an ac¬
count, we are restricted as to the
number of people that we may
offer the security to, and also the
type of the buyer.
doing

this

Charles C. Dunaif will be consid¬

for

by the Exchange Nov. 11.

Charles

F.

Zeltner,

the Exchange, and a
ner

in

F. S.

became

a

member of

limited part¬

Smithers & Co., also

general partner Nov. 1.

but

This advertisement is not,
an

and is under no circumstances to

he construed as

sale or a solicitation of an offer to
of such securities. The offering is made only by the Prospectus.

offering of these securities for

buy

any

that they are
the

The

the

securities

the

been sold

could

have

500,000 Shares

bought.

or

general principles used by

National

Association

of

Se¬

curities

Dealers, Inci in District
13, which comprises New York,
Connecticut and New Jersey, for
compiling

a

Continental Uranium, Inc.
Common Stock

list of stocks may be

of interest.
The

already

mentioned and with other dealers.

transactions

the vol¬

fide

the

put

distribution to the public.

10 years

over-the-counter

the

We

or

buyers on
notice that the security is
coming

creased

in

buyer

bid

obtained

are

principally with institutions of

the

the

that

effect

prices

National

the

from

which

and

Market.

is, how does a person know
that they are getting a fair price
for the security or buying it at
a
fair price? And, are there any

Briefly, The First Boston Cor¬
poration is a national organiza¬

dealers of

you

Over-the-Counter

the

One

to

with

doubt, certain
have in regard

no

questions that

day business.

tion

are,

newspapers

give

endeavoring to

stocks

of

bona

a

five

or

that

accounts

buyers.

are

Over-the-Counter

of

There

to

of

ume

type
is

We place the stock with

with four

or

20

the

consider

we

investor.

pany,

Increasing
Over the last

As for

Pricing

certain

Over-the-Counter Transactions

levels

^

stocks of

many

known

from

making markets

are

securities.

traded

Inactive Stocks

There

him

least

at

are

been

over-the-counter

try.

In

approximately $23 million.
We
are underwriters, distributors and

Counter Market.

and

can

corporations
quickly and

known

There

Market

Operates

buying and selling of shares
of stocks of such outstanding in¬
as

you

in

considering.

Over-the-Counter

that

stitutions

result,

a

effected

ties

who

those

Generally,

ally

through

a

readily see

can

this

of

in

•

issued

previously

private placement or in
the form of a secondary offering

How

Therefore,

over

so

transactions

of large

effected

facilities

Counter

admitted to trading on

American

could

stock.

distribution

the

Also,

—registered

the

would

we

53

said

which, like The
Boston, are not members
securities exchange.

First

stocks
that

on

Insurance

are

block

level

that

at

of

one

there

to

go

who

obtained

are

dealers

was

As

about other firms

Universal
which

the

not

securities exchange or an¬

one

form of

the

are

If

period,

around
-

this

In

Com¬
pany of North America, Fire As¬
sociation
of
Philadelphia, Cam¬
den Fire Insurance Company, and
change

is

would follow

we

moved

such

If

at

be said about in¬

may

stocks.

insurance

of

time.

sold

be

terest.

Inc.
The

surance

Or¬

requested, undef nor¬
mal conditions, we would submit
a
bid slightly below the market
for the block.
In this example
such
bid would probably be

funds,

Association

country are unlisted.

could

it

courses.

action

investment trusts
universities, savings banks and
other large institutions have in¬
pension

54 V2.

advise
the
seller
and
suggest that he
give us the sell order. If quicker

that conduct business overthe-counter in many listed stocks
in
which
insurance
companies,

ity

not listed

are

several

case

short

wants

would not pay that
the block unless we

same

be

listed securities

over-the-counter.

done

are

vol¬

ours,

on

There

of trading of

also

is

tions

We

public at least
It is also very im¬

that

we

for

two

San

thousand

Our market is

where

the

it

that

twenty

or

in

located

decides

price

"un¬

large

A

to

market

the

year.

common

ten

knew

the-counter

Unlisted

the

Market

sell

shares.

Over-the-

limited

securities.

listed"

maintains

Extent

Francisco
to

se¬

dinarily
in

the

leave

might reduce the market

institution

An

B,y no means is the Over-theMarket

either

or

to 53%-54^4.

listed.

Securities

Counter

They

would

the

there

two

are

54.

54 V2

Counter Market

you

know,

many

whose

are

the

on

would advise New
York on our private wire of the
purchase. The New York office,
depending upon our policy and
our
judgment of the market,

investment

corporations,

call

or

might be 54 bid, offered
Our Chicago office
be free to buy the stock

would

phone companies, and most all of
the
Natural
Gas
and
Pipeline

in

Market

Over-the-Counter

would

54^.

at

portunity

dealer

The

telephone,

market
at

a

to

two responsible dealers who are
making a primary market in the
stock.
Every
afternoon
quota¬

our
Chicago office
ask what the market is.
Our

and

private placement and secondary offerings

to

once

teleprinter,

Notes increase in over-the-counter transactions and

securities.

stock.

either

and discusses problems of pricing of over-the-counter

ates,

available

portant

Suppose

Vice-President, The First Boston Corporation

should make financial statements

13

value

market

should be at least

a

the stock

of

half

There should

dollars.

a

million

be at

300 stockholders in the area.

stock

should

value

and

have

be

a

selling

least

reasonable
least at

at

preferably at a
higher level. As far as the divi¬
dend policy of the
company
is
concerned, the public, through
the press or by mail, should be
$3

per

the

of

least
the

one

record

of the undersigned as may

company

or

be obtained in any State only from suck
lawfully offer these securities in such State.

f

r

•

I

Van Alstyne,

Noel & Co.

week in ad-

date.

share

Copies of the Prospectus may

share,

advised at
vance

Price $2.50 per

The

Also

corporation

November 4, 1954

..u

14

This

Our Friend the Stockholder

is

.

Asserting stockholder relations are really a matter of human
officer of corporation having largest number of

hand

at

means

in

Reviews

in.

System.

various

am

little

a

reluctant to speak

speaking in the
who

I

to

better

am

many

qualified

dis¬

the

cuss

of

presence

much

are

than

?

I

that

sub¬

rela¬

tions.
have

shares.

to

a

has

been

relations

Bell

investor

As

System

is

ought

program

I

to C

bentures
while

>•
stituted his only livelihood—this Democrat,
this sort of Democrat said to me, the Republi-.
of
This I cans would have fared much better had it not

along lines that will

*

the

understanding

been for Nixon.

I

issued.

the

This

means

that

owners

existing

are

counts

:held

are

than

women

the

in

of

of

names

been

gradually building up the number

closely associ¬

of

ated with this

steady

work" in

share

a

company
which
has

ship
—
approxi¬
Probably that is

of

have

may

today.

been

I feel

here

close

very

fessionals

have

done

about

it.

considerable

ing about

it

to

be

,

oppor¬

.

I

thinking

think¬

are

today and

that there will be

I

believe

Telegraph

Company.

When

War ended

in

had

680,000
ily

1945

about

then

From

stockholder

our

the

fam¬

to
1,000.000. and since
have added about 300,000
Thus the number of our

grew

1951

we

more.

stockholders

^

wee

stockholders.

1951

has

doubled
number

of

approximately

since

.that

the War, while our
shares has somewhat

than

more

doubled.

This

means

rather t^an big¬
have
supplied
our

more owners

ger

owners

tlarge postwar additions
Typically,
investor.

our

The

equity

is

owner

small

a

individual stockholders is 30
shares,
representing
at
today's
k

-rn a r
<

approximately

persons

75,000
three

own

shares.

largest

one

These

Union,

Hawaii, and
tries.

During

From

for

purchase of
stock

that

a

have
ber

but

It

are

is

the
are

is

of

stock

people

for

many
num¬

with

new

interesting fact

needed for

These

two

vestment.

on

owners

gain of

one.

stockholders

are

to

all

us

and

the

to

companies.

our

growth and development,

And

stockholders

present

our

if

not

are

man

iiirst share is just

as

new

dry

up.

and

die

investors
■

When

I

the supply

would

V

.

7;

•

asked

was

soon

what

title

talk. T said

mv

Also,

.ambition

their

in¬

who

gets his
proud of that

man

with

100

probably even more
they have the natural

to

increase

,

e

address

their

Mr.

num¬

Landon (before

general Management Section

American

Ga;

•Convention,
Oct.

by

12,

Association,

Atlantic

discount

to

of

pat'on

of

the

36th

Annual

New

Jersey,

City,

1954.




it

to

women.

wise

'

The
him

flow

stant
We

of

con¬

talking

parade

and

have

we

as

our

friend when he buys his stock, and
if

he

o>»r

doesn't

stay that

fault.

own

it is

way

That

he

Each

in America.

ers

the

are

dustrial

owners

machine

Stockhold¬

of this great in¬

which

is

Amer¬

h

of

them

is

likely

the

with

go

business—often without,
aware

that

the

whom

they

come

strength and salvation both
in peace and war. What could be
more important than
that cordial

stockholders.

and

have

to

of

owners

...

in

contact

friendlv

relations, based on
understanding and confi¬

mutual

tions

with

the

this

of

owners

a

«■

The time

when, it

was

long since passed
wondered whether

streets.

Brownell,

the day-to-day responsi¬
of all the officers and all
employees.
It is, therefore,
important that everyone on tie
pany are

stockholder

is

relations

Today

were

every¬

knows that they are—they are
The question
today is

must.

a

what

more

can

do

we

to

foster

this essential of modern corporate

fully
part

hands

the

of the

I

The

of. all

purpose

relations

activities

is

that

suggest

we

what

moment

it in
a

interested in about
which

they

have

a

company

invested

we

th^m

want

they

have

to

i>e

placed it

to be

ready to give
should need it..

happy
with

that

us

us more

if

and
we

think

in

stockholder
should

realize

that

most

these

ourselves—

other
the

type

too,

minority,

should

be

average

aimed

"good

but
and

we

have the

they

are

our

efforts

in

primarily at the
old

that

and

counted

Of

American

more

and

pointed

up

the

gone

through

at

the

But

the

have

people

Administrations.

Truman

not

was

encouraged

to

his activities.

pursue

forward

They

were

on
so

a

The

"positive"

naive

as

to

votes in their "positive" accomplishment of the

years"

20

of

St.

the

Lawrence

waterway.

They

place

they

want

the

on

course,

annual

income

they

company's

••

,

another phase of the Republican campaign.

is

that

Eastern

the

influence proved

Dewey

or

to

be

This influence, among other things, caused the Adminismake

attack

an

on

one

of its

own

men,

Joe McCarthy.

certainly there

Republicans

offsetting advan¬

were no

tages in the East.

to

The

have

Republicans

probably

were

that at the very time Congress was
hower

regular

reach

the other.

in the Middle West and

program,

chalking

up

even

of

glued

was

hurt by the fact

more

passing

record

a

ments, the public's attention

quarterly statements
provide the basic facts from which
can

or

escape

The results of the elections indicate that this hurt the

and

stockholder

that

tration to

-

is reasonably assured.
a

place and the still greater number who didn't give

way

so

much of the Eisen¬

impressive accomplish¬
on

the Army-McCarthy

hearings.

his

New

conclusion, and this informa¬
tion
is
enough
for many. But
when
questions
are
raised
we

Jersey is

an

outstanding example of the damage to the

own

we

They want
friendly and cooperative and
they have a great pride in their
Of course,

first

one

wrong.

our

job
of

the

the first

And

in

know that their investment is safe

each

approaching

relations

In

lift by springing the Harry Dexter White

Roosevelt

were

One can't

their

a friendly,
coopera-| I money. As I have stated before,
understanding group ofi I they are, by and large, average
stockholders.
We want each one Americans just like ourselves, and
of them to feel that he or she is they have the same basic interests.

part of the family—that he be¬
longs. From a practical point of
view, we need their money, and

a

Herbert

give the Eisen¬

are

and

a

®eneral,

Attorney

nothing that could have

the

"after

damn

consider, for

and maintain

tive.

the

ago

that the Republicans would go

was

passage

busi¬

stockholders

stockholder
up>

that for

was

political motley, campaigned

a

would be amazed to know the number of people who were against

to

build

the

.think there

-

a

hard hitting himself.

some

campaign of their "accomplishments."

the

Interested In

Relations

Presi¬

The President, himself, then

practical politician, sought to

of

which

of

theme

What Stockholders Are

,

The Purpose of Stockholder

i

months

Many
very

a

Brownell

and

ness.

success.

the

Democrats, dropped upon him frightened the Administration

are

stockholders

in the welfare

play

that

forget, held Nixon in deck until

heap of mock indignation which that political holly-podge called

the business

appreciate
the

and

Eisenhower seemed not to understand

know

tragedy

and that they are entitled
to know that the management and

important

I

case.

run,

employees

fact

admitted, in effect, for the first time, that he was

hower Administration

the

interested in the way

live

to

the so-called Democrats,

years

the

com¬

holders, that the stockholders

necessarily larded

were

successfully against Herbert Hoover and the sellfcag of apples on-

are

is engaged is owned by the stock¬

has

worth working for.
one

and

their properties.

manage

good

them

But the President, wholly in-

travelers—the

Republican President, and did

a

20

fact that the business in which he

for

fellow

and

was

What Mr.

payroll should be conscious of the

work

the type of campaign that Nixon

was

needed.

was

about two weeks before the election.

the

dence, should exist between these
people who own the business and
who

It

way.

Communists

with

became scared,

rela¬

sense,

way

experienced in American political campaigns, thought hard hit¬
ting, reference to the Communist coddling on the part of the
Democrats, reference to the fact that the so-called Democratic

bility

ica's

in this

thought from the first

with

individuals

In

slugging it out in the only

is that
At the
the people understood.

best national

dent's attitude

being

ever

great number of the American peoole,
campaigner .the Republicans had.

a

the
was

was

end he

re¬

employee of a large corporation
an active part in the stock¬
holder relations of bis~ company.

dealings

everyone

;

officer and

Every

amcngst

Stephen Mitchell et al went after

they have succeeded in smearing him so

reason

Administrations of Roosevelt and Truman

the
credit

person,

the

Adlai Stevenson,

reason

i out earlier

plavs

stays
friendly is important not only to
here in this room, but to

one

and

deeper.

all of

us

be¬

before.

a

It is unfortunate that the President would not let him slug it

worth mentioning is that, although
stockholder relations usually head

much

out

merely

he
f

we

things

say

them

said

a

Another thing which I think is

stockholder

starts

crowd, and

a

important

are

cause

not

to

profess:onals have

were

hard, the

so

much

stockholders.

new

therefore,

are,

Democrats

Nixon, for his ability, for his energy and

awful- shape

an

in¬

previously the

the

that

are

for

have no real feeling that the country would be
if something were to happen to Elsenhower
to become President.
Privately these Democrats
concede that he is a man of tremendous ability.

in

vestments.
I mentioned

facts

They

courage.

not 1 and Nixon

equity

in

the

admiration

secret

growing partici'-

women

"We

States."

Now

of

matter

a

themselves:

to

"United

way

tru® that

seems

the

a

shareholdings

be

may

only,"

up to
some
sponsibility

"Our Friend the Stockholder" best

company.,
*An

women

instances

fits my thoughts and feelings. The

f.o.

the

of

"name

"7-;

to be

as

some

dhat

would

of

people are just like
just like our friends.

share

in

shares

.shares—and

one

Although it is probably

ought not to hesitate to

I

of

in

happy and friendly toward our
companies, their urge to add more

are

proud

The

us.

that

new

net

a

small

tremendously

true

greater

even

relatively

an

their

was

It

number

average

.we

of these the

shares

our

an

owners

existing
tremendously

trying

in

owners

vigorous counter attack

a

said

rea¬

.

new

stock.

our

investment.

sizable

part of the

value

tb?t will be of interest to

state

145,00Q

many

our

owned

years,

some

correspondence

that

first

from

bought

our

know

and

un more owner¬

financial health of

Alaska,
foreign coun¬

80

1953,

stockholders

owners

It is to these

from

and

over

groups.

every

come

19,000 communities in
the

the

are

stockholder

Our stockholders

in

$5,000.

share;
two shares; and 100,000

own

ten

own
:

t

e

66,000

our

build

important

holding of

average

our

.

is

with

For this

those

to

capital—about $4 billion.
.

there

talk

might be used for

As a background for what I
plan
to say, you might be interested in
a few facts about our
stockholders
in the American
Telephone and

until

share

and more

more

time goes on.

as

son,

at

which is constantly needed for its

Our subject

Many people

trie

This supply

on him that a lot, too many, people have
certainly hope Eisenhower continues to
live; it would be terrible for Nixon to become President of the

to be held by

seem

husbands and wives.

share

new

the

on

most of which

Bar*eron

have

against the Vice-President of
the United States. They have been so bitter and have made such

marked growth in joint accounts,

a

time.

asking

heart and

my

two-

through
in

the

you.

to

in

a

people that American
industry must look for the money

honored

welcome

tunity to talk to
is

mind

greatly
I

and

this

to

Whatever

going

committee's

your

me,

admission

table

is

and

one

coming

the

the urge to

company

card

speakers'

all

ther*

Landon

than

mately 1,300,000.
my

W.

hold,
of

holders

brand

of
S.

they

stream

bottom

stock¬

other

shares

Carlisle

tive of the feeling which the Democratic pro¬

,

and there is

men,

"

any

man

Congress, when

80th

a

However,

holders

the

years,

experts

more

spell of five or six years
the Republi¬
came into control, and another after Truwas reelected in 1948—and this has con-

cans

Others are working to in¬ .people in all walks of life.
theirs to higher figures. In emphasizes the value of a plain-

in your midst.

have

the

he served one

mean

before

a

and

—

the dead cats, as I pre¬

over and

being thrown all over the place, there comes up

are

picture of Vice-President Nixon.
Last Monday, Election Eve, a Democrat who has served twice
as an Ambassador to Latin America, by which

stock¬

shares

30

—

our

maintain

typical

our

the

be conducted

dicted,

really

is

that the campaign is

Now

most

a

•

stated,
in

think

we

By CARLISLE BARGERON

father treated.

my

human relations.

of

matter

have

holder

they look
goal of five or ten

of the News

safest

the

is to treat each share

Stockholder

I

that

Ahead

respected

that

Washington

;
share or two during recent ing to-meet with them as with the \
Whereupon I laughed heartily as the ex¬
but not nearly as much as neighbor across the street or over
pression goes' and said "Oh nuts, and you
the backyard fence.
^know you are giving me a lot of bunk."
might be anticipated from the
^
This man's attitude, however, is indicalarge amount of convertible de¬
Also, more of our individual ac¬

up

You
some

"real

forward

From

a

nat¬

guide.

a

Many of them tell

letters

or

be

When I asked him what he meant, he respite of this, the average number 'speaking, simple, down-to-earth,
of shares
per
individual holder person-to-person approach— not }, plied that Nixon had alienated "a lot of us
'■
fair minded Democrats."
•
stays quite constant. It has gone .talking down to people, but try¬

ject of stock¬
holder

their

in

crease

im¬

portant

ber of shares.
us

find

me

helpful

small

here today for I know

friend—a

a

I

mother or
That objective

trustees of stockholders.

are

we

just the way I would want

owner

meeting

forget that they

to

my

obligations to stockholders and
done to improve stockholder relations in the
Concludes, corporation officials should not

reveals what is

Bell

interested

talk

or

rule for

employees of a
role in stockholder relations and should
are

contact—should

friend.

stockholders maintains that all officers and

know what stockholders

everything

letter, printed material,

a

Thursday, November 4, 1954

...

to them—whether it

-say

ural and human; as nearly as pos¬
sible
the w?v
we
would
write

relations,

a

or

personal

Secretary, American Telephone and Telegraph Company

corporation play

that

means

write

By S. WHITNEY LANDON*

I

Chronicle

The Commercial and Financial

(1938)

American."

should

be

forthright in

We cannot,
future

but

of

course,

we

can

our

Republican
ence.

reply.

an

predict the
restate 'in

outstanding

dricksen.

and cents,

and

stockholders also want

Continued

on

page

28

man,

Not

'

Eastern,

to

the

But he

powers

Senate

was

so-called

demanded

by

placed this

year

over

the

not "liberal"

liberal

influ¬

Democratic

or

in¬

global minded

that be replaced him in 1943 with Hen-

necessarily brilliant

members of the

above the dollars

this

by

1942, New Jersey Republicans elected Albert W. Hawkes,

enough and the

everyday language the important
over

done

cumbent, Smathers.

facts.
But

In

party

but one of the most popular

Senate, it seemed he did not meet the parfection

the

Eastern

Republican

"liberals,"

so

he

was

re¬

by another candidate, former Congressman Case.

Volume 180

Number 5374

.

.

The Commercial and Financial Chronicle

.

English!

capacity

spite

requirements if they be required
on
a
large scale. Maybe — the
Government should loan money to
railroads for equipment and

*

the

modernization of
back

of

greatly

our

I hasten to add here that

celerated

to

f

The

the

our ac¬

merely

moving

things

examples of some of
that might well be

considered

the

immense that

so

in

connection

complishments *0ften
—

basis

with

a

-

£

•

country—on

fair treatment

of

EariL.But*

the present

%

competitive pricing system is not function¬
ing effectively. The distribution lines have clogged

efforts
is

Government has had to unplug them. It is today
still siphoning surplus gluts out of
clogged distribu¬
tion channels."—Earl L.
Butz, Asst.- Secretary of
Agriculture.
/. •

link

interference

ment

production

prevents

adjustment

either

economic

our

admittedly essential

national

from

defense—to

which

the

a

railroads

not, as they did in World
II, return quickly to full
strength and vigor as the trans¬

are

War

portation

in

work horse

national

of

Some immediate

changes in the

condition in which railroads oper¬

in

ate

Continued from page 11

•

;

.

, ,

.

peacetime

a

have

I

as

economy

such

would

the railroads in
modernizing their plant and equinment—at

cost that would not be

a

noticeable to the American people.
This assistance rendered by Gov¬
ernment would be much less than

furnished

that

other

of

forms

transport.

It would

strengthen

our

tainly it is not in, the public in¬
to encourage the use of a

maintenance of protection at railI
r
^ crossings would be fair

terest

—90%

high

on

I am happv to know t^at the
serious situation of transportation

petition. Perhaps it is in the pub¬
lic interest that this be done. Cer¬

cost
method
of transport
through subsidy, at the expense of
a' low cost method of transport

that

it

subsidized.

not

Certainly

seem

a

tion

to

transporta¬

encourage

in

participation

,

via

Government and

by

the

part of railroads. ;

(3)

There is

10%

■, *

moving

presently

airway,

highway and water¬
three kinds of traffic: com-

way,

itr is not in the interest of national
defense

90-10

,

■li.h'-i. and

tonnage.

carrier

private

Common carrier tonnage

by subsidy that will not serve is all that moves over the rail¬
as well the defense needs, roads. The four major methods of

nearly
of

nation

our

will

as

another

transportation agency that is
subsidized.

Instead

not

of

advocating
removal of subsidy from our com¬
petition, or direct subsidy to the
railroads, perhaps we should seek
equality
of
comnetitive
ooportunitv somewhat along the follow¬
ing lines:
"

(1)

have

I

that

indicated

the

transport in this country should be
alike

treated

to

Federal tax

on

transportation—3% on freight and
10% on passenger service. Don't
you

to

would

for

roadwav

maintenance?

a

this

oil.

supply

In

competition

insofar

maintenance

is

would
to

be

not

a

Government,

the

effect

of

concerned.

as

it should have

increasing

which Federal
would be paid.
tions

tive

The cost
and

There

complete tax loss

upon

(2)

roadway

as

would

of

ind

demands.

of

separa¬

protec¬

devices at grade crossings

is

grossly unfair to the railroad in¬
dustry. Legislation should be en¬
the lines of the Hobbs"
Truman Act concerning navigable
str^'

-

rso

t

n

th° future the

railroads would be called upon to
pay

for only the benefits actually

war

the

at

anpointment

the subject

worthwhile

that

sure

am

will

their

from

ensue

this forward

The proposed plant is

result of President Eisenhower's sug¬

a

gestion, made in his January budget message to Congress, that the
private electric companies join with TV A in supplying part of the
Atomic Energy Commission's needs.' There was
nothing new in
this proposal.
Two different groups of midwestern utilities had
already been formed for some time, to construct large generating
plants to supply power to the AEC.

The two subsidiary companies
building these plants have been popularly known
(Electric Energy, Inc. and Ohio Valley Electric
Co.). But for some strange reason,there was no political outcry,
over the formation of these
companies,,? and the construction of
these power plants is now well underway.
They were designed,
just like the new proposal, to help TVA shoulder the increasingly
which have been
as

EEI and OVEC

heavy burden of supplying

power for AEC, which now uses (it is
estimated) about 5% of the total U. S. output of electricity. Simi¬
larly, South Carolina Electric & Gas has set up a subsidiary to

build

medium-sized

a

plant, part of whose output is being used by

the AEC in the so-called Hydrogen Bomb Plant in South Carolina.

The Middle South-Southern Company proposal was set up
along generally similar lines to these earlier projects. Because the
entire output would be sold to a single customer under contract,

operating risks would be considerably reduced and hence

the insurance companies would be

willing to finance

stantial part of

the cost through loans.

would set up a

subsidiary and furnish its

about

very

a

sub¬

The two utility companies

overall return

an

for this proposed

true

How¬

agencies.

under the proposed contract, the overall return

ever,

is

customarily allowed

are

the rate base by state regulatory

on

money—

'

Operating utilities
of about 6%

stock

common

$5.5 million.

rate base

on

subsidiary would be reduced to about 3%%.

It

that, because of the small amount of equity capital, the

common

stock return would be about

than the usual return allowed

on

9%, but this figure is lower
stocks by

common

the regulatory

commissions, which in the: following example works out at about

"

"a'.-a

11%.

..

Cost of

Weighted Cost of

Capital

Capital

$1(10 Capital

50%

3%

15

4

0.60

35

.

results

investiga¬

11

3.85

have

the return

were

harped

the

on

$1.50

6%

_100%
Political critics

this

the fact

Witherspoon Adds
CSpecial

"irv

to meet wartime

There

in

Railroad

portation
defense.

would

be

some

neacetime

econ¬

is

essential

full-cost

a

an

annual

million.

to

basis

deficit

Tax

Financial

the

Chronicle)

$5.95

return"

"9%

as

though

the whole cost of $107 million—ignoring

on

—

Nor¬

has become

Lawson

of

nearly
some

Seventh

the

rail

car-

this phase of their opera¬

to The Financial

SAN

Rugen has

with

ated

Rugen
man

Hutton

F.

E.

&

should

formerly with Rey¬
Co. and Walston, Hoff¬

&

Goodwin.

state

regulatory

discontinuance
service

bodies
of

(Snc'i'

to

The

Financial

C.

Peter

Shunk,

J.

Wentworth

William

N.

Mutual

and

Speros

with

Fund

are

Associates,
Street.

444

prevent

at

a

loss.

given

to

a

program

for stock

Colo.

DENVER,
Bondhus
now

Managem't

Finis

and

Hamilton

with

Norwood C.

—

McClure

not

railroads

hope to maintain

are

Management

Corporation, 445 Grant Street.

their, posi¬

,

J. W. Hicks Adds Two

they

ficiaries—and not entirely by the

to 'perform 65 to

Mr. Cole

railroads

large

rett-Bromfield & Co.

/

75% of the much
movement of
traffic, To

public

agencies,

power

iSpec'r.'

to

The Financial

DENVER,
Cole
come

&

and

Colo.

John

affiliated

Co.,

Inc.,
was

—

Charles

with

J.

W.

company

would

Yet it is under¬
in existing

details of the proposed contracts have not

yet been published by the AEC.

Scandal"

the "Dixon-Yates

exploit

cleared up.

resulting

herrings

red

and

inferences

ments,

Open gearings will begin Nov. 4,

inaccurate state¬

it is to be hoped that the many

and

as

a

from

attempts

to

political issue, will be

'

from

the

widespread

newspaper

publicity

impugning

the

integrity of their senior officers. Middle South, with a much larger
stake

(79%

as

brunt of this

21%) has suffered the

compared with Southern's

campaign, particularly due to side issues with respect

subsidiary, Mississippi Power & Light.

to its

has declined in recent weeks from 32% to 28,

close)

(Monday's

from

its

29—a

to

with about

a

net

Middle South's stock
but has since recov¬

decline of

12%.

Southern

11%. These declines

3% decline in the Dow Industrial Average

1954 high and 6%

in the Dow Utility Average.

L.
be¬

•Electric

Hicks

equity interest)

have

their invest¬

contracts.

compare

Chronicle)

W. Deal

on

private

the

Company has dropped 2 points to 17, or about

free enterprise system

during a peacetime economy
share in but 50% of the
country's traffic —and during a
wartime economy are called upon

at all

return

no

stood that the rates would stand comparison with those

ered

can¬

if

our

con¬

happened

(as

if other contingencies should occur, Middle

might get

substantial taxes—local, state, and Federal.

The Financial Chronicle)

(Spec'r.l to

estimates

present

Naturally, the stocks of these companies have suffered some¬

piling railroad equipment for
emergency use. The

Unlike
pay

what

With Hamilton

the plant's

If

time, under mutually agreed payments, in which event the

however,

Chronicle)

SAN FRANCISCO, Calif .—John

unnecessary

that is operated

Southern

above

go

Thus far complete

Tb»e~ With Mutual Fund

have

(7) Serious consideration should

should

cost

the proposed rate

on

operating costs.

companies would have to find buyers for large amounts of power.

AEC

right of appeal to the Inter¬

state Commerce Commission when-

estimated

at any

Com¬

was

&

be

Moreover, the AEC could cancel its contract to take power

160 Montgomery Street. Mr.

pany,

will

ment.

Chronicle)

FRANCISCO, Calif.—Rob¬
become associ¬

J.

subsidiary)

their

the entire $107 million. More¬

on

statistical estimate based

a

the

and

South and

"

ert

Montgomery

railroads

schedule

with the EEI plant) or

(Special

small part of the total, and that

(through

the 9% return for the common stock is not guaranteed at

over,

all, but is merely

struction

Hutton Adds to Staff

$700

tion.

The

West

Street.

to

form

companies

utility

con¬

215

Inc.,

that it applies only to a

two

responsible for the carrying costs

national

amounts

relief in

afforded

be

on

trans¬

passenger

It is also required in the
pt i s
operation;

on

should

The

ANGELES, Calif.

S.

pany,

nolds

(5)

be

LOS

ability of

tation.

the

<

man

to

Additionally, the cost of
of bridges and pro¬
tection at railroad grade crossings
should
be shared
by all bene¬




to

I

looking step.

tions.

It would

Atomic

Energy Commission, thus reducing TVA's
the AEC (which have been
growing fast)
releasing more power for TVA's regular customers.

and

tion, and I think the Administra¬
tion
is
to
be congratulated for

maintenance

present.

the

power commitments

the

in all of its phases.

tion in

at

for

power

a

Presi¬

of the

received in grade crossing separa¬

as

contract to build

dent's Cabinet Committee to study

a

resulting increases in
employment in coal and transpor¬

acted along

Company have been
some time in connection with the
proposed
600,000 kw. steam generating plant at an esti¬
mated cost of $107 million in
Arkansas. This plant would furnish

under political fire for

rec¬

certainly be
eliminated. Its
the

to

of

from

(6)

grade

maintenance

tax

or

obstacle

severe

earnings

income

the event of

present volume in peacetime is

equitable basis with t^eir

morp

users

the importation

greatly lessened

way

This would place the railroads on

between

as

Curtail

improvement

funds

Southern

% of Total

has been
too level bv

nected with Witherspoon & Com¬

omy

by the states in Federal aid high¬
programs—and earmark these

sure

avoided.

and they be required

dollar for dollar—as is being done

woefullv weak.

country

ognized
recent

fully compensatory and

be

be

discrimination

of this tax money to the railroads

to match it,

\ this

easily be
that rates

provided

think consideration might be

given to returning the equivalent

could

treedom

residual

a

permitted

Southern Company

—

and

r

in

over the railways. Neces¬
safeguards to prevent abuse

ot

entirely inadequte to meet present
Yet there is

and

substantially

defense where ad¬

now

Utilities

move

sary

(4)

day costs of performing the serv¬

private

contract carrier tonnage

rate structure of transportation is

ice.

and

—

mittedly it is

South

ma¬

suggested

assist

terially

Can Railroads Meet Emergency
Defense Requirements

Middle South Utilities
Middle

normal

defense.

prices!

or

of

could

producing more than
people want—at least at prices asked—and govern¬
we

competition,
this admittedly

bringing

for

point

railroads'

such

segment

system—and

competition, i

»■

the

of

meet

to

fast

weak

-

.

restriction

and

up.

plain English,

the

all and

pattern of regulation,

taxation,subsidized'

"Our

In

to

favors.to,none. As I analyze the
facts, after careful documentation,

seem

by comparison.

meager

this

system .in

ac¬

Utility Securities
By OWEN ELY

suggestions I have advanced

are

arevpaying dividends, but

job is

.

charges" for
freight.

Government

And

move

in

strong and healthy rail transport

stuff

the

efforts

plant, to be paid
period of years by re¬

over a

duction

stepped-up efforts to merchan¬
dise government-held
surpluses
both at home and abroad.

Public

of

users

I think they fully

recognize the shortcomings of the
ability to meet defense

"This is the grim prospect we

in

the

railroads'

corporation.

face,

large

are

transportation.

commodity loans. It is nearly twice the size of
largest non-governmental
*

break

industry;

Government

15

of

amount

soon

(8) The various branches of the

Commodity Credit Corporation is the
country's largest, corporation, with more than
$6,000,000,000 invested in commodities owned or

■f

unused

would

bank in any

"The

our

such

carry

In Plain

in

(1839)

Colorado Building.
formerly with Gar-

Jan.

15,

Jan.

8,

1951,
1953

substantially

Energy,
was

set

during
and

which

(in

on

up

the

Aug.

through

Inc.

a

Middle

South

Truman Administration.

28,

1953

institutional

Utilities

has

a

10%

order dated
Other SEC orders dated

preliminary basis under an SEC
approved
loans.

the

financing

of this company*

16

(1840)

The Commercial and Financial Chronicle

ket.

THE MARKET... AND YOU
By

paving the

STREETE

WALLACE

The issues did share in

the post-election
runup in full
measure with General Motors

Continued from page

comfort

was

be

to

and

to

rather

a

sharp

but

in

crease

generating capacity by

advantage of it with
the best
one-day gain of this
year.
The last time the list
was

exuberant

so

trading session
April.

for

was way

last

The

thoroughness

which

the

pointed

opinion

one

polls

strength had mitigated against
element in the

any surprise
election and

generally seem to
good divi¬

have

anticipated

dend

action

to

the

hilt

and

have

greeted the expected
back news with a good deal of re¬
straint.
General Dynamics
with elicited a rather surprising

the opposition

up

Aircrafts

the

satisfaction

the

preferred retire¬
plan. This probably was

due to the fact that it had sold

in the week's

tion

session

covering

single pre-elec¬
as

some

short-

accomplished.

was

Election-Plus-Production
Bullish

Partly due to the election
and
partly because of the
rising production rate, steel
shares

were

able to shake off

the

chagrin over merely the
regular dividend declarations.
The fact that

they are cover¬
ing their present dividends by
good margins plus the fact
that

yields

An

out

traneous

*

without

any

ex¬

help whatever

was

rather than the election

that

pushed the rubber shares to
fore, the specific encour¬

and

continued to bound sub¬

sequently reaching
2Vi

some

the

less than

agement coming from Good-

times

the

#

probably the
outstanding case of election
jitters. The average had de¬
clined somewhat
steadily, in¬
cluding five out of the half

$20 at which it had

has

Potash

the

been

member of the division

easy

moderately well.
*

more

strength. For Monsan¬

*

year,

but

marked

.

Rails shared in the
to

overall

a

it

good

new

en¬

has fitted

has

no

cut

pattern and

erupted in wide

moves

of the carriers

are

even

in

a

Oils continue on a some¬
position to attempt.
they
what
mixed
pattern which
The technical indications
High-priced
also has kept them from show¬
People's Gas which narrowly
were
all favorable, but not
escaped making the list of ing any decisive direction. vital yet. A good rebound on
new lows, this week reached
Royal Dutch came out of its favorable election news

price level below that wiped
out a full
year's progress. It

was

saved

by the election.

❖

*

Varied Dividend News

Apart
dividend
in

a

from

news

the

election,

made itself felt

variety of

ways,

ranging

initial

shrug

over an

an

extra for

to

from

recent

retirement

semblance

some

of

to

show

strength.

Standard Oil issues

were

con¬

tent to mill around

^

International Nickel,

restrained spurt as Gen¬
Motors doubled its
pay¬
ment for the
year-end
a

eral




plum,

the

aimlessly,
with Calso a bit
ready to back
up on heaviness.
Until the election

shares

were

the auto

undistinguished

and derived little in the
way
of support out of the

showings

of the

new

and-see
over

models,

attitude

whether

as a

wait-

developed

Chrysler

improve its share of the

can
mar¬

clouded any real decision over
whether the correction is
finished

The most op¬
timistic note is that rails ap¬
pear
a

or

are

to have found support at

in

make
one

new

high again after

rebuff.

[The
article
time

a

September and
position to attempt to
and

a

views
do

not

coincide

expressed

in

necessarily at
those

of

this
any

market

in

the

action,

change,

resulting

composition

of

from

the

new-

is

market forecast this

column would confidently
namely, that the heterogeneity of the Election influences
explanations will be fully equalled by that in the
behavior of prices.
one

make:

market

The

varying intra-market and intra-industry

of

course

some

individual issues since the Republicans' victory on Election Day,
1952 is demonstrated in the following intervening price changes.
American Metal

-f 82%

American Smelting

Standard

Oil

N. J

Hiram

J.

+45

Pont

American

Cyanamid

__

Federated

Dept Stores-

+20

Interstate

Dept. Stores.

General

Eastern

—25
Dow-Jones

The

United

Industrial

&

Stock

26

+

25

—

27

—

11

+100
9

—

Airlines

Airlines

35

+

Ohio RR.

Pennsylvania RR.

+50

Chrysler

—

Columbia Broadcasting
Zenith Radio

6

—

Motors

+42

Stevens

Baltimore

+36
—20

18

—

Lehigh Coal
Peabody Coal

—16

_

P.

5%

+

Kresge

5

—

Woolworth
United Merchants

+30

—

Walker

Schenley
du

8

—

____

Amerada

+

50

+

-

Average Advanced

by

7

25%

during the period.
This

year's pre-Election month of October's fall of 10 points
issues rose 10% or more, 61 other issues be¬
tween 6 and 10%, and 251 additional stocks by less than 6%.
Again divergently, 435 issues declined from 6-10%, and 41 fell
by more than 10%.
in

the averages, 59

At
when

the
the

this

of

eve

Election, during

actually

averages

dropped

last

2.45

weeks, 249 issues nevertheless

clines), of which no less than
(against only 13 lows).

19

stocks

Friday's

points
rose

hit

weakness

the

to

lowest

(against 670 de¬

highs

new

for the

year

What

This

Investor

Policy?

pervasive

divergence, combined with our afore-dem¬
onstrated conviction that prices over the near-term will generally
follow unpredictable crowd psychology, leads to the decisive con¬
clusion that investing decisions in expectation of long-term hold¬
ing, should concentrate on appraising individual issues on quanti¬
tative

criteria

time is

of

value—resting

good time to buy

a

the

on

basic

Gearhart & Otis, Inc., of New
York, and Crerie & Co., of Hous¬
ton, Texas, are offering, as a spec¬

Oil

Co.,

Inc.,

American voting trust certificates
for 750,000 shares ofTcommon cap¬
ital stock, at $2.50 per share.
The

net

proceeds

from

the

fi¬

nancing will be added to the com¬
pany's funds and will be used for
exploration, drilling and develop¬
ment of presently held
acreage;
operations
when

expenses

exploration

ment of

is

additional

the

agement

of

Inc.

pany,

acreage.

of

Pan-Israel
to

man¬

Com¬

contracts

and Israel-Mediterranean

Petroleum,
Inc.
recently began
the drilling
of their first deep
test well on a jointly held 90,000
acre

of

concession

Tel

area.

in

Aviv

a

few miles south

the

Coastal

This well will seek

tion to

a

Plain

produc¬

depth of 8,000 feet.

Humble Oil & Refining
Holders Made Offer
The Standard Oil Co. (N. J.) is
offering shares of its capital stock
in exchange for shares of capital
stock

of

Humble

Oil

&

Refining

Co. in the ratio of nine shares of

of Humble Oil & Refining Co. The

licenses

the

covering

800,000

gross

petro¬

approxi¬

acres.

One

pioneer groups in Israel's
their

properties

scattered

throughout the

in

which

areas

company

of

Co., C. A., this

operations

confine

leum

search,

terms

Israel, where these

companies hold

mately

the

Oil

the

with Pantepec Oil

the capital stock of Standard Oil
Co. for ten shares of capital stock

sister

oil

and

develop¬

and

intention

to the State of

the

as

required; and for the acqui¬

sition,
It

and

any

oil and/or gas.
Under

Pan-Israel

that

favorable for the accumulation of

Stock Offered

ulation,

principle

good value.

a

Pan-Israel Oil

the

Chronicle. They are presented as
those of the author only.]
.
"

stock

to

change

Divergence of Prices Too

of

with

relation

currently-enacted

There

not.

level well above the lows of

August

in

*

Congress.

,

had lost ground.

a

particularly

*

is little prospect of decisive economic

measure

was

mostly a
to and du Pont it has been a case of
lolling around.
The
case
largely of backing and fact that they had a good day
filling with some occasional immediately before the elec¬
wide moves pretty well can¬
tion, with only four out of the
celed out subsequently. Rohm 20 carriers used in
the Dow
& Haas, on the other hand, rail
average losing ground,

the

first month of 1954 that

»

...

levels in six
*

was more
encouraging to the
of followers of this long-neg¬
half a dozen to a dozen points lected section than their
dozen
sessions
postimmediately
before the election. In fact, a at a clip in either direction. balloting spirit.
Rock Island
The pre-election lull held it to was the star of the
minus sign of more than
$3
group,
for the month of October was a range of only a point and a erupting to a new 1954
high
not only the widest
monthly couple of sales last week, by after some fat gains. The new
change in this index so far contrast. *
high is a feat that not many
*
*

this

taxation, however, the current favorable stop-gap

"NET"—there

a level
price of

begun trading as this year
year's distribution and split
started.
proposal. The uncertain item
*
*
*
in this group has been Lee
Tobaccos came in this week
Rubber which topped out re¬
for one of their periodic hope¬
cently after a good runup and
ful rebounds from all the can¬
hasn't shown any convincing
cer talk on
only the slightest
sign of changing its ways even
of rumors that some of the
through the post-election latest
tests will dissipate any
rally.
link between cigarettes and
*
*
*
lung troubles. American To¬
Fading Chemicals
bacco on a good gain made

but

tie

insurance

arrangement has had no opposition on party lines.)

and

thusiasm

were

life

<

off

recent

*

as

rich credo, in

One individual favorite that
stood

C^^namid has featured in the

Utilities

various negative effects.
policy is committed to high
big spending; in contrast to the Republican

accompany

harbors

expansion

consumption. And apart from their general soak-thecertain specific tax areas, as capital gains, insurance,
petroleum, the upsurge in Democratic power may be destructive
to the investor and to the price of his securities.
(In the case of

Independent Sprinter

wishful

will work out

taxation

Deal-ish

as voiced by Dr. Burns, to give tax reduction priority
increased spending, and to use it to stimulate investment as

well

times that not and American

that the merger
after all.

to

1956.
of

area

Fair

and

over

situation, still rather clouded,
has been able to inspire ^ome

investing in the hope

New
taxes

around 5 to 7

inspiring earnings statement.
The Youngstown-Bethlehem

the

Then

philosophy,

still running
Chemical issues, the pre¬ the "most-active list" where
% helped buoy
the shares in this
miere growth group that had there have been few appear¬
group. Na¬
ances from this
tional
group recent¬
Steel, however, had spearheaded the long advance,
been somewhat more
note¬ were
laggard despite brief ly. Moreover, it was joined in
the top activity column by
worthy on the soft side in strength engendered by the
also fared
results.
American Reynolds which
response to a relatively less election
are

cratic resurgence in

in

American Metal Co. which,
considerably when a stock
joining the ranks of the
results were in, considerable split, widely expected failed
sprinters, posted several new
doubt
had
been
generated to emerge from an earlier di¬
highs.
It had independent;
that a selloff was due. In fact, rectors' meeting.
*
*
*
strength throughout the pre¬
the nervous decline of last
week had even been stemmed >:• It was also dividend action cautionary pre-election selling
before the

even

unpre¬

dictable, of a damaging change in business psychology—at least
the short-term—ensuing from indications of further Demo¬

this week.

increase and
ment

back

was

of course,

is the possibility, though particularly

there

Overall,

are,

over

wide-moving class again

its dividend

over

which

the

already

been

Toward the Down-Side

The best acting
group was McGraw

the

in

have

event,

any

Offsetting these bullish market elements, there
bearish accompaniments.

great extent.
Electric

In

politically destructive potentials perhaps
fully discounted in their recent market jitteriness.

derived from the unexpected

full

1970.

utilities'

despite

outside influences, nota¬
bly General Electric which,
monetary dip in Boeing Air¬
while it showed good buoyan¬
strength of the Republican plane as traders sold on the
cy, certainly didn't share in
tickets in this week's elections good news.
,
the general enthusiasm to
*
*
*
and the stock market
any
took
There

5

Observations...

way.

Electrical issues for the
most continued to rest

Thursday, November 4, 1954

...

contain

are

country;
several

known structures considered to be

terms of the

exchange offer which

expires Nov. 30, 1954
in

are

set forth

prospectus dated Oct. 29, 1954,
copies of which are obtainable
from the Corporation Trust Com¬
a

pany,

15 Exchange Place, Jersey

City 2, N. J.; First National Bank
Houston, Texas, and Morgan

in

Stanley & Co., 2 Wall Street, New
York 5,

N. Y.

4

Volume

180

Number 5374

...

The Commercial and Financial Chronicle

(1841)

the

those

of

far

even

capital gains.

ate increase in sales volume strik¬

ing its excellent price appreciation
potentialities,
its
preferential
status, and the fact that it is sell¬

which

company

The sharp rise in earnings
notwithstanding the only moder¬

geographically.

Security I Like Best

substitutions

riod.

Kaiser's
capitalization
as
of
May 31, 1954, consisted of 3,783,-

The
cess

diversified

780 shares of $1 par common (pre¬
ceded by long-term debt of $163,-

Continued from page 2

for

better

in

anticipated

ex-

could

ities

further

for

building

growth, is the
and its allied

industry

ingly

highlights

the

to

extent

Kaiser's
earnings
have
been reflecting the inevitable un¬

840,000); 375,000 shares (par $50)
of
$2.50
convertiole
preferred
stock
(each
share
convertible

usual

that

expenses

plague

a

company when new facilities first
go
into production; and it also
highlights the commendable rate

3.7%.

price

of

at which the company
from its period of

Both

the

stock

are

rate

contrast, the possibilities of substituting aluminum for

profitably utilized in construction
work. At the present time, there

The Kennecott Cop¬

all of the $2.75

con¬

share; and in the past four fiscal

steel and wood

pur¬

are

years,

than a million
They may, of
be highly valuable substi-

tutions because of the specialized
served

uses

metals.

ited.

the

by

nonferrous

In

almost unlim-

are

Aluminum

window

frames

about 250 structures patterned

after

Alcoa

the

building

common).

per

Co.

owns

vertible
chased

preferred,
it

from

the

wnich

having

for

company

furniture,

minum

from

its

present

pacity, built

or

building, of 180,-

level.
'0 "We have chosen to project the
1975
United
States demand
for

annum.

aluminum at 4.5 million tons

■

000 tons of primary aluminum per

Guiana,

four

tween

(be-

All

bauxite,

from

chased

Alcoa

into

made

was

pur-

in

Dutch

alumina

at

the

Baton Rouge, La., and reduced to

consumption) as indicating a
plausible rate of growth. A fig-

ingot at Mead and Tacoma, Wash.,
with power from the Bonneville

five

and

times

1950

less

much

lire

than

imply almost

no

minum

fields

into

this

would

incursions of alu-

Fabricating mills

dam.

lo-

were

cated at Trentwood, Wash,

held by
figure much
greater, say 10 times the 1950 output, would be possible if alu-

Kaiser's 1951-54 expansion pronow
completed, entailed
the expenditure of some $230 million, about $176 million of which

minum

is

other

materials.

assumed to take

were

than

more

sanctions

now

A

small

over

gram,

now

part

of

This

S. capacity for priproduction of aluminum is

about

1,526,000

which

tons

Kaiser

per

annum,

accounts

for

about 27%.

During 1953, the aluindustry produced about
1,250,000
tons
of
the
primary
metal.
This compared with 937,-

minum

©00

tons

in

1952, 410,000 tons in
112,000 tons in 1936.
Shipments of all aluminum prod1946

amor-

the

Present U.

of

accelerated

to

tization (five year write-offs) un¬
performed by wood der Certificates of Emergency.

a

and steel."

•mary

subject

and

expansion

cluded:

(1)

The

in¬

program

development

of

the company's large bauxite deV™lts
-Jamaica** Within 1,100
IP1!68 ?>
company s dock at
Bat?n R°ug®'
Pn anr*ual ca~
Pacity_of 1,500,000 tons of bauxjte and reserves estimated as suf^lent to meet the company's ex-

panded requirements for 50 years.
(The major portion of the corn-

of delivgovernment's stock-

Panys bauxite requirements is
JJ®W coming from Jamaica.; (2)
construction of the world s

pile, totaled around 1,620,000 tons

largest Tre<^u/c^0Il1 P^an^. a^ Chal-

in

ucts

eries

the

to

exclusive

deliv-

njette, La.; (3) Expansion of the
®atoP
alumina plant and

at

adaptation to Jamaica ore, (4)

1,230,000 tons, the balhaving been accounted for
defense and
atomic energy

Expansion of the Mead and Tacoma reduction ptents; (5) Exn?onJ? facilities at Trentwood,
Wash., Newark, Ohio, and Hale-

increase

—an

of

1953,

of

22%

this

Of

1952.

cries for all civilian
a

those

over

amount,
uses

were

record

ance

f)y

takings.
The

largest

minum

markets

for

represented by the
transportation field (automotive,

rail,

are

air

marine), the electrical field and the building in¬
and

dustry.
...

At

the

present

tales have
15

from

minum

ever,

that

it

future
120

18

to

an

automoaverage of

pounds of
aluOne model how-

per car

has 66 pounds of aluit.

on
is

time,

them

on

now

minum

The

not

will

unlikely

witness

that

One

car.

fact

much

as

view

automobiles

being loaded down with
many additional gadgets and
that

must be used

toe

increase

in

is

so

ac-

materials

order to prevent

of over-all

For the latter
case

lighter

is

today

are

cessories

as

each

on

for this

reason

that

the

car

weight.

important

of passenger

cars

in

the

because of

relationship between sales ap3peal and the horsepower-weight

.me

In the

ratios.

.

case

of commercial

vehicles, it is even more important because of its bearing upon
operating and maintenance costs.
Not only are all segments

of the
industry enjoying excellent secular growth but the use
«f aluminum within the industry
vis expanding at a very rapid rate.
electrical

'

The

year

increased

1953 witnessed greatly
of

use

covered

minum wire for secondary

toution lines.
reason

for

greater

distri-

The most important
the
trend
toward

use

electrical

fact
been

of aluminum in
industry has been

that the

going

alu-

the
the

price of copper has
much more than

up

the

price of aluminum; and in the
•electrical industry one pound of
aluminum

goes

far

as

P<!IJI!dS^-0ijC<?PPeru-

u

as

two
p

btsv'xss

company

nounced

plans

for

recently
a

_

an¬

inte¬

new

grated sheet and foil rolling mill

"

to be built

the Ohio River

on

near

Ravenswood, West Va. Construction is scheduled to begin around
jan

will

be

wm have

it

compieted
of

72

a

around

million

ds

greatest

growth,




liabilities

qUarter
mercial

has

q

sented the initial

of

pany

method
American

Institute

the

by

Account¬

of

which shows net income
charging-off only normal
depreciation and after providing

ants),
after

for

future

paid

on

income

taxes

to

the amount by which

resulting in

rolling

mill

a

aiuminum

sheet

and

no

way

is

one

become

ann0Unced

but

municipal
sales
of institutional accounts

Dallas-Fort

Rambin

was

million

1951-54

ac¬

we

President,

know of

G.

D.

growth company equity.

Cunningham

tax

in

ger of the municipal bond depart¬
ment for Ernst & Co., Laird &

exceeds normal de¬

purposes

preciation.
method

that

only

which

amount equal to
would
be shown
if
an

normal

depreciation

in

based
ent

earnings
would
$2.86 a common share
and $31.38 a share on the $2.50
convertible preferred.

of

recorded

with $0.85

the corresponding

share

a

year-earlier

the
projections would be low¬

ered

to the

$4.43

$4.66;

to

It

the

fiscal

$5.52;
1958,

1956,

1957,

$6.03;
fiscal
$6.61; and fiscal 1959, $7.
is

associated

and
Mr.

Cincinnati

Casey

Stock

& Co.

writer's

Green, Erb Adds
(Special to The Financial Chronicle)

CLEVELAND,

opinion

that

L. Volkmer is

Ohio

now

plied

from

plant

on

near

the

the

Chalmette, La.
Mississippi River

Green,

preferred stock is

Building, members of the Midwest

pe¬

tive

holding for investors seeking

an

offer

to

sell

an

attrac¬

Stock

Erb

&

Co.,

Exchange.

solicitation of an offer to buy
only by the Prospectus.

nor a

Shares. The offer is made

any

of these

8,969,055 SHARES

STANDARD OIL COMPANY
(Incorporated in New Jersey)

V

CAPITAL STOCK
($15 Par Value)

in

HUMBLE

."

exchange for

OIL & REFINING COMPANY
CAPITAL STOCK
par

value) '

.

'

This

new

to

be

expansion

offering shares of its Capital Stock in exchange for shares of Capital

Stock of Humble Oil &

Refining Company in the ratio of 9 shares of the Capital

Stock of

for 10 shares of Capital Stock of Humble Oil & Refining Company.
exchange offer which expires November 30, 1954 are set forth in a Pros¬

Standard Oil Company

dated October 29, 1954, copies of which are obtainable from THE CORPORATION
Exchange Place, Jersey City 2, New Jersey; FIRST NATIONAL
BANK IN HOUSTON, Texas and MORGAN STANLEY & CO., 2 Wall Street, New

pectus

TRUST COMPANY, 15

New Orleans,

prove

Standard Oil Company is

The terms of the

should

highly beneficial to

York 5, N. Y,

STANDARD OIL COMPANY,
(Incorporated in New Jersey)

the company. It will increase the
proportion of the company's output that will be sold in fabricated

Eugene Holman,

form* R wm decrease transporta-

?» rv"a ,6y *** K""r

New

Edward

Kaiser Aluminum's $2.50 convert¬

(no

phase of

—

affiliated with

ible

the

integrated, pig aluminum requirements will be sup-

Exchanges.

formerly Wilming¬
ton, Ohio representative for Bache

in

foil

is fully

West¬

was

Although the new plant will initially be supplied with heavygauge coiled
sheet from Trent-

mill

with

following: fiscal 1955,

fiscal

a

year-to-year increase of 10%; net
income was up 54%; and $1.29 a
common
share
was
earned,
as
compared

con¬

.

Chronicle)

Street, members of the New York
•

the

(Special to The Financial

heimer and Company, 326 Walnut

both

of

& Co.

Two With Westheimer

become

Assuming the

common

above

to end May 31, 1955, the up¬
trend of earnings was fur¬
Sales

into

presently outstanding
vertible
preferred
issues,

quarter of the fiscal

extended.

capitalization.

formerly Mana¬

CINCINNATI, Ohio —Frank J.
Casey 'and John F. Henry have

These projections are
the company's pres¬

upon

conversion

amounted to

ther

V
,

1956, $6.60; fiscal 1957,
fiscal 1958; $8; and fiscal

1959, $8.50.

31,
have

was

Company and J. G. White

fiscal

$7.25;

for the fiscal year ended May

ward

Alu¬

the fiscal year to end May
1955, I estimate per common
share earnings of $5.20 to $5.50;

to the company, if this
basis of accounting had been used

year

Kaiser

In

cording

In the first

of

31,

were

charged-off on both tax returns
and reports to stockholders.
Ac¬

1953,

As a tool
opinion on the

an

minum, the following earnings
projections are offered:

accounting is to show

net income in

arriving at

attractiveness

The net effect of this

of

expansion

the second

Cunningham,

Vice-President and Treasurer, and
C. N. Hitchcock,. Secretary.
Mr.

an

construction is completed and the

with

Formed in New York

to avoid making them if
attempting to evaluate a

financed.

wood, when

area.

Cunningham Go.

private institutions when the

$230

Worth

formerly
M. A. Hagberg & Co., Inc.

R. A.

C.

associated

as

£

provided by rescheduling the maturity dates of the loans made

J.

celerated amortization claimed for

The cost of the project
been

Bank

that

to

highly nebulous. But

be

fully

with

Rauscher,

R. A. Cunningham Co., Inc. has
$40,385,110—
equal to a sizable slice (24.5%) of been formed with offices at 115
the company's total long term in¬ Broadway, New York
City to en¬
debtedness as of May 31, 1954.
gage in a securities business spe¬
Long range estimates of future cializing in municipal bonds. Offi¬
earnings are of course always cers are Richard A. Cunningham,

amounted

gram,

by the com¬
revised
accounting

a

—

Mercantile

announce

them

the

Mr.

ample, in the
May 31,-1954, when net income
was
$14,015,715, cash income, be¬
cause
of
the
heavy charge-offs
resulting from the expansion pro¬

s^y
company has stated that
funds for the first unit have been

was

in

large. For ex¬
fiscal year ended

use

(recommended

Co.,
has

manager

the cash inflow is

was $14,016,equivalent to $3.36 a com¬
mon share (of which $1.01 a share
was contributed by the final quar¬
ter) and $37.38 a share on the
$2.50 convertible preferred. The
report for that fiscal year repre¬

bas granted the company
million Certificate of Neees-

with

with

000

^

a

Rambin

0.6 to 1.

reported net income

&

Building,

current

ing fund and debt maturity re¬
quirements, it is noteworthy that

capacity of more than a
million pounds of corn-

not

jj

DALLAS, Tex.
Pierce

Relative to any consideration of

This announcement is neither

and

products.

With Rauscher, Pierce

the company's future annual sink¬

$226,641,000—a gain of 24% over
those of the preceding 12 months;

tion, Kaiser intends to start a second phase
of construction, culminating in 32 acres under roof,
providing employment for 2,000

annuai

was

Exchange.

ca-

and which *or the first time an eastern
bolds forth the greatest potential- sheet-and-foil plant, it will render
the

the ratio of cash items to

2.7%.

common

J. G. Rambin Now Is

have

by stock divi¬

two to one; and

was

and

a

May

current ratio

ended May 31,
record sales of

After the first unit is in produc-

integrated

of

yields

the New York

on

mid-

rated annual

sbeet and foil

workers

distributions

48

preferred
listed

its current

at

common

around

The first unit, which

1955.

j

1955

industry feels

pounds of aluminum

the

2?e'
e

alu-

$1.30

The

Stock

dividend

is

31, 1954, working
capital totaled $48.4 million; the

In the fiscal year

Kaiser had

annual

common

cash

As

stockholders of the company.

1954,

the

dends.

and

could

demand

current

on

been supplemented

$16,250,000 in December, 1953. On
aluminum in have been built, are being built or the latter date Kennecott also
pur¬
by themselves are in the blueprint stage,
chased 100,000 shares of common
account
for
a
four-or-fIve-foldS* In mid-1950, Kaiser Aluminum stock
from
the
four
founding
expansion of United States alu- & Chemical had a productive caand

construction

is emerging

growing pains.

The

And notwithstand¬

ing at less than $1.00 a share be¬
low
conversion parity
with the
common,
its
current
price
of
around
68 V\
affords a yield of

fields. The aluminum-clad Alcoa into 1.41 shares of
common) and
skyscraper in Pittsburgh, which
325,000 shares (par $50) of $2.75
was completed in 1953, is an exconvertible preferred stock (each
ample of the extent to which alu- share convertible into 1.66 snares
minum can be efficiently and of

be effected by less
tons of aluminum.
course,

17

York, N. Y., November 1, 1954.

•>

Chairman of the Board.

Inc.,

NBC

18

The Commercial and Financial Chronicle

(1842)
'

„

"

<

disclosed

Continued

But the result of
by-election, which
change in the per¬

of votes, and that
Shoreditch
by-election,

a

period

London

the

Stock

Exchange resumed its rising trend

during the second half of October.
its

Indeed
boom

became

accent

uated,
during

and

the three days
to

Oct.

the

21

"Financial

■

Times"

index

showed
of

ate
in

rise

a

5*/2

The

points.

immedi¬

lies

cause

the

opti¬

mistic

state¬

ments

of

the

Chancellor

Dr. Paul Einzif

of

the

Excheq¬
uer, Mr. But¬
ler. Having foreshadowed in a re¬
cent

speech

a
doubling of the
living of the British
jpeople within the next 25 years,

standard

he

snows- an

Commenting on the renewed upturn of the London stock mar¬
ket, Dr. Einzig ascribes the rise to increased dividend payments
of corporations that ignore the plea of the Chancellor of the
Exchequer for dividend limitations. Says, to a large degree,
vise in equities is a long-overdue adjustment of stock exchange
values to intrinsic values, arising from gradual increase in
undistributed profits.
hesitation

of

claims

now

achieved

that

the

progress

during

the past year
justifies his optimistic forecast.
The figures of the balance of pay¬
ments

satisfactory

were

during

the first half of 1954—even though

they do not look quite so promis¬
ing for the second half. Revenue
was

well

maintained

and

there

decline of expenditure.
dustrial output continues to
was

a

The

crease.

creased in

amounts

gold

In¬
in¬

has in¬

reserve

spite of the substantial

of external debts

repaid

in recent months.

It

is

not

surprising that Mr.
official optimism .should
inspire similar sentiments in in¬

Butler's
vestors

and

speculators.

fupdamental
due not

reason

much

so

to

But the

for the rise is

the fact

that

the public follows

the lead given
by Mr. Btuler but to the fact that
boards

of

directors

no

centage

By PAUL EINZIG

LONDON, Eng.—After

day.

page

The Pitfalls oi

of the
which

by some

bewilderment

among

stant

po¬

What matters, however,
are,

of

amount

stock

regard¬

is that,

guide to the future if it creates

there is no likelihood

type of

new

market

that

pansion

of

chasing

power.

the

consumers'

There

is

ex¬

pur¬
more

money to
spend, but there
also
more
goods
available

are

involve

the

recent

which to spend it.

One

of

the

reasons

why infla¬

tion is not causing a rise in
prices
in Britain is that the demand has

been mainly for consumer
goods.
The extent
is

of

capital investment

inadequate. This is

a

bad thing

from the point of view of future




goods.

stocks as a

common

their invest¬
ment practices and in statutory
provisions. While personal trust
funds are not likely to be in a
position to follow dollar averag¬
ing to any extent, because of the
result of changes in

usual

lump

they

investments

sum

trust,

separate

each

under

made

nevertheless an impor¬

are

tant factor in the

market because

,

Mageflheimer V.-P.

Of Chase Nat'I Bank

chances
tors

able

are

that boards of direc¬

will have
for

more

distribution,

and

the

At

profit avail¬

same

appointed the

that

Vice-Presidents:

ond

they will not hesitate to distribute
larger rather than smaller pro¬

Burr

a

time

and

the

board

following as Sec¬

Melvin

D.

Frank

Lake,

W.

trust

department; Carl E. Haugen, midwestern district, and
Harold C.

Stock
any

Exchange

prospects

Forms Rogers & Co.

than

of the figures indicating the

'financial

and

.

flood

of funds finds its

investment

the

way

market

into

prospects

almost

stocks

approximately $560 to $675 mil¬

lion, that is invested in
stocks

annually, provides

common
an

im-

find

its-

into

way

Another
source

of

example
funds

than

the
held

Conservatives
their

own.

This

more

was

from

the

Socialist

to

the

Con-

for

a

dollar

new
aver¬

aging is found in the growth
stock

common

importance

companies their
this
regard
is

minimized

by

investments

of

by

investment
in

by

the variable
investment

amounts available for

companies

open-end

the

by

account for about $5 bil¬

("which

of

lion

holdings of in¬

total

the

companies)

vestment

the

in

fluctuations

due to the
sale
and

liquidation of shares.
addition

In

steady

providing

institutions

their

by

a

of

stream

securities

the

for

funds

to

growing

and

market,

investment

practices support the market in"
other important ways. There is a

general tendency for institutions
to hold the securities that they

than to resell.
shifting avoids
the speculative label but at the
same
time reduces the floating
supply of available investments.
This is an important considera¬
rather

purchase

This

minimum

tion

when

there is
of

it

of

is

stocks

new

recognized

contrasted

as

bonds and mortgages.
to

course

rations

that

lack of regular supply

a

the fact that

have

done

to

This is due

the

corpo¬

bulk

of

their equity financing in

the past
years out of retained earnings.
1953 new corporate issues of

15

In

stock

amounted

to

$1.3

L. C. Fulenwider Opens
(Speqial to The Financial Chronicle)

DENVER, Colo.—L. C. Fulen¬
wider, Inc., is engaging in a secu¬

also associated with the firm.

New York State's mutual savings
banks. On June 30, 1954, sixty-

common

nine

.

which

of

The

,

depending upon the type, whether
strictly a bond fund, a commonstock fund, or a leverage fund.
While dollar averaging is used

of

(Special to The Financial Chronicle)

DENVER, Colo. — Joseph W.
From
this point of view the
Rogers has formed Rogers & Co.
prospects are anything but clear.
with
offices
in: the
Kittredge
There was a
contradiction be¬
Building to conduct a securities
tween the Gallup Poll result in
business.
September, showing a
decisive
swing in favor of the Socialists,
and the result of the Croydon byelection a few weeks later,
at

investment

channels.

-

favorable."

prove

invested
in
common
varies from fund to fund

amount

daily and the portion of the total,

economic situation.

explained by political commenta¬ rities business from offices in the
immediate effects of inflation. For tors on the ground that in the
Equitable Building.
Officers are
an increase in the
production of meantime the split in the Labor L. C. Fulenwider, Jr., President;*
capital equipment tends to affect Party that became evident at the N. J. Fulenwider, Vice-President;
prices much more than a corre¬ annual conference at Scarborough and Hover T. Lentz,
Assistant
sponding amount of increase in diverted many "floating" voters Secretary.
Gerri V. Frellick is
consumer

in

.

prospects, but it does mitigate the

the production of

increased their in¬

years

vestment

„

an

-

on

most

the

as

holders of corporate

of the great volume of securities
election will be drawing nearer, tice
dollar
averaging,
as
expansion of the*
they
they own and hold. At the pres¬
however, an increasing number of have attempted to adjust their
producing plants.
ent, personal
trust - funds own
people will play for safety and „ portfolios to
a
period
of un¬ over
The accentuation of the rise in;
$20 billion in corporate stocks
take their profits while the going.
precedented
inflation and new which accounts for over 15% of
equities gave rise to some anxiety is
good. This means that, unless ~ rules permitting common stock
about the possibility of a sharp
all outstanding domestic
corpo¬
there should be a clear swing of^ investment. The size of common
rate issues. These large holdings,
relapse. There appears to be noth¬
public opinion in favor of the. stock ownership by institutions
which generally are infrequently
ing in the economic situation that
Conservatives, liquidations during. has been estimated to be approxi¬
would be liable to cause such a
switched, . tend
to restrict the
the late spring and summer of mately one-third of the market
amount of securities available for
slump. The favorable indices pub¬
1955 are liable to bring about a value of all listed securities. In¬
institutional buyers that are con^
licized by Mr. Butler are likely to
gradual but substantial decline of stitutional buying has been aug¬ fronted with the
remain favorable, more or less.
problem of in¬
Stock Exchange prices.
In the mented in recent years by several
Consumers' purchasing power is
vesting a steady stream of funds.
meantime, however, there is no, new sources of funds that are
expected to continue to expand..
Second in importance in total
reasomwhy they should not reach already an important factor and '
There are no obvious clouds on
new high records.
are
likely to become of greater holdings of corporate stocks are
the horizon of the business situa¬
.investment companies. The popu¬
importance in future years.
tion.
Although the international
larity of this type of investment
position of sterling is not so strong
Undoubtedly the greatest new vehicle
has
increased
tremen¬
as it should be, it is strong enough
and most rapidly increasing force dously in the past 10 to 15 years,
in the investment market is that
to obviate the necessity for drastic
after its period of decline fol-.
of pension funds. The dollar value
disinflationary measures to pro¬
lowing the 1929 crash.'Total net
of pension plans in the
tect the gold
reserve.
Nor are
United assets of the 142 members of the
Jacob
Magenheimer has been
boards
of
directors
likely
to appointed a Vice-President of the States increased from $1.9 billion • National Association of Invest¬
change
their
policy
favoring Chase National Bank, Percy J. in 1940 to about $17 billion in ment Companies, including both
higher dividends. , It would re¬ Ebbott, President, announced. Mr. 1954. It is estimated that approxi¬
open- and closed-end companies,
quire more than mere exhorta¬ Magenheimer/ who has been with mately .'25 to 30% of this total at
present totals approximately $6
is
tions to restore the dividend ceil¬ the bank for 40 years, is asso¬
being
invested
in
common
billion, a new all-time high. This
ing, and it is inconceivable that a ciated with the official staff stocks. The monthly payments by important source of investment
Conservative Government should handling the bank's commercial
employers and employees are in- funds has shown a steady annual
introduce
legislation
restricting and banking relationships in the creasing pension funds by over increase and is likely to enjoy
$2*4 billion annually. This steady
dividend
payments.
Thus,
the South.
popularity
as
long as
market
not

The

cancelled out the effect of the

group

a

as

ranked

a

departments,

trust

have long
important
stocks among
financial institutions, have in

which

.

disregard his

limitations.

investment

common

Personal

a

differs

portion of it. According to com¬
portant fund for dollar averag¬
parative statistics published re-, Taylor, bond department.
ing.
cently in "The Financial Times,"
August F. Pardey and Frank
wages
ceiling has long disap¬ only 14% of the untaxed profits
Life insurance companies un¬
M. Richards were appointed As-peared, and now the dividend are distributed by British compa¬
sistant Cashiers in the bond de-- der the recent change in some
ceiling has also ceased to exist. It nies, while the corresponding fig¬
state
laws, notably New York parment, and Edward B. Maybeck
is the dividend
increases, actual ure for the United States is 26%.
was made an
Investment Officer State, are investing a larger per¬
or
anticipated, that are mainly There seems to
be,
therefore,
and Richard
G. Keneven an- centage of their assets in common
responsible for the firm under¬
scope for further increase of Brit¬ Estate
stocks. Aggregate stock holdings
Planning Officer in thetone. To a large degree the rise
ish dividends in the absence of
of
life
insurance companies
at
trust department.
in equities has been a long-over¬
restrictive legislation.
the end of 1953 amounted to $2.5
due adjustment of Stock
Newly-appointed Assistant
Exchange
billion which accounted for 3.3%
The question is, what are the
values to intrinsic values, the lat¬
Managers
at
New
York
City!
of
their total assets.
chances of a return of a Labor
Approxi¬
ter having increased as a result of
branches were: Robert P. Fechtel,
mately
one-third
of
the
total
Government
which
would
not
the
42nd Street; John P. Healy. Madi¬
gradual increase of undis¬
stock holdings were in common
hesitate to take early action to son
tributed profits.
Square; Robert D. Hubbard,
prevent dividend increases. The 57th Street; Theodore W. Linda-- stocks. This represents a substan¬
At the same time the mainte¬
tial increase over 1940 when life
only development which would bury, 73rd Street, and Harold A.nance
of consumer demand at a
insurance
companies
had
only
bring about a major Stock Ex¬ Schulenburg, 25 Broadway.
very high level has given rise to
1.8% of their assets invested in
change slump would be a Social¬
hopes that profits and dividends ist victory at the next general
stocks, with less than one-quarter
Form Fidelity Sees.
would continue to rise.
In spite
of this total in common stocks.election... The mere anticipation of
of the absence of a
In
(Special to The Financial Chronicle)
rising trend such a victory might reverse the
addition, the total assets of
of prices—the cost of
life
insurance
firms
have
in¬
living index trend even before the general
DENVER, Colo.—Albert Hayucreased over 160% in this period.
actually declined by one point in election. It is no wonder inves¬ tin has
opened offices in the First!
At the present time such institu¬
September—there is no doubt that
tors, speculators and stockbrokers National Bank Building, to engage
inflation is proceeding unabated.
tions
are
purchasing over $250
are
watching domestic political in a securities business under the
The absence of a rise in prices is
million a year in stocks and have
trends with keen interest.
Such firm name of Fidelity Securities
due to the fact that the rise in
a
steady
stream
of
premiums
trends are in existing conditions Company.
output of consumer goods has much more
flowing in each month that must
important indices of
dividend

the

of

fund.

general election before next from the
past on which theoretical
This is because the time lag be¬ summer, and it is far from certain market studies have been made.
whether there will be one at all
tween the expenditure on produc¬
in 1955. This means that holders . ."Dollar Averaging" Is Exerting a
tion costs and the appearance of
of equities, whether investors or
Potent Force
the finished products is naturally
The effect on the market of the
much
longer for capital goods. speculators, need not make up
their minds for some time whether
Additional
purchasing power is
huge; new
volume
of
buying
created as soon as their produc¬ they consider a Socialist victory, power created by dollar averag¬
tion begins, but it may take many * lmeiy or not. Indeed at this stage - ing cannot be accurately judged;
any
such conclusion . would be '1 however, there is little doubt that
months, and even years, before
the goods on which the money is - grossly premature, for the polit¬ it is exerting a potent force.
In
ical prospects are liable to change^ the
postwar period we have wit¬
spent become available.
In the
many
times between ' now and nessed a decided trend to common
case of consumer goods the
time"
polling day.
As and when the stocks on the part of institutional
lag is much shorter, provided that"
date of the general investors, which commonly prac¬
the increase of their output does presumed
of

Dollai

bers

less of the market level, may of¬
fer a poor and perhaps dangerous

prophets.

things

a

Averaging Policy

published on the same
The contrast between them
were

caused

litical

as

from first

increase of the propor¬

tion of the Socialist vote

5*/2%,

exhortations in favor of maintain¬

ing

Thursday, November 4, 1954

.

Wakefield

the

British Stock Exchange Prospects

•of

.

\

(

servative camp.

~

.

notes totaled $7 billion. This lack

of

ing
fund
a

these

jointly
owned

market

institutions invest¬

through
common

value

of

a

common

stocks with

$10.2

million

which represented an increase of
195% over the market value of
the

fund's

equity holdings
June 30, 1953, when the fund
initiated.-This
the

was

on
was

in addition to

greater volume of direct in¬

vestments made in

common

by both members and

stocks

non-mem¬

billion while corporate bonds and
of

availability
forces

issues

vestors

existing

of

new

common

institutional

in¬

to

depend upon resold
issues and makes the

price of such issues especially
susceptible to. increases since any
demand for

be

met if

existing securities

the

bid

can

is made suffi¬

ciently attractive.
Of

greater

tempting

to

importance in at¬
determine the pos-

"Volume

sible

is

180

Number 5374

effects

the

dollar

of

fact

buyers tend

that

to

small

group

ment

issues.

The Commercial and Financial Chronicle

.

averaging

institutional

For over the long-pull the bulk
of the return from stocks is a re¬

This

market

rather

contrary

to

generally

ac-

cepted market theory. First of all,
the regular purchases of the same
group

of

tional

buyers

securities

yields

on

by institudown the

drives

the

popular market
price of these sebeing driven upward.
An examination of the yields on
the 20
most popular
industrial

leaders

as

curities

is

the

stocks

common

of institutional

veals

in

the

portfolio

buyers clearly

re-

that

they are definitely
lower than yields of the general
market. The accompanying table
indicates the 20 leading industrial
common
stocks held by institutions and their yields at Sept. 14,
1953, the beginning of the present
bull

market, and the recent
1954, and

mar-

ket date of Oct. 8,

yield

age

com-

these yields with the

pares

of

contained

in

the
the

30

aver-

stocks

Dow-Jones

in-

dustrial averages.
...

T

Xield

..

..

_

_

of Institutional Favorites

Dropping

.

Since

the

beginning

of

the

present sustained upswing, which
started

the

Sept.

on

14,

when

industrial

Dow-Jones

1953,

aver-

dropped to 255.49, their lowest point since July 20, 1951, the

ages

yield of the institutional

average

favorites

has

dropped

from 5.2
yield of the

to 3.8%. The average
30

in

stocks

dustrial

list

from

6.1

average

in-

about

the

in this period,
4.6; however, the
yield of the Dow-Jones
to

industrial
of

the

stocks, which includes
institutional favorites,

remains

still

Dow-Jones

percentage

same

12

the

declined

0.8%

greater.

Fur-

ther evidence of the fact that the

institutional favorites have lower

yields than the market in general
is found in a comparison of the
average yield of this group with
the average yield of the stocks

contained in the Dow-Jones

which

ages

the

list

20

included

not

are

of

aver-

in

favored

by

stocks

institutional

buyers. On Oct. 8,
these 19 stocks showed an
average
yield
of
5.1%,
1.3%
greater than the yield of the in1954,

stitutional favorites.

On the

date the 50 industrial stocks

same
con-

tained in Standard and Poors' list
had

yield of 4.8, 1.0%
greater than the average yield of

the
^

an

institutional

group.

If the institutional buyers

tinue
of

average

a

to

make

regardless

of

the

By ROGER W. BABSON

small loans 25 years ago.

suit of the dividends collected
Asserting he expects another severe stock-market reaction
Another different condition to¬
rather than the appreciation of
sooner or later of at least 50 to 75
day relates to labor unions. Every
points, Mr. Babson holds
the securities. If both the growth
right-thinking person must ap¬
such a break could occur even during a period of good busi¬
trend and the same dividend payprove the general usefulness of
ness activity.
Says current market presents much the same
ments were continued the return
labor unions in their place. Unions
on these popular securities would
irregular picture as was present in 1929, but points out there
are justified in striking if neces¬
be less because each successive
are many new crosscurrents that did not exist then.
sary
to eliminate bad working
purchase in a rising market is
conditions and to get a fair wage.
likely to be made at a higher
Twenty-five years ago I made called blue chips have outdis¬ The present system, however of
price and produce a lower yield,
a
well-known forecast about an tanced the bulk of the issues on demanding more money merely
There is a possibility that the impending big break in the stock the market, due to concentrated because a union has a monopoly of
present market level will go much market. At the close of the previ¬ buying, much of it by Institu¬ a certain industry is wrong and
higher if dollar averagers adhere
ous day, Nov.
tions, Pension Funds, and Mutual could ultimately bring on a panic.
to their regular purchase schedThere are in
3,
1929, the Investment Trusts.
ules regardless of market level. It
addition many new crosscurrents
Dow
Jones
would be hazardous to predict the
Industrial in the market that did not exist
end of the present market rise
Stock Aver- in 1929.
We have armament ac¬
even if earnings tend to stabilize
a g e
stood at tivity and other Government buy¬
or turn down because dollar av380. the mar¬
ing, heavy spending, support of
eraging ignores valuation.
This
ket immedi¬ farm prices,
and especially the
regular influx of funds into the
ately began to intense new advertising programs,
market may very well push yields
weaken
and which I consider very important.
of
favorite
industrial
common
shortly
It is clear that the economic
stocks beyond the imbalance that
plunged down picture and the trend in the marexisted between bond and stock
swiftly, c 1 os- ket can change abruptly and
yields in 1929. The present aving at 230 — a snowball rapidly to an unexpected
erage yield of 3.8% on the instidecline of 150 degree.
The real purpose of my
tutional favorites is already bepoints in less column this week is to bring to
low the average yields of apthan
eight your attention that the market
Roger W. Babson
proximately 4.0% on high grade
weeks.
Today may soon be in as vulnerable a
preferreds. If the yields of poputhe Dow-Jones Industrial Aver¬ position as in 1929, especially if
lar issues drop another 25%, as
age is 358, within six points of the capital gains tax should her
they did in last year's bull mar- the
highest figures since 1929. In repealed, for which the Mbears"
ket, they will be below the presW. T. Nightingale
fact, it has moved up over 100 are striving. - Those who were un¬
ent
average
yield of
approxipoints since September, 1953.
prepared in 1929 had no chance
W. T. Nightingale, Sr., President
mately 3.0% on high grade bonds,
to take the profits they thought
of
the
Mountain
Fuel
Reactions to Be Expected
Supply
they possessed. Nor did they have
Dollar Averaging a New and
Company, Salt Lake City, is the
I
expect
another severe
re¬
purchasing power when the mar¬
Potent Market Factor
proud grandfather of W. T. Night¬
action sooner or later, of at least ket reached the unbelievable bar¬
It can be concluded from the
ingale III, courtesy of Mr. of Mr.
50 to 75 points.
Surely, present gain levels of 1932.
and Mrs. W. T. Nightingale, Jr.
foregoing analysis that dollar av- stock
yields are now too low, when
eraging represents a new and
General Conditions Now Good
1954 Federal Taxes are deducted.
potent force in the market that
J. S. Hassan Resumes
Such a break in the market could
The banks are now sound; em¬
must be recognized.
Since the
occur
even
(Special to The Financial Chronicle) "
during a period of
ployment is now good; profits in
end
of
World
War
II
it
has
good business activity such as I most lines are
SAN MATEO, Calif. — John S.
fair; while very
brought billions of dollars of new
am now forecasting.
Stock prices few stocks are being "bought on Hassan has resumed the invest¬
purchasing power into the market, have of
late
demonstrated that
margin"; all must have a margin ment business from offices at 23
This
huge volume
of
instituthey can move independently of of at least 50%.
Home building Second Avenue. Mr. Hassan was
tional buying has been concenboth business $nd earnings. It is is
actually booming, and the in- formerly in the securities business
trated on
a
limited
number
of
well to recall that, in 1929, there
in San Mateo and recently has

W.T.

Nightingale Sr.
Front Grandpa efWT lit

,

market favorites

and

is

continu-

ally shrinking the floating supply
of stocks. At this point the average yield of the common stocks

heavily invested

institutional buyers has not declined
to the level of high grade bonds,
However,
as
indicated
in
the
table, several of the leaders have
reached or have gone beyond this'
point and the average yield of the
entire group of institutional favorites is aproaching this level much
more rapidly than the usual market averages indicate. Can dollar
averaging be regarded as an investment policy when it ignores
so

in

by

,

market

constant

for

dollar

When it

purchases

regular

of

regardless of market level?

When

market

favorites.

limited number of

quence

the

returns

from

these

popular issues, which comprise
greater part of the institu-

the

tional

portfolios,
YIELDS

ON

it tends to be confined

conse-

an

reduction

a

versified

in

risk

ings and promised
tion

had

The

also

miracles

"New Era"

anticipated.
weakness,

very

in

as

of

about.

our

bring
short,

In

it

most

was

market

stock

vent

ap-

SOme

The

much
as

a

the

Advice,

waVe

ent

presents

East

234

popular stocks?

Formed

(Special to The Financial Chronicle)

MAPLEWOOD, N. J.—Lewis &

danger,

has

Roegner

namely, installment
These purchases are

purchases.
today not increasing rapidly. They,

The so-

1929.

at

Lewis & Roegner

of mass foreclosures

This brings me to another pres-

irregular picture

same

present in

was

offices

Secretary

specula¬

market

current

with

formed

day.
Installment Purchases

Conservative

PASADENA, Calif. — Investors
Corporation
has
been

Funding

the

on borrowed money. Only
the Federal Government can pre-

confidently
Basically, there was

but

Funding Formed

to The Financial Chronicle)

(Special

possible

mostly

then

was

^

o

danger signals Colorado Street to engage in a
business.
Officers are
of 1929 are not now evident, this feecurities
new
danger signal of the "build¬ William A. King; President; John
M. Howard, Vice-President
and
ing boom" is surely with us.
Furthermore, today's building is Treasurer; rand John F. Gibson,
Where

ago.

were

to

on

the

before."

concerns

a

of danger.
This is a new
factor which did not exist 25 years

source

A

x

Investors

home building is,

becoming

however,

produc¬

seen

depended

di-

hold¬

"such

laboratories

industrial
then

these
a

never

research

great

Trust

mass

inventions

and

world

through

Investment

The boom in

.

been associated with Sutro & Co.

offices

at

formed

been

Chestnut

56

with

Street

20

FAVORITE

INDUSTRIAL

OF INSTITUTIONAL
Institutions

Holding Stocks

to

"New

Era"

of the firm.

Newport News Shipbuilding' and Dry Dock Company

COMMON

Quarterly Statement of Billings, Estimated Unbilled Balance

BUYERS
Yield Based

Sept. 14, 1953

on

Price

of

Oct. 8, 1954

Major Contracts and Number of Employees

Standard Oil of N. J

506

6.3%

4.7%

General

417

4.3

4.2

Three Fiscal Months Ended

du Pont de Nemours

393

3.8

2.9

September

September

September

September

Union Carbide & Carbon____

391

4.0

3.0

27,1954

28,1953

27,1954

28,1953

General

360

7.4

4.4

Gulf Oil

341

4.8

3.2

Shipbuilding contracts

Westinghouse Electric

334

5.0

2.8

Ship conversions and repairs

Texas

319

6.6

4.2

301

10.1

6.6

Electric

Motors

Company

Kennecott

Copper

Phillips Petroleum..

282

5.2

269

6.5

264

6.0

256

4.8

3.1

2.8

230

3.8

2.9

$26,405,038

$23,367,361

$85,443,201

$64,320,060

1,521,838

8,240,009

18,750,650

36,823,114

1,803,816

985,717

4,586,431

3,618,178

3,754,957

2,518,926

10,158,002

7,837,587

operations

4.1

233

.

.

,

4.0

Sears Roebuck

.

.

Other work and

4.5

Standard Oil of California—

Nine Fiscal Months Ended

Hydraulic turbines and accessories

4.1

Socony Vacuum

Billings during the period:

______

Totals

,

.

.

Chemical

Standard Oil of Indiana

Eastman Kodak

228

Montgomery Ward

______

4.3

3.3

228

4.5

close of the
Number of

the

225

4.7

3.4

221

3.0

2.4

220

5.1

Average Yield 20 Stocks—

5.2%

3.8%

Avg. Yield Dow-Jones Industrials

6.1

4.6




Delaware

$33,485,649

$35,112,013 $118,938,284 $112,598,939

September 27,1954

At

September 28,1953

major contracts unbilled at the
.

on

.

.

$198,608,480

$219,374,133

13,989

period

employees

16,489

roll at the close of

Company reports income from long-term shipbuilding contracts

3.7

any

of

.

period

The

Allied Chemical and Dye.—

Oil

.

4.7

Dow Chemical

Continental

.

At

Estimated balance of

Monsanto

...

.

to

period will therefore

vary

from the billings

on

on

the percentage-of-completion basis; such income for

the contracts. Contract billings and estimated unbilled balances

are

subject

possible adjustments resulting from statutory and contractual provisions.

By Order of the Board of Directors
October 22, 1954

R. |.

to

in a securities businesss.
George A. Roegner is a principal
engage

practice can be considered
investment policy we are dan-

gerously close
thinking.

decline,

STOCKS

a

,

If this

will

COMPANY—

to

justified

importance of today's advertising,

a

buying will
further depress the yields of these

concentrated

amount

has

1929

since

Investors were then anticipating larger dividend returns with

stocks

a

flation

Jt

higher prices for both homes and
stocks.
Again, I commend the

of

signs

ahead.

tion.

calls

As

„

the

the question of the current value

quality stocks
level

.

outward

market crash

parent

of

their

few

were

stock

of the stock purchased?

con-

regular purchases

small group of

are
still very ^heavy.
Curiously, they are now being en¬
couraged
by the
banks which
would have nothing to do with

however,

The Stock Market

these securities remains the same,

popular investpractice,
of

of

19

(1843)

This is likely to happen even if
the
long-run growth trend of

a

concentrate bn

severely restricts their
activity and causes some
interesting reactions that

course,

run

..

FLETCHER, Financial Vice President

:0

The Commercial and Financial Chronicle

(1844)

first

page

said to make a living by taking in one another's
washing.
The rank and file whose economic status and
prospects are

.

supposed to be the subject of

It

We See

As

no

it

the

was

more

case.

candidates

underscores the

and- their-

number of. other events- have
the party

supporters

this

as

'

*

'

.

is

emphasized^ cU vision within

The Gas

'

payroll and told in effect;
find more productive and useful work in
private life'
quite likely to find a "friend" in the politician who

hireling'

party happens to be in power is far more
important than any effort to pare or prune so impersonal

the

soil

livestock

and

stand
.

the

true

of

this

situation

this may

been

an

or

extension of

a

only

defense

that

the

in

the

market

selling

efforts of

the

can

and

pro¬

manufacturers

PAR

engaged

is

a

ing

intensified

and

necessary

first step.

Program,through

pitfall instead.

a

ing

the

to

subject

But, if

to our talk about the

cooling load,
connecting link.
It is
word
"cheapness/'
Just

is

in

the

as

this

great industry has been
to sell the-"cheapness" of

cooking

appliances,
instances

many

in

so

has

it

all

selling the "cheapness" of indus¬
trial

gas.

think

of

price

At this

point, let's not
"cheapness" in terms of

-

alone.

the

country

an

anomalous

the

drastic

subject far too technical for most of us to hope
appraise independently. It is likewise true that the
layman, particularly when hardly more than a
smattering.
a

•

of

sections

situa¬

tion—gas, historically and intrin¬
sically

a

below

premium

the

cost

fuel, is priced
of

This may be all to the good
for those who are buying nothing
than

more

a

quantity of British

thermal units, but there is danger
a situation.
It is the dan¬

These politicians who
delight in
others whom
they describe as

sells

and

that

service

by which




some

they come to adopting
of Mark Twain's
groups were

utility

together,

grams

individual

gas

and gas appliance
Add all their pro¬

through

them with

season

in fact

A.G.A.

and

GAMA,

and

have todav "THE GAS

we

INDUSTRY

IU ACTION."

the

Thomas Graham Kamed
To S. F. Commission

not

were

discussion. Let

each

of

company

the cooperative efforts carried on

competitive
in this fine'

interested
for

me

as¬

that their omission does

you

there

mean

liminary

is want of action

areas.

notes

Indeed,

my

prer

for this occasion
dealt with many other aspects of

adequate in terms of size and

ger

but.

that not only regulatory bodies
our industry .itself
may. forget

the

true

value
its

of

the

service

obligation
reliable.

to

I

it

Development of

Improvement in operating

appliances,

vital

of

factor

many

in

utility

the

companies.

speaking against
regard

all

economics

any

I

am

tendency to

industrial sales

as

be¬

and

the

location

of

commissioner

Recognition

the

of

gas for commercial

and increased emphasis on
promotion- of - all presently

DENVER,
Uranium

in

try

the

Better

America

Pro¬

aimed at the prevention

gram,

elimination

cities of
And
To

by the gas indus¬

of

slum

areas

in

or

the

nation;

our

discuss

fices

in

all

audience.

by

now

in

action.

that

transmit

of

these

It should

the

gas

Those

and

at

and

.

who

distribute

and

gas,

(which
for

together

Not by

belittling their

or

tition

hard

con¬

before to strengthen their

noring

me

the

Majestic

of¬

Building.

would
to

do)

be

but

ig¬

compe¬

rather

by

im¬

to

The

Financial

Chronicle)

DENVER, Colo.—M. Paul Rus¬

produce,

equipment which

competitive position:

(Special

is

it, individually and through
trade
associations—A.G.A.

never

Mar

-

from

Huey Adds to Staff

be clear

industry

and GAMA—are working
as

New

one

those who manufacture the appli¬
ances

—

business

Officers are Ralph W. Newton, Jr.,
President; Charles W. Marion, Jr.,
Secretary - Treasurer; David F.

sitting would tax the patience of
any

Colo.

Corporation is engaging

securities

a

Powers, Vice-President.

on.

so

in

Corp.

Financial Chronicle)

(Special to The
.

uses;

Participation

Louisville

the

New-Mar Uranium

uses

for gas

known

of

uses;

Development of additional
the

Graham

Sinking Fund for his third threeyear term.

unrealized

opportunities available in the sale
of

Thomas

■

LOUISVILLE, Ky. — Thomas
Graham, The Bankers Bond Co.,
Incorporated,
Kentucky
Home
Life Building, has been elected a

meters;

not

a

*.

prac¬

adequacy
venting of

their

or

gas

tices with respect to the
of house piping, the

sume

am

package

a

kitchen to supply the new and re¬
modeled home market;

make

speaking against the off-peak
interruptible sales which are

per¬

formance;

fuels.

It appears to us rather
absurd, how¬
ever, to assert that in this area the
budget has been placed
first and our real needs second.

the system

its

of

those

competitive

in such

They

not

inflexibility of regulatory1 policies,

de¬

to

these.

chosen

been

some

as

towards

of you

Some

directly

a

in

names

strengthening

industrial

of

want to go back

you

created

be dignified with such
probably do not realize how nearly

making

armor.

It's a long jump from the home
appliances we have been discuss¬

spending large

can

program

audience will be disappointed be¬
cause areas in which you are more

has

precepts

is

the

round gas system avail¬

Continued

industry

More and more, the
for Gas Indus¬

Program

manufacturer.

;

the

amounts of

and

"Action

curtailments."

or

all

to

and

are

try Development" is becoming the

sup¬

sells

now

I fully realize that
change in economic
conditions brought about by post¬
war
inflation, coupled with the

strange sort of economic

It is:

utility company is
urged to provide firm industrial
gas within the limits of the sys¬
tem's capacity
for those opera¬
ply interruptions

has proven,

company

satisfaction

Which brings me to the happy
point where I can make a closing
observation. (Or perhaps I should
say
it brings me to the closing
point where I can make a happy

Gas Industry

cannot, tolerate

from

that ap¬

interested, that ACTION,
in capital letters, pays off.

gas

which

competitive
losses

We know

observation.)
"Each

in

too

pouring scorn upon
"budget-firsters" have a
social
philosophy—if their

who

the

to

same

same gen¬

the
gas
industry-in action, for
efforts to promote the best equip¬ ..example:
ment
available now and
at
all
Efforts to upgrade the gas wa¬
times in the future. This is action,
ter heater and to focus our selling
the kind of action needed to
keep and
promotional efforts on those
a
potential bonanza from becom¬
water heaters which are at least

"budget-firsters>' now
Washington is that they have all but wrecked
for thirty pieces of silver. The
present Ad¬

the defense effort.

for

city, this

its own

to

an

en¬

willingness to buy and test ex¬
perimental models using various
cooling cycles, through aggressive

attributed to the

position to form
a
very firm opinion about the degree in which the waste
and the pointless
extravagance have been eliminated from

of

amendment

an

Program

Development.

tions to the PAR

its

no

tion

recently proposed

including

research,

year

prone

of the facts is available to
him, is in

endorsement

Three

pliance
sales
generally: in th&
early part of 1954 were below the
previous year.
In its demonstra¬

with

compete

likewise

are

who

Several

ministration, as a matter of fact, is due a large measure
of commendation from us all for its
insistence upon shift¬
ing the emphasis to the creation and maintenance of a real
defense system in contra-distinction to
fenses is

as

Action

sure

-

our

Section

It must be supported by the in¬
dustry at large, through contribu¬

system—as must inevitably in any event

The actual state of

must

in¬

1954

the

by

and

showed

37%.

to

of

1953.

and facing the

conditions

equip¬

gas

analysis*

adequate

over

served

economic

22%

by the Industrial and Commercial

tions

Program,
research

in

industry's need.;

research

are

money on defense.

who

eral

made a
as a premium
on
behalf of

of

market

by

months

41%

cities

company

have

manufacturers

wholehearted

effectively reached; and

in

able.

•

in control at
our

gas

who

additional point

distributing fa¬
equipment manu¬

manufacturer

there

sin

require

the

so

is

gaged

workers to meet the ultimate cost of the
generous schemes

Another

in

prices reflecting

speaking

and

creased

equipment using fuels which are
not interruptible in their supply,
I urge upon this great industry the

the

manufacturers

good.

-Defense and the Budget

will

so

on

they are
action,*

moral

the first four

a

of selling gas

ment

provide

can

utility companies alike.

sales.

-

the

improvement—

of

more

politicians think best, leaving
future pensioners dependent
upon the production of future
our

fuel,

un¬

air conditioning equipment;

meet the

in effect takes the "contributions" of
future beneficiaries
and spends them as the

case.

careful

on

buttressed

other

processing fuel,
behalf of the men in

as

And

aggressive

fi-"
support,' does
get results.
In one of these cities,'
for example, dollar sales of gas
appliances per residential meter in

Here, in three widely separated
looking towards the development 'areas—cooking, air conditioning,
of
and industrial
gas
fueled * air. conditioning
sales—we have a
equipment which will more nearly' picture of the approach which pur

pay

part of

do

To

Through

actually now providing the
their future benefits is being permitted to
continue as gospel
among those who have no understand¬
ing of the complexities of a so-called reserve system which

be the

answer

one

in

A.G.A.

regard whatever for the inevitable effect upon the
budget of future years and future generations. The fiction

now

in the next

competitive cost
performance
characteristics

and

no

funds to

be the

industry

gas

different

motional

virtually no oppooutside its own ranks in
,enacting into law
the so-called social
security system with

that future beneficiaries

premium

industry

our

the long pull

over

well

Third,

The Administration succeeded with
/ sition within

to

or even

few years, but

be

gratitude to President Eisenhower for the courage?
which enabled him to
speak some plain words on this'
subject in the face of danger of attack from servile Demo¬
cratic politicians and timid
Republicans. The fact remains,however, that the Administration has hardly scratched the
surface, and the outlook for really constructive states¬
never

peaks

career

1955

or

cilities

debt of

manship in the matter has

costly

air

in 1954

facturers

the

feel

must

electric

speaking

Second,

country truly at heart and who under¬

inwardness

that

nancial, and

at

Dis¬

have

in

markets

They have pulled

based

.

value

of gas

generosity to

husbandmen.

passionate citizens of the United States who
interests of their

• -i

its

in

meet.
An
obvious answer is the promotion
of electric heating.
Not so much

and

belonging to the rest of us to keep the farmers
The Truman Administration after the 1948 elec¬
of

•

Industry in Action

summertime

are

First,

the money

tillers

'

*

gas

boom

substantial

farmer

placed above and beyond all budgetary considerations
solvency of us all is real. There are a
great many farmer voters in the country, and the obliging
politicians have for decades been pouring out billions of

the

'.

"

.

excessive
which

the hazard to the

in its scandalous

the

surveyed

proving
'

.

company which has sold substan¬
tial quantities of firm industrial

ing load.

are

out-Heroded Herod

past

participation, they have drawn-*
appliance
manufacturers, into

-

by capturing a
large portion of the summer cool¬

thing as a set of figures setting forth the
outlays of the Treasury.

tions

the

the

all

.

conditioning is creating for them

a

a

When the "human needs" of the embattled

for

engaged

these 10 cities.

ing interruptible almost at will.
Speaking from the viewpoint of a

less the

of whatever

happy.

v

tremendous

Dangerous Doctrine

"budget-firster" concept is a highly generalized
which lends itself to many and dangerous
applica¬
The superfluous government employee who has

-and abstract

*

bugaboo of load factor, but
their worry is in reverse.
The

insists that the "human welfare" of the harbored

have

and

a

been removed from the national
to

been

in efforts to demonstrate the
effectiveness of ACTION.
They,

year

these'. programs.

Continued from page 9

This

tions.

,

of

watching at all times.

same

notion

utility companies, wideacross
the country,

scattered

in selected cities of moderate size,

very

these, ideas such

as

promote

firsters need careful

of the President.
A

Ten gas

ly

have

come

and

sell

stops in setting up mer-'
chandising and dealer promotional'
programs.
With varying degrees

year

even

commentators

and

products

own

to

as these seem
quite ridiculous. Careful students of current
affairs, however, know that these professional anti-budget

•'

split in the Democratic party

of these

When stated in such bald terms

...

pocketbooks of the great rank and. file of the people of
this country. The emphasis on the issue by so many of the
Democratic

Some

their

efforts

them.

of these

concern

nearly saying that we can all be enriched by waste or the
production of needless items in the name of defense.

nearly a genuine "budgetPossibly, the nearest thing to a
"budget-firster" to be found among the members of
either party at this moment is Senator Byrd of Mr. Ste¬
venson's own party, although the Senator, is not wholly
alone among his own political family in his regard for the
much

proved

firster" than

are

wants.

one

proving

saved

be

to

much

so

Thursday, November 4, 1954

..

their

by having them pay out
keep millions producing farm products which

billions to

ing in its attitude toward waste of the taxpayers' sub¬
much more worthy of support

stance, would have been
had

seekers

vote

1

Continued from

.

sell
L.

has
A.

Bank

become

Huey

Co.,

connected

U.

S.

with

National

Building.

Shelley Adds to Staff
(Special

to The

Financial Chronicle)

DENVER, Colo.—Jack A. Lerner
has joined the staff of E. I.
Shelley Company, Ernest & Cranmer Building.

.Volume 180

Number 5374

.

.

.

**f Mume 180

The Commercial and Financial Chronicle

effects

!e

c

fact

the

tend t<

vers

.11

group

it

issues.

V

i

seven

se,

|

;et activit
jer interes

V

A

contrary

V

'

,ed market
!

regular pu

of

-al

sec
buyers

jds

on

ip

th«

the
-ties is bei
jers

as

examinatic

s

most

20

hmon §toch
institutional

a-

tl

that

,ls

than yi<
;ket. The i

,er

tm

It

Id It

icates the 2

V

stock

nmon

and theii

is

\

the begir

v'VtK1

market,

a

date of Oc

these yi<

■cs

yield

*

of

.gained

in

1

trial averai

iw\\\

Lid

of Insti
Di

I

T

the

ince

.

Lent sustair
rted on Se;

A 'V

Dow-Jone

►

dropped t
point since
rage yield

•s

;>v

writes
rash

A

has

3.8%. The
stocks

(rial
6.1

n

jm

1

list

c

percenta

\Q

x

a

in

to 4.<

yield
atrial stoc
rage

of
*

the

insl

remains <

evidence

i

<

ututional fs

:X\b

Ids than the

\

ound

divisions

a

average

wtt*

stifle***10**
"•*4*1*0

coMmn

in

age yield

SSVEN GRfAT

/xg~

mtQ «w

trivet^;'

h\\.N

which

list

ai

of 20

tutional

/,
/

h,m» i //»

y

.ained in tl:

these

,

b

19

yield

age

ter than

t

tional favt
the 50 in<

6«« nuts
smi coir.
tfoi f. iVJiVL a
-

3d in Stan*
mm m

an ayerag
ter than tl

metm,

W
<"

^

'ppiKukm;rz::,r;.

rv*.

■**»*■

**■»",k fit

**

I'
*,

institution

..

the institi
~

rtmtf fwx,.

.

e

to

make

small groi

rdless
r

r

m

her depres*

ket
ice

Where modern

methods send quality

!!"L

""""
nnua

u/Fafo, .\rew York

"pigs"

Corporation, a division of
leading supplier of merchant

The Hanna Furnace
National Steel, is a

that go to foun¬
of useful products.

pig iron—the special types of iron
dries to be cast into all kinds

Hanna—(me of the oldest and

best known

com¬

panies in its field—employs mechanization to a
high degree in the production of "better iron for
better castings."

"automation" at Hanna's Buffalo
plant, in the form of a highly automatic continu¬
ous casting machine. Molten iron from one of the

Here you see

plant's four furnaces flows from the ladle in the
rear to form "pigs" in molds on the moving lines.
As the lines travel out of the picture, pigs are
quenched and ejected, and the empty molds re¬
turn

for

Hanna

nace
"•Cc division

to market

refilling.

supplies its iron to foundries in five grades

"f

,

for

HI»

liar
cow.
»

r>g

malleable and ferrosilicon—and in two weights. To give foundrymen
closer control of charge and melt, and greater
operating flexibility, Hanna developed the Hanna
Ten, a 10-pound pig, as a companion to the 36pound pig which has been standard for many years.

favori

the

al

>ron.

r.

issue*

greater

/

K' hl**t fut*

of

concent]

p,

portfol

YIELDS

—basic, silvery, foundry/

Hanna
name

STFFL

p*ODUCTSCO.

merchant

pigs—from the best known
one of the many ways that
Steel serves industry .. . that help make
one of America's leading producers of

National

iron and steel

*«tt

%

***!

in iron—axe but

National

«mf

t#

TA*,****

products.
Available

New Color Film Now
"Achievement in Steel*

.

new

16-mm color film

telling the dramatic, story of steel is now available to
organized groups: To obtain this film for your group,
write to "Achievementf National Steel Corporation,
Grant

national

Building, Pittsburgh, Pennsylvania,

Fco

STRAN-SIFEI a/v/sioN
rse»

Mich

Hd.JExc/i
/am

ar>d

Ttrre H»ufe

lVemtnu^cturtf0f
Qu,
•

ng.

NATIONAL STEEL
GRANT BUILDING

SERVING




AMERICA

BY

SERVING

CORPORATION
PITTSBURGH, PA.

AMERICAN

A/1

XL

srm

,

INDUSTRY
Average

Avg. Yii

Number 3374«.

180

lume

fact

the

group

it

issues.

te

v**>

it

b^rg-pull the bulk
stocks Is

divkiend#

t

t?-v»

IP.#

a

still

are

Curiously, they

By ROGER W. BABSON

re-

very

are now

small loans 25 years ago.

collected

appreciation

same

were

heavy.
being en¬
couraged
by
the
banks which
would have nothing to do with
however,

The Stock Market

of

Asserting he expects another

of

such

dividend pay*

stock-market reaction

severe

or

a

ness

regular purchases of the ta« <• *-« f.:,* h"
lecuritics would
be V**. t'Ccaos# each
successive
ip
of securities by it»$hTn*
al buyers drives down b e bun h**# irising market is
ids
on
the
popular mat fed LtWy f/» tc made at a higher
jers as the price, of these *#• l-rtce w4 produce a tower yield,

activity.

sary

justified in striking if neces¬
to eliminate bad working

fair wage.

conditions and to get a

Twenty-five

called

blue

Industrial

in

the

many new crosscurrents
market that did not exist

Stock Aver-

in

1929.

a

tivity and other Government buy¬
ing, heavy spending, support of
farm
prices, and especially the

made

Unions

labor unions in their place.
are

of

usefulness

general

the

prove

Says current market presents much the same
irregular picture as was present in 1929, but points out there
are many new crosscurrents that did not exist then.

tvmtmue4 the return

condition to¬

different

Another

day relates to labor unions. Every
right-thinking person must ap¬

later of at least 50 to 75 points, Mr. Babson holds
break could occur even during a period of good busi¬

sooner

W'luiit.ci If both the growth

fKfutn

',ed market theory.

If

even

trend

19

(1843)

irmaini. the same,

*>t

txthrr.

reactions tVt
generally k*>
First t»f s-'J.

to

contrary

happen

>

gnmttt

mvt

*a't

tV:f

restricts

t

»v

*,t «>f the ret urn from

activity and causes wkm*

interesting

fer

I

ImtM*

practice,

This

severely

.se,
! ;et
'

popular

of

ill

14m

tfi-r.1# m

concentrate m% &

tend to

*ers

«b4 financial Chronicle

of dollar aviwb'.3f TV,# I
that
institute At. W* I

effects

»e

Tkt C^

*

however of
a
well-known forecast about an tanced the bulk of the issues on demanding more money merely
lite** i* a pcissihihty that the
,;ties is being driven upward.
impending big break in the stock the market, due to concentrated because a union has a monopoly of
examination of the yields oo '|it« wnt market level wilt go much
market. At the close of the previ¬ buying, much of it by Institu¬ a certain industry is wrong and
) 20 most popular inductrnl b aiter if dollar averagers adhere
ous
day, Nov. tions, Pension Funds, and Mutual could ultimately bring on a panic.
timon gtocks
in the port ml-o .to their regular purchase schedThere are in
3,
1929,
t h e Investment Trusts.
institutional buyers dearly re* ide« rr £*<-<* aesj at market level. It
Dow
Jones addition
I

ago

years

have

chips

outdis¬

The

system,

present

,

-

befinihdv

w;>ald t# hazardous to predict the
end of the present market rise
; ket.
The accompanying table *%«•n if tar rungs tend to stabilize
icates the 20 leading IndustUwl <>r tarn down because dollar av;->mon
stocks held by ifurtitu* tt-Hu't tgmrm valuation.
This
,)S and their yields at Sept 14, regular irdlu* of funds into the
the beginning of the prearrt market may very welt push yields

'•

they

that

,1s

are

than yields of tin- general

,er

ket

the

of

•iained

the

in

storks

30

ywld# In

in*

Dow-*, ones

tuthmat

km-

icld of Institutional I imlki

ent

ked

industrial

aver*

ent

dropped to 255.49, Iheir low*
point since July 2(V 1931, the

writes

has

from

dropped

trial

list

percentage

It

_

declined

about

**fl: 1#

fregmif

in

concluded

represents

t«e

mast

end

a

market

Thia

volume

huge

comparison of the
age yield of this group with
yield

the

of

ained in the Dow-J(
which

list

of

20

tutioiial
these

ter

buyers.
19

than

of

the

h# the bnri of

y

How ever,

ft,.

as

hi*4h grade bonds.
indicated
in
the

rim

jwvfral of the leaders have
w have gone
beyond this

yield of the in*,

an

yield of 4.8. f <>V

average

ter than the average

kit

yield id'

institutional

v*vtn,eut

group.
the institutional buyers r»n»
e to
make regular pun lew*
small group of

rdless

of

the

r

concentrated
her depress the

ket
ice

alar

favorites.
the

a

thesr*

YIELDS

ON

gcmisly

in-

When it

purchases
of

of

can

INDUSTRIAL

—

*!#«*'*« »#«*%«

Standard Oil of N

Electric.

J,****

as

be in as vulnerable a
in 1929, especially if

fact,

it

has

moved

up

100

over

points since September, 1953.

expect

action
to

50

sooner

re¬

during a
business activity
even

now

period
such

can

both
well

to

late

recall

few

stock

crash

in

risk

Investment

ings and promised

Trust

inventions

and

had

never

industrial
then

anticipated.

■

of 1929

were

bring

short,

The
much
as

the

vent
some

same

not

danger

signals

now

a

wave

of

mass

MATEO, Calif.
has

Second Avenue.
in

invest¬

offices

Mr.

to

was

San

Mateo

and

recently

has

'■
.

Investors
(Special

to The Financial

Calif.
Corporation

Funding

with

Colorado

offices

Street

securities

to

business.

Chronicle)

Investors
has
been

—

at

234

engage

East

in

Officers

William A. King;

President; John
Howard, Vice-President and
Treasurer; and John F. Gibson,
1VI.

Secretary.

Lewis & Roegner Formed

foreclosures

(Special

to The

Financial

Chronicle)

MAPLEWOOD, N. J.—Lewis &

Purchases

offices

has

at

been

56

danger, namely, installment
purchases.
These purchases are

engage

today not increasing rapidly. They,

formed

with

Chestnut

Street..,to

securities

businesss.

of the firm.

in

a

George A. Roegner is

a

principal

Era"

Newport News Shipbuilding and Dry Dock Company

Vtfld Ba*M>dl

Quarterly Statement of Billings, Estimated Unbilled Balance
«n

Price

of

Oct. K. 17151

Major Contracts and Number of Employees

4.2

Three Fiscal Months Ended

3.8

du Pont de Nemours....

4.7%

4.3

417

2.9

September

September

September

27, 1954

28, 1953

27, 1954

$26,405,038

$23,367,361

$85,443,201

$64,320,060
36,823,114

Union Carbide & Carbon
General Motors—

391

40

3.0

204

7.4

Gulf Oil

341

4.8

3.2

Shipbuilding contracts

Ship conversions and repairs

Nine Fiscal Months Ended

September

4.4

Westinghouse Eledric

231

Billings during the period:
.

.

.

.

.

28, 1953

50

2.8

1,521,838

8,240,009

18,750,650

66

4.2

10.1

6.6

Hydraulic turbines and accessories

1,803,816

985,717

4,586,431

3,618,178

zn

5.2

4.1

Other Work and operations

3,754,957

2,518,926

10,158,002

7,837,587

Socony Vacuum

zm

6.5

4.5

Standard Oil of California*...

zu

60

4.0

48

4.1

233

3.1

2.8

33

2.9

f

'Of. &

sk

.

Texas Company

Kennecott Coppes*

—

Phillips Petroleuri^..

Sears Roebuck.

Totals.

,

,

.

Chemical....,

.

Standard OU of Indiana,
Eastman Kodak...

***«*-<*t«

Montgomery War

close of the
Number of

2.4

the

Continental Oil tl Dclaaaie

Vi

*»«,

Jf

'

5.1

3.7




period

major contracts unbilled

.

employees

.

on

...

.

.

.

.

$35,112,013 $118,938,284 $112,598,939

September 27, 1954

At

September 28, 1953

at the
.

.

$198,608,480

$219,374,133

13,989

16,489

roll at the close of

.

6.1

4.6

.

.

.

.

Company reports income from long-term shipbuilding contracts

on

the percentage-of-comp!etion basis; such income for

period will therefore vary from the billings on the contracts. Contract billings and estimated unbilled balances
possible adjustments resulting from statutory and contractual provisions.

are

subject

By Order of the Board of Directors
October 22, 1954

Average Yield 20 Sto<ks(......
Avg. Yield Dow-Tones Indwdiui*

$33,485,649

.

any
to

"»

period

The

3.4

30

*>.*

.

-

4.7

4.7

**>■>#

*«M>t
...........

3.3

4,5

22$

Allied Chemical and Dye....

Dow Chemical

43

«

.

At

Estimated balance of

Monsanto

.

.

a

are

COMMON

IN-fC ||, |»:»a

I'/

:

Funding Formed

PASADENA,
formed

/

we are dan-

"New

23

at

Hassan

been associated with Sutro & Co.

day.

This brings me to another pres-

irregular picture
1929.
The so-

John S.

formerly in the securities business

ent

presents

from

—

the

resumed

business

Roegner

Advice

present in

was

are

Installment

market

possible
This is a new

on borrowed money. Only
the Federal Government can pre¬

■■

current

ment

a

mostly

confidently
Basically, there was

Conservative

a

SAN

Hassan

building is,

evident, this
new
danger signal of the "build¬
ing
boom" is
surely
with
us.
Furthermore, today's building is

then

■■

home

the

Where

ago.

weakness, but it was most ap¬
parent in stock market specula¬
tion.

justified

factor which did not exist 25 years

our

to

(Special to The Financial Ciihonicle)

very

and the in¬
has

becoming

of danger.

source

the

In

on

.about.

was

of

while

Home building

1929

in

boom

however,

before."

concerns

depended

miracles

"New Era"

as

laboratories

research

The

di¬

hold¬

"such
seen

since

J. S. Hassan Resumes

em¬

importance of today's advertising.

produc¬

mass

sound;

higher prices for both homes and
stocks.
Again, I commend the

with

through

50%.

actually booming,

flation

anticipat¬

larger dividend returns

reduction

versified

least

at

Nightingale, Jr.

Good

are

is

ahead.

then

were

fair;

are

Nightingale

Company, Salt Lake City, is the
proud grandfather of W. T. Night¬
ingale III, courtesy of Mr. of Mr.

good; profits in

now

lines

Now

now

are

W. T.

W. T. Nightingale, Sr., President
of
the ( Mountain
Fuel
Supply

and Mrs. W. T.

of

It is

outward

Investors

stocks

mar¬

being "bought on
margin"; all must have a margin

that, in 1929, there
signs of the

market

these

most

few stocks

independently of

move

were

a

when the

Conditions

ployment is

I

as

business and earnings.

also

power

The banks

of

Stock prices
demonstrated that

they

great

General

forecasting.

of

tion

be

ket reached the unbelievable bar¬

deducted.

are

have

ing

purchasing

break in the market could

a

good

a

should

tax

to take the profits they thought
they possessed. Nor did they have

severe

later, of at least

Federal Taxes

Such

am

or

gains

75 points.
Surely, present gain levels of 1932.
yields are now too low, when

stock
1954

another

capital

63%

k

—

soon

be considered

fxdicy

close

position
the

OF INSTITUTIONAL BUYERS

company—.

General

an

may

Aver¬

repealed, for which the "bears"
are striving.
Those who were un¬
prepared in 1929 had no chance

thinking,

FAVORITE

20

STOCKS

an investment

decline,

will

purchased?
regular

dollar amount

If this practice

which comprise
part of th# fmtd.i*

portfolios,

as

market level? When
it tend* hi be confined to a very
bmihit number of popular stocks?

cow*

fmm

returns

regarded

yoiicy when it Ignores

rr 'ardiess of

yields of t};c>e
As

for

constant

wdl

Can dollar

qtaction of the current value

i,«!s

level

buying

e

of the

issues,

greater
al

C

quaUty >h* fcx
market

indicate.

«vrragdv* be

less

Today

six

mar¬

of

The

uwasr*

eight

within

358,

world

tional favorites. On the fnhe eMne
grouped institutional favorthe 50 industrial stocks coo- did iu
aproa<
this level much
ed in Standard and Poors' Jot r.ore rapidly than the usual mar-

economic

In

bed

fet'.d t!a:» average yield of the

the

points

stocks

common

programs,

the highest figures since 1929.

1

1.3";

5.1%,

continu-

heavily invested in by instilulional btivtrs has not declined

snowed

stocks

the

Oct

Oi

is

m

in

I

a

yield of

»e*

nc* aver*

frvorcd

stocks

yield

age

slock#

included

not

are

institu-

ally shrinking the floating supply
of storks. At this point the aver-

a

average

new

been concenlimited number of

market favorites and

general,

in

is

Nightingale Sr.
Frond Grandpa of WT11!

can

weeks.

age

W. T.

important.

very

that

clear

Industrial

Dow-Jones

occur

busing has
trades!

in

the

of

in

than

the

has

it

fmntuMeg power into the market,

Ids than the market

i

Since

II

War

ututional favorites have lower
round

that

billions of dollars of

favorites,
greater. Fur*

av-

and

new

150

Reactions to Be Expected

the

is

ac¬

change abruptly and
snowball rapidly to an unexpected
degree.
The real purpose of my
column this week is to bring to
your
attention that the .market

a

—

of

points
Roger W. Babson

I

from

mogru/ed.

World

of

evidence of the fact that the

•i

decline

New and

a

force in the

institutional

remains 0.8%

f

approxi-

analysis that dollar

the

this pcrh«.i
rt 6.1
to 4.6; however, the
^age yield of the Dow-Jonct
rjstrial stocks, which includes
the

of

high grade bonds.

consider

ket

ing at 230

relent Market Factor

5 2

,{,8%. The average yield of the
stocks in the Dow-Jones in*
_

yield
on

It

advertising

new

I

swiftly, clos¬

already beyields of ap¬
on high grade

IMIar Averaging

yield of the institutional

rage

average

mafefy 3.0%

which

picture and the trend in the

is

average

intense

and

shortly

the insti*

on

immedi¬

armament

plunged down

av-

of

beginning

Dow-Jones

of

t&e

present

prefer red*. If the yields of popu¬
the lar Issues drop another 25%, as
sustained upswi tg, mhkt* they 4p| in last
year's bull mar¬
on
Sept. 14, 1F53, u l~.ru |,et# Ifity % lit he below the presthe

•5

3e

favorites

proximately

Dropping

ince

yritht of 3,8%

etsge

..rial averages.

The

1921*.

mar¬

weaken

!cs these yields with the aver* tvmted telwren nond and stor k
yield

The

ately began to

market, and the recent mar* *1 favorite industrial
common
date of Oct. 8, 1954, and rum* Hm\* beyond the imbalance that

»

at

stood

g e

380.

have

We

r# |#

FLETCHER, Financial Vice President

SO

Continued from

said to make

page

o

We See It

As

I

first

,

v

.

,0

..

"

it

had

no

proved much more nearly a genuine "budgetwas the case.
Possibly, the nearest thing to a

production of needless items in the name of
V

to be found among . the members of
either party at this moment is Senator Byrd of Mr. Ste¬
venson's own party, although the Senator is not wholly

"budget-firster"

alone among

his own political family in his regard for the
pocketbooks of the great rank and file of the people of:
this country. The emphasis on the issue by so many of the
Democratic candidates and. their.7" supporters ^ this year
underscores the split in the Democratic party even as a
number of other events have emphasized division within
the party of the President.

these

as

..

firsters need careful

This

"budget-firster" concept is

from

9

page

~

to

is

payroll and told in effect,
find more productive and useful work in private life1
quite likely to find a "friend" in the politician who

insists that the "human welfare" of the harbored

hireling;
party happens to be in power is far more
important than any effort to pare or prune so impersonal

of

whatever

and abstract

thing as a set of figures setting forth the
outlays of the Treasury.
a

bugaboo of load factor, but

The
air

conditioning is creating for them
excessive
summertime
peaks
which

meet.
An
obvious answer is the promotion
of electric heating.
Not so much

costly

are

in 1954 or 1955

to

in the next

or even

few years, but over the long pull
this

well be the

may

less the

industry

gas

different

a

do

To

substantial

un-

can provide
capturing a

by

one

large portion of the

ing load.

answer

cool-

summer

will require

so

improvement—

."

..

When

"human

the

needs"

of

the

embattled

farmer

placed above and beyond all budgetary considerations
to the solvency of us all is real. There are a
great many farmer voters in the country, and the obliging
politicians have for decades been pouring out billions of
are

the money

belonging to the rest of us to keep the farmers
The Truman Administration after the 1948 elec¬

tions
the

out-Heroded Herod

tillers

of

soil

the

its

in

and

scandalous generosity to
husbandmen.
Dis¬

passionate citizens of the;United States who have the
interests of their
stand the
.

debt of

which

true

country truly at heart and who under¬

inwardness

of

this

situation

must

gratitude to President Eisenhower for the
enabled

him

feel

a

courage

to

speak some plain words on this
subject in the face of danger of attack from servile Demo¬
cratic politicians and timid Republicans. The fact
remains,
however, that the Administration has hardly scratched the
surface, and the outlook for really constructive states¬
manship in the matter has

never

been good.

The Administration succeeded with

i

virtually no opposition within or outside its own ranks in
enacting into law
an extension of the so-called social
security system with
no
regard whatever for the inevitable effect upon the
budget of future years and future generations. The fiction
that future

funds

to

beneficiaries

actually

are

now

providing the

their future benefits is being permitted to
gospel among those who have no understand¬
ing of the complexities of a so-called reserve system which

continue

pay

as

in effect takes the "contributions" of future beneficiaries

and

spends them as the politicians think best, leaving
future pensioners dependent upon the
production of future
workers to meet the ultimate cost of the
generous schemes
now

part of

be the

our

system—as must inevitably in any event

case.

1

-

*

Another sin

in control at
our

defense

ministration,

attributed to the "budget-firsters" now
Washington is that they have all but wrecked
for thirty pieces of silver. The
/present Ad¬
as

a

matter of

of commendation from

ing the emphasis to the
defense

system

in

fact, is due a large measure
all for its insistence
upon shift¬
creation and maintenance of a real

us

contra-distinction

amounts of

to

spending "large

money on defense. The actual state of our de¬
subject far too technical for most of us to hope
to appraise
independently. It is likewise true that the
layman, particularly when hardly more than a
smattering
of the tacts is available to
him, is in no position to form
a
very firm opinion about the degree in which the waste
and the pointless
extravagance have been eliminated from

fenses is

.

.

It appears to us rather

absurd, how¬
the budget has been
placed

equipment

that

so

..

,

,

the

market

can

effectively reached; and

more

in

Third,
motional

the

selling

pro-

utility companies alike.

Through

the

is

A.G.A.

engaged

year

able.

lt

must

r

,

philosophy—if their




they

aggressive
careful market

on

buttressed

and

are

action,*

analysisadequate fi¬

by

moral

support, does*
In one of these cities J
example, dollar sales of gas
appliances per residential meter in

get results.
for

of selling gas

as a

the first four months
creased

other

41%

cities

company

eral

served

by

economic

1954 in¬

and

showed

same

same gen¬

competitive
losses

to

37%.-

We know

pliance

premium

Three

the

and facing the

conditions

22%

of

1953.

over

sales

generally

from

that ap¬

in

the

fuel, and speaking on behalf of early part of 1954 were below the
the manufacturers of gas equip- previous year.
In its demonstra¬
ment who must compete with tion city, this company has
proven,
equipment using fuels which are to its own satisfaction and to all
not interruptible in their supply, who are interested, that
ACTION,
I urge upon this great industry the in capital letters, pays off.
wholehearted endorsement of an
Which brings me to the

brings

"Action

to

make

Program

manufacturer.

industrial

the

utility

have

a

closing
happy
the

more,

Gas

Indus¬

in fact

them with

season

the cooperative

a

gas

Add all their pro¬

together,

through

individual

and gas appliance

company

grams

conditioning,

sales—we

for

each

of

program

and

happy
closing

try Development" is becoming the

gas within the limits of the systerns capacity for those opera-

air

a

can

observation.) More and

"Each gas utility company is
urged to provide firm industrial

areas—cooking,

make

me

point where I

It is:

Development.

it

say

Gas Industry

Action Program for

can

(Or perhaps I should

efforts carried

A.G.A.

on

and

GAMA, and
have todav "THE GAS

we

INDUSTRY

IN

ACTION."
'

'

.at

the

armor.

Some of you in this line
audience will be disappointed be-

Thomas Graham Kamed

the

round gas system avail-

cause areas in which you are more

To S. F. Commission

is

a

be

now

intensified

and

first step,
the in-

necessary

supported

by

directly
interested
were
not
chosen for discussion. Let me asthat their omission does

sure you

dustry at large,- through contribu-

not

tions to the PAR Program,

in those
liminary

areas.

the

industry

willingness
perimental

to

buy

and

through
test

ex-

models

using various
cooling cycles, through aggressive

there is want

mean

of action

Indeed,

my

pre-

notes for this occasion
dealt with many other aspects of
gas

in

action,

for

efforts to promote the best
equipment available
now
and
at
all

example:

times in the future.

upgrade
gas wa? f<£us °ur selling
JL
1 S on * s<:
water heaters which are at least

This is action,

.the kind of action needed to
a

keep
potential bonanza from becom-

ino-

nitfall

n

It's

instead

"

"

■

~

fpr

„

termS 0f size and

long jump from the home
appliances we have been discuss-

ing

to

sales.

the

subject

But, if

of

industrial

vou want to go

back

to our talk about the

cooling load,
there is a connecting link.
It is
in
the
word
"cheapness."
Just
as
this great
industry has been
prone to sell the "cheapness" of
its cooking appliances, so in all
too many
instances has it been

sellrng .the
.trial

gas.

-

cheapness
At this

of indus-

point, lets not

aloneITS SaHzTthat

price
the

hpat^r

a

change in economic
conditions brought about by
post-

inflation,

war

coupled

with

,

.Development of a package
kltchen to supply the new and
m°deled home market;

,

Improvement in operating

created

in

some

the

country

an

anomalous

re-

appliances,

and

the

Recognition

the

of

of

"

_

presently

ikm

!

.

Participation by the gas indus*n .^e Better America Pro-

tion—gas, historically and intrin-

Sram, aimed at the prevention or
elimination of slum areas in the

sically

cities of

a

premium

fuel, is priced

the
cost
of
comoetitive
This may be all to the good
for those who are
buying

below

And

fuels

nothing

more
than a quantity of British
thermal units, but there is
danger

in such

a

situation.

It is the dan-

ger

true

value
its

of

the

service

obligation
reliable.

to
I

it

make

am

not

speaking against the off-peak
interruptible sales which are
vital

factor

many

in

utility

the

cpmpanies.

speaking against
regard

economics

any

I

or
a

of
am

tendency to

all industrial sales

as

be-

year

To

our nation;

so

on.

discuss

audience.

by

now

in

action.

transmit

that

of

tax

these

the

It

the

gas

at

be

who

distribute

produce
gas,

and

before to

me

Financial

Chronicle)

in

the
are

Majestic

Building.

Ralph W. Newton,

Jr.,

President; Charles W. Marion, JiV
Secretary - Treasurer; David I.

to

do)

Huey Adds to Staff

clear

strengthen their
competitive position.
Not by ignoring or belittling their competition
(which would
be
rather
for

fices

Officers

(Special to The Financial

industry is

their
trade
associations
A.G.A
and GAMA—are
working together

hard

The

one

those who manufacture the appliances
and equipment which
consume it,
individually and through

as never

to

DENVER, Colo. — New - Mar
Uranium Corporation is engaging
in a securities business from of¬
<

patience of

should

Those

and

(Special
.

Powers, Vice-President.
all

sitting would
any

.

term.

New-Mar Uranium Corp.

of additional uses
&as and increased emphasis on

known

of

situa-

Sinking Fund for his third three-

unrealized

opportunities available in the sale
0f gas for commercial
uses;
,

Graham

LOUISVILLE, Ky. — Thomas
Graham, The Bankers Bond Co.,
Incorporated, Kentucky Home
Life Building, has been elected a
commissioner
of
the
Louisville

prac-

location

Thomas

•'

meters;

the

sections

gas

tices with respect to the adequacy
of house piping, the venting of

inflexibility of regulatory policies,
has

per'

'

_

drastic

service

social

And

that

sells

Continued

research

in

including

gaged in research,
manufacturer who

that

and

in

picture of the approach which our
meet the industry's need.
Several Industry is making towards the
manufacturers
are
likewise
en- ^strengthening
of its competitive

only

;

nancial

Program, Pb" interruptions or curtailments."
in research ' Here, in three widely separated

looking towards the development
of
gas
fueled
air
conditioning
equipment which will more nearly

the

be dignified with such names as these.
They
probably do not realize how nearly they come to
adopting
the syster^r by which some of Mark
Twain's groups were

based

PAR

and

can

,

tions which cannot tolerate sup-

and

efforts of manufacturers

sells

precepts

;

manu¬

These politicians who
delight in
others whom
they describe as

strange sort of economic

proving

■

•

.

..

observation.

distributing fa-

They,

markets

With varying degrees'
participation, they have drawn'
appliance
manufacturers
into-

point where I

ever, to assert that in this area
first and our real needs second.

-

the

programs.

£y fhe Industrial and Commercial
Section as an amendment to the

that not only regulatory bodies
but. our industry .itself may. forget

pouring scorn upon
"budget-firsters" have a

;
•.

additional point recently proposed

..

gas

facturers

and

..

the

in

of

cilities

a

the defense effort.

such

ing interruptible almost at will,
Speaking from the viewpoint of a
company which has sold substantial quantities of firm industrial
gas at premium prices reflecting
its value as a processing fuel,
speaking on behalf of the men in
our industry who have made a
career

past

They have pulled
all the stops in setting
up mer¬
chandising and dealer promotional'

characteristics

*

Defense and the Budget

ACTION.

surveyed

cost

competitive

air conditioning equipment;

Second,

be

the

performance

of gas

livestock

and

in

First,

the hazard

happy.

of

these 10 cities.

^

.

The Gas Industry
worry is in reverse.
tremendous boom in electric

been removed from the national

have

and

their

highly generalized

a

effectiveness

current

size'

of

watching at all times.

same

notion which lends itself to many and dangerous applica-.
tions.
The superfluous government employee who has

utility companies, wide¬
across the country

these' programs.;

Continued

and

promote

in efforts to demonstrate the

year

anti-budget

quite ridiculous. Careful students of

seem

and

in selected cities of moderate
have been engaged for the

,■■■

?

sell

scattered

ly

the

defense.

affairs, however, know that these professional

Ten gas

}

very

come

When stated in such bald terms as these, ideas

,

-

Dangerous Doctrine

commentators

Some of these

wants.

one

products

own

to

them.

which

nearly saying that we can all be enriched by waste or

firster" than

A

prospects are

keep millions producing farm products

billions to

their

their efforts

supposed to be the subject of so much concern of these
vote seekers are to be saved by having them pay out

ing in its attitude toward waste of the taxpayers' sub¬
stance, would have been much more worthy of support

Thursday, November 4, 1954

..

.

proving

living by taking in one another's washing.

a

The rank and file whose economic status and

.

.

Financial Chronicle

The Commercial and

,

(1844)

but

by

im¬

Chronicle)

DENVER, Colo.—M. Paul Rus¬
sell has become connected witn
L.

A.

Huey

Co.,

U.

S.

National

Bank Building.

Shelley Adds to Staff
(Special to The Financial

DENVER,

Chronicle)

Colo.—Jack A. Ler-

Volume 180

Number 5374

..

.

(1845)

The Commercial and Financial Chronicle

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to market

Corporation, a division of
National Steel, is a leading supplier of merchant
pig iron—the special types of iron that go to foun¬
dries to be cast into all kinds of useful products.

The Hanna Furnace

Hanna—one of the oldest and best known com¬

panies in its field—employs mechanization to a
high degree in the production of "better iron tor
better castings."
Here you see

"automation" at Hanna's Buffalo
plant, in the form of a highly automatic continu¬
ous
casting machine. Molten iron from one of the
plant's four furnaces flows from the ladle in the
rear to form
"pigs" in molds on the moving lines.
As the lines travel out of the picture, pigs are
quenched and ejected, and the empty molds re¬
turn for
refilling.
Hanna

supplies its iron to foundries in five grades

NATIONAL




AMERICA

silicon—and in

?J8t fur~

tynel J duct,on
<TPes of

p)g iron_

malleable and ferro-

of

merchant"

pigs—from the best known
name in iron—are but one of the many ways that
National Steel serves industry
that help make

SATm"ODUOJco-

a"d

dist'riburion'f. ?f'l">U5e

one

of America's

iron and steel

'''Achievement in

from

c

pr

e«,,

-a

,

Tikes

Great

NAr'0NAl M|NB

Attest

N.ti0„;,sr;

products.

Steel]*'....

.

a

Available

new

16-mm color film

telling the dramatic\ story of steel is now available to
organized groups.- To obtain this film for your group,
write to "Achievement," National Steel Corporation,
Building, Pittsburgh, Pennsylvania.

SERVING

,ngs in

ow

Ohio

leading producers of

New Color Film Now

Grant

OK

of

...

National

"ANNA .Ron

Cleveland,

weights. To give foundrymen
charge and melt, and greater

operating flexibility, Hanna developed the Hanna
Ten, a 10-pound pig, as a companion to the 36pound pig which has been standard for many years.
Hanna

various

Wn

CORP

Hi

division for

Wtl«rON STEEl
COMPA

We.rton, W. Va.

two

closer control

STEEL

BY

ot

—basic, silvery, foundry,

GRANT BUILDING

SERVING

n**

WELDED INTO

STEEL-MAKING STRUCTU

CORPORATION

£ttmaTrHaUtt.

famous

Quonset

•,

?ctUrer°f

national
STEEL

PITTSBURGH, PA.

AMERICAN

"ran-seeee division
J"d

INDUSTRY

C

21

22

Protests Discrimination

lieve, conveys to the layman more
than anything else the meaning of
stocks.
I enclose a copy thereof.

Against

Over-the-Counter Broker

est

the

of

munity

Receives Slate for Officers for 1955

that

lately.

of the

New

which

undue

an

York

Stock

discrimination

non-member

securities

Ex¬

imply

to

appears

against

I, myself, have warned for
the last two years off and on in

booklet: "What Do You Know

read

follows:

with

"How

to

the aforemen¬
implication prevents me

Spot

wholeheartedly
that

by Mr.
the "Ex¬

firm

community

will
.this

with

agree

that

to

an

undue

discrimina¬

tion is

being implied between
"Exchange member" firm and

an

"over

by

the

-

-

counter"

".

.

when

but

.

Exchange
be

can

nated

that you

sure

more

deal with

you

member

the risk.

A

New York 4, N. Y.

Oct.

Walter A. Schmidt

1954.

12,

,

firm

Opposition

of

rubber

citzens

accurate

fields

several

of

been

has

busi¬
spear¬

headed by the cry of "give-away,"
The
Guaranty Survey, monthly

plants to private industry
after April, 1955? i
.

reasonable enough to ar¬
gue that the synthetic rubber in¬
"It is

dustry

rightfully

publication of the Guaranty Trust

Company of New York, observed

people

in its November issue.

shibboleth

cal

of

The politi¬

"give-away"

is

discussed in the leading editorial,

titled

"Give

"This is

torialized

to

the

accusation that

an

is

government

taking

what

rightfully belongs to all the people

the

by

another.

the

the

people is

one

The

that

West

public

were

in

lands

thrown

open,;

private settlement in the

19th

Century also belonged to the peo¬
ple,

but

that

the

tributed

would

who

lands

today

argue

have

would

few.

bestowing it upon a favored
It is important that the peo¬

ple

should

with

being

was

used by the Securities
change Commission.

and

Ex¬

behind

At any rate, the
way aforemen¬
tioned article reads, it conveys the

the

public

Exchange

is

broker.

incorrect

You

know

far
are

is

a
a

"over-the-

no

This, of

and

there

only

Member"

reputable firm but
counter"

that

course,

from
a

facts.

number

of

"over-the-counter"

firms, and I
firm, who are at

include my own
least in equally good standing as
some
of the "Exchange member"

firms, and who make it a distinct
point to conduct a highly ethical

understand

what

lies

the

accusation—what, if
anything, has been 'given away,'
by whom, and to whom.
"What

'given away' when
Congress passed and the President
signed the bill recognizing the
was

the States under

to

of

a

settled rule

supported

law,

by numerous
court decisions.
The question did
not
assume
major importance,

however,

the

until

late

1930's,

when rich oil

table

"over-the-counter"

broker

states.

and

"member"

incon¬

the

promptly laid claim to these newly
found
riches, and the Supreme

"over-the-

vital

function

counter"
the
I

house

Without

elaborating

of

dealer,

is

the

too,

you,

"over-the-counter"

would

say,

an

even

know

dealer

munity than the
sion-broker.

"Exchange

average

At any

com¬

commis¬

rate, not the

member"

"over-the-counter"

im¬

more

portant link to the financial

is,

but

dealer

is

the
in¬

strumental in distribution of stocks
and

providing a basis for the re¬
spective company to have its stock

listed

I,

on

the

"Big Board."

myself,

stocks

as

Stauffer
Aircraft

just

to

lately

have

retailed

such

Co.,
Chemical
Corp.,
Rohr
Corp., Royal Dutch N. Y.,
mention a very few who
listed

were

on

the

"Big

Board."

Further, the "over-the-counter"
market offers

many

good invest¬

ment

opportunities for the public
well as the "Big Board."

as

To

quote "The Commercial and
Financial
Chronicle":
"Any
in¬
vestor

the

who does not capitalize on
investment opportunities that

abound
market

on

the

does

over-the-counter

himself

an

injustice

of the first magnitude."
I also dare to
say
of

reputable

that a number
"over-the-counter"

firms

go out of their way to en¬
lighten the public, and to warn the




covered

off
The

resources

the

despite

vote,

were

of

coasts

Federal

a

dis¬

few

Government

precedents

to

energy

bill also

were

takes

"Congress,
satisfied

away"

sub¬

of

of

or merely
'take-away,'

a

time-honored

a

Did the

an act

the Federal Government

a

the

not

which

before

it

and

of

had

which

give

title to

it

pos¬

prob¬

ably would not have thought of
claiming if the oil had not been
found

there?

Oil

is

an

Federal

Government

seize all the land?
answer

The

should

socialist's

might be 'yes,' but the tra¬

ditional

"The

American
essence

of

answer

the

is

Federal

royalty

rights

revenues.

'no.'

'tidelands'

controversy is States' rights
sus

a

initiative

private

and

him

enterprise, the bank concluded.

(Special

to The Financial Chronicle)

LAS VEGAS, Nev.—Allied Un¬
derwriters Company have opened
a

branch

Sixth

office

126

at

B

South

Street, under the direction

New Hale & Co. Branch
LAS VEGAS, Nev. — Hale and
Company have opened a branch
at

South

1734

Main

Street

under the management of Donald
G. Hale.

LAS

VEGAS

branch
Fifth

&

Co.,

office

Street

,Nev. — Muir,
has
opened
a

at

under

2401-B

the

South

manage¬

ment of Edmund W. Dumke.

After 10 years with

community is concerned,
been given nothing.

"What was 'given away' when
Congress passed and the President

Barrett Herrick
Barrett

Herrick, head of Bar¬
rett
Herrick
&
Co., Inc., New
York City, passed away suddenly
Oct. 29.

Weld & Co.

rapidly through

advanced

White, Weld & Co., Mr. Schmidt was, in

Savings Bank, Chicago, and three years later became California
representative

of

Halsey,

in San Francisco.

Stuart

&

Co.

& Co. organization: syndicate department,
sales

manager,

York

headquarters

Inc., with

He held various positions in the

Halsey, Stuart

Chicago office, 1927-28;

office, 1932-37.

He

Philadelphia office, 1929-32; sales manager, New

withdrew

in

1937

to

organize, in Philadelphia, his own

firm, Schmidt, Poole & Co., predecessor to the
today, Schmidt, Poole, Roberts & Parke,

a

he heads

company

member of the Phila¬

delphia-Baltimore Stock Exchange.
in

the

interest

of

years

the

held various positions of
known

Mr. Schmidt has worked energetically

underwriting and securities business, has

leadership in trade

groups,

throughout the financial community.
Bankers

Association

Vice-President,

1952-54;

of

America

Governor,

Legislation Committee,

and is widely
served the

He has
in

numerous

and many

His

flected

1946-47; Chairman, Rights Com¬

1953-54;

others.

interest
in

capac¬

Chairman,

1945-47;

mittee, 1952; Special Convention Attendance Committee,

other

in

the

investment

banking business is

also re¬

positions of leadership he has filled: Chairman,

Pennsylvania Group of the IBA, 1950, at which time he
inaugurated the IBA Investment Forum in the East; District Com¬
mittee, National Association of Securities Dealers, 1949-51; and

President, Bond Club
service

of

Philadelphia, 1943.

affiliations include:

Business, social, and

Director, Pennsylvania Gas Manage¬

ment

Company; Municipal Bond Club of Philadelphia; Financial
Analysts of Philadelphia; Financial Advisory Committee, YWCA,
and

Executive

Committee,

Golf

Association

of

Philadelphia.
Mr. Schmidt has been

prominently identified with the evolu¬
Invest-in-America Week and has played a vital role in
establishing this project on a national basis. Currently, he is

tion

of

Chairman of the Executive
Committee of the National
America organization.
In the past few
years,

to leasing and
As far as the

he

and

departments—cashier, statistical, and trading—to become

Philadelphia;

Muir, Dumke Branch
Dumke

He entered the investment field

Eastern

of T. R. Dickstader.

office

Angeles, and Delmont K.

1922, made manager of the bond department, Standard Trust and

Federal

Allied Underwriters Branch

Co.,

member of the sales staff.

Throughout the

H. G. Huntzinger Opens

&

Barney

The Chicago office of White,

messenger

as

reas¬

tradition

ver¬

business
it has

private

the

American

important

natural resource, but so is all pro¬
ductive land.
Does it follow that

the

various

"give¬

discovery of

oil under the submerged lands

lands

dislike is

the

of

Smith,

graduation from high school in Hinsdale, 111.,

of his birth.

employed

ities:

right, the repudiation of

sessed

really

sertion

of

Co., Los

&

to the securities business.

Poplar Street.

the

to

'give-away'

confiscation?

shouters

Witter

Dean

at the age of 16 upon

Investment

by President Eisenhower..
a

the

American Securities Corpo¬

Farrar,

Mr. Schmidt has devoted his entire business career, almost 43
years,

rities business from offices at 2200

was

merged lands, and three times
passed bills recognizing the States'
ownership. The third was signed
"Was this

Phillips,

not

claim

the cancellation

as¬

pattern of private enterprise.

What

of

E.

validity of the

the

government's

toward

step

similating nuclear technology into
the

&

Pfeffer, National City Bank of New York.

DENVER, Colo. — Homer G.
Huntzinger is engaging in a secu¬

however,

with

initial

an

Roberts

Chicago; John C. Hagan, Jr., Mason-Hagan, Inc., Richmond; Ralph

The

vey.

however

the

contrary.

the reassertion

Stromberg-Carlson

atomic

K.

Holden

York;

New

the town

discussed

Court upheld the claim by a 4-to-3

a

^

them?"

by The Guaranty Sur¬
new atomic-energy law,
complicated, is common¬
States' claims to submerged lands
weal legislation and is not "give¬
—the so-called tidelands—within
away," in the view of the bank
their historic boundaries?
For a
publication. It terminates the iron¬
century such lands had belonged clad
governmental monopoly and

business. Furthermore, to make a
discrimination between the repu¬

sistent.

more

The Niagara power controversy
and the "give-away" clamor over
the

Poole,

Schmidt,

Schmidt,

Pfeffer

;v

Vice-Presidents:: Robert H. Craft,

ration,

con¬

and

would have

A.

Walter

Parke, Philadelphia.

to the

phrase which I believe

case

President:

K.

Delmont

be sold by the people.

can

thing, and governmental operation
is

Away What?"

charge," edi¬
bank
publication.

the

belongs

Ralph E. Phillips

John C. Hagan, Jr.

the

Ownership

serious

a

to

But what belongs to

people.

"It amounts to

and

proper

in

enterprise

synthetic

Government's

the

been "The Easy Dollar Broker," a

"Stock

Holden K. Farrar

"Give-Away"

people's prog¬
ress, prosperity and freedom if the
government had refused to part

to

Craft

removing "big signed the bill permitting the sale

to

role of competitor against its own

you

have elimi¬

."

.

description in this

idea

H.

Robert

editorial

government" from the anomalous

an

broker

stating:
an

50 Broad Street,

competitor to its own citizens in fields of business has been
spearheaded by the cry of "give away."

ness

However, it is regrettable

paragraph in this article
phrased unfortunately, and

due

.

article, the November issue of "The Guaranty
Survey," publication of the Guaranty Trust Company of New
York, says opposition to removing "big government" as a

Phony

a

one

was

of

article

the

distributing

Rutenberg, although I admit
this article should be made avail¬

Mr.

Attacks Political Shibboleth of

the

reputable

any

financial

article.

.

Dealer," which, I be-

Investment

'''

\

sure

the

from

,

interest

written

Telegram."
of

.

about The Stock Market and Your

In

Broker,"

am

the
the

able to the public in general.
market letters against buying
JOSEPH MAYR
of stock, and I also spent
considerable money to publish a Joseph Mayr & Co.,

John W. Rutenberg, in
change Magazine," as well as the
excerpt thereof in the V World
I

the

that type

Sir:

Stock

at

dealers.

have

article

election

over-the-counter

or

ter to Mr. Funston

I

for

my

The full text of Mr. Mayr's let¬

Dear

been presented

Unfortunately,

Exchange, Joseph Mayr, of Joseph
Mayr & Co., securities dealers,
New York City, protested a phrase
in an article published in "The
Exchange Magazine," a publica¬
change,

following slate has

Forty-third Annual Convention of the Investment Bankers Asso¬
ciation of America at Hollywood, Fla., Nov. 28-Dec. 3, 1954:

refrain, by implication or

it

tioned

tion

The

other¬

as

"over-the-counter" broker.

public, of the many phony stock
offerings which are being made

Keith

to

well

as

otherwise, from questioning
honesty
and
integrity
of

Funston,
President of the New York Stock

letter

such,

as

com¬

wise, that the Stock Exchange rec¬
ognize the true function of the
"over-the-counter"
dealer,
and

Joseph Mayr, of Joseph Mayr & Co., New York City, writes
Keith Funston, President of the New York Stock Exchange,
taking exception to implication in an article in ' The Exchange
Magazine" that only by dealing with members of the Stock
Exchange can the investor be protected against the risk of
buying "phony stocks."
a

financial

entire

Thursday, November 4, 1954

...

Investment Bankers Association

I believe it would be in the inter¬

In

Chronicle

The Commercial and Financial

(1844)

executive

vestment

development

Invest-in-

Mr. Schmidt has helped in planning the

of the IBA, the Institute of In¬
Banking, sponsored jointly with the Wharton School of

Finance and

program

Commerce, University of Pennsylvania.
Continued

He has fre-

on

page

24

Number 5374

180

Volume

.. .

The Commercial and Financial Chronicle

(1847)

Trust

News About Banks
CONSOLIDATIONS
NEW BRANCHES
NEW OFFICERS, ETC;

National City Bank of New

announced on Oct. 28, the

branch offices.
presided

sen

additional shares of its new
stock which was offered to share¬
holders at $52.50 per share.
Of
the
2,500,000 shares, over 98%
were subscribed for through the
exercise of the rights issued to
shareholders. The remaining
shares, in accordance with
the
agreement with the underwriting
group headed by the First Boston
Corporation, were taken up by
that
group.
The announcement
made public by the bank adds
that from the
proceeds of the
sale of the stock of $131,250,000,
$50,000,000 was added to the capi¬
tal of the bank, as of Oct. 28, and

John

000

surplus. The
Board authorized the transfer to
to

surplus from undivided profits
and unallocated reserves of a suf¬
ficient further amount to increase

surplus to $300,000,000. With
these changes the capital of the
bank has
been
increased from

the

$150,000,000 to $200,000,000 and
the surplus from $200,000,000 to
$300,000,000. It was added that
on
Oct.
31
total capital funds
would be over $550,000,000. This
either the

include

not

does

total

_

S.

$32,000,000, or the unallocated re¬
serves
of
the
bank
of slightly
than

$50,000,000.

Previous references to the plans

Jr.,

2, page 882 and
Sept. 23, page 1180.

Company
the

Inc. \approved

Oct.

on

in the
bank's capital 'stock from 250,000
shares of $100 par value each to
proposed

300,000
value.
at

shares

increase

the

of

same

par

Following the action, taken

special meeting of stockhold¬

a

the company's directors voted

ers,

to distribute the additional 50,000

shares
8

stockholders

to

Oct.
the

stock dividend

as a

five

of

of

will

share

one

on

Nov.

record

Distribution

29.

basis

on

be

for

on

each

held.

presently

the

for

include:

J.

of

the

Cleveland,
Chairman of the Board; William
L. Kleitz, President; Thomas P.
Jerman, Vice-President; and di¬
rectors George G. Allen, W. Palen
Conway, Charles P. Cooper, John
W.
Davis,
Charles E.
Dunlap,
Cornelius F. Kelley, William C.
Potter, George E. Roosevelt, and
Eugene W. Stetson.
The

of

the

the

Long

dent

letter

announcing the Oct. 29
meeting that the board of direc¬
tors plans, at its next dividend
meeting, to declare a quarterly
$2.50

at

share

per

number

stock

the

of

current

rate

of

the

on

increased

A

previous

shares.

dividend, at the rate of

one

share for each four held, was paid
by the company in 1951, when its

capital stock
time
of

to

the

$10
the

share

stock

tained

on

of shares.

posals

to

Reference

was

prior
main¬

increased

number

meeting,

also

approved
the

amend

additional

Plan and

rate

effect

At the Oct. 29

stockholders
ficers'

in

dividend

the

At that

dividend

annual

per

from

increased

was

200,000 to 250,000 shares.

banks'

pro¬

of¬

compensation

employee pension plan.
to

the

proposed action

slated for Oct. 29 appeared in our
Oct. 7
issue, age 1392.
*

Guaranty
Club,

*

honorary

Century
organization of

staff members of
Guaranty Trust

Company

of New York who have

served

the bank for 25 years or
more,
held
its
annual
reunion
dinner on Nov. 1 at the Waldorf-

Astoria, with
club's

950

attending.
roster

present

The

includes

1)444 active and retired members
of

the

in

The

the J.

bank

new

is

abroad.

in

York

and

chapters

are

New

Overseas

about

mile

one

Avenue.

This

east

of

office




Nov*

on

Swarthmore

1923.

Office

Citizens

the

of

He

is

White

in

bank's

*

A

cur¬

Plains,

largest

assisted

by Alfred Jaklitsch, and

While

department, including clos¬
ing rooms, now located at 100
Seventh Street, Garden City, will

A

*

has

the

by

ap¬

Comptroller of the
located at Park

Boulevard and Clark

Park,

sapequa

N.

Y., it

be

tional

within

Bank

three

of

the

years.

a

meeting to be held on
16, for the purpose of ob¬
taining approval to an increase in
capital to $975,000. The proposed
new offering is to be underwritten

*

vania

meeting

Trust

1

shares,

Oct.

ment

of

6150

Woodland

the

Boards of Directors of both insti¬
tutions

acted

charter
The

tional Bank
one

the

of

tutions

&

of

the

Trust

enable

Na¬

Westchester

consolidated

National
pany

As

insti¬

Bank

of

County,

Bank

the

of Westchester.

ment

of

will

the

to

be

for

submitted
of

ratification.

both

the

the

supervisory au¬
thorities, it is hoped to have the
approval

of

consolidation effective by Dec. 31.
in

the

tional

completion of this step
planned growth of the Na¬
Bank

National

stock)

of

Westchester,

its

The Tarrytown National &

one

also

new

shares will be

share

owned.

be

the

to

the

on

for

each

Stockholders

offered

the

of

100,000
one

Fulton

Kurtz,

voluntary

following
Bois

Du

new

bringing the total of

the bank's capital funds, including

approximately $63,700,000. Record dates, price of the
offering and definite terms gov¬
to

erning

the

subscription

100,000

new

shares will be deter¬

for

the

Philadelphia

new

will

office in West

be

National

the

and

in a capital of $27,000,000*
surplus of $33,000,000,' Mr.

a

Florence

explained.
capital and

'This

surplus to¬
taling $60,000,000, with undivided
profits in excess of $3,000,000, and
for contingencies in ex¬
$5,000,000, will make the
total capital structure of Republic
in excess of $68,000,000.
'With
this
capital structure,

reserves

of

cess

"

bank will

our

rank

:I:

Bank,

Union

National

Mich,

The

Bank

Ilackley
Muske¬

of

effective
Nov. 1, the appointment of Ed¬
mund F. Norden as directing head

gon,

the

announce,

bank's

Audit

Division.

-

Audit

and

As head

the

of

division he will carry the title of

Comptroller. Mr. Norden has been
in

charge of the Audit and Audit

Control

activities

for the past two

of

the

bank

With the

years.

bilities

has

Mr.

named

Comptroller.

He

been

has

the bank since 1927

Norden

with

and has been

employed in every department of
the bank.

ican

He attended the Amer¬

Association

Bankers

ate School

Gradu¬

of

Banking at Rutgers
University in 1948 and 1950.
He
Associa¬

tion of Bank Auditors and Comp¬

trollers, the National Association
of Cost
of

Accountants, is

member

a

the

Membership Committee of
Muskegon Chamber of Com¬

the

and

merce

of

the

C

Greater

o

the Budget Committee
m m u n i t y
Chest of

Muskegon and Muskegon

stitutions of the nation.'"

that

Robert

elected
Bank

Through
$150,000

a

the

tal,

has enlarged

Ky.,

its capi¬

of Oct. 7, from $2,100,000 to

as

dent

California, N. A. of Sam

of

The

#

>:<

capital of $600,000, increased
from $500,000 is reported by the
National

Merchants

Texas,

Arthur,
the

addition

ing

occurred

Bank

of

Port

Oct.

effective

4,
hav¬

to

the capital
through a $100,000

dividend.
si:

At

si:

of

California*

Vice-President and

1948.

Following

his

graduation

the

Bishop Trust Company, Ltd,

of Honolulu and served

institution,
tary,
the

1936

Union Bank

Los

Angeles

President,
til

with;
Assistant • Secre¬
when he joined

as

until

1944.

Trust

&

Co., of

Assistant

as

Vice-

position he held

a

un¬

In

1945, he accepted the
position of Executive Vice-Presi¬
dent

Director

and

dena-First

of

National

during the

same

President

and

the

Pasa¬

Bank

and

period served
Director

asr

the

of

Bank of Beaumont. Mr. Bolman is

presently
of the

serving

Board

as

member

a

of Directors of The

Family Savings Bureau, Oakland
the

and

Wholesale Creditors

sociation.

At

As¬

the

present time
also he is serving as President cff
the Independent Bankers
Ass**---'
ciation of Northern California, he
is past President of the Independ¬
ent Bankers Association of South¬

California

ern

and

also

past

Chairman of the Public Relations

Committee

of

the

California

Bankers Association.

California

Anglo

Bank

of

chased

a

:!;

v

San

National

Francisco, has

site for

pur¬

banking office

a

in

Areata, Calif, and will erect a
building as soon as practicable/

according to

in

an announcement

bjr
President.
The.
office will be Anglo's second
E.

Hoover,

Humboldt

County.

nouncement

follows

establishement of
in Eureka

The
the

an¬

rece©^

Anglo office

an

Oct.

on

1, through the
merging of The Bank of Eureka
in to Anglo Bank. Anglo Bank at
present has 40 offices, that num¬
ber

*

special

having been reached with the
opening on Oct. 18 of a fifth of¬

meetings
of
the
stockholders of the Republic Na¬

fice in the Sacramento

tional Bank and the National City

Areata

Bank
was

of Dallas, Texas, approval
given to plans to consolidate

additional
nounced

the

institutions

pending.

and

Bank of

from Stanford University with the
Class of 1927, Mr. Bolman joined

new

A

stock

Bank

as

Commerce, Oakland, Calif., since

Paul

$2,250,000.
*

The

Mr. Bolman, who prior
appointment as Vice-Presi¬

to his

The

Bank & Trust Company of Louis¬

ville,

been

of

Francisco.

*

stock dividend of
Liberty National

2(X

has

Vice-President

of

Oct

on

Bolman

H.

County.
:!:

$

announced

was

♦
)!:

of the

one

Director of the Oakland

si:

of

as

largest and strongest financial in¬

had served

Directors

increase

to

the

capital structure of the Re¬
public National to more than $68,000,000. To quote from a local

of Oct. 26:
"Republic stockholders also ap¬
proved a stock dividend to pre¬

paper

office

Bank

its

of

in

O

recently

an¬

construction is

Palo

Alto,

Walnut

California

San

an

new

and

new

Pittsburg.

Anglo

16

The

four

The other three will be

located

Oct.

area.

of

one

which

on

Creek and
The

is

offices

National

Francisco

held

on

open-house preview at

Midtown

Streets

Office

at

21st

in

Republic stockholders equiv¬
alent
to
approximately $9,000,000 at the present market value

Sacramento, it
was announced by Paul E.
Hoover,
President.
The open-house was
held

from

new

office,

sent

the
"The

cial
of

stock.

action

bank's

taken

was

at

spe¬

meetings of the stockholders
institutions.

both

consolidation

"Actual

date

is

its

and

subject

to
Republic
Bank, Bldg. and final
of the Comptroller of

National

approval

of the

only

new

the Currency.
"The

stockholders' action
Carl Hoblitzelle,

Board,

tional

of

announcement

Fred

of

the

Bank,

and

Chairman

of the

the

made by

was

Chairman of the

d

a n

President

mined later by the board.

proposed

a

Deposit

completion

The

Brook-

from

transfers

and

:•)

of

Bank

$

The

Chair¬

completed before the end

reserves,

result

It

of Du Bois, Pa.

will be

*

structure

of the
capi¬

our

undivided profits accounts to cap¬
ital
and
surplus accounts will

$

capital (common
was placed in
liquidation on Oct. 9,
its absorbtion by the

effective

of this year,

tal

increases in

of

right to

other

basis

share

of $100,000

ing will add upwards of $4,000,000
to the bank's capital funds and

of

final

increase,

and William L. Day, Presi¬
dent, stated that the new financ¬

institutions

After

year
year.

man,

the

to

of

William

Currency for his formal approval
will

to

share for each 14 shares held.

been

Comptroller

second
year

stockholders'

stock

new

shares

National

has

the

calendar

the

the

subscribe

The agree¬

consolidation

of

of

shares

34

and

in

resulted

to

the

to

result

a

ratio

which consoli¬

stockholders

at

(West

paid to stockholders this month as
a
special stock dividend in the

Com¬

Trust Company,

and

office

change in the fiscal

a

40,000 of the

First

The

Trust

and

Westchester

submitted

1,500,000
establish¬

Avenue

January

approval

of Tuckahoe, N. Y., and the

former

to

the

branch

new

conform

to

Company is

financial

in

day

having received
its charter
in
1882, and has served its commu¬
nity without interruption for 72
years.
This step follows the re¬
cent

capital

Monday in February each

latter

Tarrytown

oldest

in

of

stockholders from the third Mon¬

Trust

and the National Bank of
Westchester, White Plains, N. Y.,
the

#

Philadelphia),
and
approved
a
change in the annual meeting of

and

pany

under

1,360,000

authorized
a

bank's

Com¬

Bank

institution.

from

in¬

to

the

shares

value

par

of

favorably upon the
of The Tarrytown

consolidation
National

Pennsyl¬

voted

numbed

stock

29,

The

accomplishment

Bryn Mawr National.

our

*

Nov.

on

the

crease

Westchester,

on

in

Company for Banking and

National

that

oc¬

Trusts of Philadelphia at a special

Ralph T. Tyner, Jr., President of
announced

and

1940

28, according to
"Evening News"

of

$10

of

City

since

indicated

As

1918.

Company of Tarrytown, N. Y., and
Bank

Trust

director of the Hudson Trust Co.

*

*

and

Sept.

on

Stockholders

a

Bank

of

for each

stock

Trust

is active in the National

Meeks,

previous item Mr. Meeks was 73
years of age. The further portion
of the item as given on page 1717
remains unchanged.

by Blair & Co. Incorporated.

National

1717)

Hudson

Union
J.,

Newark.

since

holders

*

in

which also states that he had been

Nov.

In

(page

Clarence G.

N.

curred

to

stock¬

a

28

the

of

Company

opened by the Fort Neck Na¬

The Directors have called

Mawr

and

are

Iloboken,

Oct.

on

Oct.

The death of

Street, MasCounty)

announced

was

of

President

(Nassau

It will be the third branch

26.

Company will acquire all of the
outstanding capital stock of the
Bryn Mawr National through an
exchange of 11 shares of Bryn

stock.

made

was

an¬
the

of

terms

under

broadening of the scope of the
department
the
Board
in
rec¬
.//li ognition of the added responsi¬

$50,000
new

it should have read:

be

to

of

$50,000 of

Meeks,
repeating the first para¬
graph of the item, inasmuch as a
"slip-up" occurred
therein; we
give herewith the paragraph as

we

proved for the Fort Neck National

Currency

Y.

of the death of Clarence G.

location.

been

N.

an

agreement the Bryn Mawr Trust

Control

Beacon,

reference

issue

our

:|:

branch

new

of

dividend

stock

a

gage

new

Bank

the sale of

operations of the mort¬

be transferred to the

*

Enlarged from $100,000 the addi¬
tional $100,000 was supplied by

will offer the major services now
available at the bank's main of¬
All

that

nounced

of

capital of $200,000 is reported
Oct. 6 by the Matteawan

National

Avenue will be managed by Guy
M.
Royce,
Assistant Secretary,

*

West¬

of

as

Stewart

on

scope.

has

officer since

an

Clinton

Brussels,

bank

of

rently in charge of County Trust's

McHugh Building at
839 Stewart Avenue, Garden City,

operation will be county-wide in

the

of service

years

graduate

S.

Maintained in London, Paris, and
where

A

com¬

Bryn

Company,

Bryn Mawr Trust

Ray, President of the Nst#^.
City Bank,

'The

"

College, Mr. Carpenter started as
a
bank messenger and has been

located

Upon
staff

Com¬

in White Plains, N. Y.,

ident.

Bank

Quarter

Trust

of

reached

have

ville, Pa., with

County

Bryn

Mawr Trust Company will
be the continuing institution. DeHaven Develin, President of the

The

•!■

one

dation

*

financial

chester County offices,

town

bank, told stockholders in the

•!•

The

pleted 35

The
that

says

and

by Frederick Hainfeld, Jr., Pres¬

the

further

the
ex¬

Carpenter, Jr., Vice-Presi¬

of

pany

announcement

an

Hickey and Mr.

businessmen

Isaac

10,

to

lo¬

be

Avenue,

for the County through
decade, and a challenge

•I*

Y.,

according

Mr.

the

Bryn

with this growth.

pace

Trust

will open for business on Nov.

will

Mamaroneck

31

next

1.

Company of Garden City, N.

National

Pa.,

Mawr,

institutions of the County to keep

-

Island

the

believe that the growth
is now taking place in

the

to

Avenue East

Stewart

new

Office

sjs

of

Westchester

of
at

pansion

Luther

%

office

head

Westchester County is merely
forerunner of a tremendous

club

Henry C. Alexander, President of

dividend

Mawr

agreement on a proposal for
merger
of the two banks. The

Tyner
whifch

207

during

joint statement Edward W.
Hickey, President of the Tarry-

announcement

Bryn

Bank

cated

C.

inducted

*

shares

Edward

members

are

Bank

*:•

Stockholders of J. P. Morgan &
29

the

National

White Plains.

capital appeared in

v

of

Directors

"

authorized

Mawr

Bank

and

Senior officials of the bank

who

issues of Sept.

our

i;!

and

The

by

spoke

members

1953.

dinner

President

as

*

to increase the

the

at

Schaffer.

Kastner,
new

capital funds of City Bank Farm- ;
fice.
ers Trust Company, which exceed"

more

ijt

five offices in the
City of New Rochelle, two in the

Andrew F. Peter¬

succeeded

was

remainder

tional

opening is now scheduled to
take place early next year.

City of White Plains, two in
Tarrytown, and offices in Tucka¬
hoe, Eastchester, and Valhalla.

completion of the sale of 2,500,-

the

witt T.

the

Company

tion to operate

Bankers

and

CAPITALIZATIONS

York

25th in the metropolitan area, and

Trust

consolidated institu¬

calls for the

REVISED

The

Company has already filed

application for another branch in
Tarrytown, which application, if
granted, becomes a part of the
consolidated institution. The plan

2S

F.

Florence,

Republic

R. R.

Na¬

Gilbert,

Board, and De-

3:00

to

8:00

Anglo's

p.m.

fifth

The

in

the

Sacramento area, opened for busi¬
ness on
Oct. 18.
R. C. Coppock,
Jr. is Vice-President and Manager
of

the

new office.
He previously
Manager of Anglo's Palo Alto
office. Assisting Mr. Coppock will
be D. J. Callaghan and George

was

Wynn, Assistant Vice-Presidents,
and Frank W. Thommen, Assist¬
ant

Manager.

office
and

is

central

Sacramento
cated

at

new

Midtown

in

northern

California.

Other

The

Anglo's

area

Seventh

40

offices
and

Continued

J

on

are

lo¬

Streets,
page

24

Financial Chronicle

The Commercial and

24

(1848)

he

Continued

from

23

page

and

Oct. 16 by
Governors of the

of

Board

and

Sacramento.

discussion leader.

section

The First National Bank of San

pany

Oct.

of

as

12, from $1,250,000

is

He

-

National
National

a

Forty-Third Annual Convention

absorbed banks were located at

201 G Street, and a single branch
v,has been established at that loca-

to

,

^

mi

lncrease» ^ 1S stated,

^

1

will

bring the number of shares
outstanding to 15,000 and their

value to

$1,500,000, resulting in a
of
the
capital
stock

doubling
v

within

the

the

mg

has

five

last

gchmidt,

Both'

retained

also said

$60

over

A

their meeting °onOell'4

elected

Rodgers L. Wyckoff, former Vice-

^President of the Liberty National
Trust

*

Company,

Officer

of

Union

Bank, acR. Meyer, Chair-

cording to Ben
of

man

^

Louis-

Kyv as Vice-President and

'

thp

Roard

ttJX?

D

with

President

and

the

Liberty

Na-

m3a whPann^pinw^°nS%r^h
1933 when he
named Credit
was

Manager,

elected

was

Vice-President

" />•>

He was Assist-

N. Y.

known

frnrrMoTfi trflcHlTtfe

spent'

the

in

three" years

native

ahan

a

with

the

pany

from

tionai

Illinois,

0f

California

Shore
where

Chicago,

Bank,

Vice-President

Assistant

Assistant

that

where

World War II

be left open for

be

to'

changed

recreation, as will the afternoons throughout the
week, with the possible exception of certain committee meetings.

Ckoji

ueno

from

as

Ueno
Yamashitacho Branch, No. 176, Yamashitach0> Naka_ku, Yokohama; Vokkaichi
Branch, no. 1653, oaza-hamada Azasuwa,

Yokkaichi;

Ebisubashi

Branch,

Hollywood is situated

unusually satisfactory site for an
of the Association's most
popular meeting places. Excellent facilities for golf, tennis, swim¬
ming, and fishing are available.

Mr,

Wyckoff started
banking career in 1927 with

'gSgfggS? Bral'ct No*.
machi, Kokura.

A registration

nate

.

forwarded

the

Purchasing Agents Business Survey Committee finds produc¬

New York

tion increased with stronger

City, and in 1929, rep¬

Louisville

went

company,

to

ing

and commercial

Business Survey Committee of the

loans, also taking

active part in the bank's busi^

an

A composite opinion of purchasagents

comorise

who

National Association

of Purchas-

development program,
in- ung A g e n t s,
eluding trusts, consumer ' credit whose Chairand
mortgages.
During January man is Robert
of 1954, Mr. Wyckoff served on
C. Swanton,

Regional Appraisal Committee
(Chicago) on loans to be placed

Director

in the

Bank

serve

as

manent

the

Pool.

He

continued

member of the per-

a

Advisory

Committee

Reconstruction

Finance

of

Corr

Repeating
A r m s, N e w
Haven, Conn.,
reports

Federal

-Xouisville
the

Public

tee of the

Director

of

that

of

Robert

well

as

'

Chairman
within

Commit-

member and Past-Na-

a

Associates

various

as

committees

served

instructor

and

the

at

Kentucky School of Banking, University of Kentuckv; director of
Louisville

Credit

Men's

*

of
or-

••!«

Roy A. Britt, President of CitiNational

zens

Bank

of

Los

Trust

that

announced

in

Savings
Calif, has

Citizens

Bank will open

fice

&

Angeles,

the

a

National

branch of-

new

that

.viewing

Senulveda-National

tion,
for

believe

recovery

The

new

fically

open

in November and will

be in
0

cated

in

business

the

of-

.

district.

formerly

zens'

Broadway

branch,

Boulevard,

center

kett,

new

will

,

0

Sepulveda

will

of

C.

Merle

Manager

be
*

of

James

Cashier

in




be made

room

in

hotel.

t

than J*".TU"L L'°mparea to tne a-to-l heavy liquidation of finished goods
u^.u
L.10 ln tbe September survey, and reduction of in-process invenPrices are stronger and being well tories have had the effect of parmaintained. Sellers are pushing tially
freezing
unworked
ma-

aPPafently, testing mar- terials, there has been enough
a„rf'ipIpW outS
a?3m Production demand, coupled with
satl*fac.t0I7 stock reduction, materially to inSnVLnt^ Jp !Lh
f crease turnover rates> a condition
?? J iep0lt^d up by much to be desired. Consensus of
% °v! t.he S""V7 i^^lttPe Purchasing Agents is that low inmembers against
15%
down,
'

There

is

full-time

more

ment, but little overtime.

employ-

Buying

onr^n^A9S days and. under,

with 30-to-60 days predominating.
statistics

optimistic

are

par-

some

time

be

maintained

unless

there

be

presented
Slips for Seacrest Manor,

•«

is

for

nrtnh^r

,,

'
.

in

industry

ronnt

5r'J
^pplinp?

*

up
♦"

ba^k f0 Jane i9'53^o «nd anothf?

Street

of

the

Reed

Bank

in

the

present

?^mg 0
v^Ip ref"

+n

Wp

t

X"ti" TJZSh"™

tttl^Some'of0bothies

steady, gradual
reversal from a recessionary period.
Purchasing executives ex-

^i^ges® l^a'nd togl0 the?e
y
g '

sonal

pickup and

a

.j-,,

.

..

^,11

}?
time.

npw

New

as

pect this trend to continue for the

models

of

balance of the year.

rehiring.

^
car

account

and

for

as

Confir¬
possible, but

may

appliance

much

be

some

'

/

Beach

Hotel,

the

Hollywood
the Town

housing purposes.

to the floor clerk

the proper floor

on

the Surf Hotel,; and

the

Town House

The hotel's representatives will also furnish passengers

transported immediately from the station by truck and
promptly to the proper hotel rooms. '

with

distributed

YORK

SPECIAL

TRAIN

The route of the train in both directions will be

Railroad

between

New

York

Pennsylvania

Washington, R. F. & P. RRAtlantic Coast Line RR. be¬
Jacksonville, and Florida East Coast Ry.
between Jacksonville and Hollywood. It is
anticipated that there
—ecu o^uuvmc aim nonywooa,
will be two sections on the going trio and one on the return, with
schedules as follows
and

between Washington and
Richmond,
tween Richmond and

g

P

~

.

Going
Lv. New York
Lv.
Lv.

North

Lv. 30th

11:15 a.m.
11:30 a.m.
12:50 p.m.

12:44 p.m.

Phila.

a.m.
a.m.

12:35 p.m.

Phila.

St.

11:05
11:20

Saturday, Nov. 27

Newark

12:59 p.m.

Lv.

Wilmington

Lv.

Baltimore

2:18 p.m.

2:34 p.m.

Lv.

Washington

3:20 p.m.

3:35 p.m.

1:32 p.m.

Lv. Richmond
Ar.

5:50 p.m.

Hollywood

Sunday, Nov. 28

11:10

a.m.

6:05 p.m.

11:35 a.m.

Returning

of

Friday,
Dec. 3
Saturday, Dec. 4

3:00 p.m.

Ar.

is

Aa-

ing

spectacular

promptly

baggage tags filled out with their names and hotel room numbers,
One of these tags should be attached to each piece of hand bag¬
gage. Then, upon arrival in Hollywood all such baggage will be

Lv. Hollywood

mo/

as

sus-

a

jead time.
Employment

must be

should be presented at the front desks of those hotels. Room keys
wil1 be turned over as slips are presented.

tained lengthening in procurement

.

convention

processing them, there

.

Hollywood

NEW

l°T rep0rting addi:
i
Pu ?
tl0ns to stocks to cover mcreased
fnf?r !he morJtk fbKy
Production schedules. While the
4-to-l, compared to the 3-to-l heavv liauidation of finished goods

will

the

Convention Transportation

^ ^othoutbalLnce th^renoned
1

f13!

for

Slips for the Hollywood Beach Apartments should
at the front desk of the Hollywood Beach Hotel.

Inventories

1

be made

should be presented

of that

Robert C. Swanton

tb® Pan- H is
Inventories of industrial pur^"flrm.ed by the October reports, chased material continue to drop,
?firJer Jn^eases arKe recorded by though the majority have reached
? 0^,tbe members reporting, their minimum safe operating

^nn 1

rooms

this

Citi-

-r.j

Promotion

to

Due-

»

„

Assistant

during

contrac¬

there is little

*
p ?.

office.
*

made

ticularly when compared with a
year ago. However, there is noth-

of

54th

lo-

active

an

Manager
and

Hotel

price

was„.not a ,flasb

temporary quarters at 3016

South

were

industrial

the

to

highly competitive market.

in

September

ventories

area.

branch

repetitive
Most

Buyers,
limited price

very

the- 1953-1954

reported

Agents

the

reductions that

bv Purchasing

Associa-

tion;
tion; and an artivp mpmhpr
and an active member
.various Louisville clubs and
ganizations.
"
*

ap

and

numerous.

of reservations will

Morris

serving

as

organization;

lecturer

as

Relations

Kentucky Bankers As-

sociation;
tionai

Mr.

Chapter, American InBanking) Past-Chairman

-■stitute of
of

District.

Past-President of the

a

busy

are
are

Washington office of the Association.

convention special trains and will furnish passengers with
slips indicating their hotel room numbers. These slips will take
the place of hotel registration.
Slips for the Hollywood Beach

very

advances have been small.

the
normal,
seasonal,
i ndustrial pick-

Reserve

^Vyckoff is

items

calls

attending the

Checks

person.

the

With the general improve¬
business, it is quite ap¬
that producers of fabri-

rooms

his family

of

per

Representatives of the Hollywood Beach Hotel will travel on

a

actively
testing the markets to find a buying level.
Purchasing reception

Purchases,

poration pool loans in the Eighth

just

month.

in

are

$40

House will also be available for convention

^

this

cated

of

the

addition

In

parent

ment

be

Beach Apartments, Seacrest Manor, the Surf Hotel, and

purchased materials show

bility.

to

delay in this connection.

Industrial commodity prices for

strength

will

due to the time required for

Commodity Prices

little ^more

other member

or

fee

through the Washington office of the Association.

mation

The over-all picture is one of sta¬

Winchester

to

Yr'

the

ness

the

made

Holds, however, there is
nothing spectacular in present upward movement, which still
has only the characteristics of a seasonal pick-up and reversal
from a recessionary period.

a

This

reservations for hotel

All

prices.

special assignment
working with the Louisville Title
Company & Security Bank.
During his affiliation with Lib¬
erty National Bank in Louisville,
Mr. Wyckoff specialized in credit
on

fee will be charged for each delegate and alter¬

wife

his

covering
registration fees should be made payable to the Association and

Report Industrial Pick-Up in October

Chemical Bank & Trust Company,

resenting that

and

convention.

his

an

I.B.A. convention, and has long been one

47,

no.

the east coast of Florida, 17 miles

on

It furnishes

north of Miami.

tion in 1934 and Vice-President in
1943.

will be the installation of new officers
Thursday morning session instead, of on

the

as in the past.
Friday morning will then be devoted to a
meeting of the incoming Board of Governors and other organiza¬
tional meetings of the incoming administration. For others it will

—

—

at

governors

Friday

organiza¬

of

theNconvention and will present their annual
7 -v; ■
" -::r; '

An innovation this year

and

the above date), No. 1,
Kitadaimoncho, Daito-ku, Tokyo;

He

year's service

planned6 t^ta^'ovCT'The

Branch,

until

remained

he

1943"' Following
jn the Navy during

reports at that time."

$2$ wfu

Nahe

was ASSlSiani vice riewaeiii. ric
Cago

hold meetings during

x> las4oh™buysahil?Xa"£!l' Zvo5' ^^Branch

went
Com-

Trust

the " Lake

and most of the national committees of the Association will

nors,

with

accordance

5>ra"^es' ef£ectlve as from Aug"

1949. Mr. McClan-

tionai Bank in

t

present at the convention will make a special point of attending
them. In addition, there will be meetings of the Board of Gover¬

Mitsui

^ °"the*ft losing,.

StJ™

fully
It will, however

follow the pattern of recent years. The first business session will
be an open meeting of the Municipal Securities Committee on
Sunday afternoon. There will then be a convention session each
morning from Monday through Thursday. Prominent speakers

...

Tokyo, has made

in

that,

glude<£

*

)

•••••

.

completed and cannot be announced at this time.

.

the arrangement recently con-

Army

Hollywood Beach Hotel,
28, and ending on

wilpaddress these sessions and it is hoped very much that all those
of The

office

Bank Limited at

ant Trust officer of the First Na-

at the

The details of the convention program have not yet been

;.

head

The

held

be

will

America

of

Friday, Dec. 3.

Seattle, Washington,

?/? iJ rf; Started in trust work in 1936 with
Mr. Wyckoff, the Livestock National Bank, Chi-

1

,rb6 Union Bank.

affiliated

Glens FalIs

TTtira1

*

*

The Directors of Union

Loan

sjnce juiy i. Mr. Clarke
Assistant Trust Officer
of the Grace National Bank, of
New York, entered the banking
company

formeriy

Resources it is

amount to

now

*

'Aank

capital stock of $100,000 was
placed in voluntary liquidation
Oct. 2, having been absorbed by
the Seattle-First National Bank of

period surplus also. field in 1933 with the First Naincreased
100% from tional Bank in his home town,

earnings.

ciation

Hollywood, Fla., beginning on Sunday, Nov.

mon

Dur-

years.

The 1954 Annual Convention of the Investment Bankers Asso¬

of Renton, Washington, with com-

President,
announced,
hiJve been with the trust

same

been

y

■

November 28-December 3

$1,500,000, the increase having 7, Ui *'
%
effected by the issuance of
Robert s. Clarke and W. S. Mention.
>
V
2,500 shares of new stock offered
cianahan were elected Trust Of•
*
"
to
the
existing stockholders at.
f.
of California Trust ComThe office of the Comptroller of
$100 per share on the basis of one
f Los Angeies at a meeting
the Currency announced on Oct.
new share
for every five shares
£f
Board Qct
14> Frank H
u that the First National Bank
been

°

.

F, First Gas Regiment, A. E. F., and saw action at St. Mihiel
Argonne.

Both

Antioch;

of
c

Bank
Bank

'

-

Investment Bankers Association of America

bavmgs
Savings at

Marin

Anselmo,

gan
t

r

mu-

Antioch, Calif., an insured non-member, of the F s >

department's
division

k

Antwch B

the

absorbed

underwriting

the

the

of

p

Jose, Calif., has increased its capi-

in

is

Reed

Off^S for 1955

Of

During World 'War I, Mr. Schmidt was First Sergeant, Com¬

y^WeBsJago

officer,

relations

personnel

Mr.

*;

quently appeared on the Institute program, both as a lecturer and

states

System

Reserve

Federal

and

tal

Thursday, November 4, 1954

An announcement on

the

San

(Head

incise.)

in

Boulevard

Stockton

5693

West

.

.

National Ban*

ISA ReCCiVCS
*

Office,
Bond Investment De-

America's

Avenue,

Fourth

and

Street

from page 22

staff of the Lake Continued
> V

the

joined

Shore

'News About Banks and Bankets
35th

.

I

the

Richmond

Ar.

Washington

Ar.

Baltimore

11:35 a.m.

Ar.

Wilmington

12:37 p.m.

Ar.

30th St. Phila.

Ar.

North

Ar.

Newark

Ar.

New

Phila.

8:00 a.m.
10:30 a.m.

1:09 p.m.

1:19 p.m.
2:34 p.m.

York

2:49 p.m.
If there should be a
second section on the return trip, its sched¬
ule will be one-half hour later
than the first section throughout.

PULLMAN RESERVATIONS—Pullman
reservations for the
going trip should be made through the New York Transportation

:

Number 5374

Volume 180

..

2 Persons

2 Persons

2 Persons

$44.83

$35.04

$30.31

Cincinnati

51.26

37.90

29.65

25.63

Chattanooga

40.15

29.98

23.21

20.08

Atlanta

34.65

25.58

20.08

17.33

to

assign the type of space
given type has been ex¬

requested, but when the supply of any
hausted, it will, of course, be necessary

assign

to

another

type

instead.

Drawing Rm.

Compartment

Bedroom

2 Persons

1 Person

2 Persons

York

New

$57.64

$42.74

__

57.64

42.74

28.82

....

55.33

40.65

27.67

______

Newark,—.
Philadelphia
Wilmington
Baltimore
Richmond

"

$28.82

40.04

7:?

37.24

24.97

32.95

22.28

49.94

_____

44.55

2-3.84

scot

16.39

Certificates covering Pullman space will be issued

Compartment

*

in lieu of

,regulation Pullman tickets.- Certificates will be mailed if applica¬
tions are received promptly.

Otherwise they may be picked up at
the office of Walter H. Weed, Jr., prior to 5:00 p.m. on Friday,
Nov. 26. Refunds cannot, be made on cancellations which are not

reservations for the

promptly

return

trip should be

made at

possible after arrival at Hollywood.

as

RAILROAD TICKETS—Railroad

tickets should be purchased
Those in charge of Pullman reservations
supply railroad tickets. Round-trip railroad

from local ticket agents.

will

be

not

fares

able

to

(including federal tax) to Hollywood from points served by

the special train are as follows:

_$108.96

Newark

v

Philadelphia

pers.)

reservations

the Hollywood
as

promptly

Bedroom (1 person)___

is

due

No

SPECIAL

trains''
CITY

THE

Friday,

Nov. 26

11:10

Ar.

St.

a.m.

Washington

Ar.

Hollywood

Sunday,
for

the

going

trip

Bedroom

9:20 a.m.

Chicago

Lv.

should

St.

Ar.

Dec. 3

Saturday, Dec. 4

Dec. 5

Chicago

The

route

the

of

trains

above

is Florida East

attached to the train until

follows:

-

Hollywood

Ar.

Washington

Lv.

"Washington

Ar.

Pittsburgh

Friday,

Pittsburgh,

to

change cars

vr-V,:

In

3:00

Dec. 3

as

on

car

route and move into a St. Louis car

en

10:30

a.m.
p.m.

Ar.

Atlanta

p.m.

Ar.

Return Pullman reservations should be made at Hollywood.
Representatives of the railroads will be at the Hollywood Beach

Ar.

Cincinnati

Ar.

Detroit

Hotel

The route of the above train

"

"

8:23

'

throughout the convention to handle such reservations.

special

car

If

a

is not operated for the return trip, Pittsburgh passen-

the New York special train to Washington and
there transfer to regular trains for Pittsburgh,
>
gers may

travel

on

Railroad tickets should be purchased

burgh

and

Hollywood

Washington

via

is

$115.89.

The

one-way

fare (including federal tax) is $-32.90.

;

DETROIT-ST.
A

from

Detroit and

-will

St.

provided

consist

of

Louis

there

to

attached

route of

Lv.

Chicago*

purchased from local ticket agents.
reservations will not be able to supply
Round-trip railroad fares (including federal tax)

railroad tickets.

follows:

Ar.

Cincinnati

•

Saturday, Nov. 27

Lv.

St. Louis

Friday,

Ar.

Cincinnati

Saturday, Nov. 27

Nov. 26

as

—

Air

Transportation

Special section flights have been
and Miami via Eastern

Ar.

Friday,

Nov. 26

arranged between New York

of

Templeton

Lv.

Chattanooga

Lv.

Atlanta

Ar.

Hollywood

•

'•Central

"
"

Station

Sunday,

"
"

Nov. 28

New

Spillane

"

5:45 p.m.

Special Section Flight 601)
11:00 a.m.
"

"

(Eastern Air Lines, Flight

8:00 a.m.
3:30 p.m.

Lv.

New

7:15 p.m.

Drawing
Every effort
but when the
of

course, be

available.
requested,
supply of any given type has been exhausted, it will,
necessary to assign another type instead.

rooms,

will

compartments, and bedrooms will be

be

made

to

assign the type of space

One-way Pullman fares (including federal tax) to Hollywood
are

as

follows:




Tuplin;
Tem¬

•

WHITTIER,
&

Company,

the

109 South Wash¬

branch office at

ington Avenue under the manage¬
ment of William A. Lower.

Joins H. Carl Aiken
to The

Financial Chronicle)

Carl Aiken,

1160 Sherman Street.

Chiionicle)

Colo.—Matthew M.
Leahy has been added to the staff
of
Allen
Investment
Company,
BOULDER,

1921

Fourteenth Street.

Four With F. I. F.
3:30 p.m.
7:30 p.m.

Special Section Flight 604)

special

Cal.—Witherspoon
Inc., has openedrA

(Special to The Financial

section flights should

DENVER,

Chronicle)

Colo.—Jas. A.

Cald¬

well, Ted G. McCorkhill, C. An¬
drew
Sutherland, and John A.
Tretheway have become affiliated
with F. I. F. Management Corpor¬

Airport

for

Branch Open

Wither spoon

603)

"

"

York*

(Eastern Air Lines,
*Idlewild

Reservations

Chicago Special Train—Reservations for the going trip (with
exception of the Detroit and St. Louis cars, for which see
below) should be made through Richard B. Walbert, Blyth & Co.,
Inc., 135 S. La Salle St., Chicago 3, 111.

Edward
j,

2:45p.m.

Sunday, Dec. 5

Miami

Ar.

10:00 a.m.

the

Ellsworth

and

(Special to The Financial

Saturday, Nov. 27

Miami

Reservations

'

C.

follows:

(Michigan Ave. at 12th St.)

Pullman

Edward

and Sacramento, N. Connor

Returning

Saturday, Nov. 27

Angeles,

Los

Roland Seidler,
Gerald Secord,

Shropshire,

J.

6:45 a.m.

Cincinnati

Colis

&

San
and

follows:
Mitchum

Allen Inv. Co. Adds

"

York*

Lv.

—11:30 p.m.

Lv.

as

are

Fletcher;

Meader

2:00 p.m.

Friday, Nov. 26

Miami

Ar.

Saturday, Nov. 27

latter

Tully & Co. in 1925.
Partners of Mitchum, Jones

Going
New

(Eastern Air Lines,

Detroit

the

of

Connor Templeton
Sacramento
joined Mitchum,

N.

DENVER, Colo.—Ben J. Lemon
has been added to the staff of H.

Air Lines. The schedules will be as

York*

Lv.

p.m.

Cincinnati

President

as

company.

(Special

7:15 a.m.

Ar.

tinue

115.12
99.12

—

St. Louis.

104.89

follows:

Lv.

$90.04

Detroit

63.80

Chicago

10:45 p.m.
7:15 a.m.
10:40

Cincinnati

$53.41

Chattanooga

Cincinnati, will be
reservations.
This train

Nov. 26

the special train and cars are

Hollywood from points served by

at

The schedule will be

Friday,

has been devoting the

years

major portion of his time to Re¬
serve Oil & Gas Co.
He will con¬

pleton and Malcolm C. Tracy.

Those in charge of Pullman

lightweight

be New York Central System.

George

the past

Alexander C. McGilvray,

•

Atlanta

from Jacksonville to Hollywood. The
the Detroit and St. Louis cars to Cincinnati will likewise

a.m.

Cincinnati, and New York Central

as

East Coast Ry.

Mr. Tully for

RAILROAD TICKETS

equipment throughout.
Its
route will be New York Central System from Chicago to Cincin¬
nati, Southern Railway System from Cincinnati to Jacksonville,
and Florida

and

Mitchum

Colis

Jones,

Paul

Railroad tickets should be

SPECIAL CARS

sufficient

are

modern

be

partnership of Meader

to

Sterling, Richard W. Jones, James
D. Cockburn, George E. Jones, Jr.,

is Florida East Coast Ry. to

System to Detroit.

special train from Chicago to Hollywood, with special cars

operated

-

LOUIS

7:00

Dec. 5

Sunday,

to

CHICAGO SPECIAL TRAIN

a.m.

12:10 p.m.
8:45 p.m.

Jacksonville, Southern Ry. to

from local ticket agents.

;The round-trip railroad fare (including federal tax) between Pitts¬

7:40

"

change in

a

Templeton, and the ad¬

&

George E. Jones,
Andrew Dunlap,

1:31 p.m.

Chattanooga

Hollywood

The

follows:

Friday,
Dec. 3
Saturday Dec. 4

12:20

Tully,

W.

of the firm to Mitchum,

name

Francisco,

addition, arrangements have been made for space on
Lv.

Saturday, Dec. 4
"
"

which is not

Jacksonville.

>>

■

for St. Louis passengers

Royal Palm, the schedule of which will be as

p.m.

Coast Ry. to

The City of Miami is a through car,

ington,

to

a.m.

Central of Georgia
Ry. to Birmingham, and Illinois Central RR. to Chicago and St.
The St. Louis

RR.

E.

Jacksonville, Atlantic Coast Line RR. to Albany,

on

Ex¬

Stock

Angeles

Los

Jasper

few
10:40

The Seminole it will be necessary

Lv.

the

Calif.—

Tully & Co., member^

George E. Jones, Jr., Edward J.
Spillane and Ellsworth Tuplin.
A co-founder of the firm in 1920

7:38 a.m.

Sunday,

but

Pennsylvania

get

Fletcher, Alexander C. McGilvray,

6:10 p.m.

Louis

FRANCISCO,

SAN

mission

10:28 p.m.

Friday,

Hollywood
Birmingham

Louis.

the

the

Templet on New Name

Jones

SEMINOLE

If there is sufficient demand, a special car will also be oper¬
ated for the return trip, via the New York special train to Wash¬

via

on

to

brokers

Mifchum, Jones &

with

person), $30.86
Bedroom (2 persons), $35.75

calling

City

and

acquainted.

the

10:55 p.m.

Ar.

made

(1

present

business trip to

a

on

York

dealers

of

9:00 p.m.

Louis

Ar.

be

is

change, announces the resignation

a.m.

through A. Lowrie Applegate, Hulme, Applegate & Humphrey,
Inc., 586 Union Trust Bldg., Pittsburgh 19, Pa. Duplex rooms and
bedrooms will be available.
One-way Pullman fares (including
federal tax) from Pittsburgh to Hollywood will be as follows:
Duplex Room, $25.96

6:06 p.m.

THE

3:35 p.m.

11:35

Nov. 28

Dec. 3

Friday,

p.m.

7:55

Saturday, Nov. 27
"
"

thence

At

Cass

Mr.

Mitchum,

MIAMI

OF

Saturday, Dec. 4

Hollywood
Birmingham

Ar.

Pittsburgh

Tegeler & Co.

Robert T. Cass

Accordingly,
regular

warrant the operation of such a-train.

the New

Washington

Lv.

with

Such reservations must be arranged

special train has been scheduled for the return trip. This
the fact that there has not been sufficient demand in

follows:

Ar.

Mr.
for¬

was

merly

New

possible after arrival at Hollywood.

77.99

Lv.

and

Cass

to

CAR

as

George

Earnest,

Manager.

of

The schedule will be

,

28.27

trip should be made at

return

the

for

Beach Hotel.

as

Ar.

to Washington, where it will be attached to

reservations

assist
H.

Dempsey-

Hollywood—at Transportation Headquarters on the lobby floor of

Lv.

PITTSBURGH

Pullman

where he will

Bedroom (2 persons)— $32.73

42.13

trading

department,

arrangements have been made for space on the following

86.85
___

the

(including

Pullman fares

One-way

RETURN ARRANGEMENTS
Pullman

97.50

York special train.

available.

be

(2

Compartment

will be operated via the Pennsylvania Railroad from

car

Pittsburgh

$90.65

Washington
Richmond

100.07

______

Wilmington

This

Baltimore

■

108.16

Angeles Stock
Exchange, in

between St. Louis and Hollywood are as follows:

recent years to

York

New

will

bedrooms

Los

the

should
be made through Harry Theis, Albert Theis & Sons, Inc., 314 N.
Fourth St., St. Louis ,2, Mo>.
Drawing rooms, compartments, and
federal tax)

of

members

Special Cars—Reservations for the going trip

St. Louis

Hollywood—at Transportation Headquarters on the lobby floor of
the Hollywood Beach Hotel. Such reservations must be arranged
as

pers.) >45.54

(2

Drawing Room (2 pers.) $56.54

made prior to date of departure.
Pullman

Spring Street,

Bedroom (2 persons)... $35.75
Bedroom (1 person)—" 30.86

Drawing Room (2 pers.) $61.71

18.37

;■

Co., 453 South

Drawing rooms,
One-way Pullman fares (including
tax) between Detroit and Hollywood are as follows:

federal

18.81

^

with Fewel &

of Rich¬

should
Penob¬
compartments, and

Bldg., Detroit 26, Mich.
will be available.

associated

become

has

received

are

bedrooms

19 80

25.63

1

ANGELES, Calif.—Robert

Cass

Special Car—Reservations for the going trip
be made through Ralph Fordon, Fordon, Aldinger & Co.,

20 30

37.90

applications

mailed if

be

Detroit

21.23

.

53.68

______

Person

$21.23

51.26-V:yi

_____

—------

Washington
•

1

will

v

Fewel & Go. Staff
LOS

G.

promptly. Otherwise they may be picked up at the office
ard B. Walbert prior to 5:00 p.m. on Friday, Nov. 26.

Roomette

L.

tickets

Pullman

One-way Pullman fares (including federal tax) to Holly¬
wood are as follows:
.

Robert Cass Joins

1 Person

$60.61

Chicago

Drawing rooms, compartments, bedrooms, and roomettes will
Every effort will be made

-Redroom-

Compartment

Drawing Rm.

Committee, of which Walter H. Weed, Jr., Union Securities Corpo¬
ration. 65 Broadway, New York 6, N. Y., is chairman.
be available.

25

(1849)

The Commercial and Financial Chronicle

.

be made

ation, 444 Sherman Street.

Whipple & Co., 1 Wall St.,
N. Y. The round-trip fare (including federal tax)
York and Miami is $160.38. Special limousine service

through Harold H. Sherburne, Bacon,
New

York

5,

between New
will be

additional cost of $2.00 per person.
those
above
on

a

direct to the hotel at an
Provision can be made so that

provided from the Miami Airport

desiring to return earlier or later than
may

go one way

regular

with the convention group and the other

scheduled flight

National Airlines.

the flights scheduled

on

either Eastern Air Lines or

Joins Hooker & Fay
(Special to The Financial

ward

I.

Hooker

Mr

Austin is now with
Fay, 340 Pine Street,
of the New York and

&

members

San

Chronicle)

FRANCISCO, Calif.—Ed¬

SAN

Francisco
Austin

Exchanges.
previously with

Stock

was

Reynolds & Co.

26

The Commercial and Financial Chronicle

(1850)

Continued

proximately

from first page

off

of

and

peak

new

The Forward March

million

7

mains.

our

utilities

Sales

users

by

gas

pipelines have set

and

31.5%

gas

of

rise

is

ex-

totals

1953

over

a

additional

an

General Management Section

new

has

of

ences

opinion

0i the Gas Industry

pected by the end of 1957.

have

establishment

sales

have

despite

soar

about

the

Space
continued to

all

heat

have

we

heard

and atomic
commercial use.
We
pump

bounds

and

and is getting into full stride.
I can well imagine the differ-

heating

•

leaps

by

grown

which

existed with

must

to the

respect

Laboratories.

with

them

Today we
pride.

look

impatience and strong
differences
of
opinion.
But
to
my great pleasure I found pride
and accord in what we are try-

would be trite for me to ask you
whether we do or we don't believe these associations are es-

win be heated by gas—about onehalf
of
all
the
residential
gas

pliances.

customers in this

manufacturers

ing

of our association are located a
long way frcm our national association
headquarters
in
New
York City. Throughout the years
of my association activities I have

be

heating the
huge
total
of
nearly 17 million households. In
the commercial field, gas appliances
have racked up sales vietories
over
competition.
Gas is

6,000 different
appliances will be
tested this year at our Cleveland

been

playing

found

to

New

do, and everywhere from
England to Texas, to the

Pacific

Northwest

pulse

quickened
for

ness

and

aggressive

This ground
and
most

a

eager-

an

ideas.

new

I

is

striking

1954.

probably

sensed

The

the

development

have

it.

felt

swell of enthusiasm

awakening

seen

have

I

it.

of

have

I

industry is

gas

on

the march!

Last

his

in

stated

interview

an

"Time"

Presidential

Smith

Frank

during

he

reporter

that

with

industry of

the

He

glad

of

reasonable

except

went

we

public

belong

there

interest"

_

"I

say

in that front line

are

defense—we

the:

regu-

to

on

wholeheartedly

I

in

agree

with

Franks

statement.

The

turn

cated

that

Common
o
n

of

try, .from

producer

itributor,

from

appliance

dealer

a

Therehi

ever

indus-

our

final

to

needs

the

dis-

to

to

know

fundamental

uuJlS ifwS

fr

mmmnn

L

ena

oTX
thl success

vancement

of

Over
i

and

out that

are

To

be

GAMA,

INGAA

regional

able,

and

associations

efficient

But

the

ad

of

es

part

T

*i

a

.

Last

ti

April

President

vr

H

ol

n

K

the

alert

and

done

through

groups

composed

and

of

to

j

satisfy

be

to

me.

completely

member.

come

to

Although

«.

,»

d

Gas

h

t

t

of

most

f

f

value

to

justify

membership to fully
time, effort and ex-

the

required.

pense

wise

its

As

long
to,

will

that

as

plan is adhered

sociation

our

as-

satisfactorily

fulfill its
purpose and its obligation."

§ou

assure

cinle

own

to.

Not

strives

content

analysis, A.

G.

with

A.

has

in

the

eyes

of
tho
the

as-

Ts striving

sociation

orimarv

and

set

fnrth

bv-laws-

devefop \he

and

in

"To

gas

in-

dustry and to coordinate its activ■

-

-

-

ities to the end that it
may serve
to the fullest extent
the best in
terests of the public."
Your

desks

finnrio^

tiooded

and

mine

r'.

with

reading material

desrrintinnc

ard

of

....

ri!fn'tri?ii*nk fji0xv.evei\do we
don t
take the time to
keep
we

really
we

informed on the activities
support? The amount of mawhich has come over

terial

my

desk

President

as

Gas

can

past

12

months

insight

into

which I

never

you

could

ence.

the

of

the

Association
has

A.

me

the
an

A.

activities
had before.
I wish

have

the

Complaints

volume

Ameri-

during

given

G.

of

same

are

experi¬

made

material

as

sent

to

out

by headquarters. Others
want to
be
kept even
better
informed,
But the devil
you do
you don t!

or

the devil

vehicles

we

promote the sound

are
using to
development of




recently

ytp inl? ,\n11,«

d

cv-

wp

to

came

^

^

th

,n

^1
m

^
,

.

)1VV

D

^puned by the Action Program
r
s lndustr>' Development,

its details.

I do

want

to

point

Jr

research

j

•

A"c

raised.

tecnniques.
advertising

si(mts

after

288%

to

current

annual

|®lne4.1?01»e 4.®% to to£al
^°u£
ml h°" "nlts annually,
^01 e gas water heaters are being
f,that! elftnc>, bpt .the.15^

nlav

community.

activities
Gas

of

our

and

the

American

own

Association and the National

Council
are

Association,

for

LP-Gas

nrOVlHinP'

Promotion

are providing a fnnnHatinn for an
foundation for
industrv-wide effort tn Pnli^t
mausir.y wiae enoit to enlist rmh
publie understanding and support,
The activities of our A. G. A.
Laboratories have reached a new alii
time

peak.

vention

'A

on

Our

Accident

Program

vitalized

has

been

ex^anded anS

and

Los Angeles

and

that

requirements

that

public safety record has hppn

Prel
rp"
our

suh-

~

stantially enhanced

that

electric competitor out-

our

us in many areas, especially

the higher priced units? Do

hi

ratio

of

1.2 to 1 at

as

Do we view
that in the

"market

home

but

no

water

heaters and clothes dryers fueled
by electricity are making serious
inroads?

serve

ects

Plan and

our

markets but
aheaH

Our

f1^ JOD aneaa.

still

we

have

prentect

a

inh

Uui greatest ]ob

....
the housewife th

convince

« » convnice me nousew.ic that
to3S

ana

1Tl0de11!1,?

§as

u

appliances

■

product because
of the

five

buy it for

it

human
the

appeals to
senses.

service

them and for their

to

nriHe
pride

in
in

ances

which

ances

thp
the

wnicn

mnrlorn
modern

thpv

tney

it

With

tnta 1

h-trUn 1013
iiiinn

Largest

They

ownership
onn11_
appli-

o'oc

gas

have

have

in

in

thpir

their

homes,

Industry

aceok
«

•
•

branch

in

Coast

<Mor/

wk

nrJS

hplfi
Lf
1^
ward.'

t

+

t

i

framework

^ many Poetical tools, all de^

^

•

a

Wo

a

now

hi ah

than

more

nf

the

has

last

Pa-

doubled

few

has

tripled and during this

convention

shall

we

north

wing to

dedicate

Raymond

a

M.

ably directed the

so

laboratories

for

many

years.

yeaL

local

orn

levels,

build

greater

of

you

first

the

wide

remember

may

national ad-

our

vertising compaign
was

in

1935.

coordinated

promotional

This

nation-

effort

of

the

industry. Today, we have our
Promotion, Advertising and Regas

search

its

(PAR)

first

was

Program,

established

in

which

1945.

nine years of existence

In

mem-

ber companies have contributed

approximately $15,600,000 in support of the plan. I shudder to
think where nur industry_ would

his fellow committeemen I

utilities

1

their

of

mapazjne

to

spend

advertis-

own

editorial

support

tauoriai

support.

gas utility or gas
manufacturer
could

Dbance

advertising

review-

much

what

0f

promotion

fic

been

under

called

the

classification

reiati0ns

0f

many

service,

has

comes

a

pub-

More-

A 's

G

home

and'promo-

advertising

tional activities directly or indirectly affect the industry's public
reiations.

Here

that

ampies

Hollywood
icanv

few

a

to

ex-

mind
is

Bureau

presenting

ffa«f

and

are

come

Our

dramat-

gas

kitchens

in

glamour-

annliances

""cettinesto millions of neoDle
through films and TV shows
Educational
erhnnl

Service

kit

"Natural

Y^ur

Behind

Burner»

distributed to

over

The

Bureau's

Gas

Science

has

10,000

bee„

science

teachers

throughout the country
familiarize future home-

to

k

with gas and modern gas

appliances,
contest

The

America

Mrs.
r e

.

d

by the

a

tremendous amount of excellent

PSty for
y

us

'

Frppr!nm

New

Fieedom

apbe-

sales

your

staffs.

and

This

contact

builder

year

the, first

for

fime, the official ^itchen and

laundry film of the National
Association of Home Bmldeis
will feature a New Freedom Gas
Kitchen and Laundry. The film
nromnteH

on

national

a

oe promoted on a national
scale and offers many attractive
nnssihilities

utili-

local

for

m possiDiiities 101
-

local utm
-

-

—

cam-

Re1s; The work of the Bureau m

of our competitors
appliance field> 1 hastily

erdlsting cooperation of national
women's magazines, cabinet manufacturers and gas utilities to
dlsPlay New Freedom Gas .Kit¬

paigns of
the

and

promotion

some

however,

of national

that

mere

.

f

.

,uei H?

u^vrfnr|
oeyuiia

not

chens

!

partly

through complacency
°
control, we have per-

our

,

....

.

It

««modern»
has

being

must

Although

for

its

very

been

used—and

used—to

imply

know
—

a

Laundries

at

national

is

that

it.

recent

productive.

Gains in

Commercial

Fields

Gas

.

mitted our competition to capture
term

and

exhibits cur shows has been most
cmuuhs and

+

,u,nu

+

volume

advertising should
not our goal.

be> ancj

the

after

sever^y^or^jo^o^ons
that are of special interest to

and

aqtfvitfe/than

PdfcdZ"ie

...

convinced

am

ing both the GAMA and INGAA
public
relations
programs
that

Gas Kitchen Bureau has made

No sln§le

T+

level

the local

on

level.

those

ing funds and obtained substan-

-n

do it

you

re-

advertising

manufacturers

add,

national

the

on

help

first Ume this year, has produced

the expenditure of $770,000 of
PAR funds last year we encour-

j

and to

American Gas Association for the

or

level.

d

this

do

rec-

in home, business and inThe association is trying

gas

dustry.
to

public interest;

can be done
done best, at the national
You should know that for

search

;

of

the

establish wider

To

com-

pipelines

and

Promotional

only,

with

(3)

Plan .has

mend it to you

§as

and

understanding

industry; (2) To idenindustry policies and op-

gas

over

.

Some

tify

years.

Cleveland

at

space

Your

a formidable set our industry and our appliances
pJomot.e ou^ business, are antiquated, outmoded, and
mvestment and obsolete. You and I know better.
public we serve. With But that is not enough. Our
Us Marcb For- customers and potential custo-

_„Wl.thin.the
-

+

f

serving

in

size

Floor

L oie ye®rs tI}e Sas ^dus^try stin
nf

a

now

Approval Re-

cific

own.

^—

^
rL" sl&ned to accomplish specific
eiV/h "lnr^t
the fesuRs.and a11 tuned to your own
tion
Aii nbn kw, !i
"a" local situations. Year in and year
creasim*
J
rSI l
? m" ?•
the sectl0ns of our associabilhon dollar, lt°
wf3 J 3 .°n-' Under ±he leadershiP of able
chalked
ttrinS nf
ch^en develop a wealth of
sive
accomulishmpnt.
while programs and ma+hn

the

Program.

any

renders

and

local

and

erations

aac

to

is

objectives

To

(1)

namely:

activities

new

major

national

the

research

quirements

$1,764,000

.

three

have

projto them under the

assigned

PAR

_

Sixth

through

us

aged
•

_

These

program.

further

tion has been to undertake for

ranges

for

industry-wide public relations

an

ognition of the indispensable role

laboratories

These

been one oi the outstanding

with^lTrm8^/'fact

new

electric

later

can

level.

A. G. A. activities. Its basic func-

point last year*?

that

an
re-

foundation

the

as

of public

0f the gas

we

one

activities

used

asso-

national

and

that the

of

be

The

efficiency would be
unlikely, if not impossible. Our
appliance testing programs are
proceeding at an all-time high
ability

?as ran^es to
dropped
as
low

sales
ranges

for

Although

initiated this year

has

lations

become
present

our

impressive number

Without

the

laboratories,

Council

Promotions.

level of gas appliance safety, dur-

mers

The

have

Standards.

American

INGAA,

not developed
a
fullpublic relations program
own,
we
have made a

ciation

they meet the

efforts

our

GAM A,

step in that direction.

Laboratories to

certain

make

W gain for electric is 660% be today without the PAR Plan
versus 326% tor gas.
Recently the PAR annual report
°° we view with alarm the fact was published by Jim Oates and

The public ''elatio"a programs of can 1Jiake
bfe easier. It is as
^Independent Natural Gas As- s™ple aa that.
Sdciatl0n> the Gas Appliance ManOur customers do not buy oui
ufacturers

Nearly

the inception of

a

0f

and

common

® today—if I may assume the role p. an.ce manuiacturer couia oe°oing
nronbpt fnr the
inri,.dm
Sln to match the million dollar
01 Piopnet tor the gas industry—

.

are coming into play

community

a

is

have

we

co-

a

utilities

A National Advertising romnai-n
Compaun

marketing

rnminfJ. infn

arp

goal.

for

toward

of

National

the
Gas

-

fledged

models of gas

bpi

arp

slt,ms1 aie

-

Advanced

technianps

ln

terhnimies

policies ana
promotional,

•

Their
d

and

path

out, however, that market surveys
made in demonstration cities and
in other cities now participating

.company executives
are
J"
to re-examine estab- meetmg this competitive threat to
D0licies

They are blazing

operative

Conner, who

I will not dwell

beginning
lic,bed

standards — ASA
Standthe testing of gas ap-

ards—and

new

only

vice-versl

.

c.

Industry DeProgram—a program

from the Chairman of the

gram

electric

incUistrykfn New"1England"ire*00

ud

.

The

which

c°aw oTt techniques

to

nurnose

constitution^

promote

projeet)

the

Thus
lhus

member oompames.
companies

qneHfir

Gas

of action devised to meet competitive inroads in our domestic
market. Tomorrow you will receive a full report on this pro-

you sooner or

b

the

gnisuoh!hc-d-mthe r£ac£
view with a,a™ (oit
ce

em-

of

f !

pTJ

its

viewpoint

value

T

to

plovcd an'outside -lopnpv In Qturiv
piqyeci an outside agency to study
and evaluate all of the A.
G. A.
activities 110m tne viewnnint
activities
from
the
of
their

.

that is the prin-

association

your

Sphere

,

England,

th

in

sales of about 1.3 million units,
Against this, gas range sales in 15

pos-

dweU

you

New

,

k

^

con-

every-

thing it does must be of sufficient

or

as

definitely or are we being lulled
to sleep by our past progress?
The realization that we probably were being lulled to sleep

about

Events °£ the reeent Past point
conclusively than ever to
the "eed for. close coordination
pf the activities of our national

cept of our association that

all

it

as-

must

more

probabl>' wil1 a£fect

its

aim

stole."

Ual°address it is the basic
tiaiaaaiess, "'A is"tof basic'eon"

the

or

found

every

The

close

as

yours

be

in-

continue

general pattern as regards competitive inroads. While both electrie and gas range sales have
climbed in the past 15 years, the
gain for electric ranges has been

accom-

regional

can

growth

proval

ap-

in this Action Program show

or

associa-

are

if

doubt

programs

sociation

our
The

our

Cinderella

on

individuals
and
mine,

failures

or

is

work

of

of growth,
question the fuindustry?
Will our
record

a

LP

appliance

of

coordinating

are

those

and

development

these

ever

We

with

interest through their part in the

ment Committee.

staffs,

committees

company

mine

national

Griffin, then
Southern

impor-

vital role they play in the public

A. G. A., Gas Industry Develop-

cap-

: and regional associations.

us

I

have

fundamental

your

asso-

by themA.
G.
A.,
the larger

sure

such
we

velopment

year

our

With

should

resulted

entities

not

selves.

again this

over

have pointed

ciations

indi-, lishments

manufacturer

clearly

how'neoeslrv

TfSs

than

segment of

every

toward

unsparingly of
their
activities, and of
the willingness of individuals to
do this.
My hat is off to these

The real life blood of

*

increasingly

an

ture

give

tions is you and

events

clearly

more

more

Goal

homes

country. At this
rate, by the end of 1957 gas will

and

from

A

American

tant production role.

our country never

received,
nor
wants,
nor
willingly accept, any govelement subsidy or other inter-

million

14

willingness of the managements
of those companies to have their
personnel travel great distances

uals, many of whom I am privileged to count among my closest
friends.

em-

would

am,

the

by

him-

found

has

lation."

impressed

managements and to the individ-

"pounding the table in
phasis of my assurance that

ference

deeply

a

self

gas

companies

Most member

million

one

heating customers a
the end of 1954 more

By

than

time to A. G. A.

year

address

sential.

than

more

house

new

year.

It

another most encouraging indication of our forward march,

a

I

for

adding

are

significant.

extremely

is

on

What

great

energy

local

The very fact that
these groups, each interested primarily in a different sector of
the over-all picture, can combine
forces to attack mutual problems,

associations.

Testing

our

have no GE's or Westinghouses in
the gas industry. We must develop
our
own
industry-wide
plans for promotion, advertising,
public relations and research.
It

the

Thursday, November 4, 1954

.

.

^

of

problems of other
areas; why managements differ on
the
amount
of
emphasis which
should be placed on the various
parts of our programs. Obviously,

from

.

.

Hard-hitting

in-

.

promo-

-

,

tions in the commercial
Produced

impressive

field
in

Year-end statistics disclose
dollar sales of commercial
gas appliances last year increased
24.8% over 1952, while dollar
sa?es °f commercial electnc appliances rose only 12.7%.
the

am

particularly impressed by
new "year

a s s o c i a t i 0 n ' s

dicated that most of our local
companies do not have organized
programs
for
improving" their

ahead"

public relations, it is encouraging that our national associations

plete work of its kind that

have taken hold of the problem
and have set out to aid in its
solution. Two joint Public Re?aRona Conferences have already

,

gas

gains

that

I

survey

-

.

national

planning booklet

motional

and

auu.

on

advertising

aUvuupiii6

paigns lorl955—the "most
yet seen.
brochure
panies

This carefully

procamcom-

I have

prepared

gives local gas comcomplete details on PAR

national

advertising and promotional campaigns well in advance

achieving

greater

Number 5374

180

Volume

turing substitute gases for natural
gas. Some highly significant
findings have come from research
projects at the Institute of Gas
Technology and the A. G. A. Laboratories. We certainly consider
prise our promotional program, the Institute another of our modbut collectively A .G. A.
is doing ern tools.
I look forward to the day when
them for you at relatively small
T ,"1- '
full

of gas industry campaigns
greater customer impact at
the local level where all sales
are made.
No one company could
afford to undertake the many
vitally needed projects that com-

tion

and

automatic

cost.

ignition

on

all

this Convention, 13 companies
will be given special awards for
having achieved the best records
in their respective divisions of
the industry. Do we or don't we
take full advantage of the coordinated efforts and material available through the Accident Prereduce
costly on-the-job accidents?
Committee

vention

to

range burners will be a requireYour association's Washington
ment. In some cases original office is acting as an information
hVs
operations
from
pipeline Price governs the purchase of center and "listening post."
It
IlLornh in Utilization research, appliances and rules out auto- provides a liaison with the many
research to utilization research. matic
ignition. I have urged the government agencies and individThe potential field is alrhost lim¬
incorporation into building codes uals and permits us to provide
itless.
We,
of necessity, must
research program encomall phases of our indus-

Your

carefully'

that field
of projects

screen

in the

available funds give us no other choice.
Vast opportunities lie ahead of
us
Since
1946 we have sold
nearlv 19 million ranges, more
than
14
million automatic gas
water
heaters and
millions of
heating
units.
Our statisticians
tell us that if consumer purchasing power in the United States
holds at the present level, there
is a potential market for 59 million more gas ranges, water
heaters
and
heating units between
now
and 1958.
We ^n
achieve this huge goal by planour

election

of the ASA code for house piping
and appliance installation Z21.30.
Safety considerations alone, it
would seem, should make this
code appealing to building authorities. Incorporation of this
cod1e into building codes would
make mandatory the installation
°* only approved appliances. It
would eliminate the possibility
of unapproved, unsafe appliances
being produced and sold and

improving techniques
practices; and by hard work,
by

ning,
and

These

principles

basic

the

are

Industry

put forward in the Gas
Development Plan.
ress

have a
vastly superior product.
In the
range field, the A. G. A. Cleveefficiently

sell

,

demonstration

Laboratories'

land
of

in

principles

research

new

January pointed the way to such
a

was

demonstration

This

product.

of

the first concrete example

Gas Industry Development Program and
a

marriage between the

the

Plan

PAR

improve

to

the

the

gas

of

position

competitive

The display units pro-

industry.

cool

cooler
kitchens; tiny 50 Btu pilots to
eliminate hot spots; ignition arrangements to give instant ignition and re-ignition at all positions of the gas cock; unsurpassed
heating
speeds plus high efficiency: precision control to top
burners plus very low turn-down
heats; simple burners, easy to
clean and capable of burning a
wide range
of gases; burners

vide

for

air

without

for

ranges

will

which

shutters

in

the

work

on

tion

on

his

the

problem

Code

I

coordinate
work

have and

dustry.

On June,JO, Carl T. Kallina,
testifying on behalf of the Federal Power Commission at the
Heseiton Bill-Congressional hearing, spoke up eloquently regard-

"Personally,"
he said, "I think that this (code)
is one of the greatest achievements that has ever come out of
the

of

the

The

of

some

these features have been

approved

tories
able

already by the Laborathey should be availshortly, at least for field
and

testing.
In
and

•

\

addition
will

hear

Radiamatic
our

you

friends

good

have

more

Range

heard
the

about

developed
Fred

of

Selas Corporation and Stan Hobson

of

Roper Corporation.

derstand

that

a

I unrepresentative

group of manufacturers is devel-

oping this Radiamatic burner
that
gas

it

can

be

utilized

in

Other

V

manufacturers

have

a

"Pot

Watcher,"

and

■

'

de-

industry;

new

coUf§e

for

supervisory

>7 '
The gas industry has come a
long way In
employee safety
since the '20's but, compared with

personnel.

other industries, we still have a
way Wgo.
industry^'tost

long

Last
more

year the
than 300,-

000 man-day$"'of work due

to em-

accidents.
This loss is
equivalent tQ shutting down the
entire gas" industry for almost
two
working
days!
In wages
alone, we lost $3V2 million—more
than the gairutility industry contributes each year to all A. G. A.
activities, including the PAR Proployee

they

utilization.

and

Everyone in this audience is wel¬

of

that

hope

to tell the full
industry
to
our

will help

story

be¬

I

and

attend

to

come

you

us

our

friends from abroad.

PAR

Committee

firm

a

greater,

rather

has

that

lesser,

than

Edison

Thomas

ex¬

conviction

the

defined

once

success

"2%

as

in¬

perspiration."
hope that I have clearly in¬

spiration

na¬

of

secret

98%

and

tional promotion, advertising and
research efforts are essential for

dicated

to

the future growth of our

industry.
The PAR Budget Committee is
striving to develop a PAR sub¬
scription
basis for
1955
which

tools to

work

support.

munities; to take the public into

Before closing, I would like to
point out to this Convention that

your

next

fidence in your services and prod¬
ucts to the utmost.

I

that

you

have the

we

with; that we have
passed the inspiration stage in our

the

that

progress;

March"

"Forward

has been sounded

and fi¬

geography

very

top

125

your

limited

and

for

year

the

first

time

in

history the American Gas Asso¬
ciation

will

be

International
Sixth

the

Gas

host

for

Union.

Conference

the

The

this

of

re¬

com¬

own

confidence and explain your
plans and problems; to have con¬

We have accepted the

Let

continue

us

challenge.

"Forward

the

March."

other

attendance

planning sessions to
My per¬

executives.

feeling is that it would be

beneficial,to the industry to

hold future executive conferences
regionally in cooperation with our

affiliated regional and state gas
associations. If seven or eight of
these meetings were held annually
with round-table discussion of
important subjects, we should
see a stronger unity of purpose
and greater effectiveness in the
operations of our companies. |
I realize that such a plan would
require more time and effort On
the part of A. G. A. officers and
conference participants, but even
that would be repaid many times
by the greater action and industry progress it would produce,
More than $3^ billion representing 90% of the new construction expenditures by the gas utilitry and pipeline companies in the
next four years will be devoted
to expansion of the nation's natural gas systems.
Natural gas
will be brought into new territories, including the Pacific
Northwest. Every section of our

the way for a spectacular development of the Canadian gas industry. Additional
supplies will go to areas already
receiving the more than 54 billion therms of natural gas being
sold annually in the United States.
Supplies of natural gas continue
to increase at a rate greater than
the evergrowing production. At
the beginning of 1954, the A. G. A.
Committee on Natural Gas Reserves estimated proved recoverable reserves of natural gas totaled 211.7 trillion cubic feet. This
was an increase of 11.7 trillion
cubic feet over the previous year
and the gain was made in the
face of a record production of 9.2
trillion cubic feet in 1953.
Thus it would appear that there
are ample supplies of natural gas
for many years ahead, provided
the climate for its production is
such that it will be made avail-

ours,

paves

New
It

is

long

indicated

York, Chicago & St. Louis

that

before

too

York, Chicago & St.
Louis will join the ranks of those
New

that

roads

widespread
week

effect

that

Proceeds

these

from

bonds

the

road

sale of

the

would

is

be

outstanding in

the

of

amount

approximately 336,000 shares and
is callable

110

at

so

eration

will

close to

that

the

a

total

op¬

$37 million.

Nickel
stock

involve

Plate,

gram

common

as

dividends

at

to

stand

from

thing, the

one

its

derive a
such pro¬
has been discussed. For

holders,
benefit

dual

of

any

company now pays

the

rate

6%

of

on

its

preferred stock. It should be
able
to
do
considerably better
bonds.
a

interest

the

to

as

rate

the

on

Secondly, there should be
tax
saving as the

substantial

be deductible before

interest will

income

Federal
ferred

dividends

actual

the

termined

while

taxes

rate

is

de¬

bidding
the exact extent
of the saving can obviously not
be
computed.
However,
many
rail analysts are of the opinion
that the net saving may run to
by competitive

early next

much

as

the
a

year

$0.65

as

might

saving

share

a

substantial

A

common.

the

on

part

of

applied to

be

sinking fund to retire the new

Income

Debentures, but that op¬

eration

itself

prove

the

coal

a

tend

investment

common

With

the

the

would

to

im¬

stature of

stock.

substantial

interest

a

lower
ago

year

that

net

income

de¬

While
under

a

traffic

signs

still running
there have been

is

year ago,

definite

of

turn

a

better

in

in

the

service

area,

by

the

upturn

in

the

business

for

the

picture

highlighted

steel

mill

ac¬

tivity.

If this trend continues, as
likely, it now seems as
if the company for the full year
appears

1954

$5.75

share
a

a

While

sizable

be

report

may

around

earnings of
share on the com¬

this

decline

would

from

mark

the

reported last year

a

$7.70 a
it would

good showing by any normal

standards.

Also, particularly con¬
sidering the company's conserva¬
tive debt

structure, it is felt th^fe*
earnings would afford more

such
than

adequate coverage of the
$3.00 annual dividend rate. This,

dividend,
generous

recent

incidentally, affords a
yield of close to 8% at

market

levels.

Analysts who have been bullish
Nickel Plate point only to its
past record of high operating ef¬
ficiency, favorable traffic posi¬

on

tion,

and
long record of high
earning power but, also, to two
plus factors for the future. For
one thing, the road has been slow
in dieselizing
and as this pro¬
gram

progresses

substantial

the
in

the

as

should

be

Secondly,
very

little

benefits from

amortization

may

substantial

deriving
of tax

way

accelerated

not,

there

economies.

is

road

so

it

is

roads are, borrowing

earnings from the

future.

in

of bituminous
in the heavy industries

transportation
and

been

$4,708,000,
to
$9,168,317.
Share earnings on the common
amounted
to
$3.72 down from
$6.03 a year-earlier.

pre¬

Until

not.

are

interest

at

even

mon.

and

had

Federal in¬

sharply

were

clined

used,
along with some treasury cash,
to call the outstanding preferred
stock for redemption. This stock
new

they

were

contemplates sale early next year,
at comnetitive bidding, of about
$36
million of Income Deben¬
tures.

than
but

late last

press reports

the

to

taxes

come

their

eliminating
stocks.
There
are

preferred

nine months of 1953.

generally, Nickel Plate has nat¬
urally been pretty hard hit by
the business readjustment of the

Joins
(Special

SAN
ard P.

Reynolds Staff

to The

Financial

Chronicle)

FRANCISCO, Cal.—Rich¬
North has joined

of Reynolds &

the staff

Co., 425 Montgom¬
What a tremendous boost able for ultimate consumption.
past 12 months or so. Gross rev¬
Oven Timer" and a
"Top Burner would be given to our growth if
Where will these increasing enues for the nine months ery Street.
Timer."
'
we
were to'save even a fraction
quantities of natural gas be sold?
through September were off al¬
We are on the march.
With Schwabacher 6o.
of this yearly accident cost and The Bible says "we cannot live by
most
$20 million, about 15.4%,
Let me
(Special to The Financial Chronicle)
emphasize that our re- invest it in- ^promotion, advertis- bread alone," nor can we survive
from a year earlier. Dollar-wise,
search efforts
are
not
confined
ing and research! It can be done, economically
only through in¬
SAN FRANCISCO, Calif,—
expenses were cut all along the
to
appliance
development.
We
Quite
recently
at
Hartford, creased sales of gas for house line but the
transportation ratio George O. Clark, Jr. is now asso¬
are
seeking, and finding, new Conn., more-than 60 utility com- heating.
ciated with Schwabacher & Co.,
We must get out and for the
period rose 2Vz points, to
methods of producing gas at panies
received awards from sell the other six important do600 Market Street, members of
36.8%, and the over all operating
lower costs.
Looking into the far A. G. A. for having reduced their mestic gas services.
the New York and San Francisco
ratio
of
71.2%
compared with
distant future, we are
develop--accident ' frequency
more
than
One of the most fertile fields
Stock Exchanges.
67.4% reported during the first
dig new processes for manufac25%
during' the past year.
At today is the gas air-conditioning

sloped

'

so

their

range models.

a

by" gas

Hess

gas

air condi¬

because

production, transmission,

distribution

sums

pressed

natural gas.
The discovery of
great new Canadian gas reserves
and the expectation that these re¬
serves will soon be piped to Canadian industrial centers and, it
is hoped by many, to some of

natural

will just

voted to

the
who

money on

in various coun¬
be general ses¬
individual meetings de¬
will

There

sions and

lieve in it.

nation will then have a source of

and heard in Cleve-

tries.

spending large

are

the gas industry

it

manufacturers

own

Unfortunately

If you

•

saw

York, Sept. 27-30, 1955, to
exchange ideas and technology of

this and
with

organization will meet ifjf

New

Par¬

should

we

on

work

tioning by gas

many

rejjew the list of (72)
land gave me the greatest thrill persons . . '. you will appreciate
I have had in a long time. I bethe fact that ..no one agency—not
lieve these developments give the even the government, I think—
gas industry the greatest opporcould have gotten together such
tunities it has had in years.
I high-priced talent to do such a
^further fully believe that when
job as they have done here. It
appliances
incorporating
these has been tremendous, and it has
idevelopments get out into the been educational to all of us."
field our savings
in servicing
Let us take a look at employee
.costs will
be
greater- than our safety where another hardworkentire contributions to the PAR
ing A. G. A. committee is putting
Program. teeth into the association's AcciModels of ranges incorporating dent Prevention Program through
What I

believe

that

the

of

of their

wnich we are
trying to do some-

have

these

sonal

I can report that the final draft
of the B-31 Gas Transmission and
Distribution Pipeline Code was
sent to member companies and
that the timetable now calls for
publishing and distributing the
new code about Dec. 1. All of the
members of A. G. A. and the gas
industry as a whole give our association member Fred Hough,
Chairman of Subcommittee 8, and
its members a vote of thanks for
the great amount of time and effort which they devoted to production of this new code. This
was a stupendous task but the resuits will greatly enhance our
position as^ self-regulated in-

attention.

research

our

up

call

I

great,

so

your

step

witn

however,
at

Gas Pipeline

ing the B-31 work.

and

adjustment

abreast

vidual companies.

about
The

automatic.

.

Repre-

are

ticularly do

ecutive Conferences to the indi-

deferred ac- factors

bill.

all
burn
alike;
a
fast large-area
golden glow broiler; units which
are
truly safe and truly fully
in

remain

sibilities

especially to

construction and the value of the A. G. A. Ex-

Heseiton

sentative

nowned

Communication within our in- will be more
widely acceptable. nally that perspiration and hard
dustry— or any industry — is a The PAR activities are a con¬ work lie ahead.
great and vexatious problem.
I tinuing, sound business invest¬
know 0ur members are not fully ment and as such deserve the
"Take Public Into Your
aware 0f ap the activities carried
Confidence"
support of our entire member¬
on for their benefit. I know the
I urge you to press the attack
ship.
I urge you to give them
difficulties executives have of your individual and collective ever harder in
prooiems

operation of transmission lines,
Because our industry really went

must

we

importance to pipeline
distributing com¬
panies for the future and its pos¬

You will rer-'U b'hs f^ed in faced and are
Congress to give the Federal thing about.
Power Commission the jurisdicI have been deeply impressed
tion and responsibility for public during the past few years with

safety

Its

companies and

promptly requested data on our

would permit the up-grading of keeping

to

of forward proglies not in selling alone. To

But our hope

field.

industry. The Federal legislative
scene is an active one which requires close watching. This office
is available to you at all times,

ali 2as appliances.

27

(1851)

The Commercial and Financial Chronicle

. . .




gram.

The Commercial and Financial Chronicle

23

Continued

be interested

those that he would

that

feel

of

management

the

is of a high caliber
is reputable, not only so that

and

they

rest easy that their mon-

can

is in safe hands, but also so
that they can feel proud of their

ey

and its management and
of its standing in the community
whether
that community be
company

—

city or the nation as
is the job of stock-

small

some

It

whole.

holder relations to interpret man-

agement to the stockholder group,
I don't mean that we should pat
ourselves
state

so

the back but

on

aims

our

and most other companies, I be-

swer

great many

a

promptly.

the management.
In

this

of

matter

interpreting

think it is important to

much

ing

who

the

run

stockholders

business

feel

will

that

so

that

they
them, that they like them,

know

and

personalize
the people

possible

as

that

they

friends

the

proud

are

them.

with

associated

first

to

be

To

be

to

get

is

step

acquainted. Not long ago we ran
tfjmi advertisement and sent copies
to stockholders showing pictures
directors with

our

There

sketch.

thumbnail

a

write

included

also

was

what might be called a "creed"—

a

Also, we have run
one headed "Up From the Ranks"
showing pictures of the Presidents

telling

how

both

of

each

I

am

I will not say much
no question but
that annual reports are improving

made

these

the

holders feel closer and
ward the company

each

stockto-

in

the

by

service

have

another

to

what

that

and

indi-

we

say

should be in as simple and under¬

Public

made

aims

basic

we

individual

vidual

service

or

company.,

companies
their

of

one

product

their

also inter-

are

forget

not

give information,
we should keep
arei talking as

so

that

mind

in
one

ested
sold

in doing

and

and those who

The stockholders

must

We

year.

nual report is to

it.

run

There is

that the basic purpose of the an-

that

warmer

language

standable

it- and in

to

possible,

as

material which fits its own situa-

feels

that

share owners' quarterly with each

hard

toward

stockholders

working

are

this

end.

also

are

service, this attitude

has, I believe,

on

stockholder relations.
when
it has

services

our

company

our

We

send a

we

find

dividend.

our

thing of interest in the operations

part

these also, so that the writer

will know that

appreciate his

we

thoughtfulness in telling

of his
and his

us

confidence in the

the

people, if

Skipping

to

try

mass

ceived

convincing.

are

we

the

for

throughout

the

other parts of the press, comments
about

operations of the

its

subsidiaries,

something nice
other

thanks

for

of our people
thousand and one

of

matters

company

one

has done, and a

current

interest

to individual stockholders.

his letter

had made

we

follow

to

ence

sonal

Conversely,
not good,

These quarterly inserts serve

feeling

the

foster

the

among

ters

let¬

with

sent

the proxy. These,
have to do largely with
suggested by the con¬

of course,

per¬

been

most

of

most

have

us

not

why such calls should

reason

no

limited

to

stockholder

thing

where

cases

is

have done.

we

when

100%

the

per¬

the good—

stockholder

is

friendly in the first place.

Some

companies go quite far
direction—in

this

the

some¬

Every

sonal contact is all to
even

of

critical

fact,

in

Of course,

the

in

the
large size of stockholder families
these days adds tremendously to
involved

But I think it would

of this sort.

each of

pay

plan

set

to

us

resentative
these

program

a

for

up

calling

on

should

be

rep¬

And

stockholders.

calls

sys¬

a

made

by

people in the organi¬

The effect of such

a

pro¬

would be cumulative as the
go by. We don't need to try

gram
years

portant

nancing

cable stockholder correspondence^

stockholders, it appears that they

what their

\$ee

for, but everybody likes to
the wheels go around whether

see

they own
they like
along and
They are
holders.

definitions

the wheels or not. Also,
to bring the children
the children like it too.
the new crop of stock-

of other

to

as

do with

but it had

The

great

a

interests

man

write

the company.

the

terms

These questions are
important to the stockholders who

these must

be

answered

promptly and fully
All

the surveys

holders
what

^reat
want

of what stock-

majority- of

to

know

vested,
•

u

about

any

and

the

what

was

ered
,

hh1i<?9tlnn«

Meeting-

Stockholders
t

nous

vi

™

means

we

^rd

reviey She vahave at hand in

Oit fki

obligations and

mt

mSw'qtiSkhftiHpr

ie

iwrtant
portant.

the Bell

Wp
We

in
in

}




piled

was

their

readers

to

questions
started

they
the

might

flood

have,

all

all to the good.

use.

And it

cov-

objective

of

these

proxy

is

to

letters

an¬

and

promptly, fully, and
frankly—and with as much of a
personal touch
is

one

I

am

a

as

is possible. Each

individually answered and
that the

sure

form
It

recipient hag

letter.

has

surprising

and

the

new

-+ure" stockholder. With the booklet

Wltb a

System,

is
a list of Several other pamphlets
dealinS with various phases of the
operations

of

the

company,

and

every

letter

whether

feels that this is well worth while.

Often

the

letters

contain

from

stock¬

suggestions

for

the company or complaints about

to

enthusiastic and friendly.

If the stockholder's

reply is

ly

our

conclusion of

a

we

usually do not

other

hand, if

answer.

some

open or some other

always
think

mere¬

discussion
On the

point is left

point is raised

answer.

that

before

something

are
doing or the
doing it. Answering
these letters is only meeting our
obligation half
way.
We
also
should pass the suggestion or com¬
plaint on to the proper department

way

we

we

are

talk with
the airri3

campaigns

among

in favor

ers

social

I

cause.

should

we

of

do

stockhold¬

our

against various
political ideas. Most com¬

or

or

panies : receive suggestions
they do jtrst' that. I know
there
it

a

that
that

a

of the company or its welfare.
The
owners
themselves hold personal
views

these subjects which run

on

the whole gamut of social and po¬
litical belief. Although some few
stockholders favor such action on

part, I

our

large
pect
ties

am sure that by and
stockholders do not ex¬
to undertake such activi¬

us

wish that

or

do

we

so.

Previously I mentioned the in¬
routine

numerable

contacts

with

stockholders during the year about

address,

dividends,

bond conversions, lost

changes

of

certificates,

similar

These

matters.

be

may

that

tant

be

we

prompt,

these

of

dling

contacts

telephone, or
Again it is impor¬

letter,

by

under¬

matters,

are

the general

correspondence. Each

not

personal as

as

its bearing on the
of our stockholder rela¬
tions, especially as they run into
such large numbers. During a re¬
these

of

has

quality

cent year some

of

285,000 such

handled

by

cases

company.

our

item alone—about 30,000

one

stockholders die each year

our

working day. It is
during that year,
total contacts with security hold¬
100 per

—some

that

estimated

others

and

ers

in

interested

the

securities,
by
mail,
telephone, and at the counter, in¬
cluding dividend checks, proxies,
company's

reports, prospectuses, war¬

annual

rants, and security issue subscrip¬
tion and rights transactions num¬
bered about 10 million.
I quote

indicate the
cumulative effect of alt
contacts added together and

these figures only to
of

our

choosing the
each of

the

importance

best

of

Even in these rather

the

transactions

friendship
cently had
with
of

can
an

impersonal

spirit

of

real

be forged. We re¬
exchange of letters

stockholder about the loss

a

three

"Well,

certificates

stock

this

I

just

found

which

letter:

with

ended

darn

the

things, by accident. I was telling
my neighbor, after the third cup
of hot buttered rum, that there
was

an

organized social life in the
To refute his inco¬

insect world.

herently expressed doubts I strode
with dignity to the crowded book
case
and
picked out J. Henri
Fabre's 'Life of the Fly' and there,
next to the chapter on the Blue
were stock my three lost
certificates.
That's a good book!

Bottles,

I commend it to you.

...

You may

withdraw the 'stop transfer'

and what not. All is normal

I find that this makes

stockholder has taken the trouble

same

easier

to

write

what

he

a

large

a

really

confirms, is
majority of stock¬

holders intend to hold their stock
the long pull.
I think this
should be an important
part of
our mental
picture of the stock¬
holder.
By and large he is not

for

the "in and out"

type.

write
the

because

welfare

he
of

is

thoughts

have

is

gone."

Everyone

happy.

was

received

careful

far-reaching prod¬

uct of good and

the

friendly spirit.
Conclusion

In

conclusion

gether
Good
come

a

few

let

stockholder

bring

to¬

thoughts.

relations

from the very

muss

denths of us.

We must believe in it

wholeheart¬

edly and must live it every day.

Lip service with

velopment of

there

real public under¬

me

these

of

intelligent stock¬
holder relations is the gradual de¬
a

So many

interested

consideration by the experts and
that they have been acted
upon
if they have merit.
Another and

rum

his

company,
and he is entitled to know that his

I■

I

them.

of these little incidents end in

of

I

methods of handling

or

indications

'■;?

even

though they

advised what ultimate disposition
was
made
of
the
matter.
The

is concluded he should be

;

han¬

our

Very often the letter gives rather
she is like.

1

our

that

case

»•»

■* ',1

in these matters, unless there
direct bearing on the business

The

the

?"
r.

cor¬

us

of

any

v.^1

should not attempt to
thinking of its stockhold¬

lead the

is

*

agreement
this point

is

poration
ers

entire

corporations on
my feeling that

among
but

not

is

'

undertake

to
reply to a letter we
should try to visualize the writer.

starts

'J.

not

notice
again.
I have the stock, my neighbor has
stockholder should
be
told
this is being done, and when more respect for bugs, and the

of the company for study and for
action where action is called for.

that

to

I might

the Presi¬
from
addressed
to him or not, except those deal¬
ing
with
details
of addresses,
transfers, subscriptions, etc.
He

a copy of the latest annual report,
sent

This

our company

reads

stockholders,

to

are

closer relationship.

that in

dent

in

statement,

a

say

per¬

together with the latest quarterly

company.

results in continuity of personality

sonalized reply. Another
point
which the surveys
bring out, and
which our experience

our

the

officer of

ble

improvements in the operations of

it

time that

practi¬

as

me

beyond.
same

far

so

how many of these people
reply
to our letters and
they nearly al¬
ways are

American

we

about

possible

feeling that it is im¬

that in

holders

been

once.

by forms, should be written or at
least signed by the same responsi¬

feeling that he has been sent

no

clear

not

during the

comments

I

work, but it

Our

each

swer

we

lot of

flood

a

period.

Professors asked for huna

throughout

the year, and the second class be¬
comes

I have the

outside of routine matters handled

steady stream of let¬

a

ters from stockholders

over

meant"

various

do it all at

to

^come letter goesBusiness," and
out, a booklet,
A< T- & T- Your

'°

u

our

told

At about the

tn

^

trying to meet

desk

and

The first class of correspondence
constitutes

The next day
my

proposals,

facts set forth in the statement.

only our Bell System
stockholder family, but went well

lush these facts to them at
every

opportunity.

understand to
after

didn't

me.

dreds of conies for classroom

This

We should fur-

x?.re

who prepared the quar-

and

This

they have in-

their products,

tremendous reception,

mailing,

stockholders again.

more

companies in which

nothing

write in for the quarterly and ask

about and
show that the

want

had

operations really,

our

a

they
to

story

thinking

are

they

our

high with letters and the phone
rang all day.
This kept up for
some time.
Then two nationallysyndicated columnists took up the

raise them,
and they should ,be
equally important to the company,

of

we

with

terly included the suggestion that
if there were still other financial

in-

dicated by the questions they ask
about the affairs and operations of

Each

This

various issues.

—

cou-

words

—

in connection

used

terms

bonds, stock,

warrants, etc.

p0ns,

had

One

Stockholders also have

financial

of

like debentures,

be

variety

we

owners'

share

of these days they
buying one share and
starting up the ladder.
will

included in a
quarterly a few

Not long ago

Used

from

receive

we

happy to receive this material.

are

has been

money

letters

this

that

mean

Take

—but most do not.

have been found to be most helpful. Stockholders not only like to

of

our

as

'i

in

furthering

were

work

0?

and objectives of our
companies-,
and their problems—we
may well
be playing an important
role

of

some

tents of the proxy statement, such
as
stockholders'
resolutions, fi¬

ber

of

of life, and
stockholders

the companies represented here do

questions

is

root

very

our

standing, and efficient in

There

talk.

going on and are part of ...the
undertaking. From the large num?-

point of

the
way

personal call.

stockholders that they know what

this

success

half far enough with these
personal calls
on
stockholders.
Nothing takes
the
place of
a
gone

products and
services furnished, plant tours for
stockholders, as well as customers,

On

the

estates, stock transfers, and other

think

I

substantial

to

have

productive.

zation.

ter.

are

In fact, these

contacts

time—either those written
proxy or

these critical

of

personal visit or a

a

telephone Call.

the face of

a

friend by the ex¬

a

many

letters with,

across

include

to

company

knew

we

change of correspondence.
We have found it advantageous

proxy

the

whole tone of

such that

was

with

of

We have had

basic view, yet the

tematic

The second class of correspond¬
arises from the comments at

some-

do, and that we
forthright in our

instances
where,
al¬
though the stockholder stated that
he or she had not changed his

is

generated by stories appear¬
in the financial columns or

ing

believing

repeated

be

about

correspondence

we

and

discussion with him.

re¬

letters

changes of address,
dividend checks, lost certificates,
bond conversions, etc., the stock¬
holder
correspondence
tends to
fall into two general classes. First,
year

frank

are

we

have

we

for

reasons

acting as

or

the

moment

of routine

substantial

that

see

that

broadminded,

are

what

of

really means to the peo¬
ple of this country. This goes to

friendly face-to-face

is the company to these

company

great

stockholders

the

To

say

the stockholder will

the financial reports for the quar-

on our

adverse effect.

an

In

tion.

our

of

our

real effect

a

Each company has other printed

very

As

users

Usually

is what the company
Our interpretation of the

we

thinks.

or

friendly vein,

a

try to
have their services as good as
possible. I think that the public
we

what

of view, and

about it.

started

sure

which

subject in itself,

have studied from our

of the Bell System operating com-

progressed.

This is
we all
own point

the annual report.

course,

able response.

and

relations.

good

company.

us.

Another effective contact is, of

their objectives in acting as directors. This met with a very favor-

panies,

and

with the greatest enthusiasm and stockholder initiates the corre¬
a great many of the new share
spondence. He has something 011
owners write letters of apprecia- his mind
which he thinks is im¬
tion to our President. We often
reply to these letters of apprecia- portant enough to write the man¬
agement about. Certainly he de¬
tion and certainly do if they con- serves an answer and I think it
tain any other comments or ques- should be the best
possible answer
tions. The welcome letter also
that can be made.
Those of us
states that we would be glad to who are
charged with this dayhave any suggestions the stockto-day correspondence with share
holder might have for improving
owners play a very vital part in
our services or operations. Many
the stockholder relations of our
take
advantage
of
this
and

management to the stockholders, I
as

to make avail¬

So much for the printed or form
cordial. The
material. The correspondence with
resulting letter is as near to being
stockholders, which goes on every
a personal and individual letter
day, constitutes a continuing vehi¬
as is possible with such a large
cle for establishing and maintain¬
number. These letters are received

friendly

be

to

favorable picture of

a

of the program is

this part

has been carefully prepared so as

we can

that, the share owners will have in

their minds

business

company
lieve, send a "welcome letter to able to the stockholder—and par¬
satisfaction with the management.
each one of these new stockhold- ticularly the new stockholder—as
The critical letters are, of course,
ers. As you can appreciate, this is much information about the busi¬
quite an undertaking for us as ness as is reasonably possible and most important. They should be
promptly and special
we have from 150,000 to 200,000 in a readable and interesting form. answered
new accounts each year.
These The purpose is to have the stock¬ care should be given to be sure
welcome letters are on engraved holder feel at once that he holds the reply is friendly. If a stock¬
letterhead bearing the President's an important place in the com¬ holder has a firm point of view on
name. Each appears to be an in- pany and that we want him to be a subject, I doubt if we are often
dividually typed letter, signed by informed about its operations and successful in changing his mind.
the President, although the body affairs.
However, our letter can still be
of the letter is reproduced by the
productive by setting forth our
Correspondence With
"letter press" method. The text
point of view in such a way that
Stockholders

objectives

and

standing

their

on

send them out

We get

The whole objective of

of

Thursday, November 4,
1954

.

complimentary

are

management and

requests for these pamphlets and

Our Friend the Stockholder
the company

the

to

face require no answer.

However,
I believe it is usually wise to an¬

in reading.

to

Many letters

the stockholder is invited to check

from page 14

'V

a

..

(1852)

hind it is
are

worse

no

no

sincerety be¬

than useless.

trick formulas

Also

—

no

'i

Number 5374

Volume 180
:

..

(1853)

The Commercial and Financial Chronicle

.

:<?

ghort cuts. It is everybody's job
all the time—during good times

are

special

why

reasons

public

Car

service

organizations owe it to
themselves to develop and main¬

and bad.
We must never forget that we

tain

the

best

possible

relations

with their stockholders.
is this consistent with a

trustees—custodians. Not just
custodians of the money stock¬
holders have put in our businesses,
but—and possibly just as impor¬
are

Not only

lic service

good pub¬

job, but utilities,

than most other
concerns,

more

have to

custodians, of what these keep going to the public for new
millions of stockholders think and capital, and with earnings limited
feel in their hearts about business by regulation we need the utmost
of
our
and businessmen. This is a heavy understanding
problems
responsibility and one which is and our efforts.
Our correspondence with stock¬
with us every minute of the day.
The probability is that the typical holders is an important method of
stockholder is not an A. T. & T. establishing a corporate personal¬

7.3%

the

ity. The stockholder who

company owner, or

of shares in any

owner

ceives

one

been

More likely he or she
owns a few shares of this, and a
few shares of that, and perhaps a
few more shares of something else.
So he forms his judgments and
opinions about large corporations
company.

the

and

them on

the

in

personality

of

the

important,

company

he

will

talk

Stockholder relations is of the
companies, and the basic
sibility for it is ours. I

the better the job each of us does

that

relations with stockholders

a

like

our

corresponding

U. S. Auto
The

1954,

1953

week,

and

decrease

a

building

can

we

more

the

up

confidence

Last

the

week,

week.

and

is

a

for one,

Perhaps it can be said that there

it

is

our

to its owners.

company

It

public.

and

Past Week

challenging job—and I,
find it to be most inter¬

esting and

dipped to 223 in the week

failed.

ity

Continuing below the

was

189

of

this

size

recorded

Small

among

last

$5,000, which dipped to 30 from 47
with

even

The State of Trade and
week

to

84,055 units, a 41.7%

gain

Industry

toll

Wholesale

"Ward's" estimated United States

truck output

in October at

Output Scheduled to Rise to 75.7% of Capacity

Steel

ingot

output

the

is

highest

since

last

January,

says

"Steel," the weekly magazine of metalworking.
It's up to 75% of
capacity, only six-tenths of a point below the year's high mark
in the last week of January.

Optimism is in order, states "Steel," pointing out that steel
inventory Teductiom is practically completed.
The automobile
industry, largest consumer of steel, is resuming output after model
changeovers.
Construction, second largest user of steel, shows

The

dustry is expected to

& Laughlin Steel Corp. will spend $50,000,000

plant and equipment in the Pittsburgh district.
nearly double this year's $29,000,000 expenditure, it

is

sum

in 1955 to improve

its

expand

states.

in

"Steel's"

of steel inventories is about

Return

of

be

the

Notable

Within

week,

a

automobile

detected

demand.

in

in

for

industry

one

market-place for
steel that are in growing

is

category

instance,

the

of

forms

the

this

this product three weeks.

reason

cold-rolled

to

carbon

mill extended

Now, it needs

seven

sheets.

delivery

dates

to eight weeks,

the construction

construction—non-farm houses—saw 114,000

starts in

September, contrary to usual seasonal trends. This num¬
ber exceeded
August starts by 3% and those of September, 1953,
by 20%.
The American Iron and Steel Institute announced

that the the

operating rate of steel companies having 96.1% of the steelmaking
capacity for the entire industry will be at an average of 75.7% of
capacity for the week beginning Nov. 1, 1954, equivalent to

1,804,000 tons of ingots and steel for castings as compared with
74.5% or 1,776,000 tons the actual output of a week ago.
The industry's ingot production rate for the weeks in 1954 is
based
For

on

annual

the like

capacity of 124,330,410 tons

week

month

a

duction 1,692,000 tons.
was

A

year

placed at 2,096,000 tons

ago
ago

or

the rate

as

was

of Jan. 1, 1954.

71.0% and

pro¬

the actual weekly production

The operating rate is not
in 1954 The
based on annual capacity of

93.0%.

comparable because capacity was lower than capacity

Percentage figures for last

IH,547,470

tons

as

of Jan.

year

are

1, 1953.

Electric Output Declined Further the Past Week

industry for the week ended Saturday, Oct. 30, 1954,
9,152,000.000 kwh., according to the Edison Elec-

}vas estimated at
tnc Institute.

-

e

^is

represented

previous week
week in

wholesale

an

and

1952.




an

from

Coast

the

corre¬

—2

to —6; Souttn.
-f-3 to +7, and the

and Southwest

Northwest—3 to +1.
The

.

demand

for

apparel

Sharply

months,
of

food

a

to

top

year ago,

ex¬

the

sales

figures

;

t

,

a

rise of 3.4% above the

com¬

price

pound of
and its chief function
per

Retailers

of

household

foodstuffs and meats in general use

raw

is to show the

general trend of food prices at the wholesale level.

Wholesale

last

slightly rising sales
as
they heavily pro¬

week

moted reduced-price merchandise..

However,

consumer

furniture

and

short

year

Commodity Price Index Increased Mildly
In the Latest Week

Following
turned

downward

slightly

from

to

close

276.08

a

277.49

at

earlier

week

on

Oct.

and

26.

This

was

with

compared

up

271.73

comparable date a year ago.
Price improvements in the principal grains continued irregu¬
with wheat and oats scoring sizable gains, while corn, rye

lar

soybeans suffered fairly wide losses.
Wheat

hedging

displayed

pressure,

indicating

a

a

independent
slight

pick-up

strength, reflecting a lack of
in flour buying and reports

further reduction in the Canadian wheat harvest.

Primary market receipts of corn last week totalled 5,000,000 bush¬
els, against 3,900,000 the previous week, and 15,100,000 in the same
in

soybeans

based

was

improved

on

harvesting

weather in Iowa and Minnesota.

Flour

on

the

long

awaited

export

business

with

West

Ger¬

Buying of
Spring wheat bakery flours was somewhat better and bookings
of hard

prices developed

firmer trend last week.

a

Winter wheat flours

were

more

numerous.

Demand

was

helped by some mill price concessions but commitments generally
were
small and mostly for immediate and nearby.
Spot butter

under a further
accumulation in wholesale distribution channels.
Egg prices were
firmer with supplies light to moderate.
Spot cotton prices trended downward throughout the week
with easiness attributed to persistent hedging pressure, coupled
with liquidation and speculative selling.
Reported sales of the
staple in the 14 markets remained in good volume and totalled
450,400 bales for the week as compared with 440,000 bales in the
previous week. Consumption of cotton during September, accord¬
ing to the Bureau of the Census, averaged 33,300 bales per day,
as compared with 33,400 in August, and 36,100 bales in September
markets

lacked

support

prices

and

The

use

of cotton has been lagging behind

year-ago

levels for

consecutive months.

loan

entries

1954-crop

ended Oct. 15 totalled 57,300
The

cocoa

market

was

cotton

reported

in the week

bales, against 54,200 a week earlier.

highly

irregular.

After touching new

levels early in the week, prices rose and fell to close

with

a

104,857
also

a

stocks

of

cocoa

declined

to

98,174

bags,

from

week ago, and compared with 89,574 a year ago. Coffee
moderately higher following irregular movements

closed

during the week.
Rio

recent

were

conference

of

con¬

in

Con¬

the

models

con¬

healthy

condition

markets

;

past week

was

sus¬

transac¬

as

greater than the prior week

close
to
year-ago
levels.
Prospects for continued improve¬
ment during the rest of the
yeqr
are good.

Department

A firming influence was the prospect that the
producing controls, which started on Monday,

store

country-wide basis
the

Federal
for

1954,

last

week

9%

was

similar

Board's
Oct.

above the

the

in

year,

1954,

gain

a

of

23..

preceding

in

that of.

1953

for the four weeks ended

For

in¬

like pe¬

above

period

a

increase of

an

registered

on

taken from

ended

week, Oct. 16, 1954,
1%

sales

as

Reserve

the

rose

2%

while

Oct. 23,
noted.

was

the period Jan.

1, to Oct. 23,
1954, a loss of 2% was registered

from that of the 1953

Retail
York

by

trade

City

about

week

a

4%

year

in

the

the

above

in

the

trade

N

similar

observers,

important

factor

favorable

was

e w

advanced

fall

weather.

According

the

to

Board's

serve

store

week

ago,

An

rise

shopping

period.

volume

last

estimated.

Federal

index

sales in

New

Re¬

department

York

City for

weekly period ended Oct. 23,
an increase of 6%

1954, registered
above the like
the

1954,

week

cline

period of last

preceding

week,

decrease

a

ported

weeks

slight net gain for the week.
Warehouse

war

and

In

of

ac.

sold.

wholesale

tained

weakened

1953.

Jow

be

the

developed

1954

cars,

to

The

riod

many.

14

tinued

price

depress prices

dex

last year.

Weakness

of

Despite the introduction,

new

of

goods

level

the

tions in apparel, textiles and food

Oats were firmer largely in sympathy with wheat.
Corn
declined sharply under the influence of increasing country offer¬
ings of cash corn as the new crop movement gained momentum.

week

to

necticut.

the

on

of

gasoline

tinued

of

spending for

household

ago.

The

sharp rise early in the week, the daily wholesale
price index, compiled by Dun & Bradstreet, Inc.,
a

goods,

experienced

remained

31

.

increase of 119,000,000 kwh. above that of
increase of 790,000,000 kwh., or 9.4%
?.yer the comparable 1953 week and 1,399,000,000 kwh. over the
like
-t

Moved

The index represents the sum total of the

The amount of electric
energy distributed by the electric light
power

Bradstreet

Regional

ago.

year

Moderately priced c h i 1 d r e o'sr
clothing was increasingly popular.

CCC

®nd

&

a

varied

slightly last week a»d
continued, as during the past few

says

year. One segment of

now

Index

re¬

esti¬

was

panded

Easiness in rye resulted from disappointment that nothing has

industry is being counted on for
"Steel," is that it is expected in 1955 to con¬
tinue its $36,500,000,000 pace* which is setting a new record this

strong support,

•

as

Contributing to this week's advance were higher wholesale
costs for flour, wheat, oats,
hams, lard, coffee, cottonseed oil, tea,
cocoa, eggs, potatoes, rice, currants, steers, hogs and lambs. Lower
in price were corn, rye, barley and butter.

instead of four to five, to make delivery.

The

$100,000,

over

paper.

on

of

excess

week

by Dun & Bradstreet, Inc.,

Pacific

Fifteen

1953.

the

sponding 1953 levels by the fol¬
lowing percentages: New England
and Midwest +2 to -(-6; East and,

and were about
of

dollar volume of

in

1.8% over last week's $6.59, and
parable 1953 week at $6.49.

latest

quarterly survey. Sixty-five percent
of the respondents plan to hold inventories at
present levels. This
means
they will have to buy at least for current consumption
levels, which are pretty good. Three months ago, almost half the
users
said they planned further cutbacks, observes this trade

can

Price

up

and

Confirmation that reduction

Dun

commodity

business improvement.

see a

Demonstrating confidence that the future will be good, Jones

steel

ago

week

in

and.

Among the most popular items
were
men's topcoats and haber¬
dashery and women's sportswear-,

evidence of remaining at a high level.
Non-farm housing
starts are rising, in defiance of the season.
New emphasis is be¬
ing placed on selling, even to the extent a steel company is push¬
ing its customers' products—appliances. The farm equipment in¬

is found

week

a

similar

Midwest

price index turned
sharply upward last week to regain most of the ground lost dur¬
ing the previous four weeks. The index went to $6.71 on Oct. 26,

every

That

the

liabilities

Higher the Past Week

63,500 units against 67,180 in September.

and

in

29

with

Food

unit total.

Steel

of

succumbed

total

estimates

with

compared with 13 in the preceding week.

the prior week's 59,302-

over

their

businesses

ex¬

lift sales

helped to

the

the level of

of the week's" decline
liabilities under

All
those

year.

casualties,

trade

cities

to be from 1% below to 3% above

pre-war

V'

occurred

in

trade

mated

level, mortal¬
down 26% from the toll of 300 in the comparable week

1939.

of

:

center*

retail

diversified

crops

The

involving liabilities of $5,000 or more increased
slightly to 193 from 182 in the previous week and exceeded the

Continued from page 5

of

tail

Failures

lot of fun.

a

unfavorable

m

ago.

year

Northwest.

ended Oct. 28 from 229 in the preceding week, Dun & Bradstreet,

concerns

than

industrialized

more

volume

believe

a

was

money

counters

perienced steady gains. The com¬
pletion of many harvests and the
sale

136

support of this important segment
of the

while

r.

Commercial and industrial failures

more

retail

reported

Mild Declines In

parts of the
period ended on.

year,

at

Heavily

and 942 trucks in the comparable

Business Failures Record

most

the similar week

Inc., reports. However, casualties remained above the 218 occur¬
ring a year ago and were considerably heavier than in 1952 when

individual

an

this

of

"Ward's" estimated Canadian plants turned out 3,030 cars and
trucks last week, against 2,640 cars and 434 trucks in the

1953

in

the

in

spent

reported there were 18,882 trucks
against 13,653 (revised) in the previous

cars

Week

Wednesday of last week. Unliko
the buying pattern during most

country, as
week and 14,594 in the like 1953 week.
475

trade

nation

agency

made in this

Seasonal

cooler weather combined to boost

retail

turned out.

were

by

Spurred

Aggressive promotions and

industry for the latest week, ended Oct. 29,

138,370 units

ty,,

rost*/

Weather Lifited Sales In

according to "Ward's

1953

Volume

Promotions and

Automotive Reports," assembled an
estimated -35,173 cars, compared with 45,649 (revised) in the pre¬
vious week.
The past week's production total of cars and trucks
amounted to 84,055 units, an increase above the preceding week's
output of 24,753 units or 41.7%, states "Ward's." In the like week
of

Hogs

1954 lows early

new

Latest

duty to interpret the character of

to

Trade

Output Advances 41.7% Above Previous Week

automobile

proposal

week.

strike in the coal industry.

a

some

market

the

hitting

in the

of

our

the

after

1.9% below the corresponding week in 1952, which

respon¬

has character just

company

the

cars or

preceding week and 5,999

greatest importance to all of

stabilize

revenue

affected by

was

And what is

about it to his friends.

wisdom of investing in
the basis of his total ex¬

contribute

up

definite impression of

a

and its management.

equally

re¬

I have

answer

referring to will build

his mind

perience with all of them. Hence,
in our

the kind of

below

14,766

develop

may

freight for the week ended Oct. 23, 1954,
increased 24,605 cars or 3.4% above the preceding week, accord¬
ing to the Association of American Railroads.
Loadings totaled 746,007 cars, a decrease of 58,406 cars or

tant—

owner, or gas

Loadings Make Further Gains In the Latest Week

Loadings of

from
in

of

that

8%

the

16,

was

re¬

similar

1953, while for the four

ended

of

of

year.

Oct.

4%

Oct.

23, 1954,

was

reported.

a

de¬

For

the

period Jan. 1 to Oct. 23, 1954,

no

change

was

that of the

1953

registered
period.

from

'The Commercial and Financial Chronicle

'30

N.A.I.C. Reports on
Plan Investing
ulation

Canada Funds

vPfl,s

Complete Merger

the
i

n

Shareholders of Canada General

Inc.
voted
to
approve
of the company into Can-

Fund,
merger

ada General Fund (1954) Limited,

,t was announced today. As a resuit, the former fund will be dissolved and its $21,000,000 diversiportrono

Canadian

01

issues

to the newer

be transferred

will

issues

Canadian

of

nnrtfniin

fipd
fied

which will then have resources of approximately $51,000,fund,

UDon completion of the merger

ited will be the
nwnpd

shareholders

whiclf inve^tT prtaarUyTn

Cana'

dian seeurities
dian securities.

for

an

of

merger

basis of relative
per

asset values

net

share at the close of business
Nov. 5.

an

future growth of that coun-

-n

try,s dynamic economy.

T.

on

Vance,

United

of

cessive amounts 01

Ao.nHatinn

fund members of the Association

which have such plans were represented in this rep .
such plans
it was
estimated,
representing a total
investment value of $298 million,
or an average per account of $1,192,000

of

total

a

in effect on Sept. 30,

were

4^ ono

prn

hsve

nlcins

npw

published 550. Over 45,000 new plans have

some

amounts

S X Y

Companies.

,

"Contrary to

comments to the effect that

been

ex-

States

united states

started

months

in

tne msi nme
the Association

1954,

of

.

tine

that

on

capital are being channeled into points out estimating that on
Canadian securities by American Dec. 31, 1953, about ,145,000 plans

,;
that'the
sbould be kept in mind that the
.

,

.

.

,

.

the merger,
President, ob-

,

Z^l^ani Mon' add t0earnings with regular CUr"
^ h°ld^S °ut ,°£ In¬
the Toronto and Mon- renj.

s^°cks on

gtQck

Exchanges

about

is

whereas
the
net
united States purchases of Canabillion,

$35

for

stocks

dian

months

ot+

most accumulation
plans bave. er\ undertaken by
investors of modest means who

^nnecfin"?! represented

s

the

this

of

should

first

seven

only

were

year

one-tenth of 1%

^ )V Commenting

Henry

piow back earnings, with litn0
tax dilution,, makes it
jdeal vebicie for participating

treal

the

provide
exchange of shares on the

Terms

retain

to

or

Urn-' »°™d 1SrT%h

largest company,

American

hv

an(j

Limited

(1954)

by the

report

a

of that figure.

also

vestments of $25

$50

vestments 01

or

W

$100.

*1UU'

assets of Investors
Mutual, Inc., largest of three mutual funds sponsored and manNET

TOTAL

aged by Investors Diversified

Services,

be Temembered'

Inc.,

from

rose

$472,-

situation

to

seems

with

spond

to

us

of

that

the

corre-

United

7 MUTUAL INVESTMENT FUNDS

360,654

the

in

expanding Canadian
economy substantial new capital
is needed, not only for new in-

This increase more than doubled the rise of the previous fiscal year (which amounted to
$73,830,860)
and marked the
highest peak attained at the end
of any fiscal year in the history

new
facilities to
with the growth of
population and national income,
As Mr. Rhys M. Sale, President
of the Ford Motor Co. of Canada,
recently commented:

companies
keep

NATIONAL

for

pace

0± the Fund,

"'While

we
are
proud of our
independence, we do not
object to the influx of capital. On

financial

SERIES

the

contrary,

it and

need

we

we

over

350

secu¬

rities of American

will

come,

cor¬

paid

of

Canada

in-

30

Nov.

to

Sept.
30, 1954, Fidelity Fund, Inc., reports an increase of 62J/2% in net

and address.

NATIONAL SECURITIES &
RESEARCH

assets to

CORPORATION
York

Net
'i 4

"

■:

high total of $133,-

752,411
from
$82,303,165
Sept. 30, 1953.

Establish*! 1930

120 Broadway, New York 5, New

a new

asset value

as

•

1954,

was

$22.22

with

pared

per

$16.24

of

as

Sept. 30,
share, com30,

Sept.

Cjfie ~Seorq«
ing
*j.'

PUTNAM

The fund

5,066,393
owned

a

Mr.

Sent

^ 'Oooiton

to

business

typically

'Increased

Mutual

Fund, Inc.

per

share

increased

from

$44.50

on

June

30,

30, 1954, to $48.59 on Sept.
1954, or 9.2%, while the rise

in the Dow-Jones Industrial Aver-

dur^n^

THE COMMON

same

The

report

of

Group Securities, inc.

the

12

the

net

asset

from

states

months

that during
Sept. 30, 1954,

to

value per share in$34.65 to $48.59, or,

adjusted for the
lnno_+f»rm

reinvestment of

tal

gains,

from

$40.78 to $60.96.
The
the

report

net

assets

stocks

such

further
of

states

the fund,

that

which

from

$1,924,614 to $4,663,233 durine
ne
12 months to Sent. 30
Sept. 30,

The report noted

prospectus

on

request

from your investment dealer

Income

increased

from

Distributors Group, incorporated

June 30, 1954 to $12.48

63 Wall

1954,

Street, New York 5, N. Y.




assets

The

report

increased

$605,392.

$11.67
on

states

from

emphasized

those

continued

have

■

and

to

line

In

and
,

increased
in
Blockson
Chemical by 8,000 shares, McGraw Electric
by 3,000 shares and Shamrock Oil and Gas
by 2,000 shares.
The fund's holding of
Emhart
Manufacturing
was
reduced
by
were

shares.

$146,786

on

1, 1949 has grown to $16,614,077 on Aug. 31, 1954 and are
presently in excess of $18,000,000,
Texas
Fund
reports. Net - asset
Aug.

value

31,

Aug.

$4.83

year

a

During

the

eliminated

Antonio,
Potash

$6.06 as of
compared With
earlier.

share
1954,

per

was

past

Bank

National

Frost

Chemical

Mathieson
of

Company

Transmission

Fund

the

year

of

been

Central

in

West

South

&

Texas

Utilities

Electric

Longhorn

Company,

Company,

Cement

Portland

Company.

in

30

total

value per

and

Net

net

assets,

of

Sept.

which

of shareholders.

of

$12,056,956

increase

an

of

value

repre¬

$3,021,105

share

per

represented

of

$31.45

of

increase

an

Annual

for¬

$5.94

rate of income

during the

reduced

were

stock

common

report

states,

in

the
business recession, from

signs of recovery

inconclusive, is to

be

still

are

attributed

to the restoration of confidence of

businessmen

and

investors in the

outlook

the

of

United

States.
NET

ASSETS

Investing
in

the

of

Broad

Corporation

first

to

nine

Street

increased

months

$54,637,000

of

this

Sept. 30,
1^54, according to Francis F. Ran¬

year

on

dolph, Chairman of the Board and
President.

Ponting
fund's
record

that

the

mutual

Mr.

one

tors,

among

market

value

which

is

the

asset

value

another

$26.93.

This

$21.72
the

of

quarter

shares

high

expenditures

reported at the start
He added that In¬

into

$8,802,000 of new

the

corporation's
during the nine months.

IN THE PAST 17 years,

this

try has not suffered

decline of

a

coun¬

business

activity worthy of the
"depression," according to

term

the

October

by

the

"Perspective," issued

Management
De^rtment of Calvin Bullock:
While voicing disbelief that the
Investment

economic

cycle
has
been con¬
the authors express the
hope "that we have become eco¬
quered,

nomic adults and that the

quarter

was

with 3.75%

4.62%

on

as

compared

securities sold.

greater
knowledge of the elements of the
business cycle on the part of busi¬

increase in

net assets

months

nine

of

in

1954.

a

20.8%

the first

Total

re¬

government
able

them

cise

the

151

on

with

of the Fund

Sept.

30,

were

last,

$5,387,-

compared

$4,458,407 at the start of the

fi-,o

servants

in

the

future

economic

necessarv
sources

government and
should en¬

and

nessmen

HUDSON FUND recorded

to

keep

tMisiness

evele

to

exer¬

statesmanship
the swings of
within man¬

ageable dimensions.

"respite the giomy forecasts

Continued

year.

on

page

Fundamental Investors, Inc.

Diversified Investment

acce1-

and

As the Fund's investment
Investors Diversified

ager,

ices,

Inc.

plans

to

ex-

Fund, Inc.

Manhattan Bond

Fund, Inc.

man-

Serv-

maintain

re-

Diversified Growth Stock

and

Fund, Inc.

+•

on

nomic

specific

into

conditions,
business

general

but

also

enterprises,

eco¬

into
PROSPECTUSES

the

report indicated. For this purpose,

Sept. 30,

IDS is enlarging its already sizeable

net

to

of

investment analysts,

the Fund's shareholders were in-

formed.

AVAILABLE

FROM

YOUR

ON

LOCAL

THESE

MUTUAL

INVESTMENT

FUNDS

DEALER,

OR

Cleveland

Chicago
Los

staff

of

than

more

year.

vestors have put

capital

24%

was

share to

each

end

growth
with
concomitant demands for greatly

increased

of

Investing's holdings
by $9,653,000 to bring

population

erated

of

Randolph

Street

increased

the

the

has been

year

prpgress,

Broad

the

that

out

25th

asset

since the first of the year, and net
asset

a

of

share, shares outstand¬

number

assets

sented

net

on

modified

sharp rise in
the

said

Corpora¬

Service

Public

Community

States

and

Gas

The

San

Company,
Oklahoma
Southwestern
Public
Service
Company,
Southwestern
Life Insurance Company, Gulf Oil Corpora¬
tion, Anderson, Clayton & Company, and
tion,

Gulf

the

appreciation

prices,

has

Corporation,

America, and
Corporation.

Inc.

moderately to 51.72%.

economic

TOTAL NET assets of

Nation¬

under which the fund
investments for income

face of

eliminated.

6,300

with

operates,

through the purchase of 4,100 shares, whTe
holdings of American Cyanamid, Canada
Dry G1"iT"r
and Socony-Vacuum Oil
Holdings

of

Company,

mula plan

stocks.

Cup wa.s the only new name
the portfolio during the quarter

assets

amounted to $22,055,715 on
Sept!
30, 1954, a record high. This com¬
pares with $18,720,155 12 months

Lily-Tulip
added

NET

Securities

earlier.

100%

be

to

invested in common

that manage-

that

$476,641

common

expand its continuous investiga¬

1954.

Fund, Inc.

wide

portfolio.
practical purposes net as¬

For all

sets

TOTAL

Investors'

National

in

ture of American industry. This
view is predicated on several fac-

the

i qf»4

poits that its net asset value
per
share

careand

Petroleum

Coca Cola common.

is optimistic about the fu-

ment

tions, not only
VEGH

Amerada

favorable to growth
as

panded production.

bas__no_sales load> increased

de

of

petroleum

eliminated

American economy."

was
,

creased

STOCK FUND

Per^od

purchases

natural gas securities were
made," the report continues. "The
choice of those industries was
based on recognition of the essential position they occupy in the

re-

ports that its net asset value

tstatpri

tne report stated.

revlew>

fully selected
vboh

rennrt

Securities

preferred, Northern States Power
preferred, Chas. Pfizer preferred

invest¬

an

securities purchased

is held by fiduciaries and

institutions.
*

created

has

on

eh

&

Canada Dry Ginger Ale pre¬
ferred, Goodyear Tire & Rubber

seems
a

„(

Street, Boston
do

such

ment climate

proportion to the

folio in the early part of the year.

Gas

and Union
Paci¬

were

prob¬
background

activity

and that

able

23.3%.

port_

American

common

ing months, gradual improvement
in

or

th"e sPecurity

by approxi-

1008
ef

of 10%

Putnam Fund Distributors. Inc.

iftTtyvwvyTootMwei
mmwt

(consisting

American

were

fic common.

Randolph said that in com¬

ing

was reduced in
remainder of

year ago.

New securities

year.

to the portfolio

Electric

_

resistant to fluctuations in price)

tot"

M

cftftfiono

is

Snme

a

earlier.

TRUST

3520dh®,1!fre±Oiders' an
"To retain balance in the porttn?aT°
iim folio> renewed emphasis was
L
Ym Placed 011 the investment of new
k„„L.! ooilf a™ ?^ onl money in stable securities during
S joint ownership. mTh.ahaia2r:the iatter half" °f the £iscai yea>'
The bslsnce undpr review
the

FUND

50 Sttte

Lost

increased

19ft <v„
018 120 from
niR

*

of the

preferred,

investment
Randolph an¬
nounced, net assets increased to
$40,925,000 on Sept. 30, 1954 from
$31,789,000 at the beginning of the
year
and $28,707,000 12 months

highs

portfolio

$5,408,000 on Sent
$4,893,000 at th^

from

quarter

Mr.

Boston reports new

Fund's

to

1954

added

corporation's

the

o,f

holdings,

of securities considered relatively

j

4

ASSETS of Whitehall
Fund

start

The asset value at the start of the

SHAREHOLDERS'

the

4953
4

tbe

and

out that due to substantial increases in the prices of equity sepurities, the "stable" section of

of

on

this

A review of investment management policies and progress in
the Fund's annual report pointed

^OR. the OTTARTER ended

and mail with your name

30,

1954.

a11 dividends were being remvested by shareholders in additional .shares of the Fund, it was
reported.

Fund, Inc. of record Nov. 5.

prospectus, clip this ad

27%

darirJS the year. About 65% ot

General

information folder and

share at Sept.

per

number of
?
S^ew from 159,000
t° 180,000, an increase of 21,000
1954>

30,

representing

investment

net

be

shareholders

For FREE

porations.

dividend,

accumulated

objectives, currently in¬
vested in

final

A

to $16.27

1953

Mutual Funds with

Varying investment

increased

of

months

to $14.96 on Sept. 30,

year

NET

Principal increases in the portfolio have

asset value of shares of
Investors Mutual, Inc. climbed
from $13.46 per share at Sept. 30,
Net

welcome it.'"

7

nine

first

the

in

Eastern

SECURITIES

Cor¬

asset

the

that

reports

value of its shares increased

were

to $662,055,980, an inserves:
<
crease of $189,695,326 during the
"We continue to be most favorfiscal year ended Sept. 30, the
ably impressed with the long- dustries and natural resource ex- Fund's shareholders w e r e interm investment opportunities in ploitation but also as a result of formed in the company s annual
Canada.
In many respects,
the the requirements of established report.
that

poration

^°nal A^oci|"°" °fJ™®8'?*"}

that

T C^adfceVeral

ability

Fund

believe

Wp

af?n

en

nr

to

INVESTORS

NATIONAL

during the
Airlines
preferred,
American
year was $11.76.
" '
Cyanamid
Napreferred,
Continental
Baking
Primarily because of continued
preferred, New York & Richmond
improyement in the market value
Gas

investment companies, we have were in etiect.
£ound ,no Problem in obtaining
whUe larger investors are well

QO0

Canada General Fund (1954)

cording

in the period of its
industrial expansion, 40

early

modern

third

the

during

plans

quarter of 1954 for regular pur¬
chase of mutual fund shares, ac¬

By ROBERT R. RICH
States

17,781 accum¬

started

Investors

Mutual Funds

on

Thursday, November 4, 1954

...

(1854)

Angeles

San Francisco

Hugh w. Long and Company
Incorporated

Westminster itt Parser, Elizabeth 3, New Jersey

of

31

Number 5374

Volume 180

.

.

Continued

Our

Reporter

By H. E. JOHNSON

JR.

Week

the banking field clearly evident, it is now possible
formulate fairly definite ideas as to bank operating earnings
for the current year. Security profits are another matter, depend¬
nant trends in
to

entirely on the discretion of the various banks' policies. While
to be larger, the amount of such profits could be

ing

to have reached levels where
investors are being attracted to the outstanding securities, irre¬
spective of what may come along in the way of offerings in the
December retunding. To be sure, tne market is still pretty much
on the professional side, but investors have been taking a greater
The Government market appears

Bank Stocks

—

interest

first

the

In

nine

months

of

1954

operating statements pub¬
down¬

a

trend in loan volume and a rise in holdings of investments,
including U. S. Government securities. Thus interest received on
loans was lower by 3.2% and income from securities was higher

ward

This change combined with

by 12.1%.

It

seems

slight improvement in

gain in earnings from

a

attractive

matured

corresponding period of 1953.
0.8% higher.
the

These

changes

in

operating

Actually, earnings

were

earnings

for

nine

the

—Operating: Earnings-Comparative Percentage Changes* -Sept. HO

1954

1953

loans

$258,914

$267,392

Int. & div. on sec.

120,567

107,521

97,079

89,535

Other oper. inc.

_

12 Mos. End.

Third

!) Mos. End.

!) Mos. End. Sept. HO

on

inc. $476,560

Sept. SO

Quarter

-

1954

1954

1954

+ 12.1

+

4.5

' .2%
+12.1

8.4

+

6.7

+

3.2%

—

+

$464,448

—

2.6

+

(Sal. & Emp. bfts. $150,297

9.0%

+

2.8

—

114,181

+

101,669

Total oper. exp.

$264,478

$245,133

7.9

+

+

7.9

"Represents

.8

—

of previous

2.2

8.6
.3

—

-r—

3.4

+

2.7

6.6
'

year.

quarter, much the same conditions are

been evident in the earlier months.
show a good seasonal expansion.

to prevail as have

expected

+

-19.5

+

the similar period

changes from

In the fourth and final

6.9

as

There is still hope that loans may

of what is put

these

is

earnings this

Interest rates

credits

lesser

•

show

of
a
:

The

year ago.

as against 3V4%.
Other rates on
corresponding decline. Thus, interest on

a.

Offsetting this will be
and

a

service

the

earning assets

as

a

further gain in income from invest¬

divisions

well

as

a

shift of funds into securities.

of

banks.

the

A

larger

volume

lower loan volume has permitted
The larger income from this source

combined with increased earnings from trust and service, depart-

•

reflecting the high level of economic and financial activity

ments

The small gain

further increase in

Thus

expected in gross earnings will be offset by a
wages, salaries and other operating expenses.

before taxes is likely to show a larger
the nine months ended Sept. 30.

operating earnings

decline than in

1954 should be almost the same as in
1953. These are the general trends and, of course, there will be a
large amount of variation among' the different banks depending
earnings for the full

,

upon

year

their individual practices and problems.

In

contrast

to

with the opinions
be taken

those

pected to report very

;

the
tive

owners

that

are

goods and services at
the consumer level and result in
resumption of a rising trend of
of living, which has
been
static
in the last several

a

the standard

years.

"The rise in common

"While common stock

rest

Dow-Jones

"Package" Offer Expected

as

The

Chemical Corn Exchange

Also, some

No New Money

G. L. Peyton

'

"

'

*

\

''

to

the

Government

in

Colony and Uganda
26, Bishopsgate,
London, E. C. 2.
End
(London). Branch:

Kenya
Head
on

Re(iuest

Office:

■
West

Laird. Bissell & Mee»

13, St. James> Square, S. W. 1.
Branches
in
India,
Pakistan, Ceylon,

s

Burma,

York Stock Exchange
American Stock Exchange

NEW

YORK

5,

N.

Issue for 1954

take place in the way

Ventura Boulevard.

seems

in the

Joins Protected Investors
(Special

SAN

BAY,

GREEN

Wis.

Add R. E. Giorgi to

Chronicle)
—

Grant, C.

joined the staff of
Citizens Securities Company, 224

Street,

Cherry

(Special

has

Peterson

members

of

ert

La., M ontagne-Sherwood

With Citizens Sees.
(Special to The Financial

PALO

Giorgi

E.

to The

Calif.—Raymond

now

with

La

1-1248-49

Bank




Stocks

Fund-;

Reserve
The

Bank

conducts every

.

Financial

Chronicle)

(Special

BAY, Wis.—Joseph M.
Ferris is now with Loewi & Co.,
234 St. Francis

to The Financial

MIAMI

cently

Drive.

He has re-

been associated
Company.

with

the

undertaken

Co>>

InCM

u.

with

Schiffmann

Bache

(Special

rn.SAN
A.

to The

Financial

Bank

ORLANDO, Fla.

S. National

FRANCISCO, Calif.—Sam

Eichenberger is now with Wil¬

son,

Johnson & Higgins, 300 Mont¬

gomery

Street.

E.

to The Financial

of

Chronicle)

Conn—Mildred

Koger and
Hosko have joined the staff

Dimond,

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1

Lincoln

Chronicle)

John B.
the staff
First Florida Investors Inc., 19
—

O'Neil has been added to

BRIDGFPORT.

Chronicle)

Co.,

(Special to The Financial

of

(Special

is

With First Florida

is

Building.

With Wilson, Johnson

&

Chronicle)

Fla.—Bernard
now connected

King Merritt

Three With Smith, Ramsay

£4,562,500
£3,104,687
description ot

&

affiliated

BEACH,

Chronicle)

DENVER, Colo—John Shada
J^ilTJL,xv,
now

America, Russ

Road Building.

Merritt

Milwaukee

-£2,851,562

and

also

to The

Tanganyika,
Somali-

exchange business.
.Trusteeships and Executorships
banking

(Special

is now with Pro¬

(Special to The Financial

E.

Joins King

GREEN

Howard

Bache Adds to Staff

Mon-

erley Street.

With Loewi & Co.

Chronicle)

Building.

the tagne-Sherwood & Co., 418 Wav-

Exchange.

The Financial

Financial Chronicle)

ALTO,
is

C.

to

FRANCISCO, Calif.—Rob¬

tected Investors of

Staff

with

Protectorate.

Capital
Capital

Paid-up

.

this is still pretty

and

Authorized
Y.

(L- A. Gibbs.
Manager Trading Dept.)
in

Zanzibar,

land

Telephone: BArclay 7-350(1

Teletype—NY

Aden,-Kenya,

Uganda,

Members New

Chronicle)

Calif.—Gerald
L. Payton is engaging in a securi¬
ties business from offices at 12636
ANGELES,

LOS

•

•

Bankers

Opens

(Special to The Financial

of new money raising,
much a matter of conjecture. However, there
to be considerable of opinion that the Treasury will not be
market for new money during the balance of 1954.

As to what will

LIMITED

ol INDIA.

Specialists

has

1946.

bond which
the Treasury might offer in the December refunding will have a
specific maturity, with certain of the years in which there are
very small amounts coming due being favored.
>

NATIONAL BANK

Bank of New York

Be /

earnings."

appointed by the trustees as
Assistant Treasurer of Massachu¬
setts Investors Trust. Mr. StevensOn has been Assistant Secretary
of the Trust since July, 1951, an<f,£
has
been
with the Trust since

V

BROADWAY,

in relation to

been

work out in such a fashion that there will be orettv much of
an
exchange of bonds for bonds and certificates for certificates,
even tbougn the refunding operation win "ot be undertaken with

Midwest Stock

L'O

are

at

FREDERICK F. STEVENSON

"option" deal for the
will make the choice

such specific requirement in the exchange offer.
market specialists are of the opinion that the

per

PERSONAL PROGRESS

run,

any

a

relationship

the

of prices

them. It may, in the long

securities which are needed bv

to the

as

still well be¬
which pre¬
previous market peaks
and 1937. This is also true

criterion,

a

in 1929

going about is that certificates should be re¬
funded with certificates and bonds with bonds, and there aooears
to be considerable logic in such an idea, it does not mean that the

values

value, taking the
industrial companies

of'book

cent

vailed

will be made in any such manner.

a solid
foundation of
dividends and book

Market

values.

-

,,

profits of the banks will be materially higher than a year ago.

Members

upon

earnings,

as

feeling is that there will be a "package" or
holders of the maturing securities, and they

prices are

historically at their highest level,
it should be Yecognized that they

however, the New

rising and in contrast to the losses of 1953, substantial profits are
being realized. Thus for the full year 1954, total earnings and

Bulletin

cheaper dollar.

a

low

offering by the Treasury

and

of,

in, the enduring qual¬

ity of the rate of corporate profits
in the postwar period as the prod¬
uct of an expanding economy and

the short-term issues.

available in

be

regarded

past year can be
belated
recognition

confidence

2% bonds,
which have been rhort-term securities and have been held by many
institutions for just such purposes. These owners will most likely
be interested in getting near-term maturities for a large part if
not the bulk of their holdings in the maturing 2% bonds.
There
will be others who will not want the short-term issues, which will
be offered in the refunding, but will be interested in longer ma¬
turities with a higher rate of return. From this standpoint, there
is auite likely to be a sizahle amount of the maturing 2% bonds
which will be interested in going into a maturity of either eight
or ten years, which might be offered in exchange for the maturing
bonds.
In this way, there would be a bond offered in exchange
for a bond, and the income would be higher than that which would
there is the maturity of the

other hand,

'
stock prices

of the

Bond?"

as

the

for

mand

this.
a

large backlog of

the

activate

The commercial banks and the Federal Reserve

"Bond for

credit,, should
de¬

available

readily

likely be very much interested in such a propo¬

as

it

income,"

disposable

of

states, "and a huge bank of liquid,
savings, together with cheap an<

maturing, and

Banks would most

ahead, "Perspective"

a

level

with similar obligations in order to main¬

tain their liquidity.

common

prospect of some increase
consumer
spending. "A high

in

very

around now that the maturing certificates will
certificates. This would have aDoeal for

of the short-term securities

in

In the year

of by new

care

long range
stocks as
beneficiaries of this prospec¬
controlled expansion."
justify

"They

sees

which must be replaced

York banks are ex¬
large security profits. Last year after a long

1953,

J period of falling bond prices and rising interest rates, banks to
take advantage of tax losses sold or traded a large amount of
securities.
This year, on the other hand, bond .prices have been
;■]

cies.

confidence

important factor in the Government market, and this applies to all
phases of the market even though the intermediate and longerterm obligations have been under more pressure than the shorterterm maturities. To start with, there appears to be no question but
that there will be short-term securities in the year-end refunding,

As in the previous quarters, we would expect this decline to
be offset entirely by lower income tax accruals, so that operating

;

the Treasury

utmost

the

money

should continue.

-

of

While the talk

continue its downward trend.

loans is likely to

ments

would not be too great.

rate is now 3%

loaning

»prime

year

loans have also eased from

on

the authors as factors
importance in the
determination of investment poli¬
sedn by

are

December refunding should

doubt but that the December operation is a

no

continued

a

rate of economic expansion
and the evidence of more effec¬
tive control of cyclical variations

meetings.

There

of

prospect

high

forward by the groups that are called to Washington

However, there has been little evidence of any material pickup in
%oan volume so far and even should it materialize at this late date,
the impact upon

maturities both made to orderjor the

compounded."

annum

per

The

•

the Treasury with its own ideas well crystal¬
time, irrespective,

4.5

+ 18.8

-13.0

7.4

$109,853

+

+ 11.0

3.3

109,462

Net oper. earns. $110,757

..

+

$219,315

101,325

.Income taxes-

4.0

+ 4.8
+12-3

$143,464

Other oper. exp._

Bal. bef. Inc. taxes $212,082

4%

that they'will turn in the

lized will do what it has decided upon ahead of

On

.

so

A "package deal" is looked for,

to listen to the ideas which the bankers and
to how it should be done. But, herein again, as it

has been in the past,

sition
Gross oper.

ones.

ready

dealers have

months

City banks compiled by the First Boston Corporation:

Interest

new

of will be in full swing soon, because

care

is

usual

for

together with similar comparisons on a percentage basis for the
third quarter and the 12 months ended Sept. 30, 1954 are sum¬
marized in-the fallowing tabulation of"resurts of the 12 New York

V

institutions,,

for the

Conferences about how the huge
be taken

a

sults in New York City to show earnings approximately the same
in

years.

deposit banks.

as

as

these

to

ones

with the shorts and longer

which

expenses

result, income before taxes declined 3.3%. Lower tax
; accruals, however, enabled the 12 banks that report operating re¬
As

progress of
the past 15
Together these are pro¬
ducing currently a rate of eco¬
nomic growth equal to at least

logical

Refunding Meetings Imminent.

in wage costs and other operating
gained 7.9% for the nine months ended Sept. 30.
i;

time.

that the December

gross income was more than offset

by increases
1

growth accompanied by a steadily
rising standard of living, deriving
from
the
extraordinary techno¬

deposits, which are purchasing power. This is interpreted to mean
that the commercial banks will be offered securities which will
be

as¬

rate

growth appears to
be accelerating. The dynamism of
the American economy rests
in
the increased rate of population

intermediates and

of the

the feeling is growing

though

as

other sources raised gross operating income 2.6%.
This

certain

which

economy,

in

us

economic

of

refunding will be tailored to meet the needs of those tljat create

lished by New York City banks reflected the effects of

•

with

issues,

longs being bought in substantial amounts from time to

tney are sure

altered by action in the remaining weeks.

selected

in

(

the thirties, our

'mature'

a

sailed

This

from page 30

Mutual Funds

Governments

on

By JOHN T. CHIPPENDALE,

With ten months of the current year completed and the domi¬

31

(1855)

The Commercial and financial Chronicle

.

Helen

C.

Smith, Ramsay & Co., Inc., 207

State Street.

South

Court Street.

Joins Louis

McClure

(Spec'al to The Financial

Chronicle)

TAMPA, Fla.—John R. Munz is
with Louis C. McClure & Co., 617
Morlicnn

Qtroot

The Commercial and
32

Financial Chronicle

at

3

$Continued from page

plant

months,

more

.

4,

Thursday, November

.

1954

offset

to

there is a large volume of public
works which are in the planning
stage and for which the need is
urgent.

first

the

tween

third

the

and

rff ihic
of this

quarters

be-

government

Federal

the

bv

goods

of

purchases

vwr

.

year.

the

neutial tiends
should be men-

economy

tinned.

reduction

the

is

One

third

A

Three important
in

would be far better to let residential building level off at the sea-

because

rise will soon be resumed

influbillion in
and services

deflationary

the

of the drop of $5.7

in

over

a

,

sonally adjusted rate of the early/
summer rather than push it still
higher and perhaps incur a sharp
drop in residential building some-

,

prospective

important

time

in economic trends is the
inventory reduction.
For

change
end of

rent

period

stability

of

because

are

for

demand

A

goods.

the

purchase of goods and servby state and local governtiients.
Although outlays of state
and local governments have been
ices

political

obstacles

netting this authoritv exercised

dable
Consumer

flexibility are formi- '

Y

expenditures

dur-

on

but inventories are considerably a
infiuence for expansion,
lower in relation to productive These expenditures will be stimcapacity than a year ago and even uiated by the large volume of
a mild increase in sales would housing
construction,
by
the
create a low ratio of inventories growing vogue of air conditionthird. A third more or less neutral to sales. Consequently, the cut in
ing, and by the heroic efforts of
influence has been the purchase inventories
has probably gone the automobile companies to im¬
of durable consumer goods which about as far as businessmen are
prove
the sales appeal of their
cars.
A
number
of
increased from an annual rate of prepared to carry it. Even a drop
the
recent
$28.0 billion in the first quarter ln the rate of inventory reduc- trends in car design seem to me
to

rise in out¬
put and would, therefore, be an
expansive influence. If business¬

$28.5 billion in the third.2
Ill

Prospective

Changes

in

a

to decide

were

men

Trends

jn fac^ figures that will not be
avaiiable for a month or two will

probably show that the expansion
has aiready started. The expans^on wm be broadly based, resting
-

that the cut-

to

be

aware

backward

that

I

am

steps,
one

but
of

on
—

Federal
in state

small increase ™ the
in
cash deficit, a small rise
and local spending, an ina
-

w7

in spending on housing,
and on ap forms 0f consumption,
and a termination of the efforts
of business concerns to reduce

crease

inventories

IV

a

I

am

small

minority and that my taste in cars
is quite different from that of the

Characteristics of

the Recovery

within

u-ends

these

the

changes

balance

that

months

sion

What

has

f

%

v

the

for

nroduce

t,

a c

o

and

destroy

existed

will

and

ln

(.harirtpe

economy

will

exnan-

i

v«

w

k

policy, wnicn nas been a
tniluence tor

i

fiscal
powerful

contraction, will be-

to

^

10 ;oe

expansion.

What about the other trends in
economy9 How many of the
expanding influences will remain

such, and what will happen to the

^ome The
a mud influence tor expan- remaining' neutral and contractsworn
reason will not be an in- jng influences? Two of the prescrease
m
* ederal
spending begovernment expects that

cause the

us cash

outlays during the present
year will be about $3 bil-

xfscal

mn less than

lax

the previous year,

in

yields, however, are expected

tp drop

partly
rate

than

more

expenditures,

because of smaller corpo-

profits and partly because the

full effect

of

recent

tax

cuts

\*ill

be .felt.

eft

In consequence, the defithe cash budget, which was

in

about

$500

fiscal year,

million

in

billion in the present.
of

the
,

_

droD
,

„

cordina to
Bureau
the

in

last

About half

liahilitv

tax

' ln aV '
recent estimates

of the

half
halt

nr-

?,
the

,

liability

about
about

the

will rise to about $2.1

of corporations

in
in

dividuals.3

the

the

and

liahilitv nf
liability of

Under

cumstances,

of

Budget, will be in

present

immediate

in

in-

cir-

stim-

en^ influences for

expansion, outiays for services and outlays for
non-durable goods, will continue
to
be
sources
of expansion.
Qf
course,
these expenditures will
grow
provided personal incomes
grow, but to assume that personal
incomes

gain

distributed

was

follows:

as

Bullion

Housing

$2.0

—

Services

1.4

Non-Durable Goods

of the recovery is
be speculative and is
1
' "
quite likely to contain serious er¬
rors.
Nevertheless, I think that
such an effort is worth making
because it compels one to face
questions
that
one
might
not
otherwise explore.
I have already said that the re¬
covery will be broadly based. Fur-

1bound
*

2 It

be asked

of'$600 million
a«

in

inflationary

an

why

0.8

foreign

m

inHu^'nce

I treat

a

good

be

to

to pur

reason,

that

-

-

—

—

-

—

thermore, in asserting that

expen-

plant and equipment
will
slowly
decline
for
some
months to come, I have also asserted that the recovery will not
be spearheaded by a rise in outditures

on

lays on
outlays

on

respect

the

replacements
fixed

other

or

plant.

In

that

recovery will
differ
of the recoveries that

from

some

have

followed

depressions
during which maintenance and re¬
placements were drastically cut
and

new

severe

investment

almost

the

however, to believe
proportion of personal

CarS YiU
meantime,

a bi,«

tbe would otherwise be. I now come
to a third characteristic ot the re-

the makers will prob-

a^je
jncrease siowly covery—it will be sluggish and
the sales of their present poorly- the volume of output will not
designed cars.
grow rapidly,
I do not know what will hapI realize that that is a dangerPen to business expenditures on ous prediction to make.
It has
plant and equipment. In a short frequently happened that a re¬
time the McGraw-Hill survey and versal of inventory policy sudthe joint Department of Com- denly produces many shortages of
merce and SEC survey will shed goods and a vigorous scramble to
light on the spending plans of build up inventories which probusiness for 1955, or at least the ducers, only a few months earlier
early parto f 1955. The present were earnestly attempting to re¬
rate of outlay on plant and equipment (especially equipment) is
quite high and the rate has been
slowly falling for over a year. A
small fall in the fourth quarter
is indicated by the survey of the

duce. Nevertheless, I believe that
the recovery will be sluggish and
unspectacular and I wish to explain briefly the reasons for this

Department of Commerce and the

been

SEC last August. The rate of purchase of plant and equipment will

has

been

rising

first of the

ever

year, and

non-durables

the

as

since

the

of the

some

and

services

repayment

of

(such

short-term

debts) have been getting weaker,
increase in

the

proportion of
incomes after taxes spent for non-

durables and services would be

an

influence for expansion.

went,

ouying

Expenditures

on

and by the spread in long-range
planning by business concerns,

halt to the slow decline of the last
15 months, it is reasonable to

as-

that the purchase of plant
and
equipment
will
continue
slowly to drop.
What does this analysis add up
to? All of the influences that have
sume

was

of

consumer

durables

was




smalt,

seasonally

a

dUF"
con-

expanding tinue to make for expansion.

The

economy,

higher

adjusted

basis)
1

.

drop in the yield of the personal

i ne

income

seem

go still

—

o

of

one

.

important

m

the last 10 months will

housing,

.

yeV"las- trends within the

course,™

neutral

One

reason

is

that

plant
and equipment expenditures have
maintained at a high level
during the recession so that there
is no large backlog of deferred

is the fact that the high rate of
investment during the recession

influent*s that have limited the Nevertheless, in the absence of has increased
the
productive
ProP°rtlon of incomes spent on special circumstances suggesting a capacity of the ' country right

disinvestment
cowllcIIV
and

in the

belief.

incomes after taxes spent on serv- be kept high by the rapid rate of purchases to be made up. Another
ices and non-durable goods will technological progress, by the reason for expecting the rise in
rise for at least a few months. It growing keenness ol competition, production to be quite moderate

drop

influence.
V
the
buying of durables, insofar as
an
influence for expansion.
The
only reason for the difference in
classification is that, in relation to the
totals involved, the change in disinvestment
was
large and the change in the
less

would

grow

answer

ZwTu£el durab,es' to be destined to

which

r»se

an

,

may

con¬

tinued to rise and with that rise
has gone an increase in the annual
interest payments and

which

ments

These
a

have

now

are

the repay¬

to

.be

made,

$15

about

billion

Short-term consumer in¬
as high as it was a

year.

debtedness is

and

ago,

year

repayments

are

running at the rate of about $28
billion

a

year.

With

repayments

large (and also with consumers

so

fairly well supplied with durable

goods) it will not be easy to get
large reinforcement of recovery
a net expansion of consumer

a

from

In

credit.

1948, for example, the

of

volume

consumer

credit

out¬

standing increased by $2.9 billion;
in 1950, by $3.7 billion;' in 1952,
by $4.4 billion; in 1953, by $3.0
billion.
The rise during the next

will probably be well below
amounts
probably not
more than $2 billion.
these

—

Likely to Be

Is the Recovery

to
'

I hope, the public will insist that ment will rise moderately above

1.7

-Nct-Foreigfn Disinvestment
<

will

problem,
namely whether the present stability will be followed by a rise
in production or a fall. There is

assume

An
1 The

large

has

Interrupted at

an

The Committee

Early Date?

on

Economics of

the Business Advisory Council has
been

quoted

forecasting

as

that

business in 1955 would be greater
than
in
1954
but
less than in
This

1953.

is

not

inter¬

be

to

necessarily implying
that the recovery will be halted in
1955.
Nevertheless, some busi¬
nessmen
expect the economy to
receive new tests in 1955, and ac¬
counts of the recent meetings of
preted

as

the Business

Advisory Council in¬

clude

reports that some members
believe
that
the
government

should be prepared to act

ly

if

the

short time.

prompt¬

only

lasts

<upturn

clusion of the Committee

that

nomics

a

Furthermore, the con¬
production

Eco-

on

even

in

1953 implies a

intolerable situa¬
tion which must not be permitted
to happen. After all, the year 1955
will be two years later than the
year 1953. The country will have
dangerous

and

„

' come 9n ln

these changes?

are

ci

the

An effort to describe the char-

veTr o/mor^ ^conclude tha7"he lhe ?ut?mobile make? strive hard present levels, because the end
fn®a'?orv noiicies^ofbusiness Ire
^SSTSS!!L £J5^nes
fSLta .StS'E? dUCtT °f ^
that willbillion business above what by
raise a year investment it
11 e y 10 iemain a nfu,
ever happens, the demand for new $4

ofaripH

rp_

is.

^ ^9,(5"omy

Tese ^may sLn'lTexTected
may soon oe expecxea

ot

some
oirPar!v

P

10

enouSh> fhe ?utPut

of

indebtedness,

indebtedness

Mortgage

1955 will be below

ahead in

are

liquidation
of personal

volume

acteristics

in the Economy

Important changes

nificant

year

The Probable

the

rapidly in recent years,
they have changed little during
1954,
increasing only from
an
annual rate of $26.9 billion in the
first quarter to $27.2 billion in the

would require

sisted for 10 months is about to
come to an end and to be succeeded by a period of expansion,

has

growing

tion

The conclusion then is that the
perj0ci of balance which has per¬

statu-

whole no appreciable change in ableg oods, which I have classified
the ratio of inventories to sales— ag a neutral influence because
for all manufacturing and trade- tbey have changed little since the
the ratio was^ 1.69 in September, fjrst of the year, will probably
1953, and 1.66 in August, 1954— grow slowly and thus will become

is

second

president
defined

fix

but the

^ IfolS

the

is true that there has been on

of inventories has not reduced the

to

It

their peak in September, 1953.

the reduction

during that period

Inventories
about 5% lower than at

now

The

within

to

ioan)}

been producing them.

cur-

that

so

influences for expansion.

terms of
FHA-insured
loans
(loan-value
ratios and the duration
of the

inventories which, as I have ex- been buying goods at the rate of
must be counted as a $4 billion a year faster than it has
influence during the

1955

aQury

gained,
neutral

in

anthoritv

the economy has

year now

chases of durable consumer
goods
have been high right through the
recession

will

goods,

sumer

equipment.

services, in corporate tax liability are lmThe current efforts to stimulate
outlays
of consumers on
nop- portant.
the housing industry seem to me
durable goods, and the drop in the
a
second
significant
change to be overdone and to reflect the
net foreign disinvestment of the that may be expected in economic
lack of foresight and the great
United States.
No one of these trends is in the purchases of goods political power of the many busiexpanding trends has been par- and services by state and local ness and labor groups interested
ticularly large, but together they governments. I have pointed out in the industry. The volume of
produced a gain of $5.7 billion in that these purchases have been residential building has been very
the annual rate of expenditures rising fairly rapidly for a number
high for a long time and I doubt
for goods between the first quar- of years, but that during the first
whether a rate of building subter of 1954 and the third quarter.1
three quarters of 1954 little in- stantially above the recent rate
This gain has been just enough crease occurred. I believe that the could be maintained for long. It
outlays of consumers on

*nce

spend-

influences, state and local

ing and spending on durable con-

people are well
become mild
One of supplied with automobiles, radios,
television sets, and refrigerators'
the two principal influences makand have no great shortages to
ing for contraction, namely busiFinally, the recovery
sured mortgages and lengthening ness buying of plant and equip- make up.
the pay-off period, seems to be ment, will probably continue to be will be kept sluggish by the fact
boosting construction. New resi- and influence for contraction, at that the recession has seen 110 sig¬

effects of reductions running above last year.

commercial construction, of course, the

ing and

few

ulus from cuts in tax liability is dential contract awards in Sep- least during the first part of 1955.
likely to be far greater in the case tember were 53% above Septem- But a broad and soundly based reof individuals than in the case ber last year and new housing COvery would eventually cause an
of corporations. In the long run, starts in October appear to be upturn in outlays on plant and

and; business purand equipment
have been a number of expandine trends—expenditures on housexnenditures
of

a

of 1954, reducing
the already small down payments
on
houses, financed by government-insured
mortgages, raising
the maximum of government-in-

In the Economic Trend
rhases

for

least

The Housing Act

Prospective Changes

St

.

(1856)

tax

is

of

estimated

y«iar

and

$2.8

billion

the

cuts

of

$900

crue

to

individuals.

a

at

corporate

year,

$1.9

billion

income

but nearly( all

million

in

excise

tax

a

at

of the

taxes

ac-

ln§

most

powerful

deflationary

in-

^ence, Federal fiscal policy, will
and

win

«ind will become a ihodest
influence fOr expansidh: Business
inventory policy, Whlfch has been
a

neutral influenrP forlll

vear

will

a neuirai 1m1.u®nce lor,a yeJr, Will

become 3 fairly Strong .influence
for expansion. Two other neutral

than five million more

more

a

labor force in 1955 about 1,200,-

000

larger than

better
it

machines

had

1953.

in

isfy those needs still to be produc¬
ing less than in 1953 would be a
disgraceful
condition. It would
arouse a storm of criticism
against both business and govern¬

rightly
ment,

and

it must
happen.

not
Let

be

per¬

first
that
recovery may be interrupted
at an early date and then let us
examine
what
can
be done_ to
assure that production in
1955 is
mitted

look

to

us

briefly at the possibility

the

higher than in 1953.
How and

why might the recov¬
at an early
date? There seem to me to be two
ery

interrupted

be

principal
business
to

make

One is that
might decide
substantial cuts in their
dangers.

concerns

might be

been estimated at 4%

and

plants than
For the country
and

greater needs than in 1953
and with greater capacity to sat¬

of business contraction

facturing the rise in productive
capacity during the last year has

force

labor

with

expenditures

manu

the

in 1953 and it will have more

through the recession more than
usually happens during periods
In

peoj

pie to be clothed and fed in 1955
than it had in 1953.
It will have

ment.

The
a

on

plant and
is that

other

collapse of the

equip¬
there

present

strong boom in -construction, par¬

ticularly residential building.
I do not believe that

In the steel

the expan¬

interrupted by
sharp drop in the buying ol
pawy' which was 117-5 million
net tons a year as of Jan 1
plant and equipment, though a
1953
is estimated at 124.3 miilion net slow drop in these expenditures
tons as Jan. 1, 1954
would be a drag on expansion.
The growth
in productive capacity during the As long as business is good, how¬
recession is making the economy ever, the purchase of plant and
more competitive and will tend to
equipment will
be
kept from
prevent the development of short
df-opping far below present levels
ages
Of
goods
and
<?r>PPnlQ+n,I
hnvintr r>f
Clllative ^ the fact that much present
buying Of goods during revival,
equipment is more or less obsolete
industry,

for

example,

ingot

ca-

sion is likely to be
a

on^/lc.

•

The recovery of business
be kept mild by the fact that

will
pur-

by the additional fact that
rapid technological
progress 13

end

.

Number 5374

180

Volume

The Commercial and Financial Chronicle

. . .

worthwhile for pro¬
spend considerable
amounts on new models and also
new types of machines.
If a sub¬
stantial drop occurs in expendi¬
tures on plant and equipment, it
will be as a result of a drop in

tional

business.

is

it
to

making
ducers

v

and

tax

cuts

duration

the

strength

present

re¬

become clear,

covery

I

the

until

of

do

believe

only a little below or
above the rate of 1,200,000 a year
—the September rate was 1,232,000. There are solid reasons for
running

that

the

Federal

Government should have

country. America
growing rapidly, it has great
undeveloped resources, and many
of its public works have become

for new houses,

high demand

a

attitude surveys
considerable dissatisfaction
with present housing conditions.
Nevertheless, I do not believe that
a
rate of 1,200,000 houses a year
is likely to be kept up for many
months. A drop, following six or
nine months
of overbuilding,
could
interrupt
recovery
next
and

consumer

show

Our aim should be to keep

year.

housing starts steady

new

some¬

where between the rates of 1,000,-

and

000

1,100,000

to
1,200,-

not

year,

a

push housing starts up to
000 a year or beyond.

growing number of industries and
destined

dustrial
tance.

region

Production

is

country
its

is

Higher

I have indicated that
which
in

does

not

well

1955

of

satisthe recession

all,

mild

a

levels

regarded

factQry..w&fler
has been

recovery

production

the

above

1953 cannot be

a

push

as

(spokesmen

one

of

lion

and

cars

become

of the

be

can

None

before

the

of

provision
road

in

these

time

to

past

and

expenditures

cannot/ be

soon

tax

the

enough,

the

rate

of

1953.

I

grant

that -during part of 1953
(especially in the second quarter,

when

output

at

was

the

annual

rate of

is

respons¬

ibility for assuring that the

recov¬

far

enough to put the
country's productive capacity ade¬
quately to work must fall in the
goes

main
vate

pal

private enterprise.

on

Pri¬

enterprise has four princi¬
methods of bringing about a

rise in output:

investment;

(1)

(2)

increase in

an

rise

a

advances;

above

cuts

incomes

of

rise

in

spent

wages

the
con¬

in prices

cut

a

in
for

and

(4)

efficiency

as

as

a

ad¬

(1)
A rise in
investment is
likely to give modest help in the
early

stages
For

covery.

plants

ery.

of

the

present

that I

reasons

re¬

have

and

and

force.

work

There

considerable

overtime, and
unemployment was perhaps lower
than can
be
expected in most
booms.
and

But

the

ity of the
billion

technological

increase

the

force raise

in

$360 billion

capac¬

by about $13
It

year.
a

"normal" full

labor

productive

economy

each

progress

the

year

accept

we

about

as

the

capacity output for

American industry at the peak of
the 1953 boom, then the full
capac¬

explained,

investment

This drop

small

a

ventories

of

which,

billion

tion

a

of

ventories steady will represent in
an expansion of business
spending rather than a mere shift

spending.

chasing power—$30 billion above

or

such

increase
in

output.

No

probably

can

be

single year, but a
considerably more than $13
billion ought to be possible. That
a

rise of

would set

a

new

high for produc¬

tion.

by

produc¬

tion

above

There
one

the

action

the

levels

1953?

of

two general methods—

are

method

and

the

of

government

other

the

method

uf

a

by business
a

rise

it

cause

The

consumer

will

rise

in

spending be¬
payrolls.
consumer
spending
increase

will increase business incomes and
rise

in

thus

and

than
It

does

the
not

government

follow, how¬

ever,
that
additional
should be made in 1955.
the

tax
After

early months of 1954

time of slow

cuts

contraction

all,

were

and

a

the

j/ext few months (until probably
yctober)
sion.
nave

a

The

been

period
tax

of

no

expan¬

would

cuts'that

sarily be desirable in
recovery.
It. would
the

and, like any net in¬
spending, would tend
to
generate additional spending
at a diminishing rate.
I make no
pretense of knowing
what the
gain from this source might be
but, in the course of a year, the
growth of demand from a higher
disposition to consume might be
$2 billion or $3 billion a year.
Price cuts in those indus¬
technological progress
is most rapid will slightly raise
the ability of the country to buy
the output of industry.
The fact
that the
capacity and the effi¬
ciency
of
industry have
been
growing
during
the
last
year
(3)

tries where

when

sales

been

have

stationary

is

intensifying competition.
Our
price statistics are quite unsatis¬
factory and do
not
accurately
record what is happening to
prices, but the level of the price
indexes has virtually not changed
during the last year.
Conse¬
quently,

I

rely

duction

that

fear

cannot

one

price cuts in the period
to make a large con¬

upon
revival

of

increase

the

to

and

in

pro¬

employment.

This

occur.

in theory at

process,

least, could
though each

go
on
indefinitely,
successive round of

the last.

would
The

ditions,

total

upon

This brings

(4)
ter

of

con¬

It

only guess the
would

be

con¬

servative, I think, to put the total
gain in the demand for goods re¬
sulting from the end of the reduc¬
tion
of inventories
at about $6
billion a year after a period of 12
months.
be

The increase

might easily

larger.

(2) The

under

the

increase

an

in

spending or prevent
in
spending.
When
made under other circumstances,
they simply transfer spending
from
employers to workers or
decrease

a

even

The

from

great

a

workers to
for

case

employers.

increases

wage

industries

many

in

during

the

period of recovery is unusu¬
ally strong. The increases should
be

not

large but they should be
During the last year
considerable proportion of

widespread.

negotiate increases in spite of the
general recession, but few non¬
union

raises.

obtained

have

workers

In the

meantime, the effi¬
ciency of industry has been going
up
but the general price level
shows
no
drop.
Another year
must
not
be
permitted to pass
without
wages
rising to
keep
pace
with gains in
efficiency.
The rise in wages should be re¬
lated to the general rise in the
efficiency of industry rather than
the

to

down) in
efficiency of a particular in¬
dustry and it should be less than
the rise in output per manhour.
Otherwise the entire gain in pro¬
change

(up

or

comes

that

has

for

nine

slowly

the

in

been

(perhaps

to

going

of
in¬
on

months

think, continue for
more

ratio

expenditures

a

six)

will, I
few months

before

com¬

and

deficit

cash

of

A

ernment.

of

in

expenditures

local

governments
by the small increase in the

and

would
halt

be

the

rise

$14 billion

or

Gov¬

expenditures

$15 billion

sufficient,
slow

the

Federal

in

I

a year

think,

decrease

in

to

busi¬

expenditures on plant and
equipment and to bring about an

ness

increase

in

increase

would

these

reinforcement

outlays.

be

of

the

This

important

an

recovery.

the

by

would

be appropriated

If

workers.

manhour

rises

output

per

2.5% a
year, the annual increase in the
average level of the price of labor
should

wages

of

2%.

about

be

includes fringe
in

about

by

The

2%

benefits. Increases

made during the period

exceeding
the
general
efficiency
since last year would be in the
main a net increase in spending
and would generate more gains
in spending. A rise of 2% would
raise payrolls by about $4 billion
a
year
and the total gain in
spending at the end of a year
might be $6 billion.
recovery

and not
gain in

This

brief

and

inadequate

an¬

personal

rise

in

incomes

proportion
spent

on

the

come

policies

from

in

groups

is

the

and

largely

so

It

the#

Are

ideas

non-business

the

defense

no

of

inadequate poli¬
cies
to
say
that the recession,
after all, has been pretty mild.
The country wishes constructive
proposals, and, unless the busi¬
wrong

or

have

nessmen

desire

no

to

;be

policy makers, they must be will¬
ing to contribute their share of
t;/;
At the moment the businessmen

tive

ernment

Toward

and

Let

few

a

attitude
ment

Recession

of

observations
business

of

the

on

and

eco¬

expansion.

such

the United States in which

the

as

labor

rate

of

is

force

about

in which

country

a

growing at the

600,000

a

and

year

the rate of

technological
progress is rapid,
any
interrup¬
tion in the growth of demand is
serious because it leads quickly
to substantial unemployment. And
yet neither the Federal Govern¬
ment

the business

community
has shown proper concern, in my
judgment, over the recession of
nor

year.

time

into

of

at

power

the

high level

a

warned

re¬

busi¬

the

that

us

production

in

is

danger of falling short of 1953. If

falls

production
will

ment

fall

short,

short

employ¬

by

even

an

greater margin. Let the business
world accept this challenge./Let
it

promptly demand that govern¬
businessmen

and

ment

possibility

frankly

the

duction

next

year

face

that pro¬
fall short

may

of 1953 and let it insist that every

reasonable step

be taken to raise

output within another year to new
levels.

Steady expansion
be

not

may

or

may

ideal,

attainable

an

but business leaders cannot afford

be

to

anything

strori^

but

ment,-the cash budget

In

employ-^

of

was

achievement of this ideal.*

a

fi¬

government's
in
bad
shape.

Were

nances

spite

Republican Admin¬

came

when

have

1955

and

in

champions of the closest possible

The present

istration

in

Wise

high

men

world

ness

even

nomic

In

mistakes.

sponsible

govern¬

year

recession

the

on

and

during the last

problems

remarks

my

in the

red by $5 billion..It-is, true that
prices had been remarkably, stable

Continental Uranium
Common Stock Offered

Van Alstyne, Noel & Co. is of¬
slowly declining for most of the
years
of the Truman fering 500,000 shares of common
stock of Continental Uranium Inc.
Administration, but- a" substantial*
cash deficit at high employment at a price of $2.50 per share. '
was
The proceeds
obviously a danger. On the
of the offering
whole, the economic policies of will be used for the company's

or

last -two

Administration

the

admirable
bill

have

been

particularly the tax
the farm program. Un¬

and

—

fortunately,
the /Administration
became so pre-occupied with cut¬
ting the deficit that it was unable
acquire an adequate apprecia¬
tion of the importance of com¬

development and drilling program

the recession.
With the
deficit so large at the peak ofHhe
boom, perhaps it was inevitable
that Federal fiscal policy should
balance aggravate

on

rather than

mitigate the recession, but it was
neither necessary nor prudent to
cut the deficit as rapidly as was
done in

period of business

a

con¬

able.
Continental

San Juan

is

pany

complacent

extraordinarily

been

in the face of the recent

recession.

demanding that vigor¬

of

Instead

stimulate
production and employment, busi¬
steps

ous

have

nessmen

defend

the

ahead

for

to

put¬

much

so

economic

have argued that
recession was not particularly

serious
been

of

balancing

stimulating

of

expansion
the

government

budget

ting

inclined

been

and

no

1949

worse

and

because

all

after

it

has

than the recession

because

output

was

running ahead of any year except
1953.
Some
businessmen
(and
far

so
a-

as

have

writers too)

editorial

gone

to say that recessions are

good thing because they get rid
and force
concerns to take stock and to

of inefficient producers

Inc. was

on

County, Utah. The

com¬

producing uranium

now

from

ore

the

Continental

1

No.

located in Lisbon Valley,
and from the Continental
Rattlesnake Mine, located
along*,
the
Lisbon
Fault
near
La ScA,
Mine,
Utah,

Utah.

to

taken

be

Uranium,

July 30, 1954 to
acquire,
explore and
develop
uranium
properties,
including
producing mines. As of Aug. 31
the company had acquired prop¬
erties aggregating approximately
11,700 acres. The greater part of
the properties in which the com¬
pany has interests is located in
organized

traction.
A
large part of the business
community (in fact, I fear most
of the business community)
has

pur¬

including </ the
possible
acquisition
of
other producing
mines which may become avail¬

to

bating

general'corporate

for

and

poses,

Practically all of this property
has been assembled since
a

headed by
and Raymond

witz

Gidwitz

Mr.

Board
of

and

by

GidSullivan.

G.

Chairman

is

1951

Gerald

group

of

the

principal stockholder
Curtis
Industries, of

Helene

Chicago.
Mr. Sullivan is VicePresident, a director and a prin¬
cipal
stockholder
of
Minerals
Engineering Co., Grand Junction,
Colo.
He has been
engaged in
mining engineering since 1933.
.The company plans an exten¬
sive
program
to accelerate1 the
mining operations at its present,
mines; to define the limits of its

extremists presently known ore bodies; and
to explore the ore-bearing poten¬
to say that

get rid of waste. A few
have

gone

much

not

so
can

far

as

done

be

about re¬

tials

The result of all
this has been that the initiative

of

its other

properties.

cessions anyway.
in

Two With Lester

proposing policies for dealing
the

(Special to The Financial

recession has been sur¬

completely to the
critics of the Adminis¬
and
to
non-business

rendered pretty

political
tration

groups in the
I
believe

community.

LOS
B.

ANGELES,

Lester

have

and

joined

Calif.—James

Gale

the

Ryons
Chronicle)

W.

Robert?

staff

of Lester,
Ryons & Co., 623 South Hope St..

political members of the New York and
Administra¬ •Los
Angeles Stock Exchanges.
experiencing will be a
widespread wage increases. These
lesson to both political parties, so
expansive influences would raise
the demand for goods to about that never again will the party in
With Pacific Coast Sees.
$370 billioq or $371 billion a year, office be so reluctant to fight
(Special to The Financial Chronicle)
recession with fiscal policy.
But
slightly above the peak quarter
BEVERLY HILLS, Calif.—Eu¬
are
businessmen
aware
of the
of 1953.. These expansive influ¬
gene P. Aureguy is now connected
danger to their prestige and pub¬
ences
would be reinforced, as I lic
relations from
their failure with Pacific Coast Securities Com¬
have pointed out, by
the pros¬ to demand stronger policies for pany of San Francisco.

consumption, and $6 billion from
the

total

effect

of

modest

but

under

decision

a

be

a

halt.

The

reason

for this

neces¬

belief is that the rate of personal

period of

saving is still pretty high and, as
consumers succeed in getting old
debts paid off, they will be will¬

wise

about




ing to

to

addi¬

■

chance to play a construc¬
role that will make up for
a

recent

Expansion

conclude

me

with

with

the

let

community?

>

billion from the total
effects! of the change in inven¬
tory policy, $2 billion to $3 bil¬
from

the

have

all

lion

to

proposals

The Attitude of Business and Gov-

alysis of the capacity of private
enterprise to do the job of pro¬
viding the country with an ade¬
quate recovery indicates that a
rise
in
spending of $14 billion
to
$15 billion a year might be
reasonably expected in a year's
time—$6

content

ideas..

the

ductivity

fighting the recession?

VII

Wage in¬

made

when

right circumstances, represent

of

rise

consumption

increase

state

to the mat¬

us

increases.

wage

creases,

spend¬

many

as

one can

amount.

than

which are not
yet by econo¬

of

understood

mists, and

rise in

total

some

smaller

be

by

the last

„

increases

pective

33

troubles
tion

that

which

the

the

is

.

appropriate

those conditions would not

defer

still another
spending will

consumer

well

stimulus

deposits.

will produce

concerns

in

ernment to do much to stimulate
the
economy next year except by
the device of additional tax cuts.

Save it.

idle

on

ing will depend

think that the government blun¬
dered badly in not
making greater
tax cuts last winter and
spring
when the
economy needed more

will

The increase in business spending

private enterprise. I fear that
the time is too short for the
gov¬

1

of

be
fi¬
rise in bank credit

drawing

by

expansion

The

spending

payrolls,

What can be done to assure that
the
recovery soon raises

policy of holding in¬

the main

business

achieved

because the adop¬

year

the

nanced

of

I have pointed

as

$4 billion a year, will probably
production by more than $4

$386

rate

in

raise

billion in dollars of. present pur¬
present

investment

out, has been running at the rate

in

the

be offset by

may

in

rise

An end of the disinvestment in in¬

year

a
about

be

plant

housing and commercial building.

from

would

in

equipment is likely to drop
during the early stages of recov¬

ity output of the economy
now

in

union workers have been able to

$369 billion) the economy
was probably
operating in excess
of
the
planned capacity of its
was

increase

net

a

in

crease

a

vances.

be

spending

since fresh

efficiency

tion

re¬

for

(3)

drop from 1953 has been small.
It ought to be
possible, therefore,
without great delay to get produc¬

can

time

sumption;

the

and

desirable

1955.

the

would

tribution

ratio

mildness)

of

system

nelp the

boasted

its

many

public works

on

in

Since

from

(which will

needed

outlays

made

covery

far

self-liquidating invest¬

a

ment.
new

be

that

and

much

that

than 50 mil¬

more

trucks

million

70

years)

is

of the Administration have

of

the

on

aware

roads

adequate for its

ery

Than in 1953?

impor¬

great

becoming

system

made

1955

in

of

in¬

an

river has become far too great for
the present system of locks.
The

Federal

What Can Be Done to Assure that

become

Already the traffic

temporarily

VI

to

would not re¬
spending
and

incomes

investment

duce

well-' thus

a

conceived and ambitious program
to develop the

seems

ing to incur new ones. A higher
of consumption spending to

ratio

personal

serious is the danger that
credit will cause the rate of
obsolete.
To
supplement
the
housing construction to be pushed
much-belated development of the
to levels
where it cannot long
St. Lawrence Waterway, for ex¬
remain and that a drop would be
sufficient to interrupt a slowly ample, there is needed a com¬
moving recovery.
For several prehensive plan for developing
the Ohio River valley. The Ohio
months (with the exception of
has
been
attracting
a
rapidly
July) housing starts have been
More

easy

(1857)

.

Einancial Chronicle

The Commercial and

34

.

.

Thursday, November 4, 1954

.

(1858)

with

later

It is my guess that many of
y0u
hesitated to tell your

terests as the issue,, comes before.

addresses,

and

names

have

Congress.

Prospects can be qualified by tel-

cus¬

tomers. such facts, fearing their
Those who are worthwhat facts do your customers:
reactions to the knowledge
while
that
following
can
often
beVneed to know? They need tobrought into your office for a know, first, that the true effect of- your charges make up most of

epfione.

Securities Salesman
New Residents Can Be

Good Prospects

this

that

presume.

simple in operation. Letters

Fund

Wellington

of

Knox

Bill

passed this idea along to me and
to
have
considerable
it
seems

even
v0ur

especially if you are living
growing community where
there are new residents coming to

out,
in

Bill said he
dealer friend who
it is

This

,

that one

him

told

dealer

thkf

onj;
"When

we

tht lmfnrfrv

fact

^irv

and

in

th»r»

01ft

if

ja ctnrps

find

pntitlpH

tn

n<;

seek

-the

and

involves a series of

maHp

fnaliv

the
his

companies
in

offices

had

acted

agents for several moving com-

othe7communities

panies in

that

have

exploration and
1
j

gas

be

can

Does

to

in¬

of

Congressional

will

their

operations

customer know that

your

Federal

remove

this

gas

companies

hose

w

regulated

are

by

Power Commission.

the
This

regulation is a substitute for the
competition that in the gas pro¬
duction business protects the

cus¬

against excessive charges.
A misguided opinion of only a

tomers

peting vigorously in leasing, drill-';

small segment

of the public

caused

ing, producing and marketing ac-.:; the veto of legislation which
tivities. Does your customer know would have prevented the chaos
that the gas producer's prices are; facing you today. Many govern¬
really determined by free com- ment representatives, even though
petitive bargaining in the fullest Convinced that the industry is
sense
between purchasers and: right, must be backed by an ex¬
sellers, the same as found within- pressed
public ; opinion
before
an other producing industries publicly taking a stand on such

Relief
.

which

transmission

regulation.

bureaucratic

ernmental regulation.
,

You

by

supply and
only by an incentive—•
their pocketbooks.
the kind of
incentive which is
The same principles apply to
immediately destroyed by remote

harnessed

0n the contrary, there are
conse- thousands of producerseach com-

,

to

action

suit of the demands of consumers city?

"

demand

formed

and

influenced

gain

the
facts; you stand to lose everything
if they
are
not sufficiently in¬

are

threat

risk

to

customers

your

cus¬

earnings.

your

everything

forming

absolutely depend¬
ent upon individual initiative and
the competitive risking of huge
investments;
that * this initiative

pres|(jent Truman Blocked

to

your

your rates ac¬

ground reservoir,* those proposing
** a,re free to choose aj?ong several prospective

...

N®w Major Gas

fields and;

the owners of gas in those fields..
More often than not it is the pro-:

ducer who is under the greatest,
bargaining pressure. •
Many of your customers are un-'

that.Federal reg-

der the

Xiw Major Gas Producing PIants

gas

Hi thoJfieJdf

of

issue.

an

Otherwise, they fear to

lay themselves open to the propa¬

false
but' damaging
they
are
tainted

gandist's

thgt

charges

they

because

simply

with

agree

industry's position.
There is another critical

for

reason

fearing Federal regulation of

gas

production, which is this:

permitted

If

root, it may
well be the entering wedge to the
extension

to

i

take

of

socialistic

a

regimentation

type of

other

competi¬
tive industries. Whyj for example,
to

r u %
any doubt that pioduction of gas ulation is essential tb hold their not regulate the price of coal used
There ls now
the Process ot by independent producers was ex- gas costs down merely because it in
producing manufactured gas
of new residents that were movbuilding within these major gas empt from Federal regulation, giyes a third party' authority to and in
generating electricity? The
ing into the better neighborhoods Producing states the greatest in- but the bill was vetoed by Presi- determine that rates are equitable, coal
producer on the average gefs
of his city.
He also watched the- dustriaL empire ever seen in this dent Truman.. The Congressional They do not know what really
a higher percentage of the house¬
newspapers and every time there
country. The great variety ot debate on that legislation and the, comprises their gas rates. I doubt hold electric; bill than, the gas
was an announcement of the purplants represented require almost accompanying political furore and that 5% of your household cusproducer
gets
of
the
average
chase of a new home in a good unbelievable quantities of natural public propaganda campaign fur- tomers have any idea that the
household gas bill.
Of course, I
location, or if some new business gas ,for beat, power or as a. raw rushes a painful but pointed les- price the producer receives for am not
advocating the extension
position was filled by someone ™a ,eria, I fo''
Petrochemicals, son for the task facing you today. his gas in the £ie]d is actually a of Federal regulation to coal or
from another community, he sent
ps sa
more gas to just one At that time, a segment of the very small part of their bills—on to
any other commodity.
On the
letters to these people.
The letter of these plants than is used by all so-called "liberal" bureaucrats, the average less'than 10%. Your
contrary, I am only pointing out
was
short, it briefly offered the the residential customers in al- politicians and radio and press, customer probably has no ideathat if natural gas prices in the
services of his firm and he made-most any one of your larger cit- commentators fanned the public that even if a regulating agency
field
are
to be
regulated as a
mention that he had lived in his ms. Those who fought for Federal into a frenzy with bland disre-, cut the field price 20%, and allutility, it is just as logical to ad-;
city for many years and. might regulation of producers helped lay gai^ of the facts. These advocates that cut were passed on to him,*
vocate
regulation of other riskbe able to assist in other ways as' the cornerstone of this vast manu- ot Federal regulation claimed that the average
United States resiwell as in the capacity of invest- facturing empire.
This industrial the oil and . gas interests were, dential consumer would realize a taking, producing 'industries such
ment broker.
giant is yet a baby but to those about to put over a fast one on saving of onl abom Dne dime a as mining, farming, lumbering
and-manufacturing. Certainly few
The letters were followed by a who have not n."rsed ll a,lo"g and natural gas consumers.'.
month. He has no idea that thaf of the advocates of Federal regu¬
his

obtained

He

town.

coming

business

handling

were

to

'

several

other cities and who

manv

.

fhat

dtv

natural

production

other hand, can look to the prescan
ently large and expanding market mi eat to tne continuation 01 youi
outlets for natural gas within the busmess? Will you sit idly by
states in which it is produced, while Federal regulation sounds
These markets , are outside the its death knell.
_
realm of Federal regulation.
In 1950, Congress passed legis-

even-

with

rnntartc

leadln^^ov^ng

of

?n
as

dealer

investment

This

gas

town."

in

am

'

by limiting

cording

which have no sheltered market?
Before an interstate pipeline pro}-,
ect takes shape and is laid to rethan the ating these properties free of gov- ceiVe gas from a particular under-

producers- You face loss of the
supply necessary to help keep
you in business. Producers, on the

No one in the inguess knows

business I

vestment

"

—

stand to lose much more

I've

brokers

for

as

looked you up.
I

It was

story with my insurance

same

needs

I

go" out

for myself.

one

to

.

whom

could do business I had to
and

free

wanted

T

with

hank

some

a

visit'reftain

to

whpn'

Rot

good

a

in

ramp

u/p

She left

wife

mv

that

that

protects

agency

tomers

natUral gas. They will understand

trial

At any after they suffer its full
P°int in this chain the Producer quences. Therefore it seems foolmay face a conservation measure ish to go through a period of chaos
Which tells him to do one thing during which everybody loses—
and a Federal order which tells cutomers, industry, investors, lahim to do the opposite. Just as bor, distributors, transporters and
one example, the state rrtay tell producers. Furthermore, we proto reduce his prodqction rat'e, ducers have a substantial investwhile under Federal Regulation he ment in gas reserves, gas wells,
may be forced to maintain it.
;
gathering lines and treating plants
Foivthese reasons .which, force which are now connected to interproducers to shy clear of the in- state pipelines. It is only natural
terstate market, you distributors that we want to continue oper-

Uiferi ?«
Ho hminess with them
InH
!L
Wlrne
waenn" ladv Who dronned in to
rarrk

stifle

will

ulation

months in order to give it a fair

highly complicated steps.

Hean

faePeople camegroundandIn-

viah with

latory

Federal regproduction of

wm understand why

six

sincerely believe it is inevitable in the gas producing business, no
Withdrawal of gas from the that Federal regulation will be 0ne producer has a monopoly such
ground and preparing it for pipe- removed sooner or later as a re- as the distributor is granted in a
line delivery

Hnnr

to

them at the most efficient rate,

had

in

moved to town

we

hi rita

*

least

at

Federal Regulation Threat
To Natural Gas Supply

productive plan for obtaining new
prospects.

for

it should

be

and

very

a

I

worthwhile.

(

city regularly.

got this from a
had tried it out and

.continued

be

is

wm

of
gradually

regulation

Federal

Continued, jrom page 7

a

your

in spare time .by

office personnel and filled in

f_L__

i

merit and should be worth a try-

be typed

could

idea

however, that

This fear is

their bill.

groundless
producers
for
you
have nothing to hide'
close the;
Because your business is a
public
vajve on their natural gas supply
iine.
When told the facts they utility, youl- local or state regu¬

,first meeting.
If followed consistently as part of your regular
routine of prospecting it could be

JOHN DUTTON

By

names

.

In

telephone call.

every

instance

-tT Vtu^ltatle^arebeyond
stature ale oeyond

DuHng ^ Hme' -STf' °f ?mall difference to h}m is a big

the fore- item to the producer and probably'
ffont opposing- this legislation. wouldbe the determining factor'fer
his
services were
well reThese plants require huge in- You apparently overlooked the as to whether or^hot -th^ producer
qeived.
Some people were not vestments running into the mil- devastating
result on your gas would supply his market.
investment
prospects
but
they lions of dollars. To protect these supplies and were blinded by your'
were friendly
Others were pros- investments vast underground gas anxiety to remove the onus of.
Inform the {.Consumers

">the introduction he had made in
his letter and his invitation to of-

and came to his office, or
him by appointment at their

pects
met

homes.

-

Thp'
based

cnimHnp«

several

unon

considerations
consiclerations.

Tt
It

verv

your companies were in

■

reserves are acquired for future higher consumer charges. Whatuse and removed from any other ever the reason, the failure to tell
market. A cement mill must have your consumers the facts killed

less
less

raoor,mc

who is looking for your serv-

lacmnes, dui aaequaie aiso tor to mislead so many.
future expansion. These^industnes
It is time you completely rego out and convince one of
are eager competitors for unsold verse your approach. Not only
your competitor's customers that underground, gas reserves which did you oppose or fail to support
they should do business with you. °tharw,ls,e ,might t?e. Permanently this legislation, you have arbiAny method you can use that will
™ to «««>plywg interstate trarily opposed the transmission

ices

and

who

strange land

is

a

to

so

stranger

in

a

than it

speak

is to

who

Pipelines,

pur-

for investments.
Any
city where there is an organiza-

This industrial development in
the Southwest is costing citizens
of other areas huge loss of industrial activity, despite crusading
campaigns to attract new or hold
present industries, such as the
current campaign being waged by
New Enland. It is entirely feasible to locate many of these
plants at the end of interstate

tion that makes

Sas

help
might

be

locate
interested

chase

of

securities,

new

people
in the

to

you

particularly

residents in your city, should

work

out

based

well,

it

but

upon some

be

must

such plan

the

as

foregoing.
tions

There are certain secevery community where

of

people live who might be logical
prospects

a
!

«

business of con-

j

1l.

1_

2.

Th

consumJ
°
Iai£ei poition of
rj11' .ls
for the
^he constructionVnnm

th t .

Jv

y

iv n

companies' payment of any increased prices to producers which
were essential to protect your future gas supply. Spurred by your
desire to avoid unfavorable pub-"
licity regarding your own rate
increases, you have indirectly
been fighting every producer who
supplies you with your life blood.
Is it not wiser for you to protect
your future gas supplies by con-

pipelines, but for one factor, ducting an educational campaign
-Pdnlnt*

«

ie

namnl a+a

lnnlr

4a

aamniiw*awrt

nn

4- ^

oper-

regulated inter-

^ pipeUnefLd^lolSllv ^
iso¬
lated ^ distribton systems. He
,ated city distribution syi ^
d
b
r
p
T.ia5S a?„to..^s
f

waukee
user

-

average''Lin,;
$1^21^ p£ thousnnd 5'
gas whfch coT?he dif:
the

paid

fee[ for
XSJ f"nd foTU^ch
pipeline
8 7£

paid

Your

the

nrodnrpr

New

ures

to

latest

back

to

r

to knnw ih

c

of hik

also

source

of

a

chamber

Your local
may

for

be

able

nominal
of

fee.

plan

is

ask

why

a

should

suggest

a

eral regulation, when he

started, it

is

names.

the

may

commerce

to

be

concerned

producer ply?

about

Fed-

foresees

huge, unregulated outlets for his

#

After

You




gas

within producing states.

We

Give them the
•

complete

mof1.

and

.

correct story lmme^ately^ forcefully and incessantly. Then they
can

intelligently protect their in-

But'we

omy.

ready
econ¬

country

be

can

sure

that

seiie
this straw as a springboard for
attempts to* impbse their socialis¬

there

tic

are

those

theories

History

who

would

all industry. *

upon

recorded

has

very

clearly that when socialistic con¬
trols
a

are

applied to production

natural resource,

of

whether petro¬

agriculture or any
suffers. The
most pointed example I can think
of is the deplorable condition in
Russia where everything is com¬
pletely
state-controlled. There,
gasoline costs the equivalent of a
dollar a gallon and the few own¬
ers of automobiles get few gallons
leum,

coal,

commodity,

output

And look what

to burn.

to the output of
Britain

happened
in

coal and steel

under

nationaliza¬

tion of those two industries.

This

hope

risks in supplying hhh

assure

is

you
a

your

fight.

I

sincerely

vigorously to
gas
supply for

will fight
future,,

s
f'
• your customers and the continued
"?ak<; cle.^r that any- growth of your industry.
S ^ -f reduction in the sup^ y
yo" hanale—sure to
CO1T10 UlluGl t GU61Sl ^§UlBtlOll Of With Burns Bros.& Denton
Thpcp

f

+

will raise the

names

federally

is

controlled

this

for

a

would

production

gas

that

ment for their costs and

consum-

reaTizCe fai m.°ve than he
drastic rat'in the fieW Drice^H-

could"
with

of

admit

Great

availnhiI

ate irft
nroducerf f

only about 3^

goes

the
nr»i,v

York'rngtnn

might be astonished
according

lation

•

rock quarries, or a saw that opportunity to protect your . f
mil1 ade(luate stands of timber, future gas supply. They needed
,
But Vflmiiro
the chemical plants that use the factswmrefute the false ^ation of federally
to
propa-

wit"h^'some- «af require reserves sufficient not ganda. Will you, by your silence
the hfe spain of presen or opposrt.on agam perm.t so few

difficuHto do business
one

Dractical

much
much

is
is

„

' adequate

thic

nf

imaeinauon«

hope for

5

anv

sup^

.

fies in havf™
01Yn
mfving throimh vn8 ^Gr

his gas cost

tribution systems

'

*

C.

Berkeley Cooke, Jr.

Burns

Bros.

&

Denton,

is with
Inc.,

37

York City. MrCooke, who has been in the in¬
vestment business for many years,
Wall Street, New

has recently been with Dominion
Securities Corporation and Thom¬
son

& McKinnors.

Hi
,/rti

'

'j

j

1

Number 5374

180

■•■Volume

.

.

Commercial and Financial Chronicle
The

.

-The

Indications of

week
Latest

AMERICAN IRON AND STEEL INSTITUTE:
Indicated steel operations (percent of capacity)

fuel

Residual

(bbls.)'

at_

71.0

§1,804,000

*1,776,000

1,692,000

22

6,174,400

6,195,950
6,765,000

6,999,000

6,830,000

23,418,000

23,095.000

23,975,000

23,069,000

22

2,145,000

2,278,000

2,280.000

2,170,000

22

10,950,000

10,163,000

10,461,000

9,858,000

22

7,420,000.

"

7,531,000

7,469,000

149,834;000

150,676,000

151,145,000

36,914,000
132,365,000

56,475,000

56,189,000

57,235,000

52,633,000

746,007

721.402

710,215

596,381

602,418

Wholesale
Retail

ENGINEERING

—

Oct. 28

$323,236,000

$233,851,000

175,680,000

110,581,000

(tons)

STORE SALES

147,556,000

123,270,000

96,358,000

Oct. 28

INDEX—FEDERAL

99,951,000

95,998.000

103,199,000

Retail

.«

51,558,000

7,170,000

•

20,071,000

""8,290,000

8,135,000

9,259,000

561,000

623,000

703,000

123

119

118

Oct. 30

9,152,000

9,033,000

9,158,000

8,362,000

.Oct. 28

INDUSTRIAL)

DUN

—

223

229

192

To

18

GAS

Gas

Lead
'

tin

4.634c

$56.59

.Oct. 26

$33.00

$33.00

$30.17

$34.17

.Oct. 27

29.700c

29.700c

29.700c

29.600c

Death

.Oct. 27

33.125c

30.350c

30.500c

29.025c

Matured

.Oct. 27
.Oct, 27
.————(

92.375c

92.875c

93.500c

81.000c

(New.York)
(St.

Lead

Zinc

'1

—.

—,

14.800c

.Oct. 27

—

i

,

„•

.

-

14.750c

Group

*

Group

99.57

99.27

99.96

110.52

Industrials

115.43

111.07

112.37

112.37

112.37

108.34

110.70

110.52
104.48

99.52

>

108.88

109.06

108.88

111.25

110.88

112.19

112.00

=

3.39

2.87

2.88

3.11

3.04

3.04

3.26

3.14

3.13

3.14

3.40

3.46

3.45

3.48

3.78

DEALERS

EXCHANGE

INDEX

3.23

3.22

3.23

3.51

3.11

3.10

3.12

3.39

3.06

3.05

3.06

3.28

Number

—Nov. 2

406.6

405.9

404.5

394.0

Number

225.539

241.533

211,305

—

252.442

258,055

246,383

262,973

—Oct. 23

Q3

93

92

PLANTS

394,122

429.295

369,305

—Oct. 29

106.23

106.27

105.70

Service

964.681

1,112.144

900,018

564,675

$46,244,406

$53,905,208

$44,330,803

$24,127,498

923.778

-Oct. 16

short

sales

1—

other

sales

1

—Oct. 16

1,077.482

969,947

7,808

8,132
*

11,580

915,646

1,069.674

958,367

515,224

$41,816,541

$48,536,929

$43,710,337

318,150

291,700

313,590

153,190

—Oct. 16
Oct. 16

sales

Total

318" 150

2~91~700

313" 590

330,700

278,380

226,120

transfer

401,910

314,040

ACCOUNT

FOR

OF

10,991.770

9,747,070

7,410,270

11,388,120

10,148,980

7,724,310

5,047,770

farm

1,109,270

861,570

Other

-—Oct. 9
^-Oct. 9

179.830

160,590

954,030

926,270

739,380

426,070

———Oct. 9

1,155,560

1,106,100

899,970

539,570

LABOR- (1947-49

=

SERIES

—

U.

Farm

—

2.63

«

tons

Revised

figure,

i Includes




2.47

2.76

2.86

3.05

2.37

2.65

1.71

2.29

$770,194

$733,724

165,804
369,081

..

REAL

ESTATE

AREAS

FINANCING

$670,983
122,483
310,061
110,709
233,420

—;

33,600

374,180

303,167

218,809

533,813

438,480

334,237

Savings

savings

1,748,810
269,600

1,383,145

Total

1,762,413

1,602,910

1,278.847

1,872,510

1,491,557

936,779

-•

lending

institutions
-

-

-

—

299.660

212,710

250,762
374,295

$2,086,388

$2,026,945

$1,709,392

$71,113,265
16,827,962

87,941,227
3,350,927
84,590,300
52,663,106
3,297,860
49,365,246
44,128,611
15,780,480

$79,680,336
17,565,891
97,246,227
3,411,270
93,834,957
61,813,815
2,843,533
58,970,282
44,064,545
24,447,421

$94,421,704
17,366,708
111,788,412

25,314,258

17,778,098

19,780,491

256,736

RYS.

(Interstate Commerce

Month of July:
Net

railway operating income—

Other

109.4

109.6

92.6

91.4

103.2

103.3

84.9

85.0

114.5

114.6

109 :,7

110.0

92.7
*

87.0

114.5

-»

104.5

86.5
.;

94.3

104.5

•

114.6

Income
Other
Net

new

annua!'
.,f'r

Opacity

.

■V

:

i 1

■

Of

124,330,410

——

income
income

Miscellaneous

'■

CLASS I
Commission)—

INCOME ITEMS OF IJ. S.

SELECTED

Total

Oct, 26

138,229

252,022
391,058

banks

—

Miscellaneous

155,437
371,240
141,487

252,409

2,091,870

2,062,073

-1

BANK

LOAN

(000'S omitted):

31,070

OF

■

NON-FARM

IN

S.—HOME

U.

OF

64,300

625,000 barrels of foreign crude runs.
§ Based <
Jan. 1, 1953 basis of 117,547,470 tons,
since introduction of Monthly Investment Plan,

as of Jan.
1
1954, as against the
t Nutober of'orders not reported

2.51
.1

*

products

2.87

1.78

■—

—

income
charges

deductions from

available for fixed

after

fixed

deductions

charges-

——

income

Depreciation (way & structure &
Federal

income

Dividend
*

2.78

2.45

animals

Mutual

Oct. 9

S.

——

,—

—

2.86

.«„■—.

182,447

872,747
163,570
773,209

—Oct. 26
-—.—Oct. 26
Meats
Z-l
——:—-—-—
—__Oct. 26
All commodities other than farm and foods—.
.—j.—Oct. 26
products—
Processed .foods

2.94

crops

Oil-bearing crops „—
Livestock and products——.

Income

'

commodities

1.85
2.07

144,800

-

,

4.39

2.43

257,350

Oct. 9
DEPT.

.»•..

"

4.46

2.32

2.23

257,015

16,470

100):
:

2.05

2.28

327,930

464,383

-—i

■

AD

2.02,
2.72

347.880

69,430

—

Commodity Group—

2.15

2.07

2.88

128,330

Oct. 9
-Oct. 9
—Oct. 9

—

NEW

■

2.55

2.35

Individuals

-Oct. 9
-—Oct. 9

-—-

—.

—

21,050
236,300

474.740

:

.

•

.

25.470

372,700

:

-

——

302,460

—Oct. 9

1

PRICES,

2.25

4.30

-

28,700

the floor—
——

Total sales

WHOLESALE

2.28

products-

344,000

.—Oct. 9

.

—

-

.

2.48

15:

and loan associations——
Insurance companies
Bank and trust companies—

—.Oct. 9

sales

2.47

2.50

INDEX

—

Aug.

145,950

Total round-lot transactions for account of members—

Other

13.6
272.6

AGRICUL¬

OF

of

264,560

404,660

sales

Total sales

15.8

•270.6

25.1

FARMERS

DEPT.

100—As

291,660

Oct. 9
—Oct. 9

.

—

S.

BOARD—Month of August

sales

Short sales

23.2

113,500

—

Total purchases

•24.2

270.1

544,350

201.530

the floor—

off

46.6

15.5

——

Dairy
1.212.470

-—

Z

transactions initiated

6.5

•47.9

24.3

dividends

and

grain and hay

Meat

Oct. 9

sales'

Total purchases
Short sales

6.6

48.2

Truck

4,748,390

MEM¬

—

Total sales
Other

BY

U.

—

Cotton

299,380

--Oct. 9

—•

Short sales

Other

4.1

6.6

Tobacco

396,350

Dct. 9

Total purchases
Short sales

33.8

4.5

in¬

Fruit

-

Oct. 9

sales

on

social

for

payments

RECEIVED

Feed

.

Other transactions initiated

*33.8

.

Food grain

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—

Other

25.2

34.0

-

*

All

(SHARES):

—

Total sales

52.4

*25.4

Unadjusted—

MEMBERS

purchases

89.2

*53.1

25.7

i

income

TURE—1910-14

...

——Oct. 16

Total Round-lot sales—

Total

200.6

•83.4

52.9

contributions

interest

NUMBER

15~3~190

321,350

FRICES

ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS

TRANSACTIONS

$286.4

195.7

82.9

Total non-agricultural income—

TOTAL ROUND-LOT STOCK SALES

ROUND-LOT

*$285.7

195.5

-

employee

Crop;

Total sales

$285.4

:

$20,106,330

•

Round-lot purchases by dealers—
Number of shares

Other

348

COMMERCE)—Month

industries

Personal

5,896

-—Oct. 16

1--Oct. 16

—

Round-lot sales by dealers—
Number of shares^Total sales

—

309

4.7

OF

Other labor income

521,120

Oct. 16

OF

326

Proprietors and rental income

value

sales

476,232
98,051

surance

(customers' sales)—

sales

5.74,631

75,835

(In billions):

Government

Oct. 16

Customers'

ACCOUNT

300,998
68,618

cars

trucks

motor

Distributing industries

Oct. 16
—

Customers'

Short

521,450
445,306

MANU¬

September:

personal income
'.
Wage and salary, receipts, total
Commodity producing industries

Less

.

Short sales

passengers

of

of August

105.92

dealers (customers' purchases)?—

Number of shares—Total

of

vehicles

(DEPARTMENT

463,706

ODD-LOT ACCOUNT OF ODDON N. Y. STOCK
SECURITIES EXCHANGE COMMISSION:

Odd-lot purchases by dealers

FOR

369,942

ASSN.—Month

of

of

FROM

S.—AUTOMOBILE

U.

number

SALES

PERSONAL INCOME IN THE UNITED STATES

SPECIALISTS

Dollar value

Other

$30,248,000

(000's omitted)
FACTORY

Total

—

—

IN

FACTURERS'
Total

97

Oct. 23

of period

101)

30

VEHICLE

Number of motor coaches

Oct. 23

Number of shares

Dollar

$29,929,000

213,773

—

—As of Sept.

MOTOR

ASSOCIATION:

at end

AND

Odd-lot sales by

$29,981,000

MONET IN CIRCULATION—TREASURY DEPT.

STOCK TRANSACTIONS FOR
LOT

23,651

$46,888
25,067

2.81

3.14

—Oct. 23

AVERAGE

20,100

•$44,194
*24,055

SERIES—

;

2.50

3.12

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
l!)4f>

$26,788

*19,811

$43,878

NEW

Sales

2.55

—Nov. 2

—

(tons)

•$24,383

19,650

COMMERCE)

August (millions of dollars):

Total

2.53

activity

orders

$345,385,000

Non-durables

—Nov. 2
Nov. 2

(tons)
of

Unfilled

$386,791,000

SALES

&

107.98

3.13

(tonsi—

Percentage

$380,859,000

$24,228

INVENTORIES

Durables

106.04

112.00

of

Nov. 2

Group

Production

66,530,000
72,241,000

8,648,000

Inventories—

103.97

111.07

.

Month

OF

3.04

——

Orders received

39,763,000

$157,326,000
35,611,000
7,982,000
33,904,000
55,733,000
54,829,000

39,247,000

_—

(DEPT.

105.86

103.00

——

PAPERBOARD

NATIONAL

LIFE

34,907,000
69,738,000
60,271,000

MANUFACTURERS'

:N°V- 2

Group

COMMODITY

MOODY'S

$158,681,000
40,535,000
9.041,000

OF

TO

106.04

115.63

104.83

Baa"—IIII"111211IIIII
Group

117.1

Total

95.61

110.88

110.52

—

-

Utilities

102.7

PAYMENTS

values

2.88

Public

101.5

COMMISSION—

Policy dividends

Nov- 2

—

Railroad

175,300

ASSO¬

Annuity payments

Nov. 2

»'

213,800

'"$168,048,000

Surrender

110.70

corporate

Aa

205,500

20,039,090
9,044,000

place

payments

13.300c

115.43

Nov. 2
__Nov. 2
Nov. 2

:

—

Group

U. S. Government Bonds

Average

463.8

In

endowments

13.500c

BOND YIELD DAILY AVERAGES:

MOODY'S

429.1

19,276,000

beenfits

10.000c

Nov. 2
Utilities

426.7

spindle

per

INSURANCE—BENEFIT

11.500c

Nov. 2
—Nov. 2

Aa

Public

22,714,000
19,306,000
8,583,000

22,944,000

10,455,000

shipments (units)

14:550c

v

Nov. 2
Nov. 2

Baa"
Railroad

8,745,552

22,720.000

COMMERCE

14.800C

Nov. 2

:

A

Industrials

7,817,438

DAILY AVERAGES:

—

-

7,433

.

October

hours

11.500c

11.500c

corporate

Aaa

15.000c

15.000c

.Oct. 27

________

at

Government Bonds

Average

bales)

POLICYHOLDERS—INSTITUTE
INSURANCE—Month of August:

.

at———

Louis)

MOODY'S BOND PRICES
U. S.

LIFE

v.'.;:

at—

Louis)

(East St.

9,041

BRADSTREET,

(DEPT. OF COMMERCE):
in place on Oct. 2

heater

Disability

of

QUOTATIONS):

at

$33,817,000

THE

of Railway Employment at middle
September (1953-39 average=100)

4.801c
$56.59

(New York)

$32,582,000

Index

4.798c

refinery at—
refinery at—

Export

2,381,000

9,790,000
4,451,000
1,286,000

;

water

$56.59

Domestic

Straits

IN

MANUFACTURERS
CIATION—Month of September:

4.798c

J.

2,386,000

9,256

(NEW)
&

APPLIANCE

$56.59

M.

4,614,000

5,584,000
2,290,000

liabilities

(running

spindle

.Oct. 26

&

$13,676,000

$36,381,000

service

October

.Oct. 26

(E.

$12,388,000
4,202,000
11,225,000

5,366,000
11,879,000

Spinning spindles
Spinning spindles active on Oct. 2
Active spindle lfours (000's omitted)

PRICES:

Electrolytic copper—

$11,262,000

STATES—DUN

Oct.

ton)

PRICES

METAL

31

686

INC.—Month of September

(per gross ton)———

Scrap steel

80

912

liabilities

INCORPORATION

lb.i

(per

59

liabilities

INTERSTATE

gross

89

218

&

BRADSTREET, INC

(per

100

COTTON GINNING (DEPT. OF
COMMERCE)—

113

kwh.)
AND

85

336

819

liabilities

Active

Oct. 23

145

94

number

8,470,000

INSTITUTE:

(COMMERCIAL

187

451

88

liabilities

Total

$134,386,000

113

——II

number

service

Construction

$151,525,000

406

number

Wholesale

87,888,000

RESERVE

100

=

153

~

COTTON SPINNING

——

AVERAGE

September:
number

262,008,000

107.121,000

507,000

steel

Ago

$149,907,000

Manufacturing liabilities

$358,366,000

113,112,000

Oct. 28
:

$220,233,000

Oct. 28

8,830,000

Pig iron

Month

BRADSTREET,

number

Commercial

BUSINESS

Oct. 23

Finished

Year

M<mth

OF

number

Construction

665,039

:

IRON AGE COMPOSITE

GOVERNORS

804,413

623,410

.

000

of that date:

Previous

of

Manufacturing

UNITED

(in

OF

SYSTEM—Month
(in thousands)

September

of

Commercial

Oct. 23

of cars)—Oct. 23

(no.

Oct. 28

output

DEBITS—BOARD

Total

(U.

ELECTRIC

are as

8,163,000

140,540,000

38,212,000

Oct. 23

FAILURES

■>

125,571,000

Pennsylvania anthracite

Electric

6,224,350

116,928,000

22

S. BUREAU OF MINES):
Bituminous coal and lignite (tons)

EDISON

6,183,650

22

38,796,000

CONSTRUCTION

SYSTEM—1047-4!)

either for the

are

Latest

INC.—Month

133,25^00.0

Federal

DEPARTMENT

BANK

2,096,000

38,874,000

and municipal

COAL OUTPUT

of quotations,

cases

BUSINESS FAILURES—DUN &

Oct. 22

construction

State

93.0

135,437,000

construction

Private

Public

in

or,

Ago

'"74.5

Oct. 22

construction

S.

U.

Total

that date,
■

Oct. 22

—;

freight received from connections

CIVIL ENGINEERING
NEWS-RECORD:

Ago

§75.7

Oct. 22

ASSOCIATION OF AMERICAN RAILROADS:
Revenue freight loaded
(number of cars)
Revenue

Week

production and other figures for the

Dates shown in first column

Year

at——-

(bbls.)

oil

Month

on

at—

fuel

Distillate

month ended

Nov. 7

gasoline

(bbls.) at——
oil (bbls.)

Kerosene

month available.

cover

THE FEDERAL RESERVE

unfinished

and

Previous

Week

AMERICAN PETROLEUM INSTITUTE:
Crude oil and condensate output—daily average (bbls. of
42 gallons each)
Oct.
Crude runs to stills—daily average (bbls.)
Oct.
Gasoline output (bbls.)
Oct.
Kerosene output (bbls.)—
Oct.
Distillate fuel oil output (bbls.)
1_
Oct.
Residual fuel oil output (bbls.)
—____Oct.
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished

or

or

Nov. 7

(net tons)

Steel

•

following statistical tabulations

latest week

Business Activity
Equivalent toingots and castings

(1859)

equipment)

taxes

appropriations:
stock

On

common

On

preferred stock—

.«•—

—-

Ratio of income to fixed charges

——

2,008.695

—
-

2.65,

V

1,425,190s
2.93

3,145,710
108,642,702
74^92,413
2,909,774
71,982,639
42,156,692

51,878,806

4*474,575
3.22

3$

The Commercial and Financial Chronicle

3S

utterly incredible as it may
the truth of the matter is

cause

Continued from page 6

seem,

employment—and if we truly desire to make jobs for those who

this: That if the Federal Government

Don't Throttle the

and

Thursday, November 4, 195^

.

.

Er^iPw

highways

stepping

By

«mi^rts

the

Program!

thousands of
vital
vital
our
national
of

employment

ate

but would also make a
but would also make a

men

rnhn.

to

contribution

growth and development.

surely

taghlv desirable

should

be done—and

as

been

has

this

it

stand

So it is
that this
I underdone by

Congress during the past year.
this

while

But

Works

benefit to the nation
let

of Public
permanent

type

is of

Program

a

as

whole,

admit frankly that it affords

us

anly

solution

stopgap

a

the

to

perfectly

And let me make this

deductions

and

exemptions

—

his first $2,000-just as he does
and then he would pay 100%
and
pay
on everything nvpr $2,000.
or, owrvthinc over $2,000. That
That
means that no man or woman in
America would be permitted to
keep more than $1,600 of taxable
income a year. And the government would still be $3 billion
short of raising the money it
Would need if it tried to take over
the Private Works Program!
now;
n0w;

h„

the

construct

who

men

people who loudly insist that

very

their hearts are bleeding for the
chines and materials that go into unemployed.
They demand jobs
it, but they also open up perma- for all; but they oppose the only
uont jobs to the men and women means by which this end can be
who will operate the enterprise permanently accomplished.
Their
the

produce

who

ma-

example, most of you know
that U. S. Steei has recently com-

course, it just doesn't make sense,
risville, Pa.
At the peak of conDid you ever stop to think what
struction, some 9,000 men were would happen if these misguided
engaged in building these facili- gentlemen actually had their way
ties; but although their part of .... . if they succeeded in killing
that job is now finished, this plant investment
incentive and thus
pleted its great new mill at Mor-

and day out
employment to about

—give

6.000 people.
we

have the first—and

r

these

between

of projects.

should

two

kinds

.

Public Works can—
provide temporary

—

relief in times of stress; but only

enlarging the Private Works
Program can we open up permawent jobs for our growing labor
force.
There just isn't any other
answer to the problem.

by

i

-I

p

n

.

T

1

„

Capital Required to Create Jobs

probably. the most important—dif-

jl

.

.r

Taxes As They Are Today

Zotox Pharmacal Co., Inc. is in
the business of developing for.
mulae for new drug and medicinal
products; of owning trademarks
and licenses with respect to their

Let

us

talk no more,

in many of those depression years,
Right now, moreover, the average
percentage yield on industrial
common stocks is lower than it
has been at any time in the past
seven years. And yet, as we sit in
this room, the .fact remains that
these self-same stockholders, who
for our Private Works Prothe only group of peopie in this country whose income
is subjected twice to Federal inpay

gram, are

taxes.

come

Among

taxes

by

leading Whfnf
lady of

a

sl?ge' S e ?ai?

they are today, a
girl might as well marry for love,
Well that, perhaps, is something
less than a national tragedy; but
with

as

worries

taxes

me

the fact that

is

they

as

may

well be

Tomorrow, the poor girl is going

vr.YavcWt^tlivePo0nr iovc
have to live
love

to

on

Offers Sail Builders

Common Stock at $3
Gabriel Securities, 3420 Bergenline Avenue, Union, N. J., is of¬

''soaking the rich"; nor can we, I vate Works Program? Is that the
fear, find any other tax formula way to make jobs for the unemthat would yield this huge sum of ployed?
money
successfully.
We must
No
m
friends
make no misrecognize frankly that the govern- take about it
This is not—and

fering publicly
common

CU1UUIUU
Dil

formula in order to lighten the
burden in the brackets above
$2,000, then it would have to increase correspondingly the burden
on

.

in

eiementarv

is aiso

u

I

well.

as
as

hope

no

special

one

will

pleading

accuse

when

nm

iuS°the $28gh?lhon^
it get the $28 billions:

Airm Ati

t

paid for always out

These

den

taxes

on

American

of
m

of engaging principally in
the business of manufacturing and

P°se

philosophy

y
H '
Y0U £n0^',we{< 3
a +
np™a~
days, about the greatest good tor
tbe
nV
,eF\
°P t0.
about "• ; at1rea y
J?1n 1 what we mean at all. ine

selling soil builders, conditioners

and fertilizers,
.pj^

.

,

all

fall

* W0Uld sion °f inflation

now' but while

u

this could be done very simply by
™**ely soaking the rich .some

problem of full employment is by
no means confined to the 2% milRon people who are out of work

vf' /vf is a widely-prevalent
be.lief in the ranks of labor that
more,
course

and certainly, that
which

many

powerful political
would demand

™0llld So
sue.

who

taxes.

are

1

™

I

is

of our most

pressure groups

called
ca

upon

the

We

the

are

on

this moment.
next
22

20

years

million

Yolk to make

tinU

Sometime in the

must

we

additional

PTav aommodat.e
Tax force; and

em-

^APn ! ? latest official

Amfl

asked

eau.
And I asked them this
^ esi 11 •

'Tf the Federal Government had

heavy bur-

a

as

those

of

of "Glorion,"

with

Private

to raise $28 billion in

.

Works,




it

is

a

is

the

secret

manu-

process,

plant food, fertilwith distributiion in ten States and Cana(ja
The
piant js located in

.

jzer

our

at

irp

open

jobs to

growing

present
atini+nl

rates

up
ac-

vpm11

a

1

new

reven-

ter trillion dollars in

an(j

a

sor

builder

facili-

I

omy,

leave it

mean

to

to

you

ine!

.

.

and how much?"

every

land* and if
Can

we

number

and
by

some

for

and

in

woman

this

miracle

we

restore that homely phi-

ever

losonhv to the nublic

front
4-1

discussion

_i

i

then tmly
opinion
God's

new

in these troubled times

us
a.

our

1

11

we7haii,7n

have

help

u

my humble
performed with

the

possible

greatest

equipment, modern bag-

ging units"and incorporation of a

liquid nitrogen plant. Approximately $65,000 will be expended

service to every man who needs
job

a

to

every

who

man

has

for the piloting of

a

econ-

the general funds of the

company

for general company purposes.

Loewi Adds

to

Staff

1

Joins Bache Staff

(Special to The Financial Chronicle)

MILWAUKEE, Wis.—Roman G.
r

nr\r.r.lrinrt

What

is the greatest good

entire

man

Wild

Jv->

Purchase of the Tennessee plant,

t'onal storage capacity, purchase

the

rinli

nn*

made

of

true Americans.

honestly want
for

*
*
ing deceptively about gifts to :Lhe

"

to securing funds through
this offering. Such advances were
in part payment for the

prior

a process to
manufacture nitrophosphate prodj0b and to every man who will u°ts under the patents of the comto imag- 'seek a job,
through all the years ParW- The balance of approximately $74,000 will be added to
to come!

And what that kind of

inflation would

immediately prior to and after
the incorporation of the company
in order to expedite its operations

grave national issues that con-

any

wbuuiiv iu me uuuiit. uibLu^Mun ui

this

(Yes' 1 said trillnon—not

kmS-'

billion.)

can
division of thought

dent, who has advanced that sum

Purchase of raw materials, and
working capital. Approximately
$70,000 will be used for the purchase of additional raw materials
and to increase the capacity ot
tbe Tennessee plant from 40 tons
to approximately 200 tons per day
through the construction of addi-

be

among

labor the

nimctmnnt

new

Well, on that question, there
never

ues—and if this money were to
g0 there are the plain
unvar
be taken from the highest possi- nished facts of the
matter; and
ble income brackets, without rais- the time has
clearly come, I think,
to diminish the total number of ing the rates on the lower-bracket
when we ought to face up to them
permanent jobs and to delay the taxpayers-who then would pay
squarely. There is no use in talkcreation of new ones.

corporation

facturer, under

.

ployed; and furthermore they act
as a powerful depressant upon the
entire economy.
Thus they tend

But

cents)
cents;

vaaa!

the subject. I should
Rke merely to point out that the

I

point out that Public Works must
be

shares of

10

_

a quar-

of

(par
vpai

International

ware 011 APril 8> 1954 for the Pur~

it

And

economics

clear-cut question of basic

a

greatest number has nothm0
whatever to do with it.

called poor.

2udMn'ZtelhpSdon<? me that lt Sim" some calculations for me which W'° ,require a caPital investment
sfomedcalculation^for"m#.0wlfirh 0f substantially more than
ply can t be done.
So

100,000

stock

siwk.

Builders

Inflation—A Despictable Tax
Should we ignore the hardships Clarksville, Tenn.
on the average, to create a job
And this holds true, of course, of the unemployed merely because
On the company's property is
for one man; and last year, Amer- even if we turn to inflation as a their number is so small? Should approximately 500,000 tons of calican industry poured about $28 solution of the problem; for in- we tolerate injustice to investors cium which is a necessary combillion into new plants and facili- flation, surely, is the most despict- on the grounds that they are a ponent part of the product Glorj
_r
ties.
So, presumably, it main- able tax of all. It falls with crush- minority group, too weak to de- i0n. This amount is sufficient for
qnrl
r\l
fnnrl
tamed and provided employment ing effect 011 the weakest, most fend themselves against discrimi- the manufacture of approximately
for some 2V3 million people who defenseless groups in our econ- nation? Do we really believe that 2,500,000 tons of Glorion.
would otherwise be out of work, omy—upon the aged and the pen- the so-called "many" have some
Of net proceeds, $11,000 will be
But let u? suPP°^e' purely for the sioners, and on the jobless work- God-given right to exploit (Cthe repaid to S. Spencer Grean, Presi-

New

me

The

Gabriel Securities

all the eco-

nomic groups in this country, they
alone must suffer this unjust discrimination.
Now let's be honest about it. Is
then, about that the way to enlarge our Pri-

It takes about $12,000 of capital.

^

what

dis-

ringworm and other fungus infections; and also expects to market in November, 1954, a formula
for the relief of acne, pimples and.
blackheads,
to
be
known as
"Triocin."

is

difference

second

not long ago

with

super-

completed the initial stages for
the promotion of another product
known as "Hydrotox," a remedy
for the relief of athlete's foot,

sake of illustration, that private ers who are now forced to
spend few"1
industry had NOT been able to whatever savings they once salted
Or do we believe—as our forelargely economic; and it deals obtain, from any source, the funds away in a bank, a government fathers did—that every living soul
with taxes—if you will pardon the which it spent last year on these bond, an insurance policy, or in in this nation has the same
rights
mention of that highly distastecapital improvements.
Suppose the old sugar bowl in the cup- as every other, and that the welful word in these otherwise happy the government had had to pro- board.
fare of each is a matter of equal
surroundings.
Maybe you heard vide all these jobs through a Pubj shall not belabor the discus- concern to us all?
the

Now

working

capital.

holder's share of the national in- production and sale; and of

those in the brackets below
$2,000. So let us agree quite honthrottled the Private Works Pro- estly that the rich have already
gram? Well, again, let's just look been soaked, and that there's no
at the facts:
one left to soak except the so-

will continue—day in

and

c

$30,000 for additional

,

For

ference

in"

Corp.
Soil Buildei's International Corp.
: $3
solution of the problem would be ment never gets money except never should be—a
per share.
quest'on of at
per sbare
Soil
Builders
International
to diminish existing incentives— from the people themselves; and partisan political debate. It is a
C"n
R,,n/q'
not to enlarge them.
And of even if Congress should alter this s{mpje 'straight-forward'problem Coi'P- was incorporated in Dela-

thereafter

So there

s^eV^

its

cie;ase 11s saies of Hydrotox";
its sales
tor the promotion of
tor the
' a
re"Qainder of

$70,000
$70,000

&oaKma tne rich come—the share which goes to vising the production and
Now I do not know how the him in the form of dividends—it tribution of such products.

like it at all—and neither, I think,
would the coal miners of West
Virginia. Our standard of living
in America would be reduced to
the level of the Dark Ages. There
would be little demand for new
houses and new automobiles, or
for millions of the refrigerators,
washing machines, television sets,
they must wait for another gov- the precious spark of incentive and other appliances which have
eminent
program
to get under which prompts Americans to want become modern household necesway.
•
to save and invest in job-creating sities. Factory after factory would
In* the case of most Private enterprises.
shut down, and we would have in
Works projects, however, it is all '
Yet whenever Congress tries— this country the greatest depresvery
different.' When new in- ns it did this year—to encourage sion and the greatest mass unemdustrial facilities are built, they that type of investment, its actions ployment that any nation—probnot only provide temporary work are universally denounced by the ably, has ever known.
and

.

10 rroviae rnvaie wor s

continuing employment for arises. So it is the easy way out.
after it has been comBut the size of the Private
p^eted.' While it is in progress, it Works Program depends upon the
gives temporary-jobs to those who individual, day-to-day decisions
!s.
doing the work; but when it made by millions of our citizens,
*2 finished, these men are right It cannot be enlarged by governback where they started. They are ment edict.
All that Congress and
unemployed; and if they cannot the President can do is to protect
Find a job in private enterprise, and preserve, in every proper way,

the

„

y

We must also acknowledge, I
We must also acknowledge. I
think, that the only known way to
expand Private Works is to preserve investment incentive and to
encourage the hope of profit.
And finally we must acknowledge, too, that this vital incentive
has been substantially reduced in
the past 20 years. Today the stock-

anyone

plant

^

,

'"^Trovi^Pdv'atT wirk] " ?rlase
10 ^roviue rnuie worns
ciease

-vide

for

Co., Inc. i3
*

,

Pharmacal Co., Inc. common
stock at a price of $3 per share,
learned in the thirties the utter
Pr°ceeds from the sale of
futility of Public Works as a the common stock will be used by
means
of providing permanent the company for working capital.
employment.
nnnUSG appr0x~
imately $60,000 to expand the

on

R.

.

ottering 100,000 shares of Zotox

We must acknowledge frankly
the need for enlarging our Private
Works Program — for surely we

would still pay a 20% income tax

ine Lttect 01

Stock Offered
Frederic PL Hatch &

action.

it still wouldn't get the $28

year,

billion!

out of savings which might otherwise lie idle; and more than 75%
o£ this new capital goes, directly
irectly, to the payment of
and indirectly, to the payment ot
wages.
wages. So by enlarging this proSo by enlarging this program, we stimulate the economy
and hasten the opening of new
jcb opportunities.
Now there are the simple facts
of the case, and clearly there can
be no doubt about the proper
course of action. But right at this
point, we come up against a third
and final difference that cannot
be overlooked.
A. Public Works
Program can be started at the

up work on such
government would

provide for the immedi-

not onlv

a

Zofox Pharmacal

cer-

tainly there can be no honest
doubt as to our proper course of

the burden on their ciear, so there can be no misunfellow men.
Moreover, these derstanding about it: Each taxprojects are financed, voluntarily, payer —after claiming his usual

construction

the

to take from every tax-

out of work—then

now

are

lightening

im-

harbor

and

river

likp

rwnvements

were

payer in this country, every penny
of his taxable income above $2,000

Private Worfcs

.

.

(1860)

_

•

has
.

n

become

with ^

connected

nr.*

v-.

i

-b

rr

'

(Special to The Financial Chronicle)

GREENSBORO, N.
...

...

.

C.

—

James

....

.i.

—

(1861)

Number 5374... The Commercial and Financial Chronicle

Volume 180

* INDICATES

4t

American Independent Reinsurance

ABS Trash Co., Washington, D. C.
26 (letter of notification) 3,000,000 shares of

7%

preferred series stock (par one cent). Price—10 cents
per share.
Proceeds—To redeem preferred stock, pur¬
chase of property, construction and equipment and work¬
ing capital. Office—11
11th Street, S.W., Washington,
D. C. Underwriter—None.
£ Air Express International Corp.
Oct. 28 (letter of notification) 70,000 shares of common

issued upon exercise of warrants. Price—At
par (50 cents per share).
Proceeds—For general cor¬
porate purposes. Office — 90 Broad St., New York.
Underwriters—Granbery, Marache & Co. and Bache &
Co., both of New York; and Joseph Bruce of White
stock to be

Plains, N. Y.
Alabama Gas Corp., Birmingham, Ala.

29 filed 84,119 shares of comon stock

Sept.

(par $2)

being offered for subscription by common stockholders
Oct. 19 at rate of one flew share for each 10 shares

held

(with an oversubscription privilege); warrants to expire
10. Price—$22 per share. Proceeds—For construc¬

Nov.

Underwriter—Allen & Co., New York.

tion program.

Amalgamated Uranium Corp., Salt Lake City, Utah
Sept. 1 (letter of notification) 2,500,000 shares of com¬
mon stock (par three cents).
Price—10 cents per share.
Proceeds—For exploration and development costs. Office
—218 Atlas

Bldg., Salt Lake City, Utah.
Ned J. Bowman Co., the same city.

Underwriter—

American Bosch Arma

Corp., Springfield, Mass.
Oct. 19 (letter of notification) 8,000 shares of common
stock (par $2). Price — At market (estimated at $11.75

share).

Proceeds—To Allen & Co., New York, who
the selling stockholder. Underwriter — James Philips
Co., New York.

per
is

&

American Buyers Credit Co.,

Aug. 6 filed 5,000,000 shares of

Phoenix, Ariz.
stock to be is¬

common

sued to policyholders of American Buyers Insurance Co.
and American
Buyers Casualty Co., and employees.
Price—To so-called

"Expansion Policyholders" (various
policyholders of both insurance companies), and em¬
ployees, at par ($1 per share); and to all other policy¬
holders

in

the

Proceeds—To

insurance

companies,

expand in the

small

$1.25

loan

share.

per

Under¬

field.

writer—None.

Aug.
mon

16

Buyers Insurance Co., Phoenix, Ariz.
(letter of notification) 2,500 shares of com¬
stock, being offered to stockholders of record Aug.
18

on

a

rata

basis; rights to expire on Nov. 12.
($10 per share.)
Proceeds — To ac¬
quire capital required by Arizona law for a stock benefit
insurance company. Office—2001 East
Roosevelt, Phoe¬
nix, Ariz. Underwriter—None.
Price

—

pro

At

St., S. W., Albuquerque, N. M. Under-

(par $1), of which 20,000 Eire for account of com¬

pany

and

•

Barium

Oct.

at rate of

Nov.

.

Co.,

Inc.,/

York, N. Y.

★ Atlas Credit Corp., Philadelphia, Pa.
Nov. 1 (letter of notification) 74,800 shares of 20-cent
cumulative convertible preferred stock (par $2.50) and
74,800 shares of common stock (par 10 cents) in units
of one share of each class of stock. Price—$4 per unit.
Proceeds
For further
expansion.
Office — 2411 No.
Broad St., Philadelphia 32, Pa. Underwriter—George A.
Searight, New York.
—

Automatic Remote Systems, Inc., Baltimore
Aug. 4 filed 620,000 shares of common stock (par 50
cents), of which 540,000 shares are to be offered to

80,000

shares

be

to

issued

underwriter.

to

share.

Proceeds—For manufacture of
Telebet units and Teleac systems and additions to work¬
ing capital. Underwriter—Mitchell Securities, Inc., Bal¬
per

timore, Md.
Aztec

to

13

Oil

filed

&

of record

Gas

Co., Dallas, Texas

285,005 shares of

be offered

for

subscription by

Oct. 29 at the rate of

(11/17)

stock

common

new

one

(par $1)

stockholders

common

share for each

Corp., New York

(11/5)

one

share for each four shares held as eff

new

3

(with an oversubscription privilege); rights
expire Nov. 24. Price—To be supplied by amendment*
Proceeds—To repay

short-term loan made to subsidiary;
completion of seamless tube mill
being constructed; and for general corporate purposes*
Underwriter—Lee Higginson Corp., New York

a

major

Oct.

of com-,
mon stock (par 25 cents).
Price—$1 per share. Proceeds
—For expenses incident to drilling for magnetic iron ore.

Oct.

Steel

filed

12

portion

Beckman

&

Price—$6.50

599,215 shares of common stock (par $1)
to be offered for subscription by common stockholders

Arkansas Natural Resources Corp.
June 11 (letter of notification) 299,500 shares

Underwriter—Eaton

selling stockholders.

ing capital. Business—Mineral wool products. Under¬
writers—Estabrook & Co., New York; and Dehaven &
Townsend, Crouter & Bodine, Philadelphia, Pa.

writer—None.

par

10,000 for

share. Proceeds—To retire $83,600 of 6% deben¬
tures; reimburse treasury for retirement of 145 shares
of 6% preferred stock (par $100) and for general work¬

per

ir Andro Uranium Corp., Albuquerque,. N. Mex.
Oct. 25 (letter of notification) 1,000,000 shares of com¬
stock (par one cent). Price—Five cents per share.,
Proceeds—For exploration and development expenses.

and

Price—To be*

stock

mon

Price—$3.75

rights expire on Dec. 8.

* Baldwin-Hill Co., Trenton, N. J.
Nov. 1 (letter of notification) 30,000 shares of common

Ampal-American Israel Corp., New York
17 filed $5,000,000 of 10-year 5% sinking fund
debentures, series C, due 1964; $3,125,000 of 5-year dis¬
count debentures, series D; and $4,100,000 of 10-year dis¬
count debentures, series E. Price—Series C, at par; se¬
ries D $2,507,659.53, to yield return equal to compound
interest at rate of 4%% per annum, compounded; and
series E $2,502,111.10, to yield 5%.
Proceeds—For de¬
velopment and expansion of agricultural, industrial and
commercial enterprises in Israel. Underwriter—None.

New

REVISED

writer—None.

Sept.

Office—Rison, Ark.

ITEMS

'

ISSUE

developed leases from the Southern Union Gas Co., re¬
tire bank loans and to increase working capital. Under¬

Utah
Aug. 18 (letter of notification) 3,320,000 shares of capital
stock. Price—At par (five cents per share). Proceeds—
For exploration and development expenses. Underwriter
—Ogden Uranium Brokerage Co., Ogden, Utah.

Office—217 Third

PREVIOUS

supplied by amendment. Proceeds—To exercise an op¬
tion to purchase certain oil and gas production and un¬

& Co., St.

Goodbody

—

shares held;

seven

Co.

American Uranium, Inc., Moab,

public

American

•

Sept. 2 filed 900,000 shares of common stock (par $1).
Price—$4 per share. Proceeds—To be invested in secu¬
rities of other companies and for working capital. Office

—Orlando, Fla. Underwriter
Petersburg, Fla.

ADDITIONS

SINCE

Securities Now in Registration
Oct.

37

\

Instruments, Inc
150,000 shares of common stock

18 filed

Price—To

for

(par $!)»

be

supplied by amendment (to be related to
market price at time of offering).
Proceeds—To retiias?

$1,000,000 of short term unsecured notes and for expan¬
sion
and
working
capital.
Underwriter — Lehman
Brothers, New York. Offering—Expected today (Nov. 4).
Big Horn Uranium Corp., Ogden, Utah
Sept. 23 (letter of notification) 4,000,000 shares of com-mon

stock

(par one cent). Price—Five cents per share*
exploration and development expenses*

Proceeds—For

Office—3375 Harrison
—Allan

W. Egbert

Blvd., Ogden, Utah.

Underwrite*

Co., 2306 Iowa Ave., Ogden, Utah*

1

Bikini Uranium

Corp., Denver, Colo.
Oct. 15 (letter of notification) 3,000,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds—For exploration and development costs.
Of¬
fice
705 First National Bank Bldg., Denver, Colo.
Underwriter—I. J. Schenin Co., New York.
—

* Black Hills Power & Light Co. (11/23)
39,900 shares of cumulative preferred stock
(par $25—convertible through Nov. 30, 1964). Price—To
be supplied by amendment. Proceeds—To redeem 5.40%
preferred stock, repay bank loans and for new construc¬
tion. Underwriter—Dillon, Read & Co. Inc., New York*

Nov. 3 filed

^ Blue Jay Uranium Corp., Elko, Nev.
15 (letter of notification) 1,000,000 shares of com¬
mon stock. Price—25 cents per share. Proceeds—For ex¬
Oct.

ploration and development costs.

Office—402 Hendersom

Bldg., Elko, Nev. Underwriter—Security Uranium
Service, Inc., Moab and Provo, Utah.
Bank

NEW

ISSUE

CALENDAR

Chemical Co.

Brothers

November 4

Hawaii

(Territory

(Thursday)

November

of)_

(Bids 10

a.m.

Bonds

16

Pacific Telephone & Telegraph Co

EST) $6,500,000

(Bids

11:30

" ~ ~

For
N.J.

November

5

Producing Properties, Inc,_-Debs., Pfd. & Common

(Friday)

Barium Steel Corp._

Common

(Hemphill,

Colorado Oil & Gas Corp

November 8

to

Puller

&

Co.)

Campbell

(H.

Soup

and Rauscher,

Common
underwriting)

Common

Co..
Boston

Corp.)

1,300,000

shares

(Thursday)

or

Preferred

Compo Shoe Machinery Corp,___
(Loewi

&

Co.)

$773,225

Water

stockholders—underwritten by The First
Corp. and White & Co.) 48,047 shares

to

Boston

Common

Ripley

(Harriman

Common

Preferred

Electric, Inc.-

Tung-Sol

Yard-Man, Inc.

common

Inc.)

& Co.

$5,000,000

(Watling, Lerchen <fc Co.) $1,121,680

(Tuesday)

«.

Cott Beverage Corp..
200,000 shares

Missouri Insurance .Coi
(R.

S.

Dickson

&

Co.

Panellit, Inc.

Common
and

A.

G.

&

Edwards

Sons)

202,320 shares

«

Black Hills Power &

Common

(Ira Haupt & Co.)

(

j

1

:

Penn Fruit Co

Preferred

and

Virginia Electric & Power Co

11

a.m.

EST)

Common

Corp.

November

and

Continued

on

page

to be

invited) $10,000,000

Public Service Co. of New
(Bids

to

be

Bonds

Hampshire.:

invited)

$12,000,000

Merrill

Lynch,

December

Pierce,

12

(Bids

(Friday)
Common

November 15

(Monday);

(Van Alstyne, Noel & Co.) 200,000

New Orleans

invited)

14

$15,000,000

(Tuesday)

to

be

invited)

Debentures

$30,000,000

■

..Bonds

Public Service Inc
(Bids to be invited)

shares

Hickory Copper Co

be

Tele. & Tele. Co

(Bids

Common

to

December

$300,000

Mexican Gulf Sulphur Co

Bonds

Gas Co..

New England

New York

$6,000,000

Corp.)

Investing"

Corp.)

December 15

$300,000

21:..

Common
$300,000

Boston

Philadelphia

Common

Investing

Warren (J. C.) Corp

(Wednesday)

1

380,000 shares

(Graham, Ross & Co., Inc.)




purchase from National Marine Terminal,

Preferred

Co

Power
(Bids

$4,000,000

Glamur Products, Inc

(General

Proceeds—For

(Tuesday)

November 30

Laclede

(General

California Tuna Fleet, Inc., San Diego, Calif..
Sept. 29 filed $4,000,000 of 6% sinking fund debentures
due 1966 and 160,000 shares of common stock (par fiv«
cents) to be offered in units of a $500 debenture and 29
shares of stock.
Price—To be supplied by amendmeoL

Common

Fenner & Beane)

Old

Inc., East St. Louis, III.
140,000 shares of common stock (par $1)
being offered for subscription by stockholders of record
Aug. 28. Price—$5 per share. Proceeds—For construc¬
tion of racing plant. Underwriter—None. The directors
and their associates will purchase any unsold shares.
Downs,

(Bids to be invited) 600,000 shares

Interstate

Bonds

Union Tank Car Co
Boston

$997,500

Common

Common

Sierra Pacific Power Co

First

Inc.)

Co.

&

Consolidated Freightways, Inc
(Blyth & Co., Inc.) 100,000 shares

105,000 shares

(Hemphill, Noyes & Co.) 100,000 shares of each

(The

Reed

(Dillon,

\

Preferred

Light Co

Cahokia

Aug. 30 filed

Common

(Bear, Stearns & Co. and Lehman Brothers)

(Bids

(Tuesday)

November 23

j

November 9

Burlington Mills presently own 503,245 shares^
Under¬

52.4% of the outstanding Pacific Mills stock.

writer—None.
•

....Common

Co

Hackensack
(Offering

Cooney & Co.) $299,880

Burlington Mills Corp., Greensboro, N. C.
151,936 shares of 4 y2% preference stock (par
$100) and 546,969 shares of common stock (par $1) being
offered in exchange for the 455,807 outstanding shaifc®?'
of capital stock of Pacific Mills not now owned by Bur¬
lington Mills ori the basis of one-third share of pre¬
ferred and lVs shares of common stock for each Pacific
Mills share. The offer is to expire on Nov. 5, 1954, unless
extended.

underwriting) 381,018 shares

Debentures & Common

(par 10 cents). Price—$2.75 per share. Proceeds—
working capital. Office — 575 Forest St., Orange,,
Underwriter—Batkin & Co., New York.

Oct. 1 filed

(Wednesday)

November 18

$298,000

Ltd
J.

& Co.

$10,000,000

stockholders—no

to

(The First

(Scott, Horner & Mason, Inc.) $1,311,000

Mines,

November 17

(Offering

.Common

stockholders—no

Shenandoah Gas Co
Tarbell

Co.)

Common

National Fuel Gas Co
(Offering

&

Aztec Oil & Gas Co.„__.

(Monday)

Holiday Plastics, Inc
D.

Shields

Co.,

Preferred

(Exchange offer to Derby Oil Co. common stockholders
—underwritten by Union Securities Corp.) $12,195,500

(S.

Noyes <fc
Pierce

<Oflering to stockholders—underwritten by Lee Higginson Corp.)
599,215 shares

(N. J.)

(letter of notification) 109,000 shares of common,

stock

Debentures

$50,000,000

EST)

a.m.

Oct. 1

(Tuesday)

Illinois

Central
(Bids

Pittsburgh

San Fran6isc6"

(Wednesday)

Debentures

RR
to be invited)

$18,000,000

Private IPires to

all offices

Chicaco

Cleveland

38

The Commercial and Financial Chronicle

38

offer

from page 37~

at

subject
to certain liabilities; for construction of four tuna clip¬
pers; and the balance for working capital and general
corporate purposes. Underwriter — Barrett Herrick &
Co., Inc., New York.
Inc. of its undivided interest

in 17 tuna clippers,

Campbell Soup Co. (11/17)
Oct. 27 filed 1,300,000 shares of capital stock (par $1.80),
repersenting 13% of the total stock of the company.
D««a/)aa#1c!
JVrk
Price—To be supplied
by amendment.
Proceeds—-To
Estate of Dr. John T. Dorrance. Underwriter—The h irst
—

_

i»

,

+

Oct. 5 filed 268,686 shares of

wholly-owned subsidiary.

Underwriter—None.

Caramba McKafe

Corp. of America
Sept. 17 (letter of notification) 100,000 shares of class
A stock (par 10 cents). Price—$3 per share. Proceeds—
To purchase equipment and machinery and for working
capital. Office—615 Adams St., Hoboken, N. J. Under¬
writer—Garden State Securities, same city.

&

Price—At par (one cent per share).

stock.

com-

April

^Cascade

Natural Gas Corp., Seattle, Wash.
Oct. 27 (letter of notification) 23,625 shares of common
stock (par $1) to be offered for subscription by stock¬
Price

—

$6 per share.

Pro¬

ceeds—To repay bank loans and

promissory notes. Office
Bldg., Seattle, Wash. Underwriters—Blanchett, Hinton & Jones, Seattle, Wash., and First Califor¬
nia Co., Los Angeles, Calif.
—Securities

Central

Uranium

&

Milling Corp., Denver, Colo.
Sept. 27 (letter of notification) 600,000 shares of com¬
stock

mon

Proceeds

(par

cent).

one

Price

—

50

cents per share.

For exploration and

development expenses.
Empire Bldg., Denver, Colo. Underwriters—
Gearhart & Otis, Inc., and Jay W. Kaufmann &
Co., both

Office

—

—

of New York.
•

Certain-teed Products Corp.,
Ardmore, Pa.
Sept. 28 filed 412,950 shares of common stock (par $1)
being offered in exchange for 825,900 shares of capital
stock (par $7) of Wm. Cameron &
Co., Waco, Tqx., at
rate of

share

one-half

in

cash

share

for

offer expires on

each

of

Certain-teed, plus $11.50

share

of

Cameron

stock.

The""
\

ir Chemecon Corp., Coopersburg, Pa.
Nov. 1 (letter of notification) 40,000 shares of
capital
stock (no par).
Price—$6.25 per share. Proceeds—To
..

build plant at Houston, Texas, and for
working capital.
Business—To extract fluorine contained in waste

gases.

Office—129

So.

State

St.,

Dover, Del.
Baltimore, Md.

Stein Bros. & Boyce,

Underwriter—

Chesapeake

Industries, Inc.
996,304 shares of common stock (par $1)
and 33,818 shares of $4 cumulative
preferred stock (par
$10) to be offered in exchange for preferred and com¬
Oct.

15

filed

shares of Home & Foreign Securities
Corp. and Oils
Industries, Inc., common shares of common stock of
Intercontinental Holdings, Ltd. and Intercoast
Petroleum
Corp. and capital stock of Colonial Trust Co. The offer
is subject to deposit of not less than
90% of the stock

mon

&

of

Colonial

the

first

and

three

less

not

companies

than

80%

mentioned

of

the

stock

of

above.

stock

(par three cents). Price—25 cents per share
Proceeds—For working capital, etc.
Office—Hammonds
Ferry Road, Linthicum, Md. Underwriter—Kelleher
&

Co., Washington, D. C.
* Chinchilla Fur Farms, Inc.,
Golden, Colo.
Oct. 27 (letter of notification)
7,200 shares of class A
stock (par $10) and 15,000 shares
of class B stock
(the
latter to be issued in
exchange for chinchilla breeking
stock.
Price—For class A, $10
per share.
Proceeds—
For equipment,
buildings, pens, operating capital, etc.
Address
Route 3, Box 645,
Golden, Colo. Underwriter
—None.

Colorado Fuel & Iron
Corp.
18 (letter of
notification) 3,853 shares of common
stock (no par). Price—At
market ($18.75 per share on
New York Stock
Exchange on Sept. 30). Proceeds—To
Allen & Co., New York.
Underwriter—J. R. Williston
& Co., New York.

Oct

Z ?°rj0rrfd10 0il & Gas CorPv Denver, Colo. (11/5)
V
487<820 shares °* $1-25 preferred stock (par
u

nl

u

*0 be offered in exchange

Derby Oil Co.

on

—Union Securities

a

for

common

share-for-share basis.

Corp., New York, and




stock

aj -ate r

j ier &
I

11

West

stock

common

Price—At par

filed

share of

one

preferred

held;

stock

rights

to

1

($50

1

on

i /ertib

Proceeds—For working
capital/ Office—752 N. Highland Avenue, Los Angeles,

I
fe

Fidelity Acceptance Corp., Minneapolis, Minn,
Aug. 30 filed 6,000 shares of 7% cumulative preferred
stock (par $25), to be offered to employees; $900,000 of
lative class

&

Proceeds—To

5%% capital debentures and 24,000 shares of 6%

Stanley
Co.; The First Boston Corp. Offering—Originally set
for May
11, but has been postponed because of market
conditions.

No

date

new

ceeds

For

—

-^Petroleum
•

Finance

Cornbelt

Oct.

20

Underwriter

Corp., Oklahoma City, Okla.

Insurance

£ot,

(amendment) 122,301
common
(par $1),. representing the unsold balance of
300,000 shares originally registered with the SEC. Price
$3 per share.
Proceeds — For working capital and
general corporate purposes. Underwriters—Cruttenden
Arthur

and

M.

Krensky

&

Co.,

Inc.,

both

\

of

Chicago, 111.
•

Cott Beverage Co. (11/9)
* :
Aug. 27 filed 200,000 shares of common stock (par $1.50),
of which 120,000 shares are for the account of the com¬
pany and 80,000 shares for certain selling stockholders.
Price—To

be

supplied by amendment.
Office—New Haven, Conn.

expansion.
Ira

Proceeds—For

Underwriter-

Haupt & Co., New York.

derwrite

convention.

D.

C.

Office—600

Munsey Bldg., Wash¬

Underwriter4~Nonerv

it Deluxe Check Printers, Inc.
"
Oct. 18 (letter of notification) 3,600 shares of common
stock (par $10) to be offered for
subscription by male
employees pursuant to employees' stock purchase
plan.
Price—$80 per share. Proceeds—For new facilities and
equipment and working capital.
Office —530 North
Wheeler

St., St. Paul, Minn. Underwriter—None.

Desert Uranium Co., Salt Lake
City, Utah
Oct. 18 (letter of
notification) 2,000,000 shares of
stock Price—At par
—For exploration and
mon

524

Atlas

Van

Bldg.,

Blerkom

&

Co.,

(15 cents

per

com¬

share). Proceeds

development expenses. Office—
Lake City, Utah. Underwriter—

Salt

same

city.

Direkt-Form Corp. (N. J.)
(letter of notification) 50,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For working capital.
Business—In orthopedic appliance
and allied fields. Office—151 Hackensaek

of

Ave., Hackensack, N. J. Underwriter—20th Century Pioneer Securi¬
ties Co., New York.
Dole (James)
Engineering Co.
Sept. 17 (letter of notification) $217,524 of 5% convert¬
ible income notes due Jan.
1, 1961 being offered to stock¬
holders
for

Nov.
of

of

record

each five
10.

shares

Each $1

common

Oct.
of

14

on

stock

the

basis

of

$1

(par

$1).

of

notes

held; rights to expire

of notes is convertible into

stock

Price—At

par.

on

Proceeds—

working capital. Office—58 Sutter St., San Fran¬
cisco, Calif.
Underwriter—None.
(James)

Oct.

(letter

15

notification)

135,365

rights

to

scribe to convertible 5% income notes
(each five
entitle holder to purchase
$1 face amount of

Price—At

market

(estimated

at

Proceeds—To selling stockholders.
&

Co. and J.

it Edgemont

Barth

&

cent).

associates will

ment,

cents

per

sub¬

rights
notes).
right).

Underwriters—Broy

Co., both of San Franciso, Calif.

Mining & Uranium Corp.

Oct. 28 filed 3,000,000 shares of

Underwriter

18

common

Mel

*Ha<
Oct.
0

2

.be

;

it the

is of I
iUppli

29

filed

(par

one

Price—25 cents per share. Proceeds—For
equip¬
exploration on purchases of additional claims or

/ ions

Business—Publishes
fice—165

orp.

"Guide for

Sport Fisherman."

Broadway, New York.

Ha\

Jet. 4
ilativi

'rocee

,] vriter
*\>wni

Of¬

Underwriter—None.

Gatineau Uranium Mines Ltd.

I Hei
j Jet. 1
[;| non s

(Canada)

Aug. 10 (Regulation "D") 300,000 shares of common stock,
Price—At par ($1 per share).■■ Proceeds—For exploraand development costs.
Office
100 Adelaide St.
West, Toronto, Canada. Underwriter—McCoy & Willard,
Boston, Mass.

|rFor

—

General

Gas

| fJew
r

M tock

143,500 shares of common stock (par $5)
being offered in exchange for common stock of Consol¬
idated Gas Co. of Atlanta,
Ga., on the basis of 63 /lOOths
a

share of General

The offer is
of

Gas for each

K ror w
I :o, n

^ Hor

Consolidated share.

subject to deposit of at least 175,000 shares

Consolidated

Hoi

)ct. 2!

Corp.

Sept. 22 filed

of

1

Works

it Foster Publications, Inc. (N. Y. )
Oct. 29 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For working capital and general corporate
purposes.

>ct.

:

1

outstand¬

lock

ir General Uranium Corp., Salt Lake City, Utah
Oct. 27 (letter of notification)
1,200,000 shares of com¬
mon
stock.
Price—At par (25 cents per share).
Pro¬
ceeds—For development and
exploration expenses. Of¬

| ield.

stock

out

of

210,000

shares

Underwriter—None.

ing.

writer—P. G.

954

1

fice—404 Boston

Building, Salt Lake City, Utah.
Christopulos & Co., same city.

Hus

'erred
imend

•

loans.

Conn.
York.

Office—276

North

Main

Street,

:>f pric
a

'ir.st T

Hntc
)ct. 2£

Winsted,

recee

tock

it Glamur Products, Inc. (11/12)
Oct. 27 (letter of
notification) 600,000 shares of common
stock (par two cents).
Price—50 cents per share. Pro¬
and

»f Om;

i

Underwriter—Singer, Bean & Mackie. Inc., New
Offering—Expected today (Nov. 4).

ceeds—To

$10,000

repay

advertising

expenses.

Syracuse, N. Y.

i

'0 be

I

for

and

lers:

k Bea

3

Expe
lnv<

Great Chief Uranium

20

common

Proceeds
—

(letter
stock.
—

Co., Salt Lake City/Utah
notification)
20,000,000 shares

of

Price

At

—

par

(one

cent

per

^ug.

of
share).

ive

For exploration and
development costs, etc.
Walker Bank Bldg., Salt Lake City, Utah.

ind fo;

412

apital

same city.
it Great Southwest Land & Cattle Co.,
Phoenix, Ariz.
Oct. 28 filed 1,250,000 shares of class A common stock

be

offered

participating

to

ally.

Price—At

land

for

None.

present

life

and

insurance

Insurance
par

operation

($1
of

future

holders

contracts

issued

} erwri
.

share.

Proceeds—To

business.
-

Key
H 28
lf

special
by Great

of

?eri(

market

^ KuS

Co., and to the public gener-'

per

cattle

3
pr

oon sti

Underwriter—Havenor-Cayias,.Inc.,

to

1

] nan E

Underwriter—Graham Ross & Col, Inc.,

New York.

Sept.

1

) 0 rep;

working capital
Office—119 S. McBride St.,

loan

I
U

Sept. 2

Under¬

(William L.) Clock Corp.
Oct. 20 (letter of
notification) 150,000 shares of common
stock (par $1).
Price — $2 per share.
Proceeds — For
working and new equipment, and probably to reduce
bank

0;

luce
/ a,

★ Gilbert

Southwest Life
stock

I

Proceeds—For investment.

Office

Engineering Co.

of

We

56

\

share

one

For

it Dole

Credit

filed

tion

it Delta Theta Phi, Washington Convention, Inc.
Oct. 18 (letter of notification) 200 shares of
common
stock (no
par), Pri^e—$25 per share. Proceeds—To un¬
ington,

29

Industrial Fund, Inc., Denver, Colo.
600,000 shares of capital stock and 20,000
Systematic (Periodic Payment) Investment Plans ($24,000,000) and 4,000 cumulative (full-paid) investment
certificates i($4,000,000).
Price—For shares at market.

—

Co.

al stc

it Financial

III.
shares of

stock

&

-For

&

Oct.

Freeport,

filed

*Gui

Bishop

lo^ns.

Corp., New York
250,000 shares of 7% cumulative sinking
fund preferred stock. Price—At par ($2 per share). Pro¬
ceeds—For working capital. Underwriter—E. J. Foun¬
tain & Co., Inc., New York.

par '(one cent ^per share).
Pro¬
exploration 'and development expenses.

Offiee-^206i Mercantile Bldg-., Denver, Colo.

cumu¬

Price—At

Dct. 2

'Jan.

com¬

stock."'Prices—At

mon

13 it $8.1
I'! »nd e
§ >7,310
U >f Ho

par.

reduce

H.

Financial

Uranium Corp., Denver, Colo.
(letter of notification) 1,000,000 shares of

11

(par $25).
outstanding bank

sb

pari

i

Co., Minneapolis." Minn., and
B. I. Barnes, Boulder, Colo. Statement effective Oct. 26.

Constellation
Oct.

stock

ier

Under¬

writers—M.

■'

set.

E preferred

wh

i

Underwriter—None.

Calif.

A

Gu

;

| Sept.

share).

per

EDT

\ <feW

for each

expire

;entat

1

4

Unsubscribed shares to be offered to employees.

Nov. 17.

<,

of

shares

8.2

Wheat

of

basis

the

stockholders of record Oct.

1

non

j liggi
{ joint

& Seemann, Inc., Los Angeles, Calif.
(letter of notification) 2,000 shares of 6% cu¬
mulative convertible preferred stock to be offered for
Farnan

Oct. 21

* Chinchilla Corp. of America,
Linthicum, Md.
Oct. 21 (letter of notification)
1,200,000 shares of com¬
mon

| irst

period

a

i ^oeb

writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Morgan

per

Nov. 25.

| 'irst

gage bonds,

Carolina Resources Corp.

l-for-10 basis.

7

com¬

t letiti
! :o. Ir

Oct.

$50,000,000 of first and refunding mort¬
series K, due May 1, 1984. Proceeds—To be
applied towards cost of redeeming $27,982,000 New York
Steam Corp. first mortgage bonds and $25,000,000 West¬
chester Lighting Co. general mortgage bonds.
Under¬

Proceeds

Aug. 19 (letter of notification) 299,000 shares of common
stock. Price—At par ($1 per share). Proceeds—To ac¬
quire claims and mining equipment, erect and equip
processing plant, and for working capital. Office—Nantahala Bldg., Franklin, N. C.
Underwriter — Allen E.
Beers Co., Western Savings Fund Bldg., Phila. 7, Pa.

a

Co., Richmond, Va.

C.

Fune

>s

5,400,000 shares of

possibly uranium). Office—527 Ernest & Cranmer Bldg.,
Denver, Colo.
Underwriter — First Securities Corp.,
Philadelphia, Pa.

.

exploration and development expenses. Office—
317 Main St., Grand Junction, Colo. Underwriter—West¬
ern Securities Corp., Salt Lake City, Utah.

on

Underwriter—J.

C.

Gu

of 40 days; then to public.
Price—5y2 cents per share.
Proceeds—For expenses incident to gas activities (and

Consol. Edison Co. of New York, Inc.

—For

holders

St., Charlotte, N.

_-Iano

yferin^
W^y

Colo-Kan Fuel Corp. for

stockholders of

by

(]

0.

ecen

(par five cents) to be offered for subscription

stock

on

Trade

Loeb

(letter of notification)

Oct. 20
mon

Proceeds —To

Office —221V2

lers:

| Jrotl

Denver, Colo.

Gas Corp.,

Fallon

subscription by common

loan.

;105,
>e cU

Uranium, Inc.

purchase 2Q shares*of common stock to be sold
in units of a $1,000 note ^and one warrants Price—$1,000
per unit (each warrant 1s'exfercisable at $10 per share.)
bank

jrefe

)refe

18

(letter of notification^ 5,000,000 shares of com¬
mon stock
(par one cent).
Price—Five cents per share.
Proceeds—For exploration and development expenses.
Office—506 First Security Bank Bldg., Salt Lake City,
Utah.
Underwriter—Utah Securities Co., same city.

rants to

Carnotite Development

Corp.
Oct. 26 (letter of notification) 16,000,000 shares of

Eula Belle

18)

repay

Procc

stock

Underwriter—None, offering to be made through
President.

Oct.

it Consolidated Credit Corp., Charlotte, N. C.
Oct. 25 (letter of notification) $100,000 of 20-year 6%
subordinate sinking fund- notes and 100 ten-year war¬

Proceeds—To be advanced to Canadian Delhi Oil Ltd., a

Gil
Vlay

Walter Keilwagen,

30,929 shares of 5% cumulative convertible
preferred stock (par $25) to be offered first for sub¬
scription by common stockholders at the rate of one
preferred share for each 10 common shares held. Price
—To be supplied
by amendment.
Proceeds—For ex¬
pansion and working capital.
Underwriter—Loewi &
Co., Milwaukee, Wis.

Petroleum

Underwriter^.

Dak.

and construct a model "Picture Magnia" educa¬
tional device; the balance to be used for the manufacture
of said device.
Office—139 N. Virginia Street, Reno,

Oct. 29 filed

Ltd., Calgary, Can.
capital stock (par 10 centsCanadian) being offered for subscription by stockhold¬
ers of record Oct. 15, at the rate of one new share for
each 12 shares held; rights to expire on Nov. 10.
Price—
$10 per share (U. S. funds) and $9.70 (Canadian funds).
Delhi

Canadian

S.

Edgemont,

velop

Compo Shoe Machinery Corp., Boston, Mass.
(11

—

it Educational Atcessories Corp., Reno, Nev.
Oct. 19 (letter of notification) 80,000 shares of common
stock. Price—At par ($1 per share). Proceeds—To de¬

Underwriter—Batkin & Co., New York.

N. J.

employees of the company and its subsidiaries.

mon

Thursday, November 4r, 1954

Capper & Co., New York.

Nev.

* Campbell Soup Co.
Oct. 28 filed an aggregate of 150,000 shares of capital
stock (par $1.80) for which options may be granted
under the Stock Option Plan to regular full time salaried

Office

leases.

issued

shares

the preferred

of

any

share and accrued dividends.

Commodity Holding Corp.
6 (letter of notification) 1,460,000 shares of cornm0n stock
(par five cents). Price—20 cents per share.
procee^s
por working capital.
Business—Trading in
commodities.
Office—15 Exchange Place, Jersey City,

New York.

Boston Corp.,

purchase

per

Oct.

4-

3

i

_

to

$25

it Col-U-Mex Uranium Corp., Albuquerque, N. Mex.
Oct. 25 (letter of notification) 2,900,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds
—For exploration and development expenses.
Office—
320 Korber Bldg., Albuquerque, N. Mex. Underwriter
—Whitney & Co., same city.

•

*

f.

Vdli

Continued

%

.

(1862)

H

lease

i{

•referr

Underwriter —
•

r»eee

Number 5374

180

Volume

. . .

stock <par $100)^
roceeds — To redeem 50,000 shares of $4.50 dividend
inferred stock, 60,000 shares of $4.40 dividend preferred
-tock
1049 series, and 50,000 shares of $4.44 dividend
Lgferred stock at the prevailing redemption prices of
.iq5 $i>05. and $105.75, respectively.
Underwriter—To
' determined by competitive bidding. Probable bidLrs. stone & Webster Securities Corp.; Lehman
brothers and Equitable Securities Corp. (jointly); Kuhn,
oeb & Co.; Glore, Forgan & Co. and W. C. Langley &
(iointlv). Bids—Had tentatively been expected to be
received up to 11:30 a.m.- (EDT) on June 15 at The
-Ianover Bank, 70 Broadway, New York, N. Y., but ofering has been postponed.
Gulf States Utilities Co.
May 14 tiled $24,000,000 of first mortgage bonds due
lure 1. lp84. Proceeds—To redeem $10,000,000 of 3%%
:irst mortgage bonds due 1931 and $10,000,000 of 3%%

|
I
i

I

|
1

Ml
■

fj

y
!

|

II

bonds due 1983, and for general corpo-

morigage

irst

Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
-o. Inc.; Lehman Brothers; Merrill Lynch, Pierce, Fenier & Beane and White, Weld
& Co. (jointly); Salonon Bros. & Hutzler and Union Securities Corp.; Kuhn,
Joeb & Co. and A. C. Allyn & Co., Inc. (jointly); Lee
filigginson Corp. and Carl M. Loeb, Rhoades & Co.
i jointly); Stone & Webster Securities Corp. Bids—Had
I 'entatively been expected to be received up to 11 a.m.
| EDT) on June 15 at The Hanover Bank, 70 Broadway,
I ijew York, N. Y, but offering has been postponed.
•ate purposes.

„

I

North Kansas City, M&

Gulf Sulphur Corp.,

J )er share and 35,000 shares to be sold to V. V. Jacomini,
p i partner of Tehuantepec Co., on an investment basis,
}:j »t $8.50 per share. Proceeds
For operating expenses

§nd exploration development. and Crockett & Co., both
7,310 shares, Fridley & Hess Underwriters — For the
|?Af Houston, Tex.
| * Gunsite "Btitte Uranium Corp.
'

Hackensack Water Co.
Dct.

filed

28

address.

it the rate of one

(11/18)

share for each

new

;upplied

Proceeds

by amendment.

eight shares held
Price—To be
For capital addi¬

—

tions and to purchase securities of Spring Valley Water
Works & Supply : Co.
Underwriters—The First Boston
^orp. and White, Weld & Co., both of New York.

Hawkeye-Security Insurance Co.,
i 3ct.

4

(letter of notification)

ulative preferred
•3 'roceeds

writers—T.

C.

6,€00 shares of 5%

Price—At par

stock.

For

—

general

corporate

Henderson

Headley

&

(George L.)

cum¬

($50 per share).
Under¬

purposes.

Associates,

.

Becker

Co., Inc. and
^ownie, Inc., both of Des Moines, Iowa.

.

&

com-

per share. Proceeds
Underwriter—F. M. Hall & Co.,

-For working capital.

New

\r

^ Land Title Insurance Co., Los Angeles, Calif.
~
Oct. 21 (letter of notification) 30,161 shares of capital
stock (par $2.50). Price—$7.50 per share.
Proceeds—To
22 selling stockholders. Office—3444 Wilshire Blvd., Los
Angeles, Calif. Underwriter—Lester, Ryons & Co, same
city.
Liberty Uranium Corp., Salt Lake City, Utah
July 1 (letter of notification) 3,000,000 shares of common
stock
(par one cent).
Proceeds—For mining

Loma

York, N. Y.

lls

Holicay Plastics, Inc., Kansas City, Mo. (11/8-9)
29 (letter of notification) 149,500 shares of common
$1L
^par 25 cents). Price—$2 per share. Proceeds—
ro,

:e.

capital, etc.

New York.

lriee—At

uce

/a.

o-

»f-

Fuller

&

& Telegraph Co. of Virginia
40,320 shares

of capital

bank

($5

par

notes.

per

share).

Office—107

Proceeds—To

Valley

Street,

Inc.
(letter of notification) 150,000 shares of common
(par 10 cents). Price—$2 per share. Proceeds—
For inventory and selling and advertising expenses. Of¬
Oct. 25

fice—220 Fifth Ave, New York 1, N. Y.
None.

Lunn
Oct.

Underwriter—None.

..

29 filed

nament.

pre-

Price — To be supplied ;by
Proceeds—To purchase outstanding shares

nri0ri preferred stock of Gate City Steel Worksr.Inc.
rirV+n^ ' a^ld for drilliog expenses, etc. Underwriter—

y

or

ce

14,899 shares of 6% cumulative _-*st

rrea stock (par $100).

y

st Trust Co. of Lincoln,

j

d,

Neb.

v!nwrf?ay,^ower Co-'
"led 200,000 shares

w

Dubuque, Iowa
of preferred stock

(11,(30)
(par? $50).

>
Ps~To redeem 100,000 shares of 4.70% 'preferred
rPna,
per siiare (plus accrued dividends) ..and
To hi^ *'999>"° of promissory notes.
Underwriter—

! t
:

n

on
o-

al
t.

^lermined by competitive bidding.
Barne.v & Co.; Blyth & Co,

1 iprcTe

Probable bidInc. andNLehRn,10
s (.i°int]y); Merrill Lynch, Pierces* Flnner
~Fv?anf ^nd Kidder, Peabody & Co. (jointly).%Bids

:1

na„

»

i

*

xpecled to be received

*

about Nov.

j ind

30yN <£*■

shares of curiiula-

stock (no par^ and 3>799 sharesJ0fi|om(no par^' Price—For preferred, $20 pcf §iare,

i

ih.

fnrC

SPil!171011* $2

share. Proceeds—For working
Office—3603 Broadway, San Antonio, Te> Unrwiiter
Interior Securities, Inc., San
Antonio^Jfjx.

ariu-i

per

)cte9»Sr?nf c»stodian

ck

,{serL i

ial

•

,

Funds, Inc.

'

■

)ct(u]1'man
■refer,L

r»ceed?
-

B-3; l,250,00(L&res
and 150,000 shares of series K-l. Prices—At
7"

*E?Sr-

Electric Co., Bay City, Mich.

.

^

,r of notification) 30,000 shares, of *5%%
St
sfries A. Price—At par ($10 per s^re).
lo
«

redeem

Inc.
(letter of notification)

8,000 shares of common

Price—At market (about $5.75 per

Proceeds—To selling stockholder.

Road

West

and

Huntington,

6%




cumulative

stock.

N.

Y.

Mac Fos Uranium, Inc., Salt Lake City, Utah
Sept. 16 (letter of notification) 4,000,000 shares of com¬
stock

mon

(par

one

cent).

Bldg, Salt Lake City, Utah.
Utah Securities Co, same city.

Underwriter-

Magic Metals Uranium Corp.
Sept. 14 (letter of notification) 2,995,000 shares of com¬
stock

one cent).
Price — 10 cents per share.
exploration and development expenses.
Office—65 East 4th South, Salt Lake City, Utah. Under¬
writer—Mid-Coninent Securities, inc., the same city.
mon

(par

Proceeds—For

preferred %tock,

Underwriter—Barrett & Co, same

Price —$10

stock.

National

Fuel

shares

Underwriter—Franklin, Mayer & Barhett, New York City.

Oct.

14

in

offered

being

exchange for stock of the Marion
Osgood Co. on the basis of *hree
Power common shares, and

shares for each two Marion

two shares for each three shares of

and class B stock not held

The offer will expire on
Metals &

Mines

oy

Osgood Co.'s class A

Marion Power Shovel Co.

Nov. 15.

Underwriter—None.

Co., Reno, Nev.

13

(letter of notification)

Mexican

Gulf

Sulphur Co,

(11/15-18)

shares of common stock (par 10b).
Price—To be supplied by amendment.
Proceeds—For
equipment, capital improvements and working capital.
Underwriter—Van Alstyne, Noel & Co, New York.
Oct. 22 fifed 200,000

class

stock.

A

preferred stock

a
share-for-share basis (with a cash
Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Union Securities
Corp; and Equitable Securities Corp. (jointly); Lehman
Brothers; Blyth & Co, Inc. and Shields & Co. (jointly);
White, Weld & Co. and Kidder, Peabody & Co. (jointly);
W. C. Langley & Co. and The First Boston Corp. Offer¬
ing—Temporarily postponed.

par)

on

adjustment).

•

Missouri

Oct.

21

Insurance

filed

Price—To

be

Co.

202,320 shares of capital stock (par $5).
supplied by amendment.
Proceeds—To

stockholders. Underwriters—R. S. Dick¬
Co, Charlotte, N. C, A. G. Edwards & Sons, St.

Louis, Mo.
Monte

Cristo

Uranium

Corp., Moab, Utah

(letter of notification) 3,000,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds—For exploration and development expenses.
Underwriter—James E. Reed Co, 139 North Virginia
5

St, Reno, Nev.

$250,000 of 6% five-year

of

and

$500 of debentures, 50 shares
100

shares

of

class

B

common

Proceeds—For equipment
and working capital.
Office—930 Washington Building,
Washington, D. C. Underwriter—None.
Price—$500 per unit.

New Mexico
June

14

Copper Corp., Carrizozo, N. M.
198,000 shares of capital

(letter of notification)

stock (par 25 cents). Price—50 cents per share. Proceeds
—For acquisition of power plant, improvement of mill,

development of properties and general corporate pur¬
poses. Underwriter—Mitchell Securities, Inc., Baltimore,
Md.

■■re¬

-

■

New Silver Belle

Mining Co., Inc., Almira, Wash.

Sept. 8 (letter of notification) 500,000 shares of common
stock

(par two cents). Price—40 cents per share. Pro¬
exploration and development costs. Under¬
writers—Percy Dale Lanphere and R. E. Nelson & Co,
both of Spokane, Wash.
ceeds—For

Northern

California

Plywood, Inc.

Sept. 13 filed 300 shares of common stock

(par $5,000)
participating pre¬
ferred stock (par $100).
Price—At par. Proceeds—To
purchase properties of Paragon Plywood Corp. and pur¬
chase of raw materials.
Office — Crescent City, Calif.
and

5%

of

shares

5,000

cumulative

Underwriter—None. Sales to be made through Raymond

Benjamin Robbins.
Northern

Oil

Gas

Corp., Bismarck, N. D.
250,000 shares of 6%
preferred stock (par $1) and 50,000 shares of common
stock (par $1) to be offered in units of five shares of
preferred and one share of common stock. Price—$6 per
unit.
Proceeds—For oil and gas exploration.
Office—

Old
Oct.

of notification)

St.,

Bismarck,

Investment

N.

D.

Underwriter—Trans-

Co, Inc., Dallas, Tex.

Hickory Copper Co., Phoenix, Ariz.
10 cents).

(par

ceeds

&

(letter

(11/15)

(letter of notification) 750,000 shares of common

7

stock

Price—40 cents

For mining expenses.

—

Offices

per
—

share. Pro¬
Mayer-Heard

Bldg, Phoenix, Ariz, and 2 Broadway, New York, N. Y.
Underwriter—General Investing Corp, New York.
it Omar,
26

10,000 shares of common

an

9, 1954, and
the

Price—At

For general

the remainder in subsequent years).
current market price.
Proceeds—

then

Office—1919 Haney St,
Underwriter—None.

corporate purposes.

Omaha, Neb.
•

Neb.

employee proprietary stock option plan
shares within the 12-month period commencing

(3,317
Nov.

Omaha,

Inc.,

(letter of notification)

(par $1) to be Offered for subscription by employ¬

under

ees

Oregon Washington Telephone Co.
7 (letter of notification) 1,000 shares of 5% cumu¬

lative preferred

stock being offered for subscription by
preferred stockholders on an allotment basis;
rights to expire on Nov. 19. Price—At par ($100 per
share).
Proceeds—To retire bank loan.
Office—Hood

present

Smither

Ore.
Underwriter—Zilka,
Portland, Ore.
River,

Pacific
Oct.

Telephone & Telegram Co.

20 filed

15, 1989.

&

Co,

Inc.,

(11/16)

$50,000,000 of 35-year debentures due Nov.

Proceeds—To redeem

debentures due Sept.

a

like amount of 31-year
Underwriter—To be

15, 1984.

competitive bidding. Probable bidders:
Halsey, Stuart & Co.. Inc.; Morgan Stanley & Co.; White,
Weld & Co, Lehman Brothers
and Union Securities
Corp. (jointly). Bids — Expected to be received at 195
Broadway, New York, N. Y, up to 11:30 a.m. (EST)
on

by

Noy. 16.
Pan-American

Uranium, Inc.

(letter of notification) 600,000 shares of com¬
mon stock
(par one cent). Price — 50 cents per share.
Proceeds—For exploration and development costs. Of¬
fice—100 West 10th St, Wilmington, Del.
Underwriter
Sept. 20

—Hale & Co,

(11/9)

certain selling
&

units

common

determined

(par $100) to be offered in exchange for a like number,
of outstanding shares of $6 cumulative preferred stock
(no

share for each

Underwriter—None.

subsidiaries.

in

offered

be

of

4%

Mississippi Power & Light Co.
Sept. 3 filed 44,476 shares of cumulative

new

Oct.

2,950,000 shares of class
A common stock. Price—10 cents per share. Proceeds—
For exploration and development expenses.
Office—220
South Virginia St., Reno, Nev. Underwriter—None.
Oct.

one

Metallizing Corp., Washington, D. C.

(letter of notification)

to

stock

Sept. 7 filed 448,868 shares of common stock (par $12.50)

(11/8)

debentures; 25,000 shares of class A common stock (par
$1) and 50,000 shares of class B common stock (par $1)

Oct.

Merritt-Chapman & Scott Corp.

Co.

the basis of

on

advances to

and

■ir National

main

17, N. Y.

For working

(with an oversubscription privilege);
rights to expire Nov. 29.
Proceeds—For investments in

western

Corp., N. Y.
Sept. 30 (letter of notification) 5,000 shares of common
stock (par 10 cents).
Price—$4.75 net to sellers. Pro¬
ceeds—To Atlas Corp.
Office—295 Madison Ave, New

—

held

408Vz

Un¬

Gas

of record Nov. 8

iten

fice—529

Utah.

Proceeds

Sept. 29 filed 381,018 shares of common stock (no par)
to be offered for subscription by common stockholders

Magic Uranium Co., Inc., Salt Lake City, Utah
15 (letter of notification) 3,000,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds—For development and exploration costs.
Of¬

Bldg, Salt Lake City,
Schenin Co, New York.

share.

per

Underwriter—None.

16

Newhouse

city.

Office—1923 University Avenue, St. Paul, Minn.

capital.

Sept.

Oct.

par ($7.50 per share).
Proceeds—For
Office—45 Washington St., Pawtucket,

it Mutual Service Cooperative, St. Paul, Minn.
Oct. 18 (letter of notification) 500 shares of common

Price—Three cents per share.

exploration and development costs. Office

Price^—At

working capital.

Office—Oak-

11th

Street, Huntington Station,
Underwriter — Fahnestock & Co,
;; ■ '-N
■;)'? .
(-v:

New York.

Oct.

r->

Underwriter—

Laminates,

(par 25 cents).

share).

son

15°.000 shares of seris

»
■'
PrOCeedS
Fnr imrdefmont
eeds—For investment.

narkpt

at

ise

or

ivp

).
tc.

on

pianV^Stmen* ^orP«
America
J < letter of notification) 3,799

of

15

stock

re-

Emporia,

Husky Oil Co., Cody, Wyo.

r-

on

D.

oS t0 °e oB-ered to stockholders of record Nov.-18,
u?
dasis of one new share for each seven shares
leid.

n-

Uranium

Power Shovel Co. and

notification;

d-

S.

'

^Te{ePhone
Jet. lo (letter of

es

Underwriter-

share.

ic Loring Pharmacal Co.,

York

r

/ 'or working

per

Corp., Denver, Coio.
June 18 filed 1,000,000 shares of common stock (par 10
cents). Price—$1.25 per share. Proceeds—For explora¬
tion and development costs, purchase of equipment, and
reserve for acquisition of additional properties.
Under¬
writer—Peter Morgan & Co, New York.

■':j
5)
bi¬

Price—Three cents

operations.
Office—402 Darling
Bldg, Salt Lake City, Utah.
Underwriter — Uranium
Mart, Inc., 146 S. Main St, Salt Lake City, Utah.

*

Moore Fabrics, Inc., Pawtucket, R. I.
Sept. 24 (letter of notification) 40,000 shares of common

R. I.

amendment.

Underwriter—To be named by

Mercast

■j Jet. 15 (letter of notification) 295,000 shares of
■;

development and exploration expenses.

For

—

derwriter—I. J.

Inc.

II non stock (par 10 cents). Price—$1
*

of common stock (par $1,
shares are to be offered in
160,000 shares for account
cents per share, U. S. funds.

—239 Ness

of Nov. 17; rights to expire on Dec. 16.

; is

Proceeds

Proceeds—For

48,047 shares of common stock (par $25)
for subscription by common stockholders

offered

be

o

•

LauzoirHMfnes, Ltd., Toronto, Can.

shares
Canadian), of which 500,000
behalf of the company and
of Percy E. Rivett. Price—40

wood

^

' <
!j Dct. 25 (letter of notification) 25,000,000 shares 6f caipial stock. Price—At par (one cent per share). Proceeds
-For exploration and development expenses.
Office—
'56 West Broadway, Salt Lake City, Utah.
Underwirter
same

Lake

Aug. 2 filed 660,000

39

Monterey Uranium Corp., Salt Lake City, Utah
Aug. 13 (letter of notification) 1,500,000 shares of com¬
mon
stock (par 10 cents).
Price—20 cents per share.
Proceeds—For mining operations.
Underwriter—Muir,
Dumkp & Co, Salt Lake City, Utah.

stock

% Sept. 15 filed 92,310 shares of 60-cent cumulative coni mrtible preferred and participating stock (par 10 cents),
t >f which 57,310 shares are to be offered publicly at $10

j —Melvin G. Glegal & Co.,

for caiptal expenditures.
Office—1000 26th Street,
Bay^City,Underwriter — Hudson White & Co,
Grand Rapids and Detroit, Mich.

and

Gulf States Utilities Co.
14 filed 160,000 shares of preferred

_v

i

(1863)

The Commercial and Financial Chronicle

•

Pan-Israel

Salt Lake City, Utah.
Oil Co.,

Inc.

trust certificates for
stock (par one cent),
publicly offered. The
remaining 150,000 shares are to be optioned to under¬
writers.
Price—Last sale on American Stock Exchange
day preceding the offering.
Proceeds—For exploratory
drilling and development of presently held acreage in
Israel.
Underwriter—Gearhart & Otis, Inc., New York.
Sept. 21 filed American voting
900,000 shares of common capital
of which 750,000 shares are to be

Offering—Expected

any

day.

Continued

on page

40

,f^

The Commercial and Financial Chronicle

40

*

derwriters—To

39

Continued from page

Panellit, Inc., Skokie, .III. (11/9)
19 filed 105,000 shares of common

•

stock (par $>1),

to 11

up

Brothers, both of New York.

Price—10

which 60,000

Paramount Uranium Corp.,

IVSoab, Utah

(letter of notification) 6,000,000 shares of capital
Price—At par (five cents per share). Proceeds—

Oct. 7
stock.

Thursday, November 4, 193$

..

Office—325 Main St., Moab, Utah.
Underwriter—Van Blerkom & Co., Salt Lake City, Utah.

capital
share. Pro¬

Price—10 cents per
exploration and development costs. Office—
Fremont St., Las Vegas, Nev.
Underwriter—Allied
(par tv/o cents).

ceeds—For
230

Underwriter Co., the same
•

Fruit

Penn

York.

New
•

Penn

Oct.

Fruit

Co., Inc. (11/9)
100,000 shares of common stock

filed

22

Price—To

(par $5).

be

supplied by amendment.
Proceeds—To
certain selling stockholders.
Underwriter — Hemphill,
Noyes & Co., New York.
15

(letter of notification) 13,750 shares of common
'stock (par $10) to be offered for subscription by stock¬

holders; then to public. Price—To stockholders, $11.75
per share; and to public, $12.75 per share.
Proceeds—
For additions and improvements to property, etc. Office
—22 S. Sycamore St., Petersburg, Va.
Underwriter—

(11/16)

'

■

preferred stock
stock

common

(par $25)

1969; 100,and

1,000,-

(par 10 cents) to be offered

in units of $75 principal amount of debentures, one share
of preferred stock and 10 shares of common stock. Price

—$106

unit. Proceeds—For acquisition of properties.
purchase interests in producing oil and

per

Business—To

properties, and related activities.
Underwriters—
Hemphill, Noyes & Co. and Shields & Co., both of New
York, and Rauscher, Pierce & Co., of Dallas, Tex.
gas

it Provident Security Life Insurance Co.
Oct. 18 (letter of notification) 150,000 shares of common
stock (par $1) to be offered to holders of life insurance
policies issued by company. Price—$2 per share. Pro¬
ceeds
For capital and surplus. Office — 107 MayerHeard Bldg., Phoenix, Ariz.
Underwriter — None, but
—

James C. Gregory, President,

will handle sales.

Quaker Warehouse Co., Inc., Philadelphia, Pa.
Sept. 10 filed $900,000 of 10-year 6% debentures due
Sept. 1, 1964, to be offered to stockholder members of
Quaker City Wholesale Grocery Co., a 100% cooperative
retail

owned

grocer

organization.

Price—At

par.

Pro¬

ceeds—To purchase building, and for modernization and
improvements. Underwriter—None.

it Resort Airlines, Inc., Miami, Fla.
Oct. 21 (letter of notification) 1,190,000 shares of

com¬

stock

(par 10 cents) to be made to stockholders on
a pro rata basis.
Resort Airlines, Inc. (Del.), parent, has
the right to purchase up to 84% of the offer.
Price—
20 cents per share. Proceeds—To reduce accounts
pay¬
mon

able and for working capital. Address—Box 242, Inter¬
national Airport, Miami, Fla. Underwriter—None.

it Rolon Tire Chain Corp., Denver, Colo.
Oct. 27 (letter of notification) 60,000 shares of common
stock. Price—$1 per share. Proceeds—For increased in¬
ventory, working capital, sales and production expenses,
etc.

Office—150 Tejon St.,

Denver, Colo. Underwriter—
Peters, Writer & Christensen, Inc., same city.
Samicol Uranium

Sept.
ment

V.

Corp., Santa Fe, N. M.

14 filed

300,000 shares of common stock (par 10
Price—$2 per share.
Proceeds—For develop¬
exploration expenses, etc.
Underwriters—R.

•cents).

and

Klein

New

Co.

and

McGrath

Securities

Corp.,

both

of

York.

San Juan
Oct. 1
stock

Racing Association (Puerto Rico)
(letter of notification) 100,000 shares of common
(par 50 cents). Price—$3 per share. Proceeds—To

build

and

Puerto

operate

horse-racing establishment
Office—Flamingo Bldg., Santurce, P.

Rico.

Oct.

7

stock

Uranium

& Oil

Corp., Inc.

2,000,000 shares of com¬
Price — 10 cents per share.
mining expenses. Offices — 506 Beason
Bldg., Salt Lake City, Utah, and 1016 Baltimore Bldg.,
Kansas City, Mo. Underwriter—E. R. Bell & Co., Kansas
City, Mo.
(letter of notification)

(par

one

a

in

June
stock.

—$10.01

Standard

Oct.

15

equip

filed

Jersey)

Ucolo Uranium Co.,

8,969,055 shares of capital stock

(par $15)
being offered in exchange for Humble Oil & Refining

of at least
least 80%

or

more

to

Gas Co.,
Lynchburg, Va. (11/8)
$741,000 of 6% sinking fund debentures
and 114,000 shares of common stock
(par $1)

filed

1979

be

offered

bentures and

Proceeds

—

in

one

To

units of $6.50
principal
share of stock.

amount of de¬

Price—$11.50

repay

bank

per

unit.

loans, repurchase shares of

stock of
company, for construction program and
other general corporate
purposes.
Underwriter— Scott,
Horner & Mason,
common

Inc., Lynchburg, Va.

Sierra

1, 1984.
to

repay

Pacific?. Power

Co.
(11/9)
$4,000,000. of first mortgage bonds due Nov.
Proceeds—To redeem $1,500,000 of 33/4%
bonds,

bank loans and for construction
program.




exploration and development costs. Of
Bldg., Salt Lake City, Utah. Un
derwriter—Western Securities Corp., the same city.

so

Uintah

Underwriter—None.

1954.

Oct.

Corp., Salt Lake City, Utah
(letter of notification) 6,000,000 shares of com¬
(par one cent). Price—Five cents per share.

Proceeds

—

For

exploration

and

development

bonds

shares

per

Un¬

selling stockholders. Office
both of

Office —1406

(letter of notification) 2,990,000 shares of com¬
Price—At par (10 cents per share).
Pro¬
ceeds—For expense incident to extraction operations,
Office—1111
Utah.

Lake

—

of

America

Western

Upper

Building, Dallas,
Corp., Salt

—

For

construction

of

stevedoring

purchase of additional barges and working
Underwriter—Gulf Atlantic, Inc., Tampa, Fla.

(Canada)
(11/8)
(Regulation "D") 599,760 shares of common
(par $1—Canadian).
Price—50 cents per share.

Sept.

24

stock

—U. S. funds.

Proceeds—For exploration and develop¬
ment expenses and acquisition of
property. Underwriter
—H. J. Cooney & Co., New York.

Temple Mountain Uranium Co.
Oct.

7

mon

stock

(letter of notification) 3,500,000 shares of com¬
(par 2V2 cents). Price — 3 cents per share.
Proceeds—For exploration and development
expenses.

Office—39

Exchange Place, Salt Lake City, Utah.
same city.

Un¬

derwriter—Walter Sondrup,
Texas International

Sulphur Co.
455,000 shares of common stock (par 10
cents), of which 385,000 shares are to be offered for
subscription by common stockholders at the rate of one
June

new

21

filed

share for each 4Vz

shares

held; and 70,000 shares

for account of certain
selling stockholders. Price—To
be supplied by amendment.
Proceeds—For exploration
are

City,

•

';

—

At par ($1 per share). Proceeds — For
Boy (drilling equipment which company

Peninsula

Power Co.

$9) being

offered for subscription by common stockholders of rec¬
ord Oct. 26 at the rate of one new share for each eight

shares
share.

held; rights to expire Nov.

10.

Price

Proceeds—To purchase stock of Upper

—

$22 per

Peninsula

Generating Co. (a 50% owned affiliate) and for general
purposes,
including company's construction
program.
Underwriters — Kidder, Peabody & Co. and\
Paine, Webber, Jackson & Curtis, both of New York.
corporate

Urainbow, Inc., Salt Lake City, Utah
Aug. 31 (letter of notification) 2,000,000 shares of com¬
mon stock
(par two cents). Pricer—15 cents per share.
Proceeds
For exploration and development expenses.
Office—908 Kearns Bldg., Salt Lake City, Utah. Underwriter—Austin B. Smith Brokerage Co., the same city.
—

Price—$3

facilities,
capital.

Lake

Oct. 7 filed 30,625 shares of common stock (par

Securities

its best efforts to sell the balance.

Proceeds

Salt

out), and working capital. Office—c/o Edwin J.
Dotson, attorney-at-law, Simon Bldg., 230 Fremont St.,
Las Vegas, Nev.
Underwriter—Robert B. Fisher ^ In¬
vestments, 510 South Fifth St., Las Vegas, Nev.

Sept. 28 filed 300,000 shares of class A stock (par $1), of
which Gulf-Atlantic, Inc.,
Tampa, Fla., has agreed to
purchase for distribution not less than 165,000 shares
use

Building,

rents

Shelley Co., Denver, Colo.

share.

Price

cost of Driller

Tampa Marine Co., Tampa, Fla.

and to

*..

stock.

Tacony Uranium Corp., Denver, Colo.
Aug. 17 (letter of notification) 1,700,000 shares of com¬
mon
stock.
Price—10 cents per share.
Proceeds—For
exploration and development expenses.
Office — 317
Railway Exchange Building, Denver, Colo. Underwriter

per

Bank

Universal Petroleum Exploration & Drilling Corp,
Oct. 4 (letter of notification) 300,000 shares of common

City, Utah.

—E. I.

Walker

Underwriter—Thornton D. Morris & Co., the same

city.
com¬

city.

Life

Underwriter

(latter to

*

stock.

mon

Sytro Uranium Mining Co., Inc., Dallas, Texas
Sept. 9 (letter of notification) 2,975,000 shares of com¬
mon stock
(par five cents);" Price—10 cents per share.
Proceeds—For exploration and development of
proper¬
ties.

capital stock (no par).
supplied by amendment. Proceeds—To the

United States Lithium Corp.

—For development and exploration costs. Office—Medi¬
cal Arts Bldg., Las
Vegas, Nev. Underwriter—Uranium

Texas.

(11/9)

Sept. 9

Price—At par (one cent per share). Proceeds

same

Under¬

380,000 shares of

handle books).

of the company to hold any bonds so
tendered for the purposes of receiving tax-free income
thereon. Underwriter—None.

Brokers, Inc., the

filed

Pierce, Fenner & Beane, both of New York

management

stock.

Memphis, Tenn.

Rockefeller Foundation, present owner of 480,000 shares,
Underwriters—The First Boston Corp. and Merrill Lynch,

including Aug. 31, 1963; 250 shares thereafter and up
to and including Aug.
31, 1968; and 200 shares there¬
after to Oct. 15, 1977.
It is the present intention of the

mon

25

Price—To be

to and including Aug. 31, 1958;
bond thereafter and up to and

Superior Uranium Co., Las Vegas, Nev.
Sept. 1 (letter of notification) 29,910,000 shares of

—

Memphis, Tenn.

Union Tank Car Co.

Oct.

up

$1,000

Under¬

writers—Leftwich & Ross and Mid-South Securities Co.,

the basis of 500 shares of stock

on

$1,000 bond

Judge Bldg., Salt Lake City, Utah.

June 25 (letter of notification) 30,000 shares of common
stock (par $1). Price—$10 per share. Proceeds—To 35

Stylon Corp., Milford, Mass.
Sept. 27 filed 650,000 shares of common stock (par $1)
to be offered to the holders of the $1,300,000
City of
Florence, Ala., 5% first mortgage industrial develop¬
revenue

Utah.

Union Compress & Warehouse Co.

it Stouffer Corp., Cleveland, Ohio
19 (letter of notification) 1,500 shares of common
stock (par $2.50). Price—Not to exceed $22.50 per share.
Proceeds—To Gordon Stouffer, Chairman of the Board.
Underwriter—Ross, Borton & Simon, Inc., Cleveland, O.

333

Salt Lake City,

writer—James E. Reed Co., same city.

Oct.

for each

Inc.,

—

Office—424

costs.

Underwriter—Ned J. Bowman Co., Salt Lake City, Utah.

ment

Uranium,

5

(letter of notification) 15,000,000 shares of com¬
mon stock
(par one cent). Price—Two cents per share,
Proceeds
For exploration and
development costs.

stock

mon

7
t-:

Salt Lake City, Utah

fice—906 Walker Bank

that Sandard will own at
of the Humble Oil capital stock. The

Nov. 30,

on

1

Proceeds—For

The offer is subject to tender

2,765,616 shares

share). Pro-

Sept. 13 (letter of notification) 2,800,000 shares of com¬
mon stock
(par one cent). Price — 10 cents per share

Co. capital stock on the basis of nine shares of Standard
for 10 shares of Humble.

stock. Price—At par (one cent per

shares of

it Tung-Sol Electric, Inc. (11/18)
Nov. 1 filed 100,000 shares of convertible preferred stock
(par $50). Price—To be supplied by amendment. Pro¬
ceeds—For expansion and general corporate purposes.
Underwriter—Harriman Ripley & Co. Inc., New York.

luxury hotel. Underwriter—None.

a

Oil Co. /(New

30,000,000

Wyo.

yenne,

unit. Proceeds—For purchase of land and to

per

construct and

notification)

of

exploration and development costs. Office—
300 Consolidated Royalty Bldg., Casper, Wyo.
Under¬
writer—Glen E. Hendershot, 2520 Deming Blvd., Che¬

share of each class of stock. Price

one

Shenandoah
due

common

3

Uranium, Inc., Casper, Wyo.

(letter

20

ceeds—For

Stardust, Inc., Reno, Nev.
July 9 filed 621,882 shares of preferred stock (par $10)
and 621,882 shares of common stock (par one cent) to be

Tarbell Mines, Ltd.

-V Sears, Roebuck & Co., Chicago, III.
Nov. 2 filed 25,000
memberships in Savings and Profit
Sharing Pension Fund, together with 700,000 shares of
capital stock which may be purchased
by the Fund.
18

Triassic

Sept.

Proceeds—For ex¬
Underwriters—E. H. Stan¬
ley & Co., Waterville, Me.; and Clifford J. Murphy Co.,
Portland, Me.

offered in units of

Pro-

exploration and development costs. Office
—358 S. 3rd St. East, Salt Lake City, Utah. Underwriter
—Western Securities Corp., same city.

equipment.

new

com¬

ceeds—For

Price—At par ($5 per share).

pansion and

(letter of notification) 2,990,000 shares of
stock.
Price—At par (10 cents per share).

1

mon

Telephone Co., Norridgewock, Me.
(letter of notification) 2,200 shares of capital

11

R.

Underwriter—Hunter Securities
Corp., New York.

Oct.

Oct.

Corp.

Uranium

Trans-Continental

cent).

Proceeds—For

Aug. 2

'

•

Oct. 26 filed $7,500,000 of 5% debentures due
000 shares of

—

Co., Atlanta, Ga., and Varnedoe, Chisholm & Co., Inc.,
Savannah, Ga.

Star Uranium

it Producing Properties, Inc., Houston, Texas

shares of 6%

selling stockholders 75,000 shares. Price—$4.50 per share.
Proceeds
For working capital. Underwriters — Courts
&

Solomon

offer expires

Scott, Horner & Mason, Inc., Lynchburg, La.

000

Salt
Co.,

Nov.

city.

same

•A

St., Reno, Neb. Underwriter—Stock, Inc., Salt Lake City,

Proceeds—For development

share.

per

stock

Proceeds—For mining

it Trade Winds Co., Thunderbolt, Ga.
1 filed 112,500 shares of common stock (par $l)t
of which the company proposes to sell 37,500 shares and

and exploration expenses. Office—Newhouse Hotel,
Lake City, Utah.
Underwriter — Van Blerkom &

•

Petersburg & Hopewell Gas Co.
Oct.

mon

cents

(letter of notification) 1,800,000 shares of com¬
(par 10 cents). Price — 15 cents per share.
activities. Office—206 N. Virginia

Aug. 3

Somerset

Inc.

Underwriter—Hemphill, Noyes & Co.,

working capital.

Thunderbird Uranium Co., Reno, Nev.

Nov. 9 at 49 Federal Street, Bos¬

on

Development Corp.
Oct. 8 (letter of notification) 2,900,000 shares of common
stock (par five cents), including shares for option to
underwriter and prior property owner to be amended.

city.

(11/9)
Oct. 22 filed 100,000 shares of cumulative convertible
preferred stock (par $50).
Price —To be supplied by
amendment.
Proceeds — For expansion
program
and
Co.,

Underwriter—Vickers Brothers, New York, on a "best ef¬
forts" basis.

Slick Rock Uranium

mon

Pay Day Uranium Co., Las Vegas, Nev.
Oct. 15 (letter of notification) 2,500,000 shares of

(EST)

a.m.

drilling, and payment of bank loans and advances

and

competitive bidding.

ton, Mass.

For mining expenses.

stock

by

Halsey, Stuart & Co. Inc.; Stone &
Webster Securities Corp. and Dean Witter & Co.
(jointly); Kidder, Peabody & Co. Bids—To be received

shares are for the account of the com¬
pany and 45,000 shares for the account of certain selling
stockholders.
Price — To be supplied by amendment.
Proceeds—For expansion program. Business—Manufac¬
tures modern automatic control and data reduction sys¬
tems.
Underwriter — Bear, Stearns & Co., and Lehman
of

determined

be

bidders:

Probable

Oct.

.

.

(1864)

.

Uranium Corp. of Colorado ^
Sept. 23 (letter of notification) 300,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds-For exploration
and development costs.
Office —129
East

60th

St., New York, N. Y. Underwriter—None.

Uranium

Oct.
mon

Mines, Inc., Wallace, Idaho
(letter of notification) 1,450,000 shares of com¬
stock (par five cents).
Price—20 cents per share,

1

Proceeds—For exploration and development costs.
Of¬
fice—Scott Bldg., Wallace, Idaho. Underwriter—Hunter
Securities Corp., New York.
Uranium of Utah, Inc., Provo, Utah
Sept. 14 (letter of notification) 3,000,000 shares of com¬
mon
stock
(par 1 cent).
Price—10 cents per share.

Proceeds—For exploration and development
227

N.

University Ave., Provo, Utah.
Bay Securities Corp., New York.
>
Utaco

costs. Offk®

€Jtwicrwritcr—
v

Uranium, Inc., Salt Lake City, Utah
Oct. 7 (letter of notification) 6,000,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share
Proceeds—For exploration and development costs.
Oi-

h

J

Number 5374

180

Volume

., .

fffoc—420 Felt Building, Salt Lake
t^ritpT Western Securities Corp.,
V

York..

,

West Coast Pipe Line

Utah Apex Uranium Co.
18 (letter of notification)

None.

.

Underwriter

St., Mesa, Ariz.

South Macdonald

28

Underwriters—White, Weld & Co. and Union
Securities Corp., both of New York.
Offering—Post¬

pipeline.

poned indefinitely.
Western Central Petroleums, Inc.,

Cantor

May 24 filed 100,000 shares of common stock (par $1).
Price—$4.75 per share. Proceeds—To redeem 1,250 out¬
standing preferred shares ($125,000), to repay bank
tional

v,/./

United States and

Uranium & Thorium Corp.
(letter of notification) 10,000,000

shares of
Price—At par (one cent per share).
Proceeds — For exploration and development costs.
Office—Geneva Finance Bldg., American Fork, Utah.
stock.

Investment

Co.,

Salt

Lake

Woodbury
(Conn.)
Telephone Co.
Sept. 10 (letter of notification) 2,650 shares of common
stock being offered for subscription by stockholders of
record Oct. 15, 1954 in the ratio of one new share for
each share held; with rights to expire on Nov. 12. Price

City,

Victory Exploration & Mining Co.

(letter of notification) 250,000 shares of common
stock (par one cent) and 250,000 shares of preferred
stock (par one cent).
Price—10 cents per share. Pro¬
ceeds—For exploration and development expenses. Of¬
fice—215 Kerber Bldg., Albuquerque, N. M. Underwriter
Oct. 15

—None.

—At

program.

per

Uranium Mining Corp.
(letter of notification) 9,996,000 shares of com¬
mon
stock
(par one cent).
Price—-Three cents per
share. Proceeds—For exploration and development exWorld

July 21

Newhouse bldg., Salt Lake City,
Underwriter—P. G. Christopulos & Co., same city.
Office—323

penses.

Vigorelli of Canada, Ltd. (Canada)

share). Proceeds—For construction
Underwriter—None.

($25

par

Aug. 9 (Regulation "D") 96,770 shares of 8% preferred

Utah.

stock

Wyoming Uranium Corp., Salt Lake City, Utah
Aug. 23 (letter of notification) 9,166,667 shares of com¬
mon stock
(par 1 cent). Price—Three cents per share.
Proceeds—For exploration and" development expenses.
Underwriter—James E. Reed Co., Salt Lake City, Utah.

$1)

(par $2) and 96,770 shares of common stock (par
in units of one share of each class.
Price—$3.10

per

unit.

Proceeds—For exploration and development
Office—1812 St. Catherine St. West, Montreal,

expenses.

Canada.. Underwriter—B. Fennekohl & Co., New York.
*

Virginia

Electric & Power Co. (11/23)
600,000 shares of common stock (par $10)
be offered for subscription by stockholders of record

Oct. 22 filed
to

Nov. 23

the basis of

on

new

one

share for each 10 shares

Wytex Oil Corp.,
Sept. 17 (letter of notification) $290,000 of 10-year 5%
sinking fund debentures (with warrants) being offered
to class A and for class B stockholders of record Aug. 29
the basis of $500 of

Price—To be supplied

on

toy amendment.

construction

stock

Underwriter—To

ding.

—

For

determined

be

by

program.

competitive

bid¬

bidders: Merrill

Probable

stock

common

(par $100) through a new issue
possibly also include issuing

and

stock.

Proceeds—To retire

existing

preferred stock and for capital expenditures and work¬
ing capital. Underwriter—Previous preferred stock fi¬

nancing

handled by Dillon, Read &

was

Co. Inc., New

jj

.

Central

Power &

Light Co.

Oct. 25 it was reported company plans to issue and sell
75,000 shares of preferred stock (par $100). Proceeds—
To repay bank loans and for new construction.

Under¬

Glore, Forgan & Co. (jointly); Kidder, Peabody &
and Blyth
& Co., Inc. (jointly); Merrill Lynch,
Pierce, Fenner & Beane and Salomon Bros. & Hutzler
(jointly); Kuhn, Loeb & Co.
/.
Co.

Sept. 2 it

was reported company plans issue and sale of
500,000 to 600,000 additional shares of com¬

between
mon

stock, probably first to stockholders. Underwriter
—May be determined by competitive bidding. Probable
bidders; Blyth & Co., Inc. and Smith, Barney & Co,
(jointly); The First Boston Corp. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Lehman Brothers and
Lazard Freres & Co. (jointly).
Offering—Not expected
early in 1955.

Lynch, Pierce, Fenner
<8c Beane; Stone & Webster Securities Corp.

Chesapeake & Ohio Ry.
Sept.

debentures for each 50 shares of

held; rights to expire on Nov. 30.

Price—At par.

reported company plans to issue and
of new bonds. Proceeds—To refund its
outstanding $37,851,000 37/8% bonds and $2,441,000 4%

Office —100
Underwriter—None.

State St.,

Albany 7, N. Y.

was

bonds.

Underwriter—May be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Incs*
Blyth & Co., Inc.
Chicago & Eastern Illinois RR.
Sept. 21 company filed an application with the ICC for
authority to issue $15,350,000 of 5% income debentures
due Jan.
for the

1, 2054, to be offered in exchange, par for par,
outstanding 383,751 shares of class A stock (par

$40).

* Chicago, Rock Island & Pacific RR.
Oct. 28 it

was

announce

a

reported that this company may possibly

refunding operation

which will elimin¬

soon

ate its preferred stock.
•

Consolidated

Freightways, Inc. (U/23)
corporation applied to the ICC for authority
100,000 shares of common stock (par $5).
Price—Not less than $16.50 per share.
Proceeds —To
finance purchase of equipment.
Underwriter—Blyth &
Co., Inc., New York and San Francisco.
18 the

to issue and sell

Consolidated Natural Gas Co. -w-'
v
Sept. 16 J. French Robinson, President, announced that
stockholders
additional

on

Dec. 2 will vote

shares

of

capital

stockholders

planned for
derwriter—None.

July 23

on

authorizing 920,822
an
offering to

for

l-for-8

a

basis.

Un¬

Mines, Inc.

stockholders authorized

of not to exceed

on

stock

1955

Consolidated Uranium

Proceeds—To reduce bank loans and for development of

company's wells in Weston County, Wyo.

it

29

sell $40,000,000

Oct.

held; rights to subscribe Dec. 8.
Proceeds

preferred

additional

filed

21

•

Utah.
*

preferred stock

7%

of

until

Precipitation Corp., Los Angeles, Calif.
60,000 shares of common stock (par $1).
Price—$8.75 per share.
Proceeds—For working capital,
etc. Business—Designs, manufactures and installs equip¬
ment used for clearing industrial gases.
Underwriter—
Wagenseller & Durst, Iric., Los Angeles, Calif.

address.

Underwriter—Doxey

of

Western

Oct.

* Vestales
19

Underwriter—Irving J.

Rice & Co., St.

—

Oct.

Canada and for other corporate pur¬

Office—Glendive, Mont.
Paul, Minn.

poses.

stock (par one cent). Price —10 Cents per share.
Proceeds—For exploration and development costs. Office
531 Maiden, Seattle, Wash.
Underwriter— Virgil D.

mon

common

($2,500); for purchase or acquisition of addi¬
mineral interests, leases and royalties in the

loan, etc.

—

,

Central & Southwest Corp.

Plains Oil & Gas Co.

Western

.

and

Underwriter—None.

Texas.

Oct

Nordstrom, same

Indemnity Co., Lubbock, Texas

30,000 shares of common stock (par $10).
Price—$25 per share. Proceeds—To establish reserve to
qualify company to ,do business in States other than
filed

18

Byers (A. M.) Co. /
V-*
11, A. B Drastrup, President, announced that com¬
pany plans to refinance the 42,277 outstanding shares

writer—To be determined by competitive
bidding. Prob¬
able bidders: The First Boston
Corp.; Lehman Brothers

Co., New York.

Western Fire &
Oct.

41

Oct.

York.

N. Y.

Sept. 16 (letter of notification) 133,333 shares of common
stock (par 10 cents).
Price—At market (estimated at
36V2 cents).
Proceeds—To certain selling stockholders.
Office —32 Broadway, New York. Underwriter — S. B.

Vanadium Uranium Corp., Seattle, Wash.
21 (letter of notification) 2,000,000 Shares of com¬

+

Co., Dallas, Tex.

20, 1952 filed 1,125,000 shares of common stock (par
50 cents). Price—To be supplied by amendment.
Pro¬
ceeds—Together with other funds, to be used to build

Nov.

3,000,000 shares of capi¬
tal stock (par three cents). Price—Six cents per share.
Proceeds—For exploration and development expenses.
Affiee—430 Judge Bldg., Salt Lake City, Utah. Underwriter
Mid-Continent Securities, Inc., same city.
Utah Premier Uranium Co.
rvt
19 (letter of notification) 5,000,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Prn^eeds—For expenses incident to mining operations.
Sfice — 516 Continental Bank Bldg., Salt Lake City,
Utah. Underwriter—J. E. Call & Co., same city.
Utah Uranium Corp., Las Vegas, Nev.
Aug 20 (letter of notification) 10,000,000 shares of capi¬
tal stock (par 1 cent).
Price
Three cents per share.
Proceeds—For exploration and development expenses.
Office—1818 Beverly Way, Las Vegas, Nev. Underwriter
First Western Securities, same city.
* Valley Telecasting Co., Mesa, Ariz.
Oct 22 (letter of notification) 1,500,000 shares of com¬
mon stock.
Price—At par ($100 per share). Proceeds—
v0r working capital and to repay indebtedness.
Office
rrnt

—

Co. and Union Securities Corp., both of New
Offering—Postponed indefinitely.

&

Weld

City, Utah. Under-

Las Vegas, Nev.

(1865)

Chronicle

The Commercial and Financial

the

issuance

and

sala

$6,000,000 convertible debenture bonds

connection with the acquisition of Uranium Mines of
America, Inc. stock. Public offering of $2,000,000 bonds
expected early in 1955. Underwriter
Tellier & Co,
Jersey City, N. J.
i'"/:
T.'//
m

Vulcan-Uranium Mines, Inc., Wallace, Idaho
(letter of notification) 1,500,000 shares of com¬
mon stock.
Price—At par (five cents per share). Pro¬
ceeds—For expenses incident to mining operations. Ad¬

Oct. 15

Yard-Man, Inc., Jackson, Mich. (11/8-12)
18 filed 160,240 shares of common stock (par $2).

Oct.

Price—$7

share.

per

Proceeds—To certain selling stock¬

holders.

Business—Manufactures hand and power lawn

dress—P. O. Box 289, Wallace, Idaho. Underwriter—Al¬

mowers,

and related gardening equipment.

lien J. Teske, d/b/a Wallace Brokerage Co., Samuels

—Watling, Lerchen & Co., Detroit, Mich.

Hotel, Wallace, Idaho.

Zenith Uranium

*

Warren Corp., Tulsa, Okra.
Sept. 27 filed 200,000 shares of

Price—$5.25

per

share.

common

stock

(par $1).

Proceeds—To retire outstanding

notes, purchase and develop additional leases and over¬
riding royalties, etc.
Underwriter — None.
Statement
Withdrawn.

Jo purchase equipment, liquidate
and
for

debt to

individuals

working capital.

Office—21 Hanse Ave., FreeUnderwriter
General Investing Corp.,

port,

N. Y.
New York.

—

Warren Oil & Uranium Mining
Co., Inc.,
Denver, Colo.
Aug. 6 filed 65,000,000 shares of common stock (par one
cent). Price—73/2 cents per share. Proceeds—To
pur¬
chase
mining claims and exploratory equipment, and for
exploration costs. .Underwriter—Weber Investment
Co.,
Salt Lake

City, Utah.

Washington

Natural Gas Co., Clarksburg, Va.
notification) 10,000 shares of common
,Price—At the market (estimated at $1.37% per
mare). Proceeds—To Elizabeth D.
Hardman, the sell-

,;

Eastern Utilities Associates

Underwriter

Sept. 20 it

Boston, Mass.

outstanding. Underwriter—To be determined bycompetitive bidding. Probable bidders: Halsey, Stuart
now

Co.

Inc.; Kidder, Peabody & Co.; White, Weld & C04
Corp. and Estabrook & Cm.
Bids—Expected to be received sometime in November.

Stone & Webster Securities

Prospective Offerings
Aluminium, Ltd.

will
authorized capital stock from
10,000,000 shares (9,026,234 shares outstanding) to 20,000,000 shares (no par value) of which a part may be of¬
fered for subscription by stockholders. Price—It is ex¬
pected that the proceeds will amount to approximately
$40,000,000. Proceeds—For expansion program. Dealer
Managers—In April, 1953, The First Boston Corp., A. E.
Ames & Co., Ltd., and White, Weld & Co. managed a
group of soliciting dealers to procure subscriptions for
the shares.
Offering—Probably early in 1955.
Oct.

vote

it

13

was

announced stockholders on Nov. 23

increasing

on

the

if Armour & Co.
7

Oct.

stock,

announced

plans to

offer new

Get. 18 the Bank offered to its
stockholders of record.
Oct. 15 the right to subscribe on or before
Nov. 19 for
195,750 additional shares of capital stock 011 a 3-for-lO
basis.
Price—$20 per share.

Underwriter—None.
★ Fort Neck National Bank, Seaford, N. Y.
Oct. 26 it

was

Underwriter—Barrett Herrick

&

Co.,

.Products Co., Chicago, III.
IV
182>984 shares of common stock (par $1).
ice—To

a

be

supplied

by

amendment

(approximately

«iishare)- Proceeds—To selling
derwriter—Bacon,
w

*•»* Coast

iSnJ'r.
u>ar

Jr

stockholders. Un¬
Whipple & Co., Chicago, 111.

Pipe Line Co., Dallas, Tex.

V*® filed $29,000,000 12-year 6% debenture.

'

cnCi
50

♦

1964, and 580,000 shares of

cents) to be offered in units of one $50 debenone share of stock.
Price—To be supplied by

and

jniendment. Proceeds—From
shares of

1

,

iSX
u

common stock

common

of)

1

it

was

mature in

1969 is planned.

New York.

Offering—Expected late in November.

Axe Atomic & Electronic Fund

Sept. 20 it was reported securities of this new closed-end
fund will be soon offered through Axe Securities Corp.,

16

on

a

l-for-2

would follow
& Co.

a

basis; rights to expire
2-for-l

stock

split.

York, N. Y.

>

L'.

reported sale of $30,000,000 of new bonds

early in December.

Stanley & Co., New York.

Underwriter

—

Morgan
,

Dec.

1.

This

if General American Investment Corp. (Texas)
Oct. 18, Emmett J. Morrow,
President, announced con~plany plans to issue and sell 25,000 shares of preferred
stock (no par) and 25,000 shares of common
stpek (pa"'**
one
cent) following approval by the Texas Securities
Commission.

Proceeds—To finance business
expansion.

General Telephone Co. of the Southwest

Aug. 25 stockholders approved an increase in the au¬
thorized preferred stock (par $20) from
400,000 to 700,000

shares

and

1,000,000 shares.

in

the

common

stock

from

500,000

to

Underwriters—Paine, Webber, Jackson

Georgia Gas Co.
Aug. 27 it was announced

that

this

Corp.

company,

a

sub¬

sidiary of United Cities Utilities Co., contemplates the
issue and sale to residents of Georgia of $300,000
pasvalue of preferred stock, subject to the
approval oz
the Georgia P. S. Commission.
;/
/ '/
Gulf, Moblie & Ohio RR.
i
Aug. 23 it was reported company,
issuance of about

(Kingdom of)

1 it was

is expected

v.

on

Underwriter—Blair

Incorporated, New York.

.

New

1®

approving an offering of 26,000 additional shares oZ
capital tock (par $12.50) to stockholders of record Nor

& Curtis and Stone & Webster Securities

reported sale of $25,000,000 of bonds to
Proceeds — To refund 5%
bonds due in 1955. Underwriter—Morgan Stanley & Co.,
Nov.

Nov.

a

(Commonwealth

^Australia

i( Belgium

White,

company

(including subordinated income debentures)
in exchange for outstanding $6 cumulative convertible
preferred stock (with dividend arrearages of $18 per
share). Directors meet on Nov. 4. Financial Advisor—
Wertheim & Co., New York.

stock and private sales of

oil pipeline. / Underwriters




was

sale of units and 1,125,000

mortgage bonds to be used to build
crude

it

announced stockholders will vote Nov

on

securities

inc., New York.

reported company plans issue and sale

$7,500,000 collateral trust bonds due 1984. Proceeds
To be used
principally to refund $7,000,000 4%% bonds

★ First National Bank of Cincinnati

oept. 20 (letter of

Jig stockholder.

was

of

& Mining Corp.

July 12 (letter of notification) 300,000 shares of common
stock (par one cent). Price—$1 per share. Proceeds—
For mining operations.
Underwriter—Sheehan & Co.,

Warren

(J. C.) Corp. (11/15)
Oct. 25 (letter of
notification) 300,000 shares of common
stock (par five
cents). Price—$1 per share. Proceeds-

—

,ni

$25,000,00(1 bond^Xat^r

ceeds—To refund first refunding

-

>

ipay,

consider

tjiis

\

tha

year. Pro.

mortgage 4s and

Continued

on

page

42

The Commercial and Financial Chronicle
42

collateral trust 33/4s
Northern 5s due 1983.
by competitive bid¬
ding.
Probable bidders: Halsey, Stuart & Co. Inc.,
Kuhn, Loeb & Co., Blyth & Co., Inc. and Salomon Bros.
& Hutzler (jointly); The First Boston Corp.; Shields

New Orleans Great
Underwriter—To be determined

due 1968; and

& CO.

.

Thursday, November 4,
1954

.

(Territory of) (11/4)
at the Bankers Trust Co., 16 Wall

Bids will be received

to 10 a.m. (EST) on Nov. 4 lor
the Treasurer of the Territory of
public improvement bonds, series A,
1, 1954, and to mature annually on Nov. 1

New York, N. Y., up

St.
the

from

purchase
Nov.

from 1957 to 1974,

Oct.

announced that
ac¬

&

Hinckley.
New

New York.

-y;'

the

increase

authorized

proposal

amount of preferred stock

Illinois Central RR.

reported

was

to

(par

Telegraph Co.

&

Telephone

;r-/'

determined

be

its

it

announced

was

stockholders

~

;

plans to issue and sell

gross around $250,000.
Proceeds—For expansion and
acquisitions. Underwriter—Probably Pacific Coast Se¬

curities

Oct. 1 it

stock

Co.

Oct. 15 it

t.

Dec.

ber of

Oct. 27 it

15.

Kansas

in 1955 $16,000,000 first mort¬
bank loans and for new
construction. Underwriters—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Lehman
Brothers
and
Bear,
Stearns
&
Co.,
(jointly); Kuhn, Loeb & Co., Salomon Bros. & Hutzler
and Union Securities Corp. (jointly); Glore, Forgan &
Co.; Blyth & Co., Inc. and The First Boston Corp. (joint¬
ly); White, Weld & Co. and Shields & Co. (jointly); Har¬
riman Ripley & Co., Inc., Equitable Securities Corp.
bonds.

Proceeds—To

repay

Probable

ceeds—To refund

Underwriter

200,000

To be determined

—

which

by

Competitive bidding. Probable bidders: The First
Boston Corp. and Halsey, Stuart & Co. Inc. (with latter
handling books); Kuhn, Loeb & Co., Ladenburg, Thalmann & Co. and Blyth &
Co., Inc. (jointly).
Laclede Gas Co.
Oct. 25 it

be

for

&

Blair

Webster

&

construction.

Securities

Corp.;

Co., Inc. and Drexel &

Expected to be received

on

Underwriter—To

&

to

it

27

issue

finance

was

announced

$15,000,000

of $100 par value,
Proceeds—For new con¬
Offering—Not imminent.

Lehman

Brothers;
(jointly).
Bids—

Co.

the

Board, announced stockholders

Oct.

on

are

plans late

bonds.

in

Proceeds

1954

—

to

below

To

be

publicly offered.

the

price

the time of

construction program.

Underwriter—To be de¬
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; W. C. Langley & Co.; Blytb
& Co., Inc. and The First Boston
Corp. (jointly); Smith
Barney & Co.

$3,000,000 which
be

used

chases
other

for

as

something of

a

readjust¬

ment period.

a

is destined

ness

to continue for

a

and

and

the

remainder

new

keeping

a

government

sible

clue

people

may

debt

securities will

close watch

market

to

now

what

for

on

any

the

the
pos¬

Treasury

have in mind.

Plans

banking world shows

disposition

a

to await

ury's
new

down

again
well

issue market has slow¬

pretty much to

but

supplied

with

from recent
en

to

offerings
complaining.

few weeks

fairly

not giv¬

field

as

well.

,

the

The

those who make

distributing

new




municipal

rank
a

if

precedent

the

next

prevails,

investing groups, such
as
bankers, institutional investors
and the like, will bo called
upon

and

file

of

Campbell

public

keeps

business of

securities

are

phase of

sue

havior

of

some

the

on

our

Soup stock to
the spotlight
closed

the
cen¬

corporation

economy.

Along about Nov. 17,

a

nation¬

the

market

will

weigh

wide
000

shares

will bring out 1,300,of

the

the public its first

stock

to

give

opportunity of

Jan.

series

Stearns &

Co.

1,

1955

B.

(jointly).

approved

$7,000,000 ol

of

Proceeds

To

—

re¬

/

in

this

well-known

£

>

When

decides

The
offering group has been
weighted with distributing dealers

deem

since

if

and

as

to

float

company

the

the

debentures

stock.

it

is

the

as

desire

of

both

and the hankers

wide

as

a

to

distribution

the

proceeds will
the

The

large;- scale

piece

at

of

road

(Nickel Plate) has indicated
it plans to enter the market.

Reports have New York bank¬
ing interests forming groups to
for

probable $36,000,000 is¬
new debentures
by the car¬
a

Indication^

are

that

prelim¬

inary talks already have been tak¬
ing place though no official an¬
nouncement

could

fraternity

has yet been

made**

point,

Sierra Pacific
bids

of

on

only one
offering-

includes

issue for public

000,000

Co.'s

Power

bonds

will

Tuesday.

be

up

are

in

by

"standby"
elude

»01

pubk

concerned.

Underwriters,
fill

S4,-

that jus

And

about wraps it up so far as

offerings

netf

calendar whicn,

corporate

this

small

rej

preferred

draw little nourishment from

refinancing loomed this
week as it developed
that New
York, Chicago &/{St. Louis Rail¬

of

used to

Ahead

Week

banking

week's

railroad

sue

be

outstanding

Slow

ob¬

possible.^

Another

the

of the

Big Rail IsSue Looms

rier.
group

about

bonds,

T-

bid

a

heavily in its ultimate decision.

be

.

Foundation
of its hold¬

But the decision of the Dorrance
estate to offer part of its
holdings

tered

long-term bona is¬
but chances are that the be¬

Ford

sale

~

~

that directors have

Probable bidders: Hal¬
sey,^Stuart & Co. Inc.; Union Securities Corp. and Glore,
Forgan & Co. (jointly); Kidder, Peabody & Co. and
Blyth & Co., Inc.
(jointly); Lehman Brothers and Bear

business.

issue

ings in Ford Motor Co., appear to
have been definitely sidetracked
for a spell.

Once again the Treasury is be¬
lieved to be considering th
ad¬

visability of

the

marketing of

for their views.

The let-down is not limited to
the corporate
market, but appears
to
have

gripped

During

the various

inventories
are

financing.

walk

a

underwriters,

ber

some light on the Treas¬
intentions for mid-Decem¬

of

and

announced

termined by competitive bidding.

re¬

company

for

Hutzler;

&

Bros.

company for capital expenditures already made
for future improvements.
Underwriters—May be de¬

an¬

.

Salomon

imburse
and

participating

tain

Campbell Soup

in prospect.

the .issue

was

firsf; mortgage

pur¬

would

Co.;

Western Pacific RR. Co.
Sept,-8, it

25%

additional

&

White,,Weld & Co.

of

Stock

Meantime, those engaged in flo¬

For the moment the investment

The

bidders: Halsey, Stuart & Co,
Inc.;^Union Securities Corp.; Stone & Webster Securities

Exchange at
approximately
obtained, about $1,000,000 will

exploration

subsidiary

•

Electric & Power Co.

petitjve bidding. Probable

Of the

—

spell, broken only occasionally by
business

to

corporation's uranium program;
will be used to finance accounts

tation of

be

From a rundown of the forward
calendar it appears that the dull¬

York

15%

will
pro!

was reported
company may issue and sell $20,*;:;
000,0OQ to $25,000,000 of first mortgage bonds some time
|
next Spring.
Underwriter—To be determined by com-H

will vote

the

inclined to look upon the
present
lull

New

would be

$1,000,000
of

Price—From

Proceeds

drilling,

under

ceivable

the

on

offering.

Uranium, Inc., Kellogg, Ida.
Harrison, President, announced thai
company contemplates obtaining funds to initial!
uranium mining operations in Utah
by the sale to thr
S.

J^or&;£Kuhn, Loeb
18

pres

Underwriter-

Nov; 1 it

imminent.

Chairman

share.

per

an over

are

Idaho

Lester

if Virginia

increasing the authorized capital stock (par
$10) by
1,000,000 shares, of which approximately
220,000 shares

company

mortgage

Not

Price—$9

■

au¬

on

Dec. 1.

termined

ed

its

—

Hicks.

Security]

public of its unissued treasury stock. This financing
follow completion of the
company's current drilling
gramv\...
■-fv"./ >1;''•/

Telephone Co.

Penn-Texas Corp.
Sept. 26, L. D. Silberstein, President and

Long Island Lighting Co.
Oct.

the

1,000,000
the authorized common stock from
1,500,000
2,000,000 shares. Underwriters
Last financing was
handled by Morgan Stanley & Co. and
Coggeshall &

by competitive bidding. Probable bid¬
Halsey, Stuart & Co. Inc.; The First Boston Corp.;

Stone

authorize

stock

to

Underwriters-I

Webster

None.

shares and

determined

ders:

to

Oct. 19 stockholders approved
proposal to increase
thorized preferred stock from 600,000 shares to

(12/1)

new

preferred

proposal

a

&

privilege)* About 150,000 shares

ently;; outstanding.

Sept. 7

approved

Stone

]new share for each five shares held (with

subscription

to be sold in series.

Peninsular

reported company plans to issue and sell
$15,000,000 first mortgage bonds. Proceeds — To repay
and

additional
are

struction.

was

bank loans

one

Light Co.

stockholders

:

Dye & Chemical Corp.

Utah &
19

offered!

8 directors authorized an offering to
common]
stockholders"of additional common stock at the rate ol

be

Pacific Power &
Oct.

$38,345,000 of 4s due 1975 and $13,336,-

1966.

United

Co., Inc. and Union Securities Corp. (jointly); Smith,
Barney & Co.; White, Weld & Co.; Kuhn, Loeb & Co.

reported company may issue and sell in
November about $50,000,000 first mortgage bonds.
Pro¬

registration!

Sept.

Pro¬

outstanding $6 preferred stock. Un¬
determined by competitive bidding.
bidders: Halsey, Stuart & Co.
Inc.; Blyth &

derwriters—To

'

White, Weld & Co. and
Corp., both of New York.

issue and sell in

may

1955, $36,000,000 of income debentures.

a

its shares to be

cover

Hotels

mated to cost about $11,000,000 for 1954.

ceeds—To redeem

was

000 of 3%s due

reported company

was

January,

Hilton

Transcontinental Gas Pipe Line Corp.
March 3 6 it was reported company plans later this
year
to do some permanent
financing to repay temporary
bank loans necessary to pay for new construction esti¬

if New York, Chicago & St. Louis RR.

Kansas City Southern Ry.

Sept. 20 it

competitive
Halsey, Stuart & Co. Inc.,
Union Securities Corp. and
(jointly); Lehman Brothers;
Stone & Webster Securities

Co.

Oct. 28 it

of

Rhoades & Co.

by

Kidder, Peabody & Co. and
Corp (Jointly); The First Boston Corp.: White. Weld A
Registration—About Nov. 5. Bids—Expected Dec. 14.

latter part of 1954 or early
gage

(12/14)

determined

Harriman Ripley & Co. Inc.

announced that company may sell in the

was

be

To

—

stockholders

Corp. on the basis ofp
one)sKare'for-each Hilton share held. Price—$6.42 pert
share. Proceeds—To finance, in part, purchase of Hotels'
Statler Co., Inc. properties. Underwriter—Carl M.
Loeb,

Proceeds—For construction program.

year.

bidding. Probable bidders:
Equitable Securities Corp.;

City Power & Light Co.

Sept. 15 it

this

announced company will file

was

statement with the SEC to

announced company

Underwriters

;

1

■

ic Statler Hotels Delaware Corp.

plans to offer for sale
$6,000,000 of first mortgage bonds due 1984 in Decem¬

Co., Harriman Ripley & Co. Inc. and Union Securities
Corp. (jointly); Morgan Stanley & Co. Bids—Expected

was

—Paine, Webber, Jackson & Curtis.

to

was

of America

Corp.

reported company may later issue and
$6,000,000 of first mortgage bonds due 1965. Underwriter!

to offer to

(par

| New Orleans Public Service Inc.

competitive bidding. Prob¬

Stuart & Co. Inc.; Kuhn, Loeb &

Co., San Francisco, Calif.

Sheraton

—None.

writer—To be determined by

capital

$105lS
and

be

to

March

of record

of

Underwriter—To

Savage Industries,-Inc., Phoenix, Ariz.
Aug. 9 it was announced company plans later this
year
to issue and sell an additional block of
75-cent cumu.
latiYe^jconvertible preferred stock (par $1),
expected

Probable

Telegraph

&

company proposes

$2,968,000 of 3%% series F bonds at
$7,000,000 of 4% series G bonds at $103.75:

Salomon

1, next, 511,205 addi¬
$100) on a l-for-5
basis.
American Telephone & Telegraph Co., its parent,
owns about 69%
of presently outstanding shares.
Pro¬
ceeds—To
repay temporary
borrowings.
Underwriter
shares

of sinking fund debentures due 1979. Pro¬
ceeds—Together with treasury funds to redeem 37? <*14
shares of outstanding preferred stock (par $50). Under¬

on

l

Bros. & Hutzler; The First Boston Corp. and
Coffin &
Burr;; Inc. (jointly); Equitable Securities Corp.' Bids—
Expected to be received on Nov. 30.

,

by competitive bidding.

Telephone

England

19

tional

$18,000,000

able bidders: Halsey,

share for each

new

for?
determined byi
-competitive bidding. Probable bidders: Halsey. Stuart &
Co. Inc.; .LehmaA Brothers; White, Weld & Co.;
Kidder
Peabody & Co. and Blyth & Co., Inc. (jointly);

Halsey, Stuart & Co. Inc.; Morgan

New

Oct.

(12/15)
company

new

announced

was

new-construction.

Stanley &
Co.; The First Boston Corp.; Glore, Forgan & Co.; Kuhn,
Loeb & Co. and Union Securities Corp. (jointly). BidsExpected to be received on Dec. 14.

$100) from 312,000 shares to 592,000 shares.
Under¬
writers—Lee, Higginson Corp. and Kidder, Peabody &
Co., both of New York; and William Blair & Co., of
Chicago and associates.

Oct. 12 it

Trusts
"

redeem

and

announced company plans issue and sale

was

bidders:

a

share. Pro¬
Underwriters-

surplus.

To

,

England

19 it

—To

approved

and

(11 30)
that -company^plans- to
issue' '
and sell $12,000,000 of first mortgage bonds.
Proceeds-.?/

due 1988. Proceeds—To repay
loans and for additions and improvements.
Underwriter

Household Finance Corp.

stockholders

the basis of

on

Oct.^'28 it

an

of $30,000,000 debentures

stock to its stockholders.

preferred

Banking

J

if Public Service Co. of New Hampshire

other things,

among

'

(i2/i4)

Oct.

financing has been arranged to be followed by a
public offering after which this corporation plans to
distribute a part of its holdings of Holly Uranium Corp.
ary

7

approved

Clark, Dodge & Co.; Union Securities Corp. and Adams

Sept. 9 S. B. Harris, Jr., President, stated that prelimin¬

Oct.

f

ex

stoti

(N. J.)

State Bank of Newark

stockholders

19

ceeds—To increase capital and

in part for> purchase of Hotels Statler Co., Inc.
properties. [See also Statler Hotels Delaware Corp. be¬
low.] Underwriter—May be Carl M. Loeb, Rhoades & Co.

To pay

Holly Corp.,

an

issue

ceipt of 25% stock dividend. Price—$80 per

Proceeds—

rights to purchase Hilton securities.

corded

including

Aug.*24^ it was announced stockholders will be
offered
the right to subscribe to 100,000 shares of common

offering to stockholders of 25,000 additional shares of ;;
capital stock (par $25) on the basis of one new share
for each four shares held on Oct. 19; rights to expire
Nov. 9.
This follows a 4-for-l stock split-up and re¬

n

,

Co., Inc., will be

stock of Hotels Statler

holders of

Oct

inclusive.

Hotels Corp.
27, Conrad N. Hilton, President,

* Hilton

oil reserves,

proven

program.

Pennsylvania Company for
Pniiadelphia, Pa.

(par $L0)

stockholders approved an authorized

28

National

Hawaii of $6,500,000
dated

develop

drilling

shares held.
Price—To be named later.
of
Proceeds-?
increase surplus and capital accounts.
40,000 shares of new prefererd stock (par $100), a part
Underwriter^
Drexel & Co., Philadelphia, Pa.;
and Merrill.
of which may be issued privately to finance a new midLynch
Pierce, Fenner & Beane and Smith Barney & Co 1
western plant to produce vinyl resins.
Underwriter F.
Eberstadt & Co., Inc., New York, handled previous fi¬
New^ York. Meeting—Stockholders on Nov. 1 approved
new "financing.
'
nancing.
/]/.: 7
:* "J.;
j-

Sept.

,

Hawaii

•

Products, Inc.

Starch

National

to

panded

plans to offer 500,000 shares (par five cents) to the motorist and general
public shortly after completion of the current offering
of 100,000 shares to service station owners and operators.
Office—Room 717, 141 Broadway, New York 6, N. Y.
Aug. 25 it was announced company

respectively;

1969,

and

1975

due

used

Majestic Auto Club, Inc.

41

Continued jrom page

of

.

(1866)

meantime,

processing

operations.

unsubscribed

shares

of

Upper

Peninsular

Alabama

severs

These

Gas

Power

in'

comm^
Co.,

Co.

an

n

ex,

The Commercial and Financial Chronicle

. . .

Rosenberg

City,

York

;ch 14
Mo
iters.

Corp.

-^ynch
(H

at

)rovei

SPRINGFIELD, 111.
B.

Riedle

staff
410

;195.1o;.:

for* J
bjp

nd
ed

■iart &

Corp.

U. S. Mercury

The
a

if in &

Bids^

cumu'

New

3n

HILLS,

BEVERLY

am

Oil
tors

October

the

nd sell

and

York

New

(20c)

He

Stock Exchanges.

'writer

6,

N.

Y.

29,

making
(75c)

CAN COMPANY

j
J

share,

per

total of seventy-five cents I

a

share,

per

both

payable

j

on

.

shave

per

paid

M.

H.

in

1954.

common

October 26,

On

fifteen

cents

KINGSLAND, Secretary

share

extra dividend of

an

per

Stock

of

EDMUND HOFFMAN, Secretary

DIVIDEND NOTICE

35% cents per share on its
4%% Preferred Stock ($30 par)
44 cents per

share on its
$1.76 .Conv. Preferred Stock ($30 par)

1954.

Loeb,

Fine

Spinning

has

declared

per

share

of the

REDEMPTION*.

EDWARD L.

of

INC.

TUNG-SOL ELECTRIC

Notice is

25

pursuqnt to resolutions of its
over

pres

in accordance with

will

writer-

and

28,

redeem

New

York

the office of

at

G.

CHACE,

38,

N. Y.,

December 2,

on

1954 all

as

Stock") ot the redemption price lof $52.87V2
tha

id

initiati
;

Company, 160 Broadway,

of the outstanding

shares of its

You

Common

ig pr

Stock for each
of

Stock

that

11

$20,i

of

Tung-Sol

share of

fractional

pay¬

unities

-If, after

by

and
Bear,

To the extent
mon

Corporation

Corporation's cash. In
Preferred

Stock

will

order to
be

assure

converted,

the

a

for
at

sale
a

to

it

in

has arranged

Corporation

the

price of $53.50

per

redemption

of

1952

than

Ripley & Co., Incorporated
certificates

commission for its

a

Stock

Company.

It is important that you

your

1952

rated,

or

certificates

Preferred

tax
to

purposes

on

our

may

income

realize

tax

the holder would receive on
is paying Harriman

in forwarding your 1952
UnitoJJ.;, States Corporation
it whether
desire to convert
Harriman Ripley & Co., Incorpo¬

sale

or

on

it to

from

redemption price.

counsel,

gain

no

you

or

loss wil! be

i

realist! for Federal income

1952 Preferred Stock intp.;£ommon Stock prior

do not elect to convert, afty gain or loss which

redemption will be taken

int|fsaccount for Federal

^
off.-the 1952 Preferred
which has now. been called for
Redemption. Suck shares cannot be
into Common Stock after December 2,1954?

all of

converted

accrue

on

or

after December 2,

1954

in'

ImfflO"
a(^

TUNG-SOL
By

November 1,

1954.




a

'

stockholders-of record Novem¬

to

ber 12, 1954.

share

Payable December 1, 1954

1954

October 28.

regular quarterly dividend of
share on the'Common Stock
has been declared payable Novem¬
ber 30, 1954 to stockholders of
30 0 per

Reco/d date, November 19,1954

record November 12, 1954.

M. E. GRIFFIN,

NATIONAL DISTILLERS
PRODUCTS

The United Gas

CORPORATION

Improvement

Company

22,1954, the Board

of Directors declared

dividend

a

of

fifty cents (50c)per share on the
common shares of the
Company,
payable November 24,1954, to
shareholders of record

at

of business November

NOTICE

DIVIDEND

the close

5,1954.

The

of

Board

clared

cember

has

of

outstanding

Stock, payable on
1,

of record

de¬

quarterly dividend

a

Common

DIVIDEND

Directors

25tf per share on the

De¬

1954, to stockholders

on

November 12, 1954.

The transfer books will not close.
THOS.

STUESSY, Secretary

Manufacturing plants in
Ohio
(five), Michigan (five),

A.

October 28, 1954

CLARK

Treasurer

NOTICE

A

quarterly dividend of 45c per
share on the Common Stook,
par
value $13.50 per share, has been
declared payable December 22,
1954 to stockholders of record
December 3, 1954.
A quarterly dividend of $1.06M
per share on the 4H% Preferred
Stock has been declared
payable

January 3, 1955 to stockholders
of record November 30, 1954.

Kenosha, Wis., Lackawanna,
N. Y., and London, Ont.

Johns

Hopkins, Treasurer

Philadelphia, October 26, 1954

ggodAear

THE FLINTK0TE COMPANY

Union Carbide
NEW YORK 20,

30 ROCKEFELLER

f-ECTRIC INC.
Harvey w. harper,
Chairman of the Board.

and carsair cojzPOJRJTrair

N.Y.

ILAZA

DIVIDEND

StCjCl| registered in your
Company, 160 Broadway,

purposes.

No dividends will

Stock,

indicate

conversion of your

on

Notice of

COMPANY

(dividend 134)

On October

undertaking.'11

obtained

Stock, desire to sell

December 2, 1954, but, if

you

be

may

desire to receive the

In the
opinion of

regular quarterly dividend of
Wit per share on the 5% Con¬

vertible Preferred Stock has been
declared payable December 1, 1954

CLEVELAND 10, OHIO

NOTICE

The Board of Directors

A letter of transmittal for your use

Preferred

| nx.

A

St., N.Y.I, N.Y.

for Harriman

Corporation

representing shares of 1952 Preferred

November 15, 1954.

Plaxa, New York 20, N.Y.

time before the close of

any

should be forwarded fo United States Corporation

New York
38, N. Y.

MANUFACTURING

EATON

into Com¬

share, and to convert the stock so purchased

Stock. The

of

the close of busi¬

WoODALL }NDUSTR1ES

price, after deducting stock transfer taxes to be

Preferred

10,

CORPORATION

5,1954.

Kenosha, Wis,, Lackawanna,
N. Y., and London, Ont.

maximum nuiftbgr of shares of 1952

paid by the seller, is slightly more than the amount
the

All

se

later

not converted

are

at

December
stockholders

the

ail-shares of 1952 Preferred Stock which are duly
manner
set forth in the accompanying letter of

December 2, 1954

on

into shares of Common Stock. This

name

jvera'

that

Ripley & Co., Incorporated to offer to purchase at

transmittal

wil

desire to convert, must be

Company, not

Stock

on

to

STUESSY, Secretary

H. C.

1952 Preferred

1954,

the close

Manufacturing plants in
(Jive), Micliigan (five),

Stock, the redemption of the 1952 Preferred Stock will require the use of the

tendered

ferren

Sf©ck.?th»?»ertiticates therefor, together

States

that shares of

at

Ohio

December 2, 1954.

business

Inpanj
litures
lto re

United

1954. This dividend is

payable

so

1952 Preferred Stpck and do so on
will be entitled to receive such
" / *' • -V

a

a

capital stock of

Secretary-Treasurer

H. C.

you

letter of transmittal indicatmg your
received

I be de-

i

November 15, 1954

taking into consideration the value of the Common Stock
your 1952 Preferred Stock is convertible, jyou determine to

convert such 1952 Preferred

with

shareholders of record

your

1954

15,

dividend

a

shares of the Company,
payable November 24, 1954, to

-

on

the

A

22,1954, the Board

fifty cents (50c) per share on the

DecO^jjer 2, 1954. The last

-.

desire to convert
November

into which

Glore,

before

on

ness on

15#

the New York Stock Exchange on October 29,

on

share.

dividends.
-

Hal

or

of

extra

before

or

made

Stock

on

JERSEY)

$1.25 per share on October

28,

30 Rockefeller

QUARTERLY CASH DIVIDEND

common

shares of Common

regular quarterly dividend of 250 per share and an extra dividend
per share have been declared on the Common Stock payable

that if you

utzler;

;o' re¬

per

time

COMPANY

of business November

of 2.8

rate

MANUFACTURING

of Directors declared

(except that scrip will be issued in

Stock

President

NEW

IN

declared

Cash Dividend

SHUTTS,'

JR.

DIVIDEND No. 13$
On October

be converted into shares of

may

Inc. at the

Preferred
any

shares

to holders of record at the close of business

& Co,

) oi

an

of 250

com-

proved!

Electric

1952

shares) at

$27,375

wns

A

timC;

te

price includes

"

,

Preferred

1952

sale price of the Common

1954

*

:

advised

ore

ng w

lieu

share (which

per

equivalent to the quarterly dividend which would otherwise be payable

such date).

on

to th

has

CLEVELAND 10, OHIO

amended,

Cumulative Preferred Stock, 5% Series of 1952 (hereinafter called "1952 Preferred

amount

•

COMPANY

OIL

record

President

1954.

EATON

November 1, 1954,

Incorporation,

United States Corporation

DEATLY

The Board of Directors

wmmmEmmmaamummm*

460 West 34th

Delaware corporation,

Board of Directors adopted gn

the terms of its Certificate of

regu¬

JLflJLQ $,AJ9JLBJ3JLSLSLSLSLSiJ)JLSLSLSlJLSLfi

Stock, 5% Series of 1952:
a

the fourth

as

cents

AVENUE, NEWARK 4, N. J.

hereby given that TUNG-SOL ELECTRIC INC.,

STANDARD

its

Inc.

the Common Stock,

on

MALCOLM

rate oi

H.

(INCORPORATED

President.

cruritiei

e

on

of record November 9, 1954.
October

ommon

dividend of 30 cents

able December 1, 1954 to stockholders

iporarj

To the Holders of Cumulative Preferred

a

€sso

Berk¬

Associates,

dividend

a

INC.

associates

spinning

Board of Directors

The

a

share

all dividends payable December 1, 1954,
to stockholders of record November
15,

shire

HT GIE59

clarcd

following regular quarterly dividends:

30 cents per

fine

•

i

share designated

quarter-annual dividend for 1954,
payable November 27, 1954 to stock¬
holders of record on November 13,1954.

The Board of Directors has declared the

be mailed.

j

of|

riters—

NOTICE

lar

was

this

October 29, 1954

estl-

Company

stock

1954

declared on the
Company, payable
December 15, 1954, to Stockholders of record
at the close of business November 19, 1954.
Transfer books will remain open. Checks will
Common

|

Hotels

in

business

Secretary.

GUARANTEE

WILLIAM

Common Stock ($15 par)

OF

of

liS.U.Co.

previ¬

NOTICE

close

ASHBY,

fourth!

end dividend of

(55c)

of

the

on

Trustees of Title Guarantee
and Trust Company have de-

AMERICAN

share for the

cents

1954;

per share

declared

DIVIDEND

UTILITIES COMPANY

REDEMPTION NOTICE

is yen

TITLE

IOWA SOUTHERN

j
J

of

twenty

the
B.

W.

BALGOOYEN,
President and Secretary.

|

of

($.50)

CENTS

and Trust

1954.

STREET

dividend

Capital Stock of the ComDecember 15, 1954 to stock-

payable

ny,

been

tolders
of
record
at
November 29,
1954.

Direc-"

.42 per

.

has

W.

stock

dividend

year

a

the

[ November 19. 3 954 to stockholders'
| of record at the close of business I
j November 5„. 1954.
r
Payment of this dividend on No-!
vember 19 will make a total of $1.05 I

Angeles

was

quarter

G. F. CRONMILLER, JR.
Vice President and Secretary

of

Corporation

RACE

2, Pa., Oct. 28,

quarterly

on
COMMON
STOCK, > payable
1,
1954
to shareholders
of
record
10,
1954.

December

29,

offered!
asis

share

DIVIDEND of FIFTY

a

COMPANY

Fifty Cents
for

per

ously with California Investors.

tration?

declared

November

DIVIDEND

I

common

a

per

fifty-five

Calif.—

Los

1954
declared

December 31, 1954 DIVIDEND of ONE
ONE-HALF
(l»/2%) PER CENT or $1.50
share on PREFERRED STOCK,
payable
January
20,
1955
to shareholders
of
record
January 5,
1955.

|
87

1954,

Radio

the

on

Company

cents

South Beverly Drive, members of
the

28,

has

15c

H.

October

No.

27,

Aircraft

of

declared

Harry M. Green is now connected
with Daniel Reeves & Co., 398

ist Se«

Directors

and

Also

Yprk

1513

A

per

Chronicle)

The Financial

to

the

Jersey

Dividend

1

(Sncrr.1

pectee

RADIO

of

Vice

Daniel Reeves Adds

yeai

mon

Boonton

quarter and
is

Directors

dividend

CORPORATION

porated in Delaware on Sept. 14,
acquired by assign¬
a lease
covering four full
and one partial unpatented min¬
ing claims in the McDermott Min¬
ing District,
Humboldt County,

of

the Company, at
1954, declared a
share and a yearper share on the Com¬
Stock for payment December 10, 1954, to
stockholders of record November 10, 1954.
of

end

AIRCRAFT

Nev.

of

meeting held October
quarterly dividend of 15c

ment

lomon

Board

New

STOCK

.4.

Incorporated

Phila.

Pennsylvania

ending

NOTICES

Street,

METER

REFRACTORIES COMPANY
Pittsburgh

per

Rector

COMMON

NOTICES

v

per

Two

1954 and has

bidder,

Co.,

COMPANY INC.

incor¬

was

&

AMERICAN & FOREIGN POWER

leases, proven or unproven.

DIVIDEND

HARBISON-WALKER

October

DIVIDEND

drilling and any re¬
mainder used for working capital
and the possible acquisition of ad¬
ditional mercury claims and

30)
issue"

Bradley

the

to

Adams Street.

East

diamond

ee<j

Ellicott

Edward

—

added

Board

for exploratory work and

to pay

of

has been

proceeds are to be used

The net

NOTICES

43

Chronicle)

NOTICE;

DIVIDEND

of U. S. Mercury
SI per share.

1

DIVIDEND

Bradley Adds

The Financial

Devonshire Street.

cent)

(par

to

AMERICAN

BOSTON, Mass. — Kenneth A.
and Donald C. Sellar
are with Investors Planning Cor¬
poration of New England Inc., 68

By Greenfield & Go.
Greenfield

stock

Elliott
(Special

(Special to The Financial Chronicle)

& Co., Inc., New
is offering publicly
«as
a
speculation" an issue of
298,000 shares of common stock

fferej

(1867)

Joins Investors Planning

Mercury Slock Offered

•usts,'?

X

Number 5374

180

'Volume

1954

A

quarterly dividend of $1.00 per
has

share

been

declared

on

the

$4 Cumulative Preferred
Stock payable December 15, 1954
to stockholders of record at

of business December 1,
A

$.50

and
per

the

a

year-end

of

share have been declared

Common Stock payable

December 10, 1954, to
of

dividend

record

at

the

November 26,

close

stockholders
of

ject to approval by stockholders at
a
Special Meeting called for De¬
cember 20, 1954, and declared the
following dividend:
per share on the preseri
Stock, payable December 1
1954 to stockholders of record at the
close of business November 15,1954.

$1.00

quarterly dividend of $.50 per

share

on

the close

1954.

today au¬
thorized splitting of the Common
Stock on a two-for-one basis, sub¬

business

1954.

mon

The Goodyear Tire & Rubber Co.

By Arden E. Firestone, Secretary

Akron, Ohio, November 1, 1914

EES
New York, October 26, 1954—the
Board of Directors of Union Carbide
and Carbon Corporation has today

declared

a quarterly dividend of 500
share and a SPECIAL DIVI¬
share, total $1.00
per share, on the outstanding capital
stock of the Corporation, payable
December 1,1954 to stockholders of
record November 5, 1954. The last
dividend was 500 per share paid
September 1,1954.
Payment of this dividend on
December 1st will make a total of

per

DEND of 500 per

$2.50
same

per

share paid in 1954, the

amount

as

Was

paid during

1950,1951,1952, and 1953.

CLIFTON W. GREGG,

Vice-President and Treasurer
November 3,1954

KENNETH H. HANNAN

Vice-President and Secretary

The Commercial and
44

Financial Chronicle

Thursday, November 4,
195*

...

(1863)

BUSINESS BUZZ
Tb

•

COMING
EVENTS

•

•

In

Behind-the-Scene Interpretation!
from the Nation's Capital

And You

Nov. 4-6,

Investment

1954 (Florida)

Florida

.

a national production o£
$500,000,000,000."

WASHINGTON, D. C.—Presi¬

years

in the twilight
dC the late Congressional elec¬
tion
campaign, left behind a
document
which is likely to
tiave
considerable significance

dent Eisenhower,

This

dent

dress, published in the "Chron¬
icle of Oct. 28, had all the mark¬

Investment Bankers
Annual

OUR HEELS GIVE YOU A REAL

-

trade,

Dec. 17, 1954

>

upon

May 8-10, 1955 (New York City)
National

States for aid.

the United

stripped of some of the
minute detail of the "best possi¬
ble of all worlds" program of¬
fered in the message of last

cial

message,

(2) "We must continue to re¬
duce the cost of government so

a

jf!" Hence this document is likely
to

referred

be

jpoint to

to

as

specific

^'resident's

by

influenced

election

events,
Mr.

the

prove

of

peaceful

use

emphasizes,

benefits of

of

.

reduction

He

vidual

tions"

that

growing,

economy

develop
soil

know

that,

if

our

the fact

is

of

verge

act

that

neither

is

It
of

takes

time

"pro¬

must

and

unemployment,

economic

distress" and it must "help pro¬

tect the individual against hard¬

ship

and

free

help

mind

his

from anxiety."

(3)

Government

must

also,

"encourage, guide, back-stop,
supplement—but never dominate
or
attempt
to
regiment our
people."
With

respect

unemployment,
went

farther.

to

preventing

the

President

To

achieve this,
"the government must

he said,

its full powers," stating that
this must be done not only for

in

be

benefit

of

the

jobless

but

"for all of us."

would

some

;

a

: Thus it may be that when and
if these treaties are ratified, the

the

will be open to negotiate
partial termination of the

cold

The

war.

dress

to

the

President's

expanding
our

govern¬

declared, add¬

that
than

he

could

a

decade"

foresee
a

"in

national

production of $500 billions com¬
pared with $356 billions now
"Rather," he stated at a later

point,
ward

buildings under the same plan,
is hanging back,
and is refusing to treat this as

the department

their

"multiple

-

approval

occupancy

All

fices.
Works

the

new

Senate

Committee

new

bill

are

the

of

with

ing of the President.

greater concern with the
things that government can do
to expand the economy and im¬
prove
living conditions, than
apprehension about the dangers
of Russian expansion.
Thus it is

time

reminiscent

before

June,

of the

1950,

when

Under

this

Government

the

act

for

the

can't

ings and post offices under the
time
payment plan.
Congress
annual

of

money

it

contracts to

military budget of $13 billion,
was pre-occupied with his ver¬

a

sion of the welfare state.

proposed on-the-cuff buying of

The

a

In

buy buildings
up

to 25

procedure

over

that

Department will
on
projects first
already owns land.

it

has

made

to

not

small

"we
and

mentioned

must

advance

beyond
earlier




W. R. Wolf Ltd. Partner

quite

'

In Jos. Walker & Sons
Joseph Walker & Sons, 12#
Broadway, New York City, mem*
bers of the New York Stock Ex*

I

Walter

announce
that
Wolf has become a

change,

limited
partner in the firm.
Mr. Wolf
was
formerly Senior Vice-Presi*
dent and Director of City Bank
Farmers Trust Company.

Dillon

With Eastman,

Bennington Howell, Jr., has
become associated with Eastman,
L.

Co., 15 Broad Street,
City, members of tne
New York Stock Exchange.
•

Dillon
New

&

York

only if

any

building must be approved by

and may or may not

the "Chronicle's"

an

of

Analysis of

re¬

coincide with

own

We have available copies

views.)

CEMENT

RIVERSIDE
B

CLASS

COMMON

recently prepared

existence,

business

$3.00,

concen¬

flect the "behind the scene" inter¬
pretation from the nation's Capital

—

its first year of

The Free

it is

(This column is intended to

years.

is

use,

trate

for

instalment payments on

period of

It is

it finds it has land

fice

a sum

Bargaining
—

turning it over
for surplus sales. The Post Of¬

a

.0002%

building program.

Where

time

former President Truman, with

Aid

a

will be able to buy office build¬

appropriates

Ar¬

W. H. Hutt

—

sur¬

first.

Federal

first

first

proposing no new instalment
buying of post offices except
where it already owns the land,

earlier this year with the bless¬

far

is

veying all of its needs for the
next 20 years before coming up

Congress

the

General

Postmaster

Summerfield

thur

"lease-purchase"
by

passed

fruits

first

under

time

buying new
department,

plan for
offices, the

post

a

up

York 11, N. Y,

$4.00.

Press, Glencoe, 111. (cloth)

Reid

working

payment

is

"yea," and these 35
projects will become in short
order
the
objects of Federal
expenditure.
so-called

De¬

proposed post office build¬

Before

vote

These

Office

Post

ings.

Public
do

The

partment has submitted only six

of 29
Federal
post of¬

has to

from the borrowed money

heaven.

This gravy takes the form of

900

SPECIAL SITUATIONS

cus¬

STOCK
by

OVER-THE-COUNTER

THE

According to SBA's
getics," there are 4.2

the

—

to¬

goal I
within ten

analysis shows

This

"apolo¬
million

stock

offers

portunity

businesses in the United States.

this

economy must be
ment's goal," he

less

manna

upon

asking

The

Hall, Inc., 70 Fifth
New

of Collective

Theory

Congress also permit¬
the
Post
Office
to
buy

wounds.

the

ap¬

While

of

job

ted

ad¬

their

voting

Post Office Hangs Back

censuring Senator
McCarthy of Wisconsin, the dis¬
tinguished gentlemen will have
a
little gravy
to salve their

voting

Security

National

(cloth)

of

Public

SERVICE

tomers.

expanding economy is

foster

ing

anti-climactic

Industrial Association indicated

loans

goal.

"To

the

for

Avenue,

Senate

job
provals.

Senate meets Nov.

to

tion

Mr. Eisenhower made it clear

his

When the

-

Prentice

ant

it.

conduct

one

and

Works

the

So

Cullen:
A Story of
Opportunity —1 Ed>
Theon Wright —

Roy

American
Kilman

the Small Business Administra¬

Adopts Expanding
Economy Goal
that the

does

Hugh

Committee will have the pleas¬

business

a

since then they
approved by the

Awaits Special Session

Gravy

with

that

use

the

how

is

buildings" and six

way

Government

and

what

Russia.

part." The three:

(2)

States

about

and
been

all

Budget Bureau.

small business¬

position with its
treaty allies to "negotiate from
a
position of strength," with

intelli¬
do its

tect its citizens from depression,

and radio.

indicated

United

the

(1) Government, he said, must
the purchasing power

considerable

on

the TV

on

Dulles

the

stabilize

the

possible that this point

view

educate

to

men

threat of

the various London agreements,

President Eisenhower outlined

©f the dollar.

the

or

significance in the light of State
Secretary Dulles' "report to the

three basic objectives for which

vigorously

war

ing

States
on

nor

have

institutions of higher learn¬

22

8

Cabinet"

and

war

war.

Mr.

gently

the United

at

agencies)

already

SBA

"multiple-occupancy"

(to house two or more Federal

cooperation of

the

the

of

proved 29

failures

business

small

more

has enlisted

Government Must

^

great river

and the
Budget. Before

Committees

Works

adjournment
the
House
Committee
affirmatively
ap¬

or

than any other single factor."

lYrotect People

"must

and

power

our

Through Mr. Eisenhower's ad¬
dress, the President disclosed a
considerable pre-occupation
with the status of peace, with

wisely, before us is continuing
expansion, with a steady rise In
the living standards of all of our
people," Mr. Eisenhower stated.

government

of

show
inexperienced
management is responsible for
inept

Accordingly,

and

we

water,

that

Opposes War

strong."
*'\\re

the

resources

conclusion

startling

valleys."

func¬

stable,

Pub¬

the

cur¬

perform in order to "keep

both the Senate and House

Bureau

"must"

government

Is¬

be overdoing it a bit!"

may

that

hand, the Presi¬
"certain

people

you

mental and private groups

(7) In partnership with states
and local communities "we must

designed to free indi¬

On the other

me

lic

initiative.

dent referred to

to

seems

"surveys made by both govern¬

tailment in Federal spending as
measures

"It

the

by $7.4 billions in the

Federal tax burden and the

(Mackinac

of mankind."

cial Security system.

to the

referred

1955

the

to

atom

the

ployment, and improve the So¬

individual

million

163

Americans.

13-16,

better protection against unem¬

indi¬

and

th§

National Security Traders Asso¬
ciation annual convention.
i

(6) "We must work for more
better schools and homes,"

vidual effort to solve the prob¬
lems

system."

and

of course, the broad
individual initiative

at

farm program."

our

version

Tuesday

both.

Eisenhower

Finan¬

Commodore.

(5) "We must speed the con¬

may

economic

changing

or

or

goals

of

Societies

land, Mich.)

(4) "We must continue to im¬

how much, if any,

see

Federation

Analysts

Hotel

Sept.

give America

must

modern highway

check-

a

the President's thinking and the

be

"We

(3)

,

have more tax cuts."

can

we

January,

(Los Angeles, Calif.)

\

to les¬

dependence

foreign

sen

so as

convertibility

tha

Hotel Statler.

ment, and help bring about cur¬
rency

at

Security-Traders Association of
Los Angeles Christmas Party at

invest¬

encourage

i

Association

Convention

t

President

pand

fact, it looked like a late Octo¬
ber and up-to-date version of
Hie Annual "State of the Union"

,

Hollywood Beach Hotel.

SPRING IN YOUR WALK I

First among these means
placed a foreign
economic policy which will ex¬
(1)

In

government.

in

goals

HOOPOtNGLES HEEL CO.

<

given by the Presi¬

summarized:

are

the

ings of a carefully-thought out
restatement of the Chief Execu¬
tive's

of

>

(Hollywood, Fla.)

r\

of $500
national production,

and these as

National Security
Industrial Association. This ad¬

Nov. 28-Dec. 3, 1954

he proposed to

to achieve the goal

billion

President's ad-;

the

the

several

the

explained

quently

kinds of means

1

Tabulating

-

Division of Wall Street
annual
dinner at the Hotel Statler.

subse¬

Eisenhower

President

use

was

to

-dress

17, 1954 (New York City)

Purchases & Sales

1

months.

Convention'and

Election of Officers.

Nov.

Means for Expansion

several

coming

the

during

Security Dealers Asso-

ciation Annual

-

Field

an

for

why this

excellent op¬
capital gains.

Of

these, 95%, or 3,990,000 are
small
businesses, or potential
customers of the SBA.

3,990,000

Of these

A copy

Carl Marks

customers, SBA by
900, has thus

FOREIGN

granting loans to

aided .0002% of the small busi¬
ness

If

population
SBA

is

the

U.

S.

making few loans,
is functioning ag¬

however,

it

gressively

as a

cation.

of

promoter of edu¬

SBA has

come

up

with

SECURITIES

50 BROAD STREET

TEL:

HANOVER 2-0050

»

&

will be sent on

request.

Co. Inc.

SPECIALISTS

NEW YORK 4.

N. Y.

TELETYPE NY 1-971

LERNER & CO.
Investment

Securities

10 Post Office Square,

Boston 9,

Mass.

/P"
Teletyp®

il

Telephone
HUbbard 2-1990

BS 69

LJ